Document:

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                        Contract Number: ICOO/95-1003/YW

                           LAUNCH SERVICES SUPPLY AND

                               MANAGEMENT CONTRACT

                                     BETWEEN
                           I-CO GLOBAL COMMUNICATIONS
                              (OPERATIONS) LIMITED

                                        &

                         HUGHES SPACE AND COMMUNICATIONS
                               INTERNATIONAL, INC.

                                 7 December 1995

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LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT      Contract No: ICOO/95-1003/YW

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                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
Article   Title
-------   -----
<S>       <C>                                                    <C>
1         Definitions ........................................... 2
2         Scope of Work ......................................... 8
3         Launch Scheduling ..................................... 9
4         Contract Price, Payment and Adjustments ...............22
5         Manifest Management ...................................30
6         Reserved ..............................................31
7         Permits and Licenses: Government Approvals ............32
8         Launch Reviews ........................................34
9         Title .................................................35
10        Force Majeure .........................................36
11        Reserved ..............................................38
12        Access to Work in Progress and Data ...................39
13        Indemnification .......................................40
14        Warranty ..............................................42
15        Risk to Satellite .....................................43
16        US Government Third Party Indemnification .............44
17        Termination ...........................................45
18        Data Rights ...........................................53
19        Reserved ..............................................54
20        Rights in Inventions ..................................55
21        Confidentiality .......................................56
22        Interpretation ........................................59
23        Publicity .............................................61
24        Notices ...............................................62
25        Integration ...........................................64
26        Assignment ............................................65
27        Severability ..........................................67
28        Reserved ..............................................68
29        Reserved ..............................................69
30        Disputes and Arbitration ..............................70
31        Reserved ..............................................71
32        Replacement Launches ..................................72
33        Options ...............................................73
34        Limitation of Liability ...............................74
35        Miscellaneous .........................................75
</TABLE>

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LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT      Contract No: ICOO/95-1003/YW

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THIS CONTRACT is effective as of the 7th Day of December, 1995,

BETWEEN:

I-CO GLOBAL COMMUNICATIONS (OPERATIONS) LIMITED, a company incorporated in the
Cayman Islands as an Exempted Company having its registered office at the
Huntlaw Building, P.O. Box 1359, Fort Street, Georgetown, Grand Cayman, Cayman
Islands (hereinafter referred to as "I-COGC"); and

HUGHES SPACE AND COMMUNICATIONS INTERNATIONAL, INC., a company incorporated
under the laws of the State of Delaware, U.S.A., with a place of business in El
Segundo, California, (hereinafter referred to as "Hughes").

WHEREAS, I-COGC desires to procure Launch Services and Management Services in
support of the twelve (12) Satellites procured under a separate but interrelated
Satellite Contract dated 03 October 1995, No. ICOO/95-1002/NR; and

WHEREAS, Hughes desires to supply Launch Services and Management Services in
accordance with the terms and conditions herein.

NOW, THEREFORE, in consideration of the mutual covenants and agreements herein
contained and other good and valuable consideration, and intending to be legally
bound hereby, the Parties hereto agree as follows:

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LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT      Contract No: ICOO/95-1003/YW

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ARTICLE 1                  DEFINITIONS

In this Contract, unless the context otherwise requires, .THE FOLLOWING TERNS
SHALL have the meaning stated hereunder

A       "Affiliate" means, with respect to a Party, any subsidiary or holding
        company (as determined by the Companies Act 1985 of Great Britain) at
        any tier of such Party.

B       "Associate" means any individuals or legal entities, organized under
        public or private law, who shall, directly or indirectly, on behalf of
        or at the direction of either Party to this Contract fulfill any of the
        obligations undertaken by such Party in this Contract including, but
        without limitation, the Affiliates, Subcontractors, Consultants,
        employees, officers, directors or agents of each of them and of each of
        the Parties. For the avoidance of doubt, Hughes in its role as a
        satellite supplier under the Satellite Contract shall not be deemed an
        Associate of I-COGC.

C       "Business Day" means a Day on which I-COGC or Hughes is open for
        business, excluding Saturdays, Sundays and public holidays.

D       "Consultant(s)" means a person or organization identified to Hughes,
        which person is retained by I-COGC to provide I-COGC with technical
        advice and/or management services.

E       "Contract" means this written instrument embodying the agreement between
        Hughes and I-COGC, including the EXHIBITS annexed hereto and made a part
        of this Contract, as may be varied in accordance with the provisions of
        this Contract.

F       "Contract Price" means the total amount expressed in this Contract
        ARTICLE 4, CONTRACT PRICE, PAYMENT AND ADJUSTMENTS, as may be varied in
        accordance with the provisions of this Contract.

G       "Conversion" or "Convert" means for Delta-III and Zenit Launch Services,
        the right which Hughes has to convert a Firm Launch (as defined in
        EXHIBIT C or E) to an Optional Launch when a Firm Launch is postponed
        more than six (6) months beyond the relevant Launch Semesters.

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H       "Day" means a continuous 24-hour period commencing at 24:00 Midnight
        (Greenwich Mean Time).

I       "Designated Launch Site" means the launch facility provided, and used,
        by the relevant Launch Service Provider.

J       "Documentation" means documentation to be delivered under this Contract
        as more fully described in EXHIBIT A, STATEMENT OF WORK.

K       "Effective Date of Contract (EDC)" means the last date that this
        Contract was duly signed by both Parties.

L       "Government Agency" means any governmental body, agency or entity, which
        has jurisdiction over this Contract, the Designated Launch Sites, the
        Launch Vehicles or any other facet of the Launch Services or Management
        Services provided herein.

M       "I-COSL" means I-CO Services Limited. I-COSL has been appointed a
        Consultant and has been given authority under an agreement with I-COGC
        to manage this Contract on behalf of I-COGC. All notices, instructions
        or consultations which are given or engaged in by I-COSL in the
        performance of its management and consultancy functions in relation to
        this Contract shall be deemed, pursuant to the aforesaid agreement, to
        have been given by I-COGC and shall be binding on I-COGC.
        Notwithstanding the foregoing, I-COSL is not authorized to vary the
        terms of this Contract in any manner whatsoever unless and to the extent
        that the I-COGC authorized representative referred to in ARTICLE 24,
        NOTICES, advises Hughes in writing to the contrary.

N       "Intentional Ignition" means the intentional ignition of any first stage
        motor of the Launch Vehicle by the Launch Service Provider or, for Atlas
        Launch Services, the point in time during the launch countdown when
        initiation of the gas generator ignitors firing command and firing of
        any of the gas generator ignitors occurs.

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LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT      Contract No: ICOO/95-1003/YW

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O       "Launch" means;

        for Atlas Launch Services, the Intentional Ignition of the first stage
        engines of the Launch Vehicle carrying the Satellite followed by either
        release of the Launch Vehicle from the launcher holddown restraints or
        Satellite and Launch Vehicle damage or destruction sufficient so that
        both the Satellite and the Launch Vehicle are declared total losses; or

        for Delta-III Launch Services, the Intentional Ignition of the first
        stage solid rocket motors of the Delta III Launch Vehicle; or

        for Proton Launch Services, the intentional ignition of the first stage
        engines of a Launch Vehicle carrying a Satellite, followed by physical
        separation of the Launch Vehicle from the ground support equipment,
        unless such event constitutes a Terminated Ignition (as such term is
        defined in EXHIBIT D); or

        for Zenit Launch Services, the point in time when an electronic signal
        is sent to command the opening of any first stage propellant valves. A
        launch is deemed to have occurred even if there is a Total Failure,
        Total Constructive Failure or Partial Failure of the Launch Vehicle (as
        such terms are defined in EXHIBIT E);

P       "Launch Date" means the single Day on which the relevant Launch
        Service(s) shall be performed by the Launch Service Provider.

Q       "Launch Period" means the three (3) Month period in which the relevant
        Launch Service shall be performed by the Launch Service Provider. In the
        case of Atlas Launch Services, the Launch Period shall be a five (5)
        Month period.

R       "Launch Revision Fees" means any amount payable by Hughes to a Launch
        Service Provider as a consequence of the implementation, for any reason,
        in accordance with the provisions of this Contract, of a Launch Service
        Provider substitution or a Launch Service acceleration or postponement
        for any Launch Service, which amount may include, but is not limited to,
        termination liability values, postponement fees, liquidated damages,
        and/or escalation values.

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S       "Launch Service Fee" means as appropriate, the relevant fee for each
        Launch Service, as defined in Table 2 or Table 4 of ARTICLE 4, CONTRACT
        PRICE, PAYMENT AND ADJUSTMENTS.

T       "Launch Service Cost" means the fee which Hughes pays to a Launch
        Service Provider to provide/perform the relevant Launch Services.

U       "Launch Service(s)" means, in relation to a Satellite, the services
        provided by the Launch Service Provider to integrate and Launch such
        Satellite under the relevant Launch Service Agreement, including
        furnishing the Launch Vehicle, launch support, equipment and facilities,
        as defined in EXHIBIT A, STATEMENT OF WORK, for the purpose of launching
        a Satellite into the intermediate circular orbit defined in Exhibit B
        (Satellite Technical Specification) of the Satellite Contract.

V       "Launch Service Provider" means the organization(s) which Hughes has
        contracted or will contract with to perform Launch Service(s), and shall
        include, but not be limited to, those persons referred to in Table 1 of
        ARTICLE 3, LAUNCH SCHEDULING.

W       "Launch Service Agreement" means the contract(s) executed between Hughes
        and the Launch Service Provider(s) for the provision of Launch
        Service(s) in support of this Contract, which shall be either: i) an
        existing Longterm Launch Service Agreement executed (or for the Zenit
        Launch Vehicle to be executed) between Hughes and the Launch Service
        Provider(s); or ii) a unique contract specifically negotiated by Hughes
        in support of this Contract.

X       "Launch Slot" means the thirty (30) Day period within the Launch Period
        in which the relevant Launch Service(s) shall be performed by the Launch
        Service Provider.

Y       "Launch Vehicle" means, in relation to a Satellite, the Launch Vehicle
        on which that Satellite is scheduled to be launched or is actually
        launched.

Z       "Longterm Launch Service Agreement" means the contract between Hughes
        and certain Launch Service Provider(s) for the provision of multiple
        Launch Services in support of any Hughes customer program(s).

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LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT      Contract No: ICOO/95-1003/YW

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AA      "Management Services" means those services provided by Hughes that are
        required to effect the provision and scheduling of the Launch Service
        for each Satellite with the relevant Launch Service Provider, as defined
        in EXHIBIT A, STATEMENT OF WORK.

BB      "Month" means a calendar Month.

CC      "Net Present Value" means the value arrived at by discounting, on a
        monthly basis, current and future amounts under this Contract to the
        present date of calculation utilizing the Royal Bank of Scotland Base
        Rate in existence on the date of calculation plus two percent (2%).

DD      "Party" or "Parties" means an entity or all entities, according to the
        context, which has or have signed this Contract.

EE      "Satellite" means a Satellite to be provided to I-COGC pursuant to the
        Satellite Contract. The term "Satellite" shall be interchangeable with
        the term "Spacecraft" and has the same meaning.

FF      "Satellite Contract" means Contract No. ICOO/95-1002/NR executed between
        Hughes and I-COGC for the procurement of twelve (12) Hughes manufactured
        Satellites for I-COGC.

GG      "Statement of Work" means the Statement of Work which is incorporated
        herein and made a part of this Contract and is EXHIBIT A to this
        Contract.

HH      "Subcontractors" means a person, firm, corporation, consultant or
        business entity which has been awarded a subcontract by Hughes, to
        provide a portion of the Work covered by this Contract.

II      "Work" means all labor, services, acts (including tests to be
        performed), items, materials, articles, data, documentation, equipment,
        matters and things required to provide the Management Services and the
        Launch Services.

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The following expressions defined in the Satellite Contract shall, when used in
this Contract, bear the same meanings therein, save where the context otherwise
requires:

A.      "Delivery"

B.      "Delivery Date"

C.      "I-CO Program"

D.      "Launch Attempt"

The Article and Paragraph headings are for convenience of reference only and
shall not be considered in interpreting this Contract. Where the context so
requires, words importing the masculine gender include the feminine and neuter
genders. The recitals of this Contract are descriptive only and shall not create
or affect obligations of the Parties.

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ARTICLE 2 SCOPE OF WORK

2.1     In accordance with the terms and conditions of this Contract, Hughes
        shall procure Launch Services and provide Management Services in support
        of the Launch and deployment of the twelve (12) Satellites procured by
        I-COGC under the Satellite Contract. Hughes shall furnish and perform
        the Launch Services and Management Services in accordance with the
        provisions of this Contract and shall perform the Work to the extent and
        in the manner specified in the following documents, which are attached
        hereto and made a part of this Contract:

<TABLE>
<CAPTION>
                                  DOCUMENT                                  DATE
                                  --------                                  ----
<S>                 <C>                                               <C>
EXHIBIT A -         STATEMENT OF WORK                                 7 December 1995

EXHIBIT B -         I-COGC RIGHTS AND REMEDIES FOR ATLAS              7 December 1995
                    LAUNCH SERVICES

EXHIBIT C -         I-COGC RIGHTS AND REMEDIES FOR DELTA-III          7 December 1995
                    LAUNCH SERVICES

EXHIBIT D -         I-COGC RIGHTS AND REMEDIES FOR PROTON             7 December 1995
                    LAUNCH SERVICES

EXHIBIT E -         I-COGC RIGHTS AND REMEDIES FOR ZENIT              7 December 1995
                    LAUNCH SERVICES

EXHIBIT F -         MILESTONE PAYMENT PLAN                            7 December 1995

EXHIBIT G -         I-COGC GUARANTEE                                  7 December 1995

EXHIBIT H -         HUGHES GUARANTEE                                  7 December 1995

EXHIBIT I -         TERMINATION LIABILITY CALCULATION                 7 December 1995
</TABLE>

2.2     In the event of any inconsistency among or between the parts of this
        Contract, such inconsistency shall be resolved by giving precedence in
        the order of the parts as set forth below:

A.      Contract Articles and EXHIBIT I

B.      EXHIBITS B through E

C.      EXHIBIT A

D.      EXHIBIT F

E.      EXHIBITS G and H

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LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT      Contract No. ICOO/95-1003/YW

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ARTICLE 3 LAUNCH SCHEDULING

3.1  LAUNCH MANIFEST. In accordance with the provisions of this Contract, Hughes
     shall utilize the Launch Service Provider(s) and Launch Dates specified in
     Table 1 below in establishing the baseline Launch Services manifest (set
     out as Table 1 below) on behalf of I-COGC:

<TABLE>
<CAPTION>
                              TABLE 1: BASELINE LAUNCH SERVICES MANIFEST

-----------------------------------------------------------------------------------------------------
LAUNCH      LAUNCH SERVICE PROVIDER         LAUNCH     LTA(3)          LAUNCH             TARGET
                                            VEHICLE   LAUNCH #         PERIOD         LAUNCH DATE(S)
=====================================================================================================
<S>     <C>                                <C>        <C>        <C>                  <C>
   1            Martin Marietta            Atlas-IIA                      *
         Commercial Launch Services(1)
-----------------------------------------------------------------------------------------------------
   2       Lockheed-Krunichev-Energia        Proton                       *
                International(1)
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   3            Martin Marietta            Atlas-IIA                      *
         Commercial Launch Services(1)
-----------------------------------------------------------------------------------------------------
   4     McDonnell Douglas Corporation(1)  Delta-III                      *

-----------------------------------------------------------------------------------------------------
   5       Lockheed-Krunichev-Energia        Proton                       *
                International(1)
-----------------------------------------------------------------------------------------------------
   6    Sea Launch Limited Partnership(2)     Zenit                       *

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   7     McDonnell Douglas Corporation(1)  Delta-III                      *

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   8       Lockheed-Krunichev-Energia        Proton                       *
                International(1)
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   9    Sea Launch Limited Partnership(2)     Zenit                       *

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  10     McDonnell Douglas Corporation(1)  Delta-III                      *

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  11    Sea Launch Limited Partnership(2)     Zenit                       *

-----------------------------------------------------------------------------------------------------
  12     McDonnell Douglas Corporation(1)  Delta-III                      *

=====================================================================================================

1:   Indicated Launch Services are provided through a Longterm Launch Service Agreement between
     Hughes and the relevant Launch Service Provider(s).

2:   Indicated Launch Services are initially scheduled on a Zenit Launch Vehicle, supplied by the
     Sea Launch Limited Partnership, subject to Article 3.2 herein.

3:   The referenced Launch Number ("Launch #") indicates what type of Launch Service (i.e. Firm or
     Option) and which Launch Service or Launch Semester (i.e. Number 5 of 10 purchased by Hughes)
     shall be provided by Hughes to I-COGC.

-----------------------------------------------------------------------------------------------------
</TABLE>

     * Confidential Treatment Requested and the Redacted Material has been
       separately filed with the Commission.
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LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT      Contract No: ICOO/95-1003/YW

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The procedures between Hughes and the Launch Service Providers for determining a
Launch Period, Slot or Day are as set out in Exhibits B through E as applicable
(or as may be set out in any unique Launch Service Agreement). Hughes' selection
of Launch Slots or Launch Days shall be made in the best interest of the I-CO
Program and shall be submitted to I-COGC for approval (which shall not be
unreasonably withheld) no later than one Month prior to the finalization date of
said selection with the appropriate Launch Service Provider. If any alternate
Launch Slot or Day is counter-proposed by a Launch Service Provider in
accordance with Exhibits B through E as applicable then Hughes' response or
acceptance shall similarly require I-COGC's approval. If I-COGC disapproves said
selection, it shall notify Hughes no later than ten (10) Business Days following
notification by Hughes of the selection in order to allow time for resolution of
the disagreement between the Parties.

3.1.1   References. References to "Launch 1" in this Contract shall be
        references to the Launch numbered 1 as set out in Column 1 of Table 1
        and the same references shall apply for Launches 2 through 12.

3.1.2   Prior to 05 July 1996 and without prejudice to any other rights of
        I-COGC under this Contract, I-COGC shall have the right to:

        (a)     postpone any or all Launch Periods in Table 1 above by up to six
                (6) months; and

        (b)     rearrange the order in which the Launch Vehicles referred to in
                Table 1 above are allocated to a Launch.

        Such rights shall, however, be subject to:

        (a)     the scheduling constraints set forth in Article 3.3.3; and

        (b)     no Zenit Launch Service being scheduled prior to 01 November
                1999.

        The exercise of such rights prior to 05 July 1996 shall have no effect
        on the Contract or the Contract Price except for (i) any adjustments to
        EXHIBIT F.

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        MILESTONE PAYMENT PLAN, and (ii) any Launch Service Fee adjustments as
        referenced in Table 4 of ARTICLE 4, PRICE, PAYMENTS AND ADJUSTMENTS,
        nor shall the exercise of such rights reduce any postponement rights or
        periods granted to Hughes or I-COGC under this Contract or any Launch
        Service Agreement.

3.2     Launch Service Provider Changes. Prior to Launch, I-COGC may direct and
        Hughes may propose a Launch Service Provider substitution as follows:

        3.2.1   I-COGC Launch Service Provider Substitutions Prior To Or On 05
                July 1996 Prior to or on 05 July 1996 and subject to ARTICLE 4,
                CONTRACT PRICE, PAYMENT AND ADJUSTMENTS, I-COGC shall be
                entitled to direct Hughes by written notice ("Substitution
                Notice") to substitute any Launch Service Provider(s) from those
                specified in Table 1 ("Original LSP") with a new Launch Service
                Provider ("New LSP") solely for the purposes of maximizing
                reliability, schedule confidence and/or scheduling flexibility.
                Such request by I-COGC shall be based upon the schedule,
                technical or reliability performance of the Launch Service
                Provider. Any substitution shall be implemented as follows:

                i) The Substitution Notice shall be served on Hughes prior to or
                on 05 July 1996; and

                ii) In the event that I-COGC directs Hughes to utilize a Launch
                Service Provider which does not provide Launch Services via a
                Longterm Launch Service Agreement (i.e. a unique Launch Service
                Agreement) Hughes shall use all reasonable efforts to fully
                negotiate a unique Launch Service Agreement in support of this
                Contract, which Launch Service Agreement shall be reviewed and
                approved by I-COGC prior to execution by Hughes. Hughes shall
                not be required to effect any substitution until I-COGC has
                approved the final draft of the unique Launch Service Agreement
                and such agreement has been validly executed by all parties
                thereto; and

                iii) The Substitution Notice shall specify the New LSP, which
                shall be a person listed in Exhibit B (Satellite Technical
                Specification) of the Satellite Contract

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                and shall identify the Original LSP and Launch number for which
                the substitution is to be effected; and

                iv) Any such substitution shall only be effected in accordance
                with ARTICLE 3.3.3; and

                v) Hughes shall bear any and all Launch Revision Fees arising as
                a result of effecting such substitution; and

                vi) Subject to paragraph "iv)" above, Hughes shall effect the
                substitution of the Original LSP for the New LSP as soon as
                reasonably possible following receipt by Hughes of the
                Substitution Notice.

        3.2.2   I-COGC Launch Service Provider Substitutions After 05 July
                1996. After 05 July 1996 and subject to ARTICLE 4, CONTRACT
                PRICE, PAYMENT AND ADJUSTMENTS, I-COGC shall be entitled to
                direct Hughes by Substitution Notice to substitute any Original
                LSP with a New LSP for any reason. Any Substitution shall be
                implemented as follows:

                i)      The Substitution Notice shall be served on Hughes after
                        05 July 1996 and prior to Launch; and

                ii)     In the event that I-COGC directs Hughes to utilize a
                        Launch Service Provider which does not provide Launch
                        Services via a Longterm Launch Service Agreement (i.e. a
                        unique Launch Service Agreement) Hughes shall use all
                        reasonable efforts to fully negotiate a unique Launch
                        Service Agreement in support of this Contract, which
                        Launch Service Agreement shall be reviewed and approved
                        by I-COGC prior to execution by Hughes. Hughes shall not
                        be required to effect any substitution until I-COGC has
                        approved the final draft of the unique Launch Service
                        Agreement and such agreement has been validly executed
                        by all parties thereto; and

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                iii)    The Substitution Notice shall specify the New LSP,
                        which shall be a person listed in Exhibit B (Satellite
                        Technical Specification) of the Satellite Contract and
                        shall identify the Original LSP and Launch number for
                        which the substitution is to be effected; and

                iv)     Any such substitution shall only be effected in
                        accordance with ARTICLE 3.3.3; and

                v)      I-COGC shall bear any and all Launch Revision Fees
                        arising as a result of effecting such substitution; and

                vi)     Subject to paragraph "iv)" above, Hughes shall effect
                        the substitution of the Original LSP for the New LSP as
                        soon as reasonably possible following receipt by Hughes
                        of the Substitution Notice.

        3.2.3   I-COGC Launch Service Provider Changes Due to Zenit Launch
                Services Launch Services scheduled to be provided by Sea Launch
                Limited Partnership ("Sea Launch") for Launch on a Zenit Launch
                Vehicle (without prejudice to I-COGC's right to substitute
                Launch Service Providers in accordance with ARTICLE 3.2.1 and
                3.2.2 above) are scheduled subject to the following conditions
                ("Conditions");

                a)      No Launch Service herein shall occur on the first or
                        second launch of the Zenit Launch Vehicle by Sea Launch;
                        and

                b)      Hughes having entered into a Longterm Launch Service
                        Agreement by 05 June 1996 with Sea Launch which Hughes
                        determines supports this Contract, the latest draft of
                        which forms the basis of EXHIBIT E, I-COGC RIGHTS AND
                        REMEDIES FOR ZENIT LAUNCH SERVICES. Hughes shall notify
                        I-COGC of such determination within thirty (30) Days of
                        entering into such Launch Services Agreement; and

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                c)      Sea Launch having successfully completed all development
                        and integration activities required to validate the Sea
                        Launch system and having performed at least one (1)
                        successful launch six (6) months prior to the Launch
                        Semester for the relevant Zenit Launch Service for
                        I-COGC; and

                d)      For Launch 6, the first launch of a Zenit Launch Vehicle
                        by Sea Launch being scheduled by 01 November 1997 to
                        occur prior to or on 31 December 1998; and

                e)      For Launches 9 and 11, the first launch of a Zenit
                        Launch Vehicle by Sea Launch has not occurred by 01
                        April 1998 and is not scheduled by 01 April 1998 to
                        occur prior to or on 30 June 1999.

                In relation to each of Launches 6, 9 and 11, in the event that
                any of the conditions are not satisfied by the dates set out
                above, I-COGC shall be entitled to serve a Substitution Notice
                in accordance with ARTICLE 3.2.1 above (which ARTICLE shall
                apply hereto mutatis mutandis) for the relevant Launch:

        3.2.4   Hughes Launch Service Provider Substitutions. In the performance
                of its Management Services, Hughes may propose to I-COGC a
                substitution to a Launch Service Provider. Any proposal by
                Hughes shall, as a minimum, identify the relevant Launch
                Service(s), explain the rationale for substituting the Launch
                Service Provider(s), identify the proposed Launch Service
                Provider, and quantify the price and payment schedule impact.
                Upon receipt of such proposal, I-COGC shall notify Hughes
                whether the submitted Launch Service Provider substitution
                proposal is accepted or rejected. Such notice period shall be
                thirty (30) Days or such shorter period of time as required
                under the circumstances, Hughes having used its reasonable
                endeavors to maximize the length of that shorter period. If
                I-COGC elects to accept such proposal, the provisions of ARTICLE
                4, CONTRACT PRICE, PAYMENT, AND ADJUSTMENTS, shall apply and
                I-COGC shall be solely responsible for any Launch Revision Fees
                and other fees and costs charged by the Launch

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                Service Provider and specified in the accepted proposal. At no
                point in time may Hughes substitute a Launch Service Provider
                without the express written consent of I-COGC.

        3.2.5   Payments. If any substitution in ARTICLES 3.2.1, 3.2.2, 3.2.3 or
                3.2.4 above results in I-COGC having paid more under EXHIBIT F,
                MILESTONE PAYMENT PLAN, than it would otherwise have paid had
                that substitution not occurred, at I-COGCs written direction,
                Hughes shall either (i) reimburse any excess amount to I-COGC in
                accordance with ARTICLE 4.8 within (a) fifteen (15) Days or (b)
                within five (5) Business Days from receipt of the applicable
                amount from the Launch Service Provider, whichever is later, or
                (ii) retain such amount and credit the amount against subsequent
                milestone payments specified in EXHIBIT F, MILESTONE PAYMENT
                PLAN, in sequence until such amount has been fully credited
                against such milestone payments.

3.3     Launch Schedule Adjustments. Either Party may, at any time prior to
        Launch, request to accelerate or postpone any Launch Period specified in
        Table 1, or the relevant Launch Slot or Launch Date, as applicable, as
        provided below:

        3.3.1   Any request or proposal to accelerate or postpone any Launch
                Service by either Party under this Paragraph 3.3.1 shall be
                submitted and negotiated in accordance with ARTICLE 22.3, and be
                subject to the relevant rights and obligations specified in this
                Contract and EXHIBITS B through E, as applicable, and the
                scheduling constraints specified in ARTICLE 3.3.3 below. I-COGC
                shall be solely responsible for any Launch Revision Fees
                associated with any Launch Service acceleration or postponement
                requested by either Party except for those Launch Revision Fees
                which are based solely on the late Delivery by Hughes of the
                relevant Satellite or other associated deliverables (under the
                interrelated Satellite Contract) beyond their respective
                Delivery Dates (where the Delivery delay is solely caused by
                Hughes) or due to a material breach by Hughes of this Contract,
                in which case, Hughes shall be solely responsible for any
                applicable Launch Revision Fees. For the avoidance of doubt, if
                a situation should arise where Launch Revision Fees are due and
                payable to a Launch Service Provider for, e.g., a five (5) Month
                postponement, and three (3) Months of the postponement

<PAGE>   18

LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT      Contract No: ICOO/95-1003/YW

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

                were due solely to the late Delivery by Hughes of the relevant
                Satellite, Hughes would be solely liable for the amount
                associated with the three (3) Month postponement and I-COGC
                would be solely liable for the amount associated with the
                remaining two (2) Months.

        3.3.2   Notwithstanding the foregoing, Hughes shall not be liable for
                any Launch Revision Fees if:

                i) I-COGC has requested, either before or after a Launch
                Services postponement by Hughes, a postponement for the relevant
                Launch Service under ARTICLE 3.3.1 above for reasons other than
                the late Delivery by Hughes of the relevant Satellite or other
                associated deliverables beyond their respective Delivery Dates
                where that delay is solely caused by Hughes or due to a material
                breach by Hughes of this Contract; and

                ii) any Launch Services postponement requested by Hughes is less
                than or equal to the maximum period of time allowable in the
                relevant Launch Service Agreement prior to the imposition of any
                type of Launch Revision Fees.

                As an example and for illustrative purposes only, if the Launch
                Service Provider allows a maximum of twelve (12) Months
                postponement prior to the imposition of any Launch Revision
                Fee(s) and I-COGC utilizes three (3) Months of such postponement
                period (either before or after a Hughes postponement request),
                then Hughes shall not be liable for the Launch Revision Fees if
                Hughes requests any postponement less than or equal to twelve
                (12) Months.

        3.3.3   Scheduling Constraints. Notwithstanding the foregoing provisions
                of this Contract, no Launch Service Provider substitution(s)
                and/or Launch Service accelerations or postponements shall be
                effected unless they shall be effected within and in accordance
                with the following scheduling constraints:

<PAGE>   19

LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT      Contract No: ICOO/95-1003/YW

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

                a)      EXHIBITS B through E, as applicable; and

                b)      I-COGC may not utilize more than six (6) Launch Services
                        under any single Longterm Launch Service Agreement
                        without the prior written agreement of Hughes, which
                        agreement shall not be unreasonably withheld; and

                c)      Any constraints imposed by a Government Agency on the
                        provision of Launch Services by a Launch Service
                        Provider.

                On a case by case basis, Hughes agrees to use its reasonable
                efforts in attempting to improve scheduling flexibility by
                negotiating with the relevant Launch Service Provider(s) to
                minimize the effect or existence of the constraints specified
                above.

        3.3.4   Hughes Mitigation. If I-COGC directs (or otherwise requires)
                Hughes to pursue a course of action or to utilize the services
                of a specific Launch Service Provider, in circumstances where
                Hughes would be liable for Launch Revision Fees or for a Launch
                Service Fee, when Hughes may otherwise be able to implement an
                alternate course of action or procure/schedule alternate Launch
                Services which meet the requirements of this Contract at a
                lesser amount of Launch Revision Fees or a lower Launch Service
                Fee, and where such alternative course of action or Launch
                Services are supportive of the overall schedule and other
                requirements of this Contract, then I-COGC shall solely bear any
                difference between (i) the course of action or Launch Service
                Provider selection required by I-COGC and (ii) the amount of
                Launch Revision Fees and/or the Launch Service Fee associated
                with the Hughes alternate course of action or Launch Service
                Provider selection. The Parties agree to consult with one
                another in order to minimize such costs, subject to I-COGC's
                schedule and other requirements as specified in this Contract.

<PAGE>   20

LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT      Contract No: ICOO/95-1003/YW

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3.4     Launch Service Provider Postponements. If a Launch Service Provider
        notifies Hughes that any Launch Service shall be postponed, Hughes shall
        immediately notify I-COGC of such postponement in accordance with
        ARTICLE 24, NOTICES. Hughes shall ascertain the nature and extent of the
        postponement and consult with I-COGC to determine and implement a course
        of action with the purpose of mitigating any schedule or cost impacts
        resultant from the relevant Launch Services postponement. In the event
        that the course of action dictated by I-COGC when implemented results in
        any Launch Revision Fees, I-COGC shall be solely responsible for the
        payment of such Launch Revision Fees.

3.5     Liquidated Damages.

        3.5.1   For those Launch Service Providers defined in the Table below,
                I-COGC may elect, no later than 05 July 1996, to impose on
                Hughes the requirement to pay liquidated damages for the
                postponement of any Launch Service provided by the Launch
                Service Provider. Such election by I-COGC shall be submitted to
                Hughes in writing and shall be at no additional cost to I-COGC.
                Upon election and notification by I-COGC, Hughes shall develop
                and submit to I-COGC a liquidated damages schedule (the "LD
                Schedule") which shall be consistent with the I-COGC
                requirement but based upon the amounts and constraints defined
                in the table below and define the liquidated damages date, grace
                period (if applicable), and daily liquidated damages amount.

<PAGE>   21
LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT      Contract No: ICOO/95-1003/YW
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------
LAUNCH
SERVICE
PROVIDER            LIQUIDATED DAMAGES VALUES                       CONSTRAINTS
------------------------------------------------------------------------------------------------
<S>         <C>                                        <C>
Delta III   Liquidated Damages for Delta-III Launch    Liquidated damages shall not apply to
            Services shall be:                         the first   *   days of Delta-III
                                                       postponement. Liquidated Damages do
            Calendar Day 1-30:  *   per day            not apply to (i) Delta-III delays caused
            Calendar Day 31-60:   *   per day          by force majeure events as defined in
            Calendar Day 61 or >:   *   per day        EXHIBIT C, or (ii) the provision of
                                                       replacement launches by Delta-III or
            The cumulative maximum liquidated          (iii) any delay(s) to the applicable
            damages per Launch Service shall not       Launch Service(s) caused due to a
            exceed US$5 Million.                       postponement by Hughes or I-COGC.
------------------------------------------------------------------------------------------------
Proton      Liquidated Damages for Proton Launch       Liquidated damages shall not apply
            Services shall be US$   *   per day.       to the first   *   days of Proton
                                                       postponement. Liquidated damages
            The cumulative maximum liquidated          shall not apply to any delay(s) to
            damages per Launch Service shall not       the applicable Launch Service(s)
            exceed   *   of the relevant Launch        caused due to a postponement by
            Service Cost.                              Hughes or I-COGC.
------------------------------------------------------------------------------------------------
Zenit       Liquidated Damages for Zenit Launch        Liquidated damages shall not apply to the
            Services shall be US   *   per day.        first   *   days of Sea Launch
                                                       postponement. Liquidated damages shall
            Liquidated damages for Zenit Launch        not apply to i) any Sea Launch
            Services shall not exceed   *   of         postponement based upon an event of force
            the applicable Launch Service Cost.        majeure, as defined in EXHIBIT E; ii) any
                                                       postponement required due to Sea Launch's
                                                       obligation to provide a replacement
                                                       launch for any Sea Launch customer; and
                                                       iii) any delay(s) to the applicable
                                                       Launch Service(s) caused due to a
                                                       postponement by Hughes or I-COGC.
------------------------------------------------------------------------------------------------
</TABLE>

* Confidential Treatment Requested and the Redacted Material
  has been separately filed with the Commission.
<PAGE>   22

LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT      Contract No: ICOO/95-1003/YW

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

        3.5.2.  Other Launch Service Providers. For any Launch Service(s)
                provided by a Launch Service Provider(s) other than those
                defined in Paragraph 3.5.1 above, upon receipt of a written
                request from I-COGC, Hughes agrees to enter into good faith
                negotiations with the applicable Launch Service Provider(s) to
                attempt to include liquidated damages into the relevant Launch
                Service Agreement. Such notification from I-COGC must be
                submitted to Hughes (i) no later than 05 July 1996, or (ii)
                prior to definitization of the unique Launch Service Agreement,
                whichever is later. I-COGC shall be solely liable for any
                increase in any Launch Service Cost resulting from the inclusion
                of any liquidated damages into the relevant Launch Service
                Agreement.

        3.5.3   Payment. Payment by Hughes to I-COGC of any liquidated damages
                value shall occur within five (5) business days after Hughes
                receives the corresponding liquidated damages payment from the
                relevant Launch Service Provider on which Hughes shall have
                imposed the same level of liquidated damages provided that
                Hughes shall never be under any obligation to I-COGC to effect
                payment of any liquidated damages for an amount greater than
                that received from the relevant Launch Service Provider.

        3.5.4   I-COGC Postponement Fees. If I-COGC implements the liquidated
                damages defined in Paragraph 3.5.1 for any Delta-III or Zenit
                Launch Service, I-COGC shall be subject to postponement fees for
                any Launch Service postponement requested or directed by I-COGC.
                I-COGC postponement fees shall be:

<PAGE>   23
LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT     Contract No: ICOO/95-1003/YW
-------------------------------------------------------------------------------

<TABLE>
<CAPTION>
LAUNCH
SERVICE
PROVIDER             I-COGC POSTPONEMENT FEE VALUES                      CONSTRAINTS
---------       -----------------------------------------      --------------------------------
<S>             <C>                                            <C>
Delta-III       I-COGC Postponement Fees for Delta-III         Liquidated damages shall not
                Launch Services shall be:                      apply to the first   *   days
                                                               of I-COGC postponement.

                Calendar Day 1-30:   *   per day
                Calendar Day 31-60:   *   per day
                Calendar Day 61 or >:   *   per day

                The cumulative maximum liquidated damages
                per Launch Service shall not exceed
                US$5 Million.

Zenit           I-COGC Postponement Fees for Zenit Launch      Liquidated damages shall not
                Services shall be US   *   per day.            apply to the first   *   days
                                                               of I-COGC postponement.

                Liquidated damages for Zenit Launch
                Services shall not exceed   *   of the
                applicable Launch Service Cost.
</TABLE>

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   24

LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT      Contract No: ICOO/95-1003/YW

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ARTICLE 4   CONTRACT PRICE, PAYMENT AND ADJUSTMENTS

4.1     Contract Price. In consideration for i) the Launch Services referred to
        in Table 1, and ii) the Management Services specified herein, (subject
        to ARTICLE 4.2) the Contract Price is a firm fixed price of Nine Hundred
        Twenty Five Million U.S. Dollars (US$ 925,000,000.00), which includes
        all taxes and duties and fees required by Hughes to provide the
        Management Services and Launch Services. I-COGC shall pay the Contract
        Price to Hughes in accordance with Table 3 below, which reflects the
        payment profiles for each of the relevant Launch Service Provider(s) and
        is presented in EXHIBIT F, MILESTONE PAYMENT SCHEDULE. The baseline
        Contract Price shall be apportioned as follows:

                       TABLE 2 - BASELINE CONTRACT PRICE

<TABLE>
<CAPTION>
                                                       UNIT PRICE          LINE ITEM TOTAL
ITEM                    DESCRIPTION                   (US DOLLARS)          (US DOLLARS)
----                    -----------                  --------------        ----------------
<S>               <C>                                <C>                   <C>
1                 LAUNCH SERVICE FEE:

1(a)              (2) Atlas II-A Launch Services            *                      *

1(b)              (4) Delta-III Launch Services             *                      *

1(c)              (3) Proton Launch Services                *                      *

1(d)              (3) Zenit Launch Services                 *                      *

2                  MANAGEMENT SERVICES FEE                  *                      *

                                   Total Contract Price                    $925,000,000.00
</TABLE>

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

<PAGE>   25
LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT      Contract No: ICOO/95-1003/YW

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

                      TABLE 3 - BASELINE PAYMENT SCHEDULE

<TABLE>
<CAPTION>
                ATLAS       DELTA-III       PROTON          ZENIT
                -----       ---------       ------          -----
<S>             <C>         <C>             <C>             <C>
05 JULY 96      *           *               *               *
L-27(1)                                     *
L-24                        *
L-21                        *
L-18            *           *               *               *
L-15                        *               *               *
L-12            *           *               *               *
L-9             *           *               *               *
L-6                         *               *               *
L-3                                                         *
L-1             *           *               *               *
L+30 DAYS       *           *               *               *
</TABLE>

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

Notes:

1: "L"= the first Day of the Launch Period, Launch Slot, or Launch Date,
        whichever is applicable as of the date of the milestone payment.
2: L-24 and Launch Period selection
3: L-12 and Launch Slot selection
4: L-6 and Launch Date selection
5: L-15 and PDR complete

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

4.2     Launch Service Provider Substitutions. The Contract Price stated in
        ARTICLE 4.1 above assumes that the Launch Services(s) shall be performed
        by the Launch Service Provider(s) specified in Table 1 of ARTICLE 3.1
        herein. If any Launch Service Provider is substituted in accordance with
        ARTICLE 3.2 herein, the Contract Price and the Baseline Payment Schedule
        stated in ARTICLE 4.1 above shall be revised to take into account the
        relevant Launch Service Fee and payment schedule defined in Table 4 and
        Table 5 below as they shall apply for the substituted Launch Services:

        * Confidential Treatment Requested and the Redacted Material has been
          separately filed with the Commission.

<PAGE>   26

LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT      Contract No: ICOO/95-1003/YW

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

                 TABLE 4 - LAUNCH SERVICE PROVIDER SUBSTITUTIONS

LAUNCH                          LAUNCH SERVICE FEE
VEHICLE                               ($USD)
-------                         -------------------

Atlas-IIA      *   per Month for every Month that the relevant Launch Service is
            scheduled to occur beyond 01 November 1998. Pricing is valid for
            Launch Services exercised prior to 01 January 1997, unless the Atlas
            Launch Service Provider agrees to extend such date.

Proton         *   increased at an annual rate of   *   for any Launch beyond 01
            July 2000. Pricing is valid for Launch Services provided through 31
            December 2001.

Delta-III      *   increased at an annual rate of   *   for any Launch exercised
            after 01 January 2002. Such escalation shall be applied for the
            period beginning on 01 January 2002 and ending on the Launch
            exercise date. Pricing is valid for Launch Services provided through
            31 December 2005.

Zenit          *   for each Month that the first Day of the Launch Period is
            after 01 July 2000. Pricing is valid for Launch Services provided
            through 31 December 2005.

Note:   Escalation calculations defined within this Table 4 for the Proton,
        Delta-III and Zenit Launch Vehicles shall not apply to any Launch which
        is scheduled at the date of Substitution to occur on those Launch
        Vehicles prior to 31 December 2000. In the event that any Launch is
        scheduled at the date of Substitution to occur on or after 01 January
        2001, the escalation calculations/amounts defined above shall apply as
        specified above.

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

<PAGE>   27
LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT      Contract No. ICOO/95-1003/YW

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

                    TABLE 5 - SUBSTITUTION PAYMENT SCHEDULES

<TABLE>
<CAPTION>
                              ATLAS         DELTA-III           PROTON            ZENIT
                         ------------------------------------------------------------------
   OPTION                      5%                            US$1 million           2%
EXERCISE (2)
-------------------------------------------------------------------------------------------
<S>                        <C>                <C>            <C>                  <C>
     L-24(1)                                   *
     L-21                                      *
     L-18                      *               *              *                     *
                                                              *
     L-15                                      *              *                     *
     L-12                      *               *              *                     *
     L-9                       *               *              *                     *
     L-6                                       *              *                     *
     L-3                                                                            *
     L-1                       *               *              *
 L+30 DAYS                     *               *              *                     *

--------------------------------------------------------------------------------------------
</TABLE>

Notes:

1:  "L" = the first Day of the Launch Period, Launch Slot, or Launch Date,
         whichever is applicable as of the date of the milestone payment.

2:  Option Exercise = upon direction to Hughes by I-COGC to substitute a
         Launch Service Provider and notification to the Launch Service Provider
         of Option Exercise.

3:  L-24 and Launch Period selection

4:  L-12 and Launch Slot selection

5:  L-6 and Launch Date selection

6:  L-15 and PDR complete

4.3       ILS Launch Service Fee Reduction.  If Hughes is able to negotiate and
          obtain a reduced Launch Service Cost (in absolute value or on a New
          Present Value basis) after the Effective Date of this Contract from
          (and for the Launch Service(s) relating to) the Atlas and/or Proton
          Launch Service Provider, then the Contract Price shall be reduced by
          an amount equal to   *   of the net difference between the initial
          Launch Service Cost to Hughes and the subsequent lower Launch Service
          Cost negotiated by Hughes multiplied by one (1) plus the General and
          Administrative fee of one percent (i.e. 1.01). The Contract Price
          reduction shall only apply to those Launch Services which are the
          subject of any such agreement with the Atlas and/or Proton Launch
          Service Provider. The Contract Price reduction value may be
          illustrated in formula format as follows:

          * Confidential Treatment Requested and the Redacted Material has been
            separately filed with the Commission.

<PAGE>   28

LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT      Contract No: ICOO/95-1003/YW

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

  ----------------------------------------------------------------------------
  Net Contract Price Reduction    *
  ----------------------------------------------------------------------------

        If I-COGC should question any amount calculated under this Paragraph
        4.3, subject to the execution of a non-disclosure agreement in a form
        reasonably acceptable to Hughes between all relevant parties, Hughes
        shall provide access to a third party auditor acceptable to both
        Parties, which third party auditor may review the relevant cost
        documentation and certify to I-COGC as to the validity of the Hughes
        reduction.

4.4     Alternate Launch Service Provider(s). If, at any time, I-COGC directs
        Hughes to utilize a Launch Service Provider which does not have a
        Longterm Launch Service Agreement with Hughes which provides Launch
        Services for a Satellite as of the date of the I-COGC request, the
        Contract Price stated in ARTICLE 4.1 above shall be revised to reflect
        the inclusion of i) the actual Launch Service Cost, inclusive of any
        applicable taxes, duties, or fees charged by the alternate Launch
        Service Provider; and ii) a fee equal to   *   of the Launch Service
        Cost. In addition, the payment schedule specified in EXHIBIT F,
        MILESTONE PAYMENT PLAN, shall be revised to reflect the
        milestone/payment schedule included in the relevant Launch Service
        Agreement. The   *   fee specified above shall be payable on a per
        Launch Service basis as follows: i)   *   shall be prorated over all of
        the applicable payments; and ii)   *   shall be payable upon Launch.

4.5     Payments. All payments specified in this ARTICLE 4, CONTRACT PRICE,
        PAYMENT AND ADJUSTMENTS, shall be made by I-COGC within fifteen (15)
        Days of receipt of a valid invoice and (i) for calendar based
        milestones, the occurrence of the applicable milestone, or (ii) for
        performance milestones, additionally upon certification from Hughes that
        the particular milestone event has been completed, whichever is later.
        With respect to any other amounts payable under the Contract, the Party
        entitled to payment shall make a written demand for, or shall submit an
        invoice if so requested by the payor, after such entitlement becomes
        established,

        * Confidential Treatment Requested and the Redacted Material has been
          separately filed with the Commission.

<PAGE>   29

LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT      Contract No: ICOO/95-1003/YW

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

        and the payor shall make payment within fifteen (15) Days after receipt
        of a valid written demand or valid invoice unless the Contract specifies
        to the contrary. Notwithstanding any other term in this Contract, in no
        event shall Hughes be liable to I-COGC for any payment which originates
        from a Launch Service Provider (e.g. Launch Revision Fees, liquidated
        damages, or refund of payments for a terminated Launch Service) until
        Hughes has received the corresponding payment from the relevant Launch
        Service Provider.

        Any invoices will separately identify any applicable taxes and duties
        and shall be addressed to I-COGC at the following address:

               I-CO Global Communications (Operations) Limited
               Huntlaw Building
               P.O. Box 1350
               Fort Street
               Georgetown, Grand Cayman
               Cayman Islands

        but submitted both via an internationally recognized air courier and via
        telefax to:

               I-CO Services Limited
               1 Queen Caroline Street
               Hammersmith, London W6 9BN
               United Kingdom
               Attention: Contract Administrator (Space Segment)
               Fax #44-181-600-1199

        and with a copy given by hand to an authorized on-site representative of
        I-COGC at the Hughes' facility.

4.6     Payment Postponements. If any postponement of a Launch Service results
        in the postponement or delay of any payment(s) under a Launch Service
        Agreement for the postponed Launch Service, the payment schedule
        specified in EXHIBIT F, MILESTONE PAYMENT PLAN, shall be revised to
        reflect such delayed payment(s).

<PAGE>   30

LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT      Contract No: ICOO/95-1003/YW

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

4.7     Payment Dispute. No dispute with respect to the payment of any amount
        under this Contract shall relieve the disputing Party of its obligation
        to pay all other amounts due and owing under this Contract. All disputed
        amounts, unless otherwise specified in the Contract, shall be paid into
        an interest-bearing escrow account at Bank of America, Concord,
        California, Account No. (to be established later), within fifteen (15)
        Days after receipt of invoice. After the dispute is settled, the Party
        entitled to the amount or part thereof in escrow shall receive such
        amount together with all interest thereon and the costs and fees
        associated with such escrow account shall be paid by each Party in
        inverse proportion to the amounts received by each Party.

4.8     Telegraphic Transfer. Amounts payable hereunder are to be remitted by
        telegraphic transfer to a bank to be advised in writing by Hughes or
        I-COGC, as the case may be.

4.9     Guarantee. Within 15 Days of EDC, both Parties shall provide a parent
        company guarantee of their obligations substantially in the form set
        forth in EXHIBIT H, HUGHES GUARANTEE, and EXHIBIT G, I-COGC GUARANTEE.

4.10    Letter of Credit. No later than 05 July 1996, I-COGC shall establish an
        irrevocable Letter of Credit in the amount of   *   . Such irrevocable
        Letter of Credit shall be issued by a bank of good international
        reputation of I-COGC's choice (issuing bank) and in a format reasonably
        acceptable to Hughes. The irrevocable Letter of Credit shall be issued
        in favor of Hughes and shall be valid until the last payment has been
        made as per EXHIBIT F, MILESTONE PAYMENT PLAN as such plan may be varied
        in accordance with the provisions of this Contract. The aforesaid Letter
        of Credit amount shall be adjusted to reflect the values listed below by
        the dates specified:

<TABLE>
<CAPTION>
    Date            Revised Letter of Credit Amount
    ----            -------------------------------
<S>                 <C>
15 Sept 1997
15 Mar 1998
15 June 1998                       *
15 July 1998
15 March 1999
</TABLE>

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

<PAGE>   31

LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT      Contract No: ICOO/95-1003/YW

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

<TABLE>
<S>                 <C>
15 Dec 1999         *
15 July 2000        *
</TABLE>

        I-COGC shall notify Hughes within five (5) Days of any adjustments to
        the amount of the Letter of Credit.

        In the event I-COGC has not made a payment for a milestone within
        fifteen (15) Days after the receipt of Hughes' invoice and milestone
        completion certification when pursuant to ARTICLE 4.5 it was obligated
        to do so, the irrevocable Letter of Credit shall allow Hughes to
        immediately draw down an amount which Hughes certifies as the
        outstanding amount payable for that milestone.

        I-COGC will be responsible for all bank charges, expenses, and
        commissions relating to the irrevocable Letter of Credit required to be
        issued hereunder on Hughes' behalf save as may be incurred as a result
        of a delay in the last milestone payment beyond 01 January 2001 caused
        by a late Delivery by Hughes of the relevant Satellite or the associated
        deliverables beyond their respective Delivery Dates (where that delay is
        solely caused by Hughes) or due to a material breach by Hughes of this
        Agreement in which case such bank charges (etc ...) shall be borne by
        Hughes.

        Hughes shall notify I-COGC in writing if any Launch Service Provider
        substitution or Launch Service(s) postponement (as specified in ARTICLE
        3, LAUNCH SCHEDULING) necessitates a revision in the adjustment dates
        and/or values (increase/decrease or acceleration/postponement) defined
        above. I-COGC shall revise the Letter of Credit as required within
        thirty (30) days of receipt of such written notice, or such later period
        as may be agreed between the Parties as reasonable under the
        circumstances. The Parties agree to regularly (at least once every six
        (6) Months) review the level of the Letter of Credit with a view to
        adjusting the Letter of Credit to cover the forecasted payment values.

        * Confidential Treatment Requested and the Redacted Material has been
          separately filed with the Commission.

<PAGE>   32

LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT      Contract No: ICOO/95-1003/YW

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

ARTICLE 5  MANIFEST MANAGEMENT

5.1     Launch Service Provider Cessation. If any Launch Service Provider
        utilized hereunder declares that it shall, or does, cease operations for
        a period equal to or greater than six (6) Months or it is anticipated
        that it will do so ("LSP Cessation"), Hughes will promptly confer with
        I-COGC to determine the feasibility of utilizing alternate launch
        opportunities (i.e. postponing or accelerating currently scheduled
        Launch Services) within the I-COGC launch services manifest (specified
        in Table 1 of ARTICLE 3, LAUNCH SCHEDULING, as adjusted by ARTICLE 3,
        LAUNCH SCHEDULING) and/or transferring any portion of the current Launch
        Services to alternate Launch Service Providers.

5.2     Revised Launch Opportunities. If after such review of the proposed/
        possible options presented by Hughes, I-COGC requests Hughes to pursue
        revised launch opportunity(ies), then Hughes shall attempt to create an
        equitable rescheduling amongst its satellite customers, giving priority
        based upon the launch manifests in existence as of the date of the LSP
        Cessation but taking into consideration limitations or technical
        compatibility with multiple launch vehicles of other Hughes' satellite
        customers similarly affected. In any event, I-COGC shall be responsible
        for (i) any Launch Revision Fees and(ii) any amounts specified in
        ARTICLE 4, CONTRACT PRICE, PAYMENT AND ADJUSTMENTS, associated with any
        rescheduling performed under this ARTICLE 5.

5.3     Rescheduling Rights. Hughes may however, reschedule the affected I-COGC
        Launch Service to a position other than that reflected in the launch
        manifests in existence as of the date of the LSP Cessation to provide
        another Hughes satellite customer(s) an earlier Launch than the affected
        I-COGC Launch provided that such rescheduling does not cause a
        significant delay (not to exceed three (3) months) to I-COGC relative to
        the other Hughes satellite customer(s) being provided such earlier
        Launch Service(s). In addition; the price (when evaluated on a Net
        Present Value basis) of such later launch opportunity to I-COGC shall
        not be greater than that of I-COGC's original launch opportunity.

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ARTICLE 6     RESERVED

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ARTICLE 7    PERMITS AND LICENSES: GOVERNMENT APPROVALS

7.1     Hughes Permits. Licenses and Approvals Hughes shall, at its own expense,
        secure all Government permits, licenses, approvals and consents as may
        be required for the performance of the Management Services under this
        Contract. Hughes shall also secure, via the relevant Launch Service
        Provider, all Government permits, licenses, approvals and consents
        required for the provision of each relevant Launch Service(s). Hughes
        shall perform the Work in accordance with the conditions of all such
        relevant permits and licenses.

7.2     Technical Data. Notwithstanding ARTICLE 7.1 or any other provision of
        this Contract, the Parties understand and agree that certain
        restrictions are placed on access to Hughes' plant and the use of
        technical data delivered under this Contract with relation to the
        approvals Hughes and certain Launch Service Providers must obtain from
        the U.S. Government. As a result, the Parties agree that such access and
        the actual delivery of any technical data will be under a separate
        agreement which shall require prior U.S. Government approval. Hughes via
        the Launch Service Provider, as applicable, shall prepare said agreement
        and, in consultation with I-COGC, shall request U.S. Government
        approval. Request for U.S. Government approvals shall be sufficiently
        comprehensive to allow Hughes or the relevant Launch Service Provider to
        fulfill all of its obligations hereunder including but not limited to
        the rights of access and inspection granted to I-COGC and its
        Consultants under this Contract.

7.3     Documentation. If Documentation furnished under this Contract is
        authorized by the U. S. Government for export only to I-COGC, the
        Documentation may not be resold, diverted, transferred, trans-shipped or
        otherwise be disposed of in any other country, either in its original
        form or after being incorporated through an intermediate process into
        other end items without the prior written approval of the U.S.
        Government. Additionally, transferring registration or control to any
        other person or business entity of the Documentation furnished under
        this Contract is considered an export and as such also requires prior
        written approval from the U.S. Government. I-COGC represents and
        warrants that the ultimate end use of the Documentation is to support
        the provision of telecommunications services.

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7.4     I-COGC Permits and Licenses. I-COGC shall, at its own expense, secure
        all Government permits and licenses as may be required for the
        performance of its obligations under this contract. I-COGC shall be
        responsible for obtaining the registration of any and all Satellites
        launched hereunder. In addition, I-COGC shall be responsible for
        obtaining any license required for radio telecommunication with any and
        all Satellites after separation from the Launch Vehicle.

7.5     Survivability. The obligations contained in this ARTICLE 7 shall survive
        expiration or termination of this Contract for whatever cause.

<PAGE>   36
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ARTICLE 8  LAUNCH REVIEWS

8.1     Launch Reviews. Hughes shall ensure that I-COGC is afforded the
        opportunity to attend programmatic reviews held by the various Launch
        Service Provider(s). Such reviews shall include but not be limited to,
        preliminary design reviews, critical design reviews, orbital mission
        reviews, and launch readiness reviews. Hughes shall provide I-COGC
        representatives with fifteen (15) Business Days notice of the pending
        review. Attendance at these reviews by I-COGC representatives is not
        mandatory and in no event shall the absence of an I-COGC representative
        postpone or delay any review.

8.2     I-COGC Direction. Based upon the information presented by the Launch
        Service Provider in the applicable programmatic review(s), I-COGC may
        direct Hughes to halt or postpone the Launch Service to which such
        review applied or related if I-COGC believes that the Launch Service
        Provider has failed, or shall fail, in some material degree to provide
        the required Launch Services. If I-COGC directs Hughes to halt or
        postpone any Launch Service(s), I-COGC shall, by notice in writing to
        Hughes provide reasonable details of the Launch Service(s) affected, the
        rationale for postponement and a proposed/acceptable resolution for the
        issue. I-COGC shall be solely responsible for, and indemnify and hold
        harmless Hughes from any Launch Revision Fees or other amounts charged
        by the Launch Service Provider for any Launch Service halted or
        postponed by Hughes at I-COGC's direction in accordance with this
        ARTICLE 8.2.

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ARTICLE 9  TITLE

9.1     Launch Services. In no event shall either Party take or receive title to
        any portion of any Launch Vehicle utilized in the Launch Services
        procured by this Contract.

9.2     Documentation. Title and risk of loss to all Documentation shall pass to
        I-COGC at the time of delivery, save that intellectual property rights
        in Documentation shall be dealt with in accordance with the provisions
        of ARTICLE 18, DATA RIGHTS.

<PAGE>   38

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ARTICLE 10  FORCE MAJEURE

10.1    Effect of Force Majeure. Notwithstanding any other provisions of this
        Contract, in the event Hughes and its Associates or Subcontractors
        ("affected Party") are delayed in the performance of this Contract by an
        event of Force Majeure, as defined in ARTICLES 10.2, 10.3, and 10.5
        below, there shall be an equitable adjustment to the time for the
        performance of the affected obligations under this Contract provided
        that Hughes informs I-COGC immediately of the occurrence of the event
        giving rise to Force Majeure and provides I-COGC within seven (7)
        Business Days of the date of such notice with a detailed description of
        the performance affected by such event as well as the plans for
        minimizing the effects of such event upon the performance of Hughes's
        obligations under the Contract. In all cases, Hughes shall use
        reasonable efforts to avoid or minimize such delay.

10.2    Management Services. For purposes of this Contract, "Force Majeure" for
        Management Services shall mean an act of God, or of the public enemy,
        fire, flood, epidemic, quarantine restriction, or lockout, strike,
        walkout, (other than those solely affecting Hughes' or its Associates'
        workforce) or freight embargo, acts of Government, including but not
        limited to the Government of the United States, (including the refusal,
        suspension, withdrawal, or non-renewal of export or import licenses
        essential to the performance of the Contract not caused by Hughes or its
        Associates) whether in its sovereign or contractual capacity, or any
        other event which is beyond the reasonable control and without the fault
        or negligence of Hughes and its Associates performing any part of the
        Work.

10.3    Launch Services. For purposes of this Contract, "Force Majeure" for
        Launch Service Provider(s) shall mean those force majeure or excusable
        delay events and the consequences thereof defined in EXHIBITS B through
        E, as applicable.

10.4    I-COGC Payments. Notwithstanding the above, this ARTICLE is not
        applicable to the payment obligations of I-COGC and as such no force
        majeure events or excusable delays shall be provided in that instance.

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10.5    Satellite Contract Force Majeure. For the avoidance of doubt, in the
        event that any Launch Service is delayed due to the late Delivery of a
        Satellite or any associated deliverables, and such late Delivery is
        caused by an Excusable Delay (as defined in Article 10 of the Satellite
        Contract), then such delay of the Launch Service(s) shall constitute an
        event of Force Majeure under this Contract.

<PAGE>   40
Acceptance Test Plan                                                   Exhibit D
                                                Contract Number: ICOO/95-1002/NR
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>

4.4.9     RETURN PAYLOAD PANEL
                                         Test Level
                     --------------------------------------------------
                                         Subsystem
                     --------------------------------------------------
       Test          Integration  Ambient  Thermal Vacuum  Post Ambient                         Test Description
-------------------  -----------  -------  --------------  ------------  -----------------------------------------------------------
<S>                  <C>          <C>      <C>             <C>           <C>
Harness Continuity       X                                               Verify electrical harness pin to pin continuity. Verify
                                                                         Isolation.

Power and Grounding      X                                               Verify DC power applied to correct pins of all units.
                                                                         Verify unit grounding, panel power consumption, and harness
                                                                         power return lines.

T&C Functionals          X          X            X             X         Verify that units respond to command signals. Verify
                                                                         telemetry signals.

C-Band Gain Transfer     X                                               Prior to mating the return upconverter, the C-band gain
                                                                         transfer characteristics are measured. Measure output
                                                                         power. Each polarization will be tested.

C-Band                   P                                               Prior to mating the return upconverter, the C-band
Spurs/Harmonics                                                          subsection output is examined for spurs and harmonics. Each
                                                                         polarization will be tested.

C-band Swept Gain        X                                               Prior to mating the upconverter, the C-Band subsection
Response                                                                 amplitude response is measured. Each polarization will be
                                                                         tested.

C-band Two-tone          X                                               Prior to integrating the digital processor, the two tone
linearity                                                                linearity response is measured from the upconverters
                                                                         through the C-Band output. Each polarization will be
                                                                         tested.

In-Band Spurious         P                                               Prior to integrating the digital processor, the
                                                                         spurious/harmonic response is measured from the
                                                                         upconverters through the C-Band output. Each polarization
                                                                         will be tested.

Panel Gain/Routing/                 X            X             X         For each processor IF input(4) the gain from IF input to
Channelization                                                           element outputs(127) will be measured for a defined set of
                                                                         routed channel configurations which exercise all hardware
                                                                         paths.
</TABLE>

                                   PAGE 4-28
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ARTICLE 11  RESERVED

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ARTICLE 12  ACCESS TO WORK IN PROGRESS AND DATA

12.1    Hughes Facilities. For those facilities solely owned and/or operated by
        Hughes, Hughes shall provide I-COGC and its Consultant(s) reasonable
        access to all Work being performed under this Contract, at reasonable
        times as mutually agreed upon by the Parties during the period of this
        Contract, provided that such access does not unreasonably interfere with
        such Work and access to Work is coordinated with the Hughes Program
        Manager or designated alternative(s). Such access shall be in compliance
        with Hughes' security requirements and United States law. Hughes may, at
        its reasonable discretion, deny access to persons who are employed by or
        affiliated with a company manufacturing satellites or major subsystems
        for satellites or providing launch services.

12.2    Disclosure. I-COGC and/or its Consultant(s) visiting Hughes facilities
        (a) will abide by Hughes' security regulations and applicable U.S.
        Government regulations; (b) will not use or disclose to a third party
        any information received in connection with the access provided
        hereunder and will use such information only in the performance of this
        Contract, whether or not such information is marked or otherwise
        identified as proprietary, save as provided in ARTICLE 21,
        CONFIDENTIALITY.

12.3    I-COSL For purposes of access, I-COSL shall be considered the same as
        I-COGC and the provisions of this ARTICLE 12 shall apply mutatis
        mutandis to I-COSL and its Consultants.

12.4    Launch Service Provider Facilities. Notwithstanding the foregoing
        provisions of this ARTICLE 12, access by I-COGC and/or its Consultant(s)
        to any Launch Service Provider facility, including the Designated Launch
        Site, shall be governed by the terms defined in EXHIBITS B through E, as
        applicable.

<PAGE>   43

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ARTICLE 13  INDEMNIFICATION

13.1    Each Party ("the Indemnifying Party") shall indemnify and hold harmless
        the other Party ("the Indemnified Party") and its Associates (or any of
        them), from any loss, damage, liability or expense suffered or incurred
        by any such person resulting from damage to all property and injury,
        including death, arising out of, or based upon, any event or
        circumstance occurring prior to arrival at the Designated Launch Site to
        the extent caused by a negligent act or omission of the Indemnifying
        Party or its Associates in the performance of the Work and at the
        Indemnifying Party's expense shall defend any suits or other proceedings
        brought against the Indemnified Party and/or its Associates (or any of
        them), on account thereof, and satisfy all judgments which may be
        incurred by or rendered against them (or any of them) in connection
        therewith.

13.2    Notwithstanding ARTICLE 13.1, each Party ("the Indemnifying Party")
        shall be and remain solely responsible for, and shall indemnify and hold
        harmless the other Party ("the Indemnified Party") from and against any
        loss, damage, liability or expense suffered or incurred by the
        Indemnifying Party resulting from loss or damage to the Indemnifying
        Party's property and/or injury including death, affecting the
        Indemnifying Party's personnel whilst on or within the Indemnifying
        Party's premises or on or within the premises of the Indemnified Party;
        provided however that the first One Hundred Thousand U.S. Dollars (US
        $100,000) of any such loss, damage, liability or expense shall be borne
        by each Party to the extent that it is liable under ARTICLE 13.1.

13.3    Prior to the time that either Party or its Associates enter the
        Designated Launch Site (as a precondition of such entry), each Party
        shall ensure that they and their respective relevant Associates shall
        sign a no-fault, no-subrogation inter-party waiver of liability
        consistent with that defined in the relevant Launch Service Agreement.

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13.4    In the event that either I-COGC or Hughes fails to obtain the aforesaid
        inter-party waiver of liability from their respective Associates, then
        I-COGC and Hughes shall indemnify and hold each other harmless from
        claims brought by the other Party or its Associates, for damage to any
        such persons' property or injury to, or death of, such persons'
        employees in connection with any launch operations in or around the
        Designated Launch Site.

13.5    Notwithstanding any other provision of this Contract, but without
        prejudice to any indemnities or insurance coverage as may be provided by
        Launch Service Providers, I-COGC shall indemnify and hold harmless
        Hughes and its Associates from any liabilities, losses and damages,
        including but not limited to those based on negligence, including any
        costs, expenses and damages whatsoever incurred by Hughes in defending,
        or assisting I-COGC in its defense, against any and all third party
        claims, including but not limited to, I-COGC's customer(s) or an agency
        of any Government with whom I-COGC shall have any obligation related to
        the Satellites arising after the launch attempt of a Satellite, and
        I-COGC shall obtain waivers of subrogation rights against Hughes and its
        Associates from I-COGC's insurers, if any.

        This indemnity shall not apply to Hughes or its Associates to the extent
        that they make a claim against I-COGC as a direct or indirect customer
        of I-COGC.

13.6    I-COGC shall defend and indemnify Hughes from any claims made by any
        third party against Hughes arising from any misrepresentation by I-COGC
        or any of its Affiliates to any third party in connection with the
        Launch Services and Management Services.

13.7    Neither Party shall be entitled to claim to be, nor shall it be,
        indemnified both under this Contract and under ARTICLE 13 of the
        Satellite Contract in respect of any loss, costs, claims, damages or
        expenses arising out of or in relation to the same event or
        circumstance.

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ARTICLE 14  WARRANTY

14.1    Launch Services. Hughes provides no warranty, either express or implied,
        in relation to any Launch Service provided herein, save as provided in
        this ARTICLE 14.

14.2    Management Services. Hughes warrants, in relation to the Management
        Services, that all services shall be performed in a professional and
        workmanlike manner consistent with generally accepted custom and
        practice in the industry.

14.3    Longterm Launch Service Agreements. Hughes warrants and I-COGC has
        entered into this Contract on the basis that the provisions of this
        Contract including EXHIBITS B through E and EXHIBIT I are reflected by
        binding and enforceable rights and remedies under the Longterm Launch
        Service Agreements which Hughes has entered into (or in the case of
        Zenit, which Hughes intends to enter into) with the relevant Launch
        Service Providers. Hughes further warrants that insofar as any
        provisions of this Contract (other than those contained in EXHIBITS B
        through E) are not reflected by or are in conflict with the rights and
        remedies granted to I-COGC under EXHIBITS B through E and EXHIBIT I that
        Hughes has now or will obtain any rights and remedies viz-a-viz the
        Launch Service Provider(s) as are necessary to fulfill the provisions of
        this Contract. In addition, Hughes shall not enter into any modification
        or amendment to any Longterm Launch Service Agreement which modifies
        I-COGC's rights as specified in this Contract including EXHIBITS B
        through E and EXHIBIT I without the prior written approval of I-COGC,
        which approval shall not be unreasonably withheld.

14.4    Pursuit of Rights and Remedies. Hughes warrants that it shall utilize
        its reasonable efforts to initiate and pursue all rights and remedies
        specified in this Contract or EXHIBITS B through E, as applicable,
        including recovery or enforcement by legal or arbitral proceedings or
        utilization of any existing corporate guarantee or other financial
        guarantee or security.

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ARTICLE 15  RISK TO SATELLITE

15.1    Risk. The Parties are aware and agree that the use of expendable launch
        vehicles to launch satellites into orbit involves a degree of risk to
        the relevant satellite. By this Contract, the Parties have made a
        deliberate, knowing allocation between them of that risk and I-COGC
        shall solely bear the risk of loss for any Satellite launched hereunder.

15.2    Right to Destroy. The relevant Range Safety Officer or equivalent Launch
        Service Provider personnel shall be authorized to destroy, without
        liability or indemnity to the Launch Service Provider or Hughes, the
        relevant Launch Vehicle and Satellite if such action is mandated.

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ARTICLE 16 U.S. GOVERNMENT THIRD PARTY INDEMNIFICATION

In the event that I-COGC, at its sole discretion, is not reasonably satisfied
that the U.S. Government third party indemnification coverage identified in the
Commercial Space Launch Act is afforded to I-COGC, and consequently I-COGC
elects to procure insurance in lieu of such U.S. Government third party
indemnification coverage, Hughes agrees to reimburse for   *   of I-COGC's
direct documented cost of such insurance not to exceed the value of Hughes'
Management Services Fee identified in ARTICLE 4.1.

Notwithstanding the above, in the event that:

1)      The Commercial Space Launch Act is clarified such that I-COGC is
        reasonably satisfied that it is included in such U.S. Government third
        party indemnification coverage; or

2)      The Commercial Space Launch Act expires or is modified such that U.S.
        Government third party indemnification coverage is no longer available
        to launch vehicle customers;

then Hughes shall have no obligation to reimburse I-COGC for any costs procure,
or share in the procurement of any insurance deemed necessary by I-COGC.

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

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ARTICLE 17 TERMINATION

17.1    I-COGC Termination. I-COGC may terminate any unperformed portion of this
        Contract as specified below.

        17.1.1 I-COGC Termination For Convenience. At any point in time prior to
        Launch, I-COGC may direct Hughes, in writing, to terminate any Launch
        Service(s) provided herein for I-COGC's convenience. As of the date
        specified (the "Effective Termination Date") in the written notice of
        termination from I-COGC, Hughes shall take the following actions:

        1)      stop the provision of Management Services under this Contract on
                the Effective Termination Date and to the extent specified in
                the notice of termination; and

        2)      terminate the appropriate Launch Service(s) on the Effective
                Termination Date; and

        3)      settle all outstanding liabilities and all claims arising out of
                such termination in accordance with the provisions of this
                ARTICLE 17, TERMINATION.

            17.1.1.1 Termination Liability Prior To Or On 05 July 1996. For
                each Launch Service terminated by I-COGC in accordance with
                Paragraph 17.1.1 above prior to or on 05 July 1996, I-COGC shall
                be liable to Hughes for:

                (a) for each Launch Service provided via a Longterm Launch
                Service Agreement, an amount of   *   per terminated Launch
                Service; or

                (b) for each Launch Service not provided via a Longterm Launch
                Service Agreement, an amount resultant from the relevant formula
                in CALCULATION 2, as defined in EXHIBIT I, TERMINATION LIABILITY
                CALCULATION.

        * Confidential Treatment Requested and the Redacted Material has been
          separately filed with the Commission.

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                17.1.1.2 Termination Liability After 05 July 1996. For each
                Launch Service terminated by I-COGC in accordance with Paragraph
                17.1.1 above, after 05 July 1996, I-COGC shall be liable to
                Hughes for an amount resultant from the relevant formula in
                CALCULATION 2, as defined in EXHIBIT I, TERMINATION LIABILITY
                CALCULATION.

        17.1.2 I-COGC Termination For Hughes Default. Provided that I-COGC is
        not in default of any term of this Contract, I-COGC may terminate, prior
        to Launch, any Launch Service in the event any of the following events
        occur:

        1)      Hughes breaches a material term of (i) this Contract; or (ii)
                the Satellite Contract; or (iii) a Launch Service Agreement and
                such breach of a material term by Hughes results in any Launch
                Service(s) provided herein being terminated for default by the
                relevant Launch Service Provider; or

        2)      Hughes shall (A) commence a voluntary case under the US
                Bankruptcy Code (as now or hereafter in effect) (the "Code"); or
                (B) file a petition seeking to take advantage of any other laws,
                domestic or foreign, relating to bankruptcy, insolvency,
                reorganization, winding up or composition or adjustment of
                debts; or (C) consent to or fail to contest in a timely and
                appropriate manner any petition filed against it in an
                involuntary case under the Code or other laws or such a case
                shall not have been dismissed or stayed within thirty (30) days
                of the filing of the petition commencing the same; or (D) apply
                for, or consent to, or fail to contest in a timely and
                appropriate manner, the appointment of, or the taking of
                possession by, a receiver, custodian, trustee, liquidator or the
                like of itself or of a substantial part of its assets, domestic
                or foreign; or (E) admit in writing its inability to pay, or
                generally not be paying its debts (other than those that are the
                subject of a bona fide dispute) as they become due; or (F) make
                a general assignment for the benefit of creditors; or (G) Hughes
                or the Hughes Parent Company sells, transfers or otherwise
                disposes of all or substantially all of its assets (other than
                for full consideration) and as a result the Parent Company
                Guarantee provided by Hughes is prejudiced and adequate
                security, in a form reasonably acceptable to I-COGC, is not
                additionally provided; or (H) take any action for the purpose

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                of effecting any of the foregoing; or (I) a case or other
                proceeding shall be commenced against Hughes in any court of
                competent jurisdiction seeking (i) relief under the Code or
                under any other laws, domestic or foreign, relating to
                bankruptcy, insolvency, reorganization, winding up or adjustment
                of debts; or (ii) the appointment of a trustee, receiver,
                custodian, liquidator or the like of Hughes or of all or any
                substantial part of its assets, domestic or foreign and such
                case or proceeding shall continue undismissed or unstayed for a
                period of thirty (30) days, or an order granting the relief
                request in such case or proceeding (including, but not limited
                to, an order for relief under the Code) shall be entered; or

        3)      If the interrelated Satellite Contract is terminated by I-COGC
                solely due to a default by Hughes under the Satellite Contract.

           17.1.2.1 For each Launch Service(s) terminated by I-COGC in
                accordance with Paragraph 17.1.2 above, I-COGC shall be liable
                to Hughes for an amount resultant from the formula in
                CALCULATION 1, as defined in EXHIBIT I, TERMINATION LIABILITY
                CALCULATION.

        17.1.3. I-COGC Termination For Launch Service Provider Default. I-COGC
        shall, at its sole discretion, have the right to direct Hughes to
        terminate any Launch Service (which termination shall be effected by
        Hughes by either (i) terminating the relevant Launch Services or (ii)
        the Conversion of a Firm Launch to a Hughes Optional Launch) prior to
        Launch, if the Launch Service Provider is in material default of the
        terms and conditions of the relevant Launch Service Agreement, as
        specified in this Contract including EXHIBITS B through E.

        Upon the termination or Conversion of the Launch Service by Hughes on
        behalf of I-COGC, the following shall occur:

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           17.1.3.1 Termination Settlement. I-COGC shall be entitled to
                receive a termination settlement consisting of (i) in the event
                of a conversion, a refund of all payments submitted against the
                Launch Service Fee for the terminated Launch Service; and (ii)
                in the event of a Launch Service termination, (a) a refund of
                all payments submitted against the Launch Service Fee for the
                terminated Launch Service, and (b) reimbursement for direct
                damages or Launch Vehicle reprocurement fees as defined in the
                Table below. In addition to the above, Hughes shall retain a
                share of the Management Services fee, as such share is
                calculated in CALCULATION 2 of EXHIBIT I, TERMINATION LIABILITY
                CALCULATION.

               <TABLE>
<CAPTION>
                LAUNCH
               SERVICE
               PROVIDER            DIRECT DAMAGE OR REPROCUREMENT FEE VALUE
<S>                            <C>
               Delta-III      For a terminated Delta-III Launch Service, Hughes
                              shall reimburse I-COGC for direct damages related
                              to the terminated Launch Service not to exceed   *
                              . I-COGC shall submit an invoice to Hughes which
                              includes a summary of the applicable direct
                              damages within twenty (20) days of determining the
                              same.

               Proton         In the event of an "anticipatory repudiation" by
                              the Proton Launch Service Provider of its
                              obligations under the Launch Service Agreement,
                              Hughes shall provide to I-COGC either (i)
                              equivalent Launch Services via an alternate Launch
                              Vehicle, taking into account the launch manifest
                              of such an alternative Launch Service Provider, or
                              (ii)   *   per affected Launch, whichever the
                              Proton Launch Service Provider elects to provide.

               Zenit          For a terminated Zenit Launch Service, Hughes
                              shall pay to I-COGC a reprocurement fee of   *
                              for each terminated Launch Service.

</TABLE>

               * Confidential Treatment Requested and the Redacted Material has
                 been separately filed with the Commission.

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                17.1.3.2 Hughes Liability. Notwithstanding any other Article or
                term in this Contract, in the event that Hughes elects to
                Convert a Firm Launch Service to an Optional Launch Service (as
                defined in EXHIBIT C and E) for utilization on another Hughes
                program when I-COGC has the right to terminate a Launch Service
                Provider for default as specified in ARTICLE 13 of EXHIBIT C,
                I-COGC RIGHTS AND REMEDIES FOR DELTA-III LAUNCH SERVICES or
                ARTICLE 14 of EXHIBIT E, I-COGC RIGHTS AND REMEDIES FOR ZENIT
                LAUNCH SERVICES, Hughes shall be liable to I-COGC for the
                amounts specified above regardless of receipt of any payment
                from the relevant Launch Service Provider.

                17.1.3.3 Hughes Default. Notwithstanding any other provision of
                this Contract, in no event shall any breach or default by any
                Launch Service Provider be considered to be a breach or default
                of this Contract by Hughes.

17.2.   Hughes Termination for I-COGC Default Provided that Hughes is not in
        default of any terms of this Contract, Hughes may terminate, prior to
        Launch, any Launch Service(s) provided in this Contract for default upon
        written notice to I-COGC at any time after the occurrence of any of the
        following:

        1)      Failure of I-COGC to make any payment validly due to Hughes
                hereunder when due, provided such failure is not cured within a
                period of thirty (30) calendar Days following receipt of written
                notice thereof from Hughes.

        2)      Failure of I-COGC to maintain the irrevocable Letter of Credit
                in the amount specified in ARTICLE 4, CONTRACT PRICE, PAYMENT
                AND ADJUSTMENTS, provided such failure is not cured within a
                period of five (5) Business Days following receipt of written
                notice thereof from Hughes.

        3)      I-COGC passes a resolution for winding-up or a petition is
                presented for I-COGC's winding-up (unless such resolution or
                petition for winding up is pursuant to a scheme of corporate
                reconstruction or amalgamation and there is no adverse effect on
                the payment obligations to Hughes hereunder) and, unless
                granted, is not dismissed within thirty (30) Days from
                presentation; or

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                I-COGC becomes unable to pay its debts as they become due; or a
                receiver is appointed over all or a substantial part of I-COGC's
                assets and the appointment is not discharged within thirty (30)
                Days; or I-COGC or I-COGC's Parent Company sells, transfers, or
                otherwise disposes of all or the greater part of its assets
                (other than for full consideration) and as a result the Parent
                Company Guarantee provided by I-COGC is prejudiced and adequate
                security in a form reasonably acceptable to Hughes is not
                additionally provided.

        4)      If the interrelated Satellite Contract is terminated for any
                other reason than a default by Hughes under the Satellite
                Contract.

        5)      If any Launch Service provided under this Contract is terminated
                by the Launch Service Provider for default due to: (i) a failure
                of payment by I-COGC under this Contract; or (ii) a Launch
                Service postponement requested or caused by I-COGC, or (iii) the
                breach by I-COGC of a material term of this Contract which, as a
                direct result, is the sole cause of a Launch Service termination
                by the relevant Launch Service Provider against Hughes provided
                always that the right of termination under this ARTICLE 17.2
                shall only apply to the Launch Service so affected.

        17.2.1 For each Launch Service(s) terminated by Hughes in accordance
        with Paragraph 17.2 above, I-COGC shall be liable to Hughes for the
        amount resultant from the relevant formula in CALCULATION 2, as defined
        in EXHIBIT I, TERMINATION LIABILITY CALCULATION.

        17.2.2 The rights and remedies provided to Hughes in this Paragraph 17.2
        shall be exclusive and in lieu of any other rights and remedies provided
        by law or in equity.

17.3    Termination Liability Mitigation. Without prejudice to the Delta-III
        Termination Liability Mitigation as specified in EXHIBIT I, TERMINATION
        LIABILITY CALCULATION, for any Launch Service terminated after 05 July
        1996, Hughes shall utilize its reasonable efforts to mitigate any
        resultant termination liability which I-COGC is liable for by utilizing
        the rights granted by the relevant Launch Service Agreement or such
        other rights or remedies negotiated with the Launch Service

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        Provider, if any. Hughes shall attempt to mitigate the applicable
        termination liability for a period of eighteen (18) Months after the
        relevant termination event or the time period granted by the relevant
        Launch Service Agreement, whichever is less. The mitigation
        responsibility shall not require Hughes to incur or pay any Launch
        Revision Fees or any other charge whatsoever.

        In furtherance of the above, Hughes as its sole obligation shall
        contact, with I-COGC if requested, any Hughes Customer which may be able
        to utilize the terminated Launch Service(s) for the purposes of
        determining if the Hughes Customer has any interest in assuming or
        acquiring the terminated Launch Service. I-COGC shall have the right to
        review and accept or reject, prior to definitization, any proposed
        business transaction between Hughes, the Launch Service Provider and the
        relevant Hughes Customer. Upon receipt from Hughes, I-COGC shall provide
        acceptance or rejection of any proposed business transaction within
        fourteen (14) calendar Days.

        In addition, Hughes shall use its reasonable efforts to negotiate the
        assignment, or novation, of the rights and benefits for any outstanding
        Launch Service to I-COGC if this Contract is terminated due to a default
        by Hughes under the Satellite Contract or this Contract. Any transfer,
        assignment, or novation of a Launch Service to I-COGC shall be subject
        to the terms of the relevant Launch Service Agreement and approval of
        the relevant Launch Service Provider. I-COGC shall have the right to
        review and accept or reject, prior to definitization, any proposed
        assignment, or novation.

        I-COGC agrees that any bona fide offer delivered by Hughes to I-COGC for
        review shall be deemed to constitute the exercise of reasonable efforts.
        Upon execution of the applicable business transaction, Hughes shall
        reimburse to I-COGC the termination liability mitigation value within
        five (5) Business Days from receipt of such value from the respective
        Launch Service Provider or Hughes Customer, as appropriate.

17.4    Maximum Termination Liability. In no event shall I-COGC be liable to
        Hughes under this ARTICLE 17 for any termination liability value greater
        than the Contract Price.

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        Any termination payment due to Hughes from I-COGC shall give credit for
        any amounts paid by I-COGC in respect of the terminated Launch
        Services).

17.5    Management Services Termination. For the purposes of this ARTICLE 17,
        any termination of a Launch Services shall include the termination of
        the associated Management Services and the cost of such termination of
        the associated Management Services is included within the amounts
        derived from CALCULATIONS 1 and 2 of EXHIBIT I, TERMINATION LIABILITY
        CALCULATION.

17.5    Remedies. In the event that the terminated Launch Service Provider fails
        to provide any termination settlement payment to Hughes, as specified in
        this ARTICLE 17, Hughes shall utilize its reasonable efforts to initiate
        and pursue all remedies specified in this Contract including EXHIBITS B
        through E, as applicable, including recovery by legal or arbitral
        proceedings or the utilization of any existing corporate guarantee or
        other financial guarantee or security. In no event shall Hughes be
        liable to I-COGC for any Launch Service Provider termination settlement
        payment or remedy until Hughes has received such termination settlement
        payment or remedy from the Launch Service Provider. Failure of Hughes to
        receive or obtain any termination settlement or remedy from the relevant
        Launch Service Provider shall not be considered a breach or default of
        this Contract by Hughes.

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ARTICLE 18 DATA RIGHTS

Neither Party nor any Launch Service Provider shall obtain rights or ownership
to any intellectual property utilized and/or provided by the other Party under
this Contract or by any Launch Service Provider.

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ARTICLE 19 RESERVED

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ARTICLE 20 RIGHTS IN INVENTION

Neither Party shall obtain any rights to any invention developed or utilized by
the other Party or its Associates in the performance of this Contract.

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ARTICLE 21 CONFIDENTIALITY

21.1    The Parties may provide or exchange proprietary information during the
        performance of the Work, in oral or written form, which may include
        specifications, drawings, sketches, models, samples, computer programs,
        reports, data, techniques, designs, codes, documentation, and financial,
        statistical or other technical information essential to the objectives
        of this Contract. All disclosures of such information will be treated as
        proprietary if marked as "Proprietary" by the Party making the
        disclosure at the time of disclosure.

21.2    Subject to the provisions of ARTICLE 21.3 below, the Party receiving
        the proprietary information of the other Party shall maintain such
        information in confidence and shall not use such information except as
        expressly authorized by this Contract. Each Party agrees to use the same
        care and discretion to avoid unauthorized disclosure, publication or
        dissemination of the other Party's proprietary information and the
        unauthorized use thereof as the receiving Party uses with respect to
        similar information of its own, but in no event, less than reasonable
        care. Should it become legally necessary for either Party to disclose
        certain of the other Party's proprietary information to a third party,
        it shall be disclosed only to the extent required by law and after a
        five (5) Days prior written notification to the other Party of the
        requirement for disclosure.

21.3    The obligations of confidentiality and restrictions on use specified in
        this ARTICLE shall not apply to any information that:

        A.      is already in the possession of the receiving Party without
                obligation of confidentiality at the time of disclosure;

        B.      is independently developed by the receiving Party or any of its
                Affiliates or subcontractors prior to disclosure as evidenced by
                appropriate documents;

        C.      is or becomes publicly available without breach of this Contract
                and without the fault of the receiving Party;

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        D.      is lawfully and rightfully received by the receiving Party from
                a third party; or

        E.      is released for public disclosure by the disclosing Party.

        Specific information shall not be deemed to be available to the public
        or in possession of the receiving Party merely because it is embraced by
        more general information so available or in the receiving Party's
        possession.

21.4    Hughes shall take best efforts necessary, including the appropriate
        contractual provisions in subcontracts, to ensure the confidentiality of
        all proprietary information of I-COGC which may be disclosed to
        Subcontractors and Launch Service Providers.

        I-COGC shall take best efforts necessary, including the appropriate
        contractual provisions in consulting agreements, to ensure the
        confidentiality of all proprietary information of Hughes which may be
        disclosed to Consultants.

21.5    Except as otherwise provided in this Contract including but not limited
        to ARTICLE 18, DATA RIGHTS herein, the receiving Party agrees that: (i)
        any proprietary information disclosed hereunder shall be used by the
        receiving Party solely for the purpose of performing its functions in
        connection with the Party's relationship with respect to the Work; (ii)
        it will not use the proprietary information disclosed hereunder for any
        other purpose; and (iii) it will not distribute, disclose or disseminate
        to anyone such proprietary information of the disclosing Party, except
        that either Party may disclose to its own employees or subcontractors on
        a need-to-know basis, and either Party may disclose with the consent of
        the disclosing Party which consent will not be given unless such third
        party executes a proprietary data protection agreement with terms
        consistent with the requirements herein prior to receiving such
        information.

21.6    The Parties will specify individuals in writing as the point of contact
        for receiving proprietary information exchanged between the Parties
        pursuant to this Contract.

21.7    I-COGC shall maintain EXHIBITS B through E, in accordance with the
        Proprietary Data Agreement of even date executed between the Parties.

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21.8    The confidentiality obligations in this ARTICLE 21 shall survive
        expiration or termination of this Contract for whatever cause.

21.9    Nothing herein shall require a Party to disclose proprietary information
        to another.

21.10   The obligations imposed by this ARTICLE 21 shall be limited in time only
        by the events listed in ARTICLE 21.3, A through E.

21.11   Neither Party shall disclose the terms or conditions of this Contract,
        except as may be required to perform this Contract, to acquire financing
        or insurance or the benefit thereof, in support of arbitration or legal
        proceedings relating hereto, or as required by its Government or in the
        normal course of reporting to its parent company of for any other reason
        with the consent of the other Party, which consent shall not be
        unreasonably withheld.

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ARTICLE 22 INTERPRETATION

22.1    Applicable Law

        This Contract and any performance related thereto shall be interpreted
        and construed, governed and enforced in accordance with the Laws of
        England; it being understood that the UN Convention on the International
        Sale of Goods shall not be applicable.

22.2    Amendments

        The Contract may not be modified except by written amendment signed by
        duly authorized representatives of both Parties.

        The responsible authorized representatives of the Parties may be added
        to or changed from time to time by written notice to the other Party.
        Until further notice, the responsible authorized representatives are as
        stated in ARTICLE 24, NOTICES.

        For the purpose of administration of this Contract, including
        amendments, any communication between I-COGC and Hughes shall be
        enforceable and binding upon the Parties only if signed by the
        appropriate responsible authorized representatives.

22.3    Changes Requested bar Hughes or I-COGC

A.      Any changes requested by Hughes during the performance of this Contract,
        within the general scope of this Contract, which will or may add or
        delete Work, affect the provision of Launch Services or Management
        Services or will affect or may affect any other requirement of this
        Contract, shall be submitted in writing to I-COGC within an acceptable
        time period prior to the proposed date of the change. Such submittal
        shall allow I-COGC a reasonable period of time to evaluate Hughes'
        requested change. If such Hughes' requested change causes an increase or
        decrease in the total Contract Price, Hughes shall submit a proposal to
        I-COGC.

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B.      I-COGC shall notify Hughes in writing within thirty (30) Days after
        receipt of the requested change and price adjustment, if any, whether or
        not it agrees with and accepts such change. If I-COGC agrees with and
        accepts the Hughes' requested change, Hughes shall proceed with the
        performance of the Contract as changed and an amendment to the Contract
        reflecting such change, and price adjustment, if any, shall be issued.
        If I-COGC does not agree with such Hughes' requested change, the Parties
        shall attempt to reach agreement on such change. In the event the
        Parties are unable to reach agreement on such change, or price
        adjustment, if any, or both, Hughes shall proceed with the performance
        of the Contract, as unchanged.

C.      For any changes requested by I-COGC during the performance of this
        Contract which will or may affect the provision of Launch Services or
        Management Services, Hughes shall respond to that request in writing to
        I-COGC within thirty (30) Days after such request. If such I-COGC
        requested change causes an increase or decrease in the total Contract
        Price, Hughes shall submit to I-COGC, at the time the response to the
        requested change is submitted, the details of such increase or decrease.
        If I-COGC should question the values involved in any proposal by Hughes,
        subject to the execution of a non-disclosure agreement between all
        relevant Parties, Hughes shall provide access to a third party auditor
        acceptable to both Parties, which third party auditor may review the
        relevant cost documentation and certify to I-COGC as to the validity of
        the Hughes proposal. I-COGC shall notify Hughes in writing, within a
        reasonable time after receipt of Hughes' response, whether or not it
        agrees with and accepts Hughes' response. If I-COGC agrees with and
        accepts Hughes' response, Hughes shall proceed with the performance of
        the Contract as changed and an amendment to the Contract reflecting such
        change, and price adjustment, if any, shall be incorporated into the
        Contract. If I-COGC does not direct such change, then Hughes shall
        proceed with the performance of the Contract as unchanged.

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ARTICLE 23 PUBLICITY

Each Party shall obtain the prior written approval of the other Party, which
approval shall not be unreasonably withheld or delayed, concerning the content
and timing of news releases, articles, brochures, advertisements, prepared
speeches and other information releases concerning the Work performed or to be
performed hereunder, within a reasonable time prior to the release of such
information. For the avoidance of doubt, each Party shall be allowed to
publicize the award of the Contract, subject to the approval process stated
above.

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ARTICLE 24 NOTICES

All notices, demands or other communications required or permitted to be given
or made hereunder shall be in writing and delivered personally or sent by
prepaid first class post, or by telex, telefax or cable addressed to the
intended recipient thereof at its address set out below or to such other address
or telex or telefax number as either Party may from time to time duly notify the
other.

        A.      In respect of I-COGC, to:

                I-CO Global Communications (Operations) Ltd.
                c/o I-CO Services Limited
                1 Queen Caroline Street
                Hammersmith, London W6 9BN
                United Kingdom
                Telephone:   (0181) 600-1000
                Facsimile:   (0181) 600-1199
                Attention:   Olof Lundberg
                             Chief Executive Officer

                cc:          Space Segment Contracts Administrator
                             ICO Program Office
                             Hughes Space & Communications, MS: SC/S16/V346
                             PO Box 92919
                             Los Angeles, CA, 90009
                             Phone: (310) 364-9383
                             Facsimile: (310) 364-9495

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         B.      In respect of Hughes, to:

                 Hughes Space and Communications International, Inc.
                 Bldg. S24, M/S D545,
                 Post Office Box 92919, Airport Station,
                 Los Angeles, California 90009
                 Telephone: (310) 364-5729
                 Facsimile: (310) 364-9644
                 Attention: Dennis R. Beeson
                            Manager, Contracts

                 cc:    John Perkins
                        Vice-President, Launch Services Acquisition &
                        Risk Management
                        Bldg: R35 M/S: D435
                        Phone: (310) 364-4791
                        Facsimile: (310) 364-4775

Any notice or other document if served by post, shall be deemed to have been
served at the expiration of seven (7) Days after the time when the letter
containing the same was posted, and in proving such service it shall be
sufficient to prove that the letter containing the notice or document was
properly addressed, stamped and posted. A notice sent by telex, telefax or cable
is deemed to have been served: (1) two (2) hours after dispatch, if dispatched
on a Business Day before 3:00 PM; or (2) in any other case, at 10:00 AM on the
Business Day after the date of dispatch. Here a Business Day means a Business
Day in the city or other location to which the notice is sent, and the times
mentioned are those in that location.

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ARTICLE 25 INTEGRATION

This Contract, together with the EXHIBITS, contains the entire agreement between
the Parties relating to the subject matter hereof. All prior understandings,
representations and warranties (including those contained in sales, promotional
and/or marketing materials) by and between the Parties, written or oral, which
may be related to the subject matter hereof in any way, are superseded by this
Contract.

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ARTICLE 26 ASSIGNMENT

26.1    Hughes shall not assign, novate or transfer this Contract or any of its
        rights, duties or obligations thereunder to any person or entity, in
        whole or part without the prior written consent of I-COGC (which
        approval shall not be unreasonably withheld or unduly delayed) except
        that Hughes may assign, novate or transfer this Contract, and its duties
        and obligations thereunder either in whole or in part, to any Hughes
        Affiliate which is not engaged in business competitive to I-COGC
        provided always that Hughes shall remain liable with respect to
        performance of all duties and obligations set forth in this Contract,
        including compliance with all applicable laws and regulations and
        provided further that the Hughes Guarantee specified in EXHIBIT H,
        HUGHES GUARANTEE, remains in full force and effect.

26.2    I-COGC shall have no right to assign, novate or transfer this Contract,
        or any of its rights, duties or obligations hereunder without the prior
        written consent of Hughes (which consent shall not be unreasonably
        withheld or unduly delayed), except to any I-COGC Affiliate or to a
        third party financing the Satellites or Launch Services provided that
        each such assignment, novation or transfer shall have no material
        adverse effect on a material obligation of I-COGC under this Contract,
        including, but not limited to, payment obligations to Hughes under this
        Contract.

26.3    In the case of an assignment, novation or transfer of this Contract by
        I-COGC in accordance with ARTICLE 26.2, the I-COGC Guarantee specified
        in EXHIBIT G, I-COGC GUARANTEE, shall remain in full force and effect
        save where the assignment, novation or transfer is to a third party
        financing the Satellites or Launch Services, in which case Hughes'
        consent to release the said I-COGC Guarantee may be requested by I-COGC
        and such consent shall not be unreasonably withheld, or unduly delayed.

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26.4    I-COGC shall give fifteen (15) Business Days prior notice to Hughes of
        any assignment, novation or transfer and brief details explaining the
        proposed transaction.

26.5    This Contract shall be binding upon the Parties hereto and their
        successors and permitted assigns.

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ARTICLE 27 SEVERABILITY

In the event any one or more of the provisions of this Contract shall, for any
reason, be held to be invalid or unenforceable, the remaining provisions of this
Contract shall be unimpaired, and the invalid or unenforceable provision shall
be replaced by a mutually acceptable provision which, being valid and
enforceable, comes closest to the intention of the Parties underlying the
invalid or unenforceable provision.

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ARTICLE 28 RESERVED

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ARTICLE 29 RESERVED

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ARTICLE 30 DISPUTES AND ARBITRATION

30.1    If, during the course of performance hereunder, a dispute arises
        between I-COGC and Hughes as to the rights or obligations of either
        Party under this Contract, either Party may give written notice of its
        objections and the reasons therefor ("Dispute Notice") and may recommend
        corrective action. Hughes' Program Manager shall consult with I-COGC's
        authorized senior program management representative in an effort to
        reach a mutual agreement to overcome such objections. In the event
        mutual agreement cannot be reached within five (5) Business Days of such
        notice, the respective positions of the Parties shall be forwarded to
        I-COGC's Chief Executive Officer and Hughes' President, for discussion
        and an attempt to reach mutual agreement.

30.2    If mutual agreement cannot be reached within fifteen (15) Business Days
        of the Dispute Notice, such dispute may be referred on the application
        of either Party for final determination to an arbitration tribunal
        convened by the London Court of International Arbitration which shall be
        conducted by three arbitrators in the English language.

30.3    The place of arbitration shall be London, England.

30.4    The award rendered by the arbitration tribunal shall be binding on both
        Parties, and shall be enforceable by any court of competent
        jurisdiction. The cost of arbitration, including the fees and expenses
        of the arbitrators, will be shared equally by the Parties, unless the
        award otherwise provides. Each Party shall bear the cost of preparing
        and presenting its own case, unless the award otherwise provides.

30.5    Notwithstanding anything else contained herein, the Parties agree that
        time is of the essence with regard to the time limits imposed by this
        ARTICLE 30 in resolving such dispute.

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ARTICLE 31 RESERVED

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ARTICLE 32 REPLACEMENT LAUNCHES

32.1    Replacement Launch Services. If any Launch Service herein should result
        in a mission failure, I-COGC may request Hughes to provide a replacement
        Launch proposal. Such request shall include I-COGC's preferred Launch
        Service Provider(s), the date on which the Satellite is anticipated to
        be ready for launch and any mission specific data which will influence
        the provision of Launch Services for that Satellite. Within thirty (30)
        Days of receipt of such a request, Hughes shall submit a proposal to
        I-COGC for the acquisition of a replacement Launch Service. Any Hughes
        proposal shall be based upon and subject to the terms of the applicable
        Launch Service Agreement(s). Hughes agrees to provide to I-COGC any
        priority scheduling right or benefit allowed for in the applicable
        Launch Service Agreement(s) for the mission failure.

32.2    Hughes Proposal. Any Hughes proposal for a replacement Launch under an
        existing Longterm Launch Service Agreement shall: (i) be based upon, and
        be subject to, the provisions of the relevant EXHIBIT(S) B through E;
        (ii) utilize the Launch Service Fee and payment schedules specified in
        Table 4 and Table 5 of ARTICLE 4, CONTRACT PRICE, PAYMENT AND
        ADJUSTMENTS; and (iii) include a fee of   *   per Launch Service. Any
        Hughes proposal for a replacement Launch which does not utilize a
        Longterm Launch Service Agreement shall include a Management Services
        fee equal to   *   of the relevant Launch Service Cost initially
        proposed, and finally negotiated between Hughes and the Launch Service
        Provider.

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ARTICLE 33 OPTIONS

33.1    Launch Insurance. Upon receipt of a written request from I-COGC, Hughes
        shall submit a proposal to I-COGC for the provision of launch insurance
        for the Launch Services provided herein. Such proposal shall assume that
        the launch insurance shall be obtained by Hughes on behalf of I-COGC and
        that I-COGC shall be the named insured. The written request from I-COGC
        shall identify the Launch Services, the coverage timing and the coverage
        amounts of such launch insurance policy. Any Hughes proposal shall be
        based upon the actual launch insurance cost to Hughes and shall include
        an additional Management Services fee equal to   *   of the actual
        launch insurance cost. I-COGC shall notify Hughes whether it accepts or
        rejects any Hughes proposal within thirty (30) Days of receipt of such
        proposal or by the offer validity date provided by the relevant
        insurance underwriters, whichever is sooner. For the purposes of this
        Paragraph, launch insurance may also include any relaunch, repayment or
        other type of insurance program offered by any Launch Service Provider.

33.2    Additional Launch Services. At any point in time, I-COGC may request
        Hughes to provide additional Launch Services under any Longterm Launch
        Service Agreement. Any such request by I-COGC shall identify the
        required Launch Period, preferred Launch Service Provider and Satellite
        to be launched. Hughes shall provide a written proposal to I-COGC within
        fifteen (15) calendar Days of receipt of such request. Any Hughes
        proposal shall be subject to and conditional upon: i) the existence and
        terms of a Longterm Launch Service Agreement with the Launch Service
        Provider identified in such I-COGC request as of the later of the date
        of (a) the relevant ICOGC request or (b) the Launch Service option
        exercise; ii) compliance with the scheduling constraints specified in
        ARTICLE 3.3.3 herein; iii) the availability of the Launch Vehicle in the
        requested Launch Period, and iv) compliance with the Launch Service Fee
        and payment schedules specified in Tables 4 and 5 of ARTICLE 4, CONTRACT
        PRICE, PAYMENT AND ADJUSTMENTS. For the avoidance of doubt, if Hughes
        has a launch opportunity available under a Longterm Launch Service
        Agreement, subject to the terms of this ARTICLE 33.2, Hughes shall allow
        I-COGC to purchase such launch opportunity to Launch an optional
        Satellite.

        * Confidential Treatment Requested and the Redacted Material has been
          separately filed with the Commission.

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LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT      Contract No. ICOO/95-1003/YW
--------------------------------------------------------------------------------

ARTICLE 34 LIMITATION OF LIABILITY

34.1    In no event shall either Party be liable to the other Party or its
        Associates or customers under or in connection with this Contract under
        any theory of contract, tort, negligence, strict liability or any other
        legal or equitable theory or otherwise for special, collateral,
        punitive, exemplary, consequential, indirect and/or incidental damages
        (including but not limited to lost revenues, loss of goodwill, loss of
        savings, loss of use, interruptions of business and claims of either
        Party or for any other form of economic loss), except as expressly
        provided in this Contract. It is the intent of the Parties that the
        public interest is not involved in the subject matter of this Contract.

<PAGE>   78
LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT      Contract No. ICOO/95-1003/YW
--------------------------------------------------------------------------------

ARTICLE 35 MISCELLANEOUS

35.1    Disclaimer of Agency. None of the provisions of this Contract shall be
        construed to mean that either Party hereto is appointed or is in any way
        authorized to act as an agent of the other Party. This Contract does not
        constitute, create, give effect to, or otherwise recognize a joint
        venture, partnership or formal business organization of any kind, and
        the rights and obligations of the Parties shall be limited to those
        expressly set forth herein.

35.2    Waiver of Breach of Contract. A waiver of any breach of a provision
        hereof shall not be binding upon either Party unless the waiver is in
        writing and such waiver shall not affect the rights of the Party not in
        breach with respect to any other or future breach. No failure or delay
        by any Party or time or indulgence given by it in or before exercising
        any remedy or right under or in relation to this Contract shall operate
        as a waiver of the same nor shall any single or partial exercise of any
        remedy or right preclude any further exercise of the same or the
        exercise of any other remedy or right.

35.3    Term of Contract. This Contract shall remain in full force and effect as
        long as either Party is or may be required to perform any obligation
        pursuant to this Contract.

35.4    Language. With respect to all correspondence relating to this Contract
        and to all material, including labels and markings of equipment,
        submitted by Hughes hereunder, the English language and U.S. units of
        measure, or unit(s) of measure utilized by a Launch Service Provider
        shall be used. Controlling language for this Contract shall therefore be
        the English language.

<PAGE>   79
LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT      Contract No. ICOO/95-1003/YW
--------------------------------------------------------------------------------

35.5    Key Personnel. Hughes agrees that the following individuals are
        necessary for the successful completion of the Management Services and
        Launch Services to be performed under this Contract and shall not be
        removed from the performance of these services without the consent of
        I-COGC, which consent shall not be unreasonably withheld. In the event
        that these personnel become unavailable for any reason and consent is
        given, Hughes shall select suitable replacement personnel who possess
        comparable levels of experience, qualifications and ability.
        Notwithstanding its role in approving key personnel and their
        replacements, I-COGC shall have no supervisory control over their work,
        and nothing in this ARTICLE shall relieve Hughes of any of its
        obligations under this Contract, or of its responsibility for any acts
        or omissions of its personnel.

<TABLE>
<CAPTION>
          Name           Title
          ----           -----
<S>                      <C>
          J. Perkins     Vice-President, Launch Services Acquisition & Risk Management
          G. Dutcher     Program Manager
</TABLE>

<PAGE>   80
LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT      Contract No. ICOO/95-1003/YW
--------------------------------------------------------------------------------

IN WITNESS WHEREOF, this Contract has been issued in two counterparts and signed
in the city of Brussels, Belgium on behalf of I-COGC and Hughes by persons
authorized on their behalf.

HUGHES SPACE AND COMMUNICATIONS INTERNATIONAL, INC.

By:
   -------------------------------
               (Signature)

Name:
     -----------------------------

Title:
      ----------------------------

I-CO GLOBAL COMMUNICATIONS (OPERATIONS) LIMITED

By:
   -------------------------------
               (Signature)

Name:
     -----------------------------

Title:
      ----------------------------

<PAGE>   81
                        Contract Number: ICOO/95-1003/YW

                           LAUNCH SERVICES SUPPLY AND

                               MANAGEMENT CONTRACT

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

                                   Exhibit A
                               STATEMENT OF WORK

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

                                 7 December 1995

I-CO Global Communications                  Hughes Space &
(Operations) Limited                        Communications International,
                                            Inc.

---------------------------                 --------------------------------
Olof Lundberg                               Gerald L. Dutcher
Chief Executive Officer                     Executive Vice President

<PAGE>   82

LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT                         EXHIBIT A

Contract No: ICOO/95-1003/YW                                  STATEMENT OF WORK
--------------------------------------------------------------------------------
                                TABLE OF CONTENTS

<TABLE>
<CAPTION>

<S>     <C>                                                                     <C>
1       MANAGEMENT SERVICES PROVIDED FOR I-COGC GLOBAL COMMUNICATIONS
        (OPERATIONS) LIMITED (I-COGC)  ........................................  1

1.1     Scope..................................................................  1

1.2     Applicable Documents...................................................  1

2       DESCRIPTION OF WORK....................................................  2

2.1     Launch Service Provider Selection And Turn-On..........................  2

2.1.1   Launch Schedules.......................................................  2

2.1.2   Launch Agreements......................................................  2

2.2     Post Launch Service Provider Contract Award............................  2

2.2.1   Management Activities..................................................  2

2.2.1.1 Progress and Technical Meetings........................................  3

2.2.2   Selection of Launch Slot and Launch Date...............................  3

2.2.3   Satellite/Launch Vehicle Technical Activities..........................  3

2.2.4   Documentation..........................................................  4

2.2.5   Launch Vehicle Acceptance .............................................  4

2.2.6   Mission Director.......................................................  5

3       REPORTING..............................................................  6

4       RESERVED...............................................................  7

5       LOGO...................................................................  8

6       LAUNCH CAMPAIGN ACCOMMODATION AND FACILITIES...........................  9

7       PRODUCT ASSURANCE ACTIVITIES & SAFETY..................................  10

7.1     Launch Vehicle Qualification...........................................  10

7.2     Launch Vehicle Failure Reviews.........................................  10

7.3     Requests for Deviation/Waiver..........................................  10

8       PAYLOAD PROCESSING FACILITIES AND SERVICES.............................  11

9       MISSION INTEGRATION....................................................  12

10      POST MISSION SUPPORT SERVICES..........................................  13
</TABLE>

<PAGE>   83

LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT                         EXHIBIT A

Contract No: ICOO/95-1003/YW                                  STATEMENT OF WORK
--------------------------------------------------------------------------------

1       MANAGEMENT SERVICES PROVIDED FOR I-COGC GLOBAL
        COMMUNICATIONS (OPERATIONS) LIMITED (I-COGC)

1.1     Scope. This Statement of Work defines the Management Services to be
        provided by Hughes Space and Communications International, Inc.,
        (Hughes) to I-COGC for the supply of Launch Services and the overall
        management of the Launch Service Agreements for Launch of I-COGC's
        twelve (12) Satellites. Hughes shall assume all day-to-day management
        activities relative to the procurement of Launch Services.

1.2     Applicable Documents. Satellite Contract Between Hughes Space and
        Communications International, Inc. and I-COGC Global Communications
        (Operations) Limited, dated 3 October 1995, Contract Number
        ICOO/95-1002/NR.

<PAGE>   84
LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT                         EXHIBIT A

Contract No: ICOO/95-1003/YW                                  STATEMENT OF WORK
--------------------------------------------------------------------------------

2       DESCRIPTION OF WORK

2.1     Launch Service Provider Selection And Turn-On. Hughes shall ensure that
        the contract provisions with the Launch Service Providers enable Hughes
        to meet the requirements defined in this Statement of Work, and are
        fully consistent with the Satellite design, Designated Launch Site
        processing and mission requirements.

        2.1.1.  Launch Schedules. Hughes shall schedule each of the respective
                Satellite Launches with a Launch Service Provider in sufficient
                time to assure that the scheduling requirements of the Contract
                are satisfied. Hughes shall provide alternate Launch risk
                management plans in the event scheduling problems develop.

        2.1.2   Launch Agreements. Launch Services via Long Term Launch Service
                Agreements shall be employed to satisfy the terms of this
                Contract, or at I-COGC's direction, Hughes shall develop, in
                conjunction with I-COGC, the appropriate and necessary Request
                For Proposal (RFP) documentation (when necessary), consistent
                with the requirements, terms and conditions of this Contract and
                the Satellite Contract to enable the competitive solicitation of
                bids from alternate Launch Service Providers.

                Hughes shall manage this program so as to minimize the impact of
                any Launch Service Provider substitution.

2.2     Post Launch Service Provider Contract Award

        2.2.1   Management Activities. After Launch Service Provider turn-on or
                award of a Launch Service Agreement, Hughes shall provide all
                appropriate management and technical services to support the
                Satellite to Launch Vehicle interface activities and shall be
                responsible for all Contract management functions, including but
                not limited to:

<PAGE>   85
LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT                         EXHIBIT A

Contract No: ICOO/95-1003/YW                                  STATEMENT OF WORK
--------------------------------------------------------------------------------

                - Negotiation of contract changes

                - Management and tracking of program milestones

                - Coordination of data/information exchanges, and

                - Data approvals as required by the Launch Service Agreement

        2.2.1.1 Progress and Technical Meetings. Regular progress meetings shall
                be conducted as necessary with the Launch Service Providers to
                which I-COGC shall be invited. As a minimum these will be held
                at quarterly intervals and may be combined with technical
                interface meetings for expediency.

        2.2.2   Selection of Launch Slot and Launch Date. Hughes shall
                coordinate the development of the Launch Service Master Phasing
                Schedule and monitor progress against major milestones.

                Hughes shall coordinate with I-COGC the selection of the
                relevant Launch Slot and Launch Date consistent with the
                schedule established by I-COGC requirements. Hughes shall
                initiate discussion with I-COGC at least thirty (30) calendar
                Days prior to the determination dates for the establishment of
                the Launch Slot and Launch Date.

        2.2.3   Satellite/Launch Vehicle Technical Activities. Hughes shall
                coordinate the overall schedule for the Launch Services and
                content of meetings and major reviews throughout the
                Satellite/Launch Vehicle integration process.

                Hughes shall coordinate the Launch Vehicle and Satellite
                integration process and provide the management interface to
                ensure that technical requirements, data and analyses are
                established and coordinated between the engineering staffs of
                the Satellite Program Office and the Launch Service Provider.

                Hughes shall maintain and report the status of all action items
                generated from the above meetings and coordinate their
                resolution.

<PAGE>   86

LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT                         EXHIBIT A

Contract No: ICOO/95-1003/YW                                  STATEMENT OF WORK
--------------------------------------------------------------------------------

        2.2.4   Documentation. Hughes shall review and provide I-COGC all
                documentation, analyses and reports prepared under this
                Contract, in accordance with the applicable Launch Service
                Agreement, which are required to successfully complete the
                integration process. These may include, but are not limited to:

                -     Interface Control Documents
                -     Coupled Loads Analysis
                -     Thermal Analysis
                -     Integration and Mission Analyses
                -     Launch Operations and Safety Planning
                -     Separation analysis
                -     Venting analysis
                -     Clearance analysis
                -     Launch operations and safety documents
                -     Payload matchmates and separation shock tests when
                      required.
                -     Trajectory, Guidance Targeting, Accuracy analysis and
                      associated orbit characteristics and dispersion
                -     Launch Vehicle contamination and cleanliness analysis
                -     Launch Failure Reports, if applicable

        2.2.5   Launch Vehicle Acceptance. Hughes shall monitor all work in
                progress and the final acceptance of the Launch Vehicle in
                accordance with the applicable Launch Service Agreement. This
                shall include, but is not limited to:

                -     review of progress reports submitted by the relevant
                      Launch Service Provider
                -     attending major reviews
                -     tracking problem resolutions

        2.2.6   Mission Director

                Hughes shall act in the capacity of Mission Director (i.e., the
                individual responsible for providing the Satellite status during
                the Launch campaign and the final go/no-go decision for Launch
                to the Launch Service Provider) for I-COGC during the Launch.

<PAGE>   87
LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT                         EXHIBIT A

Contract No: ICOO/95-1003/YW                                  STATEMENT OF WORK
--------------------------------------------------------------------------------

3.0     REPORTING

        Hughes shall provide I-COGC with full visibility of Contract and
        technical actions by providing a monthly progress report to the I-COGC
        resident team. The format of this report shall be jointly agreed upon by
        I-COGC and Hughes and shall be adjusted over the life of the program as
        necessary.

        Hughes shall inform I-COGC, or its designated representative, of the
        date and time of all significant meetings (i.e. Preliminary Design
        Reviews, Critical Design Reviews, Management Review Meetings, etc.), and
        I-COGC personnel or their designated representative, as they choose, may
        attend any of the meetings held with the Launch Service Provider and/or
        the Satellite manufacturer. This attendance shall be limited to three
        (3) I-COGC personnel. Additional I-COGC personnel may attend as mutually
        agreed upon by I-COGC, Hughes and the Launch Service Provider.

        Hughes shall notify I-COGC promptly, initially either in person or by
        telephone and then shall confirm in writing within seven (7) Days, of
        any material event, circumstance, or development which the Hughes
        Mission Manager reasonably believes will affect (a) the quality of any
        Launch Vehicle or component part thereof or any services or data and
        documentation to be provided herein, or (b) the Launch Schedule(s)
        herein. Notifications made pursuant to this Paragraph are intended to
        supplement but not replace information available or provided to I-COGC
        pursuant to this Article.

<PAGE>   88
LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT                         EXHIBIT A

Contract No: ICOO/95-1003/YW                                  STATEMENT OF WORK
--------------------------------------------------------------------------------

4.0       RESERVED

          [ILLEGIBLE]
<PAGE>   89

LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT                         EXHIBIT A

Contract No: ICOO/95-1003/YW                                  STATEMENT OF WORK
--------------------------------------------------------------------------------

5.0     LOGO

        The Launch Service Provider shall include provision for the inclusion of
        the I-COGC logo on each Launch Vehicle fairing. I-COGC shall supply
        final details of the logo no later than Launch minus twelve Months
        (2-12) for the first Launch on each type of Launch Vehicle (i.e. Atlas
        IIA, Proton, Delta III, Zenit, etc.).

<PAGE>   90

LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT                         EXHIBIT A

Contract No: ICOO/95-1003/YW                                  STATEMENT OF WORK
--------------------------------------------------------------------------------

6.0     LAUNCH CAMPAIGN ACCOMMODATION AND FACILITIES

        Hughes shall assure that the Launch Service Providers will make
        available office space for up to three (3) I-COGC residents and/or
        representatives at the Launch Service Provider's Satellite processing
        and Designated Launch Site facility, for the duration of the Satellite
        Launch campaign. These facilities shall be co-located with those of the
        Hughes Launch support team. Appropriate telephone, fax, copying and
        other general office facilities shall be provided. I-COGC shall have
        full access to all appropriate data and monitoring facilities at the
        Designated Launch Site which are available to the Hughes Launch team.

        In the case of Proton or Zenit Launches where commercially available
        off-base housing, transport and general living facilities are not
        available, Hughes shall, if requested, arrange to supply these to the
        I-COGC personnel in the same manner provided to its own Launch team. All
        charges, if any, incurred by Hughes for the provision of these living
        facilities, food and transportation shall be billed to I-COGC.

        Note: i For Launches conducted in Baikonur, there is a charge of
                between $115.00 US and $135.00 US (depending on the year of the
                Launch) for lodging and all food service per person per day. A
                charge of $900.00 US per person is levied for round trip
                transportation from Moscow to the Baikonur Launch Site and all
                associated ground transportation.

             ii For Zenit Launches transportation for I-COGC personnel to Long
                Beach, California, and/or any other point of debarkation of the
                command and control ship or any air transportation, or surface
                ship transport to the command and control ship at sea, shall be
                borne by I-COGC. Any cost for I-COGC personnel's lodging, meals,
                transportation and recreation, while on board the command and
                control ship, shall be borne by I-COGC, but shall not to exceed
                $200.00 US per day per person. If Hughes is not charged for
                lodging, meals and transportation while on board the command and
                control ship, no cost will be passed to I-COGC.

<PAGE>   91

LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT                         EXHIBIT A

Contract No: ICOO/95-1003/YW                                  STATEMENT OF WORK
--------------------------------------------------------------------------------

7.0     PRODUCT ASSURANCE ACTIVITIES & SAFETY

        7.1     Launch Vehicle Qualification. Hughes shall ensure that the
                Launch Service Provider clearly indicates the qualification
                status of the Launch Vehicle and assures that any new, modified
                or mission peculiar items have been qualified. All items falling
                into this category shall be highlighted to I-COGC.

        7.2     Launch Vehicle Failure Reviews. Hughes shall ensure that I-COGC
                is appropriately involved in any Launch Vehicle failure review
                board activities relevant to I-COGC Launch Vehicle hardware or
                which may impact the ability of the Launch Service Provider to
                deliver on time. The level of involvement will vary. However any
                failure occurring shortly and in particularly immediately before
                a planned I-COGC Launch shall include full disclosure and
                participation rights.

        7.3     Requests for Deviation/Waiver. All Launch Service Provider
                deviations/waivers affecting key performance margins, interface
                control documents or mission requirements shall be promptly
                submitted to I-COGC for review.

<PAGE>   92
LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT                         EXHIBIT A

Contract No: ICOO/95-1003/YW                                  STATEMENT OF WORK
--------------------------------------------------------------------------------

8.0     PAYLOAD PROCESSING FACILITIES AND SERVICES

        Hughes shall be responsible for arranging all necessary payload
        processing facilities and services required to safely and efficiently
        support Satellite payload processing at the Designated Launch Site,
        including any Satellite test activities.

<PAGE>   93
LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT                         EXHIBIT A

Contract No: ICOO/95-1003/YW                                  STATEMENT OF WORK
--------------------------------------------------------------------------------

9.0     MISSION INTEGRATION

        Hughes shall, as a minimum, conduct the following mission reviews and
        meetings with the Launch Service Provider, to which I-COGC personnel
        shall be invited:

        -       Technical Working Groups (as needed).

        -       Preliminary and Critical Mission Peculiar Design Reviews
                (typically only held once per Launch).

        -       Ground Operations Readiness Reviews (typically at L-12 and L-6
                months).

        -       Launch Vehicle Readiness Review (typically 2 days before each
                Launch)

        -       Launch Readiness Review (typically 1 day before each Launch)

        -       Launch Vehicle quality and/or systems reviews if provided by
                Launch Service Providers.

<PAGE>   94
LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT                         EXHIBIT A

Contract No: ICOO/95-1003/YW                                  STATEMENT OF WORK
--------------------------------------------------------------------------------

10.0    POST MISSION SUPPORT SERVICES

        Hughes shall provide all necessary post mission support services.
        These shall include but are not limited to:

        -       Satellite orbit and attitude data at separation, within 45
                minutes of separation.

        -       Post Launch evaluation report (Satellite flight environment and
                separation assessment) from Launch Vehicle telemetry.

<PAGE>   95
                                                       1 JULY 1996 - AMENDMENT 1

                                                                        4.7.2.6a

                        CONTRACT NUMBER: ICOO/95-1003/YW

                           LAUNCH SERVICES SUPPLY AND
                               MANAGEMENT CONTRACT

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

                                    EXHIBIT F

                             MILESTONE PAYMENT PLAN

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

                                7 DECEMBER 1995

<PAGE>   96
              * [EXHIBIT F AMENDMENT 1 TOTAL OF 7 PAGES HAVE BEEN REDACTED]

              * Confidential Treatment Requested and the Redacted Material has
                been separately filed with the Commission.
<PAGE>   97
                                        *
<PAGE>   98
                                        *
<PAGE>   99
                                        *
<PAGE>   100
                                        *
<PAGE>   101
                                        *
<PAGE>   102
                                        *
<PAGE>   103
                        CONTRACT NUMBER: ICOO/95-1003/YW

                           LAUNCH SERVICES SUPPLY AND

                               MANAGEMENT CONTRACT

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

                                    EXHIBIT G
                                I-COGC GUARANTEE

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

                                 7 December 1995

I-CO Global Communications                  Hughes Space &
(Operations) Limited                        Communications International,
                                            Inc.

---------------------------                 --------------------------------
Olof Lundberg                               Gerald L. Dutcher
Chief Executive Officer                     Executive Vice President

<PAGE>   104

LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT                         EXHIBIT G

Contract No: ICOO/95-1003/YW                                    I-COGC GUARANTEE
--------------------------------------------------------------------------------

1.      In consideration of Hughes Space and Communications International, Inc
        ("Hughes" entering into a contract with I-CO Global Communications
        (Operations) Limited ("I-COGC") for the supply of launch services and
        the management thereof for the I-CO Program dated 7 December, 1995 (as
        such contract may be amended, varied, extended, renewed or supplemented
        from time to time, the "Launch Vehicle Contract" and expressions defined
        in the Launch Vehicle Contract shall have the same meanings in this
        Guarantee) and for sufficient consideration (receipt whereof the
        Guarantor hereby acknowledges) I-CO GLOBAL COMMUNICATIONS (HOLDINGS)
        LIMITED (the "Guarantor") hereby unconditionally guarantees the payment
        on the due date of all sums payable now or in the future to Hughes by
        I-COGC under the Launch Vehicle Contract when and as the same become due
        and the full, prompt and complete performance by I-COGC of all its
        obligations under the Launch Vehicle Contract.

2.      The Guarantor hereby unconditionally and irrevocably agrees as a
        separate, continuing and primary obligation to indemnify Hughes on
        demand should any amount due under Clause 1 not be recoverable from the
        Guarantor on the basis of a guarantee for any reason whatsoever.

3.      The Guarantor's obligations under this Guarantee shall be subject to all
        the relevant terms and conditions of the Launch Vehicle Contract and
        nothing in this Guarantee shall constitute a waiver by I-COGC or the
        Guarantor of any defense, claim or counterclaim available to I-COGC
        under the Launch Vehicle Contract or otherwise. Subject to paragraph 2
        above, the Guarantor's sole obligation under this Guarantee shall be as
        guarantor of the obligations of I-COGC under the Launch Vehicle
        Contract, subject to all of the limitations an such obligations which
        are provided for in such Launch Vehicle Contract or under applicable law
        except for such limitations as may arise in law as a result of
        bankruptcy, insolvency or reorganisation proceedings relating to I-COGC.
        The Guarantor hereby acknowledges that its liability as Guarantor under
        this Guarantee shall not be discharged or impaired in any way by:

        (a)     any compromise or release of or abstention from perfecting or
                enforcing any right or remedy against I-COGC or any other
                person; or

<PAGE>   105
LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT                         EXHIBIT G

Contract No: ICOO/95-1003/YW                                    I-COGC GUARANTEE
--------------------------------------------------------------------------------

        (b)     any release of or granting of time to I-COGC or any other
                indulgence, waiver, consent or concession being granted at any
                time to I-COGC or any other person; or

        (c)     any other act, omission, dealing, matter or thing whatsoever
                (including, without limitation, any change in the memorandum
                or articles of association (or their equivalent) of I-COGC, or
                any irregularity, unenforceability or invalidity of any
                obligations of I-COGC under the Launch Vehicle Contract or the
                liquidation, dissolution, reconstruction, amalgamation or
                bankruptcy of I-COGC or any other change in the corporate
                relationship between the Guarantor and I-COGC including any
                merger, consolidation or sale of assets of I-COGC; or

        (d)     any legal limitation, disability, incapacity or other
                circumstances relating to I-COGC or any other person or any
                amendment to or extension or variation of the terms of the
                Launch Vehicle Contract or any other document referred to in the
                Launch Vehicle Contract.

4.      The Guarantor hereby declares and agrees that this Guarantee shall be
        held by Hughes as a continuing security and shall not be satisfied by
        any intermediate payment or satisfaction of any part of the obligations
        hereby guaranteed and shall remain in full force and effect until all
        the obligations of I-COGC under the Launch Vehicle Contract have been
        performed and all sums payable by I-COGC under the Launch Vehicle
        Contract have been fully paid and discharged in full in each case in
        accordance with the Launch Vehicle Contract and subject to all the
        provisions therein contained.

5.      This Guarantee shall be in addition to, and not in substitution for, any
        other rights which Hughes may now or hereafter have under or by virtue
        of any guarantee or security or agreement or any lien or by operation of
        law or under any collateral or other security now or hereafter held by
        Hughes or to which Hughes may be entitled.

6.      Any release, compromise or discharge of the obligations of the Guarantor
        under this Guarantee shall be deemed to be made subject to the condition
        that it will be void if any payment or security which Hughes may receive
        or have received is set aside or proves invalid for whatever reason.

<PAGE>   106
LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT                         EXHIBIT G

Contract No: ICOO/95-1003/YW                                    I-COGC GUARANTEE
--------------------------------------------------------------------------------

7.      All payments to be made by the Guarantor to Hughes under this Guarantee
        shall be made on the due date in United States Dollars and in cleared
        funds and to such account as Hughes shall specify and shall be made free
        and clear of, and without deduction for or on account of, any present or
        future taxation, unless the Guarantor is required by law or regulation
        to make payment subject to any taxation, in which event such payment
        shall be increased by such amount as may be necessary to ensure that
        Hughes receives a net amount, which, after deducting or withholding such
        taxation, is equal to the full amount which Hughes would have received
        had such payment not been subject to such taxation.

8.      The Guarantor shall be subrogated to the rights of Hughes against I-COGC
        in respect of any amounts paid by the Guarantor to Hughes pursuant to
        the provisions of this Guarantee; provided, however, that the Guarantor
        shall not be entitled to enforce or receive any payments arising out of,
        or based upon, such right of subrogation, or any related claim for
        exoneration, indemnification or reimbursement that the Guarantor may now
        have or hereafter acquire against I-COGC in any way related to or
        arising from the obligations of I-COGC under the Launch Vehicle
        Contract, until such obligations or, as the case may be the relevant
        part thereof, shall have been paid and performed in accordance with the
        terms and conditions of the Launch Vehicle Contract.

9.      In addition to the liability otherwise assumed in this Guarantee, the
        Guarantor shall immediately reimburse Hughes for all costs and expenses,
        including all reasonable legal fees and costs, incurred by Hughes in the
        collection or enforcement of any liability under this Guarantee.
        However, if the Guarantor is the prevailing party in any proceedings to
        collect or enforce any liability under this Guarantee, Hughes agrees
        that it shall immediately reimburse the Guarantor for all costs and
        expenses, including all reasonable legal fees and costs, which the
        Guarantor may incur in connection with any such proceedings, and the
        Guarantor shall have no liability to Hughes under the preceding sentence
        in this paragraph 9 in any such proceeding.

10.     This Guarantee and any provision hereof may be waived, amended, modified
        or supplemented as between Hughes and the Guarantor only by an agreement
        or instrument in writing executed by the Guarantor and Hughes.

11.     Any notice, demand or other communication required or permitted to be
        made

<PAGE>   107
LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT                         EXHIBIT G

Contract No: ICOO/95-1003/YW                                    I-COGC GUARANTEE
--------------------------------------------------------------------------------

        hereunder shall be in writing and signed by or an behalf of the person
        giving it. Except in the case of personal service, any notice shall be
        sent or delivered to the party to be served at the address or to the
        facsimile number set out below and if a person or officer is named for
        the purpose, the notice shall be marked for his attention. Any
        alteration in such details shall, to have effect, be notified to the
        other parties in accordance with this clause.

12.     Service of a notice must be effective by one of the following methods:

        12.2.1  personally on the Chief Executive Officer or the Company
                Secretary of either party and shall be treated as served at the
                time of such notice;

        12.2.2  by prepaid first class post (or by airmail if from one country
                to another) and shall be treated as served on the second (or if
                by airmail the fourth) Business Day after date of posting. In
                proving service it shall be sufficient to prove that the
                envelope containing the notice was correctly addressed, postage
                paid and posted; or

        12.2.3  by delivery of the notice through the letterbox of the party to
                be served or by sending it by facsimile and shall be treated as
                served on the first Business Day after the date of such delivery
                or sending. In proving service by facsimile it shall be
                sufficient to prove that the facsimile was preceded by the
                answerback code of the party to whom it was sent.

A.      In respect of the Guarantor, to:

                        I-CO Global Communications (Holdings) Limited
                        c/o I-CO Services Limited
                        1 Queen Caroline Street
                        London W6 9BN
                        Telephone: (181 600-1000)
                        Facsimile: (181 600-1199)
                        Attention:    Olof Lundberg

<PAGE>   108
LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT                         EXHIBIT G

Contract No: ICOO/95-1003/YW                                    I-COGC GUARANTEE
--------------------------------------------------------------------------------

B.      In respect of Hughes, to:

               Hughes Space and Communications International, Inc
               Bldg. S24, M/S D545
               Post Office Box 92919, Airport Station
               Los Angeles, California 90009
               Telephone (310) 364-5729
               Facsimile (310) 364-9644
               Attention: Dennis R. Beeson
                          Manager, Contracts

13.     This Guarantee shall be governed by, and construed in accordance with
        English law. The provisions of Article 30 of the Launch Vehicle COntract
        (Disputes and Arbitration) shall apply mutatis mutandis to this
        Guarantee.

Dated      day of December, 1995

----------------------------------------
FOR AND ON BEHALF OF
I-CO GLOBAL COMMUNICATIONS
(HOLDINGS) LIMITED

----------------------------------------
FOR AND ON BEHALF OF
HUGHES SPACE AND COMMUNICATIONS
INTERNATIONAL, INC

<PAGE>   109
                        Contract Number: ICOO/95-1003/YW

                           LAUNCH SERVICES SUPPLY AND
                              MANAGEMENT CONTRACT

                                    EXHIBIT H

                                HUGHES GUARANTEE

                                7 DECEMBER 1995

I-CO Global Communications                       Hughes Space &
(Operations) Limited                             Communications International,
                                                 Inc.

---------------------------------                ------------------------------
Olof Lundberg                                    Gerald L. Dutcher
Chief Executive Officer                          Executive Vice President

<PAGE>   110

LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT                        EXHIBIT H

Contract No: ICOO/95-1003/YW                                   HUGHES GUARANTEE
--------------------------------------------------------------------------------

GUARANTEE AGREEMENT ("Guarantee") dated as of December _____, 1995, between
HUGHES ELECTRONICS CORPORATION, a Delaware corporation ("Guarantor") and I-CO
GLOBAL COMMUNICATIONS (OPERATIONS) LIMITED, a company incorporated in the Cayman
Islands as an Exempted Company having its registered office at the Huntlaw
Building, P.O. Box 1350, Fort Street, Georgetown, Grand Cayman, Cayman Islands
("Beneficiary").

For value received, and to induce Beneficiary to enter into that certain
Contract for Launch Services Supply and Management, dated December __, 1995 (the
"Contract") with HUGHES SPACE AND COMMUNICATIONS INTERNATIONAL, INC., a Delaware
corporation and an indirect wholly-owned subsidiary of Guarantor ("Obligor"),
Guarantor agrees with Beneficiary as follows:

1.      Guarantee. Guarantor undertakes and guarantees the full, prompt and
        complete performance by Obligor of all its obligations under the
        Contract and the due and punctual payment of all sums which are payable
        by the Obligor to the Beneficiary under the Contract when the same shall
        become due and undertakes with the Beneficiary that if the Obligor shall
        default in the payment of any sum which is due and payable to
        Beneficiary under the Contract, the Guarantor shall pay such sum to
        Beneficiary, within ten (10) days after demand in writing by
        Beneficiary. Guarantor's obligations to Beneficiary under this Guarantee
        shall in each case be subject to all the relevant terms and conditions
        of the Contract and applicable law and nothing in this Guarantee shall
        be deemed to constitute a waiver by the Obligor or the Guarantor of any
        defense, claim or counterclaim available to the Obligor under the
        Contract or under applicable law. Subject to paragraph 2 below,
        Guarantor's sole obligation to Beneficiary under this Guarantee shall be
        as guarantor of the obligations of Obligor under the Contract, subject
        to all of the limitations on such obligations which are provided for in
        such Contract or under applicable law (except for such limitations as
        may arise as the result of a bankruptcy, insolvency or reorganization
        proceeding of Obligor).

2.      The Guarantor hereby unconditionally and irrevocably agrees as a
        separate, continuing and primary obligation to indemnify the Beneficiary
        on demand should any amount due under Clause 1 not be recoverable from
        the Guarantor on the basis of a guarantee for any reason whatsoever.

3.      Continuing Guarantee. The Guarantee in paragraph 1 is a continuing
        guarantee and shall remain in force until all obligations of the Obligor
        under the Contract have been fully performed and all sums payable by the
        Obligor have been fully paid, in each case in accordance with the
        Contract and subject to all the provisions therein contained.

4.      Waivers of Notice, etc. The obligations of the Guarantor under this
        Guarantee shall not be affected by any act, omission, matter or thing
        which, but for this provision, might operate to release or otherwise
        exonerate the Guarantor from its obligations or affect such obligations
        including without limitation and whether or not known to Guarantor:

        (a)     any time, indulgence, waiver or consent at any time given to the
                Obligor or any other person;

        (b)     any compromise or release of or abstention from perfecting or
                enforcing any right or remedy against the Obligor or any other
                person;

<PAGE>   111
LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT                        EXHIBIT H

Contract No: ICOO/95-1003/YW                                   HUGHES GUARANTEE
--------------------------------------------------------------------------------

        (c)     any legal limitation, disability, incapacity or other
                circumstance relating to Obligor or any other person or any
                amendment to or variation of the terms of the Contract or any
                other document referred to in the Contract;

        (d)     any change in the corporate relationship between the Obligor and
                Guarantor, including any merger, consolidation or sale of assets
                of Obligor; and

        (e)     any irregularity, unenforceability or invalidity of any
                obligations of the Obligor under the Contract or the
                dissolution, reconstruction or insolvency of the Obligor.

5.      No Waiver by Beneficiary. No failure on the part of the Beneficiary, or
        delay by Beneficiary, in exercising any right under or with respect to
        this Guarantee shall operate as a waiver thereof, nor shall any single
        or partial exercise of any such right preclude any other or further
        exercise thereof or the exercise of any other right of Beneficiary under
        or with respect to this Guarantee or the Contract.

6.      Any release, compromise or discharge of the obligations of the Guarantor
        under this Guarantee shall be deemed to be made subject to the condition
        that it will be void if any payment or security which the Beneficiary
        may receive or have received is set aside or proves invalid for whatever
        reason.

7.      All payments to be made by the Guarantor to the Beneficiary under this
        Guarantee shall be made on the due date in United States Dollars and in
        cleared funds and to such accounts as the Beneficiary shall specify and
        shall be made free and clear of, and without deduction for or on account
        of, any present or future taxation, unless the Guarantor is required by
        law or regulation to make payment subject to any taxation, in which
        event such payment shall be increased by such amount as may be necessary
        to ensure that the Beneficiary receives a net amount, which, after
        deducting or withholding such taxation, is equal to the full amount
        which the Beneficiary would have received had such payment not been
        subject to such taxation.

8.      Right of Subrogation. Guarantor shall be subrogated to the Rights of the
        Beneficiary against Obligor in respect of any amounts paid by Guarantor
        to Beneficiary pursuant to the provisions of this Guarantee; provided,
        however, that Guarantor shall not be entitled to enforce or receive any
        payments arising out of, or based upon, such right of subrogation, or
        any related claim for exoneration, indemnification or reimbursement that
        Guarantor may now have or hereafter acquire against Obligor in any way
        related to or arising from the obligations of Obligor under the
        Contract, until all such obligations shall have been paid and performed
        in accordance with the terms and conditions of the Contract or
        applicable law.

9.      Attorneys' Fees and Costs. In addition to the liability otherwise
        assumed in this Guarantee, Guarantor agrees to forthwith reimburse
        Beneficiary for all costs and expenses, including all reasonable
        attorneys' fees and costs, incurred by Beneficiary in the collection or
        enforcement of any liability under this Guarantee. However, if Guarantor
        is the prevailing party in any proceeding to collect on or enforce any
        liability under this Guarantee, Beneficiary agrees to forthwith
        reimburse Guarantor for all costs and expenses, including all reasonable
        attorneys' fees and costs, which Guarantor may incur in connection with
        any such proceeding, and Guarantor shall have no liability to
        Beneficiary under the preceding sentence in this paragraph 6 in any such
        proceeding.

<PAGE>   112

LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT                        EXHIBIT H

Contract No: ICOO/95-1003/YW                                   HUGHES GUARANTEE
--------------------------------------------------------------------------------

10.     Amendments. This Guarantee and any provision hereof may be waived,
        amended, modified or supplemented as between Beneficiary and Guarantor
        only by an agreement or instrument in writing executed by Guarantor and
        Beneficiary; and neither this Guarantee nor any provision hereof shall
        be varied, contradicted or explained by an oral agreement, course of
        dealing or performance, usage of trade or any other matter not set forth
        in an agreement or instrument in writing and executed as specked above.

11.     Notices.

        11.1    Any notice, demand or other communication required or permitted
                to be made hereunder shall be in writing and signed by or on
                behalf of the person giving it. Except in the case of personal
                service, any notice shall be sent or delivered to the party to
                be served at the address or to the facsimile number set out
                below and if a person or officer is named for the purpose, the
                notice shall be marked for his attention. Any alteration in such
                details shall, to have effect, be notified to the other parties
                in accordance with this clause.

        11.2    Service of a notice must be effective by one of the following
                methods:

                11.2.1  personally on the Chief Executive Officer or the Company
                        Secretary of either party and shall be treated as served
                        at the time of such notice;

                11.2.2  by prepaid first class post (or by airmail if from one
                        country to another) and shall be treated as served on
                        the second (or if by airmail the fourth) Business Day
                        (as defined in the Contract) after date of posting. In
                        proving service it shall be sufficient to prove that the
                        envelope containing the notice was correctly addressed,
                        postage paid and posted; or

                11.2.3  by delivery of the notice through the letterbox of the
                        party to be served or by sending it by facsimile and
                        shall be treated as served on the first Business Day
                        after the date of such delivery or sending. In proving
                        service by facsimile it shall be sufficient to prove
                        that the facsimile was preceded by the answerback code
                        of the party to whom it was sent.

                        A.      In respect of the Beneficiary, to:

                                ICO Global Communications (Operations) Ltd.
                                c/o I-CO Services Limited
                                1 Queen Caroline Street
                                London W69BN
                                United Kingdom
                                Telephone: (181) 600-1000
                                Facsimile: (181) 600-1199
                                Attention: Olof Lundberg

                        B.      In respect of the Guarantor, to:

                                Hughes Space and Communications
                                International, Inc.
                                Bldg. S24, Mail Station D545
                                Post Office Box 92919, Airport Station
                                Los Angeles, California 90009

<PAGE>   113

LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT                        EXHIBIT H

Contract No: ICOO/95-1003/YW                                   HUGHES GUARANTEE
--------------------------------------------------------------------------------

                                Telephone: (310) 364-5729
                                Facsimile: (310) 364-9644
                                Attention: Dennis R. Beeson
                                           Manager, Contracts

<PAGE>   114

LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT                        EXHIBIT H

Contract No: ICOO/95-1003/YW                                   HUGHES GUARANTEE
--------------------------------------------------------------------------------

12.     Applicable law and jurisdiction.

        12.1    This Guarantee shall be governed by and construed in accordance
                with the laws of England.

        12.2    The provisions of ARTICLE 30 (Disputes and Arbitration) of the
                Contract shall apply mutatis mutandis to this Guarantee.

Dated _____ day of December, 1995

                                --------------------------------------
                                for and on behalf of
                                I-CO GLOBAL COMMUNICATIONS
                                (OPERATIONS) LTD.

                                --------------------------------------
                                for and on behalf of
                                HUGHES ELECTRONICS
                                CORPORATION

<PAGE>   115

                        CONTRACT NUMBER: ICOO/95-1003/YW

                           LAUNCH SERVICES SUPPLY AND

                               MANAGEMENT CONTRACT

                                   EXHIBIT I

                       TERMINATION LIABILITY CALCULATION

                                7 DECEMBER 1995

I-CO Global Communications                   Hughes Space &
(Operations) Limited                         Communications International, Inc.

---------------------------------            ----------------------------------
Olof Lundberg                                Gerald L. Dutcher
Chief Executive Officer                      Executive Vice President

<PAGE>   116

LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT                        EXHIBIT I

CONTRACT NO: ICOO/95-1003/YW                  TERMINATION LIABILITY CALCULATION
-------------------------------------------------------------------------------

TABLE OF CONTENTS

<TABLE>
<S>    <C>                                                                     <C>
1       Termination Calculations ...........................................    1

2       Termination Liabilities ............................................    2

2.1     Atlas IIA Termination Liability ....................................    2

        Delta-III Termination Liability ....................................    2

        Proton Termination Liability .......................................    3

        Zenit Termination Liability ........................................    3

2.2     Effect of Atlas Launch Service Postponement ........................    3

2.3     Effect of Sea Launch Launch Service Postponement ...................    4

2.4     Effect of Proton Launch Service Postponement .......................    4

2.5     Effect of Delta-III Launch Service Postponement ....................    4

2.6     Delta-III Termination Liability Mitigation .........................    5

2.7     Alternate Launch Service Provider(s) ...............................    6
</TABLE>

-------------------------------------------------------------------------------
<PAGE>   117

LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT                        EXHIBIT I

CONTRACT NO: ICOO/95-1003/YW                  TERMINATION LIABILITY CALCULATION
-------------------------------------------------------------------------------

1       TERMINATION CALCULATIONS

        CALCULATION 1. If the Termination Liability in ARTICLE 17 of the
        Contract ("Termination Liability") is to be calculated in accordance
        with CALCULATION 1, then the Termination Liability of I-COGC to Hughes
        for each terminated Launch Service shall equal the amount derived from
        the formula below:

        -----------------------------------------------------------------------
        Launch Service Cost x the relevant Termination Liability Percentage
        defined herein
        -----------------------------------------------------------------------
        CALCULATION 2. If the Termination Liability in ARTICLE 17 of the
        Contract is to be calculated in accordance with CALCULATION 2, then the
        Termination Liability of I-COGC to Hughes for each terminated Launch
        Service shall equal the amount derived from the applicable formula
        below:

        1)      For each Launch Service provided via a Longterm Launch Service
                Agreement:

                                        *

        * Confidential Treatment Requested and the Redacted Material has been
          separately filed with the Commission.

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

-------------------------------------------------------------------------------
                                                                         PAGE 1

<PAGE>   118

LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT                        EXHIBIT I

CONTRACT NO: ICOO/95-1003/YW                  TERMINATION LIABILITY CALCULATION
-------------------------------------------------------------------------------

2.      TERMINATION LIABILITIES

2.1     Termination Liabilities for each terminated Launch Service provided via
        a longterm Launch Services Agreement shall be as follows:

                        ATLAS IIA Termination liability

                                        *

                        Delta-III Termination Liability

                                        *

        * Confidential Treatment Requested and the Redacted Material has been
          separately filed with the Commission.

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

                                                                          PAGE 2
<PAGE>   119

LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT                        EXHIBIT I

CONTRACT NO: ICOO/95-1003/YW                  TERMINATION LIABILITY CALCULATION
-------------------------------------------------------------------------------

                                        *

                          Zenit Termination Liability

                                        *

2.2     Effect of Atlas Launch Service Postponement. In the event that the Atlas
        Launch Service Provider declares a delay to the Launch Slot or Launch
        Period, the revised Launch Period as agreed between Hughes and the Atlas
        Launch Service Provider shall be used for the purpose of determining the
        appropriate percentage to utilize in calculating the applicable
        termination charge. In the event that Hughes or I-COGC declare a delay
        to the Launch Period or Launch Slot, the Launch Period or Launch Slot in
        effect prior to the declaration of delay shall be used for the purpose
        of determining the appropriate percentage to utilize in calculating the
        applicable termination charge.

        * Confidential Treatment Requested and the Redacted Material has been
          separately filed with the Commission.

                                                                          PAGE 3
<PAGE>   120

LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT                        EXHIBIT I

CONTRACT NO: ICOO/95-1003/YW                  TERMINATION LIABILITY CALCULATION
-------------------------------------------------------------------------------

2.3.    Effect of Sea Launch Service Postponement. If Sea Launch declares or
        experiences a postponement for any Launch Service, the revised Launch
        Period, Launch Slot or Launch Date (as applicable) shall be used for the
        purpose of determining the appropriate percentage to utilize in
        calculating the Termination Liability for the postponed Launch
        Service(s). In the event that Hughes or I-COGC declares a delay to a
        Zenit Launch Service, (i) the Termination Liability value for the
        postponed Launch Service, as of the date of postponement, shall be
        calculated utilizing the applicable table above and shall remain
        constant (i.e. not increase) during the applicable postponement period;
        and (ii) upon conclusion of the postponement period, the Termination
        Liability for the postponed Launch Service shall again increase based
        upon the applicable Termination Liability table above and the revised
        Launch Period, Launch Slot or Launch Date (as applicable) as agreed
        between Hughes and the Zenit Launch Service Provider.

2.4     Effect of Proton Launch Service Postponement. If the Proton Launch
        Service Provider declares or experiences a postponement for any Launch
        Service, the revised Launch Period, Launch Slot or Launch Date (as
        applicable) shall be used for the purpose of determining the appropriate
        percentage to utilize in calculating the Termination Liability for the
        postponed Launch Service(s). In the event that Hughes or I-COGC declares
        a delay to a Proton Launch Service, (i) the Termination Liability value
        for the postponed Launch Service, as of the date of postponement, shall
        be calculated utilizing the applicable table above and shall remain
        constant (i.e. not increase) during the applicable postponement period;
        and (ii) upon conclusion of the postponement period, the Termination
        Liability for the postponed Launch Service shall again increase based
        upon the applicable Termination Liability table above and the revised
        Launch Period, Launch Slot or Launch Date (as applicable) as agreed
        between Hughes and the Proton Launch Service Provider.

2.5     Effect of Delta-III Launch Service Postponement, If the Delta-III Launch
        Service Provider declares or experiences a postponement for any Launch
        Service, the revised Launch Period, Launch Slot or Launch Date (as
        applicable) shall be used for the purpose of determining the appropriate
        percentage to utilize in calculating the Termination Liability for the
        postponed Launch Service(s).

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

                                                                         PAGE 4

<PAGE>   121

LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT                        EXHIBIT I

CONTRACT NO: ICOO/95-1003/YW                  TERMINATION LIABILITY CALCULATION
-------------------------------------------------------------------------------

In the event that Hughes or I-COGC declares a delay to a Delta-III Launch
Service prior to Launch minus 24 months, i) the Termination Liability value for
the postponed Launch Service, as of the date of postponement, shall be
calculated utilizing the applicable table above and shall remain constant (i.e.
not increase) during the applicable postponement period; and ii) upon conclusion
of the postponement period, the Termination Liability for the postponed Launch
Service shall again increase based upon the applicable Termination Liability
table above and the revised Launch Semester as agreed between Hughes and the
Delta-III Launch Service Provider. In the event that Hughes or I-COGC declare a
delay to a Delta-III Launch Service after Launch minus 24 months, the Launch
Period or Launch Slot in effect prior to the declaration of delay shall be used
for the purpose of determining the appropriate percentage to utilize in
calculating the applicable termination charge.

2.6     Delta-III Termination Liability Mitigation. If any Delta-III Launch
        Service is terminated by I-COGC for convenience, then I-COGC shall be
        entitled to receive an equitable adjustment to the Termination Liability
        amount if any Hardware (for the purposes of this Paragraph, Hardware is
        defined as the affected Launch Vehicles) or any portion thereof) is
        subsequently utilized for Launch Services for any third party customer
        of the Delta-III Launch Service Provider. Upon the transfer or
        utilization of any Hardware (as defined in EXHIBIT C) for a Launch
        Service for such third party customer, the Parties and the Delta-III
        Launch Service Provider shall negotiate in good faith to determine the
        amount of the applicable equitable adjustment. Such applicable equitable
        adjustment shall account for, via exclusion, the Launch Service
        Provider's reasonable costs, including but not limited to inventory
        carrying fees, unrecoverable costs, reasonable re-programming costs, and
        the Launch Service Provider's profit which would have been earned had
        the Launch Service not been terminated, for each terminated Launch. Any
        equitable adjustment shall be payable by the Launch Service Provider
        within thirty (30) days of the later of i) the completion of good faith
        negotiations between the Parties; or ii) the sale of the eleventh Delta
        III Launch Service by the Launch Service Provider, to any party,
        excluding any Launch terminated herein. Hughes shall forward to I-COGC
        any equitable adjustment value derived in accordance with this paragraph
        within five (5) Business Days of receipt of such amount from the
        Delta-III Launch Service Provider.

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

                                                                         PAGE 5
<PAGE>   122

LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT                        EXHIBIT I

CONTRACT NO: ICOO/95-1003/YW                  TERMINATION LIABILITY CALCULATION
-------------------------------------------------------------------------------

2.7     Alternate Launch Provider(s). Termination Liability percentages/amounts
        for Launch Services not provided via a Longterm Launch Service Agreement
        shall be incorporated into this EXHIBIT I upon the execution of a Launch
        Service Agreement between Hughes and the relevant Launch Service
        Provider (such agreement must be approved by I-COGC prior to
        execution).

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

                                                                         PAGE 6
<PAGE>   123

LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT         1 JULY 1996 - AMENDMENT 1
                                                    CONTRACT NO: ICOO/95-1003/YW
-------------------------------------------------------------------------------

                         Contract Number: ICOO/95-1003/YW

                                   AMENDMENT 1

                           LAUNCH SERVICES SUPPLY AND

                              MANAGEMENT CONTRACT

                                     BETWEEN

                     ICO GLOBAL COMMUNICATIONS (OPERATIONS)

                                     LIMITED

                                       &

               HUGHES SPACE AND COMMUNICATIONS INTERNATIONAL, INC.

                                 7 December 1995

<PAGE>   124

LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT         1 JULY 1996 - AMENDMENT 1
                                                    CONTRACT NO: ICOO/95-1003/YW
-------------------------------------------------------------------------------

TABLE OF CONTENTS

<TABLE>
<CAPTION>
 Article      Title
 -------      -----
<S>          <C>                                                                   <C>
   1          Definitions .......................................................   2

   2          Scope of Work .....................................................   8

   3          Launch Scheduling .................................................   9

   4          Contract Price, Payment and Adjustments ...........................  22

   5          Manifest Management ...............................................  31

   6          Reserved ..........................................................  32

   7          Permits and Licenses: Government Approvals ........................  33

   8          Launch Reviews ....................................................  35

   9          Title .............................................................  36

  10          Force Majeure .....................................................  37

  11          Reserved ..........................................................  39

  12          Access to Work in Progress and Data ...............................  40

  13          Indemnification ...................................................  41

  14          Warranty ..........................................................  43

  15          Risk to Satellite .................................................  44

  16          US Government Third Party indemnification .........................  45

  17          Termination .......................................................  46

  18          Data Rights .......................................................  54

  19          Reserved ..........................................................  55

  20          Rights in Inventions ..............................................  56

  21          Confidentiality ...................................................  57

  22          Interpretation ....................................................  60

  23          Publicity .........................................................  62

  24          Notices ...........................................................  63

  25          Integration .......................................................  65

  26          Assignment ........................................................  66

  27          Severability ......................................................  68

  28          Reserved ..........................................................  69

  29          Reserved ..........................................................  70

  30          Disputes and Arbitration ..........................................  71

  31          Reserved ..........................................................  72

  32          Replacement Launches ..............................................  73

  33          Options ...........................................................  74

  34          Limitation of Liability ...........................................  76

  35          Miscellaneous .....................................................  77
</TABLE>

                                                                         PAGE i

<PAGE>   125
LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT         1 JULY 1996 - AMENDMENT 1
                                                    CONTRACT NO: ICOO/95-1003/YW
-------------------------------------------------------------------------------

THIS CONTRACT is effective as of the 7th Day of December, 1995.

BETWEEN:

ICO GLOBAL COMMUNICATIONS (OPERATIONS) LIMITED, a company incorporated in
the Cayman Islands as an Exempted Company having its registered office at the
Huntlaw Building, P.O. Box 1350, Fort Street, Georgetown, Grand Cayman, Cayman
Islands (hereinafter referred to as "ICOGC"); and

HUGHES SPACE AND COMMUNICATIONS INTERNATIONAL, INC., a company in incorporated
under the laws of the State of Delaware, U.S.A., with a place of business in El
Segundo California, (hereinafter referred to as "Hughes").

WHEREAS, ICOGC desires to procure Launch Services and Management Services
in support of the twelve (12) Satellites procured under a separate but
interrelated Satellite Contract dated 03 October 1995, No. ICOO/95-1002/NR; and

WHEREAS, Hughes desires to supply Launch Services and Management Services in
accordance with the terms and conditions herein.

NOW, THEREFORE, in consideration of the mutual covenants and agreements herein
contained and other good and valuable consideration, and intending to be legally
bound hereby, the Parties hereto agree as follows:

                                                                          PAGE 1
<PAGE>   126

LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT         1 JULY 1996 - AMENDMENT 1
                                                    CONTRACT NO: ICOO/95-1003/YW
-------------------------------------------------------------------------------

ARTICLE 1 DEFINITIONS

In this Contract, unless the context otherwise requires, the following terms
shall have the meaning stated hereunder:

A       "Affiliate" means, with respect to a Party, any subsidiary or holding
        company (as determined by the Companies Act 1985 of Great Britain) at
        any tier of such Party.

B       "Associate" means any individuals or legal entities, organized under
        public or private law, who shall, directly or indirectly, on behalf of
        or at the direction of either Party to this Contract fulfill any of the
        obligations undertaken by such Party in this Contract including, but
        without limitation, the Affiliates, Subcontractors, Consultants,
        employee officers, directors or agents of each of them and of each of
        the Parties. For the avoidance of doubt, Hughes in its role as a
        satellite supplier under the Satellite Contract shall not be deemed an
        Associate of ICOGC.

C       "Business Day" means a Day on which ICOGC or Hughes is open for business
        excluding Saturdays, Sundays and public holidays.

D       "Consultant(s)" means a person or organization identified to Hughes,
        which person is retained by ICOGC to provide ICOGC with technical advice
        and/or management services.

E       "Contract" means this written instrument embodying the agreement between
        Hughes and ICOGC, including the EXHIBITS annexed hereto and made
        a part of this Contract, as may be varied in accordance with the
        provisions of this Contract.

F       "Contract Price" means the total amount expressed in this Contract
        ARTICLE 4 CONTRACT PRICE, PAYMENT AND ADJUSTMENTS, as may be varied in
        accordance with the provisions of this Contract.

G       "Conversion" or "Convert" means for Delta-III and Zenit Launch Services,
        the right which Hughes has to convert a Firm Launch (as defined in
        EXHIBIT C or E) to an

                                                                          PAGE 2
<PAGE>   127

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                                                    CONTRACT NO: ICOO/95-1003/YW
-------------------------------------------------------------------------------

        Optional Launch when a Firm Launch is postponed more than six (6) months
        beyond the relevant Launch Semester.

H       "Day" means a continuous 24-hour period commencing at 24:00 Midnight
        (Greenwich Mean Time).

I       "Designated Launch Site" means the launch facility provided, and used,
        by the relevant Launch Service Provider.

J       "Documentation" means documentation to be delivered under this Contract,
        as more fully described in EXHIBIT A, STATEMENT OF WORK.

K       "Effective Date of Contract (EDC)" means the last date that this
        Contract was duly signed by both Parties.

L       "Government Agency" means any governmental body, agency or entity,
        which has jurisdiction over this Contract, the Designated Launch Sites,
        the Launch Vehicles or any other facet of the Launch Services or
        Management Services provided herein.

M       "I-COSL" means I-CO Services Limited. I-COSL has been appointed a
        Consultant and has been given authority under an agreement with ICOGC to
        manage this Contract on behalf of ICOGC. All notices, instructions or
        consultations which are given or engaged in by I-COSL in the performance
        of its management and consultancy functions in relation to this Contract
        shall be deemed, pursuant to the aforesaid agreement, to have been given
        by ICOGC and shall be binding on ICOGC. Notwithstanding the foregoing,
        I-COSL is not authorized to vary the terms of this Contract in any
        manner whatsoever unless and to the extent that the ICOGC authorized
        representative referred to in ARTICLE 24, NOTICES, advises Hughes in
        writing to the contrary.

N       "Intentional Ignition" means the intentional ignition of any first stage
        motor of Launch Vehicle by the Launch Service Provider or, for Atlas
        Launch Services, the

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

        point in time during the launch countdown when initiation of the gas
        generator ignitor. firing command and firing of any of the gas generator
        ignitors occurs.

O       "Launch" means:

        for Atlas Launch Services, the Intentional Ignition of the first stage
        engines of the Launch Vehicle carrying the Satellite followed by either
        release of the Launch Vehicle from the launcher holddown restraints or
        Satellite and Launch Vehicle damage or destruction sufficient so that
        both the Satellite and the Launch Vehicle are declared total losses; or

        for Delta-III Launch Services, the Intentional Ignition of the first
        stage solid rocket motors of the Delta III Launch Vehicle; or

        for Proton Launch Services, the intentional ignition of the first stage
        engines of a Launch Vehicle carrying a Satellite, followed by physical
        separation of the Launch Vehicle from the ground support equipment,
        unless such event constitutes a Terminated Ignition (as such term is
        defined in EXHIBIT D); or

        for Zenit Launch Services, the point in time when an electronic signal
        is sent to command the opening of any first stage propellant valves. A
        launch is deemed to have occurred even if there is a Total Failure,
        Total Constructive Failure or Partial Failure of the Launch Vehicle (as
        such terms are defined in EXHIBIT E);

P       "Launch Date" means the single Day on which the relevant Launch
        Service(s) shall be performed by the Launch Service Provider.

Q       "Launch Period" means the three (3) Month period in which the relevant
        Launch Service shall be performed by the Launch Service Provider. In the
        case of Atlas Launch Services, the Launch Period shall be a five (5)
        Month period.

R       "Launch Revision Fees" means any amount payable by Hughes to a Launch
        Service Provider as a consequence of the implementation, for any reason,
        in accordance with

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

        the provisions of this Contract, of a Launch Service Provider
        substitution or a Launch Service acceleration or postponement for any
        Launch Service, which amount may include, but is not limited to,
        termination liability values, postponement fees, liquidated damages,
        and/or escalation values.

S       "Launch Service Fee" means as appropriate, the relevant fee for each
        Launch Service, as defined in Table 2 or Table 4 of ARTICLE 4, CONTRACT
        PRICE, PAYMENT AND ADJUSTMENTS.

T       "Launch Service Cost" means the fee which Hughes pays to a Launch
        Service Provider to provide/perform the relevant Launch Services.

U       "Launch Service(s)" means, in relation to a Satellite, the services
        provided by the Launch Service Provider to integrate and Launch such
        Satellite under the relevant Launch Service Agreement, including
        furnishing the Launch Vehicle, launch support equipment and facilities,
        as defined in EXHIBIT A, STATEMENT OF WORK, for the purpose of launching
        a Satellite into the intermediate circular orbit defined in Exhibit B
        (Satellite Technical Specification) of the Satellite Contract.

V       "Launch Service Provide" means the organization(s) which Hughes has
        contracted or will contract with to perform Launch Service(s), and shall
        include, but not be limited to, those persons referred to in Table 1 of
        ARTICLE 3, LAUNCH SCHEDULING.

W       "Launch Service Agreement" means the contract(s) executed between Hughes
        and the Launch Service Provider(s) for the provision of Launch
        Service(s) in support of this Contract which shall be either: i) an
        existing Longterm Launch Service Agreement executed (or for the Zenit
        Launch Vehicle to be executed) between Hughes and the Launch Service
        Provider(s); or ii) a unique contract specifically negotiated by Hughes
        in support of this Contract.

X       "Launch Slot" means the thirty (30) Day period within the Launch Period
        in which relevant Launch Service(s) shall be performed by the Launch
        Service Provider.

                                                                         Page 5
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Y     "Launch Vehicle" means, in relation to a Satellite, the Launch Vehicle on
      which that Satellite is scheduled to be launched or is actually launched.

Z     "Longterm Launch Service Agreement" means the contract between Hughes and
      certain Launch Service Provider(s) for the provision of multiple Launch
      Services in support of any Hughes customer program(s).

AA    "Management Services" means those services provided by Hughes that are
      required to effect the provision and scheduling of the Launch Service for
      each Satellite with the relevant Launch Service Provider, as defined in
      EXHIBIT A, STATEMENT OF WORK.

BB    "Month" means a calendar Month.

CC    "Net Present Value" means the value arrived at by discounting, on a
      monthly basis current and future amounts under this Contract to the
      present date of calculation utilizing the Royal Bank of Scotland Base Rate
      in existence on the date of calculation plus two percent (2%).

DD    "Party" or "Parties" means an entity or all entities, according to the
      context, which has or have signed this Contract.

EE    "Satellite" means Satellite to be provided to ICOGC pursuant to the
      Satellite Contract. The term "Satellite" shall be interchangeable with the
      term "Spacecraft" and has the same meaning.

FF    "Satellite Contract means Contract No. ICOO/95-1002/NR executed between
      Hughes and ICOGC for the procurement of twelve (12) Hughes "manufactured
      Satellites" for ICOGC.

GG    "Statement of Work" means the Statement of Work which is incorporated
      herein and made a part of this Contract and is EXHIBIT A to this Contract.
--------------------------------------------------------------------------------
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HH    "Subcontractor" means a person, firm, corporation, consultant or business
      entity which has been awarded a subcontract by Hughes, to provide a
      portion of the Work covered by this Contract.

II    "Work" means all labor, services, acts (including tests to be performed),
      items materials, articles, data, documentation, equipment matters and
      things required to provide the Management Services and the Launch
      Services.

The following expressions defined in the Satellite Contract shall, when used in
this Contract bear the same meanings therein, save where the context otherwise
requires:

A.    "Delivery"

B.    "Delivery Date"

C.    "ICO Program"

D.    "Launch Attempt"

The Article and Paragraph headings are for convenience of reference only and
shall not be considered in interpreting this Contract. Where the context so
requires, words importing the masculine gender include the feminine and neuter
gender. The recitals of this Contract are descriptive only and shall not create
or affect obligations of the Parties.
--------------------------------------------------------------------------------
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ARTICLE 2      SCOPE OF WORK

2.1   In accordance with the terms and conditions of this Contract, Hughes shall
      procur Launch Services and provide Management Services in support of the
      Launch and deployment of the twelve (12) Satellites procured by ICOGC
      under the Satellite Contract. Hughes shall furnish and perform the Launch
      Services and Management Services in accordance with the provisions of this
      Contract and shall perform the Work to the extent and in the manner
      specified in the following documents, which are attached hereto and made a
      part of this Contract:

<TABLE>
<CAPTION>

                        DOCUMENT                                    DATE
                        --------                                    ----
<S>                     <C>                                     <C>
      EXHIBIT A -       STATEMENT OF WORK                       1 July 1996

      EXHIBIT B -       ICOGC RIGHTS AND REMEDIES FOR           1 July 1996
                        ATLAS LAUNCH SERVICES

      EXHIBIT C -       ICOGC RIGHTS AND REMEDIES FOR           1 July 1996
                            DELTA-III LAUNCH SERVICES

      EXHIBIT D -       ICOGC RIGHTS AND REMEDIES FOR           1 July 1996
                         PROTON LAUNCH SERVICES

      EXHIBIT E -       ICOGC RIGHTS AND REMEDIES FOR ZENIT     1 July 1996
                        LAUNCH SERVICES

      EXHIBIT F -       MILESTONE PAYMENT PLAN                  1 July 1996

      EXHIBIT G -       ICOGC GUARANTEE                         1 July 1996

      EXHIBIT H -       HUGHES GUARANTEE                        1 July 1996

      EXHIBIT I -       TERMINATION LIABILITY CALCULATION       1 July 1996
</TABLE>

2.2   In the event of any inconsistency among or between the parts of this
      Contract, such inconsistency shall be resolved by giving precedence in the
      order of the the parts as set forth below:

      A.    Contract Articles and EXHIBIT I

      B.    EXHIBITS B through E

      C.    EXHIBIT A

      D.    EXHIBIT F

      E.    EXHIBIT G and H
--------------------------------------------------------------------------------
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ARTICLE 3     LAUNCH SCHEDULING

3.1   Launch Manifest. In accordance with the provisions of this Contract,
      Hughes shall utilize the Launch Service Provider(s) and Launch Dates
      specified in Table 1 below establishing the baseline Launch Services
      manifest (set out as Table 1 below) on behalf of ICOGC:

                   TABLE 1: BASELINE LAUNCH SERVICES MANIFEST

<TABLE>
<CAPTION>

Launch        Launch Service Provider(1)        Launch         LTA(2)               Launch                  Target
                                                Vehicle       Launch #              Period                  Launch
                                                                                                            Date(s)
---------------------------------------------------------------------------------------------------------------------
<S>        <C>                                <C>             <C>                   <C>                     <C>
1                Lockheed Martin              Atlas-IIAS                             *
           Commercial Launch Services
---------------------------------------------------------------------------------------------------------------------
2          Lockheed-Krunichev-Energia         Proton                                 *
                 International
---------------------------------------------------------------------------------------------------------------------
3          Lockheed-Krunichev-Energia         Proton                                 *
                 International
---------------------------------------------------------------------------------------------------------------------
4          McDonnell Douglas Corporation      Delta-III                              *
---------------------------------------------------------------------------------------------------------------------
5          McDonnell Douglas Corporation      Delta-III                              *
---------------------------------------------------------------------------------------------------------------------
6          Sea Launch Limited Partnership     Zenit                                  *
---------------------------------------------------------------------------------------------------------------------
7          McDonnell Douglas Corporation      Delta-III                              *
---------------------------------------------------------------------------------------------------------------------
8          Sea Launch Limited Partnership     Zenit                                  *
---------------------------------------------------------------------------------------------------------------------
9          Lockheed-Krunichev-Energia         Proton                                 *
                  International
---------------------------------------------------------------------------------------------------------------------
10         McDonnell Douglas Corporation      Delta-III                              *
---------------------------------------------------------------------------------------------------------------------
11         Sea Launch Limited Partnership      Zenit                                 *
---------------------------------------------------------------------------------------------------------------------
12         McDonnell Douglas Corporation      Delta-III                              *
---------------------------------------------------------------------------------------------------------------------

</TABLE>

1:  Indicated Launch Services are provided through a Longterm Launch
    Service Agreement between Hughes and the relevant Launch Service
    Provider(s).

2.  The referenced Launch Number (Launch #) indicates what type of Launch
    Service (i.e. Firm or Option) and which Launch Service or Launch Semester
    (i.e. Number 5 of 10 purchased by Hughes) shall be provided by Hughes to
    I-COGC.
--------------------------------------------------------------------------------
     The procedures between Hughes and the Launch Service Providers for
     determining Launch Period, Slot or Day are as set out in Exhibits B through
     E as applicable (or as
--------------------------------------------------------------------------------

     * Confidential Treatment Requested and the Redacted Material has been
       separately filed with the Commission.

--------------------------------------------------------------------------------
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may be set out in any unique Launch Service Agreement). Hughes' selection of
Launch Slots or Launch Days shall be made in the best interest of the ICO
program and shall be submitted to ICOGC for approval (which shall not be
unreasonably withheld) no later than one Month prior to the finalization date of
said selection with the appropriate Launch Service Provider. If any alternate
Launch Slot or Day is counter-proposed by a Launch Service Provider in
accordance with Exhibits B trough E as applicable then Hughes' response or
acceptance shall similarly require ICOGC approval. If ICOGC disapproves said
selection, it shall notify Hughes no later than ten (10) Business Days following
notification by Hughes of the selection in order to allow time for resolution of
the disagreement between the Parties.

3.1.1 References. References to "Launch 1" in this Contract shall be references
      to the Launch numbered 1 as set out in Column 1 of Table 1 and the same
      references shall apply for Launches 2 through 12.

3.1.2 Prior to 05 July 1996 and without prejudice to any other rights of ICOGC
      under this Contract, ICOGC shall have the right to:

(a)   postpone any or all Launch Periods in TABLE 1 above by up to six (6)
      months; and

(b)   rearrange the order in which the Launch Vehicles referred to in TABLE 1
      above are allocated to a Launch.

Such rights shall, however, be subject to:

(a)   the scheduling constraints set forth in Article 3.3.3; and

(b)   no Zenit Launch Service being scheduled prior to 01 November 1999.

The exercise of such rights prior to 05 July 1996 shall have no effect on
Contract or the Contract Price except for (i) any adjustments to EXHIBIT F
MILESTONE PAYMENT PLAN, and (ii) any Launch Service Fee adjustments as
--------------------------------------------------------------------------------
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      referenced in Table 4 of ARTICLE 4, PRICE, PAYMENTS AND ADJUSTMENTS, nor
      shall the exercise of such rights reduce any postponement rights or
      periods granted to Hughes or ICOGC under this Contract or any Launch
      Service Agreement.

3.2   Launch Service Provider Changes. Prior to Launch, ICOGC may direct and
      Hughes may propose a Launch Service Provider substitution as follows:

      3.2.1 ICOGC Launch Service Provider Substitutions Prior To Or On 05 July
            1996. Prior to or on 05 July 1996 and subject o ARTICLE 4, CONTRACT
            PRICE, PAYMENT AND ADJUSTMENTS, ICOGC shall be entitled to direct
            Hughes by written notice ("Substitution Notice") to substitute any
            Launch Service Provider(s) from those specified in Table 1
            ("Original LSP") with a new Launch Service Provider ("New LSP")
            solely for the purposes of maximizing reliability, schedule
            confidence and/or scheduling flexibility. Such request by ICOGC
            shall be based upon the schedule, technical or reliability
            performance of the Launch Service Provider. Any substitution shall
            be implemented as follows:

            i)    The Substitution Notice shall be served on Hughes prior to or
                  on 05 July 1996; and

            ii)   In the event that ICOGC directs Hughes to utilize a Launch
                  Service Provider which does not provide Launch Services via a
                  Longterm Launch Service Agreement (i.e. a unique Launch
                  Service Agreement) Hughes shall use all reasonable efforts to
                  fully negotiate unique Launch Service Agreement in support of
                  this Contract, which Launch Service Agreement shall be
                  reviewed and approved by ICOGC prior to execution by Hughes.
                  Hughes shall not be required to effect any substitution until
                  ICOGC has approved the final draft of the unique Launch
                  Service Agreement and such agreement has been validly executed
                  by all pares thereto; and
--------------------------------------------------------------------------------
                                                                         Page 11
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            iii)  The Substitution Notice shall specify the New LSP, which shall
                  be a person listed in Exhibit B (Satellite Technical
                  Specification) of the Satellite Contract and shall identify
                  the Original LSP and Launch number for which the substitution
                  is to be effected; and

             iv)  Any such substitution shall only be effected in accordance
                  with ARTICLE 3.3.3; and

              v)  Hughes shall bear any and all Launch Revision Fees arising as
                  a result of effecting such substitution; and

             vi)  Subject to paragraph "iv)" above, Hughes shall effect the
                  substitution of the Original LSP for the new LSP as soon as
                  reasonably possible following receipt by Hughes of the
                  Substitution Notice.

      3.2.2 ICOGC Service Provider Substitutions After 05 July 1996. After 05
            July 1996 and subject to ARTICLE 4, CONTRACT PRICE, PAYMENT AND
            ADJUSTMENTS, ICOGC shall be entitled to direct Hughes by
            Substitution Notice to substitute any Original LSP with a New LSP
            for any reason. Any Substitution shall be implemented follows:

            i)    The Substitution Notice shall be served on Hughes after 05
                  July 1996 and prior to Launch; and

            ii)   In the event that ICOGC directs Hughes to utilize a Launch
                  Service Provider which does not provide Launch Services via a
                  Longterm Launch Service Agreement (i.e. unique Launch Service
                  Agreement) Hughes shall use all reasonable efforts to fully
                  negotiate a unique Launch Service Agreement in support of this
                  Contract, which Launch Service Agreement shall be reviewed and
                  approved by ICOGC prior to execution by Hughes. Hughes shall
                  not be required to effect any substitution until ICOGC has
                  approved the final draft
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                  of the unique Launch Service Agreement and such agreement has
                  been validly executed by all parties thereto; and

            iii)  The Substitution Notice shall specify the New LSP, which shall
                  be a person listed in Exhibit B (Satellite Technical
                  Specification) of the Satellite Contract and shall identify
                  the Original LSP and Launch number for which the substitution
                  is to be effected; and

             iv)  Any such substitution shall only be effected in accordance
                  with ARTICLE 3.3.3; and

              v)  ICOGC shall bear any and all Launch Revision Fees arising
                  as a result of effecting a substitution; and

             vi)  Subject to paragraph "iv)" above, Hughes shall effect the
                  substitution of the Original LSP for the New LSP as soon as
                  reasonably possible following receipt by Hughes of the
                  Substitution Notice.

      3.2.3 ICOGC Launch Service Provider Changes Due to Zenit Launch Services.
            Launch Services scheduled to be provided by Sea Launch Limited
            Partnership ("Sea Launch") for Launch on a Zenit Launch Vehicle
            (without prejudice to ICOGC's right to substitute Launch Service
            Providers in accordance with ARTICLE 3.2.1 and 3.2.2 above) are
            scheduled subject to the following conditions ("Conditions");

            a)    No Launch Service herein shall occur on the first or second
                  launch of the Zenit Launch Vehicle by Sea Launch; and

            b)    Hughes having entered into a Longterm Launch Service Agreement
                  by 05 June 1996 with Sea Launch which Hughes determines
                  supports this Contract, the latest draft of which forms the
                  basis of EXHIBIT E, ICOGC RIGHTS AND REMEDIES FOR ZENIT LAUNCH
                  SERVICES.
--------------------------------------------------------------------------------
                                                                         Page 13
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--------------------------------------------------------------------------------

                  Hughes shall notify ICOGC of such determination within thirty
                  (30) Days of entering into such Launch Services Agreement; and

            c)    Sea Launch having successfully completed all development and
                  integration activities to validate the Sea Launch system and
                  having performed at least one (1) successful launch six (6)
                  months prior to the Launch Semester for a relevant Zenit
                  Launch Service for ICOGC; and

            d)    For Launch 6, the first launch of a Zenit Launch Vehicle by
                  Sea Launch being scheduled by 01 November 1997 to occur prior
                  to or on 31 December 1998; and

            e)    For Launches 89 and 11, the first launch of a Zenit Launch
                  Vehicle by Sea Launch has not occurred by 01 March 1998 and is
                  not scheduled 01 March 1998 to occur prior to or on 30 June
                  1999.

            In relation to each of Launches 6, 89 and 11, in the event that any
            of the conditions are not satisfied by the dates set out above,
            ICOGC shall be entitled to serve a Substitution Notice in accordance
            with ARTICLE 3.2.1 above (which ARTICLE shall apply hereto mutatis
            mutandis) for the relevant Launch:

      3.2.4 Hughes Launch Service Provider Substitutions, In the performance of
            its Management Services, Hughes may propose to ICOGC a substitution
            to a Launch Service Provider. Any proposal by Hughes shall, as a
            minimum, identify the relevant Launch Service(s), explain the
            rationale for substituting the Launch Service Provider(s), identify
            the proposed Launch Service Provider, and quantify the price and
            payment schedule impact. Upon receipt of such proposal, ICOGC shall
            notify Hughes whether the submitted Launch Service Provider
            substitution proposal is accepted or rejected. Such notice period
            shall be thirty (30) Days or such shorter period of time as required
            under
--------------------------------------------------------------------------------
                                                                         Page 14
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--------------------------------------------------------------------------------

            the length of that shorter period. If ICOGC elects to accept such
            proposal, the provisions of ARTICLE 4, CONTRACT PRICE, PAYMENT, AND
            ADJUSTMENTS, shall apply and ICOGC shall be solely responsible for
            any Launch Revision Fees and other fees and costs charged by the
            Launch Service Provider and specified in the accepted proposal. At
            no point in time may Hughes substitute a Launch Service Provider
            without the express written consent of ICOGC.

      3.2.5 Payments. If any substitution in ARTICLES 3.2.1, 3.2.2, 3.2.3 or
            3.2.4 above results in ICOGC having paid more under EXHIBIT F,
            MILESTONE PAYMENT PLAN, than it would otherwise have paid had that
            substitution not occurred, at ICOGC's written direction, Hughes
            shall either (i) reimburse any excess amount to ICOGC in accordance
            with ARTICLE 4.8 within (a) fifteen (15) Days or (b) within five (5)
            Business Days from receipt of the applicable amount from the Launch
            Service Provider, whichever is later, or (ii) retain such amount and
            credit the amount against subsequent milestone payments specified in
            EXHIBIT F, MILESTONE PAYMENT PLAN, in sequence until such amount has
            been fully credited against such milestone payments.

3.3   Launch Schedule Adjustments. Either Party may, at any time prior to
      Launch, request to accelerate or postpone any Launch Period specified in
      Table 1, or the relevant Launch Slot or Launch Date, as applicable, as
      provided below:

      3.3.1 Any request or proposal to accelerate or postpone any Launch Service
            by either Party under this Paragraph 3.3.1 shall be submitted and
            negotiated in accordance with ARTICLE 22.3, and a subject to the
            relevant rights and obligations specified in this Contract and
            EXHIBITS B through E, as applicable, and the scheduling constraints
            specified in ARTICLE 3.3.3 below. ICOGC shall be solely responsible
            for any Launch Revision fees associated with any Launch Service
            acceleration or postponement requested by either Party except for
            those Launch Revision Fees which are based solely on the late
            Delivery by Hughes of the relevant Satellite or other associated
            deliverables [Copy Missing]
--------------------------------------------------------------------------------
                                                                         Page 16
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--------------------------------------------------------------------------------

            Contract, no Launch Service Provider substitution(s) and/or Launch
            Service accelerations or postponements shall be effected unless they
            shall be effected within and in accordance with the following
            scheduling constraints:

            a)    EXHIBITS B through E, as applicable; and

            b)    ICOGC may not utilize more than six (6) Launch Services under
                  any single Longterm Launch Service Agreement without the prior
                  written agreement of Hughes, which agreement shall not be
                  unreasonably withheld; and,

            c)    Any constraints imposed by a Government Agency on the
                  provision of Launch Services by a Launch Service Provider.

            On a case by case basis, Hughes agrees to use its reasonable efforts
            in attempting to improve scheduling flexibility by negotiating with
            the relevant Launch Service Provider(s) to minimize the effect or
            existence of constraints specified above.

      3.3.4 Hughes Mitigation. If ICOGC directs (or otherwise requires) Hughes
            to pursue course of action or to utilize the services of a specific
            Launch Service Provider, in circumstances where Hughes would be
            liable for Launch Revision Fees or for a Launch Service Fee, when
            Hughes may otherwise be able to implement an alternate course of
            action or procure/schedule alternate Launch Services which meet the
            requirements of this Contract at a lesser amount of Launch Revision
            Fees or a lower Launch Service Fee, and where such alternative
            course of action or Launch Services are supportive of the overall
            schedule and other requirements of this Contract, then ICOGC shall
            solely bear any difference between (i) the course of action or
            Launch Service Provider selection required by ICOGC and (ii) the
            amount of Launch Revision Fees and/or the Launch Service Fee
            associated with the Hughes alternate course of action or Launch
            Service Provider selection. The Parties
--------------------------------------------------------------------------------
                                                                         Page 17
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--------------------------------------------------------------------------------

           agree to consult with one another in order to minimize such costs,
           subject to ICOGC's schedule and other requirements as specified in
           this Contract.

3.4  Launch Service Provider Postponements. If a Launch Service Provider
     notifies Hughes that any Launch Service shall be postponed, Hughes shall
     immediately notify ICOGC of such postponement in accordance with ARTICLE
     24, NOTICES. Hughes shall ascertain the nature and extent of the
     postponement and consult with ICOGC to determine and implement a course of
     action with the purpose of mitigating any schedule or cost impacts
     resultant from the relevant Launch Services postponement. In the event that
     the course of action dictated by ICOGC when implemented results in any
     Launch Revision Fees, ICOGC shall be solely responsible for the payment of
     such Launch Revision Fees.

3.5  Liquidated Damages.

     3.5.1 For those Launch Service Providers defined in the Table below, ICOGC
           may elect, no later than 05 July 1996, to impose on Hughes the
           requirement to pay liquidated damages for the postponement of any
           Launch Service provided by the Launch Service Provider. Such election
           by ICOGC shall be submitted to Hughes in writing and shall be at no
           additional cost to ICOGC. Upon election and notification by ICOGC,
           Hughes shall develop and submit to ICOGC a liquidated damages
           schedule (the "LD Schedule") which shall be consistent with the ICOGC
           requirement but based upon the amounts and constraints defined in the
           table below and define the liquidated damages date, grace period (if
           applicable), and daily liquidated damages amount.
<PAGE>   142
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--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
LAUNCH
SERVICE
PROVIDER            LIQUIDATED DAMAGES VALUES                CONSTRAINTS
----------------------------------------------------------------------------------------------------
<S>                 <C>                                      <C>
Proton              Liquidated damages for Proton Launch     Liquidated damages shall not apply to
                    Services shall be   *   per day.         the first   *   days of Proton
                                                             postponement. Liquidated damages
                    The cumulative maximum liquidated        shall not apply to any delay(s) to the
                    damages per Launch Service shall not     applicable Launch Service(s) caused due
                    exceed   *   of the                      to a postponement by Hughes or ICOGC.
                    relevant Launch Service Cost.
----------------------------------------------------------------------------------------------------
Zenit               Liquidated Damages for Zenit Launch      Liquidated damages shall not apply to
                    Services shall be   *   per day.         the first   *   days of Sea Launch
                                                             postponement. Liquidated damages
                    Liquidated damages for Zenit Launch      shall not apply to i) any Sea Launch
                    Services shall not exceed   *            postponement based upon an event of
                    of the applicable Launch Service Cost.   force majeure, as defined in EXHIBIT E;
                                                             ii) any postponement required due to
                                                             Sea Launch's obligation to provide a
                                                             replacement launch for any Sea Launch
                                                             customer, and iii) any delay(s) to the
                                                             applicable Launch Service(s) caused due
                                                             to a postponement by Hughes or ICOGC.
----------------------------------------------------------------------------------------------------
</TABLE>

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

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     3.5.2. Other Launch Service Providers. For any Launch Service(s) provided
            by a Launch Service Provider(s) other than those defined in
            Paragraph 3.5.1 above, upon receipt of a written request from
            ICOGC, Hughes agrees to enter into good faith negotiations with
            the applicable Launch Service Provider(s) to attempt to include
            liquidated damages into the relevant Launch Service Agreement. Such
            notification from ICOGC must be submitted to Hughes (i) no later
            than 05 July 1996, or (ii) prior to definitization of the unique
            Launch Service Agreement, whichever is later. ICOGC shall be solely
            liable for any increase in any Launch Service Cost resulting from
            the inclusion of any liquidated damages into the relevant Launch
            Service Agreement.

     3.5.3  Payment. Payment by Hughes to ICOGC of any liquidated damages
            value shall occur within five (5) business days after Hughes
            receives the corresponding liquidated damages payment from the
            relevant Launch Service Provider on which Hughes shall have imposed
            the same level of liquidated damages provided that Hughes shall
            never be under any obligation to ICOGC to effect payment of any
            liquidated damages for an amount greater than that received from
            the relevant Launch Service Provider.

     3.5.4  ICOGC Postponement Fees. If ICOGC implements the liquidated damages
            defined in Paragraph 3.5.1 for any Zenit Launch Service, ICOGC shall
            be subject to postponement fees for any Launch Service postponement
            requested or directed by ICOGC. ICOGC postponement fees shall be:

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

<TABLE>
<CAPTION>
 LAUNCH
SERVICE
PROVIDER       ICOGC POSTPONEMENT FEE VALUES                    CONSTRAINTS
--------------------------------------------------------------------------------
<S>        <C>                                     <C>
Zenit      ICOGC Postponement Fees for Zenit       Liquidated damages shall not
           Launch Services shall be   *   per      apply to the first   *   days
           day.                                    of ICOGC postponement.

           Liquidated damages for Zenit Launch
           Services shall not exceed   *   of
           the applicable Launch Service Cost.
</TABLE>

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

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ARTICLE 4      CONTRACT PRICE, PAYMENT AND ADJUSTMENTS

4.1  Contract Price. In consideration for i) the Launch Services referred to in
     Table 1, and ii) the Management Services specified herein, (subject to
     ARTICLE 4.2) the Contract Price is a firm fixed price of Nine Hundred
     Thirteen Million Three Hundred Ninety Two Thousand Two Hundred Seventy Two
     U.S. Dollars (US$913,392,272.00), which includes all taxes and duties and
     fees required by Hughes to provide the Management Services and Launch
     Services. ICOGC shall pay the Contract Price to Hughes in accordance with
     Table 3 below, which reflects the payment profiles for each of the relevant
     Launch Service Provider(s) and is presented in EXHIBIT F, MILESTONE PAYMENT
     SCHEDULE. The baseline Contract Price shall be apportioned as follows:

                       TABLE 2 - BASELINE CONTRACT PRICE

<TABLE>
<CAPTION>
                                              UNIT PRICE      LINE ITEM TOTAL
ITEM                DESCRIPTION              (US DOLLARS)       (US DOLLARS)
--------------------------------------------------------------------------------
<S>     <C>                                 <C>               <C>
  1     LAUNCH SERVICE FEE:
 1(a)     (1) Atlas II-AS Launch Services          *                  *
 1(b)     (5) Delta-III Launch Services            *                  *
 1(c)     (3) Proton Launch Services               *                  *
 1(d)     (3) Zenit Launch Services                *                  *
  2     MANAGEMENT SERVICES FEE                    *                  *
--------------------------------------------------------------------------------
                         TOTAL CONTRACT PRICE                 $913,392,272.00(1)
</TABLE>
--------------
(1)  Price includes any additional cost, if any, associated with an extended
     mission kit for the first Atlas II-AS Launch Service.

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

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                      TABLE 3 - BASELINE PAYMENT SCHEDULE

<TABLE>
<CAPTION>
                  ATLAS       DELTA-III         PROTON            ZENIT
-----------------------------------------------------------------------
<S>               <C>         <C>               <C>               <C>
05 JULY 96          *                             *                 *
   L-27(1)                                        *
   L-24                          *
   L-21                          *
   L-18             *            *                *                 *
   L-15                          *                *                 *
   L-12             *            *                *                 *
   L-9              *            *                *                 *
   L-6                           *                *                 *
   L-3                                                              *
   L-1              *            *                *
L+30 DAYS           *            *                *                 *
</TABLE>

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

NOTES:

1: "L" = the first Day of the Launch Period, Launch Slot, or Launch Date,
         whichever is applicable as of the date of the milestone payment.
2: L-24 and Launch Period selection
3: L-12 and Launch Slot selection
4: L-6 and Launch Date selection
5: L-15 and PDR complete

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

4.2   Launch Service Provider Substitutions. The Contract Price stated in
      ARTICLE 4.1 above assumes that the Launch Service(s) shall be performed by
      the Launch Service Provider(s) specified in Table 1 of ARTICLE 3.1 herein.
      If any Launch Service Provider is substituted in accordance with ARTICLE
      3.2 herein, the Contract Price and the Baseline Payment Schedule stated in
      ARTICLE 4.1 above shall be revised to take into account the relevant
      Launch Service Fee and payment schedule defined in Table 4 and Table 5
      below as they shall apply for the substituted Launch Services:

      * Confidential Treatment Requested and the Redacted Material has been
        separately filed with the Commission.

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                TABLE 4 - LAUNCH SERVICE PROVIDER SUBSTITUTIONS
<TABLE>
<CAPTION>

LAUNCH                            LAUNCH SERVICE FEE
VEHICLE                                  ($USD)
--------                          -------------------
<S>            <C>
ATLAS-IIAS        *  per Month for every Month that the relevant Launch Service
               is scheduled to occur beyond 01 November 1998. Price will also be
               increased to reflect any additional delta cost associated with an
               extended mission kit, but such potential delta cost shall not
               exceed the amount, if any, paid by Hughes for such kit on the
               first Atlas IIAS Launch Service. Pricing is valued for Launch
               Services exercised prior to 01 January 1997, unless the Atlas
               Launch Services exercised prior to 01 January 1997, unless the
               Atlas Launch Service Provider agrees to extend such date.

Proton            *   increased at an annual rate of   *   for any Launch beyond
               01 July 2000. Pricing is valid for Launch Services provided
               through 31 December 2001.

Delta-III         *   increased at an annual rate of   *  for any Launch
               exercised after 01 January 2002. Such escalation shall be applied
               for the period beginning on 01 January 2002 and ending on the
               Launch exercise date. Pricing is valid for Launch Services
               provided through 31 December 2005.

Zenit             *   for each Month that the first Day of Launch Period is
               after 01 July 2000. Pricing is valid for Launch Services provided
               through 31 December 2005.
</TABLE>

Note:  Escalation calculations defined within this Table 4 for the Proton,
       Delta-III and Zenit Launch Vehicles shall not apply to any Launch which
       is scheduled at the date of Substitution to occur on those Launch
       Vehicles prior to 31 December 2000. In the event that any Launch is
       scheduled at the date of Substitution to occur on or after 01 January
       2001, the escalation calculations/amounts defined above shall apply as
       specified above.

       * Confidential Treatment Requested and the Redacted Material has been
         separately filed with the Commission.

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

                    TABLE 5 - SUBSTITUTION PAYMENT SCHEDULES

<TABLE>
<CAPTION>
                     --------------------------------------------------------
                          ATLAS       DELTA-III       PROTON       ZENIT
     ------------------------------------------------------------------------
<S>                       <C>         <C>          <C>             <C>
          Option            *                           *            *
        Exercise(2)
     ------------------------------------------------------------------------
          L-24(1)           *            *
     ------------------------------------------------------------------------
          L-21                           *
     ------------------------------------------------------------------------
          L-18              *            *              *            *

     ------------------------------------------------------------------------
          L-15                           *              *            *
     ------------------------------------------------------------------------
          L-12              *            *              *            *
     ------------------------------------------------------------------------
          L-9               *            *              *            *
     ------------------------------------------------------------------------
          L-6                            *              *            *
     ------------------------------------------------------------------------
          L-3                                                        *
     ------------------------------------------------------------------------
          L-1               *            *              *
     ------------------------------------------------------------------------
       L+30 Days            *            *              *            *
     ========================================================================
      Notes:

      1: "L" = the first Day of the Launch Period, Launch Slot, or Launch Date,
            whichever is applicable as of the date of the milestone payment.

      2: Option Exercise = upon direction to Hughes by ICOGC to substitute a
            Launch Service Provider and notification to the Launch Service
            Provider of Option Exercise

      3: L-24 and Launch Period selection

      4: L-12 and Launch Slot selection

      5: L-6 and Launch Date selection

      6: L-15 and PDR complete
     ------------------------------------------------------------------------
</TABLE>

4.3  ILS Launch Service Fee Reduction. If Hughes is able to negotiate and obtain
     a reduced Launch Service Cost (in absolute value or on a Net Present Value
     basis) after the Effective Date of this Contract from (and for the Launch
     Service(s) relating to) the Atlas and/or Proton Launch Service Provider,
     then the Contract Price shall be reduced by an amount equal to   *   of the
     net difference between the initial Launch Service Cost to Hughes and the
     subsequent lower Launch Service Cost negotiated by Hughes multiplied by one
     (1) plus the General and Administrative fee of one percent (i.e. 1.01). The
     Contract Price reduction shall only apply to those Launch Services which
     are the subject of any such agreement with the Atlas and/or Proton

     * Confidential Treatment Requested and the Redacted Material has been
       separately filed with the Commission.
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     Launch Service Provider. The Contract Price reduction value may be
     illustrated in formula format as follows:

         Net Contract Price Reduction =  *

     If ICOGC should question any amount calculated under this Paragraph 4.3,
     subject to the execution of a non-disclosure agreement in a form
     reasonably acceptable to Hughes between all relevant parties, Hughes
     shall provide access to a third party auditor acceptable to both Parties,
     which third party auditor may review the relevant cost documentation and
     certify to ICOGC as to the validity of the Hughes reduction.

4.4  Alternate Launch Service Provider(s). If, at any time, ICOGC directs Hughes
     to utilize a Launch Service Provider which does not have a Longterm Launch
     Service Agreement with Hughes which provides Launch Services for a
     Satellite as of the date of the ICOGC request, the Contract Price stated in
     ARTICLE 4.1 above shall be revised to reflect the inclusion of i) the
     actual Launch Service Cost, inclusive of any applicable taxes, duties, or
     fees charged by the alternate Launch Service Provider; and ii) a fee equal
     to   *   of the Launch Service Cost. In addition, the payment schedule
     specified in EXHIBIT F, MILESTONE PAYMENT PLAN, shall be revised to reflect
     the milestone/payment schedule included in the relevant Launch Service
     Agreement. The   *   fee specified above shall be payable on a per Launch
     Service basis as follows: i)   *   shall be prorated over all of the
     applicable payments; and ii)   *   (2%) shall be payable upon Launch.

4.5  Payments. All payments specified in this ARTICLE 4, CONTRACT PRICE, PAYMENT
     AND ADJUSTMENTS, shall be made by ICOGC within fifteen (15) Days of receipt
     of a valid invoice and (i) for calendar based milestones, the occurrence of
     the applicable milestone, or (ii) for performance milestones, additionally
     upon certification from Hughes that the particular milestone event has been
     completed, whichever is

     * Confidential Treatment Requested and the Redacted Material has been
       separately filed with the Commission.
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--------------------------------------------------------------------------------

     to payment shall make a written demand for, or shall submit an invoice if
     so requested by the payor, after such entitlement becomes established, and
     the payor shall make payment within fifteen (15) Days after receipt of a
     valid written demand or valid invoice unless the Contract specifies to the
     contrary.

     Notwithstanding any other term in this Contract, in no event shall Hughes
     be liable to ICOGC for any payment which originates from a Launch Service
     Provider (e.g. Launch Revision Fees, liquidated damages, or refund of
     payments for a terminated Launch Service) until Hughes has received the
     corresponding payment from the relevant Launch Service Provider.

     Any invoices will separately identify any applicable taxes and duties and
     shall be addressed to ICOGC at the following address:

          ICO Global Communications (Operations) Limited
          Huntlaw Building
          P.O. Box 1350
          Fort Street
          Georgetown, Grand Cayman
          Cayman Islands

     but submitted both via an internationally recognized air courier and via
     telefax to:

          I-CO Services Limited
          1 Queen Caroline Street
          Hammersmith, London W6 9BN
          United Kingdom
          Attention: Contract Administrator (Space Segment)
          Fax #44-181-600-1199

     and with a copy given by hand to an authorized on-site representative of
     ICOGC at the Hughes' facility.

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4.6  Payment Postponements. If any postponement of a Launch Service results in
     the postponement or delay of any payment(s) under a Launch Service
     Agreement for the postponed Launch Service, the payment schedule specified
     in EXHIBIT F, MILESTONE PAYMENT PLAN, shall be revised to reflect such
     delayed payment(s).

4.7  Payment Dispute. No dispute with respect to the payment of any amount under
     this Contract shall relieve the disputing Party of its obligation to pay
     all other amounts due and owing under this Contract. All disputed amounts,
     unless otherwise specified in the Contract, shall be paid into an
     interest-bearing escrow account at Bank of America, Concord, California,
     Account No. (to be established later), within fifteen (15) Days after
     receipt of invoice. After the dispute is settled, the Party entitled to the
     amount or part thereof in escrow shall receive such amount together with
     all interest thereon and the costs and fees associated with such escrow
     account shall be paid by each Party in inverse proportion to the amounts
     received by each Party.

4.8  Telegraphic Transfer. Amounts payable hereunder are to be remitted by
     telegraphic transfer to a bank to be advised in writing by Hughes or
     ICOGC, as the case may be.

4.9  Guarantee. Within 15 Days of EDC, both Parties shall provide a parent
     company guarantee of their obligations substantially in the form set forth
     in EXHIBIT H, HUGHES GUARANTEE, and EXHIBIT G, ICOGC GUARANTEE.

4.10 Letter of Credit. No later than 05 July 1996, ICOGC shall establish an
     irrevocable Letter of Credit in the amount of   *   . Such irrevocable
     Letter of Credit shall be issued by a bank of good international reputation
     of ICOGC's choice (issuing bank) and in a format reasonably acceptable to
     Hughes. The irrevocable Letter of Credit shall be issued in favor of Hughes
     and shall be valid until the last payment has been made as per EXHIBIT F,
     MILESTONE PAYMENT PLAN as such plan may be varied in accordance with the
     provisions of this Contract. The aforesaid Letter of Credit amount shall be
     adjusted to reflect the values listed below by the dates specified:

     * Confidential Treatment Requested and the Redacted Material has been
       separately filed with the Commission.

<PAGE>   152
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<TABLE>
<CAPTION>
               Date                Revised Letter of Credit Amount
               ---------------------------------------------------
<S>                                <C>

                                       *

</TABLE>

ICOGC shall notify Hughes within five (5) Days of any recommended adjustments
to the amount of the Letter of Credit.

In the event ICOGC has not made a payment for a milestone within fifteen (15)
Days after the receipt of Hughes' invoice and milestone completion
certification when pursuant to ARTICLE 4.5 it was obligated to do so, the
irrevocable Letter of Credit shall allow Hughes to immediately draw down an
amount which Hughes certifies as the outstanding amount payable for that
milestone.

ICOGC will be responsible for all bank charges, expenses, and commissions
relating to the irrevocable Letter of Credit required to be issued hereunder on
Hughes' behalf save as may be incurred as a result of a delay in the last
milestone payment beyond 01 January 2001 caused by a late Delivery by Hughes of
the relevant Satellite or the associated deliverables beyond their respective
Delivery Dates (where that

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

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

is solely caused by Hughes) or due to a material breach by Hughes of this
Agreement in which case such bank charges (etc.) shall be borne by Hughes.

Hughes shall notify ICOGC in writing if any Launch Service Provider
substitution or Launch Service(s) postponement (as specified in ARTICLE 3,
LAUNCH SCHEDULING) necessitates a revision in the adjustment dates and/or
values (increase/decrease or acceleration/postponement) defined above. ICOGC
shall revise the Letter of Credit as required within thirty (30) days of
receipt of such written notice, or such later period as may be agreed between
the Parties as reasonable under the circumstances. The Parties agree to
regularly (at least once every six (6) Months) review the level of the Letter
of Credit with a view to adjusting the Letter of Credit to cover the forecasted
payment values.
<PAGE>   154
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ARTICLE 5      MANIFEST MANAGEMENT

5.1    Launch Service Provider Cessation. If any Launch Service Provider
       utilized hereunder declares that it shall, or does, cease operations for
       a period equal to or greater than six (6) Months or it is anticipated
       that it will do so ("LSP Cessation"), Hughes will promptly confer with
       ICOGC to determine the feasibility of utilizing alternate launch
       opportunities (i.e., postponing or accelerating currently scheduled
       Launch Services) within the ICOGC launch services manifest (specified in
       Table 1 of ARTICLE 3, LAUNCH SCHEDULING, as adjusted by ARTICLE 3,
       LAUNCH SCHEDULING) and/or transferring any portion of the current Launch
       Services to alternate Launch Service Providers.

5.2    Revised Launch Opportunities. If after such review of the
       proposed/possible options presented by Hughes, ICOGC requests Hughes to
       pursue revised launch opportunity(ies), then Hughes shall attempt to
       create an equitable rescheduling amongst its satellite customers, giving
       priority based upon the launch manifests in existence as of the date of
       the LSP Cessation but taking into consideration limitations or technical
       compatibility with multiple launch vehicles of other Hughes' satellite
       customers similarly affected. In any event, ICOGC shall be responsible
       for (i) any Launch Revision Fees and (ii) any amounts specified in
       ARTICLE 4, CONTRACT PRICE, PAYMENT AND ADJUSTMENTS, associated with any
       rescheduling performed under this ARTICLE 5.

5.3    Rescheduling Rights. Hughes may however, reschedule the affected ICOGC
       Launch Service to a position other than that reflected in the launch
       manifests in existence as of the date of the LSP Cessation to provide
       another Hughes satellite customer(s) an earlier Launch than the affected
       ICOGC Launch provided that such rescheduling does not cause a
       significant delay (not to exceed three (3) months) to ICOGC relative to
       the other Hughes satellite customer(s) being provided such earlier
       Launch Service(s). In addition, the price (when evaluated on a Net
       Present Value basis) of such later launch opportunity to ICOGC shall not
       be greater than that of ICOGC original launch opportunity.

<PAGE>   155
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--------------------------------------------------------------------------------

ARTICLE 6    RESERVED
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ARTICLE 7   PERMITS AND LICENSES: GOVERNMENT APPROVALS

7.1   Hughes Permits, Licenses and Approvals. Hughes shall, at its own expense,
      secure all Government permits, licenses, approvals and consents as may be
      required for the performance of the Management Services under this
      Contract. Hughes shall also secure, via the relevant Launch Service
      Provider, all Government permits, licenses, approvals and consents
      required for the provision of each relevant Launch Service(s). Hughes
      shall perform the Work in accordance of all such relevant permits and
      licenses.

7.2   Technical Data. Notwithstanding ARTICLE 7.1 or any other provision of this
      Contract, the Parties understand and agree that certain restrictions are
      placed on access to Hughes' plant and the use of technical data delivered
      under this Contract with relation to the approvals Hughes and certain
      Launch Service Providers must obtain from the U.S. Government. As a
      result, the Parties agree that such access and the actual delivery of any
      technical data will be under a separate agreement which shall require
      prior U.S. Government approval. Hughes via the Launch Service Provider, as
      applicable, shall prepare said agreement and, in consultation with ICOGC,
      shall request U.S. Government approval. Request for U.S. Government
      approvals shall be sufficiently comprehensive to allow Hughes or the
      relevant Launch Service Provider to fulfill all of its obligations
      hereunder including but not limited to the rights of access and inspection
      granted to ICOGC and its Consultants under this Contract.

7.3   Documentation. If Documentation furnished under this Contract is
      authorized by the U.S. Government for export only to ICOGC, the
      Documentation may not be resold, diverted, transferred, trans-shipped or
      otherwise be disposed of in any other country, either in itw original
      form or after being incorporated through and intermediate process into
      other end items without the prior written approval of the U.S. Government.
      Additionally, transferring registration or control to any other person or
      business entity of the Documentation furnished under this Contract is
      considered an export and as such also requires prior written approval
      from the U.S. Government. ICOGC
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--------------------------------------------------------------------------------

     represents and warrants that the ultimate end use of the documentation is
     to support the provision of telecommunications services.

7.4  ICOGC Permits and Licenses.  ICOGC shall, at its own expense, secure all
     Government permits and licenses as may be required for the performance of
     its obligations under this Contract. ICOGC shall be responsible for
     obtaining the registration of any and all Satellites launched hereunder. In
     addition, ICOGC shall be responsible for obtaining any license required for
     radio telecommunication with any and all Satellites after separation from
     the Launch Vehicle.

7.5  Survivability.  The obligations contained in this ARTICLE 7 shall survive
     expiration or termination of this Contract for whatever cause.

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ARTICLE 8      LAUNCH REVIEWS

8.1  Launch Reviews. Hughes shall ensure that ICOGC is afforded the opportunity
     to attend programmatic reviews held by the various Launch Service
     Provider(s). Such reviews shall include but not be limited to, preliminary
     design reviews, critical design reviews, orbital mission reviews, and
     launch readiness reviews. Hughes shall provide ICOGC representatives with
     fifteen (15) Business Days notice of the pending review. Attendance at
     these reviews by ICOGC representatives is not mandatory and in no event
     shall the absence of an ICOGC representative postpone or delay any review.

8.2  ICOGC Direction. Based upon the information presented by the Launch Service
     Provider in the applicable programmatic review(s), ICOGC may direct Hughes
     to halt or postpone the Launch Service to which such review applied or
     related if ICOGC believes that the Launch Service Provider has failed, or
     shall fail, in some material degree to provide the required Launch
     Services. If ICOGC directs to halt or postpone any Launch Service(s), ICOGC
     shall, by notice in writing to Hughes provide reasonable details of the
     Launch Service(s) affected, the rationale for postponement and a
     proposed/acceptable resolution for the issue. ICOGC shall be solely
     responsible for, and indemnify and hold harmless Hughes from any Launch
     Revision Fees or other amounts charged by the Launch Service Provider for
     any Launch Service halted or postponed by Hughes at ICOGC's direction in
     accordance with this ARTICLE 8.2.
<PAGE>   159
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ARTICLE 9      TITLE

9.1  Launch Services. In no event shall either Party take or receive title to
     any portion to any Launch Vehicle utilized in the Launch Services procured
     by this Contract.

9.2  Documentation. Title and risk of loss to all Documentation shall pass to
     ICOGC at the time of delivery, save that intellectual property rights in
     Documentation shall be dealt with in accordance with the provisions of
     ARTICLE 18, DATA RIGHTS.
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--------------------------------------------------------------------------------

ARTICLE 10  FORCE MAJEURE

10.1  Effect of Force Majeure. Notwithstanding any other provisions of this
      Contract, in the event Hughes and its Associates or Subcontractors
      ("affected Party") are delayed in the performance of this Contract by an
      event of Force Majeure, as defined in ARTICLES 10.2, 10.3, and 10.5 below,
      there shall be an equitable adjustment to the time for the performance of
      the affected obligations under this Contract provided that Hughes informs
      ICOGC immediately of the occurrence of the event giving rise to Force
      Majeure and provides ICOGC within seven (7) Business Days of the date of
      such notice with a detailed description of the performance affected by
      such event as well as the plans for minimizing the effects of such event
      upon the performance of Hughes's obligations under the Contract. In all
      cases, Hughes shall use reasonable efforts to avoid or minimize such
      delay.

10.2  Management Services. For purposes of this Contract, "Force Majeure" for
      Management Services shall mean an act of God, or of the public enemy,
      fire, flood, epidemic, quarantine restriction, or lockout, strike,
      walkout, (other than those solely affecting Hughes' or its Associates'
      workforce) or freight embargo, acts of Government, including but not
      limited to the Government of the United States, (including the refusal,
      suspension, withdrawal, or non-renewal of export or import licenses
      essential to the performance of the Contract not caused by Hughes or its
      Associates) whether in its sovereign or contractual capacity, or any other
      event which is beyond the reasonable control and without the fault or
      negligence of Hughes and its Associates performing any part of the Work.

10.3  Launch Services. For purposes of this Contract, "Force Majeure" for Launch
      Service Provider(s) shall mean those force majeure or excusable delay
      events and the consequences thereof defined in EXHIBITS B through E, as
      applicable.

10.4  ICOGC Payments. Notwithstanding the above, this ARTICLE is not applicable
      to the payment obligations of ICOGC and as such no force majeure events or
      excusable delays shall be provided in that instance.
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10.5 Satellite Contract Force Majeure. For the avoidance of doubt, in the event
     that any Launch Service is delayed due to the late Delivery of a Satellite
     or any associated deliverables, and such late Delivery is caused by an
     Excusable Delay (as defined in Article 10 of the Satellite Contract), then
     such delay of the Launch Service(s) shall constitute an event of Force
     Majeure under this Contract.

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ARTICLE 11     RESERVED

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ARTICLE 12     ACCESS TO WORK IN PROGRESS AND DATA

12.1      Hughes Facilities. For those facilities solely owned and/or operated
          by Hughes, Hughes shall provide ICOGC and its Consultant(s) reasonable
          access to all Work being performed under this Contract, at reasonable
          times as mutually agreed upon by the Parties during the period of this
          Contract, provided that such access does not unreasonably interfere
          with such Work and access to Work is coordinated with the Hughes
          Program Manager or designated alternative(s). Such access shall be in
          compliance with Hughes' security requirements and United States law.
          Hughes may, at its reasonable discretion, deny access to persons who
          are employed by or affiliated with a company manufacturing satellites
          or major subsystems for satellites or providing launch services.

12.2      Disclosure. ICOGC and/or its Consultant(s) visiting Hughes facilities
          (a) will abide by Hughes' security regulations and applicable U.S.
          Government regulations; (b) will not use or disclose to a third party
          any information received in connection with the access provided
          hereunder and will use such information only in the performance of
          this Contract, whether or not such information is marked or otherwise
          identified as proprietary, save as provided in ARTICLE 21,
          CONFIDENTIALITY.

12.3      I-COSL. For purposes of access, I-COSL shall be considered the same as
          ICOGC and the provisions of this ARTICLE 12 shall apply mutatis
          mutandis to I-COSL and its Consultants.

12.4      Launch Service Provider Facilities. Notwithstanding the foregoing
          provisions of this ARTICLE 12, access by ICOGC and/or its
          Consultant(s) to any Launch Service Provider facility, including the
          Designated Launch Site, shall be governed by the terms defined in
          EXHIBITS B through E, as applicable.

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ARTICLE 13     INDEMNIFICATION

13.1  Each Party ("the Indemnifying Party") shall indemnify and hold harmless
      the other Party ("the Indemnified Party") and its Associates (or any of
      them), from any loss, damage, liability or expense suffered or incurred by
      any such person resulting from damage to all property and injury,
      including death, arising out of, or based upon, any event or circumstance
      occurring prior to arrival at the Designated Launch Site to the extent
      caused by a negligent act or omission of the Indemnifying Party or its
      Associates in the performance of the Work and at the Indemnifying Party's
      expense shall defend any suits or other proceedings brought against the
      Indemnified Party and/or its Associates (or any of them), on account
      thereof, and satisfy all judgments which may be incurred by or rendered
      against them (or any of them) in connection therewith.

13.2  Notwithstanding ARTICLE 13.1, each party ("the Indemnifying Party") shall
      be and remain solely responsible for, and shall indemnify and hold
      harmless the other Party ("the Indemnified Party") from and against any
      loss, damage, liability or expense suffered or incurred by the
      indemnifying Party resulting from loss or damage to the Indemnifying
      Party's property and/or injury including death, affecting the Indemnifying
      Party's personnel whilst on or within the Indemnifying Party's premises or
      on or within the premises of the Indemnified Party; provided however that
      the first One Hundred Thousand U.S. Dollars (US $100,00) of any such loss,
      damage, liability or expense shall be borne by each Party to the extent
      that it is liable under ARTICLE 13.1.

13.3  Prior to the time that either Party or its Associates enter the
      Designated Launch Site (as a precondition of such entry), each Party shall
      ensure that they and their respective relevant Associates shall sign a
      no-fault, no-subrogation inter-party waiver of liability consistent with
      that defined in the relevant Launch Service Agreement.
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13.4  In the event that either ICOGC or Hughes fails to obtain the aforesaid
      inter-party waiver of liability from their respective Associates, then
      ICOGC and Hughes shall indemnify and hold each other harmless from claims
      brought by the other Party or its Associates, for damage to any such
      persons' property or injury to, or death of, such persons' employees in
      connection with any launch operations in or around the Designated Launch
      Site.

13.5  Notwithstanding any other provision of this Contract, but without
      prejudice to any indemnities or insurance coverage as may be provided by
      Launch Service Providers, ICOGC shall indemnify and hold harmless Hughes
      and its Associates from any liabilities, losses and damages, including but
      not limited to those based on negligence, including any costs, expenses
      and damages whatsoever incurred by Hughes in defending, or assisting ICOGC
      in its defense, against any and all third party claims, including but not
      limited to, ICOGC's customer(s) or an agency of any Government with whom
      ICOGC shall have any obligation related to the Satellites arising after
      the launch attempt of a Satellite, and ICOGC shall obtain waivers of
      subrogation rights against Hughes and its Associates from ICOGC's
      insurers, if any.

      This indemnity shall not apply to Hughes or its Associates to the extent
      that they make a claim against ICOGC as a direct or indirect customer of
      ICOGC.

13.6  ICOGC shall defend and indemnify Hughes from any claims made by any third
      party against Hughes arising from any misrepresentation by ICOGC or any of
      its Affiliates to any third party in connection with the Launch Services
      and Management Services.

13.7  Neither Party shall be entitled to claim to be, nor shall it be,
      indemnified both under this Contract and under ARTICLE 13 of the Satellite
      Contract in respect of any loss, costs, claims, damages or expenses
      arising out of or in relation to the same event or circumstance.
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ARTICLE 14   WARRANTY

14.1    Launch Services. Hughes provides no warranty, either express or
        implied, in relation to any Launch Service provided herein, save as
        provided in this ARTICLE 14.

14.2    Management Services. Hughes warrants, in relation to the Management
        Services, that all services shall be performed in a professional and
        workmanlike manner consistent with generally accepted custom and
        practice in the industry.

14.3    Longterm Launch Service Agreements. Hughes warrants and ICOGC has
        entered into this Contract on the basis that the provisions of this
        Contract including EXHIBITS B through E and EXHIBIT I are reflected by
        binding and enforceable rights and remedies under the Longterm Launch
        Service Agreements which Hughes has entered into (or in the case of
        Zenit, which Hughes intends to enter into) with the relevant Launch
        Service Providers. Hughes further warrants that insofar as any
        provisions of this Contract (other than those contained in EXHIBITS B
        through E) are not reflected by or are in conflict with the rights and
        remedies granted to ICOGC under EXHIBITS B through E and EXHIBIT I that
        Hughes has now or will obtain any rights and remedies viz-a-viz the
        Launch Service Provider(s) as are necessary to fulfill the provisions of
        this Contract. In addition, Hughes shall not enter into any modification
        or amendment to any Longterm Launch Service Agreement which modifies
        ICOGC rights as specified in this Contract including EXHIBITS B through
        E and EXHIBIT I without the prior written approval of ICOGC, which
        approval shall not be unreasonably withheld.

14.4    Pursuit of Rights and Remedies. Hughes warrants that it shall utilize
        its reasonable efforts to initiate and pursue all rights and remedies
        specified in this Contract or EXHIBITS B through E, as applicable,
        including recovery or enforcement by legal or arbitral proceedings or
        utilization of any existing corporate guarantee or other financial
        guarantee or security.

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ARTICLE 15  RISK TO SATELLITE

15.1    Risk. The Parties are aware and agree that the use of expendable launch
        vehicles to launch satellites into orbit involves a degree of risk to
        the relevant satellite. By this Contact, the Parties have made a
        deliberate, knowing allocation between them of that risk and ICOGC
        shall solely bear the risk of loss for any Satellite launched hereunder.

15.2    Right to Destroy. The relevant Range Safety Officer or equivalent Launch
        Service Provider personnel shall be authorized to destroy, without
        liability or indemnity to the Launch Service Provider or Hughes, the
        relevant Launch Vehicle and Satellite if such action is mandated.

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ARTICLE 16     U.S. GOVERNMENT THIRD PARTY INDEMNIFICATION

In the event that ICOGC, at its sole discretion, is not reasonably satisfied
that the U.S. Government third party indemnification coverage identified in the
Commercial Space Launch Act is afforded to ICOGC, and consequently ICOGC elects
to procure insurance in lieu of such U.S. Government third party indemnification
coverage, Hughes agrees to reimburse ICOGC for   *   of ICOGC direct documented
cost of such insurance not to exceed the value of Hughes' Management Services
Fee identified in ARTICLE 4.1.

Notwithstanding the above, in the event that:

1)   The Commercial Space Launch Act is clarified such that ICOGC is reasonably
     satisfied that it is included in such U.S. Government third party
     indemnification coverage; or

2)   The Commercial Space Launch Act expires or is modified such that U.S.
     Government third party indemnification coverage is no longer available to
     launch vehicle customers;

then Hughes shall have no obligation to reimburse ICOGC for any costs procure,
or share in the procurement of any insurance deemed necessary by ICOGC.

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

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ARTICLE 17     TERMINATION

17.1      ICOGC Termination. ICOGC may terminate any unperformed portion of this
          Contract as specified below.

          17.1.1  ICOGC Termination For Convenience. At any point in time prior
          to Launch, ICOGC may direct Hughes, in writing, to terminate any
          Launch Service(s) provided herein for ICOGC convenience. As of the
          date specified (the "Effective Termination Date") in the written
          notice of termination from ICOGC, Hughes shall take the following
          actions:

          1)   stop the provision of Management Services under this Contract on
               the Effective Termination Date and to the extent specified in the
               notice of termination; and

          2)   terminate the appropriate Launch Service(s) on the Effective
               Termination Date; and

          3)   settle all outstanding liabilities and all claims arising out of
               such termination in accordance with the provisions of this
               ARTICLE 17, TERMINATION.

               17.1.1.1  Termination Liability Prior To Or On 05 July 1996. For
                         each Launch Service terminated by ICOGC in accordance
                         with Paragraph 17.1.1 above prior to or on 05 July
                         1996, ICOGC shall be liable to Hughes for:

                         (a) for each Launch Service provided via a Longterm
                         Launch Service Agreement, an amount of   *   per
                         terminated Launch Service; or

                         (b) for each Launch Service not provided via a Longterm
                         Launch Service Agreement, an amount resultant from the
                         relevant formula in CALCULATION 2, as defined in
                         EXHIBIT 1, TERMINATION LIABILITY CALCULATION.

               * Confidential Treatment Requested and the Redacted Material has
                 been separately filed with the Commission.

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  17.1.1.2    Termination Liability After 05 July 1996. For each Launch Service
              terminated by ICOGC in accordance with Paragraph 17.1.1 above,
              after 05 July 1996, ICOGC shall be liable to Hughes for an amount
              resultant from the relevant formula in CALCULATION 2, as defined
              in EXHIBIT I, TERMINATION LIABILITY CALCULATION.

17.1.2 ICOGC Termination For Hughes Default. Provided that ICOGC is not in
default of any term of this Contract. ICOGC may terminate, prior to Launch, any
Launch Service in the event any of the following events occur.

1)   Hughes breaches a material term of (i) this Contract; or (ii) the Satellite
     Contract; or (iii) a Launch Service Agreement and such breach of a
     material term by Hughes results in any Launch Service(s) provided herein
     being terminated for default by the relevant Launch Service Provider; or

2)   Hughes shall (A) commence a voluntary case under the US Bankruptcy Code
     (as now or hereafter in effect) (the "Code"); or (B) file a petition
     seeking to take advantage of any other laws, domestic or foreign, relating
     to bankruptcy, insolvency, reorganization, winding up or composition or
     adjustment of debts; or (C) consent to or fail to contest in a timely and
     appropriate manner any petition filed against it in an involuntary case
     under the Code or other laws or such a case shall not have been dismissed
     or stayed within thirty (30) days of the filing of the petition commencing
     the same; or (D) apply for, or consent to, or fail to contest in a timely
     and appropriate manner, the appointment of, or the taking of possession
     by, a receiver, custodian, trustee, liquidator or the like of itself or of
     a substantial part of its assets, domestic or foreign; or (E) admit in
     writing its inability to pay, or generally not be paying its debts (other
     than those that are the subject of a bona fide dispute) as they become
     due; or (F) make a general assignment for the benefit of creditors; or (G)
     Hughes or the Hughes Parent Company sells, transfers or otherwise disposes
     of all or substantially all of its assets (other than for full
     consideration) and as a result of the Parent Company Guarantee provided by
     Hughes is prejudiced and adequate

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      security, in a form reasonably acceptable to ICOGC, is not additionally
      provided; or (H) take any action for the purpose of effecting any of the
      foregoing; or (I) a case or other proceeding shall be commenced against
      Hughes in any court of competent jurisdiction seeking (i) relief under the
      Code or under any other laws, domestic or foreign, relating to bankruptcy,
      insolvency, reorganization, winding up or adjustment of debts; or (ii) the
      appointment of a trustee, receiver, custodian, liquidator or the like of
      Hughes or of all or any substantial part of its assets, domestic or
      foreign and such case or proceeding shall continue undismissed or unstayed
      for a period of thirty (30) days, or an order granting the relief request
      in such case or proceeding (including, but not limited to, an order for
      relief under the Code) shall be entered; or

3)    If the interrelated Satellite Contract is terminated by ICOGC solely due
      to a default by Hughes under the Satellite Contract.

        17.1.2.1  For each Launch Service(s) terminated by ICOGC in accordance
                  with Paragraph 17.1.2 above, ICOGC shall be liable to Hughes
                  for an amount resultant from the formula in CALCULATION 1, as
                  defined in EXHIBIT I, TERMINATION LIABILITY CALCULATION.

17.1.3.  ICOGC Termination For Launch Service Provider Default. ICOGC shall, at
its sole discretion, have the right to direct Hughes to terminate any Launch
Service (which termination shall be effected by Hughes by either (i) terminating
the relevant Launch Services or (ii) the Conversion of a Firm Launch to a Hughes
Optional Launch) prior to Launch, if the Launch Service Provider is in material
default of the terms and conditions of the relevant Launch Service Agreement, as
specified in this Contract including EXHIBITS B through E.

Upon the termination or Conversion of the Launch Service by Hughes on behalf of
ICOGC, the following shall occur:
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      17.1.3.1    Termination Settlement. ICOGC shall be entitled to receive a
                  termination settlement consisting of (i) in the event of a
                  Conversion, a refund of all payments submitted against the
                  Launch Service Fee for the terminated Launch Service; and (ii)
                  in the event of a Launch Service termination, (a) a refund of
                  all payments submitted against the Launch Service Fee for the
                  terminated Launch Service, and (b) reimbursement for direct
                  damages or Launch Vehicle reprocurement fees as defined in the
                  Table below. In addition to the above, Hughes shall retain a
                  share of the Management Services fee, as such share is
                  calculated in CALCULATION 2 of EXHIBIT I, TERMINATION
                  LIABILITY CALCULATION.

<TABLE>
<CAPTION>
LAUNCH SERVICE PROVIDER                  DIRECT DAMAGE OR REPROCUREMENT FEE
            VALUE
            --------------------------------------------------------------------------------
            <S>         <C>
Delta-III   For a terminated Delta-III Launch Service, Hughes shall reimburse
            ICOGC for direct damages related to the terminated Launch Service
            not to exceed   *   . ICOGC shall submit an invoice to Hughes which
            includes a summary of the applicable direct damages within twenty
            (20) days of determining the same.
            --------------------------------------------------------------------------------
            Proton      In the event of an "anticipatory repudiation" by the
            Proton Launch Service Provider of its obligations under the Launch
            Service Agreement, Hughes shall provide to ICOGC either (i)
            equivalent Launch Services via an alternate Launch Vehicle, taking
            into account the launch manifest of such an alternative Launch
            Service Provider, or (ii)   *   per affected Launch, whichever the
            Proton Launch Service Provider elects to provide.
            --------------------------------------------------------------------------------

Zenit       For a terminated Zenit Launch Service, Hughes shall pay to ICOGC a
            reprocurement fee of   *   for each terminated Launch Service.
            --------------------------------------------------------------------------------
            </TABLE>

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

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          17.1.3.2  Hughes Liability.  Notwithstanding any other Article or term
                    in this Contract, in the event that Hughes elects to Convert
                    a Firm Launch Service to an Optional Launch Service (as
                    defined in EXHIBIT C and E) for utilization on another
                    Hughes program when ICOGC has the right to terminate a
                    Launch Service Provider for default as specified in ARTICLE
                    13 of EXHIBIT C, ICOGC RIGHTS AND REMEDIES FOR DELTA-III
                    LAUNCH SERVICES or ARTICLE 14 of EXHIBIT E, ICOGC RIGHTS AND
                    REMEDIES FOR ZENIT LAUNCH SERVICES, Hughes shall be liable
                    to ICOGC for the amounts specified above regardless of
                    receipt of any payment from the relevant Launch Service
                    Provider.

          17.1.3.3  Hughes Default.  Notwithstanding any other provision of this
                    Contract, in no event shall any breach or default by any
                    Launch Service Provider be considered to be a breach or
                    default of this Contract by Hughes.

17.2 Hughes Termination for ICOGC Default.  Provided that Hughes is not in
     default of any terms of this Contract, Hughes may terminate, prior to
     Launch, any Launch Service(s) provided in this Contract for default upon
     written notice to ICOGC at any time after the occurrence of any of the
     following:

     1)   Failure of ICOGC to make any payment validly due to Hughes hereunder
          when due, provided such failure is not cured within a period of thirty
          (30) calendar Days following receipt of written notice thereof from
          Hughes.

     2)   Failure of ICOGC to maintain the irrevocable Letter of Credit in the
          amount specified in ARTICLE 4, CONTRACT PRICE, PAYMENT AND
          ADJUSTMENTS, provided such failure is not cured within a period of
          five (5) Business Days following receipt of written notice thereof
          from Hughes.

     3)   ICOGC passes a resolution for winding-up or a petition is presented
          for ICOGC's winding-up (unless such resolution or petition for winding
          up is pursuant to a scheme of corporate reconstruction or amalgamation
          and there is

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          no adverse effect on the payment obligations to Hughes hereunder) and,
          unless granted, is not dismissed within thirty (30) Days from
          presentation; or ICOGC becomes unable to pay its debts as they become
          due; or a receiver is appointed over all or a substantial part of
          ICOGC's assets and the appointment is not discharged within thirty
          (30) Days; or ICOGC or ICOGC's Parent Company sells, transfers, or
          otherwise disposes of all or the greater part of its assets (other
          than for full consideration) and as a result the Parent Company
          Guarantee provided by ICOGC is prejudiced and adequate security in a
          form reasonably acceptable to Hughes is not additionally provided.

     4)   If the interrelated Satellite Contract is terminated for any other
          reason than a default by Hughes under the Satellite Contract.

     5)   If any Launch Service provided under this Contract is terminated by
          the Launch Service Provider for default due to: (i) a failure of
          payment by ICOGC under this Contract; or (ii) a Launch Service
          postponement requested or caused by ICOGC, or (iii) the breach by
          ICOGC of a material term of this Contract which, as a direct result,
          is the sole cause of a Launch Service termination by the relevant
          Launch Service Provider against Hughes provided always that the right
          of termination under this ARTICLE 17.2 shall only apply to the Launch
          Service so affected.

     17.2.1 For each Launch Service(s) terminated by Hughes in accordance with
     Paragraph 17.2 above, ICOGC shall be liable to Hughes for the amount
     resultant from the relevant formula in CALCULATION 2, as defined in EXHIBIT
     I, TERMINATION LIABILITY CALCULATION.

     17.2.2 The rights and remedies provided to Hughes in this Paragraph 17.2
     shall be exclusive and in lieu of any other rights and remedies provided by
     law or in equity.

17.3 Termination Liability Mitigation. Without prejudice to the Delta-III
Termination Liability Mitigation as specified in EXHIBIT I, TERMINATION
LIABILITY CALCULATION, for any
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     Launch Service terminated after 05 July 1996, Hughes shall utilize its
     reasonable efforts to mitigate any resultant termination liability which
     ICOGC is liable for by utilizing the rights granted by the relevant Launch
     Service Agreement or such other rights or remedies negotiated with the
     Launch Service Provider, if any. Hughes shall attempt to mitigate the
     applicable termination liability for a period of eighteen (18) Months after
     the relevant termination event or the time period granted by the relevant
     Launch Service Agreement, whichever is less. The mitigation responsibility
     shall not require Hughes to incur or pay any Launch Revision Fees or any
     other charge whatsoever.

     In furtherance of the above, Hughes as its sole obligation shall contact,
     with ICOGC if requested, any Hughes Customer which may be able to utilize
     the terminated Launch Service(s) for the purposes of determining if the
     Hughes Customer has any interest in assuming or acquiring the terminated
     Launch Service. ICOGC shall have the right to review and accept or reject,
     prior to definitization, any proposed business transaction between Hughes,
     the Launch Service Provider and the relevant Hughes Customer. Upon receipt
     from Hughes, ICOGC shall provide acceptance or rejection of any proposed
     business transaction within fourteen (14) calendar Days.

     In addition, Hughes shall use its reasonable efforts to negotiate the
     assignment, or novation, of the rights and benefits for any outstanding
     Launch Service to ICOGC if this Contract is terminated due to a default by
     Hughes under the Satellite Contract or this Contract. Any transfer,
     assignment, or novation of a Launch Service to ICOGC shall be subject to
     the terms of the relevant Launch Service Agreement and approval of the
     relevant Launch Service Provider. ICOGC shall have the right to review and
     accept or reject, prior to definitization, any proposed assignment, or
     novation.

     ICOGC agrees that any bonafide offer delivered by Hughes to ICOGC for
     review shall be deemed to constitute the exercise of reasonable efforts.
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     Upon execution of the applicable business transaction, Hughes shall
     reimburse ICOGC the termination liability mitigation value within five (5)
     Business Days from receipt of such value from the respective Launch Service
     Provider or Hughes Customer, as appropriate.

17.4 Maximum Termination Liability. In no event shall ICOGC be liable to Hughes
     under this ARTICLE 17 for any termination liability value greater than the
     Contract Price. Any termination payment due to Hughes from ICOGC shall give
     credit for any amounts paid by ICOGC in respect of the terminated Launch
     Service(s).

17.5 Management Services Termination. For the purposes of this ARTICLE 17, any
     termination of a Launch Services shall include the termination of the
     associated Management Services and the cost of such termination of the
     associated Management Services is included within the amounts derived from
     CALCULATIONS 1 and 2 of EXHIBIT I, TERMINATION LIABILITY CALCULATION.

17.6 Remedies. In the event that the terminated Launch Service Provider fails to
     provide any termination settlement payment to Hughes, as specified in this
     ARTICLE 17, Hughes shall utilize its reasonable efforts to initiate and
     pursue all remedies specified in this Contract including EXHIBITS B through
     E, as applicable, including recovery by legal or arbitral proceedings or
     the utilization of any existing corporate guarantee or other financial
     guarantee or security. In no event shall Hughes be liable to ICOGC for any
     Launch Service Provider termination settlement payment or remedy until
     Hughes has received such termination settlement payment or remedy from the
     Launch Service Provider. Failure of Hughes to receive or obtain any
     termination settlement or remedy from the relevant Launch Service Provider
     shall not be considered a breach or default of this Contract by Hughes.
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ARTICLE 18     DATA RIGHTS

Neither Party nor any Launch Service Provider shall obtain rights or ownership
to any intellectual property utilized and/or provided by the other Party under
this Contract or by any Launch Service Provider.
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ARTICLE 19     RESERVED
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ARTICLE 20     RIGHTS IN INVENTIONS

Neither Party shall obtain any rights to any invention developed or utilized by
the other Party or its Associates in the performance of this Contract.
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ARTICLE 21     CONFIDENTIALITY

21.1    The Parties may provide or exchange proprietary information during the
        performance of the Work, in oral or written form, which may include
        specifications, drawings, sketches, models, samples, computer programs,
        reports, data, techniques, designs, codes, documentation, and financial,
        statistical or other technical information essential to the objectives
        of this of this Contract. All disclosures of such information will be
        treated as proprietary if marked as "Proprietary" by the Party making
        the disclosure at the time of disclosure.

21.2    Subject to the provisions of ARTICLE 21.3 below, the Party receiving the
        proprietary information of the other Party shall maintain such
        information in confidence and shall not use such information except as
        expressly authorized by this Contract. Each Party agrees to use the same
        care and discretion to void unauthorized disclosure, publication or
        dissemination of the other Party's proprietary information and the
        unauthorized use thereof as the receiving Party uses with respect to
        similar information of its own, but in no event, less than reasonable
        care. Should it become legally necessary for either Party to disclose
        certain of the other Party's proprietary information to a third party,
        it shall be disclosed only to the extent required by law and after a
        five (5) Days prior written notification to the other Party of the
        requirement for disclosure.

21.3    The obligations of confidentiality and restrictions on use specified in
        this ARTICLE shall not apply to any information that:

        A.      is already in the possession of the receiving Party without
                obligation of confidentiality at the time of disclosure;

        B.      is independently developed by the receiving Party or any of its
                Affiliates or subcontractors prior to disclosure as evidenced by
                appropriate documents;

        C.      is or becomes publicly available without breach of this Contract
                and without the fault of the receiving Party;

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        D.      is lawfully and rightfully received by the receiving Party from
                a third party; or

        E.      is released for public disclosure by the disclosing Party.

        Specific information shall not be deemed to be available to the public
        or in possession of the receiving Party merely because it is embraced by
        more general information so available or in the receiving Party's
        possession.

21.4    Hughes shall take best efforts necessary, including a appropriate
        contractual provisions in subcontracts, to ensure the confidentiality of
        all proprietary information of ICOGC which may be disclosed to
        Subcontractors and Launch Service Providers.

        ICOGC shall take best efforts necessary, including the appropriate
        contractual provisions in consulting agreements, to ensure the
        confidentiality of all proprietary information of Hughes which may be
        disclosed to Consultants.

21.5    Except as otherwise provided in this Contract including but not limited
        to ARTICLE 18, DATA RIGHT'S herein, the receiving Party agrees that: (i)
        any proprietary information disclosed hereunder shall be used by the
        receiving Party solely for the purpose of performing its functions in
        connection with the Party's relationship with respect to the Work; (ii)
        it will not use the proprietary information disclosed hereunder for any
        other purpose; and (iii) it will not distribute, disclose or disseminate
        to anyone such proprietary information of the disclosing Party, except
        that either Party may disclose to its own employees or subcontractors on
        a need-to-know basis, and either Party may disclose with the consent of
        the disclosing Party which consent will not be given unless such third
        party executes a proprietary data protection agreement with terms
        consistent with the requirements herein prior to receiving such
        information.

21.6    The Parties will specify individuals in writing as the point of contact
        for receiving proprietary information exchanged between the Parties
        pursuant to this Contract.

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21.7    ICOGC shall maintain EXHIBITS B through E, in accordance with the
        Proprietary Data Agreement of even date executed between the Parties.

21.8    The confidentiality obligations in this ARTICLE 21 shall survive
        expiration or termination of this Contract for whatever cause.

21.9    Nothing herein shall require a Party to disclose proprietary information
        to another.

21.10   The obligations imposed by this ARTICLE 21 shall be limited in time only
        by the events listed in ARTICLE 21.3, A through E.

21.11   Neither Party shall disclose the terms or conditions of this Contract,
        except as may be required to perform this Contract, to acquire financing
        or insurance or a benefit thereof, in support of arbitration or legal
        proceedings relating hereto, or as required by its Government or in the
        normal course of reporting to its parent company of for any other reason
        with the consent of the other Party, which consent shall not be
        unreasonably withheld.

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ARTICLE 22      INTERPRETATION

22.1    Applicable Law

        This Contract and any performance related thereto shall be interpreted
        and construed, governed and enforced in accordance with the Laws of
        England; it being understood that the UN Convention on the International
        Sale of Goods shall not applicable.

22.2    Amendments

        The Contract may not be modified except by written amendment signed by
        duly authorized representatives of both Parties.

        The responsible authorized representatives of the Parties may be added
        to or changed from time to time by written notice to the other Party.
        Until further notice, the responsible authorized representatives are as
        stated in ARTICLE 24, NOTICES.

        For the purpose of administration of this Contract, including
        amendments, any communication between ICOGC and Hughes shall be
        enforceable and binding upon the Parties only if signed by the
        appropriate responsible authorized representatives.

22.3    Changes Requested by Hughes or ICOGC

A.      Any changes requested by Hughes during the performance of this Contract,
        within the general scope of this Contract, which will or may add or
        delete Work, affect the provision of Launch Services or Management
        Services or will affect or may affect any other requirement of this
        Contract, shall be submitted in writing to ICOGC within an acceptable
        time period prior to the proposed date of the change. Such submittal
        shall allow ICOGC a reasonable period of time to evaluate Hughes'
        requested change. If such Hughes' requested change causes an increase or
        decrease in the total Contract Price, Hughes shall submit proposal to
        ICOGC.

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B.      ICOGC shall notify Hughes in writing within thirty (30) Days after
        receipt of the requested change and price adjustment, if any, whether or
        not it agrees with and accepts such change. If ICOGC agrees with and
        accepts the Hughes' requested change, Hughes shall proceed with the
        performance of the Contract as changed and an amendment to the Contract
        reflecting such change, and price adjustment, if any, shall be issued.
        If ICOGC does not agree with such Hughes' requested change, the Parties
        shall attempt to reach agreement on such change. In the event the
        Parties are unable to reach agreement on such change, or price
        adjustment, if any, or both, Hughes shall proceed with the performance
        of the Contract, as unchanged.

C.      For any changes requested by ICOGC during the performance of this
        Contract which will or may affect the provision of Launch Services or
        Management Services, Hughes shall respond to that request in writing to
        ICOGC within thirty (30) Days after such request. If such ICOGC
        requested change causes an increase or decrease in the total Contract
        Price, Hughes shall submit to ICOGC, at the time the response to the
        requested change is submitted, the details of such increase or decrease.
        If ICOGC should question the values involved in any proposal by Hughes,
        subject to the execution of a non-disclosure agreement between all
        relevant Parties, Hughes shall provide access to a third party auditor
        acceptable to both Parties, which third party auditor may review the
        relevant cost documentation and certify to ICOGC as to the validity of
        the Hughes proposal. ICOGC shall notify Hughes in writing, within a
        reasonable time after receipt of Hughes' response, whether or not it
        agrees with and accepts Hughes' response. If ICOGC agrees with and
        accepts Hughes' response, Hughes shall proceed with the performance of
        the Contract as changed and an amendment to the Contract reflecting such
        change, and price adjustment, if any, shall be incorporated into the
        Contract. If ICOGC does not direct such change, then Hughes shall
        proceed with the performance of the Contract as unchanged.
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ARTICLE 23     PUBLICITY

Each Party shall obtain the prior written approval of the other Party, which
approval shall not be unreasonably withheld or delayed, concerning the content
and timing of news releases, articles, brochures, advertisements, prepared
speeches and other information releases concerning the Work performed or to be
performed hereunder, within reasonable time prior to the release of such
information. For the avoidance of doubt, each Party shall be allowed to
publicize the award of the Contract, subject to the approval process stated
above.

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ARTICLE 24      NOTICES

All notices, demands or other communications required or permitted to be given
or made hereunder shall be in writing and delivered personally or sent by
prepaid first class post, or by telex, telefax or cable addressed to the
intended recipient thereof at its address set out below or to such other address
or telex or telefax number as either Party may from time to time duly notify the
other.

     A.   In respect of ICOGC, to:

          ICO Global Communications (Operations) Ltd.
          c/o I-CO Services Limited
          1 Queen Caroline Street
          Hammersmith, London W6 9BN
          United Kingdom

          Telephone: (0181) 600-1000
          Facsimile: (0181) 600-1199
          Attention: Olof Lundberg
                     Chief Executive Officer

          cc:        Space Segment Contracts Administrator
                     ICO Program Office
                     Hughes Space & Communications, MS: SC/S10/S35
                     PO Box 92919
                     Los Angeles, CA, 90009
                     Phone: (310) 364-9407
                     Facsimile: (310) 364-9495
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B.   In respect of Hughes, to:

     Hughes Space and Communications International, Inc.
     Bldg. S10, M/S S350,
     Post Office Box 92919, Airport Station,
     Los Angeles, California 90009
     Telephone: (310) 364-5729
     Facsimile: (310) 364-7990
     Attention: Dennis R. Beeson
                Manager, Contracts

     cc:        John Perkins
                Vice-President, Launch Services Acquisition & Risk Management
                Bldg: A01 M/S:4A436
                Post Office Box 9712
                Long Beach, California 90810-9928
                Phone: (310) 525-5235
                Facsimile: (310) 525-5310

Any notice or other document if served by post, shall be deemed to have been
served at the expiration of seven (7) Days after the time when the letter
containing the same was posted, and in proving such service it shall be
sufficient to prove that the letter containing the notice or document was
properly addressed, stamped and posted. A notice sent by telex, telefax or cable
is deemed to have been served: (1) two (2) hours after dispatch, if dispatched
on a Business Day before 3:00 PM; or (2) in any other case, at 10:00 AM on the
Business Day after the date of dispatch. Here a Business Day means a Business
Day in the city or other location to which the notice is sent, and the times
mentioned are those in that location.

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ARTICLE 25     INTEGRATION

This contract, together with the EXHIBITS, contains the entire agreement between
the Parties relating to subject matter hereof. All prior understandings,
representations and warranties (including those contained in sales, promotional
and/or marketing materials) by and between the Parties, written or oral, which
may be related to the subject matter hereof in any way, are superseded by this
Contract.

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ARTICLE 26     ASSIGNMENT

26.1    Hughes shall not assign, novate or transfer this Contract or any of its
        rights, duties or obligations thereunder to any person or entity, in
        whole or part without the prior written consent of ICOGC (which approval
        shall not be unreasonably withheld or unduly delayed) except that Hughes
        may assign, novate or transfer this Contract, and its duties and
        obligations thereunder either in whole or in part, to any Hughes
        Affiliate which is not engaged in business competitive to ICOGC provided
        always that Hughes shall remain liable with respect to performance of
        all duties and obligations set forth in this Contract, including
        compliance with all applicable laws and regulations and provided further
        that the Hughes Guarantee specified in EXHIBIT H, HUGHES GUARANTEE,
        remains in full force and effect.

26.2    ICOGC shall have no right to assign, novate or transfer this Contract,
        or any of its rights, duties or obligations hereunder without the prior
        written consent of Hughes (which consent shall not be unreasonably
        withheld or unduly delayed), except to any ICOGC Affiliate or to a third
        party financing the Satellites or Launch Services provided that each
        such assignment, novation or transfer shall have no material adverse
        effect on material obligation of ICOGC under this Contract, including,
        but not limited to, payment obligations to Hughes under this Contract.

26.3    In the case of an assignment, novation or transfer of this Contract by
        ICOGC in accordance with ARTICLE 26.2, the ICOGC Guarantee specified in
        EXHIBIT G, ICOGC GUARANTEE, shall remain in full force and effect save
        where the assignment, novation or transfer is to a third party financing
        the Satellites or Launch Services, in which case Hughes' consent to
        release the said ICOGC Guarantee may be requested by ICOGC and such
        consent shall not be unreasonably withheld, or unduly delayed.

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26.4    ICOGC shall give fifteen (15) Business Days prior notice to Hughes of
        any assignment, novation or transfer and brief details explaining the
        proposed transaction.

26.5    This Contract shall be binding upon the Parties hereto and their
        successors and permitted assigns.

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ARTICLE 27     SEVERABILITY

In a event any one or more of the the provisions of this Contract shall, for any
reason, be held to be invalid or unenforceable, the remaining provisions of this
Contract shall be unimpaired, and the invalid or unenforceable provision shall
be replaced by a mutually acceptable provision which, being valid and
enforceable, comes closest to the intention of the Parties underlying the
invalid or unenforceable provision.

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ARTICLE 28     RESERVED

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ARTICLE 29     RESERVED

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ARTICLE 30     DISPUTES AND ARBITRATION

30.1    If, during the course of performance hereunder, dispute arises between
        ICOGC and Hughes as to the rights or obligations of either Party under
        this Contract, either Party may give written notice of its objections
        and the reasons therefor ("Dispute Notice") and may recommend corrective
        action. Hughes' Program Manager shall consult with ICOGC's authorized
        senior program management representative in an effort to reach a mutual
        agreement to overcome such objections. In the event mutual agreement
        cannot be reached within five (5) Business Days of such notice, the
        respective positions of the Parties shall be forwarded to ICOGC's Chief
        Executive Officer and Hughes' President, for discussion and an attempt
        to reach mutual agreement.

30.2    If mutual agreement cannot be reached within fifteen (15) Business Days
        of the Dispute Notice, such dispute may be referred on the application
        of either Party for final determination to an arbitration tribunal
        convened by the London Court of International Arbitration which shall be
        conducted by three arbitrators in the English language.

30.3    The place of arbitration shall be London, England.

30.4    The award rendered by the arbitration tribunal shall be binding on both
        Parties, and shall be enforceable by any court of competent
        jurisdiction. The cost of arbitration, including the fees and expenses
        of the arbitrators, will be shared equally by the Parties, unless the
        award otherwise provides. Each Party shall bear the cost of preparing
        and presenting its own case, unless the award otherwise provides.

30.5    Notwithstanding anything else contained herein, the Parties agree that
        time is of the essence with regard to the time limits imposed by this
        ARTICLE 30 in resolving such dispute.
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ARTICLE 31     RESERVED

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ARTICLE 32     REPLACEMENT LAUNCHES

32.1    Replacement Launch Services. If any Launch Service herein should result
        in mission failure, ICOGC may request Hughes to provide a replacement
        Launch proposal. Such request shall include preferred Launch Service
        Provider(s), the date on which the Satellite is anticipated to be ready
        for launch and any mission specific data which will influence the
        provision of Launch Services for that Satellite. Within thirty (30) Days
        of receipt of such a request, Hughes shall submit a proposal to ICOGC
        for the acquisition of a replacement Launch Service. Any Hughes proposal
        shall be based upon and subject to the terms of the applicable Launch
        Service Agreement(s). Hughes agrees to provide to ICOGC any priority
        scheduling right or benefit allowed for in the applicable Launch Service
        Agreement(s) for the mission failure.

32.2    Hughes Proposal. Any Hughes proposal for a replacement Launch under an
        existing Longterm Launch Service Agreement shall: (i) be based upon, and
        be subject to, the provisions of the relevant EXHIBIT(S) B through E;
        (ii) utilize the Launch Service Fee and payment schedules specified in
        Table 4 and Table 5 of ARTICLE 4, CONTRACT PRICE, PAYMENT AND
        ADJUSTMENTS; and (iii) include a fee of   *   per Launch Service. Any
        Hughes proposal for a replacement Launch which does not utilize a
        Longterm Launch Services Agreement shall include a Management Services
        fee equal to * of the relevant Launch Service Cost initially proposed,
        and finally negotiated between Hughes and the Launch Service Provider.

        * Confidential Treatment Requested and the Redacted Material has been
          separately filed with the Commission.

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ARTICLE 33     OPTIONS

33.1    Launch Insurance. Upon receipt of written request from ICOGC, Hughes
        shall submit a proposal to ICOGC for the provision of launch insurance
        for the Launch Services provided herein. Such proposal shall assume that
        the launch insurance shall be obtained by Hughes on behalf of ICOGC and
        that ICOGC shall be the named insured. The written request from ICOGC
        shall identify the Launch Services, the coverage timing and the coverage
        amounts of such launch insurance policy. Any Hughes proposal shall be
        based upon the actual launch insurance cost to Hughes and shall include
        an additional Management Services fee equal to   *   of the actual
        launch insurance cost. ICOGC shall notify Hughes whether it accepts or
        rejects any Hughes proposal within thirty (30) Days of receipt of such
        proposal or by the offer validity date provided by the relevant
        insurance underwriters, whichever is sooner. For the purposes of this
        Paragraph, launch insurance may also include any relaunch, repayment or
        other type of insurance program offered by any Launch Service Provider.

33.2    Additional Launch Services. At any point in time, ICOGC may request
        Hughes to provide additional Launch Services under any Longterm Launch
        Service Agreement Any such request by ICOGC shall identify the required
        Launch Period, preferred Launch Service Provider and Satellite to be
        launched. Hughes shall provide a written proposal to ICOGC within
        fifteen (15) Calender Days of receipt of such request. Any Hughes
        proposal shall be subject to and conditional upon: i) the existence and
        terms of a Longterm Launch Service Agreement with the Launch Service
        Provider identified in such ICOGC request as of the later of the date of
        (a) the relevant ICOGC request or (b) the Launch Service option
        exercise; ii) compliance with the scheduling constraints specified in
        ARTICLE 3.3.3 herein; iii) the availability of the Launch Vehicle in
        the requested Launch Period, and iv) compliance with the Launch Service
        Fee and payment schedules specified in Tables 4 and 5 of ARTICLE 4,
        CONTRACT PRICE, PAYMENT AND ADJUSTMENTS. For the avoidance of doubt, if
        Hughes has a launch opportunity available under a Longterm Launch

        * Confidential Treatment Requested and the Redacted Material has been
          separately filed with the Commission.

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        Service Agreement, subject to the terms of this ARTICLE 33.2, Hughes
        shall allow ICOGC to purchase such launch opportunity to Launch an
        option Satellite.
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ARTICLE 34     LIMITATION OF LIABILITY

34.1    In no event shall either Party be liable to the other Party or its
        Associates or customers under or in connection with this Contract under
        any theory of contract, tort, negligence, strict liability or any other
        legal or equitable theory or otherwise for special, collateral,
        punitive, exemplary, consequential, indirect and/or incidental damages
        (including but not limited to lost revenues, loss of goodwill, loss of
        savings, loss of use, interruptions of business and claims of either
        Party or for any other form of economic loss), except as expressly
        provided in this Contract. It is the intent of the Parties that the
        public interest is not involved in the subject matter of this Contract.

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ARTICLE 35     MISCELLANEOUS

35.1    Disclaimer of Agency. None of the provisions of this Contract shall be
        construed to mean that either Party hereto is appointed or is in any way
        authorized to act as an Agent of the other Party. This Contract does not
        constitute, create, give effect to, or otherwise recognize a joint
        venture, partnership or formal business organization of any kind, and
        the rights and obligations of the Parties shall be limited to those
        expressly set forth herein.

35.6    Waiver of Breach of Contract. A waiver of any breach of a provision
        hereof shall not be binding upon either Party unless the waiver is in
        writing and such waiver shall not affect the rights of the Party not in
        breach with respect to any other or future breach. No failure or delay
        by any Party or time or indulgence given by it in or before exercising
        any remedy or right under or in relation to this Contract shall operate
        as a waiver of the same nor shall any single or partial exercise of any
        remedy or right preclude any further exercise of the same or the
        exercise of any other remedy or right.

35.3    Term of Contract. This Contract shall remain in full force and effect as
        long as either Party is or may be required to perform any obligation
        pursuant to this Contract.

35.4    Language. With respect to all correspondence relating to this Contract
        and to all material, including labels and markings of equipment,
        submitted by Hughes hereunder, the English language and U. S. units of
        measure, or unit(s) of measure utilized by a Launch Service Provider
        shall be used. Controlling language for this Contract shall therefore be
        the English language.
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35.5    Key Personnel. Hughes agrees that the following individuals are
        necessary for the successful completion of Management Services and
        Launch Services to be performed under this Contract and shall not be
        removed from the performance of these services without the consent of
        ICOGC, which consent shall not be unreasonably withheld. In the event
        that these personnel become unavailable for any reason and consent is
        given, Hughes shall select suitable replacement personnel who possess
        comparable levels of experience, qualifications and ability.
        Notwithstanding its role in approving key personnel and their
        replacements, ICOGC shall have no supervisory control over their work,
        and nothing in this ARTICLE shall relive Hughes of any of its
        obligations under this Contract, or of its responsibility for any acts
        or omissions of its personnel.

        Name             Title
        ----             -----
        J. Perkins       Vice-President,
                         Launch Services Acquisition & Risk Management

        G. Dutcher       Program Manager

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IN WITNESS WHEREOF, this Contract has been issued in two counterparts and signed
in the city of Brussels, Belgium on behalf of ICOGC and Hughes by persons
authorized on their behalf.

HUGHES SPACE AND COMMUNICATIONS INTERNATIONAL, INC.

See Original Contract for Signatures

By:
   ----------------------------------------
                (Signature)

Name:
      -------------------------------------

Title:
       ------------------------------------

ICO GLOBAL COMMUNICATIONS (OPERATIONS) LIMITED

See Original Contract for Signatures

By:
   ----------------------------------------
                (Signature)

Name:
      -------------------------------------

Title:
       ------------------------------------
<PAGE>   203
                                                                         4.7.2.1

                                                       1 JULY 1996 - AMENDMENT 1

                        CONTRACT NUMBER: ICOO/95-1003/YW

                           LAUNCH SERVICES SUPPLY AND
                               MANAGEMENT CONTRACT

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

                                    Exhibit A
                                Statement of Work

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

                                 7 December 1995

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CONTRACT NO: ICOO/95-1003/YW                                   STATEMENT OF WORK
--------------------------------------------------------------------------------

                               TABLE OF CONTENTS

<TABLE>
<S>       <C>                                                                  <C>
1         MANAGEMENT SERVICES PROVIDED FOR ICOGC GLOBAL
          COMMUNICATIONS (OPERATIONS) LIMITED (ICOGC) ..........................1

1.1       Scope ................................................................1

1.2       Applicable Documents .................................................1

2         DESCRIPTION OF WORK ..................................................2

2.1       Launch Service Provider Selection And Turn-On ........................2

2.1.1     Launch Schedules .....................................................2

2.1.2     Launch Agreements ....................................................2

2.2       Post Launch Service Provider Contract Award ..........................2

2.2.1     Management Activities ................................................2

2.2.1.1   Progress and Technical Meetings ......................................3

2.2.2     Selection of Launch Slot and Launch Date .............................3

2.2.3     Satellite/Launch Vehicle Technical Activities ........................3

2.2.4     Documentation ........................................................4

2.2.5     Launch Vehicle Acceptance ............................................4

2.2.6     Mission Director .....................................................5

3         REPORTING ............................................................6

4         RESERVED .............................................................7

5         LOGO .................................................................8

6         LAUNCH CAMPAIGN ACCOMMODATION AND FACILITIES .........................9

7         PRODUCT ASSURANCE ACTIVITIES & SAFETY ...............................11

7.1       Launch Vehicle Qualification ........................................11

7.2       Launch Vehicle Failure Reviews ......................................11

7.3       Requests for Deviation/Waiver .......................................11

8         PAYLOAD PROCESSING FACILITIES AND SERVICES ..........................12

9         MISSION INTEGRATION .................................................13

10        POST MISSION SUPPORT SERVICES .......................................14
</TABLE>

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CONTRACT NO: ICOO/95-1003/YW                                   STATEMENT OF WORK
--------------------------------------------------------------------------------

1       MANAGEMENT SERVICES PROVIDED FOR ICOGC GLOBAL COMMUNICATIONS
        (OPERATIONS) LIMITED (ICOGC)

1.1     Scope. This Statement of Work defines the Management Services to a
        provided by Hughes Space and Communications International, Inc.,
        (Hughes) to ICOGC for the supply of Launch Services and the overall
        management of the Launch Service Agreements for Launch of ICOGC's twelve
        (12) Satellites. Hughes shall assume all day-to-day management
        activities relative to the procurement of Launch Services.

1.2     Applicable Documents. Satellite Contract Between Hughes Space and
        Communications International, Inc. and ICOGC Global Communications
        (Operations) Limited, dated 3 October 1995, Contract Number
        ICOO/95-1002/NR.

                                                                          Page 1
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CONTRACT NO: ICOO/95-1003/YW                                   STATEMENT OF WORK
--------------------------------------------------------------------------------

2       DESCRIPTION OF WORK

2.1     Launch Service Provider Selection And Turn-On. Hughes shall ensure that
        the contract provisions with the Launch Service Providers enable Hughes
        to meet the requirements defined in this Statement of Work, and are
        fully consistent with the Satellite design, Designated Launch Site
        processing and mission requirements.

        2.1.1.  Launch Schedules. Hughes shall schedule each of the respective
                Satellite Launches with a Launch Service Provider in sufficient
                time to assure that the scheduling requirements of the Contract
                are satisfied. Hughes shall provide alternate Launch risk
                management plans in the event scheduling problems develop.

        2.1.2   Launch Agreements. Launch Services via Long Term Launch Service
                Agreements shall be employed to satisfy the terms of this
                Contract, or at ICOGC's direction, Hughes shall develop, in
                conjunction with ICOGC, the appropriate and necessary Request
                For Proposal (RFP) documentation (when necessary), consistent
                with the requirements, terms and conditions of this Contract and
                the Satellite Contract to enable the competitive solicitation of
                bids from alternate Launch Service Providers.

                Hughes shall manage this program so as to minimize the impact of
                any Launch Service Provider substitution.

2.2     Post Launch Service Provider Contract Award

        2.2.1   Management Activities. After Launch Service Provider turn-on or
                award of a Launch Service Agreement, Hughes shall provide all
                appropriate management and technical services to support the
                Satellite to Launch

                                                                          Page 2
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                                                       1 JULY 1996 - AMENDMENT 1
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CONTRACT NO: ICOO/95-1003/YW                                   STATEMENT OF WORK
--------------------------------------------------------------------------------

                Vehicle interface activities and shall be responsible for all
                Contract management functions, including but not limited to:

                -       Negotiation of contract changes

                -       Management and tracking of program milestones

                -       Coordination of data/information exchanges, and

                -       Data approvals as required by the Launch Service
                        Agreement

        2.2.1.1 Progress and Technical Meetings. Regular progress meetings shall
                be conducted as necessary with the Launch Service Providers to
                which ICOGC shall be invited. As a minimum these will be held at
                quarterly intervals and may be combined with technical interface
                meetings for expediency.

        2.2.2   Selection of Launch Slot and Launch Date. Hughes shall
                coordinate the development of the Launch Service Master Phasing
                Schedule and monitor progress against major milestones.

                Hughes shall ordinate with ICOGC the selection of the relevant
                Launch Slot and Launch Date consistent with the schedule
                established by ICOGC requirements. Hughes shall initiate
                discussion with ICOGC at least thirty (30) calender Days prior
                to the determination dates for the establishment of the Launch
                Date.

        2.2.3   Satellite/Launch Vehicle Technical Activities. Hughes shall
                coordinate the overall schedule for the Launch Services and
                content of meetings and major reviews throughout the
                Satellite/Launch Vehicle integration process.

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

                Hughes shall ordinate the Launch Vehicle and Satellite
                integration process and provide the management interface to
                ensure that technical requirements, data and analyses are
                established and coordinated between the engineering staffs of
                the Satellite Program Office and the Launch Service Provider.

                Hughes shall maintain and report the status of all action
                items generated from the above meetings and coordinate their
                resolution.

        2.2.4   Documentation. Hughes shall review and provide ICOGC all
                documentation, analyses and reports prepared under this
                Contract, in accordance with the applicable Launch Service
                Agreement, which are required to successfully complete the
                integration process. These may include, but are not limited to:

                -       Interface Control Documents

                -       Coupled Loads Analysis

                -       Thermal Analysis

                -       Integration and Mission Analyses

                -       Launch Operations and Safety Planning

                -       Separation analysis

                -       Venting analysis

                -       Clearance analysis

                -       Launch operations and safety documents

                -       Payload matchmates and separation shock tests when
                        required.

                -       Trajectory, Guidance Targeting, Accuracy analysis and
                        associated orbit characteristics and dispersion

                -       Launch Vehicle contamination and cleanliness analysis

                -       Launch Failure Reports, if applicable

        2.2.5   Launch Vehicle Acceptance. Hughes shall monitor all work in
                progress and the final acceptance of the Launch Vehicle in
                accordance with the

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

                applicable Launch Service Agreement. This shall include, but is
                not limited to:

                -       review of progress reports submitted by the relevant
                        Launch Service Provider

                -       attending major reviews

                -       tracking problem resolutions

        2.2.6   Mission Director

                Hughes shall act in the capacity of Mission Director (i.e ., the
                individual responsible for providing the Satellite status during
                the Launch campaign and the final go/no-go decision for Launch
                to the Launch Service Provider) for ICOGC during the Launch.

                                                                          Page 5
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--------------------------------------------------------------------------------

3.0     REPORTING

        Hughes shall provide ICOGC with full visibility of Contract and
        technical actions by providing a monthly progress report to the ICOGC
        resident team. The format of this report shall be jointly agreed upon by
        ICOGC and Hughes and shall be adjusted over the life of the program as
        necessary.

        Hughes shall inform ICOGC, or its designated representative, of the date
        and time of all significant meetings (i.e. Preliminary Design Reviews,
        Critical Design Reviews, Management Review Meetings, etc.), and ICOGC
        personnel or their designated representative, as they choose, may attend
        any of the meetings held with the Launch Service Provider and/or the
        Satellite manufacturer. This attendance shall be limited to three (3)
        ICOGC personnel. Additional ICOGC personnel may attend as mutually
        agreed upon by ICOGC, Hughes and the Launch Service Provider.

        Hughes shall notify ICOGC promptly, initially either in person or by
        telephone and then shall confirm in writing within seven (7) Days, of
        any material event, circumstance, or development which the Hughes
        Mission Manager reasonably believes will affect (a) the quality of any
        Launch Vehicle or component part thereof or any services or data and
        documentation to be provided herein, or (b) the Launch Schedule(s)
        herein. Notifications made pursuant to this Paragraph are intended to
        supplement but not replace information available or provided to ICOGC
        pursuant to this Article.

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

4.0     RESERVED

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

5.0     LOGO

        The Launch Service Provider shall include provision for the inclusion of
        the ICOGC logo on each Launch Vehicle fairing. ICOGC shall supply final
        details of the logo no later than Launch minus twelve Months (2-12) for
        the first Launch on each type of Launch Vehicle (i.e. Atlas IIAS,
        Proton, Delta III, Zenit, etc.).

                                                                          Page 8
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--------------------------------------------------------------------------------

6.0     LAUNCH CAMPAIGN ACCOMMODATION AND FACILITIES

        Hughes shall assure that the Launch Service Providers will make
        available office space for up to three (3) ICOGC residents and/or
        representatives at the Launch Service Provider's Satellite processing
        and Designated Launch Site facility, for the duration of the Satellite
        Launch campaign. These facilities shall be co-located with those of the
        Hughes Launch support team. Appropriate telephone, fax, copying and
        other general office facilities shall be provided. ICOGC shall have full
        access to all appropriate data and monitoring facilities at the
        Designated Launch Site which are available to the Hughes Launch team.

        In the case of Proton or Zenit Launches where commercially available
        off-base housing, transport and general living facilities are not
        available, Hughes shall, if requested, arrange to supply these to the
        ICOGC personnel in the same manner provided to its own Launch team. All
        charges, if any, incurred by Hughes for the provision of these living
        facilities, food and transportation shall be billed to ICOGC.

        Note: i  For Launches conducted in Baikonur, there is a charge of
                 between $115.00 US and $135.00 US (depending on the year of the
                 Launch) for lodging and all food service per person per day. A
                 charge of $900.00 US per person is levied for round trip
                 transportation from Moscow to the Baikonur Launch Site and all
                 associated ground transportation.

              ii For Zenit Launches transportation for ICOGC personnel to Long
                 Beach, California, and/or any other point of debarkation of the
                 command and control ship or any air transportation, or surface
                 ship transport to the command and control ship at sea, shall be
                 borne by ICOGC. Any cost for ICOGC personnel's lodging, meals,
                 transportation and recreation, while on board the command and
                 control ship, shall be borne by ICOGC, but shall not to exceed
                 $200.00 US per day per

                                                                          Page 9
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--------------------------------------------------------------------------------

                person. If Hughes is not charged for lodging, meals and
                transportation while on board the command and control ship, no
                cost will be passed to ICOGC.

                                                                         Page 10
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--------------------------------------------------------------------------------

7.0     PRODUCT ASSURANCE ACTIVITIES & SAFETY

        7.1     Launch Vehicle Qualification. Hughes shall ensure that the
                Launch Service Provider clearly indicates qualification status
                of the Launch Vehicle and assures that any new, modified or
                mission peculiar items have been qualified. All items falling
                into this category shall be highlighted to ICOGC.

        7.2     Launch Vehicle Failure Review. Hughes shall ensure that ICOGC
                is appropriately involved in any Launch Vehicle failure review
                board activities relevant to ICOGC Launch Vehicle hardware or
                which may impact the ability of the Launch Service Provider to
                deliver on time. The level of involvement will vary. However any
                failure occurring shortly and in particularly immediately before
                planned ICOGC Launch shall include full disclosure and
                participation rights.

        7.3     Requests for Deviation/Waiver. All Launch Service Provider
                deviations/waivers affecting key performance margins, interface
                control documents or mission requirements shall be promptly
                submitted to ICOGC for review.

                                                                         Page 11
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--------------------------------------------------------------------------------

8.0     PAYLOAD PROCESSING FACILITIES AND SERVICES

        Hughes shall be responsible for arranging all necessary payload
        processing facilities and services required to safely and efficiently
        support Satellite payload processing at the Designated Launch Site,
        including any Satellite test activities.

                                                                         Page 12
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--------------------------------------------------------------------------------

9.0     MISSION INTEGRATION

        Hughes shall, as a minimum, conduct the following mission reviews and
        meetings with the Launch Service Provider, to which ICOGC personnel
        shall be invited:

        -       Technical Working Groups (as needed).

        -       Preliminary and Critical Mission Peculiar Design Reviews
                (typically only held once per Launch).

        -       Ground Operations Readiness Review (typically at L-12 and L-6
                months).

        -       Launch Vehicle Readiness Review (typically 2 days before each
                Launch)

        -       Launch Readiness Review (typically 1 day before each Launch)

        -       Launch Vehicle quality and/or systems reviews if provided by
                Launch Service Providers.

                                                                         Page 13
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--------------------------------------------------------------------------------

10.0    POST MISSION SUPPORT SERVICES

        Hughes shall provide all necessary post mission support services. These
        shall include but are not limited to:

        - Satellite orbit and attitude data at separation, within 45 minutes of
          separation.

        - Post Launch evaluation report (Satellite flight environment and
          separation assessment) from Launch Vehicle telemetry.

                                                                         Page 14
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                                                       1 JULY 1996 - AMENDMENT 1

                                                                        4.7.2.6a

                        CONTRACT NUMBER: ICOO/95-1003/YW

                           LAUNCH SERVICES SUPPLY AND
                               MANAGEMENT CONTRACT

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

                                    EXHIBIT F

                             MILESTONE PAYMENT PLAN

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

                                7 DECEMBER 1995

<PAGE>   220
              * [EXHIBIT F AMENDMENT 1 TOTAL OF 7 PAGES HAVE BEEN REDACTED]

              * Confidential Treatment Requested and the Redacted Material has
                been separately filed with the Commission.
<PAGE>   221
                                        *
<PAGE>   222
                                        *
<PAGE>   223
                                        *
<PAGE>   224
                                        *
<PAGE>   225
                                        *
<PAGE>   226
                                        *
<PAGE>   227

                                                       1 JULY 1996 - AGREEMENT 1

                                                                         4.7.2.7

                        CONTRACT NUMBER: ICOO/95-1003/YW

                           LAUNCH SERVICES SUPPLY AND
                               MANAGEMENT CONTRACT

                                    EXHIBIT G
                                 ICOGC GUARANTEE

                                 7 DECEMBER 1995

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Contract No: ICOO/95-1003/YW                                     ICOGC GUARANTEE
--------------------------------------------------------------------------------

                                 ICOGC GUARANTEE

1       In consideration of Hughes Space and Communications International, Inc
("Hughes") entering into a contract with ICO Global Communications (Operations)
Limited ("ICOGC") for the supply of launch services and the management thereof
for the ICO Program dated 7 December, 1995 (as such contract may be amended,
varied, extended, renewed or supplemented from time to time, the "Launch Vehicle
Contract" and expressions defined in the Launch Vehicle Contract shall have the
same meanings in this Guarantee) and for sufficient consideration (receipt
whereof the Guarantor hereby acknowledges) I-CO GLOBAL COMMUNICATIONS (HOLDINGS)
LIMITED (the "Guarantor") hereby unconditionally guarantees the payment on the
due date of all sums payable now or in the future to Hughes by ICOGC under the
Launch Vehicle Contract when and as the same become due and the full, prompt and
complete performance by ICOGC of all its obligations under the Launch Vehicle
Contract.

2       The Guarantor hereby unconditionally and irrevocably agrees as a
separate, continuing and primary obligation to indemnify Hughes on demand should
any amount due under Clause 1 not be recoverable from the Guarantor on the basis
of guarantee for any reason whatsoever.

3       The Guarantor's obligations under this Guarantee shall be subject to all
the relevant terms and conditions of the Launch Vehicle Contract and nothing in
this Guarantee shall constitute a waiver by ICOGC or the Guarantor of any
defense, claim or counterclaim available to ICOGC under the Launch Vehicle
Contract or otherwise. Subject to paragraph 2 above, the Guarantor's sole
obligation under this Guarantee shall be as guarantor of the obligations of
ICOGC under the Launch Vehicle Contract, subject to all of the limitations on
such obligations which are provided for in such Launch Vehicle Contract or under
applicable law except for such limitations as may arise in law as a result of
bankruptcy, insolvency or reorganisation proceedings relating to ICOGC. The
Guarantor hereby acknowledges that its liability as Guarantor under this
Guarantee shall not be discharged or impaired in any way by:

        (a)     any compromise or release of or abstention from perfecting or
                enforcing any right or remedy against ICOGC or any other person;
                or

        (b)     any release of or granting of time to ICOGC or any other
                indulgence, waiver, consent or concession being granted at
                anytime to ICOGC or any other person; or

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

        (c)     any other act, omission, dealing, matter or thing whatsoever
                (including, without limitation, any change in the memorandum or
                articles of association (or their equivalent) of ICOGC, or any
                irregularity, unenforceability or invalidity of any obligations
                of ICOGC under the Launch Vehicle Contract or the liquidation,
                dissolution, reconstruction, amalgamation or bankruptcy of ICOGC
                or any other change in the corporate relationship between the
                Guarantor and ICOGC including any merger, consolidation or sale
                of assets of ICOGC; or

        (d)     any legal limitation, disability, incapacity or other
                circumstances relating to ICOGC or any other person or any
                amendment to or extension or variation of the terms of the
                Launch Vehicle Contract or any other document referred to in the
                Launch Vehicle Contract.

4       The Guarantor hereby declares and agrees that this Guarantee shall be
held by Hughes as a continuing security and shall not be satisfied by any
intermediate payment or satisfaction of any part of the obligations hereby
guaranteed and shall remain in full force and effect until all the obligations
of ICOGC under the Launch Vehicle Contract have been performed and all sums
payable by ICOGC under the Launch Vehicle Contract have been fully paid and
discharged in full in each case in accordance with the Launch Vehicle Contract
and subject to all the provisions therein contained.

5       This Guarantee shall be in addition to, and not in substitution for, any
other rights which Hughes may now or hereafter have under or by virtue of any
guarantee or security or agreement or any lien or by operation of law or under
any collateral or other security now or hereafter held by Hughes or to which
Hughes may be entitled.

6       Any release, compromise or discharge of the obligations of the Guarantor
under this Guarantee shall be deemed to be made subject to the condition that it
will be void if any payment or security which Hughes may receive or have
received is set aside or proves invalid for whatever reason.

7       All payments to be made by the Guarantor to Hughes under this Guarantee
shall be made on the due date in United States Dollars and in cleared funds and
to such account as Hughes shall specify and shall be made free and clear of, and
without deduction for or on account of, any present or future taxation, unless
the Guarantor is required by law or regulation to make payment subject to any
taxation, in which event such payment shall be increased by such amount as may
be necessary to ensure that Hughes receives a net amount, which, after deducting
or withholding such taxation, is equal to the full amount which Hughes would
have received had such payment not been subject to such taxation.

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Contract No: ICOO/95-1003/YW                                     ICOGC GUARANTEE
--------------------------------------------------------------------------------

8       The Guarantor shall be subrogated to the rights of Hughes against ICOGC
in respect of any amounts paid by the Guarantor to Hughes pursuant to the
provisions of this Guarantee; provided, however, that the Guarantor shall not be
entitled to enforce or receive any payments arising out of, or based upon, such
right of subrogation, or any related claim for exoneration, indemnification or
reimbursement that the Guarantor may now have or hereafter acquire against ICOGC
in any way related to or arising from the obligations ICOGC under the Launch
Vehicle Contract, until such obligations or, as the case may be the relevant
part thereof, shall have been paid and performed in accordance the terms and
conditions of the Launch Vehicle Contract.

9       In addition to the liability otherwise assumed in this Guarantee, the
Guarantor shall immediately reimburse Hughes for all costs and expenses,
including all reasonable legal fees and costs, incurred by Hughes in the
collection or enforcement of any liability under this Guarantee. However, if the
Guarantor is the prevailing party in any proceedings to collect or enforce any
liability under this Guarantee, Hughes agrees that it shall immediately
reimburse the Guarantor for all costs and expenses, including all reasonable
legal fees and costs, which the Guarantor may incur in connection with any such
proceedings, and the Guarantor shall have no liability to Hughes under the
preceding sentence in this paragraph 9 in any such proceeding.

10      This Guarantee and any provision hereof may be waived, amended,
modified or supplemented as between Hughes and the Guarantor only by an
agreement or instrument in writing executed by the Guarantor and Hughes.

11      Any notice, demand or other communication required or permitted to be
made hereunder shall be in writing and signed by or on behalf of the person
giving it. Except in the case of personal service, any notice shall be sent or
delivered to the party to be served at the address or to the facsimile number
set out below and if a person or officer is named for the purpose, the notice
shall be marked for his attention. Any alteration in such details shall, to have
effect, be notified to the other parties in accordance with this clause.

12      Service of a notice must be effective by one of the following methods:

        12.2.1  personally on the Chief Executive Officer or the Company
                Secretary of either party and shall be treated as served at the
                time of such notice;

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

        12.2.2  by prepaid first class post (or by airmail if from one country
                to another) and shall be treated as served on the second (or if
                by airmail the fourth) Business Day after date of posting. In
                proving service it shall be sufficient to prove that the
                envelope containing the notice as correctly addressed, postage
                paid and posted; or

        12.2.3  by delivery of the notice through the letterbox of the party to
                be served or by sending it by facsimile and shall be treated as
                served on the first Business Day after the date of such delivery
                or sending. In proving service by facsimile it shall be
                sufficient to prove that the facsimile was preceded by the
                answerback code of the party to whom it was sent.

                A.      In respect of the Guarantor, to:

                              I-CO Global Communications (Holdings) Limited
                              c/o I-CO Services Limited
                              1 Queen Caroline Street
                              London  W6 9BN
                              Telephone: (181 600-1000)
                              Facsimile: (181 600-1199)
                              Attention: Olof Lundberg

                B.      In respect of Hughes, to:

                              Hughes Space and Communications International, Inc
                              Bldg. S10, M/SS350
                              Post Office Box 92919, Airport Station,
                              Los Angeles, California 90009
                              Telephone: (310) 304-5729
                              Facsimile: (310) 364-7990
                              Attention: Dennis R. Beeson
                                         Manager, Contracts.

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Contract No: ICOO/95-1003/YW                                     ICOGC GUARANTEE
--------------------------------------------------------------------------------

13      This Guarantee shall be governed by, and construed in accordance with
English law. The provisions of Article 30 of the Launch Vehicle Contract
(Disputes and Arbitration) shall apply mutatis mutandis this Guarantee.

Dated 7th day of December, 1995

                           See Original for Signatures
                           ---------------------------
                              FOR AND ON BEHALF OF
                           I-CO GLOBAL COMMUNICATIONS
                               (HOLDINGS) LIMITED

                           See Original for Signatures
                           ---------------------------
                              FOR AND ON BEHALF OF
                         HUGHES SPACE AND COMMUNICATIONS
                               INTERNATIONAL, INC

<PAGE>   233

                                                       1 JULY 1996 - AMENDMENT 1

                                                                         4.7.2.8

                        CONTRACT NUMBER: ICOO/95-1003/YW

                           LAUNCH SERVICES SUPPLY AND
                               MANAGEMENT CONTRACT

                                    EXHIBIT H
                                HUGHES GUARANTEE

                                7 DECEMBER 1995

<PAGE>   234

                                                       1 JULY 7996 - AMENDMENT 1

                        CONTRACT NUMBER: ICOO/95-1003/YW

                           LAUNCH SERVICES SUPPLY AND
                               MANAGEMENT CONTRACT

                                    EXHIBIT H
                                HUGHES GUARANTEE

                                 7 DECEMBER 1995

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LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT                         EXHIBIT H
Contract No: ICOO/95-1003/YW                                    HUGHES GUARANTEE
--------------------------------------------------------------------------------

GUARANTEE AGREEMENT ("Guarantee") dated as of December ___, 1995, between HUGHES
ELECTRONICS CORPORATION, a Delaware corporation ("Guarantor") and ICO GLOBAL
COMMUNICATIONS (OPERATIONS) LIMITED, a company incorporated in the Cayman
Islands as an Exempted Company having its registered office at the Huntlaw
Building, P.O. Box 1350, Fort Street, Georgetown, Grand Cayman, Cayman Islands
("Beneficiary").

For value received, and to induce Beneficiary to enter into that certain
Contract for Launch Services Supply and Management, dated December ___, 1995
(the "Contract") with HUGHES SPACE AND COMMUNICATIONS INTERNATIONAL, INC., a
Delaware corporation and an indirect wholly-owned subsidiary of Guarantor
("Obligor"), Guarantor agrees with Beneficiary as follows:

1.      Guarantee. Guarantor undertakes and guarantees the full, prompt and
        complete performance by Obligor of all its obligations under the
        Contract and the due and punctual payment of all sums which are payable
        by the Obligor to the Beneficiary under the Contract when the same shall
        become due and undertakes with the Beneficiary that if the Obligor shall
        default in the payment of any sum which is due and payable to
        Beneficiary under the Contract, the Guarantor shall pay such sum to
        Beneficiary, within ten (10) days after demand in writing by
        Beneficiary. Guarantor's obligations to Beneficiary under this Guarantee
        shall in each case be subject to all the relevant terms and conditions
        of the Contract and applicable law and nothing in this Guarantee shall
        be deemed to constitute a waiver by the Obligor or the Guarantor of any
        defense, claim or counterclaim available to the Obligor under the
        Contract or under applicable law. Subject to paragraph 2 below,
        Guarantor's sole obligation to Beneficiary under this Guarantee shall be
        as guarantor of the obligations of Obligor under the Contract, subject
        to all of the limitations on such obligations which are provided for in
        such Contract or under applicable law (except for such limitations as
        may arise as the result of a bankruptcy, insolvency or reorganization
        proceeding of Obligor).

2.      The Guarantor hereby unconditionally and irrevocably agrees as a
        separate, continuing and primary obligation to indemnify the Beneficiary
        on demand should any amount due under Clause 1 not be recoverable from
        the Guarantor on the basis of a guarantee for any reason whatsoever.

3.      Continuing Guarantee. The Guarantee in paragraph 1 is a continuing
        guarantee and shall remain in force until all obligations of the Obligor
        under the Contract have been fully performed and all sums payable by the
        Obligor have been fully paid, in each case in accordance with the
        Contract and subject to all the provisions therein contained.

4.      Waivers of Notice, etc. The obligations of the Guarantor under this
        Guarantee shall not be affected by any act, omission, matter or thing
        which, but for this provision, might operate to release or otherwise
        exonerate the Guarantor from its obligations or affect such obligations
        including without limitation and whether or not known to Guarantor.

        (a)     any time, indulgence, waiver or consent at any time given to the
                Obligor or any other person;

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

        (b)     any compromise or release of or abstention from perfecting or
                enforcing any right or remedy against the Obligor or any other
                person;

        (c)     any legal limitation, disability, incapacity or other
                circumstance relating to Obligor or any other person or any
                amendment to or variation of the terms of the Contract or any
                other document referred to in the Contract;

        (d)     any change in the corporate relationship between the Obligor and
                Guarantor, including any merger, consolidation or sale of assets
                of Obligor, and

        (e)     any irregularity, unenforceability or invalidity of any
                obligations of the Obligor under the Contract or the
                dissolution, reconstruction or insolvency of the Obligor.

5.      No Waiver by Beneficiary. No failure on the part of the Beneficiary, or
        delay by Beneficiary, in exercising any right under or with respect to
        this Guarantee shall operate as a waiver thereof, nor shall any single
        or partial exercise of any such right preclude any other or further
        exercise thereof or the exercise of any other right of Beneficiary under
        or with respect to this Guarantee or the Contract.

6.      Any release, compromise or discharge of the obligations of the Guarantor
        under this Guarantee shall be deemed to be made subject to the condition
        that it will be void if any payment or security which the Beneficiary
        may receive or have received is set aside or proves invalid for whatever
        reason.

7.      All payments to be made by the Guarantor to the Beneficiary under this
        Guarantee shall be made on the due date in United States Dollars and in
        cleared funds and to such accounts as the Beneficiary shall specify and
        shall made free and clear of, and without deduction for or on account
        of, any present or future taxation, unless the Guarantor is required by
        law or regulation to make payment subject to any taxation, in which
        event such payment shall be increased by such amount as may be necessary
        to ensure that the Beneficiary receives a net amount, which, after
        deducting or withholding such taxation, is equal to the full amount
        which the Beneficiary would have received had such payment not been
        subject to such taxation.

8.      Right of Subrogation. Guarantor shall be subrogated to the Rights of the
        Beneficiary against Obligor in respect of any amounts paid by Guarantor
        to Beneficiary pursuant to the provisions of this Guarantee; provided,
        however, that Guarantor shall not be entitled to enforce or receive any
        payments arising out of, or based upon, such right of subrogation, or
        any related claim for exoneration, indemnification or reimbursement that
        Guarantor may now have or hereafter acquire against Obligor in any way
        related to or arising from the obligations of Obligor under the
        Contract, until all such obligations shall have been paid and performed
        in accordance with the terms and conditions of the Contract or
        applicable law.

<PAGE>   237

                                                       1 JULY 1996 - AMENDMENT 1
LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT                         EXHIBIT H
Contract No: ICOO/95-1003/YW                                    HUGHES GUARANTEE
--------------------------------------------------------------------------------

9.      Attorneys' Fees and Costs. In addition to the liability otherwise
        assumed in this Guarantee, Guarantor agrees to forthwith reimburse
        Beneficiary for all costs and expenses, including all reasonable
        attorneys' fees and costs, incurred by Beneficiary in the collection or
        enforcement of any liability under this Guarantee. However, if Guarantor
        is the prevailing party in any proceeding to collect on or enforce any
        liability under this Guarantee, Beneficiary agrees to forthwith
        reimburse Guarantor for all costs and expenses, including all reasonable
        attorney' fees and costs, which Guarantor may incur in connection with
        any such proceeding, and Guarantor shall have no liability to
        Beneficiary under the preceding sentence in this paragraph 6 in any such
        proceeding.

10.     Amendments. This Guarantee and any provision hereof may be waived,
        amended, modified or supplemented as between beneficiary and Guarantor
        only by an agreement or instrument in writing executed by Guarantor and
        Beneficiary; and neither this Guarantee near any provision hereof shall
        be varied, contradicted or explained by an oral agreement, course of
        dealing or performance, usage of trade or any other matter not set forth
        in an agreement or instrument in writing and executed as specified
        above.

11.     Notices.

        11.1    Any notice, demand or other communication required or permitted
                to be made hereunder shall be in writing and signed by or on
                behalf of the person giving it. Except in the case of personal
                service, any notice shall be sent or delivered to the party to
                be served at the address or to the facsimile number set out
                below and if a person or officer is named for the purpose, the
                notice shall be marked for his attention. Any alteration in such
                details shall, to have effect, be notified the other parties in
                accordance with this clause.

        11.2    Service of a notice must be effective by one of the following
                methods:

                11.2.1  personally on the Chief Executive Officer or the Company
                        Secretary either party and shall be treated as served at
                        the time of such notice:

                11.2.2  by prepaid first class post (or by airmail if from one
                        country to another and shall be treated as served on the
                        second (or if by airmail fourth) Business day (as
                        defined in the Contract) after date of posting. In
                        proving service it shall be sufficient to prove at the
                        envelope containing the notice was correctly addressed,
                        postage paid and posted; or

                11.2.3  by delivery of the notice through the letterbox of the
                        party to be served or by sending it by facsimile and
                        shall be treated as served on the first Business Day
                        after the date of such delivery or sending. In proving
                        service by facsimile it shall be sufficient to prove
                        that the facsimile was preceded by the answerback code
                        of the party to whom it was sent.

<PAGE>   238

                                                       1 JULY 1996 - AMENDMENT 1
LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT                         EXHIBIT H
Contract No: ICOO/95-1003/YW                                    HUGHES GUARANTEE
--------------------------------------------------------------------------------

                     A.      In respect of the Beneficiary, to:

                             ICO Global Communications (Operations) Ltd.
                             c/o ICO Services Limited
                             1 Queen Caroline Street
                             London W69BN
                             United Kingdom
                             Telephone: (181) 600-1000
                             Facsimile: (181) 600-1199
                             Attention: Olof Lundberg

                     B.      In respect of the Guarantor, to:

                             Hughes Space and Communications International, Inc.
                             Bldg. S10, Mail Station S350
                             Post Office Box 92919, Airport Station
                             Los Angeles, California 90009
                             Telephone: (310) 364-5729
                             Facsimile: (310) 364-7990
                             Attention: Dennis R. Beeson
                                        Manager, Contracts

<PAGE>   239

                                                       1 JULY 1996 - AMENDMENT 1
LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT                         EXHIBIT H
Contract No: ICOO/95-1003/YW                                    HUGHES GUARANTEE
--------------------------------------------------------------------------------

12.     Applicable law and jurisdiction.

        12.1    This Guarantee shall be governed by and construed in accordance
                with the laws of England.

        12.2    The provisions of ARTICLE 30 (Disputes and Arbitration) of the
                Contract shall apply mutatis mutandis to this Guarantee.

Dated _____ day of December, 1995

                            See Original for Signatures
                            ---------------------------
                            for and on behalf of
                            ICO GLOBAL COMMUNICATIONS
                            (OPERATIONS) LTD.

                            See Original for Signatures
                            ---------------------------
                            for and on behalf of
                            HUGHES ELECTRONICS
                            CORPORATION

<PAGE>   240
                                                       1 JULY 1996 - AMENDMENT 1

                                                                         4.7.2.9

                        CONTRACT NUMBER; ICOO/95-1003/YW

                           LAUNCH SERVICES SUPPLY AND
                               MANAGEMENT CONTRACT

                                    EXHIBIT I

                        TERMINATION LIABILITY CALCULATION

                                 7 DECEMBER 1995

<PAGE>   241

                                                       1 JULY 1996 - AMENDMENT 1
LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT                         EXHIBIT I
Contract No: ICOO/95-1003/YW                   TERMINATION LIABILITY CALCULATION
--------------------------------------------------------------------------------

TABLE OF CONTENTS

<TABLE>
<S>  <C>                                                             <C>
1    Termination Calculations .....................................   1

2    Termination Liabilities ......................................   3

2.1  Atlas IIAS Termination Liability .............................   3

     Delta-III Termination Liability ..............................   3

     Proton Termination Liability .................................   4

     Zenit Termination Liability ..................................   4

2.2  Effect of Atlas Launch Service Postponement ..................   4

2.3  Effect of Sea Launch Launch Service Postponement .............   5

2.4  Effect of Proton Launch Service Postponement .................   5

2.5  Effect of Delta-III Launch Service Postponement ..............   6

2.6  Delta-III Termination Liability Mitigation ...................   6

2.7  Alternate Launch Service Provider(s) .........................   7
</TABLE>

<PAGE>   242

                                                       1 JULY 1996 - AMENDMENT 1
LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT                         EXHIBIT I
Contract No: ICOO/95-1003/YW                   TERMINATION LIABILITY CALCULATION
--------------------------------------------------------------------------------

1       TERMINATION CALCULATIONS

        CALCULATION 1. If the Termination Liability in ARTICLE 17 of the
        Contract ("Termination Liability') is to be calculated in accordance
        with CALCULATION 1, then the Termination Liability of ICOGC to Hughes
        for each terminated Service shall equal the amount derived from the
        formula below:

                Launch Service Cost x the relevant Termination Liability
                Percentage defined herein.

        CALCULATION 2. If the Termination Liability in ARTICLE 17 of the
        Contract is to be calculated in accordance with CALCULATION 2, then the
        Termination Liability of ICOGC to Hughes for each terminated Launch
        Service shall equal the amount derived from the applicable formula
        below:

        1) For each Launch Service provided via a Longterm Launch Service
        Agreement:

                                        *

        * Confidential Treatment Requested and the Redacted Material has been
          separately filed with the Commission.

                                                                          Page 1
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                                                       1 JULY 1996 - AMENDMENT 1
LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT                         EXHIBIT I
Contract No: ICOO/95-1003/YW                   TERMINATION LIABILITY CALCULATION
--------------------------------------------------------------------------------

        2) For each Launch Service provided via a unique Launch Service
        Agreement:

                                        *

        * Confidential Treatment Requested and the Redacted Material has been
          separately filed with the Commission.

                                                                          Page 2
<PAGE>   244

                                                       1 JULY 1996 - AMENDMENT 1
LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT                         EXHIBIT I
Contract No: ICOO/95-1003/YW                   TERMINATION LIABILITY CALCULATION
--------------------------------------------------------------------------------

2.      TERMINATION LIABILITIES

2.1     Termination Liabilities for each terminated Launch Service provided via
        a Longterm Launch Services Agreement shall be as follows:

                        Atlas IIAS Termination Liability

                                        *

                        Delta-III Termination Liability

                                        *

        * Confidential Treatment Requested and the Redacted Material has been
          separately filed with the Commission.

                                                                          Page 3
<PAGE>   245

                                                       1 JULY 1996 - AMENDMENT 1
LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT                         EXHIBIT I
Contract No: ICOO/95-1003/YW                   TERMINATION LIABILITY CALCULATION
--------------------------------------------------------------------------------

                          Proton Termination Liability

                                        *

                           Zenit Termination Liability

                                        *

2.2     Effect of Atlas Launch Service Postponement. In the event that the Atlas
        Launch Service Provider declares a delay to the Launch Slot or Launch
        Period, the revised Launch Period as agreed between Hughes and the Atlas
        Launch Service Provider shall be used for the purpose of determining the
        appropriate percentage to utilize in calculating the applicable
        termination charge. In the event that Hughes or ICOGC declare

        * Confidential Treatment Requested and the Redacted Material has been
          separately filed with the Commission.

                                                                          Page 4
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                                                       1 JULY 1996 - AMENDMENT 1
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Contract No: ICOO/95-1003/YW                   TERMINATION LIABILITY CALCULATION
--------------------------------------------------------------------------------

        delay to the Launch Period or Launch Slot, the Launch Period or Launch
        Slot in effect prior to the declaration of delay shall be used for the
        purpose of determining the appropriate percentage to utilize in
        calculating the applicable to termination charge.

2.3     Effect of Sea Launch Launch Service Postponement. If Sea Launch declares
        or experiences a postponement for any Launch Service, the revised Launch
        Period, Launch Slot or Launch Date (as applicable) shall be used for the
        purpose of determining the appropriate percentage to utilize in
        calculating the Termination Liability for the postponed Launch
        Service(s). In the event that Hughes or ICOGC declares a delay to Zenit
        Launch Service, (i) the Termination Liability value for the postponed
        Launch Service, as of the date of postponement, shall be calculated
        utilizing the applicable table above and shall remain constant (i.e. not
        increase) during the applicable postponement period; and (ii) upon
        conclusion of the postponement period, a Termination liability for the
        postponed Launch Service shall again increase based upon the applicable
        Termination Liability table above and the revised Launch Period, Launch
        Slot or Launch Date (as applicable) as agreed between Hughes and the
        Zenit Launch Service Provider.

2.4     Effect of Proton Launch Service Postponement. If the Proton Launch
        Service Provider declares or experiences a postponement for any Launch
        Service, the revised Launch Period, Launch Slot or Launch Date (as
        applicable) shall be used for the purpose of determining the appropriate
        percentage to utilize in calculating the Termination Liability for the
        postponed Launch Service(s). In the event that Hughes or ICOGC declares
        a delay to a Proton Launch Service, i) the Termination Liability value
        for the postponed Launch Service, as of the date of postponement, shall
        be calculated utilizing the applicable table above and shall remain
        constant (i.e. not increase) during the applicable postponement period;
        and ii) upon conclusion of the postponement period, the Termination
        Liability for the postponed Launch Service shall again increase based
        upon the applicable Termination Liability table above and the revised
        Launch Period, Launch Slot or Launch Date (as applicable) as agreed
        between Hughes and the Proton Launch Service Provider.

                                                                          Page 5
<PAGE>   247

                                                       1 JULY 1996 - AMENDMENT 1
LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT                         EXHIBIT I
Contract No: ICOO/95-1003/YW                   TERMINATION LIABILITY CALCULATION
--------------------------------------------------------------------------------

2.5     Effect of Delta-III Launch Service Postponement. If the Delta-III Launch
        Service Provider declares or experiences a postponement for any Launch
        Service, the revised Launch Period, Launch Slot or Launch Date (as
        applicable) shall be used for the purpose of determining the appropriate
        percentage to utilize in calculating the Termination Liability for the
        postponed Launch Service(s). In the event that Hughes or ICOGC declares
        a delay to a Delta-III Launch Service prior to Launch minus 24 months,
        i) the Termination Liability value for the postponed Launch Service, as
        of the date of postponement shall be calculated utilizing the applicable
        table above and shall remain constant (i.e. not increase) during the
        applicable postponement period; and ii) upon conclusion of the
        postponement period, the Termination Liability for the postponed Launch
        Service shall again increase based upon the applicable Termination
        Liability table above and the revised Launch Semester as agreed between
        Hughes and the Delta-III Launch Service Provider. In a event that
        Hughes or ICOGC declare a delay to a Delta-III Launch Service after
        Launch minus 24 months, the Launch Period or Launch Slot in effect prior
        to the declaration of delay shall be used for the purpose of determining
        the appropriate percentage to utilize in calculating the applicable
        termination charge.

2.6     Delta-III Termination Liability Mitigation. If any Delta-III Launch
        Service is terminated by ICOGC for convenience, then ICOGC shall be
        entitled to receive an equitable adjustment to the Termination Liability
        amount if any Hardware (for the purposes of this Paragraph, Hardware is
        defined as the affected Launch Vehicle(s) or any portion thereof) is
        subsequently utilized for Launch Services for any third party customer
        of the Delta-III Launch Service Provider. Upon the transfer or
        utilization of any Hardware (as defined in EXHIBIT C) for a Launch
        Service for such third party customer, the Parties and the Delta-III
        Launch Service Provider shall negotiate in good faith to determine the
        amount of the applicable equitable adjustment. Such applicable equitable
        adjustment shall account for, via exclusion, the Launch Service
        Provider's reasonable costs, including but not limited to inventory
        carrying fees, unrecoverable costs, reasonable re-programming costs, and
        the Launch Service Provider's profit which would have been same had a
        Launch Service not been terminated, for each terminated

                                                                          Page 6
<PAGE>   248

                                                       1 JULY 1996 - AMENDMENT 1
LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT                         EXHIBIT I
Contract No: ICOO/95-1003/YW                   TERMINATION LIABILITY CALCULATION
--------------------------------------------------------------------------------

        Launch. Any equitable adjustment shall be payable by Launch Service
        Provider within thirty (30) days of the later of i) the completion of
        good faith negotiations between the Parties; or ii) the sale of the
        eleventh Delta III Launch Service by the Launch Service Provider, to any
        party, excluding any Launch terminated herein. Hughes shall forward to
        ICOGC any equitable adjustment value derived in accordance with the
        paragraph within five (5) Business Days of receipt of such amount from
        the Delta Launch Service Provider.

2.7     Alternate Launch Service Provide Provider(s). Termination Liability
        percentages/amounts for Launch Services not provided via a Longterm
        Launch Service Agreement shall be incorporated into this EXHIBIT I upon
        the execution of a Launch Service Agreement between Hughes and the
        relevant Launch Service Provider (such agreement must be approved by
        ICOGC prior to execution).

                                                                          Page 7
<PAGE>   249

                                                      16 JUNE 1997 - AMENDMENT 2
LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT      CONTRACT NO: ICOO/95-1003/YW
--------------------------------------------------------------------------------

                        CONTRACT NUMBER: ICOO/95-1003/YW
                                  AMENDMENT 2

                           LAUNCH SERVICES SUPPLY AND
                              MANAGEMENT CONTRACT

                                    BETWEEN

                     ICO GLOBAL COMMUNICATIONS (OPERATIONS)
                                    LIMITED

                        HUGHES SPACE AND COMMUNICATIONS
                              INTERNATIONAL, INC.

                                7 DECEMBER 1995

<PAGE>   250

                                                      16 JUNE 1997 - AMENDMENT 2
LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT      CONTRACT NO. ICOO/95-1003/YW
--------------------------------------------------------------------------------

        point in time during the launch countdown when initiation of the gas
        generator ignitors firing command and firing of any of the gas generator
        ignitors occurs.

O       "Launch" means;

        for Atlas Launch Services, the Intentional Ignition of the first stage
        engines of the Launch Vehicle carrying the Satellite followed by either
        release of the Launch Vehicle from the launcher holddown restraints or
        Satellite and Launch Vehicle damage or destruction sufficient so that
        both the Satellite and the Launch Vehicle are declared total losses; or

        for Delta-III Launch Services, the Intentional Ignition of the first
        stage solid rocket motors of the Delta III Launch Vehicle; or

        for Proton Launch Services, the Intentional Ignition of the first stage
        engines of a Launch Vehicle carrying a Satellite, followed by physical
        separation of the Launch Vehicle from the ground support equipment,
        unless such event constitutes a Terminated Ignition (as such term is
        defined in EXHIBIT D); or

        for Zenit Launch Services, the point in time when an electronic signal
        is sent to command the opening of any first stage propellant valves. A
        launch is deemed to have occurred even if there is a Total Failure,
        Total Constructive Failure or Partial Failure of the Launch Vehicle (as
        such terms are defined in EXHIBIT E);

P       "Launch Date" means the single Day on which the relevant Launch
        Service(s) shall be performed by the Launch Service Provider.

Q       "Launch Period" means the three (3) Month period in which the relevant
        Launch Service shall be performed by the Launch Service Provider. In the
        case of Atlas Launch Services, the Launch Period shall be a four (4)
        Month period.

R       "Launch Revision Fees" means any amount payable by Hughes to a Launch
        Service Provider as a consequence of the implementation, for any reason,
        in accordance with
--------------------------------------------------------------------------------
                                                                          Page 4

<PAGE>   251
                                                      16 JUNE 1997 - AMENDMENT 2
LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT      CONTRACT NO: ICOO/95-1003/YW
--------------------------------------------------------------------------------

ARTICLE 3   LAUNCH SCHEDULING

3.1  Launch Manifest. In accordance with the provisions of this Contract,
     Hughes shall utilize the Launch Service Provider(s) and Launch Dates
     specified in Table 1 below in establishing the baseline Launch Services
     manifest (set out as Table 1 below) on behalf of ICOGC:

                   TABLE 1: BASELINE LAUNCH SERVICES MANIFEST
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------
LAUNCH   LAUNCH SERVICE PROVIDER(1)      LAUNCH         LTA(2)         LAUNCH                        TARGET
                                        VEHICLE       LAUNCH #         PERIOD                        LAUNCH
                                                                                                     DATE(S)
---------------------------------------------------------------------------------------------------------------
<S>      <C>                            <C>            <C>           <C>                          <C>
 1       Lockheed Martin                 Atlas-IIAS                                 *
         Commercial Launch Services
---------------------------------------------------------------------------------------------------------------
 2       Lockheed-Krunichev-Energia      Proton                                     *
         International
---------------------------------------------------------------------------------------------------------------
 3       Lockheed-Krunichev-Energia      Proton                                     *
         International
---------------------------------------------------------------------------------------------------------------
 4       McDonnell Douglas Corporation   Delta-III                                  *
---------------------------------------------------------------------------------------------------------------
 5       McDonnell Douglas Corporation   Delta-III                                  *
---------------------------------------------------------------------------------------------------------------
 6       Sea Launch Limited Partnership  Zenit                                      *
---------------------------------------------------------------------------------------------------------------
 7       McDonnell Douglas Corporation    Delta-III                                 *
---------------------------------------------------------------------------------------------------------------
 8       Sea Launch Limited Partnership  Zenit                                      *
---------------------------------------------------------------------------------------------------------------
 9       Lockheed-Krunichev-Energia      Proton                                     *
         International
---------------------------------------------------------------------------------------------------------------
10       McDonnell Douglas Corporation   Delta-III                                  *
---------------------------------------------------------------------------------------------------------------
11       Sea Launch Limited Partnership  Zenit                                      *
---------------------------------------------------------------------------------------------------------------
12       McDonnell Douglas Corporation    Delta-III                                 *
---------------------------------------------------------------------------------------------------------------
</TABLE>

1:   Indicated Launch Services are provided through a Longterm Launch Service
     Agreement between Hughes and the relevant Launch Service Provider(s).

2:   The referenced Launch Number ("Launch #") indicates what type of Launch
     Service (i.e. Firm or Option) and which Launch Service or Launch Semester
     (i.e. Number 5 of 10 purchased by Hughes) shall be provided by Hughes to
     I-COGC.

     The procedures between Hughes and the Launch Service Providers for
determining a Launch Period, Slot or Day are as set out in Exhibits B through E
as applicable (or as

     * Confidential Treatment Requested and the Redacted Material has been
       separately filed with the Commission.

--------------------------------------------------------------------------------
                                                                        Page 9

<PAGE>   252
                                                     16 JUNE 1997 - AMENDMENT 2
LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT     CONTRACT NO: ICOO/95-1003/YW
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Date                            Revised Letter of Credit Amount
----                            -------------------------------
<S>                             <C>

                                        *

</TABLE>

ICOGC shall notify Hughes within five (5) Days of any recommended adjustments to
the amount of the Letter of Credit.

In the event ICOGC has not made a payment for a milestone within fifteen (15)
Days after the receipt of Hughes' invoice and milestone completion certification
when pursuant to ARTICLE 4.5 it was obligated to do so, the irrevocable Letter
of Credit shall allow Hughes to immediately draw down an amount which Hughes
certifies as the outstanding amount payable for that milestone.

ICOGC will be responsible for all bank charges, expenses, and commissions
relating to the irrevocable Letter of Credit required to be issued hereunder on
Hughes' behalf save as may be incurred as a result of a delay in the last
milestone payment beyond 01 January 2001 caused by a late Delivery by Hughes of
the relevant Satellite or the associated deliverables beyond their respective
Delivery Dates (where that delay

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

<PAGE>   253

                                                      16 JUNE 1997 - AMENDMENT 2

                        CONTRACT NUMBER: ICOO/95-1003/YW

                           LAUNCH SERVICES SUPPLY AND
                               MANAGEMENT CONTRACT
                        --------------------------------
                                    Exhibit F

                             Milestone Payment Plan
                        --------------------------------
                                 7 December 1995
<PAGE>   254

Exhibit F, Milestone Payment Plan (US$)               16 June 1997 - Amendment 2

                        Contract Number ICOO/95-1003/YW

                                        *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

                                                                          Page 1
<PAGE>   255
Exhibit F, Milestone Payment Plan (US$)               16 June 1997 - Amendment 2

                        Contract Number ICOO/95-1003/YW

                                        *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

                                                                          Page 2
<PAGE>   256

Exhibit F, Milestone Payment Plan (US$)               16 June 1997 - Amendment 2

                        Contract Number ICOO/95-1003/YW

                                        *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

                                                                          Page 3
<PAGE>   257
Exhibit F, Milestone Payment Plan (US$)               16 June 1997 - Amendment 2

                        Contract Number ICOO/95-1003/YW

                                        *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

                                                                          Page 4
<PAGE>   258
Exhibit F, Milestone Payment Plan (US$)               16 June 1997 - Amendment 2

                        Contract Number ICOO/95-1003/YW

                                        *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

                                                                          Page 5

<PAGE>   259
Exhibit F, Milestone Payment Plan (US$)               16 June 1997 - Amendment 2

                        Contract Number ICOO/95-1003/YW

                                        *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

                                                                          Page 6
<PAGE>   260
Exhibit F, Milestone Payment Plan (US$)               16 June 1997 - Amendment 2

                        Contract Number ICOO/95-1003/YW

                                        *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

                                                                          Page 7
<PAGE>   261

                                                                         4.7.1.3

                               AMENDMENT NUMBER 2

                                     TO THE

                           LAUNCH SERVICES SUPPLY AND

                               MANAGEMENT CONTRACT

                                     BETWEEN

                     ICO GLOBAL COMMUNICATIONS (OPERATIONS)

                                     LIMITED

                                       &

                         HUGHES SPACE AND COMMUNICATIONS

                                  16 JUNE 1997

                        Contract Number: ICOO/95-1003/YW

This document is to be protected from the risks of unauthorized disclosure,
loss, misappropriation and alteration. Although not marked "Hughes Proprietary"
because of contractual reasons, it should not be disclosed to any individual(s)
unless the recipient meets the "need to know" criteria. This document should be
handled exactly like any other "Hughes Proprietary" document.

<PAGE>   262

                                                                     AMENDMENT 2
LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT      Contract No. ICOO/95-1003/YW
--------------------------------------------------------------------------------

                               AMENDMENT NUMBER 2

        LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT (ICOO/95-1003/YW)

                                     BETWEEN

                 ICO GLOBAL COMMUNICATIONS (OPERATIONS) LIMITED

                                       AND

              HUGHES SPACE AND COMMUNICATIONS INTERNATIONAL, INC.

This Amendment Number 2 to the Launch Services Supply and Management Contract
ICOO/95-1003/YW dated and signed on 7 December 1995 (hereinafter referred to as
"the Contract") is made on this 7th day of July 1997 by and between

ICO GLOBAL COMMUNICATIONS (OPERATIONS) LIMITED, a company incorporated in the
Cayman Islands as an Exempted Company having its registered office at the
Huntlaw Building, PO Box 1350, Fort Street, Georgetown, Grand Cayman, Cayman
Islands (hereinafter referred to as "ICOGC"); and

HUGHES SPACE AND COMMUNICATIONS INTERNATIONAL, INC., a company incorporated
under the laws of the State of Delaware, USA, with a place of business in El
Segundo, California USA, (hereinafter referred to as "Hughes").

WHEREAS: ICOGC and Hughes have previously entered into the Contract for
provision of Launch Services and Management Services, and

<PAGE>   263

                                                                     AMENDMENT 2
LAUNCH SERVICES SUPPLY AND  MANAGEMENT CONTRACT     Contract No. ICOO/95-1003/YW
--------------------------------------------------------------------------------

WHEREAS: ICOGC and Hughes have previously incorporated Amendment Number 1 to the
Contract on 5 July 1996, and

WHEREAS: ICOGC and Hughes have reached agreement to modify certain Contract
Articles and Contract Exhibits,

NOW THEREFORE, in consideration of the agreement between the Parties, the
Parties agree that the Contract is amended as follows below:

        1.      Revise the Contract Articles by:

                a.      Revising the Definition for "Launch Period" (Definition
                        Q).

                b.      Revising Table 1 on page 9.

                c.      Revising Article 4.10 on page 29.

        2.      Delete the EXHIBIT F, MILESTONE PAYMENT PLAN, dated 1 July 1996
                and replace it with the revised EXHIBIT F, MILESTONE PAYMENT
                PLAN, dated 16 June 1997.

The revised pages of the Contract Articles and the revised EXHIBIT F are
attached and made a part hereof. For clarity and continuity, the revised pages
of the Contract Articles and all pages of the revised exhibit F have been marked
"Amendment 2" and "16 June 1997' in the upper right hand corner.

This Amendment Number 2 results in no change to the Contract price.

<PAGE>   264
                                                                     AMENDMENT 2
LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT      Contract No. ICOO/95-1003/YW
--------------------------------------------------------------------------------

Save as provided for in this Amendment Number 2, the Contract, including all
Exhibits thereto, shall otherwise remain unchanged.

IN WITNESS WHEREOF, this Amendment Number 2 has been duly executed by the
Parties on the date stated above.

HUGHES SPACE AND COMMUNICATIONS INTERNATIONAL, INC.

By:             /s/ H.E. McDONNELL
       -----------------------------------------
                     (signed)

                  H.E. McDonnell
       -----------------------------------------
                    (printed)

Title:      Vice President, Commercial
       -----------------------------------------

ICO GLOBAL COMMUNICATIONS (OPERATIONS) LIMITED

By:             /s/ OLOF LUNDBERG
       -----------------------------------------
                     (signed)

                  OLOF LUNDBERG
       -----------------------------------------
                    (printed)

Title:                 CEO
       -----------------------------------------

<PAGE>   265

                                                      16 JUNE 1997 - AMENDMENT 2
LAUNCH SERVICES SUPPLY AND  MANAGEMENT CONTRACT     Contract No. ICOO/95-1003/YW
--------------------------------------------------------------------------------

                        Contract Number: ICOO/95-1003/YW

                                   AMENDMENT 2

                           LAUNCH SERVICES SUPPLY AND

                              MANAGEMENT CONTRACT

                                    BETWEEN
                     ICO GLOBAL COMMUNICATIONS (OPERATIONS)
                                    LIMITED
                                       &
                        HUGHES SPACE AND COMMUNICATIONS
                              INTERNATIONAL, INC.

                                7 DECEMBER 1995

THIS DOCUMENT IS TO BE PROTECTED FROM THE RISKS OF UNAUTHORIZED DISCLOSURE,
LOSS, MISAPPROPRIATION AND ALTERATION. ALTHOUGH NOT MARKED "HUGHES PROPRIETARY"
BECAUSE OF CONTRACTUAL REASONS, IT SHOULD NOT BE DISCLOSED TO ANY INDIVIDUAL(S)
UNLESS THE RECIPIENT MEETS THE "NEED TO KNOW" CRITERIA. THIS DOCUMENT SHOULD BE
HANDLED EXACTLY LIKE ANY OTHER "HUGHES PROPRIETARY" DOCUMENT.

<PAGE>   266

                                                      16 JUNE 1997 - AMENDMENT 2
LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT                   ICOO/95-1003/YW
--------------------------------------------------------------------------------

        point in time during the launch countdown when initiation of the gas
        generator ignitors firing command and firing of any of the gas generator
        ignitors occurs.

O       "Launch" means;

        for Atlas Launch Services, the Intentional Ignition of the first stage
        engines of the Launch Vehicle carrying the Satellite followed by either
        release of the Launch Vehicle from the launcher holddown restraints or
        Satellite and Launch Vehicle damage or destruction sufficient so that
        both the Satellite and the Launch Vehicle are declared total losses; or

        for Delta-III Launch Services, the Intentional Ignition of the first
        stage solid rocket motors of the Delta III Launch Vehicle; or

        for Proton Launch Services, the Intentional Ignition of the first stage
        engines of a Launch Vehicle carrying a Satellite, followed by physical
        separation of the Launch Vehicle from the ground support equipment,
        unless such event constitutes a Terminated Ignition (as such term is
        defined in EXHIBIT D); or

        for Zenit Launch Services, the point in time when an electronic signal
        is sent to command the opening of any first stage propellant valves. A
        launch is deemed to have occurred even if there is a Total Failure,
        Total Constructive Failure or Partial Failure of the Launch Vehicle (as
        such terms are defined in EXHIBIT E);

P       "Launch date" means the single day on which the relevant Launch
        Service(s) shall be performed by the Launch Service Provider.

Q       "Launch Period" means the three (3) Month period in which the relevant
        Launch Service shall be performed by the Launch Service Provider. In
        the case of Atlas Launch Services, the Launch Period shall be a four (4)
        Month period.

R       "Launch Revision Fees" means any amount payable by Hughes to a Launch
        Service Provider as a consequence of the implementation, for any reason
        accordance with

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

<PAGE>   267
                                                      16 June 1997 - Amendment 2
Launch Services and Supply and Management Contract  Contract No: ICOO/95-1003/YW
--------------------------------------------------------------------------------

ARTICLE 3      LAUNCH SCHEDULING

3.1       Launch Manifest. In accordance with the provisions of this Contract,
          Hughes shall utilize the Launch Service Provider(s) and Launch Dates
          specified in Table 1 below in establishing the baseline Launch
          Services manifest (set out as Table 1 below) on behalf of ICOGC:

                   TABLE 1: BASELINE LAUNCH SERVICES MANIFEST
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
LAUNCH         LAUNCH SERVICE PROVIDER(1)         LAUNCH         LTA(2)              LAUNCH                   TARGET
                                                  VEHICLE       LAUNCH #             PERIOD                   LAUNCH
                                                                                                              DATE(S)
------------------------------------------------------------------------------------------------------------------------------------
<S>           <C>                               <C>             <C>            <C>                          <C>
  1               Lockheed Martin               Atlas-IIAS                                  *
              Commercial Launch Services
------------------------------------------------------------------------------------------------------------------------------------
  2           Lockheed-Krunichev-Energia         Proton                                     *
                   International
------------------------------------------------------------------------------------------------------------------------------------
  3           Lockheed-Krunichev-Energia         Proton                                     *
                   International
------------------------------------------------------------------------------------------------------------------------------------
  4          McDonnell Douglas Corporation       Delta-III                                  *

------------------------------------------------------------------------------------------------------------------------------------
  5          McDonnell Douglas Corporation       Delta-III                                  *

------------------------------------------------------------------------------------------------------------------------------------
  6          Sea Launch Limited Partnership       Zenit                                     *

------------------------------------------------------------------------------------------------------------------------------------
  7          McDonnell Douglas Corporation       Delta-III                                  *

------------------------------------------------------------------------------------------------------------------------------------
  8          Sea Launch Limited Partnership       Zenit                                     *

------------------------------------------------------------------------------------------------------------------------------------
  9          Lockheed-Krunichev-Energia           Proton                                    *
                   International
------------------------------------------------------------------------------------------------------------------------------------
 10         McDonnell Douglas Corporation        Delta-III                                  *

------------------------------------------------------------------------------------------------------------------------------------
 11         Sea Launch Limited Partnership        Zenit                                     *

------------------------------------------------------------------------------------------------------------------------------------
 12         McDonnell Douglas Corporation        Delta-III                                  *

------------------------------------------------------------------------------------------------------------------------------------
1: Indicated Launch Services are provided through a Longterm Launch Service Agreement between Hughes and the relevant
   Launch Service Provider(s)
2: The referenced Launch Number ("Launch #") indicates what type of Launch Service (i.e. Firm or Option) and which Launch
   Service or Launch Semester (i.e. Number 5 of 10 purchased by Hughes) shall be provided by Hughes to I-COGC.
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

       The procedure between Hughes and the Launch Service Providers for
     determining a Launch Period, Slot or Day are as set out in Exhibits B
                         through E as applicable (or as

     * Confidential Treatment Requested and the Redacted Material has been
       separately filed with the Commission.

--------------------------------------------------------------------------------
                                                                          Page 9

<PAGE>   268

                                                 16 JUNE 1997-AMENDMENT NUMBER 2
LAUNCH SERVICES SUPPLY AND  MANAGEMENT CONTRACT     Contract No. ICOO/95-1003/YW
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Date                            Revised Letter of Credit Amount
----                            -------------------------------
<S>                             <C>

                                        *

</TABLE>

ICOGC shall notify Hughes within five (5) Days of any recommended adjustments to
the amount of the Letter of Credit.

In the event ICOGC has not made a payment for a milestone within fifteen (15)
Days after the receipt of Hughes' invoice and milestone completion certification
when pursuant to ARTICLE 4.5 was obligated to do so, the irrevocable letter of
Credit shall allow Hughes to immediately draw down an amount which Hughes
certifies as the outstanding amount payable for that milestone.

ICOGC will be responsible for all bank charges, expenses,and commissions
relating to the irrevocable Letter of Credit required to be issued hereunder on
Hughes' behalf save as may be incurred as a result of a delay in the last
milestone payment beyond 01 January 2001 caused by a late Delivery by Hughes of
the relevant satellite or the associated deliverables beyond their respective
Delivery Dates (where that delay

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

                                                                         Page 29
<PAGE>   269

                                                      16 JUNE 1997 - AMENDMENT 2

                           LAUNCH SERVICES SUPPLY AND
                               MANAGEMENT CONTRACT

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

                                    EXHIBIT F

                             MILESTONE PAYMENT PLAN

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

                                 7 DECEMBER 1995

THIS DOCUMENT IS TO BE PROTECTED FROM THE RISKS OF UNAUTHORIZED DISCLOSURE,
LOSS, MISAPPROPRIATION AND ALTERATION. ALTHOUGH NOT MARKED "HUGHES PROPRIETARY"
BECAUSE OF CONTRACTUAL REASONS, IT SHOULD NOT BE DISCLOSED TO ANY INDIVIDUAL(S)
UNLESS THE RECIPIENT MEETS THE "NEED TO KNOW" CRITERIA. THIS DOCUMENT SHOULD BE
HANDLED EXACTLY LIKE ANY OTHER "HUGHES PROPRIETARY" DOCUMENT.

<PAGE>   270
            * [EXHIBIT F AMENDMENT 2 PAGES 1 - 7 HAVE BEEN REDACTED]

            * Confidential Treatment Requested and the Redacted Material has
              been separately filed with the Commission.

<PAGE>   271
                                        *
<PAGE>   272
                                        *
<PAGE>   273
                                        *
<PAGE>   274
                                        *
<PAGE>   275
                                        *
<PAGE>   276
                                        *
<PAGE>   277
                                                                         4.7.1.4

                                                       22 May 1998 - Amendment 3
Launch Services Supply and Management Contract      Contract No: ICOO/95-1003/YW
--------------------------------------------------------------------------------

                        Contract Number: ICOO/95-1003/YW

                                   Amendment 3

                           LAUNCH SERVICES SUPPLY AND
                               MANAGEMENT CONTRACT

                                     BETWEEN

                     ICO GLOBAL COMMUNICATIONS (OPERATIONS)
                                     LIMITED

                                       &

                         HUGHES SPACE AND COMMUNICATIONS
                               INTERNATIONAL, INC.

                                 7 December 1995

<PAGE>   278
                                                                     Amendment 3
Launch Services Supply and Management Contract      Contract No: ICOO/95-1003/YW
--------------------------------------------------------------------------------

                               AMENDMENT NUMBER 3

        LAUNCH SERVICES SUPPLY AND MANAGEMENT CONTRACT (ICOO/95-1003/YW)

                                     BETWEEN

                 ICO GLOBAL COMMUNICATIONS (OPERATIONS) LIMITED

                                      AND

              HUGHES SPACE AND COMMUNICATIONS INTERNATIONAL, INC.

This Amendment Number 3 to the Launch Services Supply and Management Contract
ICOO/95-1003/YW dated and signed on 7 December 1995 (hereinafter referred to as
"the Contract") is made on this 7 day of August 1998 by and between

ICO GLOBAL COMMUNICATIONS (OPERATIONS) LIMITED, a company incorporated in the
Cayman Islands as an Exempted Company having its registered office at the
Huntlaw Building, PO Box 1350, Fort Street, Georgetown, Grand Cayman, Cayman
Islands (hereinafter referred to as "ICOGC"); and

HUGHES SPACE AND COMMUNICATIONS INTERNATIONAL, INC., a company incorporated
under the laws of the State of Delaware, USA, with a place of business in El
Segundo, California USA, (hereinafter referred to as "Hughes").

WHEREAS: ICOGC and Hughes have previously entered into the Contract for
provision of Launch Services and Management Services, and

                                     Page 1

<PAGE>   279
                                                                     Amendment 3
Launch Services Supply and Management Contract      Contract No: ICOO/95-1003/YW
--------------------------------------------------------------------------------

WHEREAS: ICOGC and Hughes have previously incorporated Amendment Number 1 to the
Contract on 5 July 1996 and Amendment Number 2 to the Contract on 7 July 1997,
and

WHEREAS: ICOGC and Hughes have reached agreement to modify certain Contract
Articles and Contract Exhibits,

NOW THEREFORE, in consideration of the agreement between the Parties, the
Parties agree that the Contract is amended as follows below:

        1.      Revise the Contract Articles by:

                a.      Deleting Article 4.10.

        2.      Delete the EXHIBIT F, MILESTONE PAYMENT PLAN, dated 16 June 1997
                and replace it with the revised EXHIBIT F, MILESTONE PAYMENT
                PLAN, dated 22 May 1998.

The revised pages of the Contract Articles and the revised EXHIBIT F are
attached and made a part hereof. For clarity and continuity, the revised pages
of the Contract Articles and all pages of the revised Exhibit F have been marked
"Amendment 3" and "22 May 1998" in the upper right hand corner.

This Amendment Number 3 results in no change to the Contract price.

Save as provided for in this Amendment Number 3, the Contract, including all
Exhibits thereto, shall otherwise remain unchanged and constitute the complete
and exclusive statement of the terms of the agreement between I-COGC and Hughes
and supersede all prior agreements, representations, understandings, and
communications relating thereto.

                                     Page 2

<PAGE>   280
                                                                     Amendment 3
Launch Services Supply and Management Contract      Contract No: ICOO/95-1003/YW
--------------------------------------------------------------------------------

IN WITNESS WHEREOF, this Amendment Number 3 has been duly executed by the
Parties on the date stated above.

HUGHES AND COMMUNICATIONS INTERNATIONAL, INC.

By:             /s/ D.L. CROMER
          -------------------------------
                   (signed)

                 D.L. Cromer
          -------------------------------
                   (printed)

Title:             CHAIRMAN
          -------------------------------

ICO GLOBAL COMMUNICATIONS (OPERATIONS) LIMITED

By:            /s/ O. LUNDBERG
          -------------------------------
                   (signed)

                  O. Lundberg
          -------------------------------
                   (printed)

Title:               C.E.O.
          -------------------------------

                                     Page 3

<PAGE>   281
                                                       22 May 1998 - Amendment 3
Launch Services Supply and Management Contract      Contract No: ICOO/95-1003/YW
--------------------------------------------------------------------------------

4.6     Payment Postponements. If any postponement of a Launch Service results
        in the postponement or delay of any payment(s) under a Launch Service
        Agreement for the postponed Launch Service, the payment schedule
        specified in EXHIBIT F, MILESTONE PAYMENT PLAN, shall be revised to
        reflect such delayed payment(s).

4.7     Payment Dispute. No dispute with respect to the payment of any amount
        under this Contract shall relieve the disputing Party of its obligation
        to pay all other amounts due and owing under this Contract. All disputed
        amounts, unless otherwise specified in the Contract, shall be paid into
        an interest-bearing escrow account at Bank of America, Concord,
        California, Account No. (to be established later), within fifteen (15)
        Days after receipt of invoice. After the dispute is settled, the Party
        entitled to the amount or part thereof in escrow shall receive such
        amount together with all interest thereon and the costs and fees
        associated with such escrow account shall be paid by each Party in
        inverse proportion to the amounts received by each Party.

4.8     Telegraphic Transfer. Amounts payable hereunder are to be remitted by
        telegraphic transfer to a bank to be advised in writing by Hughes or
        I-COGC, as the case may be.

4.9     Guarantee. Within 15 pays of EDC, both Parties shall provide a parent
        company guarantee of their obligations substantially in the form set
        forth in EXHIBIT H, HUGHES GUARANTEE, and EXHIBIT G, I-COGC GUARANTEE.

                                    Page 28

<PAGE>   282
                                                       22 May 1998 - Amendment 3
Launch Services Supply and Management Contract      Contract No: ICOO/95-1003/YW
--------------------------------------------------------------------------------

                                    Page 29

<PAGE>   283
                                                       22 May 1998 - Amendment 3
Launch Services Supply and Management Contract      Contract No: ICOO/95-1003/YW
--------------------------------------------------------------------------------

                                    Page 30

<PAGE>   284
                                                                         4.7.1.5

                                                       22 May 1998 - Amendment 3

                          Contract No: ICOO/95-1003/YW

                           LAUNCH SERVICES SUPPLY AND
                               MANAGEMENT CONTRACT

                                    Exhibit F

                             Milestone Payment Plan

                                 7 December 1995
<PAGE>   285
Exhibit F, Milestone Payment Plan (US$)                22 May 1998 - Amendment 3

                        Contract Number ICOO/95-1003/YW

                                        *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

                                                                          Page 1
<PAGE>   286
Exhibit F, Milestone Payment Plan (US$)                22 May 1998 - Amendment 3

                        Contract Number ICOO/95-1003/YW

                                       *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

                                                                          Page 2
<PAGE>   287
Exhibit F, Milestone Payment Plan (US$)                22 May 1998 - Amendment 3

                        Contract Number ICOO/95-1003/YW

                                       *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

                                                                          Page 3
<PAGE>   288
Exhibit F, Milestone Payment Plan (US$)                22 May 1998 - Amendment 3

                        Contract Number ICOO/95-1003/YW

                                        *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

                                                                          Page 4
<PAGE>   289
Exhibit F, Milestone Payment Plan (US$)                22 May 1998 - Amendment 3

                        Contract Number ICOO/95-1003/YW

                                        *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

                                                                          Page 5
<PAGE>   290
Exhibit F, Milestone Payment Plan (US$)                22 May 1998 - Amendment 3

                        Contract Number ICOO/95-1003/YW

                                        *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

                                                                          Page 6
<PAGE>   291
Exhibit F, Milestone Payment Plan (US$)                22 May 1998 - Amendment 3

                        Contract Number ICOO/95-1003/YW

                                        *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

                                                                          Page 7<PAGE>   1
                                 MARCH 3rd 1997

                                SUPPLY AGREEMENT

                                     BETWEEN

                                 NEC CORPORATION

                                       and

                     ICO GLOBAL COMMUNICATIONS (OPERATIONS)
                                     LIMITED

                                                                      COPY NO 41
<PAGE>   2
                        CONTRACT NUMBER: ICO0 97-1016/GW

                                  MARCH    1997

                                SUPPLY AGREEMENT

                                     BETWEEN

                                 NEC CORPORATION
                                       and
                 ICO GLOBAL COMMUNICATIONS (OPERATIONS) LIMITED
<PAGE>   3
                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
CLAUSE                                                                      PAGE

<S>     <C>                                                                 <C>
 A      INTERPRETATION                                                         5
 1      Definitions and Interpretation                                         5
 2      Scope of Agreement                                                     6
 3      Precedence and Interpretation                                          6

 B      PRIMARY OBLIGATIONS                                                    6
 4      Primary Obligations Of The Contractor And Warranties                   6
 5      Contractor to Inform Itself Fully                                      9
 6      Standard of the Works                                                 10
 7      Uniform Standards                                                     10
 8      Unilateral Changes                                                    11
 9      Change Control                                                        12
10      [Not used]                                                            13
11      Contractor's Ability to Appoint and Liability for Sub-Contractors     13
12      ICO Obligations                                                       14
13      Quality Assurance                                                     15
14      ICONET Integration                                                    16

 C      PRICE AND PAYMENT                                                     21
15      Price                                                                 21
16      Payment and Payment Terms                                             23
17      Payment of Reimbursable Costs                                         27
18      Liquidated Damages and Incentive Payment                              27

 D      PROGRESS REPORTING                                                    28
19      Milestones and Progress Reporting                                     28
20      [Not used]                                                            29
21      [Not used]                                                            29
22      Progress Inspection                                                   29
23      Intermediate Progress Review                                          29
24      [Not used]                                                            30

 E      DELIVERY AND INSTALLATION                                             30
25      Site Access                                                           30
26      Transportation to Site                                                30
27      Packaging                                                             31
28      Customs Clearance                                                     31
29      Insurance                                                             33
30      Ownership                                                             33
31      Delivery                                                              34
32      Installation                                                          34
33      Testing                                                               35
34      RFT Handover                                                          35
</TABLE>
<PAGE>   4
<TABLE>
<CAPTION>
<S>        <C>                                                               <C>
35         Acceptance                                                         37
36         Risk                                                               37
37         Interchangeability                                                 37
38         Delivery Delays                                                    38
39         [Not used]                                                         38
40         Warranty                                                           38

 F         INTELLECTUAL PROPERTY RIGHTS                                       44
41         Intellectual Property Rights and Confidentiality                   44
42         [Not used]                                                         49
43         [Not used]                                                         49

 G         CONTINUOUS SUPPORT AND OPTIONS                                     50
44         Manuals and Technical Diagrams                                     50
45         Training                                                           50
46         Options, Support Services and Future Supplies                      50
47         Consumable Supplies                                                52
48         Attachments to Equipment and Software                              52
49         [Not used]                                                         53

 H         GENERAL                                                            53
50         Survival of Certain Provisions                                     53
51         Contractor's Liability for Damages or Breach                       53
52         ICO's Liability for Damages or Breach                              54
53         Ethical Standards                                                  55
54         Consequences of Termination                                        55
55         Force Majeure                                                      60
56         Termination                                                        60
57         Waiver                                                             62
58         Amendments                                                         62
59         Communication and Notices                                          62
60         Publicity                                                          65
61         Information Recording                                              65
62         Law and Jurisdiction                                               65
63         Change of Law                                                      65
64         Export Control Regulation                                          66
65         Disputes Resolution Procedure                                      66
66         Agent for Service                                                  67
67         Supervising Officer and
           Contractors Authorised Representative                              67
68         No Partnership                                                     67
69         Successors                                                         67
70         Assignment                                                         67
71         Language                                                           68
72         Entire Agreement                                                   68
73         Severability                                                       68
74         Costs                                                              68
75         Counterparts                                                       68
</TABLE>
<PAGE>   5
<TABLE>
<CAPTION>
SCHEDULES
<S>       <C>                                                                <C>
 1        Definitions                                                         70
 2        Precedence of Documents                                             76
 3        Dispute Resolution Procedure                                        77
 4        Agreed Form Invoices
 5        [Not used]
 6        Key Features
 7        Top Level Milestones
 8        Identification of Sites Not Inspected by the Contractor
 9        Pricing Schedule
10        Vendor Financing Summary
11        Payment Schedule
12        Final Acceptance Certificate
13        IGFR
14        Statement of Work
</TABLE>
<PAGE>   6
THIS SUPPLY AGREEMENT is made on March 3rd 1997

BETWEEN

1.   ICO GLOBAL COMMUNICATIONS (OPERATIONS) LIMITED, incorporated in the Cayman
     Islands with its registered office at PO Box 1350, Huntlaw Building, Fort
     Street, George Town, Grand Cayman ("ICO"); and

2.   NEC CORPORATION, incorporated in Japan, with its head office at 7-1, Shiba
     5-Chome, Minato-ku, Tokyo 108-01, Japan (the "Contractor').

WHEREAS

1.   ICO is establishing a global mobile satellite telecommunications network
     and wishes to appoint the Contractor, working with the other members of the
     NEC Team, to provide the systems and services for use in the ICONET Ground
     Facilities which, when operating in conjunction with the other properly
     functioning parts of the ICO System, will support (in the absence of the
     Excluded Circumstances) the full range of end to end services to the extent
     set out in this Agreement.

2.   The Contractor is the leader of a team comprising itself, Hughes Network
     Systems, Inc. and Ericsson Limited which is willing to commit the resources
     required to perform successfully the tasks set out in this Agreement and,
     if so required by ICO and on terms to be agreed between the parties, has
     confirmed its willingness to assist ICO in solving problems with elements
     of the ICO System other than the ICONET Ground Facilities by making
     modifications to the ICONET Ground Facilities so as to enable ICO to
     realise the desired functionality of a fully functioning ICO System.

3.   The Contractor (as leader of the NEC Team) and ICO entered into an Initial
     Phase Contract on 5 July 1996 (the "IPC"). The NEC Team have delivered to
     ICO certain of the materials required under Annex 8 of the IPC.

4.   The parties are entering into this Agreement under which the Contractor
     will be responsible, inter alia, for the design, manufacture, construction,
     delivery, installation, integration and testing of the ICONET Ground
     Facilities together with the demonstration of the functioning of the ICO
     System as a whole, all as set out in this Agreement.

5.   This Agreement also contains options for ICO to request the manufacture,
     construction, delivery, installation, integration and testing of additional
     equipment, facilities and software together with such additional services
     as will enable ICO to update, expand and enhance the ICONET Ground
     Facilities, all at additional cost to ICO on a price basis which has been
     established.

6.   ICO Global Communications (Holdings) Limited has agreed by separate letter
     to support the financial obligations of ICO under this Agreement.

NOW IT IS AGREED AS FOLLOWS:

PART A - INTERPRETATION

1 DEFINITIONS AND INTERPRETATION

1.1 The words and expressions set out in Schedule 1 shall, when used in this
Agreement including its schedules, annexes and attachments, unless the contrary
intention appears, have the meanings set against them in Schedule 1. Any
acronyms which are not defined in Schedule 1 shall have the meaning ascribed to
them in section 2 of the IGFR.

                                       5
<PAGE>   7
1.2 Except where the context otherwise requires, the masculine gender shall
include the feminine and neuter and the singular shall include the plural and
vice versa and references to persons shall include bodies corporate and
incorporate. References to a party to this Agreement shall include the permitted
successors and assigns of such party.

1.3 The clause and schedule headings and any table of contents are for
convenience of reference only and shall not be taken into account in construing
this Agreement.

1.4 Subject to clause 3, references in this Agreement to clauses, sub clauses,
schedules and annexes are to clauses, sub clauses, schedules and annexes of this
Agreement and the schedules and annexes form part of this Agreement and shall
have the same force and effect as if expressly set out in the body of this
Agreement.

2 SCOPE OF AGREEMENT

2.1 The Contractor's acceptance of this Agreement shall be confirmation that the
NEC Team has reviewed and fully understands the IGFR and the Statement of Work
and the Contractor confirms that the Works will be undertaken on the basis of
this Agreement. The Contractor also agrees that it is responsible for the
definition, management and execution by the NEC Team of all tasks necessary to
fulfil the IGFR.

3 PRECEDENCE AND INTERPRETATION

3.1 In the event of any conflict between the main body of this Agreement and any
document referred to herein, then the wording of the main body of this Agreement
shall prevail.

3.2 Clause 3.1 shall not apply to any document relating to the proposed Vendor
Financing referred to in Schedule 10.

3.3 ICO and the Contractor acknowledge the hierarchical nature of the documents
as set out in Schedule 2.

PART B - PRIMARY OBLIGATIONS

4    PRIMARY OBLIGATIONS OF THE CONTRACTOR AND WARRANTIES

4.1 The Contractor warrants and undertakes that:

     (a)  it will provide to ICO by the Level 2 Acceptance Date the
          functionalities described in the IGFR across the complete ICONET
          Ground Facilities;

     (b)  it will design, develop, create, deliver, install and provide (as the
          case may be) all of the Deliverables (including those which have at
          the date of this Agreement been specified by the Contractor) necessary
          for the ICONET Ground Facilities so as to fulfil the functional
          objectives and the requirements of the IGFR and the Statement of Work;

     (c)  the Works comprising the ICONET Ground Facilities will be carried out
          and delivered in accordance with and to the standards stipulated in
          the IGFR and the Statement of Work;

     (d)  it will complete the Works which are scheduled to be completed by the
          RFT Availability Dates and the Level 2 Acceptance Date on or before
          those dates and those Works which are scheduled to be completed after
          the Level 2 Acceptance Date by the relevant dates specified in the
          Master Level Schedule;

                                       6
<PAGE>   8
     (e)  it will provide all the documentation, services and Deliverables by
          the times specified in the Top Level Milestone Schedule generally, and
          will ensure that the progress of the development, delivery and
          installation of each of the Deliverables will be achieved in
          accordance with the Top Level Milestones set out in the Top Level
          Milestone Schedule and that the requirements set out in the Statement
          of Work will (except where otherwise agreed) be delivered no later
          than the Level 2 Acceptance Date;

     (f)  the ICONET Ground Facilities will fully support the requirements of
          the IGFR and in particular the end-to-end services described in
          Section 4 of the IGFR except where marked "Option" or "F/R" (unless
          such "Option" has been exercised or the "F/R" item has subsequently
          been made a Deliverable pursuant to a Change Order, in which event
          such items shall be deemed to have been a service included in the
          IGFR) except where, and to the extent that, the Excluded Circumstances
          prevent the ICONET Ground Facilities from doing so in which case the
          Contractor shall to the maximum extent feasible make such
          modifications to the ICONET Ground Facilities as are required fully to
          support the requirements of the IGFR and such end-to-end services in
          accordance with clause 4.10;

     (g)  without prejudice to clause 41, the Deliverables may lawfully be used
          for the purposes of the ICONET Ground Facilities in accordance with
          laws and regulations in force as at the date hereof in each of the
          countries where the Sites are located;

     (h)  any Deliverables which are or shall be specified by the Contractor for
          the purposes of this Agreement may, on the date when the obligation to
          supply first arises or, if later, the date on which the Contractor
          specifies the same, lawfully be used for the purposes of the ICONET
          Ground Facilities in accordance with laws and regulations in force as
          at such date in each of the countries where the Sites are located;

          Provided that for the purposes of clause 4.1(h), where any specific
          piece of equipment or component has been or is specified as a
          Deliverable and the same is not available at the time it is required,
          the Contractor shall, having given written notice to the Supervising
          Officer, be permitted to substitute a reasonable alternative piece of
          equipment or component so long as this has no adverse effect on the
          quality or functionality of the relevant Deliverable and so long as
          ICO shall not within 21 days of receipt of the Contractor's notice,
          have notified the Contractor in writing that it objects to the
          proposed substitution, and ICO undertakes that it will not exercise
          such right of objection unreasonably;

     (i)  the ICONET Ground Facilities shall be designed in such a way as to
          facilitate updates, additional functionalities or enhancements to them
          in the future and that it will, as set out in this Agreement, provide
          or procure the provision of such updates, additional functionalities,
          or enhancements to the ICONET Ground Facilities;

     (j)  at all times the Contractor and all its Sub-Contractors will provide
          their services in a workmanlike and professional manner and exercise
          reasonable skill and care;

     (k)  it will ensure that all of the Deliverables supplied are suitable for
          the purposes for which they are supplied and for use at the intended
          place of operation and are of a standard satisfactory to enable them
          to fulfil the requirements set out in this Agreement;

     (l)  it will provide and will ensure that its Sub-Contractors provide, a
          sufficient number of suitably skilled and appropriately experienced
          personnel to meet the objectives of this Agreement and to ensure that
          delivery, installation and testing of the Deliverables at each of the
          Sites is completed by the Level 2 Acceptance Date;

                                       7
<PAGE>   9
     (m)  it will work in a constructive manner with ICO Staff and the Site
          Operators to the extent necessary for the effective performance of the
          Works; and

     (n)  each of the Deliverables and each item of the Equipment, Software or
          other equipment which is or shall be specified for the purposes of the
          ICONET Ground Facilities will be available for use or incorporation
          into the ICONET Ground Facilities by ICO and, with the exception of
          those Deliverables which ICO has committed to purchase at the date of
          this Agreement (including those where the price and scope are fixed at
          the date of this Agreement), that the same will be provided by the
          Contractor at a reasonable cost and on reasonable terms.

4.2 If the Contractor becomes aware of any internal inconsistencies in or
between the IGFR or the Statement of Work, or any incompleteness or lack of
sufficient detail in the IGFR or the Statement of Work, then the Contractor
shall immediately notify ICO of the same in writing and promptly thereafter
inform ICO of the measures which it proposes to take in order to make the same
consistent, complete or sufficiently detailed and the Contractor undertakes to
procure that any details or means or measures which the Contractor notifies to
ICO under this clause 4.2 will, if agreed to by ICO, not result in any of the
warranties or undertakings in this clause 4 ceasing to be correct or met.

4.3 If ICO does not consider that any matter proposed to it under clause 4.2 is
either satisfactory or appropriate, ICO shall promptly notify the Contractor of
this in writing and the Contractor shall then promptly notify ICO of a
reasonable alternative.

4.4 Any variation to the IGFR or the Statement of Work to which ICO agrees under
the terms of clause 4.2 or 4.3 shall be recorded in accordance with clause 58.

4.5 The Contractor undertakes that to the best of its knowledge, information and
belief it is not, at the date hereof, aware of anything in the IGFR or the
Statement of Work which is likely to result in any of the Top Level Milestones
not being met or which will affect the likelihood of its ability to satisfy all
of the functionalities of the IGFR or to deliver all of the ICONET Ground
Facilities which in either case the Contractor is agreeing under this Agreement
to fulfil or deliver by the Level 2 Acceptance Date.

4.6 Where the Contractor shall be in breach of any aspect of any of the
warranties and undertakings set out in clauses 4 or 40 or any of its other
obligations relating to the provision of the ICONET Ground Facilities, the
Contractor shall be responsible, at its own cost   *   for redesigning the
relevant aspect of and making any modifications to the ICONET Ground Facilities
required to remedy any such breach and for procuring the provision of a suitable
alternative to such Deliverables for ICO having functionality which is no less
than that which was specified in the IGFR and/or the Statement of Work. The
Contractor shall carry out such work, and procure that its Sub-Contractors carry
out such work, expeditiously and use its best endeavours to ensure that the
impact of such breach is minimised, especially as the same affects the time
schedule for the implementation of service through the ICO System.

4.7 The warranties set out in this clause shall be deemed repeated on the first
day of each calendar quarter by reference to such date and the facts and
circumstances then in existence, save that in the case of the warranties
contained in clauses 4.1 (g) and (h), with the addition at the beginning thereof
of a qualification "save as has been notified in accordance with clause 63.3,".

4.8 If the Contractor or any Sub-Contractor makes a statement or provides ICO
with information, ICO, acting by the Supervising Officer, shall be entitled by a
written notice to the Contractor to require that the Contractor confirms the
accuracy of such statement or information. Such notice shall refer to this
clause 4.8 and, wherever possible, identify where and when the statement was
made and the person who made the statement which ICO wishes the Contractor to
confirm. The Contractor shall, acting by the Contractor's Authorised
Representative, within fourteen days of ICO's notice (or in any

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

                                       8
<PAGE>   10
case where ICO shall have identified that confirmation of such statement is a
matter of extreme commercial urgency, by return) either confirm the accuracy of
such statement or information, or where the same is incorrect or inaccurate,
shall provide a qualified, corrected or accurate statement addressing the
relevant subject-matter in sufficient detail to enable ICO to obtain a proper
understanding of the position (any such statement or information so confirmed or
deemed confirmed and any qualified corrected statement or information being
referred to in this clause 4.8 as a "Representation"). If the Contractor does
not give a substantive reply to ICO's request within the relevant timescale
as set out in this clause, the Contractor shall be deemed to have confirmed such
Representation. The Contractor shall be deemed to warrant the accuracy of each
Representation and ICO shall be entitled to rely for all the purposes of this
Agreement (and in particular for the purposes of determining its course of
action) upon the accuracy of any Representation.

4.9 Without prejudice to any rights which ICO may have as are provided for
pursuant to the terms of this Agreement, the Contractor gives no warranties
other than as are set out in this Agreement, whether, express, implied or
statutory, on or with respect to the goods and services to be provided
hereunder.

4.10 Where, and to the extent that, the Excluded Circumstances prevent the
ICONET Ground Facilities from fully supporting the requirements of the IGFR and
the end-to-end services referred to in clause 4.1 (f), the Contractor shall to
the maximum extent feasible make such modifications to the ICONET Ground
Facilities as are required fully to support such requirements and such
end-to-end services on terms to be agreed between the parties.

4.11 ICO shall not be entitled to bring a claim in respect of either any breach
of any of the warranties set out in clause 4.1 nor for any breach of the
undertakings set out in clause 6.1 unless ICO shall have notified the Contractor
thereof in writing within six years following the Level 2 Handover Date except:

     (a)  where the claim arises from a breach of any of such warranties
          relating to Further Works and/or Further Deliverables, in which event
          such claim may be brought only if ICO shall have notified the
          Contractor thereof in writing within six years following the Handover
          Date of the relevant Deliverable or the date of completion of the
          relevant Works; or

     (b)  where the claim arises as a consequence of any Further Works and/or
          Further Deliverables which adversely affect any of the Deliverables
          delivered or Works completed before the Handover Date or date of
          completion of such Further Works, in which event such claim may be
          brought only if ICO shall have notified the Contractor thereof in
          writing within six years following the Handover Date of the relevant
          Further Deliverable or the date of completion of the Further Works
          which have caused such adverse effect,

provided that in any of the foregoing circumstances, if the event giving rise to
the claim for breach of warranty shall occur less than 12 months prior to the
last day of any such six year period, in respect of that claim only, the period
for notification of the claim shall be extended to end 12 months after the date
of the relevant event.

4.12 Any claim made by ICO for breach of warranty under clause 4 or for breach
of undertaking under clause 6.1 shall be deemed withdrawn, and the breach (if
any) shall be deemed to have been irrevocably waived by ICO, unless proceedings
in respect of such claim shall have been issued and served by ICO on the
Contractor within twelve months of such claim being notified by ICO to the
Contractor.

5. CONTRACTOR TO INFORM ITSELF FULLY

                                       9
<PAGE>   11
5.1 The Contractor shall be deemed to have examined all the Sites (other than
those Sites specifically identified in Schedule 8 as not having been examined as
of the date of this Agreement). No claim from the Contractor for additional
payment will be allowed on the grounds of misinterpretation of any matter
relating to those Sites which have been examined, unless ICO shall make any
material change (other than in response to, or as may be made to meet, any of
the requirements of the Contractor) to the relative positioning of the RFTs and
the main hub building located at any such Site from those as shown by the latest
plans of such Sites provided by ICO to the Contractor prior to the date of this
Agreement. This clause 5.1 shall not affect ICO's obligations under clause 12.3.

5.2 ICO and the Contractor acknowledge that as at the date hereof the locations
of certain intended Sites are not yet determined by ICO and that forthwith after
the location of such Sites has been determined by ICO, ICO shall inform the
Contractor of such location(s) and provide equivalent information to that
provided in respect of the other Sites previously specifically identified and
arrange for the Contractor to have the opportunity to examine such Sites. To the
extent that any Site specific conditions or requirements could not reasonably
have been anticipated by the Contractor at any of such Sites, clause 9 shall
apply.

6. STANDARD OF THE WORKS

6.1 To the extent that the standard of the Works has not been specified in this
Agreement, the Contractor shall use good quality materials, techniques and
standards, and shall procure that the Works are at all times carried out:

     (a)  in an efficient, effective and safe manner and in accordance with Good
          Industry Practice;

     (b)  in a way which is not likely to be injurious to health or cause damage
          to property;

     (c)  in compliance with all relevant construction, environmental or other
          regulations of any kind which relate to the Works to be carried out on
          each Site; and

     (d)  without prejudice to paragraph (c) but subject always to the
          provisions of clause 7, so far as relates to any of the Deliverables,
          to a single standard which shall in a uniform manner satisfy all of
          the qualifications and requirements which are applicable in each of
          the countries, and/or any other relevant regulatory requirements of
          any of the countries, in which any of the Sites is located unless the
          compliance with such uniform standard would, in any particular
          country, conflict with the mandatory requirements in such country in
          which event the latter standard shall prevail in that country,

provided that in the event that any new regulation, qualification or requirement
which relates to the Works as described in paragraph (c) or (d) above shall be
issued and come into effect after the date hereof and compliance with such
regulation, qualification or requirement results in an obligation to introduce a
more onerous standard for the relevant Deliverable which as a consequence causes
an increase in the costs of the Contractor, clause 9 shall apply.

6.2 ICO may, notwithstanding the foregoing provisions of this clause 6, advise
the Contractor that ICO does not require the Contractor to produce all or any of
the Deliverables or any aspect of them to any particular standard which may be
called for under clause 6.1(d) in relation to all or any of the Sites. Any such
notification shall not relieve the Contractor from the requirements of clause
4.1.

7. UNIFORM STANDARDS

7.1 If the Contractor shall reasonably consider that the provisions of clause
6.1(d) shall impose a standard in relation to any particular Site which is
significantly more onerous than that imposed in

                                       10
<PAGE>   12
relation to any other Site and where compliance with such standard at the other
Sites would not offer any material benefits to ICO, the Contractor may by notice
in writing request that ICO waives compliance with such standard at those Sites
at which such standard is not a mandatory requirement. At the date of this
Agreement the only such instance identified by the Contractor which has been
notified to ICO is the requirement in Germany for certain emission control which
it has been agreed may be satisfied by an additional shielding box around the
relevant equipment.

7.2 ICO shall consider any request made by the Contractor as referred to in
clause 7.1 in good faith and may at its discretion waive any particular
requirement in whole or in part and ICO may have regard in particular to the
anticipated consequences for its ability to use Spares of common design or
functionality at any of the Sites if the Deliverables are to be produced to
differing standards.

7.3 If ICO shall in any particular instance waive such a requirement as shall be
referred to in clause 7.1 and subsequently the standards shall change in any
other country to introduce a more onerous standard for the relevant Deliverable
which, as a consequence, causes an increase in the costs of the Contractor, then
to the extent that such revised standard is the same as or no more onerous than
that applicable at the Site referred to in clause 7. 1, the Contractor shall not
be entitled to a cost adjustment as referred to in the proviso to clause 6.1.

8 UNILATERAL CHANGES

8.1 ICO, acting by the Supervising Officer, may unilaterally at any time by
written notice to the Contractor make changes to the IGFR and/or the Statement
of Work in any one or more of the following:

     (a)  method of shipment or packing; and

     (b)  other than in the circumstances referred to in clause 63, the time or
          the place of inspection or delivery of the Deliverables or Works to be
          provided under this Agreement;

provided that ICO shall endeavour to avoid unreasonable or impractical changes.

8.2 If any such change in clause 8.1 affects the cost of, or the time required
for, performance of any part of this Agreement, an equitable adjustment shall be
agreed to all or any of the Price (including, for the avoidance of doubt, a
reduction in the Price), the Top Level Milestone Schedule, the payment terms,
the IGFR and/or the Statement of Work (as the case may be). If necessary, the
relevant clause(s) in this Agreement shall also be amended in accordance with
clause 58.

8.3 The Contractor shall notify ICO in writing within thirty days from the date
of ICO's written notification of the required change if it considers that an
equitable adjustment under clause 8.2 should be made.

8.4 Where any materials or services are made obsolete or excess or cannot be
used as a result of a change pursuant to clause 8.1, ICO shall have the right to
prescribe the manner of disposal of such materials or services and the
Contractor shall account to ICO accordingly for any net proceeds realised as a
consequence of the disposal (howsoever achieved) of such materials or services.
If the Contractor is unable to dispose of such materials or services in the
manner prescribed by ICO within a reasonable period (to be determined by
reference to the particular materials or services and the circumstances) in
spite of the Contractor's commercially reasonable efforts, the Contractor shall
be free to dispose of such materials or services using the best method available
with a view to maximising ICO's receipts in respect thereof.

Any such proceeds realised by the Contractor shall be accounted for to ICO in
cash within 30 days of receipt by the Contractor on a separate invoice basis.
Clause 17.5 shall be applicable to any such

                                       11
<PAGE>   13
payment due to ICO. Subject to such payment being made in accordance with this
clause 8.4, deduction from any payment due from ICO to the Contractor
pursuant to clause 16 shall be made   account of the same. For the avoidance of
doubt, any change under clause 8.1 shall not, except as specified in clause 8.2,
affect any obligation of ICO to the Contractor under clause 15.

8.5 Notwithstanding that ICO and the Contractor may not have agreed upon an
appropriate equitable adjustment under clause 8.2, the Contractor shall
implement the relevant change(s) required by ICO under clause 8.1 without delay.

8.6 For the purpose of this clause 8, any communication between the parties
shall be enforceable and binding upon the parties only if signed by the
Supervising Officer and the Contractor's Authorised Representative.

9 CHANGE CONTROL

9.1 Either party may at any time formally request in writing changes or
additions to this Agreement, the IGFR or the Statement of Work (in this clause
9, a "change"). The procedures set out in this clause 9 shall apply to any such
change whether it is ICO or the Contractor which shall propose the same. For the
avoidance of doubt, these procedures shall not apply where clause 8 applies.

9.2 If ICO shall propose a change to the scope of this Agreement or the IGFR or
the Statement of Work (other than those set out in clause 8), it shall notify
the Contractor thereof in writing specifying in as much detail as ICO believes
is practicable the nature of the relevant change including any parameters which
ICO considers desirable. Such a notice will only be effective if signed by the
Supervising Officer.

9.3 The Contractor shall respond promptly and in any event not more than 28 days
after receiving notification from ICO under clause 9.2 (or as soon as possible
thereafter if the Contractor shall show a longer period is reasonably required
for such purpose) and state:

     (a)  any information known by any member of the NEC Team or any relevant
          Sub-Contractor relating to the implications of such change and the
          work required to be performed by the NEC Team or any relevant
          Sub-Contractor; and

     (b)  any other information known by any member of the NEC Team or any
          relevant Sub-Contractor which is likely to be material to ICO's
          decision to pursue such addition or change or which ICO reasonably
          requests for such purposes; and

     (c)  the estimated cost and time required to prepare a Detailed Report as
          defined in clause 9.5.

9.4 If any member of the NEC Team or any relevant Sub-Contractor shall consider
that a change or addition to the IGFR and/or the Statement of Work is in the
interests of ICO and should be considered by ICO, the Contractor shall notify
ICO of such proposal in writing. Such notification shall specify in as much
detail as is practicable the nature of the change or addition that is being
proposed for ICO's consideration and shall state all information known by any
member of the NEC Team or any Sub-Contractor and any information (including but
not limited to the implications of any such change on the work required to be
performed by any member of the NEC Team or any relevant Sub-Contractor) which
ICO might reasonably consider to be material to its decision whether or not to
ask the Contractor to pursue such addition or change.

9.5 Following receipt of information under clauses 9.3 or 9.4, ICO shall within
a reasonable period give notice to the Contractor in writing whether or not it
wishes to consider the matter further whereupon the Contractor shall provide
promptly and in any event within not more than 90 days after the date of such
notice (or as soon as possible thereafter if the Contractor shall show a longer
period

                                       12
<PAGE>   14
is reasonably required for such purpose) a detailed report to ICO on the
technical feasibility of such change or addition to the IGFR and/or the
Statement of Work and all consequential changes and effects for and upon the
ICONET Ground Facilities or the ICO System as a whole (including the timetable
and cost structure) which can reasonably be anticipated to flow therefrom (the
"Detailed Report").

If such Detailed Report is prepared as a result of a request made under clause
9.2, the Contractor shall be entitled to claim and receive a reasonable cost to
be agreed in advance with ICO for the preparation of such Detailed Report.

If such Detailed Report is prepared as a result of a request in response to a
proposal made pursuant to clause 9.4, the Contractor shall as a general
principle not be entitled to claim or receive any costs for the preparation of
the Detailed Report, though ICO recognises that the complexities of the relevant
circumstances may be such that an equitable cost sharing would be appropriate.

9.6 The Detailed Report shall contain in addition to the information supplied
under clause 9.5:

     (a)  a full description of the work proposed to be performed;

     (b)  a firm fixed price;

     (c)  a schedule for the implementation of the work including the effect (if
          any) upon the Master Level Schedule; and

     (d)  the required modifications to the IGFR and/or the Statement of Work
          and (if any) to this Agreement in order to effect the change.

9.7 ICO shall consider such Detailed Report referred to in clause 9.5 and shall
promptly and in any event within not more than 60 days after the date of receipt
of such Detailed Report (or as soon as possible thereafter if ICO shall show a
longer period is reasonably required for such purpose) request such further
information from the Contractor as ICO may reasonably require in connection with
the proposals and/or request the Contractor to make modifications to the
proposals contained in such Detailed Report as ICO may reasonably require.

The Contractor shall promptly thereafter supply such information to ICO
and/or make such modifications as the Contractor considers appropriate.

9.8 If ICO considers that the proposed changes should be made, ICO shall so
notify the Contractor in writing and, following agreement by the parties as to
any required changes to this Agreement including any consequential changes in
all or any of the Price (including, for the avoidance of doubt, a reduction in
the Price), the Top Level Milestone Schedule, the payment terms, the IGFR and/or
the Statement of Work (as the case may be), the parties shall then record such
agreement in writing (a "Change Order").

9.9 For the purpose of this clause 9, any communication between the parties and
any Change Order shall be enforceable and binding upon the parties only if
signed by the Supervising Officer and the Contractor's Authorised
Representative.

[10] NOT USED.

11 CONTRACTOR'S ABILITY TO APPOINT AND LIABILITY FOR SUB-CONTRACTORS

11.1 The Contractor will ensure that the Works are carried out in such a manner
as will fulfil the IGFR and the Statement of Work as amended from time to time
in accordance with the terms of this

                                       13
<PAGE>   15
Agreement using the other members of the NEC Team as the Principal
Sub-Contractors to carry out the Works. In accordance with the terms of this
clause, the Contractor and its Sub-Contractors may sub-contract such elements of
the Works as they consider to be appropriate but the Contractor shall remain
fully responsible for the performance of this Agreement, the preparation and
delivery of the Deliverables and the completion of the Works which are scheduled
to be completed by the relevant Top Level Milestones notwithstanding any default
or failure to perform by any Sub-Contractors.

11.2 Before any Sub-Contractor is appointed (whether directly by the Contractor
or indirectly by any other person who is a Sub-Contractor) to carry out any part
of the Works (other than the supply of commodity or stock items which does not
involve the disclosure to such Sub-Contractor of Confidential Information of or
relating to ICO or any aspect of the ICO System), the Contractor shall notify
ICO in writing of the name and intended scope of work of each Sub-Contractor
proposed to be engaged to carry out any Works. ICO may, on reasonable grounds,
reject any proposed sub-contractor (but shall not be required to set out in
detail its reasons for any such rejection) and any such rejection shall not give
the Contractor the right for any claim for delay in the Master Level Schedule.
If ICO does not notify the Contractor of its rejection of a proposed
Sub-Contractor within 15 days (or such longer period as the parties may agree)
of receipt of the Contractor's notice of intention to engage such proposed
Sub-Contractor (together with the scope of work referred to above) the proposed
sub-contracting arrangement may, subject to clause 11.3, be entered into.

11.3 Prior to concluding any sub-contracting arrangements as referred to in
clauses 11.1 and 11.2 the Contractor shall, unless ICO otherwise specifically
requires, submit the following:

     (a)  a detailed statement of the Works to be sub-contracted, if this should
          vary materially from that supplied under clause 11.2; and

     (b)  satisfactory directly enforceable confidentiality and other
          undertakings between the prospective Sub-Contractor and ICO in a
          reasonable form provided by ICO within 30 days of the date of this
          Agreement.

11.4 If ICO reasonably requests the Contractor to procure the change of any
personnel allocated by the Contractor or any Sub-Contractor to work in
connection with the provision of the Deliverables, then the Contractor shall
ensure that such personnel cease to be actively engaged in any Works.

The Contractor shall ensure that, when on the premises of ICO, any of its agents
or sub-contractors or the Site Operators, the personnel of the Contractor and
its Sub-Contractors comply with any rules and regulations which are applicable
generally to staff or visitors on such premises.

11.5 In performing its obligations under or in connection with this Agreement
(other than as provided in the Statement of Work as at the date of this
Agreement) the Contractor shall, and shall procure that Sub-Contractors shall,
use its/their best endeavours to ensure that it does/they do not:

     (a)  create or impose any requirements in relation to the Works which are
          incapable of being fulfilled at reasonable cost by any third parties;
          and/or

     (b)  develop its/their own components if satisfactory components are
          available from any third parties at a lower cost,

unless such requirements or development can be justified on an objective basis.

11.6 The Contractor will, and will ensure that the Sub-Contractors will, provide
work space to a standard commensurate with efficient work practices for any ICO
Staff whose attendance at the Contractor's or such Sub-Contractor's places of
work as is needed to advise or test or otherwise participate in the achievement
of the terms of this Agreement.

                                       14
<PAGE>   16
12 ICO OBLIGATIONS

12.1 Without prejudice to ICO's other obligations under this Agreement, ICO
shall provide the Contractor with such information, services and equipment as
shall be specified in the Statement of Work. To the extent that ICO's failure in
any material respect to comply with its obligations under this clause 12.1 shall
adversely and directly affect the ability of the Contractor to comply with the
Top Level Milestone Schedule and any applicable Top Level Milestones, to the
extent the Contractor can demonstrate the same to be required, the Top Level
Milestone Schedule and Top Level Milestones shall be adjusted in an equitable
manner.

12.2 ICO shall be responsible for securing any applicable official operating
licenses or authorisations required by central government authorities relating
to the civil works at the Sites, and for the operation or testing, of the ICONET
Ground Facilities or any part of the ICO System (excluding any equipment
certifications), and ICO shall pay any necessary taxes or licence fees imposed
as a condition for obtaining the same and use its reasonable endeavours to
ensure that the Contractor will not be materially delayed in fulfilling any of
its responsibilities hereunder.

12.3 Subject to clause 25.2, ICO shall ensure that such preparations and
provisions are made at each of the Sites to meet the requirements specified in
Annex 3 of the Statement of Work. If such preparations and provisions are
inadequately carried out by ICO, other than by reason of such preparations and
provisions having been inadequately or incorrectly specified by the Contractor,
then any reasonable costs thereby incurred by the Contractor shall be
reimbursable in accordance with clause 17 to the Contractor and, to the extent
that it can demonstrate the same to be required, the Top Level Milestone
Schedule and Top Level Milestones shall be adjusted in an equitable manner. In
any other case the Contractor shall be responsible for carrying out, and for all
costs and expenses incurred in carrying out, any works required to correct
and/or supplement any inadequate or incorrect specifications and the Contractor
shall not be entitled to any adjustment in the Top Level Milestone Schedule.

12.4 In order to assist the Contractor in its Site installation activities ICO
shall, upon the request of the Contractor, provide reasonable assistance to the
Contractor in the co-ordination of the Contractor's activities with those of the
Site Operators and other ICO Staff.

13 QUALITY ASSURANCE

13.1 The Contractor shall operate a system of quality management and control
which satisfies the requirements set out in Annex 4 of the Statement of Work.

13.2 The Contractor shall satisfy ICO that all relevant manufacturing processes
are controlled and are defined adequately by process specifications and
drawings, work instructions and procedures.

Quality controls to be operated by the Contractor shall include but not be
limited to:

     (a)  satisfactory control of sources of supply and materials, piece parts
          and components;

     (b)  conformance to manufacturing specifications, drawings, documented
          procedures and work instructions;

     (c)  adequate documentary evidence including certification of completion of
          state inspection and test routines;

     (d)  investigation of defects and control of corrective action;

     (e)  satisfactory storage, handling and delivery of material; and

     (f)  control and calibration of inspection, measuring and test equipment.

                                       15
<PAGE>   17
13.3 Subject to applicable legal restrictions in the country of manufacture, ICO
reserves the right at its discretion for ICO Staff to inspect visually all of
the Deliverables and to witness any or all quality assurance tests and
inspection procedures and examine quality assurance records relating thereto
any of the Sites or any of the locations where the NEC Team or any
Sub-Contractors (excluding any Sub-Contractor who shall not have been required
to enter into a direct undertaking with ICO pursuant to clause 11) carries out
the Works. ICO shall give the Contractor 7 days written notice of its intention
to make any inspection or to witness any quality assurance tests or to examine
any quality assurance records.

13.4 The Contractor shall promptly upon ICO's request make available to ICO at
the relevant place of inspection or at such other locations as may be mutually
agreed all quality assurance records and other pertinent manufacturing data,
including any drawings, inspection and test data, which are reasonably necessary
to enable ICO to satisfy itself as to the Contractor's compliance with the
quality assurance standards called for under the Statement of Work.

13.5 Any inspection and/or test and/or examination made or attended by ICO Staff
under this clause shall not relieve the Contractor of its responsibility to
conform to the requirements of this Agreement.

14 ICONET INTEGRATION

14.1 The Master ICONET Integration Plan Document which is referred to in Annex 9
of the Statement of Work (the "MIIPD") describes the range of ICO System
integration tests and services which the Contractor has granted ICO the option
to request the Contractor to carry out (the "ICONET Integration"). Table 1 of
Annex 9 lists the various campaigns which are more fully described in the MIIPD
(the "ICONET Integration Campaigns") and the associated management that may be
required of the Contractor (the "Associated Management"). Table 1 of Annex 9
also sets out the number of man-months which the Contractor has offered to
provide, all of which may be adjusted in accordance with clause 14.6. The
schedule for the completion of such services is set out in Table 2 of Annex 9
(the "ICONET Integration Schedule"). Annex 9 also establishes the additional
responsibilities associated with the performance of ICONET Integration which the
parties agree to assume if ICO elects to exercise its option.

14.2 ICONET Integration shall be carried out in two phases. The first phase
shall commence in 1998 (the "First Integration Phase") and the second phase
shall commence in 1999 (the "Second Integration Phase"). During the period from
the execution of this Agreement until, in the case of the First Integration
Phase, 15 July 1997 and, in the case of the Second Integration Phase, 30
November 1997, ICO and the Contractor shall consult regarding the detailed
definition of the respective ICONET Integration Campaigns. The Contractor will
provide all reasonable assistance to ICO to enable ICO to make an informed
judgement as to whether or not to exercise the option in accordance with
clause 14.3

14.3 ICO may exercise the option contained in clause 14.1 for the First
Integration Phase by notifying the Contractor in writing by no later than 15
July 1997. ICO may subsequently exercise the option contained in clause 14.1 for
the Second Integration Phase by notifying the Contractor in writing by no later
than 30 November 1997.

14.4 The Contractor shall, within 2 months of the receipt of each of ICO's
notifications pursuant to clause 14.3, submit specific proposals to ICO which
will include:

     (a)  the detailed definition of the ICONET Integration Campaigns which ICO
          has elected to be performed by the Contractor in accordance with
          clause 14.3:

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<PAGE>   18
     (b)  the qualifications and numbers of personnel and the resultant
          man-months which the Contractor proposes for each ICONET Integration
          Campaign and, for the purpose of clause 14.16, the minimum number of
          man-months for each ICONET Integration Campaign (which shall never
          exceed 25% of the total proposed man-months for each ICONET
          Integration Campaign);

     (c)  the location(s) at which each ICONET Integration Campaign is proposed
          to be performed and the resultant travel costs;

     (d)  the duration and sequence for the performance and completion of each
          ICONET Integration Campaign together with an amended ICONET
          Integration Schedule;

     (e)  the content and price of the documents specified to be provided by the
          Contractor in accordance with Section 9 of Annex 9 which shall
          constitute the Deliverables for the purpose of this clause 14 but, for
          the avoidance of doubt, not for the purpose of the Level 2 Acceptance
          Criteria;

     (f)  the special test equipment required for each ICONET Integration
          Campaign identifying those items of special test equipment to be
          provided by ICO which are set out in Table 3 of Annex 9, together with
          the dates by which, and the locations to which ICO supplied test
          equipment is to be provided for each ICONET Integration Campaign;

     (g)  the relevant Associated Management man-months required by the
          Contractor for the management of the ICONET Integration Campaigns; and

     (h)  the additional resources described in Section 3.8 of Annex 9 (the
          "Additional Resources") and the Contractor's best estimate of its
          price for providing such Additional Resources. The extent and price of
          such Additional Resources will be subject to reduction to the extent
          that ICO elects to provide some or all of such Additional Resources.

14.5 The Contractor will, if requested by ICO, amend its proposals submitted
pursuant to clause 14.4 to meet the reasonable requirements of ICO.

14.6 ICO may, after receipt of each of the Contractor's proposals pursuant to
clause 14.4, issue a Change Order to the Contractor. For the First Integration
Phase, ICO may issue such Change Order in a timely manner and in any event no
later than 31 January 1998. For the Second Integration Phase, ICO may issue a
further Change Order in a timely manner and in any event no later than 31 May
1998. Such Change Orders shall specify:

     (a)  the ICONET Integration Campaigns to be undertaken by the Contractor;

     (b)  the qualifications and numbers of personnel and the resultant
          man-months for each ICONET Integration Campaign, including for the
          purposes of clause 14.16 the minimum number of man-months for each
          ICONET Integration Campaign to be paid for by ICO;

     (c)  the location(s) at which each ICONET Integration Campaign is to be
          performed and the total resultant travel costs;

     (d)  the duration and sequence for the performance and completion of each
          ICONET Integration Campaign together with the amended ICONET
          Integration Schedule;

     (e)  the content and price of the Deliverables;

                                       17
<PAGE>   19
     (f)  the special test equipment required for each ICONET Integration
          Campaign which ICO will make available for use by the Contractor;

     (g)  the Associated Management man-months;

     (h)  the Additional Resources (if any), and the times by which and the
          locations at which ICO will provide such Additional Resources to the
          Contractor for each ICONET Integration Campaign at its own cost; and

     (i)  the Additional Resources which the Contractor will provide for each
          ICONET Integration Campaign and the associated cost (if any).

The Contractor shall accept such Change Orders provided that in each case (a),
(b), (d), (e), (f), (g) and (i) are generally consistent with, and do not exceed
the Contractor's proposals pursuant to clause 14.4. In any other event, ICO and
the Contractor shall mutually agree the Change Orders in accordance with clause
9.

14.7 The ICONET Integration services shall be carried out in accordance with
Annex 9 and any Change Orders agreed in accordance with clause 14.6. Such
services shall constitute the Works for the purposes of this clause 14 but, for
the avoidance of doubt, shall not be Works for the purposes of the Level 2
Acceptance Criteria.

14.8 Within 6 months of the date of this Agreement the parties shall agree a
reporting procedure for all Works. Such procedures shall include weekly written
reports by the Contractor concerning the man-months expended, expenses incurred
by the Contractor, and the progress of each ICONET Integration Campaign.

14.9 The Contractor shall, in a timely manner, inform ICO if the Contractor
anticipates that the remaining man-months for an individual ICONET Integration
Campaign will be insufficient to permit the completion of such ICONET
Integration Campaign. ICO may direct the Contractor in writing to reallocate
man-months from other ICONET Integration Campaigns so as to permit the
Contractor to complete such ICONET Integration Campaign. If ICO shall instruct
the Contractor to modify the scope of, or not to complete an ICONET Integration
Campaign, the Contractor shall be responsible for performing such ICONET
Integration Campaign only to the extent so instructed by ICO. If ICO gives no
directions to the Contractor, then the Contractor shall be entitled to cease
carrying out the relevant ICONET Integration Campaign once all the remaining
applicable man-months have been expended. In the event that ICO directs that
man-months are to be reallocated to any ICONET Integration Campaign from other
ICONET Integration Campaign(s), the Contractor shall advise ICO immediately, in
writing as to the anticipated effects upon the Contractor's performance and
completion of the remaining ICONET Integration Campaigns. If ICO does not
provide instructions as to how to proceed within 5 days (or such other time as
may be mutually agreed) of being informed by the Contractor of the effect upon
the remaining ICONET Integration Campaigns the Contractor shall be obliged to
expend only the remaining available man-months. The total number of man-months
specified in the Change Orders agreed in accordance with clause 14.6 shall not
be exceeded. If either party wishes to apply further effort beyond the total
number of man-months specified in the Change Order agreed in accordance with
clause 14.6, then the requesting party shall propose a further Change Order for
consideration and agreement by the other party in accordance with clause 9.

14.10 The Contractor will submit invoices to ICO, and ICO shall pay the same in
United States Dollars subject to clauses 14.11 and 14.12, payable within 30
days after receipt of valid invoices in accordance with clause 17 as follows:

     (a)  man-months - monthly in arrears for the man-months that have been
          expended by the Contractor using the rate specified in Appendix 3 to
          Schedule 9;

                                       18
<PAGE>   20
     (b)  travel costs - monthly in arrears for the actual travel costs incurred
          by the Contractor (all travel shall be by economy or equivalent class)

     (c)  Additional Resources - monthly in arrears for the actual costs
          incurred by the Contractor; and

     (d)  Deliverables -

          (i)  ICONET Integration Requirements (Final) - after approval by ICO,
               40% of the price of the Deliverables;

         (ii)  ICONET Integration Plan (Final) - after approval by ICO, 30% of
               the price of the Deliverables; and

         (iii) ICONET Integration Report (Formal) - after approval by ICO, 30%
               of the price of the Deliverables.

14.11 All invoices for man-months shall identify the ICONET Integration Campaign
to which they relate the names of the relevant personnel deployed by the
Contractor together with the total time, rate, and the relevant locations where
the ICONET Integration activities were performed. All invoices for travel shall
be accompanied by actual tickets (or copies thereof). All invoices for
Additional Resources provided by the Contractor shall be accompanied by a
summary of the Additional Resources used and total actual amount paid by the
Contractor for such Additional Resources.

14.12 In substantiation of its invoices the Contractor will keep accurate
records of the number of personnel and the man-months which it has devoted to
each of the ICONET Integration Campaigns and Associated Management. Such records
shall be submitted to ICO on a monthly basis for ICO's review. ICO may require
the Contractor to provide additional information if, in ICO's reasonable
opinion, the information provided by the Contractor is incomplete or is
insufficient for the purpose of substantiating the associated invoice. No
invoices for any Works shall be payable by ICO unless such records have been
submitted to ICO in accordance with this clause and the relevant invoice shall
not be due and payable by ICO unless such records have been submitted at least
15 days before the date such invoice is due and payable.

14.13 If the Contractor should exceed the total number of man-months for any or
all of the ICONET Integration Campaigns or the Associated Management, the travel
costs, or the costs for Additional Resources which are specified in the Change
Orders agreed in accordance with clause 14.6 (except as may have been agreed by
ICO in accordance with clause 14.9 or subsequent Change Order(s)), then ICO
shall not be obliged to make any increase in the price payable for the ICONET
Integration.

14.14 In the event that ICO provides the Additional Resources in accordance with
clause 14.6(h) and the Contractor delays or cancels the activities for which
such Additional Resources were provided (unless the delay or cancellation was
the result of an event outside the reasonable control of the Contractor), ICO
shall be entitled to recover any actual costs which result from such delay or
cancellation by the Contractor in accordance with clause 17.

14.15 The Contractor will maintain and update the MIIPD and the ICONET
Integration Schedule. Either party may propose changes to the MIIPD or the
ICONET Integration Schedule. The ICONET Integration Schedule shall be adjusted
to reflect changes to activities or events within the Master Level Schedule
which directly affect the performance or completion of ICONET Integration
activities.

                                       19
<PAGE>   21
All changes to the MIIPD and the ICONET Integration Schedule shall be subject to
the approval of ICO.

14.16 ICO shall be entitled, at any time during the Contractor's performance of
the Works, to direct the Contractor by written notice to cease all or any part
of such Works. The Contractor and all relevant Sub-Contractors shall, within 15
days after the date of the notice (or such later date as may be specified by ICO
in such notice), cease such Works in an orderly manner (or in such manner as may
reasonably be specified by ICO) so as to minimise disruption to any other
integration activities being carried out and so as to preserve the results of
the Works agreed to be performed in accordance with Annex 9 and any Change
Orders pursuant to clause 14.6. The Contractor shall be entitled to:

     (a)  reimbursement of all costs incurred up to the date specified by ICO to
          cease activities provided that such costs do not exceed the amount
          associated with the ICONET Integration Campaign(s) so terminated; and

     (b)  if such notice results in the Contractor receiving for each ICONET
          Integration Campaign terminated by such notice less than the amount
          payable for the minimum man-months agreed in accordance with the
          relevant Change Order pursuant to clause 14.6, then the Contractor
          will be entitled to claim the difference between the actual man-months
          expended by the Contractor and the amount payable for the minimum
          man-months for each such terminated ICONET Integration Campaign.

Other than the sums referred to in (a) and (b) above, the Contractor shall have
no other claims of any nature arising from the termination by ICO of such
activities. For the avoidance of doubt, all amounts payable by ICO in accordance
with this clause 14.16 (except for any difference between the actual man months
expended by the Contractor and the minimum man-months agreed in accordance with
the relevant Change Order pursuant to clause 14.6) shall be substantiated by
such evidence as is to be provided for monthly invoices in accordance with
clause 14.12.

14.17 If any invoice submitted to ICO pursuant to clause 14.10 shall be overdue
for payment by ICO for 60 days or more, unless ICO has disputed such invoice on
reasonable grounds and has notified the Contractor in writing of such dispute,
the Contractor shall be entitled to stop performing all or any of the Works.

14.18 The Contractor will co-operate with ICO Staff in the performance of ICONET
Integration activities pursuant to this clause 14 or any additional integration
activities which ICO may choose to carry out.

14.19 For the avoidance of doubt, ICO shall not be responsible, for the purposes
of this clause 14, for the importation by the Contractor or any Sub-Contractor
of any installation and test tools, equipment, materials or other effects
(including personal) in connection with this clause 14.

14.20 The following clauses of this Agreement shall not apply to the Works
provided in accordance with this clause 14 and Annex 9 of the Statement of Work:
4.1 (a) to (f) inclusive; 4.1 (h), (i) and (n); 4.2 to 4.5 inclusive, 4.7, 4.10,
5, 6.1 (d), 6.2, 7, 8, 11.5, 12.3, 13.2 to 13.5 inclusive, 15, 16.2 to 16.17
inclusive, 18, 19, 22, 25 to 40 inclusive, 44 to 50 inclusive, 54, 55.4 and 56.

14.21 For the purposes of this clause 14, the following clauses of this
Agreement are amended as follows;

     (a)  clause 4.1 (l): "it will provide, and will ensure that its
          Sub-Contractors provide, suitably skilled and appropriately
          experienced personnel required to fulfil the objectives of Annex 9 of
          the Statement of Work agreed in accordance with the relevant Change
          Order pursuant to clause 14.6 and clause 14";

                                       20
<PAGE>   22
     (b)  clause 4.6: "Where the Contractor shall be in breach of any aspect of
          its warranties and undertakings set out in clause 4 relating to ICONET
          Integration, except for those parts of clause 4 specifically excluded
          in clause 14.20 or as amended by clause 14.21, the Contractor shall be
          responsible, at its own cost, for rectifying the consequences of any
          such breach"; and

     (c)  clause 11.1: "The Contractor will ensure that the Works are carried
          out in such a manner as will fulfil Annex 9 of the Statement of Work
          as amended from time to time in accordance with the terms of this
          Agreement, using the other members of the NEC Team as the Principal
          Sub-Contractors to carry out the Works. In accordance with the terms
          of this clause, the Contractor may sub-contract such elements of the
          Works as they consider to be appropriate but the Contractor shall
          remain fully responsible for the performance of the Works, the
          preparation and delivery of the Deliverables and the completion of the
          Works which are scheduled to be completed in accordance with the
          ICONET Integration Schedule notwithstanding any default or failure to
          perform by any Sub-Contractors."

PART C - PRICE AND PAYMENT

15 PRICE

15.1 ICO shall pay an aggregate total price of US$593,665,000 for the complete
performance by the Contractor of all of its obligations under this Agreement
together with a further sum of US$22,224,000 (in respect of freight and
insurance as referred to in the Pricing Schedule), which amounts shall be
subject to adjustment only in respect of (i) changes agreed under clause 9 and
(ii) the cost of any Option items upon exercise of the relevant Option or other
items or services purchased under clause 46; (such aggregate amount, as so
adjusted, being referred to as the "Price"). Any Instalment payment made shall
discharge the relevant portion of the Price and shall not be reclaimable by ICO
but without prejudice to ICO's right to claim damages and/or indemnity in
accordance with the provisions of this Agreement in the event of any breach by
the Contractor.

15.2 The Price shall be payable in Instalments as set out in the Payment
Schedule, but the obligation of ICO to pay any Cash Invoice (other than any Cash
Invoices relating to the initial Instalment) shall be subject to clauses 15.3
and 16.

15.3 If the Contractor fails to achieve a Top Level Milestone by or within the
period of 21 days commencing on the Milestone Date, then ICO may defer payment
of any Cash Invoice which shall as a consequence become a Deferred Cash Invoice.

ICO must notify the Contractor if it considers on any reasonable grounds that
any Top Level Milestone has not been achieved by the relevant Milestone Date
and, having done so, shall, subject to the provisions of this clause 15.3 and in
particular to the Contractor's entitlement to contest ICO's entitlement to
impose the deferral, be entitled to treat all Cash Invoices which would, but for
this clause 15.3, have a Relevant Payment Date more than 21 days after the
relevant Milestone Date as Deferred Cash Invoices under this clause 15.3. Until
the relevant Top Level Milestone shall have been achieved, Cash Invoices shall
continue to be issued by the Contractor, but shall automatically become Deferred
Cash Invoices and shall not be payable so long as they remain Deferred Cash
Invoices.

The Contractor must notify ICO by facsimile within 10 days of receiving such
notification from ICO of whether it disputes ICO's entitlement to impose the
deferral. If the Contractor does not so notify ICO, then it shall be deemed to
accept that the deferral is being properly imposed by ICO in accordance with the
terms of this Agreement and the due date for payment of each of the Deferred
Cash Invoices shall

                                       21
<PAGE>   23
be 21 days following the date upon which the deferral ends (or, if later, the
date 30 days after the receipt of the relevant Deferred Cash Invoice).

If the Contractor notifies ICO that the imposition of the deferral is disputed
by the Contractor on reasonable grounds, then ICO shall upon the day falling 30
days after the date of receipt of each Cash Invoice being treated by ICO as a
Deferred Cash Invoice pay the amount of the same into the Escrow Account. The
due date for payment of each such invoice shall (if there is a Determination
that the deferral was properly imposed in accordance with the terms of this
Agreement) be 21 days following the date upon which the deferral ends (or, if
later, the date 30 days after the receipt of the invoice) or (if there is a
Determination that the deferral was not properly imposed in accordance with the
terms of this Agreement) the original Relevant Payment Date for such invoice
(and ICO shall have an obligation to pay interest to the Contractor pursuant to
clause 16.10 accordingly).

Any deferral pursuant to this clause 15.3 shall end as soon as the relevant Top
Level Milestone shall have been achieved and any Deferred Cash Invoices shall
thereupon cease to be Deferred Cash Invoices.

15.4 For the avoidance of doubt, all references in this clause 15 to a Milestone
Date shall refer to the adjusted timing of such Milestone Date as Determined
pursuant to any of the provisions in this Agreement which require or permit an
alteration to the timing of achievement of Top Level Milestones.

15.5 For the avoidance of doubt, the Price is fixed, including, without
limitation the following:

     (a)  all place of origin taxes; except that if the place of origin is in
          the same country as the Site at which the relevant Deliverable is to
          be installed or the relevant service forming part of the Works is to
          be supplied, then the Net Cost shall be calculated and the Additional
          Amount shall be added the price as set out below. The "Net Cost"
          means:

               (i)  the part of the Price attributable to such Deliverable or
                    service; less

               (ii) in the amount of any export duties that the Contractor would
                    have incurred on the export from the place of origin of such
                    Deliverable or service if it had been exported.

          The "Additional Amount" means:

               (i)  the amount of any Value Added Tax or other similar tax which
                    would have been imposed by the laws of that country on a
                    supply of that Deliverable or service to ICO for a price
                    equal (on a tax exclusive basis) to the Net Cost less

               (ii) the amount (if any) of such export duties taken into account
                    in determining the Net Cost.

     (b)  any charges relating to export licences, certificates of origin,
          export document preparation, and export packaging,

     (c)  insurance (including transit through to Sites, storage on Site,
          installation and testing);

     (d)  shipping and transportation costs;

     (e)  employee and employee-related costs of the Contractor and
          Sub-Contractors;

     (f)  all necessary licences, fees or other charges necessary for the
          performance of the Works except:

                                       22
<PAGE>   24
               (i)  licences (and their associated costs) that the Site Operator
                    requires for its operation of the ICONET Ground Facilities;
                    and

               (ii) any local and/or central or other governmental approvals and
                    permits for any civil work,

          (which licences approvals and permits referred to in paragraphs (i)
          and (ii) above shall be at the cost of ICO);

     (g)  all taxes on the goods originally sold or provided by the Contractor
          to ICO under this Agreement (except import duty and customs duties,
          including Value Added Tax or any similar sales tax (which excluded
          taxes shall be paid in accordance with clause 28) and all Value Added
          Tax and any similar sales tax on services which are not recoverable by
          the Contractor or any Sub-Contractor or any of their respective
          affiliates) incurred by the Contractor and Sub-Contractors and their
          employees associated with performing any part of the Works in the
          country where the relevant Deliverables are to be installed or where
          the services are to be provided; and

     (h)  any penalties or fines incurred by the Contractor and Sub-Contractors
          or their employees.

16 PAYMENT AND PAYMENT TERMS

16.1 The payment by ICO of any moneys to the Contractor in respect of this
Agreement shall not be deemed to be acceptance by ICO of any Works or
Deliverables in respect of which such moneys are paid.

16.2 The Contractor shall submit a Cash Invoice (and a copy invoice) to ICO for
the Cash Portion of each Instalment of the Price payable in accordance with the
Payment Schedule or clause 14 as appropriate. Each Cash Invoice shall be
accompanied by appropriate supporting paperwork. In any case where the
Instalment becomes due on shipment of any Equipment, this paperwork shall
include a copy of the bill of lading (or other equivalent document).

16.3 All of the Contractor's Cash Invoices, other than any Deferred Cash
Invoices during the period of the relevant deferral pursuant to clause 15.3,
shall, provided that the same shall be in accordance with the requirements of
this Agreement, be due and payable in United States Dollars by ICO within 30
days of the date of receipt by ICO of the Cash Invoice (the "Relevant Payment
Date").

16.4 Any invoices which are to be submitted to ICO pursuant to this Agreement
shall be addressed to the Accounts Department, ICO Global Communications
(Operations) Limited, c/o ICO Services Limited, 1 Queen Caroline Street, London
W6 9BN

16.5 In the event that ICO disputes its liability to pay the whole or any part
of a Cash Invoice or a Deferred Cash Invoice, ICO will advise the Contractor of
its dispute and (in reasonable detail) the grounds therefor (including the
Instalment(s) to which the dispute relates and the Disputed Percentages of it or
them) by no later than nine days before the Relevant Payment Date (or, the date
which would, if the invoice were not a Deferred Cash Invoice, have been its
Relevant Payment Date).

For the avoidance of doubt, in the case of a dispute relating to an invoice only
the Disputed Percentage of the Cash Portion shall be treated as disputed in
relation to the relevant Cash Invoice or Deferred Cash Invoice.

For the avoidance of doubt ICO shall by the Relevant Payment Date pay to the
Contractor those potions of any Cash Invoice which shall not be the subject of a
deferral pursuant to clause 15.3 and

                                       23
<PAGE>   25
which are not in dispute and the parties shall use reasonable efforts to resolve
any dispute concerning the Disputed Percentage of any Instalment.

16.6. This clause 16.6 applies if at any time:

     (a)  ICO disputes its liability to pay an amount invoiced in good faith by
          the Contractor in a Cash Invoice which appears on its face to have
          been calculated and to be payable in accordance with the payment
          schedule or clause 14, including without limitation any Cash Invoice
          which ICO claims that it has the right to defer pursuant to clause
          15.3 unless the Contractor accepts that claim; and

     (b)  that would result in the aggregate of all amounts so invoiced which
          are then in dispute (each a "Disputed Amount" and collectively "the
          Disputed Amounts", which expression shall for the avoidance of doubt
          in relation to any Instalment include only the Disputed Percentage of
          the Cash Portion and not the Disputed Percentage of the Financed
          Portion, if any) equalling or exceeding any Escrow Trigger Amount(s).
          If it would equal or exceed more than one Escrow Trigger Amount, then
          the higher or highest shall be the relevant one.

For the avoidance of doubt, any Cash Invoice issued by the Contractor being for
an amount not invoiced in good faith or which does not appear on its face to
have been calculated and to be payable in accordance with the Payment Schedule
or clause 14, as appropriate, shall not be payable by ICO unless and until ICO
agrees that the same shall have been properly issued and the requirement to pay
a Disputed Amount into the Escrow Account shall not apply in relation thereto.

If this clause 16.6 applies, then ICO shall (on the Relevant Payment Date for
the Cash Invoice or, in the case of a Deferred Cash Invoice, the due date for
payment of it) pay into the Escrow Account an amount sufficient to ensure that
the balance on the Escrow Account relating to Disputed Amounts under this Clause
16 (after deduction of any amounts which either ICO or the Contractor is then
entitled to have paid to it pursuant to clause 16.7) equals or exceeds the
relevant Escrow Trigger Amount.

16.7 The parties shall in the Escrow Agreement jointly instruct the Escrow Agent
to hold the balance on the Escrow Account in accordance with the relevant
provisions of this Agreement.

If there is a Determination, that any Disputed Amount or any part thereof is
payable to the Contractor (either because any deferral under clause 15.3 was not
in accordance with the terms of this Agreement, the dispute was otherwise
ill-founded, relevant outstanding Works giving rise to a disputed deferral
have been completed as referred to in clause 15.3 or the cause of the dispute
has been remedied), then ICO shall join within 5 days of the date of the
Determination with the Contractor in instructing the Escrow Agent to make a
payment out of the Escrow Account to the Contractor of any amount held in the
Escrow Account in respect of that Disputed Amount (or the appropriate part
thereof), together with any interest earned on that amount. This payment shall
be applied in or towards satisfaction of any liability of ICO in respect of the
relevant Disputed Amount (and interest accrued pursuant to clause 16.10 upon
it) pursuant to clause 16.8 or, as the case may be, clause 16.9.

If there is a Determination that any Disputed Amount or any part thereof is not
payable by ICO to the Contractor or that ICO was entitled to make a deferral
pursuant to clause 15.3 which the Contractor has challenged, then the Contractor
shall join within 5 days of the date of the Determination with ICO in
instructing the Escrow Agent to make a payment out of the Escrow Account to ICO
of any amount held in the Escrow Account in respect of that Disputed Amount (or
the appropriate part thereof) or, as the case may be, that deferral, together in
either case with any interest earned on that amount in the Escrow Account.

                                       24
<PAGE>   26
16.8 If there is a Determination that any dispute raised by ICO against all or
part of an Invoice was ill-founded or that a deferral pursuant to clause 15.3
was not in accordance with the terms of this Agreement, then ICO shall within 9
days of the date of the Determination pay to the Contractor any balance of the
Disputed Amount found by the Determination to be payable to the Contractor
together with interest thereon calculated in accordance with clause 16.10, after
taking account of any payment to be made to the Contractor out of the Escrow
Account pursuant to clause 16.7 as a result of that Determination and the
Relevant Payment Date of the Disputed Amount in this case shall be the date 30
days after the date of ICO's receipt of the original Cash Invoice.

16.9 If there is a Determination that payment be made to the Contractor for any
reason other than as is referred to in clause 16.8 then ICO shall within 9 days
of the date of the Determination pay to the Contractor any balance of the
Disputed Amount found by the Determination to be payable to the Contractor
together with interest thereon calculated in accordance with clause 16.10, after
taking account of any payment to be made to the Contractor out of the Escrow
Account pursuant to clause 16.7 as a result of that Determination. Interest
shall run pursuant to clause 16.10 as if the Relevant Payment Date were the date
of the Determination. A payment by ICO pursuant to this clause 16.9 shall not
prevent the Contractor from continuing to seek a Determination as referred to in
clause 16.8 that the dispute was ill-founded or that the deferral was not
properly imposed under clause 15.3 (which Determination would entitle it to the
payment of interest pursuant to clause 16.10 from the original Relevant Payment
Date).

16.10 Any sums not paid by one party when due shall bear interest from the
Relevant Payment Date, or if different or if there is no Relevant Payment Date
the due date for payment, until the other party receives payment (whether before
or after judgement) at the Agreed Rate. Such interest shall accrue from day to
day on the basis of a 360 day year and shall be payable with the sum to which it
relates and, if that sum is overdue, on demand.

16.11 All payments to be made under this Agreement to the Contractor shall be
made:

     (a)  for value on the Relevant Payment Date (or such other date as may
          apply pursuant to this Agreement) from the Cayman Islands to such
          account at such bank in Tokyo as the Contractor may specify from time
          to time; and

     (b)  in full without any set-off, withholding, deduction or counterclaim of
          any kind, except for any tax deduction imposed by Cayman Islands law
          on any payment from the Cayman Islands to Japan; but for the avoidance
          of doubt, this is without prejudice to clause 16.12.

If any payment to the Contractor under this Agreement from the Cayman Islands to
Japan is required by applicable law to be made subject to a tax deduction or
withholding, then ICO shall:

     (a)  ensure that it accounts for the same to the relevant authority as and
          when required by law; and

     (b)  promptly provide to the Contractor a certificate of deduction and such
          other documents as the Contractor may reasonably require to evidence
          that payment has been made subject to such deduction.

16.12 If at any time ICO considers that the Contractor is in default of its
obligations under this Agreement and as a result an amount is due to be paid by
the Contractor to ICO, then if the amount involved exceeds $1 million and if ICO
has given the Contractor no less than 9 days' notice of its intention to do so,
ICO may deduct the amount claimed from any payment that it is making to the
Contractor of any one or more Cash Invoice(s) then or subsequently falling due
for payment and instead pay the whole of that amount into the Escrow Account.

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<PAGE>   27
If there is a Determination that all or part of the amount claimed by ICO, in
respect of which the payment into the Escrow Account was made, was due to ICO by
the Contractor, then the Contractor shall within 5 days of the Determination
join with ICO in instructing the Escrow Agent to pay out of the Escrow Account
to ICO the amount so due, together with interest earned on that amount in the
Escrow Account; and upon the Contractor joining in that instruction the
liability which led to the payment into the Escrow Account being made by ICO
shall be discharged in an amount equal to the amount in respect of which that
instruction is given, whether or not the Escrow Agent actually makes the
payment.

If there is a Determination that all or part of the amount claimed by ICO and
paid into the Escrow Account was not due to ICO, then ICO shall within 5 days of
the Determination join with the Contractor in instructing the Escrow Agent to
pay out of the Escrow Account the amount which was not so due, together with
interest earned on that amount in the Escrow Account and ICO shall pay to the
Contractor an additional amount such that the Contractor receives in total the
amount which it should have been paid on the Relevant Payment Date for the Cash
Invoice(s) against which ICO made such deductions when paying monies into the
Escrow Account together with interest on such amount at the Agreed Rate from the
Relevant Payment Date up to the date of actual payment.

16.13 The parties have agreed in principle, subject to contract, that part of
the aggregate total price payable under this Agreement (excluding any adjustment
to such price whether referred to in clause 15.1 or not) shall be financed by
the Contractor. A summary of the terms and conditions reflecting this in
principle agreement ("the Vendor Financing Summary") is set out as Schedule 10.

Clause 16.14 shall apply if, but only if, and from the time that the parties
enter into a legally binding agreement ("the Vendor Financing Agreement")
reflecting (with such amendments as may be agreed) that Vendor Financing
Summary. The parties agree to negotiate in good faith the terms and conditions
of the Vendor Financing Agreement with a view to completing the anticipated
vendor financing within the spirit of the Vendor Financing Summary by the end of
1997.

16.14 Each Financed Invoice issued by the Contractor shall relate to the
Financed Portion of one or more Instalments in respect of which a Cash Invoice
has been issued. The Contractor shall not issue a Financed Invoice in respect of
an Instalment where ICO shall, in relation to the corresponding Cash Invoice,
have disputed its liability to pay 100% of the relevant Instalment until
Determination of such dispute. The Contractor shall not include in any Financed
Invoice any Disputed Percentage of the Financed Portion of an Instalment until,
and then only to the extent that there is a Determination that the relevant
amount of the Instalment was due.

ICO shall only be entitled to challenge the amount of a Financed Invoice or the
Contractors entitlement to issue it on the ground that it is not issued in good
faith, it is inconsistent with a Cash Invoice which relates to one or more of
the same Instalments or that it appears on its face to be inconsistent with the
Payment Schedule. A Financed Invoice shall fall due for payment at the time
stated in, shall bear interest which shall be payable in accordance with and
shall otherwise be subject to the Vendor Financing Agreement.

Clauses 15.2 and 15.3 shall not apply to the Financed Portion of any Instalment
with the intention that the Financed Invoices to be issued at the end of each
quarter pursuant to the Vendor Financing Agreement shall include the Financed
Portion of any Instalment in respect of which a Cash Invoice would, but for
clauses 15.2 and 15.3, have been issued in that quarter.

The first two sentences of clause 16.2 and clause 16.4 shall apply to Financed
Invoices as if they were Cash Invoices except to the extent specifically
referred to in this clause 16.14. The other provisions of clauses 16.1 to 16.12
inclusive shall not apply to Financed Invoices (although the Vendor Financing
Agreement may include analogous provisions). For the avoidance of doubt, nothing
in this Agreement shall result in a Financed Invoice which is payable in
accordance with the terms of the Vendor Financing Agreement not being payable.

                                       26
<PAGE>   28
16.15 The Vendor Financing Summary provides for ICO to pay a
management/commitment fee to the Contractor in respect of the proposed vendor
financing, such fee to be payable in two instalments, the second one together
with interest. ICO confirms that the obligations as to payment of that fee are
legally binding on it, notwithstanding that the Vendor Financing Summary is
expressed to be subject to contract.

16.16 The parties shall immediately upon the choice of the Escrow Agent and the
settlement of the terms of the Escrow Agreement enter into the Escrow Agreement
with the Escrow Agent. Neither party shall upon or after joining in an
instruction to the Escrow Agent to make a payment to the other party out of the
Escrow Account take any action directly or indirectly to prevent payment being
made to the recipient party pursuant to such instructions.

16.17 To the extent that any payment made by ICO out of the Escrow Account is
made because there has been a Determination that ICO was correct in disputing a
Cash Invoice in whole or in part or was entitled to impose a deferral pursuant
to clause 15.3, then such payment shall not be deemed for any purpose to be a
payment made by the Contractor to ICO.

16.18 For the avoidance of doubt, the provisions of clauses 15.2, 15.3 and 16
shall apply in relation to payments due under clause 14.

17 PAYMENT OF REIMBURSABLE COSTS

17.1 The Contractor shall submit (substantially in the relevant approved form
set out in Schedule 4 and containing the same information) monthly invoices for
costs which are agreed to be reimbursable by ICO to the Contractor under this
Agreement. Such invoices shall have attached the original documents (or copies
of the documents certified by the Contractor) evidencing the amounts claimed by
the Contractor for reimbursement.

17.2 Amounts claimed by the Contractor for reimbursement pursuant to this clause
17 shall be net of any amounts (including, for the avoidance of doubt,
offsetable amounts such as VAT or other sales taxes) which the Contractor or any
of its Sub-Contractors have the right to reclaim from parties other than ICO,
whether or not such claim has been made or received provided that if, subject to
the Contractor or its Sub-Contractors following its or their usual collection
procedures, any amount reclaimed by the Contractor or its Sub-Contractors which
has not been received from such third party within 90 days of the date of the
Contractor's invoice to ICO in which the right to such reclaim was taken into
account, the Contractor shall be entitled to include such reclaimed amount in
its next monthly invoice to ICO. If subsequently the Contractor or any of its
Sub-Contractors receive such reclaim from the third party, the Contractor shall
account to ICO for any sums so recovered without delay.

17.3 ICO shall submit invoices for costs which are agreed to be reimbursable by
the Contractor. Such invoices shall have attached the original documents (or
copy documents certified by ICO) evidencing the amounts claimed by ICO for
reimbursement.

17.4 Amounts claimed by ICO for reimbursement pursuant to this clause 17 shall
be net of any amounts (including, for the avoidance of doubt, offsetable amounts
such as VAT or other sales taxes) which ICO has the right to reclaim from
parties other than the Contractor, whether or not such claim has been made or
received provided that if, subject to ICO following its usual collection
procedures, any amount reclaimed by ICO has not been received from such third
party within 90 days of the date of ICO's invoice to the Contractor in which the
right to such reclaim was taken into account. ICO shall

                                       27
<PAGE>   29
be entitled to invoice the Contractor for such reclaimed amount. If subsequently
ICO receives such reclaim from the third party, it shall account to the
Contractor for any sums so recovered without delay.

17.5 The provisions of clauses 16.3 to 16.11 inclusive and 16.17 shall apply to
this clause 17 mutatis mutandis, and for the avoidance of doubt for these
purposes payments by the Contractor to ICO shall be treated in the same way as
payments by ICO to the Contractor.

18. LIQUIDATED DAMAGES AND INCENTIVE PAYMENT

18.1 In the event that the Contractor fails to satisfy all of the Level 2
Acceptance Criteria by the Level 2 Acceptance Date, then the Contractor shall be
liable to pay, upon ICO's demand in writing, to ICO (without deduction or
withholding) liquidated damages calculated as the amount (which shall never
exceed   *   in aggregate of the total amount of the Price) found by   *   and
multiplying the result by the number of days of delay during the period
commencing with the date failing 30 days after the Level 2 Acceptance Date and
ending on the Level 2 Handover Date.

18.2 In the event that the Level 2 Handover Date shall occur on or before 9
September 2000, then ICO shall pay to the Contractor within 30 days following
the receipt of the Contractor's invoice a bonus payment by way of addition to
the Price calculated as the amount (which shall never exceed   *   .

PART D - PROGRESS REPORTING

19 MILESTONES AND PROGRESS REPORTING

19.1 ICO and the Contractor have agreed the Top Level Milestone Schedule (being
Schedule 7), which designates particular Milestones as Top Level Milestones and
specifies the date for the achievement by the Contractor of such Top Level
Milestones.

19.2 In accordance with the progress monitoring procedure established in Annex 4
of the Statement of Work, the Contractor shall report regularly on, and produce
such other evidence as ICO may reasonably request to demonstrate, the actual
progress of the Works as compared with the Master Level Schedule and Schedule 7.

19.3 Schedule 7 also contains other Milestones which, if not achieved by the
specified dates, may affect the Contractor's ability to achieve the Top Level
Milestones in accordance with Schedule 7. If ICO's failure to achieve any
Milestone, which is identified in Schedule 7 as being the responsibility of ICO,
has a direct effect upon the ability of the Contractor to achieve any Top Level
Milestone, then to the extent that the Contractor can demonstrate the same to be
required, Schedule 7 shall be adjusted in an equitable manner.

19.4 Any changes required to Schedule 7 shall be agreed in accordance with
clause 58.

19.5 If in ICO's reasonable opinion actual progress of the Works does not
conform generally with the Master Level Schedule or achievement of a Top Level
Milestone has been or may be delayed, and if delayed, ICO has notified the
Contractor in accordance with clause 15.3, then ICO may require the Contractor:

     (a)  to submit a report to ICO identifying the reasons for the delay and
          the Contractors proposal for catching up with that delay; and/or

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

                                       28
<PAGE>   30
     (b)  to produce and submit a revised Master Level Schedule to ICO showing
          how the Contractor proposes to ensure completion of the relevant Works
          by the relevant Milestone Date or, where a relevant Top Level
          Milestone has not or will not be achieved, how the Contractor proposes
          to ensure completion of the relevant Works without adversely affecting
          the Master Level Schedule and the achievement of the remaining Top
          Level Milestones by the relevant Milestone Dates.

19.6 If the Contractor is unable to satisfy ICO that it is able to complete the
relevant Works by the relevant Milestone Date or, as the case may be, that it is
able to complete all or any of the relevant Works without adversely affecting
the Master Level Schedule and the achievement of the remaining Top Level
Milestones by the relevant Milestone Dates, ICO shall have the right, with no
corresponding adjustment being made to the Price, to require the Contractor to
commit such extra resources (including any resources required to supplement the
NEC Team's own and then committed resources and expertise) as are necessary to
complete the relevant Works by the relevant Milestone Date or, as the case may
be, to complete all or any of the relevant Works without adversely affecting the
Master Level Schedule and the achievement of the remaining Top Level Milestones
by the relevant Milestone Dates.

19.7 If in extreme circumstances ICO considers that the Contractor is or will be
unable to complete all or any substantial aspect of the Works in accordance with
the Master Level Schedule and the achievement of the remaining Top Level
Milestones by the relevant Milestone Dates and the Contractor has failed to take
all appropriate actions called for by ICO under clause 19.6, then, if supported
by the opinion or recommendation of an independent expert appointed in
accordance with this clause 19.8, ICO may require the Contractor to (and the
Contractor shall be obliged to):

     (a)  replace any of the Sub-Contractors (including the other members of the
          NEC Team); and

     (b)  take such other actions as ICO may reasonably determine to be
          necessary in the circumstances.

19.8 Any independent expert required to be appointed for the purposes of clause
19.7 shall be appointed either by agreement between the parties within 21 days
of a request by ICO or, in the absence of such agreement within such period,
shall consist of a committee of three experts to be selected by lot from amongst
up to six nominees of whom up to three shall have been put forward within seven
days of the expiry of such 21 day period by each of ICO and the Contractor. Any
person nominated as an expert shall be entirely independent of the parties, the
other members of the NEC Team of any Sub-Contractors and any Site Operators.

[20] NOT USED.

[21] NOT USED.

22 PROGRESS INSPECTION

22.1 Subject to any applicable legal restrictions in effect in the country of
manufacture, ICO has the right to inspect and verify the progress of all
elements of the Works at all places and times prior to the completion of Phase 3
Testing of the relevant item or component and its handover to and acceptance by
ICO and for such purposes shall be permitted access to the premises of the
Contractor and its Sub-Contractors (excluding any Sub-Contractor who shall not
have been required to enter into a direct undertaking with ICO pursuant to
clause 11). ICO will give 14 days notice of its intended inspections to the
Contractor. Such inspections shall be performed in a manner that will not unduly
delay the Works. Any such inspections and verifications as are required shall be
authorised by the Supervising Officer.

                                       29
<PAGE>   31
22.2 If any such inspections and verifications are to be made on the premises of
the Contractor any Sub-Contractor (excluding any Sub-Contractor who shall not
have been required to enter into direct undertaking with ICO pursuant to clause
11), the Contractor shall furnish, and shall require such Sub-Contractors to
furnish, without additional charge, all reasonable facilities and assistance for
the safe and convenient performance of these inspections and verifications.

22.3 The Contractor shall furnish or procure to be furnished to ICO such copies
of orders. specifications, drawings, any technical information and documents as
ICO may reasonably require to. perform progress supervision.

22.4 When any elements of the Works which ICO has, in accordance with clause
22.1 notified the Contractor of its wish to inspect are not, at the relevant
time specified by ICO, ready for inspection, review or evaluation, ICO may
charge to the Contractor the reasonable costs incurred by ICO Staff attending at
the relevant premises for the purposes of such inspection, review or evaluation
and such costs shall be reimbursed to ICO in accordance with clause 17.

22.5 Any inspection and/or test and/or examination made. or attended by ICO
Staff under this clause shall not relieve the Contractor of its responsibility
to conform to the requirements of this,, Agreement.

23 INTERMEDIATE PROGRESS REVIEW

23.1 In relation to each of the sub-systems referred to in Schedule 11 (Payment
Schedule) comprising part of the Deliverables, the Contractor shall not despatch
any of such Deliverables from their respective places of origin to the Sites
until such time as the relevant sub-system shall have successfully completed all
of the Phase 1 Tests referred to in Section 5.1 of Annex 8A to the Statement of
Work.

23.2 The Contractor shall not proceed with any of the Phase 3 Tests referred to
in Sections 5.4.5 to 5.4.7 of Annex 8A to the Statement of Work in relation to
any of the Sites (excluding those referred to under paragraphs 3, 4 and 5 of
Section 5.4.5) unless at that Site and in relation to such Deliverables the
Level 1 Acceptance Criteria specified in Annex 10 to the Statement of Work shall
have been satisfied in respect of the immediately preceding Phase 3 Test
mentioned in Sections 5.4.5 to 5.4.7 referred to above (provided that nothing in
this clause 23.2 shall prevent the Contractor from commencing the first of the
Phase 3 Tests mentioned in that section.)

23.3 ICO shall, in its absolute discretion, be entitled to waive compliance with
the timing requirements of clauses 23.1 and 23.2 in whole or in part and subject
to such terms and conditions as it may think fit, but any such waiver shall not
excuse or relieve the Contractor in any way from the requirement to ensure that
the relevant Deliverables satisfy the relevant Phase 1 or Phase 3 Tests.

[24] NOT USED.

PART E - DELIVERY AND INSTALLATION

25. SITE ACCESS

25.1 ICO Shall, no later than 4 weeks before the Ready for Installation Date for
each Site established in the Master Level Schedule, advise the Contractor of the
anticipated availability of the Site on the scheduled Ready for Installation
Date.

25.2 If ICO can reasonably foresee that the actual availability of a Site will
be later than the scheduled Ready for Installation Date, the parties shall meet
to determine the consequences to the

                                       30
<PAGE>   32
Contractor's delivery and installation programme and the action that can be
taken to mitigate such consequences shall be agreed in a Change Order in
accordance with clause 9.

26   TRANSPORTATION TO SITE

26.1 The Contractor shall have sole responsibility for the shipment and
transportation of the Deliverables from the place of manufacture to, and
unloading and placing into suitable and secure storage at, a port of destination
in, and as selected by the Contractor, the country of the relevant Site. The
Contractor shall promptly upon arrival of the Deliverables at the port of
destination notify ICO in writing, and any agents designated by ICO, of the
storage location of the Deliverables.

26.2 ICO shall promptly arrange for customs clearance of the Deliverables at
such port of destination in accordance with clause 28.

26.3 Following customs clearance in accordance with clause 28, the Contractor
shall have sole responsibility for, and shall arrange promptly, inland
transportation from an ICO designated location at the relevant port of
destination to the relevant Site.

26.4 The Contractor shall arrange shipment and transportation for the
Deliverables to each of the Sites with reliable shipping and transportation
contractors experienced in carrying products of the type of the relevant
Deliverables.

26.5 The Contractor shall, 30 days before despatch of any of the Deliverables to
the relevant port of destination as referred to in clause 26.1, notify ICO of
the intended date of despatch, the mode(s) of transport and the destination of
the relevant Deliverables together with such other information as ICO may
reasonably require to assist ICO In arranging for customs clearance.

26.6 The Contractor shall not, without informing ICO, arrange for any of the
Deliverables to be shipped to Sites via third countries. The Contractor shall
not arrange for any Deliverables to be shipped via a third country if by doing
so any delays or adverse treatment in Importation or customs clearance will
result or may reasonably be anticipated. Notwithstanding having informed ICO of
any shipment via third countries, the Contractor will be liable for any
penalties imposed upon ICO by virtue of the shipment via such third countries.

27 PACKAGING

27.1 The Contractor shall be responsible for packing all the Deliverables in a
manner which, taking into account all hazards which may reasonably be
anticipated, will enable them to be transported from their point of origin to
the Site and stored at the Site without suffering any accidental damage,
environmental damage or deterioration. The Contractor shall be responsible for
replacing at its own cost, without impact to the Top Level Milestone Schedule,
any of the Deliverables which are damaged in transit and for reimbursing ICO for
any expenses it incurs as a consequence of improper packing, marking or method
of shipment.

27.2 The Contractor shall pack, mark and ship all items and components of the
Deliverables in accordance with the requirements of this Agreement and so as to
be in compliance with best commercial practice for protection and shipment and
for meeting transportation regulations. A packing list shall be included with
each shipment and a copy thereof transmitted to ICO by fax at the time of
despatch from the point of origin (or where the despatch is made by a
Sub-Contractor, the Contractor shall transmit such copy within 48 hours of the
time of despatch) and each delivery package shall be marked and cross referenced
to such packing list.

27.3 The Contractor shall, following delivery, remove from each Site all packing
materials and dispose of, reuse or recycle the same in a manner lawful in the
relevant country. No separate or additional

                                       31
<PAGE>   33
charges are payable by ICO for safe packing, handling or storage transit except
as provided in clause 28.

28 CUSTOMS CLEARANCE

28.1 ICO shall be responsible for all customs clearances and other importation
formalities which relate to any of the Deliverables in the country in which the
Site at which the same are to be installed is situated.

28.2 ICO shall pay all import and custom duties (including VAT or any similar
sales tax), customs clearance charges and fees (including any storage costs
incurred during the import and customs clearing process), incurred in connection
with the importation of the relevant Deliverables in the country in which the
Site at which the same are to be installed is situated, The Contractor shall,
when requested by ICO and subject to clause 28.5, use its reasonable efforts to
assist ICO in obtaining customs clearance of, and in satisfying any other
importation formalities relating to, the Deliverables at the port of
destination.

28.3 The Contractor shall on a timely basis provide ICO with originals, or where
appropriate copies, of:

     (a)  all relevant shipping documents;

     (b)  manufacturing certificates,

     (c)  fully completed applications for import clearances: and

     (d)  if required, other usual customs clearance and importation
          documentation if required for the importation of goods into the
          relevant country,

relating to the Deliverables for signature and submission by ICO (where
appropriate).

28.4 No later than 60 days prior to the scheduled shipment to the relevant
country of the Deliverables as shown in the Master Level Schedule, ICO shall
inform the Contractor of any special requirements to be applied or followed in
respect of the importation of such Deliverables to the relevant country and the
Contractor shall meet such special requirements.

28.5 If the Contractor shall 'in providing the additional assistance requested
by ICO under clause 28.2 or in fulfilling any special requirements notified
under clause 28.4 incur additional cost then, subject to supplying to ICO
reasonable evidence of such additional costs incurred, ICO shall reimburse the
same to the Contractor in accordance with clause 17.

28.6 In the event that any objections or difficulties are anticipated or
encountered in any country which might result in the customs clearance or
importation procedures of the relevant Deliverables being delayed beyond 15 days
after arrival for customs clearance of the relevant Deliverables in the relevant
country (commencing with the first working day in that country after that on
which the Contractor shall have provided notification in accordance with clause
26.1 and the documentation referred to in clause 28.3), ICO shall promptly
notify the Contractor of the nature and cause of the delay (if known).

28.7 The Contractor shall identify and assess as soon as possible after
receiving any notification under clause 28.6 any negative effects upon the
Master Level Schedule and the parties shall discuss the appropriate and
necessary action to minimise such effects.

28.8 If customs clearance or the importation of any of the Deliverables into the
country in which the Site at which the same are to be installed is situated is
delayed beyond the period specified in clause 28.6 and the Contractor shall have
fully complied with its obligations under clauses 26 to 28 inclusive in

                                       32
<PAGE>   34
relation to such Deliverables then, subject to the Contractor demonstrating to
the reasonable satisfaction of ICO that the, delay in the importation or customs
clearance of the relevant Deliverable was the direct cause of an actual delayin
the Top Level Milestone Schedule (as it relates to the Site for which such
Deliverables were intended and to any consequential effect on the relationship
between that Site and any other Sites) shall be adjusted for a period not to
exceed the lesser of:

     (a)  the actual period of delay in the Top Level Milestone Schedule
          resulting directly from the delay in importation or customs clearance
          of the relevant Deliverables; or

     (b)  the number of days in excess of the period referred to in clause 28.6
          which were required for actual importation or customs clearance of the
          relevant Deliverables to be achieved.

28.9 For the avoidance of doubt, ICO shall not be responsible for and clauses
28.1 to 28.8 shall not apply to:

     (a)  the importation by the Contractor or any Sub-Contractor of any
          installation and test tools, equipment, materials or other effects
          (including personal) in connection with this Agreement; or

     (b)  any Deliverables which are imported more than once into any country in
          which a Site at which the same are intended to be installed is
          situated, whether the second or subsequent importation is into the
          same or any other country to the initial importation, otherwise than
          as a result of a direction by ICO.

28.10 In the event that any of the circumstances in clause 28.9(b) apply;

     (a)  ICO shall at the Contractor's request assist the Contractor in, and in
          appropriate circumstances handle on behalf of and at the expense of
          the Contractor, the importation and customs clearance of the relevant
          Deliverables; and

     (b)  the Top Level Milestone Schedule shall not be extended even if delays
          or difficulties are encountered in the customs clearance or
          importation procedures.

29 INSURANCE

29.1 The obligations in this clause 29 shall apply until such time as risk in
the relevant Deliverable pass to ICO. The Contractor shall as from the time of
creation of all or any part, including 'components, of the Deliverables maintain
insurance against loss, damage or destruction for all of the Deliverables then
in existence for their full replacement cost, including costs associated with
expedited repair or replacement and delivery to, and installation at, the
location where the affected Works are being, or are to be, performed.

29.2 The Contractor shall, in the event of the loss, damage or destruction of
any of the Deliverables at any time before the Level 2 Handover Date or the
Handover Date (as the case may be) of the relevant Deliverable, use its best
efforts to procure the provision of any repair or replacement for any of the
Deliverables or any component thereof and to take such other actions as the
Contractor deems appropriate in order to avoid or to minimise all adverse
effects on the Master Level Schedule and the Top Level Milestones as a
consequence of the loss, damage or destruction of any Deliverables.

29.3 ICO shall be nominated as joint insured in respect of all of such
Deliverables and their components and shall be loss payee. Within three months
of the date of this Agreement ICO shall grant

                                       33
<PAGE>   35
to the Contractor an appropriate power of attorney enabling the contractor to
negotiate with, settle and collect any claims from the insurers of any of the
Deliverables or any carriers, bailees and/or other parties responsible for loss
or damage to any part or component of the Deliverables. The Contracts shall hold
any amount so received in trust on behalf of ICO until the same shall be applied
in payment for any repair or replacement Deliverables or shall be paid to ICO.

29.4 ICO at its sole discretion may direct that the Contractor not proceed with
the repair or replacement and delivery as provided in clause 29.2 and instead
require that the Contractor and ICO cooperate to procure that the proceeds of
insurance be paid directly to ICO and the Contractor will not be required to
proceed with any such repair or replacement or delivery.

29.5 To the extent that ICO's direction under clause 29.4 shall adversely affect
the ability of the Contractor to comply with the Top Level Milestone Schedule
and any applicable Top Level Milestones, to the extent that either party can
demonstrate the same to be required, the provisions of this Agreement (including
if necessary the Payment Schedule, the Top Level Milestone Schedule and Top
Level Milestones) shall be adjusted in an equitable manner.

29.6 The Contractor shall produce evidence (and an English translation) to ICO
of its compliance with clauses 29.1 and 29.3 from time to time upon request and
no less frequently then once a year within one month following the renewal date
of the Contractor's policy.

30 OWNERSHIP

Ownership of the Deliverables shall pass to ICO upon the relevant Deliverable
being loaded on board a ship, aircraft or other means of transport bound for
export from the country of origin provided that where any Site is located in the
country of origin, ownership shall pass upon the relevant Deliverable arriving
at the relevant Site.

31 DELIVERY

31.1 The Contractor shall be responsible for the delivery of the Deliverables to
the Sites in accordance with the Statement of Work and the Master Level
Schedule. The Contractor shall provide all materials, plant, equipment and
labour required to receive, off-load and place the Deliverables in position at
the Sites.

31.2 Upon arrival of each consignment or shipment of the Deliverables at each
Site, the Contractor shall examine and confirm to ICO the identity of the
Deliverables which have been delivered and that they are in good condition and
ready for installation or, if this is not the case, what the position then is.
The Contractor shall also identify to ICO any Deliverables which have been
scheduled for delivery at that Site by that time but which have not then been
delivered (or which have been delivered but are either defective or damaged and
in need of replacement or repair) and, promptly, the Contractor shall deliver to
ICO a report setting out the impact on the Master Level Schedule and for
completing the Works and all applicable testing requirements at that Site on or
before the scheduled date for completion of the same and any remedial actions
which the Contractor intends to implement.

32 INSTALLATION

32.1 The Contractor shall at each Site carry out the Works in accordance with
the Statement of Work and the IGFR, using a safe system of working and in
compliance with all local laws.

32.2 The Contractor shall (within a reasonable time taking into account the
nature of the damage), in a good and workmanlike fashion, repair or replace any
damage to the Site (including any of the buildings. fixtures, fittings or other
equipment on the Site) or to any of the Deliverables in the course of any aspect

                                       34
<PAGE>   36
of the installation of any of the Deliverables which has been caused by the
Contractor or any SubContractors.

32.3 Save for those items specified in Annexes 2, 3 and 9 of the Statement of
Work, the Contractor shall be responsible for providing. or procuring the
provision, of all equipment. tools, consumables. spares and all other materials
and services required for the carrying out of the Works and the installation of
the Deliverables at all Sites. With respect to those items of equipment, tools,
materials. and services required for the installation of the Equipment and
Software which ICO is responsible for providing to, or procuring to be made
available for use by, the Contractor. as specified in Annexes 2, 3 and 9 of the
Statement of Work, the Contractor shall be responsible for the proper care and
maintenance (including any losses or damages) of all such items and shall,
following the completion of the Works for which they are required, return all
such items to ICO at such location(s) as ICO may reasonably specify in the same
condition as they were provided (save where consumed in the case of consumables
or for normal wear and tear) and recalibrated if appropriate. The Contractor
shall be responsible for the costs of all transportation and insurance
associated with the provision by ICO to, and use and return to ICO of such items
by, the Contractor.

32.4 The Contractor shall ensure that its employees, its Sub-Contractors and
their employees observe all relevant laws regulations and practices relating to
the Sites and shall remove forthwith from the relevant Site, with or without the
request of ICO, any such persons failing to abide by any of these requirements.

32.5 The Contractor acknowledges that the Sites on which the Works will occur
and adjoining land may have other existing equipment and operations which may be
carried out concurrently by third parties. The Contractor shall take all
reasonable and necessary actions (including the co-ordination of its activities
on any Site with any other activities of others affecting the same Site or any
adjoining land) so as to prevent such other existing equipment and concurrent
operations from suffering any damage or adverse effects as a result of the
Contractor's activities. In the event that the Contractor's activities cause any
damage to existing equipment or adversely affect other concurrent operations,
the Contractor shall immediately stop the activities giving rise to any such
damage or adverse effect and, in consultation with ICO or such other person as
ICO may direct, implement such remedial action as may be necessary to repair,
replace or rectify the damaged equipment or to prevent the adverse effect upon
concurrent operations.

32.6 The Contractor shall throughout the process of installation keep the Sites
in a clean and tidy condition and shall be responsible for keeping the Sites
free from rubbish and contamination arising as a consequence of its activities.
Following completion of the installation of the relevant Deliverables at each
Site, the Contractor shall promptly remove its effects, personnel (other than
those with a role continuing after installation), spare materials, plant,
machinery and any rubbish or other debris. The Contractor shall leave the Site
in a clean condition, ready to commence operations.

33 TESTING

33.1 The Contractor acknowledges that it must and undertakes that it will within
the timescales contemplated by this Agreement deliver to ICO fully integrated
and tested ICONET Ground Facilities capable of fulfilling the IGFR and the
Statement of Work.

33.2 In order to establish that the Works and the Deliverables are capable of
providing a fully functioning service, testing and retesting of each element is
required. The Contractor must ensure that the testing procedure set out in the
Statement of Work is fulfilled and ICO Staff shall be permitted to observe and
review any and all of the formal and informal tests referred to in Annex 8A of
the Statement of Work.

33.3 In the event that any part of the Deliverables shall fail any formal test
(as described in Annex 8A of the Statement of Work) as is referred to in clause
33.2 for any reason, the test procedures shall,

                                       35
<PAGE>   37
after a reasonable opportunity for the Contractor to remedy the cause of such
failure, be restarted the discretion of ICO to a reasonable point to demonstrate
the functionality and/or the reliability of z-. Deliverables concerned.

33.4 The Contractor shall inform or confirm to ICO in writing (as appropriate)
at least 14 days in advance the date, time and location of all formal tests (as
described in Annex 8A of the Statement of Work).

33.5 In the event that any of the formal tests specified above:

     (a)  do not occur within 48 hours of the time scheduled for such test:

     (b)  is cancelled by the Contractor or Sub-Contractor with less than 48
          hours notice to ICO: or

     (c)  is carried out and the relevant Deliverable shall fail the such test
          and the same cannot

be reperformed within 48 hours of the time it failed and ICO requests that it be
retested pursuant to clause 33.3, then the Contractor will reimburse ICO for any
reasonable costs and expenses incurred in attending the tests or inspection.

34 RFT HANDOVER

34.1 In relation to such part of the Deliverables as comprise RFTs for use in
the six TT&C Sites which ICO has designated as the TT&C Sites as set out in the
Statement of Work, the provisions of this clause shall apply.

34.2 On or before the RFT Availability Date applicable to each TT&C Site, the
Contractor shall ensure that (i) at such Site, two (or at the Contractor's
discretion any greater number) of the RFTs will be installed; (ii) all of those
RFTs that have been installed have successfully completed their Phase 2-1
Testing (as referred to in Annex 8A of the Statement of Work); (iii) all of the
required training at such Site shall have been provided to ICO Staff necessary
to train them to operate such RFTs competently, (iv) the required documentation
relating thereto as specified pursuant to the Statement of Work has been
supplied to ICO; and (v) the provisions set out in the IGFR and the Statement of
Work relating to such RFTs shall have been complied with.

34.3 The Contractor shall for a continuous period of three weeks following the
RFT Availability Date applicable at each of the Sites (other than the first Site
to be made available and at the IOT Site, where such continuous period shall be
six weeks) provide engineering support and assistance to ICO -Staff at such time
as may be established by ICO at anytime falling within the period of three
months following the RFT Availability Date (provided that if such time shall not
be immediately following the RFT Availability Date applicable to the relevant
Site, ICO shall give the Contractor at least two weeks prior written notice of
the time at which such support and assistance is required), for the integration
of all of the installed RFTs with ICO's satellite TT&C and IOT systems so that
the same can, by the end of such integration period, be made ready for operation
and use by ICO as a satellite telemetry, tracking and control site assuming that
the TT&C and IOT systems meet their respective Interface Control Documents.

34.4 on the relevant RFT availability date, the contractor shall make available
for use by ICO at the relevant TT&C Site two of the RFTs and shall procure that
at all times between the relevant RFT Availability Date and the Level 2 Handover
Date ICO has at each TT&C Site a minimum of two RFTs continuously available for
use and operation in a fully functional mode, in connection with ICO's TT&C and
IOT activities.

                                       36
<PAGE>   38
34.5 Without affecting the requirements of clause 34.4, following the RFT
Availability Date and Reinstallation and successful Phase 2-1 Testing of any of
the remaining RFTs at any TT&C Site, the Contractor shall make such other RFTs
available for use by ICO in connection with ICO's TT&C and IOT operations at a
single time of the Contractor's choosing and shall, at each TT&C Site, provide
for a continuous period of three weeks engineering support and assistance to ICO
Staff for integration of the RFTs with ICO's satellite TT&C systems. Any such
RFT shall not, for the remaining provisions of this clause, be regarded as
available to ICO until the provision of such engineering support and assistance
has been completed.

34.6 ICO acknowledges that at certain times the Contractor will need to carry
out testing at the Site of the Deliverables comprising the entire SAN or major
aspects thereof and accordingly it may be necessary for ICO to switch its TT&C
and IOT operations at the Site to use another of the available RFTs.

34.7 The Contractor shall, in circumstances where its testing procedures require
the use of RFTs at a particular Site, ensure that its use of those RFTs does not
interfere with ICO's TT&C and IOT operations at the Site and it will liaise with
ICO to ensure that there are no interruptions which cause any risk to necessary
TT&C and IOT operations.

34.8 ICO undertakes that it will, under the supervision of properly trained
personnel, operate and maintain all of the RFTs made available to ICO by the
Contractor under this clause 34 only for ICO's TT&C and IOT operations at the
Site and in accordance with the operation and maintenance manuals provided by
the Contractor and will otherwise take all reasonable steps to keep the relevant
RFTs secure and free from interference and abuse.

34.9 During the period between the RFT Availability Date and the Level 2
Handover Date, all of the RFTs which the Contractor has made available for use
by ICO under this clause 34 shall nevertheless remain at the risk and under the
ultimate control and responsibility of the Contractor.

34.10 If in the period referred to in clause 34.9, ICO shall determine that
there is any defect or deficiency in any of the Equipment or Software or Works
relating to the RFTs which have been made available for its use, it shall
promptly notify the Contractor of this, in writing. The Contractor shall,
wherever practicable, immediately make another RFT at that Site available for
use by ICO. Where that is not practicable (including by reason of such other
RFTs not yet having been integrated with ICO's TT&C equipment), then 'the
Contractor shall implement such repairs, replacements or alterations as shall be
required to ensure that there is no interruption in ICO's TT&C and IOT
operations.

35 ACCEPTANCE

35.1 Upon satisfaction of all the Level 2 Acceptance Criteria, ICO will accept
the ICONET Ground Facilities by issuing a Final Acceptance Certificate in the
form set out in Schedule 12. Such certificate shall be signed by the Supervising
Officer on behalf of ICO and shall be sent to the Contractor by facsimile.

35.2 In respect of any Deliverables which are to be handed over or in respect of
any Works which are to be completed by the Contractor after the Level 2 Handover
Date. upon the relevant Deliverable having fulfilled its specification and any
other applicable requirements laid down pursuant to this Agreement or the
relevant Works having been completed to ICO's satisfaction, including the
satisfaction of any applicable test criteria, ICO will accept the relevant
Deliverable or Works by issuing an Acceptance Certificate (which shall be in the
same form as the Final Acceptance Certificate, but modified as appropriate).
Such certificate shall be signed by the Supervising Officer on behalf of ICO and
shall be sent to the Contractor by facsimile.

                                       37
<PAGE>   39
35.3 The issue of an Acceptance (or where applicable the Final Acceptance)
Certificate shall affect the obligations of the Contractor to deliver any other
Deliverables and/or to complete the Work and/or to remedy or to rectify any
faults which may affect the ICONET Ground Facilities or other Deliverables or
Works at that time.

35.4 On or before the Level 2 Handover Date, the Contractor shall in an orderly
manner at each Site handover to ICO Staff all such Deliverables located at that
Site as are due to be handed over by Such date.

36 RISK

The Deliverables shall be at the risk of the Contractor until 00.01 hours GMT on
the day immediately following the Level 2 Handover Date or, in relation to
Deliverables which are to be handed over by the Contractor after the Level 2
Handover Date, until 00.01 hours GMT on the day immediately following the
Handover Date of the relevant Deliverables, at which time risk in the same shall
pass to ICO.

37 INTERCHANGEABILITY

37.1 The Contractor shall ensure that at each of the Sites the items comprising
any part of the Deliverables, and in particular the Equipment and Software
supplied to fulfil any particular functional requirement shall, to the maximum
extent practicable and where lawful, be of identical design and shall carry the
same component reference as and be interchangeable with the equivalent items
supplied for use at any other of the Sites or by way of Spares, provided always
that ICO acknowledges that as a consequence of the Contractor's or the Principal
Sub-Contractors' policy of continuous improvement. in view of the time between
design and manufacture and the manufacturing timetable, certain items intended
to fulfil the same functional requirement, may differ from earlier items
supplied.

37.2 The Contractor shall at all times maintain a complete record of any changes
in specification of any such items and of any differences between the Sites in
the items installed by the Contractor in a format reasonably to be specified by
ICO. The Contractor shall within 30 days of each anniversary of this Agreement
(ending with the tenth such anniversary) provide an up to date and complete copy
of such record to ICO.

38 DELIVERY DELAYS

If and whenever it becomes apparent that progress of any of the Works is being
or is likely to be delayed, the Contractor shall forthwith give written notice
to ICO of the material circumstances including the cause or causes of the delay.
If practicable, such notice shall give particulars of the expected effects
thereof and estimate the extent of the expected delay in delivery or performance
beyond the date or dates set out in the Master Level Schedule. The Contractor
must specify what actions it is taking or intends to take to minimise and
recover such delay. The Contractor shall give such further written notices to
ICO, as may be necessary or as ICO, may reasonably require for keeping up to
date the particulars and estimate referred to above including any material
change in such particulars or estimate.

[39] NOT USED.

40 WARRANTY

40.1 Notwithstanding inspection, testing and acceptance by ICO of any of the
Works or the Deliverables or any other provision of this Agreement which
purports to make acceptance by ICO conclusive, the Contractor guarantees
throughout the period commencing with the Level 2 Handover Date or if later. the
Handover Date of the relevant Works or Deliverables and ending 2 years later
that:

                                       38
<PAGE>   40
     (a)  all the Deliverables are designed and manufactured so as to conform to
          the design, performance and manufacturing requirements of this
          Agreement as from time to time modified by the parties, and will
          perform in accordance with and deliver the functionality specified in
          those requirements;

     (b)  the Works generally, and the Deliverables in particular. and each
          component of either of them, is free from all defects in material or
          workmanship, latent defects or other defects which may cause the same
          to fail to conform to the specified functional and/or performance
          requirements of this Agreement as from time to time modified by the
          parties;

     (c)  each Deliverable functions in such a way that, in conjunction with
          others of the Deliverables, it fulfils the IGFR;

     (d)  the contents of the documentation comprised within the Deliverables
          are correct and free from defects or faults (failing which clause
          40.12 shall apply); and

     (e)  the contents of the Training courses and materials comprised within
          the Deliverables are correct and free from defects (failing which
          clause 40.13 shall apply).

40.2 In the event of a failure of any item of the Works or Deliverables or any
component or part of any such item to meet the conditions specified in clause
40.1, the Contractor shall at its own cost take such actions and carry out such
additional Works promptly to repair or replace or correct such affected items or
components or parts as are necessary to retain and/or restore the specified
functional and/or performance requirements and without any adverse impact on the
Contractor's compliance with the Master Level Schedule. The Contractor shall
prepare and furnish to ICO data and reports applicable to any corrective action
required as set out in this clause 40, including but not limited to revision and
updating of all affected data called for under this Agreement and the Contractor
shall bear the cost thereof.

40.3 If the Contractor falls to repair or replace such items or parts promptly
in accordance with this clause 40 then the Contractor shall pay the costs
incurred by ICO in procuring such items or parts from another supplier and
accomplishing the repair or in modifying such items or parts or other parts of
the Works and/or Deliverables in order to achieve the specified functional
and/or performance requirements. Any action taken by ICO pursuant to this clause
40.3 shall not affect the Contractor's warranty. lCO shall use reasonable
efforts to notify the Contractor of its intention to exercise its rights under
this clause 40.3 a reasonable period in advance of so doing.

40.4 Any item of the Works or Deliverables or any component or part of any such
item corrected or furnished in replacement shall be guaranteed on the terms of
this clause to the same extent as would have applied if the item or part
concerned had initially formed a Deliverable. Where the corrected or replacement
item or part of a Deliverable (not being a printed circuit board or an item of a
similar nature) is brought into operation as a part of the ICONET Ground
Facilities more than twelve months after the commencement of the warranty period
referred to in clause 40.1 applicable to such item or part, this guarantee shall
continue for the period of twelve months from the date of the installation and
bringing into operation at a Site of that replacement item or part. In addition,
the period of warranty relating to any item or part supplied as a Spare shall
run for a period of 24 months after the date referred to in clause 40.1 as the
date of commencement of the warranty in respect of the Deliverables originally
supplied or if later until the expiry of the period of twelve months from the
date of the installation and bringing into operation at a Site of that Spare as
a replacement item or part.

40.5 Upon ICO becoming aware of the occurrence of any defect in or fault
affecting any of the Works or any other item which is subject to the
Contractor's guarantee:

     (a)  ICO shall submit to the Contractor a written fault report in the
          agreed form (the form and content of which is to be agreed between the
          parties within 9 months of the date of

                                       39

<PAGE>   41
this Agreement) describing, so far as it is able, the symptoms of the failure
and to the extent possible, identifying the item(s) or part(s) causing such
failure or having defect;

         (b)      if ICO reasonably considers immediate rectification of the
                  defect or fault is required to prevent or minimise the risk of
                  damage or injury or performance degradation to

                  (i)      the operators of the Equipment or Software; or

                  (ii)     the Equipment or Software itself; or

                  (iii)    the location in which the Equipment or Software is
                           installed; or

                  (iv)     other equipment or software located with or connected
                           to the Equipment or Software.

                  ICO shall include this information in its report and may
                  (without in any way affecting Its rights under this clause 40)
                  proceed with rectification of the defect or fault to the
                  extent reasonably considered necessary in the circumstances;

         (c)      the parties shall (other than in relation to Software), within
                  5 days of the Contractor's receipt of such report, agree the
                  manner and time in which such defect or fault is to be
                  rectified;

         (d)      ICO shall pack for shipment and arrange the shipment of any
                  defective or faulty item(s) or part(s) that the Contractor
                  directs be shipped to the NEC Team member premises as
                  designated by the Contractor and in the case that the
                  Contractor directs the travelling wave tubes (TWTs) be
                  shipped. ICO shall use a TWT shipping container for returning
                  the TWT if such a shipping container is available at the Site
                  from which the shipment is to be made; and

         (e)      ICO shall arrange for the exportation of the defective or
                  faulty item(s) or part(s), and, subject to clause 28.9, the
                  re-importation for any repaired or replacement item(s) or
                  part(s).

40.6 The Contractor shall provide the necessary information and documents for
the re-Importation of any repaired or replacement items or parts (such
information and documents to be of a nature similar to those required for the
purposes of clauses 26 and 28) and reimburse ICO, in accordance with clause
17.3, for all costs and expenses that ICO incurs.

         (a)      in complying with the requirements of this clause 40,
                  including any packaging, transportation, shipping charges,
                  customs duties, customs bonds, sales taxes, VAT or charges of
                  a similar nature which ICO incurs for the exportation or
                  re-importation of item(s) or part(s), or for performing any
                  rectification work;

         (b)      associated with disassembly and/or re-assembly of larger items
                  or parts where their disassembly is required for the purpose
                  of enabling fault diagnosis to take place and/or removal
                  and/or replacement of any other affected item or part.

40.7 In the case of an Equipment defect or fault, the Contractor will, at its
discretion, repair or replace at its own cost the defective or faulty Equipment
in a timely manner so as to minimise any interruption or risk of interruption to
the functioning of the ICO System and the Contractor shall take all such actions
as are reasonably required to restore functionality to the ICO System to the
same level as it was immediately prior to, or should have been in the absence of
(but without imposing any obligation on the Contractor in respect of unconnected
defects or faults in the elements of the ICO

                                       40
<PAGE>   42
System other than the lCONET Ground Facilities), such defect or fault and use
its best efforts to avoid and minimise any interruption or risk of interruption
to the functioning of the ICO System.

If, at the relevant Site, ICO shall have an appropriate Spare, in order to avoid
and minimise any interruption or risk of interruption to the functioning of the
ICO System. ICO shall use the same to replace the defective or faulty Equipment
but without prejudice to the obligations of the Contractor, at no cost to ICO,
to supply a replacement for such Spare and to attend the Site to make any
necessary repair to the item or part of the Equipment suffering the defect or
fault.

In the absence of ICO holding an appropriate Spare at the relevant Site or where
the Contractor is not able to implement an immediate repair or replacement of
the defective or faulty Equipment, ICO may, if possible and where it urgently
requires the availability of the relevant Equipment, make immediate repairs to
any defective or faulty Equipment without affecting any of its rights under this
clause 40.

40.8 In the event of any Software defect or failure:

         (a)      ICO shall inform the Contractor of the nature of the Software
                  defect or fault (so far as it is able to identify the same) in
                  the agreed manner, following the reporting, fault escalation
                  and required response processes to be agreed between the
                  parties (which process shall be agreed not less than 6 months
                  before the scheduled commencement of the Warranty period
                  specified in clause 40.1);

         (b)      the Contractor will analyse the reported Software defect or
                  fault and the Contractor shall, at no cost to ICO, supply a
                  temporary fix to rectify the Software defect or fault without
                  avoidable delay and in a timely manner so as to minimise or
                  avoid any interruption or risk of interruption to the
                  functioning of the ICO System and minimises the effects of the
                  defect or fault;

         (c)      the Contractor, at no cost to ICO, will notify ICO by
                  telephone, facsimile or e-mail how to fix the defect or fault
                  using Site personnel, or make and supply the "bug" fix,
                  maintenance release or update; and

         (d)      the Contractor shall, at no cost to ICO, take all such actions
                  as are reasonably required to restore on a permanent basis
                  functionality to the ICO System to the same level as it was
                  immediately prior to, or should have been in the absence of
                  (but without imposing any obligation on the Contractor in
                  respect of unconnected defects or faults in the elements of
                  the ICO System other than the ICONET Ground Facilities), such
                  defect or fault and will use its best efforts to avoid and
                  minimise any interruption or risk of interruption to the
                  functioning of the ICO System and will as rapidly as is
                  possible, using the best efforts of the NEC Team, and in any
                  event within three (3) months (or such longer time as may be
                  agreed by ICO) of the occurrence of the Software defect or
                  fault, prepare and issue a permanent fix to the Software for
                  installation at all Sites where the Software is installed.

40.9 The Contractor will, where any defect or fault cannot for any reason be
repaired or rectified in accordance with clauses 40.7 or 40.8, at its own cost,
dispatch appropriately qualified engineer(s) to the Site to identify and repair
or rectify any defective or faulty Equipment or Software without avoidable delay
and within a time period which minimises the effects of such defect or fault.
ICO shall use reasonable efforts in the period of two years commencing on the
Level 2 Handover Date to hold a Spare of such items at such Sites as has been
recommended on a reasonable basis by the Contractor prior to the date of this
Agreement. Save where the recommended Spare has been used already at a Site for
an Equipment defect or fault (and it has not been replaced or returned to the
relevant Site by the Contractor), to reinstate any Spares which are used. The
Contractor will have no obligation under the terms of this clause 40 in respect
of damage arising solely from a failure by ICO to maintain Spares in accordance
with this clause 40.9.

                                       41
<PAGE>   43
40.10 The Contractor will, during the period of three years from the Level 2
Handover Date, submit written report quarterly within one month after the end of
the relevant quarter summarising:

         (a)      for each of the Sites, all Equipment defects or faults which
                  were notified by each NEC Team member during the previous
                  quarter and identifying how they were processed for repair or
                  replacement;

         (b)      for each of the Sites, all Software defects or faults which
                  were reported to each NEC Team member during the previous
                  quarter and identifying how they were rectified;

         (c)      an analysis of the trend of Equipment and Software defects or
                  faults of which members of the NEC Team have become aware
                  (both as a consequence of paragraphs (a) and (b) above and,
                  separately, from other sources), including re-occurring
                  defects and faults and proposed remedial actions and the
                  periods taken to implement the same, by Equipment and Software
                  type and source;

         (d)      for Equipment repairs or replacements, the average turnaround
                  time, the longest turnaround time with the reason and the
                  number and description of those remaining to be implemented
                  with the predicted date for completion and time period since
                  the defective or faulty item or part was first reported as
                  faulty or defective and returned, for each NEC Team member;

         (e)      for Software temporary fixes, the average turnaround time, the
                  longest turnaround time with the reason and the number and
                  description of those remaining to be implemented with a
                  predicted date for completion and total elapsed time from the
                  date that any member of the NEC Team first received
                  notification of the original fault or defect to its predicted
                  date for Implementation, for each NEC Team member;

         (f)      for Software permanent fixes, the number and description of
                  those implemented during the period, the number and
                  description of those remaining to be Implemented and the
                  number and description of those remaining to be implemented
                  with a predicted date for completion and total elapsed time
                  from the date any member of the NEC Team first became aware of
                  the original fault or defect to its predicted date for
                  implementation, for each NEC Team member; and

         (g)      such other information as ICO may reasonably require to assess
                  the reliability of the Equipment and Software (including any
                  individual parts, components, sub-systems and programs) and
                  the efficiency and performance of the Contractor and its
                  compliance with its warranty obligations, and in particular
                  the means by which it is ensuring that there is no avoidable
                  interruption to services provided through the ICO System as a
                  consequence of any Equipment or Software defect or fault.

40.11 If requested by ICO, the Contractor will provide ICO with a written report
describing the results of the analysis of any specific Equipment or Software
defect or fault notified to the Contractor in respect of any Equipment or
Software whilst the same is under warranty pursuant to this clause for which ICO
has requested a separate report. Any such report shall be provided promptly
following ICO's request and shall address all those matters which ICO shall have
prescribed in its request.

40.12 In the event of defects or faults in any of the content of the
documentation, the Contractor will:

         (a)      unless otherwise agreed by ICO, correct and re-issue the
                  affected documentation within one month of the Contractor
                  first becoming aware of the same in the same formats,
                  quantities and to the same places of delivery as the provision
                  of the original documentation;

                                       42
<PAGE>   44
         (b)      will make all necessary rectifications to any part of the
                  ICONET Ground Facilities which has been affected adversely as
                  a result of a defect or fault in the contents of the
                  documentation; and

         (c)      if the functionality of the ICO System shall have been
                  affected in any way by such defect or fault, at its own cost,
                  take all such actions as are reasonably required to restore
                  functionality to the ICO System to the same level as it was
                  immediately prior to, or should have been in the absence of
                  (but without imposing any obligation on the Contractor in
                  respect of unconnected defects or faults in the elements of
                  the ICO. System other than the ICONET Ground Facilities), such
                  defect or fault and use its best efforts to avoid or minimise
                  any interruption or risk of interruption to the functioning of
                  the ICO System.

40.13 In the event of incorrect or defective content of Training courses or
materials the Contractor shall:

         (a)      unless the parties agree otherwise, without delay and in each
                  of the locations at which the incorrect or defective Training
                  shall have been given, provide remedial Training in the same
                  manner as the provision of the original Training;

         (b)      make all necessary rectifications to any part of the ICONET
                  Ground Facilities which has been affected adversely as a
                  result of incorrect or defective content of Training courses
                  or materials; and

         (c)      if ICO shall demonstrate to the reasonable satisfaction of the
                  Contractor that the functionality of the ICO System shall have
                  been affected in any way by such defect or fault, at its own
                  cost, take all such actions as are reasonably required to
                  restore functionality to the ICO System to the same level as
                  it was immediately prior to, or should have been in the
                  absence of (but without imposing any obligation on the
                  Contractor in respect of unconnected defects or faults in the
                  elements of the ICO System other than the ICONET Ground
                  Facilities), such defect or fault and use its best efforts to
                  avoid or minimise any interruption or risk of interruption to
                  the functioning of the ICO System.

40.14 The rights and remedies of ICO under this clause 40 are in addition to,
and do not limit, any other rights and remedies ICO may have. In particular,
ICO's rights under this Agreement arising out of fraud or such gross mistakes as
amount to fraud are not limited in point of time or by this clause.
Notwithstanding the time limits specified in clause 40.1, if ICO shall notify
the Contractor of a claim for breach of warranty under this clause 40 relating
to any latent defect in any of the Deliverables or other Works at any time
within five years after the Level 2 Handover Date such claim shall be regarded
as a claim properly made under this clause.

40.15 The warranty provisions of this clause will not apply to the following:

         (a)      operations or maintenance of the Equipment or Software by any
                  person who has not been properly trained (except any
                  representatives nominated or authorised by the Contractor or
                  Sub-Contractors) or operations, maintenance, repair and
                  inspection of the Equipment or Software carried out by any
                  person other than in accordance with manuals, documents and
                  information provided to ICO by the Contractor or any
                  Sub-Contractor or any representatives nominated or authorised
                  by the Contractor or Sub-Contractors;

         (b)      normal wear and tear;

                                       43
<PAGE>   45
         (c)      consumption of consumables (not earlier than the usual time
                  periods or usage patterns during which those consumables may
                  be expected to continue to perform);

         (d)      Equipment or Software that has been subject to alterations or
                  modifications not authorised by the Contractor or any
                  Sub-Contractor or any maintenance representatives nominated or
                  authorised by the Contractor or Sub-Contractors;

         (e)      Equipment or Software failures that are associated directly
                  with ICO's failure to maintain the operational environment
                  specified by the Contractor; and

         (f)      the Deliverables required to be delivered under Annex 11 to
                  the Statement of Work to which this clause 40 shall apply save
                  to the extent specifically modified as set out therein.

40.16 The travelling wave tubes (TWTs) shall be free from defects in material
and workmanship under normal operating conditions within published ratings and
under normal use in accordance with the Contractor's operating instructions for
   *   hours of heater operation or 18 months from the date of shipment from the
Contractor, whichever occurs first. If any defect in material or workmanship is
found in the TWT under said conditions within said period, the Contractor will,
at ICO's discretion, either replace the TWT at the price to be calculated
according to the formula (1) below or refund to ICO the amount to be calculated
according to the formula (2) below (Pro-Rate Adjustment), provided that notice
of any such alleged defect shall be given in accordance with this clause 40.

         (1)      Replacement Price = Applicable Selling Price of the TWT when
                                      the Order for the Replacement is Placed

                         x   Hours of Heater Operation
                         -----------------------------
                                 Warranted Hours

                  (If the hours of TWT operation is less than five percent (5%)
                  of the Warranted Hours, the Replacement Price shall be deemed
                  zero (0)).

         (2)      Amount of Refund = Price of the TWT Paid by ICO

                         x   (Warranted Hours - Hours of Heater Operation)
                         -------------------------------------------------
                                 Warranted Hours

                  (if the hours of TWT operation is less than five percent (5%)
                  of the Warranted Hours, the Amount of Refund shall be deemed
                  equal to the Price of the TWT paid by ICO).

PART F - INTELLECTUAL PROPERTY RIGHTS

41        INTELLECTUAL PROPERTY RIGHTS AND CONFIDENTIALITY

41.1      ICO and the Contractor acknowledge that:

         (a)      NEC Team Intellectual Property is owned by the NEC Team
                  member(s) generating such Intellectual Property Rights;

         (b)      ICO Intellectual Property is owned by ICO.

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

                                       44
<PAGE>   46
41.2 The Contractor hereby grants and shall procure the grant by the other
members of the NEC Team to ICO irrevocable worldwide non-exclusive paid-up
licences (with right to sub-licence) to use NEC Team Intellectual Property
(except for NEC Team Intellectual Property incorporated in Software. as provided
for in clause 41.3) incorporated by the NEC Team into the Deliverables delivered
by the Contractor solely for the purposes of operating or having operated in
accordance with the provisions of this Agreement the Deliverables in the ICO
System.

41.3.1 The Contractor hereby grants and shall procure the grant by the other
members of the NEC Team to ICO irrevocable worldwide non-exclusive paid up
licences (with right to sub-licence) to run the object code versions of Software
solely for the purposes of operating or having operated in accordance with the
provisions of this Agreement the Deliverables delivered by the Contractor in the
ICO System.

41.3.2 The licences granted in or pursuant to clause 41.3.1 do not include any
right to translate, amend, modify or adapt such Software in source code form or
in object code form. Upon request the Contractor will, and will procure that the
other members of the NEC Team will, provide such interface information as ICO
may reasonably request in order to make other computer programs interoperable
with any of the Software. Compliance with this obligation shall also be deemed
to be compliance in respect of that Software with clause 4.1.(i).

41.3.3 ICO shall not make any copies of the Software except for the purpose of
operating the Deliverables in the ICO System or for archive or back up purposes.

41.3.4 The Software licensed under this Agreement may be delivered in an
inseparable package also containing other computer programs. In order to avoid
doubt ICO is not granted any licence to use such other computer programs.

41.3.5 ICO shall treat all Software and other computer programs included in any
inseparable package as confidential and subject to the provisions of clause
41.6.

41.3.6 For the avoidance of any doubt ICO receives no ownership interest in any
of the Software or other computer programs included in any inseparable package
or in each case in any of the Intellectual Property Rights thereto.

41.4.1 ICO hereby grants to the Contractor and agrees to grant to each of the
other members of the NEC Team irrevocable worldwide, non-exclusive licences with
right to sub-licence to use the ICO Intellectual Property for the purposes of
developing, supplying, manufacturing, Installing, operating, upgrading and
expanding the Deliverables for ICO.

41.4.2 Without prejudice to the provisions of clause 41.6, ICO further agrees
not to assert any ICO Intellectual Property comprised in the Deliverables
against:

         (a)      the members of the NEC Team in respect of the development,
                  manufacture or sale of equipment or software incorporating any
                  ICO Intellectual Property comprised in the Deliverables; or

         (b)      the use by the members of the NEC Team or their third party
                  customers of equipment or software acquired directly or
                  indirectly from the members of the NEC Team incorporating any
                  ICO Intellectual Property comprised in the Deliverables other
                  than in or in conjunction with Satellite Based Communications
                  Systems; or

         (c)      the use by the members of the NEC Team or their third party
                  customers of equipment or software acquired directly or
                  indirectly from the members of the NEC Team incorporating any
                  ICO Intellectual Property (other than ICO Intellectual
                  Property the

                                       45
<PAGE>   47
                  subject of a patent or patent application) comprised in the
                  Deliverables in or in conjunction with Satellite Based
                  Communications Systems:

                  (i)      where such ICO Intellectual Property is comprised in
                           the system areas not identified as Key Features,
                           after the Level 2 Handover Date; and

                  (ii)     where such ICO Intellectual Property is comprised in
                           the system areas identified as Key Features after 1st
                           January 2002,

                  provided that:

                  (i)      if any third party not being a member of the NEC Team
                           receiving the benefit of the provisions of this
                           clause 41.4.2 asserts any Intellectual Property
                           Rights against ICO, then ICO reserves the right to
                           assert ICO Intellectual Property against that party;
                           and

                  (ii)     if any NEC Team member asserts any Intellectual
                           Property Rights other than in respect of a breach of
                           clause 41, then ICO reserves the right to assert ICO
                           Intellectual Property against that NEC Team member.

41.4.3 For the avoidance of doubt, nothing in clauses 41.4.1 and 41.4.2 shall be
construed as granting any licence under ICO patents to any third party customers
of any NEC Team member(s) to use such equipment.

41.5.1 The Contractor hereby undertakes that it will not and agrees to procure
that the other members of the NEC Team will not either alone or acting together
make available directly or indirectly for commercial use features which are new
and developed by or at the direction of the members of the NEC Team under this
Agreement in the system areas identified as Key Features to any other operator
of Satellite Based Communications Systems until 1st January 2002 without the
express written consent of ICO provided always that nothing shall restrict the
members of the NEC Team either alone or acting together from making available
directly or indirectly for commercial use at any time by any person features
which are the same as or substantially similar to the features which are new and
developed by or at the direction of the members of the NEC Team under this
Agreement in the system areas identified as Key Features where such features are
the result of work done independently of the work done under this Agreement or
from exploiting NEC Team Intellectual Property generated prior to the date of
this Agreement and without otherwise breaching the terms of this Agreement.

41.5.2 For the avoidance of doubt the fact that work done independently of the
work done under this Agreement results in a notification under clause 9.4 to ICO
and a related change under clause 9 does not bring such work within the scope of
the restrictions on making available directly or indirectly for commercial use
features which are new and developed by or at the direction of the members of
the NEC Team under this Agreement set out in clause 41.5.1.

41.6.1 ICO on the one hand and the Contractor on the other hand may provide
Confidential Information to each other during the course of this Agreement and
all such disclosures of such information will be treated as confidential by the
party receiving the disclosure and subject to the provisions of clause 41.6.3,
the receiving party shall maintain such information in confidence and shall not
use or disclose such information except as expressly authorised in this
Agreement. Notwithstanding the foregoing, where any information is disclosed
orally or is visually displayed, then such information shall be regarded as
Confidential Information if identified as Confidential at the time of disclosure
and the disclosing party within thirty days from initial disclosure specifically
identifies in writing to the receiving party such oral or visually displayed
information as being "Confidential Information".

                                       46
<PAGE>   48
41.6.2 Each party agrees to use the same care and discretion to avoid
unauthorised disclosure, publication or dissemination of Confidential
Information supplied by the other party and the unauthorised use thereof as the
receiving party uses with respect to similar information of its own, but in no
event, less than reasonable care. Each party further agrees that commercial
information designated as Confidential Information shall not be disclosed to any
third party without the express prior written consent of the disclosing party.
Should it become legally necessary for the receiving party to disclose to a
third party certain of the Confidential Information supplied by the other party,
it shall be disclosed only to the extent required by law or court of competent
jurisdiction and to the extent permitted by law after prior written notification
to the other party of the requirement for disclosure.

41.6.3 The obligations of confidentiality and restrictions on use specified in
this clause 41.6 shall not apply to any information that:

                  (a)      is already in the possession of the receiving party
                           without obligation of confidentiality at the time of
                           disclosure;

                  (b)      is independently developed by the receiving party or
                           any of its affiliates or subcontractors without
                           access to or any use of any of the Confidential
                           Information as evidenced by appropriate documents;

                  (c)      is or becomes publicly available without breach of
                           this Agreement and without the fault of the receiving
                           party or any of the affiliates or subcontractors; or

                  (d)      is lawfully received by the receiving party from a
                           third party.

Specific information shall not be deemed to be in the possession of the
receiving party merely because it is embraced by more general information in the
receiving party's possession.

41.6.4 Each party shall use all reasonable endeavours, including inserting and
enforcing the appropriate contractual provisions in any agreements with any
subcontractors and by requiring the compliance by its employees with appropriate
obligations, to ensure the confidentiality of all Confidential Information
provided to it by the other party but so that nothing in this clause 41.6 shall
preclude any party from disclosing such information on such basis only for the
performance of and for the purposes contemplated by this Agreement to a third
party which has prior to receiving such information executed a confidentiality
agreement in favour of the receiving party and under which the receiving party
holds the benefit of such third party's undertakings on behalf of itself and the
party whose Confidential Information is so disclosed.

41.6.5 The confidentiality obligations in this clause 41.6 shall survive the
expiration or termination of this Agreement for whatever cause.

41.7 Subject to clause 41.9 if any member of the NEC Team is not the legal and
beneficial owner of any part of the Intellectual Property Rights which it
incorporates into the Deliverables but only has a right to use the same pursuant
to a licence then ICO's right to use the same shall be such as is permitted by
the licence granted by the owners thereof to the relevant member of the NEC Team
and in the event that such licence prevents or restricts ICO's use of any
functionality of the Deliverables in connection with the ICO System the
Contractor shall use, and shall procure that the relevant member of the NEC Team
shall use all reasonable endeavours so as to obtain at minimal cost from such
third party as owns such part of the Intellectual Property Rights the right for
ICO to use the same without prevention or restriction as to any functionality of
the Deliverables. Any costs reasonably incurred by the relevant member of the
NEC Team in this connection shall be borne by that member of the NEC Team. If it
shall not, or it appears likely that it will not, prove possible to secure
appropriate rights for ICO to use or incorporate any such third party rights in
the Deliverables in connection with the ICO

                                       47
<PAGE>   49
System, the Contractor shall at its own cost, procure that a suitable
alternative method of meeting the requirements of the Deliverables shall be
produced.

41.8 For the avoidance of doubt the parties hereby agree that the provisions of
clause 8 of the IPC continue to apply to Intellectual Property Rights comprised
in the deliverables supplied under the IPC or reduced into practice in the work
done under the IPC and that notwithstanding any of the provisions of clause 8 of
the IPC the provisions of this clause 41 shall apply to all work done pursuant
to this Agreement in the development and supply of the Deliverables.

41.9.1.1 ICO will indemnify each of the members of the NEC Team (including
Sub-Contractors or permitted sub-licensees of any member of the NEC Team)
against all claims, demands, actions, costs, expenses (including but not limited
to legal costs on a solicitor and client basis) and damages rising from or
incurred by reason of:

                  (a)      any infringement or alleged infringement of US Patent
                           Nos. 5,415,368; 5,439,190; 5,433,726 and 5,554,624
                           together with any continuations, divisions,
                           re-issues, re-examinations and foreign counterparts
                           thereof arising out of the manufacture, use, sale,
                           exportation or importation of the Deliverables; or

                  (b)      any infringement or alleged infringement of any other
                           Intellectual Property Rights arising out of the
                           manufacture, use, sale, exportation or importation of
                           those features of the Deliverables specified by ICO
                           in the functional objectives and requirements of the
                           IGFR and the Statement of Work.

41.9.1.2 The Contractor shall promptly notify ICO if any claim or demand is made
or action brought against any of the members of the NEC Team (or any
Sub-Contractor or permitted sub-licensee of any member of the NEC Team) to which
clause 41.9.1.1 may apply. ICO shall at its own expense conduct any litigation
arising therefrom and all negotiations in association therewith and the members
of the NEC Team hereby agree to grant to ICO exclusive control of any such
litigation and negotiations.

41.9.1.3 The NEC Team shall at the request of ICO afford to ICO all reasonable
assistance for the purpose of contesting any claim or demand made or action
brought against any of the members of the NEC Team (or any Sub-Contractors or
permitted sub-licensees of any member of the NEC Team) to which clause 41.9.1.1
may apply. ICO shall reimburse any of the members of the NEC Team for all costs
and expenses (including legal expenses) incurred in so doing.

41.9.1.4 The Contractor shall not make any admissions which may be prejudicial
to the defence or settlement of any claim, demand or action for infringement or
alleged infringement of any Intellectual Property Rights to which clause 41.9.
1.1 may apply.

41.9.1.5 If a claim or demand is made or action to which clause 41.9.1.1 may
apply or demand is made or brought ICO may at its own expense:

                  (a)      procure a licence to use the relevant Intellectual
                           Property Rights on terms which are approved by the
                           Contractor (such approval not to be unreasonably
                           withheld or delayed); or

                  (b)      take such other action as the Contractor may agree
                           (such agreement not to be unreasonably withheld or
                           delayed) as appropriate to avoid or settle such
                           claim, demand or action,

                                       48
<PAGE>   50
provided in each case, that ICO provides evidence reasonably satisfactory to the
Contractor that it has sufficient financial resources to meet any commitment
which it makes pursuant to this clause 41.9.1.5 on behalf of itself or any
member of the NEC Team.

41.9.2.1 The Contractor will indemnify ICO (including sub-contractors or
permitted sub-licensees of any member of ICO) against all claims, demands,
actions, costs, expenses (including but not limited to legal costs on a
solicitor and client basis) and damages arising from or incurred by reason of
any infringement or alleged infringement of any Intellectual Property Rights
relating to the use, possession, importation or exportation of the Deliverables
in connection with the ICO System by ICO or its sub-licensees save where such
claims, demands, actions, costs, expenses, losses or damages are the subject of
ICO's indemnity to the members of the NEC Team (and any Sub-Contractors or
permitted sub-licensees of the NEC Team) under clause 41.9.1.

41.9.2.2 ICO shall promptly notify the Contractor if any claim or demand is made
or action brought against ICO to which clause 41.9.2.1 may apply. The relevant
member of the NEC Team shall at its own expense conduct any litigation arising
therefrom and all negotiations in association therewith and ICO hereby agrees to
grant to the NEC Team exclusive control of any such litigation and negotiations.

41.9.2.3 ICO shall at the request of the relevant member of the NEC Team afford
to the NEC Team member all reasonable assistance for the purpose of contesting
any claim or demand made or action brought against ICO to which clause 41.9.2.1
may apply. The Contractor shall reimburse ICO for all costs and expenses
(including legal expenses) incurred in so doing.

41.9.2.4 ICO shall not make any admissions which may be prejudicial to the
defence or settlement of any claim, demand or action for infringement or alleged
infringement of any Intellectual Property Rights to which clause 41.9.2.1 may
apply.

41.9.2.5 If a claim or demand is made or action to which clause 41.9.2.1 may
apply or demand is made or brought, the relevant NEC Team member may at its own
expense:

         (a)      procure a licence to use the relevant Intellectual Property
                  Rights on terms which are approved by ICO (such approval not
                  to be unreasonably withheld or delayed); or

         (b)      take such other action as ICO may agree (such agreement not to
                  be unreasonably withheld or delayed) as appropriate to avoid
                  or settle such claim, demand or action,

provided in each case that the NEC Team member provides evidence reasonably
satisfactory to ICO that it has sufficient financial resources to meet any
commitment which it makes pursuant to this clause 41.9.2.5 on behalf of itself.

41.9.2.6 The foregoing provisions of clause 41.9.2 shall not apply insofar as
any such claim demand or action is in respect of:

         (a)      the use by or on behalf of ICO or its sub-licensees of the
                  Deliverables in combination with products services software or
                  data not described in IGFR, the Statement of Work and the High
                  Level System Description and not supplied by the NEC Team
                  under this Agreement; or

         (b)      the alteration of any of the Deliverables otherwise than by a
                  member of the NEC Team under this Agreement.

41.9.2.7 The members of the NEC Team shall notify ICO in writing should any of
them become aware of reasonable grounds to believe that the use of any of the
Deliverables with other products or

                                       49
<PAGE>   51
services (not being Deliverables) with which the NEC Team is aware that ICO will
use the Deliverables may infringe the Intellectual Property Rights of any third
party

41.9.3.1 Save as provided in clause 49.1.3.2, in no event shall:

         (a)      the NEC Team's entire liability to ICO (or any permitted
                  sub-licensees) under clause 41.9; or

         (b)      ICO's entire liability to the members of the NEC Team (or any
                  Sub-Contractor or permitted sub-licensee of any NEC Team
                  member) under clause 41.9,

exceed $75,000,000 and the existence of one or more claims or lawsuits within
this clause 41.9 shall not extend this amount, and in no event shall the NEC
Team or ICO be liable for incidental, special or consequential damages incurred
by the other save and insofar as they are included in any claim by a third party
for which ICO or the NEC Team is indemnified under this clause 41.9.

41.9.3.2 The liability of ICO to the members of the NEC Team (or any
Sub-Contractors or permitted sub-licensees of any member of the NEC Team) under
clause 41.9.1.1(a) in respect of any claim against such party based upon US
Patent Nos. 5,415,368; 5,439,190; 5,433,726 and 5,554.624 or any continuations,
divisions, re-issues, re-examinations and foreign counterparts thereof shall be
unlimited.

41.9.3.3 Notwithstanding any other provisions in this Agreement. this clause
41.9 states the entire liability between ICO on the one hand and the Contractor
and the other members of the NEC Team on the other with regard to the
infringement of any Intellectual Property Rights in connection with the use of
the Deliverables in connection with the ICO System. For the avoidance of doubt
therefore wording appearing elsewhere in this Agreement relating to compliance
with laws, regulations and all similar terms shall not apply in respect of any
infringement or alleged infringement by the NEC Team of Intellectual Property
Rights of a third party or any related matters (including, without limitation,
clauses 4.1(g), 4.1(h), 4.1(n), 6.1(c), 6.1(d) and 64).

41.10 The provisions of this clause 41 shall (save in respect of clause 54)
prevail over any other provisions relating to Intellectual Property Rights
appearing elsewhere in this Agreement.

[42]      NOT USED.

[43]      NOT USED.

                                       50
<PAGE>   52
PART G - CONTINUOUS SUPPORT AND OPTIONS

44        MANUALS AND TECHNICAL DIAGRAMS

The Contractor is required to produce and submit to ICO those operations and
maintenance manuals, instruction manuals, technical diagrams, technical drawings
and all other documents set out in Annex 6 of the Statement of Work.

45        TRAINING

The Works shall include training and instruction for ICO Staff in accordance
with Annex 5 of the Statement of Work so as to enable ICO Staff to operate all
functions of, and to maintain, the ICONET Ground Facilities.

46        OPTIONS, SUPPORT SERVICES AND FUTURE SUPPLIES

46.1 The Contractor shall, and shall ensure that Sub-Contractors shall, provide
to ICO at ICO's option, at the specified prices (or where none has been fixed,
at fair and reasonable prices which in no event exceed the prices paid for
comparable items and services to be delivered under this Agreement) as
determined in accordance with Schedule 9 under this Agreement:

         (a)      the items of Equipment and the related Works described as the
                  Options specified in Annex 1 of the Statement of Work;

         (b)      further supplies of the Equipment for a period to the end of
                  2010 with extended availability subject to clause 46.4 and
                  46.5, at ICO's option, for an additional period of 5 years
                  commencing on 1 January 2011;

         (C)      further supplies of Spares for a period to the end of 2015
                  with extended availability subject to clauses 46.4 and 46.5,
                  at ICO's option, for an additional period of 5 years
                  commencing on 1 January 2016;

         (d)      maintenance and support for the Software for a period to the
                  end of 2015 with extended availability, at ICO's option, for
                  an additional period of 5 years commencing on 1 January 2016;

         (e)      the availability of skills and resources for a period to the
                  end of 2010 with extended availability, at ICO's option, for
                  an additional period of 5 years commencing on 1 January 2011
                  for the provision of services to support further capacity
                  and/or functional enhancements to the ICONET Ground Facilities
                  or the ICO System, including the provision of system
                  integration and programme management services;

         (f)      the availability of skills and resources for a period to the
                  end of 2015 with extended availability, at ICO's option, for
                  an additional period of 5 years commencing on 1st January 2016
                  for the ongoing operations and maintenance support, including
                  consultative technical advice in relation to the Deliverables
                  furnished under this Agreement;

         (g)      the availability of functional enhancements to the ICONET
                  Ground Facilities or for the ICO System to deliver
                  functionalities similar to those available in cellular
                  communications systems, within timeframes to enable ICO to be
                  competitive with such cellular communications systems;

                                       51
<PAGE>   53
         (h)      assistance and co-operation in the identification, development
                  and implementation of future ICO System specific
                  functionalities; and

         (i)      the Contractor should use its reasonable endeavours to obtain
                  similar guarantees from its suppliers and Sub-Contractors for
                  Equipment and Spares as have been supplied to the Contractor.

The options to extend the availability periods referred to in clauses 46.1(c),
(d), (e) and (f) may be exercised only if the option to extend the availability
period referred to in clause 46.1 (b) is exercised by ICO. ICO shall notify the
Contractor in writing of its exercise of the options to extend the availability
periods referred to in clauses 46.1 (b) to (f) at least one year prior to the
expiry of the original period.

46.2 This clause shall in no way bind ICO to order any particular quantity of
Equipment, Spares or services from the Contractor. The Contractor acknowledges
and agrees that ICO may, if ICO and a Sub Contractor so agree, enter into
separate contracts for the provision of operations and maintenance support and
advice.

46.3 The Contractor shall within 24 months of the date of this Agreement provide
ICO with a list of alternate manufacturers and suppliers, insofar as they exist,
for the Equipment, Software and Spares (detailing as a minimum the name and
address of the alternate source and the model or part numbers of the Equipment,
Software and Spares and the alternate source to which they refer) supplied by
each Sub-Contractor. The Contractor shall update this list once every 12 months.
The use of Equipment, Software or Spares from any supplier or manufacturer,
provided that they comply with the information provided by the Contractor, shall
not affect any warranties given by the Contractor under this Agreement.

46.4 If during the extended availability periods specified in clauses 46.1.(b)
or (c) any member of the NEC Team, the affiliates of any member of the NEC Team,
or their direct sub-contractors intend to discontinue the manufacture of
Equipment or Spares the Contractor shall forthwith give 9 months' written notice
to ICO of such intention and afford ICO the opportunity (which shall be
exercised within 6 months of receiving such notification) of ordering such
quantities of Equipment or Spares at prices determined in accordance with 46.1,
as ICO shall reasonably require and the Contractor shall procure the supply of
such quantities at the prices so determined. Alternatively, the parties may
agree within the said period of 6 months that the Contractor will sell or
license to ICO, or procure the sale and licence of, such drawings, patterns,
specifications and other information as ICO shall require to enable it to make
or have made such Equipment or Spares.

46.5 The Contractor shall take all reasonable efforts to ensure the continued
availability throughout the extended availability periods specified in clause
46.1 (b) and (c) of Equipment and Spares from the NEC Team members, the
affiliates of any member of the NEC Team, and their direct Sub-Contractors. In
addition to the notification required under clause 46.4, the Contractor shall
inform ICO, as soon as it can reasonably be established, that Equipment and
Spares provided by the NEC Team members, the affiliates of any member of the NEC
Team, or its direct Sub-Contractors are becoming obsolescent and shall work with
ICO to minimise the input of such obsolescence on the ICONET Ground Facilities
and the ICO System, including proposals for the migration to newer or alternate
technologies.

46.6 If during the period specified in clauses 46.1 (b), (c) and (d), the
Contractor or any Sub-Contractor (in the absence of agreement as aforesaid)
either:

         (a)      falls to make available to ICO with reasonable despatch all
                  such Equipment, Spares or Software as ICO shall require; or

         (b)      shall suspend payment of its debts generally, seek protection
                  from its creditors or otherwise enter into any form of
                  insolvency or bankruptcy proceeding (however

                                       52
<PAGE>   54
                  described) or any of its creditors shall seize any of its
                  assets (whether under any security interest or otherwise) or
                  any moneys owned by it shall become due for payment by reason
                  of acceleration or default on its part or its shareholders
                  shall take steps or pass any resolutions to wind up (otherwise
                  than in connection with a solvent reconstruction or
                  amalgamation previously approved by ICO or any analogous thing
                  by whatever name it is known, shall happen in any
                  jurisdiction.

then the Contractor shall so far as he is legally entitled so to do and, if so
required by ICO as soon as reasonably practicable, deliver to ICO free of charge
such drawings, patterns, specifications and other, information as are referred
to in clause 46.4 (to the extent that the same are derived from the person to
whom the circumstances referred to in (a) or (b) above apply, or where the
circumstances apply to the Contractor, all such items of the Contractor and all
of the Sub-Contractors) and which ICO shall be entitled to retain for such time
only as is necessary for the exercise by ICO of its rights under this clause and
which if the Contractor so requires shall be returned by ICO to the Contractor
in good order and condition (fair wear and tear excepted) and at ICO's costs and
expense.

46.7 If ICO shall exercise its right under clause 46.6 the Contractor shall also
grant or procure the grant to ICO without payment of any royalty or charge full
right and liberty to make or have made Equipment or Spares as aforesaid and for
such purposes only to use, make and have made copies of all drawings, patterns,
specifications and other information supplied by the Contractor to ICO pursuant
to this Agreement.

46.8 ICO undertakes for itself and on behalf of ICO Staff that all drawings,
patterns, specifications and other information obtained from the Contractor
under this clause shall be kept confidential and will not be divulged except to
such persons as it may be necessary to divulge the same to, for the purpose of
making or having made Equipment or Spares.

46.9 If the Contractor does not provide Equipment or Spares, ICO shall have the
right to obtain such Equipment or Spares directly from Sub-Contractors or any
other supplier and any additional cost incurred by ICO shall be recoverable from
the Contractor.

47        CONSUMABLE SUPPLIES

47.1 The Contractor shall before shipment of any of the Deliverables or any
components used therein supply a list of specifications for consumables required
in the operation of the ICONET Ground Facilities. This list shall be updated no
later than 6 months before the Level 2 Acceptance Date.

47.2 ICO reserves the right to procure consumables to be used in and suitable
for the Deliverables that are in accordance with the specifications that have
been provided by the Contractor from such sources as ICO may deem appropriate.
Such procurement from a source other than the Contractor shall not invalidate
any rights of ICO under this Agreement.

47.3 If the Contractor fails to supply or update the specification list referred
to in clause 47.1, and the consumables procured by ICO for use in the operation
of the ICONET Ground Facilities causes a degradation or interruption in all or
any part of its operation the Contractor shall not be relieved of its warranty
obligations. In addition the Contractor shall reimburse ICO for the costs
incurred by ICO in ascertaining the appropriate specification to be applied for
any consumable.

48        ATTACHMENTS TO THE EQUIPMENT

48.1 Without prejudice to clause 47, ICO shall have the right to attach to the
Equipment any equipment not supplied by the Contractor (the "Attachment").

48.2 If ICO notifies the Contractor in writing at least thirty days before it
proposes to make an Attachment the Contractor shall within thirty days of the
receipt of ICO's notice, respond to ICO with its

                                       53
<PAGE>   55
consent to or rejection of the proposed Attachment. If the Contractor notifies
ICO of its consent to such Attachment, then clause 48.4 will apply.

48.3 If the Contractor receives a notification under clause 48.2 it may give a
notice of rejection. Any notice of rejection shall be in writing and set out, in
the Contractor's reasonable judgement in all the circumstances, the possible
effects of the Attachments on the Deliverables and why the making of the
Attachment to the Equipment would or can reasonably be expected adversely to
affect the ICO System. A failure by the Contractor to respond to ICO within such
thirty day period shall be deemed to be consent.

48.4 Clauses 4 and 40 shall continue to apply to the Equipment (but not to the
Attachment) if the criteria in either of clause 48.2 or clause 48.3 are met.

48.5 If the criteria in either of clause 48.2 or clause 48.3 are not met, then
the Contractor shall be relieved of its obligations under clauses 4 and 40 to
the extent that it can demonstrate that such Deliverables are adversely affected
by the Attachment.

[49]           NOT USED.

PART H - GENERAL

50             SURVIVAL OF CERTAIN PROVISIONS

50.1 Following the termination of this Agreement for any reason whatsoever, the
following clauses shall survive in full force and effect, without limit in point
of time:

<TABLE>
<S>                              <C>
clause 4                         (Primary Obligation of Contractor and Warranties)
clause 15.1                      (Price)
clause 17                        (Payment of Reimbursable Costs)
clause 18                        (Liquidated Damages and Incentive Payment)
clause 30                        (Ownership)
clause 40                        (Warranty)
clause 41                        (Intellectual Property Rights and Confidentiality)
clause 51                        (Contractor's Liability for Damages or Breach)
clause 52                        (ICO's Liability for Damages or Breach)
clause 54                        (Consequences of Termination)
clause 62                        (Law and Jurisdiction)
clause 66                        (Agent for Service)
clause 72                        (Entire Agreement)
</TABLE>

51             CONTRACTOR'S LIABILITY FOR DAMAGES OR BREACH

51.1 In the event that any breach of this Agreement or act or omission by the
Contractor or any of its Sub-Contractors or any of their respective affiliated
undertakings or the employees or agents of any of them in the performance of
their duties in connection with this Agreement:

         (a)      causes or results in physical damage to or loss of any
                  tangible property of ICO or of any ICO Staff or third parties;
                  and/or

         (b)      causes or results in death or bodily injury to any ICO Staff
                  or to third parties,

the Contractor shall indemnify ICO against all ICO's liabilities and costs
resulting therefrom or arising in connection with the same.

                                       54
<PAGE>   56
51.2 If and insofar as any breach by the Contractor of this Agreement (including
the inadequate performance or the non-performance of any of its obligations
hereunder) shall result in any losses, damages, costs or liabilities for ICO
(other than any physical damage or loss of tangible property as described in
clause 51.1), the Contractor shall, subject always to clause 51.3, indemnify ICO
against any liabilities and costs of ICO resulting therefrom, provided that the
total liabilities of the Contractor to ICO in respect of the design,
development, creation, delivery,. installation or provision of any of the
Deliverables or arising from or in relation to any aspect of the ICO System
(whether under this indemnity or for breach of this Agreement or for negligence
or of whatsoever nature), including any liquidated damages paid or payable under
clause 18.1 but excluding any liabilities indemnified or to be indemnified under
clauses 41 or 51.1, shall not exceed in the aggregate 31% of the Price as the
same shall from time to time be adjusted in accordance with this Agreement.

51.3 Except in the circumstances described in clause 51.1(b), the Contractor
shall have no liability whatsoever to ICO for indirect, consequential, revenue
or other financial losses whether arising from breach of this Agreement or
negligence or otherwise (including for the avoidance of doubt any liability
which ICO may have to any Site Operators).

52        ICO'S LIABILITY FOR DAMAGES OR BREACH

52.1 In the event that any breach of this Agreement or act or omission by ICO or
any member of ICO Staff in the performance of their duties in connection with
this Agreement:

         (a)      causes physical damage to or loss of any tangible property of
                  the Contractor or any of its Sub-Contractors or any of their
                  respective affiliated undertakings or the employees or agents
                  or any of them or of their staff or third parties; and/or

         (b)      causes death or bodily injury to any member of their staff or
                  to third parties.

ICO shall indemnify the Contractor against all the Contractor's liabilities and
costs resulting therefrom or arising in connection with the same excluding any
indirect, consequential, revenue or other financial losses.

52.2 ICO will ensure that each of its agreements with Site Operators excludes or
limits., to the fullest extent permitted by the applicable law, any liability
which the Contractor or any other member of the NEC Team might otherwise have to
any Site Operator as a result of the incomplete performance or the
non-performance by the Contractor or any other member of the NEC Team of any
obligation assumed hereunder, except if and insofar as such liability may be in
relation to physical damage to or loss of tangible property, or death of or
bodily injury to any person.

52.3 In the event that a Site Operator shall bring a claim against the
Contractor or any other member of the NEC Team as a result of the incomplete
performance or non-performance by the Contractor or any other member of the NEC
Team of any of the obligations hereunder (the "claim"), ICO shall indemnify the
Contractor (for its own benefit or on behalf of the relevant member of the NEC
Team as the case may be) for any liabilities and costs directly resulting
therefrom, provided that:

         (a)      ICO shall not be liable to indemnify the Contractor or any
                  other member of the NEC Team under this Clause 52.3 in respect
                  of any claim for physical damage to or loss of tangible
                  property, or death or bodily injury to any person; and

         (b)      the Contractor shall procure that in respect of all claims
                  made by any of the Site Operators against the Contractor or
                  any other member of the NEC Team as referred to in this
                  clause, the relevant member of the NEC Team against whom the
                  claim is made shall bear in aggregate   *   in each period of
                  12 months commencing on the 3rd March in each year, or in the
                  case of Ericsson Limited   *   in aggregate in each such
                  period, of claims arising during the relevant period (other
                  than any amounts

         * Confidential Treatment Requested and the Redacted Material has been
           separately filed with the Commission.

                                       55
<PAGE>   57
                  claimed in respect of any indirect, consequential, revenue or
                  other financial loss or expense); and

         (c)      the Contractor shall procure that in respect of all those
                  claims which are in respect of any indirect, consequential,
                  revenue or other financial loss or expense made by any of the
                  Site Operators against the Contractor or any other member of
                  the NEC Team as referred to in this clause, the relevant
                  member of the NEC Team against whom the claim is made shall in
                  the period of six months after the date of execution of this
                  Agreement bear the first   *   in aggregate for all such
                  claims arising during the relevant period without recourse to
                  ICO and, in each period of 12 months commencing on the 3rd
                  September thereafter, bear the first   *   in aggregate for
                  all such claims arising during the relevant period; and

         (d)      ICO shall not be required to pay any amount by way of
                  indemnity under this clause in respect of any particular claim
                  in the event that the Contractor or any Sub-Contractor shall
                  have, in respect of the events or circumstances giving rise to
                  that claim, acted unlawfully, fraudulently, wilfully in breach
                  of any of the obligations undertaken by the Contractor in this
                  Agreement (whether or not binding on such Sub-Contractor) or
                  negligently (as such expressions would be interpreted in the
                  courts of England under English law).

ICO's indemnification of the Contractor or any other member of the NEC Team in
respect of any claim under this clause 52.3 shall be without prejudice to such
rights as ICO may have against the Contractor under this Agreement. The parties
shall use reasonable efforts to replace ICO's responsibility to indemnify the
Contractor and any other member of the NEC Team with mutually satisfactory
insurance arrangements as soon as possible.

52.4 ICO shall have sole conduct of the defence of any such claim as is referred
to in clause 52.3 on behalf of the Contractor unless either ICO shall fail
reasonably and diligently to defend the same or the Contractor shall reasonably
apprehend that one of the events referred to in clause 56.1 is about to arise in
relation to ICO. Neither ICO nor the Contractor shall admit liability or
otherwise settle or compromise any such claim without the prior consent of the
other (such consent not to be unreasonably withheld). If the Contractor wishes
any claim which is the subject of this clause to be settled or compromised on
terms which ICO is not willing to settle or compromise on (including where ICO
is prepared to settle or compromise on terms which the Contractor finds
unsatisfactory), then if ICO shall pay to the Contractor the sum which it was
willing to pay to the Site Operator to settle or compromise the claim ICO shall
be released and discharged from all further liability in respect of such claim.
The Contractor shall notify ICO promptly in the event of such claim being made
against it. ICO shall keep the Contractor informed of its progress on a timely
basis and, subject to the provisions of this sub-clause, keep the Contractor
indemnified against the consequences of its conduct of the claim.

53        ETHICAL STANDARDS

The Contractor undertakes to act, and to procure that its Sub-Contractors and
its or their employees or agents act in any business dealings in any way
relating to its arrangements with ICO, including the provision or procurement of
the provision of any services or goods pursuant to this Agreement, in an honest
and ethical manner and without resort to any unethical business practices,
including but not limited to bribery, corruption, extortion or the exertion of
improper or undue influence.

54        CONSEQUENCES OF TERMINATION

54.1 Upon termination of this Agreement, the Contractor shall, and shall procure
that each of the Sub-Contractors shall, deliver up to ICO all property of
whatsoever nature belonging to ICO or any ICO Staff which may be in its
possession or under its control or the control of any of their respective group
companies and affiliates and, so far as the same are employed in connection with
this

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

                                       56
<PAGE>   58
Agreement, any of their Sub-Contractors, agents or advisers. The preceding
provisions shall apply mutatis mutandis to the Contractor and the
Sub-Contractors.

54.2 If this Agreement shall be terminated at any time ICO and any ICO Staff are
hereby and shall remain, notwithstanding such termination, fully authorised upon
reasonable prior notice to enter on to the Contractor's and its Sub-Contractor's
premises in order to dismantle and remove all property belonging to ICO or any
of its affiliates or any ICO Staff and the Contractor shall co-operate with and
assist such persons in such task and shall procure access (on reasonable prior
notice and at reasonable times) for such ICO Staff from, and place a parallel
obligation upon, its Sub-Contractors. ICO shall use all reasonable endeavours to
ensure that no unnecessary disruption is caused to the Contractor or such
Sub-Contractor by reason of the removal of ICO's property. The preceding
provisions shall apply mutatis mutandis to the Contractor and the
Sub-Contractors in relation to the Sites and the Site Operators.

54.3 If this Agreement shall be terminated by ICO pursuant to clauses 56.1,
56.2(a) or (b) the Contractor shall, and shall procure that all the
Sub-Contractors shall:

         (a)      deliver up to ICO all the Deliverables in their then current
                  state and all materials which have been purchased for
                  inclusion in the Deliverables;

         (b)      make available to ICO without cost all designs, drawings and
                  plans which have been prepared in connection with or intended
                  for use in relation to the Works:

         (c)      in relation to computer programs which are not new and have
                  not been developed by or for the Contractor or the relevant
                  Sub-Contractor under this or in connection with this
                  Agreement, the necessary interfaces and licences to use such
                  computer programs on the basis referred to in clause 54.4; and

         (d)      in relation to any other computer programs (including any
                  which are new and/or developed by or for the Contractor or the
                  relevant Sub-Contractor under or in connection with this
                  Agreement) all source codes and object code versions thereof,

provided that if the Contractor shall be subject to any contractual restriction
preventing it from making the items referred to in (c) and (d) available to
ICO, the Contractor shall procure for ICO free access to the same for the
purposes referred to in clause 54.4. ICO shall treat all materials delivered up
pursuant to this clause as Confidential Information in accordance with the
provisions of clause 41.6.

For the avoidance of doubt any incomplete equipment, designs, drawings, computer
programs or plans prepared under or in connection with this Agreement shall be a
Deliverable.

54.4 In the circumstances referred to in clause 54.3, the Contractor shall
grant, and shall procure that each of the other members of the NEC Team and its
and their Sub-Contractors shall grant, to ICO sufficient worldwide, perpetual,
irrevocable, royalty free licences (including rights for ICO to grant
sub-licenses) under any NEC Team Intellectual Property Rights which are
comprised in or which have been selected and identified for inclusion in any of
the Deliverables acquired by ICO pursuant to clause 54.3 to enable ICO to
complete the development, implementation and construction of the ICONET Ground
Facilities and such licences shall permit ICO, either itself or through any
third parties, to make any modifications thereto as are considered desirable in
order to enable ICO to complete the ICO System and bring the same into use. ICO
shall treat any Confidential Information included in any such Intellectual
Property Rights in accordance with this Agreement.

54.5 If this Agreement shall be terminated by ICO pursuant to clauses 56.2(c) or
(d), the provisions of clauses 54.3 and 54.4 shall apply save that:

                                       57
<PAGE>   59
         (a)      ICO shall, to the extent that the total sums paid by it in
                  respect of Instalments of the Price (for the purpose of which
                  calculation of all Financed Invoices shall be deemed to have
                  been paid in full by ICO) are less than the total cost of
                  those of the Deliverables which ICO has either received
                  delivery of prior to the date of termination or which it shall
                  take delivery of following such date, pay to the Contractor
                  the amount of any shortfall (and where any Deliverable which
                  ICO shall receive as a consequence is incomplete, the cost of
                  the same shall be agreed between the parties);

         (b)      the Contractor shall, to the extent that the total sums paid
                  to it in respect of Instalments of the Price (for the purpose
                  of which calculation all Financed Invoices shall be deemed to
                  have been paid in full by ICO) are greater than the total cost
                  of those of the Deliverables which ICO has either received
                  delivery of prior to the date of termination or which it shall
                  take delivery of following such date, pay to ICO the amount of
                  any surplus;

         (c)      the licences referred to in clause 54.4 shall be limited to
                  the extent required to permit ICO to complete the development,
                  implementation and construction of the ICONET Ground
                  Facilities and such licences shall permit ICO, either itself
                  or through any third parties, to make any modifications
                  thereto as are required in order to enable ICO to complete the
                  ICO System and bring the same into use,

but if ICO shall not require to take delivery of any of the incomplete
Deliverables or the materials purchased therefor, it may by notice to the
Contractor exclude the same in which case the foregoing provisions of this
clause 54.5 shall only apply to those Deliverables which ICO shall elect to
receive.

54.6 If ICO shall terminate this Agreement for convenience in accordance with
clause 56.3, the Contractor shall following receipt of such notice of
termination take the following actions:

         (a)      to the extent specified in the notice of termination, stop
                  work under this Agreement on or as soon as reasonable
                  practicable after the date of receipt of such notice and
                  without delay take all necessary steps to wind down production
                  and avoid incurring unnecessary further expense, except to the
                  extent required to continue or complete those aspects of the
                  Works which the notice of termination shall require to be
                  continued or completed;

         (b)      place no further orders or sub-contracts for materials,
                  services or facilities except as may be necessary for
                  completion of those aspects of the Works which the notice of
                  termination shall require to be continued or completed;

         (c)      terminate orders and sub-contracts to the extent that they
                  relate to the performance of Works which the notice of
                  termination shall not require to be continued or completed;

         (d)      settle all outstanding liabilities and

         (e)      take such action as may be necessary, or as ICO may reasonably
                  direct, for the protection and preservation of the property
                  related to this Agreement which is in the possession of the
                  Contractor or any Sub-Contractor and in which ICO has or may
                  acquire an interest pursuant to the provisions of clause 54;
                  and

         (f)      to the extent specified in the notice of termination, continue
                  work under this Agreement.

54.7 The Contractor shall promptly following receipt of a notice of termination
given under clause 56.3 take all reasonable steps to minimise, limit and
quantify the costs and expenses incurred by the Contractor in connection with
the performance of its obligations under this Agreement and shall terminate any
sub-contracts, in so far as possible, on normal commercial terms (which may
include an

                                       58
<PAGE>   60
allowance for the sub-contractors' proper commercial profit determined in
accordance with common practice in the industry concerned).

54.8 Within 60 days after determination of the cost of all Works terminated,
the Contractor shall submit to ICO its invoice in respect of the Termination
Payment, and within 60 days after delivery by the Contractor of an invoice in
respect of the Termination Payment, ICO shall pay the outstanding amount
thereof, subject always to compliance by the Contractor with clauses 54.10 and
54.11. The Termination Payment shall be the aggregate sum consisting of the
Direct Costs of all work done to the date of actual termination of the Works,
whether or not completed, together with pre-payments which are non-refundable to
the Contractor, and the settlement and other costs connected with the
termination of orders and sub-contracts pursuant to clause 54.7 less the total
of all amounts already paid by ICO to the Contractor in respect of the Works for
the purpose of which calculation all Financed Invoices shall be deemed to have
been paid in full by ICO, including for the avoidance of doubt all costs which
have been paid pursuant to clause 15, adjusted by agreement between the parties
(failing which as may be determined in accordance with clauses 65 and 62) where
required to take account of any failure of the Contractor to comply with clause
54.6.

The term "Direct Costs" as used herein includes only those costs set out in
clause 54.9 which have been posted to the Contractor's books of account in
accordance with its standard accounting practice for commercial contracts,
consistently applied. To the extent that the Direct Costs relate to the internal
labour costs and expenses (other than tax and social security or similar costs)
of the members of the NEC Team and their respective affiliated companies such
sum shall be subject to a mark-up not exceeding 22% of such costs and expenses.

In no event shall the Termination Payment, when aggregated with the amounts
already paid or deemed to have been paid by ICO to the Contractor in respect of
the Works, exceed the Price.

54.9 For the purposes of this clause 54, "Direct Costs" comprise:

         (a)      the full salary, payroll taxes and standard benefits and other
                  direct employment costs of those personnel employed by any
                  member of the NEC Team or by any of their respective
                  affiliated undertakings for that period during which they can
                  demonstrate that they have been actively engaged in the Works;

         (b)      the reasonable cost of all materials purchased by the NEC Team
                  reasonably necessarily and wholly and exclusively for the
                  purposes of fulfilling the requirements of this Agreement;

         (c)      the reasonable and proper costs of Sub-Contractors employed by
                  the NEC Team, where applicable, with the consent of ICO,
                  necessarily for the purposes of fulfilling their obligations
                  under this Agreement save to the extent such costs are taken
                  into account pursuant to clause 54.7;

         (d)      the reasonable travelling and lodging costs of those members
                  of the NEC Team's personnel who are assigned to work on a full
                  time basis under this Agreement at locations outside the
                  country of their usual employment and of those personnel whose
                  travel is reasonably necessarily required for the purposes of
                  implementing this Agreement;

         (e)      the office rental costs (apportioned by reference to the
                  proportion of the floor area used by the Contractor
                  exclusively for the purposes of this Agreement) associated
                  with the Contractor maintaining a project office in the
                  Hammersmith area or any replacement therefor during the
                  currency of this Agreement; and

                                       59
<PAGE>   61
         (f)      the costs of delivering any items required to be delivered to
                  ICO as referred to in clause 54.11.

but, for the avoidance of doubt, the following to the extent that they might
otherwise fall within any of the foregoing are excluded:

         (g)      all central overhead expenses including the costs of all
                  support or liaison staff or staff whose principal activities
                  are on matters other than this Agreement;

         (h)      office and equipment costs, depreciation, leasing and hire
                  charges, any goods or materials of general application or for
                  which there is use after the period of the Agreement, interest
                  and like charges;

         (i)      licence fees, communications costs, other costs associated
                  with the organisation and/or co-ordination of the NEC Team.

54.10 Payment of the Termination Payment shall be subject to the Contractor
justifying to ICO's reasonable satisfaction the amount of the costs and expenses
and any other adjustments so claimed and producing such evidence of such costs
and expenses as ICO may reasonably require. If ICO so requests, the Contractor
shall provide, and shall procure that any Sub-Contractors provide, sufficient
evidence to the external auditors of the Contractor (being a firm of independent
certified public accountants (or equivalent)) or, where such accountants are
unwilling to act in the capacity contemplated by this clause 54.10, another
firm of certified public accountants of international repute agreed between the
parties, to enable such accountants to certify to ICO that any and all costs and
expenses claimed by the Contractor from ICO in connection with the Termination
Payment have been properly incurred for the purposes of this Agreement and have
been properly computed. In the absence of such certification if so requested by
ICO, ICO shall not be obliged to pay any such amount claimed and, where such
accountants certify a lesser sum than that claimed by the Contractor, ICO shall
be obliged to pay only such lesser sum The accountants' fees for carrying out
such certification shall be borne by ICO.

If ICO disagrees with the amount of the Termination Payment claimed by the
Contractor, ICO shall pay so much of the amount claimed as is undisputed to the
Contractor within 30 days of receipt of the Contractor's invoice and the balance
shall be payable with 30 days after determination of the final amount due,
provided that if the amount in dispute shall exceed 25% of the Contractor's
claim ICO shall pay the disputed amount into the Escrow Account pending final
resolution of the amount of the Termination Payment.

54.11 Title to all complete Deliverables not previously delivered, any
incomplete Deliverable and any materials purchased for the purposes of and any
components which would have been incorporated into a Deliverable which is
incomplete at the date of a termination notice given under clause 56.3, shall,
upon payment in full of all amounts due hereunder, vest in ICO and the
Contractor shall deliver, and procure that any Sub-Contractor delivers, all such
items to ICO (who shall accept delivery). All such items of the Works which are
under the custody or control of the Contractor shall until delivery to ICO be
insured by the Contractor at its cost.

54.12 The Contractor shall, and shall procure that each of the members of the
NEC Team and its and their Sub-Contractors shall deliver up forthwith to ICO
upon payment by ICO of the Termination Payment payable to the Contractor under
this Agreement all the documentation, drawings, plans, and specifications
produced for the performance of this Agreement to the extent not previously
delivered. The Contractor shall, and shall procure that each of the members of
the NEC Team and their Sub-Contractors shall, upon written request of ICO, grant
to ICO and such persons as ICO shall nominate, those rights as referred to in
clause 54.4.

54.13 If it is reasonably feasible for the Contractor to utilise elsewhere and
within a reasonable period for their intended purposes any materials purchased
for the purposes of and any components

                                       60
<PAGE>   62
which were to be incorporated into the Deliverables which are incomplete at the
date of termination under clause 56.3, ICO shall have the right to reject
delivery of such components and the inclusion of the cost of the same in the
Termination Payment.

54.14 The Contractor shall use reasonable efforts to place sub-contracts on
terms that will enable the Contractor to terminate the same in a manner
consistent with this clause.

55.            FORCE MAJEURE

55.1 Force majeure refers to events extrinsic to this Agreement that are beyond
the reasonable control of, and not attributable to negligence or other fault of,
the party relying on such events to excuse its failure to perform. The term:

         (a)      excludes strikes or other events caused by labour disputes
                  between any member of the NEC Team (which for this purpose
                  includes all corporate bodies under the control of the body
                  corporate which ultimately directly or indirectly has control
                  of the relevant member of the NEC Team) and their employees;

         (b)      excludes any event giving rise to the party which would
                  otherwise seek to rely on such event being actually or
                  prospectively unable to perform any financial obligation under
                  this Agreement: but

         (c)      (subject to paragraph (b) above), includes changes in the laws
                  and regulations as referred to in clauses 63.5 and 63.6.

55.2 Any party whose ability to perform is affected by a force majeure event
shall take all reasonable steps to mitigate the impact of such event.

55.3 If the effect of a force majeure event is temporary, the party affected
shall, to the extent that the event of force majeure shall affect its ability to
perform its obligations under this Agreement, not be responsible for any
consequent delay, and any affected Top Level Milestone shall be extended
accordingly, if and only if notice of the event is given to the other party,
specifying in such notice that the affected party is treating the circumstances
as an event of force majeure, within ten (10) days after the event has come, or
should reasonably have come, to the affected party's attention.

Upon or following receipt of such a notice, the non-affected party shall, to the
extent that the event of force majeure affecting the other party shall affect
its own ability to perform its obligations under this Agreement, be entitled to
treat such circumstances as an event of force majeure of its own.

At the time of the notice of the occurrence of the event or as soon thereafter
as possible, the party affected shall inform the other party of the extent of
the delay expected as a result of the event and propose possible measures which
could be taken in order to minimise such delay. As soon as the circumstances
constituting force majeure shall have ceased to have effect, the obligations of
the affected party shall continue.

55.4 An event of force majeure shall not excuse the obligation to make payment
of any invoice which was properly issued by the other party prior to the
commencement of the event of force majeure.

56             TERMINATION

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<PAGE>   63
56.1 Without prejudice to any other rights or remedies which the relevant party
may possess, either party ("the terminating party") shall be entitled to
terminate this Agreement in its entirety in the event that the other party ("the
non-terminating party") shall suspend payment of its debts generally, seek
protection from its creditors or otherwise enter into any form of insolvency or
bankruptcy proceedings (howsoever described) or any of its creditors shall seize
any of its assets (whether under any security interest or otherwise) or any
moneys owed by it shall become due for payment by reason of acceleration or
default on the part of the non-terminating party or its shareholders shall take
steps or pass any resolutions to wind up (otherwise than in connection with a
solvent reconstruction or amalgamation previously approved by the
non-terminating party) or any analogous thing by whatever name it is known,
shall happen in any jurisdiction.

56.2 Without prejudice to any other rights or remedies which ICO may possess,
ICO shall be entitled, without liability to the Contractor in respect of such
termination (but without prejudice to any obligations or rights under this
Agreement expressed to survive termination) to terminate this Agreement in whole
at any time by service upon the Contractor of a written notice in accordance
with clause 59 if:

         (a)      the Contractor, the Principal Sub-Contractors, or any of their
                  respective Sub-Contractors to whom any material aspects of the
                  Works shall have been subcontracted shall without reasonable
                  cause, suspend the carrying out of the Works before the Level
                  2 Acceptance Date in any material respect or to any material
                  extent and the Contractor is unable to satisfy ICO that it is
                  or will be able to complete all or any substantial aspect of
                  the Works in accordance with the Top Level Milestone Schedule;
                  or

         (b)      the Contractor shall be in breach of any of its material
                  obligations under this Agreement; or

         (c)      a force majeure event (as defined in this Agreement) has or
                  might reasonably be expected to have a permanent or
                  unavoidable effect on the ability of the Contractor to provide
                  to ICO by the Level 2 Acceptance Date (but without taking into
                  account any adjustment which may be made to such date by
                  reason of the force majeure event) the functionalities
                  described in the IGFR across the complete ICONET Ground
                  Facilities; or

         (d)      a force majeure event (as defined in this Agreement) either
                  has the effect of severely constraining ICO from complying
                  with the terms of this Agreement (save insofar as this
                  Agreement creates any financial obligation on ICO) or clauses
                  63.5 or 63.6 apply,

and in any case falling under clauses 56.2(a) or 56.2(b) the Contractor (or, as
the case may be, the Principal Sub-Contractors, or any of their respective
Sub-Contractors to whom any material aspects of the Works shall have been
subcontracted) fails to remedy or procure the remedy of the same within a period
of 30 days (or such longer period as may have been specified in the notice)
after receipt of written notice from ICO to the Contractor, requiring such event
to be remedied and in any case falling under clauses 56.2(c) or 56.2(d) the
relevant force majeure event continues on the date the notice of termination
would take effect in accordance with clause 59 provided that ICO undertakes that
it will not exercise its right to terminate this Agreement if the Level 2
Handover Date shall not have occured within 135 days after the Level 2
Acceptance Date so long as there shall be no other circumstances in existence at
any time during that period permitting ICO to terminate this Agreement.

56.3 ICO shall be entitled, without liability to the Contractor in respect of
such termination other than to make such Termination Payment as may be payable
under clause 54 (and without prejudice to any obligations or rights under this
Agreement expressed to survive termination) to terminate this Agreement in whole
at any time for convenience by service upon the Contractor of a written notice
in accordance with clause 59 and may in its notice of termination require the
Contractor to continue or complete any aspect of the Works which shall then have
been commenced.

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<PAGE>   64
56.4 The Contractor shall be entitled to terminate this Agreement in whole at
any time by service upon ICO of a written notice in accordance with clause 59
if:

         (a)      the Contractor is owed any sum by ICO in excess of
                  US$5,000,000 which shall have fallen due for payment and be
                  payable in accordance with the terms of this Agreement and ICO
                  shall have acknowledged in writing by the Supervising Officer
                  or any of its other officers or directors that any such sum is
                  due and payable to the Contractor, or

         (b)      ICO shall have failed to pay into the Escrow Account any
                  Disputed Amount (other than any Disputed Amount not exceeding
                  US$1,000,000),

         and in either case

         (i)      the Contractor shall not itself be in any material respect in
                  breach of its obligations under this Agreement, (such breach
                  (if any) to have been notified by ICO to the Contractor in
                  writing in sufficient detail to provide a proper understanding
                  of ICO's reasons why it considers the Contractor to be in
                  breach before the notice of termination would take effect in
                  accordance with clause 59); and

         (ii)     ICO shall have failed before the notice of termination would
                  take effect in accordance with clause 59 either to pay to the
                  Contractor all overdue sums together with interest thereon
                  calculated in accordance with clause 16 or to pay any Disputed
                  Amounts into the Escrow Account.

56.5 Save as set out in clauses 56.1 and 56.4, the Contractor shall not be
entitled to terminate this Agreement for any reason and for so long as this
Agreement continues in effect (and notwithstanding that ICO may be permitted to
exercise rights of termination) the Contractor shall continue (for so long as
all of its obligations hereunder have not been suspended pursuant to clause 55)
diligently to perform its obligations hereunder.

56.6 Termination of this Agreement shall be without prejudice to any antecedent
or accrued rights and liabilities of the parties. ICO shall have no
responsibility for the division amongst the members of the NEC Team of any sums
payable under this Agreement, including any sum paid in consequence of
termination of this Agreement, which shall be entirely a matter for the
Contractor.

57            WAIVER

A waiver of any breach of any provision hereof shall not be binding upon either
party unless made in writing but once so made shall, unless it is expressed to
be revocable, be irrevocable. No such waiver shall affect the rights of the
party not in breach with respect to any other or future breach of this
Agreement. No delay or failure by a party to exercise any of its rights, or time
or indulgence given by it before exercising any right or remedy under this
Agreement shall operate as a waiver of the same nor shall any single or partial
exercise of a right or remedy preclude any further exercise of the same or the
exercise of any other right or remedy.

58            AMENDMENTS

58.1 This Agreement (other than with respect to its scope pursuant to clause 9)
may not be modified except by written amendment signed by both the Supervising
Officer and the Contractor's Authorised Representative save that the address for
notices and the responsible authorised representatives of the parties may be
added to or changed from time to time by written notice to the other party.

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<PAGE>   65
58.2 Where in the course of the administration of this Agreement (otherwise than
under clauses 8 and 9) any communication is given or received which, if
implemented, would modify or affect the rights, responsibilities or obligations
of any party, then if such communication is given by ICO, the Contractor shall
ensure that such communication is approved in writing by the Supervising Officer
and if such communication is given by the Contractor, ICO shall ensure that such
communication is approved in writing by the Contractor's Authorised
Representative. In the absence of such approval the receiving party shall not be
entitled to rely on such communication as being binding on, and such
communication may not be binding on, the party giving the same.

59            COMMUNICATIONS AND NOTICES

59.1 All notices or other communications (except Deliverables delivered in
accordance with the Statement of Work), required to be given or served under or
in connection with this Agreement shall be in writing and shall be delivered in
the manner prescribed in clause 59.4 to the address of the party concerned given
in clause 59.2 and as the same may from time to time be amended in accordance
with clause 59.3.

59.2 For the purposes of clause 59.1:

ICO's details are:

In the case of a formal notice (including any notices of demand for payment or
termination) or any legal proceedings to be given to or served on ICO, the
original shall be sent to:

       PO Box 1350
       Huntlaw Building
       Fort Street
       George Town
       Grand Cayman

       Facsimile: (+1) 345 949 7876
       Marked for the attention of the Company Secretary

and a copy thereof shall be sent at the same time to ICO Services Limited at the
address set out below.

All other notices and other communications referred to in clause 59.1 shall be
sent to:

       ICO Global Communications (Operations) Limited
       c/o ICO Services Limited
       1 Queen Caroline Street
       London W6 9BN
       England

       Facsimile: (+44) 0181 600 1199
       Marked for the attention of Gary Titzer

The Contractor's details are:

       NEC-ICO Project Team Office
       5th Floor Horatio House

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<PAGE>   66
       77-85 Fulham Palace Road
       Hammersmith
       London W6 8JC
       England

       Facsimile: (+44) 0181 600 4290
       Marked for the attention of Tadeo Furukawa

and a copy thereof of all formal notices shall be sent at the same time to NEC
Corporation at the address set out at the head of this Agreement.

59.3 Either party may from time to time amend its address and/or facsimile
number and/or the persons to whose attention notices or other communications or
copies thereof are to be given for the purposes of this clause 59 by giving
notice in writing to the other party.

59.4 For the purposes of clause 59.1 a notice or other communication shall be
either delivered personally or sent by registered or recorded delivery prepaid
first class post (or airmail if overseas), or by facsimile addressed to the
intended recipient thereof and any such notice or other communication shall take
effect:

         (a)      if delivered personally, at the time of its delivery; or

         (b)      if sent by registered or recorded delivery prepaid first class
                  post (or airmail if overseas), at 10.00 am on the fifth
                  working day following the time of posting (or in the case of
                  airmail post, at 10.00 am on the seventh working day following
                  the time of posting), and in proving such service it shall be
                  sufficient to prove that the envelope containing the notice or
                  other communication was properly addressed, stamped and
                  posted; and

         (c)      if transmitted by facsimile, (and provided that the
                  transmission record of the sender indicated delivery of all
                  pages of the same to the relevant facsimile number), at 10.00
                  am falling on the first working day following the time of
                  dispatch (which may, for the avoidance of doubt, be on the
                  same working day as that on which it is despatched) subject to
                  a copy of the notice or other communication being dispatched
                  by post within 24 hours of the time of despatch of the
                  facsimile.

For the purposes of this clause 59.4, a "working day" is a day on which
commercial banks are generally open for business in the location of the
recipient and reference to local time in such place. References to "time of
posting" and "time of despatch" are to the local time in the place where the
sender is located. In order to calculate elapsed time, the local time and day in
the intended place of receipt shall be determined from and by reference to the
time difference between that place and the actual time of posting or time of
despatch in the sender's location.

59.5 Notices under clause 56 shall take effect as follows:

         (a)      if given under clause 56.1, 14 days after the relevant notice
                  is received or deemed to have been received in accordance with
                  clause 59.4 unless at the expiry of such period of 14 days the
                  relevant condition, event or circumstances shall have ceased
                  to apply:

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<PAGE>   67
         (b)      if given under clause 56.2 (a) or (b), upon expiry a period of
                  not less than 30 days (or such longer period as may be
                  specified in the notice) after the relevant notice is received
                  or deemed to have been received in accordance with clause 59.4
                  unless at the expiry of such period of 30 days (or longer
                  period as may have been specified) the relevant condition,
                  event or circumstances shall have ceased to apply;

         (c)      if given under clause 56.1(c) or (d), 14 days (or such longer
                  period as may be specified in the notice) after the relevant
                  notice is received or deemed to have been received in
                  accordance with clause 59.4 unless at the expiry of such
                  period of 14 days (or longer period as may have been
                  specified) the relevant force majeure event shall have ceased
                  to apply;

         (d)      if given under clause 56.3, on the day the relevant notice is
                  received or deemed to have been received in accordance with
                  clause 59.4 (or such later date as may be specified in the
                  notice or upon the satisfaction of such conditions as may be
                  specified in the notice); or

         (e)      if given under clause 56.4(a) or (b), upon expiry of a period
                  of not less than 60 days (or such longer period as may be
                  specified in the notice) after the relevant notice is received
                  or deemed to have been received in accordance with clause 59.4
                  unless at the expiry of such period of 60 days (or longer
                  period as may have been specified) the relevant payment shall
                  have been made either to the Contractor or into the Escrow
                  Account (as the case may be), and such notice shall not be
                  valid unless it shall prominently specify that it is a
                  termination notice given under clause 56.4 and state the
                  amount of money which the Contractor claims is overdue for
                  payment and, in sufficient detail to enable ICO to investigate
                  the same, the circumstances which the Contractor alleges gives
                  rise to such sums becoming due for payment.

60            PUBLICITY

Neither party, and the Contractor shall procure that none of its
Sub-Contractors, nor any of the group companies, affiliates or Sub-Contractors
or any of their respective agents, advisers, employees or consultants of the
Contractor or its Sub-Contractors shall make any announcements, news releases or
other public statements regarding this Agreement or its subject matter without
the prior written approval of both the Contractor and ICO, such approval not be
unreasonably withheld or delayed.

61            INFORMATION RECORDING

The Contractor shall record, update and maintain all documents to be delivered
under this Agreement up to the Level 2 Handover Date in accordance with the
documentation configuration control process to be established as a part of the
Programme Management Plan referred to in the Statement of Work.

62            LAW AND JURISDICTION

62.1         This Agreement shall be governed by, and construed in accordance
with, English law.

62.2         Subject to clause 62.3, the Courts of England shall have exclusive
jurisdiction in relation to all disputes or matters which may arise as between
the parties out of or in connection with this Agreement.

62.3         Neither ICO nor the Contractor shall commence or pursue any
proceedings against the other in relation to any dispute or matter which may
arise between them out of or in connection with this Agreement other than in the
Courts of England, except for the purpose of enforcing a judgement or order of
the Courts of England.

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<PAGE>   68
62.4 Each of ICO and the Contractor waives for the exclusive benefit of the
other of them any objection on the ground of inconvenient forum to any
proceedings which relate to this Agreement being brought in the Courts of
England or, for the purposes only of enforcement of any judgement or order as is
referred to in clause 62.3, in any other court.

62.5 In clause 62, "proceedings" means proceedings of any kind, including an
application for a provisional or protective measure.

63            CHANGE OF LAW

63.1 If at any time as a consequence of either any change of law (whether
effected through constitutional means or otherwise) or any actions or
restrictions or other interference imposed by any governmental body (or any body
or persons claiming governmental authority) or any international trade or
similar embargo affecting any of the countries in which the Sites are located or
the commencement of hostilities (whether formally declared or not) against any
nation or any state, province or other political subdivision of any nation
(including for this purpose against any separatist movement claiming an
entitlement to be a separate nation, state, province or other political
subdivision) affecting any of the countries in which the Sites are located it
shall become impossible or impracticable to give effect to this Agreement or any
part of it or otherwise to perform the Work on the relevant Site(s), then this
clause 63 shall apply.

63.2 If any changes in the laws and regulations referred to in clauses 4.1(g)
or (h) which may inhibit or prevent the Equipment, Software or other
Deliverables which is or shall be specified in or is to be supplied under this
Agreement being lawfully used for the purposes of the ICONET Ground Facilities
in any of the countries where the Sites are located then this clause 63 shall
apply.

63.3 As soon as either party becomes aware of any such circumstances as are
referred to in clauses 63.1 or 63.2 it will notify the other party and the
parties shall discuss how to overcome the effects of such changes and shall work
together so as to mitigate the effects of such circumstances. Where practicable,
they shall make such amendments to this Agreement or any part of it in
accordance with the procedures set out in clause 9 so as to enable the impact of
such occurrence to be minimised.

63.4 If any of the circumstances referred to in clause 63.1 shall come into
existence and continue for a continuous period of at least 30 days in relation
to any particular Site and it shall not be reasonably practicable in the
reasonable opinion of ICO to make amendments as contemplated by clause 63.3,
then upon service of a written notice by ICO to the Contractor under this
clause, the Contractor shall assist ICO in establishing and equipping an
alternative site that ICO designates for use as a satellite land earth station
or network management centre with all necessary connections. Such assistance
shall be at ICO's cost but on substantially the same basis and terms as those
contained elsewhere in this Agreement.

63.5 If any of the circumstances referred to in clause 63.1 shall come into
existence and continue for a continuous period of at least 30 days in a manner
which either immediately or prospectively will affect a number of the Sites such
that the ICONET Ground Facilities and other elements of the ICO System can not
or will not be able to deliver the desired functionalities specified in the IGFR
without significant modification and it shall not be reasonably practicable in
the reasonable opinion of ICO to make amendments as contemplated by clause 63.3,
then upon service of a written notice by ICO to the Contractor under this
clause. ICO shall be entitled to treat such circumstances as an event of force
majeure.

63.6 In any of the circumstances referred to in clauses 63.3 or 63.4 and where
there is a reasonably practicable method to overcome the changes in law or
regulation giving rise to such circumstances, the Contractor undertakes that it
will offer to provide such changes to the scope of the Works or the location of
the Deliverables at fair prices and on reasonable terms and shall, upon ICO's
request, promptly

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<PAGE>   69
provide such evidence as ICO may reasonably require to establish that the prices
and terms offered are fair and reasonable.

If ICO considers that the Contractor is unable to offer to provide such changes
to the scope of the Works or the location of the Deliverables in a manner such
that it is reasonably practicable to overcome the changes in law or regulation
giving rise to such circumstances on a basis which is consistent with this
Agreement (whether or not the Contractor shall have proposed fair and reasonable
terms for implementing the same), then ICO shall be entitled to treat such
circumstances as an event of force majeure.

64            EXPORT CONTROL REGULATION

64.1 It is expressly agreed by the parties that the execution of this Agreement
and the subsequent performance of the Works will be subject to all applicable
export control laws and regulations imposed or administered by whichever
government has competent jurisdiction.

64.2 The Contractor warrants that at the time of execution of this Agreement
there are no applicable export control laws and regulations under clause 64.1
which will prevent performance of this Agreement.

65            DISPUTES RESOLUTION PROCEDURE

If a dispute arises, whether before or after the Level 2 Handover Date, the
procedure set out in Schedule 3 shall apply.

66            AGENT FOR SERVICE

66.1 In relation to any dispute arising out of or in connection with this
Agreement, each of the Contractor and ICO shall at all times until six years
after the termination of this Agreement maintain an agent for service of process
in England and agrees that service on such agent (or any replacement agent
appointed hereunder) shall be deemed to be due service for the purposes of such
proceedings.

66.2 For the purposes of clause 66.1 the Contractor hereby irrevocably appoints
NEC Europe Limited at its registered office for the time being as its agent for
service of process and ICO hereby irrevocably appoints ICO Services Limited at
its registered office for the time being as its agent for service of process.

66.3 If for any reason an agent appointed under this clause 66 ceases to act as
such, the Contractor or ICO (as appropriate) shall promptly appoint another such
agent and notify the other party of the appointment and the name and address of
the new agent.

67            SUPERVISING OFFICER AND CONTRACTOR'S AUTHORISED REPRESENTATIVE

67.1 ICO's Supervising Officer may be changed from time to time by notice in
writing to the Contractor. Until further notice the Supervising Officer shall be
Gary Titzer.

67.2 The Contractor's Authorised Representative may be changed from time to time
by notice in writing to ICO. Until further notice the Contractor's Authorised
Representative shall be Tadeo Furukawa.

67.3 Either party may rely upon notices from the other party without being
obliged to validate the signature of the Supervising Officer or the Contractor's
Authorised Representative.

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<PAGE>   70
68            NO PARTNERSHIP

Nothing herein shall create a joint venture or partnership between the parties
nor, save as specifically provided in this Agreement, constitute one party the
agent of the other party.

69            SUCCESSORS

This Agreement shall be binding upon the parties hereto and their successors and
permitted assigns.

70            ASSIGNMENT

70.1 Upon giving prior written notice to the Contractor, the benefit of this
Agreement may be assigned by ICO to any subsidiaries of ICO or other companies
within the ICO Group (being companies under the control of the ultimate holding
company of ICO from time to time) any such company being referred to as a
"member of the ICO Group", provided that prior to any company to which the
benefit of this Agreement has been assigned ceasing to be a member of the ICO
Group, ICO shall procure that such company assigns this Agreement to any company
which will remain a member of the ICO Group. No other assignment shall be
permitted by ICO without the prior written consent of the Contractor.

70.2 This Agreement shall not be assignable by the Contractor. The Contractor
shall ensure that the Principal Sub-Contractors will not be allowed to assign
(other than to their subsidiaries or other companies within the same group of
companies of which they are a member) any contracts which they enter into with
the Contractor pursuant to this Agreement.

71            LANGUAGE

All correspondence, notices, documentation and communications concerning this
Agreement shall be in the English language. ICO may require, subject to
agreement of any required adjustment to the Price, where appropriate, that
operating and maintenance instructions, name and rating plates, identification
labels, safety warnings and other written and printed matter required in
connection with the Equipment and all instructions or notices to the public
and/or ICO Staff shall be written in English and one or more principal languages
of the country in which the same are to be installed or used.

72            ENTIRE AGREEMENT

This Agreement together with all the Schedules and Annexures hereto and any side
letters entered into contemporaneously herewith contains the entire agreement
and understanding between the parties relating to or thereto the subject matter
hereof. All prior understandings, representations and warranties by and between
the parties, written or oral, which may be related to the subject matter hereof
in any way, are superseded by this Agreement, but this provision shall not
affect any rights which ICO may have in relation to the IPC.

73            SEVERABILITY

In the event any one or more of the provisions of this Agreement shall, for any
reason, be held to be invalid or unenforceable, the remaining provisions of this
Agreement shall be unimpaired, and the invalid or unenforceable provision shall
be replaced by a mutually acceptable provision which, being valid and
enforceable, comes closest to the intention of the parties underlying the
invalid or unenforceable provision and, where necessary, satisfies the concerns
of the regulatory authorities concerned.

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<PAGE>   71
74            COSTS

All costs and expenses incurred by the parties in connection with the
negotiation and entry into of this Agreement shall be borne by the party
incurring the same.

75            COUNTERPARTS

This Agreement or any agreement expressed to be supplemental hereto may be
executed in two or more counterparts and by different parties on separate
counterparts, each of which when so executed and delivered shall be an original,
but all such counterparts shall constitute one and the same instrument.

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<PAGE>   72
IN WITNESS whereof this agreement has been duly executed by the parties on the
date stated above.

SIGNED by Olof Lundberg                       /s/ Olof Lundberg
for and on behalf of                          --------------------------
ICO GLOBAL COMMUNICATIONS
(OPERATIONS) LIMITED
in the presence of:

       G.L. Titzer
--------------------------

SIGNED by Hisashi Kaneko                      /s/ Hisashi Kaneko
for and on behalf of NEC CORPORATION          --------------------------
in the presence of:

           *
--------------------------

                                                        (picture of six Japanese
                                                             postage stamps)

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<PAGE>   73
SCHEDULE 1: DEFINITIONS

The words and expressions used in this Agreement including its schedules,
annexures and attachments shall, when written using capital letters in the
manner below, unless the contrary intention appears, have the meanings set
against them in this Schedule:

         "Acceptance Certificate" shall mean an acceptance certificate issued
         pursuant to clause 35.2.

         "ADC" shall mean an Administration and Data Centre which can provide
         off line processing of all call records, customer data registrations
         and operator workstations for the provision of help and other services.

         "Agreed Rate" shall mean in relation to any amount for any period:

         (a)      LIBOR plus 3%, if and for so long as such amount is due and
                  payable under the terms of this Agreement and either:

                  (i)      the party owing the obligation is not disputing the
                           same pursuant to clause 16.5 or, in the case of ICO,
                           claiming to be entitled to defer payment pursuant to
                           clause 15.3;1 or

                  (ii)     the party owing the obligation is in default of an
                           obligation to pay the amount into the Escrow
                           Account; and

         (b)      LIBOR plus 2% in any other case.

         For these purposes "LIBOR" in relation to any period means the 3 months
         US$ LIBOR rate as at 11.00am London time on the first day of such
         period (or, if that is not a business day, on the immediately preceding
         business day) as quoted (on a per annum basis) in the Financial Times,
         London edition under the heading "Interbank Fixing", on the next
         business day following such first day (or, if for any reason such
         quotation ceases to exist or be appropriate such equivalent alternative
         US$ LIBOR rate as the parties may agree, such agreement not to be
         unreasonably withheld by either party) provided that if a period lasts
         for more than 3 months, then interest shall be calculated by reference
         to successive periods of 3 months with the LIBOR rate being re-set as
         above at the start of each such period.

         "Cash Invoice" shall mean an invoice (substantially in the relevant
         approved form set out in Schedule 4 and containing all the information
         referred to in that form) issued by the Contractor to ICO for the Cash
         Portion of one or more Instalments.

         "Cash Portion" in relation to any Instalment shall mean the whole of
         that Instalment less any Financed Portion.

         "Confidential Information" shall mean any confidential, technical or
         commercial information provided by one of the parties (including for
         this purpose any member of the NEC Team) whether in oral or written
         form, which may include (but shall not be limited to) specifications,
         drawings, sketches, models, samples, reports, data, techniques,
         designs, know-how, documentation, trade secrets or other technical or
         commercial information designated as "Confidential" under the terms of
         this Agreement.

         "Deferred Cash Invoice" in relation to any failure by the Contractor to
         achieve a Top Level Milestone by the date 21 days after its Milestone
         Date shall mean any Cash Invoice which was issued prior to that
         Milestone Date and would, but for clauses 15.2 and 15.3, have a
         Relevant

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<PAGE>   74
         Payment Date more than 21 days after the relevant Milestone Date and
         any Cash Invoice which was issued in the period commencing with the
         Milestone Date and ending on the actual date of the achievement by the
         Contractor of the relevant Top Level Milestone.

         "Deliverables" shall mean the items required to be delivered by the
         Contractor to ICO under this Agreement as more particularly specified
         and/or defined in the Statement of Work.

         "Determination" shall mean an agreement between the parties or a
         determination by the Disputes Resolution Procedure established pursuant
         to clause 65 or by a court of competent jurisdiction and "Determined"
         shall be construed accordingly.

         "Disputed Percentage" in relation to any Instalment in respect of which
         the Contractor has issued an invoice which is disputed in whole or part
         by ICO shall mean the percentage of such claimed Instalment which is
         disputed by ICO.

         "Equipment" shall mean all materials, plants and hardware supplied or
         to be supplied by the Contractor, for inclusion in the Works.

         "Escrow Account" shall mean an account to be established by the Escrow
         Agent with a bank agreed between the parties in London or such other
         jurisdiction as the parties may agree in the name of the Escrow Agent,
         which shall be operated in accordance with clause 16 and the other
         relevant provisions of this Agreement.

         "Escrow Agent" shall mean such bank or other person as the parties may
         agree.

         "Escrow Agreement" shall mean an agreement between ICO, the Contractor
         and the Escrow Agent in terms to be agreed between the parties
         reflecting the provisions of this Agreement relating to the Escrow
         Agent and the Escrow Account (with such modifications as the parties
         may agree with the Escrow Agent, such agreement not to be unreasonably
         withheld by either of the parties).

         "Escrow Trigger Amount" shall mean US$ 1 million or any higher
         multiple of US$500,000.

         "Excluded Circumstances" shall mean:

                  (i)      any force majeure event as set out in clause 55;
                  (ii)     radio frequency interference or unplanned propagation
                           impairment (C-band or S-band) in excess of the limits
                           specified in the IGFR;
                  (iii)    unavailability of spectrum;
                  (iv)     unavailability of ICO satellites, or inappropriate
                           spacing between the available satellites;
                  (v)      non-conformance of ICO satellites to the ICO
                           satellite specifications and its applicable Interface
                           Control Documents;
                  (vi)     unavailability of ICO user terminals which conform to
                           the ICO Air Interface as set out in the applicable
                           Interface Control Document;
                  (vii)    non-conformance of ICO user terminals to the ICO Air
                           Interface as set out in the applicable Interface
                           Control Document;
                  (viii)   unavailability of terrestrial network
                           interconnections which meet telecommunication
                           industry standards;
                  (ix)     unavailability of the ICO Satellite Control Centre or
                           its non-conformance to the applicable Interface
                           Control Document;
                  (x)      unavailability of Telemetry, Tracking & Control
                           facilities to the extent not comprising RFTs at the
                           designated Sites or the non-conformance of the same
                           to the applicable Interface Control Document;

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<PAGE>   75
                  (xi)     unavailability of ICO Administration and Data Centre
                           facilities or the non-conformance of the same to the
                           applicable Interface Control Document: and

                  (xii)    errors or omissions in information supplied by ICO or
                           the vendors of other elements of the ICO System in
                           the applicable documents which affect support of the
                           requirements of the IGFR and end-to-end services and
                           which could not reasonably have been discovered by
                           the Contractor by the time of the manufacture of the
                           Deliverable to which such information relates.

         "Final Acceptance Certificate" shall mean the final acceptance
         certificate issued pursuant to clause 35.1.

         "Financed Invoice" shall mean an invoice (substantially in the relevant
         approved form set out in Schedule 4 and containing all the information
         referred to in that form) issued by the Contractor for the Financed
         Portion of one or more Instalments.

         "Financed Portion" in relation to any Instalment shall mean the
         percentage of it, if any, which is required to be financed by the
         Contractor pursuant to the Vendor Financing Agreement.

         "Further Deliverables" shall mean Deliverables to be handed over after
         the Level 2 Handover Date.

         "Further Works" shall mean Works to be carried out after the Level 2
         Handover Date.

         "Good Industry Practice" shall mean the exercise of that degree of
         skill, diligence, prudence and foresight which would reasonably and
         ordinarily be expected from a skilled and experienced contractor
         engaged in the same type of activities and under the same or similar
         conditions and circumstances who is seeking in good faith to comply
         with its obligations under this Agreement.

         "Handover Date" shall mean, in relation to any particular Deliverable
         the date of receipt of the Acceptance Certificate relating thereto and,
         in relation to any Works, the date upon which such Works are completed
         to the satisfaction of ICO.

         "High Level System Description" shall mean the high level system
         description to be provided in accordance with the Statement of Work.

         "ICO Intellectual Property" shall mean the Intellectual Property Rights
         generated by ICO comprised in the Deliverables.

         "ICONET Ground Facilities" shall mean 12 SANs, an NMC and a backup NMC
         as more particularly described in the Statement of Work and the IGFR.

         "ICO Staff" shall mean all of the directors and employees of ICO Global
         Communications (Holdings) Limited or any of its subsidiary or affiliate
         undertakings and any consultants, sub-Contractors or other persons
         nominated as "ICO Staff" by or on behalf of ICO for the purposes of
         this Agreement.

         "ICO System" shall mean a global mobile satellite telecommunications
         network capable of delivering the end to end services set out in the
         lGFR and which will, when completed, comprise (a) the ICONET Ground
         Facilities, (b) the ICO space segment, (c) user terminals, (d) the ADC
         systems and (e) any other functional entities.

         "IGFR" shall mean the ICONET Ground Facilities Requirement document
         contained in Schedule 13 as amended from time to time in accordance
         with this Agreement.

                                       74
<PAGE>   76
         "Instalment" shall mean an instalment of the Price calculated as set
         out in the Payment Schedule; and shall where the context allows include
         any such instalment claimed by the Contractor in circumstances where
         ICO disputes the Contractor's entitlement to some or all of the amount
         claimed.

         "Intellectual Property Rights" shall mean patents, registered design
         rights and applications for any of the foregoing, copyright,
         unregistered design rights, topography rights and all forms of
         protection of any similar nature (including all such rights in
         software) which may subsist in any part of the world for the full term
         of such rights including any extension to the term of such rights and
         Confidential Information.

         "IOT" shall mean the ground control equipment to be supplied to ICO by
         a third party which, when functioning correctly with the RFT, provides
         satellite in-orbit test capability.

         "Key Features" means the features of the Deliverables set out in
         Schedule 6.

         "Level 2 Acceptance" shall mean have the meaning set out in Annex 10 of
         the Statement of Work.

         "Level 2 Acceptance Criteria" shall mean the level 2 acceptance
         criteria referred to in Section 6.2 of Annex 10 of the Statement of
         Work.

         "Level 2 Acceptance Date" shall mean 11 August 2000 or such other date
         as is agreed between the parties or as otherwise results from any
         adjustment to the Top Level Milestone Schedule pursuant to this
         Agreement.

         "Level 2 Handover Date" shall mean the date of receipt by the
         Contractor of the Final Acceptance Certificate.

         "Master Level Schedule" shall mean the schedule of activities and dates
         attached to Annex 4 of the Statement of Work as adjusted from time to
         time under this Agreement.

         "Milestone Date" shall mean the due date for the achievement of a Top
         Level Milestone as shown in the Top Level Milestone Schedule.

         "NEC Team Intellectual Property" shall mean the Intellectual Property
         Rights generated by the members of the NEC Team acting alone or
         together.

         "NEC Team" shall mean the Contractor, NEC Corporation, (as leader and
         main Contractor), and its Principal Sub-Contractors, working together
         as a team for the purposes of the design, specification, supply and
         testing of the ICONET Ground Facilities.

         "NMC" shall mean a Network Management Centre which provides both the
         central part of a network management system ("NMS"), the central part
         of a Satellite Resource Management Centre ("SRMC") and any other
         centralised functions required for the purposes of fulfilling the
         relevant functions specified in the Statement of Work and/or the IGFR,
         together with all of the interfaces necessary to perform these
         functions.

         "ODTF" shall mean the facility at which ICO without risk to customer
         traffic, can train operational staff, test new and updated software
         releases, take advantage of a skills base and facilities to support new
         development and provide a showcase of the ICO System.

         "Options" shall mean those options set out in Annex 1 of the Statement
         of Work.

         "Payment Schedule" shall mean Schedule 11.

                                       75
<PAGE>   77
         "Phase 1, Phase 2-1 and Phase 3 Testing or Tests" shall mean,
         respectively, that testing or those tests which is/are referred to in
         Annex 8A of the Statement of Work.

         "Price" shall have the meaning specified in clause 15.1.

         "Principal Sub-Contractors" shall mean Hughes Network, Systems. Inc.
         and Ericsson Limited.

         "Ready for Installation Date" means the date on which the relevant Site
         is first made available to the Contractor for delivery and installation
         of any part of the Works.

         "RFT" shall mean the equipment supplied to ICO by the Contractor
         including an antenna and its associated ancillary equipment,
         transmission and receiver equipment including IF (intermediate
         frequency) distribution and IFL (inter facility link) connections,
         dedicated up and down converters and the associated couplers and
         switches which are compatible with the telemetry, tracking and control
         equipment to be supplied to ICO by a third party, IOT signal monitoring
         package which is compatible with the in-orbit test equipment to be
         supplied to ICO by a third party and an O&M system for the monitor and
         control of the other parts of the RFT.

         "RFT Availability Dates" shall mean the dates designated as such in the
         Top Level Milestone Schedule as such for each of the Sites which ICO
         has designated as TT&C or IOT capable.

         "SAN" shall mean a Satellite Access Node being a fixed installation of
         all the equipment required to access the ICO satellites as more
         particularly described in the Statement of Work and/or the IGFR.

         "Satellite Based Communications Systems" shall mean mobile
         communications systems characterised by direct links between a mobile
         user terminal and a satellite enabling transmission of voice and data
         (either data, telephony, facsimile or otherwise) including but not
         limited to those systems intended to be capable of offering services to
         mobile users which also offer fixed or semi-fixed services but for the
         avoidance of doubt excluding V-SAT systems, Broadband systems for
         multi-media services and systems with fixed high gain directional
         antennae.

         "Site" shall mean the places to which the Deliverables are to be
         delivered or where Works are to be carried out as set out in Annex 3 of
         the Statement of Work or as provided in this Agreement.

         "Site Operator" shall mean, in respect of each Site, the person making,
         or who has made, the Site available to ICO and appointed by ICO to
         operate and maintain the Equipment and Software upon the Site on behalf
         of ICO following installation, delivery, testing and acceptance of the
         same by ICO.

         "Software" shall mean all operating systems, compilers, utilities and
         other programs in any form and associated documentation provided or to
         be provided by the Contractor for inclusion in the Works.

         "Spares" shall mean spare and replacement parts for the Equipment.

         "Statement of Work" shall mean those documents set out in Schedule 14.

         "Sub-Contractor" shall mean any person, firm or company (including the
         Principal Sub-Contractors) to whom any of the Contractor's obligations
         under this Agreement have been sub-contracted (whether by the
         Contractor, the Principal Sub-Contractors or any other person to whom
         any of the Works have been subcontracted directly or indirectly) and
         its legal representatives, successors and permitted assigns.

                                       76
<PAGE>   78
         "Top Level Milestones" shall mean those tasks and events designated by
         a (T) in the Top Level Milestone Schedule.

         "Top Level Milestone Schedule" shall mean Schedule 7 of this Agreement.

         "Training" shall mean the training to be provided by the Contractor
         under clause 45.

         "Ts &Cs" shall mean the main body of this Agreement.

         "TT&C" shall mean the ground communication equipment to be supplied to
         ICO by a third party for satellite telemetry, tracking and control
         capability.

         "TWT" shall mean travelling wave tube.

         "US$" shall mean United States Dollars, the lawful currency of the
         United States of America.

         "Works" shall mean and include the supply, delivery, installation,
         integration, testing and setting to work of the Deliverables and all
         other work required to be carded out by the Contractor under this
         Agreement.

                                       77
<PAGE>   79
Schedule 2: Precedence of Documents

In the event of any conflict between the following documents the following order
of precedence shall apply:

         (a)      the main body of this Agreement;

         (b)      the IGFR;

         (c)      the Statement of Work;

         (d)      the other Schedules; and

         (e)      any Annexures.

                                       78
<PAGE>   80
SCHEDULE 3: DISPUTE RESOLUTION PROCEDURE

1 Each party shall use all reasonable endeavours to resolve any disputes
arising out of or in relation to this Agreement, including as to its
interpretation.

2 In the event that such a dispute arises then the escalation procedures set out
in the remaining paragraphs of this Schedule shall apply and either party may
invoke these procedures by giving notice in writing to the other specifying the
subject matter of the dispute and its proposal for its resolution.

3 ICO and the Contractor shall respectively procure that the dispute is
considered by the Supervising Officer and the Contractor's Authorised
Representative and that such parties attempt, in good faith, to resolve the
dispute. If such persons reach agreement on the matter in dispute within 15 days
of the dispute procedure having been invoked, which period shall commence upon
the receipt of the notice referred to in paragraph 2, (or such other period as
the parties may mutually agree in writing) the parties shall procure that their
respective representatives shall sign a joint memorandum to that effect
recording the resolution and procure that such agreement is fully and promptly
carried into effect.

4 If the Supervising Officer and the Contractor's Authorised Representative fail
to reach agreement on the matter in dispute within the period specified in
paragraph 3 or together conclude that resolution is unlikely, then either of
them may within 10 days of the expiry of such period refer the matter in dispute
to, in the case of ICO, Jai Singh or the Executive Vice President of ICO for the
time being and in the case of the Contractor, Hiromi Hayashi or any other
Associate Senior Vice President (or, in either case, if such person is not
available, a senior manager of equivalent or nearest equivalent standing in the
organisation of the party concerned) (together the "Senior Officers") for
consideration by such persons. ICO and the Contractor shall respectively procure
that such dispute is considered by the Senior Officers and that they attempt, in
good faith, to resolve the dispute. If the Senior Officers reach agreement on
the matter in dispute within 15 days of the dispute being referred to them under
this paragraph, (or such other period as the parties may mutually agree in
writing) the parties shall procure that their respective representative shall
sign a joint memorandum to that effect recording the resolution and procure that
such agreement is fully and promptly carried into effect.

5 The dispute resolution procedure shall, as regards the matter in dispute, have
been exhausted if the matter in dispute:

         (a)      has not been resolved in accordance with paragraph 3 within
                  the relevant period and is not referred to the Senior Officers
                  within the relevant period; or

         (b)      where it is so referred, has not been resolved in accordance
                  with paragraph 4 within the relevant period.

For the avoidance of doubt, the fact that the dispute resolution procedure has
been exhausted without resolution of the matter in dispute shall not prevent the
parties from agreeing that the matter in question should be referred to an
independent form of alternative dispute resolution agreed between them and/or to
arbitration.

6 The foregoing provisions of this shall, subject always to clause 62, not
prevent either party from commencing legal proceedings or applying to the court
for injunctive or other interim relief at any time.

                                       79
<PAGE>   81
SCHEDULE 4: AGREED FORM INVOICES

CASH INVOICE: CLAUSE 16.2 OF SUPPLY AGREEMENT DATED [ ] MARCH 1997

                                       NEC

                                 NEC CORPORATION

                                    [ADDRESS]

INVOICE NO:                                                      DATE:

YOUR REF:     [ICOO/97-1016/GW]              SUPERVISING OFFICER:

TO:           Accounts Department
              ICO Global Communications (Operations) Limited
              c/o ICO Services Limited
              1 Queen Caroline Street
              London W6 9BN

SIGNED:       NEC Corporation

              ---------------
              [Name and Title]

ITEM NO       DESCRIPTION(1)                                 AMOUNT
                                                                  US$

PAY TO:       Bank Account of NEC Corporation
              [The Sumitomo Bank Ltd.
              Tokyo Main Office
              1-3-2, Marunouchi, Chiyoda-ku,
              Tokyo, Japan
              Account number: 214408]

PAYMENT DUE(2):  [                     ]

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

(1)For each item, specify (1) Description of item and amount payable (as per
Price List where applicable): (2) Relevant provision of Payment Schedule or
Supply Agreement; (3) Percentage and amount to be financed under Vendor
Financing Agreement, if any; (4) Net amount to be paid under this invoice in
respect of item; (5) Any sales or other taxes payable by ICO in respect of that
item. Invoice to be accompanied by appropriate supporting documentation. These
footnotes need not appear on individual invoices. (2) 30 days after date of
invoice receipt.
<PAGE>   82
COSTS INVOICE: CLAUSE 17.1 OF SUPPLY AGREEMENT DATED [ ] MARCH 1997

                                       NEC

                                 NEC Corporation

                                    [ADDRESS]

INVOICE NO:                                                         DATE:

YOUR REF:  (ICOO/97-1016/GW]                      SUPERVISING OFFICER:

TO:        Accounts Department
           ICO Global Communications (Operations) Limited
           c/o ICO Services Limited
           1 Queen Caroline Street
           London W6 9BN

SIGNED:    NEC Corporation

           ---------------
          (Name and Title]

ITEM NO   DESCRIPTION(3)                                      AMOUNT
                                                                   US$

PAY TO:   Bank Account of NEC Corporation
          [The Sumitomo Bank Ltd.
          Tokyo Main Office
          1-3-2, Marunouchi, Chiyoda-ku,
          Tokyo, Japan
          Account number: 214408]

PAYMENT DUE(4):  [                   ]
------------------------
(3)For each item, specify (1) Description of item and amount payable; and (2)
Relevant provision of Supply Agreement Invoice to be accompanied by original or
certified copies of documents evidencing the claim for reimbursement. These
footnotes need not appear on individual invoices. (4)30 days after invoice
receipt.
<PAGE>   83
FINANCED INVOICE(5): CLAUSE 16.14 OF SUPPLY AGREEMENT DATED [ ] MARCH 1997

                                      NEC
                                NEC CORPORATION
                                   [ADDRESS]

INVOICE NO:                                                                DATE:

YOUR REF: [ICOO/97-1016/GW]                             SUPERVISING OFFICER:

TO:       Accounts Department
          ICO Global Communications (Operations) Limited
          c/o ICO Services Limited
          1 Queen Caroline Street
          London W6 9BN

SIGNED:   NEC Corporation

          ----------------
          [Name and Title]

DESCRIPTION(6)                                                   AMOUNT
                                                                      US$

PAY TO:             NEC Corporation or its permitted assignee or transferee.
                    Account to be specified by payee.

INTEREST DUE:            Quarterly in arrears at 6-month US$ LIBOR plus
2%

REPAYMENT DUE(7):   [                  ]

--------------------------
(5) Financed Invoices will only be issued if the Vendor Financing Agreement, as
defined in clause 16.13 of the Supply Agreement, is entered into and they shall
then be subject to its terms.
(6) Specify in each case (1) (where appropriate, distinguishing by item
numbers) the Cash Invoice(s) in which the Cash Portion(s) of the relevant
Instalment(s) were invoiced: (2) the appropriate category or categories
specified in the vendor financing agreement (equipment/engineering; referable
to NEC/Hughes/Ericsson) and the percentage referable to each such category: and
(3) the aggregate amount being financed by this invoice. Appropriate supporting
documentation for this invoice comprises copies of each of those invoices.
These footnotes need not appear on individual invoices.
(7) Third anniversary of date of invoice.

<PAGE>   84
SCHEDULE 5: NOT USED

<PAGE>   85
SCHEDULE 6: KEY FEATURES

1.       TNM

1.1      Changes to published protocols on interfaces such as GSM 'A' interface
         or 'A bis' interface

1.2      The use of a switched network between the radio (SBS) and mobile
         service centre (MSSC) to enable:

1.2.1    de-coupling of the radio access (SBS) and location register (VLR)
         sites to reduce location update signalling load

1.2.2    multiple access to radio sites (SBS) from a single mobile switch
         (MSSC) for multi-SAN paging; using lat-long in registration and paging
         messages, but excluding the use of the repetition indicator in the
         paging request message

2.       SWITCHING

2.1      Messaging platform (voice messaging)

2.2      Use of remote storage and retrieval of messages via data links
         (compressed) to avoid unnecessary circuit-switched routing for
         messaging.

2.3      Language preference

2.3.1    Use of an explicit language preference indicator in the service
         profiles to enable the provision of announcements and user prompts in
         a language that is acceptable to the end-user, specifically:

2.3.1.1  language preference in the cellular/satellite interworking functions
         (CS-IWF)

2.3.1.2  language preference in the intelligent network (IN) platform; excluding
         Ericsson INAP protocol published in 1990.

2.4      Cellular/satellite integration

2.4.1    The use of CS-IWFs for the addition of ICO specific services (e.g.
         HPN, dual numbering language preference) to roamers from cellular
         networks, specifically:

2.4.1.1  networks of the same type: e.g. GSM based satellite-to-GSM roaming;

2.4.1.2  networks of different types: e.g. GSM based satellite-to-IS 41
         roaming, GSM based satellite to PDC roaming

2.4.2    End-to-end authentication for inter-standard roaming: e.g. IS.41/GSM
         via the use of GSM USSD.
<PAGE>   86
3.        SBS/SRMC

3.1       Handovers

3.1.1     Procedures and algorithms to implement reliable handovers through a
          combination of use of signal level measurement reports, UT position
          measurements and spot beam co-ordinate broadcast for satellite spot
          beam selection together with supporting Air Interface protocols

3.2       Satellite Path Diversity Usage and Implementation for a non-GSO
          satellite System

3.2.1     Selection of best radio path between UT, satellite and SAN for a call
          from a combination of non-GSO specific mobility management,
          registration and SAN coverage planning concepts together with
          generation of appropriate common signalling channels contents and call
          routing concepts.

3.3       Non-GSO specific satellite timing and synchronisation techniques to
          facilitate non-overlapped Tx/Rx burst timing at the UT and
          pre-synchronised diversity additions and soft handovers.

3.4       Procedures for diversity satellite path selection/combining and
          associated Al protocols.

3.5       Satellite Power Link Management

3.5.1     Procedures to maximise capacity achievable in a non-GSO satellite
          system through a combination of real time 'per channel' EIRP control,
          use of a planned UT link margin versus elevation profile and
          adjustment of SAN EIRP limits to accommodate satellite movement and
          sharing of traffic between satellites with overlapping coverage.

3.6       Call Handling

3.6.1     Specific call set-up and continuity management procedures for a power
          limited non-GSO satellite system through sue of different margins for
          the signalling and traffic phases of a call together with associated
          call management protocols.

3.7       Position Determination

3.7.1     Determination of UT position in a non-GSO satellite system through a
          combination of timing offset, frequency offset, relative power level
          measurements and UT reports from one or two satellites together with
          associated air interface synchronisation techniques and protocols.

3.8       Frequency/Spectrum Planning and Management Techniques

3.8.1     Frequency and burst time plans for non-GSO satellites with overlapping
          coverage that allow the dimensioned traffic to be carried within the
          spectrum constraints taking account of diversity.

<PAGE>   87
3.8.2     Satellite frequency and additional burst time allocation techniques
          for a non-GSO satellite system which dynamically adjust to maximise
          available capacity from a limited amount of mobile link spectrum
          together with associated real-time timeslot allocation techniques
          which maximise scope for provision of diversity and make before break
          handovers. [in a Satellite Oriented Frequency Plan (SOFA) system]

4.        HPN

4.1       Physical layer features, idle mode support algorithms, burst
          transmission timing and planning and incoming call (circuit and SMS)
          alerting.
<PAGE>   88
Schedule 7: Top Level Milestones
<PAGE>   89
                            NEC TOP LEVEL MILESTONES

<TABLE>
<CAPTION>
ID        Task Name                                    Resp.
--        ---------                                    ----
<S>       <C>                                       <C>
1(T)       SYSTEM PDR                                Contractor

2            Draft AMBE Voice Codec Software
               Interface                                ICO

3            Voice Code High Level Functional
               Description                              ICO

4(T)       SYSTEM FDR                                Contractor

5            Voice Codex Floating Point - C
               Source Code                              ICO

6            Voice Codex Low Level Functional
               Description                              ICO

7            Air Interface ICD Final Version 4          ICO

8(T)      NMC (LINK-OS) & SRMC/SAN-SRMS FDR          Contractor          [GRAPH]

9           Preliminary NMS/SCC ICD including
              Definition of Ephemeris Data              ICO

10          Final NMS/SCC ICD including Definition
              of Ephemeris Data                         ICO

11(T)     CME20 R8 PLM REVIEW - FDR (TG2)            Contractor

12(T)     12 RFT READY FOR TTC                       Contractor

13          Access to SAN Sites by following dates-     ICO

14          Brewster, USA                               ICO

15          Chatanapar, India                           ICO

16          Brisbane, Australia                         ICO

17          Usingen, Germany                            ICO

18          Longvilo, Chile                             ICO

19          Hartebeeshoake, South Africa                ICO
</TABLE>

                            Page 1                         27th FEBRUARY, 1997
<PAGE>   90
                            NEC TOP LEVEL MILESTONES

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

ID      TASK NAME                                                  RESP
----------------------------------------------------------------------------
<S>     <C>                                                     <C>
20         Final SAN/TTC ICD
----------------------------------------------------------------------------

----------------------------------------------------------------------------
21(T)   SBS #1 MANUFACTURE COMPLETE                             CONTRACTOR
----------------------------------------------------------------------------
22         Air Interface Final Version 4                           ICO
----------------------------------------------------------------------------
23(T)   MSSC #12 FOB                                            CONTRACTOR
----------------------------------------------------------------------------
24(T)   TNM #1 MANUFACTURE & PHASE 1 TESTING                    CONTRACTOR
----------------------------------------------------------------------------
25         Draft AMBE Voice Codec Software Interface               ICO
----------------------------------------------------------------------------
26         Voice Codec High Level Functional Description           ICO
----------------------------------------------------------------------------
27         Voice Codec Floating Point - C Source Code              ICO
----------------------------------------------------------------------------
28         Voice Codec Low Level Functional Description   ICO
----------------------------------------------------------------------------
                                                                                [GRAPH]
----------------------------------------------------------------------------
29(T)   TNM INSTALLATION & P2-1 TESTS COMPLETE                  CONTRACTOR
----------------------------------------------------------------------------

----------------------------------------------------------------------------
30(T)   SBS #12 P 2-1 COMPLETE                                  CONTRACTOR
----------------------------------------------------------------------------

----------------------------------------------------------------------------
31(T)   END-TO-END CALL DEMONSTRATION                           CONTRACTOR
----------------------------------------------------------------------------
32         SATELLITE LAUNCH DATES
----------------------------------------------------------------------------
33            F1                                                   ICO
----------------------------------------------------------------------------
34            F2                                                   ICO
----------------------------------------------------------------------------
35            F3                                                   ICO
----------------------------------------------------------------------------
36         UT's Available                                          ICO
----------------------------------------------------------------------------
</TABLE>

                                  Page 2                     27TH FEBRUARY, 1997
<PAGE>   91
                            NEC TOP LEVEL MILESTONES

<TABLE>
<CAPTION>

ID      TASK NAME                                   RESP
<S>     <C>                                      <C>

37(T)   VERSION 2 SOFTWARE RELEASE FOR           CONTRACTOR
          NMC/SRMC ON SITE TESTING

38(T)   12 SAN & NMC HANDOVER                    CONTRACTOR                    [GRAPH]
39      ICO SUPPLIED DDC COMMUNICATIONS LINKS;      ICO
40        NEC to confirm quantity of DDS            NEC
            Communication Links required
41        Between SAN and Primary NMC for           ICO
            MSSC#1/HLR Testing
42        Inter SAN/MSSC for Phase 2-2 Testing      ICO
43        Between SAN MSSC and Back Up NMC          ICO

</TABLE>

                                     Page 3                  27th FEBRUARY, 1997

<PAGE>   92
SCHEDULE 8: IDENTIFICATION OF SITES

The following Sites have not been examined by the Contractor as of the date of
this Agreement:

Brazil

[Chile]

China

[Indonesia]

Korea

UAE

Primary NMC

Back-up NMC

The following Sites have been visited but not examined in detail:

Chile; and

Indonesia

<PAGE>   93
SCHEDULE 9: PRICING SCHEDULE

<PAGE>   94

                                PRICING SCHEDULE

<PAGE>   95
1.        GENERAL

This Section describes:

-         in Section 2, the SA price schedule for the deliverables and services
          that the Contractor(s) will provide within the scope of this Supply
          Agreement

-         in Section 3, the future equipment(1) pricing

-         in Section 4 the future equipment order process

-         in Section 5, the pricing of future basic package software releases

-         in Section 6, the process and pricing of the development of ICO
          specific functionality.

2.        SA PRICE SCHEDULE

2.1.      PRICE OF THE SA

2.1.1.1.  Table 1 summarises the price of the SA. Appendix 1 to this schedule
          describes the individual prices which are summarised in Table 1.
          Appendix 2 to this schedule provides a detailed price list including
          individual equipment components. Appendix 3 to this Schedule provides
          the detailed price list including average rates for the ICONET
          Integration Testing.

                     TABLE 1 - SA PRICE SUMMARY (US$'000s)

<TABLE>
<CAPTION>

              ITEM            PURCHASE  OPTIONS   PURCHASE - OPTIONS
------------------------------------------------------------------------------
<S> <C>                       <C>       <C>            <C>
1    RFT                          *        *               *
2    SBS                          *        *               *
3    PCS                          *        *               *
4    Switch                       *        *               *
5    TNM                          *        *               *
6    NMS SRMC                     *        *               *
7    S.T.E                        *        *               *
8    SI & PM                      *        *               *
9    Ax & B                       *        *               *
     TOTAL OF ITEMS 1 TO 9
     (EXCLUDING FREIGHT &
     INSURANCE                    *        *               *
</TABLE>

----------------
(1)  For the purposes of this Schedule, the term 'equipment'
     throughout means hardware and the associated operating software.

     * Confidential Treatment Requested and the Redacted Material has been
       separately filed with the Commission.
<PAGE>   96
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
       <S>                        <C>          <C>            <C>
       ITEM                       PURCHASE     OPTIONS        PURCHASE - OPTIONS
================================================================================
       (INSURENCE)
--------------------------------------------------------------------------------
       FREIGHT AND INSURANCE          *           *                *
--------------------------------------------------------------------------------
       ICONET INTEGRATION             *           *                *
--------------------------------------------------------------------------------
</TABLE>

2.1.1.2.  In the event that ICO does not elect to purchase from the Contractor
          Freight and Insurance as set out in Table 1 within 30 days of the
          date of this Agreement, ICO may make alternate arrangements. In the
          event that ICO opts to make such arrangements, the parties shall meet
          to arrange any necessary modifications to the Agreement.

2.1.1.3.  For the avoidance of doubt, the Price specified in clause 15.1 of
          this Agreement shall remain unchanged unless and until ICO opts for
          alternate arrangements and the initial payment shall be calculated
          and paid by ICO as if Freight and Insurance were included. In the
          event that ICO does opt out of the Freight and Insurance
          arrangements, the related proportion of the initial payment by ICO to
          NEC shall not be repaid to ICO but shall be set off against future
          payments by ICO under this Agreement.

2.1.1.4.  In addition to the prices described in Paragraph 2.1.1.1 the
          Contractor will recharge ICO for:

          i.    Inter-Site telecommunication charges. These charges are for the
                purposes of telephone and fax between SAN, NMC, BCC sites.

          ii.   Inter-Site testing telecommunications charges. These charges are
                for the purposes of providing telecommunication links between
                the development sites: NEC A in Melbourne, NECJ in Yokohama, and
                HNS in Germantown, to enable the Contractor to undertake factory
                integration testing of the IGF.

2.1.1.5.  The Contractor will re-charge ICO the costs of Inter-Site
          telecommunications charges as incurred plus a handling fee. The total
          charge to ICO will be no more   *   for the whole of the SA.
          ICO will reimburse the Contractor on the basis of the invoice plus
          supporting detail.

2.1.1.6.  The Contractor will re-charge ICO the costs of Inter-Site
          telecommunications charges as incurred plus handling fee. The total
          charge to ICO will be no more   *   for the whole of the SA.
          ICO will reimburse the Contractor on the basis of the invoice plus
          supporting detail.

3.        FUTURE EQUIPMENT PRICING

3.1       INTRODUCTION

3.1.1.1.  This Section describes the future pricing for:

          i.   traffic capacity and subscriber expansion and the associated
               hardware and software

          ii.  the installation and testing

          iii. Systems Integration and Project Management.

3.1.1.2.  The price adjustments that shall be applied for future orders are
          defined in Section 3.5 of this Schedule.

3.1.1.3.  The future prices computed according to the indices and processes are
          quoted as 'not to exceed' prices.

          * Confidential Treatment Requested and the Redacted Material has been
            separately filed with the Commission.
<PAGE>   97
3.1.1.4.  ICO is being, and will continue to be offered reasonable future
          pricing consistent with ICO volumes and functionality.

3.1.1.5.  The price is quoted on FOB place of shipment basis. The
          interpretation of FOB is in accordance with the SA.

3.1.1.6.  The following items will be quoted separately at the time of order
          for individual element capacity increases:

          i.   Training

          ii.  Spares

3.1.1.7.  Freight and Insurance will be quoted separately at the time of order
          in consideration to the number of blocks to be ordered and the place
          of the SAN sites where these blocks will be delivered.

3.2.      UNIT EQUIPMENT

The following sections describe the expansion block price for each subsystem.

3.2.1.    RFTs

3.2.1.1.  The IGF RFT is designed to transmit and receive the maximum C-band
          feeder link capacity of 750 traffic carriers assuming that up to 473
          carriers can be transmitted by one HPA with a total maximum EIRP of
          77 dBW. It is also designed to transmit one TT&C carrier at the
          maximum EIRP of 81 dBW in an emergency case.

3.2.1.2.  The Contractor will negotiate with ICO, as and when requested by ICO,
          for the supply of additional RFT systems.

3.2.2.    SBS and DC Uninterruptable Power Supply System for SBS

3.2.2.1.  The number of SBS Expansion Blocks required to support the traffic
          capacity of a SBS subsystem shall be computed with the formulae shown
          in Table 2. N is number of additional expansion blocks beyond the
          Initial Size   *   required to make an SBS capable of
          supporting the traffic for a given "Erlang size".

                    TABLE 2 - SBS TRAFFIC/BLOCK RELATIONSHIP

--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
                    SBS RATED TRAFFIC                 NUMBER OF BLOCKS (N)
    <S>                                             <C>
================================================================================

                                        *

--------------------------------------------------------------------------------
</TABLE>

3.2.2.2.  The traffic supported by each expansion block SBS size are target
          throughputs under presently known conditions. The Contractor shall
          endeavour to exceed the target throughputs. However, unforeseen
          circumstances may change these formula, in which case the Contractor
          and the Purchaser agree to

          * Confidential Treatment Requested and the Redacted Material has been
            separately filed with the Commission.
<PAGE>   98
          inform each other of such circumstances and agree to work together to
          minimize the impact of unforeseen conditions.

3.2.2.3.  The SBS Expansion Block also requires an expansion of the DC
          Uninterruptable Power Supply System (DC UPS) over and above that
          provided in an SBS capable of supporting 320 Erlangs. For every 9
          expansion blocks an additional block of DC UPS will be required.

3.2.2.4.  The unit price, inclusive of installation and testing, and the
          equipment that comprises an SBS Expansion Block and DC UPS, is shown
          in Table 3. Table 3 also shows the price for providing CE Mark
          compliance for an SBS Expansion Block for a country where it may be
          required.

                 TABLE 3 - SBS EXPANSION BLOCK AND DC UPS PRICE
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
  NOS.            DESCRIPTION                   QUANTITY        PRICE (US$'000S)
<S>       <C>                                     <C>                <C>
================================================================================
I         SBS EXPANSION BLOCK (CHANNEL                               *
          UNIT AND CHANNEL MANAGER)
--------------------------------------------------------------------------------
1.        CHANNEL UNIT
--------------------------------------------------------------------------------
1.1       Channel Unit Chassis (CUC)                 *
--------------------------------------------------------------------------------
1.1.1     CUBs                                       *
--------------------------------------------------------------------------------
1.1.2     Slot Processor Module (SPM)                *
--------------------------------------------------------------------------------
1.1.3     Modulator Demodulator Module (MDM)         *
--------------------------------------------------------------------------------
1.1.4     Clock Distribution Unit (CDM)              *
--------------------------------------------------------------------------------
1.1.5     Common Functions Module (CFM)              *
--------------------------------------------------------------------------------
1.1.6     Channel Unit Rack Base Units               *
--------------------------------------------------------------------------------
2         CHANNEL MANAGER
--------------------------------------------------------------------------------
2.1       Channel Manager Chassis (ChM)              *
--------------------------------------------------------------------------------
2.1.1     G.703 Interface                            *
--------------------------------------------------------------------------------
2.1.2     Control Processor Modules (CPM)            *
--------------------------------------------------------------------------------
2.1.2.1   Channel Access Processor (CAP)             *
--------------------------------------------------------------------------------
2.1.2.2   Channel Control Processor (CCP)            *
--------------------------------------------------------------------------------
2.1.2.3   Global Resource Process (GRP)              *
--------------------------------------------------------------------------------
2.1.3     Switching Transcoder Module (STM)          *
--------------------------------------------------------------------------------
2.1.4     10 Base2 Ethernet                          *
--------------------------------------------------------------------------------
2.2       Channel Manager Rack (CMR) w 2 Chassis     *
--------------------------------------------------------------------------------
2.2.1     Fan                                        *
--------------------------------------------------------------------------------
2.2.2     Power Distribution Unit                    *
--------------------------------------------------------------------------------
3         IF and Frequency Distribution Expansion    *
--------------------------------------------------------------------------------
4         INSTALLATION MATERIALS
          (Includes power signal cables)
--------------------------------------------------------------------------------
4.1       Power Cables                               *
--------------------------------------------------------------------------------
</TABLE>

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   99
<TABLE>
<CAPTION>

NOS.              DESCRIPTION                   QUANTITY       PRICE (US$'000s)
---         ------------------------------      --------       ----------------
<C>        <S>                                <C>            <C>

4.2         I/F Cables
4.3         LAN Cables
4.4         Sync Cabling
5           Installation and Test
===         ===============================                  *
II          SBS DC UPS (AC/DC CONVERTERS &
            BATTERIES FOR 2 HOURS OPERATION)
===         ===============================
III         CE MARK COMPLIANCE PER BLOCK

</TABLE>

3.2.3    TNM

3.2.3.1. The TNM capacity expansion equipment comprises four parts:

         i.    Vocoder/mux (Voc/Mux) traffic expansion. Each Voc/Mux block shall
               support 113 Erlangs.

         ii.   C&C rack (19 inch). One rack is required for Voc/Mux capacity
               expansion of 283 Erlangs.

         iii.  Voice Codec Royalty per Voc/Mux Block.

         iv.   TNM(RPC) computer expansion. A TNM(RPC) may be required when a
               TNM rated throughput exceeds   *   . The additional
               capacity provided by a TNM (RPC) is   *   .

3.2.3.2  The Contractor shall endeavour to exceed the target throughputs.
         However, unforeseen circumstances may change these formula, in which
         case the Contractor and the Purchaser agree to inform each other of
         such circumstances and agree to work together to minimise the impact of
         unforeseen conditions.

3.2.3.3. The Voc/Mux Block, the C&C rack, the voice Codec Royalty and TNM (RPC)
         price and associated equipment are shown in Table 4.

                 TABLE 4 - TNM TRAFFIC AND COMPUTER BLOCK PRICE

<TABLE>
<CAPTION>

NOS.              DESCRIPTION                   QUANTITY       PRICE (US$'000s)
---         ------------------------------      --------       ----------------
<C>        <S>                                <C>            <C>
I           VOC/MUX BlOCK
1           VOCODER/MUX UNIT
1.1         Vocoder/Mux Card
1.2         Control Card
1.3         I/O Card
1.4         19 inch 6RU Shelf                                 *
1.5         Power Supply Shelf
1.6         Fan Unit
2           Installation Materials
===         ===============================
II          C&C RACK (19 INCH).
===         ===============================
</TABLE>

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   100
<TABLE>
<CAPTION>

NOS.              DESCRIPTION                   QUANTITY       PRICE (US$'000s)
---         ------------------------------      --------       ----------------
<C>        <S>                                <C>            <C>
III         VOICE CODEC ROYALTY
            (SUBJECT TO PARAGRAPH 3.2.3.4)
===         ===============================
IV          TNM (RPC)
===         ===============================
1.1         TNM Computer (RPC)

1.1.1       Spare 1000 with 2 processors,
            512MB MM, 5GB HD, Ethernet Inter-
            faces, 8mm Tape Drive and CD
            ROM Drive                                         *

1.1.2       E1 Interface

1.2         Ethernet Hubs/Routers and
            Accessories

1.3         TNM O&M Software License

1.4         Software Licences

1.4.1       Solaris Operating System with
            Media

1.4.2       Solstice - Runtime

1.4.3       An additional TNM O&M Software
            license for management of 2 sets
            of 1.1 PRC.
</TABLE>

3.2.3.4     The limit to the Contractors liability for the Voice Codec Royalty
            is   *   for the licence and   *   per channel. Should the
            charges for the Voice Codec  exceed these limits. NEC will recharge
            ICO at cost the excess over and above   *   and   *   channel.

3.2.3.5     The Volume discount rates that apply to purchases of I) TNM Voc/Mux
            blocks and II) C&C Rack capacity are shown in Table 5.

TABLE 5 -- TNM VOC/MUX AND C&C RACK VOLUME DISCOUNTS

<TABLE>
<CAPTION>

     ERLANGS               DISCOUNT FACTOR
===================        ===============
<S>                        <C>
from 113 to 565

from 678 to 1,130

from 1,243 to 2,260

from 2,373 to 3,955                *

from 4,068 to 6,667

from 6,780 and above

</TABLE>

3.2.3.6     The installation charges for the expansion of Voc/Mux and TNM (RPC)
            capacity of a TNM are shown in Table 6.

            * Confidential Treatment Requested and the Redacted Material has
              been separately filed with the Commission.
<PAGE>   101
                  TABLE 6 - TNM EXPANSION INSTALLATION PRICES

<TABLE>
<CAPTION>

NOS.                DESCRIPTION                 QUANTITY       PRICE(US$'000S)
----      ---------------------------------   ------------     ---------------
<S>       <C>                                 <C>              <C>
1         Voc/Mux Block Expansion

1.1       First Voc/Mux block per SAN         per block                    *

1.2       Each Voc/Mux block in addition to   per block                    *
          first block per SAN
------------------------------------------------------------------------------
2         TNM(RPC)

2.1       Per TNM(RPC) if as a separate       per TNM(RPC)                 *
          installation

2.2       Per TNM(RPC) if installed at same   per TNM(RPC)                 *
          time as capacity expansion
</TABLE>

3.2.3.7.  The discount rates that apply to the first Voc/Mux block installation
          charges are shown in Table 7. The number of SANs shows the number of
          SANs intalled in the upgrade program.

                  TABLE 7 - FIRST EXPANSION BLOCK DISCOUNT RATES

<TABLE>
<CAPTION>
                      NUMBER OF SANs      DISCOUNT FACTOR
                      --------------      ---------------
                      <S>                 <C>
                          1 TO 3                  *
                          4 TO 5                  *
                          6 TO 7                  *
                          8 TO 9                  *
                            10                    *
                         11 to 12                 *
</TABLE>

3.2.3.8.  The volume discount rates that apply to the installation charges for
          the additional Voc/Mux blocks per SAN are shown in Table 8.

                   TABLE 8 - ADDITIONAL BLOCK DISCOUNT RATES

<TABLE>
<CAPTION>
                 NUMBER OF VOC/MUX        DISCOUNT FACTOR
                      BLOCKS
                 -----------------        ---------------
                 <S>                      <C>
                      1 to 2                      *
                      3 to 4                      *
                      5 to 6                      *
                      7 to 8                      *
                      9 to 10                     *
                   11 and above                   *
</TABLE>

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   102
3.2.4     MSSC/VLR

3.2.4.1.  The MSSC/VLR reference price is shown in Table 9. The reference price
          includes:

          i.   the equipment including the hardware and the software licence fee

          ii.  installation and test charge.

                       TABLE 9 - MSSC/VLR REFERENCE PRICE

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

                                [MSSC/VLR GRAPH]

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

3.2.4.2.  The pricing curve is intended to give ICO sound guidance to estimate
          prices for future switch growth. The curve has been developed using
          the current SA dimensioning assumptions as defined in Section 9.2 of
          the IGFR. Changes in these assumptions may lead to some adjustment in
          the price for any given switch capacity.

3.2.4.3.  The Contractor will provide ICO with a price for each upgrade based on
          the actual traffic and network configuration at the time of order.

3.2.4.4.  Table 10 illustrates how the price for incremental growth is
          calculated. In this example, the cost of growing a switch with an
          initial capacity of   *   to a new capacity of   *   would be
          approximately   *

          * Confidential Treatment Requested and the Redacted Material has been
          separately filed with the Commission.
<PAGE>   103
TABLE 10 - REFERENCE ILLUSTRATION OF PRICE FOR INCREMENTAL GROWTH OF AN MSSC/VLR

                         [REFERENCE ILLUSTRATION GRAPH]

3.2.4.5.  Table 11 shows in tabular form the points for computing the graph
          shown in Table 9.

                    TABLE 11 - MSSC/VLR PRICING GRAPH POINTS

<TABLE>
<CAPTION>

CAPACITY (ERLANGS)      PRICE (US$'000s)
----------------------------------------
<S>                     <C>
                 *

</TABLE>

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   104

<TABLE>
<CAPTION>

CAPACITY (ERLANGS)      PRICE (US$'000s)
----------------------------------------
 <S>                       <C>

                 *

</TABLE>

3.2.4.6.  The project management fee for MSSC/VLR expansion shall be an
          additional fee of   *   of the agreed final MSSC/VLR upgrade price as
          per Paragraphs 3.2.4.1 and 3.2.4.3 of this Schedule.

3.2.5.    HLR

3.2.5.1.   The additional software licence fee for the growth in the installed
          HLR subscriber capacity over and above the initial   *   subscribers
          is shown in Table 12.

                    TABLE 12 - HLR CAPACITY EXPANSION PRICE

<TABLE>
<CAPTION>
                                                                                        PRICE
NO.                              DESCRIPTION                                QUANTITY  (US$'000s)
------------------------------------------------------------------------------------------------
<S> <C>                                                                        <C>   <C>
1    additional   *   subscribers, i.e.   *   subscriber total capacity         *          *

2    additional   *   subscribers i.e.   *   subscriber total capacity          *          *

3    additional   *   subscribers i.e.   *   subscriber total capacity          *          *

4    additional   *   subscribers i.e.   *   subscriber total capacity          *          *
</TABLE>

3.2.5.2.  The offered HLR hardware has been dimensioned to support   *
          subscribers as per the parameters defined in Section 9.2 of the IGFR.
          The hardware may be able to support   *   subscribers, however, this
          is subject to confirmation.

3.2.5.3.  The Contractor shall provide software licence fees for total capacity
          of greater than   *   subscribers subject to confirmation that the
          hardware can support total capacities greater than   *   subscribers.

3.2.6.    AuC/EIR

3.2.6.1.  The additional software licence fee for the growth in the installed
          AuC/EIR subscriber capacity over and above the initial   *
          subscribers is shown in Table 13.

                  TABLE 13 - AuC/EIR CAPACITY EXPANSION PRICE

<TABLE>
<CAPTION>
                                                                                        PRICE
NO.                              DESCRIPTION                                QUANTITY  (US$'000s)
------------------------------------------------------------------------------------------------
<S> <C>                                                                        <C>   <C>
                                        *
</TABLE>

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

<PAGE>   105
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------
<S>     <C>                                                                      <C>         <C>
2        additional   *   subscribers i.e.   *   subscriber total capacity        *           *
------------------------------------------------------------------------------------------------------------
3        additional   *   subscribers i.e.   *   subscriber total capacity        *           *
------------------------------------------------------------------------------------------------------------
4        additional   *   subscribers i.e.   *   subscriber total capacity        *           *
------------------------------------------------------------------------------------------------------------
</TABLE>

3.2.6.2.  The offered AuC/EIR hardware has a rated total capacity of 500,000
          subscribers based on the values of Authentication and IMEI checking
          parameters as stated in the IGFR Section 9.2.

3.2.6.3.  The Contractor shall provide software licence fees for total capacity
          of greater than   *   subscribers in increments of   *
          subscribers subject to confirmation that the hardware can support
          total capacities greater than   *   subscribers.

3.2.7.    MXE (ICO Option As Defined in Annex 1 of the SOW)

3.2.7.1.  The hardware and software are sold together as a complete MXE system
          -- separation of the hardware and software licensing structure is not
          possible.

3.2.7.2.  The price of additional MXEs, over and above the first optional MXE
          (included within the SA), including installation, testing and MXE
          Project Management is shown in Table 14.

                TABLE 14 - ADDITIONAL MXE AND INSTALLATION PRICE

<TABLE>
<CAPTION>

                                                                                                  PRICE
NO.                    DESCRIPTION                                           QUANTITY          (US $ 000's)
------------------------------------------------------------------------------------------------------------
<S>     <C>                                                                  <C>               <C>
1        first additional MXE                                                    *                  *
------------------------------------------------------------------------------------------------------------
2        second additional MXE                                                   *                  *
------------------------------------------------------------------------------------------------------------
</TABLE>

3.2.8.    ICO-IS.41 and IS.41-ICO ILR (ICO Option As Defined in Annex 1 of the
          SOW)

3.2.8.1.  The additional software licence fee for the growth in installed
          ICO-IS.41 and IS.41-ICO ILR subscriber capacity over and above the
          initial   *   subscribers is shown in Table 15.

         TABLE 15 - ICO-IS.41 & IS.41-ICO ILR CAPACITY EXPANSION PRICE
<TABLE>
<CAPTION>
                                                                                                 PRICE
NO.                    DESCRIPTION                                           QUANTITY          (US $ 000's)
------------------------------------------------------------------------------------------------------------
<S>     <C>                                                                  <C>                <C>
1        additional   *   subscribers, i.e.   *   subscriber total capacity      *                  *
------------------------------------------------------------------------------------------------------------
2        additional   *   subscribers i.e.    *   subscriber total capacity      *                  *
------------------------------------------------------------------------------------------------------------
3        additional   *   subscribers i.e.    *   subscriber total capacity      *                  *
------------------------------------------------------------------------------------------------------------
4        additional   *   subscribers i.e.    *   subscriber total capacity      *                  *
------------------------------------------------------------------------------------------------------------
</TABLE>

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

<PAGE>   106
3.2.8.2.  The offered ILR hardware has been dimensioned to support   *
          subscribers based on the parameter defined in Section 9.2 of the IGFR.
          The hardware may be able to support   *   subscribers, however, this
          is subject to confirmation.

3.2.9.    DC Uninterruptable Power Supply System For Switch Systems

3.2.9.1.  The purchase and installation prices for DC UPS (2 hour battery
          back-up) for the MSSC, HLR, AUC/EIR, MXE and ILR (AMPS) are provided
          in Table 16.

                TABLE 16 - SWITCH DC UPS AND INSTALLATION PRICES

<TABLE>
<CAPTION>
                                                      DC UPS PRICE      INSTALLATION PRICE
NO.      DESCRIPTION                  QUANTITY        (US $ 000'S)          (US $ 000'S)
------------------------------------------------------------------------------------------
<S>      <C>                           <C>              <C>                <C>
  1        MSSC
------------------------------------------------------------------------------------------
1.1        For 320 Erlangs                *                  *                    *
------------------------------------------------------------------------------------------
1.2        For 3,200 Erlangs              *                  *                    *
==========================================================================================
  2        HLR                            *                  *                    *
==========================================================================================
  3        AUC/EIR                        *                  *                    *
==========================================================================================
  4        MXE                            *                  *                    *
==========================================================================================
  5        ILR (ICO-IS.41 & IS.41-ICO,    *                  *                    *
           PDC-ICO & ICO-PDC)(2)
------------------------------------------------------------------------------------------
</TABLE>
3.2.10.   PDC-ICO ILR (ICO Option As Defined in Annex 1 of the SOW)

3.2.10.1. The additional software licence fee for the growth in the installed
          PDC-ICO and ICO-PDC ILR subscriber capacity over and above the initial
             *   subscribers is shown in Table 17.

           TABLE 17 - PDC-ICO & ICO-PDC ILR CAPACITY EXPANSION PRICE
<TABLE>
<CAPTION>
                                                                                                    PRICE
NO.                    DESCRIPTION                                             QUANTITY          (US $ 000's)
--------------------------------------------------------------------------------------------------------------
<S>     <C>                                                                    <C>               <C>
1       additional   *   subscribers, i.e.   *   subscriber total capacity         *                  *
--------------------------------------------------------------------------------------------------------------
2       additional   *   subscribers i.e.    *   subscriber total capacity         *                  *
--------------------------------------------------------------------------------------------------------------
3       additional   *   subscribers i.e.    *   subscriber total capacity         *                  *
--------------------------------------------------------------------------------------------------------------
4       additional   *   subscribers i.e.    *   subscriber total capacity         *                  *
--------------------------------------------------------------------------------------------------------------
</TABLE>

---------------
(2) The DC UPS for PDC-ICO, ICO-PDC and associated IMSC will be quoted subject
    to ICO selection of options.

    * Confidential Treatment Requested and the Redacted Material has been
      separately filed with the Commission.

<PAGE>   107
3.2.11.    System Integration and Programme Management

3.2.11.1.  The Systems Integration and Programme Management (SI&PM) fee for the
           future expansion of traffic and subscriber capacity is:

           i.       *   thousand per annum

           ii.   SI&PM services will be provided at London

           iii.  the SI&PM fee will be charged for the calendar year starting
                 from 12 August 2000 or handover whichever is latest.

3.2.11.2.  ICO may terminate the SI&PM services on 6 months notice.

3.3.       SPARES

3.3.1.1.   The prices for the on-going supply of Spares to ICO for the purposes
           of maintaining ICO's stock of Spares to enable ICO to achieve the
           availability standards as defined in Section 8.11 is included within
           the Warranty prices.

3.3.1.2.   The recommended expansion of spares over and above the packages
           offered in the SA to support the growth of the IGF and to exceed the
           levels of availability defined in Section 8.11 of the IGFR will be
           quoted at the time ICO orders additional capacity.

3.4.       EXTENDED WARRANTY (ICO OPTION AS DEFINED IN ANNEX 1 OF THE SOW)

3.4.1.     SBS Deluxe Support Service

3.4.1.1.   The price for the SBS Deluxe Support Service option as specified in
           Section 5.3 of Annex 1 of the SOW is   *   for each two year
           period.

3.4.2.     MSSC Deluxe Support Service

3.4.2.1.   The price for the MSSC Deluxe Support Service option specified in
           Section 5.4--covers 12 MSSC, 1 HLR, 1 AuC/EIR and 2 OSS, general
           purpose workstation hardware and operating systems are not
           included--of Annex 1 of the SOW is:

           i.    during Year 1 and 2 (ie in the warranty period)   *
                 for a 2 year period.

           ii.   during Year 3 and 4,   *   for a 1 year period
                 thereafter.

                 Note that new MSSC software releases incorporating new
                 functionality are not included within this service.

3.4.2.2.   The price of the MSSC Deluxe Support Service will be revised should
           ICO change the number of nodes in the IGF.

3.4.2.3.   The options as defined in Annex 1 of the SOW also have a charge
           associated with Deluxe support as follows:

           i.    ILRs, for the 1st to 3rd ILR.   *   per ILR per annum and
                 for the 4th and thereafter US   *   per ILR per Year

           ii.   MXE,   *   per Year

           * Confidential Treatment Requested and the Redacted Material has
             been separately filed with the Commission.

<PAGE>   108
3.4.2.4.   The price for the MSSC Deluxe Support Service II option specified in
           Section 5.5 of Annex 1 of the SOW is as specified in Paragraphs
           3.4.2.1, 3.4.2.2 and 3.4.2.3. of this Schedule.

3.4.2.5.   Deluxe Support of HPN is priced at   *   per Year. This price
           provides one year of depot maintenance for the HPN hardware and
           software. Depot maintenance support does not include travel which if
           required will be charged in addition to the basic annual price.
           General purpose workstation hardware and operating systems are not
           included in this service.

3.4.3.     Extended Basic Warranty

3.4.3.1.   The price for the Extended Basic Warranty options specified in
           Section 5.2.1 of Annex 1 are:

           i.    RFT:   *   of FOB equipment price excluding NRE and general
                 purpose workstation per annum. The warranty for the TWTs shall
                 be the same as that in clause 40.[16] of the SA.

           ii.   SBS: first year after completion of the warranty period
                 specific to clause 40 of the SA,   *   per annum for 12
                 SANs and thereafter   *   per annum for 12 SAN.

           iii.  MSSC:   *   of FOB equipment price, excluding NRE and general
                 purpose workstation, per annum.

           iv.   TNM:   *   of FOB equipment price, excluding NRE and general
                 purpose workstation hardware, per annum. This does not cover
                 general purpose workstation hardware and OS maintenance.

           v.    NMC/SAN OSS:   *   of FOB Equipment price, excluding NRE and
                 general purpose workstation hardware, per annum. This does not
                 cover general purpose workstation hardware and OS maintenance.

3.5.       PRICE ADJUSTMENT

3.5.1.     Equipment Price Adjustment Formula

3.5.1.1.   This Price Adjustment Formula shall be applied to the equipment
           described in Sections 3.2.1 to 3.2.10 inclusive and Section 3.3.

3.5.1.2.   Application of this price adjustment formula is subject to Section
           3.5.3.

3.5.1.3.   The Contractor and ICO will negotiate in good faith to finalise the
           indices: As and Bs and ratios X, Y and Z, within three months of the
           SA. The Contractor will propose to ICO several options for the
           indices--shown below in Paragraphs 3.5.14., 3.5.1.5, 3.5.1.6.,
           3.5.1.7., 3.5.1.8., 3.5.1.8., 3.5.1.9., 3.5.1.10., 3.5.1.11.,
           3.5.1.12., 3.5.1.13., 3.5.2--and will also provide detail of at least
           the last three years recorded indices and their sources.

3.5.1.4.   Price in year of purchase

           *

3.5.1.5.   NEC - J Indices: Antenna Subsystem:

           i.    "X" =  *

           ii.   "Y" =  *

           iii.  "Z" =  *

           * Confidential Treatment Requested and the Redacted Material has
             been separately filed with the Commission.
<PAGE>   109
          iv.  Index A = Monthly wholesale price index of metals & related
               products, Japan

          v.   Index B = Monthly cash earning index (nominal) of regular workers
               in Manufacturing Industries (Contract Cash Earning), Japan

3.5.1.6.  NEC - J Indices: Other Equipment

          i.   "X" =  *

          ii.  "Y" =  *

          iii. "Z" =  *

          iv.  Index A = Monthly wholesale price index of Electrical Machinery,
               Japan

          v.   Index B = Monthly cash earning index (nominal) of regular workers
               in Manufacturing Industries (Contract Cash Earning), Japan

3.5.1.7.  The NEC - J indices shall be extracted from "Economics Statistics
          Monthly" published monthly by the Bank of Japan and be applied to the
          above formula. Should the indices for the months of new order not be
          available, then the latest indices obtainable shall be applied.

3.5.1.8.  HNS Indices

          i.   "X"  =   *

          ii.  "Y1" =   *   (Note that factor "Y" as shown in the formula has,
               for HNS, been split into two components, "Y1" and "Y2". "B" has
               also been split into two respectively "B1" and "B2".)

          iii. "Y2" =   *

          iv.  "Z"  =   *

          v.   Index A = US PPI for Electrical and Electronic Machinery
               Equipment and Supplies, not seasonally adjusted

          vi.  Index B1 = USA Employment cost index for total compensation,
               durable goods manufacturing, not seasonally adjusted

          vii. Index B2 = Electrical/Electronics Industry Wages Index, India

3.5.1.9.  The Producer Price Index (PPI) is calculated by US Bureau of Labor,
          and is widely recognized among business people, economists,
          statisticians, and accountants for price adjustment clauses in
          contracts.

3.5.1.10. Index A and B1 will be published by the US Department of Labor Bureau
          of labor statistics.

3.5.1.11. Index B2 will be defined as described in Paragraph 3.5.1.3.

3.5.1.12. ETL Indices:

          i.   "X" =  *

          ii.  "Y" =  *

          iii. "Z" =  *

          * Confidential Treatment Requested and the Redacted Material has been
            separately filed with the Commission.

<PAGE>   110
          iv.  Index A = Telephone Equipment Capital Goods Index, World

          v.   Index B = Electrical Electronics Industry Wages Index, Sweden

3.5.1.13. NEC/A Indices:

          i.   "X" =  *

          ii.  "Y" =  *

          iii. "Z" =  *

          iv.  Index A = Price index of material as published by Australian
               Bureau of Statistics Cat. No. 6412.0 group 33

          v.   Index B = Electrical/Electronics Industry Wages Index, Australia

3.5.2.    Basic Price Adjustment Formula for Services

3.5.2.1.  This Price Adjustment formula shall be applied to the installation,
          integration and project management services listed in Sections 3.2.1
          to 3.2.11.

3.5.2.2.  Application of this price adjustment formula is subject to Section
          3.5.3.

3.5.2.3.  The Basic Price adjustment formula for service is:

                             *

3.5.2.4.  Each member of the Contractor's team price adjustment for services
          shall use the same wages Indices ("B"s, "B1"s and "B2"s) given in
          Section 3.5.1 and with the same proportion of B1 and B2 as given in
          Section 3.5 to make up the 0.8 coefficient.

3.5.3.    Application of Pricing Adjustment Formulae

3.5.3.1.  For equipment orderS placed by ICO on, or before, 31 March 1998 for a)
          delivery, installation and integration with the initial purchase in
          the year 2000 and b) where the capacities do not exceed ICO's
          projected year 2002 requirements, the Not To Exceed price of the
          equipment, installation and integration shall be determined in
          accordance with the prices described in Section 3.2.1 to 3.2.10
          inclusive without application of the Price Adjustment formula
          described in Section 3.5.1 and 3.5.2. The actual price of the
          equipment, installation and integration shall be agreed at the date
          ICO places the order and shall take into account the then prevailing
          market conditions and not exceeding the prices charged to other
          customers ordering similar quantities of similar types of equipment.

3.5.3.2.  For equipment orders placed by ICO:

          i.   on, or after, 1 April 1998, or

          ii.  for delivery, installation and integration after year 2000 or

          iii. in excess of ICO's projected year 2002 requirements.

          The Price Adjustment formulae in Section 3.5.1 and 3.5.2 shall apply
          unless the actual price adjustment on or after 1 April 1998 exceeds
          three times or more the average annual adjustment rate during the
          period March 1995 to March 1997, determined using the Price Adjustment
          formulae in Section 3.5.1 and 3.5.2. In such event the actual price
          shall be determined taking into account the then prevailing market

          * Confidential Treatment Requested and the Redacted Material has been
            separately filed with the Commission.
<PAGE>   111
          conditions and not exceeding the prices charged to other customers
ordering similar quantities of similar types of equipment

3.6       PAYMENT SCHEDULE

3.6.1.1.  The equipment payment terms shall be:

          i.   *   of value on order
          ii.  *   of value on shipment
          iii. *   of value on acceptance

3.6.1.2.  The installation and SI&PM charges payment terms shall be:

          i.   *   of value on order
          ii.  *   of the value in equal monthly instalments, in arrears,
               during the duration of the programme
          iii. *   of value upon acceptance.

3.6.1.3.  The spares payment terms shall be:

          i.   *   of the value on order
          ii.  *   on delivery to the specified site.

4.        EQUIPMENT ORDER PROCESS

4.1.      NORMAL PROCESS

4.1.1.1.  The Contractor and the Purchaser agree to develop a process for
          handling the ordering and delivery of equipment. The main principles
          of the process are detailed in the following paragraphs. Items in []
          are subject to review during the development of the process.

4.1.1.2.  ICO will provide the Contractor(s) with a rolling forecast of future
          demand estimates [the format for this is as per Table 1 of Annex 1 of
          the SOW]. The forecast will be revised on an [annual] basis and
          supplied to the Contractor(s) on [Specific date].

4.1.1.3.  ICO will place specific orders for equipment on Contractor(s)] in the
          [format specified in Table 1 of Annex 1, showing separately the total
          installed capacity, the incremental capacity and the final installed
          capacity after the purchase.] The total incremental capacity to be
          supplied under the order for all sites shall be used for the
          calculation of the price as defined in Section 3.

4.1.1.4.  The FOB date shall be within nine months of receipt of order from ICO.

4.1.1.5.  Contractor(s) shall be responsible for the management and
          co-ordination of all contractor staff and the successful installation,
          testing and bringing into service of the new tranche of equipment at
          each site.

4.1.1.6.  The installation and test schedule will be agreed at the time of the
          placement of the order. The installation and acceptance shall be
          completed no more than 6 months after the delivery of equipment to the
          site unless agreed by ICO.

          * Confidential Treatment Requested and the Redacted Material has been
            separately filed with the Commission.

<PAGE>   112
4.1.1.7.  Contractor(s) shall plan in advance with ICO to minimise any downtime
required for installation of expansion blocks. The Contractor shall work with
ICO/Operator to schedule the downtime in appropriate time of day for ICO's
business purposes.

4.2.      EXPEDITED PROCESS

4.2.1.1.  ICO may request at any time an expedited order, delivery and bringing
          into service capacity expansion.

4.2.1.2.  The Contractor will make all reasonable efforts to provide shortened
          delivery lead times for all, or part, of the order, as requested.

4.2.1.3.  ICO can negotiate and give contractor incentives to shorten the lead
          time from receipt of order to bringing into shipment(FOB) and
          installation and bringing into service.

4.2.1.4.  The expedited process may apply to partial shipments of a normal order
          or to a special purpose order which ICO may raise.

5.        PRICING OF SOFTWARE RELEASES

5.1.      GENERAL PRINCIPLES

5.1.1.1.  Contractor(s) will provide ICO with releases of operating software on
          "as need be" basis or upon new feature release that has been purchased
          by ICO except switch(MSSC) subsystem software.

5.1.1.2.  Contractor will provide regular releases of operating software for
          Switch(MSSC) subsystem which will provide new functionality in
          accordance with Supply Agreement.

5.1.1.3.  The software releases will include fixes to faults, a basic package of
          new functionality and a range of optional features.

5.1.1.4.  The price schedule of the new software releases will be submitted
          separately 90 days in advance of the new releases.

5.2.      MSSC SOFTWARE UPGRADE PRICING

5.2.1.1.  The pricing per annum for subscription to the standard CME 20 (MSSC)
          Software release programme for the period 1 January 2001 until
          December 2003 is as shown in Table 19. The price for the upgrade
          depends upon the size of network.

                   TABLE 19 -- MSSC SOFTWARE UPGRADE PRICING

<TABLE>
<CAPTION>
-------------------------------------------------------
NODE                     PRICING            PRICE PER
                        PARAMETER          ANNUM (US $)
-------------------------------------------------------
<S>                   <C>                 <C>

                         *
-------------------------------------------------------
                         *

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

</TABLE>

5.2.1.2.  The above pricing is firm fixed price for the three year term.
          Subsequent pricing will be negotiated at the end of the three year
          term and will be linked to an index to be agreed.

          * Confidential Treatment Requested and the Redacted Material has been
            separately filed with the Commission.

<PAGE>   113
5.2.1.3.  The above software subscription provides ICO with the right to all
          basic software upgrades for the MSSC and HLR nodes which are made
          available within the subscription period. ICO may also choose to
          purchase optional features in addition.

5.2.1.4.  Note that the above prices exclude any installation and materials
          costs which may be charged and which will be quoted at the time of
          upgrade.

5.2.1.5.  The annual MSSC software subscription is subject to the discount
          structure shown in Table 20 based on the total number of installed
          Exchange Terminating Circuits (ETCs) in the ICO network at the start
          of the subscription year.

                  TABLE 20 - MSSC SOFTWARE DISCOUNT STRUCTURE

<TABLE>
<CAPTION>
          Number of ETCs in IGF    <500     500-999    1,000-1,999    2,000-2,999    3,000-3,999    >4,000
          ---------------------    ----     -------    -----------    -----------    -----------    ------
<S>                                <C>      <C>        <C>            <C>            <C>            <C>

                                                            *

</TABLE>

5.2.1.6.  The annual HLR software subscription is subject to the discount
          structure per HLR as shown in Table 21, based on the number of
          registered subscribers in the ICO network at the start of the
          subscription year.

                   TABLE 21 - HLR SOFTWARE DISCOUNT STRUCTURE

<TABLE>
<CAPTION>
          Thousands of
          subscribers in the
          HLR                      <150     150-299    300-599    600-899    900-1,299    >1,300
          ---------------------    ----     -------    -------    -------    ---------    ------
<S>                                <C>      <C>        <C>        <C>         <C>         <C>

                                                          *

</TABLE>

6.        PRICING AND PROCESS FOR DEVELOPMENT OF ICO SPECIFIC FUNCTIONALITY

6.1.      INTRODUCTION

6.1.1.1.  The Contractor recognises that ICO will require the on-going
          development of ICO specific functionality and agrees to develop a
          process to support ICO's continued development.

6.1.1.2.  The process and costs of development and integration of Future
          Requirements will be developed using the concepts as described in
          Section 6.2, 6.3, 6.4 and 6.5.

6.2.      FEASIBILITY STUDY

6.2.1.1.  ICO will request the Contractor(s) to undertake a feasibility study
          for a particular element of functionality. The process that shall be
          followed is:

          * Confidential Treatment Requested and the Redacted Material has been
            separately filed with the Commission.

<PAGE>   114
          i.   ICO and the Contractor(s) will hold functionality development
               meetings on as need be basis either initiated by ICO or by the
               Contractor. ICO will provide a forecast, short and long term, of
               the ICO specific functionality that may be required.

          ii.  ICO will request the Contractor to provide "rough order of
               magnitude" costs (ROM) and the development and installation
               schedule for ICO selected functions.

6.2.1.2.  The Contractor shall either:

          i.   deliver a rough order of magnitude cost, including a program for
               the development of the functionality including the detailed
               specification, and the program for installation and integration
               of the functionality.

          ii.  or provide a commitment to delivering a Firm Fixed Price,
               including development, testing and installation schedule on an
               agreed upon schedule between ICO and contractor.

6.3.      DELIVERY

6.3.1.1.  The delivery of the additional functionality shall be completed on an
          agreed upon schedule between ICO and the contractor.

6.3.1.2.  The programme for delivery shall include milestones as appropriate to
          the needs of each development and may include, but are not limited to:

          i.    design review meeting

          ii.   critical design review meeting

          iii.  test plan review

          iv.   rollout plan review

          v.    installation plan

          vi.   acceptance and handover plan

6.4.      ICO SPECIFIC FUNCTIONALITY PRICING

6.4.1.1.  The Contractor shall provide ICO firm fixed price information that
          includes:

          i.    Non-recurring expenditure where appropriate

          ii.   equipment prices

          iii.  spares

          iv.   software licenses

          v.    installation and testing

          vi.   project management and systems integration

          vii.  warranty

          viii. payment schedule.
<PAGE>   115
6.5.      PRICE METHODOLOGY

6.5.1.1.  In order to establish the firm fixed price for ICO specific
          functionality, the price level shall be agreed in the following
          manner.

          i.   Normal commercial negotiations following submission of technical
               and commercial proposals

          ii.  Price justification initially based on the prices included in the
               Contractor's Supply Agreement and taking into consideration any
               changes in exchange rates and agreed escalation formulae

          iii. If agreement cannot be reached on the above basis further price
               justification will be provided based on world-wide market price
               comparisons.

          iv.  If agreement cannot be reached the Contractor will provide
               detailed estimates of the work to be performed with corresponding
               hardware, software and manpower costings.
<PAGE>   116

                                   APPENDIX-1
<PAGE>   117
                                  GRAND TOTAL

                                        *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   118
                                      SBS

                                       *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   119
                                      SBS

                                       *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

<PAGE>   120
                                      RFT

                                       *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

<PAGE>   121
                                      RFT

                                       *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

<PAGE>   122
                                      PCS

                                       *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

<PAGE>   123
                                                                          Switch

                                        *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   124
                                                             Switch

                                        *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

<PAGE>   125
                                                             Switch

                                      *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

<PAGE>   126
                                      TNM
TNM                                        PURCHASE           OPTIONS

                                       *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

<PAGE>   127
                                      TNM

                                        *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

<PAGE>   128
                                      TNM

                                       *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

<PAGE>   129
                                    NMS SRMC

                                       *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

<PAGE>   130
                                    NMS SRMC

                                       *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

<PAGE>   131
                                      STE

                                       *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

<PAGE>   132
                                    SI & PM

                                       *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

<PAGE>   133
                                     AX & B

                                        *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   134
                                   APPENDIX-2

                                        *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   135
I. PRICE SUMMARY (IN THOUSAND US$)

                                        *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   136
                            II.1 PRICE SUMMARY (NRE)

                                        *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   137
               II.2 PRICE SUMMARY (HARDWARE)    (IN THOUSAND US$)

                                        *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

<PAGE>   138
            11.3 PRICE SUMMARY (SOFTWARE LICENCE)  (IN THOUSAND US$)

                                        *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

<PAGE>   139
II.4 PRICE SUMMARY (SERVICES) (IN THOUSAND US$)

                                       *
\
* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

<PAGE>   140
                            II.5 PRICE SUMMARY PAGES
                         * [5 PAGES HAVE BEEN REDACTED]

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   141

<PAGE>   142

<PAGE>   143
                              III.1 RFT PRICE LIST
                        * [11 PAGES HAVE BEEN REDACTED]

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

<PAGE>   144
                                        *
<PAGE>   145
                                        *
<PAGE>   146
                                        *
<PAGE>   147
                                        *
<PAGE>   148
                                        *
<PAGE>   149
                              III.2 SBS PRICE LIST
                        * [12 PAGES HAVE BEEN REDACTED]

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   150
                                        *
<PAGE>   151
                                        *
<PAGE>   152
                                        *
<PAGE>   153
                                        *
<PAGE>   154
                                        *
<PAGE>   155
               * [III.3 PCS PRICE LIST 1 PAGE HAS BEEN REDACTED]

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

<PAGE>   156
                              III.1 RFT PRICE LIST
                         * [2 PAGES HAVE BEEN REDACTED]

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

<PAGE>   157
                            III.4 SWITCH PRICE LIST
                         * [8 PAGES HAVE BEEN REDACTED]

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   158
                                        *
<PAGE>   159
                                        *
<PAGE>   160
                                        *
<PAGE>   161
                              III.5 TNM PRICE LIST
                         * [4 PAGES HAVE BEEN REDACTED]

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   162
                                       *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   163
                              III.2 SBS PRICE LIST
                         * [2 PAGES HAVE BEEN REDACTED]

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

<PAGE>   164
                    III.6 NMC/SRMC/SAN-OSS PRICE LIST PAGES
                         * [5 PAGES HAVE BEEN REDACTED]

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

<PAGE>   165
                                        *
<PAGE>   166
                                        *
<PAGE>   167
                       III.7 SPECIAL TEST EQUIPMENT (STE)
                         * [3 PAGES HAVE BEEN REDACTED]

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

<PAGE>   168
                 III.8 SYSTEM INTEGRATION & PROJECT MANAGEMENT
                           * [1 PAGE HAS BEEN REDACTED]

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   169
              * [III.9 AX+B PRICE LIST 6 PAGES HAVE BEEN REDACTED]

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

<PAGE>   170
                                        *
<PAGE>   171
                                        *
<PAGE>   172
                                        *
<PAGE>   173
                                        *
<PAGE>   174
                                        *
<PAGE>   175
                                   APPENDIX-3

<PAGE>   176
1.        CONDITIONS OF PRICE ESTIMATION

1.1.      VALIDITY OF ESTIMATES

1.1.1.1.  This price schedule is prepared on the understanding that the
          agreement should be made at the same time of S/A, which is expected to
          be signed on 15 February 1997.

1.2.      ESTIMATED MAN-POWER

1.2.1.1.  The Man-Power is estimated in accordance with the following
          assumptions:

               i.   Working hours:           8 hours per day

               ii.  Working days:            5 days per week

               iii. National holidays at the site are not defined as working
                    day, they are considered a Holiday. Only national holidays
                    in the country of the site shall be considered as holidays.

               iv.  Duration is estimated by calendar day including travelling
                    duration

1.3.      TEST EQUIPMENT

1.3.1.1.  The necessary test equipment, especially Special Test Equipment (STE),
          are listed as an ICONET Integration work separately from IGF testing
          are defined in Section 2 of the Price Schedule. Some modification on
          the number of test equipment may be necessary according to the ICONET
          Integration schedule.

1.4.      PRICING AND MANPOWER ESTIMATES

1.4.1.1.  The Plan-1 and Plan-2 shown in Table 1 - ICONET Integration Price
          Summary, indicate the estimated price.

1.4.1.2.  Table 2 shows the estimated travel time for undertaking the ICONET
          Integration test plan.

1.4.1.3.  The estimated manpower to undertake the ICONET Integration is defined
          in Annex 9 of the SOW.

1.4.1.4.  The average monthly cost per man inclusive of subsistence is,   *   .

1.4.1.5.  Section 3.5.2 of the Price Schedule shall not apply to the
          rates/estimates specified in A.1.4.1.4 or Table 1.

          * Confidential Treatment Requested and the Redacted Material has been
            separately filed with the Commission.

Author: M Coggin                    Appendix 3 Page 2
<PAGE>   177
            TABLE 1 - ESTIMATED ICONET INTEGRATION PRICE (US $'000s)

                                        *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

Author: M Coggin               Appendix 3 Page 3
<PAGE>   178
                                        *

    TABLE 2 - ESTIMATED TRAVEL MAN-TIME FOR ICONET INTEGRATION (MAN - TIMES)

                                        *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

                               Appendix 3 Page 4

<PAGE>   179
                                        *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

                               Appendix 3 Page 5

<PAGE>   180
                                        *

    TABLE 3 - ESTIMATED DOCUMENT PREPARATION FEE FOR ICONET INTEGRATION (K$)

                                        *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

                               Appendix 3 Page 6

<PAGE>   181
                                        *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

                               Appendix 3 Page 7
<PAGE>   182
SCHEDULE 10: VENDOR FINANCING SUMMARY

<PAGE>   183
                         ICO/NEC TEAM VENDOR FINANCING

                        SUMMARY OF TERMS AND CONDITIONS

                Revision 15.02.97 Following ICO/NEC Team meeting

PREAMBLE:           This is a short summary of the principal terms on which it
                    is proposed that, subject to board approvals of the NEC
                    Team (comprising NEC Corporation, Hughes Network Systems
                    and Ericsson Ltd) and to contract, vendor financing will be
                    made available by the NEC Team to ICO. It supersedes any
                    earlier proposals by any of the NEC Team.

                    The parties agree to negotiate the terms and conditions in
                    good faith with a view to completing the anticipated
                    financing within the spirit of this summary of these terms
                    and conditions by the end of 1997.

                    It is intended that this term sheet, subject to any
                    amendments and additions which the parties may agree, will
                    be annexed to the Supply Agreement when it is signed and
                    that long form documentation will be negotiated and agreed
                    after that in the same time frame as for the ICO Group's
                    senior bank financing.

BORROWER:           ICO Global Communications (Operations) Ltd. ("BORROWER").

LENDER:             NEC Corporation ("NEC" or "LENDER").

GUARANTORS:         ICO Global Communications (Holdings) Ltd. ("HOLDINGS") and
                    its material subsidiary undertakings and associated
                    entities (each a "GUARANTOR"). In this term sheet, "ICO
                    GROUP" means Holdings and its subsidiary undertakings from
                    time to time.

PURPOSE:            Vendor financing of part of the price for equipment and
                    engineering services to be provided by the NEC Team under
                    the Supply Agreement.

MAXIMUM AGGREGATE   The maximum aggregate of all Financed Invoices (as defined
FINANCING AMOUNT:   below) issued shall not exceed the lesser of 25% of the
                    [aggregate total price] (before any adjustments) as
                    specified in Supply Agreement and US$184 million (such
                    lesser amount "THE MAXIMUM AGGREGATE FINANCING AMOUNT").

                                       1
<PAGE>   184
UTILISATION:        All equipment and engineering services to be provided
                    under the Supply Agreement excluding optional items and
                    other adjustments ("DELIVERABLES") scheduled to be provided
                    under the Supply Agreement up to and  including the 1st
                    calendar quarter of 1998 will be invoiced and paid for 100%
                    in cash in accordance with the terms of the Supply
                    Agreement.

                    In respect of subsequent Deliverables scheduled to be
                    provided after that, a percentage of the contract amount for
                    them will be financed by Lender. The remainder will be
                    invoiced and paid in cash in accordance with the terms of
                    the Supply Agreement. (This is subject to the next section
                    relating to Transferred Assets).

                    The percentage to be financed will differ depending upon
                    whether the Deliverables comprise equipment or engineering
                    services and depending upon which NEC Team member has
                    provided them. The (six) different percentages will be fixed
                    so as to ensure that up to the Maximum Aggregate Financing
                    Amount is financed, in the appropriate proportions referable
                    to the three NEC Team members.

                    A single invoice (each a "FINANCED INVOICE") shall be issued
                    by NEC at the end of each calendar quarter for the financed
                    portion of all Deliverables in that quarter.

                    The principal amount of all Financed Invoices outstanding
                    from time to time is referred to in this term sheet as "THE
                    FINANCING AMOUNT".

TRANSFERRED ASSETS: It is intended that the Supply Agreement will allow for the
                    transfer of equipment and the provision of engineering
                    services to eligible third parties nominated by Borrower.
                    Any such nomination:

                    - must comprise of one or more distinct SANs (or other
                      complete items of equipment) and all related materials,
                      equipment and engineering services; and

                    - must be notified to Lender as soon as reasonably
                      practicable and (if Borrower wishes Lender to make
                      available, or continue to make available, finance in
                      respect of such Transferred Assets) at least three months
                      before the transfer or provision to the third party.

                    Any equipment and services which are, or are to be,
                    transferred or provided to third parties in this way in
                    accordance with the Supply Agreement are referred to in this
                    term sheet as "TRANSFERRED ASSETS". Borrower shall remain
                    fully liable in respect of any

                                       2
<PAGE>   185
                    payments to be made in respect of any Transferred Assets.
                    Borrower shall fully indemnify each member of the NEC Team
                    against any consequences of the transfer or provision to
                    third parties, including without limitation currency
                    exposure and other costs and expenses incurred.

                    Lender's commitment to provide financing as set out above
                    shall still apply to any Transferred Assets if:

                    - the third party concerned is, or is controlled by, a
                      Guarantor; and

                    - any equipment transferred remains beneficially owned by a
                      Guarantor and becomes subject to Lender's first priority
                      security as referred to below.

                    In the case of any other Transferred Assets, Lender's
                    commitment to provide financing as set out above shall not
                    apply; but the NEC Team shall consider in good faith any
                    request made by Borrower to provide financing in respect of
                    such Assets. Immediately on the relevant third party
                    nomination being made. Borrower shall (unless the NEC Team
                    agrees otherwise in response to a request as above) prepay
                    any Financed Invoices if and to the extent that they related
                    to the Transferred Assets involved and the Maximum Aggregate
                    Financing Amount shall be reduced by 25% of their total
                    value as invoiced by NEC.

INTEREST RATE AND   Interest on the Financing Amount will be payable quarterly
PAYMENT:            in arrears in cash in US$ at a rate of six-month US$ LIBOR
                    plus 200 basis points.

PREPAYMENT:         The circumstances in which prepayments must be made are to
                    be discussed. Borrower will be entitled to prepay at any
                    time on reasonable notice subject to a minimum of US$5
                    million, with payment of breakage costs where applicable but
                    with no penalty.

MATURITY AND        Each Financed Invoice will be payable in cash in US$ on the
REPAYMENTS          third anniversary of the date of invoice.

SECURITY:           NEC will not have ICO shareholder guarantees or other
                    outside credit support. NEC will be granted security over
                    all assets owned legally or beneficially by any member of
                    the ICO Group, such security to rank first in priority
                    alongside and pari passu with other first priority senior
                    lenders.

                    NEC will share voting and enforcement rights in respect of
                    such

                                       3
<PAGE>   186
                    security with those other senior lenders on a pro rata
                    basis. But NEC will in any event be entitled to enforce its
                    security, if it is minded to do so, if six months elapses
                    after an event of default occurs and it is not cured; or if
                    two payment defaults occur within any period of 12 months.

                    Other inter-creditor arrangements will be agreed; but
                    nothing in those arrangements will limit NEC's contractual
                    rights under the Supply Agreement and this financing. The
                    inter-creditor arrangements must provide that lenders
                    enjoying the benefit of ICO shareholder guarantees or other
                    outside credit support will look first to those (rather than
                    to the security) to satisfy ICO's obligations to them in the
                    event of default.

CONDITIONS          The availability of the financing generally, and each
PRECEDENT:          utilisation by way of a Financed Invoice, will be subject
                    to various conditions precedent. These are to be agreed, but
                    they will include those which are either customary in credit
                    agreements for major financings or otherwise reasonably
                    considered appropriate by the NEC Team in this case.

                    They will include:

                    - approval by Holdings' board of ICO business plan dated
                      February 3, 1997 and NEC Team receipt and review of, and
                      reasonable concurrence with that business plan; and

                    - certain reasonable criteria (yet to be determined, but
                      intended insofar as practicable to be objective rather
                      than subjective) relating to the satellites intended to
                      form part of the ICONET system.

REPRESENTATIONS     Borrower and each Guarantor will make, and agree to repeat
AND WARRANTIES:     during the term, certain representations and warranties.
                    These have yet to be finalised, but they will include those
                    which are customary in credit agreements for major
                    financings and others reasonably considered appropriate by
                    the NEC Team in this case. They will be subject to agreed
                    disclosure, including relating to the [TRW litigation].

UNDERTAKINGS:       Borrower will give various undertakings. These have yet to
                    be finalised, but they will include those customary in
                    credit agreements for major financings and others reasonably
                    considered appropriate by the NEC Team in this context.
                    They will include, without limitation, appropriate financial
                    ratio undertakings

                                       4
<PAGE>   187
EVENTS OF DEFAULT:  The agreement will specify a number of events of default
                    relating to Borrower and other members of the ICO Group.
                    These will include those customary in credit agreements for
                    major financings and others reasonably considered
                    appropriate by the NEC Team in this context.

                    Upon the occurrence of any event of default (taking into
                    account any customary grace and remedy periods). Lender may
                    cancel its commitment and/or demand immediate repayment of
                    all Financed Invoices and other outstanding amounts and/or,
                    subject to the terms of the inter-creditor arrangements,
                    enforce its security.

INDEMNIFICATION:    Borrower will indemnify each member of the NEC Team against
                    all losses, liabilities, claims, proceedings, damages, costs
                    and expenses relating to this financing, except to the
                    extent they result from the indemnified party's gross
                    negligence or wilful default.

MANAGEMENT/COMMIT-  150 basis points, calculated in US$ by reference to the
MENT FEE:           initial Maximum Aggregate Financing Amount.

                    One half of this fee shall be payable by Borrower to NEC in
                    cash on signing of the Supply Agreement. The second half
                    shall be payable by Borrower to NEC in cash on 1 January
                    1998, together with interest at the rate of 12 month US$
                    LIBOR plus 200 basis points for the period from the date of
                    the Supply Agreement up to the date of payment.

EXPENSES:           Borrower will pay all legal and other out-of-pocket expenses
                    of each member of the NEC Team related to any enforcements
                    of this financing transaction.

TRANSFER AND        Lender will have the right, and Borrower acknowledges the
ASSIGNMENTS:        NEC Team's intention, to transfer or sell participations in
                    its commitments and/or in the Financing Amount. Assignments
                    will be allowed, subject to Borrower's consent, not to be
                    unreasonably withheld. References to NEC, NEC Team and
                    Lender shall, where appropriate, include transferees and
                    assignees.

GOVERNING LAW:      English law and jurisdiction of English courts, with
                    security documentation governed by local law(s) and/or
                    allowing for local jurisdiction to the extent considered
                    necessary or desirable by the NEC Team.

DOCUMENTATION:      The long form documentation will include all customary
                    financing agreement provisions reasonably considered
                    appropriate by the NEC Team and as negotiated and agreed by
                    Borrower.

                                       5

<PAGE>   188
                    It is acknowledged by both sides that this summary deals
                    only with the points currently considered to be the
                    principal ones. Further provisions and issues will arise in
                    the negotiation of the long form documentation.

                                       6

<PAGE>   189
SCHEDULE 11: PAYMENT SCHEDULE
<PAGE>   190
                                PAYMENT SCHEDULE

1.   INTRODUCTION

1.1  Instalments of the Price shall become payable by ICO to the Contractor in
     accordance with the following provisions of this Payment Schedule.

1.2  In this Payment Schedule, the following expressions shall refer to the
     relevant categories or, as the case may be, sub-categories as identified in
     the Price List:

     NRE

     Hardware

     Software Licence

     Services and its sub-categories as identified in sheet II.6 Price Summary
     (Services - Break Down) in the Price List:

          Installation and Testing

          Project Management

          Additional Warranty

          Freight & Insurance

          Training

          Services (as a sub-category of Services in relation to SBS)

          In Country Services

          System Integration Test

          Installation

          Test

          Project Management and System Integration

          Supervision & Co-ordination of Delivery and Transportation

1.3  In this Payment Schedule, each of the following expressions shall refer to
     the relevant sub-system as identified in the Price List:

     RFT

     SBS

     PCS

     SWITCH

     TNM

                                       1
<PAGE>   191
     NMC/SRMC SAN-OSS ("NMS")

     STE

     SI&PM

     AX+B

1.4  In this Payment Schedule the following definitions are used in addition to
     those prevailing in the remainder of this Agreement:

     "Engineering Portion" means those parts of the Price attributable to NRE
     and Services (except for Freight & Insurance and Additional Warranty).

     "Equipment Portion" means those parts of the Price attributable to
     Hardware; Software Licence; and Freight & Insurance and Additional
     Warranty.

     "Price List" means the detailed price list contained in appendix 2 of
     Schedule 6 to this Agreement.

     "Site" means each of the following sites as identified in the Price List,
     namely SAN ICO-NET (a generic term referring to the IGF and common
     infrastructure not an actual site), SAN USA, SAN Australia, SAN Germany,
     SAN South Africa, SAN India, SAN Brazil, SAN Chile, SAN Mexico, SAN UAE,
     SAN Indonesia, SAN China, SAN Korea, NMC Primary and NMC Back-up.

     "Sub-System" means each of RFT, SBS, PCS, SWITCH, TNM, NMC/SRMC SAN-OSS
     ("NMS"), STE. SI and PM. and AX+B.

     "Sub-System Amount" in relation to any Sub-System means that part of the
     Engineering Portion or the Equipment Portion (as the case may be)
     attributable in accordance with the Price List to that Sub-System.

2.   EQUIPMENT PORTION

2.1        Instalments of the Equipment Portion shall become payable as follows:

2.1.1      On the date of this Agreement, * of the Equipment Portion for all
           Sub-Systems.

2.1.2      On completion of the Preliminary Design Review (as defined in the
           Statement of Work) of all relevant elements in any Sub-System, 5% of
           the relevant Sub-System Amount.

           Since there will not be a Preliminary Design Review for RFT, 5% of
           the relevant Sub-System Amount for that Sub-System shall be paid on
           completion of the Final Design

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

                                       2
<PAGE>   192

          Review (as defined in the Statement of Work) of all relevant elements
          of the RFT Sub-System (which may have already occurred) in addition to
          the amount then payable as specified in clause 2.1.3 below.

          In relation to the SWITCH Sub-System, the Preliminary Design Review
          for R 8 (as defined in the Statement of Work) is for these purposes to
          be treated as the Preliminary Design Review for the MSSC/VLR, AuC/EIR
          and HLR elements, each as identified in the Statement of Work; each of
          the OSS and HPN elements, as so identified, has its own Preliminary
          Design Review.

          There is no separate Preliminary Design Review for the AX+B
          Sub-System, because each element in it is referable to one of the
          other Sub-Systems. For the purposes of this clause 2.1.2, * of the
          Sub-System amount referable to each element of the AX+B Sub-System
          shall be payable when the * payment being made under this clause in
          respect of the other Sub-System to which such element is referable
          shall be payable or, if later, when the Preliminary Design Review for
          that element is completed.

2.1.3     On completion of the Final Design Review (as defined in the Statement
          of Work) of all relevant elements in any Sub-System, * of the
          relevant Sub-System Amount.

          In relation to the SWITCH Sub-System, the Final Design Review for R 8
          (as defined in the Statement of Work) is for these purposes to be
          treated as the Final Design Review for the MSSC/VLR. AuC/EIR and HLR
          elements, each as identified in the Statement of Work: each of the OSS
          and HPN elements, as so identified, has its own Final Design Review.

          There is no separate Final Design Review for the AX+B Sub-System,
          because each element in it is referable to one of the other
          Sub-Systems. For the purposes of this clause 2.1.3, * of the
          Sub-System amount referable to each element of the AX+B Sub-System
          shall be payable when the * payment being made under this clause in
          respect of the other Sub-System to which such element is referable
          shall be payable or, if later, when the Final Design Review for that
          element is completed.

2.1.4     On completion of the production of * of any Sub-System applicable to
          a Site, * of the relevant Sub-System Amount referable to that Site.

          For the purposes of this clause 2.1.4. "completion of the production
          of * of any Sub-System applicable to a Site" shall be deemed to have
          occurred when * (by value calculated in accordance with the Price
          List) of the Hardware comprised in that Sub-System which is to be
          delivered to that Site has either been shipped (as evidenced

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

                                       3
<PAGE>   193
          by a bill of lading or equivalent shipping document) or, in the case
          of Hardware being delivered other than via ship or plane, otherwise
          been delivered to the Site.

2.1.5     On shipment (as evidenced by a bill of lading or equivalent shipping
          document) of any item of Hardware, or in the case of Hardware being
          delivered other than via ship or plane its delivery to the relevant
          Site, * of the relevant Sub-System Amount referable to that
          Hardware.

          For purposes of this clause 2.1.5, the proportion of any Sub-System
          Amount referable to any Hardware being delivered to any Site shall be
          the same proportion of the Sub-System Amount (including the elements
          attributable to Hardware, Software Licence, Freight & Insurance and
          Additional Warranty) as the proportion which such Hardware represents
          in terms of value (as calculated by reference to the Price List) to
          all of the Hardware forming part of the relevant Sub-System which is
          to be delivered to that Site pursuant to this Agreement.

2.1.6     On delivery of any Hardware to a Site, * of the relevant Sub-System
          Amount referable to that Hardware.

          For the purposes of this clause 2.1.6, the proportion of any
          Sub-System Amount referable to any Hardware being delivered to any
          Site shall be the same proportion of the Sub-System Amount (including
          the elements attributable to Hardware, Software Licence, Freight &
          Insurance and Additional Warranty) as the proportion which such
          Hardware represents in terms of value (as calculated by reference to
          the Price List) to all of the Hardware forming part of the relevant
          Sub-System which is being delivered to that Site pursuant to this
          Agreement: and in the case of Hardware in respect of which a bill of
          lading (or equivalent shipping document) is issued, delivery to the
          Site shall be deemed to occur two months after the date of that bill
          of lading (or equivalent shipping document).

2.1.7     On completion of the installation of * of any Sub-System (or in the
          case of NMS and AX+B, any element of a Sub-System) applicable to a
          Site, * of the relevant Sub-System Amount referable to that Site
          (and, in the case of NMS and AX+B, referable to the relevant element
          of the Sub-System).

          For the purpose of this clause 2.1.7, "completion of the installation
          of * of any Sub-System (or in the case of NMS and AX+B, any element
          of a Sub-System) applicable to a Site" shall be defined as and be
          deemed to occur on the date being in the case of a Sub-System (or in
          the case of NMS and AX+B, the relevant element of the Sub-System)
          consisting of a:

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

                                       4
<PAGE>   194
2.1.7.1 RFT:        3 months after the commencement of installation.

2.1.7.2 TNM:        1 month after the commencement of installation.

2.1.7.3 NMS:        1 month after the commencement of installation in respect
               of SAN-OSS including SRMC functions and TMOS WS and 5 months
               after the commencement of the installation in respect of NMC
               Primary and NMC Back-up.

2.1.7.4 SBS:        1 month after the commencement of installation.

2.1.7.5 SW:         2 months after the commencement of installation.

2.1.7.6 PCS:        3 months after the commencement of the installation.

2.1.7.7 STE:        1 month after the commencement of the installation.

2.1.7.1 AX+B        Each element in the AX+B Sub-System is referable to one of
the other Sub-Systems or, in the case of NMS, an element of another Sub-System.
For the purposes of this clause 2.1.7.1, completion of * of the installation
of each element of the AX+B Sub-System applicable to a Site shall be deemed to
occur under this clause when completion of * of the installation at that Site
in respect of the other Sub-System, or as the case may be element from another
Sub-System, to which such element of the AX+B Sub-System is referable shall be
deemed to have occurred. For the purposes of this clause 2.1.7, "commencement
of installation" in relation to any Sub-System (or in the case of NMS, the
relevant part of a Sub-System) at any Site shall be defined as and be deemed to
occur on the actual date when installation of such Sub-System (or, as the case
may be, part of a Sub-System) commenced at that Site or, in a case where any of
the Hardware forming part of that Sub-System (or, as the case may be, part of a
Sub-System) has been delivered to that Site in circumstances where the Site is
not available by the appropriate Ready for Access Date as required by the
Supply Agreement, the date of arrival of that Hardware at that Site.

2.1.8   On Level 2 Handover Date, * of the Equipment Portion of all
Sub-Systems.

2.2     In case of delay due to NEC Team's responsibility, payment will start
from the actual occurrence of each event. In case of delay due to ICO's
responsibility, the original schedule will be kept.

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

                                       5
<PAGE>   195
       2.3  It is the intention of the parties that the above provisions cover
       100%, no more and no less, of all of the Equipment Portion. If and to
       the extent that any part of the Equipment Portion is not covered by
       them, the parties shall negotiate in good faith to agree the basis on
       which the missing part is to be paid, which shall so far as possible be
       consonant with the instalment provisions set out above. To the extent
       that they cannot so agree, the missing part shall be payable on or
       before the Level 2 Handover Date.

3.     ENGINEERING PORTION

3.1    Instalments of the Engineering Portion shall become payable as follows:

3.1.1  On the date of this Agreement, * of the Engineering Portion for all
       Sub-Systems.

3.1.2  80% of the Engineering Portion referable to each element (that is, NRE
       and each sub-category of Services except for Freight & Insurance and
       Additional Warranty) shall be payable by quarterly instalments on the
       relevant basis as set out in whichever of clauses 3.1.2.1 to 3.1.2.4
       applies to such element.

       Each of those clauses refers to equal quarterly instalments being
       payable during a period. In each case, the intention is that there shall
       be as many instalments as there are scheduled at the outset (that is, as
       shown in the Master level Schedule as at the date of this Agreement) to
       be complete quarters -- that is, complete periods of three months -- in
       the relevant period. So if the period is shown in the Master Level
       Schedule as at the date of this Agreement as being 14 months, there will
       be four instalments.

       The first instalment shall be paid at the end of the first quarter in
       the period; the second at the end of the second quarter and so on.
       However, the final instalment shall be paid at the end of the period
       when it actually occurs (rather than when it was at the outset scheduled
       to occur), even if that is not at the end of a complete quarter.

       By way of example, if a period starting on January 15 which was at the
       outset scheduled to be 14 months in fact lasts for 16 months and five
       days, the instalments shall be payable at the end of the 3rd, 6th and 9
       months (that is, on April 14, July 14 and October 14 in the same year)
       and after 16 months and five days (that is, May 19 in the next year)
       respectively.

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

                                       6
<PAGE>   196
3.1.2.1      First basis: * of the Engineering Portion for all Sub-Systems
             referable to NRE shall be payable in equal quarterly instalments
             during the period from the date of this Agreement up to and
             including the scheduled date of the last shipment of any of the
             Hardware (as shown in the Master Level Schedule as at the date of
             this Agreement).

3.1.2.2      Second basis: * of the Engineering Portion for all Sub-Systems
             referable to those of the Services listed in clause 3.2.2 below
             shall be payable in equal quarterly instalments during the period
             from the date of this Agreement up to and including the scheduled
             date of the Level 2 Handover Date (as shown in the Master Level
             Schedule as at the date of this Agreement).

3.1.2.3      Third basis: * of the Engineering Portion for each Sub-System for
             each Site referable to those of the Services listed in clause 3.2.3
             below shall be payable in equal quarterly instalments during the
             period from the scheduled commencement of installation of the
             Sub-System at that Site through to the scheduled completion of the
             test (phase 2.1) in respect of that Sub-System at that Site (both
             as shown in the Master Level Schedule as at the date of this
             Agreement).

3.1.2.4      Fourth basis: * of the Engineering Portion for each Sub-System
             for each Site referable to those of the Services listed in clause
             3.2.4 shall be payable in equal quarterly instalments for the
             period from the scheduled commencement of the provision of that
             Service in respect of that Sub-System at that Site up to the
             scheduled completion of that provision (both as shown in the Master
             Level Schedule as at the date of this Agreement).

3.1.3        On the Level 2 Handover Date, * of the Engineering Portion for
             all Sub-Systems.

3.2.1        The first basis set out in clause 3.1.2.1 shall not apply to any
             Services.

3.2.2        The second basis set out in clause 3.1.2.2 shall apply to the
             following Services: Project Management and System Integration.

3.2.3        The third basis set out in clause 3.1.2.3 shall apply to the
             following Services: Installation and Testing; System Integration
             Test; Installation; Test: Supervision & Co-ordination of Delivery
             and Transportation; Services (as a sub-category of Services in
             relation to SBS) and In-Country Services.

3.2.4        The fourth basis set out in clause 3.1.2.4 shall apply to the
             following Services: Training.

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

                                       7
<PAGE>   197
3.3          In case of delay due to NEC Team's responsibility, payment will
             start from the actual occurrence of each event. In case of delay
             due to ICO's responsibility, the original schedule will be kept.

3.4          It is the intention of the parties that the above provisions cover
             100%, no more and no less, of all of the Engineering Portion. If
             and to the extent that any part of the Engineering Portion is not
             covered by them, the parties shall negotiate in good faith to agree
             the basis on which the missing part is to be paid, which shall so
             far as possible be consonant with the instalment provisions set out
             above. To the extent that they cannot so agree, the missing part
             shall be payable on or before the Level 2 Handover Date.

4.           MISCELLANEOUS

4.1          The Contractor shall comply with its obligations under clause 19
             of this Agreement as regards reporting to ICO on the actual
             progress of the Works.

4.2          At any time, by reason of an exercise of an option by ICO or
             otherwise, the Contractor becomes obliged to provide to ICO
             pursuant to this Agreement any additional item (whether goods or
             services), then subject to any agreement between the parties to the
             contrary it shall be treated as part of the relevant Sub-System
             deliverable to the relevant Site. The applicable price for such
             item shall be treated as part of the Equipment Portion or the
             Engineering Portion, as the case may be and shall be payable in
             accordance with the provisions of this Payment Schedule.
             Accordingly, * of its price shall be payable immediately (pursuant
             to clause 2.1.1 or 3.1.1, as the case may be) and any other part of
             the price which has already become due shall also be immediately
             payable.

4.3          Payments in respect of ICONET Integration shall be payable in
             accordance with clause 14 of this Agreement.

4.4          There is attached to this Payment Schedule a Payment Schedule
             Classification, based on the Price List, to facilitate invoicing
             under this Agreement. In the event of any conflict between the
             Price List and the Payment Schedule Classification, the Price List
             shall prevail.

4.5          Clause 16.2 of this Agreement refers to appropriate supporting
             paperwork which must accompany any Cash Invoice. The parties agree
             to negotiate in good faith with a view to signing a written
             memorandum within 60 days of the date of this Agreement specifying
             what supporting paperwork will be deemed appropriate for each
             category of payment under this Payment Schedule and clause 14 of
             this Agreement.

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

                                       8
<PAGE>   198
          I. PAYMENT SCHEDULE CLASSIFICATION SUMMARY (IN THOUSAND US$)

                                        *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   199
               * [III.1 RFT PRICE LIST 2 PAGES HAS BEEN REDACTED]

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   200
                  III.1 PAYMENT SCHEDULE CLASSIFICATION - RFT
                         * [5 PAGES HAVE BEEN REDACTED]

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   201
                                        *
<PAGE>   202
                                        *
<PAGE>   203
                  III.2 PAYMENT SCHEDULE CLASSIFICATION - SBS
                      * [3 PAGES HAVE BEEN REDACTED]

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   204
                                        *
<PAGE>   205
                  III.3 PAYMENT SCHEDULE CLASSIFICATION - PCS
                          * [1 PAGE HAS BEEN REDACTED]

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   206
                 III.4 PAYMENT SCHEDULE CLASSIFICATION - SWITCH
                         * [6 PAGES HAVE BEEN REDACTED]

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   207
                                        *
<PAGE>   208
                                        *
<PAGE>   209
                  III.5 PAYMENT SCHEDULE CLASSIFICATION - TNM
                      * [3 PAGES HAVE BEEN REDACTED]

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   210
                                        *
<PAGE>   211
            III.6 PAYMENT SCHEDULE CLASSIFICATION - NMC/SRMC/SAN-OSS
                          * [2 PAGES BEEN REDACTED]

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   212
              III.7 SPECIAL TEST EQUIPMENT (STE) (IN THOUSAND US$)
                           * [3 PAGES BEEN REDACTED]

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   213
        III.8 SYSTEM INTEGRATION & PROJECT MANAGEMENT (IN THOUSAND US$)
                          * [1 PAGE HAS BEEN REDACTED]

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   214
                    III. 9 AX+B PRICE LIST (IN THOUSAND US$)
                        * [10 PAGES HAVE BEEN REDACTED]

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   215
                                        *
<PAGE>   216
                                        *
<PAGE>   217
                                        *
<PAGE>   218
                                        *
<PAGE>   219

                                    [BLANK]
<PAGE>   220
SCHEDULE 12: ACCEPTANCE CERTIFICATE
<PAGE>   221
                  SCHEDULE:    FINAL ACCEPTANCE CERTIFICATE

                                                     Date _________________ 2000

NEC Corporation
7-1, Shiba 5-Chome,
Minato-ku
Tokyo 108-01
Japan

Supply Agreement Between NEC Corporation and ICO Global Communications
(Operations) Limited (Contract Number ICOO/97-1016/GW) dated _____ March 1997

This Final Acceptance Certificate is issued to NEC Corporation (the Contractor)
by ICO Global Communications (Operations) Limited (ICO) to record ICO's
acceptance of the Contractor having satisfied, in accordance with clause 35 of
the Supply Agreement, the Level 2 Acceptance Criteria for the Deliverables
comprising the ICONET Ground Facilities which ICO is accepting. The Level 2
Handover Date for such Deliverables is _____________.

The issue of this Final Acceptance Certificate by ICO to the Contractor does not
relieve the Contractor of its obligations to rectify the faults and temporary
fixes in the Deliverables covered by this Final Acceptance Certificate including
any which are identified in the attached schedule and which are to be rectified
in accordance with the times specified therein. Further, the issue of this Final
Acceptance Certificate does not relieve or modify the obligations and
responsibilities of the Contractor under the Supply Agreement, save as expressly
set out herein.

The risk of loss and damage to the Deliverables which ICO is accepting as at
the Level 2 Handover Date shall pass from the Contractor to ICO at 00.01 GMT on
___________ 2000 and the Contractor's warranty associated with such
Deliverables to be provided in accordance with clause 40 of the Supply Agreement
shall commence at the same time.

_________________________

Supervising Officer
ICO Global Communications (Operations) Limited
<PAGE>   222
                                    [BLANK]
<PAGE>   223
SCHEDULE 13: IGFR
<PAGE>   224
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                      ICONET GROUND FACILITIES REQUIREMENTS
                                    DOCUMENT

                             COMMERCIALLY SENSITIVE
                             REPRODUCTION PROHIBITED

CONFIDENTIALITY STATEMENT

All information contained in this document is confidential and propriety to ICO
Global Communications or any other member of the ICO Global Communications Group
and intended only for the addressee to whom this copy is addressed. The
recipient shall neither copy, distribute, disclose or use the information
contained in it for any purpose other than for which this document has been made
available nor permit anyone else to do the same. The recipient shall be held
fully liable for any wrongful disclosure or use of any of the information
contained in this document by him, or his officers or employees or anyone else
to whom he makes the information available.

                      DOCUMENT NO.:     EN-IG-ICO-RQ/000014
                      VERSION:          25
                      DATE:             17-February-1997

              APPROVED                                        APPROVED
           CHIEF ENGINEER                            CHIEF ENGINEERING OFFICER
                (NEC)                                          (ICO)
             Akira Fujii                                    Keith Smith

          /s/ Akira Fujii                                 /s/ Keith Smith
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6.52.6. HPN SYNCHRONISATION PLANNING

         6.52.6.1. The IGF shall permit access on a burst-by-burst basis to the
         forward and return HPN channels from any SAN in view of the satellite.

         6.52.6.2. The IGF shall transmit HPN and BCCH at the appropriate times
         to ensure that the satellite peak power does not rise above the level
         to be used when only HPN or BCCH is to be used.

         6.52.6.3. The HPN subsystem shall pre-correct the frequency to allow
         for the Doppler components of uplink feeder link and downlink mobile
         link.

6.52.7. HPN SATELLITE CONTROL

         6.52.7.1. The PCS subsystem and HPN subsystem shall operate in a
         co-ordinated manner to ensure that real-time satellite control commands
         and HPN messages arrive at the satellite with a fixed time offset.

         6.52.7.2. The PCS shall permit switching of the HPN transponder on a
         burst-by-burst basis for the transmission of HPN information.

         6.52.7.3. The PCS shall permit switching of the HPN transponder
         channelisation (i.e. the HPN Index Tables) such that there is no loss
         of HPN transmitting capacity.

         6.52.7.4. The IGF shall ensure that knowledge of the HPN transponder
         channelisation is shared by the NMS and PCS subsystems in the
         sub-satellite network.

         6.52.7.5. The IGF shall ensure that knowledge of the frequency
         availability in each beam is shared by the NMS and the other HPN SRMS
         subsystems in the sub-satellite network.

         6.52.7.6. The IGF shall permit switching of the HPN channelisation to
         ensure that the frequencies required for operation in a region can be
         provided.

6.52.8. HPN LOCATION PHASE PLANNING

         6.52.8.1. The IGF shall transmit BCCH/HP information at the appropriate
         times and frequencies in each beam of each satellite as the satellites
         move to ensure that the UTs can achieve and maintain synchronisation.

         6.52.8.2. The SRMC shall develop location phase time plans that allows,
         for the reference ICO constellation, transmission of BCCH/HP to every
         point on the Earth at the appropriate BCCH/HP time slot nominally every
         [10] HPN frames using maximum satellite diversity.

         6.52.8.3. The SRMC shall develop location phase time plans which
         allows, for the reference constellation, transmission of BCCH/HP such
         that every point on the Earth receives a burst at least once every HPN
         frame using maximum satellite diversity.

         6.52.8.4. The IGF shall, at registration on the ICO system, assign to
         each UT the parameters for BCCH/HP operation including:
                  1. Location Phase slot associated with the UT position (SBS)
                  2. Subscription status of the UT (MSSC).

6.52.9. HPN CHANNEL MANAGEMENT

         6.52.9.1. The HPN subsystem at a SAN shall permit access on a
         burst-by-burst basis to the forward and return HPN channels from any
         SAN in view of the satellite.

         6.52.9.2. The HPN subsystem shall permit all SANs in a sub-satellite
         network access to all satellites (forward and return HPN channels) on
         the basis of demand and with fair arbitration between SANs.

         6.52.9.3. The HPN subsystem shall ensure that multiple SANs do not
         simultaneously access the forward link HPN satellite transponder.

         6.52.9.4. The HPN subsystem shall co-ordinate the use of the return
         link channel in a beam-by-beam basis by assigning appropriate return
         link frequencies, and possibly signatures, for use on the
         acknowledgement channel.

         6.52.9.5. The HPN subsystem shall implement a method of applying
         diversity to maximise message delivery success. Diversity methods shall
         be:
                  1. Satellite diversity
                  2. Time diversity (micro and macro).

         6.52.9.6. The HPN subsystem shall apply diversity methods to maximise
         the overall grade of service considering:
                  1. Traffic levels
                  2. Message delay
                  3. Statistics (temporal and spatial) on channel decorrelation

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AMENDMENT RECORD

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                               TABLE OF CONTENTS

<TABLE>
<S>                                                                                                                              <C>
1. GENERAL ...................................................................................................................    1

1.1. PURPOSE..................................................................................................................    1
1.2. ELEMENTS OF THE ICONET GROUND FACILITIES ................................................................................    1
  1.2.1. General..............................................................................................................    1
  1.2.2. SAN .................................................................................................................    1
  1.2.3. NMC and Backup NMC ..................................................................................................    2
  1.2.4. Operational Test and Development Facility (OT&DF) (F/R) .............................................................    2
  1.2.5. Miscellaneous Equipment .............................................................................................    2
  1.2.6. Buyer Furnished Equipment ...........................................................................................    3
1.3. RELATED DOCUMENTS........................................................................................................    6
  1.3.1. Incorporation by Reference...........................................................................................    6
  1.3.2. Precedence...........................................................................................................    6
  1.3.3. List of Incorporated Documents ......................................................................................    6
  1.3.4. List of Air Interface Documents......................................................................................    6
  1.3.5. List of Reference Documents..........................................................................................    6
1.4. NOTATION CONVENTIONS.....................................................................................................    7
  1.4.1. Square Brackets, TBD, and TBR........................................................................................    7
  1.4.2. Future Requirements..................................................................................................    7
  1.4.3. Options..............................................................................................................    7
2. DEFINITIONS & ACRONYMS ....................................................................................................    8

3. BASIC REQUIREMENTS.........................................................................................................   12

3.1. ICONET GROUND FACILITY DEFINITION .......................................................................................   12
3.2. SYSTEM DESCRIPTION ......................................................................................................   12
3.3. EXTERNAL INTERFACES .....................................................................................................   12
  3.3.1. General..............................................................................................................   12
  3.3.2. RF Interface.........................................................................................................   12
  3.3.3. IF Interfaces ........................................................................................................   12
  3.3.4. Terrestrial Network Interfaces.......................................................................................   12
  3.3.5. ADC Interface .......................................................................................................   13
  3.3.6. Data Communications Interface .......................................................................................   13

4. END-USER SERVICES .........................................................................................................   14

4.1. BASIC TELESERVICES ......................................................................................................   14
  4.1.1. Speech Services .....................................................................................................   14
  4.1.2. Short Message Services ..............................................................................................   14
  4.1.3. Facsimile Services ..................................................................................................   15
4.2. BASIC BEARER SERVICES ...................................................................................................   16
  4.2.1. Circuit Mode Data Services (up to 9600 bps) using GSM Standard ......................................................   16
  4.2.2. Circuit Mode Data Services (up to 38.4 kbps) using GSM Standard .....................................................   16
  4.2.3. Alternate Voice and Data Services Using Voice Codec Signalling ......................................................   16
4.3. GSM SUPPLEMENTARY SERVICES ..............................................................................................   17
  4.3.1. General..............................................................................................................   17
  4.3.2. Line Identification Services ........................................................................................   17
  4.3.3. Call Forwarding Services ............................................................................................   17
  4.3.4. Call Waiting and Call Hold Services .................................................................................   18
  4.3.5. Multi-party Services ................................................................................................   18
  4.3.6. Closed User Group Services ..........................................................................................   18
  4.3.7. Call Restriction Services ...........................................................................................   18
  4.3.8. Advice of Charge Services ...........................................................................................   18
4.4. ICO SPECIFIC SERVICES ...................................................................................................   19
  4.4.1. High Penetration Notification (HPN) Service .........................................................................   19
  4.4.2. ICO Dual-numbering (OPTION) .........................................................................................   20
</TABLE>

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<TABLE>
<S>                                                                                                                             <C>
  4.4.3. Natural Language Support ............................................................................................   20
4.5. MAIL AND MESSAGING SERVICES (OPTION) ....................................................................................   20
  4.5.1. Generic Messaging Platform Requirements..............................................................................   20
  4.5.2. Voice Mailbox........................................................................................................   21
  4.5.3. Fax Mailbox (F/R) ...................................................................................................   21
  4.5.4. Email (F/R) .........................................................................................................   21
  4.5.5. SMS .................................................................................................................   21
  4.5.6. Mailbox Access and Retrieval ........................................................................................   22
  4.5.7. Mailbox Notification ................................................................................................   23
  4.5.8. Access to External Systems ..........................................................................................   23
4.6. ADVANCED SERVICES (F/R) .................................................................................................   23
  4.6.1. General IN Platform Requirements ....................................................................................   23
  4.6.2. IN Services .........................................................................................................   26
4.7. SUBSCRIPTION TO ICO SERVICES ............................................................................................   28
  4.7.1. General .............................................................................................................   28
  4.7.2. Subscription Profiles in the HLR/VLR ................................................................................   28
  4.7.3. Subscriber Profiles in the IN Platform (F/R) ........................................................................   29
  4.7.4. Subscriber Profiles in the Messaging Platform (OPTION)...............................................................   29
4.8. CELLULAR/SATELLITE ROAMING...............................................................................................   29
  4.8.1. General .............................................................................................................   29
  4.8.2. Roaming with IS.41 Based Networks (OPTION) ..........................................................................   29
  4.8.3. Roaming with PDC Networks (OPTION) ..................................................................................   29
  4.8.4. Roaming with GSM Based Networks .....................................................................................   30
  4.8.5. Generic Roaming Functions (OPTION, except for GSM roaming) ..........................................................   30
  4.8.6. Protocol Support.....................................................................................................   32
  4.8.7. Provisioning Functions (OPTION)......................................................................................   32
  4.8.8. Network Management Functions (OPTION)................................................................................   32
  4.8.9. Availability of Products and Services to Roaming Subscribers.........................................................   33
4.9 OTHER VALUE-ADDED SERVICES................................................................................................   35
4.10. SPECIALISED TERMINALS ..................................................................................................   35
  4.10.1. Multichannel Terminals (F/R) .......................................................................................   35
  4.10.2. Semi-fixed Terminals................................................................................................   35

5. ADMINISTRATION AND SUPPORT SERVICES .......................................................................................   36

5.1. BILLING SERVICES ........................................................................................................   36
  5.1.1. Call Detail Recording in the MSSC....................................................................................   36
5.2. PROVISIONING SERVICES....................................................................................................   38
  5.2.1. Subscriber Administration in the HLR.................................................................................   38
  5.2.2. Subscriber Administration in the Cellular/Satellite Interworking Function (CS-IWF) (OPTION) .........................   38
  5.2.3. Subscriber Administration in the Messaging Platform (OPTION) ........................................................   38
  5.2.4. Subscriber Administration in the Service Control Point (SCP) (F/R) ..................................................   39
  5.2.5. Administration of Secret Keys in the Authentication Centre (AuC) ....................................................   39
  5.2.6. Administration of Secret Keys in the Cellular/Satellite Interworking Function (CS-IWF) (OPTION)......................   39
5.3. MOBILE EQUIPMENT MONITORING .............................................................................................   39
5.4. CUSTOMER CARE AND OPERATOR SUPPORT ......................................................................................   40
  5.4.1. General..............................................................................................................   40
  5.4.2. Operator Determined Barring (ODB) ...................................................................................   40
  5.4.3. Operator Controlled Diversion .......................................................................................   40
  5.4.4. Subscriber Specific Announcements ...................................................................................   40
  5.4.5. Subscriber Tracing ..................................................................................................   40
5.5. FRAUD MANAGEMENT SERVICES................................................................................................   40

6. GENERIC SYSTEM FUNCTIONS ..................................................................................................   42

6.1. NUMBERING, ADDRESSING AND IDENTIFICATION ................................................................................   42
  6.1.1. International Mobile Subscriber Identification ......................................................................   42
  6.1.2. Mobile Station International ISDN Numbers ...........................................................................   42
  6.1.3. Mobile Station Roaming Numbers ......................................................................................   42
  6.1.4. International Mobile Equipment Identity .............................................................................   42
</TABLE>

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<TABLE>
<S>                                                                                                                              <C>
6.2. RADIO CONNECTIVITY BETWEEN USER TERMINALS, SATELLITES AND SANS ..........................................................   43
6.3. PSTN/ISDN/PLMN INTERCONNECTION ..........................................................................................   43
6.4. SECTION NOT USED ........................................................................................................   44
6.5. DCN SUBSYSTEM ...........................................................................................................   44
  6.5.1. Network Management DCN ..............................................................................................   44
  6.5.2. Voice Service Network (F/R) .........................................................................................   44
6.6. REGISTRATION AND IMSI ATTACH/DETACH .....................................................................................   46
  6.6.1. Basic Capabilities for Registration .................................................................................   46
  6.6.2. Registration Procedures .............................................................................................   46
  6.6.3. Registration Cases ..................................................................................................   46
  6.6.4. Denial of Registration ..............................................................................................   47
6.7. CALL ROUTING.............................................................................................................   47
  6.7.1. MSSC Call Routing ...................................................................................................   47
  6.7.2. TNM Routing .........................................................................................................   47
6.8. MP PAGING ...............................................................................................................   48
6.9. SECTION NOT USED ........................................................................................................   48
6.10. SECTION NOT USED .......................................................................................................   48
6.11. DIVERSITY SATELLITE PATH ALLOCATIONS AND USAGE .........................................................................   48
  6.11.1. Diversity Capacity .................................................................................................   48
  6.11.2. Diversity Path Allocation and De-allocation ........................................................................   48
  6.11.3. Transmission and Reception Over Diversity Path .....................................................................   49
6.12. HANDOVERS ..............................................................................................................   49
6.13. SUBSCRIBER IDENTITY AUTHENTICATION .....................................................................................   50
6.14. ENCRYPTION .............................................................................................................   50
6.15. IMEI CHECKING ..........................................................................................................   50
6.16. CAUSES, TONES AND ANNOUNCEMENTS ........................................................................................   50
6.17. ECHO CANCELLATION ......................................................................................................   51
6.18. TERRESTRIAL MODEM POOLS ................................................................................................   51
6.19. UT POSITION INFORMATION ................................................................................................   51
  6.19.1. Position Information Determination .................................................................................   51
  6.19.2. Conversion of Frequency and Time Measurement to Position ...........................................................   52
  6.19.3. Usage of UT Position Information ...................................................................................   52
  6.19.4. Mapping of UT Position to Service Area .............................................................................   52
  6.19.5. Handling of UT-supplied Position Information .......................................................................   52
6.20. LEGAL INTERCEPTION......................................................................................................   52
6.21. FORCED CALL ROUTING (F/R) ..............................................................................................   53
6.22. PURGING OF LOCATION REGISTERS ..........................................................................................   53
6.23. ICO SPACE SEGMENT AND SANS .............................................................................................   53
6.24. SECTION NOT USED .......................................................................................................   54
6.25. RADIO SYNCHRONISATION ..................................................................................................   54
   6.25.1. Time Synchronisation...............................................................................................   54
   6.25.2. Frequency Synchronisation .........................................................................................   56
   6.25.3. Terrestrial Network Synchronisation ...............................................................................   59
6.26. AIR INTERFACE ELEMENTARY AND STRUCTURED PROCEDURES .....................................................................   59
   6.26.1. Air Interface Elementary Procedures ...............................................................................   59
   6.26.2. Structured Procedures .............................................................................................   61
6.27. UT/SUBSCRIBER ACCESS MANAGEMENT AND CONTROL ............................................................................   62
6.28. ACCESS CLASS HANDLING ..................................................................................................   62
   6.28.1. General ...........................................................................................................   62
   6.28.2. Barring of Access Classes .........................................................................................   62
   6.28.3. Unbarring of Access Classes .......................................................................................   62
6.29. SUBSCRIBER CLASS HANDLING (F/R) ........................................................................................   62
6.30. CLASSMARK HANDLING .....................................................................................................   63
6.31. CHANNEL MODE MODIFY ....................................................................................................   63
   6.31.1. Channel Mode Modify in the SBS and TNM ............................................................................   63
   6.31.2. Channel Mode Modify in the MSSC ...................................................................................   63
6.32. IN-CALL MODIFICATION ...................................................................................................   63
6.33. SUPPORT FOR DTMF .......................................................................................................   64
</TABLE>

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<TABLE>
<S>                                                                                                                              <C>
6.34. RELEASE OF RESOURCES ...................................................................................................   64
  6.34.1. General ............................................................................................................   64
  6.34.2. Release of Equipment, Satellite Spectrum and Satellite Power Resources .............................................   64
  6.34.3. Release of Resources External to IGF ...............................................................................   64
6.35. QUEUING ................................................................................................................   64
6.36. CONGESTION AND OVERLOAD ................................................................................................   65
6.37. C7 SIGNALLING LINK MONITORING...........................................................................................   65
6.38. VOICE CODING ...........................................................................................................   65
6.39. DTX ....................................................................................................................   65
6.40. SYSTEM INFORMATION BROADCASTING ........................................................................................   66
6.41. RADIO ACCESS MANAGEMENT ................................................................................................   66
  6.41.1. Paging Channel (PCH) ...............................................................................................   66
  6.41.2. Access Grant Channel (AGCH) ........................................................................................   66
  6.41.3. Random Access Channel (RACH) .......................................................................................   66
  6.41.4. Fast and Slow Associated Control Channels (FACCH and SACCH) ........................................................   67
6.42. RADIO SESSION MANAGEMENT ...............................................................................................   67
  6.42.1. Session Initiation Requirements ....................................................................................   67
6.43. LINK MONITORING ........................................................................................................   69
  6.43.1. Dedicated Channels .................................................................................................   69
  6.43.2. BCCH................................................................................................................   69
  6.43.3. RACH........................................ .......................................................................   69
6.44. SECTION NOT USED........................................................................................................   70
6.45. SECTION NOT USED .......................................................................................................   70
6.46. SECTION NOT USED .......................................................................................................   70
6.47. POWER CONTROL ..........................................................................................................   70
  6.47.1. SAN Automatic Power Control ........................................................................................   70
  6.47.2. SAN EIRP Control for TCH and DCCH ..................................................................................   70
  6.47.3. SAN EIRP Control for Forward Control Channels ......................................................................   71
  6.47.4. UT EIRP Control for TCH and DCCH ...................................................................................   71
  6.47.5. RACH................................................................................................................   71
  6.47.6. ACK/HP..............................................................................................................   72
6.48. SAN COVERAGE AND MANAGEMENT.............................................................................................   72
  6.48.1. SAN Coverage Access ................................................................................................   72
  6.48.2. Coverage Planning ..................................................................................................   72
6.49. SATELLITE EIRP MANAGEMENT ..............................................................................................   73
  6.49.1. Satellite RF Power Management Parameters ...........................................................................   73
  6.49.2. Satellite Transponder Gain Value Entry and Usage ...................................................................   74
  6.49.3. Rules for Generation of Satellite Power Management Parameters ......................................................   75
  6.49.4. Determination of SBS and HPN and SAN-OSS Control Parameters ........................................................   75
  6.49.5. Satellite EIRP Monitoring ..........................................................................................   76
  6.49.6. Satellite RF Power Overload Management .............................................................................   76
6.50. SPECTRUM MANAGEMENT.....................................................................................................   76
  6.50.1. Functional Requirements for the Generation and Distribution of SRMC Data ...........................................   76
  6.50.2. Performance Requirements............................................................................................   77
  6.50.3. Spectrum Management Reference Traffic Distribution .................................................................   84
6.51. INTERFERENCE MANAGEMENT ................................................................................................   84
6.52. HPN REQUIREMENTS .......................................................................................................   85
  6.52.1. HPN General Requirements ...........................................................................................   85
  6.52.2. Basic Capabilities for HPN .........................................................................................   85
  6.52.3. HPN Message Transmission and Reception .............................................................................   86
  6.52.4. Section Not Used ...................................................................................................   86
  6.52.5. HPN Frequency Planning .............................................................................................   86
  6.52.6. HPN Synchronisation Planning .......................................................................................   87
  6.52.7. HPN Satellite Control ..............................................................................................   87
  6.52.8. HPN Location Phase Planning ........................................................................................   87
  6.52.9. HPN Channel Management .............................................................................................   87
  6.52.10. HPN Subsystem Synchronisation .....................................................................................   88
6.53 SAN AIR INTERFACE REQUIREMENTS ..........................................................................................   88
</TABLE>

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<TABLE>
<S>                                                                                                                             <C>
  6.53.1. C-band Transmit Requirements .......................................................................................   88
  6.53.2. C-band Receive Requirements ........................................................................................   91
  6.53.3. S-band TX Performance Requirements .................................................................................   93
6.54. SECTION NOT USED .......................................................................................................   94
6.55. TRAFFIC PLANNING .......................................................................................................   94
6.56. CHANNEL UNIT FAILURE HANDLING ..........................................................................................   96
  6.56.1. Traffic Channel Unit Failures ......................................................................................   96
  6.56.2. Control Channel Unit Failures ......................................................................................   97
6.57. RFT FUNCTIONAL REQUIREMENTS.............................................................................................   97
  6.57.1. General Requirements ...............................................................................................   97
  6.57.2. Antenna Requirements ...............................................................................................   98
  6.57.3. C-band TX/RX Functional Requirements ...............................................................................   99
  6.57.4. S-band TX/RX Functional Requirements ...............................................................................  100
  6.57.5. Doppler Measurements and Compensation Functional Requirements ......................................................  100
  6.57.6. Automatic Power Control (APC) ......................................................................................  101
  6.57.7. Axial Ratio Compensation Functions (F/R) ...........................................................................  101
  6.57.8. RFT Monitoring and Control .........................................................................................  101
  6.57.9. TT&C Support Functions  ............................................................................................  101
  6.57.10. PCS/HPN Support Functions .........................................................................................  102
  6.57.11. Test Loop Translator ..............................................................................................  103
6.58. RFT PERFORMANCE REQUIREMENTS............................................................................................  103
  6.58.1. Antenna Requirements................................................................................................  103
  6.58.2. C-band Performance Requirements ....................................................................................  106
  6.58.3. S-band Performance Requirements ....................................................................................  108
  6.58.4. Doppler Measurement and Compensation Performance Requirements ......................................................  109
  6.58.5. Automatic Power Control (APC) ......................................................................................  110
  6.58.6. RFT Shelter ........................................................................................................  110
  6.58.7. RFT Downlink Requirements for TT&C .................................................................................  110
  6.58.8. RFT Uplink Requirements for TT&C ...................................................................................  111
6.59. PCS REQUIREMENTS .......................................................................................................  112
  6.59.1. General PCS Requirements ...........................................................................................  112
  6.59.2. Section Not Used....................................................................................................  112
  6.59.3. PCS Subsystem Control Functions ....................................................................................  112
  6.59.4. Satellite Access....................................................................................................  112
  6.59.5. Payload and Ground System Synchronisation ..........................................................................  112
  6.59.6. Payload SRMS Telemetry Processing, Filtering and Archiving .........................................................  112
  6.59.7. Section Not Used....................................................................................................  113
  6.59.8. Payload Status .....................................................................................................  113
  6.59.9. Payload Configuration ..............................................................................................  113

7. NETWORK MANAGEMENT SYSTEM .................................................................................................  115

7.1. GENERAL REQUIREMENTS.....................................................................................................  115
  7.1.1. Requirements for New Elements........................................................................................  115
  7.1.2. Network Management ..................................................................................................  115
  7.1.3. Data Archiving ......................................................................................................  117
  7.1.4. Application Programming Interface ...................................................................................  117
  7.1.5. Report Mechanisms ...................................................................................................  117
  7.1.6. Software Upgrades ...................................................................................................  118
  7.1.7. Network Management Centre and SAN-OSS ...............................................................................  118
  7.1.8. Man Machine Interface Requirements ..................................................................................  119
  7.1.9. Backup and Restoration ..............................................................................................  121
  7.1.10. Reliability and Availability . .....................................................................................  121
  7.1.11. Performance.........................................................................................................  121
  7.1.12. Sizing..............................................................................................................  123
  7.1.13. Expandability ......................................................................................................  123
  7.1.14. Operational Testing Capabilities ...................................................................................  123
  7.1.15. NMC and Back-Up NMC Platform  ......................................................................................  123
7.2. CONFIGURATION MANAGEMENT ................................................................................................  123
</TABLE>

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<TABLE>
<S>                                                                                                                             <C>
  7.2.1. Requirements for New Elements........................................................................................  123
  7.2.2. General..............................................................................................................  123
7.3. FAULT MANAGEMENT ........................................................................................................  125
  7.3.1. Requirements for New Elements........................................................................................  125
  7.3.2. General..............................................................................................................  125
  7.3.3. Alarm Analysis ......................................................................................................  126
  7.3.4. Trouble Ticket Management ...........................................................................................  126
7.4. PERFORMANCE MANAGEMENT ..................................................................................................  127
  7.4.1. Requirements for New Elements .......................................................................................  127
  7.4.2. General..............................................................................................................  127
  7.4.3. Network Traffic Management ..........................................................................................  127
7.5. SECURITY MANAGEMENT .....................................................................................................  127
 7.5.1. Requirements for New Elements ........................................................................................  127
 7.5.2. General ..............................................................................................................  127
7.6. ACCOUNTING MANAGEMENT ...................................................................................................  128
7.7. SECTION NOT USED ........................................................................................................  128
7.8. OPERATIONS AND MAINTENANCE INTERFACE REQUIREMENTS .......................................................................  128
  7.8.1. General .............................................................................................................  128
  7.8.2. Satellite Resource Management Centre.................................................................................  129
  7.8.3. Satellite Control Centre.............................................................................................  130
  7.8.4. NODE Operations System...............................................................................................  131
  7.8.5. Satellite Access Node ...............................................................................................  144
  7.8.6. High Power Notification .............................................................................................  145
  7.8.7. Payload Command System ..............................................................................................  147
  7.8.8. Radio Frequency Terminal.............................................................................................  149
  7.8.9. Satellite Base Station ..............................................................................................  154
  7.8.10. Terrestrial Network Manager ........................................................................................  156
  7.8.11. Digital Communication Network ......................................................................................  158
  7.8.12. ICONET Synchronisation System ......................................................................................  159
  7.8.13. C-C Subsystem.......................................................................................................  160
  7.8.14. ICO Administrative Data Centre .....................................................................................  160

8. PERFORMANCE REQUIREMENTS ..................................................................................................  161

8.1. CONDITIONS FOR PERFORMANCE REQUIREMENTS .................................................................................  161
8.2. BASIC QUALITY OF SERVICE ................................................................................................  161
  8.2.1. IGF Voice Loop Delay ................................................................................................  161
  8.2.2. Speech Quality in MOS ...............................................................................................  161
  8.2.3. Probability of Call Loss ............................................................................................  161
  8.2.4. Handover Performance ................................................................................................  161
  8.2.5. Handover Performance ................................................................................................  161
8.3. SMS QUALITY OF SERVICE...................................................................................................  162
  8.3.1. Delivery Time........................................................................................................  162
  8.3.2. Probability of SMS Non-delivery on Each Delivery Attempt ............................................................  162
8.4. AUTOMATIC FACSIMILE GROUP 3 (UP TO 9600BPS) QUALITY OF SERVICE...........................................................  162
  8.4.1. Transparent Mode ....................................................................................................  162
8.5. CIRCUIT MODE DATA (UP TO 9600BPS) QUALITY OF SERVICE ....................................................................  162
  8.5.1. Transparent Mode ....................................................................................................  162
  8.5.2. Non-Transparent Mode.................................................................................................  162
8.6. CIRCUIT MODE DATA (GREATER THAN 9600BPS) QUALITY OF SERVICE (TBD)........................................................  162
8.7. HPN QUALITY OF SERVICE ..................................................................................................  162
  8.7.1. HPN Idle Mode .......................................................................................................  162
  8.7.2. HPN Message Delay ...................................................................................................  162
  8.7.3. HPN Capacity ........................................................................................................  162
  8.7.4. HPN Transmitter and Receiver Characteristics ........................................................................  163
8.8. GSM SUPPLEMENTARY SERVICES QUALITY OF SERVICE ...........................................................................  163
  8.8.1. Time to Invoke or Change a Supplementary Service ....................................................................  163
8.9. SECTION NOT USED ........................................................................................................  163
8.10. SBS PERFORMANCE.........................................................................................................  163
</TABLE>

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<TABLE>
<S>                                                                                                                             <C>
  8.10.1. Channel Assignment Delay (RACH to AGCH) ............................................................................  163
  8.10.2. Paging Delay .......................................................................................................  163
  8.10.3. Position Determination Delay .......................................................................................  163
  8.10.4. Section Not Used ...................................................................................................  164
  8.10.5. Signalling Transit Time ............................................................................................  164
  8.10.6. Voice Traffic Transit Time .........................................................................................  164
  8.10.7. Non-Voice Traffic Transit Time .....................................................................................  164
  8.10.8. Layer 2 Acknowledgement Delay ......................................................................................  164
8.11. AVAILABILITY ...........................................................................................................  164
  8.11.1. Definitions.........................................................................................................  164
  8.11.2. Requirements........................................................................................................  165
  8.11.3. Environments........................................................................................................  167
8.12. TNM PERFORMANCE REQUIREMENTS............................................................................................  168
  8.12.1. TNM Transit Time....................................................................................................  168
8.13. MSSC....................................................................................................................  169
  8.13.1. Mobile Switching Response Time......................................................................................  169
  8.13.2. Transit Switching ..................................................................................................  170
  8.13.3. D-IWF...............................................................................................................  170
  8.13.4. GMSC................................................................................................................  170
  8.13.5. IN-SSP..............................................................................................................  170
  8.13.6. MSSC Voice Transit time ............................................................................................  170

9. CAPACITY REQUIREMENTS .....................................................................................................  171

9.1. DIMENSIONING DRIVERS ....................................................................................................  171
9.2. IGF ELEMENT SPECIFIC DETAILS ............................................................................................  171
9.3. SIZING REQUIREMENTS .....................................................................................................  178
  9.3.1. Network Management System ...........................................................................................  178
  9.3.2. Switching Equipment .................................................................................................  178
  9.3.3. HPN Equipment .......................................................................................................  179
  9.3.4. SBS Equipment .......................................................................................................  180
  9.3.5. TNM and DCN Equipment ...............................................................................................  181
9.4. NETWORK INTERFACE .......................................................................................................  185

10. SECTION NOT USED .........................................................................................................  186

11. REFERENCE CONFIGURATION FOR PERFORMANCE MEASUREMENT ......................................................................  187

12. OTHER CONTRACT SERVICES ..................................................................................................  191
12.1. OPERATIONAL TEST & DEVELOPMENT FACILITY (OT&DF) (F/R) ..................................................................  191
  12.1.1. General ............................................................................................................  191
  12.1.2. SAN Network Management .............................................................................................  192
  12.1.3. MSSC/VLR and HLR/AuC ...............................................................................................  192
</TABLE>

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1. GENERAL

1.1. PURPOSE

         1.1.1. The object of this document is to provide testable and complete
         ICONET Ground Facilities Functional Requirements.

         1.1.2. It is developed from Annexes 1 to 4 of the IPC SOW but is
         different because those Annexes describe requirements for Design of the
         ICO System, rather than directly for the ICONET Ground Facilities.

1.2. ELEMENTS OF THE ICONET GROUND FACILITIES

1.2.1. GENERAL

         1.2.1.1. It is an overall requirement that the end to end performance
         and functionality represented by the aggregation of the currently
         specified component elements shall be maintained in the event that
         there is a future need to redistribute or re-allocate functions.

         1.2.1.2. For full details of equipment, refer to the Equipment List in
         Annex 1 of the SOW.

         1.2.1.3. Figure 1-1 shows the elements of a SAN.

         1.2.1.4. Figure 1-2 shows the NMS and the SRMS subsystems.

1.2.2. SAN

1.2.2.1. MSSC SUBSYSTEM

         1.2.2.1.1. Switch providing MSSC, VLR, GMSC, SMS-GMSC, SMS-IWMSC,
         IN-SSF functions

         1.2.2.1.2. D-IWF (for fax and data)

         1.2.2.1.3. Echo cancellers

         1.2.2.1.4. Recorded Voice Announcements

         1.2.2.1.5. MSSC MMI (TMOS)

1.2.2.2. LES SUBSYSTEM

1.2.2.2.1. TNM SUBSYSTEM

         1.2.2.2.1.1. Voice codec, Multiplexer

         1.2.2.2.1.2. Remote Processor, Network (RPN)

         1.2.2.2.1.3. Remote Processor, Central (RPC)

         1.2.2.2.1.4. TNM OAM and MMI

1.2.2.2.2. SBS SUBSYSTEM

         1.2.2.2.2.1. Channel Manager

         1.2.2.2.2.2. Channel Unit

         1.2.2.2.2.3. Real Time Resource Manager

         1.2.2.2.2.4. SBS OMC and MMI

1.2.2.2.3. HPN SUBSYSTEM

         1.2.2.2.3.1. HPN-SC

         1.2.2.2.3.2. HPN Channel Manager

         1.2.2.2.3.3. HPN Channel Unit

         1.2.2.2.3.4. HPN Local SRMS

         1.2.2.2.3.5. HPN OMC and MMI (no physical console is supplied with the
         HPN subsystem; MMI remoted from SAN-OSS MMI console)

1.2.2.2.4. PCS SUBSYSTEM

         1.2.2.2.4.1. PCS Controller

         1.2.2.2.4.2. PCS Channel Units

         1.2.2.2.4.3. PCS OMC and MMI

1.2.2.2.5. RFT SUBSYSTEM

         1.2.2.2.5.1. Antennas

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         1.2.2.2.5.2. RFT Outside equipment

         1.2.2.2.5.3. RFT Shelter equipment

         1.2.2.2.5.4. RFT OMC & MMI

         1.2.2.2.5.5. RFT IF to antenna distribution/cabling

1.2.2.2.6. REFERENCE CLOCK AND SYSTEM TIMING SUBSYSTEM

         1.2.2.2.6.1. GPS receiver

         1.2.2.2.6.2. RFT, SBS, HPN and PCS clock distribution

1.2.2.2.7. ON-SITE INTERCONNECTION SUBSYSTEM

         1.2.2.2.7.1. Distribution Frame (Intermediate)

1.2.2.2.8. IF DISTRIBUTION SUBSYSTEM

1.2.2.3. SAN MANAGEMENT SUBSYSTEM

         1.2.2.3.1. SAN OSS Supervisory Subsystem

         1.2.2.3.2. SAN SRMS

1.2.2.4. DCN SUBSYSTEM

         1.2.2.4.1. Inter-SAN Switch/Routers

         1.2.2.4.2. Intra-SAN Routers and Hubs

         1.2.2.4.3. E1 adapter (Mux and Encryption)

1.2.3. NMC AND BACKUP NMC

1.2.3.1. NETWORK AND SATELLITE RESOURCE MANAGEMENT

         1.2.3.1.1. NMC platform and MMI

         1.2.3.1.2. SRMC platform and MMI

         1.2.3.1.3. TMOS platform and MMI

1.2.3.2. DCN SUBSYSTEM

         1.2.3.2.1. NMS-to-SAN Switch/Routers

         1.2.3.2.2. Intra-NMS Routers and Hubs

         1.2.3.2.3. E1 adapter (Mux and Encryption)

1.2.4. OPERATIONAL TEST AND DEVELOPMENT FACILITY (OT&DF) (F/R)

1.2.5. MISCELLANEOUS EQUIPMENT

1.2.5.1. GENERAL

         1.2.5.1.1. These may be located at any SAN

1.2.5.2. HLR/AuC

1.2.5.3. CELLULAR/SATELLITE INTERWORKING FUNCTIONS (CS-IWFS) (OPTION)

1.2.5.3.1. IS.41 ILR

         1.2.5.3.1.1. IS.41 -Greater Than ICO ILR

         1.2.5.3.1.2. ICO -Greater Than IS.41 ILR

1.2.5.3.2. PDC ILR

         1.2.5.3.2.1. PDC -Greater Than ICO ILR

         1.2.5.3.2.2. PDC/ICO IMSC

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1.2.5.4. EIR

1.2.5.5. IN PLATFORM (F/R)

         1.2.5.5.1. IN-SCP

         1.2.5.5.2. IN-SMAS

1.2.5.6. MESSAGING PLATFORM (OPTION)

         1.2.5.6.1. MXE including:

                 1. short message service centre (SMSC)

                 2. voice mail

                 3. fax mail (F/R)

                 4. email (F/R)

1.2.6. BUYER FURNISHED EQUIPMENT

         1.2.6.1. External transmission facilities

         1.2.6.2. Local standard Main Distribution Frame for termination of
         external transmission equipment

         1.2.6.3. AC power supplies (to local standard for frequency and voltage
         of required reliability

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                                 [SAN GRAPHIC]

                            FIGURE 1-1 SAN SUBSYSTEMS

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                       [NMS AND SRMS SUBSYSTEMS GRAPHIC]

                       FIGURE 1-2 NMS AND SRMS SUBSYSTEMS

Note: In Section 6, NMC is sometimes used to represent LINK-OS/NODE-OS in this
diagram. The figure is for information purposes only and is intended to clarify
the distinction between the NMS and the SRMS functionality. It should be noted
that further elements into the NMS are likely to be implemented at a later date
(e.g. SMAS, MXE, etc.).

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1.3. RELATED DOCUMENTS

1.3.1. INCORPORATION BY REFERENCE

         1.3.1.1. In this document, references to other documents incorporate
         only as much of the referred document as is necessary to implement the
         required specification in this document.

1.3.2. PRECEDENCE

         1.3.2.1. Only references to specific clauses in other documents shall
         take on the precedence of this document. All general references to
         other documents shall retain the precedence of that document.

1.3.3. LIST OF INCORPORATED DOCUMENTS

         1.3.3.1. The following documents are incorporated into the contract.
         The capabilities that they define are required deliverables except
         where they conflict or are inconsistent with the requirements in the
         IGF Requirements document.

         1.3.3.2. IPC Deliverable Control Document WG360497

1.3.4. LIST OF AIR INTERFACE DOCUMENTS.

         1.3.4.1. The following documents are incorporated into the contract to
         the extent necessary to support the requirements specifically
         identified in the IGF Requirements document.

         1.3.4.2. ICO Air Interface documents (all version 3.0)

                  03.22.Al  Functions Related to Mobile Stations (MS) in Idle
                            Mode

                  103.40.Al Technical Realisation of the High Penetration
                            Notification Service (HPN)

                  04.06.Al  Mobile Station - Base Station System (MS - BSS)
                            Interface Data Link (DL) Specification

                  04.07.Dl  Mobile Radio Interface Signalling Layer 3- General
                            Aspects

                  04.08.Al  Mobile Radio Interface Layer 3, RR Procedures &
                            Messages

                  04.08.A2  Mobile Radio Interface Layer 3, MM Procedures &
                            Messages

                  04.08.A3  Mobile Radio Interface Layer 3, CC Procedures &
                            Messages

                  04.08.A4  Mobile Radio Interface Layer 3, Information Elements
                            Specification

                  104.08.Al Mobile Radio Interface Layer 3 HPN RR Procedures &
                            Messages

                  05.01.Al  Physical Layer on the Radio Path (General
                            Description)

                  05.02.Al  Multiplexing and Multiple Access on the Radio Path

                  05.03.Al  Channel Coding

                  05.04.Al  Modulation

                  05.05.Al  Radio Transmission and Reception

                  05.08.Al  Radio Subsystem Link Control

                  05.10.Al  Radio Subsystem Synchronisation

1.3.5. LIST OF REFERENCE DOCUMENTS.

         1.3.5.1. The following documents are incorporated into the contract to
         the extent necessary to support the requirements specifically
         identified in the IGF Requirements document.

         1.3.5.2. All documents identified by document WG7-GA-60025-C7 (being
         the control document prepared by the NEC-ICO Project Team Office
         listing the IPC deliverable documents).

         1.3.5.3. All GSM Technical Specification documents referenced in the
         body of the IGF Requirements document or in the Incorporated Documents
         or in the Reference Documents. The latest approved version at the
         Effective Date of Contract shall be used.

         1.3.5.4. IPC Deliverable Control Document WG360497.

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         1.3.5.5. All references to GSM specifications are subject to the ETL
         statements of compliance listed in document WG360497.

1.4. NOTATION CONVENTIONS

1.4.1. SQUARE BRACKETS, TBD, AND TBR

         1.4.1.1. Square brackets [ ], TBD, and TBR are used to identify
         requirements which are to be resolved during the course of the supply
         agreement. The value or wording inside the brackets or associated with
         the TBD or TBR provides an indication of the expected outcome.

1.4.2. FUTURE REQUIREMENTS

         1.4.2.1. The requirements marked by '(F/R)' in this document shall be
         considered as the future requirements which will not be implemented
         during the course of the current Supply Agreement. Descriptions for
         such requirements shall not be considered as final and shall be
         revisited before the contract amendments (or separate contracts) to
         implement them are agreed upon.

1.4.3. OPTIONS

         1.4.3.1. The requirements marked by '(OPTION)'in this document are
         separately deliverable at ICO's option provided that the option is
         exercised within the time period specified in the SOW Annex 1.

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2. DEFINITIONS & ACRONYMS

<TABLE>
<S>                                         <C>
          2.1. ADC                          Administration and Data Centre
          2.2. AFC                          Automatic Frequency Control
          2.3. AGCH                         Access Grant Channel
          2.4. Air Interface                A set of documents defining protocols, messages and
                                            information exchanged between UTs and the IGF, as
                                            referred to in Section 1.3.4.
          2.5. ANSI                         American National Standards Institute
          2.6. API                          Application Programming Interface
          2.7. APC                          Automatic Power Control
          2.8. AuC                          Authentication Centre
          2.9. AWGN                         Additive Gaussian White Noise
          2.10. BCCH                        Broadcast Control Channel
          2.11. B-NMC                       Backup NMC
          2.12. BPF                         Bandpass Filter
          2.13. BSSMAP                      Base Station Subsystem Management Part
          2.14. BTFP                        Burst Time-Frequency Plan
          2.15. C/N                         Carrier to Noise ratio
          2.16. CAMEL                       Customised Applications for Mobile Network Enhanced Logic
          2.17. CCB                         Change Control Board
          2.18. CCCH                        Common Control Channel
          2.19. CDR                         Call Data Record
          2.20. CDR                         Critical Design Review
          2.21. CFM                         Common Function Modules
          2.22. ChM                         Channel Manager
          2.23. ChU                         Channel Unit
          2.24. CLI                         Calling Line Identification
          2.25. CM                          Connection Management
          2.26. CRC                         Cyclic Redundancy Code
          2.27. CS-IWF                      Cellular/Satellite Interworking Function
          2.28. DCCH                        Dedicated Control Channel
          2.29. DCN                         Data Communications Network
          2.30. D-IWF                       Data Interworking Function
          2.31. DTIF                        Digital TuKa Interface
          2.32. DTMF                        Dual Tone Multi-Frequency
          2.33. ECM                         Error Correcting Mode
          2.34. EIM                         External Interference Management
          2.35. EIR                         Equipment Identity Register
          2.36. EIRP                        Effective Isotropic Radiated Power
          2.37. EMC                         Electro-Magnetic Compatibility
          2.38. ESN                         Electronic Serial Number
          2.39. ETSI                        European Telecommunications Standards Institute
          2.40. F/R                         Future Requirement
          2.41. FACCH                       Fast Associated Control Channel
          2.42. FCR                         Frequency Co-ordination Regions
          2.43. FEC                         Forward Error Correction
          2.44. FOV                         Field of View
          2.45. GC                          Ground Cell
          2.46. GLR                         Gateway Location Register
          2.47. GMSC                        Gateway MSC
          2.48. GMSSC                       Gateway MSSC
          2.49. GoS                         Grade of Service
          2.50. GPS                         Global Positioning System
          2.51. GSM                         Global System for Mobile Communications
          2.52. GTT                         Global Title Translation
          2.53. GW                          Gateway
          2.54. HDLC                        High-Level Data Link Control
          2.55. HLR                         Home Location Register
</TABLE>

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<TABLE>
<S>                                         <C>
         2.56. HPA                          High Power Amplifier
         2.57. HPN                          High Penetration Notification
         2.58. HPN-                         SC      HPN Service Centre
         2.59. HSCSD                        High Speed Circuit Switched Data
         2.60. ICD                          Interface Control Document
         2.61. ICONET                       All ground facilities including all interconnecting
                                            terrestrial links.
         2.62. ICO System                   The complete ICO system consisting of UTs, satellites,
                                            ICONET
         2.63. IGF                          ICONET Ground Facilities, which comprises all ground
                                            facilities forming part of the ICONET, but excluding
                                            terrestrial interconnecting links. The IGF is more
                                            particularly defined in Section 3.
         2.64. ILR                          Interworking Location Register
         2.65. IMEI                         International Mobile Equipment Identity
         2.66. IMSI                         International Mobile Subscriber Identity
         2.67. IN                           Intelligent Network
         2.68. INAP                         Intelligent Network Application Part
         2.69. IOT                          In Orbit Test
         2.70. IP                           Intelligent Peripheral
         2.71. IPC                          Initial phase contract, which is a contract to produce
                                            the requirements for the ICONET ground facilities and
                                            related work.
         2.72. IS.41                        Interim Standard 41 (Electronics Industry
                                            Association/Telecommunications Industry Association
                                            standard)
         2.73. ISDN                         Integrated Services Digital Network
         2.74. ISUP                         ISDN User Part
         2.75. ITU-R                        International Telecommunication Union -
                                            Radiocommunication Standardisation Bureau
         2.76. ITU-T                        International Telecommunication Union - Telecommunication
                                            Standardisation Bureau
         2.77. LES                          Land Earth Station which consists of RFT, SBS, HPN, TNM,
                                            and PCS
         2.78. LHCP                         Left Hand Circular Polarisation
         2.79. LNA                          Low Noise Amplifier
         2.80. LNMC at OT&DF                Local Network Management Centre at OT&DF
         2.81. LNMS at OT&DF                Local Network Management System at OT&DF
         2.82. MAP                          Mobile Application Part
         2.83. MCD                          Multi-Coded Data
         2.84. MIN                          Mobile Identification Number
         2.85. MLS                          Microwave Landing System
         2.86. MM                           Mobility Management
         2.87. MMI                          Man-Machine Interface
         2.88. MP                           Medium Penetration
         2.89. MSC                          Mobile services Switching Centre
         2.90. MSI                          Mobile Subscriber Identity
         2.91. MSISDN                       Mobile Station ISDN Number
         2.92. MSN                          Mobile Subscriber Number
         2.93. MSRN                         Mobile Station Roaming Number
         2.94. MSS                          Mobile Satellite Service
         2.95. MSSC                         Mobile Satellite Switching Centre, including VLR and GMSC
                                            function
         2.96. MTP                          Message Transfer Part
         2.97. NA                           Not Applicable
         2.98. Network operator             Operational staff at the NMC
         2.99. NMC                          Network Management Centre including MMI
         2.100. NMS                         Network Management System
         2.101. NP                          Nominal Penetration
         2.102. OAM                         Operations and Maintenance including MMI
</TABLE>

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<TABLE>
<S>                                         <C>
         2.103. OMC                         Operations and Maintenance Centre including MMI
         2.104. OSI                         Open Systems Interconnect
         2.105. OSS*                        Operations Support System, same as OMC
         2.106. OT&DF                       Operational Test & Development Facility
         2.107. PABX                        Private Access Branch Exchange
         2.108. PAD                         Packet Assembler Dissembler
         2.109. PCH                         Paging Channel
         2.110. PCM                         Pulse Code Modulation
         2.111. PCS                         Payload Command System
         2.112. PDC                         Personal Digital Cellular
         2.113. PDR                         Preliminary Design Review
         2.114. PIN                         Personal Identification Number
         2.115. PLMN                        Public Land Mobile Network
         2.116. PSPDN                       Packet Switched Packet Data Network
         2.117. PSTN                        Public Switched Telephone Network
         2.118. QoS                         Quality of Service
         2.119. RACH                        Random Access Channel
         2.120. RFT                         Radio Frequency Terminal
         2.121. RHCP                        Right Hand Circular Polarisation
         2.122. RPC                         Regional Processor Controller
         2.123. RPN                         Regional Processor Network
         2.124. RR                          Radio Resource
         2.125. RTRM                        Real Time Resources Manager
         2.126. SACCH                       Slow Associated Control Channel
         2.127. SAN                         Satellite Access Node which consists of LES, MSSC, SAN
                                            OMC and includes if co-located any HLR, ILR, SMSC, IN
         2.128. SAN operator                Operational staff at the SAN.
         2.129. SBS                         Satellite Base Station
         2.130. SCC                         Satellite Control Centre
         2.131. SCCP                        Signalling Connection Control Part
         2.132. SCE                         Service Creation Environment
         2.133. SCP                         Service Control Point
         2.134. SDCCH                       Standalone Dedicated Control Channel
         2.135. SDF                         Service Data Function
         2.136. SDP                         Service Data Point
         2.137. Service Area                Equivalent to a cell in GSM
         2.138. SIM                         Subscriber Identity Module
         2.139. SLRP                        Stored Last Registered Position
         2.140. SMAF                        Service Management Access Function
         2.141. SMAS                        Service Management Application System, Ericsson product
                                            for IN management
         2.142. SMP                         Service Management Point
         2.143. SMS                         Short Message Service
         2.144. SMSC                        SMS Centre
         2.145. SMS-GMSC                    SMS Gateway MSC
         2.146. SMS-IWMSC                   SMS Interworking MSC
         2.147. SRMC                        Satellite Resources Management Centre
         2.148. SRMS                        Satellite Resource Management System
         2.149. SS                          Supplementary Service
         2.150. SS7                         Signalling System 7
         2.151. SSF                         Service Switching Function
         2.152. SSP                         Service Switching Point
         2.153. STE                         Special Test Equipment
         2.154. STP                         Signal Transfer Point
         2.155. TBD                         To Be Determined
         2.156. TBR                         TO BE REVIEWED
         2.157. TCAP                        Transaction Capabilities Application Part
         2.158. TCH                         Traffic Channel
         2.159. TDMA                        Time Division Multiple Access
         2.160. TMSI                        Temporary Mobile Subscriber Identity
</TABLE>

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<TABLE>
<S>                                         <C>
         2.161. TNM                         Terrestrial Network Manager
         2.162. TT&C                        Tracking, Telemetry and Command
         2.163. TUP                         Telephone User Part
         2.164. UDI                         Unrestricted Digital Information
         2.165. USSD                        Unstructured Supplementary Service Data
         2.166. UT                          User Terminal
         2.167. VAS                         Value-added Service
         2.168. VLR                         Visitor Location Register
         2.169. VMSSC                       Visited MSSC
         2.170. VPN                         Virtual Private Network
         2.171. VSWR                        Voltage Standing-Wave Ratio
         2.172. Z-arc                       A uniform delay contour line within a spot beam.
</TABLE>

         *        Non-preferred term

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3. BASIC REQUIREMENTS

3.1. ICONET GROUND FACILITY DEFINITION

         3.1.1. ICONet Ground Facilities (IGF) shall comprise SANs, NMC and
         backup NMC, and miscellaneous equipment as listed in Section 1.2. For
         full details of equipment, refer to the Equipment List in Annex 1 of
         the SOW.

3.2. SYSTEM DESCRIPTION

         3.2.1. The IGF is part of the ICO System, and in conjunction with
         satellites and PSTNs, is intended to provide digital voice telephony,
         facsimile, data, and value added services (VAS) to handheld User
         Terminals (UT) to and from any point on the earth.

         3.2.2. The IGF consists of elements which provide the following
         functions: range of voice and data services, supplementary services,
         mobility management, network management, billing and customer
         administration, service provisioning, gateways, messaging, satellite
         payload control, and monitoring of the interconnecting traffic and
         signalling communication links.

         3.2.3. The IGF shall provide Mobile Originated calls to any telephone
         or equivalent terminal accessible via the world's international public
         switched telephone networks, or accessible through a Private Network
         connected to ICO.

         3.2.4. The system shall provide for Mobile Terminated calls.

         3.2.5. The system shall provide for Mobile to Mobile calls. These will
         be switched within the ICONET provided that the destination can be
         determined by explicit number analysis.

3.3. EXTERNAL INTERFACES

3.3.1. GENERAL

         3.3.1.1. The external interfaces present in the IGF are listed below.

3.3.2. RF INTERFACE

3.3.2.1. AIR INTERFACE (UT)

         3.3.2.1.1. The air interface describes the communication protocol
         between the IGF and the UTs. The details of the air interface can be
         found in the ICO Air Interface document and in supporting GSM Technical
         Specifications.

3.3.2.2. SATELLITE RF INTERFACE

         3.3.2.2.1. The IGF provides RF signals for TT&C in accordance with TT&C
         to SAN ICD EN-TC-ICO-IS-0001.

         3.3.2.2.2. The IGF shall provide RF signals for payload command (PCS)
         functions in accordance with PCS ICD [TBD].

3.3.3. IF INTERFACES

3.3.3.1. TT&C

         3.3.3.1.1. The IGF shall provide an IF Interface to external TT&C
         equipment at selected SANs provided for TT&C functions in accordance
         with TT&C to SAN ICD EN-TC-ICO-IS-0001.

3.3.4. TERRESTRIAL NETWORK INTERFACE

         3.3.4.1. The IGF shall provide interfaces to terrestrial public
         networks, such as Public Switched Telephone Network (PSTN), Integrated
         Services Digital Networks (ISDN), Public Land Mobile Networks (PLMN),
         and Packet Switched Public Data Networks (PSPDN) in accordance with
         Section 6.3 of this document.

         3.3.4.2. The interfaces to external transmission lines shall comply
         with ITU-T Recommendation G.703/G.704 for A-law PCM and DS1 for
         (micro)-law systems.

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3.3.5. ADC INTERFACE

         3.3.5.1. The IGF shall provide ADC interfaces in accordance with the
         following documents: WG3-XX-60915; WG5-NM-60024.

3.3.6. DATA COMMUNICATIONS INTERFACE

3.3.6.1. TT&C

         3.3.6.1.1. The IGF shall provide a data communications interface to
         external TT&C equipment at selected SANs provided for TT&C functions in
         accordance with TT&C to SAN ICD EN-TC-ICO-IS-0001.

3.3.6.2. SCC

         3.3.6.2.1. The IGF shall provide a data communications interface at the
         NMC and Backup NMC to external equipment at the Satellite Control
         Centre and Backup Satellite Control Centre for passing information
         between SCC and NMC in accordance with SAN to NMC ICD
         EN-TC-ICO-IS-0002.

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4. END-USER SERVICES

4.1. BASIC TELESERVICES

4.1.1. SPEECH SERVICES

4.1.1.1. TELEPHONY

         4.1.1.1.1. The IGF shall support the GSM standard telephony service, as
         defined in TS GSM 02.03, with the exception of the deviations listed
         below.

         4.1.1.1.2. The basic information rate at the UT shall be 4.8kbps
         inclusive of FEC.

         4.1.1.1.3. The voice codec algorithm shall be specified BY ICO.

         4.1.1.1.4. The voice coding rate is [3.1 kbps] approximately.

         4.1.1.1.5. FEC specified by ICO is provided on the vocoder rate to
         provide a bit rate of 4.8kbps.

         4.1.1.1.6. Transmission of DTMF signalling shall be supported by the
         IGF in both directions i.e. from the UT to the network and from the
         network to the UT. The transmission of DTMF tones to the UT shall be
         transparent to the MSSC.

         4.1.1.1.7. It shall be possible to send DTMF tones at any time after
         through connection and before the call is cleared.

         4.1.1.1.8. Two transcodings may be applied on Mobile to Mobile calls
         (4.8kbps to 64kbps. 64kbps to 4.8kbps).

         4.1.1.1.9. On calls to and from the fixed network, a single transcoding
         from the fixed network standard to the ICO voice coding method shall be
         performed.

4.1.1.2. EMERGENCY CALL

         4.1.1.2.1. The IGF shall support the GSM standard emergency call
         service, as defined in TS GSM 02.03, with the exception of the
         deviations listed below.

         4.1.1.2.2. The IGF shall support emergency call access for UTs without
         a SIM i.e. without an IMSI/TMSI.

         4.1.1.2.3. The IGF shall have the capability to suppress use of
         emergency calls without a SIM.

         4.1.1.2.4. The routing of emergency calls by the MSSC to
         national/regional emergency call centres shall be based on the service
         area of the UT.

         4.1.1.2.5. The MSSC shall transmit the UT position (i.e. service area)
         to those emergency call centres capable of receiving it.

         4.1.1.2.6. The IGF shall support up to 5000 emergency call centres per
         SAN for emergency call handling.

4.1.2. SHORT MESSAGE SERVICES

4.1.2.1. SHORT MESSAGE SERVICES - POINT TO POINT

         4.1.2.1.1. The IGF shall support the GSM standard short message service
         point-to-point services (mobile originated and mobile terminated), as
         defined in TS GSM 02.03 and TS GSM 03.40.

         4.1.2.1.2. The IGF shall include ONE OR MORE SMS CENTRES (SMSCS) for
         transmission/reception of messages to/from ICONET subscribers. (OPTION)

         4.1.2.1.3. The IGF shall be able to receive short messages from; and
         send short messages to; networks that conform to the GSM standards
         relating to SMS.

         4.1.2.1.4. The IGF shall support Acknowledgements in accordance with TS
         GSM 03.40.

         4.1.2.1.5. The IGF shall support the encoding of SMS messages in
         characters of several alphabets.

         4.1.2.1.6. The available encodings shall include unstructured binary
         data (maximum 140 octets) and International Alphabet No.5 (160
         characters).

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4.1.3. FACSIMILE SERVICES

4.1.3.1. FACSIMILE GROUP 3 (UP TO 9600 bps) USING GSM DEFINITION

         4.1.3.1.1. The IGF shall support the GSM standard automatic facsimile
         service, as defined in TS GSM 02.03, with exception of the deviations
         listed below.

         4.1.3.1.2. The facsimile modem speed shall be up to and including 9600
         bps.

         4.1.3.1.3. The IGF shall support transparent transmission of fax data.

         4.1.3.1.4. This service shall be subject to the Air Interface
         definition being for the use of maximum 2-slot transmission in
         accordance with the UT classmark.

         4.1.3.1.5. The IGF shall support fax towards the PSTN, in accordance
         with ITU recommendation T30.

         4.1.3.1.6. The IGF shall support fax error correcting mode (ECM)
         towards the PSTN, in accordance with ITU recommendation T30 Annex A.

         4.1.3.1.7. For the case of 9600 bps transmission, un-encoded 2 slot
         transmission shall be used.

4.1.3.2. FACSIMILE GROUP 3 (UP TO 14.4 kbps) USING GSM STANDARD

         4.1.3.2.1. The IGF shall support higher rate automatic facsimile Group
         3 connections on the basis of the emerging GSM phase 2+ High Speed
         Circuit Switched Data (HSCSD) services as defined by TS GSM 02.03 and
         TS GSM 02.34 and with the exception of the deviations listed below. For
         further details of the Ericsson implementation of these services see
         ETL document LK/XX 1056-272.

         4.1.3.2.2. The data rates at the user interface supported by the system
         shall include 12 and 14.4 kbps (V.17).

         4.1.3.2.3. This service requires more than 2 slots air interface
         transmission and shall only be provided to UTs with corresponding
         capabilities as indicated by their classmarks.

         4.1.3.2.4. The call detail records produced by the MSSC shall include
         the number of traffic channels (i.e. air interface slots) assigned at
         the start of charging. If the number of traffic channels used changes
         during the call, the new assigned number of traffic channels shall be
         stored, as well, in the call data record.

         4.1.3.2.5. The IGF shall support error correcting mode (ECM) in
         accordance with ITU-T Recommendation T.30 Annex A.

         4.1.3.2.6. From a service provision perspective, services specified in
         4.1.3.1 and 4.1.3.2 shall be considered as one service.

4.1.3.3. ALTERNATE VOICE/GROUP 3 FACSIMILE USING GSM DEFINITION

         4.1.3.3.1. The IGF shall support the GSM standard alternate
         speech/group 3 facsimile service, as defined in TS GSM 02.03, with the
         exception of the deviations listed below.

         4.1.3.3.2. The speech component of the connection shall be in
         accordance with the requirements for the ICO telephony service as
         described above.

         4.1.3.3.3. The facsimile component of the connection shall be in
         accordance with the requirements for the ICO automatic group 3
         facsimile service as described above, but limited to a maximum of
         4.8kbps.

         4.1.3.3.4. The IGF shall support the use of the GSM incall modification
         procedure.

4.1.3.4. ALTERNATE VOICE/GROUP 3 FACSIMILE (UP TO 2400 bps) USING INBAND
         DETECTION

         4.1.3.4.1. The IGF shall detect the usage of in-band fax tones. Upon
         such detection, the IGF shall perform an in-call modification to change
         the voice codecs in IGF and UT from voice mode to fax mode, transparent
         to the MSSC. The GSM bearer capability shall remain 3.1 kHz audio.

         4.1.3.4.2. The facsimile data rates when using inband detection shall
         be limited to 2400bps.

         4.1.3.4.3. The IGF shall support in-band alternative voice/facsimile
         operation only where the facsimile data is transported over a speech
         circuit. That is, where there is only one bearer capability indication
         at call setup, and that bearer capability is 3.1 kHz audio or speech.

         4.1.3.4.4. The voice codec shall support the detection of audio
         facsimile tones.

         4.1.3.4.5. The IGF shall support the switch from voice to facsimile
         mode and vice versa.

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4.2. BASIC BEARER SERVICES

4.2.1. CIRCUIT MODE DATA SERVICES (UP TO 9600 bps) USING GSM STANDARD

         4.2.1.1. The IGF shall support the following GSM standard circuit-mode
         data services listed below, as defined in TS GSM 02.02 subject to the
         clarifications included below:

         4.2.1.2. Asynchronous data (BS 2x), transparent and non-transparent, at
         bit rates of 300, 1200, 1200/75, 2400, 4800 and 9600 bps.

         4.2.1.3. Synchronous data (BS 3x), transparent, at bit rates of 1200,
         2400, 4800, and 9600 bps.

         4.2.1.4. Access from a mobile station to a packet switched data network
         shall be possible via the PAD (Packet Assemble/Disassembly) facility of
         the Data Interworking Function of IGF or via a PAD accessible via the
         switched telephone network. In both cases the same asynchronous rates
         300, 1200, 2400, 1200/75 AND 4800 bps shall be supported.

         4.2.1.5. The Data Interworking Function of IGF shall support basic
         packet services at 2400, 4800 and 9600 bps. Support of basic packet
         service in IGF is the passing of X.25 packet layer information. The
         services use either a modem or the Unrestricted Digital Information
         (UDI) Transfer Capability of the ISDN, in both cases X.31 HDLC flag
         stuffing is used for rate adaptation. With a modem both transparent and
         non transparent services are supported. With UDI, utilising the HDLC
         flag stuffing towards ISDN, only non-transparent services are
         supported.

         4.2.1.6. For the case of 9600 bps transmission. un-encoded 2 slot
         transmission shall be used.

4.2.2. CIRCUIT MODE DATA SERVICES (UP TO 38.4 kbps) USING GSM STANDARD

         4.2.2.1. The IGF shall support High Speed Circuit Switched Data (HSCSD)
         services in accordance with the emerging GSM phase 2+ services as
         defined in TS GSM 02.02 and TS GSM 02.34 subject to the clarifications
         included below. For further details of the Ericsson implementation of
         these services see ETL document LK/XX 1056-272.

         4.2.2.2. The IGF shall support subscription to the following bearer
         services:

                  1.   general asynchronous (BS 20)

                  2.   general synchronous (BS 30)

         4.2.2.3. The IGF shall support both transparent and non-transparent
         services.

         4.2.2.4. The IGF shall support autobauding for transparent and
         non-transparent services. For non-transparent services it shall be
         possible to change the data rate during the call.

         4.2.2.5. The IGF shall support the modification of the number of
         channels allocated to a particular HSCSD connection via in-call
         modification and on handover.

         4.2.2.6. If during the assignment of traffic channels or at handover a
         traffic channel congestion is encountered, the call set-up or handover
         can be carried using less channels than initially requested.

         4.2.2.7. Circuit mode data services shall be supported by the system at
         data rates of 9.6, 14.4, 16.8, 19.2, 21.6, 24.0, 26.4, 28.8, 31.2, 33.6
         and 38.4kbps.

         4.2.2.8. This service shall only be provided to UTs which can utilise
         more than 2 air interface slots as indicated by their classmarks.

         4.2.2.9. The IGF shall support data compression based on ITU-T V.42bis
         towards both the PSTN and the UT.

         4.2.2.10. The call detail records for mobile originated and mobile
         terminated cases produced by the MSSC shall include the number of
         traffic channels (i.e. air interface slots) assigned at the start of
         charging. If the number of traffic channels used changes during the
         call, the new assigned number of traffic channels shall be stored, as
         well, in the call data record.

4.2.3. ALTERNATE VOICE AND DATA SERVICES USING VOICE CODEC SIGNALLING

         4.2.3.1. For mobile terminated and mobile originated calls, the IGF
         shall detect in-band data tones and modulation. Upon such detection,
         the IGF shall perform an in-call modification to change the voice
         codecs, in IGF and UT from voice mode to data mode, transparent to the
         MSSC. The GSM bearer capability shall remain 3.1 kHz audio.

         4.2.3.2. The data rates for alternate voice/data operation shall be
         limited to 2400bps.

         4.2.3.3. The voice codec shall support the detection of audio modem
         tones.

         4.2.3.4. The IGF shall support the switch from voice to data mode and
         vice versa.

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4 .3. GSM SUPPLEMENTARY SERVICES

4.3.1. GENERAL

         4.3.1.1. The IGF shall support the subscription (provision/withdrawal)
         of each of the GSM supplementary services on an individual subscriber
         (IMSI) basis.

         4.3.1.2. The IGF shall support the management of the supplementary
         services by the end user
         (registration/erasure/activation/deactivation/interrogation/password
         control) as defined in TS GSM 02.04.

         4.3.1.3. The IGF shall support the registration/erasure/activation and
         deactivation of each of the supplementary services on a basic service
         group basis as defined in TS GSM 02.04.

         4.3.1.4. The IGF shall support the use of the Unstructured
         Supplementary Service Data (USSD) mechanisms for interaction with the
         end-user as defined in TS GSM 02-90, TS GSM 03.90 and TS GSM 04.90.

         4.3.1.5. Both user and network initiated USSD shall be included, as
         well as the capability to handle the USSD dialogues initiated from
         applications in the HLR; and from applications that use the USSD
         procedures to communicate with the HLR and are located in external
         nodes.

4.3.2. LINE IDENTIFICATION SERVICES

4.3.2.1. CALLING LINE IDENTIFICATION PRESENTATION (CLIP)

         4.3.2.1.1. The IGF shall comply with the GSM phase 2 Calling Line
         Identification Presentation (CLIP) service as defined in TS GSM 02.81,
         TS GSM 03.81 and TS GSM 04.81.

4.3.2.2. CALLING LINE IDENTIFICATION RESTRICTION (CLIR)

         4.3.2.2.1. The IGF shall comply with the GSM phase 2 Calling Line
         Identification Restriction (CLIR) service as defined in TS GSM 02.81,
         TS GSM 03.81 and TS GSM 04.81.

4.3.2.3. CONNECTED LINE IDENTIFICATION PRESENTATION (COLP)

         4.3.2.3.1. The IGF shall comply with the GSM phase 2 Connected Line
         Identification Presentation (COLP) service as defined in TS GSM 02.81,
         TS GSM 03.81 and TS GSM 04.81.

4.3.2.4. CONNECTED LINE IDENTIFICATION RESTRICTION (COLR)

         4.3.2.4.1. The IGF shall comply with the GSM phase 2 Connected Line
         Identification Restriction (COLR) service as defined in TS GSM 02.81,
         TS GSM 03.81 and TS GSM 04.81.

4.3.3. CALL FORWARDING SERVICES

4.3.3.1. CALL FORWARDING UNCONDITIONAL (CFU)

         4.3.3.1.1. The IGF shall comply with the GSM phase 2 Call Forwarding
         Unconditional (CFU) service as defined in TS GSM 02.82, TS GSM 03.82
         and TS GSM 04.82.

4.3.3.2. CALL FORWARDING ON MOBILE SUBSCRIBER BUSY (CFB)

         4.3.3.2.1. The IGF shall comply with the GSM phase 2 Call Forwarding on
         Mobile Subscriber Busy (CFB) service as defined in TS GSM 02.82, TS GSM
         03.82 and TS GSM 04.82.

4.3.3.3. CALL FORWARDING ON NOT REACHABLE (CFNRc)

         4.3.3.3.1. The IGF shall comply with the GSM phase 2 Call Forwarding on
         Not Reachable (CFNRc) service as defined in TS GSM 02.82, TS GSM 03.82
         and TS GSM 04.82.

4.3.3.4. CALL FORWARDING ON NO REPLY (CFNRy)

         4.3.3.4.1. The IGF shall comply with the GSM phase 2 Call Forwarding on
         No Reply (CFNRy) service as defined in TS GSM 02.82, TS GSM 03.82 and
         TS GSM 04.82.

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4.3.4. CALL WAITING AND CALL HOLD SERVICES

4.3.4.1. CALL WAITING (CW)

         4.3.4.1.1. The IGF shall comply with the GSM phase 2 Call Waiting (CW)
         service as defined in TS GSM 02.83, TS GSM 03.83 and TS GSM 04.83.

4.3.4.2. CALL HOLD (HOLD)

         4.3.4.2.1. The IGF shall comply with the GSM phase 2 Call Hold (HOLD)
         service as defined in TS GSM 02.83, TS GSM 03.83 and TS GSM 04.83.

4.3.5. MULTI-PARTY SERVICES

4.3.5.1. MULTI-PARTY (MPTY)

         4.3.5.1.1. The IGF shall comply with the GSM phase 2 Multi-Party (MPTY)
         service as defined in TS GSM 02.84, TS GSM 03.84 and TS GSM 04.84.

4.3.6. CLOSED USER GROUP SERVICES

4.3.6.1. CLOSED USER GROUP (CUG)

         4.3.6.1.1. The IGF shall comply with the GSM phase 2 Closed User Group
         (CUG) service as defined in TS GSM 02.85, TS GSM 03.85 and TS GSM
         04.85.

4.3.7. CALL RESTRICTION SERVICES

4.3.7.1. BARRING OF ALL OUTGOING CALLS (BAOC)

         4.3.7.1.1. The IGF shall comply with the GSM phase 2 Barring of All
         Outgoing Calls (BAOC) service as defined in TS GSM 02.88, TS GSM 03.88
         and TS GSM 04.88.

4.3.7.2. BARRING OF ALL INCOMING CALLS (BAIC)

         4.3.7.2.1. The IGF shall comply with the GSM phase 2 Barring of All
         Incoming Calls (BAIC) service as defined in TS GSM 02.88, TS GSM 03.88
         and TS GSM 04.88.

4.3.7.3. BARRING OF ALL OUTGOING INTERNATIONAL CALLS (BOIC)

         4.3.7.3.1. The IGF shall support Barring of all outgoing international
         calls (BOIC), using the standard unmodified GSM functionality. However
         this may not fully function as specified for ICO operation.

4.3.7.4. BARRING OF OUTGOING INT. CALLS EXCEPT THOSE TO THE HOME COUNTRY
(BOICexHC)

         4.3.7.4.1. The IGF shall support Barring of outgoing international
         calls except those to the Home Country (BOICexHC), using the standard
         unmodified GSM functionality.

4.3.7.5. BARRING OF INC. CALLS WHEN ROAMING OUTSIDE THE HOME COUNTRY (BIC-ROAM)

         4.3.7.5.1. The IGF shall support Barring of incoming calls when roaming
         outside the Home Country (BIC-Roam), using the standard unmodified GSM
         functionality.

4.3.8. ADVICE OF CHARGE SERVICES

4.3.8.1. ADVICE OF CHARGE - INFORMATION LEVEL (AoCI)

         4.3.8.1.1. The IGF shall comply in full with the GSM phase 2 Advice Of
         Charge - Information Level (AoCI) service as defined in TS GSM 02.86,
         TS GSM 03.86 and TS GSM 04.86.

         4.3.8.1.2. The service on offer does not include any ICO specific
         modifications.

4.3.8.2. ADVICE OF CHARGE - CHARGING LEVEL (AoCC)

         4.3.8.2.1. The IGF shall comply in full with the GSM phase 2 Advice Of
         Charge - Charging Level (AoCC) service as defined in TS GSM 02.86, TS
         GSM 03-86 and TS GSM 04.86.

         4.3.8.2.2. The service on offer does not include any ICO specific
         modifications.

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4.4. ICO SPECIFIC SERVICES

4.4.1. HIGH PENETRATION NOTIFICATION (HPN) SERVICE

4.4.1.1. SERVICE DEFINITION

         4.4.1.1.1. The IGF shall support the subscription
         (provision/withdrawal) of the ICO HPN supplementary service (HPN-SS) on
         an individual subscriber (IMSI) basis.

         4.4.1.1.2. The IGF shall support the following two levels of priority
         for the scheduling of HPN messages as a subscription option:

                  1.   standard

                  2.   high priority

         4.4.1.1.3. In accordance with the ISDN/GSM service model, the HPN
         supplementary service shall apply to the following basic service groups
         as defined in TS GSM 02.04:

                  1.   speech (BSG 1)

                  2.   short message service (BSG 2)

                  3.   facsimile services (BSG 6)

                  4.   data circuit asynchronous (BSG 7)

                  5.   data circuit synchronous (BSG 8)

         4.4.1.1.4. The IGF shall support the subscription to the HPN service by
         cellular roamers to the ICO network via the appropriate
         cellular/satellite interworking function.

         4.4.1.1.5. The HPN-SS shall be activated as a result of provision i.e.
         no user MMI actions are required for the
         registration/erasure/activation/deactivation of this service.

         4.4.1.1.6. The HPN-SS shall be invoked by the IGF on the failure to
         page a UT for the purpose of incoming call alerting or delivery of a
         mobile terminated SMS message.

         4.4.1.1.7. The HPN-SS shall also be invoked in case of an attempt to
         deliver an incoming call or mobile terminated short message to a
         subscriber for whom the IMSI-detach flag has been set. In such cases
         the escalation to HPN paging shall occur without any attempt at medium
         penetration (MP) paging.

         4.4.1.1.8. The invocation of the HPN-SS by the IGF shall result in the
         transmission of a HPN message to the UT.

         4.4.1.1.9. The IGF shall support the following types of content for the
         HPN message, as specified in ICO 103.40:

                  1.   notification with information extracted from the header
                       of an SMS message

                  2.   incoming call details (e.g. the calling line identity)

         4.4.1.1.10. The IGF shall support the reception of an HPN
         acknowledgement from the UT.

         4.4.1.1.11. In the event of a failure by the IGF to reach the UT,
         macro-diversity shall be applied in the form of multiple retries over
         an extended period of time.

         4.4.1.1.12. The HPN-SS shall be restricted by the IGF to subscribers
         roaming within the ICONET and shall not interfere in any way with the
         services on offer to ICO subscribers whilst roaming in foreign
         networks.

         4.4.1.1.13. The IGF shall support the applications defined in the
         appendices of ICO 103.40.

         4.4.1.1.14. The IGF shall support the 103.40, 05.xx,04.xx, and 104.08
         Series AI documents.

         4.4.1.1.15. The IGF shall be capable of using any satellite visible
         (down to an NMC configurable limit) to the UT, to increase the
         likelihood of message delivery.

         4.4.1.1.16. The IGF shall use co-ordination and queuing methods to
         reduce message delivery delay and to achieve efficient use of the
         satellite resource.

         4.4.1.1.17. The IGF shall resend messages, up to a configurable limit,
         where this can increase message transfer success.

         4.4.1.1.18. The HPN subsystem shall prevent re-transmission of a
         message when an acknowledgement for the message has been received from
         the UT.

         4.4.1.1.19. For further details of the HPN service see ICO 103.40.

4.4.1.2. HPN PRIVACY

         4.4.1.2.1. The HPN transmission to the UT shall be encrypted by a [TBD]
         encryption algorithm. The algorithm shall be supplied by ICO. The
         algorithm shall use a time variant key (Kh) which is derived from the
         subscriber TMSI and HPN Frame Id. The application of HPN privacy based
         on the TMSI shall not compromise the existing security mechanisms
         applied to the other channels.

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4.4.2. ICO DUAL-NUMBERING (OPTION)

         4.4.2.1. The IGF shall support the subscription by cellular roamers to
         the ICO dual-numbering option. This requires the provision of an
         Interworking Location Register for the applicable cellular network
         standard.

         4.4.2.2. The IGF shall support the allocation of an ICO MSISDN to an
         existing cellular subscriber, in addition to the existing cellular
         MSISDN, for each service subscribed to.

         4.4.2.3. For a subscriber with ICO dual-numbering, the IGF shall
         support the delivery of incoming calls via ICO MSISDNs to:

                  1.   subscribers currently registered on ICO

                  2.   subscribers currently registered on cellular networks
                       (F/R)

         4.4.2.4. For a subscriber with ICO dual-numbering, the ILR shall
         support the selection, at subscription time, by the end-user of the
         primary MSISDN to be used for calling line identification (CLI)
         purposes. (F/R)

4.4.3. NATURAL LANGUAGE SUPPORT

         4.4.3.1. The IGF shall support the selection of a "preferred language"
         by the end-user as a subscription option.

         4.4.3.2. The IGF shall store the "preferred language" of the subscriber
         in the service profile stored within the HLR and VLR registers.

         4.4.3.3. The IGF shall also store the "preferred language" of the
         subscriber in the service profile contained within the
         cellular/satellite interworking function. (F/R)

         4.4.3.4. For voice announcements and prompts to the subscriber the IGF
         shall employ the "preferred language" to select the language used.

         4.4.3.5. For announcements the IGF shall support a minimum of 30
         different languages. subject to the storage capacity for announcements.

         4.4.3.6. For voice messaging services, the IGF shall also support the
         use of a language preference the extent of this support shall be
         determined by the PDR.

         4.4.3.7. For roamers to the ICO network, the IGF shall support the
         derivation of the correct language for announcements etc., from the
         home network (MCC/MNC) of the subscriber via IMSI-range analysis.

4.5. MAIL AND MESSAGING SERVICES (OPTION)

4.5.1. GENERIC MESSAGING PLATFORM REQUIREMENTS

         4.5.1.1. The IGF shall include a flexible messaging platform for the
         provision of the following mail and messaging services:

                  1.   voice mail

                  2.   fax mail (F/R)

                  3.   short messaging (SMS)

                  4.   email (F/R)

         4.5.1.2. The IGF messaging platform shall support both a centralised or
         de-centralised configuration for the provision of messaging services.

         4.5.1.3. In order to support the distributed mailbox architecture, the
         IGF messaging platform shall support

                  1.   remote access (storage and retrieval) to a mailbox from
                       another messaging node (F/R)

                  2.   the exchange of mail, in compressed form, between
                       different messaging nodes.

         4.5.1.4. The IGF messaging platform shall support the subscription by
         the end-user to a combination of any of the following types of mailbox:

                  1.   voice mailbox

                  2.   fax mailbox (F/R)

                  3.   email (F/R)

         4.5.1.5. The IGF shall provide a flexible script-based menu system for
         dialogue with the end-user. Interaction with the end-user shall be by
         means of DTMF and Interactive Voice Response (IVR).

         4.5.1.6. The IGF messaging platform shall support, as a subscription
         option, the use of multiple languages, for voice prompts and other
         forms of dialogue with the end user.

         4.5.1.7. The IGF shall provide the necessary tools for ICO to modify
         the individual menus or scripts employed by the messaging platform.
         (F/R)

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         4.5.1.8. The IGF messaging platform shall support the use of multiple
         time zones. The time zone to be employed for a particular mailbox shall
         be a subscription option. (F/R)

         4.5.1.9. The IGF messaging platform shall support the use of an
         individual personal identification number (PIN) for access protection.
         The subscriber shall be able to modify his/her PIN as part of the
         mailbox customisation process.

         4.5.1.10. The IGF messaging platform shall permit the mailbox owner to
         record and install personalised greetings for each of the mailbox
         services subscribed to.

         4.5.1.11. The IGF messaging platform shall produce call detail records
         for each mailbox transaction including, but not limited to the
         following:

                  1.   deposit

                  2.   retrieval

                  3.   forwarding/distribution of mail (F/R)

                  4.   notification of waiting mail

                  5.   customisation of mailbox options. (F/R)

4.5.2. VOICE MAILBOX

         4.5.2.1. The messaging platform shall support the allocation of a voice
         mail box on an individual subscriber (MSISDN) basis.

         4.5.2.2. The IGF messaging platform shall support the following
         functions for voice mailboxes:

                  1.   deposit, reception of voice mail

                  2.   retrieval of voice mail from a UT

                  3.   retrieval of voice mail from a fixed phone

                  4.   forwarding of voice mail (F/R)

                  5.   distribution lists, distribution of voice mail according
                       to pre-set distribution lists. (F/R)

4.5.3. FAX MAILBOX (F/R)

         4.5.3.1. The messaging platform shall support the allocation of a fax
         mail box on an individual subscriber (MSISDN) basis.

         4.5.3.2. The IGF messaging platform shall support the following
         functions for fax mailboxes:

                  1.   deposit, reception of fax

                  2.   retrieval of fax to UT

                  3.   retrieval of fax to fixed phone

                  4.   forwarding of fax to other destinations

                  5.   distribution, distribution of faxes according to pre-set
                       distribution lists.

         4.5.3.3. The IGF shall support the use of standard fax cover sheets for
         the forwarding/distribution of fax mail.

         4.5.3.4. In case of distribution, the IGF messaging platform shall
         insert the appropriate name and fax number from the distribution list
         into the fax cover sheet.

4.5.4. EMAIL (F/R)

         4.5.4.1. The messaging platform shall support the allocation of an
         email account on an individual subscriber basis.

         4.5.4.2. The IGF messaging platform shall support the following email
         functions:

                  1.   transmission of email to external systems, including at
                       least Internet SMTP.

                  2.   reception of email from external systems, including at
                       least Internet SMTP.

                  3.   forwarding of email

                  4.   conversion of email to SMS messages for notification
                       purposes

                  5.   conversion of SMS message(s) to email.

4.5.5. SMS

         4.5.5.1. The messaging platform shall support the use of SMS without an
         explicit subscriber profile in the messaging platform.

         4.5.5.2. The IGF messaging platform shall support the following SMS
         functions:

                  1.   reception/storage/transmission of short messages from/to
                       subscribers located within the ICONET

                  2.   reception/storage/transmission of short messages from/to
                       subscribers located within cellular networks

                  3.   reception/storage/transmission of short messages from/to
                       external information providers

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                  4.   conversion of short messages to email

         4.5.5.3. The IGF messaging platform shall include the following GSM
         standard functionality:

                  1.   the SMS centre (SMSC) functionality as defined in TS GSM
                       03.40

                  2.   the SMS GATEWAY MSC (SMS-GMSC) functionality as defined
                       in TS GSM 03.40

                  3.   the SMS INTERWORKING MSC (SMS-IWMSC) FUNCTIONALITY AS
                       defined in TS GSM 03.40

         4.5.5.4. The IGF messaging platform shall support the following GSM
         standard features:

                  1.   the use of the validity period as defined in TS GSM 03.40

                  2.   delivery of both standard and priority short messages as
                       defined in TS GSM 03.40

                  3.   status reporting as defined in TS GSM 03.40

                  4.   the use of the reply-path functionality described in TS
                       GSM 03.40

                  5.   message waiting data and the service centre alerting
                       procedure as defined in TS GSM 03.40 and TS GSM 09.02

                  6.   the GSM default alphabet as defined in TS GSM 03.38

                  7.   multi-alphabet support including UCS2/UNICODE (ISO
                       10646-1)

                  8.   user-defined (8-bit binary) encoding as defined in TS GSM
                       03.38

                  9.   multiple short message transfer (to avoid
                       re-authentication etc.) as defined in TS GSM 03.40

                  10.  segmentation and reassembly of "long messages"

4.5.6. MAILBOX ACCESS AND RETRIEVAL

         4.5.6.1. The IGF shall support the use of a short form common access
         number (2-3 digits) for access to the messaging system from within the
         ICO network.

         4.5.6.2. The IGF shall also support a common access number for access
         to the messaging system from outside the ICO network i.e. from the
         PSTN/ISDN.

         4.5.6.3. The IGF shall be capable of deriving the correct mailbox
         number from the calling line identity (CLI) if available.

         4.5.6.4. If the CLI is unavailable or no matching mailbox entry can be
         found then it shall be possible for the end user to select the required
         mailbox number e.g. via DTMF.

         4.5.6.5. The IGF shall also support the use of a personal
         identification number (PIN) or password, for example via DTMF, for
         authentication purposes.

         4.5.6.6. In cases where the CLI is unavailable the entry of the correct
         password shall be mandatory.

         4.5.6.7. If the CLI is available then the usage of the password shall
         be configurable (enable/disable) by the end user.

         4.5.6.8. It shall also be possible for the end user to change the
         password.

         4.5.6.9. The functions supported in the Voicemail subsystem shall
         include the following:

         4.5.6.10. Deposit Session

                  1.   Common Access Number

                  2.   Message Review & Re-recording

                  3.   Pre-defined Text Message Menu

                  4.   Language Selection

                  5.   Operator Fallback

                  6.   Access to Additional Mailboxes

                  7.   Transfer to Mailbox Retrieval Session

         4.5.6.11. Retrieval & Administration Session

                  1.   Common Access Number

                  2.   New User Setup

                  3.   System Administrator Broadcast Message

                  4.   Subscriber Language Control

                  5.   Pause

                  6.   Replay / Rewind

                  7.   Message information

                  8.   Skip / FF

                  9.   Delete / Save

                  10.  Rapid Retrieval Mode

                  11.  Operator Fallback

                  12.  Record and Deposit Message to Another Mailbox

                  13.  Enable/Disable Automatic Message Information

                  14.  SPIG - Service Provider Identity Greeting

                  15.  Standard System Greeting

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                  16.  Personal Greeting

                  17.  Absence Greeting

         4.5.6.12. Security Control

                  1.   Change Password

                  2.   Enable/Disable Mailbox Security

         4.5.6.13. SMS Notification

                  1.   Enable/Disable SMS Notification

                  2.   New Voice Mail

                  3.   Mailbox Full

         4.5.6.14. Outdial Notification

                  1.   Enable/Disable Outdial Notification

                  2.   Review & Change Outdial Number

                  3.   Voice Prompt Only

         4.5.6.15. Voice Prompt Followed by New Messages

4.5.7. MAILBOX NOTIFICATION

         4.5.7.1. The messaging platform shall support SMS notification over the
         GSM network and shall be able to make an outdial for notification and
         delivery of the waiting messages.

         4.5.7.2. It shall be also possible to send a notification as an
         Internet mail.

         4.5.7.3. It shall be possible to make an outdial to a paging network
         for paging notification.

         4.5.7.4. In case of voice call-back ("outdial") and activated call
         forwarding, the IGF shall prevent the forwarding of the call-back
         notification to the same mailbox (i.e. to avoid loop back). (F/R)

4.5.8. ACCESS TO EXTERNAL SYSTEMS

         4.5.8.1. The messaging platform shall support the exchange of messages
         with external systems via:

                  1.   dial-up connection (e.g. for generation of MT SMS) (F/R)

                  2.   external mail systems (Internet SMTP/ X.400) (F/R)

                  3.   existing paging systems via the Telecator Network Paging
                       Protocol (TNPP)

                  4.   external user client/ system via the Telecator
                       Application Protocol (TAP) and V.32

                  5.   external user client/ system via TDP/TME and V.32 and
                       Modem Pool

                  6.   external user client/ system via TDP/TME and TCP/IP

                  7.   external user client/ system via the Computer Access
                       Protocol Version II (CAP II) over X.25 (F/R)

4.6. ADVANCED SERVICES (F/R)

4.6.1. GENERAL IN PLATFORM REQUIREMENTS

4.6.1.1. GENERAL

         4.6.1.1.1. The IGF shall include an intelligent network (IN) platform
         to enable the provision of customised services for calls to/from both
         ICO subscribers and roamers within the ICONET.

         4.6.1.1.2. The IN platform shall include the following components:

                  1.   an integrated Service Switching function (SSF) in each
                       MSSC

                  2.   Intelligent Peripherals (IPs) either standalone or
                       integrated in the MSSC

                  3.   Service Control Point (SCP) with integrated Service Data
                       Point (SDP)

                  4.   Service Management Point (SMP) with Service Management
                       Access Function (SMAF)

                  5.   Service Creation Environment (SCE) including workstations

4.6.1.2. SERVICE SWITCHING FUNCTION (SSF)

         4.6.1.2.1. Each MSSC of the IGF shall be equipped with an integrated
         SSF function as defined in ITU-T Q.1214.

         4.6.1.2.2. The MSSC shall also be capable of routing to an SSF located
         in a standalone Service Switching Point (SSP) either within ICONET or
         other networks.

         4.6.1.2.3. The SSF shall be capable of communicating with SCPs, both
         within the ICONET and other networks, via the ETSI CORE INAP (CS-1)
         protocol as defined in ETS 300 374-1.

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         4.6.1.2.4. The SSF shall be capable of being upgraded to CS-2 as and
         when this becomes available.

         4.6.1.2.5. In addition to the standard ETSI CS-1 INAP features, the IGF
         INAP shall support via the appropriate extension mechanisms, the
         transport of mobile specific information including, but not limited to,
         the following:

                  1.   IMSI

                  2.   Class mark

                  3.   Basic Service Codes and bearer capabilities

                  4.   Supplementary service codes and parameters

                  5.   UT position (i.e. Service Area)

         4.6.1.2.6. The SSF shall also be capable of supporting the GSM CAMEL
         feature, as defined in TS GSM 02.78, when this becomes available.

         4.6.1.2.7. Each SSF of the IGF shall be capable of communicating with
         multiple SCPs including, but not limited to:

                  1.   service based routing i.e. specific services assigned to
                       specific SCPs

                  2.   subscriber based routing i.e. subscriber groups assigned
                       to specific SCPs

                  3.   loadsharing between multiple but functionally equivalent
                       SCPs

         4.6.1.2.8. In the event of an outage of a particular SCP, it shall be
         possible to route traffic automatically to an alternative or backup
         SCP.

         4.6.1.2.9. The SSF shall support both originating and terminating state
         models, detection points and triggers.

         4.6.1.2.10. The SSF shall support the terminating state model in both
         the GMSSC and the VMSSC.

         4.6.1.2.11. The SSF shall support triggering on the basis of the
         analysis of the dialled digit string and on the basic of service keys
         stored in the service profile of the HLR/VLR.

         4.6.1.2.12. The HLR shall support the provisioning of the IN service
         keys in the HLR and the HLR component of the appropriate
         cellular/satellite interworking function (CS-IWF).

         4.6.1.2.13. The SSF shall support triggering on the basis of both
         dialled number (MSISDN) and roaming number (MSRN) in the GMSSC. This
         shall include the ability of the SSF to prevent the subsequent
         triggering on MSRN if an IN dialogue on the basis of the MSISDN has
         already taken place.

         4.6.1.2.14. The presence or lack of an IN service key shall not
         interfere in any way with the operation of the GSM emergency call
         service.

         4.6.1.2.15. The SSF shall also be capable of supporting mobile specific
         extensions to the basic call state models in order to permit the
         initiation of an INAP dialogue as a result of:

                  1.   location registration/updating

                  2.   mobile originated/terminated SMS

                  3.   management of supplementary service information
                       (reg./era./act./deact./int.) by the end-user

                  4.   unstructured supplementary service data (USSD)

4.6.1.3. INTELLIGENT PERIPHERALS (IPs)

         4.6.1.3.1. The IGF shall include intelligent peripherals (IPs) for
         interaction with the end-user as defined in ITU-T Q.1214.

         4.6.1.3.2. The IGF IPs shall support the generation of announcements
         and tones.

         4.6.1.3.3. The IGF IPs shall support the collection of digits from the
         end-user via the prompt and collect user information operation.

         4.6.1.3.4. The IGF IPs shall support the reception of DTMF tones as
         defined in ITU-T Q.23 and CEPT T/CS 46-08.

         4.6.1.3.5. The IGF IPs shall support the simultaneous allocation of
         announcements and tone generators to the same channel as a DTMF
         receiver.

         4.6.1.3.6. The IGF IPs shall support the assignment of both
         interruptible and non-interruptible announcements according to the INAP
         protocol.

4.6.1.4. SERVICE CONTROL POINT (SCP)

         4.6.1.4.1. The SCP shall include a service control function (SCF) as
         defined in ITU-T Q.1214.

         4.6.1.4.2. The SCF shall be capable of selecting the particular
         service(s) to be executed on the basis of the contents of the INAP
         initialDP message including, but not limited to, the following:

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                  1.   service key

                  2.   called party number

                  3.   calling party number

                  4.   detection point.

         4.6.1.4.3. The SCF shall also be capable of selecting the service(s) to
         be executed on the basis of the service data stored in the SDF.

         4.6.1.4.4. The SCF shall be capable of controlling the generation of
         call detail records in the SSF.

         4.6.1.4.5. The SCF shall be capable of storing additional IN relevant
         data in the call detail records produced by the SSF component of the
         MSSC.

         4.6.1.4.6. The SCF shall provide mechanisms for the generation and
         collection of statistics for the usage of services.

         4.6.1.4.7. The SCP shall support mechanisms and interfaces to
         distribute the collected statistics to the IGF NMC.

         4.6.1.4.8. The SCP shall include an internal Service Data Function
         (SDF) as defined in ITU-T Q.1214.

         4.6.1.4.9. The SDF shall be capable of providing storage and access
         mechanism for service data including:

                  1.   global data applicable to all services

                  2.   data applicable to particular service types

                  3.   call instance data for a particular service instance

                  4.   service subscriber data

                  5.   service user data

                  6.   service provider data.

         4.6.1.4.10. The SCP shall be capable of handling multiple versions of
         each service in order to permit the introduction of new services whilst
         maintaining a fall-back capability in case of service failure.

         4.6.1.4.11. The SCP shall support the scheduled activation/deactivation
         of services.

         4.6.1.4.12. The SCP shall be capable of operation in both simplex and
         mated-pair configurations.

         4.6.1.4.13. The SCP shall include overload protection mechanisms.

         4.6.1.4.14. The SCF shall also be capable of supporting the GSM CAMEL
         feature, as defined in TS GSM 02.78, when this becomes available.

4.6.1.5. SERVICE MANAGEMENT POINT (SMP)

         4.6.1.5.1. The SMP shall be capable of managing the provisioning and
         deployment of new services including, but not limited to, the
         following:

                  1.   management and distribution of service data to the SCPs

                  2.   interfacing to the ICO ADC for provisioning

                  3.   management and distribution of service logic

         4.6.1.5.2. The IGF SMAF shall support the access by external systems to
         the SMP including both service subscribers and service provider
         systems.

4.6.1.6. SERVICE CREATION ENVIRONMENT (SCE)

         4.6.1.6.1. The IGF shall include a service creation environment to
         support the development and testing of new IN services.

         4.6.1.6.2. The IGF SCE shall include:

                  1.   a GUI based service development facility

                  2.   the creation and maintenance of Service Independent
                       Building blocks (SIBs)

                  3.   testing and debugging facilities for trialling new
                       services

                  4.   user terminal, SCP and SSP simulation capability for the
                       validation of services prior to deployment in a live
                       environment

                  5.   interfaces to the SMP for downloading new service logic,
                       data and management components.

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4.6.2. IN SERVICES

4.6.2.1. GENERAL

         4.6.2.1.1. The IGF intelligent network (IN) platform shall enable the
         provision of customised services for calls to/from both ICO subscribers
         and roamers within the ICONET via the appropriate cellular/satellite
         interworking function.

         4.6.2.1.2. The IGF shall support the customisation of the service
         offering on the basis of at least the following:

                  1.   identity (IMSI/MSISDN) of the subscriber

                  2.   the location (service area) of the UT

                  3.   the A-party number (CLI)

                  4.   the called number

                  5.   time and date.

         4.6.2.1.3. The IN platform of the IGF shall support the use of multiple
         languages for use in dialogues with the end-user.

         4.6.2.1.4. The IGF IN platform shall support a minimum of 30 different
         languages.

         4.6.2.1.5. The IGF shall support the choice of language on the basis of
         individual service profiles, calling party number analysis (IMSI and
         MSISDN), location of the UT (i.e. service area), etc.

4.6.2.2. COMMUNITY OF INTEREST SERVICES

4.6.2.2.1. VIRTUAL PRIVATE NETWORKS (VPN)

         4.6.2.2.1.1. The IGF shall support a Virtual Private Network Service as
         defined in ITU-T Q.12.11. This shall include the necessary service
         scripts and service management application

         4.6.2.2.1.2. The IGF shall support the creation of ICO specific VPNs.

         4.6.2.2.1.3. The IGF shall support access from the ICONET to existing
         VPNs

4.6.2.3. SUBSCRIBER-SPECIFIC IN SERVICES

4.6.2.3.1. ADVANCED CALL FORWARDING

         4.6.2.3.1.1. The IGF shall support the use of the IN platform to
         provide a more advanced and more flexible form of call forwarding based
         on calling/called party numbers, date, time, location (i.e. service
         area), etc.

         4.6.2.3.1.2. The IGF shall support the creation by ICO of such services
         via the service creation environment (SCE). A ready-made service script
         will not be included.

4.6.2.3.2. ADVANCED CALL BARRING

         4.6.2.3.2.1. The IGF shall support the use of the IN platform to
         provide a more advanced and more flexible form of call barring based on
         calling/called party numbers, date, time, location (i.e. service area),
         permitted and forbidden number lists, etc.

         4.6.2.3.2.2. The IGF shall be capable of applying advanced barring
         services in both the gateway MSSC (GMSSC) and the visited MSSC (VMSSC).

         4.6.2.3.2.3. The IGF shall support the creation by ICO of such services
         via the service creation environment (SCE). A ready-made service script
         will not be included.

4.6.2.3.3. ORIGINATING CALL SCREENING

         4.6.2.3.3.1. The IGF shall support an Originating Call Screening (OCS)
         service as defined in ITU-T Q.1211.

         4.6.2.3.3.2. The IGF shall support the creation by ICO of such
         screening services via the service creation environment (SCE). A
         ready-made service script will not be included.

4.6.2.3.4. TERMINATING CALL SCREENING

         4.6.2.3.4.1. The IGF shall support a Terminating Call Screening (TCS)
         service.

         4.6.2.3.4.2. The IGF shall be capable of applying TCS in both the
         gateway MSSC (GMSSC) and the visited MSSC (VMSSC).

         4.6.2.3.4.3. The IGF shall support the creation by ICO of such
         screening services via the service creation environment (SCE). A
         ready-made service script will not be included.

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4.6.2.3.5. LOCATION DEPENDENT ROUTING

         4.6.2.3.5.1. The IGF shall support the use of the IN platform to
         provide a more advanced and more flexible form of call routing based on
         the location of the UT (service area), calling/called party numbers,
         date, time, etc. This shall include the necessary service script(s) and
         service management application.

         4.6.2.3.5.2. For further details see the description of the Ericsson
         feature of the same name.

4.6.2.3.6. PERSONAL NUMBER

         4.6.2.3.6.1. The IGF IN platform shall support the personal number
         service i.e. the allocation of a single directory number for multiple
         destinations each of which is tried in turn until the call is answered.
         This shall include the necessary service script(s) and service
         management application.

         4.6.2.3.6.2. For further details see the description of the Ericsson
         feature of the same name.

4.6.2.3.7. HOT LINE ROUTING

         4.6.2.3.7.1. The IN platform of the IGF shall support the "hot line"
         routing i.e. the forced routing of all mobile originated calls from a
         particular subscriber to a single destination.

         4.6.2.3.7.2. The IGF shall support the creation by ICO of such services
         via the service creation environment (SCE). A ready-made service script
         will not be included.

4.6.2.3.8. CALLER LIST

         4.6.2.3.8.1. The IN platform of the IGF shall support the "caller list"
         or "CLI mailbox" functionality i.e. the storage of the CLI for failed
         incoming call attempts in a CLI mailbox, and the subsequent
         interrogation of that mailbox by the subscriber.

         4.6.2.3.8.2. The IGF shall support the creation by ICO of such services
         via the service creation environment (SCE). A ready-made service script
         will not be included.

4.6.2.4. CHARGING SERVICES

4.6.2.4.1. PRE-PAID (DEBIT) SERVICE

         4.6.2.4.1.1. The IGF shall support the use of pre-paid SIM cards. This
         shall include the necessary service scripts and service management
         application.

         4.6.2.4.1.2. The following functions shall be included:

                  1.   the maintenance of the balance in real-time by the IGF

                  2.   the indication of a warning to the subscriber in the
                       event of a lack of pre-cleared funds

                  3.   the immediate disconnection of a connection when the
                       balance reaches zero

                  4.   the ability to check the B-number against screening lists

                  5.   usage of carrier access code.

4.6.2.4.2. PRIVATE CALLS

         4.6.2.4.2.1. The IGF shall support the use of two directory numbers for
         the same basic service, for business and private use respectively, in
         combination with a single subscription (IMSI).

         4.6.2.4.2.2. The CDRs collected by the IGF shall support the separate
         billing of the subscriber for business and private usage based on the
         number dialled.

         4.6.2.4.2.3. For mobile originated calls, the IGF shall permit the
         subscriber to determine to which of the two accounts (business/private)
         the call is to be billed and this shall be recorded in the appropriate
         CDRs.

         4.6.2.4.2.4. The IGF shall support the creation by ICO of such services
         via the service creation environment (SCE). A ready-made service script
         will not be included.

4.6.2.4.3. SPLIT BILLING

         4.6.2.4.3.1. The IGF shall support the Split Billing (SPL) service as
         defined in ITU-T Q.1211.

         4.6.2.4.3.2. The IGF shall support the creation by ICO of such services
         via the service creation environment (SCE). A ready-made service script
         will not be included.

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4.7. SUBSCRIPTION TO ICO SERVICES

4.7.1. GENERAL

         4.7.1.1. The IGF shall support the necessary subscriber profiles to
         permit the subscription to the services on offer within the ICO network
         and subscription checking prior to service usage. This shall include
         the subscriber profiles stored in the:

                  1.   home location register (HLR)

                  2.   authentication centre (AuC)

                  3.   intelligent network service control point (SCP) (F/R)

                  4.   messaging platform (VMS/SMSC). (OPTION)

         4.7.1.2. (Note: services such as "itemised billing" are a matter for
         post-processing and are outside the scope of this section.)

4.7.2. SUBSCRIPTION PROFILES IN THE HLR/VLR

         4.7.2.1. The HLR/VLR shall support the GSM standard profiles as defined
         in TS GSM 03.08 and TS GSM 12.02.

         4.7.2.2. The HLR shall support the subscription (provision/withdrawal)
         of each of the GSM basic and supplementary services on offer within the
         ICO network on an individual subscriber (IMSI) basis. This shall
         include each of the subscription options described in the applicable
         individual GSM technical specifications.

         4.7.2.3. The HLR and MSSC/VLR shall support the usage of PLMN (ICO)
         specific basic and supplementary services as defined in TS GSM 09.02.

         4.7.2.4. The HLR and MSSC/VLR shall support the extension of the
         subscriber profile transferred via the MAP protocol by means of the
         ellipsis ("...") notation as described in TS GSM 09.02.

         4.7.2.5. The IGF shall support the allocation of a basic or primary
         MSISDN. This MSISDN shall be transferred to the VLR from the HLR and
         employed for the purpose of calling line identification.

         4.7.2.6. The HLR and MSSC/VLR shall support the allocation of
         additional MSISDNs for different basic services and/or bearer
         capabilities and use in connection with mobile terminated services.
         This is the GSM "multi-numbering" method as defined in TS GSM 09.07.

         4.7.2.7. The HLR and MSSC/VLR shall support the subscription to the ICO
         specific services (HPN, language preference etc.) as described in the
         previous sections.

         4.7.2.8. The IGF shall support regional subscription on the basis of
         ICO defined service areas. The IGF shall support a minimum of 65,000
         service areas. These areas shall be non-uniform in size and freely
         configurable under ICO control.

         4.7.2.9. The service areas shall permit the ICO Service providers to
         offer their customers subscription choices ranging from:

                  1.   Global subscription;

                  2.   Regional subscription: limited to one or several of the
                       ICO-defined subscription areas;

                  3.   Fixed subscription: limited to a fixed geographic
                       location defined by a specific minimum sized service
                       area.

         4.7.2.10. Subscription with different tariff areas shall be possible
         for the above subscription choices.

         4.7.2.11. It shall be possible for the MSSC/VLR to deny mobile
         originated and mobile terminated service to a subscriber located
         outside the regional or fixed subscription area.

         4.7.2.12. The IGF shall also support regional charging i.e. the
         application of a different set of tariffs for services used whilst
         still roaming outside the local subscription area.

         4.7.2.13. The IGF shall be capable of providing an indication to the
         subscriber of the current coverage area. This shall include an out of
         area indication if the subscriber roams outside the local area.

         4.7.2.14. For those services based on in-band detection of modem and
         fax tones, a subscription to the basic telephony service shall be
         required. An explicit subscription to these services is not required.

         4.7.2.15. The HLR and VLR shall support the storage of intelligent
         network (IN) service profile information in the subscription profiles.

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4.7.3. SUBSCRIBER PROFILES IN THE IN PLATFORM (F/R)

         4.7.3.1. For those services provided by the ICONET Intelligent network
         platform, the IN SCP and service management function (SMAS) shall
         support the use of individual subscriber profiles.

         4.7.3.2. For individual profiles, the subscriber shall be identified by
         means of the MSISDN.

4.7.4. SUBSCRIBER PROFILES IN THE MESSAGING PLATFORM (OPTION)

         4.7.4.1. For those services provided by the ICONET messaging platform,
         the messaging platform shall support the use of individual subscriber
         profiles.

         4.7.4.2. For individual profiles, the subscriber shall be identified by
         means of one or more MSISDNs.

4.8. CELLULAR/SATELLITE ROAMING

4.8.1. GENERAL

         4.8.1.1. The IGF shall support roaming between the ICONET and the
         following types of cellular network

                  1.   networks employing GSM MAP (GSM 900/DCS 1800/PCS 1900)

                  2.   networks employing TIA IS.41 (AMPS/DAMPS/CDMA) (OPTION)

                  3.   networks employing TTC MAP (PDC 800/PDC 1500) (OPTION)

         4.8.1.2. The IGF shall support roaming in both directions i.e. from
         other networks to ICO, and from ICO to other networks in accordance
         with the table in Section 4.8.9.

4.8.2. ROAMING WITH IS.41 BASED NETWORKS (OPTION)

         4.8.2.1. For roaming between IS.41 based networks and ICONET an
         additional "roaming subscription" is required to map the identifiers
         and services employed within the home and visited network. The IGF
         shall support the provisioning of this additional service profile
         information.

         4.8.2.2. For roaming from IS.41 based networks to ICONET, the
         cellular/satellite interworking function of the IGF shall perform the
         functions of an IS.41 VLR towards the IS.41 network and the functions
         of a GSM HLR/AuC towards the ICONET.

         4.8.2.3. For roaming from ICONET to IS.41 based networks, the
         cellular/satellite interworking function of the IGF shall perform the
         functions of an IS.41 HLR/AuC towards the IS.41 network and the
         functions of a GSM VLR towards the ICONET.

         4.8.2.4. For roaming with IS.41 based networks, the IGF shall support
         interworking with cellular networks operating either IS.41 Revision C
         or IS.41 Revision B (both capabilities are required of the IGF).

4.8.3. ROAMING WITH PDC NETWORKS (OPTION)

         4.8.3.1. For roaming between TTC MAP based networks and ICONET an
         additional "roaming subscription" is required to map the identifiers
         and services employed within the home and visited network. The IGF
         shall support the provisioning of this additional service profile
         information.

         4.8.3.2. For roaming from PDC networks to ICONET, the
         cellular/satellite interworking function of the IGF shall perform the
         functions of a PDC GLR towards the PDC network and the functions of a
         GSM HLR/AuC towards the ICONET.

         4.8.3.3. In order to support the handling of roaming numbers and the
         routing of calls between PDC networks and the ICONET a switching
         function, the cellular/satellite gateway MSC (CS-GMSC), is also
         required. The cellular/satellite roaming function of the IGF shall
         include the required CS-GMSC functionality.

         4.8.3.4. For roaming with PDC based networks, the IGF shall support

                  1.   version 2 (1994) of the TTC MAP DMNI standard (TTC
                       JJ-70.10) (F/R)

                  2.   the proprietary Digital Tuka interface (DTIF).

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4.8.4. ROAMING WITH GSM BASED NETWORKS

4.8.4.1. ANONYMOUS GSM ROAMERS

         4.8.4.1.1. For roaming between GSM based networks and ICONET, the IGF
         shall support automatic and "anonymous" roaming i.e. roaming based on
         the service profile stored in the home network and without an explicit
         subscription to the visited network.

4.8.5. GENERIC ROAMING FUNCTIONS (OPTION, EXCEPT FOR GSM ROAMING)

4.8.5.1. NUMBERING, ADDRESSING AND IDENTIFICATION

         4.8.5.1.1. The IGF shall support the mapping between the different
         identifiers employed within the different networking standards for
         numbering, addressing and identification purposes. This shall include
         the mapping between:

                  1.   GSM IMSI/MSISDN and IS.41 MIN/ESN

                  2.   GSM IMSI/MSISDN and PDC MSN/MSI

         4.8.5.1.2. The cellular/satellite interworking functions shall be
         capable of handling any ITU-T E.212 compliant IMSI e.g. the use of the
         PDC MSI as an IMSI without the allocation of and mapping to an ICO IMSI

4.8.5.2. AUTHENTICATION

         4.8.5.2.1. In order to protect roamers from fraudulent misuse, the IGF
         shall support the use of authentication in all roaming cases.

         4.8.5.2.2. In cases where end-to-end authentication between the
         subscriber and the home HLR is not technically possible, the IGF shall
         at least support the use of authentication between the subscriber and
         the cellular/satellite interworking function employing the
         authentication procedures of the visited network.

4.8.5.3. LOCATION MANAGEMENT

         4.8.5.3.1. The IGF shall support the roaming functions required to
         ensure that the subscriber is reachable within each type of visited
         network. This shall include:

                  1.   location registration/update

                  2.   location cancellation

                  3.   deregistration i.e. purging of subscriber records in the
                       VLR (GLR)

         4.8.5.3.2. The IGF shall pass back each initial registration in a new
         network to the home network of the roaming subscriber.

         4.8.5.3.3. To avoid unnecessary signalling traffic, the IGF shall be
         capable of handling subsequent location updates, within the same
         network, without passing them back to the home network.

         4.8.5.3.4. For the PDC to ICO roaming case, the subsequent location
         updates will be handled through the home network.

4.8.5.4. ROUTING FOR MOBILE TERMINATED CALLS

         4.8.5.4.1. In order to support the optimal routing of mobile terminated
         calls, the IGF shall be capable of retrieving routing information from
         the location registers of both the cellular and ICO networks. This
         shall include the interrogation of the HLRs and the retrieval of
         routing numbers from the VLRs (GLRs for PDC).

         4.8.5.4.2. For roaming between ICO and IS.41, the IGF shall be capable
         of handling both GSM MSRNs and IS.41 routing numbers (TLDNs) and of
         converting between the two.

         4.8.5.4.3. For roaming between ICO and PDC the IGF shall be capable of
         handling the TTC MAP RON and of mapping the RON to a GSM MSRN and vice
         versa. Unlike GSM and IS.41, the TTC MAP RON is allocated on location
         registration and not on a call by call basis and this requires
         additional processing by the IGF.

4.8.5.5. TRANSFER OF SUBSCRIBER DATA

         4.8.5.5.1. The IGF shall be capable of retrieving subscriber profile
         information from HLRs of the home network and of downloading subscriber
         profile information to the VLRs (and GLRs in case of PDC roaming) of
         the visited network.

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         4.8.5.5.2. The IGF shall be capable of deleting the subscriber records
         from the VLR (GLR) on request by the HLR of the home network.

         4.8.5.5.3. The IGF shall also be capable of deleting the subscriber
         record from the VLR (GLR) of the visited network as a result of network
         management operations.

4.8.5.6. MAPPING OF SERVICE PROFILES

         4.8.5.6.1. As the services supported vary between the three cellular
         standards, the IGF shall be responsible for the mapping of services
         retrieved from the HLR onto their equivalent in the VLR (GLR) of the
         visited network.

         4.8.5.6.2. As a minimum, the following forms of service mapping shall
         be supported by the IGF:

                  1.   a direct mapping of compatible services (e.g. telephony)

                  2.   conversion of functional equivalents (e.g. GSM call
                       barring and IS.41 call delivery)

                  3.   the use of standard default values for those services not
                       present in the home system

                  4.   the extension of the profile received from the home HLR
                       to include additional services offered by the visited
                       network, this additional service information shall be
                       stored in the HLR components of the cellular/satellite
                       interworking functions of the IGF

4.8.5.7. SUPPLEMENTARY SERVICE MANAGEMENT

         4.8.5.7.1. The IGF shall support the MAP operations provided in each of
         the three cellular standards for the administration of supplementary
         services by the end user.

         4.8.5.7.2. For GSM networks the IGF shall include the operations
         required to support the following actions:

                  1.   registration/erasure

                  2.   activation/deactivation

                  3.   interrogation

                  4.   the setting of passwords

                  5.   unstructured supplementary service data (USSD)

         4.8.5.7.3. For IS.41 based networks the IGF shall support remote
         feature activation.

         4.8.5.7.4. In order to increase the transparency of the service to the
         end user, the IGF shall support, where possible, the MMI strings
         employed within the home network. For example, the MMI codes for call
         delivery (IS.41) should also be accepted within the ICO network and
         mapped onto the appropriate call restriction (barring) services. (F/R)

         4.8.5.7.5. For those networks supporting the management of
         services/features from fixed network terminals via DTMF, this feature
         shall also be supported by the IGF in case of cellular/satellite
         roaming.

4.8.5.8. SHORT MESSAGING

         4.8.5.8.1. The Short Message teleservice shall be supported in the
         IS.41 to ICO roaming case. (F/R)

         4.8.5.8.2. The ILR Shall support SMS Mobile Originated locally in the
         ILR for the IS.41 to ICO roaming case.

         4.8.5.8.3. The ILR shall support SMS Mobile Terminated locally within
         the ICO network for the IS.41 to ICO roaming case. If SMS Mobile
         terminated is to be supported an ICO MSISDN shall be used.

4.8.5.9. FAULT RECOVERY

         4.8.5.9.1. The IGF shall support the MAP operations provided in each of
         the three cellular standards for fault recovery e.g. HLR restart. This
         shall include the reception by the IGF of such fault recovery
         indications from the home and visited networks as well as the
         generation of such indications by the IGF in case of outage.

4.8.5.10. SECTION NOT USED

4.8.5.11. ADDITIONAL ICO HLR FUNCTIONALITY

         4.8.5.11.1. The GSM HLR/AuC components of the cellular/satellite
         interworking functions of the IGF shall include all of the
         functionality of a standalone ICO HLR/AuC including, but not limited
         to, the following:

                  1.   provisioning of HPN

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                  2.   vendor proprietary services and features for the IS.41
                       interworking unit:

                       a.   Immediate Call Itemisation Service

                       b.   Announcement Suppression at Call Rerouting (F/R)

                       c.   Transfer of Announcement Suppression Indicator to
                            HLR (F/R)

                       d.   Single Personal Number

                       e.   Ericsson Dual Numbering (ICO+GSM+two logical lines
                            handset is needed)

                       f.   Subscription Type (F/R)

                       g.   IMSI Changeover (F/R)

                       h.   MAP Policing in HLR (policing on addresses)

                       i.   Subscriber Priority Level for Channel Allocation

                       j.   Location Numbers (Regional and Local Subscription)

                  3.   vendor proprietary services and features for the PDC
                       interworking unit (F/R)

                  4.   intelligent network support (e.g. IN service class
                       marks/category keys)

                  5.   provisioning of other ICO specific services (F/R)

4.8.6. PROTOCOL SUPPORT

         4.8.6.1. The IGF shall support the following protocol stacks for
         cellular/satellite roaming:

                  1.   GSM MAP/ ITU-T TCAP/ ITU-T SCCP/ ITU-T MTP

                  2.   GSM MAP/ ITU-T TCAP/ ANSI SCCP/ANSI MTP (F/R)

                  3.   IS.41 MAP/ ANSI TCAP/ ITU-T X.25 (F/R)

                  4.   IS.41 MAP/ ANSI TCAP/ ANSI SCCP/ ANSI MTP (OPTION)

                  5.   IS.41 MAP/ ANSI TCAP/ ITU-T SCCP/ ITU-T MTP (F/R)

                  6.   IS.41 MAP/ ITU-T TCAP/ ITU-T SCCP/ ITU-T MTP (F/R)

                  7.   TTC MAP (DMNI)/ TTC TCAP/ TTC SCCP/ TTC MTP (OPTION)

                  8.   TTC MAP (DTIF)/ TTC TCAP/ TTC SCCP/ TTC MTP. (OPTION)

4.8.7. PROVISIONING FUNCTIONS (OPTION)

         4.8.7.1. The IGF shall provide an interface for the provisioning of the
         data held in the cellular/satellite interworking function via the ICO
         ADC.

         4.8.7.2. The IGF shall support both a transaction based interface for
         individual subscriber details as well as a bulk update (e.g. file
         transfer) mechanism for the transfer of data en masse. The PDC to ICO
         ILR will only support the interface for individual subscriber details.

         4.8.7.3. Each change to a subscriber profile, either locally or
         remotely, shall be logged by the IGF including details of the change.
         The PDC to ICO ILR will not support logging of the change.

4.8.8. NETWORK MANAGEMENT FUNCTIONS (OPTION)

4.8.8.1. FAULT MANAGEMENT

         4.8.8.1.1. The cellular/satellite interworking function of the IGF
         shall support the generation, logging and cancellation of alarms.

         4.8.8.1.2. The cellular/satellite interworking function of the IGF
         shall support an interface for the transfer of alarms to the ICO NMC.

4.8.8.2. PERFORMANCE MANAGEMENT

         4.8.8.2.1. The cellular/satellite interworking function of the IGF
         shall be capable of producing traffic measurements (e.g. peg counters)
         for both application level transactions and the lower layers e.g. MAP,
         TCAP, SCCP, MTP etc.

         4.8.8.2.2. The cellular/satellite interworking function of the IGF
         shall support an interface for the transfer of performance measurements
         to the ICO NMC.

4.8.8.3. CONFIGURATION MANAGEMENT

         4.8.8.3.1. The cellular/satellite interworking function of the IGF
         shall support an interface to the ICO NMC for the configuration of both
         the application and underlying layers (e.g. MAP, TCAP, SCCP, MTP).

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         4.8.8.4. SECURITY MANAGEMENT

         4.8.8.4.1. The downloading of authentication keys from the ICO ADC to
         the cellular/satellite interworking function of the IGF shall be
         performed in a secure manner i.e. encrypted.

         4.8.8.4.2. The IGF shall support both a transaction based interface for
         individual subscriber details as well as a bulk update (e.g. file
         transfer) mechanism for the transfer of data en masse.

         4.8.8.4.3. The storage of the keys within the cellular/satellite
         interworking function of the IGF shall also be in an encrypted form.

         4.6.8.4.4. The IGF shall prevent access by operator personnel to the
         secret key information held in the AuC component of the
         cellular/satellite interworking function.

4.8.9. AVAILABILITY OF PRODUCTS AND SERVICES TO ROAMING SUBSCRIBERS

         4.8.9.1. This table below describes the requirements on the IGF for the
         availability of products and services to roaming subscribers.

         KEY

         NA:      NOT APPLICABLE, NOT TECHNICALLY FEASIBLE

         Y:       REQUIRED

         N:       NOT REQUIRED

         F/R:     FUTURE REQUIREMENT

     TABLE 1-1 AVAILABILITY OF PRODUCTS AND SERVICES TO ROAMING SUBSCRIBERS

<TABLE>
<CAPTION>
================================================================================================================================
                   SERVICE OR FEATURE                             CELLULAR ROAMERS TO ICO             ICO ROAMERS TO CELLULAR
                                                                GSM        IS.41        PDC         ICO         ICO         ICO
                                                                 to          to          to          to          to          to
                                                                ICO         ICO         ICO         GSM        IS.41        PDC
                                                                            (OPT        (OPT                    (OPT        (OPT
                                                                            ION)        ION)                    ION)        ION)
--------------------------------------------------------------------------------------------------------------------------------
<S>                                                            <C>         <C>         <C>         <C>         <C>         <C>
TELESERVICES
SPEECH SERVICES
4.1.1.1 Telephony (TS 11)                                        Y           Y           Y           Y           Y
4.1.1.2 Emergency calls (TS 12)                                  Y           Y           Y           Y         NA(1)
SHORT MESSAGE SERVICES (SMS)
4.1.2.1 Mobile Terminated SMS (TS 21)                            Y         Y (2)        F/R          Y           N
4.1.2.1 Mobile Originated SMS (TS 22)                            Y         Y (2)        F/R          Y           N
FACSIMILE SERVICES (UP TO 9600 bps)
4.1.3.1 Automatic fax group 3 (TS 62)                            Y         Y (3)       Y (3)         Y          Y(4)
4.1.3.3 Alternate speech and fax group 3 (TS 61                  Y         Y (5)        F/R          Y           NA
4.1.3.4 Alternate speech/fax - inband detection                  Y           Y           Y           NA          Y
FACSIMILE SERVICES, HIGH SPEED BEARERS (HSCSD)
4.1.3.2 Fax group 3 up to 14.4 kbps                            Y (6)       Y (7)       Y (7)       Y (6)         NA
BEARER SERVICES
CIRCUIT SWITCHED DATA (UP TO 9600 bps)
4.2.1 Data circuit duplex asynchronous (BS 2x)                   Y         Y (7)       Y (7)         NA          NA
4.2.1 Data circuit duplex synchronous (BS 3x)                    Y         Y (7)       Y (7)         NA          NA
4.2.3 Alternate Speech/Data - inband detection                   Y           Y           Y           NA          Y
HIGH SPEED CIRCUIT-SWITCHED DATA (UP TO 38.4 kbps)
4.2.2 General data circuit duplex asynch. (BS 20)              Y (6)       Y (7)       Y (7)       Y (6)         NA
4.2.2 General data circuit duplex asynch. (BS 20)              Y (6)       Y (7)       Y (7)       Y (6)         NA
SUPPLEMENTARY SERVICES
CALL OFFERING SUPPLEMENTARY SERVICES
4.3.3.1 Call Forwarding Unconditional (CFU)                    Y (20)      Y (20)      Y (20)        Y           Y
4.3.3.2 Call Forwarding on Mobile Subscriber Busy (CFB)          Y         Y (9)        F/R          Y         Y (9)
4.3.3.3 Call Forwarding on Mobile Not Reachable (CFNRc)          Y         Y (9)        F/R          Y           N
4.3.3.4 Call Forwarding on No Reply (CFNRy)                      Y         Y (9)        F/R          Y         Y (9)
CALL COMPLETION SUPPLEMENTARY SERVICES
4.3.4.1 Call Waiting (CW)                                        Y           Y          F/R          Y           Y
</TABLE>

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<TABLE>
<CAPTION>
================================================================================================================================
                   SERVICE OR FEATURE                             CELLULAR ROAMERS TO ICO             ICO ROAMERS TO CELLULAR
                                                                GSM        IS.41        PDC         ICO         ICO         ICO
                                                                 to          to          to          to          to          to
                                                                ICO         ICO         ICO         GSM        IS.41        PDC
                                                                            (OPT        (OPT                    (OPT        (OPT
                                                                            ION)        ION)                    ION)        ION)
--------------------------------------------------------------------------------------------------------------------------------
<S>                                                            <C>         <C>         <C>         <C>         <C>         <C>
4.3.4.2 Call Hold (HOLD)                                         Y         Y (8)        F/R          Y           Y
NUMBER IDENTIFICATION SUPPLEMENTARY SERVICES
4.3.2.1 Calling Line Identification Presentation (CLIP)          Y         Y (10)       F/R          Y         Y (10)
4.3.2.2 Calling Line Identification Restriction (CLIR)           Y         Y (10)       F/R          Y         Y (10)
4.3.2.3 Connected Line Identification Presentation (COLP)        Y         Y (11)       F/R          NA          NA
4.3.2.4 Connected Line Identification Restriction (COLR)         Y         Y (11)       F/R          NA          NA
MULTI-PARTY SUPPLEMENTARY SERVICES
4.3.5.1 Multi Party Service (MPTY)                               Y           Y          F/R          Y           Y
CLOSED USER GROUP SUPPLEMENTARY SERVICES
4.3.6.1 Closed User Group (CUG)                                  Y           NA          NA          Y           NA
CHARGING SUPPLEMENTARY SERVICES
4.3.8.1 Advice of Charge Information (AoCI)                    N (12)        NA          NA        N (12)        NA
4.3.8.2 Advice of Charge Charging (AoCC)                       N (12)        NA          NA        N (12)        NA
CALL RESTRICTION SUPPLEMENTARY SERVICES
4.3.7.1 Barring of All Outgoing Calls (BAOC)                     Y           Y          F/R          Y           Y
4.3.7.2 Barring of All Incoming Calls (BAIC)                     Y         Y (22)       F/R          Y           Y
4.3.7.3 Barring of Outgoing International Calls (BOIC)         Y (14)      Y (13)       F/R          Y         Y (13)
4.3.7.4 Barring of Outgoing International Calls. except        Y (15)      Y (11)       F/R          Y           NA
those directed to the Home Country (BOICexHC)
4.3.7.5 Barring of Incoming Calls when Roaming Outside         Y (16)      Y (22)       F/R          Y           NA
the Home Country (BIC-Roam)
UNSTRUCTURED SUPPLEMENTARY SERVICE DATA (USSD)
4.3 Unstructured supplementary service data (USSD)               Y         Y (11)       F/R          Y           NA
ICO SPECIFIC SERVICES
4.4.1 High Power Notification (HPN)                            N (17)      Y (11)      Y (11)        NA          NA
4.4.2 ICO Dual numbering                                       N (17)      Y (11)      Y (11)        NA          NA
4.4.3 Natural language support                                 N (17)       F/R         F/R          NA          NA
MAIL AND MESSAGING SERVICES
4.5.6 Mailbox access and retrieval                             Y (18)      Y (18)       F/R        Y (18)      Y (18)
4.5.7 Mailbox notification                                     Y (19)      Y (19)       F/R        Y (19)      Y (19)
ADVANCED SERVICES
4.6.2.2.1 Virtual Private Networks (VPN)                       Y (17)        Y           Y           Y           Y
4.6.2.3.1 Advanced call forwarding                             N (17)      Y (21)      Y (21)        NA          NA
4.6.2.3.2 Advanced call barring                                N (17)      Y (21)      Y (21)        NA          NA
4.6.2.3.3 Originating call screening                           N (17)      Y (21)      Y (21)        NA          NA
4.6.2.3.4 Terminating call screening                           N (17)      Y (21)      Y (21)        NA          NA
4.6.2.3.5 Location dependent routing                           N (17)      Y (21)      Y (21)        NA          NA
4.6.2.3.6 Personal number                                      N (17)      Y (21)      Y (21)        NA          NA
4.6.2.3.7 Hot line routine                                     N (17)      Y (21)      Y (21)        NA          NA
4.6.2.3.8 Caller list                                          N (17)      Y (21)      Y (21)        NA          NA
4.6.2.4.1 Pre-paid (debit) service                               NA          NA          NA          NA          NA
4.6.2.4.2 Private calls                                        N (17)      Y (21)      Y (21)        NA          NA
4.6.2.4.3 Split billing                                        N (17)      Y (21)      Y (21)        NA          NA
</TABLE>

         Notes:

    1.   Although the GSM emergency call service will not be available in PDC
         and IS.41 networks, this does not prevent the subscriber from dialling
         an emergency access code in such networks. However, this call will be
         treated as a normal telephony call i.e. with no prioritised access on
         the air-interface.

    2.   End-to-end support for SMS is not provided. However, roamers to ICO may
         be provisioned with SMS in the CS-IWF allowing them to send and receive
         SMS on ICO via an ICO MSISDN.

    3.   Roamers from IS.41 and PDC networks may employ GSM fax services from
         within the ICO network. However, delivery of fax calls from their home
         networks via their home cellular networks is not supported.

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    4.   Roamers from ICO to IS.41 networks may employ local fax services within
         the serving network. However, delivery of fax calls from the ICO
         network via ICO fax MSISDNs (multi-numbering) is not supported.

    5.   Roamers from IS.41 and PDC networks may employ the GSM alt. speech/fax
         service from within the ICO network, but this requires the allocation
         of additional ICO MSISDNs IN THE CS-IWF.

    6.   Subject to support of HSCSD by the GSM network.

    7.   Roamers from IS.41 and PDC networks may employ local GSM data services
         within the ICO network by the allocation of an ICO MSISDN. However,
         delivery of data calls from the home network and via the home cellular
         number is not supported.

    8.   Supported locally in the CS-IWF, not end-to-end.

    9.   It may not be possible to support conditional call forwarding services
         when roaming between ICO and IS.41 networks. This depends on the
         capability of the individual IS.41 networks.

    10.  Proprietary solution depending on the IS.41 extensions supported.

    11.  Supported locally in the CS-IWF, not present in the home network.

    12.  Advice of charge is not supported for roaming subscribers.

    13.  The IS.41 and GSM services are not equivalent, some differences in
         service delivery are inevitable e.g. IS.41 supports barring of all
         calls outside world zone 1 (i.e. North America) rather than barring of
         all international calls.

    14.  The interpretation of barring of all outgoing international calls
         within the ICO network shall be all calls to destinations with country
         codes other than ICO.

    15.  The interpretation of BOIC-exHC within the ICO network shall be based
         on home PLMN and not home country.

    16.  The interpretation of BIC-roam within the ICO network shall be barring
         of all incoming calls whilst roaming outside the home PLMN (i.e. not
         home country).

    17.  The provisioning of this service requires a CS-IWF for GSM to ICO
         roaming. (OPTION)

    18.  Mail and messaging services will normally be provided by the home
         network. However, it shall be possible to provide ICO mailboxes to
         roaming subscribers.

    19.  The form of notification used may vary from network to network e.g.
         for those networks not supporting SMS a voice call notification may be
         used.

    20.  The support of this service depends on its provisioning by the home
         network.

    21.  The CS-IWF supports the storage of the IN classmark/key information, it
         does not provide the actual IN service.

    22.  This service is only supported in case of ICO dual numbering and for
         calls delivered via the ICO MSISDN.

4.9. OTHER VALUE-ADDED SERVICES

         4.9.1. The IGF shall support the routing of calls to/from value added
         services centres located within the ICONET.

         4.9.2. The IGF will support the usage of short code dialling for access
         to individual services.

         4.9.3. In order to support the usage of multiple regional service
         centres, the IGF shall support the routing of service calls based on
         both the short code dialled and location (service area) of the UT.

4.10. SPECIALISED TERMINALS

4.10.1. MULTICHANNEL TERMINALS (F/R)

         4.10.1.1. The IGF shall support the usage of a single location update
         by the multi-channel terminal on behalf of all of the subscribers
         currently attached to it.

4.10.2. SEMI-FIXED TERMINALS

         4.10.2.1. The IGF shall support the usage of semi-fixed user terminals
         for the purpose of local loop replacement, remote PABX and remote
         payphone applications. The IGF requirements to support these terminals
         are in other sections of this document, in particular Section 4.7.2.

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5. ADMINISTRATION AND SUPPORT SERVICES

5.1. BILLING SERVICES

5.1.1. CALL DETAIL RECORDING IN THE MSSC

5.1.1.1. CALL DETAIL RECORD GENERATION

5.1.1.1.1. RECORD TYPES

         5.1.1.1.1.1. The IGF shall support the generation of call detail and
         event records (CDRs) for the following events, as defined in TS GSM
         12.05:

                  1.   mobile originated call

                  2.   mobile originated emergency call

                  3.   mobile originated, call forwarding

                  4.   mobile terminated call

                  5.   roaming call component in a gateway MSSC

                  6.   transit call attempt (including calls to PABXs and
                       service centres which are seen as external nodes)

                  7.   supplementary service actions

                  8.   mobile originated SMS in the VMSSC

                  9.   mobile terminated SMS in the VMSSC

                  10.  mobile originated SMS in the SMS-IWMSC

                  11.  mobile terminated SMS in the SMS-GMSC.

         5.1.1.1.1.2. For intelligent network calls, the IGF shall also support
         the generation of the following CDR types:

                  1.   incoming IN call (F/R)

                  2.   outgoing IN call (F/R)

                  3.   transit IN call (F/R)

         5.1.1.1.1.3. The IGF shall support the generation of the following ICO
         specific charging information:

                  1.   HPN invocation

                  2.   legal interception in the VMSSC (treated as a multiparty
                       call, so a CDR for the call is generated. No extra CDR
                       for legal interception in the MSSC. This case is treated
                       as a multiparty call so a relative CDR is generated).

         5.1.1.1.1.4. The IGF shall support the generation of partial call
         records for the following cases;

                  1.   The call duration has reached a limit, which is set by an
                       exchange parameter

                  2.   The number of call related events has reached a limit,
                       which is set by an exchange parameter.

                  3.   A C7 charging message CHT, is received from a superior
                       exchange.

         5.1.1.1.1.5. It shall be possible to generate call data records for
         call attempts. In particular, call data records can be generated for:

                  1.   calls receiving BUSY, CONGESTION or any other End Of
                       Selection state

                  2.   calls that reach through-connection

                  3.   calls that reach B-answer.

         5.1.1.1.1.6. The partial record timer employed by the IGF shall be
         configurable via the setting of exchange data and/or network management
         command.

         5.1.1.1.1.7. The IGF shall support the suppression of individual CDR
         types via the setting of exchange data and/or network management
         command.

5.1.1.1.2. RECORD CONTENT

         5.1.1.1.2.1. The content of each of the standard GSM CDR types
         generated by the IGF shall be equivalent to the record fields of the
         corresponding record types defined in TS GSM 12.05.

         5.1.1 1.2.2. The IGF shall support the configuration of the record
         fields of the individual CDR types via the setting of exchange data
         and/or network management command.

         5.1.1.1.2.3. In addition to the standard location information in a GSM
         CDR (e.g. Cell Identity = ICO service area), the CDRs produced by the
         IGF shall also include the position of the UT at call set-up in the
         form of latitude, longitude and accuracy index.

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         5.1.1.1.2.4. The mobile station RF power and frequency capability of
         the mobile station classmark and the radio channel requested/used (e.g.
         full rate/half rate etc.) employed by the IGF shall be output in the
         CDR.

         5.1.1.1.2.5. The IGF shall employ ISO standard universal co-ordinated
         time (UTC time) for all date and time information stored in the CDRs.

         5.1.1.1.2.6. The MT CDR produced by the IGF shall be accompanied by the
         presentation/screening indicators received during the call set-up (see
         TS GSM 12.05 for further details).

         5.1.1.1.2.7. The storage of directory numbers in the CDRs produced by
         the IGF shall be accompanied by the appropriate "type of number" and
         "number plan" information elements received during the call set-up.

         5.1.1.1.2.8. The CDRs produced by the IGF to record the invocation of
         the HPN service shall include the following information:

                  1.   IMSI

                  2.   MSISDN

                  3.   Basic service code

                  4.   date and time

                  5.   HPN priority.

         5.1.1.1.2.9. The CDRs produced by the IGF to record the use of high
         speed fax/data services shall include the number of traffic channels
         (i.e. air-interface slots) allocated to the connection. Any change in
         the number of channels allocated during the call shall also be recorded
         and time-stamped.

5.1.1.2. CALL DETAIL RECORD STORAGE AND SUPERVISION

         5.1.1.2.1. The IGF shall store the CDRs locally in a non-volatile CDR
         filestore and in a redundant configuration e.g. mirror disks.

         5.1.1.2.2. The availability of the call detail recording function shall
         be sufficient to ensure that the probability of loss of any CDR does
         not exceed 1 in 10 million records.

         5.1.1.2.3. The capacity of the CDR filestore shall be sufficient to
         permit the continuous storage of CDRs by the IGF for a period of 72
         hours without transfer to the ADC and without loss of data.

         5.1.1.2.4. The IGF shall monitor the occupancy of the CDR filestore.

         5.1.1.2.5. The IGF shall support the use of occupancy thresholds and
         the generation of the associated alarm.

         5.1.1.2.6. The IGF shall support the configuration of the CDR filestore
         thresholds via network management command.

5.1.1.3. CALL DETAIL RECORD TRANSFER

         5.1.1.3.1. The IGF shall support the following forms of CDR transfer
         between the network elements and the ADC:

                  1.   electronic file transfer (e.g. FTAM)

                  2.   immediate record transfer ("hot billing")

                  3.   backup to secondary storage.

         5.1.1.3.2. In order to provide an adequate audit trail, each CDR file
         transferred by the IGF shall be allocated a unique sequence number.

         5.1.1.3.3. In order to ensure that no data is lost, the IGF shall
         include the size of the file in the information provided for each
         transfer.

         5.1.1.3.4. The IGF shall be capable of transferring CDR files at
         intervals of 15 minutes or less.

         5.1.1.3.5. In case of immediate record transfer, the IGF shall transfer
         the individual call records immediately after the event being recorded,
         or the release of a connection that is being recorded.

         5.1.1.3.6. The transfer by the IGF of individual CDRs to the ADC shall
         be completed in less than 1 minute, excluding transmission time, when
         immediate record transfer is used.

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5.2. PROVISIONING SERVICES

5.2.1. SUBSCRIBER ADMINISTRATION IN THE HLR

         5.2.1.1. The IGF shall support the management functions required for
         the administration of subscriber data in the HLR, as defined in TS GSM
         12.02. This shall include the functions required for the administration
         of the following:

                  1.   directory numbers

                  2.   service provision

                  3.   basic and supplementary services

                  4.   regional subscription zones

                  5.   bearer capability allocations.

         5.2.1.2. The IGF shall also include the management functions required
         for the administration of the ICO specific services described above
         (e.g. HPN, language preference etc.).

         5.2.1.3. The IGF shall also include the management functions required
         for the administration of Ericsson proprietary services.

         5.2.1.4. The IGF shall support a remote provisioning interface from the
         HLR to the ICO ADC. The supplier shall provide full details of this
         interface including physical interconnection to the DCN, protocol
         stacks employed and application data units/MML command syntax.

         5.2.1.5. In addition to the handling of individual transactions on a
         per subscriber basis, the IGF provisioning interface shall also include
         a bulk update mechanism (e.g. file transfer) for the updating of HLR
         data en masse.

5.2.2. SUBSCRIBER ADMINISTRATION IN THE CELLULAR/SATELLITE INTERWORKING FUNCTION
(CS-IWF) (OPTION)

         5.2.2.1. The IGF shall provide a provisioning interface to the GSM HLR
         component of the cellular-satellite interworking function (CS-IWF) that
         is functionally identical to that provided for a standalone HLR and
         which is compliant with each of the provisioning requirements on the
         ICO HLR stated in Section 5.2.1 "Subscriber administration in the HLR."

         5.2.2.2. For the IS.41 variant of the CS-IWF, the IGF shall provide a
         provisioning interface to the IS.41 HLR component of the CS-IWF which
         is functionally identical to that provided for a standalone IS.41 HLR.

         5.2.2.3. For the PDC variant of the CS-IWF, the IGF shall provide a
         provisioning interface to the PDC HLR component of the CS-IWF which is
         functionally identical to that provided for a standalone PDC HLR.

         5.2.2.4. For the IS.41 variant of the CS-IWF, the IGF shall provide a
         provisioning interface to the IS.41/ICO interworking component of the
         CS-IWF for the administration of the roaming subscription including:

                  1.   the mapping of services between the IS.41 and ICO
                       environment

                  2.   the mapping of numbers and identifiers, i.e. MIN/ESN {=}
                       IMSI/MSISIDN.

         5.2.2.5. For the PDC variant of the CS-IWF, the IGF shall provide a
         provisioning interface to the PDC/ICO interworking component of the
         CS-IWF for the administration of the roaming subscription including:

                  1.   the mapping of services between the PDC and ICO
                       environment

                  2.   the mapping of numbers and identifiers i.e. MSI/MSN {=}
                       IMPS/MSISDN.

         5.2.2.6. (F/R) For the GSM/ICO variant of the CS-IWF, the IGF shall
         provide a provisioning interface to the roaming subscription including:

                  1.   the mapping services between the GSM and ICO environment

                  2.   the administration of ICO dual numbering.

5.2.3. SUBSCRIBER ADMINISTRATION IN THE MESSAGING PLATFORM (OPTION)

         5.2.3.1. The IGF shall support the management functions required for
         the administration of subscriber and data in the Messaging Platform.

         5.2.3.2. The IGF shall support a remote provisioning interface from the
         messaging platform to the ICO ADC. The supplier shall provide full
         details of this interface including physical interconnection to the
         DCN, protocol stacks employed and application data units/MML command
         syntax.

         5.2.3.3. In addition to the handling of individual transactions on a
         per subscriber basis, the IGF provisioning interface shall also include
         a bulk update mechanism (e.g. file transfer) for the updating of
         messaging platform data en masse.

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5.2.4. SUBSCRIBER ADMINISTRATION IN THE SERVICE CONTROL POINT (SCP) (F/R)

         5.2.4.1. The IGF shall support the management functions required for
         the administration of subscriber and service data in the SCP via the
         Service Management Point (SMP).

         5.2.4.2. The IGF shall support a remote provisioning interface from the
         SMAS/SCP to the ICO ADC. The supplier shall provide full details of
         this interface including physical interconnection to the DCN, protocol
         stacks employed and application data units/MML command syntax.

         5.2.4.3. In addition to the handling of individual transactions on a
         per subscriber basis, the IGF provisioning interface shall also include
         a bulk update mechanism (e.g. file transfer) for the updating of SCP
         data en masse.

5.2.5. ADMINISTRATION OF SECRET KEYS IN THE AUTHENTICATION CENTRE (AuC)

         5.2.5.1. The IGF shall support the management functions required for
         the administration of subscriber data in the authentication centre
         (AuC) as defined in TS GSM 12.02, This shall include the administration
         of the following:

                  1.   IMSI

                  2.   subscriber authentication key (K[1]).

         5.2.5.2. The IGF shall support a secure remote provisioning
         (pre-personalisation) interface from the AuC to the ICO ADC. The
         supplier shall provide full details of this interface including
         physical interconnection to the DCN, protocol stacks employed and
         application data units/MML command syntax.

         5.2.5.3. In addition to the handling of individual transactions on a
         per subscriber basis, the IGF provisioning interface shall also include
         a bulk update mechanism (e.g. file transfer) for the updating of AuC
         data en masse.

         5.2.5.4. The IGF shall support the encryption of all data exchanged on
         the interfaces to the AuC.

         5.2.5.5. The IGF shall ensure that all data held in the AuC is stored
         in encrypted form.

5.2.6. ADMINISTRATION OF SECRET KEYS IN THE CELLULAR/SATELLITE INTERWORKING
FUNCTION (CS-IWF) (OPTION)

5.2.6.1. GSM AuC COMPONENT

         5.2.6.1.1. The IGF shall provide a provisioning interface to the GSM
         AuC component of the CS-IWF that is functionally identical to that
         provided for a standalone GSM AuC and that is compliant with each of
         the provisioning requirements on the AuC stated above.

         5.2.6.1.2. The IGF shall support the encryption of security related
         data (keys) exchanged on the interface to the AuC component of the
         CS-IWF.

         5.2.6.1.3. The IGF shall ensure that all security related data (keys)
         held in the AuC component of the CS-IWF is stored in encrypted form.

5.2.6.2. IS.41 AuC COMPONENT

         5.2.6.2.1. For the IS.41 variant of the CS-IWF, the IGF shall provide a
         provisioning interface to the IS.41 AuC component of the CS-IWF that is
         functionally identical to that provided for an IS.41 AuC.

         5.2.6.2.2. The IGF shall support the encryption of all security related
         data (A-key) exchanged on the interfaces to the AuC component of the
         CS-IWF.

         5.2.6.2.3. The IGF shall ensure that all security related data (A-key)
         held in the AuC component of the CS-IWF is stored in encrypted form.

5.2.6.3. PDC AuC FUNCTIONALITY

         5.2.6.3.1. For the PDC variant of the CS-IWF, the IGF shall provide a
         provisioning interface for authentication data to the CS-IWF that is
         functionally identical to that provided for a standalone PDC HLR.

5.3. MOBILE EQUIPMENT MONITORING

5.3.1. The IGF shall include an Equipment Identity Register (EIR) function for
the monitoring of mobile equipment (UTs) based on their IMEIs.

5.3.2. The EIR function provided by the IGF shall include the administration of
the following equipment lists as defined in TS GSM 02.16 and TS GSM 12.02:

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                  1.   white list

                  2.   grey list

                  3.   black list.

         5.3.3. The IGF shall support both the updating of individual list
         entries and the replacement of complete lists.

         5.3.4. The IGF shall support the exchange of equipment lists with other
         cellular operators via the GSM MoU Central EIR (CEIR) in Dublin and in
         accordance with GSM MoU PRD TD.18 and TD.19. (F/R)

         5.3.5. Inter-operability for EIR function across cellular standards is
         not supported.

5.4. CUSTOMER CARE AND OPERATOR SUPPORT

5.4.1. GENERAL

         5.4.1.1. The IGF shall support the connection of customer help desks
         and customer care centres. This shall include the routing of calls
         to/from these centres via the MSSC.

5.4.2. OPERATOR DETERMINED BARRING (ODB)

         5.4.2.1. The IGF shall support operator determined barring as defined
         in TS GSM 02.41.

         5.4.2.2. The disconnection of an ongoing call as a result of the
         application of ODB is not supported.

         5.4.2.3. The IGF shall support operator determined barring of
         supplementary services management.

5.4.3. OPERATOR CONTROLLED DIVERSION

         5.4.3.1. The system shall support the diversion of incoming calls using
         the default call forwarding service. The default call forwarding
         service can be applied to a specific basic service or to all basic
         services.

         5.4.3.2. The use by the operator of the barring of SS management, shall
         prevent the subscriber from overriding the controlled diversion.

         5.4.3.3. The system shall support the diversion of outgoing calls for a
         specific subscriber.

         5.4.3.4. The operator shall be able to manage the controlled diversion
         for incoming/outgoing calls via the ICO ADC.

5.4.4. SUBSCRIBER SPECIFIC ANNOUNCEMENTS

         5.4.4.1. It shall be possible to forward both incoming and outgoing
         calls to a subscriber specific announcement, for example, an
         announcement of the termination of service (TOS), or a changed number
         interception announcement (CNI).

         5.4.4.2. It shall also be possible to provide a pre-connection
         announcement on an individual subscriber basis during the set-up phase
         of the connection. (F/R)

5.4.5. SUBSCRIBER TRACING

         5.4.5.1. The IGF shall support call path tracing as defined in document
         WG360003.

         5.4.5.2. Subscriber tracing will be implemented in R7 of the Ericsson
         CME 20 software but is not included in the current offer. The R7
         Ericsson subscriber tracing feature will be based on GSM TS 12.08, but
         with the following exceptions (F/R):

                  1.   Only 'basic' MSC record types to be implemented

                  2.   No output of trace data in non-anchor MSC

                  3.   Output of main MSISDN (instead of served MSISDN)

                  4.   The following 'basic' trace data are not output:

                         a) translated number

                         b) roaming number

                         c) AoC parameters

                  5.   No IMEI trace supported

                  6.   No trace output in HLR

5.5. FRAUD MANAGEMENT SERVICES

         5.5.1. The system shall support the following fraud detection
         mechanisms.

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         5.5.2. The ability to detect the presence of long-hold calls and
         provide information to the system operator indicating the presence of a
         long held call. The system shall also support the ability for the
         system operator to manually clear a long held call.

         5.5.3. The ability to flag when a particular service has one or more
         calls diverted and provide this information to the operator.

         5.5.4. For the above mechanisms:

                  1.   The MSSC shall collect the required information on a call
                       by call basis.

                  2.   The MSSC/VLR shall generate alarms in the case of unusual
                       activity (e.g. long call times, etc.) and distribute and
                       present these to the NMC operator via the Network
                       Management System (NMS) for possible processing under the
                       Fraud Management procedures. The NMC shall aggregate the
                       data and provide the reporting mechanism to the operator.

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6. GENERIC SYSTEM FUNCTIONS

6.1. NUMBERING, ADDRESSING AND IDENTIFICATION

6.1.1. INTERNATIONAL MOBILE SUBSCRIBER IDENTIFICATION

         6.1.1.1. Each subscriber accessing the ICO network shall be identified
         and authenticated by means of a unique International Mobile Station
         Identification (IMSI) as defined in TS GSM 03.03 (see also emergency
         call handling).

         6.1.1.2. The IGF shall support both ICO assigned IMSIs and those
         allocated by terrestrial cellular networks with whom ICO has a valid
         roaming agreement (i.e. for those networks with entries in the global
         mobile title translation routing tables).

         6.1.1.3. For home subscribers to the ICO network, the IGF shall employ
         the IMSI to identify and communicate with the home location register
         (HLR).

         6.1.1.4. For roaming subscribers from GSM compatible networks, the IGF
         shall employ the IMSI to identify and communicate with the HLR of the
         home network via global mobile title translation as defined in both TS
         GSM 03.03 and ITU-T E.214.

         6.1.1.5. For those subscribers with a roaming subscription in an ICO
         Cellular/Satellite Interworking function (e.g. an ILR), the IGF shall
         employ the IMSI to identify and communicate with the HLR component of
         that interworking function. (OPTION)

         6.1.1.6. The IMSI shall be recorded in each of the call detail and
         event records produced by the IGF.

6.1.2. MOBILE STATION INTERNATIONAL ISDN NUMBERS

         6.1.2.1. In order to support the routing of incoming calls to mobile
         subscribers, it shall be possible to assign one or more Mobile Station
         ISDN numbers (MSISDNs), as defined in TS GSM 03.03, to each of the home
         subscribers of the ICO network.

         6.1.2.2. The IGF shall support the use of multiple numbering plans
         including, but not limited to, the following: ITU-T E.164, ITU-T X.121,
         private numbering; as defined in TS ICO 04.08 and TS GSM 09.02.

         6.1.2.3. The IGF shall support both GSM single and multi-numbering as
         defined in TS GSM 09.07.

         6.1.2.4. The IGF shall support the "ICO dual-numbering" feature (see
         Section 4). (OPTION)

         6.1.2.5. ICO allocated MSISDNs shall be employed by the IGF to identify
         and interrogate the home location register (HLR), or cellular/satel-
         lite interworking function (e.g. ILR), in order to route the call to
         the current location of the subscriber.

         6.1.2.6. In order to support the replacement of a lost/stolen SIM, it
         shall be possible to transfer one or more existing MSISDNs to a new
         IMSI.

         6.1.2.7. MSISDNs allocated by cellular networks shall be employed by
         the IGF to route the call to the home network.

         6.1.2.8. The IGF shall support the display/suppression of the MSISDNs
         of individual subscribers in order to provide the line identification
         services described above.

         6.1.2.9. Position based support of national PSTN number plan is not
         supported.

6.1.3. MOBILE STATION ROAMING NUMBERS

         6.1.3.1. For calls to subscribers registered within the ICO network,
         the IGF shall be capable of allocating a Mobile Station Roaming Number
         (MSRN) as defined in TS GSM 03.03.

         6.1.3.2. The allocation of an MSRN by the MSSC shall be performed on a
         temporary, call-by-call basis, as defined in TS GSM 09.07.

         6.1.3.3. The IGF shall be capable, via digit analysis, of
         differentiating between ICO assigned MSISDNs and MSRNs

         6.1.3.4. The IGF shall employ the MSRN to route an incoming call to the
         MSSC/VLR that allocated the MSRN.

6.1.4. INTERNATIONAL MOBILE EQUIPMENT IDENTITY

         6.1.4.1.Each mobile equipment (UT) accessing the ICO network shall be
         identified by means of a unique International Mobile Equipment Identity
         (IMEI) as defined in TS GSM 03.03 and TS GSM 02.16.

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         6.1.4.2. The IMEI, where available, shall be recorded in each of the
         call detail and event records produced by the IGF.

         6.1.4.3. The IGF shall employ the IMEI for IME1 checking.

6.2. RADIO CONNECTIVITY BETWEEN USER TERMINALS SATELLITES AND SANS

         6.2.1. Each SAN shall be able to communicate with up to 4 satellites,
         provided those satellites are 5 degrees elevation or above, without
         interruption during the duration of a satellite pass subject to
         adequate signal propagation between SAN and satellite.

         6.2.2. The SRMC shall make BTFPs (burst time frequency plans) for
         control and dedicated channels for the SANs for all satellite spot
         beams, subject to satellite positioning and equipment resources at each
         individual SAN.

         6.2.3. The SRMC shall make BTFPs (burst time frequency plans) for
         dedicated channels for all the SANs such that the IGF can access each
         satellite in every spot beam to take into account the designed portion
         of diversity.

         6.2.4. Where a satellite spot-beam is visible to a UT and a SAN has
         resources to provide control and dedicated channels to that spot beam,
         and satellite spectrum and power is available, the IGF shall provide
         the capability for the UT to register, and to connect a mobile
         originated call.

         6.2.5. The SIBS shall be able to use the frequencies assigned by the
         SRMC.

         6.2.6. The IGF shall provide the capability to alert a UT, and to
         connect a mobile terminated call to a UT where a satellite spot beam
         covers the UT's stored last registered position (SLRP), subject to the
         conditions stated above.

         6.2.7. The SIBS shall provide the capability to connect a mobile
         originated, or a mobile terminated, call to a UT via a pair of
         satellites (diversity) where spot beams from both satellites are
         visible to the UT and both spot beams have pre-allocated dedicated
         channels provided by the same SAN.

         6.2.8. The SIBS and TNM shall provide the capability to maintain
         continuous connection of every phase of a call to/from a UT provided
         the LIT remains in the visibility of any spot-beam and subject to the
         conditions stated above. When the LIT is in coverage of two or more
         satellites which are also in coverage of specific SAN and spectrum and
         equipment resources are available, continuous diversity connection
         shall be provided.

         6.2.9. The HPN subsystem shall provide the capability to send HPN
         messages to a UT via the appropriate spot beam of any satellite
         covering the UT's location.

         6.2.10. The SRMC and SIBS shall, for the purposes of frequency planning
         and paging, assume that a satellite can be used by a UT at elevation
         angles of 0 degrees or higher. Whether or not communication between the
         UT and the satellite is possible at any satellite elevation angle is
         subject only to adequate signal propagation between the UT and
         satellite.

6.3. PSTN/ISDN/PLMN INTERCONNECTION

         6.3.1. For IGF Interconnection to international and national PSTN
         networks, IGF shall support the use of international and national
         variants of common channel signalling system No. 7 Telephony User Part
         (TUP) for circuit related signalling.

         6.3.2. For IGF Interconnecting to international and national ISDN
         networks, IGF shall support the use of international and national
         variants of common channel signalling system No. 7 ISDN User Part
         (ISUP) for circuit related signalling.

         6.3.3. For IGF interconnection to national PLMNs, IGF shall support the
         use of both international and national variants of ISLIP and TUP where
         appropriate for circuit related signalling.

         6.3.4. The IGF shall support the different variants of CCS7 ISUP and
         TUP and DSS1 in accordance with WG360477 Terrestrial Point-of
         -interconnect Interface Requirements.

         6.3.5. The IGF shall be capable of sending an early ACM signal on
         Mobile Terminated calls.

         6.3.6. Ericsson shall deliver the HLRs which have integrated STP
         functionality. The integrated STP functionality supports Global Title
         Translation (GTT) of SCCP. The STP will have signalling connections
         with other ICO signalling nodes such as SANs and also external
         networks.

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6.4. SECTION NOT USED

6.5. DCN SUBSYSTEM

6.5.1. NETWORK MANAGEMENT DCN

         6.5.1.1. The DCN shall carry Network Management traffic SRMC traffic,
         PCS traffic and HPN Traffic among SANs, NMCs and OT&DF (if provided).

         6.5.1.2. The DCN shall provide connections to all SANs, NMC, Backup
         NMC, and OT&DF (if provided).

         6.5.1.3. The DCN shall provide connections to SCC and Backup SCC (F/R).

         6.5.1.4. The DCN shall provide connections to the ADC (F/R).

         6.5.1.5. All IGF subsystems at SANs, NMC and Backup NMC which require
         DCN support shall be interfaced to the DCN equipment.

         6.5.1.6. The DCN shall use the physical network procured by ICO in the
         form of DSO circuits derived from El capacity.

         6.5.1.7. Each DSO interface at the SAN or NMC or Backup NMC shall
         terminate on a Router.

         6.5.1.8. The Routers form part of the DCN and their management shall be
         via the TNM OAM function, SAN-OSS and the NMC.

         6.5.1.9. The DCN traffic shall be encrypted on a link by link basis
         between the inter-SAN Routers with static encryption keys.

         6.5.1.10. The DCN equipment at each SAN, NMC and Backup NMC shall
         provide two complete and independent on-site networks and associated
         external interfaces.

         6.5.1.11. All critical on-site subsystems shall be interfaced to both
         of the on-site DCN networks.

         6.5.1.12. Non-critical subsystems, being all those of which there are
         multiple instances and the loss of one unit will not cause "system
         unavailability' shall be interfaced to at least one of the on-site DCN
         networks.

         6.5.1.13. The protocols used in the DCN shall be IP-based.

         6.5.1.14. The DCN shall for design and acceptance criteria be assumed
         to be configured as shown in Figure 6-1, Reference Terrestrial Network
         Connectivity.

         6.5.1.15. (F/R) The DCN shall be upgraded to provide the following

                  1.  A robust independent path so that management control of
                      any element does not depend on the correct function of
                      that element.

                  2.  Scalability

                  3.  Increased capacity as required to meet SRMC data and other
                      traffic needs.

                  4.  Management and visibility of DCN performance

                  5.  Increased security to protect data end-to-end

                  6.  Interfaces to allow use of externally provided network
                      resources.

6.5.2. VOICE SERVICE NETWORK (F/R)

         6.5.2.1. The IGF shall provide facilities for a voice service network
         enabling operational staff at each SAN and at the NMC and Backup NMC to
         communicate.

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            [FIGURE 6-1 REFERENCE TERRESTRIAL NETWORK CONNECTIVITY GRAPHIC]

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6.6. REGISTRATION AND IMSI ATTACH/DETACH

6.6.1. BASIC CAPABILITIES FOR REGISTRATION

         6.6.1.1. The MSSC shall provide capability for a UT to be registered
         with the network for the purpose of subsequently being able to have
         access to ICO communications services.

         6.6.1.2. The MSSC shall provide capability for a registered UT to be:

                  1.  IMSI attached, as defined by TS GSM 03.12 and TS GSM
                      03.22.

                  2.  IMSI detached as defined by TS GSM 03.12 and TS GSM 03.22.

         6.6.1.3. The MSSC shall provide capability to determine whether a UT is
         allowed to become registered based on:

                  1.  subscriber identity and authentication information

                  2.  service profile information received from the home network

                  3.  UT location, i.e. Service Area.

         6.6.1.4. The IGF shall provide capability to store UT specific
         information for registered UT's including:

                  1.  service profile information and

                  2.  other information needed by the network to communicate
                      with the UT.

         6.6.1.5. The IGF shall provide capability to respond

                  1.  to requests from an unregistered UT for registration.

                  2.  to requests from a registered UT for re-registration
                      (location update).

         6.6.1.6. The IGF shall provide capability to respond to requests from a
         registered UT for

                  1.  IMSI detach

                  2.  IMSI attach.

         6.6.1.7. The MSSC shall provide autonomous detach and de-registration
         actions shall be taken based on separate configurable timeout periods,
         starting from the UT's last bidirectional communication with the IGF.

         6.6.1.8. In communicating with the UT for the purposes of registration
         or reregistration, the IGF shall communicate to/from the UT using the
         Air Interface Procedures.

6.6.2. REGISTRATION PROCEDURES

         6.6.2.1. If a registration or re-registration request is received from
         a UT, the IGF shall evaluate the request according to planned criteria
         and if criteria for granting registration are satisfied the IGF shall:

                  1.  register the UT with the network

                  2.  acknowledge such registration

                  3.  providing the UT with parameters needed for it to operate
                      in any and/or all modes of operations required of an ICO
                      UT

                  4.  store the estimated UT location including accuracy
                      estimates (stored last registered position - SLRP)

                  5.  store the IMSI attach/detach status

                  6.  store UT service profile information.

         6.6.2.2. If a request for IMSI attach or IMSI detach is received from
         the UT, the IGF shall update the IMSI attach/detach status and shall
         maintain and/or update the data stored in the network at registration.

         6.6.2.3. The IGF shall de-register a UT if the UT becomes registered
         with another network and the other network informs the IGF.

         6.6.2.4. The IGF shall ensure that no UT will be registered in more
         than one SAN at a time.

6.6.3. REGISTRATION CASES

         6.6.3.1. If the IMSI is used, the TNM shall route registrations or
         location update requests from a SBS to an MSSC on the basis of a
         routing table. The table shall map IMSIs or IMSI ranges (up to 64,000
         entries per table) to one of the following configurable routing
         options:

                  1.  route to MSSC as indicated by the UT.

                  2.  route based on the service area of the UT. This will
                      require the consultation of a secondary table mapping
                      service area to MSSC Ids (containing up to 64,000
                      elements)

                  3.  route to a particular MSSC.

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                  4.  route to the MSSC of the SAN which provides the control
                      channels for the satellite beam chosen by the UT.

         6.6.3.2. If a TMSI is used, the TNM shall route registrations or
         location update requests from a SBS to the MSSC according to one of the
         following configurable routing options:

                  1.  route to MSSC as indicated by the UT. If the ID of the
                      MSSC where the LIT was last registered is not provided,
                      then the TNM shall route the request to the MSSC that
                      belongs to the same SAN as the SBS Channel Manager that
                      communicates with the UT.

                  2.  route based on the service area of the UT. This will
                      require the consultation of the same table mapping service
                      area to MSSC IDs as defined in 6.6.3.1.

         6.6.3.3. The configurable routing options shall be controlled by the
         NMC via the TNM OAM.

         6.6.3.4. The SRMC shall provide capability to preplan which SANs should
         be candidates for registration in each beam and their priority so that
         the BCCH data can be transmitted.

         6.6.3.5. The IGF shall provide capability to instruct UT's on the
         maximum rate at which the UT is allowed to attempt to re-register with
         the network.

6.6.4. DENIAL OF REGISTRATION

         6.6.4.1. The IGF shall provide capability to complete a UT's
         registration request procedure by a rejection for the following
         reasons:

                  1.  because the UT's service profile does not allow it to roam
                      into the ICO network;

                  2.  because the UT's service profile does not allow it to
                      register with the ICO network in the service area in which
                      it is currently located;

                  3.  because the UT is not allowed to access the SAN at which
                      the registration attempt was made;, (F/R)

                  4.  because the UT's current position does not allow it to
                      register with that particular SAN; (F/R)

                  5.  because the SAN is overloaded or is refusing new
                      registration attempts for other operational reasons.

         6.6.4.2. The IGF shall provide the capability to instruct a UT which
         is denied registration against registration again until there is a high
         probability that a registration attempt will be successful. This shall
         involve, as a minimum:

                  1.  Instructing the UT against making a registration attempt
                      for a period of time, the value of this to be
                      operationally controlled

                  2.  Instructing the UT against attempting registration until
                      it has selected a different SAN with which to register.
                      (F/R)

6.7. CALL ROUTING

6.7.1. MSSC CALL ROUTING

         6.7.1.1. The IGF shall be capable of routing on both fixed directory
         numbers (ITU-T E.164) and mobile station roaming numbers (MSRNs).

         6.7.1.2. The IGF shall be capable of routing to fixed directory numbers
         located in the ICO network e.g. to PABXs directly attached to a MSSC.

         6.7.1.3. In addition to the dialled number, the IGF shall also be
         capable of routing on the basis of one or more of the following:

                  1.  the location (service area) of the subscriber

                  2.  the identity of the subscriber (IMSI/ IMSI range)

                  3.  the calling line identity (MSISDN)

                  4.  day/ date and time

         6.7.1.4. The IGF shall be capable of supporting multiple routes to the
         same destination. As a minimum this shall include primary, secondary
         and tertiary routes.

6.7.2. TNM ROUTING

         6.7.2.1. The TNM shall route a mobile originating service request from
         a SBS to the MSSC where the UT was last registered, advised by the UT.

         6.7.2.2. The TNM shall provide an audit trail (log) of all TNM call
         routing operations.

         6.7.2.3. The TNMs at the various SAN sites shall establish and clear 64
         kbps connections via the intermediate MSSCs so as to ensure that
         traffic is routed to its destination by an efficient route.

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6.8. MP PAGING

         6.8.1. The IGF shall be able to page UTs.

         6.8.2. The IGF shall support paging groups for Medium Penetration (MP)
         paging.

         6.8.3. The IGF shall be capable of transmitting paging indications on
         PCHs.

         6.8.4. The IGF shall implement the PCH as defined in ICO 05.xx and ICO
         04.08 series.

         6.8.5. The IGF shall be capable of supporting one or more PCH carriers
         on every spot beam on every satellite.

         6.8.6. The IGF shall support the capability to transmit PCH bursts
         simultaneously on multiple spot beams of multiple satellites.

         6.8.7. The IGF shall be capable of paging a UT on all spot beams of
         all satellites covering a UT's position including position error value.

         6.8.8. SBS shall use the SLRP, position error and the currently
         broadcast beam co-ordinates to determine which beams controlled by the
         SBS will be used for paging, and will page the UT only in the beams
         which contain the SLRP, considering the position error.

         6.8.9. The TNM shall request one or more SBS to page a UT according to
         the SLRP.

         6.8.10. The SBS will page a UT in beams in which it transmits AGCH.

         6.8.11. The TNM shall support the escalation of paging to UTs should no
         response to initial page be received. For escalation the TNM shall be
         capable of requesting additional SBSs. For both the initial and
         escalated page, the TNM shall be capable of changing the position error
         value provided to the SBS.

         6.8.12. The MSSC shall support a configurable paging timeout function
         to cause MP paging escalation to occur.

         6.8.13. The IGF shall support operational control of:

                  1.  number of pages allowed for each paged SBS, for initial
                      and escalated paging separately.

                  2.  mapping from SLRP to SBS, for initial and escalated paging
                      separately.

                  3.  change of position error value for escalated paging.

         6.8.14. The resolution of mapping in TNM of SLRP to SBS shall be no
         greater than 80km.

         6.8.15. In each TNM the change of position error factor for both cases
         of paging shall be configurable for each paged SBS.

6.9. SECTION NOT USED

6.10. SECTION NOT USED

6.11. DIVERSITY SATELLITE PATH ALLOCATIONS AND USAGE

6.11.1. DIVERSITY CAPACITY

         6.11.1.1. Each SBS shall provide diversity allocation capacity of 40%
         of specified SAN capacity. This 40% is in addition to the specified
         capacity.

         6.11.1.2. Any channel resource within the total 140% capacity shall be
         able to be allocated for single path usage or diversity usage.

         6.11.1.3. When the traffic offered to an SBS is at or below 50% of the
         specified capacity, the SBS shall be capable of providing diversity on
         every call to diversity eligible UTs.

         6.11.1.4. If the system load exceeds a [configurable] percentage of the
         total capacity the SBS shall offer diversity based on azimuth and
         elevation of satellites seen by the UT.

6.11.2. DIVERSITY PATH ALLOCATION AND DE-ALLOCATION

         6.11.2.1. The IGF shall have the capability to allocate and add
         diversity satellite path during a call. This diversity path terminates
         within the same Channel Manager.

         6.11.2.2. The IGF shall select the ChM to allow for the best
         probability of diversity path addition at the time of initial channel
         allocation.

         6.11.2.3. The IGF shall make diversity satellite path allocations with
         the following nominal satellite transmit path allocation burst time
         offsets between diversity paths in priority order, subject to satellite
         spectrum availability as follows:

                  1.  3 timeslots offset (diversity windows case)

                  2.  0, 1, 2 timeslots offset

                  3.  4, 5 timeslots offset

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         6.11.2.4. The IGF shall command the UT to provide measurement reports
         for all satellites covering the UT.

         6.11.2.5. The IGF shall have the capability to remove and de-allocate
         one of the two paths used by UT during a call without affecting the
         other path.

         6.11.2.6. The lGF shall perform addition of diversity path based on
         measurement reports received from a UT azimuth/elevation angles service
         requirements and UT capabilities. These reporting mechanisms and
         report content details shall be as described in ICO Air Interface
         documents.

         6.11.2.7. The SBS shall provide diversity during a call to UTs which
         indicate in their measurement reports that they can receive signals
         from two or more satellites in coverage of the SBS.

         6.11.2.8. The SBS shall add diversity if a UT becomes able to receive
         signals from two or more satellites during a call.

         6.11.2.9. The SBS shall remove diversity if a UT has been unable for
         10 seconds or more to receive signals from two or more satellites and
         diversity is needed for other UTs.

6.11.3. TRANSMISSION AND RECEPTION OVER DIVERSITY PATH

         6.11.3.1. When not in power saving mode the IGF shall transmit
         TCH/SACCH on both paths of the diversity when voice is active.

         6.11.3.2. When in power saving mode and voice is active, the IGF shall
         transmit TCH/SACCH on the path on which the SAN is receiving with
         higher quality and SACCH only on the other.

         6.11.3.3. When voice is inactive, the IGF shall transmit SACCH bursts
         on both paths.

         6.11.3.4. Power control mechanism for both legs of diversity paths
         shall be controlled together according to the best path with a margin.

         6.11.3.5. The IGF shall receive TCH/SACCH in both diversity paths
         simultaneously.

         6.11.3.6. The IGF shall implement optimum burst by burst selection of
         the paths to which it is listening.

6.12. HANDOVERS

         6.12.1. The IGF shall perform handover to maintain call continuity and
         to maintain diversity via any pair of satellites in the coverage of any
         SAN subject to spectrum availability and equipment capacity limits.

         6.12.2. Handovers shall be performed with minimal or no interruptions
         to the call.

         6.12.3. The methods of implementing handover for single calls in
         priority order shall be:

                  1.  path addition and deletion, by two path redefinition
                      procedures;

                  2.  channel reassignment.

         6.12.4. The methods of implementing handover for diversity path calls,
         in priority order, shall be:

                  1.  path redefinition of each path separately, with continuity
                      of the first path redefinition confirmed before the second
                      path redefinition is commenced;

                  2.  channel reassignment of both paths simultaneously.

         6.12.5. If a single path is in use for a call a handover using channel
         reassignment may be used to change from the single path to a new pair
         of diversity paths. This is a non-preferred alternative to providing
         diversity by path addition.

         6.12.6. The IGF shall support the following handovers:

                  1.  intra-beam handovers (within same or different delay
                      classes)

                  2.  inter-beam handovers (within one or two satellites)

                  3.  intra-SAN handovers (within one or two Channel Managers)

                  4.  inter-SAN handovers (but not inter-MSSC handover).

         6.12.7. For handovers by path redefinition, the IGF shall continue to
         support the original path until signals on the new path are received
         and demodulated correctly.

         6.12.8. For handovers by channel reassignment the IGF shall continue to
         support the original path so that the UT can re-establish the
         connection on the old path if connectivity on the new path is not
         achieved.

         6.12.9. For all handovers, if connectivity on the new path is not
         achieved, the IGF shall implement a recovery strategy to maximise the
         probability of continuing the call. This shall include attempts to
         overcome equipment malfunctions and attempts to communicate via an
         alternative path allocation on different frequencies subject to
         availability of satellite and spectrum resources.

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6.13. SUBSCRIBER IDENTITY AUTHENTICATION

         6.13.1. The IGF shall support the subscriber identity authentication
         procedure as defined in TS GSM 02.09 and TS GSM 03.20.

         6.13.2. The IGF shall permit each of the authentication triggers
         defined in TS GSM 02.09 to be set/reset via the setting of exchange
         data, exchange parameter and/or network management command.

         6.13.3. The IGF shall support the use of multiple authentication
         algorithms, the key lengths shall be compatible to those defined in the
         relative GSM specifications.

6.14. ENCRYPTION

         6.14.1. The IGF shall support the encryption on the Air Interface to
         support the user data confidentiality and signalling information
         element confidentiality feature as defined in TS GSM 02.09 and TS GSM
         03.20 with the exception of ICO-specific algorithms.

         6.14.2. The IGF shall support user data confidentiality for
         connection-oriented services.

         6.14.3. The IGF shall support the use of one encryption algorithm. The
         algorithm shall be similar to GSM A5-2 and shall be signalled to the
         MSSC as GSM A5-2.

         6.14.4. The IGF shall maintain compatibility with the GSM Phase II
         multi-cipher signalling.

         6.14.5. The IGF shall maintain such Air Interface confidentiality for
         the entire duration of the transaction subject to:

                  1.  configurable operator preferences and criteria in the
                      MSSC,

                  2.  equipment characteristics of the UT.

         6.14.6. The IGF shall support encryption on:

                  1.  Diverse paths,

                  2.  Handovers and channel changes, and

                  3.  Channel mode changes.

         6.14.7. The IGF shall be able to enable and disable encryption at any
         time during an active transaction for however many times are required.
         (F/R)

         6.14.8. The IGF shall follow the Air Interface specifications for:

                  1.  Control of encryption, and

                  2.  Enabling and disabling of encryption.

         6.14.9. The IGF shall apply encryption, or not, according to the
         service area of the UT. (OPTION)

         6.14.10. The IGF shall support the encryption of HPN messages
         transmitted over the radio interface on the NCH/HP.

6.15. IMEI CHECKING

         6.15.1. The IGF shall employ the IMEI checking procedure as defined in
         TS GSM 02.16 and TS GSM 09.02.

         6.15.2. The IGF shall be capable of performing an IMEI check as a
         result of the following operations:

                  1.  mobile originated/mobile terminated call attempt

                  2.  mobile originated/mobile terminated SMS attempt

                  3.  location update

                  4.  non-call related supplementary service event.

6.16. CAUSES, TONES AND ANNOUNCEMENTS

         6.16.1. The IGF shall support the presentation of call progress
         indications to the user in accordance with TS GSM 02.40.

         6.16.2. It shall be possible for the operator to select the set of
         tones to be employed within the ICO network.

         6.16.3. The IGF shall support the use of recorded voice announcements.

         6.16.4. It shall be possible for the operator to select and record the
         announcements to be employed within the ICO network.

         6.16.5. The IGF shall support the playback of an announcement to the
         user during call set-up, or during the release phase.

         6.16.6. For prompts delivered to the user, the IGF shall support the
         simultaneous playback of announcements and reception of DTMF digits
         from the user.

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6.17. ECHO CANCELLATION

         6.17.1. The MSSC shall provide echo cancelling functionality to
         suppress the echo created from connection to the fixed network

         6.17.2. The echo canceller devices shall be provided on a common pool
         basis, i.e. not dedicated to individual trunk circuits.

         6.17.3. The echo cancellation functionality shall provide the system
         with:

                  1.  Tone disabler selection as defined in CCITT G.164 and
                      CCITT G.165

                  2.  Non-Linear Processor (NLP) selection in order to:
                      a) suppress signals having a level below a certain
                      threshold
                      b) allow signals having a level detected above a certain
                      threshold, although the signal may be distorted.

                  3.  double talk level

                  4.  end path delay

                  5.  A-law/(micro)-law.

         6.17.4. The echo canceller functionality will be compliant to CCITT
         Rec. G.165.

         6.17.5. The MSSC shall signal the presence/absence of echo cancellers
         to subsequent nodes in the call setup path, provided that the
         signalling employed between the nodes supports this.

6.18. TERRESTRIAL MODEM POOLS

         6.18.1. The MSSC shall include pools of multi-functional modems for
         interworking with the PSTN and with the ISDN 3.1 kHz audio bearer
         service in accordance with TS GSM 09.07.

         6.18.2. As a minimum, the MSSC modem pools shall support V.21, V.22,
         V.22bis, V.23, V.32 and V.34 modem standards.

         6.18.3.a The MSSC modems shall support autobauding. Autobauding is not
         supported for transparent services or for non-transparent services with
         no flow control.

         6.18.4. The MSSC modems shall support both V.42 and MNP4 outband flow
         control and error correction procedures.

         6.18.5. The MSSC modems shall support V.42bis data compression.

6.19. UT POSITION INFORMATION

6.19.1. POSITION INFORMATION DETERMINATION

         6.19.1.1. The UT position information shall be determined in terms of a
         location and location accuracy.

         6.19.1.2. The content of the LIT position information shall be

                  1.  latitude and longitude

                  2.  location accuracy: a confidence region in the shape of
                      either a circle or a rectangle

         6.19.1.3. The location shall be stored with resolution of 1 km or less.

         6.19.1.4. The accuracy estimate shall be stored with resolution of 1 km
         to [20] km depending on the magnitude of location error.

         6.19.1.5. The UT position determination shall utilise the time at which
         the RACH is received as specified in Section 6.25.1.2.3.

         6.19.1.6. The UT position information shall utilise the frequency
         offset at which the RACH is received as specified in Section
         6.25.2.3.5.1.

         6.19.1.7. The UT position information shall utilise the time at which
         the DCCH bursts of the Initial Message are received as specified in
         Section 6.25.1.2.5.

         6.19.1.8. The UT position information shall utilise the frequency
         offset at which the DCCH bursts of the Initial Message are received as
         specified in Section 6.25.2.3.5.3.

         6.19.1.9. Individual timing and frequency estimates from the RACH and
         DCCH bursts shall be processed to provide composite timing and
         frequency estimates.

         6.19.1.10. The UT position determination shall make use of a BCCH time
         offset parameter supplied by the UT as part of the data sent
         immediately after the dedicated channel is established, if the UT
         transmits the parameter. The parameter will allow the SBS to calculate
         a second line of position relative to a second satellite, to be
         combined with that from the satellite through which the SBS is
         communicating with the UT. (OPTION)

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6.19.2. CONVERSION OF FREQUENCY AND TIME MEASUREMENT TO POSITION

         6.19.2.1. The SBS shall convert the measured time and frequency to a
         geographic position (latitude and longitude), taking into account the
         position of the satellite and the beam of the RACH.

         6.19.2.2. The error introduced by the SBS algorithm for conversion to
         geographic position shall be no greater than that corresponding to [0.5
         (micro)sec and 0.5 Hz].

         6.19.2.3. The SBS shall generate an estimate of the error in the
         geographic position based on:

                  1.  estimated errors in frequency, and time measurements in
                      the SBS demodulator, dependent on received signal
                      strength.

                  2.  two configurable parameters representing cumulative
                      frequency and time errors of the end to end path;

                  3.  relationship between error and position within the
                      satellite field of view.

         6.19.2.4. The IGF shall support up to 65,000 service areas. Each
         service area shall define a geographical area on the surface of the
         earth. Service areas need not be of the same size. They are defined and
         reconfigurable by the SRMC.

6.19.3. USAGE OF UT POSITION INFORMATION

         6.19.3.1. The IGF shall determine UT position at the start of every
         radio communications session including calls and registration.

         6.19.3.2. The MSSC shall support the use of service area information
         for call routing.

         6.19.3.3. The MSSC shall store the UT position information for use by
         SBS and TNM paging purposes.

         6.19.3.4. The MSSC shall support the use of service area information
         for emergency calls.

         6.19.3.5. The MSSC shall support the use of service area information
         for call interception (OPTION).

         6.19.3.6. The MSSC shall support the use of service area information
         for the purpose of billing.

         6.19.3.7. The MSSC shall support the use of service area information to
         permit or deny registration.

         6.19.3.8. The MSSC shall support the use of service area information
         for call barring.

6.19.4. MAPPING OF UT POSITION TO SERVICE AREA

         6.19.4.1. The SBS shall determine a quadrilateral area on the surface
         of the earth from the UT position information, using a pre-defined
         mapping table. The mapping shall allow for up to 65,000 such areas (of
         varying sizes (OPTION)).

         6.19.4.2. The SIBS shall map from the quadrilateral area codes to
         service area Id.

         6.19.4.3. The service area id shall be passed to the
         MSSC during registration and call set-up.

6.19.5. HANDLING OF UT-SUPPLIED POSITION INFORMATION

         6.19.5.1. If UT position information is provided by the UT itself then
         the IGF shall validate this information by comparing with the coverage
         of the current communicating beam. The IGF shall assume the given UT
         position information if the confidence region provided by the UT
         partially or completely overlaps with the beam coverage.

         6.19.5.2. If the given UT position information is valid, the IGF shall
         use this UT position information.

         6.19.5.3. If the UT position information is not valid, the IGF shall
         use the measured UT position information.

6.20. LEGAL INTERCEPTION

         6.20.1. The MSSC shall provide the functionality required for the
         interception of user communications (telephony, fax, data and SMS) by
         authorised agencies for monitoring purposes.

         6.20.2. The MSSC shall be capable of intercepting all calls from/to a
         particular subscriber including, but not limited to, forwarded calls
         and incoming calls to roaming subscribers.

         6.20.3. The interception by the MSSC of user communications shall be
         imperceptible to the end user i.e. the MSSC shall support covert
         monitoring.

         6.20.4. The services and features on offer to the end user shall not be
         limited by or otherwise affected by the application of interception.

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         6.20.5. The MSSC shall deliver the content of the user communications
         (call product) to a nominated monitoring centre in real-time.

         6.20.6. The MSSC shall support both fixed and switched connections to
         the monitoring centre.

         6.20.7. In order to allow for the connection to the monitoring centre
         to be established before the communication phase of the monitored call,
         the MSSC shall be capable of delaying the through connection of the
         monitored call until the monitoring centre has answered, or until a
         particular time interval has elapsed.

         6.20.8. The MSSC shall support the interception of user communications
         for a particular subscriber by up to four separate monitoring agencies
         in parallel.

         6.20.9. The MSSC shall also be capable of delivering call detail
         records (CDRs) to the monitoring centre in near real-time. The position
         information included in the CDRs shall include the UT position in the
         form of latitude/longitude and accuracy indicator.

         6.20.10. The MSSC shall support the interception of individual
         subscribers on the basis of:

                  1.  the MSSC/VLR in which the subscriber is registered
                      (SANLOC)

                  2.  the current geographic location (service area) of the
                      subscriber (SUBLOC) (OPTION).

         6.20.11. The NODE-OS shall be capable of activating/deactivating the
         interception of an individual subscriber in one or more MSSCs in a
         secure manner and without visibility to the local SAN operational
         staff.

         6.20.12. The MSSC shall generate CDRs to support the billing of the
         monitoring agencies for the resources used as a result of the
         interception.

6.21. FORCED CALL ROUTING (F/R)

         6.21.1. It shall be possible to force route a call from within the
         ICONET (under the control of the ADC/SMAS) to a switch (end-system) of
         the requesting agent on the basis of:

                  1.  the service area of the subscriber

                  2.  home network/service provider of the subscriber (e.g. IMSI
                      range)

                  3.  individual subscriber identity (e.g. IMSI/MSISDN).

         6.21.2. It shall be possible for the NMC to request Forced Call Routing
         via notification to the ADC/SMAS (e.g. for test purposes).

         6.21.3. The solution implemented by the MSSC shall require minimal
         support from the end-system of the requesting agency.

         6.21.4. Any impact on the quality of service delivered to the end user
         as a result of the application of forced call routing by the MSSC shall
         be kept to a minimum.

         6.21.5. The MSSC shall ensure that the re-routing of a call is not
         visible to the end users.

         6.21.6. The MSSC shall provide an administrative interface for the
         activation/deactivation of forced call routing.

         6.21.7. The IGF (namely the ADC/SMAS) shall provide an audit trail
         (log) of all forced call routing operations. This audit trail (log)
         shall be available to the NMC.

         6.21.8. The MSSC shall provide call detail records and measurement
         counters for each forced call routing attempt. The application of
         forced call routing shall not interfere in any way with the billing of
         the original call.

6.22. PURGING OF LOCATION REGISTERS

         6.22.1. The IGF shall support the purging of subscribers from the VLR
         as defined in TS GSM 09.02.

         6.22.2. The IGF shall support both implicit purging as a result of an
         extended period of inactivity as well as explicit purging via OAM
         command.

         6.22.3. The purging of a subscriber from the MSSC/VLR shall result in
         the deletion of all data for that subscriber in the MSSC/VLR.

         6.22.4. The VLR shall be capable of informing the HLR that a subscriber
         has been purged.

         6.22.5. On receipt of a purge notification from the VLR, the HLR shall
         consider the subscriber to be "not reachable" in order to avoid
         unnecessary signalling load.

6.23. ICO SPACE SEGMENT AND SANS

         6.23.1. The IGF shall be designed to meet full performance requirements
         with the baseline constellation: 10 satellites, 5 satellite per plane,
         equally spaced in terms of phase (72 degrees), inclination angle of 45
         degrees.

         6.23.2. The IGF shall be designed to allow operation with a satellite
         constellation consisting of from 1 to 12 satellites in 1 or 2 planes
         with 1 to 6 satellites per plane.

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         6.23.3. The IGF shall be able to support expansion up to 24 satellites
         and 24 SANs as follows:

                  1.  The interfaces between entities of the IGF (NMC, SRMC,
                      SAN-OSS SBS, RFT) etc. shall be designed to provide data
                      formats (field sizes, etc.) which accommodate expansion;

                  2.  Software in each entity shall be written in modules to
                      facilitate expansion by replacement of modules and such
                      that there are no avoidable limits on expansion in the
                      internal interfaces between modules;

                  3.  The IGF equipment (hardware and software) shall be
                      designed and configured such that expansion can be
                      accommodated with minimal or no disruption to service,
                      except when the increase of the number of RFT antennas per
                      SAN and/or the increase of the maximum total EIRP per
                      antenna is required.

         6.23.4. The IGF architecture shall be such that it may be expanded in
         increments and that minimum disruption occurs to the ICO system upon
         expansion, except when the increase of the number of RFT antennas per
         SAN and/or the increase of the maximum total EIRP per antenna is
         required.

         6.23.5. The SRMC shall be designed to accommodate ICO satellites which
         have a total of 163 spot beams on a regular, triangular lattice. It can
         be assumed that the payload rotational movement with respect to the Yaw
         axis is electrically and autonomously compensated by the payload so
         that the spot beam configuration is virtually fixed in the sense that
         the relative beam overlaps between the adjacent satellites are
         invariant.

         6.23.6. The IGF shall be capable of evolution to compatibility with the
         following alternative constellations:

                  1.  6 to 18 satellites in 3 planes;

                  2.  up to 24 satellites in 4 planes.

                  6.23.7. The IGF will be configured with 12 Satellite Access
                          Nodes at the following locations

                  6.23.8. Table 6-1 SAN Locations

<TABLE>
<CAPTION>
SAN Site location                           Latitude                        Longitude               Altitude (m)
-----------------                           --------                        ---------               ------------
<S>                                         <C>                             <C>                     <C>
Australia, Ningi                            27 degrees 03'35"S              153 degrees 03'30"E             2-16
Brazil, [Guaratiba]                         [22 degrees 59'55"S             43 degrees 36'23"W                0]
Chile. Longvilo                             33 degrees 57'l1"S              71 degrees 23'49"W               166
China. Pudong                               31 degrees 20'06"N              121 degrees 31'05"E               40
Germany, Usingen                            50 degrees 19'52"N              08 degrees 28'25"E               386
India. Chattarpur                           28 degrees 31'27"N              77 degrees 11'12"E               684
Indonesia, Banyu Urip                       06 degrees 55'15"S              112 degrees 31'17"E               42
Mexico, Tulancingo                          20 degrees 03'52"N              98 degrees 26'07"W              2250
South Africa, Hartebeesthoek                25 degrees 54'36"S              27 degrees 42'35"E              1520
South Korea, [Kumsan]                       [36 degrees 07'19"N             127 degrees 29'10"E             151]
UAE, Margum                                 24 degrees 52'49"N              55 degrees 34'37"E                68
USA. Brewster                               48 degrees 08'19"N              119 degrees 41'28"W              177
</TABLE>

6.24. SECTION NOT USED

6.25. RADIO SYNCHRONISATION

6.25.1. TIME SYNCHRONISATION

6.25.1.1. INTER-SAN TIME SYNCHRONISATION

         6.25.1.1.1. The requirements of the SBS pertaining to GPS time
         synchronisation are as follows.

                  1.  GPS time is the time of the GPS system.

                  2.  The SBS shall maintain synchronisation to GPS time.

                  3.  The SBS shall meet time synchronisation requirements for
                      GPS outages lasting up to 1 week in duration.

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                  4.  The SBS shall synchronise the ATN number as defined in the
                      Air Interface (Section 4.4.1 of ICO 05.02).

                  5.  The HPN frame number shall be synchronised to the overall
                      multiframe/superframe structures as defined in the air
                      interface specifications.

                  6.  The ATN number sequence starts at [24:00:00 05 January
                      1980] GPS time.

                  7.  The ATN sequence counting is based on the GPS time.

6.25.1.2. RADIO TIME SYNCHRONISATION

6.25.1.2.1. COMMON CHANNEL TIMING SYNCHRONISATION

         6.25.1.2.1.1. The requirements related to SCH, BCCH, and PCH/AGCH
         timing are as follows:

                  1.  The SBS shall control the transmission of its SCH and BCCH
                      bursts such that the burst timing error arriving at the
                      Satellite is synchronised to GPS time within +/- 3.5
                      microseconds, excluding the timing error between the SAN
                      and satellite derived from satellite ephemeris.

                  2.  The SBS shall transmit SCH and BCCH bursts in each spot
                      beam controlled by the SBS in order to distribute system
                      time information to UTs.

                  3.  The SBS shall be capable of staggering or interleaving
                      the transmission of the low-duty-cycle BCCH bursts in the
                      multiple spot beams it controls, so as to reduce the
                      satellite peak power demand, as planned by the SRMC.

                  4.  The SBS shall control the transmission timing of its
                      PCH/AGCH burst such that the burst timing error arriving
                      at the satellite is synchronised to GPS time within 3.5
                      microseconds excluding the timing error between the SAN
                      and satellite derived from satellite ephemeris.

         6.25.1.2.1.2. Requirements related to HPN forward/return channel timing
         synchronisation are as follows:

                  1.  The HPN Transmit ChU shall control the transmission of the
                      HPN forward channel burst such that the burst arrives at
                      the satellite synchronised to the BCCH/MP with an absolute
                      accuracy of 25 (micro)s.

6.25.1.2.2. LINK (BI-DIRECTIONAL DEDICATED CHANNEL) TIMING SYNCHRONISATION

         6.25.1.2.2.1. The NMC shall provide satellite C to S and S to C
         conversion delay and Z-arc delay to the SBSs.

         6.25.1.2.2.2. The IGF may assume that the satellite C to S conversion
         delay variability will be less than 100 nsec.

         6.25.1.2.2.3. The IGF shall assume that the UT shall be capable of
         advancing or delaying transmission as defined in the Air Interface.

         6.25.1.2.2.4. The IGF shall assume that the UT shall use the
         rate-of-change information supplied by the SBS to adjust timing
         between updates.

         6.25.1.2.2.5. The IGF shall assume that the UT shall cause a time
         jitter of no more than +/- 2 microseconds under all operational
         conditions.

6.25.1.2.3. RACH TIME MEASUREMENTS AND INITIAL ASSIGNMENT

         6.25.1.2.3.1. The SAN shall set its receive timing reference to an
         accuracy of +/- 3.5 microseconds from GPS time, excluding the
         timing error between SAN and satellite derived from the satellite
         ephemeris data.

         6.25.1.2.3.2. The SIBS shall measure the Time Delay of the RACH
         transmitted from a UT.

         6.25.1.2.3.3. The accuracy of the time delay measurement in the
         demodulator relative to the signal at the demodulator input shall be
         better than +/-7 microseconds 1 sigma in an AWGN channel with a C/N
         =-2.5 dB, and +/-4 microseconds 1 sigma with C/N=+5.4dB.

         6.25.1.2.3.4. The SBS shall calculate the z-arc and required timing
         offset and send it to the UT.

         6.25.1.2.3.5. The timing offset shall be provided for position
         determination.

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6.25.1.2.4. TCH/DCCH FORWARD LINK TIMING SYNCHRONISATION

          6.25.1.2.4.1. The SBS shall control the transmission of its TCH/DCCH
          burst such that the burst timing error at the Z-arc is synchronised to
          GPS time within +/- 3.5 microseconds, excluding (a) the timing error
          between the SAN and satellite derived from satellite ephemeris and (b)
          the timing variation in satellite C-to-S conversion.

6.25.1.2.5. TCH/DCCH RETURN LINK TIMING SYNCHRONISATION

         6.25.1.2.5.1. The SAN shall set its receiving timing reference to an
         accuracy of +/- 3.5 microseconds from GPS time with respect to the
         Z-arc, excluding (a) the timing error between the SAN and satellite
         derived from satellite ephemeris and (b) the timing variation in
         satellite S-to-C conversion.

         6.25.1.2.5.2. The SBS shall measure the Time Delay of the TCH/DCCH
         transmitted from a UT.

         6.25.1.2.5.3. The accuracy of the time delay measurement in the
         demodulator relative to the signal at the demodulator input shall be
         better than +/- 14 microsecond 1 sigma in an AWGN channel with a C/N =
         -2.5 dB (DCCH/2 only), and +/- 6 microsecond 1 sigma with C/N
         = +5.4dB (all TCH and DCCH channels).

         6.25.1.2.5.4. The SBS shall use the measured time offsets for each
         SDCCH/2 burst, along with time-stamp at point of measurement, and other
         data, in position determination.

         6.25.1.2.5.5. The SBS shall monitor the timing offset of each UT burst
         on a dedicated bidirectional channel up to a maximum offset of +/- 56
         microsecond.

         6.25.1.2.5.6. The SBS shall calculate and send the required timing
         adjustment and the rate of timing change to the UT when the UT timing
         error exceeds a configurable period (range 3 to 30 microsecond nominal
         10 microsecond. The format shall be as defined in the Air Interface.

         6.25.1.2.5.7. The SBS shall be able to send these required timing
         adjustments and rate of timing changes to the UT at an average rate of
         once per 10 seconds (over all UTs), and at a maximum rate of once per 1
         seconds (for any UT).

6.25.1.3. SAN TO SATELLITE DELAY ESTIMATION

         6.25.1.3.1. The NMC shall provide for ephemeris data to be received
         from the SCC.

         6.25.1.3.2. The NMC shall transfer the ephemeris data to the SAN SRMS
         as required.

         6.25.1.3.3. The SAN SRMS shall transfer the ephemeris data to the SBS
         as required.

         6.25.1.3.4. The SBS shall use the ephemeris data to calculate the SAN
         to satellite delay value to within [ +/- 2.0] microsecond, 3
         sigma error, at any given instant in time.

         6.25.1.3.5. The IGF shall assume that the ephemeris data provided to
         the IGF is of sufficient quality to permit the calculation of the SAN
         to satellite delay value to the accuracy required.

6.25.2. FREQUENCY SYNCHRONISATION

6.25.2.1. FREQUENCY REFERENCES

6.25.2.1.1. SATELLITE PAYLOAD FREQUENCY REFERENCE

         6.25.2.1.1.1. The IGF shall assume the SCC will provide the correction
         for satellite payload frequency reference error to the satellite.

         6.25.2.1.1.2. The IGF shall assume the correction for satellite payload
         frequency reference error provided to the satellite shall be less than
         5.0 x 10(-10) and that there is at least a 10 second delay between
         successive corrections.

6.25.2.1.2. LES FREQUENCY REFERENCE

         6.25.2.1.2.1. The LES shall include frequency reference equipment that
         are used as the basis for frequency and timing measurements for the
         synchronisation of the RFT, SBS, PCS, HPN Subsystem and of the
         transmission links to the TNM.

         6.25.2.1.2.2. The frequency stability shall be better than 1 x 10(-10)
         over 1 year.

         6.25.2.1.2.3. The LES frequency reference equipment shall support the
         synchronisation of radio signals within the specified tolerances of GPS
         time.

         6.25.2.1.2.4. The LES frequency reference equipment shall provide a
         secondary clock source for use in case of failure of the primary
         source, with accuracy and stability to enable operation of the LES for
         at least 1 week.

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6.25.2.2. SECTION NOT USED

6.25.2.3. LINK DOPPLER COMPENSATION

6.25.2.3.1. GENERAL

         6.25.2.3.1.1. The SBS and RFT shall transmit all forward direction
         channels in the spot beam, (including BCCH, SCH, PCH, AGCH. and those
         of TCH & DCCH channels), such that their frequencies are corrected in
         frequency at the frequency reference point of each particular spot beam
         relative to their nominal frequencies specified by SRMC to an accuracy
         as specified in Section 6.25.2.3.2.

         6.25.2.3.1.2. The SBS and RFT shall enable the frequencies of all
         return direction channels, (including RACH and those of TCH and DCCH
         channels), received from a spot beam to be provided at the demodulator
         input, relative to their nominal frequencies at a spot beam frequency
         reference point of each spot beam, to an accuracy as specified in
         Section 6.25.2.3.2.

         6.25.2.3.1.3. The Doppler compensation shall be done per satellite and
         per beam in order to obtain "zero" frequency reference for each beam at
         a point that represents the Doppler offset of that beam.

         6.25.2.3.1.4. The overall formula performed by the SBS and RFT
         subsystem for frequency correction of its transmitted burst shall be:
         Ft = ((Fs/(1 +Dbn)) +Fcs(1 +M)) / (1 + Dc)

         Where:

                  1.  Ft: Transmit frequency from the SAN

                  2.  Fs: S-band frequency

                  3.  Fcs: Translation frequency from C to S band

                  4.  Dbn: Fractional Doppler shift of the service link at the
                      zero Doppler offset reference point on the earth for each
                      beam

                  5.  Dc: Fractional Doppler of the Feeder Link

                  6.  M: Fractional satellite payload frequency reference
                      offset.

         6.25.2.3.1.5. The SRMS shall estimate the Dbn value from the satellite
         ephemeris data provided by SCC, and assuming an oblate earth model, and
         supply them to the SBS and HPN subsystem.

         6.25.2.3.1.6. The SRMS shall provide Dbn parameters within an accuracy
         of +/- [1] Hz excluding errors in the ephemeris data.

         6.25.2.3.1.7. Each RFT shall compensate the forward transmit frequency
         for the C-band Doppler.

         6.25.2.3.1.8. The RFT shall provide the following data at regular
         intervals of 1 second for each antenna which is tracking a satellite:

                  1.  satellite payload frequency reference offset (M)

                  2.  forward feeder link Doppler offset (Dc).

         6.25.2.3.1.9. The RFT shall timestamp each measurement.

         6.25.2.3.1.10. The RFT subsystem shall provide frequency reference
         offsets (M) and Doppler offsets (Dc) with a resolution of at least
         [1 Hz] and an accuracy of better than [+/- 6 Hz].

6.25.2.3.2. FREQUENCY ERROR BUDGET

         6.25.2.3.2.1. The frequency error budget is a list of all of the
         contributors of error and the maximum error which shall be permitted.

         6.25.2.3.2.2. The SBS requirements are shown in the following table:

               6.25.2.3.2.3. TABLE 6-2 SBS FREQUENCY ERROR BUDGET

<TABLE>
<CAPTION>
            Term                                           Fractional Error                         Error (Hz)
            ----                                           ----------------                         ----------
<S>                                                        <C>                                      <C>
      CU Receive Error                                          1.7E-9                                       3
     CU Residual Doppler                                         N/A                                         1
      CU Transmit Error                                         1.9E-09                                      3
</TABLE>

6.25.2.3.2.4. The RFT requirements are shown in the following table:

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               6.25.2.3.2.5. TABLE 6-3 RFT FREQUENCY ERROR BUDGET

<TABLE>
<CAPTION>
              Term                                     Error (Hz)
              ----                                     ----------
<S>                                                    <C>
        RFT Down Conversion                                     1
        RFT Doppler tracking                                    5
        RFT Up Conversion                                       1
</TABLE>

         6.25.2.3.2.6. The total error of SBS and RFT, excluding errors due to
         Dbn estimation is +/- 10 Hz, 3 sigma, per Tx or Rx direction.

6.25.2.3.3. SECTION NOT USED

6.25.2.3.4. HPN FREQUENCY CONTROL

         6.25.2.3.4.1. The forward channel frequency pre-correction shall be
         done at the HPN ChM by using the Doppler frequency-related information
         provided by the SAN-OSS for the Spot Beam reference point and taking
         into account the feeder link Doppler and master oscillator error
         reported by the RFT.

         6.25.2.3.4.2. The bursts transmitted by the HPN Transmit ChU shall have
         the frequency precorrected such that they are received on earth at
         their nominal values corresponding to the intended Spot Beam reference
         point with an absolute accuracy of [100 Hz].

         6.25.2.3.4.3. The frequency correction associated with each HPN forward
         channel burst is expected to be different, since bursts are being
         continually sent to different satellite beams.

6.25.2.3.5. LINK (BI-DIRECTIONAL DEDICATED CHANNEL) FREQUENCY SYNCHRONISATION

6.25.2.3.5.1. Initial Acquisition (RACH and AGCH)

         6.25.2.3.5.1.1. The SBS shall detect the RACH transmission at frequency
         offsets of up to [+/-2500] Hz, at the SAN input.

         6.25.2.3.5.1.2. The SBS shall measure the RACH frequency offset
         relative its frequency at the demodulator input to an accuracy of +/-
         13 Hz 1 sigma with a C/N of -2.5 dB and +/-8 Hz 1 sigma at a C/N of 5.4
         dB in AWGN.

         6.25.2.3.5.1.3. The SBS shall use the measured frequency offset, along
         with other data, in position determination.

         6.25.2.3.5.1.4. The SBS shall transmit an initial frequency correction
         to the UT in the IMMEDIATE ASSIGNMENT message as defined in the Air
         Interface. The maximum correction is [+/- 2500] Hz, and the granularity
         is [8] Hz.

6.25.2.3.5.2. Forward Frequency Link Control

         6.25.2.3.5.2.1. The SBS and each RFT shall maintain the forward
         dedicated channel at the frequency reference point as described in
         Section 6.25.2.3.2, Frequency Error Budget.

6.25.2.3.5.3. Return Frequency Measurement and Link Control

         6.25.2.3.5.3.1. The SBS shall measure the medium penetration SDCCH/2
         frequency offset relative to its frequency at the demodulator input to
         an accuracy of +/- [20] Hz 1 sigma with a C/N of -2.5 dB and +/-12 Hz 1
         sigma at a C/N of 5.4 dB.

         6.25.2.3.5.3.2. The SBS shall measure the nominal penetration
         SDCCH6/TCH frequency offset relative to its frequency at the
         demodulator input to an accuracy of +/-12 Hz 1 sigma at a C/N of 5.4
         dB.

         6.25.2.3.5.3.3. The SBS shall use the measured frequency offsets for
         each physical SDCCH/2 burst, along with the timestamp at the point of
         measurement and other data, in position determination.

         6.25.2.3.5.3.4. The SBS shall be able to acquire the return direction
         of the dedicated channels with an initial frequency error of up to +/-
         [170] Hz relative to their nominal frequency.

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         6.25.2.3.5.3.5. The SBS shall inform the UT of frequency corrections to
         be made to the return channel in the SACCH message as defined in the
         Air Interface. Updates shall be made whenever the frequency error
         exceeds a configurable value (range 10 - 32 Hz nominal 20 Hz), with
         corrections up to a maximum of +/- 32 Hz with a granularity of 1 Hz.

         6.25.2.3.5.3.6. The SBS shall be able to provide these corrections at
         an average rate of once every [10] seconds (for all UTs), and at a
         maximum rate of once per 1 seconds per UT.

6.25.2.3.6. EFFECT OF VEHICLE MOTION AND VELOCITY

         6.25.2.3.6.1. The SBS shall be able to initiate and maintain
         communication with the UT with UT-induced Doppler up to 200 Hz provided
         that the rate of change of Doppler is less than 20 Hz/sec.

         6.25.2.3.6.2. If the UT velocity exceeds 5 km/hr at the time of the
         RACH, position determination accuracy will be reduced.

6.25.3. TERRESTRIAL NETWORK SYNCHRONISATION

         6.25.3.1. The MSSC shall be capable of being configured to take its
         frequency synchronisation from one of a set of communication interfaces
         in priority order, with a minimum of 4 interfaces being identified for
         this purpose. A particular interface shall be used as the
         synchronisation source if all interfaces of higher priority have
         failed.

         6.25.3.2. Where all external sources have failed the MSSC shall operate
         from a local synchronisation source. The quality, including holdover
         and free-running modes of operation, of the local source shall be that
         of a Secondary Reference Clock in accordance with ITU-T Recommendation
         G.812.

         6.25.3.3. The MSSC shall provide elastic buffers for time delay jitter
         and frequency synchronisation between the selected source of
         synchronisation and all other interfaces.

         6.25.3.4. The MSSC synchronisation functions shall be in accordance
         with WG360497 IPC Deliverable Control Document, Section 3.4.1.26.5
         Network Synchronisation.

         6.25.3.5. The TNM shall derive its timing reference at the terrestrial
         network interface (MSSC-TNM) from the incoming PCM and MCD signals and
         at the radio/satellite network interface (SBS-TNM) from the incoming
         MCD signals.

         6.25.3.6. Failure of any link input to the TNM shall not prevent
         traffic from other links being synchronised.

         6.25.3.7. The TNM shall provide time delay jitter and clock drift
         correction between

                  1.  the internal vocoder/multiplexer clock, and

                  2.  the incoming PCM and MCD signals from the MSSC and,

                  3.  MCD signals from the SBS, by means of an elastic buffer.

         6.25.3.8. Larger time errors including any difference between the
         clocks on the MSSC and SBS sides of the TNM shall be accommodated in
         the time domain to frequency domain conversion process of the vocoder.

         6.25.3.9. The SBS including its transmission clocks towards the TNM
         shall be frequency synchronised to the LES Frequency Reference.

         6.25.3.10. The FEC and timing part of the vocoder in the SBS shall
         accommodate shifts up to 20 msec between the Air Interface modem data
         and the signals to the vocoder. This function shall automatically
         select an alternative MCD slot to the TNM to minimise any delay in less
         than 10 seconds after a step change of up to 20 msecs.

         6.25.3.11. The configuration, operation and maintenance of the
         synchronisation sources and priorities for the MSSC shall be capable of
         control through the MSSC network management systems.

6.26. AIR INTERFACE ELEMENTARY AND STRUCTURED PROCEDURES

6.26.1. AIR INTERFACE ELEMENTARY PROCEDURES

         6.26.1.1. The IGF shall support the network side of all Air Interface
         elementary procedures necessary and sufficient to provide the services
         and system functions specified in this document.

         6.26.1.2. The IGF shall comply with the network side at least of the
         following elementary procedures as defined in the Air Interface
         documents available at time of contract.

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            6.26.1.3. TABLE 6-4 AIR INTERFACE ELEMENTARY PROCEDURES

                                   PROCEDURE

  Establishment of Multiple Frame (MF) operation
                      Normal establishment
                      Contention Resolution
  Information Transfer
                      Unacknowledged
                      Acknowledged
  Suspension/Resumption of MF operation
  Release of MF operation
  RR Connection Establishment
                      Immediate Assignment
                      Paging
  RR Connection Transfer
                      Measurement report
                      Channel Re-assignment
                      Path Re-definition
                      Channel Mode Modify
                      Cipher Mode Setting
                      Classmark Change
                      Classmark Interrogation (not supported by MSSC)
  RR Connection Release
  Idle Mode           System Information Broadcasting
  MM Connection Establishment
  MM Connection Information Transfer
                      TMSI Re-allocation
                      Authentication
                      Identification
                      IMSI Detach
                      Abort
                      Location Updating
                      Periodic Updating
                      IMSI Attach
                      Generic Location Updating
  MM Connection Release
  Call Establishment
                      Mobile originated
                      Mobile Terminated
  Call Clearing
                      Mobile initiated
                      Network initiated

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                                   PROCEDURE

Others

User Notification (MSSC supports only network to UT direction)
Call Rearrangements (MSSC supports only network to UT direction)
DTMF
In-band tones and announcements
Call collisions
Status
Call Re-establishment, UT side
Call Re-establishment, Network side (not supported by the MSSC)
Progress

6.26.2. STRUCTURED PROCEDURES

         6.26.2.1. The IGF shall support the network side of all structured
         procedures necessary and sufficient to provide the services and system
         functions specified in this document.

         6.26.2.2. The IGF shall comply with the network side of at least the
         following structured procedures.

                   6.26.2.3. TABLE 6-5 STRUCTURED PROCEDURES

                                   PROCEDURE

1.  UT Registration
2.  Location Update
3.  Follow on Procedure
4.  Mobile Originated Call Establishment
5.  Mobile Terminated Call Establishment
6.  CM Call Release
7.  IMSI Attach
8.  Diversity path addition (path redefinition)
9.  Diversity path removal (path redefinition)
10. Handover using path redefinition
11. SDCCH to TCH transition (using channel re-assignment)
12. Intra-Channel Manager handover (channel re-assignment)
13. Intra-SAN handover (inter channel manager channel re-assignment)
14. Inter-SAN handover (channel re-assignment), but not inter-MSSC
     handover
15. Mobile Originated SMS (in Idle mode and in call)
16. Mobile Terminated SMS (in Idle mode and in call)
17. HPN message delivery and acknowledgement
18. DTMF end-to-end procedures (in band)
19. Stand alone Supplementary Services
20. Supplementary Services while in call
21. In-Call Modification (Speech followed by fax)
22. ln-Call Modification (Alternate speech and fax)
23. Channel Mode Modification
24. Channel Assignment through Reassignment

         6.26.2.4. Where applicable the structured procedures shall be provided
         for both direct connection SBS-TNM-MSSC and for transit connection
         through a second TNM, i.e. SBS-TNM-TNM-MSSC.

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6.27. UT/SUBSCRIBER ACCESS MANAGEMENT AND CONTROL

         6.27.1. In order to comply with possible regulatory constraints on the
         usage of ICO radio terminals, the MSSC shall support the following
         types of access restriction on the usage of ICO UTs from within a
         particular geographic region (i.e. service region/service area):

                  1.       The prevention of access by any ICO UT.

                  2.       The prevention of access by any subscriber from a
                           particular home network and/or country, provided that
                           IMSI will determine the home network or the country
                           for which the prevention will take place.

                  3.       The prevention of access by individual ICO home
                           subscribers (subscribers contained in an ICO
                           HLR/ILR).

                  4.       The prevention of access by particular UTs. (F/R)

6.28. ACCESS CLASS HANDLING

6.28.1. GENERAL

         6.28.1.1. The IGF shall achieve access class handling by using the RACH
         control parameters of each BCCH for the purpose of managing the access
         of UTs to the ICO network

         6.28.1.2. The NMC shall provide access class handling information as
         follows:

                  1.       static traffic planning

                  2.       static frequency planning.

         6.28.1.3. The NMS shall provide:

                  1.       [fault and configuration management trigger].

         6.28.1.4. The SBS shall perform access class handling with the
         following consideration:

                  1.       dynamic traffic flow control.

6.28.2. BARRING OF ACCESS CLASSES

         6.28.2.1. For the purpose of barring, there shall be two groups of
         access classes namely normal access classes and special access classes.
         Each of these two groups of access classes shall have individual
         classes of their own.

         6.28.2.2. All individual access classes of the normal access class
         group shall have equal priority.

         6.28.2.2. The individual access classes of the special access class
         group shall have priority which are configurable.

         6.28.2.3. The SBS shall provide separate access class restrictions on
         barring for each spotbeam individually.

         6.28.2.4. SBS shall ensure a random selection of the individual access
         classes when barring is required. The randomisation shall be spread
         firstly over individual classes of the normal Access Class group
         ensuring no repeat of any one class or classes until having cycled
         through all the individual classes even if there had been a break in
         barring or a resumption of service over a certain period of time.

         6.28.2.5. The SBS shall:

                  1.       perform Access Class barring progressively and
                           incrementally before escalating to barring of the
                           entire spot-beam;

                  2.       only start barring the special access class group
                           when all normal access classes has been barred;

                  3.       Barring of individual classes (normal or special) can
                           be overview and selectable by OAM.

6.28.3. UNBARRING OF ACCESS CLASSES

         6.28.3.1. The unbarring of access classes shall be the complement of
         the barring process.

6.29. SUBSCRIBER CLASS HANDLING (F/R)

         6.29.1. The IGF shall support the Ericsson "subscriber class"
         (subscription type) feature. This feature permits each mobile
         subscriber to be associated with a subscription type that is
         independent of the subscriber's number (IMSI, MSISIDN). The
         subscription type may then be used to influence the routing, charging,
         accounting, etc. of the call. For further details see the following
         documents:

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                  1.       WG360081 Handling of subscription type for subscriber
                           dependent analysis in MSC/VLR

                  2.       WG360082 Handling of subscription type for subscriber
                           dependent analysis in GMSC.

                  3.       WG360837 Protocol specification for mobile subscriber
                           subscription type in MSC/VLR.

6.30. CLASSMARK HANDLING

         6.30.1. The SBS and MSSC shall use the UT Classmark, when available,
         to determine the service it shall provide to the UT.

         6.30.2. The SBS and MSSC shall use a default UT Classmark, when the
         UT's Classmark is not available, to determine the service it shall
         provide to the UT.

         6.30.3. The SBS and MSSC shall maintain a default Classmark that
         allows for:

                  1.       treatment and handling of the UT's radio access
                           before all UT characteristics is known

                  2.       initiation of call-control processes before or during
                           the time the UT is updating the network of its full
                           equipment characteristics.

         6.30.4. The SBS and MSSC shall use default Classmark information until
         such time that actual Classmark information is updated by the UT in
         part or in whole.

         6.30.5. The MSSC and SBS shall have the capability to query a UT about
         its Classmark

                  1.       any time during an active transaction

                  2.       both autonomously and/or under operator control.

         6.30.6. If a UT fails to respond to a Classmark query, the MSSC and
         SBS shall continue using the default Classmark.

6.31.    CHANNEL MODE MODIFY

6.31.1. CHANNEL MODE MODIFY IN THE SBS AND TNM

         6.31.1.1. The SBS and TNM shall support and use the channel mode
         modify air interface procedure when required to do so for alternate
         speech/fax and alternate speech/data services.

6.31.2. CHANNEL MODE MODIFY IN THE MSSC

         6.31.2.1. The MSSC shall support and use the Channel Mode Modify
         procedure to control the radio path from the SBS when providing fax
         and data services via the D-IWF.

         6.31.2.2. The D-IWF shall use the Channel Mode Modify procedure in
         order to adopt the user rate on the radio channel.

         6.31.2.3. The message speed used for the facsimile transmission is not
         known when setting up a facsimile connection. This speed is determined
         by T.30 negotiation between the facsimile machines. The facsimile
         adapter reads the frames of the negotiation. When the facsimile adapter
         has detected the rate, the chosen rate must be indicated, if this rate
         differs from the radio channel rate. The D-IWF will then initiate the
         Channel Mode Modify procedure, in order to change the user rate on the
         radio channel.

         6.31.2.4. The facsimile machines may decide to change to a lower
         facsimile transmission rate, due to bad line quality. This may happen
         during the inband call setup or in data phase. In both cases, the
         facsimile adapter performs a request for Channel Mode Modify.

         6.31.2.5. The facsimile machines may also change back to a higher
         facsimile transmission rate.

6.32. IN-CALL MODIFICATION

         6.32.1. In-call modification can be invoked once the call is in active
         state. The switching from current mode to the other mode is performed
         at the access without support from the network.

         6.32.2. In-call modification is invoked when a modification request is
         received from the mobile subscriber (calling or called MSs).

         6.32.3. The In-call modification procedure might be repeated several
         times. There is no limit concerning the number of switchings during a
         call.

         6.32.4. The MSSC/VLR checks the received request and if the requested
         mode is already the actual one, the MSSC/VLR completes the in-call
         modification procedure without initialising anything else. Otherwise,
         the MSSC/VLR informs the interworking unit about the in-call
         modification request.

         6.32.5. The MSC/VLR performs a new assignment procedure to adapt to the
         new mode.

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         6.32.6. The connection of the D-IWF is performed in the MSSC/VLR when
         switching from speech to fax. The connection of the D-IWF is released
         in the MSSC/VLR when switching from fax to speech.

         6.32.7. The MSSC/VLR orders the D-IWF to put into effect the requested
         mode.

         6.32.8. The MSSC/VLR completes the incall modification procedure by
         acknowledging the mobile subscriber and for fax call, wait for data
         transfer indication from D-IWF.

6.33. SUPPORT FOR DTMF

         6.33.1. The IGF shall support the sending and receiving of DTMF tones
         from/to the UT to the PSTN/ISDN as defined in the ICO Air Interface.

         6.33.2. The TNM shall support the in-band transport of DTMF tones in
         voice mode.

6.34. RELEASE OF RESOURCES

6.34.1. GENERAL

         6.34.1.1. The IGF shall apply controlled release of all allocated
         resources that are no longer in use. This shall apply to all:

                  1.       satellite spectrum, power resources, and equipment,

                  2.       internal ICONET resources, and

                  3.       resources external to ICONET but shared or used by
                           the ICO network (which may or may not have been
                           owned, managed or controlled by the ICO network) e.g.
                           the interface resources to the PSTN, PLMN, ISDN,
                           PSPDN.

6.34.2. RELEASE OF EQUIPMENT, SATELLITE SPECTRUM AND SATELLITE POWER RESOURCES

         6.34.2.1. The SBS shall release satellite spectrum, power resources,
         and equipment used for the call, promptly after the use of the resource
         has ended.

         6.34.2.2. The SBS shall release the satellite spectrum and power
         resources independently of other resources (internal or external to the
         IGF which prior to the moment of release are under common usage).

         6.34.2.3. In releasing the satellite spectrum, power resources, and
         equipment, the SBS shall release and make available those resources for
         other users within a 10 seconds period of time from the completion of
         the protocol exchange.

         6.34.2.4. The IGF shall only release allocated resources when the usage
         of such resources is no longer required.

         6.34.2.5. If an allocated resource is not used, the IGF shall release
         that resource following a time-out period.

         6.34.2.6. Where possible, the SBS shall co-ordinate with the UT the
         release of the allocated resources.

         6.34.2.7. All control and communications for releasing of Air Interface
         resources shall follow the ICO Air-Interface Specification release
         procedures.

6.34.3. RELEASE OF RESOURCES EXTERNAL TO IGF

         6.34.3.1. The IGF shall follow the appropriate interface specifications
         and standards that apply for that interface.

6.35. QUEUING

         6.35.1. SBS shall support Queuing Indication message in all cases of
         resource assignment when the resource is not available, except for
         diversity allocations, or where the queuing does not need to be advised
         to the MSSC.

         6.35.2. SBS-OMC shall support configuration of T11 timer.

         6.35.3. SBS shall support the queuing procedure conforming to ICO
         BSSMAP document 08.08.

         6.35.4. The TNM shall support the queuing procedure protocol between
         the SBS and the MSSC conforming to BSSMAP 08.08.

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6.36. CONGESTION AND OVERLOAD

         6.36.1. The MSSC shall provide internal means (such as queuing) for
         controlling the number of offered calls which are accepted so as to
         ensure proper handling of the calls which have been accepted.

         6.36.2. Congestion at MSSC shall use Overload message defined in BSSMAP
         08.08 to indicate to the TNM to reduce the traffic. (F/R)

         6.36.3. MSSC shall support timer T5 and T6. (F/R)

         6.36.4. Congestion at SBS shall use OVERLOAD message defined in BSSMAP
         08.08 to indicate to the TNM to reduce the traffic.

         6.36.5. SBS shall support timer T17 and T18.

         6.36.6. The TNM shall support the overload procedure protocol between
         the SBS and the MSSC confirming to BSSMAP 08.08 and will distribute the
         messages to all appropriate MSSCs and SBSs.

6.37. C7 SIGNALLING LINK MONITORING

         6.37.1. The MSSC signalling link monitoring function performs
         continuous fault supervision of all activated signalling links. It
         includes supervision of both the signalling terminal hardware and the
         message transfer ability.

         6.37.2. The signalling links are also checked by routine tests in
         accordance with the CCITT recommendation Q.707. This test is executed
         at regular intervals for each signalling link that is available for
         level 3 traffic. The length of the intervals can be set by application
         parameters. If the test fails, restoration of the signalling link is
         initiated.

         6.37.3. An alarm is generated if a signalling link cannot be restored
         after a failure. The alarm class are specified by command.

         6.37.4. Alarm ceasing is generated when the signalling link is restored
         or deactivated by command.

         6.37.5. Signalling Traffic Management function as per ITU-T Q.701
         Section 3.3.1 shall be required.

         6.37.6. Signalling Link Management function as per ITU-T Q.701 Section
         3.3.2 shall be required.

         6.37.7. Signalling Route Management function as per ITU-T Q.701 Section
         3.3.3 shall be required for those cases when quasi-associated mode of
         signalling is used.

         6.37.8. The TNM will perform similar monitoring of the C7 signalling
         links between the TNM and SBS.

         6.37.9. The SBS will support the monitoring of the C7 signalling links
         by the TNM.

6.38. VOICE CODING

         6.38.1. The Voice Codec shall perform all of the voice signal
         processing functions for the system.

         6.38.2. The Voice Codec shall receive Air Interface format frames and
         provide PCM format speech to the Terrestrial Interface.

         6.38.3. In the SAN transmit direction, this block accepts 64kbps PCM
         encoded (A- or u -law) speech and encodes it according to the ICO Voice
         Codec encoding algorithm.

         6.38.4. The Voice Codec will implement the Vocoding algorithm supplied
         by ICO, whose resource requirements interfaces and functionality are
         equivalent to those specified in NEC paper WG4-CN-60020-A3.

         6.38.5. The vocoder shall be switched to By-pass Mode when the Bearer
         Capability for the call indicates Fax/Data.

6.39. DTX

         6.39.1. The IGF shall support voice activation on voice type calls, in
         forward and reverse directions, transparent to the MSSC.

         6.39.2. The use of voice activation shall be determined on a per call
         basis and signalled during call setup.

         6.39.3. The Voice Codec will signal the Air Interface MODEM to activate
         the transmit carrier as required.

         6.39.4. The voice codec shall include dynamic voice activation control
         which adapts the voice activation threshold depending upon the
         background noise characteristics of the voice input.

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         6.39.5. When voice is inactive, silence frames shall be sent as defined
         in the Air Interface.

         6.39.6. On signalling channels, data bursts shall be sent when data is
         to be transferred. SACCH bursts shall be sent to maintain the link.

6.40. SYSTEM INFORMATION BROADCASTING

         6.40.1. The IGF shall implement the BCCH as defined in the Air
         Interface.

         6.40.2. The IGF shall generate system information to assist UTs in
         their Idle Mode operations. This information shall be in compliance
         with Idle Mode specifications stated in the ICO Air Interface
         reference.

         6.40.3. The SRMC shall distribute the system information to each SAN
         OSS as required.

         6.40.4. The SAN OSS shall provide the information to the SBS for
         broadcast via the BCCH/MP.

         6.40.5. The SBS shall add frame-number information and dynamic access
         control information to the information being broadcasted.

         6.40.6. The SBS shall broadcast this system information in accordance
         with the specifications stated in the Air Interface.

         6.40.7. The SBS shall be capable of broadcasting system information on
         the BCCH channel of the spot beams it controls.

         6.40.8. The SBSs of the IGF, taken together shall be capable of
         transmitting one or more BCCH in each spot beam of each satellite.

         6.40.9. The SBS shall be capable of starting and stopping BCCH
         transmission as planned by the SRMC independently in each spot beam as
         required for BCCH control transition from one SAN to another as beam
         control is handed over to a different SAN. The burst number shall be
         used to co-ordinate this transition of control.

         6.40.10. The SBS shall send the Sync Burst (SB) over SCH. The contents
         of SB are as described in the Air Interface and are generated locally
         at each SBS.

         6.40.11. The IGF shall have the capability to allow the configuration
         and control of the configurable part of the BCCH content by the
         NMC/SRMC operator.

6.41. RADIO ACCESS MANAGEMENT

6.41.1. PAGING CHANNEL (PCH)

         6.41.1.1. Requirements are as covered in Section 6.8.

6.41.2. ACCESS GRANT CHANNEL (AGCH)

         6.41.2.1. The IGF shall implement the AGCH as defined in the Air
         Interface.

         6.41.2.2. The IGF shall be capable of transmitting one or more AGCH in
         each spot beam of each satellite.

         6.41.2.3. The SBS shall allocate radio resource based on the
         information in the RACH and shall then transmit this information over
         the AGCH channel in the same spot beam as the RACH was received. This
         information shall include the type of channel (SDDCH/6 or SDDCH/2 or
         TCH), forward and return link frequencies, timeslot number and initial
         timing and frequency adjustments.

         6.41.2.4. The SBS shall release resources allocated if no link
         establishment request has been received in response to an AGCH message
         within a wait time as specified.

         6.41.2.5. The SBS shall provide the OAM capability to view current
         actual channel configuration as well as to change the channel
         configuration.

         6.41.2.6. After granting the radio resource to the UT, the SBS shall
         immediately start maintenance of the granted radio resource.

         6.41.2.7. If the SBS is unable to grant radio access to the UT, the SBS
         shall inform the UT of such failure indicating sufficient parameters to
         the UT as to when it can attempt a retry, as given in Air-Interface
         Specifications.

         6.41.2.8. If the traffic over AGCH exceeds the allocated capacity, the
         IGF shall queue access grant messages. If the queue is exceeded, then
         access grant messages will be dropped.

6.41.3. RANDOM ACCESS CHANNEL (RACH)

         6.41.3.1. The SBS shall implement the RACH as defined in the Air
         Interface.

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         6.41.3.2. The SBSs of the IGF, taken together, shall be capable of
         receiving one or more RACH in each spot beam of each satellite
         simultaneously.

         6.41.3.3. The SBS shall receive and process the RACH request as
         described in Section 6.41.2, Access Grant Channel (AGCH).

         6.41.3.4. The SBS shall provide the OAM capability to view current
         actual channel configuration as well as to change the channel
         configuration.

6.41.4. FAST AND SLOW ASSOCIATED CONTROL CHANNELS (FACCH AND SACCH)

         6.41.4.1. The SBS shall implement the FAACH and SACCH as defined in
         the air interface.

         6.41.4.2. The SBS shall implement FACCH and SACCH (transmit/receive)
         for each connection.

         6.41.4.3. The TNM shall originate and receive FACCH content specific to
         vocoder operation and shall identify these frames as FACCH frames.

         6.41.4.4. The SBS shall generate SACCH/FACCH content for other usage
         (non-vocoder) and in the case of FACCH shall insert them in place of
         voice frames (or silence).

6.42. RADIO SESSION MANAGEMENT

6.42.1. SESSION INITIATION REQUIREMENTS

6.42.1.1. GENERAL

         6.42.1.1.1. The requirements related to establishing an RR session over
         SDCCH are as follows:

                  1.       The SBS shall support layer 2 link establishment
                           procedures as described in ICO Air Interface;

                  2.       The SBS shall support the SDCCH/TCH transition when
                           a connection needs to be switched from signalling to
                           traffic.

6.42.1.2. CAPABILITIES FOR SIGNALLING RESOURCE ALLOCATION

         6.42.1.2.1. The SBS shall be capable of bi-directional communication
         for signalling between the UT and the network:

                  1.       through a medium penetration DCCH;

                  2.       through a nominal penetration DCCH;

                  3.       through normal TCH resources set to 'signalling only'
                           when used as a signalling resource.

         6.42.1.2.2. The SBS shall be capable of communicating via any of the
         above channel types using:

                  1.       a single satellite path;

                  2.       diversity satellite paths.

         6.42.1.2.3. The SBS shall support the DCCH configurations as given in
         Air Interface.

         6.42.1.2.4. The SBS shall support the DCCH configurations through any
         channel pre-allocated to it by the SRMC.

6.42.1.3. SIGNALLING RESOURCE ALLOCATION PROCEDURES

         6.42.1.3.1. The SBS shall allocate an initial signalling resource,
         following receipt of the RACH. Subsequently:

                  1.       update the allocation when practical and required to
                           optimise use of satellite spectrum and power
                           resources in the signalling phase;

                  2.       if the allocated signalling resource allocation is
                           not compatible with the allocation type needed for
                           the traffic phase of the call, change the allocation
                           to one compatible with the traffic phase of the call;

                  3.       change the allocation when required for link
                           maintenance.

         6.42.1.3.2. The SBS shall select the initial signalling resource,
         compatible with the expected allocation type / penetration level
         requirement for the signalling phase based on:

                  1.       the reason(s) given by the UT for wanting to access
                           the network;

                  2.       an estimate of the penetration level required based
                           on the signal level of RACH as measured;

                  3.       the availability of satellite spectrum, equipment,
                           and power resources for signalling.

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         6.42.1.3.3. The SBS shall have the capability of allocating the
         initial signalling resource in the same spot beam as that on which the
         RACH was received.

         6.42.1.3.4. The SBS shall update signalling resource allocations when
         a signalling resource of a different level of penetration is needed or
         can be allowed based on:

                  1.       the equipment characteristics of the UT;

                  2.       an estimate of the penetration level needed based
                           onlink monitoring of the existing signalling
                           resource;

                  3.       the availability of equipment, satellite spectrum and
                           power resources for signalling.

6.42.1.4. CAPABILITIES FOR TRAFFIC RESOURCE ALLOCATION

         6.42.1.4.1. The IGF shall be capable of bi-directional communications
         for traffic between the UT and an external network through TCH

         6.42.1.4.2. The SBS shall be capable of communicating via TCH using:

                  1.       a single satellite path

                  2.       diversity satellite paths.

         6.42.1.4.3. The SBS shall select a TCH corresponding to the applicable
         Z-Arc.

         6.42.1.4.4. The SBS shall be capable of supporting the TCH
         configurations as given in the Air Interface.

         6.42.1.4.5. The SBS shall support the TCH configurations through any
         channel pre-allocated by the SRMC.

         6.42.1.4.6. The SBS shall be capable of supporting a TCH for
         traffic/signalling and signalling only usage.

         6.42.1.4.7. The SBS shall provide the OAM capability to view current
         actual channel configuration as well as to change the channel
         configuration

         6.42.1.4.8. The IGF shall be capable of communicating with the UT for
         traffic resource allocation using the Air Interface Elementary
         Procedures and Structured Procedures.

6.42.1.5. TRAFFIC RESOURCE ALLOCATION PROCEDURES

         6.42.1.5.1. The requirements in this section for early and late
         assignment are subject to review as part of the development of the Air
         Interface structured procedures.

         6.42.1.5.2. According to the radio bearer capability required for the
         call, the SBS shall be capable of:

                  1.       continuing to use the existing (signalling) resource
                           in the traffic phase of the call;

                  2.       allocating a new resource for the traffic phase of
                           the call immediately after the radio bearer
                           capability required for the call has been determined
                           (early assignment);

                  3.       allocating a new resource for the traffic phase of
                           the call as soon as practicable prior to call
                           connection (late assignment).

         6.42.1.5.3. The SBS shall be capable of:

                  1.       using early or late assignment if the penetration
                           level required for the radio bearer capability for
                           the traffic phase of the call is the same as in the
                           signalling phase;

                  2.       using late assignment if the penetration level
                           required for the radio bearer capability for the
                           traffic phase of the call is less than in the
                           signalling phase. In such case the traffic resource
                           allocation shall be made only after the penetration
                           level associated with the radio bearer capability for
                           the call is compatible with an estimate of the
                           penetration level needed based on link monitoring of
                           the existing signalling resource.

         6.42.1.5.4. The SBS shall allocate a new resource for the traffic
         phase of the call or support continued use of the existing resource
         according to:

                  1.       the radio bearer capability required for the traffic
                           phase of the call

                  2.       the equipment characteristics of the UT

                  3.       the priority of the request for TCH resources

                  4.       the availability of satellite spectrum and power
                           resources to support the required radio bearer
                           capability for the traffic phase of the call.

         6.42.1.5.5. If the TCH can be allocated, the SBS shall:

                  1.       allow a limited time for the UT to take up the
                           allocated TCH resources

                  2.       until such limited time has expired, keep both the
                           TCH and the SDCCH resources open for the UT's use

                  3.       after such limited time if the TCH resources are not
                           taken up, release the TCH resources for further use.

         6.42.1.5.6. If the allocated TCH resource is successfully taken up by
         the UT, the SBS shall:

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                  1.       release the signalling resource

                  2.       continue with the link maintenance that has been
                           started in the signalling phase.

6.43. LINK MONITORING

6.43.1. DEDICATED CHANNELS

         6.43.1.1. The SBS shall have capability to perform link monitoring on
         each forward and return path of each dedicated channel allocation.
         6.43.1.2. The SBS shall have capability to measure the following on
         the return paths:

                  1.       Timing offset and frequency offset from reference
                           time and frequency

                  2.       Received Signal Strength

                  3.       Received Signal Quality:

                           a)       Carrier/Noise ratio

                           b)       Frame Error Rate (FER) on the channels which
                                    have CRC on Layer 2 Frames.

         6.43.1.3. The SBS shall have capability to receive from the UT reports
         of the following on forward paths:

                  1.       Received Signal Presence and Strength

                  2.       Received Signal Quality:

                           a)       Carrier/Noise ratio

                           b)       Frame Error Rate (FER) on those channels
                                    which have CRC on Layer 2 Frames.

         6.43.1.4. The SBS shall have capability to instruct the UT on network
         requirements for link monitoring of forward direction dedicated
         channels as required in the Air Interface Documents.

         6.43.1.5. The accuracy of the SBS measurements of received dedicated
         channel signal strength and received dedicated channel signal quality
         shall be [TBD].

6.43.2. BCCH

         6.43.2.1. The SBS shall have capability to receive from UTs reports of
         the following about one or more BCCHs:

                  1.       Received Signal Presence and Strength

                  2.       Received Signal Quality:

                           a)       Carrier/Noise ratio

                           b)       Frame Error Rate (FER)

         6.43.2.2. The SBS shall have capability to instruct UTs individually
         during calls on which BCCHs to monitor:

6.43.3. RACH

         6.43.3.1. The IGF shall have capability to monitor the following for
         each RACH message received

                  1.       Timing offset and frequency offset from reference
                           time and frequency

                  2.       Received Signal Strength

                  3.       Received Signal Quality : Carrier/Noise ratio

         6.43.3.2. The accuracy of the SBS measurements of RACH received signal
         strength and received signal quality shall be [TBD].

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6.44. SECTION NOT USED

6.45. SECTION NOT USED

6.46. SECTION NOT USED

6.47. POWER CONTROL

6.47.1. SAN AUTOMATIC POWER CONTROL

         6.47.1.1. The RFT shall have an automatic power control subsystem to
         compensate for path loss changes, on the SAN to satellite link,
         satellite receive antenna gain changes with satellite motion, and
         propagation loss changes on the SAN to satellite link. The signal level
         at the satellite C-band receive antenna output shall be controlled with
         respect to the value corresponding to the reference SAN EIRP value
         input by the SBS.

6.47.2. SAN EIRP CONTROL FOR TCH AND DCCH

         6.47.2.1. The SBS shall control the instantaneous (closed loop) value
         of SAN EIRP value provided to the RFT for each path of each individual
         TCH/DCCH channel as follows

                  1.       At the start of each channel allocation and update
                           once per minute, the SBS shall calculate a SAN EIRP
                           correction from the spot beam reference value in
                           accordance with satellite S-band antenna gain in the
                           direction of the UT's position in the spot beam. The
                           SBS shall utilise this correction factor to set and
                           update corrected values of the Reference Maximum SAN
                           EIRP limit and the Reference Initial SAN EIRP.

                  2.       The SBS shall set the initial SAN EIRP provided to
                           the RFT at the start of each path allocation
                           according to the Corrected Reference Initial SAN
                           EIRP.

         6.47.2.2. The SBS shall use closed loop SAN EIRP control for the
         duration of each path allocation.

         6.47.2.3. The SBS shall use the Corrected Reference Maximum SAN EIRP as
         an upper limit on the SAN EIRP value provided to the RFT.

         6.47.2.4. The SBS shall be capable of determining from UT reports the
         actual channel quality value in comparison with the Target Channel
         Quality value.

         6.47.2.5. The SBS shall be able to estimate expected forward link
         channel quality based on forward link channel quality measurements
         [alone or configurably as a combination of forward and return link
         channel quality measurements].

         6.47.2.6. The SBS shall continuously control SAN EIRP for each channel
         to the minimum value required to meet the Target Channel Quality value,
         subject to the time varying Corrected Reference Maximum SAN EIRP
         limits.

         6.47.2.7. The SBS shall implement SAN EIRP control algorithms which
         take account of channel operational modes, number of paths (single or
         diversity), DTX or not, diversity modes, codec rate etc.

         6.47.2.8. The SBS shall modify SAN EIRP at the transmit burst
         immediately following the receipt of measurement reports from the UT
         according to the appropriate algorithms.

         6.47.2.9. The SBS shall modify SAN EIRP to the required value within a
         resolution of [0.5] dB.

         6.47.2.10. Up to [10] previous measurement reports shall be used to
         determine the current SBS EIRP.

         6.47.2.11. The SBS shall have the capability to increase SAN EIRP based
         on SBS link monitoring (i.e. in the event of a sudden reduction in
         return link quality).

         6.47.2.12. The SBS shall implement capability to configure the
         parameters of the control algorithms to enable system capacity versus
         performance to be optimised based on operational experience.

         6.47.2.13. The IGF shall implement the following configurable options:

                  1.       to control the SAN EIRPs for each path in unison or
                           separately

                  2.       to estimate expected forward link channel quality
                           based on forward link channel quality measurements
                           alone or a combination of forward and return link
                           channel quality measurements

                  3.       to suspend transmissions on a path if it becomes
                           blocked.

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6.47.3. SAN EIRP CONTROL FOR FORWARD CONTROL CHANNELS

         6.47.3.1. The SBS shall set and periodically adjust the SAN EIRP
         provided to the RFT for the following forward control channels:

                  1.       BCCH,

                  2.       PCH,

                  3.       AGCH.

         6.47.3.2. The HPN system shall set and periodically adjust the SAN EIRP
         provided to the RFT for the following forward control channels:

                  1.       BCCH/HP,

                  2.       SCH/HP,

                  3.       NCH/HP
         according to the Reference Open Loop SAN EIRP values specified by
         the SRMC.

6.47.4. UT EIRP CONTROL FOR TCH AND DCCH

         6.47.4.1. The SBS shall control the instantaneous value of UT EIRP for
         each path of each individual TCH/DCCH channel as follows:

                  1.       The SBS shall set a planned initial UT EIRP value at
                           the start of each path allocation.

                  2.       The SBS shall use closed loop UT EIRP control for the
                           duration of each path allocation.

                  3.       The SBS shall use the Maximum UT EIRP as an upper
                           limit on the closed loop UT EIRP control.

         6.47.4.2. The SBS shall be capable of determining the actual channel
         quality value in comparison with the Target Channel Quality value.

         6.47.4.3. The SBS shall be able to estimate expected return link
         channel quality based on return link channel quality measurements alone
         or configurably as a combination of return and forward link channel
         quality measurements.

         6.47.4.4. The SBS shall continuously control UT EIRP for each
         satellite path of each TCH/DCCH channel to the minimum value required
         to meet the Target Channel Quality value, subject to the maximum UT
         EIRP limit.

         6.47.4.5. The SBS shall implement UT EIRP control algorithms which
         take account of channel operational modes, number of paths (single or
         diversity), DTX or not, diversity modes, codec rate, etc. and adapt to
         ensure that the EIRP is the minimum appropriate to the channel
         operational mode.

         6.47.4.6. The SBS shall instruct the UT to modify its EIRP whenever the
         actual channel quality, as measured in the SBS, differs from the
         Target Channel Quality value by an amount equivalent to 1dB or more in
         received SNR. These instructions shall be carried in the SACCH at a
         rate up to once per SACCH frame.

         6.47.4.7. Channel quality estimates shall be made at the SACCH frame
         rate based on received TCH and SACCH bursts received in the previous
         SACCH frame. Adjustment instructions shall be made to the UT in the
         next forward link SACCH after the adjustment is determined.

         6.47.4.8. A minimum of 1 and a maximum of [10] previous channel quality
         estimates shall be used to determine the current UT EIRP.

         6.47.4.9. The NMS shall implement the capability to configure the
         parameters of the control algorithms of the SBS to enable system
         capacity versus performance to be optimised based on operational
         experience.

         6.47.4.10. The IGF shall implement the following configurable options:

                  1.       to control the UT EIRPs for each path in unison or
                           separately

                  2.       to estimate expected return link channel quality
                           based on return link channel quality measurements
                           alone or a combination of return and forward link
                           channel quality measurements.

         6.47.4.11. The SBS shall control the UT EIRP using air interface
         procedures.

6.47.5. RACH

         6.47.5.1. The SBS shall transmit in the BCCH a parameter provided by
         the NMS as an operator configurable parameter to control the UT EIRP.

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6.47.6. ACK/HP

         6.47.6.1. The SBS shall transmit in the BCCH a parameter provided by
         the NMS as an operator configurable parameter for the control of the UT
         EIRP during acknowledgement to the HPN.

6.48. SAN COVERAGE AND MANAGEMENT

6.48.1. SAN COVERAGE ACCESS

6.48.1.1. GENERAL

         6.48.1.1.1. The SBS shall be capable of sharing a satellite with other
         SANs.

         6.48.1.1.2. The SBS shall not share spot beam control channels (SCH,
         BCCH, RACH, PCH, or AGCH) simultaneously with other SANs.

         6.48.1.1.3. The SBS shall be capable of acquiring and relinquishing
         control of common channels, to sequentially share a spot beam with
         another SAN, following a plan provided by the SRMC.

         6.48.1.1.4. The SBS shall be able to use different traffic channels
         including those using the same frequency simultaneously with other SBSs
         in the same spot beam as configured by the SRMC.

         6.48.1.1.5. The SRMC shall supply the BCCH BSAN list that will indicate
         to the UTs which SANs have been allocated traffic channels in any beam.

         6.48.1.1.6. The SAN, when allocated traffic channels on a spot beam
         whose control channels are provided by another SAN, need not use those
         channels for the initial assignment, but shall be able to use them for
         subsequent diversity or handover.

6.48.1.2. CALL SET-UP WHEN MULTIPLE SANS SHARE ACCESS TO A SPOT BEAM FOR
TCH/DCCH

         6.48.1.2.1. The SAN processing the control channels (CCCH control SAN)
         for the spot beam shall process the call setup as follows:

                  1.       The CCCH control SAN shall assume that the UT will
                           indicate the SAN required for the radio connection
                           (the Radio Connection SAN) via the Initial Message.
                           (Not covered in Air Interface Version 3.0).

                  2.       The CCCH control SAN shall assume that the UT will
                           indicate its currently registered SAN via the Initial
                           Message.

         6.48.1.2.2. Following receipt of the Initial Message, the CCCH control
         SAN shall

                  1.       Set up a signalling connection to the MSSC of the
                           registered SAN.

                  2.       As soon as is practicable, perform a SAN-to-SAN
                           handover to the Radio Connection SAN if this is not
                           the same as the CCCH control SAN.

6.48.2. COVERAGE PLANNING

6.48.2.1. IGF ACCESS PLANNING

         6.48.2.1.1. The SRMC shall provide a capability (algorithm) to generate
         plans specifying which SANs provide the following services in each spot
         beam of each satellite as a function of time:

                  1.       TCH/DCCH

                  2.       CCCH

                  3.       HPN.

6.48.2.2. TCH/DCCH SERVICE

         6.48.2.2.1. The SRMC shall provide an algorithm to determine the
         Nominal SAN for each point on the ground by dividing the earth's
         surface into ground cells. The SRMC shall for each ground cell identify
         a Nominal SAN based on best average radio connectivity via the
         constellation of satellites.

         6.48.2.2.2. The SRMC shall also identify which SANs enable diversity
         connections to each ground cell via any pair of satellites mutually
         visible to the SAN and a UT at the ground cell.

         6.48.2.2.3. The SRMC shall implement an algorithm which supports a
         configurable combination of the following:

                  1.       One or more SANs shall always be able to provide
                           TCH/DCCH service in every spot beam of every
                           satellite.

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                  2.       The Nominal SAN for each ground cell shall be able to
                           provide TCH/DCCH service in each spot beam of each
                           satellite which provides coverage of the ground cell,
                           wherever there exist any satellites which have mutual
                           visibility of the SAN and the UT.

                  3.       Each SAN able to provide diversity connection to a
                           ground cell shall be able to provide TCH/DCCH service
                           in each spot beam of each satellite covering the
                           ground cell.

                  4.       Before TCH/DCCH service is transferred from one SAN
                           to another, there shall be a transitional period
                           during which both SANs are capable of simultaneously
                           providing TCH/DCCH service. The transitional periods
                           shall be of the order of the time taken for the
                           coverage to change by the width of a beam.

                  5.       TCH/DCCH service shall be provided through any SAN
                           with which any UT may be registered, wherever there
                           exist any satellites which have mutual visibility of
                           the SAN and the UT.

                  6.       The operator shall be able to specify points on the
                           ground for which TCH/DCCH service is to be provided
                           by one or more SANs.

                  7.       In the event of a sun outage, service shall be
                           provided by alternative satellites and SANs, wherever
                           possible, subject to the potential performance of the
                           satellite constellation and the SANs.

6.48.2.3. CCCH SERVICE

         6.48.2.3.1. The SRMC shall implement an algorithm which supports a
         configurable combination of the following:

                  1.       Each spot beam of each satellite shall consist of one
                           or more radio cells. For each radio cell one SAN
                           shall transmit the BCCH, PCH and AGCH and receive one
                           or two RACH.

                  2.       Selection of the SAN to provide CCCH service in each
                           radio cell shall take account of the need for all
                           SANs providing TCH/DCCH service to share those
                           control channels.

6.48.2.4. HPN SERVICE

         6.48.2.4.1. Coverage functions for HPN are covered in Sections 6.52.5,
         6.52.8, and 6.52.9.

6.49. SATELLITE EIRP MANAGEMENT

6.49.1. SATELLITE RF POWER MANAGEMENT PARAMETERS

6.49.1.1. GENERAL

         6.49.1.1.1. The SRMC shall determine the following time varying Forward
         Direction Satellite RF Power Management Parameters according to
         operator configurable rules as defined below.

6.49.1.2. FORWARD DIRECTION TCH/DCCH CHANNELS

                  1.       Maximum User Link Margin versus Elevation profile

                  2.       Initial User Link Margin versus elevation profile

                  3.       Satellite Load Management Criteria (TBD for planned
                           load shedding on highly loaded satellites)

         independently for each combination of:

                  1.       Service Type including all combinations of

                           a)       radio bearer capability (including channel
                                    mode) and

                           b)       UT type

                  1.       satellite and

                  2.       SAN

6.49.1.3. BCCH/SCH/PCH/AGCH CHANNELS

         6.49.1.3.1. Nominal User Link Margin versus Elevation profiles
         independently for each:

                  1.       channel type (BCCH/SCH/PCH/AGCH)

                  2.       satellite and

                  3.       SAN

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6.49.1.4. BCCH/HP, SCH/HP, NCH/HP

         6.49.1.4.1. Nominal User Link Margin versus Elevation profiles
         independently for each:

                  1.       channel type (BCCH/HP, SCH/HP, NCH/HP)

                  2.       satellite and

                  3.       SAN

6.49-1.5. SBS AND HPN CONTROL PARAMETERS AND NMS/SAN-OSS MONITORING PARAMETERS

6.49.1.5.1. GENERAL

         6.49.1.5.1.1. The SRMC shall utilise the Satellite Power Management
         Parameters to determine the following time varying SBS and HPN Control
         Parameters in Sections 6.49.1.5.2, 6.49.1.5.3, 6.49.1.5.4, and
         6.49.1.5.5.

6.49.1.5.2. FORWARD DIRECTION TCH AND DCCH CHANNELS (SBS)

                  1.       Reference Maximum SAN EIRP limit (per carder) by spot
                           beam by service type.

                  2.       Reference Initial SAN EIRP limit (per carder) by spot
                           beam by service type

                  3.       Satellite Load Management Criteria

                  4.       Target signal quality value for forward path power
                           control.

6.49.1.5.3. FORWARD DIRECTION CCCH CHANNELS (SBS)

                  1.       Reference Open Loop SAN EIRP (per carrier) by spot
                           beam

6.49.1.5.4. FORWARD DIRECTION HPN CHANNELS (HPN)

                  1.       Reference Open Loop SAN EIRP (per carrier) by spot
                           beam

6.49.1.5.5. SATELLITE EIRP MONITORING PARAMETERS

                  1.       Maximum weighted aggregate forward direction SAN
                           EIRP by satellite corresponding to the planned
                           satellite EIRP (for the NMS),

                  2.       SAN EIRP weighting factors by spot beam for
                           calculation of weighted aggregate SAN EIRP according
                           to differences in the satellite transponder gain in
                           each beam (for the SAN-OSS).

6.49.1.5.6. NMC CONFIGURED PARAMETERS

         6.49.1.5.6.1. The NMC shall provide for operational configuration of

                  1.       Maximum UT transmit power level by service type (SBS)

                  2.       Target signal quality value for return path power
                           control (SBS)

                  3.       Satellite beam gain profile characteristics (SBS)

                  4.       Beam transponder gain values (SRMC)

6.49.1.6. SATELLITE RF POWER PLANNING

         6.49.1.6. 1. Based on satellite position, SAN location, predicted
         traffic loading characteristics, and individual satellite
         characteristics, the SRMC shall allocate satellite forward RF power to
         the SANs for use in a specific satellite by the SBS and HPN.

         6.49.1.6.2. The SRMC shall apportion the total available satellite
         forward RIF power between each type of forward direction CCCH/HPN and
         TCH/DCCH channels.

         6.49.1.6.3. The SRMC shall apportion the satellite forward RF power for
         TCH/DCCH amongst the different service types.

         6.49.1.6.4. The SRMC shall provide capabilities to plan the use of
         satellite RF power between BCCH/SCH and HPN to provide a constant
         satellite load for each satellite (nominally 20% of the power of each
         satellite but adjustable around this figure) with multiple simultaneous
         bursts of BCCH interleaved with one or more bursts of HPN.

6.49.2. SATELLITE TRANSPONDER GAIN VALUE ENTRY AND USAGE

         6.49.2-1. The NMC shall provide capability for an operator to enter
         values of forward and return direction transponder gain for each spot
         beam of each satellite.

         6.49.2.2. The SRMC shall use the forward transponder gain parameters in
         the calculation of Reference SAN EIRP values.

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6.49.3. RULES FOR GENERATION OF SATELLITE POWER MANAGEMENT PARAMETERS

         6.49.3.1. Nominal Capacity is the number of user channels which can be
         supported by the available satellite RF power with nominal link margin
         and without use of Satellite Load Management Criteria.

         6.49.3.2. Predicted Load is the number of user channels expected to be
         needed based on traffic predictions.

         6.49.3.3. The SRMC shall generate the Satellite RF Power Management
         parameters as a function of time according to available RF satellite
         power and Predicted Load requirements according to the following rules:

         6.49.3.4. The link margin values shall be increased or decreased
         according to one of three link margin versus elevation profile tables.
         (F/R)

         6.49.3.5. Predicted Load equal to Nominal Capacity

                  1.       The Link Margin values shall be set at nominal
                           values.

                  2.       The Satellite Load Management Criteria are nominal
                           i.e. no satellite preference constraints.

         6.49.3.6. Predicted Load less than Nominal Capacity

                  1.       The Link Margin values shall be increased above
                           nominal.

                  2.       The Satellite Load Management Criteria are nominal
                           i.e. no satellite preference constraints.

         6.49.3.7. Predicted Load greater than Nominal Capacity

                  1.       The Link Margin values shall be set at nominal
                           values.

                  2.       The Satellite Load Management Criteria are set to
                           save EIRP on the most highly loaded satellites.

         6.49.3.8. Predicted Load much greater than Nominal Capacity

                  1.       The Link Margin values shall be reduced below nominal
                           values.

                  2.       The Satellite Load Management Criteria are set to
                           save EIRP on the most highly loaded satellites.

         6.49.3.9. The SRMC shall generate the Power Management parameters up to
         24 hour in advance of when they are to be used.

         6.49.3.10. Satellite Load Management Criteria shall include:

                  1.       off loading of traffic at low elevations to adjacent
                           less highly loaded satellites

                  2.       implementation of diversity power saving mode

                  3.       reduction in use of diversity.

6.49.4. DETERMINATION OF SBS AND HPN AND SAN-OSS CONTROL PARAMETERS

6.49.4.1. REFERENCE SAN EIRP (PER CARRIER) VALUES

6.49.4.1.1. FORWARD DIRECTION TCH AND DCCH (SIBS)

         6.49.4.1.1.1. The SRMC shall calculate the:

                  1.       Reference Maximum SAN EIRP (per channel) limit by
                           spot beam by service type

                  2.       Reference Initial SAN EIRP (per channel) limit by
                           spot beam by service type corresponding to the:

                           a)       Maximum User Link Margin vs. Elevation
                                    profile by service type

                           b)       Initial User Link Margin vs. Elevation
                                    profile by service type

         using the parameters and to the accuracy defined in Section 6.49.4.3,
         Accuracy of Reference SAN EIRP Calculation.

6.49.4.1.2. BCCH/SCH/PCH/AGCH (SBS)

         6.49.4.1.2.1. The SRMC shall calculate the

                  1.       Reference Open loop SAN EIRP by spot beam by channel
                           type corresponding to the:

                           a)       Nominal User Link margin vs. Elevation
                                    profile by channel type using the parameters
                                    defined in Section 6.49.4.3, Accuracy of
                                    Reference SAN EIRP Calculation.

6.49.4.1.3. BCCH/HP, SCH/HP, NCH/HP (HPN)

         6.49.4.1.3.1. The SRMC shall calculate the

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                  1.       Reference Open Loop SAN EIRP by spot beam by channel
                           type corresponding to the:

                            a)       Nominal User Link margin vs. Elevation
                   profile by channel type using the parameters defined in
                   Section 6.49.4.3, Accuracy of Reference SAN EIRP Calculation.

6.49.4.2. PARAMETERS FOR REFERENCE MAXIMUM AND INITIAL SAN EIRP CALCULATION

         6.49.4.2.1. The following parameters shall be used:

                  1        Mobile-link space spreading (1/R(2)) loss, satellite
                           to LIT, by spot beam

                  2        Mobile-link spot-beam transmit gain:

                           a)       at the centre of the spot beam coverage
                                    (TCH/DCCH)

                           b)       at the edge of coverage of the spot beam
                                    (BCCH/SCH/PCH/AGCH and BCCH/HP SCH/HP and
                                    NCH/HP)

                  3        satellite forward-link (C to S band) transponder gain
                           in each transponder channel

                  4        Nominal value of User Terminal G/T

                  5        Planned Maximum Link Margin and Planned Initial Link
                           Margin corresponding to the elevation at the centre
                           of the spot beam

                  6        Nominal feeder-link spreading (1/R(2)) loss, assuming
                           that the SAN is at the subsatellite point of the
                           satellite.

6.49.4.3. ACCURACY OF REFERENCE SAN EIRP CALCULATION

         6.49.4.3.1. The SRMC shall determine the reference SAN EIRP values with
         a maximum calculation error of [+/- 0.1] dB from the value needed for
         the planned link margin excluding the errors due to source data
         accuracy.

6.49.5. SATELLITE EIRP MONITORING

6.49.5.1. SAN/SATELLITE EIRP CALCULATIONS

         6.49.5.1.1. The SBS shall calculate the actual aggregate SBS transmit
         EIRP relative to the reference SAN EIRP by satellite spot beam
         (including allowance for voice activity factor) and shall transfer the
         data to the SAN-OSS.

         6.49.5.1.2. The SAN-OSS shall calculate the actual weighted aggregate
         SAN transmit EIRP in total by satellite corresponding to the actual
         traffic from the data for each spot beam provided by the SBS, as a
         performance data for long term planning purposes.

         6.49.5.1.3. The NMS shall provide calculation of the actual total
         satellite S-band RF power of each satellite.

6.49.6. SATELLITE RF POWER OVERLOAD MANAGEMENT

         6.49.6.1. The NMS shall implement capabilities for RF power monitoring
         in the event that satellite RF power demand exceeds predicted
         requirements.

         6.49.6.2. The NMS shall have the capability to determine from PCS
         telemetry data, whenever applicable:

                  1.       estimates of the total satellite S-band RF power
                           consumption for each satellite.

                  2.       whether the satellite is being driven into overload.

         6.49.6.3. The NMS shall collect the monitored data from the SAN, and
         shall generate an alarm that signifies when an overload condition
         starts and ends for each satellite in total and by SAN.

         6.49.6.4. In the event of detection of overload of any satellite, the
         SRMC shall take it into consideration for the next operational plan.

         6.49.6.5. In the event of detection of overload of any satellite, the
         NMS shall have the capability [for the operator] to reconfigure the SBS
         to perform one or more of the following:

                  1.       Implement the diversity power saving mode,

                  2.       Decrease the diversity ratio in steps until no
                           diversity occurs,

                  3.       Stop the establishment of new calls.

6.50. SPECTRUM MANAGEMENT

6.50.1. FUNCTIONAL REQUIREMENTS FOR THE GENERATION AND DISTRIBUTION OF SRMC DATA

         6.50.1.1. The functional requirements for the SRMC shall be:

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                  1.       Generation of BTFPs and assignment of them to SANs.

                  2.       Generation of Satellite channelisation plans (i.e.,
                           Transponder plans) and assignment of them to SANs.

                  3.       Generation of frequency related parameter contents
                           for system information broadcasting.

         6.50.1.2. The NMS shall:

                  1.       Establish and maintain a database of BTFPs and
                           Satellite Channelisation Plans in advance of the time
                           they are needed and a log of which data has been sent
                           and acknowledged.

                  2.       Communicate the data to the SANs and PCSs.

                  3.       Manage the data flows to ensure that the data is
                           synchronised between NMS, SANs and PCSs.

                  4.       Generate alarms and provide facilities for recovery
                           in the event that the data is not sent and
                           acknowledged successfully.

6.50.2. PERFORMANCE REQUIREMENTS

6.50.2.1. GENERAL

         6.50.2.1.1. The capabilities of the SRMC shall be demonstrated by a
         combination of means of design analysis, simulation and test as defined
         in the following sections.

         6.50.2.1.2. The requirements shall be met for test purposes.

6.50.2.2. TRAFFIC LEVELS VERSUS SPECTRUM USAGE

         6.50.2.2.1. The SRMC shall be capable of generating plans for carrying
         the traffic levels within the aggregate amounts of spectrum, available
         in the different co-ordination regions, as listed in Table 6-6.

              6.50.2.2.2. TABLE 6-6 TRAFFIC LEVEL VERSUS SPECTRUM
<TABLE>
<CAPTION>

               TRAFFIC LEVEL                AGGREGATE MOBILE LINK SPECTRUM            AGGREGATE FEEDER LINK
      AGGREGATE BUSY HOUR ERLANGS OF         PER DIRECTION OF TRANSMISSION                  SPECTRUM
   HANDHELD VOICE OR EQUIVALENT TRAFFIC                  (MHz)                    PER DIRECTION OF TRANSMISSION
          (PERCENT OF TOTAL)                                                     (MHz) IN EACH POLARISATION
---------------------------------------------------------------------------------------------------------------
<S>                                         <C>                                  <C>
                    100                                  [10]                                 [50]
                    75                                    [8]                                 [42]
                    50                                    [6]                                 [34]
                    25                                    [4]                                 [26]
            Aggregate Busy Hour              Aggregate Mobile Link Spectrum
     Erlangs is as defined in Annex 1          is defined as sum of the
                                              spectrum in each usable sub
                                             band in a co-ordination region
</TABLE>

Notes on Table 6-6:

         6.50.2.2.3. Note 1 Traffic level is defined in terms of requirements
         for supporting communications to handheld voice terminals carrying
         voice or other services utilising one TDMA slot and including all
         requirements for signalling and HPN. The impact of multiple services is
         defined elsewhere.

         6.50.2.2.4. Note 2 The specified Traffic levels are to be carried
         subject to simultaneous availability of the Aggregate Mobile Link
         Spectrum and Aggregate Feeder Link Spectrum.

         6.50.2.2.5. The plans generated by the SRMC shall be capable of
         simultaneously providing grade of service better than 10% worst case,
         in the sub cell (delay class of a spot beam) at 100% loading (4500
         channels + 40% diversity)

         6.50.2.2.6. The SRMC-generated plans shall be capable of carrying the
         specified traffic levels:

                  1.       with traffic distributions around the globe as
                           defined in 6.50.3.1

                  2.       with diurnal traffic variations as defined in
                           6.50.3.2

                  3.       where the mobile link spectrum used may be

                           a)       different in different co-ordination regions
                                    as indicated in Figure 6-2 and Table 6-7

                           b)       different in any co-ordination regions of
                                    similar area

                  1        where the mobile link spectrum in each co-ordination
                           region

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                           d)       is in sub-bands as specified in Figure 6-2
                                    and Table 6-7

                           e)       is in any number of sub-bands up to 5, the
                                    smallest being 1 MHz, or

                           f)       is in a contiguous block

         6.50.2.2.7. These requirements shall be met for test purposes:

                  1        for all possible combination of satellite positions
                           in the baseline satellite constellation

                  2.       while providing diversity path allocations for at
                           least 80% of calls for UTs which are in coverage of
                           more than one satellite.

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                         [CO-ORDINATION REGIONS GRAPH]

                  6.50.2.2.8. FIGURE 6-2 CO-ORDINATION REGIONS

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       6.50.2.2.9. TABLE 6-7 FREQUENCY SUB-BANDS IN CO-ORDINATION REGIONS
<TABLE>
<CAPTION>

    Return
    S-band       FCR          FCR        FCR      FCR
      MHz         1            2         3         4
    -------------------------------------------------
<S>             <C>           <C>        <C>      <C>
     1985        X                                 X
     1986        X             X                   X
     1987        X                        X        X
     1988
     1989                      X                   X
     1990                                          X
     1991                                 X        X
     1992                                 X        X
     1993                      X          X
     1994                                          X
     1995                                          X
     1996                      X                   X
     1997
     1998                      X          X
     1999
     2000                      X
     2001                      X
     2002                                 X
     2003                                 X
     2004
     2005
     2006
     2007                      X          X
     2008
     2009        X                        X
     2010        X
     2011        X             X
     2012        X             X
     2013        X                        X
     2014        X
     2015        X
</TABLE>

<TABLE>
<CAPTION>
   Forward
    S-band          FCR            FCR        FCR           FCR
     MHz             1              2          3             4
----------------------------------------------------------------
<S>                <C>             <C>        <C>           <C>
     2170           X                                        X
     2171           X               X                        X
     2172           X                          X             X
     2173
     2174                           X                        X
     2175                                                    X
     2176                                      X             X
     2177                                      X             X
     2178                           X          X
     2179                                                    X
     2180                                                    X
     2181                           X                        X
     2182
     2183                           X          X
     2184
     2185                           X
     2186                           X
     2187                                      X
     2188                                      X
     2189
     2190
     2191
     2192                           X          X
     2193
     2194           X                          X
     2195           X
     2196           X               X
     2197           X               X
     2198           X                          X
     2199           X
     2200           X
</TABLE>

Note: In this example the forward and return allocation patterns are shown to be
the same - this will not be the case in reality. Table 6-7 is provided just as
an example/test case. The frequency planning algorithm must treat the forward
and return directions separately and independently.

6.50.2.3. IMPACT OF MULTIPLE SERVICES

         6.50.2.3.1. Separate pools of timeslots and frequencies shall be
         provided for

               1. HPN

               2. MP signalling channels

               3. MP dedicated channels

               4. NP dedicated channels

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6.50.2.4. SPECTRUM RESOURCES TO BE MANAGED

         6.50.2.4.1. The SRMC shall generate plans to manage the following
         satellite spectrum resources on a per channel basis, for mobile and
         feeder links, in both the forward and return directions.

         6.50.2.4.2. The SRMC shall generate plans for frequency and TDMA
         timeslot resources for the following carrier types:

                  1.       TCH/SDCCH

                  2.       BCCH/SCH

                  3.       PCH/AGCH

                  4.       RACH

                  5.       BCCH/HP

                  6.       SCH/HP

                  7.       ACK/HP

                  8.       NCH/HP

         6.50.2.4.3. The SBS and HPNS shall implement these plans according to
         their equipment resources.

6.50.2.5. GENERATION OF TIME VARYING FREQUENCY PLANS FOR ICO SATELLITES.

         6.50.2.5.1. The SRMC shall generate time varying frequency plans:

                  1.       for all satellites in the ICO satellite
                           constellation;

                  2.       which provide access via SANs to all spot beams of
                           all satellites;

                  3.       compatible with the satellite channelisation;

                  4.       providing resources to support all types of traffic,
                           DCCH, common signalling and HPN;

                  5.       separately for each type of traffic. DCCH, common
                           channel signalling and HPN;

                  6.       providing capacity according to traffic predictions
                           by traffic type by SAN for each spot beam of each
                           satellite;

                  7.       which are co-ordinated between satellites to allow
                           the near instantaneous reuse of frequencies to be
                           minimised both intra and inter-satellite;

                  8.       which allow the grade-of-service in each spot beam to
                           be maximised whenever spare spectrum is available;

                  9.       which utilise all transponder filters available to
                           provide the maximum grade-of service in each spot
                           beam of each satellite;

                  10.      in advance of the time that they are required;

                  11.      subject to the spectrum allocation constraints;

                  12.      subject to the interference management requirements;

                  13.      which change slowly to minimise the impact on
                           handovers;

                  14.      which change slowly and incrementally without
                           interruption;

                  15.      which have a granularity of one TDMA carrier.

6.50.2.6. GENERATION OF TIME VARYING TRANSPONDER PLANS FOR EACH ICO SATELLITE

         6.50.2.6.1. The SRMC shall generate time varying satellite transponder
         plans:

                  1.       for all satellites in the ICO satellite
                           constellation;

                  2.       which encompass the carrier frequencies used in the
                           frequency plans;

                  3.       in advance of the time that they are required;

                  4.       which have a granularity of one channelisation
                           filter.

6.50.2.7. DISTRIBUTION OF TIME VARYING TRANSPONDER PLANS TO ICO SATELLITES

         6.50.2.7.1.  The NMS via the DCN and PCS shall distribute transponder
         plans:

                  1.       to all satellites in the ICO constellation;

                  2.       in advance of the time required;

                  3.       such that the satellite transponder allocations on
                           the satellites are synchronised to the planned
                           allocations.

6.50.2.8. ASSIGNMENT OF TIME VARYING POOLS OF FREQUENCIES AND TIMESLOTS TO SANs

         6.50.2.8.1. The SRMC plans shall assign time varying pools of
         frequencies and timeslots:

                  1.       to all SANs;

                  2.       for all spot beams and all satellites, planned to be
                           accessed by each SAN;

                  3.       according to the planned traffic requirements of
                           each SAN for each spot beam of each satellite.

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6.50.2.9. DISTRIBUTION OF TIME VARYING POOLS OF FREQUENCIES AND TIMESLOTS TO
          SANs

         6.50.2.9.1. The NMS via the DCN and SAN-OSS shall distribute pools of
         frequencies and timeslots to each SAN:

                  1.       in advance of the time required;

                  2.       such that the pools of frequencies known to each SAN
                           are synchronised to the plans.

6.50.2.10. ON DEMAND ALLOCATION BY SBSs OF TIMESLOTS FROM TIME VARYING POOLS

6.50.2.10.1. SBS DEDICATED CHANNEL ALLOCATIONS

         6.50.2.10.1.1. The SBS shall allocate resources from pools of
         frequencies and timeslots at each SAN on demand according to
         requirements for use in communications sessions for the signalling
         phase and traffic phase.

         6.50.2.10.1.2. The SBS shall return resources to the pools when they
         are no longer in use so that they are available for further use.

         6.50.2.10.1.3. Call setup allocations shall be processed with high
         priority relative to handovers and diversity changes.

         6.50.2.10.1.4. The SBS shall change, in real-time, the resources
         allocated to each UT for call maintenance.

         6.50.2.10.1.5. The SBS shall, subject to the resources allocated to it,
         maintain an acceptable grade-of-service and continue existing calls
         with an acceptable success probability.

         6.50.2.10.1.6. The SBS shall prioritise use of resources in the
         following order:

                  1.       to maintain existing calls through provision of
                           handovers;

                  2.       to start new calls;

                  3.       to provide diversity allocations.

         6.50.2.10.1.7. Subject to the above priorities, the SBS shall provide
         diversity path allocations to all UTs in sight of two or more satellite
         when there are a sufficient number of resources available.

         6.50.2.10.1.8. The SBS shall rotate resources to minimise near
         instantaneous frequency reuse amongst the resources available to each
         SAN.

         6.50.2.10.1.9. The SBS shall have capability to change resource
         allocation for each communications session to take account of:

                  1.       handover within a delay class from one frequency to
                           a different frequency;

                  2.       handover from delay class to delay class within a
                           spot beam;

                  3.       handover from spot beam to spot beam on the same
                           satellite;

                  4.       handover from a spot beam on one satellite to a spot
                           beam on different, diversity, satellite;

                  5.       handover from SAN to SAN;

                  6.       diversity addition;

                  7.       diversity removal.

         6.50.2.10.1.10. The SBS shall allocate resources for handover so that
         they are used for the minimum practicable overlap time and are released
         as soon as communication is successfully established on the new
         channel.

         6.50.2.10.1.11. The SBS shall assess the resources available for each
         handover and shall give priority for handovers to be make before break
         allowing a reasonable time for such resources to become available for
         such purpose before implementing the handover using break before make.

         6.50.2.10.1.12. The SBS shall perform a frequency handover when a
         frequency resource is planned to become unavailable.

         6.50.2.10.1.13. The SBS shall perform handovers when propagation delays
         reach specific time delay arc thresholds.

         6.50.2.10.1.14. The SBS shall perform intra-satellite spot-beam
         handovers based on a the following information where individual
         parameters have configurable thresholds:

                  1.       UT predicted to move to a new spot-beam coverage;

                  2.       current spot-beam load factor at or above threshold;

                  3.       signal quality measurements in old and new spot
                           beams.

         6.50.2.10.1.15. The SBS shall perform inter-satellite handovers based
         on of the following information where individual parameters have
         configurable thresholds:

                  1.       signal quality measurements of channels on both
                           satellites;

                  2.       satellite(s) elevation angle(s);

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                  3.       satellite(s) load factor(s).

         6.50.2.10.1.16. The SBS shall perform SAN to SAN handovers based on of
         the following information where individual parameters have configurable
         thresholds:

                  1.       insufficient resources available at current SAN to
                           maintain call;

                  2.       signal quality measurements of satellites visible to
                           the UT.

         6.50.2.10.1.17. The SBS shall perform diversity addition based on the
         following information where individual parameters have configurable
         thresholds:

                  1.       signal quality measurement reports of satellites
                           visible to the UT;

                  2.       elevation and azimuth of satellites visible to the
                           UT.

         6.50.2.10.1.18. The SBS shall perform diversity removal based on the
         following information where individual parameters have configurable
         thresholds:

                  1.       signal quality measurement reports of satellites
                           visible to the UT;

                  2.       elevation and azimuth of satellites visible to the
                           UT.

         6.50.2.10.1.19. The SBS shall have the capability to, whenever
         possible, assign the same TDMA timeslots post-handover as were used
         pre-handover for each call.

         6.50.2.10.1.20. The SBS shall have the capability to allocate
         frequencies dependent upon the service area of the UT. (OPTION)

6.50.2.10.2. COMMON SIGNALLING CHANNELS

         6.50.2.10.2.1. The SRMC shall generate frequency and timeslot plans for
         common signalling channels i.e. for BCCH, RACH PCH and AGCH.

         6.50.2.10.2.2. The SBS shall operate according to the plan provided by
         the SRMC.

6.50.2.11. QUANTITATIVE CONSTRAINTS ON FREQUENCY PLANS

         6.50.2.11.1. The plans generated by the SRMC shall achieve the
         following:

         6.50.2.11.2. Frequency reuse beams shall be separated by a spacing
         greater than or equal to the spacing required for a 4 cell reuse
         pattern.

         6.50.2.11.3. The IGF shall implement a frequency planning algorithm
         which minimises the maximum number of reuses of any one frequency:

                  1.       within the satellite field of view to 0(degree)
                           elevation in the return direction, and

                  2.       for all beams of every satellite covering each UT's
                           position for the forward direction.

         6.50.2.11.4. The number of satellite filters to be used shall be 490
         when 50 MHz of feeder link is available and pro rata for smaller
         amounts of feeder link.

6.50.2.12. SPECTRUM ALLOCATION CONSTRAINTS

         6.50.2.12.1. The SRMC shall implement, in the frequency planning
         algorithms, capability to take account of the following constraints on
         the use of the mobile link and feeder link bands:

                  1.       band sharing with other satellites;

                  2.       band sharing with terrestrial systems;

                  3.       non-contiguous allocations to ICO;

                  4.       allocations which are exclusive to ICO or shared and
                           can produce potential interference to or from ICO [in
                           certain azimuth/elevation ranges];

                  5.       different allocations between different regions;

                  6.       allocation constraints evolving over the lifetime of
                           the system;

                  7.       Tx/Rx frequencies need not have a fixed offset
                           from one to another;

                  8.       maintain continuity of spectrum allocation whenever
                           possible.

6.50.2.13. SPECTRUM MANAGEMENT ALGORITHM FLEXIBILITY

         6.50.2.13.1. The SRMC shall be capable of implementing any possible
         realistically implementable methods for planning the use of frequencies
         and allocating radio paths for calls which enable the spectrum
         efficiency to be maximised subject only to fundamental limitations of
         satellite antenna performance/isolation, satellite channelisation, and
         acceptable levels of interference. For example, when spectrum
         efficiency is at a premium due to traffic pressure, each SAN shall be
         allocated the minimum spectrum resource required to provide each
         service at the required quality, with any unused resources available
         for use by other SANs.

         6.50.2.13.2. Within limits imposed by the non-linear nature of the RF
         channel, the SRMC planning algorithms shall provide capability to
         trade-off spectrum efficiency vs. link quality i.e.

                  1.       to enable excess spectrum to be used to give improved
                           channel performance through reducing intra-system
                           interference;

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                  2.       to accommodate extra traffic in limited spectrum by
                           accepting reductions in channel performance below
                           nominal due to additional intra-system interference.

6.50.3. SPECTRUM MANAGEMENT REFERENCE TRAFFIC DISTRIBUTION

         6.50.3.1. TABLE 6-8 REFERENCE TRAFFIC DISTRIBUTION (NUMERICAL)

<TABLE>
<CAPTION>
<S>    <C>    <C>   <C>     <C>   <C>    <C>     <C>     <C>     <C>     <C>    <C>
   0      0      0      0      0      0      0       0       0       0      0       0
   0   0.05   0.13   0.13   0.14   0.14   0.14    0.14       0       0      0       0
   0   0.03   0.01   0.03   0.07   0.07   0.18       0       0    0.09   0.15     0.4
   0   0.02   0.03   0.79   2.93    2.3   0.54    0.12    0.05    0.06   0.14    1.19
0.03   0.03   0.03    0.1   0.61   2.13   0.62    0.62    0.06    0.06    0.1    0.92
0.09   0.06   0.03   0.12   0.08   0.37   1.87    1.88    0.04    0.03   0.17    0.53
0.03   0.03   0.03      0   0.09   0.09   0.87    0.54    1.22    0.84   0.03       0
   0      0      0      0      0   0.03   0.06    0.29    3.56    0.06   0.03    0.03
   0      0      0      0      0      0   0.03    0.76    0.59    0.06   0.03    0.03
0.06      0      0      0      0      0   0.03    0.06    0.06    0.03      0       0
0.06      0      0      0      0      0   0.03    0.03    0.03       0      0       0
   0      0      0      0      0      0      0       0       0       0      0       0

<C>     <C>     <C>     <C>    <C>    <C>    <C>     <C>    <C>    <C>    <C>    <C>
    0       0      0       0      0       0      0      0      0      0      0      0
 0.63    0.67   1.28    0.85      0    0.09   0.09   0.09   0.09   0.09   0.09   0.09
 1.05    1.65   1.72    1.99   2.16    1.21   0.51   1.84   0.86      0      0      0
 2.06    3.54   2.94     2.1   3.12    0.08   0.53   2.27   2.52   0.12      0      0
 3.38    1.69      1    1.05   4.87    1.71   1.45   2.33   0.91   0.18   0.09   0.06
 0.51    0.11   0.69    0.06   0.42    0.59   1.35   1.06   0.86   0.12   0.03   0.03
 0.28    0.23   0.66    0.09   0.06    0.09   0.07   0.86   0.33   0.08   0.06      0
 0.25    1.09    1.2    0.15   0.03    0.03   0.07    0.1   0.25   0.24    0.1   0.09
 0.03     1.4   0.03    0.03      0       0      0   0.07   0.04   0.05    0.1   0.12
 0.03    0.03   0.03       0      0       0      0   0.03   0.05   0.07   0.09   0.09
    0       0      0       0      0       0      0      0      0      0   0.06   0.06
    0       0      0       0      0       0      0      0      0      0      0      0
</TABLE>

                                    [LINE GRAPH]

            6.50.3.2. FIGURE 6-3 REFERENCE DIURNAL TRAFFIC VARIATION

6.51. INTERFERENCE MANAGEMENT

         6.51.1. The SBS shall detect the failure of demodulation, log these
         events, and report these events to the SAN-OSS.

         6.51.2. The SRMC shall have the capability to use frequencies that
         minimise the effects of external radio interference in to the ICO
         system.

         6.51.3. The SRMC shall have the capability to use frequencies that
         minimise the radio interference caused by ICO in to other systems and
         geographical regions.

         6.51.4. The interference avoidance planning shall take account of:

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                  1.       regulatory constraints on a regional/national basis

                  2.       external interference becoming (or predicted to
                           become) excessive.

         6.51.5. The SRMC planning capability for predictable interference
         events shall include:

                  1.       switching off SAN transmissions at certain
                           azimuth/elevations

                  2.       adjustment of the satellite filter configuration
                           (spot-beam, frequency) to avoid predictable
                           interference subject to spectrum resource
                           availability.

         6.51.6. The SBS response to failed allocation events shall include,
         where practicable according to Air Interface structured procedures:

                  1.       changing the allocated channel to a different one on
                           the same satellite

                  2.       changing the allocated channel to a different one on
                           a different diversity satellite.

         6.51.7. The SRMC shall contain a database of regulatory constraints.
         The database shall contain for all geographical regions what mobile and
         feeder link frequencies can and cannot be used.

         6.51.8. The SRMC shall contain a database of predictable interference
         sources in the mobile and feeder link frequencies. The database shall
         contain at least the following information:

                  1.      For each interference source in to ICO:
                             a.  location/orientation information
                             b.  operating frequencies, time of operation
                             c.  antenna parameters.

                  2.      For ICO interference into other systems
                             a.  location/orientation information
                             b.  operating frequencies, time of operation.

         6.51.9. The SRMC shall have the capability to update the data stored
         for the regulatory constraints to reflect changes in frequency
         allocations and co-ordinations.

         6.51.10. The SRMC shall have the capability to update the data stored
         for the external interference sources to reflect:

                  1.       the results of interference statistics analysis

                  2.       new interference sources being found

                  3.       existing interference source becoming obsolete.

         6.51.11. The SRMC shall be able to use the above capabilities to plan
         to avoid mobile link interference from the following sources:

                  1.       Terrestrial Fixed Services

                  2.       Radar

                  3.       Aggregate background interference level.

         6.51.12. The SRMC shall be able to use the above capabilities to plan
         to avoid to feeder link interference from the following sources:

                  1.       other MSS systems

                  2.       predictable MS systems.

         6.51.13. The SRMC shall be able to use the above capabilities to plan
         to avoid causing excessive levels of interference to the following
         systems in the mobile link:

                  1.       FS systems

                  2.       Radar

                  3.       MS systems.

         6.51.14. The SRMC shall be able to use the above capabilities to plan
         to avoid causing excessive levels of interference to the following
         systems in the feeder link:

                  1.       other MSS systems

                  2.       Radio Astronomy sites

                  3.       Aircraft MLS systems.

6.52. HPN REQUIREMENTS

6.52.1. HPN GENERAL REQUIREMENTS

         6.52.1.1. The IGF shall support the applications defined in the
         appendices of ICO 103.40.

         6.52.1.2. The IGF shall support TS ICO 05.xx, TS ICO 04.xx, TS ICO
         103.40 and TS ICO 104.08.

6.52.2. BASIC CAPABILITIES FOR HPN

         6.52.2.1. The IGF shall:

                  1.       be capable of transmitting HP messages on NCH/HP
                           channels

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                  2.       be capable of providing regular synchronisation
                           bursts for all UTs

                  3.       provide the NCH/HP configurations as given in ICO
                           05.xx series

                  4.       be capable of supporting the NCH/HP configurations on
                           any and all spot beams of any and all satellites

                  5.       support capability to transmit NCH/HP to a UT

                           a.       in any one beam

                           b.       on any or all satellites

                           c.       in serial, or, for high priority messages in
                                    parallel up to a maximum of 2 satellites

                  6.       support operational control of NCH/HP based on load
                           related message repeat strategy.

6.52.3. HPN MESSAGE TRANSMISSION AND RECEPTION

         6.52.3.1. The IGF shall support the transmission of HPN signal types to
         the UT specified in the AI.

         6.52.3.2. The HPN subsystem shall format and transmit the appropriate
         notification message to the subscriber.

         6.52.3.3. When required to send a NCH/HP message, the HPN subsystem
         shall, according to NMS operator configurable and settable priorities:

                  1.       send the NCH/HP on any or all satellites covering the
                           UT's stored last registered position

                  2.       send the NCH/HP in the spot beam of each satellite
                           covering the UT's stored last registered position

                  3.       if no response is received, repeat the NCH/HP an NMS
                           configurable number of times.

         6.52.3.4. The HPN subsystem shall support the reception of
         acknowledgement signals from the UT at the frequency and time indicated
         on the successful forward message transmission.

         6.52.3.5. The IGF shall support the HPN channels by broadcasting
         appropriate information on the MP and HP BCCH channels.

6.52.4. SECTION NOT USED

6.52.5. HPN FREQUENCY PLANNING

         6.52.5.1. The SRMC shall support the use of HPN frequencies at defined
         flux density levels conforming to agreed regulatory constraints.

         6.52.5.2. The SRMC shall ensure that HPN frequencies are selected to
         minimise interference to ICO from other sources.

         6.52.5.3. The SRMC shall prevent interference on the Feederlink to
         other systems.

         6.52.5.4. The SRMC shall minimise service degradation whilst avoiding
         interference to other systems by preventing HPN subsystems which will
         cause interference from transmitting.

         6.52.5.5. In the forward direction,

                  1.       The SRMC shall provide up to 4 mobile link
                           frequencies in every satellite beam for use in the
                           NCH/HP channels.

                  2.       The SRMC shall also provide up to 4 mobile link
                           frequencies in every satellite beam for use in
                           BCCH/HP channels.

                  3.       The SRMC shall ensure that the HPN transponder is not
                           used to transmit into known regions in particular
                           azimuth and elevation ranges where this would cause
                           interference to other systems.

                  4.       The SRMC and NMS subsystems shall support the
                           transfer of information to the UT to ensure that the
                           UT and the network have a co-ordinated time and
                           frequency rotation sequence in the forward channels.

         6.52.5.6. In the return direction,

                  1.       The SRMC shall support one acknowledgement channel
                           in every beam considering inter system interference.

                  2.       The SRMC shall plan the HPN return link frequencies
                           considering the limited antenna isolation and
                           interference into the satellite from other users
                           (intra system interference).

                  3.       The IGF shall broadcast using BCCH/MP the information
                           on the frequencies to be used in the ACK/HP channel.

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                  4.       History of frequencies used in previous message
                           transmission attempts.

         6.52.9.7. The HPN subsystem shall take into account the acknowledgement
         channel receiver availability when transmitting HPN messages to ensure
         that scheduled acknowledgements can be processed.

         6.52.9.8. The HPN subsystem shall be capable of transmitting messages
         via remote SAN sites if this can increase the satellite coverage of the
         destined UT.

         6.52.9.9. Key parameters of the HPN subsystem shall be configurable by
         the NMC. The NMS and HPN subsystems shall provide:

                  1.       Mechanisms to modify distributed algorithms (e.g.
                           scheduling algorithms), to provide an upgrade path,
                           ensuring that a consistent version is used at all
                           points requiring coordination.

                  2.       Mechanisms to modify the satellite selection criteria
                           as a function of azimuth and elevation to the UT.

                  3.       Mechanisms to modify the message repeat parameter as
                           a function of traffic load.

                  4.       Mechanisms to control the ACK/HP detection threshold.

                  5.       Mechanisms to increase or decrease the HPN capacity
                           by modifying the interleaving factor ensuring that
                           the UT can benefit by reduced idle mode when the
                           capacity reduces.

         6.52.9.10. The HPN subsystem shall transmit the location phase bursts
         (BCCH/HP) in accordance with the HPN location phase plans received from
         the SRMC.

         6.52.9.11. The HPN Subsystem at the SAN shall plan the contents of the
         BCCH/HP to ensure that the UTs can maintain correct operation.

         6.52.9.12. The SBS shall provide to each UT information on the time
         and frequencies to be used to receive the BCCH/HP as provided by SRMC.

         6.52.9.13. The SBS shall broadcast using BCCH the information on the
         frequencies to be used in the ACK/HP channels as provided by SRMC.

         6.52.9.14. The SBS shall broadcast using BCCH the information on the
         frequencies to be used in the NCH/HP channels.

6.52.10. HPN SUBSYSTEM SYNCHRONISATION

         6.52.10.1. The HPN channel units shall be synchronised with the medium
         penetration channels.

         6.52.10.2. The Timing & Synchronisation provided by the reference clock
         and system timing subsystem to the HPN subsystem shall consist of a 10
         MHz reference clock and a GPS based time reference (absolute time code,
         and 1 pulse per second signal).

         6.52.10.3. In addition time varying delay to the satellite information
         with an accuracy of [5 microsec] for each visible satellite shall be
         provided to the HPN subsystem.

         6.52.10.4. The HPN Channel Units shall be synchronised such that there
         shall not be a significant overlap of the signals at the satellite
         which may cause peak power fluctuations or loss of signal quality.

6.53. SAN AIR INTERFACE REQUIREMENTS

6.53.1. C-BAND TRANSMIT REQUIREMENTS

6.53.1.1. NOMINAL EIRP OF C-BAND COMMUNICATION CARRIERS

         6.53.1.1.1. The EIRP of each type of C-band communication carriers
         shall be able to be adjusted at the following nominal values under the
         clear weather conditions when the satellite gain is set to its nominal
         values and the satellite is located at the zenith of the SAN and to the
         direction of 20 degrees elevation angles from the UT:

                  1.       TCH 48.6 dBW

                  2.       BCCH 53 dBW

                  3.       HPN 56 dBW

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6.53.1.2. EIRP REQUIREMENT FOR SRMS/HPN COMMAND CARRIERS

         6.53.1.2.1. EIRP of the SRMS command and the HPN command carriers shall
         be able to be adjusted at the following nominal level under the clear
         weather conditions when the satellite is located at the zenith:

<TABLE>
<S>                                     <C>
                  1. SRMS Command       55.3 dBW

                  2. HPN Command        55.3 dBW
</TABLE>

6.53.1.3. EIRP REQUIREMENT FOR TT&C COMMAND CARRIER

         6.53.1.3.1. EIRP of the TT&C command carrier shall be able to be
         adjusted to:

                  1.   66 dBW for normal operation sharing with the
                       communication carriers,

                  2.   81 dBW for dedicated emergency and OICD/OIT operation, by
                       setting the IF levels at the interface point specified in
                       the TT&C to ICD.

6.53.1.4. MAXIMUM OPERATING EIRP PER POLARISATION

         6.53.1.4.1. The SAN shall be able to transmit multiple carriers with
         total EIRP of 77 dBW for each polarisation.

         6.53.1.4.2. In case of the TT&C emergency operation mode, the SAN shall
         be able to transmit a single TT&C command carrier with EIRP specified
         in Section 6.53.1.3.

6.53.1.5. RF EQUIPMENT GAIN CONTROL RANGE

         6.53.1.5.1. For the communication signals, including SRMS/HPN command
         signals, the RF transmit subsystem shall include provisions for remote
         controllable gain adjustment to compensate for the C-band propagation
         path loss changes and the gain setting changes and/or the gain
         variations of the common part of the satellite transponder.

         6.53.1.5.2. The gain adjustment range of the RF transmit subsystem
         shall be at least +6 dB, -14 dB around the nominal EIRPs specified in
         Section 6.53.1.1 and Section 6.53.1.2 with nominal steps of 0.5 dB or
         less.

         6.53.1.5.3. This gain adjustment capability shall also be used by the
         automatic power control system specified in Section 6.57.6.

         6.53.1.5.4. The EIRP of the TT&C command carrier shall be adjusted at
         the TT&C ground equipment independent of the communications carriers.

6.53.1.6. EIRP ACCURACY AND STABILITY

         6.53.1.6.1. The EIRP of each carrier shall be adjusted and maintained
         within +/- 1.5 dB of the required level when the Automatic Power
         Control (APC) system specified in Section 6.57.6 is disabled, and the
         maximum ambient temperature change is less than 10 degrees.

         6.53.1.6.2. This accuracy and stability shall include all factors
         causing variation such as modulator, HPA and upconverter stability,
         antenna transmitting gain variation caused by tracking, and antenna
         beam pointing error.

         6.53.1.6.3. This accuracy also shall include the frequency response of
         the transmit path.

         6.53.1.6.4. Automatic level calibration and adjustment system, open
         loop or closed loop or combination, shall be provided if required to
         meet this specification.

6.53.1.7. MULTICARRIER INTERMODULATION PRODUCTS (TBR)

         6.53.1.7.1. When two tones each with EIRP of 3 dB below the maximum
         EIRP for multiple carrier operation specified in Section 6.53.1.4 are
         transmitted, the third order intermodulation product level shall be
         less than -26.8dB of each tone.

         6.53.1.7.2. The Noise Power Ratio measured using multicarriers (up to
         1,000 carriers), notched at the centre of the band, simulating the
         communication carriers, shall exceed 20.8 dB as a target at the output
         of the HPA under the following conditions:

<TABLE>
<S>                                                    <C>
                  1.   Total power of the noise:       corresponding to EIRP of 75 dBW

                  2.   Bandwidth of the noise:         25 MHz (5199.5 - 5224.5 MHz)
</TABLE>

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6.53.1.8. OFF-AXIS EIRP DENSITY

         6.53.1.8.1. At any angle A, which is 2.5 degrees or more off the main
         lobe axis of the antenna, the EIRP density in any direction should not
         exceed the following values specified in recommends 2 of Recommendation
         ITU-R S.524-5:

<TABLE>
<CAPTION>
<S>                                                                                           <C>
             Angle off-axis                                                                   Maximum EIRP per 4 kHz
             2.5 degrees less than or equal to A less than or equal to 7 degrees              (32 - 25 log A) dB(W/4 kHz)
             7 degrees less than A less than or equal to 9.2 degrees                          11 dB(W/4 kHz)
             9.2 degrees less than A less than or equal to 48 degrees                         (35 - 25 log A) dB(W/4 kHz)
             48 degrees less than A less than or equal to 180 degrees                         -7 dB(W/4 kHz)
</TABLE>

             Note: This spec may not be met by TT&C carrier in emergency mode.

6.53.1.9. FREQUENCY RESPONSE

         6.53.1.9.1. The frequency response of the transmit path shall be
         calibrated and maintained so that the requirements for EIRP accuracy
         and stability in Section 6.53.1.6 are met.

6.53.1.10. FREQUENCY STABILITY

         6.53.1.10.1. The transmit frequency stability for communication
         carriers shall be so that the requirements in Section 6.58.4.4 is met
         when the AFC is enabled.

         6.53.1.10.2. The transmit frequency stability for the TT&C carrier
         shall be referred to the TT&C to SAN Interface Control Document.

         6.53.1.10.3. The local oscillators of the TT&C up-converters shall be
         independent of the SAN Master Reference Oscillators.

6.53.1.11. NOISE AND SPURIOUS EMISSIONS (IN-BAND)

         6.53.1.11.1. In any 4 kHz band in the C-band transmit band specified in
         Section 6.57.1.4. excluding a band within 250% of the necessary
         bandwidth of each emission removed from the centre frequency of the
         carrier, the mean power of the inherent transmitter noise and all
         spurious signals, excluding harmonics and multicarrier intermodulation
         products, supplied to the antenna transmit port, shall be less than -43
         dBW or less than -5OdB of the carrier, whichever is greater, at any
         transmission level up to the total maximum operating EIRP specified in
         Section 6.53.1.4 with EIRP level settings for each carrier type as
         specified in Section 6.53.1.1, 6.53.1.2 and 6.53.1.3 irrespective of
         the RF power control specified in Section 6.58.5.1 plus upward output
         level control by the CU/modulator summarised below.

                  6.53.1.11.2. TABLE 6-9 CU/MODULATOR OUTPUT CONTROL RANGE

<TABLE>
<CAPTION>
        Carrier type                      CU/modulator output
                                         control range (upward)
        ------------                     ---------------------
<S>                                      <C>
             TCH                             up to +4.4dB
            BCCH                                      0 dB
             HPN                                      0 dB
        SRMS Command                                  0 dB
         HPN Command                                  0 dB
</TABLE>

6.53.1.12. NOISE AND SPURIOUS EMISSION (OUT-OF-BAND)

                  6.53.1.12.1. In any 4 kHz band between 9 kHz to 26 GHz, the
         mean power of spurious emissions, including harmonics and multicarrier
         intermodulation products, supplied to the antenna transmit port, shall
         be attenuated below the mean total output power of the transmitter by:

                  1.   25 dB at the frequency which is removed from the centre
                       frequency of the transmit band by more than 50% up to
                       100% of the bandwidth of the transmit band

                  2.   35 dB at the frequency which is removed from the centre
                       frequency of the transmit band by more than 100% up to
                       250% of the bandwidth of the transmit band

                  3.   43 dB plus 10 times the logarithm of the transmitter
                       power (in Watts) at the frequency which is removed from
                       the centre frequency of the transmit band by more than
                       250% of the bandwidth of the transmit band.

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         6.53.1.12.2. The above specification shall be met at any transmission
         level up to the maximum operating EIRP specified in Section 6.53.1.4.

         6.53.1.12.3. If the spurious limits specified above become less than
         -43dBW in 4 kHz band, limit of -43 dBW in 4 kHz band shall apply.

6.53.1.13. PROTECTION OF THE MLS BAND

         6.53.1.13.1. Every SAN shall have a TX filter after the HPA to protect
         the air borne receivers of the microwave landing system (MLS) operating
         in the frequency range between 5030 to 5091 and/or 5090 to 5150 MHz.

         6.53.1.13.2. All emissions from the SAN in this frequency range shall
         be suppressed below -66 dBW of EIRP in any 26 kHz bandwidth.

6.53.1.14. TOTAL PHASE NOISE OF THE SAN TRANSMIT CARRIERS (INCLUDING MODULATORS)
           (TBR)

         6.53.1.14.1. The single sideband phase noise spectral density induced
         on any transmit carrier shall not exceed the values below with the AFC
         functions enabled:

<TABLE>
<CAPTION>
         Frequency Offset (F)                             SSB Phase Noise Limit
          (dBc/Hz, F in Hz)
         --------------------                             ---------------------
<S>                                                       <C>
            10 - 100 Hz                                    -12 - 25 log F
            100 - 800 Hz                                   -22.2 - 19.9 log F
            0.8 - 10 kHz                                   -80 dBc
            10 - 20 kHz                                    +52.8 -33.2 log F
            20 - 100 kHz                                   -90 dBc
</TABLE>

         6.53.1.14.2. If any discrete phase noise components are present at a
         level that exceeds the limit mask, the 10 Hz to 100 kHz band shall be
         considered to be divided into a number of contiguous sub-bands, each
         containing no more than one discrete component.

         6.53.1.14.3. The width of a sub-band containing a discrete component
         shall not exceed F/5 Hz, where F is the frequency of the discrete
         component.

         6.53.1.14.4. In each of the sub-bands, the integrated phase noise due
         to any spectral component, including the discrete component, shall not
         exceed that allowed by integrating the limit mask over the same
         sub-band.

         6.53.1.14.5. In addition to the above, the following requirements shall
         be met:

                  a)   For offset frequencies up to 250 Hz. no discrete
                       component shall exceed the limit mask by 10 dB.

                  b)   For offset frequencies from 250 Hz to 100 kHz, no
                       discrete component shall exceed -50 dBc.

         6.53.1.14.6. The above specification shall be met including the IF part
         of the modulators for communication carriers.

         6.53.1.14.7. For the TT&C carrier, it shall be applied from the RFT IF
         input to the RF output.

6.53.2. C-BAND RECEIVE REQUIREMENTS

6.53.2.1. GENERAL

         6.53.2.1.1. The SAN shall meet the demodulation performance
         requirements under the specified conditions as defined in this section.

6.53.2.2. SAN DEMODULATION PERFORMANCE REQUIREMENTS

         6.53.2.2.1. The IGF shall meet the reference performance level as
         defined below. The reference performance level is defined as the C/No
         required at the SAN demodulator interface, excluding interference, for
         a bit error, a residual bit error or a frame erasure rate (whichever
         appropriate) corresponding to the reference rate. This reference
         sensitivity is specified in Tables 6-10, 6-11 and 6-12, according to
         the type of channel and the propagation condition. [Additional losses
         due to added thermal noise between the RFT antenna input and the
         demodulator baseband input shall be less than [0.1] dB.]

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6.53.2.2.2. TABLE 6-10 REFERENCE SENSITIVITY PERFORMANCE FOR NOMINAL PENETRATION
            CHANNELS

<TABLE>
<CAPTION>
  CHANNEL
   TYPE               REFERENCE RATE             STATIC      RICE 12_20   RICE 12_20    RICE 7_20       RICE 7_200
  -------             --------------             ------      ----------   ----------    ---------       ----------
<S>                   <C>                        <C>         <C>          <C>           <C>         <C>
  TCH/NS              Raw BER=4%                  48.5           tbd         tbd           tbd            tbd
  TCH/2.4             Coder BER = 0.1%           [50.4]          tbd         tbd           tbd            tbd
  TCH/4.8             Coder BER = 0.1%           [47.9]          tbd         tbd           tbd            tbd
  SACCH/T             FER = 10%                  [46.3]          tbd         tbd           tbd            tbd
  FACCH               FER = 10%                  [46.3]          tbd         tbd           tbd            tbd
  SDCCH/6             FER = 10%                  [46.3]          tbd         tbd           tbd            tbd
  SACCH/C6            FER = 10%                  [46.3]          tbd         tbd           tbd            tbd
</TABLE>

6.53.2.2.3. TABLE 6-11 REFERENCE SENSITIVITY PERFORMANCE FOR MEDIUM PENETRATION
            CHANNELS

<TABLE>
<CAPTION>
   CHANNEL TYPE               REFERENCE        STATIC            RICE 0_20   RICE 0_200
                                RATE
   ------------               ---------        ------            ---------   ----------
<S>                           <C>              <C>               <C>         <C>
  SDCCH/2                     FER = 10%         tbd                  tbd         tbd
  SACCH/C2                    FER = 10%         tbd                  tbd         tbd
  RACH                        FER = 10%         tbd                  tbd         tbd
</TABLE>

6.53.2.2.4. TABLE 6-12 REFERENCE SENSITIVITY PERFORMANCE FOR HIGH PENETRATION
            CHANNELS

<TABLE>
<CAPTION>
     CHANNEL                 REFERENCE RATE    STATIC             CLASS_20         CLASS_200
      TYPE
     -------                 --------------    ------             --------         ---------
<S>                          <C>               <C>                <C>              <C>
     HP-ACK                       tbd           tbd                 tbd               tbd
</TABLE>

         6.53.2.2.5. NOTE: TCH/S specification is measured at the output of the
         demodulator on 4800 bps coded bit stream. Specification will be refined
         when final codec structure (source and FEC coding) will be selected.
         6.53.2.2.5. The TBD performance values in Tables 6-10, 6-11 and 6-12
         will be equal to simulated performance of state of the art demodulation
         algorithms which are implementable within the constraints of the
         provided Channel Units, plus an implementation margin of 0.5 dB.

         6.53.2.2.6. All TBD values are to be provided by CDR.

         6.53.2.2.7. The TBD performance values are to be achieved for all
         channels with 3-sigma, Gaussian distributed frequency errors of up to
         +/- [43] Hz which are random timeslot-to-timeslot, and with 3-sigma,
         Gaussian distributed input signal timing errors of up to +/- [14] usec
         which are random timeslot-to-timeslot.

         6.53.2.2.8. The RACH performance values are to be achieved with a
         maximum input frequency uncertainty of +/- 2500 Hz and a maximum timing
         uncertainty of +/- [2] msec.

         6.53.2.2.9. All demodulators shall recover to steady state performance
         within [2] seconds after a step change of up to 125 Hz and 25 usec in
         addition to the steady state errors defined in 6.53.2.2.8 and
         6.53.2.2.9.

         6.53.2.2.10. Referring to Tables 6-10, 611, and 6-12, Ricek-fd is a
         Ricean channel with rice factor k dB and Doppler bandwidth +/- fd Hz
         and Class-fd is a classical (Rayleigh) Doppler channel with Doppler
         bandwidth +/- fd Hz, as specified in ICO 05.05.

6.53.2.3. ADDITIONAL DEGRADATIONS

         6.53.2.3.1. Additional degradations to the reference sensitivity
         performance levels shall be limited to the following:

         6.53.2.3.2. TABLE 6-13 DEGRADATIONS TO THE REFERENCE SENSITIVITY
                     PERFORMANCE LEVELS

<TABLE>
<CAPTION>
  CONDITION          CHANNEL        MAXIMUM         MAXIMUM
                                     VALUE          DEGRADATION TO
                                                    REFERENCE
  ---------          -------        -------         ---------
<S>                  <C>            <C>             <C>

</TABLE>

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<TABLE>
<CAPTION>
                                                                            SENSITIVITY
                                                                            PERFORMANCE
                                                                            -----------
<S>                                       <C>             <C>               <C>
  Adjacent timeslot interference          All             Adjacent          [0.1] dB
                                                          timeslots 12
                                                          dB above
                                                          wanted
                                                          timeslot

  Adjacent channel interference           All             Adjacent          [TBD] dB
                                                          frequencies
                                                          6 dB above
                                                          wanted
                                                          frequency

  Phase noise                             All             +/- 5 degrees     [0.1] dB
</TABLE>

Notes.

A full acceptance test procedure shall be agreed with ICO by CDR.

6.53.3. S-BAND TX PERFORMANCE REQUIREMENTS

6.53.3.1. NOMINAL EIRP

         6.53.3.1.1. The following are the nominal EIRP requirements by channel
         type:

<TABLE>
<S>                                                  <C>
                 1. TCH                              6.8 dBW
                 2. RACH                             6.8 dBW
</TABLE>

         6.53.3.1.2. Individual carrier EIRP is set by the output level of the
         corresponding CU.

6.53.3.2. MAXIMUM OPERATING EIRP

         6.53.3.2.1. Maximum operating EIRP shall be 20 dBW. 6.53.3.2.2. For the
         IOT antenna the 20 W SSPA located near the antenna feed shall be
         capable of transmitting multicarrier at 34 dBW total EIRP with 20 dB
         NPR.

6.53.3.3. TRANSMITTER NOISE AND SPURIOUS SIGNAL (IN-BAND)

         6.53.3.3.1. In any 4 kHz band in the S-band transmit band specified in
         Section 6.57.1.6, excluding a band within 250% of the necessary
         bandwidth of each emission removed from the centre frequency of the
         carrier, the EIRP of the inherent transmitter noise and all spurious
         signals, excluding harmonics and multicarrier intermodulation products,
         shall be less then -43 dBW.

6.53.3.4. NOISE AND SPURIOUS EMISSIONS (OUT-OF-BAND)

         6.53.3.4.1. In any 4 kHz band between 9 kHz to 26 GHz, the mean power
         of spurious emissions, including harmonics and multicarrier
         intermodulation products, supplied to the antenna transmit port, shall
         be attenuated below the mean total output power of the transmitter by:

                  1.   25 dB at the frequency which is removed from the centre
                       frequency of the transmit band by more than 50% up to
                       100% of the bandwidth of the transmit band

                  2.   35 dB at the frequency which is removed from the centre
                       frequency of the transmit band by more than 100% up to
                       250% of the bandwidth of the transmit band

                  3.   43 dB plus 10 times the logarithm of the transmitter
                       power (in Watts) at the frequency which is removed from
                       the centre frequency of the transmit band by more than
                       250% of the bandwidth of the transmit band.

         6.53.3.4.2. The above specification shall be met at any transmission
         level up to the maximum operating EIRP specified in Section 6.53.3.2.

         6.53.3.4.3. If the spurious limits specified above become less than
         -43dBW in 4 kHz band, limit of -43 dBW in 4 kHz band shall apply.

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6.53.3.5. TRANSMITTER PHASE NOISE (TBR)

         6.53.3.5.1. The single sideband phase noise spectral density induced on
         any transmit carrier shall not exceed the values given below:

<TABLE>
<CAPTION>
             Frequency Offset (F)                     SSB Phase Noise Limit
             (dBc/Hz; F in Hz)
<S>                                                   <C>
             10 - 100 Hz                              -12 - 25 log F
             100 - 800 Hz                             -22.2 - 19.9 log F
             0.8 - 10 kHz                             -80 dBc
             10 - 20 kHz                              +52.8 -33.2 log F
             20 - 100 kHz                             -90 dBc
</TABLE>

         6.53.3.5.2. If any discrete phase noise components are present at a
         level that exceeds the limit mask, the 10 Hz to 100 kHz band shall be
         considered to be divided into a number of contiguous sub-bands, each
         containing no more than one discrete component.

         6.53.3.5.3. The width of a sub-band containing a discrete component
         shall not exceed F/5 Hz, where F is the frequency of the discrete
         component.

         6.53.3.5.4. In each of the sub-bands, the integrated phase noise due to
         any spectral component, including the discrete component, shall not
         exceed that allowed by integrating the limit mask over the same
         sub-band.

         6.53.3.5.5. In addition to the above, the following requirements shall
         be met:

                  1.   For offset frequencies up to 250 Hz, no discrete
                       component shall exceed the limit mask by 10 dB.

                  2.   For offset frequencies from 250 Hz to 100 kHz, no
                       discrete component shall exceed -50 dBc.

6.53.3.6. EIRP ACCURACY AND STABILITY

         6.53.3.6.1. Under normal weather conditions prevailing at the land
         earth station location, the EIRP of any S-band transmitted signal in
         the direction of the satellite shall be maintained within +2.5 dB and
         -2.5 dB of the desired level, provided that the transmitted carrier is
         calibrated at the transmitted frequency.

         6.53.3.6.2. A monitoring coupler shall be provided at the S-band SSPA
         output.

6.53.3.7. TRANSMIT LEVEL CONTROL REQUIREMENT

         6.53.3.7.1. The transmit subsystem shall include provisions for local
         gain adjustment in the HPA and the upconverter.

         6.53.3.7.2. The combined gain adjustment range in the HPA and the
         upconverter shall be at least 20 dB, meeting the noise and spurious
         requirements specified in Section 6.53.3.3.

6.53.3.8. TRANSMIT FREQUENCY STABILITY

         6.53.3.8.1. The frequency stability of the S-band TX subsystem shall be
         better than +/- 5 Hz.

6.54. SECTION NOT USED

6.55. TRAFFIC PLANNING

         6.55.1. THE SRMC SHALL HAVE THE CAPABILITY TO PREDICT THE AMOUNT OF
         TRAFFIC that will be offered to the system.

         6.55.2. The SRMC shall produce traffic predictions for each position on
         the ground by:

                  1.   service type

                  2.   UT type

                  3.   Diversity type

                  4.   time of day

                  5.   whether the traffic is mobile originated or mobile
                       terminated.

         6.55.3. The SRMC shall have the capability to represent the
         geographical areas used for traffic planning as follows:

                  1.   fixed equal size ground cells

                  2.   variable size ground cells

                  3.   national/regional political boundaries

                  4.   continental borders

                  5.   economical/commercial regions.

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         6.55.4. The SRMC shall have the capability to update and optimise the
         traffic predictions by using actual carried traffic measurements
         provided by the NMS.

         6.55.5. The NMS shall provide the SRMC with the actual traffic
         measurements of the global coverage using measurement data generated at
         each SAN.

         6.55.6. The SRMC shall provide the facility for an operator to
         edit/modify the data used for traffic planning.

         6.55.7. The SRMC shall provide the facility for prediction algorithms
         used in the traffic planning to be further developed and optimised in
         the light of operational experience, by means of an Application
         Programming Interface. Traffic algorithm development shall be
         introduced in the LNMC and functionally tested in a planned and
         controlled manner within the boundaries of the OT&DF.

         6.55.8. The SRMC shall have the capability to use the traffic
         predictions produced by the traffic planning function to optimise the
         data produced by the following subsystems:

                  1.   Coverage and Network Planning

                  2.   Satellite Frequency and Channelisation Planning

                  3.   EIRP Management.

         6.55.9. The SRMC shall provide the capability to off-load traffic of
         any SAN approaching its capacity limit in terms of satellite-link
         resources by diverting the part of the traffic to adjacent lightly
         loaded SANs.

         6.55.10. The SRMC shall provide the capability to detect significant
         changes in measured traffic from predicted values.

         6.55.11. The SRMC shall provide the capability to respond to times when
         there are significant changes in measured traffic from predicted
         values, by re-allocation of available system resources accordingly.

         6.55.12. The SRMC shall have the capability to perform short-term,
         middle-term and long-term trend analysis on predicted and measured
         traffic data.

         6.55.13. The exact functional structure for traffic planning will
         depend on the design and implementation of the system but shall be
         based on the functional block diagram illustrated in the figure below.

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                                  [FLOW CHART]

        6.55.14. FIGURE 6-4 FUNCTIONAL BLOCK DIAGRAM FOR TRAFFIC PLANNING

6.56. CHANNEL UNIT FAILURE HANDLING

6.56.1. TRAFFIC CHANNEL UNIT FAILURES

         6.56.1.2.1. In the event of the failure of a traffic channel unit, the
         SBS shall inform the SAN-OSS of the failure.

         6.56.1.2. The IGF shall tear down all traffic calls that were being
         routed solely through that channel unit, and release all the assigned
         traffic channels through that channel unit.

         6.56.1.3. The IGF shall continue all calls that were operating in
         diversity mode where one path was routed through the failed channel
         unit and the other path was routed through a different channel unit.
         However, the path routed through the failed channel unit shall be
         dropped.

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6.56.2. CONTROL CHANNEL UNIT FAILURES

         6.56.2.1. In the event of the failure of a control channel unit, the
         SBS shall inform the SAN-OSS of the failure.

         6.56.2.2. The IGF shall configure an unused control channel unit (if
         one is available) to replace the control channels that were being
         provided by the failed channel unit. This shall be achieved within [60]
         seconds.

         6.56.2.3. If no unused control channel unit is available, the IGF shall
         re-configure a traffic channel unit to operate as a control channel
         unit, and then configure it to replace the control channels that were
         being provided by the failed channel unit. This shall be achieved
         within [120] seconds. By preference, a traffic channel that was not
         carrying any traffic shall be used for this purpose.

         6.56.2.4. If it is necessary to reconfigure a traffic channel unit to a
         control channel unit, and that traffic channel unit was carrying
         traffic, the IGF shall attempt to handover all active calls to other
         channel units prior to reconfiguring the channel unit an extra [15]
         seconds will be allocated to attempt this. Should it not be possible to
         handover any of the calls, the IGF shall release those traffic channels
         as defined in Section 6.56.1.

6.57. RFT FUNCTIONAL REQUIREMENTS

6.57.1. GENERAL REQUIREMENTS

6.57.1.1. NUMBER OF ANTENNAS

         6.57.1.1.1. Five antennas shall be required at each SAN site.
         Generally, two or more may be in track modes, tracking satellite in
         view, one antenna may likely be in a 'flyback' mode, one antenna may be
         in a 'positioned' mode waiting for the rising satellite to appear at
         the horizon, and one antenna may be an active spare.

6.57.1.2. COLLOCATION WITH TT&C SITE

         6.57.1.2.1. Six selected SAN sites shall be collocated with the TT&C
         stations.

         6.57.1.2.2. In these selected SANs, the major RF equipment, notably
         antennas, LNAs and HPAs, shall be shared by the communication traffic
         and the TT&C command and telemetry carriers.

         6.57.1.2.3. One of the TT&C collocated site shall have the capability
         supporting the IOT (In Orbit Test) of satellites.

         6.57.1.2.4. Upconverters and downconverters for dedicated use of the
         TT&C shall be provided for these SANs.

         6.57.1.2.5. The output of the TT&C upconverters shall be combined with
         the output of the communication upconverters and fed to the input to
         the HPA.

         6.57.1.2.6. The LNA output shall be divided to feed to the input of the
         TT&C down-converters and the communication down-converters.

         6.57.1.2.7. The TT&C ground equipment will be provided separately by
         the satellite contractor and are outside the scope of this requirement
         document.

         6.57.1.2.8. Interface requirements between the TT&C ground equipment
         including IOT equipment and the SAN equipment are specified in TT&C to
         SAN Interface Control Documents (ICD).

6.57.1.3. IF CONNECTIVITY REQUIREMENTS

         6.57.1.3.1. The IF between the RFT and the IF Distribution shall be
         L-band (1010.5 MHz-1660.5 MHz).

         6.57.1.3.2. Independent signal processing paths for each RFT shall be
         provided for signals designated for left hand circular polarisation
         and right hand circular polarisation, for both the transmit and receive
         directions.

6.57.1.4. C-BAND TRANSMIT PASS BAND

         6.57.1.4.1. The C-Band Transmit Pass Band shall be 5179.5 to 5244.5
         MHz.

6.57.1.5. C-BAND RECEIVE PASS BAND

         6.57.1.5.1. The C-Band Receive Pass Band shall be 7011.0 to 7073.9 MHz.

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6.57.1.6. S-BAND TRANSMIT PASS BAND

         6.57.1.6.1. The S-Band Transmit Pass Band shall be 1985 to 2015 MHz.

6.57.1.7. S-BAND RECEIVE PASS BAND

         6.57.1.7.1. The S-Band Receive Pass Band shall be 2170 TO 2200 MHz.

6.57.1.8. REDUNDANCY REQUIREMENT

         6.57.1.8.1. The RFT subsystem shall consist of the five sets of the
         antenna and RF equipment in the 4+1 redundant configuration.

         6.57.1.8.2. Furthermore, the antenna and RF equipment subsystems within
         each RFT subsystem shall have the following redundancy configuration.

<TABLE>
<S>                                                  <C>
Antenna subsystem                                    Non-redundant
C-band HPA                                           2+1 redundant configuration
C-band LNA                                           2+1 redundant configuration
C-band Upconverter                                   2+1 redundant configuration
C-band Downconverter                                 2+1 redundant configuration
S-band HPA                                           Non-redundant
S-band LNA                                           Non-redundant
S-band Upconverter                                   Non-redundant
S-band Downconverter                                 Non-redundant
TT&C Upconverter                                     1+1 redundant configuration
TT&C Downconverter                                   1+1 redundant configuration
</TABLE>

         6.57.1.8.3. Each redundant system shall have an automatic real-time
         changeover facility to change traffic from a faulty unit to a standby
         unit in case an on-line unit is in failure condition and to minimise
         the loss of traffic without the help of RFT Controller/OAM functions.

6.57.1.9. NON-INVERSION OF SPECTRUM

         6.57.1.9.1. The spectrum of the C-band and S-band transmit signals at
         the antenna shall not be inverted from that of the modulator output
         signals.

         6.57.1.9.2. The spectrum of the demodulator input signals shall not be
         inverted from that of the C-band and S-band received signals at the
         antenna.

6.57.2. ANTENNA REQUIREMENTS

6.57.2.1. GENERAL

         6.57.2.1.1. The antenna shall be capable of transmission and reception
         of both C-band and S-band signals.

6.57.2.2. ANTENNA POINTING AND TRACKING REQUIREMENTS

6.57.2.2.1. TRACKING CONTROL

         6.57.2.2.1.1. The antenna shall be capable of the following tracking
         and pointing control modes:

                  1.   Automatic Tracking

                       The antenna shall track the satellite autonomously
                       receiving the satellite TT&C telemetry signal.
                       The tracking control shall be designed so that the
                       antenna will not track by its sidelobes.

                  2.   Program Tracking

                       The antenna shall track the satellite autonomously based
                       on the satellite ephemeris data provided from the SCC.

                  3.   Search Pattern Tracking

                       The antenna shall search the satellite with hexagonal
                       search patterns near the predicted orbit locations based
                       on the satellite ephemeris data until the satellite is
                       acquired.
                       Then the antenna shall be in the automatic tracking mode.

                  4.   Pointing (Command Position and Manual)

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                       The antenna shall be pointed to the specified pointing
                       angles.

                  5.   Stand-by Mode

                       The antenna shall be pointed to the predicted direction
                       for the rising satellite and ready to track the satellite
                       automatically when the satellite is acquired.

                  6.   Drive to Stow Position

                       The antenna shall be capable of being driven to the stow
                       position.

         6.57.2.2.1.2. The antennas installed at selected SAN sites, including
         all SAN TT&C sites, shall have mono-pulse tracking capability.

6.57.2.2.2. SAFETY

         6.57.2.2.2.1. Appropriate safety measures shall be provided to protect
         human and the antenna itself in case of the failure of the driving
         apparatus. The following safety devices shall be provided to the
         antenna:

                  1.   emergency stop switch

                  2.   drive disable switch

                  3.   drive limit switch

6.57.3. C-BAND TX/RX FUNCTIONAL REQUIREMENTS

6.57.3.1. C-BAND TX FUNCTIONAL REQUIREMENTS

6.57.3.1.1. NOMINAL TRANSMIT FREQUENCY OF C-BAND CARRIERS

         6.57.3.1.1.1. The nominal carrier frequency of the C-band carriers
         shall be at:

<TABLE>
<S>                                                           <C>
                    C-S Communications:                       5187.100 MHz + n x 0.025 MHz
                        (n = 1 to 1991)

                    HPN Messages                              5186.40 MHz or 5237.60 MHz
                        (switchable)

                    C-C pilots:                               (Band)5,183.1-5,185.6 LHCP;
                                                              5,239.1-5,241.6 RHCP.

                    SRMS Command:                             5186.80 MHz or 5237.20 MHz
                        (switchable)

                    HPN Command:                              5186.60 MHz or 5237.40 MHz
                        (switchable)

                    TT&C:                                     5180.0 MHz or 5244.0 MHz (switchable)
</TABLE>

6.57.3.1.2. TRANSMIT FREQUENCY CONVERSION

         6.57.3.1.2.1. The transmit subsystem for communication carriers shall
         translate the intermediate frequency passband at the output of the
         channel units to the C-band transmit passband specified in Section
         6.57.1.4.

6.57.3.1.3. COMMUNICATION DISABLE SWITCH

         6.57.3.1.3.1. The RFT shall be provided with communication disable
         switches which would disconnect all communication signals from the
         transmit paths in case of the emergency TT&C operation.

         6.57.3.1.3.2. These switches shall be remotely controllable as
         specified by the TT&C to SAN ICD.

         6.57.3.1.3.3. Manual over-ride shall be possible for these switches.

6.57.3.2. C-BAND RX FUNCTIONAL REQUIREMENTS

6.57.3.2.1. NOMINAL RECEIVE FREQUENCY OF ICO CARRIERS

         6.57.3.2.1.1. The nominal carrier frequency of the C-band carriers
         shall be at:

<TABLE>
<S>                                                          <C>
                  S-C Communications Carriers:               7018.100 MHz + n x 0.025 MHz
                      (n = 1 to 1991)
                  SRMS Telemetry:                            7017.40 MHz or 7068.40 MHz
                      (switchable)
                  C-C Pilots:                                (Band) 7,014.1-7,016.6 LHCP
                                                             7,069.1-7,071.6 RHCP
</TABLE>

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<TABLE>
<S>                                                          <C>
                  TT&C Telemetry:                            7011.5/7012.5 MHz or
                  7072.5/7073.5 MHz
                  (switchable)
</TABLE>

6.57.3.2.2. RECEIVE FREQUENCY CONVERSION

         6.57.3.2.2.1. The receive subsystem shall translate the C-band receive
         passband specified in Section 6.57.1.5 to an intermediate frequency
         passband.

6.57.4. S-BAND TX/RX FUNCTIONAL REQUIREMENTS

6.57.4.1. GENERAL

         6.57.4.1.1. S-band TX and RX capabilities shall be provided, in order
         to transmit test mobile signals and to receive S-band carriers for
         monitoring and level calibration purposes.

6.57.4.2. S-BAND RX FUNCTIONAL REQUIREMENTS

6.57.4.2.1. NOMINAL TRANSMIT FREQUENCY OF ICO CARRIERS

         6.57.4.2.1.1. The Nominal Transmit Frequency of ICO carriers shall be:

               1985.000 MHz + n x 0.025 MHz (n = 1 to 1199)

6.57.4.2.2. TRANSMIT FREQUENCY CONVERSION

         6.57.4.2.2.1. The transmit subsystem shall translate the intermediate
         frequency passband output of the channel units to the S-band transmit
         passband specified in Section 6.57.1.6.

6.57.4.3. S-BAND RX FUNCTIONAL REQUIREMENTS

6.57.4.3.1. NOMINAL RECEIVE FREQUENCY OF ICO CARRIERS

         6.57.4.3.1.1. The Nominal Receive Frequency of ICO carriers shall be:

               2170.000 MHz + n x 0.025 MHz (n = 1 to 1199)

6.57.4.3.2. RECEIVE FREQUENCY CONVERSION

         6.57.4.3.2.1. The receive subsystem shall translate the receive S-band
         passband to an intermediate frequency passband specified in Section
         6.57.1.7.

6.57.5. DOPPLER MEASUREMENTS AND COMPENSATION FUNCTIONAL REQUIREMENTS

6.57.5.1. GENERAL

         6.57.5.1.1. The AFC system shall compensate for satellite local
         oscillator frequency drift and Doppler shift at up and down-links of
         the C-band.

         6.57.5.1.2. In order to reduce the frequency errors seen by the UT
         demodulators, automatic frequency compensation (AFC) shall be performed
         by the SAN on the C-band transmit signals at the C-band up-converters.

         6.57.5.1.3. In order to reduce the frequency errors seen by the CU
         demodulators, AFC shall be performed at the C-band down-converters on
         the C-band receive signals as well.

         6.57.5.1.4. These AFC functions shall be performed for all
         communications and signalling carriers, including HPN message/command
         carriers and SRMS command/telemetry carriers.

         6.57.5.1.5. TT&C command and telemetry carriers shall not be affected
         by the AFC.

6.57.5.2. COMPENSATION OF RESIDUAL DOPPLER SHIFT AT CHANNEL UNITS

         6.57.5-2.1. Since the amount of the Doppler shift is proportional to
         the frequency, different amount of compensation is required for the
         signal at different frequencies within C-band transmit and receive
         band.

         6.57.5.2.2. The AFC system shall compensate for the Doppler shift at
         the centre frequency of the C-band transmit (5,212 MHz) and receive
         (7,043 MHz) band.

         6.57.5.2.3. The residual Doppler shift at the actual frequency of the
         signal shall be further compensated for at the Channel Units.

         6.57.5.2.4. The AFC control unit shall provide the frequency
         compensation data to the Channel Managers for compensation of this
         frequency dependent residual Doppler shift.

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6.57.5.3. USE OF THE SATELLITE EPHEMERIS DATA

         6.57.5.3.1. The AFC control unit shall be fed time-tagged ephemeris
         data by the SRMS for use in predicting the Doppler shift expected at
         any time in the satellite orbit referenced to a particular SAN.

         6.57.5.3.2. This prediction shall be used to set the correction signal
         for rising satellites.

         6.57.5.3.3. Also, this prediction shall be used as a secondary mode of
         AFC control should one or both of the pilots not be available. [F/R]

         6.57.5.3.4. The AFC control unit shall compare the measured Doppler
         shift with the values predicted by the satellite ephemeris data and
         generate an alarm signal if the difference exceeds the pre-set value
         [F/R].

6.57.6. AUTOMATIC POWER CONTROL (APC)

6.57.6.1. GENERAL REQUIREMENTS

         6.57.6.1.1. The RF transmit subsystem shall have an automatic power
         control subsystem to compensate for path loss changes. These path loss
         changes are a result of path length change as the satellite moves
         through its orbital track, the path loss changes due to environment,
         and changes of the satellite receive antenna gain with regard to the
         signal direction.

         6.57.6.1.2. The automatic power control subsystem shall perform
         comparison of the received satellite SRMS telemetry level to the C-to-C
         pilot loopback pilot level, to correct the transmit subsystem gain to
         compensate for changes in path loss from a nominal clear sky reference
         value.

6.57.7. AXIAL RATIO COMPENSATION FUNCTIONS (F/R)

         6.57.7.1. This function is required for some SAN sites located in a
         heavy rain region to mitigate the effects of propagation-induced
         depolarisation.

         6.57.7.2. This system shall use wideband polarises in the feed of the
         C-band RFT to correct the polarisation of the receive and transmit
         signals.

         6.57.7.3. The system shall use C - C pilots transmitter in both
         polarisations.

         6.57.7.4. The received level of the pilots in the co-polarised and
         cross-polarised channels shall be detected and used to develop
         correction commands to the motorised polarises.

         6.57.7.5. The correction commands shall be used to optimise the setting
         of the polarises, with the ultimate goal being the maximum
         cross-polarisation isolation (i.e., minimum axial ratio) between LH and
         RH feed ports.

         6.57.7.6. The system shall meet the following specification:

                  1.   Compensation improvement 10 dB minimum when 15 dB
                       degradation from clear sky without compensation.

6.57.8. RIFT MONITORING AND CONTROL

         6.57.8.1. Control and monitoring of the RFTs shall be performed by the
         RFT OAM, directed by the SRMS Controller.

         6.57.8.2. For emergency TT&C operations, the control shall be directed
         by the SCC through the TT&C ground equipment only.

6.57.9. TT&C SUPPORT FUNCTIONS

6.57.9.1. GENERAL

         6.57.9.1.1. Scope of the TT&C Support Functions section is to define
         the specific functions of the RFT which shall be implemented to support
         the TT&C Operation.

6.57.9.2. SUPPORT FOR TT&C RANGING CALIBRATION

         6.57.9.2.1. For ranging calibration, a frequency selectable translator
         shall be provided to loop back the HPA output signal to the input of
         the LNA.

         6.57.9.2.2. The absolute delay of the translator shall be calibrated.
         Requirement of the test loop translator is specified in the TT&C to SAN
         Interface Control Document.

         6.57.9.2.3. Couplers shall be provided at the input of the LNAs.

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6.57.9.3. SUPPORT FOR TT&C EIRP MEASUREMENT

         6.57.9.3.1. A selective power meter shall be provided at the output of
         the HPA to measure the EIRP of the TT&C command carrier.

         6.57.9.3.2. The measured data shall be sent to the TT&C baseband
         equipment through the RFT OAM.

6.57.9.4. SUPPLY OF SAN REFERENCE CLOCK TO TT&C

6.57.9.4.1. GENERAL

         6.57.9.4.1.1. The SAN reference clock shall be supplied to the TT&C
         ground equipment as specified in the TT&C to SAN ICD.

6.57.9.4.2. FORMAT

         6.57.9.4.2.1. The format of the time reference signal shall be in
         accordance with IRIG 200-95, code B-120.

6.57.9.4.3. TIME ACCURACY

         6.57.9.4.3.1. Time accuracy at the TT&C interface point shall be better
         than +/- 100 (micron)sec.

6.57.9.5. RF EQUIPMENT REQUIREMENTS FOR IOT SUPPORT

6.57.9.5.1. GENERAL

         6.57.9.5.1.1. Two RFTs in one selected TT&C collocated SAN site shall
         be capable of supporting the satellite IOT (In-Orbit Test).

         6.57.9.5.1.2. It shall be possible to insert C-band and S-band signals
         generated by the IOT equipment at the input of the HPA.

         6.57.9.5.1.3. The output power levels at the HPA and the LNA output
         shall be measured very accurately.

         6.57.9.5.1.4. To calibrate the LNA gain, a reference signal shall be
         inserted at the input of the LNA.

         6.57.9.5.1.5. It shall be possible to transmit test SRMS/HPN command
         signals generated by the IOT SRMS/HPN modulator to test the satellite
         SRMS/HPN configuration.

         6.57.9.5.1.6. It shall be possible to receive SRMS telemetry signals,
         and to feed them to the IOT SRMS demodulator. Details of the interface
         are provided in the TT&C to SAN ICD.

         6.57.9.5.2. SIGNAL COUPLER REQUIREMENTS FOR CONNECTION OF MEASURING
         EQUIPMENT

         6.57.9.5.2.1. The following test signal injection and branching
         capabilities shall be provided:

                  1.   Signal Injection to C-band HPA Input

                  2.   Signal Branching at C-band HPA Output

                  3.   Signal Injection to C-band LNA Input

                  4.   Signal Branching at C-band LNA Output

                  5.   Signal Injection to S-band HPA Input

                  6.   Signal Branching at S-band HPA Output

                  7.   Signal Injection to S-band LNA Input

                  8.   Signal Branching at S-band LNA Output

         6.57.9.5.2.2. Also, switching capabilities shall be provided, to select
         a desired polarisation and to disconnect the communications equipment
         from the transmit/receive paths.

6.57.9.6. RIFT SIMULATOR

         6.57.9.6.1. The RIFT Simulator is a computer with software which shall
         simulate the behaviour of the RFT OAM with respect to its interface
         with SCC through TT&C ground equipment. The requirement for the RFT
         Simulator is found in the ICD ICO TT&C Ground to SAN (doc. no.
         IC80539-D01-002), part 1.

6.57.10. PCS/HPN SUPPORT FUNCTIONS

         6.57.10.1. The RIFT shall have the capability to transmit and receive
         the PCS/HPN carriers and its operational bandwidth shall be wide enough
         for simultaneous transmission/reception of PCS/HPN carriers as well as
         C-S/S-C communication carriers.

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         6.57.10.2. There will be no dedicated RF equipment for PCS/HPN but all
         equipment, including the interfacility link (IFL) between the RFT
         shelter and the central hub building, shall be shared between PCS/HPN
         and C-S/SC communications.

         6.57.10.3. The IF frequency band for the PCS/HPN shall be the same as
         for the communications and it shall be 1GHz band.

6.57.11. TEST LOOP TRANSLATOR

         6.57.11.1. A tuneable test loop translator shall be included in SAN
         RFT/Antenna for supporting ranging calibrations and communication
         signal loopback tests. The loop via the translator shall include all
         the RFT equipment, cables and waveguides excluding the antenna feed and
         reflector.

         6.57.11.2. The local frequency shall be remotely switchable among six
         (6) frequencies to support the frequency translations as described
         below:

                  6.57.11.3. (for TT&C ranging loopback)

<TABLE>
<CAPTION>
                         LOCAL FREQUENCY                TRANSLATION
                         ---------------                -----------
<S>                                                     <C>
                         1831.5 MHz:                    5180 MHz to 7011.5 MHz
                         1892.5 MHz:                    5180 MHz to 7072.5 MHz
                         1768.5 MHz:                    5244 MHz to 7012.5 MHz
                         1829.5 MHz:                    5244 MHz to 7073.5 MHz
</TABLE>

                  6.57.11.4. (for communication test loopback)
<TABLE>
<CAPTION>
                         LOCAL FREQUENCY                TRANSLATION
                         ---------------                -----------
<S>                                                     <C>

                          1831 MHz:                     5187.1-5236.9 MHz to 7018.1-7067.9 MHz (C-S/S-C)
                          as above:                     5183.1-5185.6 MHz to 7014.1-7016.6 MHz (C-C lower)
                          1830 MHz:                     5239.1-5241.6 MHz to 7069.1-7071.6 MHz (C-C upper)
</TABLE>

         6.57.11.5. Group delay variation shall be within 3ns/MHz at the TT&C
         frequencies and over the communication bands described above. Absolute
         delay stability at the TT&C frequencies shall be better than
         3ns/6months and over the operating temperature range. The spectrum
         shall not be inverted. The gain (or loss) of the translator shall be
         adjustable from TBD dB to TBD dB.

         6.57.11.6. The absolute delay data at the TT&C frequencies shall be
         provided. (TBD)

6.58. RFT PERFORMANCE REQUIREMENTS

6.58.1. ANTENNA REQUIREMENTS

6.58.1.1. ANTENNA POINTING AND TRACKING REQUIREMENTS

6.58.1.1.1. REQUIRED POINTING AND TRACKING SPEED AND RANGE

         6.58.1.1.1.1. The antenna shall be capable of pointing and tracking ICO
         satellites over a 360 degree range of azimuth and over a 0 to 90 degree
         of elevation angle.

         6.58.1.1.1.2. The antenna shall be capable of tracking satellites
         passing over the location of the antenna.

6.58.1.1.2. POINTING AND TRACKING ACCURACY

         6.58.1.1.2.1. The antenna shall be capable of pointing to any location
         in the ICO orbital arc sky area above 5 degree elevation angles with a
         rms accuracy of better than 0.04 degrees.

         6.58.1.1.2.2. The antenna shall be capable of tracking a satellite,
         moving at any location in the ICO orbital arc sky area above 5 degree
         elevation angles, except for the area above 89 degree elevation angle,
         with a 3-sigma accuracy of better than 0.04 degrees for monopulse
         tracking and rms accuracy of better than 0.04 degrees for step
         tracking.

         6.58.1.1.2.3. In the area above 89 degree elevation angle, the rms
         tracking error shall be less than 0.08 degrees.

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6.58.1.1.3. SATELLITE ACQUISITION AND ANTENNA FLYBACK TIME

         6.58.1.1.3.1. The antenna shall be capable of being pointed to a
         location where a satellite is predicted to be rising and to acquire
         that satellite automatically at an elevation of no greater than 5
         degrees.

         6.58.1.1.3.2. Once acquired, the antenna shall automatically track the
         satellite until the satellite reaches the opposite horizon (i.e.,
         elevation reaches 5 degrees). Satellite acquisition time is defined as
         the elapsed time from when the satellite enters within the half power
         beamwidth of the stand-by antenna until the antenna becomes auto
         tracking mode and tracks the satellite within the accuracy specified in
         Section 6.58.1.1.2.

         6.58.1.1.3.3. Satellite acquisition time shall be less than 10 seconds
         for monopulse tracking, and 30 seconds for step tracking.

         6.58.1.1.3.4. The antenna flyback time shall be less than 60 seconds.

         6.58.1.1.3.5. The antenna shall be able to acquire the satellite (i.e.
         to go in autotrack) with a signal (carrier component after modulation)
         minimum PFD of -176 dBW/m(2) at the centre of the antenna directivity.
         At plus or minus 0.15 degrees of the antenna beam axis, the minimum PFD
         should be -173 dBW/m(2).

         6.58.1.1.3.6. While in autotrack, the antenna shall maintain lock with
         a signal (carrier component after modulation) PFD of -180 dBW/m(2).

6.58.1.1.4. COMPARISON WITH THE EPHEMERIS DATA

         6.58.1.1.4.1. When the antenna is in the automatic tracking mode, the
         ACU shall compare the current pointing angles with those predicted by
         the satellite ephemeris data, and an alarm shall be generated when the
         difference exceeds a pre-set value.

6.58.1.1.5. ANTENNA ANGLE DATA ACCURACY

         6.58.1.1.5.1. In all modes, the rms error of the antenna pointing
         direction shall be less than 0.05 degrees. The antenna angle data shall
         be time-stamped with an accuracy better than plus or minus [1] S.

6.58.1.2. C-BAND ANTENNA PERFORMANCE REQUIREMENTS

6.58.1.2.1. TX GAIN

         6.58.1.2.1.1. The transmit gain measured at the transmit port of the
         feed shall be at least:

                         50.3 + 20 log (F/5175) dBi

         within the required transmit pass-band, where F is frequency in MHz.

         6.58.1.2.1.2. The half power beamwidth for any cross-section of the
         main beam shall be less than or equal to 0.6 degrees.

6.58.1.2.2. RX GAIN

         6.58.1.2.2.1. The receive gain measured at the receive port of the feed
         shall be at least:

                         52.7 + 20 log (F/7000) dBi

         within the required receive pass band, where F is frequency in MHz.

         6.58.1.2.2.2. The half power beamwidth for any cross-section of the
         main beam shall be less than or equal to 0.5 degrees.

6.58.1.2.3. POLARISATION

         6.58.1.2.3.1. Transmissions at C-Band from the antenna shall be dual
         polarised (RHCP and LHCP), and reception at C-band shall also be dual
         polarised (LHCP and RHCP).

         6.58.1.2.3.2. Polarisation sense shall be as defined in Recommendation
         ITU-R V.573.

6.58.1.2.4. AXIAL RATIO

         6.58.1.2.4.1. The transmit axial ratio and the receive axial ratio
         within 10% of the half power beamwidth of the boresight direction shall
         not exceed 1.06. For the two IOT Antennas only the axial ratio shall
         not exceed 1.05.

6.58.1.2.5. SIDELOBE CHARACTERISTICS

         6.58.1.2.5.1. The transmit and receive sidelobes shall be in accordance
         with Recommendation ITU-R S.580-5. The gain of 90% of the sidelobe
         peaks shall not exceed:

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         G(A) = 29 - 25 log A            for A from 1 degrees to 20 degrees,
         G(A) = -3.5                     for A from 20 degrees to 26.3 degrees,
         G(A) = 32 - 25 log A            for A from 26.3 degrees to 48 degrees,
         G(A) = -10                      for A from 48 degrees to 180 degrees,

         where G(A) is the antenna gain in dB relative to isotropic at an angle
         A, in degrees, from the main beam axis. This requirement shall be met
         for any off-axis direction.

6.58.1.2.6. VSWR

         6.58.1.2.6.1. The VSWR of the antenna feed subsystem at the transmit
         and receive ports shall not exceed 1:1.3.

6.58.1.2.7. TX/RX BEAM ALIGNMENT

         6.58.1.2.7.1. The transmit and receive beam alignment shall be within
         1/20 of the half power beam width in the receive beam.

6.58.1.3. S-BAND ANTENNA PERFORMANCE REQUIREMENTS

6.58.1.3.1. TX GAIN

         6.58.1.3.1.1. The transmit gain measured at the transmit port of the
         antenna shall be at least 34.3 dBi within the required transmit
         pass-band.

6.58.1.3.2. RX GAIN

         6.58.1.3.2.1. The receive gain measured at the receive port of the
         antenna shall be at least 34.9 dBi within the required receive
         pass-band.

6.58.1.3.3. POLARISATION

         6.58.1.3.3.1. The S-band transmit and receive signals shall be right
         hand circular polarised (RHCP). Polarisation sense shall be as defined
         in Recommendation ITU-R V.573.

6.58.1.3.4. AXIAL RATIO

         6.58.1.3.4.1. The transmit axial ratio and the receive axial ratio
         shall not exceed 1.3. (TBR)

6.58.1.3.5. SIDELOBE CHARACTERISTICS

         6.58.1.3.5.1. At least 90% of the sidelobe peaks of the antenna pattern
         in any plane shall be less than described by the following expressions:

G(A) = 37-25 log A (dBi)  (for 2 degrees less than A less than 7 degrees)

G(A) = 8 dBi       (for 7 degrees  less than or equal to A less than 70 degrees)

G(A) = 0 dBi       (for 70 degrees less than or equal to A)

         Where G(A) is the antenna gain in dB relative to isotropic at an angle
         A, in degrees, from the main beam axis. This requirement shall be met
         for any off axis direction.

6.58.1.3.6. VSWR

         6.58.1.3.6.1. The VSWR of the antenna feed subsystem at the transmit
         and receive ports shall not exceed 1:1.3. (TBR)

6.58.1.3.7. TX/RX BEAM ALIGNMENT

         6.58.1.3.7.1. The transmit and receive beam alignment shall be within
         1/10 of the half power beamwidth of the receive beam.

6.58.1.3.8. C-S BEAM ALIGNMENT

         6.58.1.3.8.1. The C-band and S-band receive beam alignment shall be
         Within 1/10 of the half power beamwidth of the S-band receive beam.

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6.58.1.4. ISOLATION BETWEEN PORTS

         6.58.1.4.1. The isolation between any C-band port and any S-band port,
         for signals in the C-band and S-band transmit and receive band shall
         be such that the required C-band and S-band G/T requirements specified
         in Section 6.58.2.2.1 and Section 6.58.3.1.1 shall be guaranteed when
         the C-band and S-band signals are simultaneously transmitted at the
         maximum operating EIRP specified in Section 6.53.1.4 and Section
         6.53.3.2.

6.58.1.5. DE-ICING

         6.58.1.5.1. De-icing capability shall be provided for antennas for the
         SAN located in the area with possibility of snow fall.

         6.58.1.5.2. The performance of the de-icing shall be 500W/m(2) and it
         shall be possible to select full or half power control. The graph below
         shows a performance of 500W/m(2) (full power). The de-icing is
         effective in the area below the curve.

            [6.58.1.5.3. FIGURE 6-5 DE-ICING PERFORMANCE AT 500 W/m(2)

6.58.2. C-BAND PERFORMANCE REQUIREMENTS

6.58.2.1. GENERAL

         6.58.2.1.1. The requirements in this section shall be met including all
         equipment and cables between the antenna and channel units, inclusive,
         unless otherwise stated.

         6.58.2.1.2. These requirements are also applicable to TT&C signals,
         unless otherwise stated, when the SAN is collocated with the TT&C site.

6.58.2.2. C-BAND RX PERFORMANCE REQUIREMENTS

6.58.2.2.1. G/T

         6.58.2.2.1.1. The receiving system G/T shall be at least 31 dB/K in the
         direction of the satellite over the entire receive pass band, under
         clear sky and average wind conditions.

         6.58.2.2.1.2. In case the BPF specified in Section 6.53.1.13 is
         inserted, the G/T shall be at least 30.5 dB/K.

         6.58.2.2.1.3. This specification shall be met with the C-band and
         S-band transmitter operating at maximum operating output power
         specified in Section 6.53.1.4 and Section 6.53.3.2 and shall include
         losses dues to antenna polarisation misalignment.

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6.58.2.2.2. RECEIVER DYNAMIC RANGE

         6.58.2.2.2.1. The maximum composite PFD from ICO satellites,
         corresponding to SAN at centre of coverage is [-125] dBw/m(2) per
         polarisation, excluding noise and intermodulation components generated
         by the satellite.

         6.58.2.2.2.2. The range of expected PFD of C-band down link
         communication carriers, assuming the EIRP of the UTs as 6.8 dBW will
         be:

                  Minimum single carrier PFD: [-168] dBW/m(2)

                  Maximum single carrier PFD: [-143] dBW/m(2)

         The minimum value corresponds to the case of:

                  10 degree UT elevation angle,

                   8 dB S-band fade,

                   nominal transponder gain setting,

                   5 degree SAN elevation angle,

                   4.8 dB rain fade at SAN

                   3 dB additional loss.

         The maximum value corresponds to the case of:

                  90 degree UT elevation angle,

                  no S-band fade,

                  nominal transponder gain setting,

                  90 degree SAN elevation angle,

                  no rain fade at SAN,

                  3 dB additional gain.

         6.58.2.2.2.3. The receive subsystem, including demodulators, shall
         operate over a signal range of ICO signals as defined.

6.58.2.2.3. PROTECTION TO THE ADJACENT FREQUENCY INTERFERENCE

         6.58.2.2.3.1. A BPF shall be able to be inserted, if required, before
         each LNA to protect the receivers against terrestrial systems operating
         at less than -30 dBm beyond 60 MHz outside the receive band.

         6.58.2.2.3.2. Insertion loss of the BPF shall not be greater than 0.2
         dB.

6.58.2.2.4. TOLERABLE RECEIVER INPUT LEVEL

         6.58.2.2.4.1. The receive subsystem shall withstand the input level of
         -20 dBm at the LNA input without damage.

6.58.2.2.5. GAIN STABILITY

         6.58.2.2.5.1. The RFT receive subsystem gain including IFL shall be
         maintained within plus or minus 3 dB over the environmental range of
         operation specified in Section 6.58.6.1 and below, assuming AGC is
         disabled.

         Outdoor temperature:       -20 to +55 deg. Centigrade
         Outdoor relative humidity:         0%-100%

6.58.2.2.6. FREQUENCY STABILITY

         6.58.2.2.6.1. The frequency stability of the RX subsystem for
         communication carriers shall be so that the requirements in Section
         6.58.4.4 is met when the AFC is enabled.

         6.58.2.2.6.2. The receive frequency stability for the TT&C carrier
         shall be referred to the TT&C to SAN Interface Control Document

         6.58.2.2.6.3. The local oscillators of the TT&C down-converters shall
         be independent of the SAN Master Reference Oscillators.

6.58.2.2.7. TOTAL PHASE NOISE INDUCED BY THE SAN RECEIVE PATH

         6.58.2.2.7.1. The single sideband noise spectral density induced on any
         received carrier shall not exceed the values given below with the AFC
         function enabled:

              Frequency Offset (F)                SSB Phase Noise Limit
                                                  (dBc/Hz; F in Hz)
              10 - 100 Hz                         -12 - 25 log F
              100 - 800 Hz                        -22.2 - 19.9 log F
              0.8 - 10 kHz                        -80 dBc
              10 - 20 kHz                         +52.8 -33.2 log F

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              20 - 100 kHz                        -90 dBc

         6.58.2.2.7.2. If any discrete phase noise components are present at a
         level that exceeds the limit mask, the 10 Hz to 100 kHz band shall be
         considered to be divided into a number of contiguous sub-bands, each
         containing no more than one discrete component.

         6.58.2.2.7.3. The width of a sub-band containing a discrete component
         shall not exceed F/5 Hz, where F is the frequency of the discrete
         component.

         6.58.2.2.7.4. In each of the sub-bands, the integrated phase noise due
         to any spectral component, including the discrete component, shall not
         exceed that allowed by integrating the limit mask over the same
         sub-band.

         6.58.2.2.7.5. In addition to the above, the following requirements
         shall be met:

                  1.       For offset frequencies up to 250 Hz, no discrete
                           component shall exceed the limit mask by 10 dB.

                  2.       For offset frequencies from 250 Hz to 100 kHz, no
                           discrete component shall exceed - 50 dBc.

         6.58.2.2.7.6. The above specification shall be met from the RF input to
         the LNA to the IF output to the Channel Units.

6.58.3. S-BAND PERFORMANCE REQUIREMENTS

6.58.3.1. S-BAND RX PERFORMANCE REQUIREMENTS

6.58.3.1.1. G/T

         6.58.3.1.1.1. The receiving system G/T shall be at least 8.8 dB/K in
         the direction of the satellite over the entire receive pass-band under
         clear sky and average wind conditions.

         6.58.3.1.1.2. This specification shall be met with the C-band and
         S-band transmitter operating at maximum operating output power.

6.58.3.1.2. RECEIVER DYNAMIC RANGE

         6.58.3.1.2.1. The maximum composite PFD from ICO satellites,
         corresponding to SAN at centre of coverage is -100 dBW/m(2) excluding
         noise and intermodulation components generated by the satellite.

         6.58.3.1.2.2. The expected PFD of S-band down link communication
         carriers will be:

                  1.       TCH:   -199 dBW/m(2)

                  2.       BCCH:  -115 dBW/m(2)

                  3.       HPN:   -105 dBW/m(2).

         Note that the variation of these values will not be much because the
         up-link fade will be compensated for by the ALC and there will be
         little downlink fade.

         6.58.3.1.2.3. The receive subsystem shall operate over a signal range
         of ICO signals as described above.

6.58.3.1.3. RECEIVE FREQUENCY STABILITY

         6.58.3.1.3.1. The frequency stability of the S-band RX subsystem shall
         be better than +/- 5 Hz.

6.58.3.1.4. RECEIVE GAIN STABILITY

         6.58.3.1.4.1. Gain stability of the receive subsystem excluding IFL
         shall be better than +/- 3 dB.

6.58.3.1.5. RECEIVE GAIN CALIBRATION REQUIREMENT

         6.58.3.1.5.1. Provision shall be provided to insert a standard signal
         generator signal with a known level to the S-band LNA input port to
         calibrate the gain of the S-band receive path any time as necessary to
         meet the receive level measurement requirement specified in Section
         6.58.3.1.6.

6.58.3.1.6. C-S LOOPBACK BCCH MONITOR

         6.58.3.1.6.1. The S-band BCCH power monitor shall measure signal level
         of the received BCCH, which was transmitted by own SAN.

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         6.58.3.1.6.2. All the signal level information thus gathered on the
         transponder and link shall be reported to the SRMS/SRMC. The SRMC will
         receive this information from all 12 SANs and by processing over time,
         the SRMC will be able to verify transponder EIRP and gain settings.
         Among others, the SAN SRMS will use the gathered data to adjust the SAN
         EIRP of the BCCH and other carriers so that their S-band EIRP from the
         satellite will be expected to be within plus or minus 1.5 dB of the
         specified values.

         6.58.3.1.6.3. The gain of the SAN S-band receive chain shall be
         calibrated as specified in Section 6.58.3.1.5 so that the accuracy of
         the measured BCCH levels is better than plus or minus 1.0 dB.

6.58.3.1.7. RECEIVER PHASE NOISE

         6.58.3.1.7.1. The single sideband phase noise spectral density induced
         on any received carrier shall not exceed the values given below:

            Frequency Offset (F)                SSB Phase Noise Limit
                                                   (dBc/Hz; F in Hz)
            10 - 100 Hz                           -12 - 25 log F
            100 - 800 Hz                          -22.2 - 19.9 log F
            0.8 - 10 kHz                          -80 dBc
            10 - 20 kHz                           +52.8 -33.2 log F
            20 - 100 kHz                          -90 dBc

         6.58.3.1.7.2. If any discrete phase noise components are present at a
         level that exceeds the limit mask, the 10 Hz to 100 kHz band shall be
         considered to be divided into a number of contiguous sub-bands, each
         containing no more than one discrete component.

         6.58.3.1.7.3. The width of a sub-band containing a discrete component
         shall not exceed F/5 Hz, where F is the frequency of the discrete
         component.

         6.58.3.1.7.4. In each of the sub-bands, the integrated phase noise due
         to any spectral component, including the discrete component, shall not
         exceed that allowed by integrating the limit mask over the same
         sub-band.

         6.58.3.1.7.5. In addition to the above, the following requirements
         shall be met:

                  1.       For offset frequencies up to 250 Hz, no discrete
                           component shall exceed the limit mask by 10 dB.

                  2.       For offset frequencies from 250 Hz to 100 kHz, no
                           discrete component shall exceed - 50 dBc.

6.58.4. DOPPLER MEASUREMENT AND COMPENSATION PERFORMANCE REQUIREMENTS

6.58.4.1. PHASE NOISE

         6.58.4.1.1. The AFC compensation system shall meet the performance
         requirements in the presence of phase noise on the received C-to-C
         pilot.

         6.58.4.1.2. The phase noise induced by the AFC system shall be such
         that the overall phase noise specification in Section 6.53.1.14 shall
         be met.

6.58.4.2. CONTROL STEP SIZE AND RANGE

         6.58.4.2.1. The AFC system shall have a frequency control capability in
         phase continuous steps of no more than 1 Hz, up to a minimum of plus or
         minus 42 kHz of nominal frequency.

6.58.4.3. AFC ACQUISITION TIME

         6.58.4.3.1. AFC acquisition time is defined as the time that the AFC
         compensation error becomes within the specification given in Section
         6.58.4.4 after the reception of the pilot signals by the antenna.

         6.58.4.3.2. AFC acquisition time shall be less than 1 minute from any
         initial state, and less than 20 seconds when the initial prediction by
         using the satellite ephemeris data is available.

6.58.4.4. AFC ERROR AND RESPONSE SPEED

         6.58.4.4.1. The AFC system shall meet the following requirements:

               1.  Threshold C/N[o] 45 dBHz

               2.  Input signal characteristics

                   Frequency variation range     less than plus or minus 72 kHz
                   Change rate                   less than 38 Hz/sec

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               Satellite LO drift       less than 10(-8) (long term)
                                        less than 10(-10)(for 10 seconds)

               3.  Frequency compensation error
                   Transmit (SAN IF to Satellite S - band output):
                           less than plus or minus [6]Hz at centre frequency

               4.  Receive (Satellite S - band input to SAN IF):
                           less than plus or minus [6]Hz at centre frequency

6.58.5. AUTOMATIC POWER CONTROL (APC)

6.58.5.1. C-BAND TRANSMIT POWER CONTROL RANGE

         6.58.5.1.1. The automatic power control subsystem shall be able to
         adjust EIRP for path loss variation of up to + 3 dB of the clear sky
         value, and the satellite gain variation over time up to 3 dB
         peak-to-peak.

         6.58.5.1.2. Total automatic power control range shall be at least 20
         dB.

6.58.5.2. C-BAND TRANSMIT POWER CONTROL ACCURACY

         6.58.5.2.1. The expected accuracy of this control shall be better than
         plus or minus 1.0 dB at the satellite C-band receive antenna output.

6.58.6. RFT SHELTER

6.58.6.1. ENVIRONMENTAL CONDITIONS

         6.58.6.1.1. The RF equipment shall be installed in the RFT shelter or
         building located near each antenna.

         6.58.6.1.2. The environmental conditions inside the RFT Shelter shall
         be controlled to meet the conditions specified below:

         Temperature:       +10 to +40 deg. Centigrade

         Relative humidity:         5%-95%

6.58.6.2. CABLING BETWEEN THE ANTENNA AND THE RFT EQUIPMENT

         6.58.6.2.1. Cable loss between the Antenna and the RFT equipment shall
         be such that C-band and S-band performance requirements specified in
         Section 6.58.2 and Section 6.58.3 be met.

6.58.6.3. CABLING BETWEEN THE RFT SHELTER AND THE MAIN BUILDING

         6.58.6.3.1. Channel Units will be located in the central building
         separated from the RFT Shelters.

         6.58.6.3.2. The cabling for IF and LAN signals between the RFT Shelter
         and the Main Building shall be redundant for any cable carrying signals
         for more than 1 RFT.

         6.58.6.3.3. Cable loss between the RIFT equipment and the Channel Units
         shall be such that C-band and S-band performance requirements specified
         in Section 6.58.2 and Section 6.58.3 are met.

         6.58.6.3.4. Specifically, the amplitude response, and its variation, of
         the cable shall be taken into account to meet the EIRP level accuracy
         and stability requirements specified in Section 6.53.1.6.

6.58.7. RFT DOWNLINK REQUIREMENTS FOR TT&C

6.58.7.1. APPLICABILITY

         6.58.7.1.1. The specifications in this section shall apply, over the
         operating temperature range, to the overall receive downlink path
         defined from the antenna feed output ports to the IF interface ports of
         the GCE.

6.58.7.2. BANDWIDTH AND GAIN

         6.58.7.2.1. The 10 dB bandwidth shall be greater than plus or minus 3
         MHz and not greater than plus or minus 25 MHz.

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         6.58.7.2.2. The gain stability shall be within plus or minus 1 dB
         excluding the gain variation due to the IFL and the gain variation
         across the passband shall be less than 1 dB. The gain variation of the
         IFL shall be less than [plus or minus 2.5] dB.

         6.58.7.2.3. The nominal level of the telemetry beacon signal at IF,
         corresponding to a power flux density at the antenna surface of -158
         dBW/m(2), shall be -45 dBm.

6.58.7.3. FREQUENCY CONVERSION

         6.58.7.3.1. The overall frequency offset shall be less than plus or
         minus 10kHz from the nominal frequency. The frequency translation
         equipment shall not be synchronised to the SAN master frequency source.
         The system shall not invert the spectrum of the received signal.

6.58.7.4. PHASE NOISE

         6.58.7.4.1. Phase noise spectral density shall not exceed the mask
         defined by the following breakpoints:

               -37 dBc/Hz           10 Hz offset

               -62 dBc/Hz           100 Hz offset

               -80 dBc/Hz           3000 Hz offset

6.58.7.5. SPURIOUS SIGNALS (TBR)

         6.58.7.5.1. The level of spurious signals shall be less than -56 dBm
         and the level of the thermal noise shall be less than -60 dBm in any
         4kHz band within the receive band provided that the signal output level
         from the downconverter is -26 dBm.

6.58.7.6. GROUP DELAY

         6.58.7.6.1. Group delay variation shall be less than 3 ns/MHz within
         the receive passband. Group delay stability shall be better than 12
         ns/6 months for levels between -10d6 to +5dB of the nominal level.

6.58.8. RFT UPLINK REQUIREMENTS FOR TT&C

6.58.8.1. APPLICABILITY

         6.58.8.1.1. The specifications in this section shall apply, over the
         operating temperature range, to the overall transmit uplink path
         defined from the IF interface ports of the GCE to the antenna feed
         input port.

6.58.8.2. BANDWIDTH AND GAIN

         6.58.8.2.1. The 10 dB bandwidth shall be greater than plus or minus 3
         MHz and less than plus or minus 25 MHz.

         6.58.8.2.2. The gain stability shall be better than plus or minus 0.5
         dB in any 3-hour period and better than plus or minus [2.5] dB overall.
         The variation of the gain across the passband shall be less than 1 dB.

6.58.8.3. FREQUENCY CONVERSION

         6.58.8.3.1. The frequency stability shall be better than plus or minus
         5 kHz. The frequency translation equipment shall not be synchronised to
         the SAN master frequency source. The system shall not invert the
         spectrum of the transmitted signal.

6.58.8.4. PHASE NOISE

         6.58.8.4.1. Phase noise spectral density shall not exceed the mask
         defined by the following breakpoints:

               -37 dBc/Hz           10 Hz offset

               -62 dBc/Hz           100 Hz offset

               -80 dBc/Hz           3000 Hz offset

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6.58.8.5. SPURIOUS AND HARMONIC SIGNALS

         6.58.8.5.1. Over the operating transmit power range, the level at the
         antenna transmit port of spurious signals shall be less than -43 dBW/4
         kHz and the radiated harmonics shall be at less than -50 dBc. This is
         measured from the feed horn to the IF interface. The maximum spurious
         level from the TT&C modulator shall be less than -80dBm.

6.58.8.6. GROUP DELAY

         6.58.8.6.1. Group delay variation shall be less than 3 nanoseconds/MHz
         within the transmit band. Group delay stability shall be better than 12
         nanoseconds/6 months over the transmit power range.

6.59. PCS REQUIREMENTS

6.59.1. GENERAL PCS REQUIREMENTS

         6.59.1.1. Each SAN of the IGF shall include a PCS subsystem.

         6.59.1.2. The detailed command formats and protocols to be exchanged
         between the ICO Ground Network and the ICO satellites shall be as
         specified in the Payload Spacecraft-Ground Interface Control Document.

         6.59.1.3. The PCS subsystem shall interface with primary and backup NMC
         for the purpose of exchanging data.

         6.59.1.4. Where exchange of data with NMC is specified in the following
         sections, it shall be interpreted as meaning exchange of data with
         either or both the primary and the backup NMC.

         6.59.1.5. The PCS subsystem shall interface with the HPN subsystem for
         receiving real-time command information. This information is
         transferred to the PCS on an HPN frame basis (nominally 20 secs) and
         contains a schedule of the control commands that are to be transmitted
         by the PCS. For each control command, the desired beam and frequency
         within the beam to be selected are specified.

         6.59.1.6. The PCS subsystem shall interface to the reference clock and
         system timing subsystem of the SBS to receive a 10 MHz reference clock
         and a GPS based time reference (absolute time code, and 1 pulse per
         second signal). In addition, a time varying delay to the satellite
         information with an accuracy of [5 microseconds] for each visible
         satellite shall be provided to the PCS.

6.59.2. SECTION NOT USED

6.59.3. PCS SUBSYSTEM CONTROL FUNCTIONS

         6.59.3.1. The PCS subsystem shall translate channelisation plans for
         the communications and HPN transponder into satellite payload control
         commands.

         6.59.3.2. The PCS subsystem shall transmit payload control commands to
         the ICO satellites such that they are available for use according to
         the channelisation plans.

         6.59.3.3. The PCS subsystem shall send the payload status information
         to the NMC.

6.59.4. SATELLITE ACCESS

         6.59.4.1. The PCS subsystems at all SANs shall be co-ordinated to
         ensure that only one PCS subsystem can access a particular satellite
         configuration channel at a given time.

6.59.5. PAYLOAD AND GROUND SYSTEM SYNCHRONISATION

         6.59.5.1. The IGF shall adjust the time tag of the stored command
         according to the difference between the satellite clock and the
         reference system time provided by the SCC.

         6.59.5.2. The PCS subsystem shall start transmission of the PCS
         commands within 1 second of the time specified by the SRMC.

         6.59.5.3. The PCS subsystem shall generate an alarm when the commands
         have not been successfully received by the satellite within the
         duration specified by the SRMC.

6.59.6. PAYLOAD SRMS TELEMETRY PROCESSING, FILTERING AND ARCHIVING

         6.59.6.1. The PCS subsystems shall provide the satellite SRMS telemetry
         data (ST) associated with the communications payload functions of each
         satellite to the NMC.

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6.59.7. SECTION NOT USED

6.59.8. PAYLOAD STATUS

         6.59.8.1. The PCS subsystem shall validate that stored commands
         transferred to each satellite have been successfully received.

         6.59.8.2. The PCS subsystem shall resend any stored commands that have
         not been successfully received an NMC configurable number of times.

         6.59.8.3. Any deviations from the planned and actual payload
         configuration shall be made known to the NMC within [10] Seconds.

         6.59.8.4. The IGF shall ensure that an incompatibly configured payload
         alarm is made known to the sub-satellite network and to the SANs
         sharing satellites with overlapping footprints within [20] Seconds.

         6.59.8.5. The PCS subsystem shall transfer information on the satellite
         S-band and C-band transmit power value to the NMC at a configurable
         interval from 2 to 20 seconds initial value 5 seconds.

6.59.9. PAYLOAD CONFIGURATION

6.59.9.1. COMMUNICATIONS TRANSPONDER CONFIGURATION

6.59.9.1.1. GENERAL

         6.59.9.1.1.1. The PCS subsystem shall configure the communications
         transponder using stored commands.

         6.59.9.1.1.2. The PCS shall accept payload commands from the NMC.

6.59.9.1.2. STORED COMMUNICATIONS TRANSPONDER COMMANDS

         6.59.9.1.2.1. The PCS subsystem shall configure and maintain the
         satellite communications transponder to implement the satellite
         channelisation plans output from the Channelisation Planning Function
         (including configuration of the mapping of feeder to Mobile link, and
         filter gain in each beam) of the NMC.

6.59.9.2. HPN TRANSPONDER CONFIGURATION AND UTILISATION

6.59.9.2.1. GENERAL

         6.59.9.2.1.1. The PCS subsystem shall configure the valid HPN index
         table on each satellite using a combination of stored commands to
         update index table entries and real-time commands for index table
         swapping commands.

         6.59.9.2.1.2. The PCS shall accept payload commands from the NMC.

         6.59.9.2.1.3. The PCS subsystem shall send the appropriate real-time
         commands synchronously to the satellite to permit HPN message
         transmission and index table selection.

6.59.9.2.2. HPN TRANSPONDER CONFIGURATION AND CO-ORDINATION

         6.59.9.2.2.1. The SRMC shall plan, generate and send to the NMS the HPN
         channelisation plans (HPN BFG triplet tables) for the constellation
         consistent with continuous availability of the HPN transponder
         capacity.

         6.59.9.2.2.2. The PCS shall implement the HPN channelisation plan
         provided by the NMC.

         6.59.9.2.2.3. The HPN subsystem shall indicate to the PCS, the beam
         number and frequency associated with each HPN message being
         transmitted. The PCS shall map this information to the appropriate
         entry in the active BFG table.

6.59.9.2.3. STORED PAYLOAD COMMANDS

         6.59.9.2.3.1. The PCS shall configure the HPN index table entries via
         stored payload commands uploaded to the satellites on the SRMS Command
         Channel (SC) according to the HPN channelisation plan.

         6.59.9.2.3.2. The PCS shall select the appropriate backup HPN index
         table to be the standby index table according to the HPN channelisation
         plan.

         6.59.9.2.3.3. The PCS shall be able to modify standby and backup HPN
         channelisation plans when required by the NMC via the SC channel.

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6.59.9.2.4. REAL-TIME PAYLOAD COMMANDS FOR CONFIGURATION AND UTILISATION

         6.59.9.2.4.1. The HPN subsystem and PCS subsystem shall transmit
         messages (HPN) and index table selection/swapping commands (PCS)
         respectively ensuring that consistent index tables become available
         with no loss in HPN transponder capacity.

         6.59.9.2.4.2. The IGF shall permit the HPN transponder to be accessed
         on a per-burst basis from any SAN in view of the satellite.

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7. NETWORK MANAGEMENT SYSTEM

7.1. GENERAL REQUIREMENTS

7.1.1. REQUIREMENTS FOR NEW ELEMENTS

         7.1.1.1. Section 7.1 covers general functionality to. be located at the
         SAN-OSS and NMC. The functionality provided through the individual OAMs
         is described in Section 7.8. However, in the case of the development of
         new elements it is recommended that the requirements of this Section be
         taken into account.

7.1.2. NETWORK MANAGEMENT

         7.1.2.1. It is a general requirement that the Network Management System
         complies to GSM-12 Standards and refers to TMN Standards, whenever
         possible.

         7.1.2.2. The NMS consists of:

                  1. Network Management Centre (NMC).

                  2. Backup NMC.

                  3. SAN Operations Support System (SAN-OSS) at each SAN,
                     including the Operational Test and Development Facility
                     (OT&DF) (refer to Section 12)

                  4. Network Elements Operation and Maintenance (OAM).

         7.1.2.3. The NMS shall provide the following management services for
         the ICO network:

                  1. Configuration Management.

                  2. System Administration.

                  3. Fault Management.

                  4. Performance Management.

                  5. Security Management.

                  6. Accounting Management.

                  7. Trouble Ticket Management.

         7.1.2.4. The NMS shall provide management services for the following:

                  1. The NMC equipment and Back-up NMC (namely the main NMS
                     platform including the Link-OS)

                  2. Satellite Resource Management Centre (SRMC) and Back-up
                     SRMC.

                  3. Node Operation System (Node-OS):

                           a. Mobile Satellite Switching Centre.

                           b. Visitor Location Register.

                           c. IGF Messaging Platform. (OPTION)

                           d. Home Location Register.

                           e. Authentication Centre/Equipment Identification
                              Register.

                           f. Interworking Location Register. (OPTION)

                           g. Signalling System 7.

                           h. Intelligent Networks (F/R)

                  4. Satellite Access Node-OSS.

                  5. Administration Data Centre.

                  6. High Power Notification.

                  7. Payload Command System.

                  8. Radio Frequency Terminal (this includes the shared
                     Telemetry, Tracking and Control equipment).

                  9. Satellite Base Station.

                           a. Channel Unit.

                           b. Channel Manager.

                           c. Real Time Resource Manager.

                           d. GPS Receiver equipment.

                           e. Ethernet switch.

                  10. Terrestrial Network Manager.

                  11. Digital Communication Network.

                  12. Forced Call Routing. (F/R)

         7.1.2.5. The NMS shall support multiple MMIs which can be distributed
         in multiple locations.

7.1.2.6. The NMS shall be able to retrieve events, alarms and configuration
         reports from network elements.

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         7.1.2.7. The NMS shall provide a "reach through" capability e.g. via
         X-Windows, to allow management of network elements and/or element
         management systems remotely.

         7.1.2.8. The NMS shall use a client-server architecture.

         7.1.2.9. The operating systems and protocols used for the NMS shall
         have the following features:

                  1. controlled by an industry standard.

                  2. commercially available with product support.

                  3. consistent with open systems concepts.

                  4. multiprocessing.

                  5. compatible between the client and server.

         7.1.2.10. The DBMS and all third party application software used for
         the NMS servers shall be commercially available with product support.

         7.1.2.11. The programming languages used to develop the NMS application
         code shall have the following features:

                  1. controlled by an industry standard.

                  2. commercially available with product support.

                  3. support for major hardware and software platforms.

                  4. support for object oriented programming.

                  5. supported with development and management tools which are
                     commercially available with product support

         7.1.2.12. The NMS monitoring capability shall support:

                  1. event-driven philosophy

                  2. polling

                  3. event-driven and polling

                  4. the monitoring strategy shall be user selectable, where
                     possible.

         7.1.2.13. The NMS architecture shall be such that future network
         elements can be harmonised for network management purposes through the
         application of standardised and recognised interfaces. For example,
         this requirement is needed to cater to two types of system
         interconnections:

                  1. Interconnection with other network carrier management
                     systems for the exchange of network management data.

                  2. Interconnection with new systems operated from the NMC.
                     Items which fit into this category are the Legal
                     Interception Management System, Fraud Management System,
                     Key Management System and future monitoring systems.

         7.1.2.14. Network Management related Operator actions shall be logged.

         7.1.2.15. (F/R) The NMS shall be designed to support:

                  1. electronic documentation system;

                  2. the EDS shall provide system diagrams, maps, etc.;

                  3. on-line fault recovering procedure;

                  EDS shall be complemented by hard-copies of all documents.
                  Relevant user manuals, operator instructions, etc. shall be
                  provided in electronic format to allow integration into a
                  general EDS (e.g.: hypertext application).

         7.1.2.16. The NMS shall encompass a facility to enable offsite
         personnel and sites to be contacted and provided with relevant
         information (e.g. trouble tickets, maintenance instructions, etc.). It
         shall be possible to:

                  1. support an independent e-mail/paging/alerting local and
                     geographical network provided by ICO and NEC;

                  2. the e-mail/paging/alerting network shall be compliant with
                     industry standards for transport, encryption, security,
                     etc.;

                  3. the e-mail/paging/alerting network shall connect all ICO
                     specified nodes;

                  4. failure of e-mail/paging/alerting network shall not impact
                     any ICO node (e.g.: must be an independent LAN)

         7.1.2.17. The management of the ICO system is accomplished via the
         Network Management System (NMS) - elements of which exist at all ICO
         subsystems.

         7.1.2.18. The NMS is a hierarchical system with lower levels of
         management being performed by the elemental OAM.

         7.1.2.19. The information from the elemental OAMs is
         integrated/mediated where possible (e.g. the SAN-OSS) prior to being
         transported to the highest level in the NMS hierarchy - the NMC. The
         NMC also manages the communications, signalling and administrative
         links between the ICO elements.

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         7.1.2.20. The NMC performs non real time functions of alarm and fault
         management, performance management, configuration management, security
         management and to a lesser degree accounting management.

         7.1.2.21. The NMC is used to maximise ICO reliability, effectiveness,
         and responsiveness.

         7.1.2.22. The NMC provides services to the upper layers of TMN - the
         Business and Service Management layers.

         7.1.2.23. The NMC provides one major specific configuration management
         function via the Satellite Resource Management Centre (SRMC) for the
         management of ICO resources at the SANS and on the Satellite.

         7.1.2.24. The NMC incorporates SRMC elements responsible for the
         satellite channelisation.

         7.1.2.25. The NMC incorporates tools enabling operators to reconfigure
         and manage and fine tune the ICO system.

         7.1.2.26. The NMC monitors and responds to network traffic changes,
         alarms, faults etc.

         7.1.2.27. There are two NMC - the Primary NMC and a back-up NMC. NM
         data from the Network elements is transported concurrently to both NMCs
         (i.e. full functionality at both centres) the only exception being that
         the databases at the B-NMC may not be in full real-time synchronism
         with the Primary NMC databases.

         7.1.2.28. There may be a direct connection between the NMC and the
         B-NMC

         7.1.2.29. In the event of Primary NMC failure all NM operations
         (including SRMC/SRMS) are switched over to the back-up. The switchover
         is via operator command. The delay associated with the switchover is
         not to exceed [10] minutes.

         7.1.2.30. (F/R) The NMC also contains the management system for the
         ICONET (the Network Traffic Manager)

         7.1.2.31. Full NM functionality at the NMC is accessible via user
         friendly graphical user interfaces (GUIs)

         7.1.2.32. The NMC supports Application Programmable Interfaces (API's)
         which allows for system expansion.

         7.1.2.33. Legal Interception and Subscriber tracing capability is also
         provided at the NMC/B-NMC via the MSSC.

         7.1.2.34. Fraud Control is provided at the NMC/B-NMC via the MSSC.

         7.1.2.35. The NMC supports the NM requirements and interfaces to the
         SCC and the ADC.

7.1.3. DATA ARCHIVING

         7.1.3.1. The NMS shall support archiving of the following data:

                  1. System performance statistics.

                  2. Event logs.

                  3. Alarm history.

                  4. Trouble ticket data.

                  5. Management Reports.

         7.1.3.2. The NMS shall provide the capability for managing long term
         archiving of data. The long-term archive shall hold a minimum of 90
         days of data storage.

         7.1.3.3. The NMS shall provide the capability to access archived data
         locally and remotely.

         7.1.3.4. Each site shall be able to maintain archiving procedures in
         isolation of other sites.

7.1.4. APPLICATION PROGRAMMING INTERFACE

         7.1.4.1. The NMS shall supply libraries of open Application Programming
         Interfaces (APIs) for interfacing standard application programs (e.g.
         maintenance database, report generator, etc.).

7.1.5. REPORT MECHANISMS

         7.1.5.1. The NMS shall provide reports on the following:

                  1. Performance data.

                  2. Current status data.

                  3. Diagnostic Tests.

                  4. Trouble Ticket reports.

                  5. Alarm data.

                  6. Event log data.

         7.1.5.2. The NMS shall be able to produce custom reports with differing
         levels of detail suitable for management, technical and operational
         staff.

         7.1.5.3. The NMS shall be able to produce reports automatically or on
         an ad hoc basis.

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         7.1.5.4. The NMS shall be able to provide reports in the following
         manner:

                  1. MMI window.

                  2. Printer.

                  3. Disk File.

         7.1.5.5. It shall be possible to export the generated report file from
         the NMS platform into a universal PC based environment.

7.1.6. SOFTWARE UPGRADES

         7.1.6.1. The NMS shall be able to support the download of software to
         network elements which have software upgrade functionality. This
         capability can be through the network element's OAM.

         7.1.6.2. The NMS shall provide the ability to store the following
         software:

                  1. Current executable software.

                  2. Replacement executable software.

                  3. Fallback executable software.

         7.1.6.3. The NMS shall provide the ability to store the following
         information about each piece of software:

                  1. version number.

                  2. date installed.

                  3. description.

                  4. developer and contact number.

         7.1.6.4. The NMS shall provide the ability to perform a consistency
         check of software to check that the version number of the software in
         the network elements across SANs are consistent and in accordance with
         the overall NMS master plan (Software Inventory).

         7.1.6.5. The NMS shall provide the ability to command a network element
         to change over to the replaceable executable software.

7.1.7. NETWORK MANAGEMENT CENTRE AND SAN-OSS

7.1.7.1. NETWORK MANAGEMENT CENTRE

         7.1.7.1.1. The NMC shall initially be the centralised command centre of
         the NMS. However, the architecture proposed shall not preclude the
         ability to distribute management services outwards into the network at
         a later date.

         7.1.7.1.2. The NMC shall provide a global view of the network status.

         7.1.7.1.3. The NMC shall be able to perform the functions of a SAN-OSS
         for a selected SAN.

         7.1.7.1.4. There shall be a backup NMC provided, that is functionally
         identical with the NMC.

         7.1.7.1.5. The backup NMC shall be kept synchronous with the primary
         NMC to allow manual switch-overs when authorised.

         7.1.7.1.6. The backup NMC shall be able to be used for routine
         monitoring operations in normal operational circumstances (i.e. when
         the main NMC is fully available).

         7.1.7.1.7. During failures between Management Levels, each level shall
         store messages for restoration purposes.

7.1.7.2. SAN-OSS

         7.1.7.2.1. Each SAN shall include a SAN Management System.

         7.1.7.2.2. The SAN Management System shall comprise of:

                  1. Element Management System (referred to as the SAN-OSS) for
                     the network management of all the local elements resident
                     at the SAN site.

                  2. SAN Satellite Resource Management System (SRMS) for the
                     distribution and co ordination of satellite resource data.

         7.1.7.2.3. The SAN-OSS shall form a part of the overall network
         management capability required to monitor and control the entire
         ICONET. As such it shall act as an agent and mediation function to the
         higher level NMC network management system and hence act as a gateway
         between the NMC and the site elements.

         7.1.7.2.4. The SAN-OSS shall be responsible as far as is possible for
         the management of the network elements resident at the site. The
         SAN-OSS shall also include provisions to allow for future expandability
         to cater for additional network elements which may prove necessary.

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         7.1.7.2.5. The SAN-OSS shall have the capability to collect, filter
         alarms, action and/or distribute relevant network management
         information to the NMC and the sub-system OAMs. Some of these tasks
         shall occur on a real-time basis.

         7.1.7.2.6. The SAN-OSS shall conform to internationally recognised
         network management standards and adopt industry recognised network
         management protocol(s) where possible. Interfacing to the NMC shall
         adopt an internationally recognised network management protocol.

         7.1.7.2.7. The SAN-OSS shall incorporate provisions for fault,
         configuration, performance and security management, compliant with
         industry recognised practises.

         7.1.7.2.8. In addition, it shall be possible for all the SAN-OSS to
         continually operate the SAN NEs in the event of an NMC failure.

         7.1.7.2.9. It shall be possible to operate the SAN-OSS from the NMC
         site.

7.1.7.3. SAN SRMS

         7.1.7.3.1. The SAN SRMS shall be responsible for providing the
         satellite resource data such as the BTFP and the satellite
         channelisation plan for the other relevant sub-systems within the SAN
         in an appropriate format. The SAN SRMS shall receive the original of
         such satellite resource data from the NMC in advance and shall derive
         detailed data from the received information.

         7.1.7.3.2. Fault, performance, configuration and security management of
         the SAN SRMS shall be achieved via the SAN-OSS.

7.1.8. MAN MACHINE INTERFACE REQUIREMENTS

7.1.8.1. GENERAL

         7.1.8.1.1. The requirements of Section 7.1.8 are specific to the MMI at
         the NMC and SAN-OSS. However, they should also be considered at the
         network element level, where possible and practical (i.e. for new
         developments).

         7.1.8.1.2. For the purposes of network management then the NMS MMI
         shall be taken to encompass the totality of the MMI features available
         at each level in the system hierarchy (e.g. NMC LINK-OS, NODE-OS,
         SAN-OSS and individual NE OAMs). Hence, as you move down from the top
         level MMI to the network elements then additional functionality and
         options will be uncovered, depending upon the set user privileges.

         7.1.8.1.3. Within the MMI it shall be possible to distinguish between
         different user types in order to dictate the MMI functionality that is
         to be made available. For example, an Operator within the NMC may be
         allocated a more reduced version of the SRMC MMI focused towards
         monitoring and control whereas the network planner will be given all
         the engineering rights to change the planning process or analyse the
         data.

         7.1.8.1.4. All MMIs shall provide system administration functions for
         the logical and/or physical area being managed.

         7.1.8.1.5. MMI code developed shall conform to recognised graphical
         user interface industry standards (e.g. Motif/Xl 1, Windows, etc.). In
         general, standard windowing constructs such as multiple windows,
         tiling, icons, pop-ups, alerts, etc. shall be encompassed.

         7.1.8.1.6. The MMI shall encompass the WYSIWYG (What You See Is What
         You Get) approach and employ the point-and-click approach. However, the
         MMI shall be [fully] controllable from the keyboard to guard against a
         failure in the pointing device.

         7.1.8.1.7. Within the NMC it shall be possible to access the different
         systems required to fulfil the normal network management operations
         (e.g. SAN-OSS, NODE-OS, SRMC etc.) from a single workstation and
         through a single, uniform top level MMI. This MMI level shall be
         referred to as the "Overall NMC MMI".

         7.1.8.1.8. The Overall NMC MMI shall distinguish between two key
         elements:

                  1. The network status displays which shall present the real
                     time status of the network.

                  2. The controller workstation which shall activate various
                     applications and be used for operator commanding.

         7.1.8.1.9. From the Overall NMC MMI the Controller shall be able to
         activate the following MMI levels:

                  1. LINK-OSS

                  2. SRMC

                  3. NODE-OSS

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         7.1.8.1.10. The NMC MMI shall be produced in liaison with ICO during
         the requirements and design phases.

         7.1.8.1.11. An MMI Style Guide shall be developed and agreed with ICO.
         In addition, an NMC MMI Document shall be produced to define the actual
         screen layouts.

         7.1.8.1.12. All MMIs shall support operator features such as on-line
         help information, system administration functions, display settings,
         etc.

         7.1.8.1.13. The NMS MMI shall support a standard Graphical User
         Interface (GUI) such as X-Windows, Motif or Windows.

         7.1.8.1.14. The NMS MMI shall follow the concepts of the GUI style
         guidelines and in line with ICO Operational concepts. This style guide
         shall be agreed with ICO.

         7.1.8.1.15. The NMS MMI shall support multiple active windows.

         7.1.8.1.16. The NMS MMI shall supply on-line help for system functions.

         7.1.8.1.17. It shall be possible for authorised operators to modify the
         on-line help messages.

         7.1.8.1.18. The NMS MMI shall support user specified window manager
         preferences.

         7.1.8.1.19. English shall be the user interface language for the NMS
         MMI.

         7.1.8.1.20. The NMS MMI shall allow for the user configuration of
         window parameters.

         7.1.8.1.21. The NMS MMI shall provide graphical views of the network.
         These views shall be hierarchically linked to enable movement from one
         view to another.

         7.1.8.1.22. The NMS MMI top level view shall have a world map which can
         display a near realtime representation of the following user selected
         information:

                  1. location and alarm status of the NMC sites.

                  2. location and alarm status of the SAN sites, ADC, SCC sites
                     and [OT&DF]. This information may be transported by means
                     other than by the TNM or DCN.

                  3. intersite links and their status.

         7.1.8.1.23. The NMS MMI shall support an Operator configuration
         facility during network expansion for the addition of new Network
         Elements.

         7.1.8.1.24. A change in the reporting status of a network element (e.g.
         normal to alarm condition) shall be visually communicated by changing
         the colour of the representative screen object, this colour will align
         with the current severity of the condition.

         7.1.8.1.25. The NMS MMI shall provide a graphical legend for map
         symbols and icons.

         7.1.8.1.26. The NMS MMI shall provide an alarm viewer for viewing
         current alarms and alarm history.

         7.1.8.1.27. The NMS MMI alarm viewer shall allow for displaying
         different alarm severities.

         7.1.8.1.28. The NMS MMI shall provide a current alarm summary window
         which provides a count of alarms for each alarm severity.

         7.1.8.1.29. The NMS MMI shall provide an alarm description lookup to
         provide additional information concerning each alarm and advice on
         recovery action

         7.1.8.1.30. The NMS MMI shall be designed with consideration for
         Operators' Health, Safety and comfort

         7.1.8.1.31. It shall be possible to login to any SAN MMI system from
         the NMC.

         7.1.8.1.32. The MMI shall include features to enable an authorised user
         to efficiently set-up, halt and debug the system operation.

7.1.8.2. LINK-OS MMI

         7.1.8.2.1. The style of the LINK-OS MMI shall conform with that of the
         higher level Overall NMC MMI.

         7.1.8.2.2. The LINK-OS MMI shall be used to consolidate the operation
         and maintenance across all the SAN sites. Hence, the LINK-OSS system is
         fed from the individual SAN-OSSs.

         7.1.8.2.3. The LINK-OS shall be primarily operated by "front line"
         operators in the NMC. Hence, ease of use, simple operation activation
         and good human computer interaction shall be key features.

         7.1.8.2.4. The LINK-OS MMI shall support filtered monitoring and
         alarming concerning the attached network elements.

         7.1.8.2.5. The LINK-OS MMI shall enable control commands to be issued
         to the attached network elements in a consistent manner.

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7.1.8.3. SRMC MMI

         7.1.8.3.1. The SRMC MMI shall be designed bearing in mind two
         operational roles or user categories namely:

                  1. Operator - Responsible for the monitoring and management of
                     the physical hardware and software elements making up the
                     SRMC and for the distribution of the various resource plans
                     produced. This task is on-line in nature.

                  2. Network Engineer - Responsible for the detailed planning
                     and analysis of spectrum and resource management. This task
                     is off-line in nature.

         7.1.8.3.2. Bearing in mind the above user roles, the MMI shall:

                  1. be designed so as to maximise the ease of use and operation
                     of the system bearing in mind the above roles.

                  2. Permit error tracing, error logging and error recovery.

                  3. Permit access to and the configuration of all SRMC
                     functionality.

                  4. Display information in a concise and informative manner.

7.1.8.4. NODE-OS MMI

         7.1.8.4.1. The NODE-OS shall be used within the NMC to manage the
         switching network and the mobility management databases. Hence, two
         levels of operation are envisioned:

                  1. Controller - Front line operator responsible for the real
                     time monitoring and controlling of the network.

                  2. Switch Engineer - Responsible for the network planning,
                     analysis and investigations.

         7.1.8.4.2. The details presented shall be designed bearing in mind
         these two user groups.

         7.1.8.4.3. The NODE-OSS MMI shall:

                  1. Alert the operator when alarm conditions occur.

                  2. Give the operator access to further information in order
                     that operational decisions can be taken (e.g. network
                     re-configurations).

                  3. Provide a facility to enable actions or commands to be
                     issued.

7.1.9. BACKUP AND RESTORATION

         7.1.9.1. The NMS shall support the following automatic data backup
         procedures:

                  1. Full backups of data and system software.

                  2. Incremental backups between the full backups of data
                     changed since the last backup procedure where applicable.

         7.1.9.2. The timing of automatic data backup procedure initiation shall
         be configurable by the NMS operators.

         7.1.9.3. All backups and archives shall be transferred to media located
         at the same site as the system component containing the data. However,
         the architecture should not exclude the provision of eventual off -site
         storage for added security.

         7.1.9.4. The NMS shall provide initiation commands for restoration
         functionality for recovery of data from full and where provided
         incremental backups.

         7.1.9.5. The NMS shall allow restoration of backup data from storage
         media at the local and remote sites.

         7.1.9.6. Each site shall be able to maintain backup procedures in
         isolation of other sites.

7.1.10. RELIABILITY AND AVAILABILITY

         7.1.10.1. Each SAN-OSS shall have an availability of 99.99%.

         7.1.10.2. Each NMC shall have an availability of 99.99%.

         7.1.10.3. The MTTR shall be taken as 4 hours when on site spares are
         offered; this assumes that qualified personnel are already on site.

         7.1.10.4. The MTTR shall be taken as 168 hours when no on site spares
         are offered.

         7.1.10.5. From the initiation of take-over, the backup NMC device at
         the Backup NMC site shall assume the role of the NMC in 10 minutes or
         less.

7.1.11. PERFORMANCE

7.1.11.1. GENERAL

         7.1.11.1.1. The NMC NMS/SAN-OSS computing architecture shall be
         designed to allow for expansion of processing capabilities into the
         future.

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         7.1.11.1.2. The NMC NMS/SAN-OSS system performance shall not be
         compromised by the addition of new SANs and new satellites in
         accordance with the ICO Traffic Model.

         7.1.11.1.3. A warning facility shall be available to inform the
         operator when spare disk capacity is low. It shall be possible to set
         the threshold for this type of reporting (e.g. disk 75% full).

7.1.11.2. SAN-OSS PERFORMANCE

         7.1.11.2.1. The transaction processing capability of the SAN-OSS is
         dependent upon the average event rates of the network elements. These
         rates shall be confirmed at PDR. However, at this point the SAN-OSS
         shall initially have a minimal processing capability of 2 events/second
         under normal working conditions.

         7.1.11.2.2. The SAN-OSS shall have the capability to queue excess event
         messages (awaiting processing) for a minimum period of 30 minutes,
         under normal working conditions.

         7.1.11.2.3. The time taken to report a detected tagged network element
         alarm (that affects network operations) to the network display at the
         SAN-OSS shall not exceed 20 seconds

         7.1.11.2.4. A minimum of 30 days of event log information shall be
         stored [on-line] at the SAN-OSS.

         7.1.11.2.5. The SAN-OSS shall be able to serve a minimum of 8
         concurrent operator users.

         7.1.11.2.6. The system response time to the SAN operator on any
         operator request shall be less than 10 seconds excluding the following:

                  1. network element execution time;

                  2. intersite data transfer time;

                  3. request for start-up/shutdown of devices;

                  4. requests that require retrieval and/or processing of large
                  amounts of data.

         7.1.11.2.7. In the case of an exception then a response shall be
         provided back to the operator within 5 seconds with confirmation that
         the request has been received and is being actioned.

         7.1.11.2.8. SAN-OSS shutdown/start-up under normal working conditions
         shall not exceed 10 minutes.

         7.1.11.2.9. The SAN-OSS shall be able to run and store data in
         isolation from the NMC/BNMC for up to 48 hours.

7.1.11.3. NMC NMS PERFORMANCE

         7.1.11.3.1. The NODE-OS shall have the capability to process up to 1
         event/second under normal working conditions.

         7.1.11.3.2. The NODE-OS shall have the capability to process 5000
         alarms per day on average.

         7.1.11.3.3. The NMC NMS (Link-OS) shall have the capability of
         processing a minimum of [15] events/second under normal working
         conditions.

         7.1.11.3.4. The NMC NMS shall have a capability to queue excess event
         messages (awaiting processing) for a minimum of 30 minutes under normal
         working conditions.

         7.1.11.3.5. The time taken to report a detected tagged network element
         alarm (that affects network operations) to the network display at the
         NMC shall not exceed 30 seconds under normal conditions.

         7.1.11.3.6. A minimum of 90 days of event log information shall be
         stored [on-line] at the NMC.

         7.1.11.3.7. The NMC NMS shall be able to serve a minimum of 8
         concurrent operator users.

         7.1.11.3.8. The system response time to the NMC operator on any
         operator request shall be less than 10 seconds excluding the following:

                  1. network element execution time;

                  2. intersite data transfer time;

                  3. request for shutdown/start-up of devices;

                  4. requests that require retrieval and/or processing of large
                     amounts of data.

         7.1.11.3.9. In the case of an exception then a response shall be
         provided back to the operator within 5 seconds with confirmation that
         the request has been received and is being actioned.

         7.1.11.3.10. NMC-NMS shutdown/start-up shall not exceed 10 minutes
         under normal working conditions.

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7.1.12. SIZING

         7.1.12.1. The NMS shall provide the required functions and be sized for
         all equipment and traffic capacity of the initial installation, and
         shall provide a capability for growth as detailed in the Sizing
         Requirements (Section 9.3).

7.1.13. EXPANDABILITY

         7.1.13.1. The NMC and SAN-OSS shall support the addition of network
         elements for network expansion as specified in 6.23 and 7.8.

7.1.14. OPERATIONAL TESTING CAPABILITIES

         7.1.14.1. The NMS shall have the capability and necessary facilities
         and tools to undertake diagnostic tests on the detection of a failure
         or potential problem. [This shall encompass the ability to set up
         end-to-end test calls (as specified in ICO services requirements)
         between two or more parties and monitoring/logging all traces through
         the various subsystems.

         7.1.14.2. This feature shall use the logging data to provide an
         integrated view of the call trace and validate the functioning of the
         ICO System (a UT on the S-Band capability at the SAN shall be capable
         of being used for the test call). For testing purposes it shall be
         possible to initiate a handover from the NMS.]

7.1.15. NMC AND BACK-UP NMC PLATFORM

         7.1.15.1. Systems intended for the NMC (e.g. LINK-OS, SRMC, NODE-OS)
         shall adopt an open systems architecture in order to ensure later
         development, upgrades and reconfigurations can be encompassed with
         minimal impact.

         7.1.15.2. The NMC hardware shall employ a distributed client-server
         architecture, such that additional clients can be added at a later
         date. It shall further be possible to add additional workstations to
         the system to cater for additional operators (minimum of 10) without
         any redevelopment work.

         7.1.15.3. Hardware sizing and performance rating shall be established
         taking into account the need for future expandability which are
         reflected in the ICO 10 year Traffic Model. This shall encompass the
         processors, disk system, ports, workstations and data networks.

         7.1.15.4. Maximum use shall be made of commercial off-the-shelf
         software provided that:

                  1. The product fits within the network management approach
                     being adopted and is fit for purpose.

                  2. The product is suitably documented

                  3. The product is sufficiently supported.

         7.1.15.5. Should non-proprietary products be adopted then this shall
         require ICO approval before being used.

         7.1.15.6. When new software is to be developed then this shall adopt an
         object oriented methodology whenever possible. Tools and aids (e.g.
         programming languages, developer tool kits, etc.) shall be recognised
         and well supported.

7.2. CONFIGURATION MANAGEMENT

7.2.1. REQUIREMENTS FOR NEW ELEMENTS

         7.2.1.1. Section 7.2 covers general functionality to be located at the
         SAN-OSS and NMC. The functionality provided through the individual OAMs
         is described in Section 7.8. However, in the case of the development of
         new elements it is recommended that the requirements of this Section be
         taken into account.

7.2.2. GENERAL

         7.2.2.1. This section covers general configuration management
         functionality to be located at the SAN-OSS and NMC.

         7.2.2.2. An event, as referenced in this section, is defined to be a
         message issued by a network element to the NMS as a result of a state
         change or action within the element. Events are used by the NMS as a
         method of obtaining real-time information from the network which
         supplements the periodic status messages. Alarms are also sent as a
         result of state changes but differ in that they:

                  1. result from erroneous state changes.

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                  2. remain active until the corresponding clear alarm is issued
                     from the network element.

         7.2.2.3. Configuration data maybe divided into long and short term
         changes. The long term configurable items maybe file based and are
         defined at the time of equipment installation or during the expansion
         of existing facilities. This data is classified as dimensioning data.
         Shorter term configurable items have fields associated with them on MMI
         views which allows the operator to make changes to the system while it
         is operational. The requirements in this specification refer to non
         dimensioning configuration data unless dimensioning data has been
         specifically referred to.

         7.2.2.4. The status which is returned from network elements does not
         represent state changes as is the case with events and alarms, but
         provides the current state of the network element in terms of all of
         the parameters associated with that network element. This may include
         parameters such as mode or frequency.

         7.2.2.5. The NMS shall provide facilities for the operator to modify
         NMS dimensioning and non-dimensioning data.

         7.2.2.6. All Operator actions for Configuration Management shall be
         logged.

         7.2.2.7. It shall be possible to initiate NMS configuration management
         processes from both the NMC and SAN-OSS.

         7.2.2.8. The NMS shall use schematic representations of the ICO network
         to graphically reflect the current state of the network and network
         elements.

         7.2.2.9. The NMS shall provide views of the network at a number of
         levels, including:

                  1. an overall view of the network showing network element
                     interconnections.

                  2. views of specific network elements and connections.

         7.2.2.10. The state of network elements shall be determined from the
         following information:

                  1. alarm state changes from network elements.

                  2. status information from network elements.

                  3. event messages from network elements.

                  4. information gathered from periodic polling of network
                     elements.

         7.2.2.11. The configurable data available to the NMS shall include:

                  1. NMS parameters such as alarm thresholds, reporting periods.

                  2. database maintenance functions.

                  3. operating parameters for each network element.

                  4. quality of service parameters.

         7.2.2.12. The status data available to the NMS shall include:

                  1. versions of network element software.

                  2. alarms.

                  3. events.

                  4. network status.

         7.2.2.13. The NMC shall support a scheduler to plan and co-ordinate
         long-term network changes.

         7.2.2.14. The NMC and SAN-OSS shall support scheduled configuration
         changes where the change is deferred to a selected time. The change
         process shall be as follows:

                  1. The NMC NMS shall centrally control the scheduling of
                     planned network configuration changes. Hence, the master
                     schedule shall be maintained and stored by the NMC.

                  2. It shall be possible to submit a change to the NMC in order
                     that it can be scheduled via electronic or manual means.

                  3. The NMC NMS shall notify in advance, the relevant SAN-OS of
                     planned scheduling changes which are applicable to that
                     site. A record of this distribution shall be maintained at
                     the NMC.

                  4. For each scheduled change, the following details shall be
                     logged at the NMC:

                           a. Date/time when scheduled change was issued.

                           b. Date/time when scheduled change is planned to take
                              place.

                           c. Description of the change

                           d. Network element(s) involved in the change

                           e. Name of the authoriser

                           f. Reason why a scheduled change cannot be performed

                           g. Date/time when change was performed

                           h. Confirmation/result of change

                           i. Name of operator or software function initiating
                              the change

                  5. The SAN-OS shall record receipt of the schedule
                     notification from the NMC.

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                  6. The SAN-OS shall be responsible for informing the NMC NMS
                     when scheduled changes cannot be satisfied within the time
                     scales set (i.e. due to equipment failure, higher priority
                     activities, etc.) such that re-scheduling can be
                     undertaken.

                  7. The SAN-OS shall be responsible for instructing the
                     appropriate network element(s) to undertake the change
                     (this is likely to be a manual process).

                  8. The network element should record each configuration change
                     made as per reqt. 7.2.2.19.

                  9. The SAN-OS shall have the capability to request
                     configuration change event reports from the network
                     elements.

                  10. The SAN-OS shall be responsible for informing the NMC NMS
                     of the outcome of each scheduled change.

         7.2.2.15. The NMS shall perform validation checks on configuration
         changes before making the change.

         7.2.2.16. The NMS (pre/post) validation of configuration requests shall
         include receiving information on:

                  1. security checks.

                  2. parameter range checks.

                  3. checks to determine if the state change is possible given
                     the current state of the network element being configured.

         7.2.2.17. The NMS shall handle any return status sent by the network
         element as a result of the configuration change.

         7.2.2.18. Each configuration change shall generate an event in the
         event log containing:

                  1. name of operator or software function initiating the
                     change.

                  2. name of authoriser

                  3. date and time of issuing the change.

                  4. date and time of actioning the change.

                  5. description of the change.

                  6. confirmation / result of change.

         7.2.2.19. The NMS shall allow the operator to examine configuration
         changes within the event log based on:

                  1. an interval of time.

                  2. a set of network element(s).

                  3. changes made by a specific operator.

         7.2.2.20. The NMS shall be able to assign priorities to each type of
         configuration change.

         7.2.2.21. The NMS shall allow additional installed, dimensioned and
         configured network elements to be added to the network without having
         to shutdown the system.

         7.2.2.22. The NMS shall provide a facility for maintaining time of day
         synchronism between network elements which require knowledge of system
         time of day.

7.3. FAULT MANAGEMENT

7.3.1. REQUIREMENTS FOR NEW ELEMENTS

         7.3.1.1. Section 7.3 covers general functionality to be located at the
         SAN-OSS and NMC. The functionality provided through the individual OAMs
         is described in Section 7.8. However, in the case of the development of
         new elements it is recommended that the requirements of this Section be
         taken into account.

7.3.2. GENERAL

         7.3.2.1. The NMS shall collect alarms generated by the network elements
         to determine device failures and/or service affecting conditions.

         7.3.2.2. The NMS shall be able to monitor and report miscellaneous
         alarm conditions at each site, such as temperature, humidity, building
         alarms.

         7.3.2.3. Alarms shall be categorised into four levels of severity;
         Critical, Major, Minor, Warning.

         7.3.2.4. The NMS shall be responsible for assigning alarm severities to
         alarms generated by network elements.

         7.3.2.5. Each alarm shall have the following states:

                  1. raised.

                  2. cleared.

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                  3. acknowledged by the operator.

         7.3.2.6. The NMS shall have a facility for acknowledging multiple
         alarms using a single operation.

         7.3.2.7. The following sets of alarms shall be highlighted to the
         operator:

                  1. new alarms which have been present in the system for a
                     period of time as specified by the operator.

                  2. alarms which have been acknowledged, but not been cleared
                     for a minimum period of time as specified by the operator.

         7.3.2.8. It shall be possible to bring alarms to the attention of the
         Operator via various means such as (flashing text / icons, audibly,
         etc.).

         7.3.2.9. It shall be possible for the NMS to automatically upgrade the
         severity of alarms (alarm escalation), depending on factors such as
         persistence. The operator shall also have the capability to manually
         mark alarms for escalation.

         7.3.2.10. All alarms shall contain the following information:

                  1. unique object alarm identifier.

                  2. date and time of when the alarm was
                     raised/cleared/acknowledged.

                  3. alarm description.

                  4. source of the alarm.

                  5. fault location details.

         7.3.2.11. All alarm state changes shall be logged to an alarm history
         database.

         7.3.2.12. The NMS shall allow the operator to examine the alarm
         database using search criteria such as:

                  1. range of times.

                  2. source of alarms.

                  3. specific alarm.

         7.3.2.13. To reduce the amount of traffic between sites the NMS shall
         allow the operator to specify alarm filters.

         7.3.2.14. The NMS shall provide a GUI style editor to allow the
         operator (with the necessary authorisation) to change:

                  1. alarm threshold definitions.

                  2. alarm filtering between sites.

                  3. alarm attentional and reporting attributes (e.g.
                     enable/disable beeping, switch on/off flashing,
                     enable/disable reporting to event log, enable/disable
                     reporting to printer/file, etc.).

7.3.3. ALARM ANALYSIS

         7.3.3.1. The NMS shall be able to determine the fault location based on
         alarms raised, the fault location information contained within each
         alarm and from the diagnostics test processes in place.

         7.3.3.2. Fault location shall isolate the fault to a replaceable unit.

         7.3.3.3. The identified unit shall be linked to a physical location.

         7.3.3.4. The NMS shall support the establishment of alarm thresholds
         whereby the operator can configure the system to generate a higher
         level alarm based on a number of specified lower level alarms.

         7.3.3.5. The NMS shall perform alarm correlation at the NMC and SAN-OSS
         to identify faults and service affecting conditions within the system.

         7.3.3.6. The result of the alarm analysis shall be any or all of the
         following:

                  1. an action to initiate automatic recovery.

                  2. an audible alert at a specified location.

                  3. an additional alarm which can initiate additional actions.

                  4. generation of a trouble ticket.

7.3.4. TROUBLE TICKET MANAGEMENT

         7.3.4.1. The NMS shall provide a facility for the operator to generate
         Trouble Tickets for detected faults or Customer / Operator complaints.

         7.3.4.2. Each trouble ticket shall be tracked by recording details such
         as:

                  1. Trouble Ticket number

                  2. Day and time of alarm/reported fault

                  3. Location of alarm/reported fault

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                  4. Equipment identification

                  5. object name

                  6. Probable cause

                  7. Description

                  8. severity

                  9. Processing priority

                  10. Issued by

                  11. Assigned to

                  12. Primary contact

                  13. Secondary contact

                  14. Opened date/time

                  15. Dispatched date/time

                  16. Resolved date/time

                  17. Closed date/time

         7.3.4.3. Trouble ticket reports detailing all available information
         associated with that ticket shall be generated at the specified
         reporting period while the trouble ticket remains active or on an
         operators request. Trouble Tickets may be generated manually or
         automatically. Attachments may be added to Trouble Tickets.

7.4. PERFORMANCE MANAGEMENT

7.4.1. REQUIREMENTS FOR NEW ELEMENTS

         7.4.1.1. Section 7.4 covers general functionality to be located at the
         SAN-OSS and NMC. The functionality provided through the individual OAMs
         is described in Section 7.8. However, in the case of the development of
         new elements it is recommended that the requirements of this Section be
         taken into account.

7.4.2. GENERAL

         7.4.2.1. The NMS shall allow the operator to access performance
         management functions as defined in the OAM interface specifications in
         Sections 7.8.

         7.4.2.2. The NMS shall allow the operator to set thresholds for each
         performance criterion.

         7.4.2.3. The NMS shall raise an alarm whenever a performance threshold
         has been exceeded.

         7.4.2.4. The NMS shall be able to support Trend Analysis.

         7.4.2.5. The NMS shall routinely produce a top level performance report
         summarising QoS performance and network criteria (e.g. equipment
         availability, trouble tickets processed etc.)

7.4.3. NETWORK TRAFFIC MANAGEMENT

         7.4.3.1. NMS shall support user traffic supervision (i.e. to have a
         clear overview of the network alarms status from a traffic management
         point of view), traffic analysis (i.e. to analyse the cause and origin
         of traffic disturbances detected by the traffic supervision function),
         traffic control (i.e. to re-route and to restrict traffic in the
         network) for the elements within the ICONET for which ICO has full
         control (e.g. switch, TNM, SBS, etc.).

7.5. SECURITY MANAGEMENT

7.5.1. REQUIREMENTS FOR NEW ELEMENTS

         7.5.1.1. Section 7.5 covers general functionality to be located at the
         SAN-OSS and NMC. The functionality provided through the individual OAMs
         is described in Section 7.8. However, in the case of the development of
         new elements it is recommended that the requirements of this Section be
         taken into account.

7.5.2. GENERAL

         7.5.2.1. NMS security shall encompass access control measures to be
         provided by the NMS to manage, control and monitor access to the DCN
         and to the ICONET via the NMS (namely the NMC, LINK-OS, NODE-OS, SAN-OS
         and individual network elements).

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         7.5.2.2. Within the NMS facilities shall be provided at the respective
         MMIs to enable the creation, deletion and configuration of operator
         user groups, user names and individual passwords.

         7.5.2.3. Individual access to the NMS shall be user and password
         controlled.

         7.5.2.4. It shall be possible to establish user groups (e.g.
         administrator, supervisor, general operator, etc.) with specific
         privileges in order to control group and/or individual access to
         specific operations, functions, configurations and applications.

         7.5.2.5. It shall be possible for authorised personnel to delete
         individual user access (e.g. when a staff member leaves, etc.).

         7.5.2.6. The password mechanism shall incorporate a facility for the
         automatic ageing.

         7.5.2.7. The NMS shall raise an alarm to the appropriate management
         layer for failed log-in attempts which exceed a pre-set rate.

         7.5.2.8. All user accesses to the NMS shall be logged. Where possible,
         details recorded shall include the user identification and point of
         access.

         7.5.2.9. During a log-in session, the system shall record the start/end
         times and the elements accessed (in the case where user privileges
         allow immediate access to a number of network elements).

         7.5.2.10. If operators or the NMS detects an unauthorised access or
         attempt then the NMS system shall:

                  1. Raise an alarm to the appropriate management layer.

                  2. Attempt to lock out the work station. If lock-out is
                     possible then it shall be possible for an operator with the
                     necessary privilege to unlock it at a later time.

                  3. Record all available information on the call/caller and
                     disconnect the call for dial-in connections.

         7.5.2.11. At each TINS, computer routine security and system
         administration facilities shall be available. Typically, this shall
         include:

                  1. Guarding against file and disk computer viruses which are
                     commercially recognised.

                  2. Monitoring, re-formatting and repairing disk space (e.g.
                     due to file fragmentation, etc.).

                  3. Protecting individual files and directories.

                  4. Recording last directory and file accesses through the
                     applications program.

         7.5.2.12. It shall be possible for a User to undertake a NMS security
         audit trail for a specified:

                  1. User Group

                  2. User

                  3. Time period.

         7.5.2.13. The NMS shall produce a routine report covering security
         aspects (e.g. number of log-ins, viruses detected, security alarms,
         etc.).

         7.5.2.14. The NMC shall provide key management, control and
         distribution for use in the DCN. The key management shall be provided
         by a highly secure portion of the NMC. (F/R)

7.6. ACCOUNTING MANAGEMENT

         7.6.1. There are no NMS requirements for Accounting Management except
         for the receipt of CDR files, when required, from the ADC.

7.7. SECTION NOT USED

7.8. OPERATIONS AND MAINTENANCE INTERFACE REQUIREMENTS

7.8.1. GENERAL

         7.8.1.1. This section describes the functionality which is to be made
         available to the NMS by the various network elements within the ICO
         system.

         7.8.1.2. Included for each OAM are the minimum acceptable parameters
         that will be collected from a Fault, Configuration and Performance
         Management perspective.

         7.8.1.3. In practice the functionality made available to the various
         NMS operator stations, through Security Management of the NMS, will
         vary depending on the operational requirements of each station. The
         NMC, for example, will require more of a global view of the system
         whereas at the SAN a more detailed view is required for the day to day
         maintenance and operations of network elements.

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         7.8.1.4. The OAM interfaces in this section have been divided up based
         on the various network elements. This does not imply that each network
         element will have its own OAM interface. For example the TNM OAM
         interface may handle both the TMN and DCN.

         7.8.1.5. The ICO system is to be designed with both expandability and
         interoperability in mind. Therefore, the NMS architecture employed must
         be capable of allowing additional network elements to be added with the
         minimum of network interruption. For these reasons then individual
         network element OAMs shall adhere to the following general
         requirements:

         7.8.1.6. Any communication interfaces, protocols, man machine
         interfaces, operating systems, databases, programming languages or
         development/application tools required for the network element OAM
         shall have the following basic features (as appropriate):

                  1. be controlled by an industry standard.

                  2. be commercially available with product support.

                  3. be consistent with open systems concepts.

                  4. be supported by major hardware and software platforms.

                  5. be multiprocessing.

                  6. be compatible between the client and server.

                  7. be compatible with the NMC and SAN network management
                     structure as far as is practical.

         7.8.1.7. Any exceptions to these (e.g. due to the re-use of existing
         equipment, etc.) shall be highlighted to ICO. For new elements then any
         exceptions will need to be approved by ICO.

         7.8.1.8. In general, separate OAM MMIs should be minimised (i.e.
         integrated into the SAN MMI). However, if a separate MMI is produced,
         then it shall be possible to initiate from the main SAN-OSS
         workstations.

7.8.2. SATELLITE RESOURCE MANAGEMENT CENTRE

7.8.2.1. GENERAL REQUIREMENTS

         7.8.2.1.1. The NMS shall encompass:

                  1. SRMC equipment, associated software, processing, monitoring
                     and control.

                  2. Error free and confirmed resource management data
                     distribution.

         7.8.2.1.2. The SRMC OAM interface shall provide access to backup and
         restoration procedures associated with the SRMC equipment.

         7.8.2.1.3. The SRMC OAM interface shall provide the following software
         upgrade facilities:

                  1. download new versions of software from the NMS.

                  2. replace the current version of software with the new
                     version.

                  3. replace the current version of software with the previous
                     version.

                  4. extract existing software version information for the three
                     versions of software.

7.8.2.2. CONFIGURATION MANAGEMENT

         7.8.2.2.1. The SRMC OAM interface shall provide a facility for the SRMC
         to supply status to the NMS.

         7.8.2.2.2. The SRMC OAM interface shall forward SRMC events to the NMS.

         7.8.2.2.3. The SRMC OAM interface shall allow the NMS to:

                  1. configure SRMC event parameters.

                  2. initiate archiving of the SRMC event data.

                  3. purge SRMC event data.

                  4. access SRMC event data.

         7.8.2.2.4. The SRMC OAM interface shall provide access to parameters
         requiring configuration by the NMS.

7.8.2.3. FAULT MANAGEMENT

         7.8.2.3.1. The SRMC OAM interface shall forward the raising and
         clearing of SRMC alarms to the NMS, including the following:

                  1. Communication alarms.

                  2. Equipment alarms.

                  3. Processing error alarms.

         7.8.2.3.2. Each SRMC alarm forwarded to the NMS shall contain:

                  1. an object identifier unique to the SRMC.

                  2. date and time of when the alarm was raised or cleared.

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                  3. alarm description.

                  4. alarm severity.

                  5. source of the alarm for the purpose of fault location.

         7.8.2.3.3. The SRMC OAM interface shall allow the NMS to:

                  1. configure SRMC alarm parameters.

                  2. initiate archiving of the SRMC alarm data.

                  3. purge SRMC alarm data.

                  4. access SRMC alarm data using filters supplied by the NMS.

         7.8.2.3.4. In the event of single or multiple satellite and/or SAN
         failure, the NMS shall have the capability to, within a 2 to 3 hour
         time-frame:

                  1. re-run SRMC software to regenerate Burst-time frequency
                     plans and channelisation plans for the available system.

                  2. [distribute and configure the system with the updated BTFPs
                     and channelisation plans.]

7.8.2.4. PERFORMANCE MANAGEMENT

         7.8.2.4.1. The SRMC OAM interface shall allow the NMS to:

                  1. configure SRMC performance parameters.

                  2. initiate archiving of the SRMC performance data.

                  3. purge SRMC performance data.

                  4. access SRMC performance data using filters supplied by the
                     NMS.

                  5. configure periodic transfer of SRMC performance data to the
                     NMS using filters.

7.8.2.5. SECURITY MANAGEMENT

         7.8.2.5.1. The SRMC OAM interface shall provide access control
         facilities to all SRMC OAM interface functionality. As a minimum, the
         SRMC shall distinguish between two level user categories:

                  1. Network Engineer/Planners responsible for the verification
                     and management of the planning process.

                  2. Network Operators who require to monitor and distribute
                     data only.

7.8.3. SATELLITE CONTROL CENTRE

7.8.3.1. GENERAL REQUIREMENTS

         7.8.3.1.1. The NMC/SRMC shall receive satellite orbital data from the
         SCC for use in generating satellite resource management data.

         7.8.3.1.2. An interface between the SCC and NMC shall be provided for
         the forwarding of various SCC generated faults and alarm conditions.
         This interface shall also be used for the delivery of files containing
         information such as satellite orbital data to the NMS for subsequent
         distribution.

         7.8.3.1.3. The interface and protocols shall follow the industry
         standards.

7.8.3.2. CONFIGURATION MANAGEMENT

         7.8.3.2.1. The NMS shall store and record data files passed from the
         SCC from a version controlled perspective.

7.8.3.3. FAULT MANAGEMENT

         7.8.3.3.1. The SCC OAM interface shall forward the raising and clearing
         of communication SCC alarms to the NMS Critical SCC (space segment)
         alarms shall also be forwarded to the NMC.

7.8.3.4. PERFORMANCE MANAGEMENT

         7.8.3.4.1. None.

7.8.3.5. SECURITY MANAGEMENT

         7.8.3.5.1. None.

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7.8.4. NODE OPERATIONS SYSTEM

7.8.4.1. GENERAL REQUIREMENTS

         7.8.4.1.1. The NODE-OS (encompassing the TMOS system) shall handle all
         network management functionality relating to the network elements
         directly under its control. Only alarm information is forwarded from
         the NODE-OS (and its lower network elements) to the higher level NMS.

         7.8.4.1.2. The NODE-OS architecture shall support:

                  1. centralised MSSC/MM OAM at the NMC and back-up NMC with
                     control at the NMC and the back-up NMC.

                  2. monitoring information shall be transmitted to both OAM
                     systems in the centralised option.

                  3. a semi-distributed architecture with MSSC/MM OAM at the
                     NMC, B-NMC and specified SANs.

                  4. a fully distributed architecture with OAM at every SAN.

         7.8.4.1.3. There shall be no functionality impact when migrating away
         from the initial centralised architecture.

         7.8.4.1.4. For the purposes of this requirement specification, the
         NODE-OS shall encompass the management of the following network
         elements:

                  1. MSSC which includes the VLR and SS7 switch based reported
                     faults

                  2. Short Messaging Service Centre (SMSC) (OPTION)

                  3. HLR

                  4. AuC

                  5. EIR

                  6. ILR (OPTION)

                  7. IN (F/R)

         7.8.4.1.5. Management functions, functional entities and objects
         required for the VLR/HLR/MSSC/EIR/AUC shall comply with GSM 12.02 as
         far as is possible.

         7.8.4.1.6. The NODE-OS OAM shall provide access to backup and
         restoration procedures associated with the managed elements.

         7.8.4.1.7. The NODE-OS OAM shall provide the following software upgrade
         facilities:

                  1. download new versions of software from the NODE-OS.

                  2. replace current version software with minor updates, if
                     needed (e.g. error fixes, etc.). In the event of a complete
                     replacement of the current software with a new or previous
                     version then this will be ordered from the NODE-OS using
                     data stored by the switch.

                  3. extract existing software version information for the three
                     versions of software.

         7.8.4.1.8. The GSM Series 12 shall be applied to the maximum extent
         possible for interoperability purposes. This shall include aspects such
         as managed object class definitions, class hierarchies and standard
         network management functionality.

         7.8.4.1.9. Relevant TMN standards as called up by the GSM Series 12
         standards shall be applied to the maximum extent possible.

         7.8.4.1.10. Relevant CCITT X.700 standards as called up by the GSM
         Series 12 standards shall be applied to the maximum extent possible.

         7.8.4.1.11. Objects shall be specified using standard GDMO definitions
         where possible for managed objects.

         7.8.4.1.12. The MMI shall follow recognised industry standards.

         7.8.4.1.13. The NODE-OS shall manage the satellite/cellular
         interworking function and provide fraud detection information from a
         network management perspective as described in Section 4.8 and 5.5,
         respectively.

7.8.4.2. CONFIGURATION MANAGEMENT

         7.8.4.2.1. GSM 12.06 shall be adopted where possible for network and
         service configuration management.

         7.8.4.2.2. A command handling application shall be available to enable
         the operator to:

                  1. open a command session window for sending commands to an
                     external network element and for presentation from the
                     network element.

                  2. display delayed responses in a separate window (i.e.
                     responses to a command that arrives at a later stage).

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                  3. receive and display in a separate window spontaneous
                     reports (i.e. events initiated by an network element).

                  4. create a command file (i.e. sequence of commands used in
                     the communication with an network element).

                  5. support shell scripts in a way similar to the command
                     files.

                  6. activate command files and shell scripts at a specified
                     time.

                  7. provide a command line interface in order that other
                     applications can be interfaced to the command handling
                     functions.

                  8. log all commands sent and responses returned.

                  9. set for a selected command a specific warning, confirmation
                     or guiding text that will then be displayed to the user of
                     the network element.

         7.8.4.2.3. A file transfer and management facility shall be provided to
         enable:

                  1. File transfer from a connected network element to the
                     NODE-OS.

                  2. Various file transfer options to be supported (e.g.
                     spontaneous file output, requested. file output,
                     notification-initiated requested file output).

                  3. scheduling of file transfers

                  4. The operator to define subscriptions to files on behalf of
                     external devices (i.e. to make sure that files are sent
                     from NODE-OS to the specific OS on a regular basis)

                  5. Automatic post-processing of files received in the NODE-OS
                     file store

                  6. The process of transferring a file independently of the
                     user interface.

                  7. On-going file transfers to be restarted, in case of a
                     reboot of the NODE-OS.

                  8. file transfers to remain after a system restart.

                  9. A NODE-OS alarm to be issued for each file transfer that is
                     unsuccessful.

                  10.A confirmation to be given for each file successfully
                     transferred.

         7.8.4.2.4. The NODE-OS shall encompass an application to create and
         manage the management information base. This application shall support
         the:

                  1. creation, deletion and the property change of a Managed
                     Object (MO).

                  2. heartbeat supervision.

                  3. alarm supervision.

7.8.4.3. FAULT MANAGEMENT

         7.8.4.3.1. The NODE-OS OAM interface shall forward alarm and event
         information from the network elements (hardware and software) to the
         higher level NMS.

         7.8.4.3.2. Alarm information shall include:

                  1. MSSC/VLR alarms (including SS7 alarms from the switch).

                  2. SMSC alarms. (OPTION)

                  3. HLR alarms.

                  4. AuC alarms.

                  5. EIR alarms.

                  6. ILR alarms. (OPTION)

         7.8.4.3.3. Facilities shall be provided to allow the following from the
         NODE-OS OAM for fault information:

                  1. collection and storage

                  2. status monitoring

                  3. viewing

                  4. history handling

                  5. definition

                  6. correlation, filtering and re-classification

                  7. threshold setting

                  8. forwarding

                  9. diagnostics and testing

         7.8.4.3.4. Basic fault management facilities shall be provided at the
         NODE-OS to allow:

                  1. reception of alarms from various alarm adaptation units

                  2. alarm logging

                  3. updating of the current alarm context for any managed
                     object affected by a received alarm.

                  4. distribution of received alarms to a subscribing
                     presentation function.

                  5. information access for presentational purposes.

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                  6. Routing of alarms to different destinations. Specifically,
                     routing to printers, files, mail and automatic
                     acknowledgement function shall be supported.

         7.8.4.3.5. The NODE-OS shall support a graphical presentation function
         which shall provide:

                  1. A Network Status presentation: this shall provide the
                     status of the whole network or the status of a part of the
                     network.

                  2. A display of the list of the new and active alarms.

                  3. the ability to get all available information about any of
                     these alarms.

                  4. the ability to read and write comments on alarms.

                  5. the ability to acknowledge observation of new alarms.

                  6. the ability for the operator to find information about
                     active and old (cleared) alarms stored in the alarm log.

         7.8.4.3.6. The NODE-OS shall provide for alarm analysis. This shall
         support:

                  1. Analysis of the alarms retrieved through an graphical user
                     interface.

                  2. Alarm analysis from the command line.

                  3. Input from either a file or standard input format for
                     routine program analysis.

                  4. the extension of the analysis function.

                  5. New analysis programs that perform new types of analysis

                  6. New alarm attributes that can be used in the analysis.

                  7. The ability for the operator to view operation and
                     maintenance documentation on a work station screen.

         7.8.4.3.7. (F/R) The NODE-OS shall support the conversion from text
         file alarms. This shall encompass:

                  1. The reception of alarms from regular files or named pipes.

                  2. The transformation of alarms into NODE-OS alarm records and
                     the forwarding of alarm records to the LINK-OS.

                  3. The size of the file for incoming alarms.

                  4. The real time update of the list of known alarms.

         7.8.4.3.8. The NODE-OS shall encompass:

                  1. The automatic filtering and (correlation (F/R)) of alarms.

                  2. User expertise to be incorporated in the filtering and
                     (correlation (F/R)) of alarms.

                  3. The invoking of actions to automate routine correction
                     procedures and to collect more information from the network
                     (F/R).

                  4. Suppression of secondary alarms upon confirmation of a
                     primary alarm (F/R).

         7.8.4.3.9. (F/R) The NODE-OS shall have online documentation to support
         the operations and maintenance of the switched network.

7.8.4.4. PERFORMANCE MANAGEMENT

         7.8.4.4.1. The NODE-OS shall collect performance measurement data from
         the network elements and databases.

         7.8.4.4.2. It shall be possible to generate performance summary reports
         on a daily, weekly and monthly basis.

         7.8.4.4.3. The NODE-OS shall include an application that measures and
         analyses certain events in order to provide quality indicators related
         to the performance of the network.

         7.8.4.4.4. Performance management features shall include:

                  1. performance data administration

                  2. measurement data collection and storage

                  3. performance data presentation

                  4. call tracing facilities

                  5. performance measurement data analysis reports

                  6. configurable thresholds for Measurement of performance
                     parameters

         7.8.4.4.5. It shall be possible to export performance reports and data
         into standard PC based applications for subsequent post-processing.

7.8.4.5. SECURITY MANAGEMENT

         7.8.4.5.1. The NODE-OS shall include compatible access security
         measures as have been specified for the LINK-OSS.

         7.8.4.5.2. The security features, mechanisms, procedures and objects
         shall be in accordance with GSM 12.03 where possible.

         7.8.4.5.3. The NODE-OS shall encompass a security facility to:

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                  1. Allow authority support to be used for administration of
                     the authority database (i.e. that contains information on
                     who is allowed to do what and when).

                  2. Provide log administration support in order to administer
                     log tables.

7.8.4.6. MOBILE SATELLITE SWITCHING CENTRE / VISITOR LOCATION REGISTER

7.8.4.6.1. GENERAL DESCRIPTION

         7.8.4.6.1.1. The MSSC is an exchange which performs all of the
         switching and signalling functions for mobile stations located in the
         geographical area designated as the SAN serving area. The switching
         element also encompasses the reporting of SS7 alarm messages as seen by
         the switch. The VLR is further co-located within the same switch as the
         MSSC.

         7.8.4.6.1.2. From a network management perspective the MSSC is managed
         via the NODE-OS.

7.8.4.6.2. GENERAL REQUIREMENTS

         7.8.4.6.2.1. The MSSC OAM shall manage its elements through views that
         present a geographical layout of the actual network.

         7.8.4.6.2.2. The MSSC OAM shall comprise of a management platform that
         supports the Cellular Management System for GSM.

         7.8.4.6.2.3. The following functionalities shall be supported in the
         dialogue between the NODE-OS and the switch:

                  1. connection and association handling;

                  2. command and response communication to and from the switch,
                     including

                  3. spontaneous report reception;

                  4. logging and authority control;

                  5. file administration;

                  6. file transfer;

                  7. event logging;

                  8. subscription handling, which is a general mechanism for
                     distribution of files,

                  9. delayed responses, and spontaneous reports received from
                     the switch.

7.8.4.6.3. CONFIGURATION MANAGEMENT

         7.8.4.6.3.1. Through the NODE-OS it shall be possible to configure:

                  1. MSSC/VLR equipment provisioning and assignment

                  2. MSSC/VLR parameter selection

                  3. MSSC/VLR equipment status selection (e.g., on-line or
                     standby)

                  4. remote trunk assignment and service assignment and
                     restriction

                  5. remote software overwrites and patches

                  6. Remote configuration of signalling links terminating on the
                     switch

                  7. Remote bulk downloading of traffic and signalling routing
                     information without disruption or degradation of service.

         7.8.4.6.3.2. Categories of message trunks that are to be managed shall
         include:

                  1. Inter-SAN trunks

                  2. Trunks from SANs to external switching elements such as:

                  3. National Satellite Access (NSA) Gateways

                  4. PSTN National Switching Centres

                  5. Other ICO internal network.

         7.8.4.6.3.3. It shall be possible to manage various categories of
         signalling links which terminate on ICO MSSCs (e.g. signalling transfer
         points, gateways, earth stations, network service control databases,
         etc.).

         7.8.4.6.3.4. It shall be possible to manage various categories of
         signalling links among STPs and network service control (e.g. inter-STP
         signalling links, STP to network service control database links, links
         between the ICO network and interfacing network providers).

         7.8.4.6.3.5. It shall be possible to maintain routing configuration
         data for calls and signalling messages (e.g. direct routing, transit
         routing for calls, etc.).

         7.8.4.6.3.6. Call routing options shall include:

                  1. Ordered route choices by call type (e.g.
                     originating/terminating)

                  2. Ordered route choices by class of service or travelling
                     classmark

                  3. Ordered route choices with restrictions invoked by Network
                     Management

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                  4. Overflow route choices

                  5. Routes received from Network Service Control Databases

                  6. Dynamic routing choices

         7.8.4.6.3.7. Signalling message routing options shall include:

                  1. Message Transfer Part (MTP) routing for signalling messages
                     by destination point code

                  2. Direct routing on primary link set

                  3. Optional shared load routing per Signalling Link Selection
                     Code

                  4. Restricted routing per Signalling Network Management

                  5. Sequenced routing options per Signalling Network Plan and
                     Structure.

                  6. Signalling Connection & Control Part (SCCP) signalling
                     message routing by Destination Point Code, Sub-system
                     number, or Global Title

                  7. TCAP (Transaction Capability Application Part) messages

                  8. OMAP (Operations & Maintenance Application Part) messages

                  9. Other high-level signalling application part messages as
                     appropriate.

         7.8.4.6.3.8. Destination for calls will be determined by translation
         types shall include:

                  1. MSSC translation

                  2. Network Service Control database translation.

         7.8.4.6.3.9. Configuration management data contained in the VLR shall
         include:

                  1. VLR control program updates

                  2. MSRN tables

                  3. TMSI tables

                  4. Database sizes.

         7.8.4.6.3.10. Software management shall be incorporated into the
         switching element. This shall enable:

                  1. The display of software properties for a selected network
                     element to be supported.

                  2. The operator to search for a specific software unit or
                     program correction, among a selected set of network
                     elements or in the complete network.

                  3. Comparison among software revisions of a selected set of
                     MSSC/VLR or the complete network shall be supported.

                  4. The information stored in the NODE-OS database to be
                     updated with the data of the MSSC/VLR.

                  5. the operator to set certain filters in the tool properties
                     that restrict the scope of the database retrieving
                     operations.

                  6. importing of files from input media.

                  7. Handling of a suitable file store.

                  8. Files to be loaded into the AXE file store, before
                     activation of software units.

                  9. software unit downloading (i.e. loading of software,
                     testing and activation)

                  10. Downloads of program correction command files shall be
                     supported.

7.8.4.6.4. FAULT MANAGEMENT

         7.8.4.6.4.1. The NMS shall monitor the operational state of the
         MSSC/VLR.

         7.8.4.6.4.2. Test procedures shall be available to test the MSSC/VLR
         transactions as well as the communication to the MSSC/VLR.

         7.8.4.6.4.3. Alarms managed include the following:

                  1. MSSC/VLR Hardware fault alarms

                  2. Signalling Link alarms

                  3. Signalling Link Set alarms

                  4. Trunk and Trunk group alarms

                  5. PCM Circuit alarms

                  6. Failure of GSM interface links to the MSSC and other
                     systems

                  7. Signalling failures on GSM interface links

                  8. Excessive number of retries on GSM interface links

                  9. Excessive number of failed SMS attempts

                  10. Excessive number of failed HPN attempts

                  11. Automatic switchovers in response to hardware failure

                  12. Equipment failures without automatic switchovers

                  13. Database Update alarms

                  14. Automatic Database recovery initiated alarms

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                  15. Database threshold alarms

         7.8.4.6.4.4. The NODE-OS shall encompass an alarm adaptation facility.
         This shall encompass:

                  1. The reception of the alarms from all MSSCs currently
                     specified to be supervised in the NODE-OS information
                     model.

                  2. setting of mandatory attributes and several optional
                     attributes in the Alarm Records.

                  3. the forwarding of created Alarm records to the Fault
                     Management Kernel.

                  4. The conversion of an MSSC alarm printout to an Alarm
                     Record.

                  5. A database consistency check. This shall be made to update
                     the MSSC alarm information in NODE-OS after error
                     situations.

                  6. The enabling/disabling of the AXE heartbeat supervision.

                  7. The setting of a heartbeat supervision interval.

                  8. The modification of the default values for mapping MSSC
                     alarm class to perceived severity and to probable cause.

                  9. The modification of the default values for mapping MSSC
                     Alarm Category.

                  10. The update of the Probable Cause value set for a specific
                     Alarm Slogan.

                  11. The update of the MSSC specific problem list (Alarm
                     Slogans), of the MSSC Probable Cause List, and of the MSSC
                     Event Type list.

                  12. The addition/removal of conversion rules for one or more
                     Alarm Slogans.

                  13. The update of input parameters to conversion rules.

7.8.4.6.5. PERFORMANCE MANAGEMENT

         7.8.4.6.5.1. A variety of performance data will be generated by the
         MSSC for reporting purposes. The exact types and formats will depend on
         the switch chosen but reporting shall include:

                  1. Traffic Reports

                  2. Destination Measurements Reports

                  3. Traffic Measurements for Mobile Calls

                  4. Holding Times/Call Volumes

         7.8.4.6.5.2. A variety of performance counts shall be kept by the MSSC.
         The exact types and formats will depend on the switch chosen but
         typical counts shall include:

                  1. TRAFFIC VOLUME DATA; traffic counts (attempts, completions)
                     on each trunk group and channel group and on each network
                     component at regular time intervals, resulting in counts
                     per time interval)

                  2. CUSTOMER BEHAVIOUR RELATED CALL FAILURE (e.g. counts of
                     call disposition (Busy, Don't Answer, Customer not
                     Available, etc.).

                  3. TRAFFIC FAILURES DUE TO SWITCHING; internal measurements of
                     call (traffic) failures due to switching. In addition,
                     signalling often identifies an inability to establish a
                     call due to switch failure.

                  4. TRAFFIC FAILURES DUE TO SATELLITES; count of call failures
                     due to satellite channel failure or poor quality provided
                     by the switch (MSSC).

                  5. TRAFFIC FAILURES DUE TO TRUNKING; count of call failures
                     due to trunk failure or poor quality provided by the switch
                     (MSSC).

                  6. BLOCKED CALLS; counts of blocked call (No Circuit counts).

                  7. INTERRUPTED CALLS; detect any call lost without a customer
                     generated disconnect.

                  8. CALL SET-UP TIME (post-dial delay); Call set-up time
                     provided by the switching systems and through measured test
                     calls.

                  9. CALL HOLDING TIME; all holding time by service type, trunk
                     group, and time and date.

         7.8.4.6.5.3. A variety of performance parameter measurements shall be
         recorded by the MSSC/VLR and these shall be agreed in liaison with ICO
         during the requirements phase. However, typical parameters shall
         include:

                  1. Mobile Originated Call Measurements (e.g. attempted calls,
                     successful calls, etc.)

                  2. Mobile Terminated Call Measurements (e.g. attempted calls,
                     successful calls, etc.)

                  3. emergency calls (e.g. number answered, etc.)

                  4. Call set-up measurements

                  5. inter MSSC handover measurements

                  6. Other call related measurements (e.g. TMSI subscriber
                     transactions on MM layer, attempted TMSI re-allocations,
                     IMSI detached procedures, etc.)

                  7. Peak hour measurements

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                  8. Load measurements

                  9. HLR-VLR measurements (e.g. attempted intra/inter VLR
                     location updates, etc.)

                  10. traffic volume data per geographical area.

         7.8.4.6.5.4. The data collection for Statistic and Traffic Measurement
         shall be supported.

         7.8.4.6.5.5. The data collection and presentation for the Traffic
         measurements on traffic routes, traffic types and geographical
         distribution shall be supported.

         7.8.4.6.5.6. The following functions shall be supported:

                  1. data compression;

                  2. data deletion;

                  3. data backup-handling.

                  4. The generation of reports, once data has been collected and
                     inserted into the database, shall be supported.

         7.8.4.6.5.7. The following four types of scripts for different
         functions shall be supported:

                  1. command scripts;

                  2. command response scripts;

                  3. file normalisation scripts;

                  4. report scripts.

         7.8.4.6.5.8. The administration of measurements (e.g. list of
         measurements, deletion of measurements) shall be supported.

         7.8.4.6.5.9. The data reception and storage shall be supported.

         7.8.4.6.5.10. The extended administration of measurements with creation
         of measurements via the Graphic User Interface shall be supported.

         7.8.4.6.5.11. The performance measurements measured by the MSSC and
         available through the NODE-OS OAM interface shall include the
         information to allow the calculation of:

                  1. total call holding time categorised by (UT location, F/R),
                     mobile-originated or mobile-terminated, (service type,
                     F/R), time and day.

                  2. total call counts (attempts and completion) categorised by
                     (UT location, F/R), mobile-originated, mobile-terminated,
                     (service type, F/R), time and day.

         7.8.4.6.5.12. The interval and resolution of measurements shall be
         chosen so that the measurements data can be efficiently utilised for
         traffic planning at the SRMC.

         7.8.4.6.5.13. Performance measurements recorded by the MSSC/VLR shall
         be made available through the NODE-OS OAM interface for the purpose of
         further analysis and predictions in Traffic Planning at the SRMC.

7.8.4.6.6. SECURITY MANAGEMENT

         7.8.4.6.6.1. None

7.8.4.7. IGF MESSAGING PLATFORM (OPTION)

7.8.4.7.1. GENERAL DESCRIPTION

         7.8.4.7.1.1. The IGF Messaging Platform is composed of a number of
         messaging nodes to be deployed in the ICONET to deliver the service
         requirements of Section 4.5 of the IGF Requirements.

7.8.4.7.2. GENERAL REQUIREMENTS

         7.8.4.7.2.1. The IGF Messaging Platform shall provide an OAM facility
         adhering to a recognised MMI standard.

         7.8.4.7.2.2. From the OAM facility it shall be possible to interrogate,
         monitor, control and modify the IGF Messaging Platform environment.

         7.8.4.7.2.3. The IGF Messaging Platform shall support multi-access for
         OAM operations.

         7.8.4.7.2.4. The IGF Messaging Platform shall support an interface to
         the NODE-OS at the NMC/B-NMC and (remote) SAN.

         7.8.4.7.2.5. The NODE-OS IGF Messaging Platform interface shall enable
         interaction via a standardised and recognised management protocol and
         interface.

         7.8.4.7.2.6. From the NODE-OS, it shall be possible to perform
         operations (that can be done from a local Messaging Node) on multiple
         messaging nodes to ensure node consistency.

         7.8.4.7.2.7. The NODE-OS shall have sufficient capacity to manage
         capacity enhancements to the IGF Messaging Platform in the future.

         7.8.4.7.2.8. It shall be possible for the OAM facility to accommodate
         additional future agent software to support new messaging services to
         be delivered by the IGF Messaging Platform.

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         7.8.4.7.2.9. It shall be possible to obtain statistical and performance
         reports on the IGF Messaging Platform via the OAM. Typical these
         reports will cover traffic, subscriber and message activity.

7.8.4.7.3. CONFIGURATION MANAGEMENT

         7.8.4.7.3.1. It shall be possible to log into the IGF Messaging
         Platform for OAM operations:

                  1. Locally from a dedicated OAM terminal at the messaging node
                     site.

                  2. Remotely from the SAN (via the NODE-OS Terminal)

                  3. Remotely from the NMC (if the IGF Messaging Platform is not
                     sited at the NMC), via the NODE-OS.

         7.8.4.7.3.2. The IGF Messaging Platform OAM interface shall provide a
         facility for the messaging nodes to supply status information to the
         NODE-OS. Typical status information is required of the current hardware
         and software configuration of each of the messaging nodes (namely,
         processing subsystem, storage subsystem, front-end subsystem, OAM
         subsystem, database management system).

         7.8.4.7.3.3. It shall be possible to configure specific failure event
         conditions for reporting to the NODE-OS.

         7.8.4.7.3.4. The IGF Messaging Platform shall support the following
         functions in relation to the interface to the NODE-OS:

                  1. Conversion of the received IGF Messaging Platform alarms to
                     NODE-OS format

                  2. Synchronisation of NODE-OS alarm information with the MC
                     alarm information.

         7.8.4.7.3.5. It shall be possible to configure IGF Messaging Platform
         thresholds and settings (e.g. system database settings, parameters,
         etc.).

         7.8.4.7.3.6. It shall be possible to log configuration changes (e.g.
         database modification, parameter adjustments, etc.).

         7.8.4.7.3.7. It shall be possible for the IGF Messaging Platform to
         support remote installation of upgraded software for each Messaging
         Node.

7.8.4.7.4. FAULT MANAGEMENT

         7.8.4.7.4.1. The NODE-OS shall manage the alarms generated by the IGF
         Messaging Platform.

         7.8.4.7.4.2. Typical alarms reported shall include:

                  1. Equipment alarms

                  2. Software processing alarms

                  3. Communication alarms

                  4. Database alarms (e.g. update, recovery, threshold
                     violation, etc.)

                  5. IGF Messaging Platform service failures (e.g. voice mail,
                     data, etc.)

                  6. Message validation failures

                  7. Signalling errors

                  8. Excessive number of SMS retries

                  9. Storage/Retrieval errors.

         7.8.4.7.4.3. The IGF Messaging Platform OAM shall maintain an event log
         for local error and event messages.

         7.8.4.7.4.4. It shall be possible to filter event log(s) using
         pre-defined and/or custom filters.

7.8.4.7.5. PERFORMANCE MANAGEMENT

         7.8.4.7.5.1. A variety of performance parameter measurements shall be
         recorded concerning the IGF Messaging Platform and these shall be
         agreed with ICO during the requirements phase. However, typical
         parameters shall include:

                  1. Overall attempted/successful mobile originating short
                     message forwarding

                  2. Overall attempted/successful mobile terminating short
                     message forwarding

                  3. Attempted/successful mobile originating messages per
                     service type (i.e. voice, data, etc.)

                  4. Attempted/successful mobile terminating messages per
                     service type

                           a) Short messages per time period

                           b) No of stored messages to be distributed

                           c) No of notification messages received

                           d) Message buffer lengths

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7.8.4.7.6. SECURITY MANAGEMENT

         7.8.4.7.6.1. It shall be possible to limit access to the IGF Messaging
         Platform via a login/password control mechanism.

         7.8.4.7.6.2. This access control facility shall be configurable.

         7.8.4.7.6.3. It shall be possible to log all operator activities
         towards the IGF Messaging Platform exchange.

7.8.4.8. HOME LOCATION REGISTER

7.8.4.8.1. GENERAL DESCRIPTION

         7.8.4.8.1.1. The HLR is a database where subscriptions are defined with
         the IMSI and MSISDN number(s) attached. Attributes belonging to each
         subscription (categories, supplementary services, basic
         telecommunications services, locations) are also identified here.
         Authentication triplets requested from the AuC are also stored here.

7.8.4.8.2. GENERAL REQUIREMENTS

         7.8.4.8.2.1. Management functions, functional entities and objects
         required from the HLR shall be as defined in GSM 12.02 as far as is
         possible.

         7.8.4.8.2.2. The following functionalities shall be supported in the
         dialogue between the NODE-OS and the switch:

                  1. connection and association handling;

                  2. command and response communication to and from the switch,
                     including spontaneous report reception;

                  3. logging and authority control;

                  4. file administration;

                  5. file transfer;

                  6. event logging;

                  7. subscription handling, which is a general mechanism for
                     distribution of files, delayed responses, and spontaneous
                     reports received from the switch.

7.8.4.8.3. CONFIGURATION MANAGEMENT

         7.8.4.8.3.1. The HLR shall contain the following (minimum) information:

                  1. The users international mobile subscriber number (IMSI),
                     which corresponds to that contained in their Subscriber
                     Identify Module (SIM)

                  2. Subscribers MSISDN

                  3. Supplementary services that have been authorised

                  4. The users home gateway

                  5. The location of the users current VLR.

         7.8.4.8.3.2. Software management shall be incorporated into the HLR
         element. This shall enable:

                  1. The display of software properties for a selected network
                     element to be supported.

                  2. The operator to search for a specific software unit or
                     program correction, among a selected set of network
                     elements or in the complete network.

                  3. Comparison among software revisions of a selected set of
                     HLR or the complete network shall be supported.

                  4. The information stored in the NODE-OS database to be
                     updated with the data of the HLR.

                  5. the operator to set certain filters in the tool properties
                     that restrict the scope of the database retrieving
                     operations.

                  6. importing of files from input media.

                  7. Handling of a suitable file store.

                  8. Files to be loaded into the AXE file store, before
                     activation of software units.

                  9. software unit downloading (i.e. loading of software,
                     testing and activation).

                  10. Downloads of program correction command files shall be
                     supported.

7.8.4.8.4. FAULT MANAGEMENT

         7.8.4.8.4.1. The NODE-OS shall monitor the operational state of the
         HLR.

         7.8.4.8.4.2. Test procedures shall be available to test the HLR
         transactions as well as the communication to the HLR.

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         7.8.4.8.4.3. Alarms to be managed shall include:

                  1. HLR Hardware Fault alarms

                  2. Signalling Link Set alarms

                  3. Signalling Link Set alarms

                  4. Database Update alarms

                  5. Automatic Database recovery initiated alarms

                  6. Database threshold alarms

                  7. Signalling failures on GSM interface links

                  8. Excessive number of retries on GSM interface links

                  9. Threshold Alarms

         7.8.4.8.4.4. The NODE-OS shall encompass an alarm adaptation facility.
         This shall include:

                  1. The reception of the alarms from the HLR currently
                     specified to be supervised in the NODE-OS information
                     model.

                  2. setting of mandatory attributes and several optional
                     attributes in the Alarm Records.

                  3. the forwarding of created Alarm records to the Fault
                     Management Kernel.

                  4. The conversion of an HLR alarm printout to an Alarm Record.

                  5. A database consistency check. This shall be made to update
                     the HLR alarm information in NODE-OS after error
                     situations.

                  6. The enabling/disabling of the AXE heartbeat supervision.

                  7. The setting of a heartbeat supervision interval.

                  8. The modification of the default values for mapping HLR
                     alarm class to perceived severity and to probable cause.

                  9. The modification of the default values for mapping HLR
                     Alarm Category.

                  10. The update of the Probable Cause value set for a specific
                     Alarm Slogan.

                  11. The update of the HLR specific problem list (Alarm
                     Slogans), of the HLR Probable Cause List, and of the HLR
                     Event Type list.

                  12. The addition/removal of conversion rules for one or more
                     Alarm Slogans.

                  13. The update of input parameters to conversion rules.

7.8.4.8.5. PERFORMANCE MANAGEMENT

         7.8.4.8.5.1. The HLR shall report:

                  1. transaction load and response time

                  2. database size

                  3. update and query failure rates

                  4. service activation time.

         7.8.4.8.5.2. A variety of performance parameter measurements shall be
         recorded concerning the HLR and these shall be agreed in liaison with
         ICO during the requirements phase. However, typical parameters shall
         include:

                  1. Subscription activity/profile measurements

                  2. Number of Attempted/successful user location updates

                  3. Attempted/successful request for MSRN

                  4. Number of added subscribers by time period.

7.8.4.8.6. SECURITY MANAGEMENT

         7.8.4.8.6.1. None

7.8.4.9. AUTHENTICATION CENTRE / EQUIPMENT IDENTIFICATION REGISTER

7.8.4.9.1. GENERAL DESCRIPTION

         7.8.4.9.1.1. The AuC network element stores data for each mobile
         subscriber to allow the international mobile subscriber identity to be
         authenticated and to allow communication over the radio path between
         the mobile station and the network to be ciphered. The AuC is
         responsible for providing the authenticating keys for authorising ICO
         subscribers access to the ICONET

         7.8.4.9.1.2. The EIR provides a global repository for the data required
         to validate the user terminal. It supports the detection of illegal or
         cloned equipment (white list), the detection of stolen equipment (black
         list) and the monitoring of faulty equipment (grey list).

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7.8.4.9.2. GENERAL REQUIREMENTS

         7.8.4.9.2.1. Management functions, functional entities and objects
         required from the EIR/AUC shall be as defined in the Ericsson SoC to
         GSM 12.02.

7.8.4.9.3. CONFIGURATION MANAGEMENT

         7.8.4.9.3.1. The EIR shall maintain the following lists of user
         terminal IMEIs:

                  1. White List.   These are ranges of "normal" devices,
                                   authorised to make calls on the network.

                  2. Grey List.    These devices are "suspect" numbers.

                  3. Black List.   IMEIs on the black list are either stolen,
                                   suspended for non-payment or are faulty
                                   devices. They are forbidden to make calls on
                                   the ICO network.

         7.8.4.9.3.2. It shall be possible to set up a connection from the
         NODE-OS to the AuC/EIR.

         7.8.4.9.3.3. It shall be possible to forward a command to the AuC/EIR
         and to receive the respective response.

         7.8.4.9.3.4. It shall be possible to interrupt the reception of the
         current response.

         7.8.4.9.3.5. It shall be possible to handle disconnection from the
         remote system.

         7.8.4.9.3.6. The authority check on connections as well as on commands
         shall be performed.

7.8.4.9.4. FAULT MANAGEMENT

         7.8.4.9.4.1. The NODE-OS shall monitor the operational state of the
         Local EIR/AuC.

         7.8.4.9.4.2. Test procedures shall be available to test the Local
         EIR/AuC transactions as well as the communication to the Local EIR.

         7.8.4.9.4.3. Alarms to be managed shall include:

                  1. Local AuC/EIR Hardware Fault Alarms

                  2. Database Update alarms

                  3. Automatic Database recovery initiated alarms

                  4. Database threshold alarms

                  5. Signalling failures on GSM interface links

                  6. Excessive number of retries on GSM interface links

                  7. Threshold Alarms.

         7.8.4.9.4.4. It shall be possible to receive at the NODE-OS all events
         originating from the AuC/EIR.

         7.8.4.9.4.5. The processing of the AuC/EIR events/alarms and the
         translation into NODE-OS event/alarm record format shall be supported.

         7.8.4.9.4.6. The setting of the mandatory attributes and of the
         optional attributes in the NODE-OS alarm record shall be supported.

         7.8.4.9.4.7. The connection to AuC/EIR shall be supervised.

7.8.4.9.5. PERFORMANCE MANAGEMENT

         7.8.4.9.5.1. The EIR shall report:

                  1. transaction load and response time

                  2. database size

                  3. transaction response time

                  4. service activation time

                  5. queries for unidentified equipment

                  6. counts and ratios of grey list and black list "hits" versus
                     white list "hits."

         7.8.4.9.5.2. A variety of performance parameter measurements shall be
         recorded concerning the EIR and these shall be agreed in liaison with
         ICO during the requirements phase. However typical EIR Parameters shall
         include:

                  1. Number of total requests

                  2. Number of requests by MSSC

                  3. Number of "hits" by MSSC:

                           a) Black list

                           b) Grey list

                           c) White list

                  1. Minimum, average, and peak response times to requests from
                     the MSSCs

                  2. Number of queries for unidentified equipment

                  3. Database size and percent utilisation

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                  4. Number of transmitted check IMEI request

                  5. Number of white answers in EIR

                  6. Number of grey answers in EIR

                  7. Number of black answers in EIR

                  8. Number of unknown IMEI answers

         7.8.4.9.5.3. The AuC shall report:

                  1. transaction load and response time

                  2. database size

                  3. transaction response time

                  4. counts and ratios of failed challenges versus accepted
                     challenges.

         7.8.4.9.5.4. A variety of performance parameter measurements shall be
         recorded concerning the AuC and these shall be agreed in liaison with
         ICO during the requirements phase.

         However typical AuC parameters shall include:

                  1. Total number of transactions per hour

                  2. Total number of transactions per hour per MSSC

                  3. Database size and percent space utilisation

                  4. Response times to test transactions

                  5. Counts and ratios of successful versus failed challenges.

7.8.4.9.6. SECURITY MANAGEMENT

         7.8.4.9.6.1. None

7.8.4.10. INTERWORKING LOCATION REGISTER (OPTION)

7.8.4.10.1. GENERAL DESCRIPTION

         7.8.4.10.1.1. The ILR forms part of the cellular/satellite
         interworking function which enables roaming of ICO subscribers between
         the ICONET and other cellular networks as described in Section 4. The
         ILR is a database which is based on the ICO HLR construct.

7.8.4.10.2. GENERAL REQUIREMENTS

         7.8.4.10.2.1. The following functionalities shall be supported in the
         dialogue between the NODE-OS and the switch:

                  1. connection and association handling;

                  2. command and response communication to and from the switch,
                     including spontaneous report reception;

                  3. logging and authority control;

                  4. file administration;

                  5. file transfer;

                  6. event logging;

                  7. subscription handling, which is a general mechanism for
                     distribution of files, delayed responses, and spontaneous
                     reports received from the switch.

7.8.4.10.3. CONFIGURATION MANAGEMENT

         7.8.4.10.3.1. Software management shall be incorporated into the ILR
         element. This shall enable:

                  1. The display of software properties for a selected network
                     element to be supported.

                  2. The operator to search for a specific software unit or
                     program correction, among a selected set of network
                     elements or in the complete network.

                  3. Comparison among software revisions of a selected set of
                     ILR or the complete network shall be supported.

                  4. The information stored in the NODE-OS database to be
                     updated with the data of the ILR.

                  5. the operator to set certain filters in the tool properties
                     that restrict the scope of the database retrieving
                     operations.

                  6. importing of files from input media.

                  7. Handling of a suitable file store.

                  8. Files to be loaded into the AXE file store, before
                     activation of software units.

                  9. software unit downloading. (i.e. loading of software,
                     testing and activation)

                  10. Downloads of program correction command files shall be
                     supported.

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7.8.4.10.4. FAULT MANAGEMENT

         7.8.4.10.4.1. The NODE-OS shall manage the alarms generated by the
         SAN-OSS switches ILR subsystem.

         7.8.4.10.4.2. The NMC shall monitor the operational state of the ILR.

         7.8.4.10.4.3. Test procedures shall be available to test the ILR
         transactions as well as the communication to the ILR.

         7.8.4.10.4.4. Alarms to be managed shall include:

                  1. ILR Hardware Fault Alarms

                  2. Database Update alarms

                  3. Automatic Database recovery initiated alarms

                  4. Database threshold alarms

                  5. Signalling failures on GSM interface links

                  6. Excessive number of retries on GSM interface links

                  7. Threshold Alarms.

         7.8.4.10.4.5. The NODE-OS shall encompass an alarm adaptation facility.
         This shall include:

                  1. The reception of the alarms from all ILRs currently
                     specified to be supervised in the NODE-OS information
                     model.

                  2. setting of mandatory attributes and several optional
                     attributes in the Alarm Records.

                  3. the forwarding of created Alarm records to the Fault
                     Management Kernel.

                  4. The conversion of an ILR alarm printout to an Alarm Record.

                  5. A database consistency check. This shall be made to update
                     the ILR alarm information in NODE-OS after error
                     situations.

                  6. The enabling/disabling of the AXE heartbeat supervision.

                  7. The setting of a heartbeat supervision interval.

                  8. The modification of the default values for mapping ILR
                     alarm class to perceived severity and to probable cause.

                  9. The modification of the default values for mapping ILR
                     Alarm Category.

                  10. The update of the Probable Cause value set for a specific
                     Alarm Slogan.

                  11. The update of the ILR specific problem list (Alarm
                     Slogans), of the ILR Probable Cause List, and of the ILR
                     Event Type list.

                  12. The addition/removal of conversion rules for one or more
                     Alarm Slogans.

                  13. The update of input parameters to conversion rules.

7.8.4.10.5. PERFORMANCE MANAGEMENT

         7.8.4.10.5.1. The ILR shall report:

                  1. transaction load and response time

                  2. database size

                  3. update and query failure rates

                  4. service activation time.

         7.8.4.10.5.2. A variety of performance parameter measurements shall be
         recorded concerning the ILR and these shall be agreed in liaison with
         ICO during the requirements phase.

         However, typical parameters shall be as per the HLR.

7.8.4.10.6. SECURITY MANAGEMENT

         7.8.4.10.6.1. None.

7.8.4.11. INTELLIGENT NETWORK SYSTEM (F/R)

         7.8.4.11.1. The IN platform provides customised services for calls
         to/from both ICO subscribers and roamers within the ICONET.

         7.8.4.11.2. It consists of these network elements (in the following
         referred to as the IN systems): Service Switching Function (SSF),
         Intelligent Peripherals (IP), Service Control Point (SCP), Service
         Management Point (SMP), Service Creation Environment (SCE).

         7.8.4.11.3. Provisions shall be included for the operator to manage the
         IN systems adopted across the various ICONET elements. Such management
         shall encompass:

                  1. Fault Management - monitoring of IN systems (including
                     SMAS, SCP) shall be provided including alarm surveillance,
                     alarm analysis. Fault detection, fault location and fault
                     correction is required.

                  2. Alarm forwarding shall be supported from SMP/SCP to the
                     NODE-OS (F/R)

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                  3. Configuration Management - this shall encompass MSSC (SSF)
                     and SS#7, network change introduction and maintenance
                     support. It shall be possible to configure event
                     thresholds.

                  4. Performance Management - the real-time collection,
                     reporting and presentation of measurement data from the IN
                     systems and counters shall be supported. The capability to
                     collect statistics (usage of all IN services, errors when
                     executing IN services, etc.).

7.8.4.12. SIGNALLING SYSTEM

         7.8.4.12.1. CCITT (now ITU-T) No 7 acts as the signalling backbone
         channels for the signalling between the MSSC, TNM, SBS and IN elements.
         As such, its continual management is an important consideration.

         7.8.4.12.2. CCS#7 Management shall be compliant with the relevant
         industry standards (e.g. ITU-T, ANSI SS7, Japanese SS7).

         7.8.4.12.3. Provisions shall be included for the operator to manage the
         CCS7 signalling network adopted across the various ICONET elements.
         Such management shall encompass:

                  1. fault management - link monitoring shall be provided to
                     detect, diagnose and treat real-time signalling link
                     failures (both hardware and message transfer [MTP]).
                     Testing of faults shall also be possible to confirm
                     successful recovery action (e.g. link failure clearance,
                     etc.). Serious faults shall be escalated and communicated
                     to the SAN-OSS. for higher level correlation and attention.
                     Reporting shall also be possible for potential failures
                     such as congestion build up and blocking.

                  2. configuration management - this shall encompass (network
                     planning (F/R)), network change introduction and
                     maintenance support.

                  3. performance management - the real-time collection,
                     (reporting and presentation of measurement data (F/R)) from
                     the CC7 elements and counters (e.g. traffic parameters,
                     signalling message lengths etc.).

         7.8.4.12.4. (It shall be possible to retain a network-wide display of
         the CCS7 operations and resources (e.g. network set-up, routing,
         trunks, etc.) (F/R)). Management of the CCS7 shall be possible at the
         NMC. In addition, management of the various interconnecting links shall
         be possible via the MSSC and TNM, as appropriate (refer to Section
         6.37).

7.8.5. SATELLITE ACCESS NODE

7.8.5.1. GENERAL DESCRIPTION

         7.8.5.1.1. The SAN-OSS system is a single centralised point at the SAN
         where the complete functionality of the SAN can be monitored. The OSS
         also acts as a Mediation Device in support of the functionality
         required at the NMC.

         7.8.5.1.2. The objective of the SAN-OSS system is to maximise the
         availability and performance of the local SAN equipment.

         7.8.5.1.3. The OT&DF is to be treated as a SAN.

7.8.5.2. GENERAL REQUIREMENTS

         7.8.5.2.1. The SAN-OSS OAM interface shall provide access to backup
         and restoration procedures associated with the SAN-OSS.

         7.8.5.2.2. The SAN-OSS OAM interface shall provide the following
         software upgrade facilities:

                  1. download new versions of software from the NMC.

                  2. replace the current version of software with the new
                     version.

                  3. replace the current version of software with the previous
                     version.

                  4. extract existing software version information for the three
                     versions of software.

         7.8.5.2.3. It shall be possible to integrate further elements into the
         SAN-OSS at a later date with the minimum disruption, for the purposes
         of network expansion.

7.8.5.3. CONFIGURATION MANAGEMENT

         7.8.5.3.1. The SAN-OSS OAM interface shall provide a facility for the
         SAN-OSS to supply status to the NMC.

         7.8.5.3.2. The SAN OAM interface shall forward SAN events to the NMS,

         7.8.5.3.3. The SAN OAM interface shall allow the NMS to:

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                  1. configure SAN event parameters.

                  2. initiate archiving of the SAN event data.

                  3. purge SAN event data.

                  4. access SAN event data.

         7.8.5.3.4. The SAN-OSS OAM interface shall provide access to parameters
         requiring configuration by the NMC.

7.8.5.4. FAULT MANAGEMENT

         7.8.5.4.1. The SAN-OSS OAM interface shall forward the raising and
         clearing of SAN-OSS alarms to the NMC, including the following:

                  1. Miscellaneous alarms.

                  2. Communication alarms.

                  3. Equipment alarms.

                  4. Processing error alarms.

                  5. Quality of service alarms.

                  6. Alarm Severity.

         7.8.5.4.2. Each SAN-OSS alarm forwarded to the NMC shall contain:

                  1. an object identifier unique to the SAN-OSS.

                  2. date and time of when the alarm was raised or cleared.

                  3. alarm description.

                  4. source of the alarm for the purpose of fault location.

         7.8.5.4.3. The SAN OAM interface shall allow the NMS to:

                  1. configure SAN alarm parameters.

                  2. initiate archiving of the SAN alarm data.

                  3. purge SAN alarm data.

                  4. access SAN alarm data using filters supplied by the NMS.

7.8.5.5. PERFORMANCE MANAGEMENT

         7.8.5.5.1. The SAN-OSS OAM interface shall allow the NMC to:

                  1. configure SAN-OSS performance parameters.

                  2. initiate archiving of the SAN-OSS performance data.

                  3. purge SAN-OSS performance data.

                  4. access SAN-OSS performance data using filters supplied by
                     the NMC.

                  5. configure periodic transfer of SAN performance data to NMS
                     using filters.

7.8.5.6. SECURITY MANAGEMENT

         7.8.5.6.1. The SAN-OSS OAM interface shall provide access control
         facilities to all SAN-OSS OAM interface functionality.

7.8.6. HIGH POWER NOTIFICATION

7.8.6.1. GENERAL DESCRIPTION

         7.8.6.1.1. High Power Notification delivers a short paging message to a
         user who is out of reach of the normal ICO communication services which
         are supported through line-of-sight satellite paths. The HPN service is
         a supplementary service that is triggered by failed mobile terminated
         (MT) short message delivery, and failed MT call attempts.

7.8.6.2. GENERAL REQUIREMENTS

         7.8.6.2.1. The HPN OAM interface shall provide the following software
         upgrade facilities:

                  1. download new versions of software from the NMS.

                  2. replace the current version of software with the new
                     version.

                  3. replace the current version of software with the previous
                     version.

                  4. extract existing software version information for the three
                     versions of software.

         7.8.6.2.2. The HPN OAM interface shall encompass the management of the
         HPN hardware and software which implements the HPN-SC, the HPN Channel
         Manager, the HPN Local SRMS and HPN Channel Unit functions.

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         7.8.6.2.3. The HPN OAM subsystem shall support an interface to the
         SAN-OSS, for receipt of global configuration parameters and providing
         fault and performance management information.

         7.8.6.2.4. The HPN OAM subsystem shall support an interface for an MMI
         to allow for local equipment control, and limited fault management.

         7.8.6.2.5. The HPN ChM shall be capable of uploading the event records
         to the NMC via the HPN OAM subsystem.

7.8.6.3. CONFIGURATION MANAGEMENT

         7.8.6.3.1. The HPN OAM interface shall:

                  1. allow the SAN-OSS to configure HPN event logging.

                  2. be used to report events to the SAN-OSS for archiving of
                     the HPN event data.

                  3. provide HPN request/delivery event logs for SAN-OSS
                     retrieval, via ftp

                  4. maintain HPN request/delivery logs for [7] days.

         7.8.6.3.2. The HPN OAM interface shall forward low storage threshold
         alarms when the available event data storage reaches a level specified
         by the operator at the MMI

         7.8.6.3.3. The HPN event data available through the HPN OAM interface
         shall consist of the following:

                  1. HPN request event records

                  2. HPN delivery event records.

         7.8.6.3.4. The HPN OAM interface shall provide access to HPN subsystem
         parameters requiring configuration by the NMS, such as:

                  1. number of micro-diversity retries for HPN messages.

                  2. period between micro-diversity retries for HPN messages.

                  3. number of macro-diversity retries for HPN messages.

                  4. period between macro-diversity retries for HPN messages

                  5. HPN satellite selection criteria

                  6. H/V algorithm parameters.

                  7. ICONET SAN administrative / operational status parameters.

         7.8.6.3.5. The HPN OAM interface shall allow an operator accessing
         remotely from the NMS to:

                  1. monitor the HPN to determine if the HPN is visible to the
                  network.

                  2. initiate start-up and shutdown procedures for elements
                  associated with the HPN.

                  3. enable/remove links from service.

         7.8.6.3.6. Test Message Generation

                  1. It shall be possible to instigate test messages across the
                  HPN service.

                  2. Pre-defined routine test messages shall be available and
                  easily activated from the NMC and SAN.

                  3. It shall be possible for authorised users to enter test
                  messages directly via the command line interface in emergency
                  situations.

7.8.6.4. FAULT MANAGEMENT

         7.8.6.4.1. The HPN OAM interface shall forward the raising and clearing
         of HPN alarms, associated with the five HPN functional subsystems
         (HPN-SC, HPN-ChM, HPN-Local SRMS, HPN OAM and HPN ChUs) to the NMS.
         This shall include alarms for the following:

                  1. Miscellaneous alarms.

                  2. Communication alarms.

                  3. Equipment alarms.

                  4. Processing error alarms.

                  5. Quality of service alarms.

                  6. Database update alarms.

                  7. Automatic database recovery initiated alarms.

                  8. Database threshold alarms.

                  9. Signalling failures on GSM interface links.

                  10. Excessive number of retries on GSM interface links.

         7.8.6.4.2. The HPN OAM interface shall forward the raising and clearing
         of Channel Manager alarms to the NMS including the following:

                  1. Miscellaneous alarms

                  2. Communication alarms

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                  3. Equipment alarms

                  4. Processing Error alarms

                  5. Quality of Service alarms

                  6. message arrival rate threshold exceeded

         7.8.6.4.3. The HPN OAM interface shall forward the raising and clearing
         of Channel Unit alarms to the NMS, including the following:

                  1. Communication alarms

                  2. Equipment alarms

                  3. Processing error alarms

                  4. Quality of Service alarms

         7.8.6.4.4. For each HPN alarm forwarded to SAN-OSS, the SAN-OSS shall
         save the following, and forward to the NMS:

                  1. an alarm identifier unique to the HPN.

                  2. date and time of when the alarm was raised or cleared.

                  3. alarm description.

                  4. source of the alarm for the purpose of fault location.

7.8.6.5. PERFORMANCE MANAGEMENT

         7.8.6.5.1. The HPN OAM interface shall allow the NMS to:

                  1. retrieve event logs for HPN message request/delivery

                  2. retrieve raw HPN statistics counters

         7.8.6.5.2. The HPN OAM interface shall forward low storage threshold
         alarms when the available performance data storage reaches a level
         specified by the NMS.

         7.8.6.5.3. The HPN performance data available through the HPN OAM
         interface shall include the following:

                  1. HPN Request records.

                  2. HPN Delivery records

                  3. Performance Statistics including:

                           a) number of successfully acknowledged HPN messages

                           b) number of failed short message delivery attempts
                              received

                           c) number of failed incoming call attempts received

                           d) number of macro-diversity attempts

                           e) number of successful HPN attempts/satellite

                           f) number of failed HPN attempts/satellite

                           g) number of HPN messages redirected to other SANs

         7.8.6.5.4. It shall be possible to display key summary performance data
         either locally at the HPN when a terminal is directly attached or
         remotely via a standardised remote login mechanism.

         7.8.6.5.5. It shall be possible to access all performance data stored
         in the HPN MIB from the SAN-OSS and from the NMC.

7.8.6.6. SECURITY MANAGEMENT

         7.8.6.6.1. The HPN OAM interface shall provide access control
         facilities to HPN OAM interface functionality.

7.8.7. PAYLOAD COMMAND SYSTEM

7.8.7.1. GENERAL DESCRIPTION

         7.8.7.1.1. In order to make the most effective use of satellite
         resources, the Satellite Resource Management Centre (SRMC) plans the
         frequency bandwidth, gain, etc. allocated to each spot beam as the
         satellite moves (the channelisation plan), taking into account expected
         traffic load. The payload configuration data or frequency plan is then
         downloaded to the appropriate SAN for uploading to the satellite.

7.8.7.2. GENERAL NETWORK MANAGEMENT REQUIREMENTS

         7.8.7.2.1. The interface between the PCS subsystem and the NMS shall be
         defined by a PCS to NMS Interface Control Document.

         7.8.7.2.2. The NMC shall send the Burst Time Frequency Plan (BTFP) to
         all SANs such that all SANs are supplied with a consistent and valid
         representation of the payload configuration.

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         7.8.7.2.3. The NMS shall take remedial action if the payload
         configuration is not consistent with that planned so as to maintain
         service.

         7.8.7.2.4. The NMC shall transfer spacecraft information collected by
         the PCS to the SRMC for the purposes of improving the use of the
         communications satellite resource planning. This information will
         consist of: [C and] S band power levels, Tropo and ALC alarms, and
         spacecraft command reject alarms.

7.8.7.3. NETWORK CONSISTENCY AND MANAGEMENT

         7.8.7.3.1. The NMS shall send to the PCS subsystem the time window
         within which the payload update is to be successfully loaded at the
         satellite.

         7.8.7.3.2. The NMS shall receive from the PCS subsystem the alarm
         indicating payload update failure (alarm shall include the last
         telemetered spacecraft sequence number value and reason for failure).

         7.8.7.3.3. The NMS shall monitor the data from the SRMS Telemetry (ST)
         from each satellite.

         7.8.7.3.4. Upon receipt of an alarm of inability to configure the
         payload, the NMC shall:

                  1. Log the event and alarm details.

                  2. Transfer the alarm information to the SCC if determined
                     that the spacecraft is in error.

                  3. Determine a contingency plan.

                  4. Implement the contingency plan.

         7.8.7.3.5. The NMC shall configure the PCS subsystems:

                  1. such that only one PCS subsystem can access each satellite
                     SRMS-SC channel at any one time

                  2. to control the information elements and the interval that
                     payload status information is transferred to the NMC

                  3. to control the PCS commanding repeat strategy in the event
                     of PCS command failure.

7.8.7.4. PAYLOAD CONSISTENCY AND MANAGEMENT

         7.8.7.4.1. The NMC shall archive the following Payload summary status
         information received from the PCS subsystem:

                  1. satellite power ([C and] S band)

                  2. Tropo detector events and ALC onsets

         7.8.7.4.2. The NMS shall select the appropriate SAN site PCS subsystem
         and transfer the channelisation plan needed to update the satellite
         payload to that PCS subsystem.

7.8.7.5. GENERAL OAM REQUIREMENTS

         7.8.7.5.1. The PCS OAM shall provide access to backup and restoration
         procedures associated with the PCS.

         7.8.7.5.2. The PCS OAM shall provide the following software upgrade
         facilities:

                  1. download new versions of software from the NMS.

                  2. replace the current version of software with the new
                     version.

                  3. replace the current version of software with the previous
                     version.

                  4. extract existing software version information for the three
                     versions of software.

         7.8.7.5.3. The PCS shall encompass the management of the PCS equipment
         and software comprising PCS Controller, Telemetry receiver, Port
         Synchroniser, SRMS Command Generator, Real Time HPN Command Generator,
         SRMS Command Modulator, HPN Command Modulator, etc.

7.8.7.6. CONFIGURATION MANAGEMENT

         7.8.7.6.1. The PCS OAM shall forward PCS events to the NMS and also
         status information to the HPN Channel Manager in the HPN subsystem.

         7.8.7.6.2. The PCS OAM shall allow the NMS to:

                  1. configure PCS event parameters.

                  2. initiate archiving of the PCS event data.

                  3. purge PCS event data.

                  4. access PCS event data.

                  5. configure the SAN antenna to be used for each satellite.

                  6. configure the information required for each PCS command
                     link for each satellite including:

                           7) satellite ID

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                  8) Payload h/w configuration

                  9) command link frequency

                  10) command link polarisation.

         7.8.7.6.3. The PCS OAM shall provide access to parameters requiring
         configuration by the NMS

7.8.7.7. FAULT MANAGEMENT

         7.8.7.7.1. The PCS OAM shall forward the raising and clearing of PCS
         alarms to the NMS, including the following:

                  1. Communication alarms.

                  2. Equipment alarms.

                  3. Processing error alarms.

                  4. ALC operation alarm.

                  5. transmission channel overdrive protection alarm.

                  6. satellite payload configuration mismatch.

         7.8.7.7.2. Each PCS alarm forwarded to the NMS shall contain:

                  1. an object identifier unique to the PCS.

                  2. date and time of when the alarm was raised or cleared.

                  3. alarm description.

                  4. source of the alarm for the purpose of fault location.

         7.8.7.7.3. The PCS OAM shall allow the NMS to:

                  1. configure PCS alarm parameters.

                  2. initiate archiving of the PCS alarm data.

                  3. purge PCS alarm data.

                  4. access PCS alarm data using filters supplied by the NMS.

7.8.7.8. PERFORMANCE MANAGEMENT

         7.8.7.8.1. The PCS OAM shall allow the NMS to:

                  1. configure PCS performance parameters.

                  2. initiate archiving of the PCS performance data.

                  3. purge PCS performance data.

                  4. access PCS performance data using filters supplied by the
                     NMS.

                  5. configure periodic transfer of PCS performance data to NMS
                     using filters.

         7.8.7.8.2. The PCS performance data available through the PCS OAM
         interface shall include the following:

                  1. SRMS commands received from the NMS and uploaded to the
                     satellite

                  2. Command transmission status (including number of upload
                     failures and retries)

                  3. HPN table command received from the NMS and uploaded to the
                     satellite

                  4. Satellite [C Band] S Band Power Level.

                  5. Topo Detector alarms and ALC Level.

7.8.7.9. SECURITY MANAGEMENT

         7.8.7.9.1. The PCS OAM shall provide access control facilities to all
         PCS OAM interface functionality.

7.8.8. RADIO FREQUENCY TERMINAL

7.8.8.1. GENERAL DESCRIPTION

         7.8.8.1.1. The RFT contains a local OAM. The RFT can also be monitored
         and operated via the SAN-OSS and via the NMC. In normal conditions the
         RFT is monitored by the NMC and also by the SCC for TT&C. In the event
         of serious space segment failures, the SCC may take direct control of
         the RFT equipment.

         7.8.8.1.2. The RFT OAM allows the operator to monitor and control the
         earth station radio terminal including the five tracking antennas and
         their associated subsystems, and the uplink and downlink chains.

         7.8.8.1.3. For the purposes of network management, the RFT OAM monitors
         the equipment that is shared with the TT&C subsystem at the co-located
         SAN/TT&C sites.

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         7.8.8.1.4. The RFT shall encompass the management of the RFT equipment
         and software comprising the ACU, De-ice, Tracking Down Converter,
         Tracking Demodulator, C-band-HPA, S-LNA, TX/RX Path Selector, etc.

7.8.8.2. GENERAL REQUIREMENTS

         7.8.8.2.1. The RFT OAM interface shall provide access to backup and
         restoration procedures associated with the RFT.

         7.8.8.2.2. The RFT OAM interface shall provide the following software
         upgrade facilities:

                  1. download new versions of software from the NMS.

                  2. replace the current version of software with the new
                     version.

                  3. replace the current version of software with the previous
                     version.

                  4. extract existing software version information for the three
                     versions of software.

         7.8.8.2.3. The RFT OAM shall be provided in a [hot standby] redundancy
         configuration.

         7.8.8.2.4. [The RFT OAM switchover shall not exceed 5 minutes].

         7.8.8.2.5. A logical link shall exist between the RFT OAM and the
         SAN-OSS to support the relevant information exchange (this shall
         include ephemeris data, etc.).

         7.8.8.2.6. A direct logical interface shall be provided between the RFT
         OAM and the SCC (e.g. through the TT&C ground equipment) to exchange
         alarm, control and status information.

         7.8.8.2.7. In emergency operation of the TT&C, the RFT OAM shall accept
         commands from the SCC only, and shall reject control attempts from the
         SAN-OSS, until the TT&C returns the control back to the SRMS
         controller.

         7.8.8.2.8. The antenna shall be capable of Program Tracking where the
         antenna shall track the satellite autonomously based on the satellite
         ephemeris generated by the SCC and distributed via the NMC.

         7.8.8.2.9. The RFT OAM system shall consist of two MMIs as a primary
         /secondary configuration in the central building.

         7.8.8.2.10. The RFT OAM system shall provide a capability to connect
         another MMI in one of the RFT shelters.

         7.8.8.2.11. The RFT OAM shall have the capability to present a
         graphical view of the RFT configuration chains and to send a command to
         change the parameters of RFT equipment.

         7.8.8.2.12. It shall be possible to send RFT configuration commands
         from the NMC or SAN-OSS to the RFT system.

         7.8.8.2.13. The RFT OAM shall provide an event logging function.

7.8.8.3. CONFIGURATION MANAGEMENT

         7.8.8.3.1. The RFT OAM shall maintain the database as to which
         satellite each RFT Antenna is currently tracking or prepared to track
         at the moment.

         7.8.8.3.2. The RFT OAM interface shall provide a facility for the RFT
         to supply status to the NMS, including the following:

         7.8.8.3.3. Antenna Control Unit:

                  1. Control Mode.

                  2. Drive Mode.

                  3. Auto Transfer.

                  4. Program transfer.

                  5. Auto Enable.

                  6. Program Enable.

                  7. AZ Drive.

                  8. EL Drive.

                  9. AZ Position.

                  10. EL Position.

                  11. Satellite Acquisition.

                  12. Program Start Time.

         7.8.8.3.4. De-ice:

                  1. Operation Mode.

                  2. Control Mode.

                  3. Main REF.

                  4. Sub REF.

                  5. Feed Horn.

                  6. Snow / ICE.

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                  7. Rain.

         7.8.8.3.5. Tracking Down Converter:

                  1. Operational Condition.

                  2. Control Mode.

                  3. Frequency.

         7.8.8.3.6. Tracking Demodulator:

                  1. Operational Condition.

                  2. Beacon Level.

                  3. PLL.

         7.8.8.3.7. C-Band High Power Amplifier:

                  1. Operational Condition.

                  2. Control Mode.

                  3. Output Power.

                  4. LV.

                  5. HV.

                  6. Pre-Heat.

         7.8.8.3.8. C-Band Low Noise Amplifier:

                  1. Operational Condition.

         7.8.8.3.9. Tx/Rx Path Selector:

                  1. Control Mode.

                  2. TX Path-A/B Selection.

                  3. RX Path-A/B Selection.

         7.8.8.3.10. TT&C Up Converter:

                  1. Operational Condition.

                  2. Control Mode.

                  3. Frequency.

         7.8.8.3.11. TT&C Down Converter:

                  1. Operational Condition.

                  2. Control Mode.

                  3. Frequency.

         7.8.8.3.12. Switch:

                  1. Control Mode.

                  2. SW Status.

         7.8.8.3.13. C-Band Up Converter:

                  1. Operational condition.

         7.8.8.3.14. C-Band Down Converter:

                  1. Operational condition.

         7.8.8.3.15. Automatic Frequency Compensation:

                  1. Operational Condition.

                  2. Control Mode.

                  3. Pilot Frequency-1.

                  4. Pilot Frequency-2.

                  5. Pilot-1 Lock Status.

                  6. Pilot-2 Lock Status.

                  7. Hold Time.

         7.8.8.3.16. 5/7GHz Translator:

                  1. Operational Condition.

                  2. Control Mode.

                  3. Local Frequency.

         7.8.8.3.17. RFT Summary:

                  1. Operational Condition.

         7.8.8.3.18. The RFT OAM interface shall provide a facility for the TT&C
         to supply status to the NMS, including the following:

         7.8.8.3.19. TT&C upconverters:

                  1. Operational condition.

                  2. Frequency.

                  3. Upconverter number.

         7.8.8.3.20. TT&C downconverters:

                  1. Operational condition.

                  2. Frequency.

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                  3. Down converter number.

         7.8.8.3.21. The RFT OAM interface shall forward RFT events to the NMS.

         7.8.8.3.22. The RFT OAM interface shall allow the NMS to:

                  1. configure RFT event parameters.

                  2. purge RFT event data.

                  3. access RFT event data.

     7.8.8.3.23. The RFT OAM interface shall provide access to parameters
     requiring configuration by the NMS, including the following:

         7.8.8.3.24. Antenna Control Unit:

                  1. Drive Mode.

                  2. Auto Transfer.

                  3. Program transfer.

                  4. AZ Position.

                  5. EL Position.

                  6. Program Start Time.

                  7. Program parameter.

         7.8.8.3.25. De-ice:

                  1. Operation Mode.

                  2. Main REF.

                  3. Sub REF.

                  4. Feed Horn.

         7.8.8.3.26. Tracking Down Converter:

                  1. Frequency.

         7.8.8.3.27. C-Band High Power Amplifier:

                  1. LV.

                  2. HV.

                  3. Alarm Reset.

         7.8.8.3.28. Tx/Rx Path Selector:

                  1. TX Path-A/B Selection.

                  2. RX Path-A/B Selection.

         7.8.8.3.29. TT&C Up Converter:

                  1. Frequency.

         7.8.8.3.30. TT&C Down Converter:

                  1. Frequency.

         7.8.8.3.31. Switch:

                  1. SW Status.

         7.8.8.3.32. 5/7GHz Translator:

                  1. Local Frequency.

     7.8.8.3.33. The RFT OAM interface shall provide access to TT&C parameters
     requiring configuration by the NMS.

7.8.8.4. FAULT MANAGEMENT

     7.8.8.4.1. The RFT OAM interface shall forward the raising and clearing of
     RFT alarms to the NMS, including the following:

     7.8.8.4.2. Communication alarms.

     7.8.8.4.3. Antenna Control Unit:

                  1. Link.

                  2. Operational Condition.

                  3. Emergency Stop.

                  4. AZ Drive Fault.

                  5. EL Drive Fault.

                  6. Angle Fault.

                  7. Low EL.

                  8. Up Limit.

                  9. Down Limit.

                  10. CW Limit.

                  11. CCW Limit.

                  12. Dehydrator Alarm.

     7.8.8.4.4. De-ice:

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                  1. Major ALM.

                  2. Minor ALM.

         7.8.8.4.5. Tracking Down Converter:

                  1. Operational Condition.

         7.8.8.4.6. Tracking Demodulator:

                  1. Operational Condition.

                  2. Beacon Level Alarm.

         7.8.8.4.7. C-Band High Power Amplifier:

                  1. Link.

                  2. Operational Condition.

                  3. RF CCT Alarm.

                  4. Cooling Alarm.

                  5. INTLK Alarm.

                  6. PS Alarm.

                  7. Low RF.

         7.8.8.4.8. C-Band Low Noise Amplifier:

                  1. Operational Condition.

         7.8.8.4.9. Tx/Rx Path Selector:

                  1. Link.

                  2. Path SEL Alarm.

         7.8.8.4.10. TT&C Up Converter:

                  1. Operational Condition.

         7.8.8.4.11. TT&C Down Converter:

                  1. Operational Condition.

         7.8.8.4.12. C-Band Up Converter:

                  1. Operational Condition.

         7.8.8.4.13. C-Band Down Converter:

                  1. Operational Condition.

         7.8.8.4.14. Automatic Frequency Compensation:

                  1. Operational Condition.

         7.8.8.4.15. 5/7Ghz Translator:

                  1. Operational Condition.

         7.8.8.4.16. S-Band SSPA:

                  1. Operational Condition.

         7.8.8.4.17. S-Band Low Noise Amplifier:

                  1. Operational Condition.

         7.8.8.4.18. Miscellaneous Alarm:

                  1. Air Conditioner.

                  2. Fire Alarm.

         7.8.8.4.19. RFT Summary:

                  1. Operational Condition.

         7.8.8.4.20. The RFT OAM interface shall forward the raising and
         clearing of TT&C alarms to the NMS, including the following:

         7.8.8.4.21. Equipment alarms [TT&C baseband equipment summary alarm].

         7.8.8.4.22. Each RFT alarm forwarded to the NMS shall contain:

                  1. an object identifier unique to the RFT.

                  2. date and time of when the alarm was raised or cleared.

                  3. alarm description.

         7.8.8.4.23. The RFT OAM interface shall allow the NMS to configure RFT
         alarm parameters.

7.8.8.5. PERFORMANCE MANAGEMENT

         7.8.8.5.1. The RFT OAM interface shall allow the NMS to:

                  1. configure RFT performance parameters.

                  2. purge RFT performance data.

                  3. access RFT performance data using filters supplied by the
                  NMS.

                  4. configure periodic transfer of RFT performance data to NMS
                  using filters.

         7.8.8.5.2. The RFT performance data available through the RFT OAM
         interface shall include threshold exceeding data statistics.

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7.8.8.6. SECURITY MANAGEMENT

         7.8.8.6.1. The RFT OAM interface shall provide access control
         facilities to all RFT OAM interface functionality.

7.8.9. SATELLITE BASE STATION

7.8.9.1. GENERAL DESCRIPTION

         7.8.9.1.1. The Satellite Base Station is responsible for the monitoring
         and management of the Satellite Access Subsystem and the Satellite
         Processing Subsystem. The Satellite Access Subsystem consists of the
         channel units and their associated elements. The Satellite Processing
         Subsystem consists of the channel manager and its associated elements.
         The SBS domain also includes the OAM systems for the internal SBS
         Ethernet switch and GPS Receiver systems.

         7.8.9.1.2. SBS OMC (Operations and Maintenance Centre) hosts the
         logical functions for SBS OAM, ChU OAM, CM OAM and RTRM OAM. The SBS
         OMC includes element management for CM, ChU, RTRM and SBS Ethernet
         Switch.

7.8.9.2. GENERAL REQUIREMENTS

         7.8.9.2.1. The SBS OAM interface shall provide access to backup and
         restoration procedures associated with the SBS.

         7.8.9.2.2. The SBS OAM interface shall provide the following software
         upgrade facilities:

                  1. download new versions of software from the NMS.

                  2. replace the current version of software with the new
                     version.

                  3. replace the current version of software with the previous
                     version.

                  4. extract existing software version information for the three
                     versions of software.

         7.8.9.2.3. The SBS OAM interface shall allow the NMS to:

                  1. configure SBS resource usage parameters.

                  2. initiate archiving of the SBS resource usage data.

                  3. purge SBS resource usage data.

                  4. access SBS resource usage data using filters supplied by
                     the NMS.

         7.8.9.2.4. The SBS OMC shall use an industry standard remote window
         protocol for displaying all SBS control and configuration applications
         on the SAN-OSS console.

         7.8.9.2.5. The SBS OMC shall use an industry standard network
         management protocol to forward events and alarms to the SAN-OSS.

         7.8.9.2.6. The SBS OMC shall transfer bulk statistics to the SAN-OSS
         via industry standard file transfer protocol. The transfer shall occur
         automatically on a timed schedule or via SBS OMC operator command.

7.8.9.3. CONFIGURATION MANAGEMENT

         7.8.9.3.1. The SBS OAM interface shall provide a facility for the SBS
         to supply status to the NMS, including the following:

                  1. Channel Units.

                  2. Channel Manager.

                  3. Call Processor.

                  4. Channel Processor.

                  5. Switching and Transcoding Module (STM).

                  6. E1 Cards.

                  7. T1 Cards.

                  8. Ethernet Cards.

                  9. RTRM.

         7.8.9.3.2. The SBS OAM interface shall forward SBS events to the NMS.

         7.8.9.3.3. The SBS OAM interface shall allow the NMS to:

                  1. configure SBS event parameters.

                  2. initiate archiving of the SBS event data.

                  3. purge SBS event data.

                  4. access SBS event data.

         7.8.9.3.4. The SBS OAM interface shall provide access to parameters
         requiring configuration by the NMS.

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         7.8.9.3.5. The SBS OAM interface shall provide access to Channel
         Manager parameters requiring configuration by the NMS, including the
         following:

                  1. Traffic switching between air interface and MSSC.

                  2. Ciphering control.

         7.8.9.3.6. The SBS OAM interface shall provide access to Channel Unit
         parameters requiring configuration by the NMS, including the
         following:

                  1. Operational state.

                  2. Software download.

         7.8.9.3.7. The SBS OAM interface shall provide access to RTRM
         parameters requiring configuration by the NMS, including the
         following:

                  1. threshold for disk utilisation.

7.8.9.4. FAULT MANAGEMENT

         7.8.9.4.1. The SBS OAM interface shall forward the raising and
         clearing of SBS alarms to the NMS, including the following:

                  1. Communication alarms.

                  2. Equipment alarms.

                  3. Processing error alarms.

                  4. Quality of service alarms.

         7.8.9.4.2. The SBS OAM interface shall forward the raising and
         clearing of Channel Manager alarms to the NMS, including the
         following:

                  1. Communication alarms.

                  2. Equipment alarms.

                  3. Processing error alarms.

         7.8.9.4.3. The SBS OAM interface shall forward the raising and
         clearing of Channel Unit alarms to the NMS, including the following:

                  1. Communication alarms.

                  2. Equipment alarms.

                  3. Processing error alarms.

         7.8.9.4.4. The SBS OAM interface shall forward the raising and
         clearing of RTRM alarms to the NMS including the following:

                  1. Communication alarms.

                  2. Equipment alarms.

                  3. Processing error alarms.

                  4. Disk utilisation exceeds threshold.

         7.8.9.4.5. Each SBS alarm forwarded to the NMS shall contain:

                  1. an object identifier unique to the SBS.

                  2. date and time of when the alarm was raised or cleared.

                  3. alarm description.

                  4. source of the alarm for the purpose of fault location.

         7.8.9.4.6. The SBS OAM interface shall allow the NMS to:

                  1. configure SBS alarm parameters.

                  2. initiate archiving of the SBS alarm data.

                  3. purge SBS alarm data.

                  4. access SBS alarm data using filters supplied by the NMS.

7.8.9.5. PERFORMANCE MANAGEMENT

         7.8.9.5.1. The SBS OAM interface shall allow the NMS to:

                  1. configure SBS performance parameters.

                  2. initiate archiving of the SBS performance data.

                  3. purge SBS performance data.

                  4. access SBS performance data using filters supplied by the
                     NMS.

                  5. configure periodic transfer of SBS performance data to
                     NMS.

         7.8.9.5.2. The SBS performance data available through the SBS OAM
         interface shall include the following:

                  1. Channel Unit performance statistics.

                  2. Channel Manager performance statistics.

                  3. Number of channel requests.

                  4. Diversity allocation attempts.

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                  5. Page requests.

                  6. Number of beam handovers.

                  7. Number of satellite handovers.

                  8. Number of channel units in use (traffic/control).

                  9. Number of active calls.

                  10. Number of failed calls due to hand-off failures.

         7.8.9.5.3. The Channel Manager performance data available through the
         SBS OAM interface shall include the following:

                  1. Internal Handovers with successful re-establishment per
                     ChM.

                  2. Internal Handovers without successful re-establishment per
                     ChM.

                  3. Total requests for connections.

                  4. Total paging messages per ChM.

         7.8.9.5.4. The Channel Unit performance data available through the SBS
         OAM interface shall include the following:

                  1. Processor utilisation.

                  2. Burst plans.

         7.8.9.5.5. The RTRM performance data available through the SBS OAM
         interface shall include the following:

                  1. Number of channel units in use.

                  2. Number of active channels.

                  3. Number of channel handover attempts.

                  4. Number of channel handover failures.

                  5. Attempted handovers over beam, frequency, z-arc, satellite.

                  6. Failed handovers over beam, frequency, z-arc, satellite.

         7.8.9.5.6. The performance measurements recorded by the SBS and
         available through the SAN-OSS OAM interface shall include the
         information to allow the calculation of:

                  1. total call (radio session) holding time categorised by UT
                     location, mobile-originated or mobile-terminated, [service
                     type], class of diversity, time and date.

                  2. total call (radio session) count (attempts and completion)
                     categorised by UT location, mobile-originated or
                     mobile-terminated, [service type], class of diversity, time
                     and date.

         7.8.9.5.7. The call (radio session) attempt count shall include ones
         that are blocked by the lack of frequency resources. The interval and
         resolution of measurements shall be chosen so that the measurement data
         can be efficiently utilised for traffic planning at the SRMC.

         7.8.9.5.8. The performance measurements, identified above, recorded by
         the SBS shall be made available to the SRMC though the SAN-OSS.

         7.8.9.5.9. Any Radio Session statistics data will be collected and
         reported on a per SBS basis, and will not span a SAN-to-SAN handover.

7.8.9.6. SECURITY MANAGEMENT

         7.8.9.6.1. Access through the SBS OAM interface shall be controlled
         using password-based logins and feature control lists for SBS
         applications.

7.8.10. TERRESTRIAL NETWORK MANAGER

7.8.10.1. GENERAL DESCRIPTION

         7.8.10.1.1. Each SAN has a Terrestrial Network Manager (TNM) to provide
         ICO-net routing, optimisation and vocoding functions. The TNM system
         interfaces between the MSSCs and the Channel Managers. The TNM routes
         calls to SANs, and invisibly to the MSSC and Channel Managers, and
         provides multiplexing for Inter-Site links and vocoding for Air
         Interface transmission via the Channel Managers.

         7.8.10.1.2. The TNM will also manage the DCN (refer to Section 7.8.11).

7.8.10.2. GENERAL REQUIREMENTS

         7.8.10.2.1. The TNM OAM interface shall provide access to backup and
         restoration procedures associated with the TNM.

         7.8.10.2.2. TNM OAM failure switchover shall be automatic.

         7.8.10.2.3. The TNM OAM interface shall provide the following software
         upgrade facilities:

                  1. download new versions of software from the NMS.

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                  2. replace the current version of software with the new
                     version.

                  3. replace the current version of software with the previous
                     version.

                  4. extract existing software version information for the above
                     three versions of software.

7.8.10.3. CONFIGURATION MANAGEMENT

         7.8.10.3.1. The TNM OAM interface shall provide a facility for the TNM
         to supply status to the NMS, including the following:

                  1. RPC.

                  2. RPN.

                  3. MUX/Vocoder.

                  4. intersite route health status for the SAN.

         7.8.10.3.2. The TNM OAM interface shall forward TNM events to the NMS

         7.8.10.3.3. The TNM OAM interface shall allow the NMS to:

                  1. configure TNM event parameters.

                  2. initiate archiving of the TNM event data.

                  3. purge TNM event data.

                  4. access TNM event data.

         7.8.10.3.4. The TNM OAM interface shall provide access to parameters
         requiring configuration by the NMS, including the following:

                  1. RPC.

                  2. RPN.

                  3. MUX/Vocoder.

                  4. intersite routing tables.

7.8.10.4. FAULT MANAGEMENT

         7.8.10.4.1. The TNM OAM interface shall forward the raising and
         clearing of TNM alarms to the NMS, including the following:

                  1. Communication alarms.

                  2. Equipment alarms.

                  3. Processing error alarms.

                  4. Quality of service alarms.

         7.8.10.4.2. Each TNM alarm forwarded to the NMS shall contain:

                  1. an object identifier unique to the TNM

                  2. date and time of when the alarm was raised or cleared.

                  3. alarm description.

                  4. source of the alarm for the purpose of fault location.

         7.8.10.4.3. The TNM OAM interface shall allow the NMS to:

                  1. configure TNM alarm parameters.

                  2. initiate archiving of the TNM alarm data.

                  3. purge TNM alarm data.

                  4. access TNM alarm data using filters supplied by the NMS.

         7.8.10.4.4. The TNM OAM shall support alarm filtering.

         7.8.10.4.5. The TNM OAM shall support the same number of alarm severity
         levels (critical, major, minor, warning as referred to in Section 7.3)
         as the SAN-OSS for the purpose of categorising alarms displayed at an
         MMI.

7.8.10.5. PERFORMANCE MANAGEMENT

         7.8.10.5.1. The TNM OAM interface shall allow the NMS to:

                  1. configure TNM performance parameters.

                  2. initiate archiving of the TNM performance data.

                  3. purge TNM performance data.

                  4. access TNM performance data using filters supplied by the
                  NMS.

         7.8.10.5.2. configure periodic transfer of TNM performance data to NMS
         using filters.

7.8.10.6. SECURITY MANAGEMENT

         7.8.10.6.1. The TNM OAM interface shall provide access control
         facilities to all TNM OAM interface functionality.

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7.8.11. DIGITAL COMMUNICATION NETWORK

7.8.11.1. GENERAL

         7.8.11.1.1. The Digital Communication Network (DCN) is described in
         Section 6.5.

         7.8.11.1.2. The DCN is integrated with the TNM OAM and forms part of
         the TNM OAM interface.

         7.8.11.1.3. The management of the DCN and DCN components shall be the
         responsibility of the local TNM. The TNM OAM interface to the SAN-OSS
         and NMC shall support the DCN management functions. The DCN management
         functions shall include the functionalities listed below and in
         Sections 7.8.11.2, 7.8.11.3 and 7.8.11.4:

                  1. Each SAN DCN Encryption Device

                           a. Normal/Fail

                           b. I/O stream Normal/Fail

                           c. [Bypass/Normal]

                           d. [Configuration status]

                  2. Each SAN DCN Router/Bridge

                           a. Normal/Fail

                           b. Link Fail Alarm (if provided by selected
                              equipment)

                           c. Router statistics (via text dump, information
                              provided will be vendor dependent)

                           d. Router Table Display (via text dump)

                           e. Router Table Load (via file download)

                  3. Each SAN TNM DCN MUX

                           a. Normal/Fail

                           b. I/O stream Normal/Fail

                           c. Configuration status

                           d. Configuration change

                           e. [Diagnostics]

                  4. TNM OAM Aggregated Status

                           a. DCN Direction/Route Normal/Fail (e.g. Dir A, Route
                              B Fail)

                           b. TNM Communications Timeout (link health check).

7.8.11.2. CONFIGURATION MANAGEMENT

         7.8.11.2.1. The TNM OAM shall provide a facility for the TNM to supply
         status to the NMS including the following:

                  1. [DCN Encryption Device] at each SAN, at the NMCs and at the
                     OT&DF (if provided);

                  2. TNM DCN MUX at each SAN, at the NMCs and at the OT&DF (if
                     provided);

                  3. TNM Communications Timeout (link health check);

                  4. DCN Direction/Route status

         7.8.11.2.2. The TNM OAM shall provide a facility for the DCN
         Router/Bridge at each SAN, at the NMCs and at the OT&DF (if provided)
         to display the Router Table.

         7.8.11.2.3. The TNM OAM interface shall provide the facility to
         download the Router Table (for the DCN Router/Bridge at each SAN, at
         the NMCx and at the OT&DF (if provided)) from the NMS.

         7.8.11.2.4. The TNM OAM interface shall provide a facility for the NMS
         to change the configuration of the DCN Router/Bridge at each SAN, at
         the NMCs and at the OT&DF (if provided) and [of the DCN Encryption
         Device at each SAN, at the NMCs and at the OT&DF (if provided)].

         7.8.11.2.5. The TNM OAM interface shall provide a facility for the NMS
         to get/set the enabled/disabled status of the encryption on each link
         (DCN Encryption Device Bypass/Normal).

7.8.11.3. FAULT MANAGEMENT

         7.8.11.3.1. The TNM OAM interface shall forward to the NMS the raising
         and clearing of the alarms, including the following:

                  1. DCN Encryption Device at each SAN, at the NMCs and at the
                     OT&DF (if provided);

                  2. I/O stream for the DCN Encryption Device at each SAN, at
                     the NMCs and at the OT&DF (if provided);

                  3. DCN Router/Bridge failure at each SAN, at the NMCs and at
                     the OT&DF (if provided);

                  4. DCN Router Bridge Link Failure;

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                  5. TNM DCN MUX failure at each SAN, at the NMCs and at the
                     OT&DF (if provided);

                  6. I/O stream for the TNM DCN Mux at each SAN, at the NMCs and
                     at the OT&DF (if provided);

                  7. TNM Communication Timeout;

                  8. DCN Direction/Route Alarm.

         7.8.11.3.2. [The TNM OAM interface shall provide diagnostics
         information for the TNM DCN MUX at each SAN, at the NMCs and at the
         OT&DF (if provided)].

7.8.11.4. PERFORMANCE MANAGEMENT

         7.8.11.4.1. The TNM OAM interface shall support access to router
         generated statistics for the DCN Router/Bridge at every SAN, at the
         NMCs and at the OT&DF (if provided).

         7.8.11.4.2. (F/R) Typical DCN performance data to be reported to the
         NMS shall include:

                  1. network congestion;

                  2. error rate;

                  3. latency.

7.8.12. ICONET SYNCHRONISATION SYSTEM

7.8.12.1. GENERAL DESCRIPTION

         7.8.12.1.1. Accurate timing/frequency synchronisation between elements
         of the ground network, radio/satellite and interconnecting terrestrial
         networks needs to be accomplished in order to support the mobile
         services being provided. At the system level the NMC requires to be
         able to control, audit and manage the network synchronisation as
         identified in Section 6.25.1. For this purpose, the synchronisation
         system is to be treated as a logical network element.

         7.8.12.1.2. At the physical level, timing devices may well be
         integrated into the various network elements (e.g. SBS, TNM, etc.) and
         hence be monitored and managed by the controlling OAM. (SBS OAM, TNM
         OAM, etc.). However, this management needs to be pulled together and
         co-ordinated in order to provide a higher level view of the
         synchronisation subsystem at both the SAN-OSS and NMC. In addition,
         should additional external synchronisation devices be necessary then
         these will need to be managed through the synchronisation system OAM.

7.8.12.2. GENERAL REQUIREMENTS

         7.8.12.2.1. From the NMC it shall be possible to graphically determine
         the hierarchical synchronisation network architecture being employed
         (e.g. active primary reference clock systems) and the real time status
         (e.g. GPS receiver device status, etc.).

         7.8.12.2.2. The NMC shall support an interface to the SCC for the
         receipt of ephemeris data to be transferred to the SAN SRMS for delay
         estimation purposes as outlined in Section 6.25.1.3.

         7.8.12.2.3. The following management functions in 7.8.12.3 to 7.8.12.6
         shall be applicable where provided by the network elements

7.8.12.3. CONFIGURATION MANAGEMENT

         7.8.12.3.1. From the NMC it shall be possible to activate
         re-synchronisation procedures in the case of fault and alarm conditions
         (timing deviations) being reported across the system.

         7.8.12.3.2. From the NMC it shall be possible to introduce changes to
         the synchronisation mechanism with the minimal of disruption (i.e.
         switching to back-up or alternate timing sources, switching to another
         SAN timing mechanism, etc.). This configuration capability shall exist
         to the element level.

         7.8.12.3.3. Switchover to primary and/or secondary timing sources shall
         be co-ordinated with the NMC beforehand (normal operation) or the NMC
         shall be notified immediately afterwards (emergency operation).

         7.8.12.3.4. It shall be possible to undertake configuration audits
         concerning the synchronisation system from the NMC for tracing and
         investigative purposes.

         7.8.12.3.5. Procedures shall be in place to routinely test and check
         redundant and secondary synchronisation systems.

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7.8.12.4. FAULT MANAGEMENT

         7.8.12.4.1. Devices making up the synchronisation system shall be
         continually monitored for fault and alarm conditions (e.g. device
         failures, etc.).

         7.8.12.4.2. It shall be possible to configure fault thresholds to
         report aspects such as timing deviation levels, update rates, etc. from
         the NMC (global) or SAN-OSS (local).

         7.8.12.4.3. The SAN-OSS shall filter and co-ordinate synchronisation
         data from the various timing devices and provide a summary of fault and
         alarm reporting to the NMC.

7.8.12.5. PERFORMANCE MANAGEMENT

         7.8.12.5.1. The SAN-OSS shall collate and conduct suitable trend
         analysis on performance data concerning the synchronisation elements.

         7.8.12.5.2. The NMC shall collate and conduct suitable trend analysis
         on reported synchronisation performance data across the ICONET and
         report conformance against the active network synchronisation plan.

         7.8.12.5.3. Measurement and reporting of conformance of the
         synchronisation system against the criteria set in Section 6.25 shall
         be available (e.g. timing accuracy measures, stability, etc.).

7.8.12.6. SECURITY MANAGEMENT

         7.8.12.6.1. Access control mechanisms shall be implemented concerning
         the synchronisation mechanism.

         7.8.12.6.2. Access through the Synchronisation System OAM shall be
         controlled using password-based logins.

7.8.13. C-C SUBSYSTEM

         7.8.13.1. It shall be possible for the NMS to:

                  a) Display C-C link assignments per site (e.g. frequency,
                     power)

                  b) monitor status of C-C link

                  c) [Control and] Manage C-C frequency/power allocation, as the
                     equipment allows.

7.8.14. ICO ADMINISTRATIVE DATA CENTRE

         7.8.14.1. The ICO Administrative Data Centre (ADC) is involved in the
         activities of provisioning, billing, partner care and legal
         interception.

         7.8.14.2. The ADC shall provide its status to the NMS at all times. Any
         fault in the ADC shall be notified to the NMS

         7.8.14.3. NMS shall perform a Health Check to the ADC periodically. The
         time interval shall be operator configurable.

         7.8.14.4. Any CDR Log Alarm detected by the ADC shall be notified to
         the NMS,

         7.8.14.5. Billing related complaints which can not be resolved at the
         ADC shall be forwarded to the NMS for possible resolution via call
         tracing facility at the NMS.

         7.8.14.6. Relevant CDRs shall be sent from the ADC to the NMS.

         7.8.14.7. Service affecting alarms shall be notified from the NMS to
         the I-ADC.

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8. PERFORMANCE REQUIREMENTS

8.1. CONDITIONS FOR PERFORMANCE REQUIREMENTS

         8.1.1. Except where otherwise stated, all performance requirements
         shall be measured under the "Initial Value" load defined in Table 9-1
         of Section 9.2.

8.2. BASIC QUALITY OF SERVICE

8.2.1. IGF VOICE LOOP DELAY

         8.2.1.1. This is defined as the time from the inlet to the MSSC (4 wire
         mode) through the local TNM and via a remote TNM to the remote SBS
         output looped back at IF through the same SBS and the same TNM back to
         the MSSC inlet, in accordance with Test Configuration No. 2. The
         distance between the local TNM and the remote TNM shall be negligible.
         The transmitting channel unit shall be configured for the modulation
         scheme to be the same as the receiving channel unit.

         8.2.1.2. The average IGF voice loop delay shall be less than 290
         milliseconds assuming no other traffic.

8.2.2. SPEECH QUALITY IN MOS

         8.2.2.1. This shall be measured using a test path as defined for the
         one way transmission delay time.

         8.2.2.2. Value of speech quality shall be not less than [0.2] MOS less
         than the value achieved from a test of the vocoder algorithm connected
         in the standard manufacturer's supply environment hardware.

8.2.3. PROBABILITY OF CALL LOSS

         8.2.3.1. For a call passing via an MSSC, the local TNM and local SBS
         to a UT via a satellite channel simulator, and subjected to blockage
         according to the channel blockage model defined below the probability
         of call loss excluding failures on the terrestrial side of the MSSC and
         errors in the UT shall be no greater than [0.1]% per minute of call
         holding time provided the radio link timer is set to more than 10
         seconds and there are no other radio link impairments.

         8.2.3.2. The channel blockage model for this requirement shall be one
         in which the radio link has no more than 10 second blockage in a single
         interruption and no more than 15 seconds aggregate blockage in a
         minute.

8.2.4. HANDOVER PERFORMANCE

8.2.4.1. HANDOVER INITIATION DELAY

         8.2.4.1.1. The handover initiation delay is defined as the period from
         the moment the handover decision is made to the first bit of "Handover
         Command" is sent out of the SAN antenna to the UT. The required
         execution times are:

                  1. Intra Channel Manager: no more than 1 second for 95% of the
                     time.

                  2. Inter-Channel Manager (same SBS): no more than 3 seconds
                     for 95% of the time.

                  3. Inter-SBS: no more than 6 seconds for 95% of the time. The
                     distance between the two SAN sites is assumed to be no more
                     than 15,000km.

8.2.5. HANDOVER PERFORMANCE

         8.2.5.1. The probability of the success of the complete Handover
         procedure shall be 99.5% providing the resources are available and
         excluding errors in the UT and propagation errors.

         8.2.5.2. In the procedure for handover by channel re-assignment, the
         duration from the receipt of the Reassignment Complete at SBS to the
         re-connection of the traffic communication path shall not exceed:

              1. Inter Channel Manager (same SBS)     [40 msec] for 95% of time

              2. Inter SBS                            [80 msec] for 95% of time.

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8.3. SMS QUALITY OF SERVICE

8.3.1. DELIVERY TIME

         8.3.1.1. The delivery time for a short message from the entry point of
         the SMSC to the output of the SMSC shall be no greater than 10 seconds
         for 95% of the time under the busy hour loading condition as defined in
         Table 9-1 of Section 9.2.

8.3.2. PROBABILITY OF SMS NON-DELIVERY ON EACH DELIVERY ATTEMPT.

         8.3.2.1. The SMSC shall not lose any SMS message at any time under
         normal operating conditions and under the busy hour loading condition
         as defined in Table 9-1 of Section 9.2.

8.4. AUTOMATIC FACSIMILE GROUP 3 (UP TO 9600BPS) QUALITY OF SERVICE

8.4.1. TRANSPARENT MODE

         8.4.1.1. The one way transmission delay shall be no greater than [300]
         msec, assuming lowest delay slot assignment, for Test Configuration No.
         2

         8.4.1.2. The probability of lost calls (% per minute of call holding
         time) shall be no greater than 0.1% without noise injection

8.5. CIRCUIT MODE DATA (UP TO 9600BPS) QUALITY OF SERVICE

8.5.1. TRANSPARENT MODE

         8.5.1.1. The one way transmission delay shall be no greater than [300]
         msec rms, assuming lowest delay slot assignment, for Test Configuration
         2

         8.5.1.2. The probability of lost calls (% per minute of call holding
         time) shall be no greater than 0.1% without noise injection

8.5.2. NON-TRANSPARENT MODE

         8.5.2.1. The one way transmission delay shall be no greater than [300]
         msec rms, assuming lowest delay slot assignment, and no retransmissions
         for Test Configuration 2.

         8.5.2.2. The probability of lost calls (% per minute of call holding
         time) shall be no greater than 0. 1 % without noise injection.

8.6. CIRCUIT MODE DATA (GREATER THAN 9600BPS) QUALITY OF SERVICE (TBD)

8.7. HPN QUALITY OF SERVICE

8.7.1. HPN IDLE MODE

         8.7.1.1 The IGF shall allow a UT in HPN coverage and conformant with
         the Al specifications to maintain HPN operation with a duty cycle of
         [0.5]%.

8.7.2. HPN MESSAGE DELAY

         8.7.2.1 The HPN subsystem shall have an average delay in transmitting a
         double length burst message, for e.g. SMS notification, or a quadruple
         length burst message, for e.g. failed MT call, including CLI, for the
         first delivery attempt (at 90% system capacity) of less than 3 or 4
         minutes respectively; from the time that the message is received at the
         HPN-SC. The above condition shall be met when there are no pending
         messages for the UT at the HPN-SC.

8.7.3. HPN CAPACITY

         8.7.3.1 The NMC SRMC and HPN subsystems shall support the mechanisms in
         the Air Interface to allow a variable HPN capacity.

         8.7.3.2 The MSSC and HPN subsystem at each SAN shall support delivery
         of the following new message rates at each SAN:

                  1. 3 HPN escalations / sec due to failed MT-SMS

                  2. 6 HPN esacalations / sec due to failed MT call attempts.

         8.7.3.3 The HPN subsystem shall modify message repeat mechanisms and
         flow control to prevent significant performance degradation in the
         event of over-loading.

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         8.7.3.4 The HPN subsystem shall allow highly non-uniform message
         distribution with up to [1/4] of the traffic able to be handled in any
         one beam.

8.7.4. HPN TRANSMITTER AND RECEIVER CHARACTERISTICS

         8.7.4.1 The HPN transmit channel units shall be capable of tuning to
         any IF frequency retuning to any frequency within a +/- 220 kHz offset
         from any valid HPN transmit frequency to a resolution of less than 10Hz
         and shall stabilise within 10 micro sec from receipt of a retuning
         command.

         8.7.4.2 The HPN receiver shall have the following characteristics for
         the ACK/HP channel.

         1. False Alarm Rate            less than 0.001

         2. Detection Probability       greater than [92] %

         3. Receive Frequency
            Uncertainty                 +/- 2.5 kHz

         4. Receive burst Timing
            Uncertainty                 +/- 2.5 msec

         5. Channel Fading Bandwidth    30 Hz                      AWGN

         6. Received Phase Noise        6 degrees rms              6 degrees rms

         7. Receiver Signal Level       [41.5] dB Hz               [31.5]dB Hz

8.8. GSM SUPPLEMENTARY SERVICES QUALITY OF SERVICE

8.8.1. TIME TO INVOKE OR CHANGE A SUPPLEMENTARY SERVICE

         8.8.1.1. The maximum time from initiating a Supplementary Service
         Request until when this service has become available or changed (as
         requested by the user), including authentication, if required, shall be
         no greater than 400 msec.

8.9. SECTION NOT USED

8.10. SBS PERFORMANCE

8.10.1. CHANNEL ASSIGNMENT DELAY (RACH TO AGCH)

         Definition

         8.10.1.1. Start instant: Input of the last bit of the RACH into the RFT
         antenna.

         8.10.1.2. End instant: Output of the first bit of the AGCH from the RFT
         antenna.

         Test conditions:

         8.10.1.3. No AGCH queue

         8.10.1.4. Performance requirement:

         Delay less than 400 ms with 95% probability under full load

8.10.2. PAGING DELAY

         Definition

         8.10.2.1. Start instant: Input of the last bit of the Page Request
         message into the SBS C7 link

         8.10.2.2. End instant: Output of the first bit of the PCH from the RFT
         antenna.

         Test conditions:

         8.10.2.3. No PCH queue; paging to a single beam.

         8.10.2.4. Performance requirement:

         Delay less than 400 ms with 95% probability under full load.

8.10.3. POSITION DETERMINATION DELAY

         Definition

         8.10.3.1. Start instant: Input of the last bit of the Initial Message
         into the RFT antenna

         8.10.3.2. End instant: Output of the first bit of the CM Service
         Request message into the SBS C7 link

         Test conditions:

         8.10.3.3. NO C7 QUEUE

         8.10.3.4. Performance requirement:

         Delay less than 350 ms with 95% probability under full load.

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8.10.4. SECTION NOT USED

8.10.5. SIGNALLING TRANSIT TIME

         8.10.5.1. The SBS-transparent signalling messages transit time is
         defined as the last bit of the message into the SBS and the first bit
         of the corresponding message out of the SBS and shall be no more than
         110 ms for 95% of the time for channels other than SDCCH/2, and 190 ms
         for 95% of the time for the SDCCH/2 channel.

8.10.6. VOICE TRAFFIC TRANSIT TIME

         8.10.6.1. The voice traffic transit time is defined as the duration
         between the last bit of a voice frame into SBS and the first bit of the
         corresponding voice frame out of SBS, including the FEC/Timing Part of
         the Voice Codec, and shall be less than the following values.

                  1. With diversity: no more than 40ms longer than the case
                     without diversity.

                  2. Without diversity: no more than 49 ms (forward direction)
                     and 62 ms (return direction) for 95% of the time assuming
                     optimum slot synchronisation with the TNM.

8.10.7. NON-VOICE TRAFFIC TRANSIT TIME

         8.10.7.1. The non-voice traffic transit time is defined as the duration
         between the last bit of a frame into SBS and the first bit of the
         corresponding frame out of SBS, and with no handover take place and
         shall be less than the corresponding values for voice plus slot
         alignment delay plus any interleaving delay.

8.10.8. LAYER 2 ACKNOWLEDGEMENT DELAY

         Definition

         8.10.8.1. Start instant: Input of the last bit of a Layer 2 Signal Unit
         with the P bit set to 1 into the SBS demodulator.

         8.10.8.2. End instant: Output of the first bit of the corresponding
         Layer 2 Signal Unit containing the acknowledgement to the received
         Signal Unit described in 8.10.8.1 from the SBS demodulator. Test
         conditions:

         8.10.8.3. The Layer 2 used is in the acknowledgement mode. Performance
         requirement:

         8.10.8.4. Mean delay less than 150 ms

         8.10.8.5. 95 percentile delay less than 180 ms

8.11. AVAILABILITY

8.11.1. DEFINITIONS

         8.11.1.1. The availability of the elements of a SAN site that support
         the traffic, voice and data (customer), switching and transport
         capacity of a SAN shall be calculated using the definitions, redundancy
         schemes, and associated equations of Bellcore Document, GR-512 CORE
         (Revision in effect on 31 October 1966)

         8.11.1.2. A SAN shall be defined as being available when it can process
         and transport more than 70% of its rated traffic switching and
         transport capacity. When the SAN has lost 30% or more of its rated
         traffic switching and transport capacity due to SAN equipment failure
         the SAN shall be defined as unavailable.

         8.11.1.3. Failures of SAN site power shall not be counted in
         calculating SAN availability.

         8.11.1.4. Failure due to operator error, external physical damage to
         equipment or planned outages shall not be counted in calculating SAN
         availability.

         8.11.1.5. Failure of Network Management, SRMC, HPN and other equipment
         that does not result in loss of SAN switching, transport or processing
         of voce and data traffic capacity shall not be counted in calculating
         SAN availability.

         8.11.1.6. The availability of the following elements shall be specified
         and shall be considered available when each element can support at
         least 70% of its rated traffic (voice, data or administration
         information) transport and processing load.

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         8.11.1.7. The systems shall be considered unavailable when the elements
         are unable to support at least 70% of their rated traffic (voice, data
         or administration information) transport and processing load due to IGF
         equipment failure.

8.11.2. REQUIREMENTS

         8.11.2.1. For purpose of availability calculation, the MTTR shall be 4
         hours or less for all replaceable elements of the SAN, NMC or Back up
         NMC, stocked on site, or 7 days for elements not stocked on site.

         8.11.2.2. Basis of MTBF estimate shall be stated (e.g. data,
         comparison).

         8.11.2.3. The Availability of a SAN site as defined above shall be
         equal or greater than 0.9996.

         8.11.2.4. The availability of each traffic carrying subsystem of the
         IGF (including MSSC/VLR, HLR, ILR, IN Platform, TNM, SBS, and RFT
         subsystem) shall be equal or greater than 0.9999.

         8.11.2.5. The IGF shall be designed so that the reliability of the NMC
         and non-traffic carrying elements of each SAN is not a significant
         factor in the SAN availability.

         8.11.2.6. Availability of the HPN subsystem shall be greater than
         [0.9996].

         8.11.2.7. Offered traffic levels of up to 150% of the rated capacity
         shall be supported without any system failures.

         8.11.2.8. Beyond the 150% of the rated capacity, rejection of calls
         shall be used to maintain the system in operation.

         8.11.2.9. During the rejection process the system capacity may be less
         than 100% of the rated capacity. The MSSC shall support the rejection
         of Network Originated traffic during this period. The SBS shall support
         the rejection of UT Originated traffic during this period.

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                       [FIGURE 8-1 AVAILABILITY DIAGRAM]

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8.11.3. ENVIRONMENTS

8.11.3.1. GENERAL

         8.11.3.1.1. The equipment composing the IGF shall operate under the
         following environmental conditions.

8.11.3.2. EQUIPMENT IN THE MAIN BUILDING

         8.11.3.2.1. Temperature, Humidity and Altitude Requirements:

                  1. IEC 721-3-3 Class 3K2. See Figure 8-2.

                  2. Temperature: 15 degrees C to 30 degrees C

                  3. Humidity: 10% to 75% RH, Relative Humidity, bounded by an
                     absolute humidity range of 2 g/m (3) to 22 g/m(3).

                  4. Altitude: 0-10,000 feet, 0-3050 meters

         8.11.3.2.2. Mechanical Requirements:

                  1. IEC 721-3-3 class 3M 1

                  2. Sinusoidal Vibration: 0.3 mm 2-9 Hz. 1 m/s(2) 9-200 Hz

                  3. Non Stationary Vibration Including Shock: 40 m/s (2)
                     response spectrum L

8.11.3.3. EQUIPMENT IN THE RFT SHELTER

         8.11.3.3.1. Temperature. Humidity and Altitude Requirements:

                  1. Temperature: 10 degrees C to 40 degrees C full performance

                     -10 degrees C to 60 degrees C operational

                  2. Humidity: 5% to 95% RH, Relative Humidity,

                  3. Altitude: 0-2000 meters

                     (up to 2300 m with special provisions)

         8.11.3.3.2. Mechanical Requirements:

                  1. Sinusoidal Vibration: 5 mm(p-p)0.1-10 Hz

8.11.3.4. OUTDOOR EQUIPMENT

         8.11.3.4.1. Temperature, Humidity and Altitude Requirements:

                  1. Temperature: -20 degrees C to 50 degrees C full performance

                     -30 degrees C to 60 degrees C operational

                  2. Humidity: 0% to 100% RH, Relative Humidity,

                  3. Altitude: 0-2000 meters

                     (up to 2300 m with special provisions)

         8.11.3.4.2. Mechanical Requirements:

                  1. Sinusoidal Vibration: 5 mm(p-p)0.1-10 Hz

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                    [FIGURE 8-2 CLIMATOGRAM FOR 12 YEAR LIFE
                    (ABSOLUTE HUMIDITY CURVES APPROXIMATED)]

8.12. TNM PERFORMANCE REQUIREMENTS

8.12.1. TNM TRANSIT TIME

8.12.1.1. PAGING

         8.12.1.1.1. The paging transit time is defined as the time duration
         from the first bit of the Paging message received at the TNM from the
         MSSC until the first bit of the Paging message is sent from the same
         TNM to the last SBS of up to 3 selected target SBSs.

         8.12.1.1.2. The paging transit time shall be less than 80 ms (mean) and
         130 ms (95 percentile), under the load defined in Table 9-1 of Section
         9.2.

8.12.1.2. TRANSPARENT MESSAGES

         8.12.1.2.1. Message (excluding Paging) transit time is defined as the
         duration from the first bit of the message to TNM and the first bit of
         the same message out of the same TNM.

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         8.12.1.2.2. The transit time shall be less than 60 ms (mean) and 90 ms
         (95 percentile), under the load defined in Table 9-1 of Section 9.2.

8.12.1.3. VOICE TRAFFIC

         8.12.1.3.1. The voice traffic transit time is measured as the time
         duration from the first bit of a voice circuit into the TNM to the
         corresponding bit out of the same TNM. The steady state value shall be
         less than the following

                  1.       Towards mobile with transcoding: less than 94 ms
                           (includes 72 ms for delay inherent in voice codec
                           algorithm) assuming the TNM assigned optimum MCD slot
                           is available.

                  2.       From mobile with transcoding: less than 38 ms
                           (includes 20 ms for delay inherent in voice codec
                           algorithm).

                  3.       Without transcoding (any direction): less than 14 ms
                           assuming the TNM assigned optimum MCD slot is
                           available.

8.12.1.4. GSM DATA/FAX TRAFFIC

         8.12.1.4.1. The transit time is measured as the time duration from the
         first bit of a fax/data circuit into the TNM to the corresponding bit
         out of the same TNM and shall be less than [14] ms.

8.12.1.5. NON-GSM DATA TRAFFIC

         8.12.1.5.1. The transit time is measured as the time duration from the
         first bit of a data circuit into the TNM to the corresponding bit out
         of the same TNM and shall be less than the following values.

                  1.       Towards mobile: 82 ms plus slot alignment delay.

                  2.       From mobile: 60 ms.

8.12.1.6. NON-GSM FAX TRAFFIC (THE IMAGE TRANSFER PART)

         8.12.1.6.1. The transit time is measured as the time duration from the
         first bit of a fax circuit into the TNM to the corresponding bit out of
         the same TNM and shall be less than the following values.

                  1.       Towards mobile: less than (82] ms plus slot alignment
                           delay.

                  2.       From mobile: less than 60 ms.

8.13. MSSC

8.13.1. MOBILE SWITCHING RESPONSE TIME

         8.13.1.1. At rated traffic load as defined in Table 9-1 of Section 9.2,
         the following response time between a pair of signals shall apply.

                       8.13.1.2. TABLE 8-1 RESPONSE TIMES

<TABLE>
<CAPTION>
Response Time                           Mean (ms)    95 percentile (ms)
---------------------------------------------------------------------------
<S>                                     <C>          <C>
8.13.1.2. PSTN to UT
---------------------------------------------------------------------------
1. IAM - Paging                             [80]              121
---------------------------------------------------------------------------
2. Paging Resp - Auth Req                   [30]              44
---------------------------------------------------------------------------
3. Auth. Resp - Ciph Mode Cmd               [20]              33
---------------------------------------------------------------------------
4. Ciph Mode Com - Setup                    [30]              44
---------------------------------------------------------------------------
5. Alert - Assignment Req                   [20]              33
---------------------------------------------------------------------------
8.13.1.3. UT - PSTN
---------------------------------------------------------------------------
1. CM Service Req - Auth Req                [30]              44
---------------------------------------------------------------------------
2. Auth Resp - Ciph Mode Cmd                [30]              66
---------------------------------------------------------------------------
3. Setup - Call Proceeding                  [30]              44
---------------------------------------------------------------------------
4. Modify Com - IAM                         [30]              44
---------------------------------------------------------------------------
5. ACM - Alert                               [30]              44
---------------------------------------------------------------------------
</TABLE>

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<TABLE>
<CAPTION>
Response Time                            Mean (ms)    95 percentile (ms)
---------------------------------------- ----------- ----------------------
<S>                                      <C>         <C>
6. ANS - Connect                            [20]              33
---------------------------------------- ----------- ----------------------
8.13.1.4. Location Update (no HLR)
---------------------------------------- ----------- ----------------------
1. LU Req - LU Acc                          [50]              77
---------------------------------------- ----------- ----------------------
2. LU Acc - Clear                           [80]              165
---------------------------------------- ----------- ----------------------
8.13.1.5. SS CFU Registration
---------------------------------------- ----------- ----------------------
1. CM Serv Req - Ciph Mode Cmd              [50]              88
---------------------------------------- ----------- ----------------------
2. Ciph Mode Com - CM Serv Acc             [240]              341
---------------------------------------- ----------- ----------------------
3. Register - Register                      [20]              33
---------------------------------------- ----------- ----------------------
</TABLE>

8.13.2. TRANSIT SWITCHING
        TBD

8.13.3. D-IWF
        TBD

8.13.4. GMSC
        TBD

8.13.5. IN-SSP (F/R)
        TBD

8.13.6. MSSC VOICE TRANSIT TIME

         8.13.6.1 The MSSC voice transit time is defined as the time for a bit
         to pass from an inlet of the MSSC to an outlet of the same MSSC.

         8.13.6.2 The MSSC voice transit time shall be less than 2 ms.

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9. CAPACITY REQUIREMENTS

9.1. DIMENSIONING DRIVERS

         9.1.1. This section specifies the sizing of ICO elements. In the case
         where more than one unit may be provided (e.g. MSC/VLR, HLR), the
         sizing data relates to a single unit. The total number of units to be
         provided in the initial contract to ICO shall be defined in the SOW.

         9.1.2. Individual elements of the ICONet Ground Facilities (IGF) will
         be dimensioned according to one, or more as appropriate, of the
         following dimensioning drivers:

                  1.       traffic carrying capacity at an interface, defined in
                           Erlangs, based on a starting point of 320 Erlangs on
                           the A interface (SBS-TNM) and incremented in 100
                           Erlangs

                  2.       call attempts, defined in numbers of call attempts
                           per Busy Hour (an increment or a starting point is
                           inappropriate to this measure)

                  3.       number of subscribers, starting at 10,000 subscribers
                           and incremented in 1,000 subscribers (note that where
                           subscriber numbers are dynamic, such as in a VLR, the
                           average number of simultaneous registered subscribers
                           may also be less than 10,000)

                  4.       other primary factors for specific items of
                           equipment, for example, numbers of transactions per
                           Busy Hour for the IN platform

         9.1.3. The values stated in the Table under the heading 'Maximum Value'
         refer to the expansion capability of the equipment.

         9.1.4. Individual elements shall be sized sufficiently to meet
         dimensioning drivers while meeting the appropriate performance
         requirements, such as the blocking budget, as defined in IGF Functional
         Requirements Document.

         9.1.5. Management systems will be dimensioned to operate so as to
         support the management activity generated by the traffic load.

9.2. LGF ELEMENT SPECIFIC DETAILS

         9.2.1. Table 9-1 describes the primary drivers and performance
         requirement (referenced to the IGF Functional Requirements TBD) for
         each element of the IGF.

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                 TABLE 9-1 PRIMARY CAPACITY DRIVERS FOR THE IGF

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
IGF ELEMENT  DIMENSIONING DRIVER          INITIAL VALUE            MAXIMUM VALUE        PERFORMANCE                PERFORMANCE
                                                                                         PARAMETER                 REQUIREMENT
------------------------------------------------------------------------------------------------------------------------------------
<S>          <C>                          <C>                      <C>               <C>                           <C>
  1. RFT     C-Band EIRP towards          total 77 dBW per                                                         6.53.1
             satellite per RFT            polarisation
------------------------------------------------------------------------------------------------------------------------------------
  2. RFT     Number of Antennas per       5                                           NA                           6.57.1.1
             SAN
------------------------------------------------------------------------------------------------------------------------------------
  3. SBS     Traffic on the A interface   320E                     4,800 E            Blocking Budget              0.7% (9.3.4.1.2
             (to TNM)                                                                                              Table 9-4)
------------------------------------------------------------------------------------------------------------------------------------
  4. SBS     Traffic on the Air           483 E (Assumption 1,     7,245 E            Diversity traffic served by  2% (9.3.4.1.2
             interface                    based on 320E, 7500                         a single path.               Table 9-4)
                                          BHLU, 6500 BHSMS)                           (Does not apply to
                                                                                      signalling traffic)
------------------------------------------------------------------------------------------------------------------------------------
  5. SBS     Busy Hour Call Attempts      7680 BHCA (Assumption    250,000 BHCA       Signalling transaction       [  ]
                                          2, based on 320E)                           delay
------------------------------------------------------------------------------------------------------------------------------------
  6. SBS     Busy Hour Location           7,500 (Assumption 6)     112,500 BHLU       Location Update              [  ]
             Updates                                                                  transaction delay
------------------------------------------------------------------------------------------------------------------------------------
  7. TNM     Traffic on the A interface   320E                     4,800 E            Blocking Budget for SBS      0.7%
             (to SBS)                                                                 interface (Assumption
                                                                                      (10))
------------------------------------------------------------------------------------------------------------------------------------
  8. TNM     Traffic on the A interface   320E                     4,800 E            Blocking Budget for          0.3%
             (to MSSC, PCM coded)                                                     MSSC interface, PCM
                                                                                      coded (Assumption (10))
------------------------------------------------------------------------------------------------------------------------------------
  9. TNM     Traffic on the A interface   64E                      960 E              Blocking Budget for          0.3%
             (to MSSC, compressed)                                                    MSSC interface,
             refers to MCD data                                                       compressed
                                                                                      (Assumption (10))
------------------------------------------------------------------------------------------------------------------------------------
  10.TNM     Semi-permanent traffic       4 calls (8 SANs)         22 calls           Availability                 NA
             (DCN)                        8 call (4 SANs)
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

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<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
IGF ELEMENT      DIMENSIONING DRIVER          INITIAL VALUE                MAXIMUM VALUE        PERFORMANCE           PERFORMANCE
                                                                                                 PARAMETER            REQUIREMENT
------------------------------------------------------------------------------------------------------------------------------------
<S>              <C>                          <C>                          <C>               <C>                      <C>
11. TNM          Busy Hour Call Attempts.     8448 BHCA (Assumption        275,000  BHCA     Signalling transaction       8.12
                                              2, based on 352E)                              delay
------------------------------------------------------------------------------------------------------------------------------------
12. MSSC/VLR     Traffic on the A interface   320E                         4800 E            Blocking budget.             0.3%
                 (to TNM, PCM coded)                                                         (Assumption (11))
------------------------------------------------------------------------------------------------------------------------------------
13. MSSC/VLR     Traffic on the A interface   8E                           120 E             Blocking budget.             0.3%
                 (to TNM compressed)                                                         (Assumption (11))
                 refers to fully occupied
                 64k channel i.e. 8xMCD
                 voice calls
------------------------------------------------------------------------------------------------------------------------------------
14. MSSC/VLR     Traffic on the interfaces    320E                         4,800 E           Blocking budget.             0.3%
                 to POI (including echo                                                      (Assumption (11))
                 cancellation as required)
------------------------------------------------------------------------------------------------------------------------------------
15. MSSC/VLR     Traffic on the interfaces    64E (8 SANs)                 4,800 E           Blocking budget.             0.3%
                 to other SANs                96E (4 SANs)                                   (Assumption (11))
------------------------------------------------------------------------------------------------------------------------------------
16. MSSC/VLR     Traffic on the interface     16E                          240 E             Blocking budget.             [0.3%]
                 MSSC/D-IWF                   (5% of, and included in,                       (Assumption (11))
                                              the POI Traffic)
------------------------------------------------------------------------------------------------------------------------------------
17. MSSC/VLR     Traffic on the interface to  3.7E (per SAN -              240 E             Blocking budget.             [0.1%]
                 Voicemail                    Assumption 3)                                  (Assumption (11))
------------------------------------------------------------------------------------------------------------------------------------
18. MSSC/VLR     Facsimile traffic on the     0.4E per SAN                 24 E              Blocking budget.             [0.1%]
                 interface to the             (Assumption 12)                                (Assumption (11))
                 Voicemail (F/R)
------------------------------------------------------------------------------------------------------------------------------------
19. MSSC/VLR     Traffic on the interface to  8E (Assumption 4)            120 E             Blocking budget.             [0.1%]
                 Recorded Voice                                                              (Assumption (11))
                 Announcements.
------------------------------------------------------------------------------------------------------------------------------------
20. MSSC/VLR     Busy Hour Call Attempts.     8640 BHCA (Assumption        280,000 BHCA      Signalling transaction       9.2.x
                                              2, based on 360E)                              delay
------------------------------------------------------------------------------------------------------------------------------------
21. MSSC/VLR     Busy Hour Registered         128,000                      300,000           % of registrations           9.2.x
                 Subscribers                                                                 successfully completed.
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

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<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
 IGF ELEMENT    DIMENSIONING DRIVER           INITIAL VALUE                MAXIMUM VALUE             PERFORMANCE         PERFORMANCE
                                                                                                      PARAMETER          REQUIREMENT
------------------------------------------------------------------------------------------------------------------------------------
<S>             <C>                           <C>                          <C>                    <C>                    <C>
22. MSSC/VLR    Busy Hour Location            7,500 BHLU                   26,400                 Location Update           []
                Updates                       (Assumption 6)                                      transaction delay
------------------------------------------------------------------------------------------------------------------------------------
23. MSSC/VLR    C7 signalling link            10 to 16                     To be stated by NEC    NA                        NA
                hardware ports
------------------------------------------------------------------------------------------------------------------------------------
24. MSSC/VLR    Nos. of high speed (>.6      16 per MSSC                  To be stated by NEC    NA                        []
                kbps) channels
------------------------------------------------------------------------------------------------------------------------------------
25. MSSC/VLR    Busy Hour C7 signalling       To be stated by NEC          To be stated by NEC    MTP transaction delay     []
                MTP transactions
                including STP
                functionality
------------------------------------------------------------------------------------------------------------------------------------
26. RVA source  Traffic on interface          8E (Assumption 4)            To be stated by NEC    Blocking budget           [1%]
------------------------------------------------------------------------------------------------------------------------------------
27. RVA source  Busy Hour Call Attempts       2880 BHCA                    To be stated by NEC    RVA access delay          []
------------------------------------------------------------------------------------------------------------------------------------
28. D-IWFs      Traffic on interfaces.        16E (5% of POI Traffic)      To be stated by NEC    Blocking budget.          [1%]
------------------------------------------------------------------------------------------------------------------------------------
29. D-IWFs      Busy Hour Call Attempts       384 BHCA (Assumption         To be stated by NEC    Signalling transaction    []
                                              2, based on 16E)                                    delay
------------------------------------------------------------------------------------------------------------------------------------
30. AuC         Number of                     50,000                       To be stated by NEC    NA                        NA
                subscribers/equipment
                stored.
------------------------------------------------------------------------------------------------------------------------------------
31. AuC         Busy Hour                     6,000 (Assumption 12)        To be stated by NEC    Authentication delay      [300 ms]
                Authentication Vector
                Requests.
------------------------------------------------------------------------------------------------------------------------------------
32. EIR         Number of IMEIs stored.       50,000                       To be stated by NEC    N/A                       []
------------------------------------------------------------------------------------------------------------------------------------
33. EIR         Busy Hour IMEI checking       4500 (Assumption 6, 7)       To be stated by NEC    IMEI checking attempt     [150 ms]
                attempts.                                                                         delay.
------------------------------------------------------------------------------------------------------------------------------------
34. HLR         Number of ICO                 50,000                       500,000                NA                        NA
                subscribers.
------------------------------------------------------------------------------------------------------------------------------------
35. HLR         Busy Hour Service             To be stated by NEC          To be stated by NEC    Service provisioning      []
                Provisioning attempts                                                             delay.
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
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<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
IGF ELEMENT    DIMENSIONING DRIVER          INITIAL VALUE             MAXIMUM VALUE                 PERFORMANCE          PERFORMANCE
                                                                                                     PARAMETER           REQUIREMENT
------------------------------------------------------------------------------------------------------------------------------------
<S>            <C>                          <C>                       <C>                        <C>                       <C>
36. HLR        Busy Hour Network and        6,750 (Assumption 6)      67,500                     Registration transaction    []
               VLR registrations                                                                 delay
------------------------------------------------------------------------------------------------------------------------------------
37. HLR        Busy Hour Call Attempts      12,500 (Assumption 2, 9,  400,000                    Signalling transaction      []
               (MT for ICO subscribers)     based on 43E in 12                                   delay
                                            SANs)
------------------------------------------------------------------------------------------------------------------------------------
38. HLR        Busy Hour C7 signalling      {?}To be stated by NEC    To be stated by NEC        MTP transaction delay       []
               MTP transactions
               including STP
               functionality
------------------------------------------------------------------------------------------------------------------------------------
39. Voicemail  Number of subscribers.       56,000 for each of 3      To be stated by NEC        NA                          NA
    (OPTION)                                voice mail sites
                                            (Assumption 3)
------------------------------------------------------------------------------------------------------------------------------------
40. Voicemail  Traffic on the interface to  15 E for each of 3 Voice  To be stated by NEC        Call completion rate.       []
    (OPTION)   co-located MSSC              Mail sites (Assumption
                                            3).
------------------------------------------------------------------------------------------------------------------------------------
41. Voicemail  Busy Hour Call Attempts      360 BHCA for each of 3    To be stated by NEC        Signalling transaction      []
    (OPTION)                                Voice Mail sites                                     delay
                                            (Assumption 3).
------------------------------------------------------------------------------------------------------------------------------------
42. Voicemail  Hours of storage (voice      500 hours per Voice Mail  To be stated by NEC        Probability and hours of
    (OPTION)   and fax).                    site.                                                traffic lost per year.
------------------------------------------------------------------------------------------------------------------------------------
43. Voicemail  Facsimile traffic on the     1.6 E (for each of 3      To be stated by NEC        Blocking budget             []
    (OPTION)   interface to MSSC (F/R)      voicemail sites -                                    (Assumption (11)).
                                            Assumption 12)
------------------------------------------------------------------------------------------------------------------------------------
44. SMSC       Messages per busy hour       17,000 (platform used as  22,000 (platform used as   Message handling delay      8.3.1
    (OPTION)                                100% SMSC) for each of    100% SMSC) for each of
                                            3 SMSC sites              3 SMSC sites
------------------------------------------------------------------------------------------------------------------------------------
45. HPN        Peak arrival rate of HPN     3 per second              3 per second               Message handling delay      8.7
               escalations per second
               from the MSSC due to
               failed MT-SMS
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

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<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
 IGF ELEMENT       DIMENSIONING DRIVER          INITIAL VALUE                MAXIMUM VALUE          PERFORMANCE          PERFORMANCE
                                                                                                     PARAMETER           REQUIREMENT
------------------------------------------------------------------------------------------------------------------------------------
<S>                <C>                          <C>                          <C>
46. HPN            Peak arrival rate of HPN     6 per second                 6 per second                                 []
                   escalations per second
                   from the MSSC due to
                   failed MT call attempts
------------------------------------------------------------------------------------------------------------------------------------
47. HPN            Peak processing load         30 per second                30 per second                                []
                   HPN messages per second
                   (representing a combination
                   of satellite transmissions
                   and inter-SAN routing of
                   HPN messages)
------------------------------------------------------------------------------------------------------------------------------------
48. PCS (HPN)      Average satellite            {?}                                               Command transmission    []
                   command transmission                                                           delay
                   rate.
------------------------------------------------------------------------------------------------------------------------------------
49. IS.41 IWF      Number of ICO/IS.41          50,000 registered in         To be stated by NEC  NA                      NA
(OPTION)           subscribers capable of       each direction
                   roaming
------------------------------------------------------------------------------------------------------------------------------------
50. IS.41 IWF      Busy Hour Network and        3,750 (Assumption 6)         To be stated by NEC  Registration delay      []
(OPTION)           ICO VLR registrations
------------------------------------------------------------------------------------------------------------------------------------
51. IS.41 IWF      Busy Hour Call Attempts      4,100 (Assumption 2, 9,      To be stated by NEC  Signalling transaction  []
(OPTION)           (MT for ICO/IS.41            based on 14E in 12                                delay
                   subscribers)                 SANs)
------------------------------------------------------------------------------------------------------------------------------------
 52. PDC IWF       Number of PDC/ICO            50,000                       To be stated by NEC  NA                      NA
(OPTION)           subscribers capable of
                   roaming
------------------------------------------------------------------------------------------------------------------------------------
 53. PDC IWF       Busy Hour Network and        1,900 (Assumption 64)        To be stated by NEC  Registration delay      []
 (OPTION)          ICO VLR registrations
------------------------------------------------------------------------------------------------------------------------------------
 54. PDC IWF       Busy Hour Call Attempts      750 (Assumption 2, 9,        To be stated by NEC  Signalling transaction  []
 (OPTION)          (MT for ICO/PDC              based on 2.5E in 12                               delay
                   subscribers)                 SAN
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

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<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
IGF ELEMENT      DIMENSIONING DRIVER        INITIAL VALUE              MAXIMUM VALUE             PERFORMANCE          PERFORMANCE
                                                                                                  PARAMETER           REQUIREMENT
------------------------------------------------------------------------------------------------------------------------------------
<S>              <C>                        <C>                        <C>                     <C>                    <C>
55. PDC IWF      Traffic through IMSC.      77 Erlangs (Assumption     To be stated by NEC     Blocking budget.             0.3%
 (OPTION)                                   9)
------------------------------------------------------------------------------------------------------------------------------------
56. PDC IWF      Busy Hour Call Attempts    1,900 (Assumption 2,       To be stated by NEC     Signalling transaction       [ ]
 (OPTION)        through IMSC               based on 77E)                                      delay
------------------------------------------------------------------------------------------------------------------------------------
57. IN Platform  Number of IN               50,000                     1 M                     NA                           NA
   (F/R)         subscribers.
------------------------------------------------------------------------------------------------------------------------------------
58. IN Platform  Busy Hour IN               14,000 BHINT               3.6 M                   Transaction delay            [ ]
   (F/R)         transactions               (Assumption 8)
------------------------------------------------------------------------------------------------------------------------------------
 59. SRMC        Number of satellites       12                         24                      NA                           NA
------------------------------------------------------------------------------------------------------------------------------------
 60. SRMC        Number of SANs             12                         24                      NA                           NA
------------------------------------------------------------------------------------------------------------------------------------
 61. SRMC        Number of spot beams       163                        163                     NA                           NA
                 per satellite
------------------------------------------------------------------------------------------------------------------------------------
 62. SRMC        Number of filters per      490                        490                     NA                           NA
                 satellite
------------------------------------------------------------------------------------------------------------------------------------
 63. SRMC        Satellite orbit period     6 hours                    6 hours                 NA                           NA
------------------------------------------------------------------------------------------------------------------------------------
 64. SRMC        Planning Ground Cell       1 degree                   1 degree                                             [ ]
                 size
------------------------------------------------------------------------------------------------------------------------------------
 65. SRMC        Payload command table      32,000                     32,000                                               [ ]
                 size
------------------------------------------------------------------------------------------------------------------------------------
 66. SRMC        HPN tables                 4                          4                                                    [ ]
------------------------------------------------------------------------------------------------------------------------------------
 67. SRMC        Number of frequency co-    4                          4                       NA                           NA
                 ordination regions
------------------------------------------------------------------------------------------------------------------------------------
  68. DCN        Number of 64 kbps ports    4 ports for 8 SANs                                 Link network utilisation
                                            8 ports for 4 SANs                                 factor.                      [ ]
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

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9.2.2. ASSUMPTIONS/DERIVED DATA

         1.       Traffic on the Air Interface consists of A-interface traffic
                  plus the traffic resulting from providing diversity paths to
                  40% of calls, plus the traffic resulting from registrations,
                  location updates, IMSI attach and detach, and SMS. The
                  registration and LU traffic is calculated based on 8 seconds
                  of call holding time per LU. The SMS traffic is calculated
                  based on 10 seconds per message.

         2.       BHCA calculation for units affected by MT and MO calls assumes
                  the average call holding time across all calls (successful and
                  unsuccessful) is 150s. 40% of calls are MT. Maximum BHCA
                  values based on approx. 30 x times initial values (traffic
                  growth = x10, capability for growth = x1.5, predicted decrease
                  in avg. call duration resulting from unsuccessful call
                  attempts = x 2)

         3.       Voice mail traffic 1.15% of SBS A-interface total. Maximum
                  size SAN assumes 5% voice mail.

         4.       RVA traffic 2.5% of SBS A-interface total. Average RVA
                  duration 10s.

         5.       Year 2010 SMMO=5m, SMMT=200m, HPN = 110m. Initial value 10%,
                  Busy Day=Year/265, Busy Hour = Busy Day 12. SMS message length
                  average 30 characters.

         6.       Assumes 0.25 Location Updates / Registered UT / Busy Hour.
                  Also assumes 90% of ICO-HLR customers registered, 15% of IS.41
                  roamers, and 15% of PDC roamers. Initial registration average
                  0.1 Reg / UT / Busy hour. VLR change average 0.05 Reg / UT /
                  Busy hour. NOTE: MSC/VLR Location Updates per Busy Hour based
                  on 30,000 active registered subscribers, to maintain
                  consistency with BAFO 2a figures.

         7.       Assumes that IMEI is checked on initial registrations to HLR.

         8.       Assumes 25% of MO calls require IN

         9.       MT called number distribution: ICO HLR 33%; ICO-GSM ILR 30%;
                  GSM anonymous 24%; ICO-PDC ILR 2%; ICO-IS.41 ILR 11%.

         10.      The TNM is non-blocking, thus the blocking budget for the TNM
                  is associated with the number of ports provided.

         11.      The MSSC is non-blocking, thus the blocking budget for the
                  MSSC is associated with the number of circuits provided.

         12.      Assumes authentication check performed on MO and MT calls
                  only, with 5 sets of triplets returned from each request to
                  the AuC.

         13.      Facsimile traffic into the voicemail system is assumed to be
                  10% of the voice traffic and is additional to the voice
                  traffic. (F/R)

9.3.     SIZING REQUIREMENTS

9.3.1.   NETWORK MANAGEMENT SYSTEM

         9.3.1.1. The Network management system shall provide the capability for
                  growth to accommodate the equipment corresponding to the ICO
                  10-year traffic model.

9.3.2.   SWITCHING EQUIPMENT

         9.3.2.1. Dimensioning rules for a typical switch are shown in the table
                  below:

           9.3.2.2. TABLE 9-2 DIMENSIONING RULES FOR A TYPICAL SWITCH

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------
        TRAFFIC RATE                                             2.5          mERLANGS
---------------------------------------------------------------------------------------------------
<S>                                                              <C>          <C>
Total traffic                                                    320          Erlangs
---------------------------------------------------------------------------------------------------
Max. subscribers                                                 128,000
---------------------------------------------------------------------------------------------------
No. SUBSCRIBERS REGISTERED IN THE HLR                            50,000
---------------------------------------------------------------------------------------------------
% total traffic to announcements                                 0.025        %
---------------------------------------------------------------------------------------------------
% total traffic to voice mail                                    0.0115       %
---------------------------------------------------------------------------------------------------
% MPTY calls exc. monitoring                                     1            %
---------------------------------------------------------------------------------------------------
No. of subscribers to be monitored                               10
---------------------------------------------------------------------------------------------------
Holding time                                                     150          secs
---------------------------------------------------------------------------------------------------
</TABLE>

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<TABLE>
---------------------------------------------------------------------------------------------------
<S>                                                              <C>         <C>
Data call holding time                                           240         secs
---------------------------------------------------------------------------------------------------
Direction C for transit required?                                No
---------------------------------------------------------------------------------------------------
Switch connects to SMS/HLR/VM?                                   Yes
---------------------------------------------------------------------------------------------------
% total traffic which is data                                    5           %
---------------------------------------------------------------------------------------------------
BHCA/subscriber                                                  0.06
---------------------------------------------------------------------------------------------------
Loss probability                                                 0.003
---------------------------------------------------------------------------------------------------
T1 traffic                                                       288         Erlangs
---------------------------------------------------------------------------------------------------
T2 traffic                                                       32          Erlangs
---------------------------------------------------------------------------------------------------
T3 traffic                                                       0           Erlangs
---------------------------------------------------------------------------------------------------
T4 traffic                                                       32          Erlangs
---------------------------------------------------------------------------------------------------
ETC* to PSTN (No. of circuits)                                   356
---------------------------------------------------------------------------------------------------
ETC* to SBS (No. of circuits)                                    356
---------------------------------------------------------------------------------------------------
ETC* to TRANSIT (No. of circuits Dir. a)                         47
---------------------------------------------------------------------------------------------------
ETC* to TRANSIT (No. of circuits Dir. b)                         47
---------------------------------------------------------------------------------------------------
ETC* to TRANSIT (No. of circuits Dir. c)                         0
---------------------------------------------------------------------------------------------------
ETC* to VOCODER (No. of circuits outgoing)                       47
---------------------------------------------------------------------------------------------------
ETC* to VOCODER (No. of circuits incoming)                       47
---------------------------------------------------------------------------------------------------
ETC* to VOICE MAIL (No. of circuits)                             0
---------------------------------------------------------------------------------------------------
Data/fax circuits                                                39
---------------------------------------------------------------------------------------------------
MPTY circuits                                                    9
---------------------------------------------------------------------------------------------------
ASTDR circuits                                                   17
---------------------------------------------------------------------------------------------------
ECPOOL3 circuits (echo cancellers)                               340
---------------------------------------------------------------------------------------------------
</TABLE>

*ETC = EXCHANGE TERMINAL CIRCUIT

9.3.3. HPN EQUIPMENT

                        9.3.3.1. TABLE 9-3 HPN EQUIPMENT

[CAPTION]
<TABLE>
================================================================================
<S>     <C>                                      <C>
1.       HPN
--------------------------------------------------------------------------------
1.1      Work Station (Server)
--------------------------------------------------------------------------------
         Sun Ultra 1/140 Server, 143 MHz          Sized to handle a peak arrival
         32Mb RAM, 2.1 Gbyte Disk OR an           of 3 HPN escalations per
         Equivalent System (2 units)              second from the MSSC due to
                                                  failed MT-SMS and a peak
         9.3.3.2. active/warm standby             arrival of 6 HPN escalations
                                                  per second from the MSSC due
         9.3.3.2. Two (2) SS#7 interfaces         to failed MT call attempts.
         to the MSSC from each workstation
                                                  9.3.3.2. Sized to handle a
         9.3.3.2. no console (server models)      peak processing load of 30 HPN
                                                  messages (representing a
                                                  combination of satellite
                                                  transmissions and inter-SAN
                                                  routing of HPN messages) per
                                                  second.

                                                  9.3.3.2.
--------------------------------------------------------------------------------
1.2      Channel Unit
--------------------------------------------------------------------------------
         4 (active) + 1 (in-line spare) HPN
         Transmit Channel Units

         9.3.3.3.8 (active) + 2 (in-line
         spare) HPN Receive Channel Units
--------------------------------------------------------------------------------
1.3      Software
================================================================================
</TABLE>

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[CAPTION]
<TABLE>
================================================================================
<S>     <C>                                      <C>
         HPN Controller Software Hosted on the
         Sun Ultra Server

         9.3.3.4. SUN Solaris OS Software
--------------------------------------------------------------------------------
1.4      10 base T Ethernet Hub
--------------------------------------------------------------------------------
         Two 12 port 10baseT hubs
--------------------------------------------------------------------------------
1.5      IF distribution
--------------------------------------------------------------------------------
         IF distribution local HPN rack
================================================================================
</TABLE>
9.3.4.   SBS EQUIPMENT

9.3.4.1. CAPACITY REQUIREMENTS SBS

9.3.4.1.1. GENERAL

         9.3.4.1.1.1. This section covers the capacity requirements for the SBS,
         for both traffic and signalling. These requirements will be based on
         the traffic model specified in Table 9-5.

9.3.4.1.2. TRAFFIC CAPACITY SPECIFICATION

         9.3.4.1.2.1. In the initial purchase, the SBS shall support a traffic
         capacity of 320 holding time Erlang at the SBS-TNM interface in each of
         the 12 SANs. The capacity of each SBS shall be possible to be increased
         in steps of 100 Erlang (holding time) up to a maximum of [4800 Erlang]
         in the largest SAN.

         9.3.4.1.2.2. In order to meet the specified SBS-TNM interface capacity,
         sufficient Air-Interface capacity shall be provided based on the
         traffic model in Table 9-5.

9.3.4.1.3. BLOCKING PROBABILITY SPECIFICATION

         9.3.4.1.3.1. The contribution to the end-to-end blocking probability
         attributable to the SBS will be determined by:

                  1.       the availability of external satellite resources

                  2.       the constraints imposed by these functional
                           requirements and the underlying system design in the
                           allocation of resources (e.g., z-arc design, maximum
                           number of reuses, etc.) and

                  3.       the constraints imposed by the IGF design in the
                           allocation of resources.

         9.3.4.1.3.2. The blocking probability of the SBS over and above any
         blocking due to external resources shall be as follows:

             9.3.4.1.3.3. TABLE 9-4  BLOCKING PROBABILITY ALLOWANCE
<TABLE>
<CAPTION>
                                                ---------------------------------- ---------------------------------
                                                CONTRIBUTION ALLOWANCE             NOTES
----------------------------------------------- ---------------------------------- ---------------------------------
<S>                                             <C>                                <C>
SBS (Erlang) Blocking probability               <0.7 %                              1
----------------------------------------------- ---------------------------------- ---------------------------------
Diversity Blocking with diversity               <[2%]                               2
allocated at the call start
----------------------------------------------- ---------------------------------- ---------------------------------
Diversity Blocking with diversity               <[12%]                             3
allocated after call start
----------------------------------------------- ---------------------------------- ---------------------------------
</TABLE>
         9.3.4.1.3.4. Notes:

                  1.       Blocking probability with respect to all offered
                           calls

                  2.       Percentage of calls with diversity allocated at call
                           start in which only one path can be connected.

                  3.       Percentage of calls with diversity allocated after
                           call start in which the diversity path cannot be
                           connected without moving the first path.

                  4.       The blocking percentages listed in Table 9-4 may need
                           to be revised to take account of multiple radio
                           resources being used for a call during mobile
                           terminated call setup when the UT is moving from MP
                           to NP coverage.

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9.3.4.2. SBS CONTROL CHANNEL CAPACITY

9.3.4.2.1. RACH CAPACITY

         9.3.4.2.1.1. In the initial purchase, the SBS shall provide adequate
         hardware to support one RACH channel per spot beam per satellite for 12
         satellites each with 163 spot beams, uniformly distributed across SANs

         9.3.4.2.1.2. The design will not preclude provisioning of RACH modems
         as required for the maximum [4800 Erlang] SAN.

9.3.4.2.2. TRANSMIT COMMON CHANNEL CAPACITY

         9.3.4.2.2.1. In the initial purchase the SBS shall provide adequate
         Transmit common control channel hardware corresponding to the number of
         RACH channels. These Transmit Common Control Channels may be applied to
         BCCH, PAGCH, AGCH, CBCH as required.

9.3.4.3. SBS TRAFFIC MODEL

                      9.3.4.3. 1. TABLE 9-5 TRAFFIC MODEL

<TABLE>
<S>                                                                     <C>
----------------------------------------------------------------------- --------------------------------------------
Average call duration                                                   150 seconds
----------------------------------------------------------------------- --------------------------------------------
Average LU, IMSI attach, IMSI detach duration                           [4]seconds
----------------------------------------------------------------------- --------------------------------------------
Channel type used for IMSI attach/detach and Location update            SDCCH/2
----------------------------------------------------------------------- --------------------------------------------
Diversity provisioning at 100% loading                                  40%
----------------------------------------------------------------------- --------------------------------------------
Diversity provisioning at 50% loading                                   100% of diversity eligible UTs
----------------------------------------------------------------------- --------------------------------------------
</TABLE>

9.3.4.4. SBS ASSIGNMENT ALGORITHM PERFORMANCE SIMULATION MODEL

                  1.       3 Satellite, [17] delay classes per satellite

                  2.       Exponential distribution of traffic, randomised
                           across sub cells.

                  3.       Drive Frequency and Timeslot (f, t) planing relative
                           to beam traffic load and 490 filters/satellite.

                  4.       Generate traffic based on traffic distribution
                           across sub-beams and Table 9-5.

                  5.       Pass criteria: with assumed hardware meet the
                           blocking probability defined in Table 9-4, for 320,
                           ~1000, and 3200 Erlang.

9.3.5. TNM AND DCN EQUIPMENT

                   9.3.5.1. TABLE 9-6 TNM AND DCN EQUIPMENT
[CAPTION]
<TABLE>
--------------------------------------------------------------------------------
ITEM     DESCRIPTION                                    SIZING RULE
--------------------------------------------------------------------------------
<S>     <C>                                      <C>
1.       TNM
--------------------------------------------------------------------------------
1.1      RPC
--------------------------------------------------------------------------------
1.1.1    Sparc 1000 with 2 processors,            13 calls/sec full performance
         512MB MM, 5GB HD, Ethernet               17 calls/sec peak
         Interfaces, 8mm Tape Drive               (1+1 Redundancy)
         and CD ROM Drive                         9.3.5.2. Max. 2000 Erlangs
                                                  per RPC
--------------------------------------------------------------------------------
1.1.2    MMI with one 10Bt and one                1 per RPC
         100Bt Ethernet ports
--------------------------------------------------------------------------------
1.1.3    DCN (E1)Control                          2 per SAN TNM
--------------------------------------------------------------------------------
1.1.4    RPN Ethernet Hubs (10BT)                 2 per SAN for first 8 RPN's.
                                                  2 per 8 RPNs thereafter
--------------------------------------------------------------------------------
1.1.5    Power Switchover                         1 Per Rack
--------------------------------------------------------------------------------
1.1.6    19" C&C Rack                             1 Per RPC
=======================================================================+========
</TABLE>
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<TABLE>
ITEM             DESCRIPTION                 SIZING RULE
--------------------------------------------------------------------------------
<S>             <C>                          <C>
1.2              TNM Software License         1 per TNM
--------------------------------------------------------------------------------
1.3              Software Licenses
--------------------------------------------------------------------------------
1.3.1            Solaris Operating System
                  with Media                  1 per RPC for first 2 SANs
--------------------------------------------------------------------------------
1.3.2            Solaris Operating System
                  without Media               1 per RPC subsequent SANs
--------------------------------------------------------------------------------
1.3.3            Solstice - Runtime           1 per SAN site (2 for ITC)
</TABLE>

<TABLE>

<S>                 <C>                    <C>
--------------------------------------------------------------------------------
2                     RPN SUBSYSTEM
--------------------------------------------------------------------------------
2.1                      FOR SAN
--------------------------------------------------------------------------------
                                            Required MUX/VOC channels
--------------------------------------------------------------------------------
                                            Traffic Channels +
--------------------------------------------------------------------------------
                                            Blocking +
--------------------------------------------------------------------------------
                                            Inter-site Traffic Channels +
--------------------------------------------------------------------------------
                                            Inefficiencies +
--------------------------------------------------------------------------------
                                            Signalling Channels +
--------------------------------------------------------------------------------
                                            DCN Channels
--------------------------------------------------------------------------------
                                            Traffic Channels
--------------------------------------------------------------------------------
                                            PSTN Traffic in Erlangs converted
                                            to Ch
--------------------------------------------------------------------------------
                                            (@ 0.3% blocking)
--------------------------------------------------------------------------------
                                            Inter-site Traffic Channels
--------------------------------------------------------------------------------
                                            SBS Terminated Traffic in Erlangs
                                            converted to Ch
--------------------------------------------------------------------------------
                                            (Based on 10% of PSTN traffic)
--------------------------------------------------------------------------------
                                            Plus quantity if required to
                                            maintain availability ratio. (0 in
                                            this case given 30% failure rate)
--------------------------------------------------------------------------------
                                            Inefficiencies
--------------------------------------------------------------------------------
                                            For channel manager handover,
                                            internal inefficiency is 1% per ChM.
--------------------------------------------------------------------------------
                                            Signalling Channels
--------------------------------------------------------------------------------
                                            Maximum of 1 per RPN (normally slot
                                            31) No additional MUX/VOC channels
                                            required
--------------------------------------------------------------------------------
                                            DCN Channels
--------------------------------------------------------------------------------
                                            2 ch (DSP) for each 64kbps of DCN *2
                                            (refund)
================================================================================
                                            TOTAL VOC/MUX CHANNELS REQUIRED
--------------------------------------------------------------------------------
2.1.1                Vocoder/Mux Card       Max 8 channels per card
--------------------------------------------------------------------------------
2.1.2                RPN Processor          Max 60 channels & 2 calls/sec
--------------------------------------------------------------------------------
2.1.3                19" 6RU Shelf          1 per RPN
--------------------------------------------------------------------------------
2.1.4                Power Unit
--------------------------------------------------------------------------------
2.1.4.1              RPN Power Supply       1 per RPN
--------------------------------------------------------------------------------
2.1.4.2              Mux/Voc Power Unit     1 per rack
--------------------------------------------------------------------------------
</TABLE>

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<TABLE>
<S>       <C>                          <C>
2.1.5     Fan Unit                     1 per RPN
2.1.6     19" C&C Rack                 1 per 300 channels (min 4 initially)

                                       E1's SIZING
                                       PSTN Traffic
                                       PSTN traffic channels/30+
                                       (N+E+W+S traffic ch)/30 * (packing factor-1)*2
                                       Note: (packing factor -1)>=1
                                       (min 2 each N,S,E,W direction for redund)

                                       SBS Traffic
                                       2 Per ChM (each supports 160E)

                                       TOTAL E1's REQUIRED

2.2       FOR NMC #1 (DCN USE ONLY)

                                       REQUIRED MUX/VOC CHANNELS
                                       DCN CHANNELS
                                        For NMC (one link to each of 2 SANs)
                                        2ch (DSP) for each 64 kbps of DCN

                                       Total Voc/Mux Ch (DSP) required
2.2.1     Vocoder/Mux Card             Max 8 channels per card
2.2.2     RPN/RPC Processor            (Min 2) maximum of 2 Mbps each
2.2.3     19" 6RU Shelf                1 per RPN
2.2.4     Power Unit
2.2.4.1   RPN Power Supply             1 per RPN
2.2.4.2   Mux/VOC Power Unit           1 per Rack
2.2.5     Fan Unit                     1 per shelf
2.2.6     19" C&C Rack                 1 per NMC

2.3       FOR NMC #2 (DCN USE ONLY)
                                       REQUIRED MUX/VOC CHANNELS
                                       DCN CHANNELS
                                        For NMC (one link to each of 2 SANs)
                                        2ch for each 64 kbps of DCN

                                       Total Voc/Mux Ch (DSP) required
2.3.1     Vocoder/Mux Card             Max 8 channels per card
2.3.2     RPN/RPC Processor            (Min 2)b maximum of 2 Mbps each
2.3.3     19" 6RU Shelf                1 per RPN
2.3.4     Power Unit
2.3.4.1   RPN Power Supply             1 per RPN
2.3.4.2   Mux/VOC Power Unit           1 per Rack
2.3.5     Fan Unit                     1 per 2 shelf
2.3.6     19" C&C Rack                 1 per NMC
2.4       Installation Materials       1 per SAN
</TABLE>
--------------------------------------------------------------------------------
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<TABLE>
<CAPTION>
3                             DIGITAL COMMUNICATION NETWORK
-------   ----------------------------------------------------------------------
<S>       <C>                          <C>
3.1       SAN - 2 PORT AT 8 SANs
3.1.1     Switching Hub/Router
3.1.1.1   Ethernet Switch 10Bt/100Bt   1 per backbone, i.e. 2 per SAN
3.1.1.2   X.25/TCP Brg                 2 per SAN (MSSC OAM INTFC)
3.1.1.3   Hub 10Bt                     2 per SAN for HPNC, MSSC OAM et.

3.1.2     Compression
3.1.2.1   Compression                  1 per A & B links in the E & W directions

3.1.3     Installation Materials
3.1.3.1   19" Rack
3.1.3.2   Cables
3.1.3.3   Hardware

3.2       SAN - 3 PORT AT 4 SANs
3.2.1     Switching Hub/Router
3.2.1.1   Ethernet Switch 10Bt/100Bt   1 per backbone, i.e. 2 per SAN
3.2.1.2   X.25/TCP Brg                 2 per SAN (MSSC OAM INTFC)
3.2.1.3   Hub 10Bt                     2 per SAN for HPNC, MSSC OAM etc.

3.2.2     Compression
3.2.2.1   Compression                  1 per A & B links in the E & W & N directions
3.2.3     Installation Materials
3.2.3.1   19" Rack
3.2.3.2   Cables
3.2.3.3   Hardware

3.3       NETWORK MANAGEMENT CENTRE (NMC)
3.3.1     Hub/Router
3.3.1.1   Hub 10Bt                     1 per NMC Port
3.3.2     Compression
3.3.2.1   Compression                  1 per A & B link for each NMC

3.3.3     Installation Materials
3.3.3.1   19" Rack
3.3.3.2   Cables
3.3.3.3   Hardware
</TABLE>
--------------------------------------------------------------------------------
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9.4. NETWORK INTERFACE

         9.4.1. A two port SAN shall provide a capacity, for connecting calls to
         the terrestrial networks, of 320 Erlangs to the PSTN via one route plus
         64 Erlangs in two equal parts for inter-site traffic, excluding DCN and
         signalling which shall be provided appropriately.

         9.4.2. A three port SAN shall have provide a capacity, for connecting
         calls to the terrestrial networks, of 320 Erlangs to the PSTN via one
         route plus 96 Erlangs in three equal parts for intersite traffic,
         excluding DCN and signalling which shall be provided appropriately.

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10. SECTION NOT USED

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11. REFERENCE CONFIGURATION FOR PERFORMANCE MEASUREMENT

                           [TEST CONFIGURATION NO. 1]
                     [FIGURE 11-1 TEST CONFIGURATION NO. 1]

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[TEST CONFIGURATION NO. 2]

                     [FIGURE 11-2 TEST CONFIGURATION NO. 2]

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[TEST CONFIGURATION NO. 3]

[FIGURE 11-3 TEST CONFIGURATION NO. 3]

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[TRAFFIC BLOCK DIAGRAM]

[FIGURE 11-4 TRAFFIC BLOCK DIAGRAM]

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12. OTHER CONTRACT SERVICES

12.1. OPERATIONAL TEST & DEVELOPMENT FACILITY (OT&DF) (F/R)

12.1.1. GENERAL

         12.1.1.1. The OT&DF shall be used for the training and testing facility
         for human resources, equipment, services and new developments. The
         OT&DF shall have the provision to connect into the live network and
         support other off-line analysis activities and exercises. In addition,
         the OT&DF shall be used to support particular investigations concerning
         the network and help with the continual planning and evolution of the
         network.

         12.1.1.2. The OT&DF shall represent a multi-functional facility for the
         support of Operations and Engineering personnel.

         12.1.1.3. In order to deliver these capabilities then the OT&DF shall
         support and/or provide the following capabilities/facilities :

                  1.       TRAINING FACILITY : The Centre shall be the primary
                           facility for both technical and operational training
                           including vendor training (e.g. MSSC). To encompass
                           this then the Centre shall be equipped with a scaled
                           down version of the SAN equipment. Also, the Centre
                           shall include test equipment and tools used by the
                           operations staff in the management of the live
                           network.

                  2.       ENGINEERING AND TECHNICAL DEVELOPMENT FACILITY: The
                           centre shall provide the facilities which allow
                           engineers to develop potential new services/features.

                  3.       TEST AND VALIDATION FACILITY : The Centre shall be
                           used to test new engineering plans before
                           introduction. The centre shall have the capability
                           for performing an array of tests for pre-service,
                           in-service, remote, and local testing of hardware,
                           software and services. In addition, the OT&DF shall
                           be used to develop, test and prove the suitability of
                           operations procedures which shall be adopted at the
                           NMC and/or SAN sites.

                  4.       OPERATIONAL TESTING : The centre shall allow for some
                           live testing using spare capacity in the ICO space
                           segment.

                  5.       DEMONSTRATION FACILITIES: The OT&DF shall be equipped
                           with demonstration capabilities for benefit of
                           prospective customers, operators, and service
                           providers.

                  6.       TEST EQUIPMENT : The Centre shall have the capability
                           to run off-line (via use of purpose built equipment
                           and simulators) and on-line testing. The later shall
                           require authorisation and access to an operational
                           SAN.

         12.1.1.4. The OT&DF is a miniature ICO network restricted to one SAN
         and with restricted capacity within that SAN.

         12.1.1.5. The OT&DF shall comprise of the items listed below. For a
         more detailed list of items, see the equipment list of Annex 1 of the
         SOW. Note also that in case of conflict, Annex 1 of the SOW shall take
         precedence over the equipment list contained within this document.

         12.1.1.6. Two complete RFT subsystems, including both C-band and S-band
         Equipment (excluding the axial ratio compensation subsystem and
         depending on location the radome, de-icing).

         12.1.1.7. A set of the following hardware;

                  1.       A minimum of 14 BCCH Signalling Channel Units

                  2.       A minimum of 14 RACH Signalling Channel Units

                  3.       A minimum quantity of TCH Communications Channel
                           Units to allow for 40 Erlangs (including Diversity)
                           of traffic.

                  4.       A TNM with a capacity of 32 Erlangs

                  5.       A minimum of 4 HPN Channel Units

                  6.       A minimum set of channel managers capable of
                           supporting the above channel units. Associated
                           Channel Managers: A minimum set capable of supporting
                           the above channel units.

                  7.       A SAN OSS system responsible for the training SAN
                           only. This OSS system shall be connected to the
                           centralised ICO NMC.

                  8.       Miscellaneous: ALC, AFC and all other subsystems
                           required for normal operation of the SAN.

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         12.1.1.8. Fully operational software for the test SAN enabling it to
         function as a reduced capability (in terms of traffic only) SAN. The
         OT&DF shall only contain special software to the extent that is
         necessary to override its operations and protect the main ICO network
         from interference.

12.1.2. SAN NETWORK MANAGEMENT

         12.1.2.1. A local network management subsystem (LNMS - including the
         NODE-OS, NMC NMS and SRMC) shall be installed at the OT&DF.

         12.1.2.2. The LNMSC shall have the ability to be operated from the
         centralised ICO NMC site. A dedicated 64kbps link shall be used to link
         the two sites. This link shall be controlled by the TNM.

         12.1.2.3. The OT&DF will have its programmable routers under the
         control of the main network NMS, which will allow for isolation or
         connection of the SAN portion to the main network.

         12.1.2.4. When isolated, the technical centre SAN may be connected to
         the local NMC.

         12.1.2.5. Connection of the local NMC to the technical centre SAN
         portion is under control of the main network NMS.

         12.1.2.6. The RF equipment at the technical centre SAN shall normally
         be under control of SAN-OSS, however, an override control function will
         be provided.

         12.1.2.7. This override control function will enable the SAN RFT to be
         activated when permission is granted from the NMC. It may be
         de-activated at any time autonomously by the technical centre SAN.

         12.1.2.8. The local NMC shall at no time be capable of being connected
         to the main DCN.

         12.1.2.9. The main NMC may request control of the technical centre from
         the Local NMC or may release control to the local NMC.

12.1.3. MSSC/VLR AND HLR/AuC

         12.1.3.1. A minimum configuration of the following list of equipment:

                  1.       MSSC/VLR

                  2.       HLR/AuC

                  3.       IN

                  4.       CCS7 Links

                  5.       Trunks

                  6.       Conference Links

                  7.       Echo Cancellers

         12.1.3.2. The functions of these MSSC/VLR/HLR/AuC/IN shall be identical
         to that available for the same equipment in a SAN.

         12.1.3.3. A simulator connection limited by the simulator's
         capabilities, shall be provided.

         12.1.3.4. A general purpose patch field will be provided to provide
         interconnection of various portions of the IF equipment and simulators.

         12.1.3.5. Any additional equipment to provide for varying
         configurations, particularly, band switching satellites simulation
         conversions, is not provided in this contract.

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SCHEDULE 14: STATEMENT OF WORK

<PAGE>   428
[ICO LOGO]                                             ICO GLOBAL COMMUNICATIONS
                                                         1 QUEEN CAROLINE STREET
                                                                     HAMMERSMITH
                                                                   LONDON W6 9BN
                                                                  UNITED KINGDOM

                                                               TEL: 181 600 1000
                                                               FAX: 181 600 1199

                                                           I-CO SERVICES LIMITED
                                              REGISTERED IN ENGLAND: NO. 3045294
                                         REGISTERED OFFICE: 1 QUEEN CAROLINE ST.
                                                                LONDON W6 9BN UK

                       ANNEX 11 - AIR INTERFACE SIGNALLING
                               PROTOCOL VALIDATION

                             COMMERCIALLY SENSITIVE
                             REPRODUCTION PROHIBITED

CONFIDENTIALITY STATEMENT

ALL INFORMATION CONTAINED IN THIS DOCUMENT IS CONFIDENTIAL AND PROPRIETARY TO
ICO GLOBAL COMMUNICATIONS OR ANY OTHER MEMBER OF THE ICO GLOBAL COMMUNICATIONS
GROUP AND INTENDED ONLY FOR THE ADDRESSEE TO WHOM THIS COPY IS ADDRESSED. THE
RECIPIENT SHALL NEITHER COPY, DISTRIBUTE, DISCLOSE OR USE THE INFORMATION
CONTAINED IN IT FOR ANY PURPOSE OTHER THAN FOR WHICH THIS DOCUMENT HAS BEEN MADE
AVAILABLE NOR PERMIT ANYONE ELSE TO DO THE SAME. THE RECIPIENT SHALL BE HELD
FULLY LIABLE FOR ANY WRONGFUL DISCLOSURE OR USE OF ANY OF THE INFORMATION
CONTAINED IN THIS DOCUMENT BY HIM, OR HIS OFFICERS OR EMPLOYEES OR ANYONE ELSE
TO WHOM HE MAKES THE INFORMATION AVAILABLE.

  DOCUMENT NO.:        EN-IG-ICO-SW/000013

  VERSION:             2.2

  DATE:                26 February 1997

  PREPARED             ICO                           NEC

  AUTHOR:              TITLE: VP ICONET              TITLE: PM

                       SIGNATURE: /s/ G.L. Titzer    SIGNATURE: /s/ T. Furukawa

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AMENDMENT RECORD

<TABLE>
<CAPTION>
  REVISION         DATE          CN NO.        REASON FOR CHANGE
  --------         ----          ------        -----------------
<S>                <C>           <C>           <C>
  1.0              14/2/97                     NEC Contract Issue
  2.0              17/2/97                     Final NEC Comments
  2.1              18/2/97                     Incorporate minor comments to para's 6.1 and 7.5
  2.2              26/2/97                     Minor editorial changes
</TABLE>

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                                TABLE OF CONTENTS
1. GENERAL                                                                     4

2. OBJECTIVES AND SCOPE                                                        7

3. TASK ORGANISATION                                                           9

4. SUPPORT MATERIAL                                                           12

5. TASKS                                                                      12

6. DOCUMENTATION                                                              23

7. AIPV PROJECT MANAGEMENT                                                    29

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1. GENERAL

The Contractor will supply ICO with Air Interface signalling protocol validation
services and facilities (the "AIPV") as set out in this ANNEX.

1.1 BACKGROUND

ICO is progressing the technical definition and procurement of a global
satellite communications system providing digital cellular-like services to
users equipped with handheld and other User Terminal (UT) types.

Communication is provided via a constellation of satellites in intermediate
circular orbits, each providing transparent bi-directional relay of
communications between the UTs and Satellite Access Nodes (SANs) using the
ICO-defined Air Interface. The ICO System is based on the GSIM terrestrial
cellular network concept with the minimum changes required to operate
efficiently in the satellite environment.

1.2 DIFFERENCES IN THE ICO AND GSM AIR INTERFACES

A key difference between satellite and cellular systems is that the latter has a
direct radio link between the network infrastructure and the UT whereas the ICO
system has a constellation of moving satellites providing time-varying
connectivity between the network infrastructure and the UT. Furthermore a
satellite link is power-limited, and requires line of sight visibility for calls
to proceed. The ICO Air Interface design is therefore optimised to make most
efficient use of the satellite resource while retaining maximum commonality with
GSM. The set of logical channels provided by the physical layer is functionally
similar to GSM, but details of the TDMA slot structure and timing, and the
various channel rates, are ICO-specific.

Another key difference is the extra propagation delay incurred, requiring
optimisations in protocol window sizes and the error correction mechanism in the
link layer.

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Due to the architectural differences between the ICO and GSM systems, the radio
access and control sub-layer (RR) of layer 3 is also significantly different
from GSM, but it uses similar procedures. Finally, the highest layer 3
sub-layers (MM) have the greatest similarity with GSM, with fewer changes
required for the System.

Other features of the System also result in changes from GSM, such as options
for path diversity and a High Power Notification (HPN) facility.

The Air Interface protocol design specification is published to allow different
UT implementations to interwork with the SANs. To allow these competing
implementations to flourish, the specification should be devoid of
implementation-specific details and requirements, in addition to satisfying the
obvious requirements of completeness, consistency and a lack of errors and
ambiguities.

1.3 AIR INTERFACE SIGNALLING PROTOCOL VALIDATION: USE OF SDL

The purpose of protocol validation is to remove as many problems as possible
before the design specification proceeds to the next phase, namely
implementation, where problems will become more expensive and time consuming to
fix.

Protocol validation for this AIPV work shall be achieved by first specifying the
protocols in the formal SDL language, and then proceeding to perform simulations
by defining and running test scenarios for protocol exchanges. The simulations
include both the automatic state-space search and run-time execution. The test
scenarios cover user services under different radio link conditions listed in
agreed SDL Test Plan.

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An additional benefit of the complete and validated SDL description is that it
can be issued in support of the Air Interface specification. This provides a
more formal specification, which benefits implementers and aids in problem
resolution and maintenance later in the life of the System. Follow-on products
and services can also be prototyped and developed much more quickly. Finally, it
also assists in deriving comprehensive test coverage for the conformance test
requirements.

Protocol validation will be performed for both network and mobile entities,
allowing peer-to-peer simulations to be performed. SDL implementations shall be
done for the Layer 2, the RR and the MM sublayers of Layer 3 of the Air
Interface specifications. The CC sublayer shall be outside the scope of this
task. Areas that are not suitable for SDL implementation (e.g., physical layer,
user interface/MMI commands) will be covered as necessary via scripts or other
means.

The 1992 version of SDL (ITU-T Z.100) ("SDL") shall be used. SDL offers the
advantages of object-oriented design techniques, which may be exploited at the
Contractor's discretion. The SDL is used to formally describe the structure,
behaviour and data of the System.

Given the similarities between the ICO and GSM signalling layers, it may be
possible to reuse existing GSM SDL modified for the ICO specification.

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2. OBJECTIVES AND SCOPE

2.1 OBJECTIVES

The objectives of the AIPV are to:

1.       Ensure the correctness and completeness of the Air-Interface signalling
         protocol specifications, such that the Air-Interface can deliver the
         required user services.

2.       Ensure the robustness of the Air-Interface signalling protocol
         specifications against channel error conditions and improper
         operational conditions listed in agreed SDL Test Plan.

3.       Ensure the integrity of the Air-Interface signalling protocol
         specifications, such that the specification shall be robust against
         race conditions, unhandling signals, dead locks, live locks,
         out-of-range variables, etc.

2.2 SCOPE

The scope of the AIPV work is listed as the following points:

1.       The ICO Air-Interface signalling protocol is defined in the following
         ICO Air Interface documents, version 3.0 or later:

         a)       ICO 03.22.A1

         b)       ICO 103.40.A1

         c)       ICO 05.xx series

         d)       ICO 04.06.A1

         e)       ICO 04.07.D1

         f)       ICO 04.08.A1

         g)       ICO 04.08.A2

         h)       ICO 04.08.A3 (out of scope)

         i)       ICO 04.08.A4 (CC Part - out of scope)

         j)       ICO 104.08.Al (HPN-RR)

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         Additionally, GSM specifications, other than those superseded by the
         above documents, may also apply.

2.       ITU-T Z.100 (1992 or later) Specification and Description Language
         (SDL) shall be used to formally specify the ICO Air-Interface
         signalling protocol

3.       ITU-T Z.120 (1992 or later) Message sequence chart (MSC) is preferred
         to be used to define validation references.

4.       The latest version of SDT from TeleLOGIC shall be used as the main
         software tool for editing, simulating and validating the ICO
         Air-Interface signalling Protocol.

5.       SDL implementations shall be done for the Layer 2, the RR and the MM
         sublayers of Layer 3 of the Air Interface specifications. The CC
         sublayer will be outside the scope of this task. The HPN Air-Interface
         protocol shall also be under the scope of SDL implementation and
         protocol validation, limited to Layer 3 RR, HP-TL and HP-AL protocol.

6.       SDL implementations shall be done on the same layering architecture as
         the protocol specifications.

7.       SDL implementation shall be done for both the network as well as the
         mobile entities.

8.       Areas that are not suitable for SDL implementations (e.g. physical
         layer, user interface/man machine commands) will not be implemented in
         SDL but if any entity is as part of the test environment, it may be
         implemented as necessary via scripts or other means.

9.       Message encoding/decoding may be implemented using programming
         language(s) other than SDL.

10.      Test environment may be built by using the most convenient method and
         programming language(s) and/or SDL.

11.      SDL specification shall be in modular in order to facilitate phased
         implementation and incremental testing, peer-to-peer validation and
         parallel development. The distinction of network and mobile stacks
         should be clear. As an option, It may be possible to use SDL'92 object
         oriented features to create multiple network and/or mobile stacks for
         the purpose of simulation.

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12.      The aim of the validation/simulation is to cover realistic operational
         scenarios, such as simultaneous transactions(1) (e.g. SMS with voice
         call, voice call with in-call Supplementary Services, etc.),
         transaction race condition (e.g. mobile originated call and mobile
         terminated call happening at the same time), RACH contentions, channel
         error, channel delay, channel blockage, etc.

13.      Initially coverage analysis shall be done by using SDT tool for all
         test cases identified in Section 5.3.1. The objective is to do
         coverage analysis by using SDT tool for each test case identified in
         agreed SDL Test Plan. The goal is to have minimum number of test case
         but maximum test coverage.

The scope of the validation task will be to take the specification developed by
the ICO Air Interface definition team and perform validation on it. Any problems
found by the validation task will be reported to ICO Air-Interface definition
team for correction action. The Contractor shall not modify the Air Interface
Definition. Any changes to the Air Interface definition by the ICO Air Interface
definition team may result in rework by the Contractor, which may include
changes in SDL/MSC and revalidation. Such changes shall be accommodated as per
procedures in Section 7.3.

3. TASK ORGANISATION

The AIPV work is broken down into four top-level tasks, described in detail
later:

         -        architectural design and partitioning for each signalling
                  layer and its components,

         -        produce and verify the SDL specification for each layer,

         -        validation of the specifications using SDT simulator and SDT
                  validator,

         -        provide a final analysis of specification and test coverage.

(1)      It is to demonstrated that MM, RR, L2 can support simultaneous
         transactions at the CM sub-layer.

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The two main tasks of producing the SDL specifications and performing the
validation are in practice likely to be interleaved and run in parallel. This
will be the case for several reasons, including the fact that bugs may be found
during validation which require changes and/or amendments to the specification,
and the fact that a phased implementation approach will be requested for the SDL
specification work (see Section 3.1). The specification task will include formal
verification tasks, such as syntax and semantic analysis, consistency checking
etc.

3.1 METHODOLOGIES

Formal specification and verification/validation of the Air Inter-face needs to
be automated as far as possible to cope with the complexity and scale of the
specification. The real-time nature of the protocols requires automated
simulation to fully exercise all parallel functionality, including timers etc.
The large number of simulations (which becomes increasingly onerous when
considering the repeated running of tests for "what-if" investigations and
regression purposes after each software upgrade) also demands an automated
solution. Finally, automation provides benefits in terms of repeatability and
consistency of tests and reporting across all scenarios, and in eliminating
sources of human error.

The use of the ITU-T Z.100 standard, SDL has gained wide-spread international
acceptance in the specification of telecommunication and other real-time
protocols, as it provides proven, comprehensive and well understood methods and
graphical representations to produce open, flexible, testable and
supportable/maintainable specifications. Furthermore, this language now has
extensive software tool support and design methodologies. Tools provide for
context-sensitive editing and formatting, automated conversions between SDL and
MSC (ITU-T Z.120) diagrams, automated static analysis checking, and performance
of validation simulations (using a single, integrated and consistent definition
of the protocols).

Associated standards that could be used with SDL for the encoding and decoding
formats and rules in the specification are: ISO/IEC8824 (ASN.1; aligned with
X.680-3), and ISO/IEC8825 (Basic Encoding Rules for ASN. 1; aligned with X.690).

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The AIPV work shall be performed in a phased manner to validate "core"
functionality first, before proceeding to filling out the specification and
tests for the remaining protocol functionality. Core functionality in general
represents nominal, "straight-line" (non-error case) transitions through the
protocol states. This approach will be key to risk mitigation and early
validation of the most important aspects of the protocols, and realises the
known difficulties in fully specifying and validating a specification in a
formal way. Indeed, findings from the validation work should be directed to feed
back into the protocol specification and drive some of the changes in the
up-issues of the documents. The further the AIPV work proceeds, the greater the
confidence and comprehensives that can be achieved, and it should be the case
that the number of problems found in the protocol definitions will fall off
progressively.

Modularity is an essential concept to aid with the phased implementation and
incremental testing, and can be achieved by a concept such as "sub-layering"
i.e. as each protocol layer in turn is worked on, it is defined in such a way
two sub-layers can be defined. One is the peer-to-peer communication sub-layer
which does not contain any element to interface to the lower layer. The other
sub-layer is the transmission sub-layer which can send and receive primitive to
the lower layer, such as establish a channel. In this way, the core function of
a protocol layer can be largely validated without relying on having lower
stacks. This concept is fully illustrated in Example I.2-2 of ITU-T Z.100-
Appendix I "SDL Methodology Guideline".

Full end-to-end validation must of course await availability of the full lower
layers, but partial results can be produced before this. This modularity also
helps in partitioning work and allows progressing of different layers in
parallel, but a prerequisite is a definition of all service interfaces between
layers. Component level testing shall be done before a component is integrated
with other components.

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4. SUPPORT MATERIAL

ICO shall provide the following critical input documents, at the indicated
baseline versions, as a pre-condition for commencement of the AIPV work:

-        ICO System Definition document - Version 6,

-        ICO Air-Interface Specifications as listed in Section 2.2.

-        SDLs for existing GSM specifications (if available).

Other relevant GSM specifications will be supplied by ICO on demand.

The signalling protocol specifications will be in a natural language format
(English), supplemented by informal Message Sequence Charts (MSCs), State
Transition Diagrams. Nominally, these will be based on ICO derivations of GSM
Phase 2 Recommendations in the 04 and 05 series. These reference documents will
define the physical layer, message formats, protocol interactions etc., to
enable detailed specification of the protocols in SDL.

5. TASKS

The AIPV work, described in this Annex, is organised into four tasks as follows:

5.1 TASK 1 : ARCHITECTURAL DESIGN AND PARTITIONING

This task produces the architectural design and partitioning for each signalling
layer and its components. The structure of the system shall be as modular and
well organised as possible for ease of readability and maintenance. Hierarchical
decomposition shall be used to mask details whilst providing an obvious path to
proceed with more detailed specification and an easy means to navigate through
the protocol interactions.

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The task involves the following aspects:

-        functional and state partitioning of each layer of the network/mobile
         entities into (hierarchical) components. Modularity shall be built into
         the SDL specification to allow peer-to-peer as well as system level
         validation,

-        definition and specification of interfaces,

-        definition of structures for signal encoding and decoding,

-        modular design allowing component level testing (as well as system
         level testing).

Components shall be arranged to identify the following interactions clearly and
easily:

-        peer-to-peer protocol messages,

-        inter-layer interfaces and primitives,

-        Description of test environment

-        usage of internal management functions to make the SDL executable,

-        ad-hoc entities as the means of component testing.

The methodology used for design shall aim to enhance readability. To achieve
this, there may be means to distinguish and hide implementation details that are
needed for running simulations but which are not part of the protocol
specification to be published. These may include calculation and communication
interface specifics, software for performing the actual message encoding and
decoding, and for the network entity, a form of "test harness" to simulate the
network infrastructure.

The distinction between the mobile and network stacks shall be clear, and it
shall be possible to create multiple mobile entities and/or network entities for
some simulation scenarios.

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It shall be possible to analyse, monitor and control a peer-to-peer layer
independently of the others, for purposes of SDL validation, using transparent
or "null" lower layers in the stacks to transparently pass information between
peers. This concept is fully illustrated in Example I.2-2 of ITU-T Z.100 -
Appendix 1 "SDL Methodology Guideline". As there will be dependencies and
interactions of all layers on the layers below, the SDL specification and
validation should nominally be performed from lower layers to higher layers. For
each layer under test then, it is assumed that all layers below are operating
correctly to specification.

The output from this task shall be an ICO Air Interface SDL Architectural Design
Document (ADD), providing the main structure of the SDL processes, groups and
hierarchy in the mobile and network stacks. The document shall specify all
external interfaces for each functional group, including details of peer
messages, service primitives and protocol services required for running of
simulations, and shall be kept up-to-date until the end of the contract.

5.2 TASK 2: SDL SPECIFICATION

This task is to produce the detailed SDL specification for each layer, taking
the structure defined in the ADD as a starting point in which to fill in the
detailed steps and events. The specification task shall include static
verification testing, such as syntax and semantic analysis, consistency checking
etc. Specifically this task involves:

-        SDL Editing, - using SDT to create SDL diagrams for the components
         identified in the previous task.

-        SDL Analysis- using the tool to analyse (execute the syntax and
         semantic checks) the SDL diagrams. After the analysis phase passes, the
         SDL will be ready for simulation and protocol validation.

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As previously stated, the ICO signalling protocols are based on GSM. The
deviations from GSM become more and more significant as we descend lower down
the OSI stack, from L3-MM, L3-RR to L2, with the maximum deviation being in the
data-link layer, L2. ICO also introduces a HPN service which has no equivalence.
in GSM. Since ICO Air-Interface signalling protocols have their roots in GSM, it
would be advisable for the Contractor to utilise the knowledge on GSM UT, GSM
Switch and GSM BSS it already possesses.

The output from this task shall be a complete SDL specification for each
protocol layer, with all supporting SDL and other software and test-ware
infrastructure to perform simulations.

The SDL and message (being inter-process, inter-layer service primitives or
inter-peer PDU's) encoding/decoding rules shall be available in electronic and
hard-copy form. Priority shall be given to producing the specification in a
format that maximises conciseness and readability, as the hard-copy is intended
to support the published air interface specifications. All definitions and
nomenclature to assist in interpreting and understanding the SDL specifications
shall also be made available in the same or separate document(s).

To be executable for simulation or validation, SDL process management logic
shall also be included.

The Contractor shall provide an ICO Air Interface SDL High Level Design Document
(HLD), describing the detailed units, procedures, timers etc. used in the
specification. This document is intended to be a developer's guide to assist in
future maintenance of the SDL specifications.

All SDL and other specifications, and all documentation, shall be kept
up-to-date until the end of the contract, incorporating any changes resulting
from the validation task.

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5.3 TASK 3: VALIDATION

This task validates the SDL specifications produced in the previous task. The
primary means to achieve this is by simulation, defining and running test
scenarios involving standalone protocol stacks and blocks, and also interaction
between peers, simulating major protocol exchanges under a selection of lower
layer and link conditions (such as missing or out of sequence messages). This
serves to validate both the SDL specifications and the air interface
specifications from which they are derived.

The three main aims of the validation task are to prove:

1.       The protocol specifications meet the ICO service, user requirements
         (e.g. set-up of voice calls, HPN delivery, etc.), and operational
         requirements (e.g registration and location update, handovers,
         diversity set-up and operation etc.) in accordance with the agreed SDL
         Test Plan (STP),

2.       The correctness, completeness, robustness and integrity of the protocol
         specifications (e.g absence of dead-locks, live-locks, unhandled
         signals, race conditions, premature timeouts, mismatched message
         parameter values, data operation errors, inconsistent peer states,
         inconsistent primitive calls, etc.) using SDT validator.

3.       The robustness of the protocol specifications (e.g. missing messages
         due to channel errors, simultaneous transaction race conditions,
         multi-user environment, etc.). This may be achieved using SDT
         simulator.

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In order to systematically validate the protocol, get a good test coverage as
well as to define the test environment, test suites shall be developed. Such
test suites shall consists of SDL's (Test-SDL's) or MSCs (Test-MSCs), or other
programming or script language(s), as required. Test suites shall be developed
and documented as part of the validation task. They shall form a part of the
deliverables at the end of the AIPV project.

Test coverage should at a minimum be sufficient to exercise all significant
nominal and error-case state transitions, in addition to all significant system
and user functional requirements, in order to gain confidence of correct
operation.

Test scenarios shall be documented in an ICO Air Interface SDL Test Plan (STP),
which shall contain the following information for each:

         -        test purpose,

         -        test configuration, environment and method,

         -        test coverage,

         -        detailed test procedure,

         -        expected results and pass/fail criteria.

Although the focus here is validation not conformance testing, the method of
producing the test suite may use ISO Standard IS9646 Partl, Part2 and Part4 as
guidance.

The SDL, software, test-ware and documentation shall be placed under a full
configuration control system. The SDL specifications should clearly define what
version of the Air Interface Specification documents they are compliant with.

A full run of these validation tests shall be formally witnessed by ICO, and a
formal test report (ICO Air Interface SDL Test Report (STR)) shall be produced,
detailing actual vs. expected results, and any rectification/retest actions
taken.

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5.3.1 Set of Test Cases

This section describes the set of test cases which shall be the basis for the
SDL Test Plan. Some general scenarios applicable to each layer is given in the
section below. The scope of validation of each layer is also listed in sections
below.

5.3.1.1 General

Applicable to all test groups:

1.       Successful procedure transaction - should exercise all combination of
         the allowable variables in the initial message

2.       Unsuccessful procedure transaction - should exercise all possible
         unsuccessful causes.

3.       Recovery from loss of one or more messages.

4.       Where applicable some of the test configurations shall include multiple
         beams, multiple satellites and multiple SANs.

5.       Multiple UTs shall be used to demonstrate contention resolution, paging
         and HPN

6.       If any interacting entity is not part of the air interface, the test
         environment shall be able to receive and send messages to the air
         interface entities under the control of the test script or with help of
         test operator.

5.3.1.2 Data link layer test group

The test cases shall demonstrate the correct operations of the following

1.       Contention resolution when establishing a data link after an access
         request has been made on the RACH.

2.       Unacknowledged information transfer service:

         a)       provision of data link connection between layer3 entities for
                  unacknowledged information transfer.

         b)       identification of data link connection endpoints

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         c)       no verification on PDU arrival within the data link layer

3.       Acknowledged information transfer service

         a)       provision of data link connection between layer3 entities for
                  acknowledged information transfer of PDUs with layer2.

         b)       identification of data link connection endpoints

         c)       sequential delivery of layer3 messages to the peer layer 3
                  entity

         d)       selective retransmission of missing information frames

         e)       notification to layer3 of unrecoverable errors detected by the
                  data link layer

         f)       flow control

         g)       segmentation of a layer 3 message if the message is longer
                  than the information field of the data link layer PDU and
                  re-assembly of multiple PDUs corresponding to a given layer 3
                  message

         h)       detection of duplicates

         i)       suspension and resumption of information transfer during
                  channel reassignment procedures

5.3.1.3 Radio resource layer test group

The test cases shall demonstrate the correct operations of the following:

1.       The following list of elementary procedures as listed in ICO 04.08,

         a)       System information broadcast

         b)       Immediate assignment Procedure

         c)       Immediate assignment response procedure

         d)       Paging request procedure

         e)       Channel release procedure

         f)       HPN system information broadcast procedure

         g)       Measurement report procedure

         h)       Path redefinition procedure

                                       19        Confidential and Proprietary to
                                                   ICO Global Communications
<PAGE>   447
--------------------------------------------------------------------------------
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--------------------------------------------------------------------------------

         i)       Re-assignment procedure

         j)       Channel mode modify procedure

         k)       Ciphering mode setting procedure

         l)       Classmark change procedure

         m)       Classmark interrogation procedure

2.       Interaction with data link layer

3.       Interaction with mobility management layer

4.       Interaction with physical layer

5.3.1.4 Mobility management layer test group

The test cases shall demonstrate the correct operations of the following:

1.       The following elementary procedures as listed in ICO 04.08

         a)       MM Idle mode procedure

         b)       TMSI reallocation procedure

         c)       Authentication procedure

         d)       Identification procedure

         e)       Abort procedure

         f)       IMSI detach procedure

         g)       Location updating procedure

         h)       Periodic Updating procedure

         i)       IMSI attach procedure

         j)       MM connection establishment procedure

         k)       MM connection information transfer phase procedure

         l)       MM connection release procedure

                                       20        Confidential and Proprietary to
                                                   ICO Global Communications
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                                                             26 February 1997

2.       UT idle mode operation as per ICO 03.22

         a)       Cell Selection

         b)       Cell Re-selection

         c)       Insertion and Removal of SIMs

         d)       Loss of coverage

         e)       SAN selection

3.       Interaction with radio resource layer

4.       Interaction with connection management layer

5.       Interaction with VLR

5.3.1.5 Structured procedure test group

The test cases shall demonstrate the correct operations of the following:

1.       Location update with IMSI/TMSI

2.       Mobile terminating call with/without diversity

3.       Mobile originating call with/without diversity

4.       Call handover intra-beam, inter-beam, inter-satellite and inter-LES

5.       Call re-establishment

5.3.1.6  HPN test group

The test cases shall demonstrate the correct operations of the following:

1.       HPN Procedures according to ICO TS 103.40.A1 and ICO TS 104.08.A1.

                                       21        Confidential and Proprietary to
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[ICO LOGO]                     Protocol Validation           Issue 2.2
                                                             26 February 1997

5.4 TASK 4: PROVIDE A FINAL ANALYSIS OF SPECIFICATION AND TEST COVERAGE

This task completes the AIPV work with the following analyses and documents:

-        Extent of SDL specification coverage.

-        Extent of simulation test coverage - this may be available
         automatically from the chosen tool environment.

-        Suggestions for further enhancements to test scenarios to further study
         and/or characterise the air interface protocols.

-        Guide to use SDL specifications and simulation scenarios.

-        Guide to modify/upgrading the SDL specifications and simulation
         scenarios - to facilitate future maintenance as the air interface
         protocol specifications evolve.

-        Final report and executive summary.

                                       22        Confidential and Proprietary to
                                                   ICO Global Communications

<PAGE>   450

                                  [Blank Page]
<PAGE>   451
[ICO LOGO]                                             ICO GLOBAL COMMUNICATIONS
                                                         1 QUEEN CAROLINE STREET
                                                                     HAMMERSMITH
                                                                   LONDON W6 9BN
                                                                  UNITED KINGDOM

                                                           TEL: 181 600 1000
                                                           FAX: 181 600 1199

                                                           I-CO SERVICES LIMITED
                                              REGISTERED IN ENGLAND: NO. 3045294
                                         REGISTERED OFFICE: 1 QUEEN CAROLINE ST.
                                                                LONDON W6 9BN UK

             ANNEX 10 - ICONET GROUND FACILITIES ACCEPTANCE CRITERIA

                             COMMERCIALLY SENSITIVE
                            REPRODUCTION PROHIBITED

CONFIDENTIALITY STATEMENT

ALL INFORMATION CONTAINED IN THIS DOCUMENT IS CONFIDENTIAL AND PROPRIETY TO ICO
GLOBAL COMMUNICATIONS OR ANY OTHER MEMBER OF THE ICO GLOBAL COMMUNICATIONS GROUP
AND INTENDED ONLY FOR THE ADDRESSEE TO WHOM THIS COPY IS ADDRESSED. THE
RECIPIENT SHALL NEITHER COPY, DISTRIBUTE, DISCLOSE OR USE THE INFORMATION
CONTAINED IN IT FOR ANY PURPOSE OTHER THAN FOR WHICH THIS DOCUMENT HAS BEEN MADE
AVAILABLE NOR PERMIT ANYONE ELSE TO DO THE SAME. THE RECIPIENT SHALL BE HELD
FULLY LIABLE FOR ANY WRONGFUL DISCLOSURE OR USE OF ANY OF THE INFORMATION
CONTAINED IN THIS DOCUMENT BY HIM, OR HIS OFFICERS OR EMPLOYEES OR ANYONE ELSE
TO WHOM HE MAKES THE INFORMATION AVAILABLE.

  DOCUMENT NO.:            EN-IG-ICO-SW/000012

  VERSION:                 Issue: 2.2

  DATE:                    26 February 1997

  PREPARED                 ICO                           NEC

  AUTHOR:                  TITLE: VP ICONET              TITLE: PM

                           SIGNATURE:                    SIGNATURE:
                           /s/ G.L. Titzer               /s/ T. Furukawa
<PAGE>   452
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[ICO LOGO]            Annex 10 - ICONET Ground Facilities    Issue: 2.2
                               Acceptance Criteria           26 February 1997

AMENDMENT RECORD

<TABLE>
<CAPTION>
  REVIEW         DATE          CN NO.         REASON FOR CHANGE
<S>              <C>           <C>            <C>
  1.0            14/2/97                      NEC Contract Issue
  2.0            17/2/97                      Final Issue
  2.1            18/2/97                      Removal of brackets around Note 1 para's 5.2 and 6.2.1
  2.2            26/2/97                      Minor editorial changes
</TABLE>

                                       1
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                               Acceptance Criteria           26 February 1997

                                TABLE OF CONTENTS

1. GENERAL                                                                   1

2. PROBLEM CLASSIFICATION                                                    1

3. REPRODUCIBLE FAULT CLEARANCE                                              2

4. NON-REPRODUCIBLE FAULT CLEARANCE                                          2

5. LEVEL 1 ACCEPTANCE CRITERIA                                               3

6. LEVEL 2 ACCEPTANCE CRITERIA                                               4

7. FAULT AND TEMPORARY FIX TRACKING AND REPORTING                            4

8. DEFERRED FUNCTIONALITY ACCEPTANCE CRITERIA                                5

                                       2
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                                                       ICO Global Communications
<PAGE>   454
                                                             EN-IG-ICO-SW/000012
[ICO LOGO]             Annex 10 - ICONET Ground Facilities   Issue: 2.2
                               Acceptance Criteria           26 February 1997

1.            GENERAL

1.1      This Annex sets out the Acceptance Criteria for the IGF.

2.       PROBLEM CLASSIFICATION

2.1.     The following definitions are guidelines for the classification of
         problems.

<TABLE>
<CAPTION>
  TYPE OF EFFECT OF PROBLEM                              CRITICAL            MAJOR                 MINOR
  -------------------------                              --------            -----                 -----
<S>                                                      <C>                 <C>                   <C>
  Ability to carry services defined in IGFR              Capacity            Capacity <80%          Capacity
  4.1.1.1, 4.1.1.2, 4.1.2.1, 4.1.3.1, 4.1.3.2,           <50%                                       <100%
  4.1.3.3, 4.1.3.4, 4.2.1, 4.2.2, 4.23 and 4.4.1.

  Ability to charge accurately for services              Any impact
  defined in IGFR 4.1.1.1, 4.1.1.2, 4.1.2.1,
  4.1.3.1, 4.1.3.2, 4.1.3.3, 4.1.3.4, 4.2.1, 4.1.2,
  4.2.3 and 4.4.1.

  Performance of end user services                       Service             Significant           Minor
                                                         unusable            degradation           degradation

  Performance of administration and support                                  Service               Any
  services                                                                   unusable              degradation

  Provision of service features or                                           Not work or not       Any
  supplementary services                                                     available             degradation

  Reproducible or non-reproducible service               > 1 per week        <1 per week
  disruption to multiple calls simultaneously
  (such as may be caused by processor restart)

  Call failure of individual call, with non-                                 Affect more           Affect less
  reproducible characteristics                                               than 1% of an         than 1% of an
                                                                             identified call       identified call
                                                                             type                  type

  Additional attention by operational staff              Constant            Frequent (less        Occasional
                                                                             than once per         (less than
                                                                             hour)                 once per day)
</TABLE>

2.2.     Any dispute which may arise out of the classification of problems, or
         about whether a problem has been fixed to the satisfaction of both
         parties, shall be dealt with by the Dispute Resolution procedures set
         out in the Terms and Conditions.

                                       1
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                               Acceptance Criteria           26 February 1997

3.       REPRODUCIBLE FAULT CLEARANCE

3.1      CRITICAL PROBLEMS

3.1.1    Any temporary fix for previously occurring critical problems shall be
         replaced with the corresponding permanent fix within 3 months.

3.2      MAJOR PROBLEMS

3.2.1    Any temporary fix for previously occurring major problems shall be
         replaced with a corresponding permanent fix within 3 months unless
         otherwise mutually agreed.

3.2.2.   The fix for all other major problems, which do not have a temporary
         fix, shall be implemented and demonstrated no later than 3 months after
         Acceptance unless otherwise mutually agreed.

3.3      MINOR PROBLEMS

3.3.1    Any temporary fix for previously occurring minor problems shall be
         replaced with a corresponding permanent fix within 6 months unless
         otherwise mutually agreed.

3.3.2.   The fix for all minor problems, which do not have a temporary fix,
         shall be implemented and demonstrated no later than 6 months after
         Acceptance unless otherwise mutually agreed.

4.       NON-REPRODUCIBLE FAULT CLEARANCE

4.1      These are faults that occur rarely or which cannot be reproduced in the
         test environment.

4.2.     CRITICAL PROBLEMS

4.2.1.   Any temporary fix for previously occurring non-reproducible critical
         problem shall be replaced with a corresponding permanent fix within a
         target period of 3 months.

4.3      MAJOR PROBLEMS

4.3.1    Any temporary fix for previously occurring non-reproducible major
         problems shall be replaced with a corresponding permanent fix within a
         target period of 3 months unless otherwise mutually agreed.

                                       2
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                               Acceptance Criteria           26 February 1997

4.3.2.   All non-reproducible major problems shall be investigated by the
         addition of a diagnostic change or development of an agreed procedure
         to provide more detailed information so that progress can be made
         towards fixing the fault. The situation shall be reviewed within one
         month of the first recurrence.

4.4      MINOR PROBLEMS

4.4.1    Any temporary fix for previously occurring non-reproducible minor
         problems shall be replaced with a corresponding permanent fix within a
         target period of 6 months unless otherwise mutually agreed.

4.4.2.   All non-reproducible minor problems shall be investigated by the
         addition of a diagnostic change or development of an agreed procedure
         to provide more detailed information so that progress can be made
         towards fixing the fault. The situation shall reviewed within two
         months of the first recurrence.

5.       LEVEL 1 ACCEPTANCE CRITERIA

5.1.     Level 1 acceptance shall applied to each individual SAN or NMC based on
         the results of all Phase 3 Test.

5.2.     Level 1 acceptance shall be granted when the SAN or NMC has no more
         than the following numbers of faults:

<TABLE>
<CAPTION>
  Fault class                            Number of faults                 Number of temporary fixes
  -----------                            ----------------                 -------------------------
<S>                                      <C>                              <C>
  Critical                               0                                5
  Major:                                 0                                20
  End User Services
  Major: Others                          5                                20
  Minor: End User Services               20                               100
  Minor: Others                          See Note 1                       See -Note 1
</TABLE>

  Note 1: All minor other problems shall be recorded and reviewed at the time
  of acceptance and prioritised with target date of 6 months to clear.

                                       3
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                                                       ICO Global Communications
<PAGE>   457
                                                             EN-IG-ICO-SW/000012
[ICO LOGO]             Annex 10 - ICONET Ground Facilities   Issue: 2.2
                               Acceptance Criteria           26 February 1997

6.       LEVEL 2 ACCEPTANCE CRITERIA

6.1      Level 2 acceptance shall applied to the IGF as a whole based on the
         results of all Phase 3 Test.

6.2      Level 2 acceptance shall be granted when the following criteria are
         met:

6.2.1.   the IGF as a whole has no more than the following numbers of faults:

<TABLE>
<CAPTION>
  Fault class                            Number of faults                 Number of temporary fixes
  -----------                            ----------------                 -------------------------
<S>                                      <C>                              <C>
  Critical                               0                                5
  Major:                                 0                                20
  End User Services
  Major: Others                          5                                20
  Minor: End User Services               20                               100
  Minor: Others                          See Note 1                       See Note 1
</TABLE>

  Note 1 : All minor other problems shall be recorded and reviewed at the time
  of acceptance and prioritised with target date of 6 months to clear.

6.2.2.   All Deliverables defined in this Statement of Work have been delivered,
         in accordance with the Statement of Work.

6.2.3.   All Works required in this Statement of Work have been completed.

6.2.4.   Sections 6.2.2 and 6.2.3 shall not apply to the Deliverables and items
         of the Works which are shown in a Master Level Schedule to be provided
         by the Contractor after the date of Phase 3 Test completion.

7.       FAULT AND TEMPORARY FIX TRACKING AND REPORTING

7.1      The procedures described in Sections 6.1.2 and 6.1.3 of Annex 8A of the
         Statement of Work shall be applied to the faults and temporary fixes
         arising from Level I and Level 2 Acceptance Criteria.

                                       4
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<PAGE>   458
                                                             EN-IG-ICO-SW/000012
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                               Acceptance Criteria           26 February 1997

8.       DEFERRED FUNCTIONALITY ACCEPTANCE CRITERIA

8.1.     Deferred Functionality acceptance shall apply to each element of
         functionality that is defined as to be delivered later than the IGF as
         a whole.

8.2.     Deferred Functionality acceptance shall be granted when the following
         criteria are met:

         1.       The functionality has passed all formal tests using the
                  operational ICO System.

         2.       The associated Training, which is agreed to be required and
                  purchased, has been completed.

         3.       The associated Documentation has been delivered.

                                       5
                                                 Confidential and Proprietary to
                                                       ICO Global Communications

<PAGE>   459
[CM 471 BLANK]
<PAGE>   460
                 ICONET INTEGRATION SCHEDULE VERSION 6                21 JAN 97

<TABLE>
<CAPTION>
     ID   TASK NAME                                                          START         FINISH        PREDECESSORS
<S>       <C>                                                               <C>          <C>             <C>
     67   PLMN INTEGRATION                                                  29/06/99     01/11/99
     68         G3.X:SAN - GW/IWFS - PLMNS INTEGRATION AT ALL SANS          29/06/99     01/11/99        64
     69
     70   ADC INTEGRATION                                                   01/04/99     13/10/00              [GRAPHIC OF SCHEDULE]
     71         Q4.X:SAN/NMC - ADC INTEGRATION                              01/04/99     13/10/00
     72            ADC Available for Initial testing                        01/04/99     01/04/99
     73            ADC in service                                           30/07/99     30/07/99
     74            PERFORM SAN-ADC INTEGRATION                              02/08/99     01/10/99        73
     75            NMC Software  version 2 released                         21/04/00     21/04/00
     76            PERFORM INITIAL INTEGRATION, ADC - PRIMARY NMC           24/04/00     21/07/00        75
     77            REGRESSION WITH PRIMARY NMC                              24/07/00     04/08/00        76
     78            Backup NMC available                                     19/05/00     19/05/00
     79            COMPLETE ADC INTEGRATION WITH BACKUP NMC                 07/08/00     13/10/00        78,77
     80
     81   END-TO-END INTEGRATION                                            19/05/00     13/10/00
     82         G5.X:END-TO-END SYSTEM ASSESSMENT                           19/05/00     13/10100
     83            Both NMCs available                                      19/05/00     19/05/00
     84            12 SANs complete phase 3                                 11/08/00     11/08/00
     86            PERFORM ALL INTEGRATION                                  14/08/00     13/10/00        78,84
     86         G6.X:OVERALL NETWORK MONITORING & CONTROL TESTS             22/05/00     13/10/00        83
</TABLE>

                                    [LEGEND]
Project: 1.1 SCH VER 6.MPP
Date: 25/02/97                       Page 4
<PAGE>   461
                                                             EN-IG-ICO-SW/000011
[ICO LOGO]                           Annex 9                 Issue 2.2
                               ICONET INTEGRATION            26 February 1997

TABLE 3. ICONET INTEGRATION SPECIAL TEST EQUIPMENT FOR INDIVIDUAL CAMPAIGN

1. ICONET INTEGRATION TEST EQUIPMENT FOR G0.0-G04

<TABLE>
<CAPTION>
     No.           Test Equipment                    Model No.            Q'ty              Remarks
     ---           --------------                    ---------            ----              -------
<S>        <C>                                 <C>                        <C>               <C>
     1     SAN Simulator                       N/A                        1 Set
     2     Satellite Channel Simulator         N/A                        1 Set
</TABLE>

2. ICONET INTEGRATION TEST EQUIPMENT FOR G0.5

<TABLE>
<CAPTION>
     No.           Test Equipment                    Model No.            Q'ty              Remarks
     ---           --------------                    ---------            ----              -------
<S>        <C>                                 <C>                        <C>               <C>
     1     Integration Simulation Software     N/A                         1 set
     2     PCS Checker (Note 1)                N/A                         1 Set
</TABLE>

Note 1
This PCS Checker shall be delivered to a SAN site as a part of "Test Equipment
for each SAN"

Note 2
General purpose test equipment as listed following are estimated to be borrowed
from HSC free of charge under the co-ordination of ICO

          1) Logic Analyzer
          2) Digital Oscilloscope
          3) Spectrum Analyzer
          4) Signal Generator
          5) Digital Multimeter

3. ICONET INTEGRATION TEST EQUIPMENT FOR G0.6

<TABLE>
<CAPTION>
     No.           Test Equipment                    Model No.            Q'ty              Remarks
     ---           --------------                    ---------            ----              -------
<S>        <C>                                 <C>                        <C>               <C>

     1     SAN-OSS Simulator (Note 1)          N/A                         1 set
     2     SAN Simulator                       N/A                         1 set
     3     Satellite Channel Simulator         N/A                         2 Set
     4     C-band Up/Down Converter            N/A                         1 Set
</TABLE>

Note 1.
As the SAN-OSS is not ready for this testing, PC-based special software will be
used.

Note 2.
The above two Satellite Channel Simulators shall be delivered to SAN sites as a
part of "Test Equipment for each SAN".

                                       12
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<PAGE>   462
                 ICONET INTEGRATION SCHEDULE VERSION 6                21 JAN 97

<TABLE>
<CAPTION>
     ID   TASK NAME                                                     START         FINISH     PREDECESSORS
<S>       <C>                                                          <C>         <C>           <C>
    23
    24    INTEGRATION AT SAN #4                                        28/05/98    30/05/00
    25        G1.1: SAN - SATELLITES - UT INTEGRATION                  28/05/98    30/05/00
    26             End Phase 2-1 at SAN #4                             28/05/98    01/03/99
    27                 RFT                                             28/05/98    28/05/98
    28                 SBS                                             01/03/99    01/03/99
    29                 HPN                                             29/01/99    29/01/99
    30             End Phase 2-2 Tests at SAN #4                       24/03/00    24/03/00
    31             1st PCS Available On Site (TBC)                     06/11/98    06/11/98      32SS-6w       [GRAPHIC OF SCHEDULE]
    32             1st Satellite completes IOT                         17/12/98    17/12/98
    33             Field Traial UT available                           01/01/99    01/01/99      32
    34             G1.1.1: SATELLITE LINK PERF. INTEGRATION            02/03/99    02/05/99      33,27,28.29
    35             G1.1.2: SAN PCS (SRMS) - SATELLITE                  02/03/99    26/04/99      34SS
    36             G1.1.4: SAN - 1 SATELLITE - UT (DONE WITH 1.1.5)    01/12/99    30/05/00      35
    37             G1.1.5: SAN - MULTIPLE SATELLITES - UT              01/12/99    30/05/00      36SS
    38             G1.1.6: HPN INTEGRATION                             27/04/99    24/05/99      35
    39
    40    INTEGRATION AT OTHER SANS                                    31/03/99    11/09/00
    41        End Phase 2-1 at # 12 SAN                                31/03/99    01/10/99
    42             RFT                                                 25/06/99    25/06/99
    43             SBS                                                 01/10/99    01/10/99
                   HPN                                                 31/03/99    31/03/99
</TABLE>

                                    [LEGEND]
Project: 1.1 SCH VER 6.MPP
Date: 25/02/97                       Page 2
<PAGE>   463
                 ICONET INTEGRATION SCHEDULE VERSION 6                21 JAN 97
<TABLE>
<CAPTION>
   ID     TASK NAME                                                          START      FINISH    PREDECESSORS
<S>     <C>                                                              <C>         <C>         <C>
   45          SAN OSS                                                   24/09/99    24/09/99
   46      12th Satellite Complete IOT                                   28/08/00    28/08/00
   47      Multiple, Pro-Production UTs available                        01/08/99    01/08/99
                                                                         27/04/99    11/09/00    35,46FF+2w
   48      G1.1.1/G1.1.2: REST OF SANS & S/C (2 WEEKS/SAN)
   49      G1.1.4/G1.1.5: REST OF SANS & S/C (1 MO/SAN WITH OVERLAP)     23/02/00    08/08100    37SS+12W
   50      G1.1.6: HPN INTEGRATION, REST OF SANS (2 WEEKS/SAN)           25/05/99    25/10/99    38
   51      G1.2: SANS - SATELLITES - UTS INTEGRATION (SAN #4/#5)         01/12/99    25/07/00                  [GRAPHIC OF SCHEDULE]
   52          End of Phase 2-2 Test (#5 SAN)                            25/02/00    25/02/00
   53          End of Phase 3, Dry Run (#1, #2 and #3)                   24/04/00    24/04/00
   54          G1.2.1 : MULT SANS - MULT. SATS - 1 UT                    31/05/00    25/07/00    53,52,37
   55          G1.2.2 : MERGED WITH G1.1.5 (WITH MULTIPLE UTS)           01/12/99    30/05/00    36SS
   56
   67    PSTN INTEGRATION                                                27/07/98    27/09/99
   58      G2.X SAN - GW PSTN INTEGRATION                                27/07/98    27/09/99
   59          MSSC, end of Phase 2-1 (#1 SAN)                           27/07/98    27/07/98
   60          MSSC, end of Phase 2-1 (#12 SAN)                          29/03/99    29/03/99
   61          PERFORM PSTN & ISDN INTEGRATION                           28/07/98    31/05/99    59.60FF
   62          MSSC R8 S/W Release                                       29/03/99    28/06/99
   63               FOA                                                  29/03/99    29/03/99
   64               GA                                                   28/06/99    28/06/99
   65          PERFORM DATA INTEGRATION                                  29/06/99    27/09/99       64
   66
</TABLE>

                                    [LEGEND]
Project: 1.1 SCH VER 6.MPP
Date: 25/02/97                       Page 3
<PAGE>   464
                                                             EN-IG-ICO-SW/000011
[ICO LOGO]                 Annex 9 ICONET INTEGRATION        Issue 2.2
                                                             26 February 1997

<TABLE>
<S>                                                                    <C>          <C>          <C>            <C>          <C>
                                                                                                                 176           176
  Total : 2nd- 1 2th SAN
  SAN/NMC-ADC Integration (G4.1 - G4.3)
         Total : 1st SAN                                                36                                        36           72
         Total : 2nd-12th SAN                                                                                    198          198

End-to-end System Integration and Assessment (G5.1/G5.2)                84            9           147            117          357
Overall Network Monitoring and Control (G6.1 - G6.7)                    35                        147             80          262
Grand Total                                                                                                                  2720
</TABLE>

                                       11
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                                                       ICO Global Communications
<PAGE>   465
                 ICONET INTEGRATION SCHEDULE VERSION 6                21 JAN 97

<TABLE>
<CAPTION>
     ID   TASK NAME                                                  START      FINISH     PREDECESSORS
<S>       <C>                                                       <C>         <C>        <C>
     1    ICONET INTEGRATION DOCUMENTATION                          17/02/97    14/08/00
     2        Test Plan & Requirements                              17/02/97    14/08/00   85SF
     3
     4    INTEGRATION AT HNS - GERMANTOWN                           01/01/98    02/04/99
     5        G0.0 - G0.41 : SAN - UT INTERWORKING                  01/01/98    02/04/99
     6            System Simulator available (physical layers)      01/01/98    01/01/98
     7            System Simulator available (higher layers)        02/03/98    02/03/98
     8            HPN CUs & other equipment available               01/04/98    01/04/98
     9            UT Breadboard available                           01/04/98    01/04/98
    10            INTEGRATION WITH UT SUPPLIER                      02/04/98    02/04/99   9,6,8SS- 13w       [GRAPHIC OF SCHEDULE]
    12    INTEGRATION AT HSC - EL SEGUNDO                           02/02/98    19/05/99
    13        G0.5: SAN PCS - EM PAYLOAD PCP INTEGRATION AT HSC     02/02/98    13/05/98
    14            Satellite processor (pathfinder) available        02/02/98    02/02/98
    15            PCS available (TBC)                               02/02/98    02/02/98
    16         INTEGRATION                                          02/04/98    13/05/98   15,14,9
    17        G0.6: LES - EM PAYLOAD - UT RADIO PATH INTEGRATION    17/03/98    18/11/98
    18            UT simulator available                            17/03/98    17/03/98
    19            System simulator available                        17/03/98    17/03/98
    20            Integration at HSC
14/05/98    18/11/98         16,18,19
    21        G0.7: SAN - EM PAYLOAD - UT GROUND INTEGRATION        19/11/98    19/05/99
    22            Integration at HSC                                19/11/98    19/05/99   20
</TABLE>

Project: 1.1. SCH VER 6.MPP                             [LEGEND]
Date: 25/02/97

                                     Page 1
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         performed, incrementally, accommodating other Sites up to 12 SANs and
         primary/backup NMCs.

8.       ICONET INTEGRATION COMPLETION CRITERIA

         The Contractor shall propose completion criteria for each ICONET
         Integration Campaign. Those criteria shall be mutually agreed between
         ICO and the Contractor before the ICONET Integration Plan (Final)
         approval.

9.       DELIVERABLE DOCUMENTS

         The Contractor shall provide the following documentation to ICO for
         ICONET Integration. ICO shall approve the Final documents.

<TABLE>
<S>                                            <C>
- ICONET Integration Requirement (Draft)       7 months prior to the start date
- ICONET Integration Requirement (Final)       6 months prior to the start date
- ICONET Integration Plan (Draft)              3 months prior to the start date
- ICONET Integration Plan (Final)              2 months prior to the start date
- ICONET Integration Script                    1 month prior to the start date
- ICONET Integration Report (Preliminary)      1 month after completion of integration
- ICONET Integration Report (Formal)           3 months after completion of integration
</TABLE>

                                       9
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                                                       ICO Global Communications
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          TABLE 1 ESTIMATED AVAILABLE RESOURCES FOR ICONET INTEGRATION

<TABLE>
<CAPTION>
                                                             NEC          NEC/A           HNS         Ericsson/Comsat   Grand Total
                                                          Man-Month     Man-Month      Man-Month         Man-Month       Man-Month
<S>                                                       <C>           <C>         <C>               <C>               <C>
  Management for the Contractor's Team member                 105            35                60            105            305
  SAN-UT Interworking (G0.0 - G0.4)                             6                             132             18            156
  SAN-EM Payload-UT Integration
    G0.5 SAN PCS-EM Payload PCP Integration                    10                                                            10
    G0.6 LES-EM Payload-UT Radio Path Test                     12                             180             18            210
    G0.7 SAN/NMC-EM Payload-UT Ground Integration               3                   included G0.6              6              9
  SAN-Satellites-UTs Integration
    G1.1.1 Satellite Link Performance,
    G1.1.2 SAN PCS-Satellite PCP Integration
    and G1.1.6 HPN Integration
         Total: 1st SAN and 1st Satellite                      18                             100             12            130
         Total: 2nd-12th SAN and 2nd-12th Satellite            48                             151             16            215
    G1.1.4 SAN-Single Satellite-UT Integration,
    G1.1.5 SAN-Multiple Satellites-UT Integration
    and G1.2.2 Single SAN-Multiple Satellite-Multiple
         UTs Integration
         Total: 1st SAN                                        30            12                44             24            110
         Total: 2nd-12th SAN                                   55            22                95             22            194
    G1.2.1 SANs-Satellites-UTs Integration                     15             6               135             12            168
        (No.4 and No.5 SAN Only)
  SAN-Gateways-PSTNs Integration (G2.1)
         Total: 1st SAN                                                                                        9              9
         Total: 2nd-12th SAN                                                                                  99             99
  SAN-GWs/IWFs-PLMNs Integration (G3.1 - G3.4)
         Total: 1st SAN                                                                                       40             40
</TABLE>

                                       10
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                                                       ICO Global Communications
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3.4      ICO will be responsible for obtaining all interconnection licences and
         agreements to allow for ICONET Integration.

3.5      ICO will be responsible for providing all network numbering plan data
         and information to be supplied to external operators and the
         Contractor.

3.6      ICO shall provide all necessary communications links for ICONET
         Integration in accordance with the Contractor's requirements on
         capacity, routing and availability dates as specified in 2.8.

3.7      In the resolution of problems between the IGF and other elements of the
         ICO System, ICO shall act as the co-ordinator to expedite the diagnosis
         and rectification of any faults in the other elements of the ICO System
         and to arbitrate between the Contractor and the suppliers of the other
         elements of the ICO System.

3.8      The Contractor shall identify where large numbers of resources are
         required for the ICONET Integration Campaigns and ICO will assist where
         possible.

4.       ICONET INTEGRATION PRE-REQUISITES

4.1      All Equipment and Software shall be debugged and unit tested during
         development, before it is used for ICONET Integration.

4.2      All other elements of the ICO System which have not been supplied by
         the Contractor shall have been successfully tested.

4.3      The existence of any problems with other elements of the ICO System as
         described in Section 4.2 or failure to have completed some of the
         activities specified in 4.1 shall not relieve the Contractor of its
         obligation to perform ICONET Integration.

                                       7
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                                                       ICO Global Communications
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--------------------------------------------------------------------------------

5.   TEST EQUIPMENT

5.1      All test equipment required for ICONET Integration shall be supplied in
         accordance with Table 3 and Annex 2.

5.2      The Contractor shall develop a comprehensive requirements document for
         System simulator and shall submit it to ICO for its approval within 3
         months after the execution of the Supply Agreement.

6.   USE OF SATELLITES

         The Contractor shall carry out ICONET Integration in at least two
         phases. The first phase of ICONET Integration on Site shall use up to
         three satellites as described in the MIIPD. ICO shall inform the
         Contractor of how these satellites shall be deployed at least six
         months prior to the three satellite availability. The second phase of
         ICONET Integration using up to 10 satellites shall also be carried out
         to ensure that the ICO System is fully functional under a full
         satellite constellation.

7.   ICONET INTEGRATION SITES

7.1      The SAN-UT interworking shall be carried out at HNS in Germantown.

7.2      The SAN-EM Payload-UT interworking shall be carried out at HSC, in El
         Segundo.

7.3      The Contractor shall undertake ICONET Integration in at least two
         phases. The first phase of ICONET Integration on-Site shall be at three
         Site(s) to be designated by ICO. The Site(s) will be selected by ICO by
         10 months after the Supply Agreement. The second phase of ICONET
         Integration shall also be

                                       8
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                                                       ICO Global Communications
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--------------------------------------------------------------------------------

2.   RESPONSIBILITY FOR THE CONTRACTOR

2.1      The Contractor shall perform the ICONET Integration planning and shall
         execute the ICONET Integration in accordance with:

-        Requirements specified in this Annex

-        MIIPD

-        The ICONET Integration Schedule attached to this Annex

-        End-to-end service requirements as defined in IGFR

-        Requirements or other documents as supplied by ICO for other elements
         of the ICO System

-        External Interface Documents (ICDs)

-        Guidance from ICO as required by the Contractor

2.2      Configuration control of the ICONET Integration documentation shall be
         maintained by the Contractor throughout ICONET Integration using the
         procedures set out in Annex 6.

2.3      The Contractor shall update and maintain the MIIPD. Execution and
         problem identification/isolation during the ICONET Integration shall be
         performed by the Contractor.

2.4      The Contractor may co-ordinate at an engineering level, with the
         external third party equipment suppliers of other elements of the ICO
         System, at the discretion of ICO. ICO shall be informed of the
         arrangements between the Contractor and suppliers of other elements of
         the ICO System. The performance of equipment and provision of services,
         not supplied by the Contractor, shall be entirely out of the
         Contractor's responsibility.

                                       5
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                                                       ICO Global Communications
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2.5      The Contractor shall support third party trouble shooting as required,
         and assist in the identification of problems with the other elements of
         the ICO System, under the direction of ICO. Any changes in
         specifications and/or ICDs concerning the IGF or other elements of
         the ICO System shall be visible and strictly controlled by the Change
         Control Board.

2.6      The Contractor shall complete a comprehensive set of ICONET Integration
         requirements, scripts and plans for the ICONET Integration as per MIIPD
         and the ICONET Integration Schedule as set out in Table 2.

2.7      The Contractor shall be responsible for testing of all IGF external
         interfaces with suppliers of other elements of the ICO System based on
         the relevant ICDs.

2.8      The Contractor shall, when requested by ICO, supply ICO with
         requirements on capacity, routing and availability dates for
         provisioning required under 3.6.

3.   RESPONSIBILITY FOR ICO

3.1      ICO shall be responsible for the overall co-ordination between the
         Contractor, suppliers of other elements of the ICO System and service
         operators as may be necessary.

3.2      ICO Staff shall witness and where appropriate participate in the ICONET
         Integration.

3.3      ICO will arrange with suppliers of other elements of the ICO System for
         their equipment to be installed or connected to the IGF, when practical
         or possible, to allow ICONET Integration to be carried out.

                                       6
                                                 Confidential and Proprietary to
                                                       ICO Global Communications
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--------------------------------------------------------------------------------

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                       <C>
1. INTRODUCTION                                                            4

2. RESPONSIBILITY FOR THE CONTRACTOR                                       5

3. RESPONSIBILITY FOR ICO                                                  6

4. ICONET INTEGRATION PRE-REQUISITES                                       7

5. TEST EQUIPMENT                                                          8

6. USE OF SATELLITES                                                       8

7. ICONET INTEGRATION SITES                                                8

8. ICONET INTEGRATION COMPLETION CRITERIA                                  9

9. DELIVERABLE DOCUMENTS                                                   9
</TABLE>

                                       3
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                                                       ICO Global Communications
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                                                             26 February 1997
--------------------------------------------------------------------------------

1.   INTRODUCTION

1.1      This Annex provides the framework required to scope, support and guide
         the integration of the IGF with the other elements of the ICO System
         ("ICONET Integration") and the responsibilities of the Contractor and
         ICO respectively.

1.2      The Master ICONET Integration Plan Document (MIIPD)(WG7-70002)
         specifies the range of ICONET Integration to be carried out. For full
         definitions of terms, refer to the MIIPD.

1.3      This ICONET Integration shall include the ICONET Integration Campaigns
         which are set out in Table 1:

         -        SAN-UT Interworking

         -        SAN-EM Payload-UT Interworking

         -        SAN-Satellites-UTs Integration

         -        SAN-Gateways-PSTNs Integration

         -        SAN-Gateways/Interworking Functions-PLMNs Integration

         -        SAN/NMC-ADC Integration

         -        End-to-End System Technical Assessment

         -        Overall Network Monitoring and Control

         The scope of the ICONET Integration Campaigns and the sub-elements of
         these Campaigns described in Table 1 are set out in the MIIPD.

1.4      The scope of the ICONET Integration will be selected by ICO in
         accordance with clause 14 of the Terms and Conditions.

                                       4
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                                                       ICO Global Communications
<PAGE>   474
[ICO LOGO]

                                                       ICO GLOBAL COMMUNICATIONS
                                                         1 QUEEN CAROLINE STREET
                                                                     HAMMERSMITH
                                                                   LONDON W6 9BN
                                                                  UNITED KINGDOM

                                                               TEL: 181 600 1000
                                                               FAX: 181 600 1199

                                                           I-CO SERVICES LIMITED
                                               REGISTERED IN ENGLAND: NO 3045294
                                         REGISTERED OFFICE: 1 QUEEN CAROLINE ST.
                                                                LONDON W6 9BN UK

                          ANNEX 9: ICONET INTEGRATION

                             COMMERCIALLY SENSITIVE
                             REPRODUCTION PROHIBITED

CONFIDENTIALITY STATEMENT

ALL INFORMATION CONTAINED IN THIS DOCUMENT IS CONFIDENTIAL AND PROPRIETY TO ICO
GLOBAL COMMUNICATIONS OR ANY OTHER MEMBER OF THE ICO GLOBAL COMMUNICATIONS GROUP
AND INTENDED ONLY FOR THE ADDRESSEE TO WHOM THIS COPY IS ADDRESSED. THE
RECIPIENT SHALL NEITHER COPY, DISTRIBUTE, DISCLOSE OR USE THE INFORMATION
CONTAINED IN IT FOR ANY PURPOSE OTHER THAN FOR WHICH THIS DOCUMENT HAS BEEN MADE
AVAILABLE NOR PERMIT ANYONE ELSE TO DO THE SAME. THE RECIPIENT SHALL BE HELD
FULLY LIABLE FOR ANY WRONGFUL DISCLOSURE OR USE OF ANY OF THE INFORMATION
CONTAINED IN THIS DOCUMENT BY HIM, OR HIS OFFICERS OR EMPLOYEES OR ANYONE ELSE
TO WHOM HE MAKES THE INFORMATION AVAILABLE.

        DOCUMENT NO.:   EN-IG-ICO-SW/000011
        VERSION:        2.2
        DATE:           26 February 1997

  PREPARED        ICO                         NEC
-------------------------------------------------------------------
  AUTHOR:         Title: VP ICONET            Title:  PM
-------------------------------------------------------------------
                  Signature:                  Signature:

                  /s/ G.L. Titzer             /s/ T. Furukawa

-------------------------------------------------------------------
<PAGE>   475
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                                                             26 February 1997
--------------------------------------------------------------------------------

Amendment record

<TABLE>
<CAPTION>
========================================================================================
REVISION         DATE          CN NO.                 REASON FOR CHANGE
========================================================================================
<S>             <C>            <C>           <C>
  1.0           14/2/97                      NEC Contract Issue.
  2.0           17/2/97                      To Incorporate final NEC comments.
  2.1           18/2/97                      Incorporate minor comment to note 2 Item 2
                                             Table 3
  2.2           26/2/97                      Minor editorial changes
</TABLE>

                                       2
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                                                       ICO Global Communications
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[CM 488 BLANK]
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                                                             EN-IG-ICO-SW/000010
[ICO LOGO]                Annex 8 B-DEMONSTRATION PLAN       Issue 2.3
                                                             26 February 1997
--------------------------------------------------------------------------------

6.       EQUIPMENT FOR END-TO-END CALL DEMONSTRATION

6.1      The equipment to be provided by ICO for the Demonstration is described
         in Section 4 of Annex 2.

                                       5
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                                                       ICO Global Communications
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--------------------------------------------------------------------------------

3.       END-TO-END CALL DEMONSTRATIONS

3.1      The Contractor , with ICO assistance, shall demonstrate the
         establishment of end-to-end connections, transmission and reception of
         voice/fax/data traffic under specific conditions, and connection
         cleardowns.

3.2      The following types of calls shall be demonstrated:

         -        voice (4.8/2.4 kbps)

         -        fax (up to 4.8 kbps)

         -        asynchronous data (4800 bps or less)

3.3      The Demonstration shall show connections between an ICO UT and

         -        a PSTN/ISDN terminal

         -        a PLMN mobile station

         -        another ICO UT (registered at the same MSSC/VLR).

3.4      Depending upon the availability of a second satellite, call diversity
         and satellite-to-satellite handover shall be demonstrated.

4.       SAN SITE

4.1      The selection of the SAN Site, to be used for the Demonstration, shall
         be mutually agreed by the Contractor and ICO during the course of the
         Supply Agreement.

4.2      The selection of the SAN Site shall be based upon availability and the
         fulfilment of the pre-requisites as outlined in Section 5.

5.       PRE-REQUISITES FOR END-TO-END CALL DEMONSTRATION

5.1      The following basic pre-requisites shall be complied with by ICO, in
         order for the Demonstration to be performed-:

5.1.1    ICO shall provide the interconnection between the selected SAN and
         exchange gateway or International Switching Centre (ISC) which shall
         include-:

         -        making any necessary agreements with the gateway or ISC
                  operator for interconnection

                                       3
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--------------------------------------------------------------------------------

         -        ordering, installing, and activating communication lines
                  between the MSSC of the selected SAN and the exchange gateway
                  or ISC

         -        defining B number (routing) exchange data in all
                  telecommunication nodes between the A subscriber of a local
                  exchange and the MSSC of the selected SAN to ensure correct
                  routing of calls

5.1.2    To facilitate the testing of an ICO Mobile subscriber to a fixed PLMN
         operator, ICO shall arrange for the configuration of a Terrestrial
         Mobile Switching Center (MSC) and, as appropriate, a Gateway Mobile
         Switching Center, (GMSC), of the appropriate terrestrial PLMN, and any
         other intermediary network nodes between the PLMN and MSSC at the
         selected SAN with the appropriate exchange data to ensure the correct
         routing of calls to include:

         -        Means of signalling communication shall exist between the
                  selected SAN and ICO's service provisioning databases (e.g.,
                  HLR, EIR, AuC), where necessary.

         -        Appropriate service profile parameters and identification for
                  at least two ICO subscriber accounts and at least two ICO UT's
                  shall be available in the service provisioning databases.

         -        A satellite shall be available for use during the
                  Demonstration. Integration testing of the satellite by ICO
                  shall have progressed to at least to such a degree that makes
                  the satellite useful for the Demonstration. If a second
                  satellite is available and if its integration testing progress
                  is such that it can be used, then it shall be used for
                  demonstrations where two satellites are required.

         -        Satellite resource management data for the orbiting satellites
                  shall be generated and downloaded into the selected SAN's, SAN
                  OSS, and the SBS's LSRMS.

5.2      The following list outlines the basic pre-requisites that shall be met,
         by the Contractor, for the Demonstration to be performed-:

         -        The Contractor shall have completed the Phase 2-1 and 2-2
                  Testing at the selected SAN Site.

                                       4
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                                                       ICO Global Communications
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[ICO LOGO]            Annex 8 B - DEMONSTRATION PLAN         Issue 2.3
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--------------------------------------------------------------------------------

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                      <C>
        1. INTRODUCTION                                                    2

        2. SCOPE                                                           2

        3. END-TO-END CALL DEMONSTRATIONS                                  2

        4. SAN SITE                                                        3

        5. PRE-REQUISITES FOR END-TO-END CALL DEMONSTRATION                3

        6. EQUIPMENT FOR END-TO-END CALL DEMONSTRATION                     5
</TABLE>

                                       1
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                                                       ICO Global Communications
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                                                             EN-IG-ICO-SW/000010
[ICO LOGO]            Annex 8 B - DEMONSTRATION PLAN         Issue 2.3
                                                             26 February 1997
--------------------------------------------------------------------------------

1.       INTRODUCTION

1.1      The Contractor shall perform an End-to-End Call Demonstration of the
         IGF in accordance with the End-to-End Call Demonstration Plan (the
         "Demonstration") as described in this Annex. The Demonstration shall
         demonstrate the functionality of the Equipment together with the other
         elements of the ICO system; e.g satellite(s), User Terminals (UT), and
         the actual connections to the public switched networks.

1.2      The scope and procedures of the Demonstration shall be developed within
         7 months prior to the Demonstration.

1.3      This Annex provides a high-level descriptions of the Demonstration.

2.       SCOPE

2.1      The Demonstration shall be performed at one selected SAN Site.

2.2      The Demonstration shall be performed during the period specified on the
         Master Level Schedule.

2.3      Demonstration procedures shall be prepared by the Contractor and
         submitted to ICO for approval prior to the commencement of the
         Demonstration.

2.4      The Demonstration shall be conducted by the Contractor and be witnessed
         by ICO.

2.5      ICO's co-operation shall be a mandatory requirement for preparation of
         the SAN Site and performing the Demonstration. Specifically, all
         external components, being supplied by ICO and integrated into the
         ICONET, shall either already be satisfactorily in-service, or shall
         have undergone prior acceptance testing as a part of their individual
         supply agreements.

2.6      There shall be no PASS/FAIL criteria for the Demonstration.

2.7      The Contractor, with ICO's assistance, shall be responsible for
         isolation of any problems identified during the Demonstration.

2.8      The Demonstration shall not be part of the Integration and Testing of
         the IGF.

                                       2
                                                 Confidential and Proprietary to
                                                       ICO Global Communications
<PAGE>   482
[ICO LETTERHEAD]

                         ANNEX 8B - DEMONSTRATION PLAN

                             COMMERCIALLY SENSITIVE
                             REPRODUCTION PROHIBITED

CONFIDENTIALITY STATEMENT
All information contained in this document is confidential and propriety to ICO
Global Communications or any other member of the ICO Global Communications
Group and intended only for the addressee to whom this copy is addressed. The
recipient shall neither copy, distribute, disclose or use the information
contained in it for any purpose other than for which this document has been
made available nor permit anyone else to do the same. The recipient shall be
held fully liable for any wrongful disclosure or use of any of the information
contained in this document by him, or his officers or employees or anyone else
to whom he makes the information available.

               DOCUMENT NO.:       EN-IG-ICO-SW/000010

               VERSION:            2.3

               DATE:               26 February 1997

PREPARED            ICO                            NEC

AUTHOR:             TITLE:  VP ICONET              TITLE:  PM

                    SIGNATURE:                     SIGNATURE:
                    /s/ G. L. Titzer               /s/ T. Furukawa

<PAGE>   483
                                                             EN-IG-ICO-SW/000010
                     Annex 8 B - DEMONSTRATION PLAN          Issue 2.3
[ICO LOGO]                                                   26 February 1997

AMENDMENT RECORD

<TABLE>
<CAPTION>
REVISION      DATE       CN NO.        REASON FOR CHANGE
--------      -------    ---------     --------------------------------------------------------
<S>           <C>        <C>           <C>
1.0           14/2/97                  NEC Contract Issue

2.0           17/2/97                  Final Issue

2.1           18/2/97                  Incorporate minor comments to para's, 1.1, 1.2 and 5.1.2

2.2           25/2/97                  Delete para 5.3 to correct erroneous description

2.3           26/2/97                  Minor editorial changes
</TABLE>

                                                 Confidential and Proprietary to
                                                       ICO Global Communications
<PAGE>   484

                                 [COPY MISSING]
<PAGE>   485
                           [ICO LOGO AND LETTERHEAD]

                            ANNEX 8A - IGF TEST PLAN

                             COMMERCIALLY SENSITIVE
                            REPRODUCTION PROHIBITED

CONFIDENTIALITY STATEMENT
All information contained in this document is confidential and propriety to ICO
Global Communications or any other member of the ICO Global Communications Group
and intended only for the addressee to whom this copy is addressed. The
recipient shall neither copy, distribute, disclose or use the information
contained in it for any purpose be held fully liable for any wrongful disclosure
or use of any of the information contained in this document by him, or his
officers or employees or anyone else to whom he makes the information available.

<TABLE>
<CAPTION>
<S>                 <C>
DOCUMENT NO.:       EN-IG-ICO-SW/000009
VERSION:            2.3
DATE:               26 February 1997
</TABLE>

<TABLE>
<CAPTION>
PREPARED               ICO                    NEC
----------             ------------------     ------------------
<S>                    <C>                    <C>
AUTHOR:                TITLE: VP ICONET       TITLE: PM
                       SIGNATURE:             SIGNATURE:
                       /S/ G. L. Titzer       /S/ T. Furukawa
</TABLE>

<PAGE>   486
                                                           EN-IG-ICO-SW/000009
[ICO LOGO]            Annex 8a - IGF TEST PLAN             Issue 2.3
                                                           26 February 1997

AMENDMENT RECORD

<TABLE>
<CAPTION>
<S>           <C>           <C>          <C>
REVISION      DATE          CN NO.       REASON FOR CHANGE
--------      -------       -------      ---------------------------------------
1.0           14/2/97                    NEC Contract Issue
2.0           17/2/97                    To incorporate final NEC comments
2.1           18/2/97                    Further final NEC comments incorporated
2.2           18/2/97                    Further final NEC comments incorporated
2.3           26/2/97                    Minor editorial changes
</TABLE>

                                       1

                                                    Proprietary and Confidential
                                                    to ICO Global Communications
<PAGE>   487
-------------------------------------------------------------------------------
[ICO LOGO]            Annex 8a - IGF TEST PLAN              EN-IG-ICO-SW/000009
                                                            ISSUE 2.3
                                                            26 February 1997
-------------------------------------------------------------------------------

                               TABLE OF CONTENTS

1. INTRODUCTION                                                               3

2. SCOPE                                                                      4

3. TEST HIERARCHY AND OBJECTIVES                                              4

4. FACTORY PRE-INTEGRATION TEST FACILITY                                      5

5. ICONET GROUND FACILITIES TEST PHASES                                       8

6. ROLES & RESPONSIBILITIES                                                  12

                                       2

                                                    Proprietary and Confidential
                                                    to ICO Global Communications
<PAGE>   488
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[ICO LOGO]             Annex 8a - IGF TEST PLAN             EN-IG-ICO-SW/000009
                                                            ISSUE 2.3
                                                            26 February 1997
-------------------------------------------------------------------------------

1.   INTRODUCTION

1.1  This Annex describes the Test Plan for the IGF. The Master IGF Test Plan
     Document (WG4-60005) as referred to in ANNEX 6 Table 1 shall be further
     developed during the course of the Supply Agreement. The aim of testing is
     to verify the functionality and performance of the Equipment in accordance
     with the IGFR.

1.2  Test requirements are defined for individual IGF components, meaningful
     integrated configurations, and the overall IGF system, forming a hierarchy
     of test campaigns to achieve final satisfactory operation of the IGF
     system.

1.3  This Annex covers both in-factory and in field testing, and formal and
     informal test campaigns. The detailed test requirements, plans, acceptance
     criteria, scripts and VCRMs (Verification Cross Reference Matrixes) for
     each section of the testing shall be developed during the course of the
     Supply Agreement.

1.4  The purpose of this Annex is to:

     - define general test methodologies, and standards to be followed in
       testing the Equipment

     - provide the high level objectives and pre-requisites of each set of tests

     - act as a "master" document at the top of a test document hierarchy, which
       will be generated to cover the detailed test requirements for each of the
       individual test campaigns required

     - provide a framework, tying together the individual campaign test plans

1.5  The Contractor shall provide the following documentation for formal IGF
     testing for ICO's review and approval.

-  IGF Test Requirement (Draft)  7 months prior to the start date of that test

-  IGF Test Requirement (Final)  6 months prior to the start date of that test

-  IGF Test Plan (Draft)         3 months prior to the start date of that test

-  IGF Test Plan (Final)         2 months prior to the start date of that test

-  IGF Test Script               1 month prior to the start date of that test

                                       3

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-   IGF Test Report (Draft)     within 1 month after completion of that test

-   IGF Test Report (Final)     within 3 months after completion of that test

2.    SCOPE

2.1   This Annex consists of both informal and formal testing of IGF Equipment.

2.2   The Contractor shall ensure that informal testing of IGF units and
      sub-systems will be carried out by the manufacturer of the Equipment as
      part of its internal design verification and may be observed by ICO Staff.

2.3   Formal testing shall be carried out by the Contractor and shall be
      witnessed by ICO Staff.

2.4   Formal Testing shall be limited to Phase 1 Subsystem Testing, Phase 2-1
      Installation Testing and Phase 3 IGF System Testing.

2.5   This Annex does not include conformance, verification or integration
      testing of other elements of the ICO system not procured by the Contractor
      such as UTs, Satellites, SCC, PLMN, ADC, Administration Systems and Inter
      SAN/NMC links.

3.   TEST HIERARCHY AND OBJECTIVES

3.1  Test requirements shall be defined for individual units and subsystems of
     Equipment as well as the overall IGF system.

3.2  The IGF Unit and Sub-system Testing shall cover testing as specified in the
     Master IGF Test Plan Document, to verify and/or validate that all
     requirements of the IGFR have been met.

3.3  All tests shall be uniquely identified and traceable from the IGFR via
     VCRMs.

3.4  All tests shall have clear, comprehensive and unambiguous pass/fail
     criteria that may be demonstrated during testing.

3.5  All tests shall have clear, comprehensive and unambiguous test
     conditions, so that test results may be obtained in a controlled and
     repeatable way.

                                       4            Proprietary and Confidential
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4.        FACTORY PRE-INTEGRATION TEST FACILITY

4.1       These informal tests combine subsystems incrementally to provide
          confidence of operation of completed SANs and NMC, prior to delivery
          of Equipment to Site.

4.2       The Contractor shall provide Factory Pre-Integration Test Facilities
          for use in the integration and development testing. Testing carried
          out on the test facility shall be informal. The Factory
          Pre-Integration Test Facility shall be implemented in 3 stages:

          - Stage 1      Intra SAN Simulation
          - Stage 2      Inter SAN Simulation
          - Stage 3      Inter SAN Network Simulation

4.3       Special Test Equipment (STE) as set out in Annex 2 Section 4.2 shall
          be supplied by ICO for use by the Contractor as required.

4.4       Stage 1 - Intra SAN Simulation

4.4.1     The Stage 1 Test Facility shall be located in Australia and shall be
          used for IGF pre-integration testing of, but not be limited to:

          -    TNM/MSSC all protocol validation including Teleservices, Bearer
               Service, and Supplementary GSM Services protocol

          -    Some agreed ICO Specific Services

          -    Operation and Maintenance Functions

          -    Call Connectivity

          -    Terrestrial Network Manager Functions and

          -    Vocoder

          to ensure that those subsystems relevant to services/functions above
          interwork with each other. Major subsystems to be tested are TNM
          and MSSC and related peripheral.

4.4.2     ETL shall deliver a combined MSSC/VLR/HLR and MSSC O&M centre to the
          Australian Test Facility as detailed in Annex 4.

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4.4.3     NEC/A shall deliver the TNM and the TNM-OAM to the Australian Test
          Facility as detailed in Annex 4.

4.4.4     The test facility at Australia shall be used to integrate the
          following subsystems: -

          - MSSC

          - Terrestrial Network Manager (TNM)

          - Home Location Register (HLR)

          - GSM Tester

          - MSSC OAM (TMOS)

4.4.5     ICO shall deliver a GSM tester which shall be capable of being used
          for simulating the GSM Base Stations and UTs, to the Australian Test
          Facility as detailed in Annex 4.

4.5       Stage 2 - Inter SAN (with Channel Manager) Simulation

4.5.1     The Stage 2 Facility shall incorporate Test Facilities located in the
          USA and Australia, and shall be used for IGF pre-integration testing
          between the Australian and USA Test Facilities for development
          testing of:

          - Inter-working between two MSSCs, as per Stage 1 but with two
            physically separated MSSCs.

          - MSSC and SBS interfaces with the TNM

          - MSSC and High Penetration Notification Controller (HPN-Controller)
            interfacing

          - Terrestrial Network Management Functions

          Major subsystems to be tested in this stage are interworking among
          SBS, TNM and MSSC.

4.5.2     The Stage 1 Test Facility equipment shall be used during Stage 2
          testing. The following additional equipment shall be supplied as
          defined in Annex 4 for Stage 2 testing.

4.5.3     ETL shall deliver a combined MSSC/VLR/HLR and MSSC O&M centre to the
          USA Test Facility as detailed in Annex 4.

4.5.4     ETL shall deliver an HPN-Controller to the USA Test Facility as
          detailed in Annex 4.

                                       6

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4.5.5     NEC/A shall deliver TNM to the USA Test Facility as detailed in Annex
          4.

4.5.6     HNS shall deliver an SBS, including Channel units, to the USA Test
          Facility as detailed in Annex 4.

4.5.7     HNS shall deliver an SBS, including Channel Units, to the Australian
          Test Facility as detailed in Annex 4.

4.5.8     ICO shall deliver a GSM tester which shall be capable of being used
          for simulating the GSM Base Stations and UTs to the USA Test Facility
          as detailed in Annex 4.

4.6       Stage 3 - Inter SAN Network Simulation

4.6.1     The Stage 3 Facility shall incorporate a Test Facility, located in
          Japan, and shall be used for IGF pre-integration testing between the
          Australian, USA and NEC Yokohama Test facilities for development
          testing of:

          - DCN

          - Functional Tests on TNM

          - Interface Test on, - NMC/SRMC and SAN

          - Operation and Maintenance Interfaces between MSSC/OSS and NMC

          At this stage, interworking among all subsystems in the IGF is to be
          tested.

4.6.2     The Stage 2 Test Facility equipment shall be used during Stage 3
          testing.

4.6.3     The following additional equipment shall be supplied as per Annex 4
          for Stage 3 testing.

4.6.4     ETL shall deliver HPN-Controller to the Australian Test Facility as
          detailed in Annex 4.

4.6.5     NEC shall deliver NMC and IF Equipment to the NEC Yokohama facility
          as detailed in Annex 4, and use the SAN-OSS, to carry out
          pre-integration testing with the NMC in Japan.

4.6.6     The NMC shall be operating with basic functionality for the
          interface testing and shall include the Satellite Resource Management
          Centre (SRMC) and Local SRMS involved in SBS.

4.6.7     The NMC shall also be capable of control and monitor of basic alarm
          and status of all types of network elements.

                                       7

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5.     ICONET GROUND FACILITIES TEST PHASES

5.1    Phase 1, Unit and Subsystem Testing

5.1.1  These are performed on named subsystems, concentrating primarily on the
       "first-off" on-Site Equipment, with a reduced set of tests on subsequent
       on-Site Equipment.

5.1.2  Phase 1 Testing shall be performed in-factory and consist of Unit and
       Subsystem testing for Equipment manufactured by the Contractor and shall
       not include third party vendors' proprietary Equipment such as PCs or
       work stations.

5.1.3  Units shall be defined as a separable pieces of Hardware or Software on
       which requirement testing may be performed. Unit testing shall be carried
       out by the Equipment manufacturer in accordance with the manufacturers
       internal testing standards. Unit testing shall be informal.

5.1.4  Subsystems, for the purpose of this Annex, shall be defined as multiple
       interconnected units common to a manufacturer which form a separate
       testable subsystem. The Phase 1 Subsystem Testing which shall be
       performed by the Equipment manufacturer is formal testing. The
       "first-off" of every single subsystem shall be tested by the Contractor
       and witnessed by ICO.

5.1.5  Approval of the "first off" subsystem test results, in accordance with
       the agreed criteria, shall be required before the subsystem leaves the
       factory for on-Site installation.

5.1.6  Subsystem tests shall concentrate on the following:

       - testing of the applicable functional and performance requirements of
         individual subsystems

       - validation of significant or "system-level" internals that have not
         been explicitly or adequately covered in unit testing

       - conformance of the subsystem component interfaces to the appropriate
         Interface specifications

                                       8

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          -    correct operation of man-machine interfaces, to the appropriate
               specifications

5.2       Phase 2-1 Installation Testing

5.2.1     The Contractor shall ensure that Phase 2-1 Installation Testing shall
          be performed in-field on the Equipment upon completion of the
          Equipment installation. The first installation of every single
          subsystem of the IGF shall be on-Site tested by the Contractor and
          witnessed by ICO.

5.2.2     Installation testing shall be performed in-field as a form of "build
          checkout". The Phase 2-1 "build checkout" shall ensure that all Site
          dependent configurations are correct, and that all interfaces for
          other sub-systems are operating correctly in a 'Stand Alone' mode
          including signalling, traffic and management paths.

5.2.3     Installation tests shall assess that Equipment has not been damaged
          in transit, that all components are properly configured and
          connected, local communications links are satisfactorily in-service,
          and that local Site factors do not affect operation (e.g. power
          supplies, local radiation sources, temperature and humidity).

5.2.4     All on-Site installation and calibration (and commissioning as
          appropriate for the RFT TT&C) procedures shall have been completed
          prior to this phase of formal "build checkout" testing.

5.2.5     These tests shall be formal, and shall be completed before delivered
          Equipment is released for further phases of testing or use.

5.2.6     These tests shall be conducted at each SAN and NMC, with the same
          degree of completeness, specifically paying attention to Site
          specific requirements.

5.3       Phase 2-2 On-Site Integration Testing

5.3.1     Phase 2-2 on Site integration testing shall be performed in-field
          upon completion of the Phase 2-1 Installation Testing and shall
          expand on the Phase 2-1 'build checkout'.

5.3.2     The Phase 2-2 on-Site integration testing shall be informal.

5.3.3     The purpose of Phase 2-2 on-Site integration testing shall be to
          ensure the IGF subsystems are correctly integrated, before Phase 3
          system testing begins. It shall

                                       9
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          be performed by a test team made up of representatives from each
          Equipment manufacturer.

5.3.4     Components shall be integrated in an incremental fashion, with each
          configuration involving meaningful combinations of functionality. The
          final configuration is a completely integrated SAN and NMC.

5.3.5     Tests shall concentrate on a subset of the overall IGF functional and
          performance requirements for each of the configurations, and on
          interworking of the Equipment as each is integrated.

5.3.6     Phase 2-2 Testing shall include those Phase 2-1 aspects that can only
          be fully tested when integrated with Equipment.

5.3.7     The Phase 2-2 Testing shall include a 'Dry Run' followed by a
          Software Rebuild/Reload and a 'Re-Test', with the updated versions of
          de-bugged software, of the IGF.

5.3.8     The Air Interface shall be further validated with the use of a UT
          Simulator.

5.3.9     These tests are performed on all Sites, concentrating primarily on
          the "first-off" SAN and NMC, with a reduced set of tests on
          subsequent Sites.

5.4       Phase 3 IGF System Testing

5.4.1     Phase 3 IGF System Testing shall be performed in-field by the system
          test team upon completion of the Phase 2-2 On-Site Integration
          testing. Individual tests shall be performed as early as possible in
          line with Annex 4.

5.4.2     These are performed on completed SANs, the NMC and the IGF as a
          whole. These tests are defined as follows:

          - Extensive IGF system tests of the first completed SAN and NMC sites

          - Reduced IGF system tests of all subsequent SANs, and the backup NMC

          - Incremental tests on the first two completed SANs, the first three
            completed SANs and the first six completed SANs

          - A complete twelve-SAN and two-NMC test to ensure correct
            configuration and NMC monitoring and control

                                       10          Proprietary and Confidential
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5.4.3    The IGF System testing shall be performed with the use of simulator
         equipment for the UT and Satellite.

5.4.4    The system integration testing shall ensure that the Equipment
         supplied is operating according to the specified requirements and
         shall be formal.

5.4.5    The IGF system testing shall take place in the following stages:

         1.  One SAN Testing
         2.  One NMC Testing
         3.  Two SAN Testing
         4.  Three SAN Testing
         5.  Six SAN Testing
         6.  Twelve SAN and two NMC Testing

         In each test campaign, all the specified functionality in the IGFR
         shall be fully tested for the appropriate number of SANs and NMCs as
         detailed above.

5.4.6    One SAN testing shall encompass the range of tests that can be
         performed on one SAN. This shall include IGF call processing,
         configuration, control, monitoring and performance related tests.

5.4.7    One NMC testing shall encompass

         a) testing of the network management functions and SRMC functions
            specified in the IGFR but not covered in Phase 1&2 tests, and
         b) interconnection testing with a complete SAN in stand-along mode.

5.4.8    Two SAN testing shall encompass the range of tests specific to two
         SANs. This shall include call handover between SANs and UT movement
         related tests such as re-registration and call delivery to remote
         SANs. IGF configuration, control, monitoring and performance related
         tests specific to two SAN operation shall also be tested.

5.4.9    Three SAN testing shall encompass the range of tests specific to three
         SANs. This shall include testing of intermediate SAN operation in call
         handover between SANs via an intermediate SAN and UT movement related
         tests such as re-registration and call delivery to remote SANs via
         intermediate SANs. IGF

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        configuration, control, monitoring and performance related tests
        specific to three SAN operation shall also be tested.

5.4.10  Six and twelve SAN testing shall encompass the range of tests specific
        to 6 and 12 SANs respectively. This shall include testing of network
        configuration, functions and performance, as specified, and NMC
        operation.

5.4.11  The Phase 3 testing may include a "dry run" followed by a software
        rebuild/reload and a "re-test", with the final versions of de-bugged
        Software, of the IGF.

6.      ROLES & RESPONSIBILITIES

6.1     Test Planning and Execution

6.1.1   Performance of IGF units and sub-system testing, including planning,
        documenting, co-ordinating, execution and problem
        identification/isolation and, within the IGF, problem solving shall be
        the sole responsibility of the Contractor.

6.1.2   The Contractor shall provide and maintain a problem tracking database in
        which all problems shall be entered. The database shall provide for
        problem ID code, status, responsible person, classification, planned
        correction date, temporary fix ID, and action plan reference or summary.
        The database shall provide facilities for problems to be sorted and
        presented or printed in a variety of formats and orders, to facilitate
        management and reporting on the problems.

6.1.3   Following completion of each Phase of testing for any part of the IGF,
        the Contractor shall provide weekly reports relating to that part,
        providing a summary of the current problem statistics, expected
        clearance date for all problems, and a full listing of the database
        contents. Such reports shall continue until all of the problems have
        been corrected.

6.2     Communications Links

6.2.1.  The Contractor shall be responsible for all the communications links
        charges during the Pre-Integration testing at the NECA, HNS and NECJ
        test facilities.

6.2.2.  The Contractor shall invoice ICO and ICO shall re-imburse all such

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        communications charges on an actual cost basis.

6.2.3.  ICO shall provide all necessary communications links between ICO Sites
        for Equipment on-Site testing. The Contractor shall provide requirements
        on capacity, routing and availability dates in [good time] to ICO.

6.3.    Test Equipment

6.3.1   Aside from the test equipment provided by ICO as given in Annex 2, all
        test equipment required for Phase 1 to Phase 3 will be provided by the
        Contractor.

6.3.2   The Special Test Equipment, being provided by ICO, for Phase 1 to Phase
        3 are shown in Annex 2.

6.3.3   The Contractor shall develop a comprehensive requirements document for
        each of UT Load Simulator and Satellite Channel Simulator and shall
        submit them to ICO for its approval within 3 months after the execution
        of the Supply Agreement.

                                       13           Proprietary and Confidential
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3.   SITE RESPONSIBILITIES & SAFE WORKING PRACTICES

3.1  The Contractor shall keep all existing roads and pavements, used by the
     Contractor, clear of mud and debris. The Contractor shall make good all
     damage it causes to any road, footpath or other property during the
     execution of the Work.

3.2  The Contractor shall keep all internal work areas clean and free of debris
     and dust and shall remove all packing materials.

3.3  While on the Site, the Contractor and any Sub Contractors' personnel shall
     at all times comply with the local Site & security arrangements.

4.   SITE COMMUNICATIONS

4.1  The Contractor shall be responsible for all Site communications charges
     during the installation and testing activities.

4.2  The Contractor shall invoice ICO and ICO shall re-imburse all
     communications charges on an actual cost basis.

5.0  SITE IMPLEMENTATION PERIODS

5.1  The schedule dates and sequence of installation at the SAN Sites is shown
     in Master Level Schedule in Annex 4.

5.2  Periods when weather conditions may impact on external installation work
     shall be taken into consideration when preparing installation schedules.

                                                 Confidential and Proprietary to
                                                       ICO Global Communications

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                               TABLE OF CONTENTS

1.   INTRODUCTION                                                              3

2.   WORKING HOURS AND ACCESS TO SITE                                          3

3.   SITE RESPONSIBILITIES & SAFE WORKING PRACTICES                            4

4.   SITE COMMUNICATIONS                                                       4

5.   SITE IMPLEMENTATION PERIODS                                               4

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1.        INTRODUCTION

1.1       This Annex describes the scope of the Site Working Arrangements and
          safe working practices.

1.2       The scope of the Site installation Work includes the following -:

1.2.1     Site Management

1.2.2     Erection and testing of the antennas

1.2.3     Installation of the Equipment

1.2.4     Installation and termination of the IFL cables

1.2.5     Testing of the Equipment

2.        WORKING HOURS AND ACCESS TO SITE

2.1       The Contractor shall be entitled to request access to all Sites on a
          24 hours per day, 7 days a week basis so that it may conduct all
          necessary inspection, Site visits, installation, testing or fault
          rectification.

2.2       The Contractor shall provide notice to ICO at thirty (30) days in
          advance, where possible, of all personnel requiring access to the
          Site.

2.3       The Contractor shall submit to ICO a list of the names of the Site
          staff and visitors and produce satisfactory evidence as to their
          identity so that the name on each individual pass card can be filled
          in before the passes are issued.

2.4       Pass cards shall not be transferred, and will be valid only for the
          person to whom they are issued, and shall be returned to ICO when the
          individual leaves the Site.

                                                 Confidential and Proprietary to
                                                      ICO Global Communications
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[ICO-LOGO]                      [ICO LETTERHEAD]

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                       ANNEX 7 SITE WORKING ARRANGEMENTS
--------------------------------------------------------------------------------

                             COMMERCIALLY SENSITIVE
                            REPRODUCTION PROHIBITED

CONFIDENTIALITY STATEMENT
All information contained in this document is confidential and propriety to ICO
Global Communications or any other member of the ICO Global Communications Group
and intended only for the addressee to whom this copy is addressed. The
recipient shall neither copy, distribute, disclose or use the information
contained in it for any purpose other than for which this document has been made
available nor permit anyone else to do the same. The recipient shall be held
fully liable for any wrongful disclosure or use of any of the information
contained in this document by him, or his officers or employees or anyone else
to whom he makes the information available.

                 ----------------------------------------------
                  DOCUMENT NO.:         EN-IG-ICO-SW/000008
                 ----------------------------------------------
                  VERSION:              2.1
                 ----------------------------------------------
                  DATE:                 26 February 1997
                 ----------------------------------------------

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        PREPARED          ICO                       NEC
       --------------  ---------------------------------------------------
        AUTHOR:           TITLE   VP ICONET         TITLE   PM
       -----------------------------------------------------------------
                          SIGNATURE:                SIGNATURE:

                       /s/ G. L. Titzer     /s/ T. Furukawa
       -----------------------------------------------------------------

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                       Annex 7 Site Working Arrangements

AMENDMENT RECORD

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2.0       18/2/97             To incorporate final NEC comments
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2.1       26/2/97             Minor editorial changes
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                            Annex 6 - Documentation
<TABLE>
<CAPTION>
=============================================================================================
Shipping Information for all       on shipment                   2(+1 to each install. site)
Shipments to Site and ICO
---------------------------------------------------------------------------------------------
<S>                                <C>                            <C>
On-Site Ph.2-1 Test Requirements   Draft 7 months prior to start      2
                                   of tests. Final 6 months
                                   prior to start of Tests
---------------------------------------------------------------------------------------------
On-Site Ph.2-1 Test Plan           Draft 3 months prior to start      2 (+1 to each test site)
                                   of tests. Final 2 months
                                   prior to start of tests
----------------------------------------------------------------------------------------------
On Site Ph 2-1 Script              1 month prior to start of tests
----------------------------------------------------------------------------------------------
On-Site Ph.2-1 Test Data Report    Draft within 1 month after         2 (+1 to each test site)
                                   completion of tests. Final
                                   3 months after completion
                                   of tests
-----------------------------------------------------------------------------------------------
TT&C/IOT Calibration Data          2 weeks after the tests            2 (+1 at IOT site)
-----------------------------------------------------------------------------------------------
On-Site Ph 3 Test Requirements     Draft 7 months prior to start
                                   of tests. Final 6 months
                                   prior to start of Tests
------------------------------------------------------------------------------------------------
On-Site Ph.3 Test Plan             Draft 3 months prior to start      2
                                   of tests. Final 2 months
                                   prior to start of tests
-------------------------------------------------------------------------------------------------
On-Site Ph 3 Test Script           1 month prior to start of          2 (+1 to each test site)
                                   tests
--------------------------------------------------------------------------------------------------
On-Site Ph.3 Test Data Report      Draft within 1 month after         2 (+1 to each test site)
                                   completion of tests. Final
                                   3 months after completion
                                   of tests
--------------------------------------------------------------------------------------------------
Training Syllabus??                3 months before start of           2
                                   training sessions
--------------------------------------------------------------------------------------------------
Training Manuals and               1 month before start of            2 (+10 each training site)
Documentation (inc notes)          training sessions
---------------------------------------------------------------------------------------------------
O & M Equipment Handbooks          At equipment delivery              2 (+1 to each install. site)
---------------------------------------------------------------------------------------------------
As Built Drawings (2 RFT's         1 month after completion
TT &C sites)                       of site work
----------------------------------------------------------------------------------------------------
As-Built for SAN and NMC Sites     1 month after completion           2 (+1 to each install. site)
                                   of site work
----------------------------------------------------------------------------------------------------
Air Interface Protocol             as detailed in Annex 11            5 Copies
(AIPV)
-----------------------------------------------------------------------------------------------------
ICONET Integration                 as detailed in Annex 9             2 (+1 to each test site)
-----------------------------------------------------------------------------------------------------
LIMF Requirements                  as detailed in SOW                 2
=====================================================================================================
</TABLE>

                                       6

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2.   DOCUMENTATION MANAGEMENT AND CONTROL

     The documentation management and control process will be performed by the
     Contractor in accordance with the requirements contained in the Program
     Management Plan referred to in Table 1 of this Annex.

3.   EQUIPMENT HANDBOOK

3.1  The Equipment Handbook shall contain as a minimum:

     - Detailed description of the sub-system addressed in the relevant section
       including top-level functional block diagrams, electrical, and technical
       performance characteristics

     - All relevant interfaces and characteristics of signals and data messages
       across those.

     - Conditions to be observed during normal operation of the system

     - Anomalies, which may occur during normal operations and how to rectify
       those.

     - Procedures for periodic maintenance and calibration if applicable and
       their recommended schedules.

     - Corrective maintenance and fault-finding methods at system level.

4.   AS-BUILT INFORMATION

4.1  The 'As-Built' Information data will be provided for the management centre
sites and on a per SAN and NMC Site basis covering all the equipment and
antenna areas and shall include-:

     - Civil drawings as applicable

     - Rack layout

     - Elevation Drawings

     - Interconnection and Cabling Diagrams

     - Hardware Inventory

     - Data Transcript files for the Switching elements

5.   IOT CALIBRATION DATA

     - Test results from on-site tests shall be provided for the purpose of
       calibrating the antennas used for IOT. The characteristics to be measured
       are indicated in the section of IOT of the ICD 'TT&C to SAN'.

                                                      Proprietary & Confidential
                                 4                  to ICO Global Communications
<PAGE>   508

                                                            ENG-IG-ICO-SW/000007
                                                            Issue 2.2
[ICO LOGO]                  Annex 6 - Documentation         26 February 1997

                       TABLE 1 - DOCUMENTATION SUBMISSION

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------
ITEM                                 SUBMISSION                  NO. OF COPIES
                                                                 (REF. TO NOTES BELOW)
-------------------------------------------------------------------------------------------------------
<S>                                  <C>                         <C>
Programme Mgt Plan (WG-PL-60041)     2 months after SA           2

The Contractor's standard QA Plans   SA Date                     2

ICO-Specific Contractor's QA Plans   2 months after SA Date      2

HLSD Draft contents List             2 weeks after SA Date

Preliminary HLSD First Draft         2 weeks before System PDR

Issue 1st Draft of HLSP              1 month after System PDR    2

Complete First Version HLSD          1 Month after System FDR    2

Final Version of HLSD                At IGF Acceptance

Programme Review Meeting (PRM)       At ICO 3 working days       2 + Internet
Reports                              before PRM meeting.

Preliminary Design Reviews           1 clear week before PDR     5
Documentation Pack (system and       meeting
Subsystem)

Final Design Reviews                 before FDR meeting 10       5
Documentation Pack (System and       working days.
Subsystem)

In-Plant Ph.1 Test Requirements      Draft 7 months prior to     2
                                     start of tests Final 6
                                     months prior to start of
                                     Tests

In-Plant Ph.1 Test Plan              Draft 3 months prior to     2
                                     start of tests. Final 2
                                     months prior to start of
                                     tests

In Plant Ph. 1 Script                1 month prior to start of
                                     tests

TT&C/IOT Calibration Procedures      2 months before the start   2
                                     of the tests

In-Plant Ph.1 Test Data Report       Draft within 1 month after  2 (+ 1 to each relevant install. site)
                                     completion of tests. Final
                                     3 months after completion
                                     of tests
-------------------------------------------------------------------------------------------------------
</TABLE>

Note:

1. SA = Supply Agreement

                                                      Proprietary & Confidential
                                 5                  to ICO Global Communications
<PAGE>   509
[ICO LOGO]         Annex 6 - Documentation                EN-IG-ICO-SW/000007
                                                          Issue 2.2
                                                          26 February 1997

                               TABLE OF CONTENTS

1.       GENERAL                                               3

2.       DOCUMENTATION MANAGEMENT AND CONTROL                  4

3.       EQUIPMENT HANDBOOK                                    4

4.       AS-BUILT INFORMATION                                  4

5.       IOT CALIBRATION DATA                                  4

                                       2           Proprietary and Confidential
                                                   to ICO Global Communications
<PAGE>   510
[ICO LOGO]         Annex 6 - Documentation                EN-IG-ICO-SW/000007
                                                          Issue 2.2
                                                          26 February 1997

1.   GENERAL

1.1  This Annex sets out the documentation that shall be provided by the
     Contractor in accordance with the requirements of this SOW.

1.2  The Contractor shall provide all documentation to ICO Global Communications
     in accordance with Table 1 of this Annex and shall be responsible for
     maintaining the currency of the documentation distribution of all copies
     and revisions to ICO.

1.3  The language used in all documentation submitted shall be English.
     Consistency of nomenclature shall be maintained between documents and each
     document shall contain a list of all abbreviations used. The SI system of
     units shall be used wherever possible throughout all documents. Common
     document standards shall be followed and the title page of all documents
     shall clearly identify;

          a) document reference number
          b) revision status
          c) date of Issue
          d) title of document
          e) approval status
          f) classification
          g) author
          h) distribution

1.4  In addition to hard copy, all documents shall also be submitted as
     electronic file(s) in MS Office(TM) or compatible format, or where
     appropriate, CD-ROM disk medium. Some documentation may be provided via
     electronic mail over the Internet to the address [xxxxxx@i-co.co.uk] by
     agreement with ICO. All documentation provided over the Internet will be
     sent as encrypted files using MS Exchange(TM).

     The Switching O&M libraries will only be provided on CD ROM Disk medium.

                                       3           Proprietary and Confidential
                                                   to ICO Global Communications

<PAGE>   511
                                [ICO LETTERHEAD]

                             ANNEX 6: DOCUMENTATION

                             COMMERCIALLY SENSITIVE
                            REPRODUCTION PROHIBITED

CONFIDENTIALITY STATEMENT
ALL INFORMATION CONTAINED IN THIS DOCUMENT IS CONFIDENTIAL AND PROPRIETY TO ICO
GLOBAL COMMUNICATIONS OR ANY OTHER MEMBER OF THE ICO GLOBAL COMMUNICATIONS GROUP
AND INTENDED ONLY FOR THE ADDRESSEE TO WHOM THIS COPY IS ADDRESSED. THE
RECIPIENT SHALL NEITHER COPY, DISTRIBUTE, DISCLOSE OR USE THE INFORMATION
CONTAINED IN IT FOR ANY PURPOSE OTHER THAN FOR WHICH THIS DOCUMENT HAS BEEN MADE
AVAILABLE NOR PERMIT ANYONE ELSE TO DO THE SAME. THE RECIPIENT SHALL BE HELD
FULLY LIABLE FOR ANY WRONGFUL DISCLOSURE OR USE OF ANY OF THE INFORMATION
CONTAINED IN THIS DOCUMENT BY HIM, OR HIS OFFICERS OR EMPLOYEES OR ANYONE ELSE
TO WHOM HE MAKES THE INFORMATION AVAILABLE.

                    DOCUMENT NO.:       EN-IG-ICO-SW/000007
                    VERSION:            2.2
                    DATE:               26 February 1997

           PREPARED            ICO                      NEC
           AUTHOR:             Title: VP ICONET         TITLE: PM
                               SIGNATURE:               SIGNATURE:
                               /s/ G.L. Titzer          /s/ T. Furukawa

<PAGE>   512
                                                             EN-IG-ICO-SW/000007
[ICO LOGO]                  Annex 6 - Documentation          Issue 2.2
                                                             26 February 1997

AMENDMENT RECORD

REVISION   DATE       CN NO.      REASON FOR CHANGE
--------   ----       ------      -----------------
1.0        14/2/97                NEC Contract Issue
2.0        17/2/97                To incorporate final NEC comments.
2.1        18/2/97                Incorporate minor comments to
                                    para's 1.2, 4.1 and Table 1
2.2        26/2/97                Minor editorial changes

                                       1            Proprietary and Confidential
                                                    to ICO Global Communications

<PAGE>   513

                                 [COPY MISSING]
<PAGE>   514
                                                             EN.IG-ICO-SW/000006
[ICO LOGO]                ANNEX 5 - TRAINING                 Issue: 2.2
                                                             26 February 1997

4.   COURSE 3 - SYSTEM ARCHITECTURE AND OPERATION & MAINTENANCE

4.1. A training course shall be held for training ICO's engineering staff at
one of the NMC Sites, to be elected by ICO.

4.2. The purpose of this course is to provide the ICO engineers with an
understanding of the system architecture and overview of the operation and
maintenance of all the SAN's from the NMC.

4.3. The duration of the System Architecture and Operation and Maintenance
training course shall be as shown below -:.

<TABLE>
<CAPTION>
          ITEM  DESCRIPTION                            DURATION (DAYS)
         --------------------------------------------------------------
        <S>        <C>                                <C>
           1        Overall SAN and NMC System              10
           2        RFT, PCS                                10
           3        MSSC/VLR and related equipment          40
                    - Telecomms Network & AXE 10-
                      Introduction
                    - AXE 10 System Survey
                    - MSC/VLR/HLR O&M
                    - OSS Operation
                    - AUC/EIR Training
                    - HPN
           4        SBS,                                    15
           5        TNM                                      5
           6        NMS/SRMC/SAN OSS                        10

</TABLE>

4.4. The number of ICO engineers, participating in each of the above courses,
     shall be a maximum of 10 students.

4.5  Training for the MXE option, as defined in Annex 1 of the SOW, will be
     included if ICO elect to exercise this option.

5.   GENERAL TRAINING CONDITIONS

5.1. Training shall consist of a combination of lecture style training and
     hands-on training. The style of training shall be dependent on the
     particular training course, and convenience of the training syllabus.

5.2. ICO shall make the relevant system and sub-systems available as required,
     for the purposes of hands-on training.

                                                 Confidential and Proprietary to
                                                 ICO Global Communications
                                       6

<PAGE>   515
[ICO LOGO]         Annex 5 - Training                     EN.IG-ICO-SW/000006
                                                          Issue: 2.2
                                                          26 February 1997

5.3. The students shall, as a minimum, have background knowledge and
     understanding of one or more of the following technologies-:

     - Satellite Communications
     - Cellular mobile switching
     - Installation of electronic systems
     - Familiarity with PCs and Work Station operator consoles

5.4. The students shall, as a minimum, have a good working knowledge and
     understanding of the English language.

5.5. Training shall be carried out during normal local working hours nominally
     from 9:00am-5:00pm 5 days a week.

5.6. ICO shall make the required staff available during these hours for the
     training course.

5.7. Training courses shall be conducted in the English Language by technical
     training experts from the Contractor. The trainers shall be experienced in
     training staff whose mother tongue is not English.

5.8. One Copy of training notes shall be provided for each student, in the
     English language. All the training documentation shall be provided in the
     English language and shall preferably use SI units. A copy of the training
     material shall be supplied to both ICO and the SAN operator one month
     before the commencement of the training session.

5.9. ICO shall supply the following training facilities at each SAN/NMC
     training Site for the duration of the training:

     - Training room with seating and lighting for at least 10 students and one
       instructor.

     - Overhead Projector Facilities for transparency presentation.

     - Video Recorder and Television facilities

     - White Board Facilities

     - PC Overhead Projector Facilities

     - Photocopy Machine

     - Printer

                                        7           Confidential and Proprietary
                                                    to ICO Global Communications

<PAGE>   516
[ICO LOGO]                                                   EN.IG-ICO-SW/000006
                         Annex 5 - Training                  ISSUE: 2.2
                                                             26 February 1997

          The courses shall include the following elements for each subsystems:

               a) Principles and functional design

               b) Interfaces and interaction with other subsystems

               c) Safety aspects

               d) Operation (local and remote)

               e) Emergency operation

               f) Routine maintenance

               g) Troubleshooting

2.3.  The number of SAN Operator's students, participating in each of the above
      courses, shall be a maximum of 10 students.

2.4.  Because the RFT sub-systems, particularly at the first six TT&C SAN Sites,
      shall be completed earlier than the SBS/MSSC/TNM systems the RFT On Site
      Operation and Maintenance training courses at the TT&C SAN Sites shall be
      held, after completion of the Installation Phase 2-1 Test of the 2 RFT
      Sub-systems committed for early availability for TT&C Integration testing
      at each of six TT&C SAN Sites.

2.5.  The Contractor shall provide background material and any other training
      course notes to supplement the operation and maintenance handbook.

2.6.  The Contractor shall allow "over the shoulder" observation, during the
      Equipment installation and testing.

3.    COURSE 2 - ICO'S INSTRUCTOR'S TRAINING

3.1.  A training course shall be held for ICO's own Training Instructors.

3.2.  The purpose of this course is to train ICO's Training Instructors so that
      they shall be able to carry out their own training courses on the SAN
      system architecture, as well as the operation and maintenance of the SAN
      and NMC systems.

3.3.  The duration of the On Site ICO Instructor's Training course shall be as
      shown in the table below. The starting date is to be mutually agreed
      during the course of the Supply Agreement.

                                       4         Confidential and Proprietary to
                                                       ICO Global Communications

<PAGE>   517
[ICO LOGO]                                                   EN.IG-ICO-SW/000006
                         Annex 5 - Training                  ISSUE: 2.2
                                                             26 February 1997

<TABLE>
<CAPTION>
Item      Description                             Duration (Days)
-----------------------------------------------------------------
<S>      <C>                                          <C>
 1        Overall SAN and NMC System                   10

 2        RFT, PCS                                     10

 3        MSSC/VLR and related equipment               65

          -   AXE 10 System Survey
          -   AXE 10 Cellular O&M, basics
          -   MSC/VLR/HLR O&M
          -   OSS Operation
          -   AXE 10 IOG O&M Advanced
          -   AXE Extended Software Maintenance

          -   HPN

 4        SBS                                          25

 5        TNM                                           5

 7        NMS/SRMC/SAN OSS                             20
</TABLE>

3.4.  The number of ICO Training Instructors, participating in each of the above
      courses, shall be a maximum of 15 students.

3.5.  The ICO Training Instructors training course shall be held at one of the
      twelve (12) SAN Sites, to be elected by ICO, for the RFT, SBS, HPN, PCS,
      MSSC, TNM and SAN-OSS sub-systems and at one of the two (2) NMC Sites for
      the NMS/SRMC sub-systems.

3.6.  Because the RFT sub-systems, particularly at the first six TT&C SAN Sites,
      shall be completed earlier than the SBS /HPN/PCS/MSSC/TNM systems the RFT
      training course for the ICO Training Instructors may be held
      correspondingly earlier than the remaining training courses.

3.7.  The Contractor shall provide background material and any other training
      course notes to supplement the operation and maintenance handbook.

                                       5         Confidential and Proprietary to
                                                       ICO Global Communications

<PAGE>   518
                                                             EN.IG-ICO-SW/000006
[ICO LOGO]                  Annex 5 - Training               Issue 2.2
                                                             26 February 1997
                               TABLE OF CONTENTS

1. GENERAL                                                                3

2. COURSE 1 -- OPERATION & MAINTENANCE                                    3

3. COURSE 2 -- ICO'S INSTRUCTOR'S TRAINING                                4

4. COURSE 3 -- SYSTEM ARCHITECTURE AND OPERATION & MAINTENANCE            6

5. GENERAL TRAINING CONDITIONS                                            6

                                       2          Confidential ad Proprietary to
                                                       ICO Global Communications

<PAGE>   519
                                                             EN.IG-ICO-SW/000006
[ICO LOGO]                  Annex 5 - Training               Issue 2.2
                                                             26 February 1997
1.     GENERAL

1.1.   This Annex sets out the scope of the training courses, for the ICO staff.

1.2.   The training courses are summarised below-:

1.2.1. On Site Operation and Maintenance Course at each SAN Site

1.2.2. ICO Training Instructor Course at one SAN Site and one NMC Site

1.2.3. System Architecture and Operation and Maintenance Course at an NMC

1.3.   The Contractor in conjunction with ICO will develop a detailed training
       plan within 6 months of execution of this Agreement.

1.4.   ICO and the Contractor shall work closely together to develop a training
       program that does not impact on the Master Level Schedule which ensures
       availability of trained ICO staff at a time when O & M services are
       required.

2.     COURSE 1 -- OPERATION & MAINTENANCE

2.1.   An On-Site Operation and Maintenance course shall be carried out at each
       of the twelve SAN Sites.

2.2.   The purpose of this course is to provide the SAN Operator's operation and
       maintenance staff with an understanding of the operation and maintenance
       of the relevant system and sub-systems.

       The duration of the Course, for each of the twelve (12) SAN Sites, shall
       be as shown below-:

Item      Description                                  Duration (Days)
----      -----------                                  ---------------
1         Overall SAN and NMC System                         10
2         RFT, PCS                                           10
3         MSSC/VLR and related equipment                     45
          - AXE 10 System Survey
          - AXE 10 Cellular O&M, basics
          - OSS Operation
          - HPN
4         SBS                                                15
5         TNM                                                 5
7         SAN OSS                                             5

                                       3         Confidential and Proprietary to
                                                       ICO Global Communications

<PAGE>   520
                     [ICO GLOBAL COMMUNICATIONS LETTERHEAD]

                               ANNEX 5 - TRAINING

                             COMMERCIALLY SENSITIVE
                            REPRODUCTION PROHIBITED

CONFIDENTIALITY STATEMENT
ALL INFORMATION CONTAINED IN THIS DOCUMENT IS CONFIDENTIAL AND PROPRIETY TO ICO
GLOBAL COMMUNICATIONS OR ANY OTHER MEMBER OF THE ICO GLOBAL COMMUNICATIONS GROUP
AND INTENDED ONLY FOR THE ADDRESSEE TO WHOM THIS COPY IS ADDRESSED. THE
RECIPIENT SHALL NEITHER COPY, DISTRIBUTE, DISCLOSE OR USE THE INFORMATION
CONTAINED IN IT FOR ANY PURPOSE OTHER THAN FOR WHICH THIS DOCUMENT HAS BEEN MADE
AVAILABLE NOR PERMIT ANYONE ELSE TO DO THE SAME. THE RECIPIENT SHALL BE HELD
FULLY LIABLE FOR ANY WRONGFUL DISCLOSURE OR USE OF ANY OF THE INFORMATION
CONTAINED IN THIS DOCUMENT BY HIM, OR HIS OFFICERS OR EMPLOYEES OR ANYONE ELSE
TO WHOM HE MAKES THE INFORMATION AVAILABLE.

                    DOCUMENT NO.:       EN-IG-ICO-SW/000006
                    VERSION:            2.3
                    DATE:               26 FEBRUARY 1997

               PREPARED            ICO                 NEC
               AUTHOR:             TITLE: VP ICONET    TITLE: PM
                                   SIGNATURE:          SIGNATURE:

                                   /s/ G.L. Titzer     /s/ T. Furukawa

<PAGE>   521
                                                             EN.IG-ICO-SW/000006
[ICO LOGO]                  Annex 5 - Training               Issue: 2.2
                                                             26 February 1997

AMENDMENT RECORD

REVISIONS   DATE       CN NO.      REASON FOR CHANGE
---------   ----       ------      -----------------
1.0        14/02/97               NEC Contract Issue
2.0        17/2/97                To incorporate final NEC comments.
2.1        19/2/97                Incorporate new para 1.4
2.2        26/2/97                Changes to table para 4.3 new para 4.5
2.3        26/2/97                Minor editorial changes

                                       1         Confidential and Proprietary to
                                                 ICO Global Communications

<PAGE>   522

                                 [COPY MISSING]
<PAGE>   523
                       IGF PROJECT MASTER LEVEL SCHEDULE

<TABLE>
<CAPTION>
ID             TASK NAME                START        FINISH                [GRAPH]
---    ----------------------------   ---------     ---------
<S>    <C>                            <C>           <C>
631    12 SAN & 2 NMC                  22-05-00      11-08-00
632
633    TRAINING                        28-02-97      28-02-97
634    Agree Detailed Training Plan    05-09-97      05-09-97
635
636    HAND OVER                       11-08-00      11-08-00
</TABLE>

PROJECT: 27 FEB ICO MLS VER 2.MPP               [LEGEND]
DATE: 27-02-97

DOC: 770019 VERSION 2A        PAGE 31         REVISED ON THE 27th FEBRUARY, 1997
<PAGE>   524

                                 [COPY MISSING]
<PAGE>   525

                                                                        4.6.30.1

[ICO LOGO]

IGF SUPPLY AGREEMENT                                   CHANGE ORDER NO:  1
CONTRACT NO ICOO97 - 1016/GW
                                                       DATE: 15TH OCTOBER 1997

In accordance with clause 9 of the Supply Agreement dated March 3rd 1997
between NEC Corporation and ICO Global Communications (Operations) Limited, the
Agreement is hereby amended as follows:

<TABLE>
<S>                                     <C>
Amended Clauses                         as per the attached
-----------------------------------------------------------------------------------
Amended Schedules                       as per the attached
-----------------------------------------------------------------------------------
Amended Annexes                         as per the attached
-----------------------------------------------------------------------------------
Amended Price                           as per the attached
-----------------------------------------------------------------------------------
Other Amendments                        as per the attached
-----------------------------------------------------------------------------------
Reference Correspondence                IUKC-161; IUKC-172; SA0200/WG7/19970630/GT;
                                        SA0204/WG7/19970702/GW
-----------------------------------------------------------------------------------
</TABLE>

This Change Order No. 1 will now form part of the Supply Agreement dated March
3rd 1997 between the parties effective as from July 1st 1997 and shall be
governed by and construed in accordance with the laws of England.

Except for the changes set out above, this Change Order No. 1 makes no further
amendments or modifications to the Agreement.

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

Signed for and on behalf of                  Signed for and on behalf of
ICO GLOBAL COMMUNICATIONS (OPERATIONS) LTD   NEC CORPORATION

/s/ [Signature Illegible]                    /s/ [Signature Illegible]
---------------------------------            ---------------------------------
Supervising Officer                          Contractor's Authorised
                                             Representative

15-10-97                                     15/10/97
----------------                             ----------------
Date                                         Date
<PAGE>   526

                               CHANGE ORDER NO. 1
                        TO THE SUPPLY AGREEMENT BETWEEN
                              NEC CORPORATION AND
                 ICO GLOBAL COMMUNICATIONS (OPERATIONS) LIMITED

By this Change Order No. 1, effective July 1st 1997 ("Effective Date"), the
Supply Agreement dated March 3, 1997, between NEC Corporation ("the Contractor")
and ICO Global Communications (Operations) Limited ("ICO") (hereinafter
referred to as the "Supply Agreement") is amended as set out below:

BACKGROUND TO CHANGE ORDER NO. 1

A) Under the terms and conditions set forth in the Supply Agreement, ICO agreed
to purchase from the Contractor certain equipment and services as are specified
therein, and the Contractor and the other members of the NEC Team have agreed
to provide the said equipment and services;

B) ICO has agreed that the NEC Team shall carry out Works and produce
Deliverables under Clause 9 of the Supply Agreement in accordance with the terms
of the GPRS Proposal Version 4.1 (Amended) comprising Attachment 1 to this
Change Order;

C) The NEC Team acknowledge ICO's intention to solicit bids from third parties
for a contract to supply to ICO with a GPRS system for use with the ICO System
and that the Deliverables under this Change Order shall include the NEC Team bid
for such a contract;

D) ICO and the Contractor have agreed to amend the Supply Agreement to govern
the terms of the Works and the Deliverables specified in Attachment l;

In consideration of the foregoing and for other good and valuable consideration
acknowledged by the Parties to have been given, it is agreed:

1. DEFINITIONS

For the purposes of this Change Order the following words used herein or in the
Supply Agreement shall have the following meanings:

"Deliverables" shall mean those deliverables set out in Attachment 1.

"Statement of Work" and "Works" shall mean Attachment 1 and the works described
therein.

"GPRS Schedule" shall mean Table 9.2 and figure 9.1 of Attachment 1.

"Technical Deliverables" shall mean items 1,2,3,5 and 6 listed in Table 8.1 of
Attachment 1.

                                      -1-
<PAGE>   527

For the avoidance of doubt, references in the Supply Agreement to Top Level
Milestone Schedule and Master Level Schedule shall not apply to this Change
Order.

2.      WORKS AND DELIVERABLES

ICO hereby agrees to purchase and NEC Team agrees to supply the Deliverables and
carry out the Works set out in Attachment 1 in accordance with the time scales
set out in the GPRS Schedule at the prices set forth in Clause 5 of this Change
Order.

3.      APPLICATION OF SUPPLY AGREEMENT TERMS AND CONDITIONS

3.1     The following clauses of the Supply Agreement shall not apply to this
        Change Order 1:

        4.1(a), 4.1(c) to (e) inclusive, 4.1(h), 4.2 to 4.5 inclusive, 4.7,
        4.10, 5, 8 to 9 inclusive, 12.2 to 12.4 inclusive, 14, 15.1 to 15.4
        inclusive, 16.2 to 16.3 inclusive, 16.6 to 16.18 inclusive, 17 to 19
        inclusive. 22 to 23 inclusive, 25 to 29 inclusive, 31 to 38 inclusive,
        40.2 to 40.11 inclusive, 40.13; 40.15 to 40.16 inclusive, 41.1 to 41.5
        inclusive , 41.7 to 41.10 inclusive, 44 to 48 inclusive 51 to 52
        inclusive, 54, 56, Schedule 6 to 12.

3.2     The following clauses of the Supply Agreement are amended for the
        purpose only of this Change Order and not further or otherwise.
        4.1 (b) is amended to read:

        "it will design, develop, create, deliver and provide (as the case may
        be) all of the Deliverables so as to fulfil the objectives and the
        requirements of the Statement of Work"

        4.1 (f) is amended to read:

        "the Disclosable Information (as defined in clause 9 of this Change
        Order) included within the Deliverables shall be provided so as (1) not
        to prevent any third party, possessing sufficient skill and care, from
        implementing a GPRS system for use with the ICO System, and (2) to have
        no adverse effects upon the IGFR requirements and, in particular, the
        end-to-end services described within section 4 of the IGFR; and that the
        Deliverables, if implemented by the NEC Team, will not give rise to or
        result in, adverse effects upon the IGFR requirements and, in
        particular, the end-to-end services described within section 4 of the
        IGFR."

        4.1 (i) is amended to read:

                                      -2-
<PAGE>   528

        "the Deliverables shall be specified in such a way as to facilitate
        updates, additional functionalities or enhancements to them in the
        future."

        4.1 (l) is amended to read:

        "it will provide and will ensure that its Sub-Contractors provide, a
        sufficient number of suitably skilled and appropriately experienced
        personnel to meet the objectives of this Change Order and to ensure that
        delivery of the Deliverables is completed in accordance with the GPRS
        Schedule;"

        4.1 (n) is amended to read:

        "the equipment, software or other equipment which is or shall be
        specified in the Deliverables will be provided by the NEC Team at a
        reasonable cost and on reasonable terms."

        Clause 12.1 shall be amended to read:

        "without prejudice to ICO's other obligations under the Change Order,
        ICO shall provide the Contractor with such information, services and
        equipment as shall be specified in the Statement of Work. To the extent
        that ICO's failure in any material respect to comply with its
        obligations under this clause 12.1 shall adversely and directly affect
        the ability of the Contractor to comply with the GPRS Schedule, then to
        the extent the Contractor and the other members of the NEC Team can
        demonstrate the same to be required, the GPRS Schedule shall be adjusted
        in an equitable manner."

        Clause 40.1 shall be amended to read:

        "notwithstanding inspection, testing and acceptance by ICO of any of the
        works or the Deliverables or any other provision of this Change Order
        which purports to make acceptance by ICO conclusive, the Contractor
        guarantees throughout the period commencing with the date of acceptance
        of the Deliverables and ending 2 years later, that the contents of the
        documentation comprised within the Deliverables are correct and free
        from defects or faults (failing which clause 40.12 (a) shall apply.)"

4.      LIMITATION OF LIABILITY

In the event that any act or omission of ICO or any member of the NEC Team or
any of their respective directors or employees or any of their respective
subsidiaries or affiliated undertakings or by their respective consultants,
sub-contractors, servants, representatives or agents causes or results in
damage, loss or destruction to any

                                      -3-
<PAGE>   529
property of the other or the other's staff or third parties and/or death or
bodily injury to any member of the other's staff, then the party responsible
shall indemnify, defend and hold the other harmless from and against all
actions, costs, claims, demands, damages and liabilities, including reasonable
legal fees and expenses, resulting therefrom. Notwithstanding the foregoing,
each party's maximum liability to the other for damage or loss or destruction of
property under this clause 4 shall be limited to US$     *      . For the
purpose, only, of determining any liability of any member of the NEC Team under
this clause 4 it is agreed that any such liability shall contribute to the
aggregate of the liability of the NEC Team under Clause 51.2 of the Supply
Agreement dated 3rd March 1997.

5.      PRICE AND PAYMENT

5.1     ICO will purchase the Deliverables hereunder for the firm fixed price of
             *      . Payment will become due by ICO on the following basis
         (i)   *% on the date of signature;
         (ii)  *% on the date of acceptance of the Technical Deliverables due
              under this Change Order.

5.2     The NEC Team shall invoice ICO for such payments on the due dates and
        ICO shall pay such valid invoices submitted in the form specified in
        Schedule 4 of the Supply Agreement within 21 days of receipt.

6.      ACCEPTANCE

ICO shall have 28 days from the receipt of a Technical Deliverable in which to
accept such Technical Deliverable. If ICO does not accept a Technical
Deliverable it will indicate its non acceptance within 28 days of receipt and
provide the Contractor with written reasons for its non acceptance, which shall
be on the basis that in ICO's reasonable view, the Technical Deliverable fails
to meet the requirements set out in Attachment 1.

Should ICO fail to either accept or indicate its non acceptance of a Technical
Deliverable within 28 days of its delivery, the Technical Deliverable will be
deemed to be accepted by ICO.

It is agreed and understood that this clause 6 shall not apply to Deliverables
that are not Technical Deliverables.

7.      DELIVERY

All Deliverables shall be provided in accordance with Annex 6 of the Supply
Agreement except that the number of hard copies to be provided shall be 10.

All deliverables shall be delivered to:
ICO Global Communications (Operations) Limited

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

                                      -4-

<PAGE>   530

c/o ICO Services Limited
1 Queen Caroline Street
London W6 9BN
England
For the attention of: George Wiginton - Procurement Manager

8.      FINANCING

The Parties agree that the NEC Team has no obligation to provide vendor
financing to ICO pursuant to this Change Order.

9.      NON DISCLOSURE

Notwithstanding the provisions of article 41.6 of the Supply Agreement, ICO
will be permitted to disclose information comprised in certain of the
Deliverables hereunder ("Disclosable Information") to third parties solely for
the limited purpose of soliciting competitive bids for an ICO GPRS system, in
the form of a Request for proposal ("RFP"). The information which ICO may and
may not disclose to prospective third party bidders is set forth in Attachment 2
to this Change Order. ICO shall take reasonable steps to ensure that Disclosable
Information is used by third party bidders only in connection with the
preparation and submission of ICO GPRS system bids. ICO will disclose to the
NEC Team any third party GPRS system RFP 7 days prior to distribution to third
party bidders, redacted so as to conceal the identity of such bidders. Provided
such GPRS system RFP contains only Disclosable Information, ICO will require no
further NEC Team authorisation before circulating such RFP.

10.     INTELLECTUAL PROPERTY RIGHTS

10.1 ICO and the Contractor acknowledge that:

        (a)     NEC Team Intellectual Property is owned by the NEC Team
                member(s) generating such Intellectual Property Rights;

        (b)     ICO Intellectual Property is owned by ICO.

10.2 The licence to ICO under NEC Team Intellectual Property Rights pursuant to
this Change Order shall be as follows:

10.2.1 In the event that the NEC Team is awarded the contract to supply ICO
with a GPRS system for use with the ICO System (regardless of which of NEC,
Ericsson and Hughes assumes the position of prime contractor), the Contractor
hereby grants and shall procure the grant by the other members of the NEC Team
to ICO irrevocable world-wide non-exclusive paid-up licences (with right to
sub-licence) to use NEC Team Intellectual Property incorporated by the NEC Team
into the Deliverables

                                      -5-
<PAGE>   531

delivered by the Contractor solely for the purposes of operating or having
operated in accordance with the provisions of this Agreement the Deliverables in
the ICO System.

10.2.2 In any event the NEC Team Licence under clauses 41.2 and 41.3 of the
Supply Agreement is extended to cover use of deliverables under the Supply
Agreement in conjunction with a GPRS system.

10.2.3

        The Contractor hereby grants and shall procure the grant by the other
NEC team members to ICO an irrevocable, worldwide, non-exclusive, paid-up
license (with right to sub license) to use Disclosable Information solely for
the purposes of implementing or having implemented, operating or having operated
an ICO GPRS system with the ICO system.

10.3 ICO hereby grants to the Contractor and agrees to grant to each of the
other members of the NEC Team irrevocable world-wide, non-exclusive licences
with right to sub-licence to use the ICO Intellectual Property for the purposes
of carrying out the Works and supplying the Deliverables to ICO.

10.4 The Contractor hereby undertakes that it will not and agrees to procure
that the other members of the NEC Team will not either alone or acting together
make available directly or indirectly for commercial use during the periods
described in clause 10.5 below the Protected Features which are, - features
which fulfil all the following criteria, being

i) new and

ii) developed by or at the direction of the members of the NEC Team under this
Change Order and

iii) are features in the system areas identified below as Key Features

to any other operator of Satellite Based Communications Systems without the
express written consent of ICO.

KEY FEATURES

1) Changes to published protocols or interfaces such as GSM Gb interface.

2) Multi SAN paging

3) Paging escalation

4) X,Y co-ordinates and accuracy parameter storage

5) SAN ID and service area/service region parameters usage for ICO GPRS

                                      -6-
<PAGE>   532

6) Location update in ready and standby state

7) Selecting the nearby SGSN

8) SBS channel Manager selection

9) Frame relay switch concept for connectivity SBS - SGSN located in different
SANs

10) Procedures and algorithms to implement reliable handovers through a
combination of use of signal level measurement reports, IT position measurements
and spot beam co-ordinate broadcast for satellite spot beam selection together
with supporting Air Interface protocols.

11) Protocols and algorithms to implement reliable timing and frequency
synchronisation at the UT and SBS for the purposes of minimising unnecessary
transmissions using the Air Interface.

12) Protocols and algorithms to implement a reliable power control mechanism in
order to minimise the power required for UT and SBS and to provide the optimum
communication link.

13) Procedures to provide efficient power and frequency planning for the
ICO-GPRS system.

14) Modifications to the GSM GPRS Mobility Management (MM) and Radio Resources
(RR) state diagram for use for ICO-GPRS.

15) Protocols and algorithms to implement an efficient and accurate position
determination system (note: this design will be different from the CS case)

10.5 The restrictions set out in paragraph 10.4 above shall apply for a period
commencing from the effective date of this Change Order and expiring on the
earlier of:

10.5.1 should ICO and the NEC team enter a contract for the supply of GPRS
services on the ICO System, the date specified in such agreement; or

10.5.2 6th March 1998;

or on any such other date as the parties may agree.

10.6 Nothing shall restrict the members of the NEC Team either alone or acting
together from making available directly or indirectly for commercial use at any
time by any person features which are the same as or substantially similar to
the Protected Features where such features are the result of work done
independently of the work done under this Change Order or from exploiting NEC
Team Intellectual Property

                                      -7-
<PAGE>   533

generated prior to the date of this Agreement and without otherwise breaching
the terms of this Change Order or any offer agreement between ICO and the NEC
Team or any of them, or otherwise infringing ICO's legal rights.

10.7 For the avoidance of doubt the fact that work done independently of the
work done under this Change Order results in a notification under clause 9.4 of
the Supply Agreement to ICO and a related change under clause 9 of the Supply
Agreement does not bring such work within the scope of the restrictions on
making available directly or indirectly for commercial use features which are
new and developed by or at the direction of the members of the NEC Team under
this Change Order set out in clause 10.4.

10.8 For the avoidance of doubt the parties hereby agree that the provisions of
clause 8 of the IPC continue to apply to Intellectual Property Rights comprised
in the deliverables supplied under the IPC or reduced into practice in the work
done under the IPC and that notwithstanding any of the provisions of clause 8 of
the IPC the provisions of this clause shall apply to all work done pursuant to
this Agreement in the development and supply of the Deliverables.

10.9 For the avoidance of doubt, none of the restrictions in clause 10.4 above
shall apply to the development, manufacture, use or sale of features developed
by the NEC Team outside the scope of the Supply Agreement, this Agreement or
any other agreement or contract between ICO and the NEC Team and any member
thereof without breaching the terms of the above agreements or otherwise
infringing ICO's legal rights.

11. RATIFICATION OF IC SUPPLY AGREEMENT

11.1 Except as provided for herein, the terms and conditions of the Supply
Agreement shall continue in full force and effect.

11.2 This Change Order sets forth the entire agreement between the Parties as to
the subject matter hereof and supersedes all prior discussions between them, and
neither of the Parties shall be bound by any conditions, definitions,
warranties, understandings, or representations with respect to such subject
matter other than as expressly provided herein.

11.3 In the event of a conflict between the terms of this Change Order and the
terms of the Supply Agreement, the terms of this Change Order shall prevail.

12. NEC TEAM OPTION TO MATCH OTHER BIDS

In the event that ICO wishes to have the Works and Deliverables committed into
practice, then the NEC Team (regardless of which of NEC, Ericsson and Hughes
assumes the position of prime contractor) shall be afforded the opportunity to
match

                                      -8-
<PAGE>   534
and other bona fide bid of functionality and price and, if so doing, will be
offered the contract for this work on the basis of an NEC Team bid on equivalent
terms.

                                      -9-
<PAGE>   535

                               CHANGE ORDER NO. 1
                                  ATTACHMENT 1

                              PROPOSAL FOR ICO GPRS
                     REQUIREMENTS SPECIFICATION DEVELOPMENT
                                    CONTRACT

<PAGE>   536
                                                                      [ICO LOGO]
                                                                      [NEC LOGO]
                                                                 [ERICSSON LOGO]
                                                                   [HUGHES LOGO]
HNS-11181

                              PROPOSAL FOR ICO GPRS
                REQUIREMENTS SPECIFICATION DEVELOPMENT CONTRACT

                                  Revision 4.1
                                  (Revised)

                                 JUNE 26, 1997

<PAGE>   537

                               PROPRIETARY NOTICE

"These materials contain technical and Business Confidential Information of the
NEC Team and/or its members, NEC Corporation, Ericsson, and Hughes Network
Systems, and are subject to all applicable confidentiality and nondisclosure
restrictions in place between ICO and the NEC Team and its member companies.
These materials are being provided to ICO Global Communications solely for the
purpose of ICO's evaluation of this proposal and may not be otherwise used,
copied, distributed or transferred by ICO without the express written permission
of the owner(s) of the Confidential Information. The title, ownership rights,
and all intellectual property rights in these materials remains in the NEC Team
and/or its member companies."

                                       ii
<PAGE>   538
                                        TABLE OF CONTENTS

<TABLE>
<CAPTION>
SECTION                                                                     PAGE
--------------------------------------------------------------------------
<S>                                                                         <C>
1.0  INTRODUCTION.........................................................   1-1
1.1  PURPOSE AND SCOPE....................................................   1-1
1.2  OVERVIEW.............................................................   1-1
1.3  APPLICABLE DOCUMENTS.................................................   1-2
1.4  LIST OF ABBREVIATIONS................................................   1-2
2.0  ARCHITECTURAL OVERVIEW...............................................   2-1
3.0  REQUIREMENTS SPECIFICATION DEVELOPMENT...............................   3-1
3.1  PROPOSED REQUIREMENT DOCUMENT OUTLINE................................   3-2
3.2  ARCHITECTURAL OVERVIEW...............................................   3-2
3.3  SERVICE REQUIREMENTS.................................................   3-2
3.4  AIR INTERFACE REQUIREMENTS...........................................   3-2
3.5  ADMINISTRATION AND SUPPORT SERVICES..................................   3-3
3.6  ICO GPRS SBS REQUIREMENTS............................................   3-3
3.7  ICO GPRS SWITCHING REQUIREMENTS......................................   3-4
3.8  RFT/IDS REQUIREMENTS.................................................   3-4
3.9  UDT REQUIREMENTS.....................................................   3-4
3.9.1 UDT PROTOTYPE REQUIREMENTS..........................................   3-5
3.9.2 COMMERCIAL UDT REQUIREMENTS.........................................   3-5
3.10 NETWORK MANAGEMENT SYSTEM REQUIREMENTS...............................   3-6
3.11 SATELLITE RESOURCE MANAGEMENT CENTER REQUIREMENTS....................   3-6
3.12 DCN REQUIREMENTS.....................................................   3-6
3.13 PERFORMANCE REQUIREMENTS.............................................   3-6
3.14 ICO GPRS CAPACITY REQUIREMENTS.......................................   3-6
4.0  ICO GPRS AIR INTERFACE CHANGE REQUEST PACKAGE........................   4-1
5.0  STATEMENT OF WORK....................................................   5-1
5.1  PROPOSED OUTLINE FOR STATEMENT OF WORK...............................   5-1
5.2  STATEMENT OF WORK CONTENTS...........................................   5-1
5.3  APPLICABLE DOCUMENTS.................................................   5-2
5.4  CONTRACTOR DELIVERABLES..............................................   5-2
5.5  ICO DELIVERABLES TO CONTRACTOR.......................................   5-2
5.6  INSTALLATION SITE CONDITIONS.........................................   5-2
5.7  PROGRAM MANAGEMENT AND IMPLEMENTATION................................   5-2
5.8  TRAINING.............................................................   5-3
5.9  DOCUMENTATION........................................................   5-3
5.10 SITE WORKING ARRANGEMENT.............................................   5-3
5.11 ICO GPRS TEST PLANS..................................................   5-3
5.12 ICO GPRS END-TO-END DATA TRANSFER DEMONSTRATION......................   5-3
5.13 ICO GPRS INTEGRATION TEST............................................   5-3
5.14 ICO GPRS ACCEPTANCE CRITERIA.........................................   5-3
5.15 OPTIONS..............................................................   5-4
6.0  MARKET PLANNING FOR ICO GPRS.........................................   6-1
6.1  GENERAL..............................................................   6-1
6.1.1 OBJECTIVES..........................................................   6-1
6.2  SCOPE................................................................   6-1
6.2.1 DETAILED BUSINESS CASE RESULTS......................................   6-2
6.2.2 CUSTOMER PROPOSITION................................................   6-2
6.2.3 DISTRIBUTION COST...................................................   6-3
6.3  OTHERS...............................................................   6-3
</TABLE>

                                      iii

<PAGE>   539
<TABLE>
<S>                                                              <C>
7.0 PRICE PROPOSAL............................................... 7-1
8.0 DELIVERABLES................................................. 8-1
9.0 SCHEDULE..................................................... 9-1
10.0 ORGANIZATION AND PERSONNEL..................................10-1
10.1 ERICSSON PERSONNEL..........................................10-1
10.1.1 TECHNICAL TEAM............................................10-1
10.1.2 MARKETING TEAM............................................10-2
10.2 HNS PERSONNEL...............................................10-2

APPENDIX A DRAFT REQUIREMENTS SPECIFICATION...................... A-1
</TABLE>

                                       iv
<PAGE>   540
                                LIST OF FIGURES

<TABLE>
<CAPTION>
FIGURE                                                          PAGE
------                                                          ----
<S>           <C>                                               <C>
FIGURE 2-1.   ICO GPRS ARCHITECTURE ............................ 2-3
FIGURE 2-2.   ICO GPRS TRANSMISSION PATH PROTOCOL STACK......... 2-3
FIGURE 9-1.   APPLICABLE SCHEDULE FOR A 1 JULY 1997 START....... 9-3
FIGURE 10-1.  PROJECT ORGANIZATION..............................10-1
</TABLE>

                                       v
<PAGE>   541
                                 LIST OF TABLES

<TABLE>
<CAPTION>
TABLE                                                                           PAGE
-----                                                                           ----
<S>          <C>                                                                <C>
Table 3-1.   Specific ICO GPRS Requirements Specification Outline .............  3-1
Table 5-1.   Statement of Work Outline.........................................  5-1
Table 8-1.   List of Deliverables to ICO by the Contractor.....................  8-1
Table 9-1.   ICO GPRS Requirements Specification Contract Schedule*............  9-1
Table 9-2.   ICO GPRS Requirements Specification Contract Schedule with
              1 July Letter of Intent..........................................  9-1
</TABLE>
<PAGE>   542

                                              PROPOSAL FOR ICO GPRS REQUIREMENTS
                                                               HNS-11181 (6/97P)

                                1.0 INTRODUCTION

1.1 PURPOSE AND SCOPE

This proposal defines the effort required to develop the ICO GPRS (general
packet radio service) Requirements Specification and the contractual framework
for ICO and the contractor to sign an agreement for the delivery of an ICO GPRS
system.

With the mutual agreement of ICO and the contractor, an ICO GPRS supply contract
could be agreed at the interim point of this requirements contract and the
completion of the requirements contract would be included in the ICO GPRS main
supply contract.

The NEC Team is uniquely qualified to undertake this requirements study and the
later supply contract for the ICO GPRS system. The NEC Team members have
extensive experience with all aspects of the technology required for a
successful ICO GPRS system: satellite communications, packet switching, GPRS,
and the details of the ICO circuit system.

The functions of the ICO Circuit System are defined by Reference 1.

An early start will allow for the simultaneous production and installation of
the equipment with the ICO circuit system, which will result in a substantial
savings to ICO.

1.2 OVERVIEW

This document is structured as follows:

        -       Chapter 2.0 Architectural Overview, provides a description of
                the baseline model for the ICO GPRS system. This baseline will
                be the starting point for the studies required to determine the
                ICO GPRS requirements.

        -       Chapter 3.0 Requirements Specification Development, describes
                the background effort to be performed to develop sound,
                implementable ICO-specific requirements for the ICO GPRS
                system.

        -       In Chapter 4.0 the definition of the ICO GPRS Air Interface
                Change Request package is provided.

        -       Chapter 5.0 defines the content for the Statement of Work to be
                provided for the ICO GPRS main supply contract.

        -       Chapter 6.0 describes the development of the marketing and
                business case for ICO GPRS.

        -       Chapter 7.0 defines the outline for how the pricing will be
                presented for the ICO GPRS main supply contract.

        -       Chapter 8.0, Deliverables, provides a list of the documents
                deliverable under this contract.

        -       Chapter 9.0, Schedule, defines a delivery schedule for the
                various meetings and deliverables.

        -       Chapter 10.0 provides the organization of the ICO GPRS
                requirements development team.

        -       Appendix A attaches a draft requirements specification for ICO
                GPRS that was developed during preliminary work done by the
                contractor and ICO Staff, which is attached for reference only.

                                      1-1
<PAGE>   543

                                              PROPOSAL FOR ICO GPRS REQUIREMENTS
                                                               HNS-11181 (6/97P)

1.3 APPLICABLE DOCUMENTS

        1. ICO IGF Supply Agreement Version 25,17 February 1997 (Circuit System)

1.4 LIST OF ABBREVIATIONS

<TABLE>
<S>            <C>
ADC            administrative data center
AuC            authentication center
BSSGP          base station subsystem GPRS protocol
CCCH           common control channel
ChM            channel manager
ChU            channel unit
CUB            channel unit block
DCN            data communication network
EIRP           effective isotropic radiated power
ETSI           European Telecommunications Standards Institute
FR             frame relay
Gb'            Gb prime, interface between SBS and SGSN
GGSN           GPRS gateway support node
GPRS           general packet radio service
GSM            global system for mobile
GSN            GPRS support node
GTP            GPRS tunnel protocol
HLR            home location register
IDS            IF distribution system
IF             intermediate frequency
IP             Internet protocol
LLC            logical link control
NEM            network element manager
LSRMS          local satellite resource management subsystem
MAC            media access control
MSSC           mobile satellite switching center
NMC            network management center
OMC            operations and maintenance console
OSS            operations subsystem
PDN            public data network
PLMN           public land mobile network
RACH           random access channel
RFT            radio frequency terminal
RLC            radio link control
SACCH          slow associated control channel
SAN            satellite access node
SAN OSS        operations console per SAN site
SBS            satellite base station
SBS OMC        satellite base station operations and maintenance console
SGSN           serving GPRS support node
SMS            short message service
SNDCP          subnetwork dependent convergence protocol
SNMP           simple network management protocol
SOW            statement of work
</TABLE>

                                      1-2
<PAGE>   544

                                              PROPOSAL FOR ICO GPRS REQUIREMENTS
                                                               HNS-11181 (6/97P)

<TABLE>
<S>            <C>
UDT            user data terminal
UT             user terminal
VLR            visitor location register
</TABLE>

                                      1-3
<PAGE>   545

                                              PROPOSAL FOR ICO GPRS REQUIREMENTS
                                                               HNS-11181 (6/97P)

                           2.0 ARCHITECTURAL OVERVIEW

This chapter provides architectural baseline for the ICO GPRS Requirements
Specification Development Contract.

The ICO GPRS service using the ICO satellites provides connectionless packet
data services based on the GPRS standards. The ICO GPRS system appears to other
GPRS networks as a GPRS providing the same services as the standard GSM GPRS
service. The ICO GPRS system provides interworking and roaming with standard
GPRS systems.

The current ICO ground facilities provide services that, in this document (and
in recent versions of global system for mobile (GSM) standards), are called
circuit switched services. It represents services such as voice, modem/fax
calls, and short message service (SMS) that are provided by the ICO circuit
switched system.

The ICO GPRS functionality will be provided by the ICO GPRS system. This system
involves some new nodes and units as well as new functions in the existing ICO
nodes and units. FIGURE 2-1 provides an architectural overview of the ICO GPRS
system integrated with the ICO circuit system.

The ICO GPRS system shall be based on the European Telecommunications Standards
Institute (ETSI) GPRS standard with necessary modifications needed for the ICO
network. The modifications are primarily concerning the air interface and the Gb
interface.

The new nodes/units are:

        1.      Serving GPRS support node (SGSN) - the node that is serving the
                user terminal (UT). The SGSN manages the mobility management
                context with the UT and provides functions such as ciphering and
                data compression across the air interface.

        2.      Gateway GPRS support node (GGSN) - the node functioning as a
                gateway toward external non-GPRS networks. The GGSN performs
                routing and tunneling of data packets toward the UT's current
                point of presence.

        3.      Network element manager (NEM) - the node that is managing the
                operation and maintenance for the GSN nodes. NEM is an HP
                OpenView based product that can cooperate with TMOS. The
                interface between GSN and NEM is simple network management
                protocol (SNMP) based. An SNMP interface is provided between the
                SGSN and the GGSN to the satellite access node (SAN) operations
                subsystem (OSS) for alarm handling.

        4.      ICO GPRS channel manager - Provides the physical, media access
                control (MAC), and radio link control (RLC) levels of the
                protocol. It also has the interface to the SGSN.

        S.      ICO GPRS channel unit - The channel unit is the satellite modem
                for the ICO GPRS system.

        6.      In addition to these new nodes/units, the existing nodes: mobile
                satellite switching center/visitor location register (MSSC/VLR),
                home location register (HLR), authentication center (AuC), local
                satellite resource management subsystem (LSRMS), SBS OMC, SAN
                OSS, and network management center (NMC) will be upgraded with
                functions related to the ICO GPRS service.

                                      2-1
<PAGE>   546
                                              PROPOSAL FOR ICO GPRS REQUIREMENTS
                                                               HNS-11181 (6/97P)

The new interfaces are:

        1.      ICO GPRS air interface.

        2.      Gb'(Gb prime) - the interface between an SGSN and a SBS channel
                manager.

        3.      Gi - the interface between a GGSN and an external data network.

        4.      Gn - the interface between two GPRS support nodes (GSNs) in the
                ICO network.

        5.      Gp - the interface between a GSN in the ICO network and a GSN of
                an external GPRS network.

        6.      Gr - the interface between an SGSN and an HLR.

        7.      Gs - the interface between an SGSN and an MSSC/VLR.

        8.      The interface between a GSN and an administrative data center
                (ADC).

        9.      The interface between GSNs and the SAN OSS.

FIGURE 2-2 shows the ICO GPRS protocol stack for the data transmission path with
the following protocols:

        1.      GPRS tunnel protocol (GTP) tunnels user data and signaling
                between GSNs in the GPRS backbone network.

        2.      Internet protocol (IP) is the network protocol of the GPRS
                backbone used for routing user data and control signaling. The
                GPRS backbone network shall be based on the IP version 4
                protocol.

        3.      Subnetwork dependent convergence protocol (SNDCP) maps
                network-level characteristics onto the characteristics of the
                underlying network.

        4.      Logical link control (LLC) provides a highly reliable logical
                link. LLC supports mobility management and is independent of the
                underlying radio interface protocols.

        5.      Base station subsystem GPRS protocol (BSSGP): This layer
                conveys routing- and QoS-related information between SBS and
                the SGSN.

        6.      Frame relay carries LLC frames (multiplexed from several LLC
                connections to one frame relay (FR) connection between an SBS
                channel manager and an SGSN).The frame relay connection between
                the SBS and SGSN may be multihop and may traverse a network of
                frame relay switching nodes.

        7.      ICO radio link control (ICO RLC) provides a reliable radio link;
                this is an ICO unique protocol.

        8.      ICO medium access control (ICO MAC) controls the access
                signaling (request and grant) procedures for the radio channel;
                this is an ICO unique protocol.

                                       2-2
<PAGE>   547

                                              PROPOSAL FOR ICO GPRS REQUIREMENTS
                                                               HNS-11181 (6/97P)

                                  [FLOW CHART]
                       FIGURE 2-1. ICO GPRS ARCHITECTURE

                                  [FLOW CHART]
             FIGURE 2-2. ICO GPRS TRANSMISSION PATH PROTOCOL STACK

                                      2-3
<PAGE>   548

                                              PROPOSAL FOR ICO GPRS REQUIREMENTS
                                                               HNS-11181 (6/97P)

                   3.0 REQUIREMENTS SPECIFICATION DEVELOPMENT

3.1 PROPOSED REQUIREMENT DOCUMENT OUTLINE

TABLE 3-1 shows the outline for the requirements specification to be developed.
In order to develop an accurate and implementable requirements specification,
additional simulations and other studies as defined below will be required.

         TABLE 3-1. SPECIFIC ICS GPRS REQUIREMENTS SPECIFICATION OUTLINE

1.0 General
     1.1 Purpose and Scope
     1.2 Document Overview
     1.3 Related Documents
     1.4 Notation Conventions
2.0 Definitions and Acronyms
3.0 Architectural Overview
     3.1 Overview (Diagram)
     3.2 Description (Functionality) of Network Elements
     3.3 Interfaces Between Elements
     3.4 External Interfaces
4.0 Service Requirements
5.0 Air Interface Requirements
     5.1 Overview
     5.2 Modulation, Coding, and Range of Data Rates. Forward and Return
     5.3 Forward Path to Spot Beams
          5.3.1 Control Functions
          5.3.2 Traffic
     5.4 Return Path to Spot Beams
          5.4.1 Control Functions
          5.4.2 Traffic
6.0 Administration and Support Services
     6.1 Charging including interfaces
     6.2 Provisioning including interfaces
7.0 SBS Requirements
     7.1 Equipment Requirements
     7.2 Internal Interface Requirements (requirement impacts on other SBS
         components)
8.0 GPRS Switching Requirements
     8.1 SBSN Node
     8.2 GGSN Node
     8.3 O&M System for the GSN Nodes
     8.4 Network Element Manager
     8.5 Interfaces
     8.6 Charging Records
9.0 RFT/IDS Requirements
10.0 User Data Terminal Requirements
     10.1 UDT Prototype
          10.1.1 Architectural Requirements
          10.1.2 User Interface Requirements
          10.1.3 Air Interface Requirements
               10.1.3.1 Asymmetric Interface
               10.1.3.2 Simultaneous Transmit and Receive Using Diplexers
               10.1.3.3 Protocols

                                       3-1
<PAGE>   549

                                              PROPOSAL FOR ICO GPRS REQUIREMENTS
                                                               HNS-11181 (6/97P)

     Table 3-1. SPECIFIC ICO GPRS REQUIREMENTS SPECIFICATION OUTLINE (CONT.)

                          10.1.4 Integrated Test Feature Requirements
                          10.1.5 Schedule Requirements
                          10.1.6 Target Price Requirement
                  10.2 UDT Commercial Terminal
                          10.2.1 Terminal Types
                          10.2.2 User Interface and protocols
                          10.2.3 User features
                          10.2.4 Physical Requirements
                          10.2.5 Schedule Requirements
                          10.2.6 Target Price Requirement
           11.0 Network Management System Requirements
                  11.1 SAN OSS
                  11.2 Network Management Center
           12.0 Satellite Resource Management Center Requirements
                  12.1 Power Management
                  12.2 Frequency and Timeslot Management
           13.0 DCN Requirements
                  13.1 Interface
                  13.2 Capacity
           14.0 Performance Requirements
                  14.1 Air Interface
                  14.2 SBS Delay Requirements
                  14.3 GPRS Infrastructure Requirements
                          14.3.1 QoS Support
                          14.4.3 Delay
           15.0 ICO GPRS Capacity Requirements

3.2 ARCHITECTURAL OVERVIEW

The Architectural Overview of the requirements specification will provide a base
architectural model of the ICO GPRS system as a reference. This section will
describe functions of each of the components in the ICO GPRS system and provide
a summary description of the major internal interfaces and all external
interfaces.

3.3 SERVICE REQUIREMENTS

The Service Requirements subsection will define the differences in services
between a standard GPRS system and the ICO GPRS system. The ICO GPRS service
requirements will be captured in a separate document similar in structure and
based on the ETSI specification GSM 02.60.

3.4 AIR INTERFACE REQUIREMENTS

The Air Interface Requirements subsection defines the effort to develop the
requirements for the air interface of the ICO GPRS system with specific
orientation to determining the impacts that ICO GPRS will have on the air
interface of the ICO circuit system. Change requests will be developed and
submitted to ICO to initiate required changes in the circuit system air
interface that are required to support ICO

                                       3-2
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GPRS. These change requests will be provided as a separate deliverable. See
Chapter 4 for the description of the ICO GPRS Change Request Package.

In support of the requirements development, three areas have been identified
where analysis and simulation is needed to finalize the requirements definition:

        -       Modulation, coding, and range of data rates

        -       Evaluation of timing and frequency synchronization

        -       Control channel loading

In the modulation and coding area, studies and simulations are underway using a
modeling tool and other simulations to evaluate the performance of ICO's voice
system. The packet data requirements study will compare a limited set of
modulation/coding formats that require an extension of these ongoing activities.
These activities will use either the modeling tool or modifications of existing
simulation models. The range of data rates from 2.4 kbps to 64 kbps will be
evaluated.

The time and frequency synchronization maintenance of the packet data terminals
in the ICO environment when these terminals sometimes receive only sporadic
transmissions (i.e., every 10-20 seconds) for synchronization maintenance will
be studied. The contractor believes that existing simulation models used to
study the voice system can be augmented, for example, by adding models of UT
reference oscillator drift, to address this area. Timing and frequency
synchronization is a key area where analysis and simulation is needed to
evaluate a potential problem area that is unique to the packet data application.

Finally, analysis and simulation are needed to evaluate the air-interface
impacts of the packet data service on the ICO circuit system. Specifically, this
area will focus upon the common channel signaling that is expected to be shared
with the ICO circuit system. An analysis will be done to determine the expansion
actions to be taken as the traffic load increases: An increased number of common
channels or dedicated signaling channels for data. These control channel loads
are needed to support registration, synchronization, resource allocation,
handover (reregistration), and synchronization for the packet data service.

The analysis of the above items will include a tradeoff among the following
parameters:

        -  ICO GPRS SBS hardware commonality with the ICO circuit system SBS
           hardware
        -  System complexity
        -  Possible improvements in link margins
        -  Schedule impacts

The contractor will monitor the progress of the GPRS standards and submit change
requests for the air interface if required, using the standard change notice
procedure that has been defined for the ICO circuit system. These change
requests are subject to the terms defined in Chapter 4.

3.5  ADMINISTRATION AND SUPPORT SERVICES

The Administration and Support Services Subsection will define the requirements
for charging and the interface to the ADC. In addition, requirements will be
specified for the provisioning interface.

3.6 ICO GPRS SBS REQUIREMENTS

The ICO GPRS SBS Requirements subsection will address two sets of requirements
related to the SBS equipment:

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                                              PROPOSAL FOR ICO GPRS REQUIREMENTS
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        -       The requirements for the traffic carrying equipment of the ICO
                GPRS SBS

        -       The requirement impacts on other components in the current ICO
                circuit system due to the installation of the ICO GPRS equipment

The contractor proposes, as a baseline, a particular complement of channel units
and channel unit managers (four channel unit blocks (CUBs) and one channel
manager (ChM)) that is configured to serve the packet data application. The
capacity of this configuration needs to be evaluated by analysis and simulation.
A packet data source model will be developed using peak-to-average activity
ratios and statistics on session duration. These models can be used to estimate
the traffic handling capacity of the baseline SBS hardware configuration. The
contractor believes that elements of the existing traffic simulation model and
voice system queuing model can be modified to address this particular area.

The requirements impacts on the LSRMS, SBS OMC, and the circuit ChM are also
specified.

3.7 ICO GPRS SWITCHING REQUIREMENTS

The ICO GPRS Switching Requirements subsection will define the requirements for
the GPRS switching infrastructure, which includes:

        -       SGSN node
        -       GGSN node
        -       Operations and maintenance (O&M) system for the GSN nodes
        -       Charging records
        -       Interfaces

The proposed network architecture will be evaluated in detail to find the best
possible solution corresponding to services required, including the new GSN
nodes and the interaction with SBS as well as with existing nodes, HLR, and MS
SC/VLR. Also, the interface toward the external packet data networks and the
internal backbone will be specified.

Other functions that might be specific to lCO will be studied, such as charging
requirements.

Traffic handling capacity requirements for the packet switching nodes (GSN) will
be estimated based on a traffic model.

3.8  RFT/IDS REQUIREMENTS

The requirements on the radio frequency terminal (RFT) and the integrated
directory service (IDS) will be specified.

NOTE: No additional requirements are expected to be imposed on the RFT as long
      as the design constraints of the RFT are not exceeded.

3.9 UDT REQUIREMENTS

The contractor will address requirements for two UDTs:

        -       A prototype

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        -       A commercial terminal

3.9.1 UDT PROTOTYPE REQUIREMENTS

The UDT Prototype Requirements subsection will describe the requirements for a
prototype terminal that will be used for the test and validation of the lCO GPRS
system.

        -       Simultaneous transmit and receive using diplexers
        -       Asymmetric channels
        -       Other protocol requirements
        -       Hardware architectures for intermediate frequency (IF) and radio
                frequency (RF) sections for simultaneous multifrequency transmit
                and receive operation
        -       Efficient baseband implementation
        -       Layer II design considerations
        -       Layer III design considerations
        -       Physical size and weight
        -       Power requirements
        -       Other environmental requirements
        -       Transportability requirements
        -       User interface requirements
        -       Built-in test and monitoring requirements
        -       Development schedule
        -       Target price

3.9.2 COMMERCIAL UDT REQUIREMENTS

The Commercial UDT Requirements subsection will define the following
requirements for a handheld commercial ICO GPRS UDT:

        -       Terminal types to be supported - Class A, B, and C.
        -       User interface and protocol stacks - what are the requirements
                for the UDT and the requirements for its companion PC or user
                device?
        -       User Features - which of the GPRS standard functions will be
                required and which will be optional. The available data rates
                will be defined for the terminal.
        -       Physical Requirements - defines the size and power requirements.
        -       Target Price Requirements - specifies the sell price of the
                terminal.

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3.10  NETWORK MANAGEMENT SYSTEM REQUIREMENTS

The Network Management System Requirements subsection will specify the
requirements on the SAN OSS and the Network Management Center (NMC) to support
the ICO GPRS system.

3.11 SATELLITE RESOURCE MANAGEMENT CENTER REQUIREMENTS

The Satellite Resource Management Center Requirements subsection will specify
the requirements on the SRMC to support the ICO GPRS system.

3.12 DCN REQUIREMENTS

The DCN Requirements subsection will specify the requirements on the data
communication network (DCN) in terms of capacity and types of interfaces.

3.13 PERFORMANCE REQUIREMENTS

The Performance Requirements subsection will specify the performance
requirements of the ICO GPRS system, which includes the following:

        -       Air interface
        -       Delay requirements
        -       Quality of service

3.14 ICO GPRS CAPACITY REQUIREMENTS

The ICO GPRS Capacity Requirements subsection will specify the requirements for
the end-to-end capacity of the ICO GPRS SBS and ICO GPRS switching components.

This subsection will also identify options for the start up of the ICO GPRS
service such that the GPRS switching equipment (SGSNs and GGSNs) are not
required at every site.

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4.0  ICO GPRS AIR INTERFACE CHANGE REQUEST PACKAGE

This study contract shall include the following:

        -       The delivery of the Air Interface Change Requests that must go
                into Version 4 of the ICO Circuit System Air Interface to
                support ICO GPRS. These are the changes that affect the common
                portions of the ICO GPRS and ICO Circuit System Air Interfaces
                such that the ICO Circuit System Air Interface will not have to
                change (i.e., ICO Circuit System UTs are not impacted) when ICO
                GPRS is implemented as part of a future ICO GPRS supply
                contract.

        -       The ICO circuit system will be designed to ignore (not process)
                the additional fields and values within fields that will be
                inserted to support ICO GPRS in the common ICO GPRS and ICO
                Circuit System Air Interface. These additional fields and values
                will not cause a processing exception (program failure) to occur
                in the ICO circuit system defined by Reference 1. With the
                exception of what is described in the previous two sentences,
                the implementation of air interface changes are not included in
                this study contract.

The implementation of those parts of the air interface that are ICO
GPRS-specific and have no impact on the ICO circuit system defined by Reference
1 are not included in this study.

Change requests for ICO GPRS will be processed using the same procedures as
defined for the ICO circuit system.

                                      4-1
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                             5.0 STATEMENT OF WORK

5.1 PROPOSED OUTLINE FOR STATEMENT OF WORK

TABLE 5-1 contains the outline for the Statement of Work for the ICO GPRS system
main supply contract.

                      TABLE 5-1. STATEMENT OF WORK OUTLINE

1.0 Introduction
2.0 Statement of Work Contents
3.0 Applicable Documents
4.0 Scope of Work
5.0 Contractor Deliverables to ICO
6.0 ICO Deliverables to Contractor
7.0 Installation Site Conditions
8.0 Program Management and Implementation
9.0 Training
10.0 Documentation
11.0 Site Working Arrangement
12.0 ICO GPRS Test Plans
13.0 End-to-End Data Transfer Demonstration
14.0 ICO GPRS Integration
15.0 ICO GPRS Acceptance Criteria
16.0 ICO GPRS System Support
17.0 Options
     17.1 ICO GPRS Air Interface Validation
     17.2 ICO GPRS Channel Manager Loopback Load Tester
     17.3 ICO GPRS UT Simulator
     17.4 ICO GPRS System Simulator
Annex 1 Contractor Deliverables
Annex 2 ICO Services and Equipment
Annex 3 Installation Site Conditions
Annex 4 Program Management, Implementation, and Schedules
Annex 5 Training
Annex 6 Documentation
Annex 7 Site Working Arrangements
Annex 8 A ICO GPRS Test Plan
Annex 8 B ICO GPRS End-to-End Data Transfer Demonstration
Annex 9 ICO GPRS Integration
Annex 10 ICO GPRS Acceptance Criteria
Annex 11 ICO GPRS Air Interface Signaling Protocol Validation (Option)
Annex 12 Channel Manager Loopback Load Tester (Option)
Annex 13 ICO GPRS UT Simulator (Option)
Annex 14 ICO GPRS System Simulator (Option)

5.2 STATEMENT OF WORK CONTENTS

This subsection provides an overview of what is contained in the ICO GPRS
Statement of Work.

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5.3 APPLICABLE DOCUMENTS

The Applicable Documents subsection provides a summary of the scope of effort to
be performed under the ICO GPRS main supply contract.

5.4 CONTRACTOR DELIVERABLES

The Contractor Deliverables subsection will contain the list of deliverables to
be provided to ICO by the contractor under the ICO GPRS main supply contract.
These deliverables will be listed in Annex 1 of the Statement of Work.

5.5 ICO DELIVERABLES TO CONTRACTOR

The ICO Deliverables to the Contractor subsection provides the list of
information and other deliverables that the contractor will require from ICO,
which includes the dates the deliverable is required. These deliverables will be
listed in Annex 2 of the Statement of Work.

5.6 INSTALLATION SITE CONDITIONS

The Installation Site Conditions subsection specifies the physical requirements
for the sites for the proper installation of the equipment. The details will be
provided in Annex 3 of the Statement of Work.

5.7 PROGRAM MANAGEMENT AND IMPLEMENTATION

The Program Management and Implementation subsection will include the program
management process for the ICO GPRS system. This section will be defined in
Annex 4 of the Statement of Work and will include:

        -       Program organization
        -       Reporting mechanism
        -       Documentation control
        -       Schedule, which includes the relationship to the ICO circuit
                system.

Two schedules will be presented with the following delivery dates:

        -       Simultaneous installation with the ICO circuit system
        -       Installation one year later than the ICO circuit system

The schedule will show the critical path items in the schedules to reach the
target dates. Critical path items include the following:

        -       Key design and installation dates for the ICO GPRS system
        -       Key dates with respect to the freezing of the ICO Circuit System
                Air Interface ICD
        -       Key dates where information or actions from ICO are required

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                                              PROPOSAL FOR ICO GPRS REQUIREMENTS
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The price proposals for the ICO GPRS Main Supply Contract will provide an
optional additional price for the installation that occurs 1 year later.

ICO may change the l-year time delay from the installation of the ICO circuit
system to the installation of the ICO GPRS system. ICO must provide the time
delay to the contractor for purposes of the price proposal by the Interim
Review.

5.8 TRAINING

The Training subsection defines the training courses that will be defined in
Annex 5 of the Statement of Work.

5.9 DOCUMENTATION

The Documentation subsection defines the documentation to be delivered in the
main supply contract. The details will be defined in Annex 6.

5.10 SITE WORKING ARRANGEMENT

The site working arrangements will be set out in Annex 7.

5.11 ICO GPRS TEST PLANS

Annex 8A will describe the test plan to be developed by the contractor to
demonstrate and verify the functionality of the ICO GPRS system.

5.12 ICO GPRS END-TO-END DATA TRANSFER DEMONSTRATION

Annex 8B will define the demonstration for an end-to-end data transfer
demonstration over the satellite.

5.13 ICO GPRS INTEGRATION TEST

Annex 9 will define the effort for integrating the ICO GPRS system with:

        -       Internal ICO GPRS elements
        -       The ICO circuit system
        -       External equipment such as the ADC

5.14 ICO GPRS ACCEPTANCE CRITERIA

The acceptance criteria for the ICO GPRS system will be defined in Annex 10.

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5.15 OPTIONS

A statement of work will be provided for each of the following options:

        -       Spars
        -       ICO GPRS Air Interface Validation (Annex 11)
        -       ICO GPRS Channel Manager Loopback Load Tester (Annex 12)
        -       ICO GPRS UT Simulator (Annex 13)
        -       ICO GPRS System Simulator (Annex 14)

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                        6.0 MARKET PLANNING FOR ICO GPRS

6.1 GENERAL

The NEC Team will provide applicable analysis and information based upon the GSM
GPRS. Currently it is not anticipated that an ICO-specific business plan will be
produced as a result of this exercise.

6.1.1 OBJECTIVES

The objectives for this study contract are:

        -       To develop a model customer proposition to include costs and
                details of how the end product will look and feel to the
                consumer

        -       A distribution model based upon Ericsson's experience with entry
                into new markets, addressing both horizontal and vertical
                dimensions

        -       To provide predefined information to enable ICO to produce a
                specific business case for entry into the GPRS market

        -       To assist in quantifying the cost of GPRS UTs to ICO

6.2 SCOPE

The proposal is to utilize Ericsson's proven business methodology in
establishing entry into new marketplaces.

The Ericsson model structure proposed to be used for this work is shown below:

        -       Scope definition

        -       Service description

        -       Market analysis

        -       Pricing

        -       Revenue estimation

        -       Cost estimation

        -       Cost/benefit analysis

        -       Conclusions and results

Data sources to be used:

        -       ICO business development information (information relevant to
                ICO GPRS and that ICO is willing to reveal to Ericsson)

        -       Ericsson strategic information (information relevant for ICO
                GPRS and that Ericsson is willing to reveal)

        -       End-user study information

        -       Other applicable internal information sources

        -       External sources

                                      6-1

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6.2.1 DETAILED BUSINESS CASE RESULTS

A) The study will cover a global marketplace of GSM-based GPRS in the time
period of 1999-2002, which will include:

        -       Number of GPRS operators

        -       Number of GPRS end-users

        -       Typically important GPRS applications

In addition, a presentation of a typical GSM operator on the European market,
for one horizontal and one vertical application, will be made, which will
include raw data such as:

        -       Traffic volumes

        -       Penetration figures

        -       Tariffs

        -       End-user segmentation

The GSM operator will be agreed upon at the kickoff meeting.

B) Proposed horizontal application: Intranet Web and standard office package.

C) Proposed vertical application: One telemetry application (vending machines).

D) A spreadsheet and text report that covers each of a, b and c above shall be
provided as a deliverable for this section.

6.2.2 CUSTOMER PROPOSITION

The customer proposition will explore at least one Internet application and
others agreed at the kickoff meeting. Deliverables under this section will also
include:

        -       A report highlighting differences between GSM circuit switched
                and packet switched, including setup time, delays, throughput,
                MMI, etc. The report format shall be as agreed in the memo on
                Customer Proposition dated 19.05.97. There will also be provided
                a rating comparison of further cases: GSM CSD/ICO CSD and GSM
                GPRS/ICO GPRS and ICO CSD/ICO GPRS. This comparison will use
                information that is currently available for the ICO system, and
                is agreed by ICO and the NEC team at the Interim Review.

        -       A CDROM demonstration illustrating the look and feel of the GSM
                GPRS service will be provided.

        -       Further enhancement of the CDROM (separate CDROM for ICO to be
                delivered in 5 copies) which includes:

                -  GPRS service description enhancement, showing how
                   point-to-point and point-to-multipoint services are working
                   in the network

                -  Description of the different mobile classes and examples on
                   how they could be used by different applications and
                   end-users

                -  End-user interface (man-machine interface) and examples on
                   how interactions will be, such as logging on to an ISP

                -  Different types of end-user equipment and the alternatives
                   for connection between Terminals (TE) and Mobiles (MT)

                                      6-2

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Above information will be based on the current end-user equipment programs as
well as assumptions on how services will be realized from an end-user
perspective. The output will be based on an interactive presentation method
which provides animation of the described function. The deliverable will be a CD
ROM to be used on an ordinary PC.

        -       Simulation of GSM-GPRS will be demonstrated at Ericsson
                facility. A written report, containing the output data of the
                GSM-GPRS simulation, will also be provided as a deliverable.

The NEC team will support reasonable requests for presentation at internal and
investor meetings to illustrate the above specified demonstrations and
simulations.

6.2.3 DISTRIBUTION COST

Specific information based on Ericsson's experience of setting up and
distribution of terminals and packages will be compiled and presented.
Information such as distribution channels, support, and marketing activities
will be provided. Also, solution bundling and market adaptations will be
covered.

This will be based on:

        -       Consumer market as horizontal application

        -       One vertical application (preferably an existing solution used
                by a packet data system like Mobitex)

A text report and spreadsheet shall be provided as a deliverable for ICO use
accordingly.

6.3 OTHERS

The business case structure and related information shall be handled as internal
information between ICO and Ericsson. Such information must be regarded as
highly confidential and must not be communicated to any other party.

Ericsson is currently investigating the possibility of when access to Ericsson's
consumer application test lab can be possible. It is understood that this
facility is currently under construction. When it is open for use, it will be
made available to ICO.

Within the scope of this study, the NEC Team will provide forecasts of factory
gate prices for handheld and two other classifications of GPRS-compatible UTs.
The list of terminal types will be agreed at the kick-off meeting.

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                               7.0 PRICE PROPOSAL

The Contractor shall provide a price proposal for the ICO GPRS system. The price
proposal shall be of the following format:

        -       Equipment - deliverable hardware and software

        -       Services - includes program management and warranty support

        -       Test Fixtures - equipment required for the testing of the ICO
                GPRS system

        -       In-Country Services - includes field installation, integration,
                and test

        -       Options - includes:

                -       Training

                -       Spares

                -       Other options

The price proposal will contain the impacts of delaying the ICO GPRS
installation until after the ICO circuit system is installed and tested.

All prices shall be fixed firm prices quoted in US$

Equipment shall be quoted on a FOB basis. Freight and Insurance shall be quoted
separately

Options shall include the price and detailed description of

                -       enhancements to the basic warranty (during the basic 2
                        year warranty period)

                -       entended and/or enhanced warranties after the basic 2
                        year warranty period

The price proposal shall be presented in the same format and in at least the
same detail as that contained in Schedule 9, Appendix 2 of the Supply Agreement

ICO and the NEC Team shall agree sizing and any required dimensioning drivers
within 17 weeks of the effective date as defined in the Change Order.

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                                8.0 DELIVERABLES

TABLE 8-1 provides the deliverables that will be provided by the Contractor to
ICO during the Requirements Specification Contract:

            TABLE 8-1. LIST OF DELIVERABLES TO ICO BY THE CONTRACTOR

                1.      ICO GPRS Functional Requirements (GSM 02.60 based)

                2.      Specific ICO GPRS Requirements Specification

                3.      ICO GPRS Air Interface Change Request Package (See
                        Chapter 4)

                4.      Terms and Conditions for the ICO GPRS Main Supply
                        Contract

                5.      Statement of Work For the ICO GPRS Main Supply Contract

                6.      Specified Inputs to Market Plan and Business Case for
                        ICO GPRS

                7.      Price Proposal for the ICO GPRS System

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                                  9.0 SCHEDULE

TABLE 9-1 shows the schedule for the requirements specification contract
schedule.

        TABLE 9-1. ICO GPRS REQUIREMENTS SPECIFICATION CONTRACT SCHEDULE*

<TABLE>
<CAPTION>
ITEM                                                                              WEEKS ARO
----                                                                              ---------
<S>                                                                               <C>
Kickoff Meeting and Preliminary Requirements Review in London                          1
First Draft ICO GPRS Functional Requirements (GSM 02.60 based)                         6
First Draft of Specific ICO GPRS Requirements Specification                            6
ICO GPRS Air Interface Change Request Package (First Group)                            6
First Draft of Terms and Conditions for the ICO GPRS Main Supply Contract              6
First Draft of Statement of Work for the ICO GPRS Main Supply Contract                 6
Draft Specific Inputs to Market Plan and Business Case for ICO GPRS                    6
Review at HNS                                                                          7
Interim Final ICO GPRS Functional Requirements (GSM 02.60 based)                      11
Final Specific ICO GPRS Requirements Specification                                    11
ICO GPRS Air Interface Change Request Package (Second Group)                          11
Final Terms and Conditions for the ICO GPRS Main Supply Contract                      11
Final Statement of Work for the ICO GPRS Main Supply Contract                         11
Final Specific Inputs to Market Plan and Business Case for ICO GPRS                   11
Final Review at HNS                                                                   12
</TABLE>

At the Interim Review the functional requirements for the ICO GPRS system will
be finalized to provide the basis for the price proposal.

* During July 1997 Ericsson will only provide limited resources for the market
plan and business case study; therefore, the actual schedule might be somewhat
changed, depending on start day.

If an ICO letter of Intent is issued by 1 July 1997 authorizing the Contractor
to start work on the study, the schedule shown in TABLE 9-2 and FIGURE 9-1 will
apply in place of the schedule shown in Table 9-1.

        TABLE 9-2. ICO GPRS REQUIREMENTS SPECIFICATION CONTRACT SCHEDULE
                        WITH 1 JULY 1997 LETTER OF INTENT

<TABLE>
<CAPTION>
ITEM                                                                           DURING WEEK OF
----                                                                           --------------
<S>                                                                            <C>
Conference Call for Radio Air Interface                                          30 June 1997
Conference Call for Hardware/Firmware Tradeoff                                   30 June 1997
Receive MAC and RLC specifications from ICO                                      14 July 1997
Baseline Requirements Outline for Air Interface                                  28 July 1997
Narrowing of ICO GPRS Air Interface Physical Level Options                       28 July 1997
Market Plan and Business Case - Spreadsheet Structure                            28 July 1997
Market Plan - Simulation                                                         28 July 1997
Kickoff Meeting and Preliminary Requirements Review in London                    28 July 1997
Air Interface Change Request Package Submitted - Lower Levels                    01 Sept 1997
Air Interface Change Request Package Submitted - Network Levels                  01 Sept 1997
</TABLE>

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                        10.0 ORGANIZATION AND PERSONNEL

FIGURE 10-1 shows the organization for the NEC Team ICO GPRS Requirements
Specification Development team. The HNS and Ericsson teams report to the NEC
Program Office in London.

                                   [DIAGRAM]

                       Figure 10-1. PROJECT ORGANIZATION

10.1 ERICSSON PERSONNEL

The Ericsson team is divided into two groups: technical and marketing. Chris
Jenkins will be the Ericsson program manager.

10.1.1 TECHNICAL TEAM

The Ericsson technical team has a broad range of technical experience in data
communications, GSM, and system development. The Ericsson team contributing to
the ICO GPRS requirements development contract are:

<TABLE>
<S>                          <C>
Claes Meltzer                Product management
Eric Valentine               System design
Krister Sallberg             System expert
</TABLE>

                                      10-1

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<TABLE>
<S>                          <C>
Jan Forslow                  System management
Per Lager                    System management
D. Turina                    Protocol expert
</TABLE>

Other members of the Ericsson staff will also contribute to the project as
required.

10.1.2 MARKETING TEAM

The Ericsson market analysis team has extensive experience with product
development with wireless technology. The Ericsson market development team
contributing to the ICO GPRS requirements development contract are:

<TABLE>
<S>                          <C>
Tom Grammer                  Market analyst
Keith Sunam                  Business development consultant
Fredrik Fornstad             Business development
Anna Muregard-Eriksson       Product management
</TABLE>

Other members of the Ericsson staff will also contribute as required.

10.2 HNS PERSONNEL

The following resumes are for the HNS personnel who will be contributing to the
ICO GPRS Requirements Development contract. Their expertise covers a broad
technical range: modulation, encoding, protocols, packet switching, network
management, and wireless technologies. Steve Thompson will be the HNS program
manager.

                                      10-2

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                                              PROPOSAL FOR ICO GPRS REQUIREMENTS
                                                               HNS-11181 (6/97P)

1958-1962 Lieutenant USN, Atomic Energy Commission, Naval Reactors Division,
          (Technical Staff of Admiral H. G. Rickover)

As Systems Engineer, Lt. Husted was responsible for design review, performance
evaluation, and program management of instrumentation and control systems for
various naval nuclear power plants.

EDUCATION

BS(EE)  Villanova University, Villanova, Pennsylvania., 1958

MSE(EE) University of Pennsylvania, Philadelphia, Pennsylvania, 1968

PROFESSIONAL CREDITS

Coinventor in ten awarded patents on TDMA techniques for satellite
communications.

IEEE - Senior Member

Armed Forces Communication and Electronics Association - Student Medal, 1957

PUBLICATIONS

"A TDMA System for the Defense Satellite Communication System," EASCON, 1970

"Current and Near Future Data Transmission via Satellites of the INTELSAT
Network," ICCC, October 1972

"A TDMA System for Digital Television," Second International Conference on
Digital Satellite Communications, November 1972

"Maritime Satellite Communications Terminal Implementation," Third International
Conference on Digital Satellite Communications. November 1975

"Low Cost Satellite Data Transmission Using Demand Assigned TDMA," Fourth
International Conference on Digital Satellite Communications, October, 1978

                                      10-5

<PAGE>   568
                                              PROPOSAL FOR ICO GPRS REQUIREMENTS
                                                               HNS-11181 (6/97P)

                               STEVEN G. THOMPSON
                           SENIOR PRINCIPAL ENGINEER

Mr. Thompson has a broad background in satellite mobile communications software
for both the voice and data markets. Mr. Thompson has been a system designer for
the HNS work with the ICO circuit system, specifically in the areas of component
connectivity, network management, and program management.

Mr. Thompson was the software engineering manager for the HNS Cellular Digital
Packet Data (CDPD) system, which provides connectionless IP-based data service
using the AMPs cellular infrastructure. He was the principal designer for the
HNS CDPD NASS, which provided authentication and accounting services for the
CDPD system.

He has been a principal designer and manager for the software of many of HNS'
mobile communications products, including the HNS SkyRider (Geostar-based)
remotes, Telesat MDS remotes, and Inmarsat Standard-C products.

Prior to moving to mobile communications engineering, Mr. Thompson was an
engineering manager in HNS' packet switch product line. In this capacity he
managed the development of enhancements for the HNS packet switch (X.25) system.
Mr. Thompson was the software engineering manager for the HNS Model 1020 120
Mbps TDMA terminal for the INTELSAT and EUTELSAT markets. In the early eighties,
Mr. Thompson was the designer and software engineering manager for the
electronic four-wire voice switch used in HNS' Inmarsat Standard-A Coast Earth
Station. Prior to this time Mr. Thompson was the software engineering manager
for a voice and data satellite communications system.

BACKGROUND

1973 TO 1977 CAPTAIN, U.S. ARMY RESEARCH AND DEVELOPMENT, COORDINATOR MOBILITY
             EQUIPMENT RESEARCH AND DEVELOPMENT CENTER, FORT BELVOIR, VA

While on active duty, Captain Thompson developed computer models for various
physical phenomena such as power line ground return currents and microwave
absorption. He was also a member of a team that developed a management
information system for the U.S. Army research and development system.

1972 to 1973 ST. JOHNS RIVER JUNIOR COLLEGE, PALATKA, FL

As Instructor of Data Processing Mr. Thompson developed and taught courses for a
2-year data processing program. Courses included Introduction to Data
Processing, Programming Languages, and Systems Design.

EDUCATION

MS, Physics, Minor Computer Science, University of Florida, 1972.
BS, Physics, University of Florida, 1969.

PUBLICATIONS

"Design Architecture for a High Performance INTELSAT TDMA/DSI Terminal"
(Coauthor), International Journal of Satellite Communications, Vol. 3, 77-83
(1985).

                                      10-3

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                                              PROPOSAL FOR ICO GPRS REQUIREMENTS
                                                               HNS-11181 (6/97P)

                              JOHN M. (JAY) HUSTED
                            ASSISTANT VICE-PRESIDENT
                          HUGHES NETWORK SYSTEMS, INC.

Mr. Husted has served as Assistant Vice-President at Hughes Network Systems,
Inc., since 1987. Mr. Husted is responsible for technology assessment and
business case analysis for various customer applications in satellite
communications networks, wireless mobile communications, and personal
communications services within the Business Development group. He participated
in the development of technical standards for emerging PCS networks and supports
the parent corporation, Hughes Electronics, in technology assessments associated
with potential new business ventures. He managed Satellite Systems Engineering
studies for DOD, NASA, and commercial customers.

Within the International Marketing group, Mr. Husted was responsible for the
preproposal customer contact and support for various projects in Asia, South
America, Europe, and the Middle East. This support included definition of
functional requirements, translation to network configuration and
specifications, and generation of budgetary estimates.

EXPERIENCE

1973-1987 Vice-President, M/A-COM Telecommunications Division, Germantown,
          Maryland (formerly Digital Communications Corporation)

As Vice-President, Satcom group, Mr. Husted was responsible for technical and
business performance of the programs and product lines of the group.
Technologies included satellite and terrestrial radio transmission, multiple
access techniques (TDMA and FDMA), video and voice processing, compression,
modulation, FAEC, signaling, switching, multiplexing, encryption, and TEMPEST
techniques.

Mr. Husted served as General Manager, Satcom division; General Manager,
Government Systems division; Assistant Director of Engineering; Manager,
Inmarsat programs; and Manager, Government programs at M/A-COM DCC.

1969-1973 Section Head, COMSAT Laboratories, Clarksburg, Maryland

As head of the Multiple Access Techniques section of the Communications
Processing laboratory, Mr. Husted was responsible for hardware development of
the TDMA-2 Satellite Communications terminal. He was principal contributor to
a study applying TDMA to DOD satellite networks and served as manager's
representative to INTELSAT TDMA working group, specifying the original prototype
TDMA system.

1966-1969 Senior Systems Engineer, NUS Corporation, Rockville, Maryland

Mr. Husted performed design review of a monitor and fault locating subsystem for
a digital sonar receiver (ANSQQ-23). He designed test equipment and supported
testing of models of an icebreaker-tanker ship that successfully transited the
Northwest Passage.

1962-1966 Digital Design Engineer, RCA Astro Electronics Division, Hightstown,
New Jersey

Mr. Husted developed a magnetic core memory test machine and a digital TV test
pattern generator. He was responsible for flight qualification of a 28-state
real time sequential controller for a satellite data collection, storage, and
playback system.

                                      10-4

<PAGE>   570
                                              PROPOSAL FOR ICO GPRS REQUIREMENTS
                                                               HNS-11181 (6/97P)

        -       Autotrack system design, simulation

        -       Satellite channel simulation for BER performance

        -       Analysis of problem areas in demodulators, and bit synchronizers

        -       Test data analysis, and setup of test cases

1972-1974 SINGER TELE-SIGNAL CORPORATION 1976-1977 TELE-SIGNAL CORPORATION,
SYOSSET, NEW YORK

As a Principal Engineer at Tele-Signal corporation and as a Design Engineer at
Singer Tele-Signal Corporation, Dr. Mehrotra wrote numerous proposals in the
areas of voice grade circuits, space and time division switching systems,
multiplexers, circuit quality monitors, etc. Specific design and developments he
conducted were:

        -       FDM SYSTEM: Channel interface, diagnostic and subscriber
                terminals design and specifications

        -       LINE CONDITIONING SYSTEMS: Designed and tested cost-effective
                single and dual frequency signaling systems

        -       MODEM/FILTERS: Designed 2400 bps modem including design and test
                of different active filters

        -       SWITCHING SYSTEMS: Designed and tested a special electronic
                switching machine (EPABX) to handle intercom and orderwire
                requirements of the U.S. Army

1975-1976 LITTON DATALOG, MELVILLE, NEW YORK

First as a consultant and subsequently as a design engineer, Dr. Mohrotra
modified the hardware of the Pressfax facsimile system. He also designed and
developed the Washfax facsimile systems.

1970-1972 ITT TERRYPHONE CORPORATION, HARRISBURG, PENNSYLVANIA

Dr. Mehrotra worked on applications of Intercom, electronic PBXs, and key
telephone systems.

EDUCATION

Ph.D. Electrical Engineering, Polytechnic Institute of NY, 1981
M.S.  Nova Scotia Technical College, Halifax, Canada, 1968
M.S.  Rooykee University, India, 1965
B.S.  Calcutta University, India, 1961

SOFTWARE AND LANGUAGES

FORTRAN, Basic, Pl-1, CRTM (Database management) Software running on PC and
Macintosh, System modeling on communication performance

OTHER ACTIVITIES

1982 - Present Adjunct Professorial Lecturer of Electrical Engineering, George
Washington University, Teach Graduate courses in Communication.

      Delivered GSM seminar with Lockheed Martin, November 29-30, 1995 (2 days)
      Delivered GSM seminar with BellSouth, 1995 (4 days)
      Delivered seminar to Plexsys International on AMPS, 1995
      Delivered Seminar on IS-54 to Cellnet (Israel), 1995

                                      10-7

<PAGE>   571
                                              PROPOSAL FOR ICO GPRS REQUIREMENTS
                                                               HNS-11181 (6/97P)

TECHNICAL MEMOS/REPORTS (UNCLASSIFIED):

1.      GSM System Engineering, published by Artech House, 1997.

2.      Cellular Radio: Analog and Digital Systems, published by Artech House,
        1994.

3.      Cellular Radio Performance Engineering, published by Artech House, 1994.

4.      IMSI/TMSI pairing strategy on GSM system, November, 1995.

5.      Estimates of disk space for Manassas log files, November, 1995.

6.      Required Characteristics of ARABSAT for database, June, 1993.

7.      Required Characteristics of INMARSAT for database, June, 1993.

8.      Required Characteristics of Cellular Systems for database, February,
        1993.

9.      Communication Signals Analysis for Tropospheric Systems, June, 1992.

10.     Communication Signals Analysis (High Capacity FDM/FM, High Capacity
        TDM/PCM) for Microwave Systems, June, 1992.

11.     Mobile Communication Systems (Cellular, Microcellular), July, 1991.

12.     Satellite System's Analysis - Comint Signals, November, 1990.

13.     Contention Analysis of the Washington Cellular System, February, 1989.

14.     Two Channel FACET Combiner with Equalizer, June, 1989.

15.     TASC, 18907, Research Summary Report, June, 1989.

16.     Progress Report on the Waveform Generation Capability of the HP8770
        System, February, 1988.

17.     A class of approximate solutions to phase distributions in Phase-Locked
        Loops, Ph.D. Dissertation, Polytechnic Institute of New York, 1982.

18.     ADE Performance Evaluation, 1981.

19.     OIWG Task No. 19-1-2-3 On Return Link Acquisition Time, January, 1981.

20.     Affects of Doppler on Forward link Phase Noise Simulation Mode, April,
        1981.

21.     OIWG Task No. 13-7 On Predetection Combining, April, 1981.

22.     Return Link Quarterly BER Margin to NASA, April, 1980.

23.     Spurious and Wideband Signal Contamination in Noise Sample Filter, July,
        1980.

24.     Definition of Measurement Tolerance and Arm Gain Variation - ADE System,
        July, 1980.

25.     Additional Degradation in SSAR Due to RFI Specifications, September,
        1980.

26.     Update of the Loop Test for BER Measurement, January, 1979.

27.     Pilot Loss Analysis, February, 1979.

28.     MA Interfering Source Simulation, September, 1979.

29.     Effects of User Linear Gain and Phase Distortion on BER Performance,
        October, 1979.

30.     BER Sensitivity with Respect to AM/AM and AM/PM, November, 1979.

31.     Our Evaluation of Software Approach for PN Acquisition, October, 1978.

32.     C. D. Parameters of a Twin Channel Double Ladder Network Constrained by
        an Operational Amplifier, IEEE Trans. Circuit Theory, August, 1970.

                                      10-8

<PAGE>   572
                                              PROPOSAL FOR ICO GPRS REQUIREMENTS
                                                               HNS-11181 (6/97P)

                              A. ROGER HAMMONS, JR.
                               PRINCIPAL ENGINEER

As Head of the Coding and Modulation research group, Dr. Hammons is responsible
for research and development of advanced communication systems. He is the
technical lead for the 1997 R&D project looking at coding and modulation for
second generation satellite data services, and is the responsible engineer for
modulation, estimation, and coding issues related to the base station design for
the ICO satellite telephony project. Dr. Hammons is also Manager of HNS
activities as part of Digital Wireless Battlefield Network (DWBN) project
sponsored by DARPA under its Technology Reinvestment Program.

Previously at HNS, Dr. Hammons was the technical lead on 1996 R&D projects
concerning forward error correction and multi-dimensional signaling on fading
satellite and mobile radio channels. He was the technical lead for 1995
simulation trade studies, algorithm development, and validation of PCS modem.

BACKGROUND

1981 - 1993 SR. STAFF ENGINEER, HUGHES AIRCRAFT COMPANY, MISSILE SYSTEMS

Dr. Hammons was responsible for design and development of advanced radar seekers
for missile applications, from conceptual design and performance simulation to
software design, coding, and integration to field test support.

ACADEMIC EXPERIENCE

1995-PRESENT INSTRUCTOR, THE JOHNS HOPKINS UNIVERSITY PART-TIME ENGINEERING
STUDY PROGRAM

Dr. Hammons is responsible for teaching the graduate-level course in Error
Control Coding.

1996-PRESENT SPECIAL MEMBER OF THE GRADUATE FACULTY, UNIVERSITY OF MARYLAND AT
COLLEGE PARK

Dr. Hammons is a member of doctoral committee for Mustafa Eroz.

1977-1980 TEACHING ASSISTANT, UCLA MATHEMATICS DEPARTMENT

Dr. Hammons was responsible for leading discussion sections of various
undergraduate probability theory and linear algebra classes.

EDUCATION

Ph.D. in Electrical Engineering, University of Southern California (Los Angeles,
California), 1992.

M.A. in Mathematics, University of California at Los Angeles(Los Angeles,
California), 1980

B.S. in Mathematics, (Highest honors and distinction in mathematics and the
humanities), Harvey Mudd College (Claremont, California) 1977

HONORS

IEEE Information Theory Society 1995 Best Paper Award.

Hughes Aircraft Company Ph.D. Fellow, USC, 9/88-12/92.

S&H Foundation Scholar, Harvey Mudd College, 9/73-6/77.

                                      10-9

<PAGE>   573
                                              PROPOSAL FOR ICO GPRS REQUIREMENTS
                                                               HNS-11181 (6/97P)

PUBLICATIONS

A. R. Hammons, Jr., "On Four-Phase Sequences with Low Correlation and their
Relation to Kerdock and Preparata Codes," Ph.D. Dissertation, University of
Southern California, November 1992.

S. Boztas, A. R. Hammons, Jr., and P. V. Kumar, "4-phase Sequences with Low
Correlation Properties," IEEE Transactions on Information Theory, vol. 38,
no. 3, May 1992, pp. 1101-1113.

A. R. Hammons, Jr. and P. V. Kumar, "On the Apparent Duality of the Kerdock and
Preparata Codes," Proceedings of the IEEE 1993 International Conference on
Information Theory, San Antonio, Texas, January 1993.

A. R. Calderbank, A. R. Hammons, Jr., P. V. Kumar, N. J. A. Sloane, and P. Sole,
"A Linear Construction for Certain Kerdock and Preparata Codes," Bulletin of the
American Mathematical Society, 1993.

A. R. Hammons, Jr. and P. V. Kumar, "On a Recent 4-Phase Sequence Design for
CDMA," Invited Paper for Special Issue on Spread Spectrum Techniques and
Applications, IEICE Transactions on Communications, Vol. E76-B, No. 8, August
1993, pp. 1-10.

A. R. Hammons, Jr., P. V. Kumar, A. R. Calderbank, N. J. A. Sloane, and P. Sole,
"The Z4-Linearity of Kerdock, 'Preparata', Nordstrom-Robinson, Goethals, and
Related Codes," IEEE Transactions on Information Theory, March 1994, pp.
301-319. IEEE IT 1995 BEST PAPER.

P. V. Kumar, T. Helleseth, A. R. Calderbank, and A. R. Hammons, Jr., "Large
Sequence Families for CDMA," IEEE Transactions on Information Theory, 1996.

K. Swaminathan and A. R. Hammons, Jr., "The Use of 16 kbps G.728 Standard in
PACS Environment," 1995 IEEE Speech Coding Workshop.

K. Swaminathan, A. R. Hammons, Jr., and M. Austin, "Selective Error Protection
of ITU-T G.729 Codec for Digital Cellular Channels," ICASSP 1996.

A. R. Hammons, Jr., "CRC-Based Synchronization Techniques for Low Overhead TDMA
PCS," IEEE 1996 Vehicular Technology Conference.

M. Eroz and A. R. Hammons, Jr., "Performance of Turbo Codes for Satellite Data
over Rician Channels," submitted to IEEE 1997 International Conference on
Information Theory.

                                     10-10

<PAGE>   574
                                              PROPOSAL FOR ICO GPRS REQUIREMENTS
                                                               HNS-11181 (6/97P)

                                 YEZDI F. ANTIA
                               PRINCIPAL ENGINEER
                           ADVANCED DEVELOPMENT GROUP

Mr. Antia has been involved with analysis, simulations, firmware design,
hardware design and ASIC design pertaining to various DSP based modem and
physical layer implementation for various programs.

Mr. Antia was responsible for the development of the algorithm and simulation of
the physical layer channels for the ICO Mobile Satellite systems, including the
development of modem and channel coding for all the Satellite Base Station and
User Terminal Simulator channels. He was also responsible for the development
and simulation of the physical layer channel for the Geo-Mobile Satellite
System, including the analysis, design and simulation of modem and channel
coding for the Gateway Base Station channels.

Mr. Antia developed nonlinear block codes with reduced complexity and optimum
performance over fading channels, and is in the process of filing for patents.
He also designed and simulated the HDL verilog and synthesized to an FPGA, the
Wireless Access Communications System (WACS) Radio Port modem, which was later
used by the PACS radio port.

Previously at HNS, Mr. Antia was involved with the IS-136 Digital Cellular
System, Fixed Cellular System and CDPD System development for the Base Station
Equipment. He was responsible for all firmware development for the modem and
channel coding for the IS-136, Fixed Cellular and CDPD Base Station, performed
simulation of all the modems and channel coding related to the above systems,
and simulated and implemented a smart antenna (4-Antenna Diversity) demod.

He was responsible for the firmware development and simulation of the modem and
channel coding for the Inmarsat Standard-C System, earth station. He designed
the test hardware and firmware for the first DSP-based Viterbi Decoder within
the company and worked on the DSP-based modem firmware for the FEDEX System.

EDUCATION

MSEE Virginia Polytechnic and State University, Blacksburg, VA., 1985.

BSEE Walchand College of Engineering, Sangli, India, 1982.

PATENTS AND PUBLICATIONS

1.      U.S. Patent 5,390,215. Y. Antia, et al, "Multi-Processor Demodulator for
        Digital Cellular Base Station Employing Partitioned Demodulation
        Procedure with Pipelined Execution."
2.      U.S. Patent, I. Kim, Y. Antia, B. Fair, "Fixed Point GMSK Modulator
        Generating Samples at Non-Integer at the CDPD Sampling Rate."
3.      U.S. Patent, Y. Antia, "Faster Linear Block Decoding Apparatus and
        Method for Receivers in Digital Communication and Other Systems."
4.      U.S. Patent pending, Y. Antia, "Method and Apparatus for p/4
        Differential Quadrature Phase Shift Modulation."
5.      Y. Antia, "Partitioning and Pipelining of Complex Algorithms for
        Implementation on Multi-DSP Platforms," conducted a workshop at the DSP
        World Spring Design Conference, March 1997.

                                     10-11

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                                              PROPOSAL FOR ICO GPRS REQUIREMENTS
                                                               HNS-11181 (6/97P)

                               MURARI SRINIVASAN
                           MEMBER OF TECHNICAL STAFF

Murari Srinivasan has recently joined HNS and is a Ph.D. candidate in Electrical
Engineering. His experience is in the area of joint source and channel coding.
He has worked on subband video coding for packet networks, and he has a varied
experience with various signal processing algorithms.

BACKGROUND.

JULY 1995-PRESENT  GRADUATE RESEARCH ASSISTANT, CENTER FOR AUTOMATION RESEARCH,
                   UNIVERSITY OF MARYLAND

-       Research involves joint source-channel coding approaches for
        transmitting digital video over fading channels; investigating network
        issues for the reliable transport of compressed video over packet
        networks; and the effects of network resource allocation, policing
        mechanisms, fading channels and packet loss on the reconstructed video
        quality.

-       SUBBAND VIDEO CODING FOR PACKET NETWORKS: Investigating coding
        strategies that adapt to congestion in ATM networks.

-       IMAGE COMPRESSION AND PROCESSING: Developed and implemented an image
        compression algorithm based on the DCT.

-       ADAPTIVE EQUALIZATION: An adaptive equalization scheme was implemented
        using a fast RLS algorithm based on the QRD-RLS method.

-       MULTIPRIORITY SERVICE SCHEME FOR MPEG VIDEO TRANSMISSION OVER ATM
        NETWORKS: An ATM switch that statistically multiplexed several variable
        bit-rate video streams (MPEG coded) through a finite buffer was
        simulated. This reduced packet loss while using the same resources as
        used by a single-priority service scheme. It was demonstrated that
        self-similar models (recently popular in the literature) can describe a
        subset of an MPEG coded bitstream, but not the entire bitstream.

-       SPEECH PROCESSING: Developed and implemented a robust algorithm to
        estimate human vocal chord pole positions from noisy speech samples
        using group delay functions.

-       NEURAL NETWORKS: Designed a modified Gaussian radial basis function
        network (HyperBF network) using results from regularization theory and
        used it to perform gender recognition based on multidimensional facial
        features.

-       SPECTRAL ESTIMATION: The MUSIC algorithm was modified to detect
        two-dimensional sinusoids, and the resolving power of this method was
        studied through simulations. The minimum-norm estimator was similarly
        modified and studied.

-       ADAPTIVE FILTERING: Convergence of the LMS algorithm was studied and its
        dependence on the statistical properties of the input data were
        demonstrated. These results were contrasted with the convergence
        properties of the RLS algorithm.

-       ARRAY SIGNAL PROCESSING: An Adaptive MVDR beamformer was simulated using
        the QRD-RLS algorithm implemented on a systolic array. The resolving
        power of the algorithm as well as convergence issues were studied.

                                     10-12

<PAGE>   576
JUNE 96-SEPT. 96 INTERNSHIP, MULTIMEDIA COMMUNICATIONS LABORATORY, BELL
                 LABORATORIES, LUCENT TECHNOLOGIES

Mr. Srinivasan worked on the development of a robust low bit-rate video coding
scheme for wireless channels. The video coding scheme was based on the H.263
standard. This coding scheme was interfaced with a adaptive hybrid ARQ/FEC
scheme to provide robust delivery of video over fading wireless channels.

EDUCATION

Ph.D (Candidate), Electrical Engineering, University of Maryland, College Park,
1996-

M.S., Electrical Engineering, University of Maryland, College Park, 1993-95

Bachelor of Technology, Electronics and Communication Engineering, Indian
Institute of Technology, Madras, India, 1989-93

PUBLICATIONS

1.      "Joint Source Channel Subband Coding of Images," Murari Srinivasan and
        Rama Chellappa, to appear in Proceedings of the IEEE International
        Conference on Acoustics, Speech and Signal Processing, May 1997.

2.      "Adaptive Source-Channel Subband Video Coding for Wireless Channels,"
        Murari Srinivasan, Philippe Burlina and Rama Chellappa, submitted to
        IEEE Multimedia Signal Processing Workshop, Princeton, April 1997.

3.      "Iterative Least Squares approach to the Mixture Modeling Problem,"
        Murari Srinivasan and Ruth DeFries, Proceedings of the IEEE
        International Conference on Acoustics, Speech and Signal Processing,
        Detroit, May 1995.

                                     10-13

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                                              PROPOSAL FOR ICO GPRS REQUIREMENTS
                                                               HNS-11181 (6/97P)

                                 VICTOR S. LIAU
                        SENIOR MEMBER OF TECHNICAL STAFF
                           ADVANCED DEVELOPMENT GROUP

Victor Liau has been responsible for implementing the Wireless Access
Communication Systems (WACS) and the Personal Access Communication Systems
(PACS) in the Personal Communication Services (PCS) frequency band as a separate
program from within the Wireless Network Division. From establishing the product
definition for the radio ports and the subscriber units to specifying their
system topology, to creating the modem ASIC, to certifying the products with the
various governmental agencies, Mr. Liau has been the lead designer and program
administrator to exploit the potential in the PCS microcellular technology at
HNS.

Originally as a sole designer of the WACS system in 1993, Mr. Liau wrote the
product specifications and the system architecture for the radio ports and the
subscriber units. As part of the conceptual demonstrations, Mr. Liau interacted
regularly with numerous customers who provided further feature definitions.
Incorporating the customer's requirements and conforming to related Bellcore
standards, he worked on the detailed baseband designs to create one of the first
WACS Radio Port (RP) and Subscriber Unit (SU) prototypes. Through the use of the
Cadence Verilog-XL simulator and the Synopsys FPGA compiler, he designed and
implemented the various payload formatting and the channel coding in the Xilinx
Field Programmable Gate Arrays (FPGAs). With the combined functionality of the
RP and the SU, the baseband board design involved the use of the TI DSP to
perform the voice coding, such as ADPCM, as well as the microcontrolling
functions; the Subscriber Line Interface Circuit (SLIC) to provide an RJ-11
interface to the user; the TI Line Interface Unit (LIU) and framer for the
backhaul to the switch; and various interfaces to the RF synthesizers and the
power amplifier.

As the standards matured from WACS to PACS, Mr. Liau led and managed a team of
designers to bring the overall RP prototype into a product. In the newer design,
he incorporated low-voltage devices, High-bit-rate Digital Subscriber Line
(HDSL) physical interface, and powering over the communication lines. The
reduction of the p/4-DQPSK modem, the channel coder, and the payload formatter
from the FPGAs into an ASIC was among his major accomplishments, coordinating
the modem simulation, hardware emulation, and the final verification of the
chip. Furthermore, Mr. Liau weighed trade-offs with the power supply, the RF,
the thermal, and the mechanical issues to ensure the product certification from
the UL and the FCC agencies. He also provided the system support to proposals,
installation guides, and reliability predictions. He has also been involved in
the demonstrations of the PACS GMH-2000-P product at the PCS and the CTIA
exhibitions.

BACKGROUND

1990 - 1993 MASSACHUSETTS INSTITUTE OF TECHNOLOGY, CAMBRIDGE, MA

Mr. Liau developed software and helped to teach the Introductory Digital Design
Laboratory, the Structure and Interpretation of Computer Programs, the
Microprocessor Project Laboratory, and the Introduction to VLSI courses. He
coordinated classes as the Head Teaching Assistant, writing recitation notes,
labs, and other administrative documents.

1988 - 1990 RAYTHEON COMPANY RESEARCH DIVISION, LEXINGTON, MA

Mr. Liau theoretically modeled a microstrip line as a magnetically tunable
band-stop filter for use in MMICs. He designed and characterized the devices for
operations in the X- and Ku-band, while he designed, built, and tested broadband
dual circulators. Furthermore, he simulated the behavior of circuits on ferrite
substrates using Super-Compact and constructed test fixtures to verify the
results on a network analyzer.

                                     10-14

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                                              PROPOSAL FOR ICO GPRS REQUIREMENTS
                                                               HNS-11181 (6/97P)

EDUCATION

EE Massachusetts Institute of Technology, Cambridge, MA, 1993

MS, BS Massachusetts Institute of Technology, Cambridge, MA, 1990

PROFESSIONAL CREDITS

Associate member of Sigma Xi. Received Frederick C. Hennie, III Teaching Award.

PUBLICATIONS AND PRESENTATIONS

"Magnetically Tunable Band-stop Filter Utilizing Iron Thin-film and GaAs
Technology," IEEE Microwave Technique and Theory Symposium, June 1991.

                                     10-15

<PAGE>   579
                                              PROPOSAL FOR ICO GPRS REQUIREMENTS
                                                               HNS-11181 (6/97P)

                                DR. RAJEEV GOPAL
                               TECHNICAL DIRECTOR

Dr. Gopal has been involved in the specification and analysis of the various
network management systems for the ICO network since 1995. He also led the
development of several related requirements and high-level design documents. Dr.
Gopal is the architect of a common standards-based network management framework
that is being used in several HNS products including the SBS OMC for ICO.

Dr. Gopal has worked in direct software development activities in the area of
network management for the HNS product lines, the main theme of which is the
development of a common reusable software architecture and associated
applications that can be used in multiple products. This involves
identification, refinement, productization, and deployment of key technologies
in the areas of object-oriented architectures, SNMP, CMIP, Unix/C++, CORBA,
object-oriented databases, HTML/Java, visualization, and artificial
intelligence. He directed the introduction of web-related technologies for HNS
internal and external use and their incorporation into HNS products.

BACKGROUND

1989 - 1992 PROGRAM DIRECTOR CAPITAL TECHNOLOGY INFORMATION SERVICES, INC.,
ROCKVILLE, MD

As Deputy Project Director for the Clinical Trials Evaluations Program computing
project of the National Cancer Institute, Dr. Gopal's responsibilities included
architectural design, management of professional staff, technical operations,
and liaison with project officers for automated drug distribution, protocol
management, and adverse reactions systems. He was the project leader for the
Biological Data Processing System and Senior Analyst for the AIDS screening
database contract from the NCI. He performed requirements analysis,
architectural design, and high-level program designs for large-scale databases
with technologies involving relational DBMS, C, C++, SQL, Unix, VMS, Open
VMS, LAN, and MAN networking.

1986 - 1987 DEPARTMENT MANAGER, VSE CORPORATION, ALEXANDRIA, VA

Dr. Gopal led the development of a comprehensive computer system with Unix/C and
Unify relational DBMS for cancer and anti-HIV drug screening programs for the
National Cancer Institute. He utilized mainframe and microcomputer systems,
workstations, laser-printer graphics, networking, data communication, online
data collection, barcode and robotics technologies.

EDUCATION

Ph.D. Computer Science, Vanderbilt University, 1989
M.Sc. Physics, Birla Institute of Tech. and Science, 1983
B.E. Electrical and Electronics Engineering, 1983

RECENT PUBLICATIONS

"Remote Access to Network Management with an Internet Web Browser," Network
Management Forum Bulletin, Fall 1996.

"Leveraging Network Management Standards for Satellite Networks," in Proceedings
of the Workshop on Satellite Based Information Systems, Rye, New York, November
1996.

"Using Automatic Decomposition Schemes in Software Maintenance Tools," in
Software Reengineering, Edited by Robert Arnold, IEEE Computer Society Press,
1993.

                                     10-16

<PAGE>   580
                                              PROPOSAL FOR ICO GPRS REQUIREMENTS
                                                               HNS-11181 (6/97P)

"Application of Automatic Decomposition Schemes in Proof Maintenance for
Evolving Programs," in Journal of Software Maintenance, 1992.

"Supporting System Maintenance with Automatic Decomposition Schemes," in
Proceedings of the Hawaii International Conference on System Sciences - 25,
Hawaii, January, 1992.

"Dynamic Program Slicing Based on Dependence Relations," in Proceedings of the
International Conference on Software Maintenance - 1989, Sorrento, Italy,
October, 1991.

                                     10-17

<PAGE>   581
                                              PROPOSAL FOR ICO GPRS REQUIREMENTS
                                                               HNS-11181 (6/97P)

                                   SPYRO GUMAS

                          SENIOR MEMBER TECHNICAL STAFF
                           SATELLITE NETWORK DIVISION

Spyro Gumas has been a member of the Satellite Network Division at HNS since
November 1994. Since December 1995 he has been leading the baseband electronics
development for the mobile satellite product, most recently for the ICO mobile
satellite system. His responsibilities include architecting the necessary
modifications to the channel manager, transmit ASIC, channel unit and clock
distribution unit, as well as contributing to the system engineering efforts for
the SBS and managing the baseband engineering design team.

Prior to the mobile satellite work, Mr. Gumas worked on debugging of the
Personal Earth Station DTM, design modifications for the CP 9000 LANSCAPE
Module, Processor Module and LAN Interface Module, and on a study for a spread
spectrum return channel concept.

BACKGROUND

1989 - 1994 HUGHES AIRCRAFT ELECTRO-OPTICAL AND DATA SYSTEMS GROUP, EL SEGUNDO,
CALIFORNIA

As a Senior Member Technical Staff, Mr. Gumas was responsible for the
development of a flight unit IR Digital Signal Processor for the Brilliant Eyes
(BE) program. The design was comprised of five custom RAD-Hard VLSI designs. Mr.
Gumas was intimately involved in the development of the signal processing
algorithms. He architected the algorithms hardware implementation, simulated the
algorithms in software, and then led the development team for the flight unit,
the test station, and the test software.

Mr. Gumas was responsible for the development of a flight unit Target Processor
for the Ground based Surveillance and Tracking System (GSTS) program. This
design was a programmable six CPU parallel/pipelined architecture comprising
custom card designs and off-the-shelf processor cards. Mr. Gumas lead the
development team for the flight unit design, test station design, and
integration and test.

As a Staff Engineer, Mr. Gumas was responsible for the development of a
Brassboard IR Digital Signal Processor for the Space borne Surveillance and
Tracking System (SSTS) program. Mr. Gumas participated in algorithm development,
implemented algorithms in hardware design, and wrote a simulator for the
algorithms in C.

1983 - 1988 HUGHES AIRCRAFT GROUND SYSTEMS GROUP, FULLERTON, CALIFORNIA

As a Staff Engineer, Mr. Gumas lead a development effort on a VME-based 3D
graphics accelerator board set for use in Surface Ship and Air Traffic Control
consoles. He was responsible for algorithm development, system architecture, and
design lead.

As a Member Technical Staff, Mr. Gumas was responsible for the development of
several graphics related hardware designs including a 20 MFLOP Graphics
Processor, a Viewport Gate Array, an Area Fill Engine, and an Anti-Aliasing
Vector/Conic Generator. In addition to the hardware development, Mr. Gumas was
lead programmer for the Graphics Processor C library.

SUMMER 1982 ELECTRICAL ENGINEER, GENERAL DYNAMICS, FORT WORTH, TEXAS

SUMMER 1981 ENGINEERING TECHNICIAN, BELL & HOWELL, CHICAGO, ILLINOIS

                                     10-18

<PAGE>   582
                                              PROPOSAL FOR ICO GPRS REQUIREMENTS
                                                               HNS-11181 (6/97P)

EDUCATION

MSEE Georgia Institute of Technology, 1983

BSEE Georgia Institute of Technology, 1982

PROFESSIONAL CREDITS

Member Tau Beta Pi, Eta Kappa Nu.

PUBLICATIONS AND PRESENTATIONS

"Tricks of the Graphics Gurus," Oliver, Anderson, McCord, Gumas & Zigon, SAMS
publishing, 1993.

"PC Graphics Unleashed," Oliver, et. al., SAMS publishing, 1994.

                                     10-19

<PAGE>   583
                                              PROPOSAL FOR ICO GPRS REQUIREMENTS
                                                               HNS-11181 (6/97P)

                                    JOHN FRY

                                TECHNICAL MANAGER
                           SOFTWARE ENGINEERING GROUP

Mr. Fry is technically responsible for providing administrative and technical
leadership for engineering teams developing satellite mobile communication
systems. He is experienced in the development of real-time, cellular, mobile,
VSAT, positioning and paging systems communication systems. He is currently
involved in systems analysis, modeling, and simulation for the ICO mobile
satellite communications system. He is also responsible for performing
requirement analysis and requirement tracing for the project.

Prior to providing technical support for the ICO mobile satellite system, Mr.
Fry was administratively responsible for developing and enhancing the ISBN VSAT
product. He was administratively and technically responsible for the File
Broadcast (FBC) product. This product provides file broadcast capabilities from
a central location to several remote locations using the VSAT network.

BACKGROUND

1994 COMSAT RSI, CLARKSBURG, MD

As Senior Manager, Mr. Fry was responsible for marketing, sales, proposals,
statements of work, cost accounting, labor estimates, supervising, scheduling,
planning, and managing the Software Engineering Department. Projects included:

-       Managing the Plexsys D200 to D1000 conversion. This system provides
        cellular radio telephone communications between subscribers and
        terrestrial networks and is compatible with the FCC part 22 rules and
        EIA/TIA 553 specifications.

-       Managing the CTS/Gilat TRC-2000 RSC development. This system provides
        subscriber or terrestrial trunk interconnections upon demand between
        telephone exchanges and subscriber equipment via satellite using an
        F/TDMA access scheme.

1991-1994 COMSAT TECHNOLOGY SERVICES, CLARKSBURG, MD

As Senior Manager of Maritime A and C services, Mr. Fry was responsible for
motivating, recognizing, delegating, supervising, scheduling, planning and
coordinating the software engineering section. He prepared proposals, labor and
cost estimates, status reports, and technical descriptions, and controlled and
managed several cost accounts. He reviewed software design, documentation, and
testing.

Mr Fry managed the software effort for Thailand's Inmarsat M/B Land Earth
Station (LES). This system provides real-time mobile voice and data
communications to terrestrial networks.

He completed Inmarsat Standard-A NCS system ahead of schedule and cost. This
system is Inmarsat's first and only system to be accepted ahead of schedule.
This system provides real-time maritime voice and data communications to
terrestrial networks. He planned yearly budgets and schedules and supervised and
evaluated work groups. He interfaced directly with customers and provided onsite
assistance.

                                     10-20

<PAGE>   584
                                              PROPOSAL FOR ICO GPRS REQUIREMENTS
                                                               HNS-11181 (6/97P)

1990-1991 COMSAT SYSTEMS DIVISION, CLARKSBURG, MD

As Senior Engineer, Mr. Fry was technically responsible for software engineering
teams, which designed and implemented monitor and control software for baseband
and computer equipment for communication systems.

He served as Lead Software Engineer of a software team and was responsible for
the Monitor and Control subsystem of the Inmarsat Standard-C system. He designed
and developed redundancy software between dual computers and received a
commendation from upper management for exceptional performance.

1982-1990 COMSAT LABORATORIES, CLARKSBURG, MD

As a Software Engineer, Mr. Fry was a member of several software engineering
teams, which developed several satellite communication systems for TDMA, monitor
and control, mobile, VSAT, and message store and forward systems. He developed
real-time applications, man/machine interfaces, and monitor and control
software, prepared documentation and test plans, and resolved problems to the
satisfaction of customers. He was responsible for the man-machine interface of
the Geostar VSAT network

1980-1982 COMPUTER SCIENCES CORPORATION, SILVER SPRING, MD

Mr. Fry designed, developed, and tested scientific computer programs for Goddard
Space Flight Center. As Lead Engineer for automated orbit determination
simulator, he developed ground simulator, man-machine interfaces, and database
management systems.

EDUCATION

        M.S., Computer Science. Johns Hopkins University, 1989

        B.S., Math and Computer Science, University of Pittsburgh at Johnstown,
        1980

                                     10-21

<PAGE>   585
                                              PROPOSAL FOR ICO GPRS REQUIREMENTS
                                                               HNS-11181 (6/97P)

                                  DR. T. DAN LI
                                SOFTWARE ENGINEER

Dr. Li's work has been developing next generation network management on UNIX
platform and has included design and development of the manager subsystem, as
well as design and implementation of low level classes for operating system and
communication.

In addition, he has worked in the development for file broadcast applications on
PES including enhanced transmission protocol for large file and large community
of Comm-Servers, automated product release with simultaneous installation using
file broadcast, and development of window NT device driver using TDI and NDIS
interfaces.

BACKGROUND

SUMMERS OF BELLCORE, MORRISTOWN, NEW JERSEY
1993 & 1994

Dr. Li was a member of the Technical Support Staff at Bellcore where he was
involved in software research and development for the Touring Machine Project.
He designed and developed the fault manager, and developed the communication
manager using C++, Berkeley Socket.

1991 - 1995 PURDUE UNIVERSITY, COMPUTER SCIENCES DEPARTMENT, W. LAFAYETTE,
INDIANA

As Research Assistant, Dr. Li implemented ARP, IP, UDP, ICMP, and RIP for a
router project led by Dr. Doug Comer. He implemented a file system for XINU
operating system, and implemented a software tool named TAMER for robustness
benchmarking of distributed systems.

EDUCATION

Ph.D. Computer Sciences, Purdue University, 1995

MS Computer Sciences, Purdue University, 1991

MS Mathematics, Purdue University, 1989

BS Mathematics and Computer Sciences, National Taiwan University

PUBLICATIONS

"A Methodology for Software Fault Insertion Testing and its Application to
Telecommunication Systems," co-authored by Chi-Ming Chen, Bob Horgan, Ming Lai,
and Steve Wang, May 1994 in IEEE International Communications Conference, pp
1767-1771.

"A 2-D Scheme to Evaluate the Adequacy of Fault Tolerance Testing," co-authored
by Richard DeMillo and Aditya Mathur, The Third International Workshop of IEEE
on Integrating Error Models with Fault Injection, pp 5456.

"Architecture of TAMER: A Tool for Dependability Analysis for Distributed
Fault-Tolerant Systems," co-authored by Richard DeMillo and Aditya Mathur.
Submitted for 1994 COMPSAC.

"Improving the Fault Tolerance of a Multimedia System," co-authored by Richard
DeMillo, Aditya Mathur, Bob Horgan and Michael Lyu. Prepared for submittal to
1995 Fault-Tolerant Computing Symposium.

                                     10-22

<PAGE>   586
                                              PROPOSAL FOR ICO GPRS REQUIREMENTS
                                                               HNS-11181 (6/97P)

                             GANESHAN RAMACHANDRAN
                             MEMBER TECHNICAL STAFF

Mr. Ramachandran is a member of the ICO team and as such is involved in review
of Air Interface Technical Specifications. ICO 03.22.A1, ICO 04.08.A2, and ICO
04.08.A3. He has been involved in preparation of ICO GPRS proposals, which
included study of LAPG Interworking function at SBS, mobility management issues
related to SGSN selection, and development of operational scenarios for ICO GPRS
Air-Interface procedures. He was also involved in the preparation of ICO SBS
Design document and ICD for A' interface.

BACKGROUND

1996 MOTOROLA, FORT WORTH, TEXAS

During his assignment with Motorola - Paging Division, Mr. Ramachandran was
involved in design and implementation of "Roaming Features" to the existing MPS
2000 paging switches. This involved interworking paging switches with TCP/IP and
X.25 networks. He was also involved in development of test plans for testing new
features.

1993 - 1995 CENTER FOR DEVELOPMENT OF TELEMATICS, BANGALORE, INDIA

As a Research Engineer, Mr. Ramachandran was involved in design and development
VSAT networks. He was involved in design and implementation of various data
communication protocols, which included X.25, LAPB and proprietary Transport
Layer protocols for the VSAT user terminals. He was also involved in developing
protocols for interworking VSAT networks with other X.25 and TCP/IP-based PSPDN,
as well as commissioning and field testing of VSAT user terminals and PSPDN
interworking units.

1992 -1993 NATIONAL AERONAUTICAL LABORATORIES, BANGALORE, INDIA

As a Hardware Engineer, Mr. Ramachandran was responsible for assembly, testing,
and commissioning of Intelligent Mechanical Test controllers for the Aircraft
Fatigue Testing Laboratory.

EDUCATION

BS Computer Science and Engineering, Bangalore University, India, 1992.

PROFESSIONAL Memberships

IEEE

                                     10-23

<PAGE>   587
                               CHANGE ORDER NO. 1

                                  ATTACHMENT 2

                             DISCLOSABLE INFORMATION

<PAGE>   588
                                              PROPOSAL FOR ICO GPRS REQUIREMENTS
                                                               HNS-11181 (6/97P)

                         (CONTINUED FROM PREVIOUS PAGE)

<TABLE>
<CAPTION>
Item                                                                            During Week of
----                                                                            --------------
<S>                                                                             <C>
First Draft of Specific ICO GPRS Requirements Specification                     01 Sept 1997
First Draft ICO GPRS Functional Requirements (GSM 02.60-based)                  01 Sept 1997
Draft of Terms and Conditions for the ICO GPRS Main Supply Contract              3 Nov 1997
First Draft of Statement of Work for the ICO GPRS Main Supply Contract          01 Sept 1997
Draft Specific Inputs to Market Plan and Business Case for ICO GPRS             01 Sept 1997
Interim Review at HNS                                                           08 Sept 1997
Air Interface Changes Notices Approved by ICO (Lower Levels)                    15 Sept 1997
Air Interface Changes Notices Approved by ICO (Network Levels)                  15 Sept 1997
Freezing of Common Air Interface by ICO                                         15 Sept 1997
Final Specific ICO GPRS Requirements Specification                              06 Oct 1997
Final ICO GPRS Functional Requirements (GSM 02.60-based)                        06 Oct 1997
Final Statement of Work for the ICO GPRS Main Supply Contract                   06 Oct 1997
Final Specific Inputs to Market Plan and Business Case for ICO GPRS             06 Oct 1997
Final Review at HNS                                                             13 Oct 1997
</TABLE>

                                      9-2

<PAGE>   589
                                              PROPOSAL FOR ICO GPRS REQUIREMENTS
                                                               HNS-11181 (6/97P)

                               SCHEDULE SCENARIO 2

                        [DIAGRAM OF SCHEDULE SCENARIO 2]

             Figure 9-1. Applicable Schedule for a 1 July 1997 Start

<PAGE>   590
      TABLE 2. SPECIFIC ICO GPRS REQUIREMENTS SPECIFICATION OUTLINE (CONT.)

                      10.1.3.1 Asymmetric Interface

                      10.1.3.2 Simultaneous Transmit and Receive Using Diplexers

                      10.1.3.2 Protocols

               10.1.4 Integrated Test Feature Requirements

               10.1.5 Schedule Requirements

               10.1.6 Target Price requirement

        10.2 UDT Commercial Terminal (May be disclosed)

               10.2.1 Terminal Types

               10.2.2 User Interface and protocols

               10.2.3 User features

               10.2.4 Physical Requirements

               10.2.5 Schedule Requirements

               10.2.6 Target Price requirement

11.0 Network Management System Requirements

The generic requirements of the standard network management model may be
disclosed. The specific statistics, alarms, and reports generated by the HNS SBS
and the Ericsson GPRS Switching equipment may not be disclosed.

        11.1 SAN OSS

        1l.2 Network Management Center

12.0 Satellite Resource Management Center Requirements (May be disclosed)

        12.1 Power Management

        12.2 Frequency and Timeslot Management

13.0 DCN Requirements (May be disclosed)

        13.1 Interface

        13.2 Capacity

14.0 Performance Requirements

End to End performance requirements may be disclosed.

Performance Requirements of the SBS, SGSN, and GGSN as generic blocks defined in
Section 3. above may also be disclosed. Details in individual pieces of HNS or
Ericsson equipment may not be disclosed.

        14.1 Air Interface

        14.2 SBS Delay Requirements

        14.3 GPRS Infrastructure Requirements

               14.3.1 QoS Support

               14.4.3 Delay

15.0 ICO GPRS Capacity Requirements

End to end capacity requirements may be disclosed.

Capacity requirements of the SBS, SGSN, and GGSN as generic blocks defined in
Section 3.

Above may also be disclosed. Details in individual pieces of HNS or Ericsson
equipment may not be disclosed.

16.0 Gb prime interface.

The generic requirements of the Gb prime interface can be disclosed. These
generic requirements are as follows:

1.      The Gb Prime interface is based on ETSI GPRS Specifications

2.      The Gb interface as defined in the ETSI GPRS Specifications will be
        modified to support the following functions:

        a)      Paging in the ICO Satellite Constellation

        b)      Multi-San Paging/Paging Escalation

        c)      Service Area Dependent Services

        d)      Optimization of the Inter-SGSN communications links for
                handover.

<PAGE>   591
                        TABLE 3 STATEMENT OF WORK OUTLINE

1.0 Introduction (May be disclosed)

2.0 Statement of Work Contents (May be disclosed)

3.0 Applicable Documents(Ericsson/HNS design documents that may be referenced
may not be disclosed).

4.0 Scope of Work (May be disclosed)

5.0 Contractor Deliverables to ICO (Ma not be disclosed)

6.0 ICO Deliverables to Contractor (May be disclosed)

7.0 Installation Site Conditions (May be disclosed)

8.0 Program Management and Implementation (May not be disclosed)

9.0 Training (May be disclosed)

10.0 Documentation (May be disclosed)

11.0 Site Working Arrangement (May be disclosed)

12.0 ICO GPRS Test Plans (May be disclosed)

13.0 End-to-End Data Transfer Demonstration (May be disclosed)

14.0 ICO GPRS Integration (May be disclosed)

15.0 ICO GPRS Acceptance Criteria (May be disclosed)

16.0 ICO GPRS System Support (May be disclosed)

17.0 Options (May not be disclosed)

        17.1 ICO GPRS Air Interface Validation

        17.2 ICO GPRS Channel Manager Loopback Load Tester

        17.3 ICO GPRS UT Simulator

        17.4 ICO GPRS System Simulator

Annex 1 Contractor Deliverables (May Not be disclosed)

Annex 2 ICO Services and Equipment (Details about HNS/Ericsson equipment may
not be disclosed)

Annex 3 Installation Site Conditions (May be disclosed)

Annex 4 Program Management, Implementation, and Schedules (May not be disclosed)

Annex 5 Training (May be disclosed)

Annex 6 Documentation (May be disclosed)

Annex 7 Site Working Arrangements (May be disclosed)

Annex 8 A ICO GPRS Test Plan (May be disclosed)

Annex 8 B ICO GPRS End-to-End Data Transfer Demonstration (May be disclosed)

Annex 9 ICO GPRS Integration (May be disclosed)

Annex 10 ICO GPRS Acceptance Criteria (May be disclosed)

Annex 11 ICO GPRS Air Interface Signaling Protocol Validation (Option) May not
be disclosed

Annex 12 Channel Manager Loopback Load Tester (Option) May not be disclosed

Annex 13 ICO GPRS UT Simulator (Option) May not be disclosed

Annex 14 ICO GPRS System Simulator (Option) (May not be disclosed)

                               BACKGROUND MATERIAL

All background material developed either by ICO or the NEC consortium prior to
or during the ICO GPRS Requirements Specification Development Contract shall
remain the exclusive property of the originating party and may not be disclosed
to any third parties without the permission of the originator. In addition none
of the NEC consortium presentation material provided at the kickoff, Interim,
and final reviews meetings or teleconferences may be disclosed. Other background
material sent to ICO to elaborate or clarify a technical issue may not be
disclosed.

<PAGE>   592
                                                              CHANGE ORDER NO. 1
                                                                    ATTACHMENT 2

                             DISCLOSABLE INFORMATION

             TABLE I. LIST OF DELIVERABLES TO ICO BY THE CONTRACTOR

1.      ICO GPRS Functional Requirements (GSM 02.60 based) May be disclosed

2.      Specific ICO GPRS Requirements Specification Mixed HNS/Ericsson Document
        Parts of this can be disclosed as defined in TABLE 2 below.

3.      ICO GPRS Air Interface Change Request Package
        May be disclosed

4.      Terms and Conditions for the ICO GPRS Main Supply Contract
        May not be disclosed

5.      Statement of Work For the ICO GPRS Main Supply Contract Mixed
        HNS/Ericsson Document Parts of this can be disclosed as defined in TABLE
        3 below

6.      Specified Inputs to Market Plan and Business Case for ICO GPRS
        May not be disclosed

7.      Price Proposal for the ICO GPRS System
        May not be disclosed

<PAGE>   593
         TABLE 2. SPECIFIC ICO GPRS REQUIREMENTS SPECIFICATION OUTLINE

1.0 General

        1.1 Purpose and Scope (May be disclosed)

        1.2 Document Overview (May be disclosed)

        1.3 Related Documents (The related documents that are HNS and Ericsson
        design documents for the circuit system may not be disclosed)

        1.4 Notation Conventions (May be disclosed)

2.0 Definitions and Acronyms (May be disclosed)

3.0 Architectural Overview (The high level view block diagram showing the
overall system architecture may be disclosed.)

        3.1 Overview (Diagram)

        3.2 Description (Functionality) of NETWORK ELEMENTS (RFT, IDS, SBS,
        SGSN, GGSN, Public Network)

        3.3 Interfaces Between Elements where the elements are at the level of
        RFT, IDS, SBS, SGSN, GGSN, Public network.

        3.4 External Interfaces

4.0 Service Requirements (May be disclosed)

5.0 Air Interface Requirements (May be disclosed)

        5.1 Overview

        5.2 Modulation, Coding, and Range of Data Rates. Forward and Return

        5.3 Forward Path to Spot Beams

                5.3.1 Control Functions

                5.3.2 Traffic

        5.4 Return Path to Spot Beams

                5.4.1 Control Functions

                5.4.2 Traffic

6.0 Administration and Support Services (May be disclosed)

        6.1 Charging including interfaces

        6.2 Provisioning including interfaces

7.0 SBS Requirements (May be disclosed where the SBS is treated as a whole. No
lower level component information will be disclosed.)

        7.1 Equipment Requirements

        7.2 Internal Interface Requirements (requirement impacts on other SBS
        components)

8.0 GPRS Switching Requirements

        8.1 SGSN Node (Generic SGSN requirements may be disclosed. No lower
        level component information will be disclosed.))

        8.2 GGSN Node (Generic GGSN Requirement may be disclosed.) No lower
        level component information will be disclosed.)

        8.3 O&M System for the GSN Nodes (The generic requirements of the
        standard network management model may be disclosed. The specific
        statistics, alarms, and reports generated by the Ericsson GPRS Switching
        equipment may not be disclosed.

        8.4 Network Element Manager (May not be disclosed. This is specific to
        Ericsson)

        8.5 Interfaces (May be disclosed, excluding internal interfaces)

        8.6 Charging Records (May be disclosed)

9.0 RFT/IDS Requirements Releasable subject to agreements in the ICO circuit
switch contract. The interface to the IDS will be disclosed.

10.0 User Data Terminal Requirements

       10.1 UDT Prototype (May be disclosed)

                10.1.1 Architectural Requirements

                10.1.2 User Interface Requirements

                10.1.3 Air Interface Requirements
<PAGE>   594
                                              PROPOSAL FOR ICO GPRS REQUIREMENTS
                                                               HNS-11181 (6/97P)

8.      The ICO GPRS shall also provide the following customer services:

        A.      Data ciphering

        B.      User confidentiality

        C.      IP header compression

        D.      Data compression

        E.      Roaming to and from external GPRS systems(1)

        F.      Static (permanently assigned) IP addresses (the IP address of a
                subscriber's UT is always in the same GGSN)

        G.      Dynamic assignment of IP addresses.

        H.      Subscriber Authentication

NOTE:   For addressing, GSM-GPRS allows a number of methods to assign both
        static and dynamic addresses. ICO-GPRS requires the same flexibility.

1.2     ADDRESSING REQUIREMENTS

        1.      UTs shall use IP addressing.

        2.      UT subscription shall be identified by the IMSI.

        3.      The UT equipment shall be identified by the IMEI.

        4.      The HLR shall contain the subscription information, such as IMSI
                and service profiles. In addition, storage of triplets for
                authentication and ciphering shall be done.

        S.      The UT shall be externally addressable either via dynamic or
                static IP addresses.

        6.      The IP address shall be maintained as the UT roams within the
                ICO GPRS network with an activated context.

        7.      The ICO GPRS shall support IP Version 4 addressing.

----------------------
(1)     GPRS Roaming permits users to move between the ICO GPRS and external
        GPRS systems with a new GPRS attach in either system, i.e., as
        standardised for GPRS.

<PAGE>   595
                                              PROPOSAL FOR ICO GPRS REQUIREMENTS
                                                               HNS-11181 (6/97P)

                                   [DIAGRAM]

                     FIGURE A-1. ICO GPRS - X.25 TRANSPORT

1.3     PUBLIC DATA NETWORK INTERFACE REQUIREMENTS

        1.      The ICO GPRS interface to public data networks shall support the
                following protocols:

                A.      IP

                B.      X.25 where the X.25 network is a bearer service for IP
                        packets

                C.      X.25 encapsulated in an IP packet

See FIGURE A-I for the X.25 packet transfer modes in ICO GPRS.

1.4     GSM INTERFACE REQUIREMENTS

        1.      The provisioning database shall be in the ICO HLR.

        2.      The ICO GPRS shall support the following GPRS interfaces: Gp,
                Gi, Gs, Gn, and Gr and Gb

        3.      The Gb interface in GPRS shall be modified to meet the
                requirements of the ICO GPRS. The modified Gb interface is
                called the Gb' (Gb prime) interface. The physical level of the
                Gb' shall be an E1 line meeting G.703 and G.704.

<PAGE>   596
                                              PROPOSAL FOR ICO GPRS REQUIREMENTS
                                                               HNS-11181 (6/97P)

                                   APPENDIX A
                        DRAFT REQUIREMENTS SPECIFICATION

<PAGE>   597
                                              PROPOSAL FOR ICO GPRS REQUIREMENTS
                                                               HNS-11181 (6/97P)

                                   APPENDIX A
                        DRAFT REQUIREMENTS SPECIFICATION

                            1.0 GENERAL REQUIREMENTS

These Functional Requirements were developed by the contractor and ICO during a
preliminary study done by the contractor in response to the AX and B package
items of the ICO Circuit Main Supply Contract. It is attached to this proposal
for reference purposes.

1.1     SERVICE REQUIREMENTS

        1.      The ICO GPRS shall provide point-to-point service.

        2.      The ICO GPRS shall support IP traffic between the UT and
                terrestrial IP-based networks.

        3.      X.25 shall be supported.

        4.      The ICO GPRS shall support Class A, B, and C UTs:

                A.      Class A - Supports simultaneous attach, simultaneous
                        activation, simultaneous monitor, simultaneous
                        invocation, and simultaneous traffic. The UT user can
                        make and/or receive calls on the two services (GPRS and
                        circuit switched) simultaneously subject to the QoS
                        requirements. A minimum of one timeslot shall be
                        available for each type of service (circuit switched and
                        ICO GPRS) when required.

                B.      Class B - Supports simultaneous attach, simultaneous
                        activation, and simultaneous monitor. Supports only
                        limited simultaneous invocation: ICO GPRS virtual
                        circuits (ICO GPRS activation) shall not be cleared down
                        due to invocation or traffic of circuit switched
                        services, the status of the ICO GPRS virtual connection
                        is then "busy or held." Simultaneous traffic shall not
                        be supported. The UT user can make and/or receive calls
                        on either of the two services sequentially but not
                        simultaneously. The selection of the appropriate service
                        is performed automatically.

                C.      Class C - Supports only nonsimultaneous attach.
                        Alternate use only. If both services (GPRS and circuit
                        switched) are supported then a Class C UT can make
                        and/or receive calls only from the manually or default
                        selected service, i.e., either GPRS or circuit switched
                        service. The status of the service that has not been
                        selected is detached, i.e., not reachable.

        5.      The ICO GPRS shall support the following data rate services:
                A. 2.4 kbps to 9.6 kpbs (bit rate) low rate
                B. 14.4 kbps to 64 kbps (high rate)

        6.      The ICO GPRS shall support a low power or "sleep" mode in the UT
                based on the idle mode concept defined by the ICO circuit
                switched system.

        7.      Paging escalation shall be supported.

<PAGE>   598
                                              PROPOSAL FOR ICO GPRS REQUIREMENTS
                                                               HNS-11181 (6/97P)

1.5     MOBILITY REQUIREMENTS

        1.      Mobility management functions shall keep track of the current
                location of a UT within the ICO network or within another GSM
                PLMN.

        2.      The system shall support roaming between SANs.

<PAGE>   599
                                              PROPOSAL FOR ICO GPRS REQUIREMENTS
                                                               HNS-11181 (6/97P)

                           2.0 EQUIPMENT REQUIREMENTS

2.1     SIZING

        1.      The ICO GPRS system shall be supported in the following raw data
                rates per SAN subject to the bandwidth on the satellite and the
                power and frequencies available assigned by the SRMC:

                A.      1.0 Mbps (one channel manager)

                B.      2.0 Mbps (two channel managers)

                C.      3.0 Mbps (three channel managers)

2.2     SBS EQUIPMENT REQUIREMENTS

2.2.1   ICO GPRS CHANNEL MANAGERS AND CHANNEL UNITS

        1.      The ICO GPRS channel managers and channel units shall contain
                the physical, media access control (MAC), and radio link control
                (RLC) levels of the ICO GPRS Air Interface Protocol.

2.2.2   LOCAL SATELLITE RESOURCE MANAGEMENT SYSTEM

        1.      The LSRMS function for ICO GPRS shall run on the same platform
                as used by the ICO voice system.

        2.      LSRMS shall allocate ICO GPRS resources in real-time based on
                requests received from the UTs as indicated in the RACH message.

        3.      LSRMS shall allocate ICO GPRS resources from the pool of
                resources made available to it by the SRMC system for normal
                voice/data use.

        4.      LSRMS shall generate additional event and alarm information for
                ICO GPRS-type traffic to the network management elements.

        5.      LSRMS in conjunction with the radio resource layer shall compile
                statistics on each ICO GPRS allocation. Each data set shall
                contain information about the resources used by the ICO GPRS
                during its existence for use by network management systems.
                These data shall be transferred to the SAN OSS by the same
                mechanism as used for the circuit switched system.

2.2.3   SBS OMC

        1.      The SBS components providing ICO GPRS services are managed by
                the SBS OMC platform. The SBS OMC platform generic requirements
                for other ICO services, which are applicable for ICO GPRS, are
                described in the IGFR Version 25, 17 Feb 1997, Section 7.8.9. In
                this section, incremental requirements related to ICO GPRS are
                provided.

        2.      The ICO GPRS SBS equipment shall be managed by the same SBS OMC
                as the ICO voice system.

<PAGE>   600
                                              PROPOSAL FOR ICO GPRS REQUIREMENTS
                                                               HNS-11181 (6/97P)

3.      The SBS OMC shall manage the following SBS components providing ICO GPRS
        functionality:

        A.      ICO GPRS channel managers

        B.      ICO GPRS channel units

        C.      Local satellite resource management system

4.      The SBS OMC shall provide user interface to the operator in order to
        configure, control, process faults, monitor performance, and manage
        operator access.

5.      The SBS OMC shall interface with the SAN-OSS and provide fault and
        performance data from the SBS equipment supporting ICO GPRS services.

6.      The SBS OMC shall provide notifications for the following error
        conditions in the Channel manager and channel unit: equipment failure,
        software or processing failure, communication failure, operational state
        change.

7.      The SBS OMC shall provide the following configuration services for the
        Channel Manager and Channel Unit: initialization, shutdown,
        preconfiguration, software downline load.

8.      The SBS OMC shall provide the following configuration parameters for the
        Channel Units: element response time, performance statistics interval,
        supported beams.

9.      The SBS OMC shall provide the following configuration parameters for
        each ChM: IP address, performance collection interval, supporting
        equipment list.

10.     The SBS OMC shall support the configuration parameters for the air
        interface.

11.     The SBS OMC shall collect performance data from the channel unit and
        channel manager.

12.     The SBS OMC shall collect performance indicators for the air interface.

13.     The SBS OMC shall control operator access to applications managing
        channel manager and channel units.

2.2.4   IF SUBSYSTEM

        1.      The ICO GPRS shall share the IF distribution system with the ICO
                circuit switched system with additional equipment added to
                support the additional channel units required for data.

2.3     GSN EQUIPMENT REQUIREMENTS

2.3.1   SGSN AND GGSN NODES

The SGSN and GGSN equipment shall support the following:

        1.      Network access control functions (IP and X.25 as bearer network)

        2.      Packet routing and transfer functions

        3.      Mobility management functions

        4.      Logical link management functions

        5.      Charging functions

<PAGE>   601
                                              PROPOSAL FOR ICO GPRS REQUIREMENTS
                                                               HNS-11181 (6/97P)

2.3.2   GSN OPERATIONS AND MAINTENANCE SYSTEM

        1.      The operation and maintenance system shall manage all GSN nodes

        2.      Management of the GSN network elements shall be supported

        3.      Fault management functions shall be provided

        4.      Performance management functions shall be provided

        5.      Configuration management shall be provided

        6.      An SNMP and HTTP interface shall be provided for operation and
                maintenance

        7.      The GSN operation and maintenance shall be able to send alarms
                to the SAN OSS through standard protocols

2.4     NETWORK ELEMENT MANAGER (NEM) REQUIREMENTS

        1.      Shall be a standard workstation including software for the GSN
                node operation support

        2.      It shall be possible to connect one NEM to several GSN nodes

        3.      The NEM shall have a graphical user interface based on Web
                technology

        4.      The OSS shall receive and process GSN alarms

        5.      The OSS shall receive and process GSN statistics.

2.5     NETWORK MANAGEMENT CENTRE (NMC) REQUIREMENTS

        1.      The NMC shall receive additional alarms defined for the ICO GPRS
                system

2.6     SAN OSS REQUIREMENTS

        1.      The SAN OSS shall receive additional alarms defined for the ICO
                GPRS system

2.7     SATELLITE RESOURCE MANAGEMENT CENTER REQUIREMENTS

        1.      The SRMC shall support a new type of traffic channel based on
                classmark for the support of packet data

2.8     RFT REQUIREMENTS

        1.      The ICO GPRS shall not have any impact on the RFT with respect
                to the total EIRP including voice/data and ICO GPRS carriers
                assuming the ICO system operates within the maximum EIRP
                specified in the RFT requirement document.

<PAGE>   602
                                              PROPOSAL FOR ICO GPRS REQUIREMENTS
                                                               HNS-11181 (6/97P)

                            3.0 CHARGING REQUIREMENT

This section describes the charging requirements.

        1.      Charging shall be based on the GPRS standardization.

        2.      The ICO GPRS shall accumulate accounting data and forward it to
                the ADC for processing. The ADC is outside the scope of this
                requirements specification.

        3.      The charging/accounting data shall be forwarded to the ADC at a
                configurable interval, which is not less than 10 minutes.

        4.      The accounting data shall contain as a minimum the content of
                the data shown in TABLE A-1 and TABLE A-2.

        5.      Both the SGSN and GGSN nodes shall have the capability to
                provide charging data

        6.      The GPRS standardization currently only defines the general
                aspects of charging. However, the information below shall be
                seen as an input for further definition of charging
                requirements.

                      TABLE A-1. ICO ACCOUNTING DATA HEADER

<TABLE>
<CAPTION>
      FIELDS                                         SEMANTICS
      ------                                         ---------
<S>                             <C>
GSN                             IP address of GSN

Start Time                      This field shall contain the date and time of
                                day that the record was instantiated

Segment Duration                This field shall contain the number of seconds
                                or the record statistics

Sent Time                       This field shall contain the date and time of
                                day that the record was sent to the ADC

Sequence Number                 This field shall contain the record sequence
                                number. It shall increment by 1 for each new
                                record. The system shall preserve sequence
                                number integrity.
</TABLE>

<PAGE>   603
                                              PROPOSAL FOR ICO GPRS REQUIREMENTS
                                                               HNS-11181 (6/97P)

                         TABLE A-2. ICO ACCOUNTING DATA

<TABLE>
<CAPTION>
FIELDS                          SEMANTICS
------                          ---------
<S>                             <C>
Home GGSN identifier            IP address of the home GGSN

UT address                      IP address of UT

Dynamic assigned IP address     Yes or no

UT identifier (IMSI)            Subscriber identifier

UT equipment identifier (IMEI)  Equipment identifier

Traffic type                    This field shall indicate the type of
                                accountable transactions that the UT did. It
                                shall be one of

                                - Attach

                                - Detach

                                - IP traffic

                                - Reserved

DATA ROW FIELDS                 FOR TRAFFIC DATA ONLY

Sender/receiver address         IP address of the entity with which the UT was
                                communicating

Source destination flag         Indicates if the UT was the sender or receiver
                                of the traffic

Data packet count

Data octet count

Control packet count

Control octet count

Discard packet count

ATTACH FIELDS                   FOR ATTACH DATA ONLY

Date and time                   This field shall contain the date and time when
                                the UT attached for data service

Attach result                   This field shall contain the result code for
                                Attach

DETACH FIELDS                   FOR DETACH DATA ONLY

Date and time                   This field shall contain the date and time when
                                the UT detached for data service

Detach result                   This field shall contain the result code for
                                detach
</TABLE>

<PAGE>   604
                                              Proposal for ICO GPRS Requirements
                                                               HNS-11181 (6/97P)

                         4.0 AIR INTERFACE REQUIREMENTS

4.1 GENERAL AIR INTERFACE REQUIREMENTS

     1. The ICO GPRS shall use the same common channel signaling channel units
        as the circuit switched system.

     2. The RACH message format shall support an indicator that the request is
        for ICO GPRS data services.

     3. A MAC level protocol shall be provided to support multiplex data for
        multiple UTs on the forward and return traffic channels.

     4. ICO shall define the MAC Level protocol

     5. The MAC layer shall support multifrequency/multislot UTs.

     6. A radio link protocol shall be provided.

     7. ICO shall define the radio link protocol.

     8. The access grant channel and the SACCH shall support frequency and
        timing corrections to be sent to the UT.

     9. A link level protocol with a selective retransmit facility shall be
        provided to ensure data integrity on the air interface link.

4.2 FREQUENCY REQUIREMENTS

     1. The frequency control requirements for the ICO GPRS shall be the same as
        those for the ICO voice/data network.

     2. The transfer of the frequency control information shall use the burst
        SACCH.

4.3 ICO GPRS PHYSICAL LAYER

4.3.1 INTRODUCTION

This subsection describes the specifications and the requirements for the
physical layer of ICO GPRS air interface.

     1. The diversity over the physical layer air-interface shall not be
        supported for the ICO GPRS.

<PAGE>   605

                                              Proposal for ICO GPRS Requirements
                                                               HNS-11181 (6/97P)

4.3.2 PHYSICAL LAYER SPECIFICATIONS

4.3.2.1 TIME-FRAME STRUCTURES

     1. The ICO GPRS physical layer shall support the time-frame structures
        supported by the ICO voice/data network.

4.3.2.2 PREMODULATION PROCESSING

     1. As in ICO voice/data network, the ICO GPRS physical layer shall support
        channel coding, interleaving, and burst formatting functions.

     2. The burst-formats for the ICO GPRS shall be different from the current
        burst-formats defined in ICO-NET air interface documents.

     3. The SACCH bits are not interleaved within the dedicated channel bursts.

     4. The ICO GPRS shall support a separate burst for the SACCH.

4.3.2.3 MODULATION SCHEME AND DATA RATE

     1. The modulation schemes for traffic and control channels of the ICO GPRS
        shall be the same as those for the ICO voice/data network.

4.3.2.4 CHANNEL MODEL

     1. The ICO GPRS shall operate in additive white Gaussian noise (AWGN)
        condition.

     2. The ICO GPRS shall not operate in the signal blockage environment.

     3. The vehicular, maritime, and aeronautical terminals shall operate in
        Ricean fading conditions.

     4. The Ricean K-factor shall be greater than [10 dB] for the ICO GPRS data
        terminals.

4.3.2.5 ICO GPRS HIGH RATE DATA

     1. The ICO GPRS shall support higher data-rates using combination of
        TCH/3.6 bursts. If the rate at which the data is transmitted over the
        air-interface is not an integer multiple of 3.6 kbps, the dummy bits
        shall be inserted. The combination of TCH/3.6 shall be over multiple
        bursts either on a single carrier or on different carriers. The higher
        layers shall ensure a proper ordering of the transmitted and the
        received data over multiple bursts/carriers.

     2. The details of the high rate data shall be subject to further study
        during the design phase contract.

<PAGE>   606

                                              Proposal for ICO GPRS Requirements
                                                               HNS-11181 (6/97P)

4.3.3 ICO GPRS LAYER 1 AIR INTERFACE

4.3.3.1. PROTOCOL

     1. The ICO GPRS shall share the common control channels with ICO voice/data
        network.

     2. The ICO GPRS UT shall access the ICO GPRS traffic channel using random
        access Aloha protocol. There shall be a bit on the random access burst
        (RACH) indicating the request for ICO GPRS or ICO voice/data service.

     3. The SAN shall determine the UT time delay and Doppler from the RACH
        burst. The SAN shall allocate the traffic channel to the UT on
        contention basis.

     4. The UT shall begin packet data transmission on the allocated traffic
        channel after receiving the access grant burst (AGCH) from the SAN.

4.3.3.2 CHARACTERISTICS

     1. The ICO GPRS traffic channel allocation shall be dynamic. The SAN shall
        be able to terminate the traffic channel allocated to a UT autonomously.

     2. The SAN shall be able to allocate more than one timeslot to a UT. The
        number of timeslots allocated to the UT on the forward and the reverse
        links may not be always the same.

     3. The ICO GPRS layer 1 shall not be required to ensure "make-before-break"
        handovers because of the packet switched data transfer.

4.3.3.3 ICO GPRS PHYSICAL LINK CONTROL

     1. Time Control: The ICO GPRS time control scheme shall be the same as that
        for the ICO voice/data network.

     2. Frequency Control: The ICO GPRS frequency control scheme shall be the
        same as that for the ICO voice/data network.

     3. Power Control: The ICO GPRS power control scheme differs from that for
        the ICO voice/data network as follows:

          A. There shall be no forward link power control for the ICO GPRS.

          B. On the return link, the UT shall vary its transmitted power
             depending on its estimate of the path-loss. This estimate shall be
             based only on the forward link received power level.

<PAGE>   607

                                              Proposal for ICO GPRS Requirements
                                                               HNS-11181 (6/97P)

                         5.0 MISCELLANEOUS REQUIREMENTS

5.1 OPEN INTERFACE DOCUMENTATION REQUIREMENTS

This section defines the requirements for the interfaces that will become open
documents for third parties to develop applications.

5.1.1 GENERAL REQUIREMENTS

The following requirements apply to the open interfaces:

     1. Open interfaces shall be maintained for three documents:

          A. Air interface specification.

          B. Gateway specification (GGSN to external networks).

          C. Interface to the administrative data center.

     2. An open interface specification will be supported during the warranty
        period. Open interface support shall include:

          A. Correcting deficiencies.

          B. Releasing change notices.

          C. Releasing document updates.

          D. Responding to questions from ICO certified third parties (maximum
             of 15).

5.1.2 AIR INTERFACE

     1. The satellite packet data network air interface control document will be
        written to the level of detail such that UT manufacturers can develop
        ICO UTs that will interoperate with the ICO-owned ground stations.

5.1.3 GATEWAY INTERFACE

     1. The Gateway interface document shall describe the specific parameters
        required for each protocol to achieve optimum performance.

5.1.4 INTERFACE TO ADMINISTRATION DATA CENTER

     1. The accounting interface for the transferring of charging data shall be
        documented as an open interface.

<PAGE>   608

Author: Monica Horten at ICO2
Date: 23/02/98 13:27
Priority: Normal
CC: Peter Poskett at LONTEC02
TO: Thomas Goerke at LONTEC02, George Wiginton at ICO1
Subject: Re[2]: GPRS quote

George, I have just spoken to Claes Meltzer at Ericsson.

Update as follows:

Distribution report: he is still waiting for further information to be included,
Will have it end of this week, expects to report to us beginning next week.

Cd-Rom. I am told that all of the changes I have asked for are currently being
implemented and a disk will leave Sweden tomorrow night by courier.

On distribution: happy to basically say they have not delivered in a reasonable
time, and forget it, although I suppose we should take a quick look at what they
product.

On Cd-Rom: if the new disk is still not acceptable, then would recommend we
negotiate a reduced price with them.

Am I expected to attend this meeting on Wed?

Monica

-----------------------------Reply Separator-----------------------------------
Subject: Re: GPRS quote
Author: George Wiginton at ico1
Date: 22/02/98 15:29

     Need to summarise situation ASAP.

     NEC has proposed a meeting on this w/c 23/2.

     George

-----------------------------Reply Separator-----------------------------------
Subject: GPRS quote
Author: Thomas Goerke at LONTEC02
Date: 12/02/98 10:00

     George,

     I am currently in Norway attending a ETSI SMG4 meeting. I will discuss in
     detail with you on Tuesday what we should do with the GPRS quote.

     I suggest that we get feedback from Monica as to the status of the
     Commercial work, and what needs to be done. As Monica is leaving in 2 weeks
     time, we need to finalise this asap.

     Peter and I have agreed to do some quick costing to check if we have enough
     detail, next week.

     I think we should aim for Friday next week to give NEC feedback on the
     acceptance or non acceptance of all of their inputs.

     Tom

     PS Any further comment on the SOW etc.

<PAGE>   609

Memo

  To: PP, MH, GW, CF
From: Tom Goerke
Date: 7th January 1998
Copy: K Smith
                                                                  ICO
                                                      ICO GLOBAL COMMUNICATIONS
                                                       1 Queen Caroline Street
                                                      Hammersmith London W6 9BN
                                                             United Kingdom

Subject: GPRS INTERNAL REVIEW MEETING MINUTES           TEL +44 (O) 181 600 1000
                                                        FAX +44 (0) 181 600 1199
                                                        WEBSITE //www.ico.com

     LOCATION/DATE/PRESENT
     Room 25 QCS, January 7th 1998
     P Poskett, M Horten, T Goerke, C Forsyth, G Wiginton

     AGENDA FOR MEETING
     Discuss status of deliverables from GPRS Study Contract
     Discuss how to proceed to finalise contract
     Discuss way forward

     MEETING SUMMARY

     There are two broad categories of issues relating to deliverables. They can
     be classed as either not officially received or received and unacceptable.

     Table 1 provides a summary of the deliverable documents and their status as
     of 7th January 1998.

     In summary, the following documents have not been officially delivered:

     1. ICO GPRS Functional Requirements (GSM 02.60 based)
        (Note: Soft copy received which is acceptable)

     2. Terms and Conditions for the ICO GPRS Main Supply Contract (Note: this
        is not needed in order for the NEC team to be paid)

     3. Statement of Work for the ICU GPRS Main Supply Contract (Note: draft
        version received in hard copy only.)

     4. Price Proposal

     Note that the commercial documents have not been delivered through the NEC
     Program Office due to their confidential nature. As such Ericsson have
     agreed to use the NEC file numbering system, but have delivered these
     documents directly to ICO.

     The following documents are not acceptable as is:

     1. Statement of Work for the ICO GPRS Main Supply Contract

<PAGE>   610

        (Note: draft version received in hard copy only.)

     2. Customer proposition report. Section missing on the "rating of further
        comparison.." Proposal for ICO GPRS, Revision 4.3, June 26, 1997
        Section 6.2.2, second bullet, last sentence. (Note: the rest of the
        document is acceptable)

     3. Distribution report and spreadsheet

     RECOMMENDATION

     It is recommended that:

     1. A letter is drafted to NEC which specifies the status of all deliverable
        documents, including the contracted delivery date.

     2. ICO discusses informally with NEC the options of non delivery of certain
        documents in return for non payment of the remaining balance (60%).

     3. The date in clause 10.5.2 relating to key features should be extended by
        a minimum of 3 months in line with the delay in the supply of the
        deliverables.

     The following was agreed as a possible way forward in relation to
     outstanding documents:

     1. Statement of work: ACCEPT AS IS IF PRICE REDUCTION AGREED. This document
        will be needed if we were to progress to a supply agreement, however
        this is unlikely to occur with the current teaming arrangement.

     2. Terms and Conditions: TRADE NON DELIVERY FOR REDUCTION IN PRICE. This
        document will be needed if we were to progress to a supply agreement,
        however this is unlikely to occur with the current teaming arrangement.

     3. Distribution Report: REQUEST THE NEC TEAM TO DELIVER ACCEPTABLE QUALITY
        REPORT OR TRADE NON DELIVERY FOR REDUCTION IN PRICE.

     4. Customer proposition report. Section missing on the "rating of further
        comparison." Proposal for ICO GPRS, Revision 4.3, June 26, 1997
        Section 6.2.2, second bullet, last sentence: TRADE NON DELIVERY FOR
        REDUCTION IN PRICE.

     5. Price Proposal. THE NEC TEAM MUST DELIVER THIS DOCUMENT AND IT MUST BE
        OF ACCEPTABLE QUALITY. ICO requires this to gain an understanding of
        what the cost for the network will be.

<PAGE>   611

<TABLE>
<CAPTION>
                                            Table 1 Summary of Deliverable Documents
-----------------------------------------------------------------------------------------------------------------------------------
DOCUMENT DESCRIPTION                        RECEIVED   DOCUMENT DESCRIPTION      REVIEWER   COMMENT
-----------------------------------------------------------------------------------------------------------------------------------
<S>                                         <C>        <C>                       <C>        <C>
DELIVERABLES
----------------------------------------------------------------------------------------------------------------------------------
ICO GPRS Functional Requirements (GSM       yes        Soft copy received        TG         Acceptable consistent with contract.
02.60 based)                                                                                Requires official version to be
                                                                                            delivered through formal channels.
-----------------------------------------------------------------------------------------------------------------------------------
Specific ICO GPRS Requirements              yes        Hard/Soft copy received   TG         Acceptable consistent with contract.
Specification                                                                               Further work will be needed to refine
                                                                                            this if were to contract with the NEC
                                                                                            team.
-----------------------------------------------------------------------------------------------------------------------------------
ICO GPRS Air Interface Change Request       yes        Hard/Soft copy received   AI Exec    Acceptable consistent with contract.
Package                                                                                     AI Exec team have stated that these
                                                                                            CR do not need to be added at this
                                                                                            stage.
-----------------------------------------------------------------------------------------------------------------------------------
Terms and Conditions for the ICO GPRS       no
Main Supply Contract
-----------------------------------------------------------------------------------------------------------------------------------
Statement of Work for the ICO GPRS Main     yes        Hard copy                 GW         Have not received an official copy.
Supply Contract                                                                             Unofficial copy requires significant
                                                                                            work.
-----------------------------------------------------------------------------------------------------------------------------------
Specified Inputs to Market Plan and
Business Case for ICO GPRS
-----------------------------------------------------------------------------------------------------------------------------------
  Customer proposition                      yes        Hard/Soft copy received   MH         Acceptable consistent with contract.
                                                                                            Section on technical comparison
                                                                                            between CS and PS not included.
-----------------------------------------------------------------------------------------------------------------------------------
  Market plan                               yes        Hard/Soft copy received   MIT        Acceptable consistent with contract.
-----------------------------------------------------------------------------------------------------------------------------------
  Market Forecasts                          yes        Hard/Soft copy received   MIA        Acceptable consistent with contract.
                                                                                            Note that the cash flow is not complete
                                                                                            as costs have not been included.
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>   612

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
DOCUMENT DESCRIPTION                        RECEIVED   DOCUMENT DESCRIPTION      REVIEWER   COMMENT
-----------------------------------------------------------------------------------------------------------------------------------
<S>                                         <C>        <C>                       <C>        <C>
Distribution                                yes        Hard/Soft copy received   MH         Not acceptable
-----------------------------------------------------------------------------------------------------------------------------------
Distribution Costs                          yes        Hard/Soft copy received   MH         Not acceptable
-----------------------------------------------------------------------------------------------------------------------------------
CDROM                                       yes        CDROM received            MH         Prototype undergoing revisions.
                                                                                            Confident of acceptable deliverable
                                                                                            within 2 weeks.
-----------------------------------------------------------------------------------------------------------------------------------
Price Proposal                              no
-----------------------------------------------------------------------------------------------------------------------------------
SUPPORTING DOCUMENTS
-----------------------------------------------------------------------------------------------------------------------------------
ICO GPRS SBS Background Material Rev 1.0    yes        Hard/Soft copy received   TG         Not a deliverable
                                                                                            Acceptable
-----------------------------------------------------------------------------------------------------------------------------------
ICO GPRS UT Supporting Material Rev 1.0     yes        Hard/Soft copy received   TG         Not a deliverable
                                                                                            Acceptable
-----------------------------------------------------------------------------------------------------------------------------------
ICO GPRS Channel Coding Study               yes        Hard/Soft copy received   TG         Not a deliverable
                                                                                            Acceptable
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>   613

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
DOCUMENT DESCRIPTION                        RECEIVED   DOCUMENT DESCRIPTION      REVIEWER   COMMENT
-----------------------------------------------------------------------------------------------------------------------------------
<S>                                         <C>        <C>                       <C>        <C>
                                                                                            Ericsson component only
-----------------------------------------------------------------------------------------------------------------------------------
SUPPORTING DOCUMENTS
-----------------------------------------------------------------------------------------------------------------------------------
ICO GPRS SBS Background Material Rev 1.0    yes        Hard/Soft copy received   TG         Not a deliverable
-----------------------------------------------------------------------------------------------------------------------------------
ICO GPRS UT Supporting Material Rev 1.0     yes        Hard/Soft copy received   TG         Not a deliverable
-----------------------------------------------------------------------------------------------------------------------------------
ICO GPRS Channel Coding Stud                yes        Hard/Soft copy received   TG         Acceptable
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>   614

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
DOCUMENT DESCRIPTION                        RECEIVED   DOCUMENT DESCRIPTION      REVIEWER   COMMENT
-----------------------------------------------------------------------------------------------------------------------------------
<S>                                         <C>        <C>                       <C>        <C>
DELIVERABLES
----------------------------------------------------------------------------------------------------------------------------------
ICO GPRS Functional Requirements (GSM       yes        Soft copy received        TG         Acceptable
02.60 based)
----------------------------------------------------------------------------------------------------------------------------------
Specific ICO GPRS Requirements              yes        Hard/Soft copy received   TG         Acceptable.
Specification                                                                               Further work will be needed to refine
                                                                                            this if we progress to
----------------------------------------------------------------------------------------------------------------------------------
ICO GPRS Air Interface Change Request       yes        Hard/Soft copy received   Al Exec    A1 Exec team have stated that these
Package                                                                                     CR do not need to be added at this
                                                                                            stage. (See KH email)
----------------------------------------------------------------------------------------------------------------------------------
Terms and Conditions for the ICO GPRS       no                                              still waiting for this
Main Supply Contract
----------------------------------------------------------------------------------------------------------------------------------
Statement of Work for the ICO GPRS          yes        Hard copy                 GW         Have not received an official copy.
Main Supply Contract                                                                        Unofficial copy requires significant
                                                                                            work.
----------------------------------------------------------------------------------------------------------------------------------
Specified Inputs to Market Plan and
Business Case for ICO GPRS
----------------------------------------------------------------------------------------------------------------------------------
  Customer proposition                      yes        Hard/Soft copy received   MH         complete; TG/TW to check simulation
                                                                                            paper; otherwise acceptable.
----------------------------------------------------------------------------------------------------------------------------------
  Market plan report                        yes        Hard/Soft copy received   MH         acceptable
----------------------------------------------------------------------------------------------------------------------------------
  Market Forecasts: spreadsheet             yes        Hard/Soft copy received   MH         incomplete - no costs/cash flow.
----------------------------------------------------------------------------------------------------------------------------------
  Distribution report                       yes        Hard/Soft copy received   MH         not acceptable
----------------------------------------------------------------------------------------------------------------------------------
  Distribution Costs spreadsheet            yes        Hard/Soft copy received   MH         not acceptable
----------------------------------------------------------------------------------------------------------------------------------
  CDROM                                     yes        CDROM 1st prototype       MH         still working on prototype: due to
                                                       received; second                     inputs from ICO, final product should
                                                       prototype due 8.1.98.                be acceptable, however, could be
                                                       Final due when we are                issues related to use of product by
                                                       all happy with                       Ericsson.
                                                       prototypes.
----------------------------------------------------------------------------------------------------------------------------------
Price Pro seal                              no                                              Have received verbal costs for
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>   615

Memo

  To:
From: Tom Goerke
Date: 6th January 1998                                             ICO
Copy:
                                                       ISO Global Communication
                                                       1 Queen Caroline Street
                                                       Hammersmith London W6 9BN
                                                       United Kingdom

Subject: GPRS CONTRACT COMPLETION                      Tel +44 (0)181 600 1000
                                                       Fax +44 (0)181 600 1199
                                                       Website //www.ico.com

     INTRODUCTION

     To further progress the development of a packet switched air interface and
     requisite network, ICO contracted NEC to study the development of this
     system to ensure that if required ICO could procure such as system in the
     future without causing any delay in the schedule for the voice and circuit
     switched system.

     The Study Contract started in June 1997 and was schedule for completion by
     November 1997.

     The major items for the study were as follows:

     o  Ensure that the Air Interface can support a packet switched bearer

     o  Understand the implications on the IGF if a PS network was to be
        procured

     o  Develop Documents to enable a contract to be signed for delivery of the
        PS Network

     o  Analyse the commercial factors relating to ICO GPRS.

     The contract was undertaken by NEC, HNS and Ericsson. HNS were responsible
     for the Air Interface, SAN impacts and User Terminals, and Ericsson for
     the switching components and impact on the current network elements.

     SUMMARY

     [Need to summarise along the lines that the contract has been successfully
     completed with all deliverables accounted for.

     The "hooks" have been put in place and we understand the impact (if any) on
     all the network elements if ICO GPRS was to be purchased.

Our recommendation is that the price from the NEC team is too high, however we
believe it is worth pursuing. Therefore to achieve a competitive price we
believe we should progress to an RFP and seek bids from other parties. etc.
etc.]

<PAGE>   616

Presentations:
          ICO GPRS System Description and General Overview
          GPRS Final Review Meeting
          ICO GPRS O&M Requirements
          Administration and Support Services
          ICO GPRS Backbone Requirements
          Traffic Model
          Service Requirements

                                                                          Page 5
<PAGE>   617

DETAILED SUMMARY OF CONTRACT DELIVERABLES.

                                                                          Page 2
<PAGE>   618

                                TABLE OF CONTENTS
<TABLE>
<CAPTION>
SECTION                                                                  PAGE
-------                                                                  ----
<S>                                                                      <C>
1.  INTRODUCTION ....................................................      1
2.  STATEMENT OF WORK CONTENTS ......................................      1
3.  APPLICABLE DOCUMENTS ............................................      1
4.  SCOPE OF WORK ...................................................      1
5.  CONTRACTOR'S DELIVERABLES........................................      2
6.  INFORMATION, SERVICES AND EQUIPMENT .............................      3
7.  INSTALLATION SITE CONDITIONS ....................................      3
8.  PROGRAM MANAGEMENT AND IMPLEMENTATION ...........................      3
9.  TRAINING ........................................................      3
10. DOCUMENTATION....................................................      3
11. SITE WORKING ARRANGEMENT ........................................      4
12. GPRS TEST PLAN ..................................................      4
13. ICO GPRS INTEGRATION ............................................      4
14. GPRS ACCEPTANCE CRITERIA ........................................      4
15. AIR INTERFACE SIGNALING PROTOCOL VALIDATION .....................      4
16. IGF SYSTEM SUPPORT ..............................................      4
</TABLE>

<PAGE>   619

HNS-12498

                                STATEMENT OF WORK
                                     FOR THE
                 ICO IGF MAIN SUPPLY CONTRACT GPRS CHANGE ORDER

                                  November 1997

<PAGE>   620

1. INTRODUCTION

This Statement of Work (SOW) provides for the development, manufacturing,
testing, delivery and installation of a packet data service based on the GPRS
standard of GSM and integrated into the ICO mobile satellite network. The
definition of ICO SAN in this SOW is a SAN capable of both GPRS and operation.

This work is incorporated into the IGF Supply Contract as a Change Order to that
contract.

2. STATEMENT OF WORK CONTENTS

The SOW for this change order follows the format of the SOW for the IGF Supply
Contract. Some system requirements that appear in the IGF Supply SOW do not
apply to this ICO GPRS subsystem procurement and are not included in the GPRS
SOW.

3. APPLICABLE DOCUMENTS

Documents applicable to the GPRS Supply SOW include:

3.1 ICO GPRS Requirements Specification (HNS-12463)

3.2 ICO GPRS 02.60 Specification

4. SCOPE OF WORK

4.1   The Works shall include the design, manufacture, factory testing, and
      delivery of the ICONET GPRS including installation, integration with ICO
      Ground Facilities (IGF), and site testing in accordance with Annexes 7 and
      8 of this SOW.

4.2   The Works shall include an end-to-end demonstration of packet switched
      data services from a single standalone SAN (including GPRS capability and
      SGSN and GGSN) via the satellite and the terrestrial network in accordance
      ante with Annex 8 provided that the other ICO system elements (e.g., user
      terminals (UTs), IGF and satellite) are accepted and functioning
      correctly.

4.3   The Works shall also include, at ICO's selection, provision of engineering
      support and materials for ICONET integration of the GPRS with ICO's spate
      segment, terrestrial telecommunications networks, and ICO UTs in
      accordance with Annex 9.

4.4   The ICO GPRS will include:

      o     ICO GPRS equipment and software to support traffic for 12 SAN sites
            located in 12 different countries.

      o     Interface provisions for connecting ICO GPRS to SANS and for
            connecting SANS to terrestrial Networks and the NMC and backbone.

      o     One GPRS UT prototype.

<PAGE>   621

      o     Documentation.

4.5   The ICO GPRS will implement all the requirements set out in the ICO GPRS
      Requirements Specification Document, except for those marked therein as
      "F/R" or "Option."

      Compliance of the ICO GPRS with the ICO GPRS Requirements Specification
      shall be demonstrated by the Contractor as described in Annex 8.

4.6   HIGH-LEVEL SYSTEM DESCRIPTION

4.6.1 The Contractor shall modify and maintain the high-level system description
      (HLSD) for the ICO IGF consistent with the IGFR (revised) and the ICO GPRS
      Requirements Specification.

4.6.2 The Contractor shall maintain an adequately staffed system team to support
      the ICO GPRS so that, at all times, the ICO GPRS is internally consistent
      and complete.

4.6.3 The first complete version of the ICO GPRS Requirements Specification will
      be subject to review and approval by ICO and issued formally by the
      Contractor within 1 month after the completion of Level 2 acceptance of
      the GPRS.

4.6.4 The Contractor shall maintain the HLSD to incorporate the GPRS design,
      with a revised version being issued within 1 month after any system design
      review.

4.7   FUNCTIONAL DEFINITION DOCUMENTS

4.7.1 All documentation derived from any of the applicable documents referenced
      in the ICO GPRS Requirements Specification, shall be under configuration
      control, and full traceability shall be provided. All new and updated
      documentation shall be provided to ICO.

4.7.2 The schedule for the production of the GPRS ICDs will be as shown in the
      master level schedule.

4.7.3 The Contractor shall submit change requests for the Air Interface
      Specification to ICO, incorporating the requirements of the ICO GPRS.

5. CONTRACTOR'S DELIVERABLES

5.1   Annex 1 provides a detailed breakdown of the equipment and services to be
      provided by the Contractor.

5.2   Any revision to the quantities or services shall be subject to the formal
      Contract change procedures set out in Clause 9 of the Terms and Conditions
      of the IGF main supply contract.

5.3   The Contractor shall be responsible for the packaging, transportation, and
      delivery of the deliverables in accordance with Clauses 27 and 31 of the
      Terms and Conditions of the IGF main supply contract.

<PAGE>   622

6. INFORMATION, SERVICES, AND EQUIPMENT

6.1   Annex 2 provides a detailed breakdown of the information, services, and
      equipment to be provided by ICO except for installation site conditions,
      which are included in Annex 3.

6.2   Annex 2 also identifies the milestone dates that such information,
      services, and equipment are to be made available to the Contractor. (TBD)

7. INSTALLATION SITE CONDITIONS

7.1   Annex 3 identifies the installation site conditions, including services
      and equipment to be provided by ICO.

7.2   Access to each site shall be made available for the specific purpose of
      allowing the Contractor to inspect the site conditions and buildings and
      verify the installation design before the formal ready-for-access date.

8. PROGRAM MANAGEMENT AND IMPLEMENTATION

8.1   Annex 4 of the IGFR Main Supply Contract identifies the Contractor's
      obligations for program management tasks including quality assurance and
      the master level schedule, which the Contractor shall modify to
      incorporate, the GPRS supply WBS and schedule.

9. TRAINING

9.1   Annex 5 of this amendment sets out the scope of the ICO GPRS training
      courses that the Contractor shall provide.

9.2   The training shall be conducted in the English language.

9.3   ICO and the Contractor shall work closely together to develop a training
      program that ensures availability of trained ICO staff at the time when
      O&M services are required.

9.4   Any changes in the training syllabus, numbers of staff members to be
      trained, and training locations shall be subject to the formal contract
      change control procedures set out in Clause 9 of the Terms and Conditions
      of the IGFR Supply Contract as amended for ICO GPRS.

10. DOCUMENTATION

10.1  Annex 6 states the requirements for deliverable documentation of the GPRS
      supply program.

11. SITE WORKING ARRANGEMENT

11.1  Annex 7 states the responsibilities and work practices of contractors
      accessing the SAN sites for installing, integrating, and testing the GPRS.

<PAGE>   623

12. GPRS TEST PLAN

12.1  Annex 8 states the test requirements of the GPRS supply program and
      associated end-to-end service demonstration. Phase 2-2 site acceptance
      testing of the GPRS will begin after Level-1 acceptance of the other IGF
      equipment and systems at that site.

13. ICO GPRS INTEGRATION

13.1  Annex 9 states the requirements for integrating the GPRS with the other
      IGF subsystems.

14. GPRS ACCEPTANCE CRITERIA

14.1  Annex 10 states the criteria for acceptance of the GPRS.

15. AIR INTERFACE SIGNALING PROTOCOL VALIDATION

15.1  Annex 11 states the requirements for incorporating the GPRS into the IGF
      Air Interface Validation process (optional).

16. IGF SYSTEM SUPPORT

16.1  The following shall be made available upon the request of ICO, as set out
      in the agreement.

      Delivery of equipment, software, and services to increase the system
      capacity to meet demand as specifically ordered by ICO under the terms of
      the agreement.

<PAGE>   624

--------------------------------------------------------------------------------
[LOGO]              Annex 1 - Contractor's GPRS Deliverables
--------------------------------------------------------------------------------

                               TABLE OF CONTENTS

<TABLE>
<S>                                                                     <C>
1.  GENERAL .........................................................    A1-2
2.  DELIVERABLE DOCUMENTATION........................................    A1-2
3.  MAJOR SUBSYSTEMS OF THE ICO GPRS SYSTEM .........................    Al-2
4.  OPTIONS .........................................................    Al-3
5.  OPTIONAL SUPPORT SERVICES AND EXTENDED WARRANTY..................    A1-4
6.  DELIVERABLE FUNCTIONS AND FEATURES ..............................    Al-7
7.  DELIVERABLE EQUIPMENT ...........................................    A1-7
8.  DELIVERABLE SERVICES.............................................    A1-7
9.  SITE INSTALLATION DELIVERABLES ..................................    A1-7
10. SYSTEM CONFIGURATION INFORMATION ................................    Al-8
</TABLE>

<PAGE>   625
--------------------------------------------------------------------------------
[LOGO]              Annex 1 - Contractor's GPRS Deliverables
--------------------------------------------------------------------------------

ICO GPRS specific equipment shall include:

1.    Twelve ICO GPRS with each site containing:

      o     One channel manager and associated software
      o     Four channel units and associated software
      o     Hardware enhancements to the CDS and IDS
      o     Hardware enhancements to LSRMS at each SAN site
      o     ICO GPRS-related software enhancements to the following at each
            SAN site:

            -   LSRMS
            -   SBS-OMC

2.    SGSN(s) installed at sites specified by ICO (Quantity TBD)

3.    GGSN(s) installed at sites specified by ICO (Quantity TBD)

4.    Modification to HLR, MSSC/VLR to support ICO GPRS

5.    Software enhancements to SAN management system

6.    Intro-SAN subsystem connection and cabling and intermediate distribution
      frame

7.    Software enhancements to network management center

8.    ICO GPRS test fixtures/test equipment as specified in the ICO GPRS price
      proposal.

9.    System integration support facility

10.   Set of spares as specified in the ICO GPRS price proposal.

11.   Special purpose test equipment as defined in Annex 2 and Annex 9 of this
      SOW

12.   Channel manager loopback

13.   GPRS UT prototype compliant to the GPRS Requirements Specification

14.   Frame Relay Switches as specified by ICO.

15.   Backbone equipment as specified by ICO.

4. OPTIONS

The following items are separately deliverable at ICO's option provided that the
option for each is exercised within 120 days of the date of this Supply
Agreement:

1. DC UPS for the ICO GPRS

<PAGE>   626
--------------------------------------------------------------------------------
[LOGO]              Annex 1 - Contractor's GPRS Deliverables
--------------------------------------------------------------------------------

1. GENERAL

This Annex describes the Deliverables that the Contractor will provide to ICO.
The structure of this Annex is as follows:

1.1   Section 2 describes the deliverable documentation

1.2   Section 3 describes the deliverable major subsystems of the GPRS

1.3   Section 4 describes the options that ICO may exercise after execution of
      this contract change order

1.4   Section 5 describes the optional support and warranty services

1.5   Section 6 describes the performance and capacity requirements of the
      Deliverables

1.6   Section 7 describes the deliverable functions and features

1.7   Section 8 describes the detailed equipment list

1.8   Section 9 describes the services that shall be delivered

1.9   Section 10 describes information to be provided by the Contractor
      regarding the site installation conditions

1.10  Section 11 describes the IGF configuration data to be provided by the
      Contractor

2. DELIVERABLE DOCUMENTATION

The Contractor will deliver all documentation shown in Annex 6.

3. MAJOR SUBSYSTEMS OF THE ICO GPRS SYSTEM

The Contractor's deliverables shall together provide the functionality specified
in ICO GPRS Requirements Specification. The deliverables include equipment
specific to ICO GPRS along with software/hardware enhancements to the existing
circuit switched system for meeting the requirements specified.

<PAGE>   627
--------------------------------------------------------------------------------
[LOGO]              Annex 1 - Contractor's GPRS Deliverables
--------------------------------------------------------------------------------

2. Training

3. Freight and insurance

4. CE mark compliance

5. Basic expansion units

6. ICO GPRS Air Interface Protocol validation

7. Extended support services

5. OPTIONAL SUPPORT SERVICES AND EXTENDED WARRANTY

5.1 ADDITIONAL SUPPORT SERVICES DURING THE WARRANTY PERIOD

5.1.1 Upon election by ICO not later than 6 months before the scheduled
commencement of the warranty period specified in Clause 40 of the Agreement, the
Contractor will provide GPRS Deluxe Support Services as described in Subsection
5.3.

5.2 ADDITIONAL SUPPORT SERVICES DURING THE POST-WARRANTY PERIOD

5.2.1 EXTENDED BASIC WARRANTY

5.2.1.1 After completion of the Warranty Period specified in clause 40 of the
IGF Agreement as modified for GPRS, the warranty condition of clause 40 of the
Agreement may be extended on an annual basis for the GPRS.

5.2.1.2 ICO may elect to receive extended basic warranty services upon written
notice to the Contractor not later than 3 months prior to the completion of the
warranty period specified in clause 40 of this Change Order or in any subsequent
period of extended basic warranty services.

5.2.1.3 The ICO election(s) to receive basic warranty services shall be
continuous, without break in the periods of election.

<PAGE>   628
--------------------------------------------------------------------------------
[LOGO]              Annex 1 - Contractor's GPRS Deliverables
--------------------------------------------------------------------------------

5.2.2 EXTENDED GPRS DELUXE SUPPORT SERVICES

5.2.2.1 Provided ICO has elected to receive GPRS Deluxe Support Service in
accordance with Paragraph 5.1.1 above, ICO may elect to continue to receive GPRS
Deluxe Services upon written notice to the Contractor or the provider of the
Deluxe Support Services, given not later than 3 months prior to the completion
of the initial service period, or any subsequent renewals thereof. Such GPRS
Deluxe Support Service shall be provided in 2-year periods of service. The ICO
election(s) to receive GPRS Deluxe Support Services shall be continuous without
interruptions in the periods of election.

5.3 GPRS DELUXE SUPPORT SERVICES

5.3.1 The Deluxe Support for GPRS provides a full period Customer Assistance
Center (CAC) on call 24 hours a day, 7 days a week for all SAN locations.
Additionally, manufacturer will maintain a team of experts dedicated to ICO for
troubleshooting and support services of all GPRS manufacturer-supplied
equipment. Under the DELUXE support maintenance agreement, GPRS manufacturer
technical staff at the manufacturer's engineering center, dispatched to ICO
locations as required or temporarily placed at selected locations will maintain
capability of the GPRS manufacturer-supplied equipment, including:

      i.    Fault isolation and service restoration, in cooperation with the ICO
            technical staff.

      ii.   Problem investigation and problem resolution in cooperation with the
            GPRS manufacturer support team at the manufacturer's engineering
            center.

      iii.  Creation and reporting on trouble ticket system for GPRS equipment.

      iv.   System engineering for planning system extensions, and traffic
            sizing.

5.3.2 If ICO elects to exercise this option, the parties will agree on a
definitive scope of work consistent with the basis identified above, which may
include resident GPRS support staff at ICO selected locations.

5.3.3 The contractor shall provide GPRS Deluxe Support Services, which comprises
Systems Services, the content of which includes:

      i.    System Maintenance (as described in Section 5.4)

      ii.   Spares Replenishment

5.4 SYSTEM MAINTENANCE

System maintenance comprises the following services.

<PAGE>   629
--------------------------------------------------------------------------------
[LOGO]              Annex 1 - Contractor's GPRS Deliverables
--------------------------------------------------------------------------------

5.4.1 EMERGENCY SERVICES

The Contractor shall at any time in an emergency situation, when requested by
ICO, provide ICO with the Emergency Services consisting of telephone support and
onsite support.

Emergency service is defined as the network being incapable of carrying at least
80% of its rated traffic or being incapable of collecting billing information.

5.4.2 TROUBLE REPORT HANDLING SERVICES/TROUBLE REPORT GUIDELINE

The Contractor shall provide ICO with Trouble Report Handling Services relating
to ICO GPRS.

5.4.3 SOFTWARE UPDATE SERVICE

Any part of the Software found to cause a measurable deviation from the software
functionality, and which is not of an emergency character shall be corrected by
supplying software updates to ICO in accordance with the schedule supplied by
the Contractor in its Trouble Report Answer.

New or updated documentation on software updates will be furnished to ICO free
of charge.

The contractor shall implement and/or install, free of charge, the corrected
software, supplied in accordance with the Software Update Services, on one SAN
Site. ICO shall perform and be responsible for the implementation and/or
installation on the rest of the SAN, SRMC or NMC Sites.

5.4.4 CONSULTATION SERVICES

The contractor shall perform consultation services, mainly consisting of answers
and recommendations due to general system operation and maintenance routine
inquiries identified by ICO's support personnel. This shall be done during
normal business hours for the contractor.

5.4.5 SPARES REPLENISHMENT

The contractor shall replenish Spares acquired with the initial or subsequent
GPRS equipment procurement during the Deluxe warranty period.

5.4.6 EXCLUDED HARDWARE AND SOFTWARE

5.4.6.1 The system services do not cover hardware or software that is damaged
due to ICO's or any third-parties' misuse or mishandling, packing, repairs or
attempted modifications.

<PAGE>   630
--------------------------------------------------------------------------------
[LOGO]              Annex 1 - Contractor's GPRS Deliverables
--------------------------------------------------------------------------------

5.4.6.2 The system services shall not apply to any failure caused by
modification of the hardware or software without the Contractor's written
approval and failures caused by interworking equipment not supplied under the
Agreement.

5.4.6.3 Consumable parts such as lamps, fuses, batteries, are excluded from the
system services.

6. DELIVERABLE FUNCTIONS AND FEATURES

The Contractor shall deliver the ICO GPRS system with all of the associated
equipment and facilities including necessary software so that the functions and
features as described in the ICO GPRS Requirements Specification, will operate
as specified.

The capacity of the GPRS initial installation shall be (TBD). The capacity of
the GPRS expansion blocks shall be (TBD).

The schedule for delivery, installation, commissioning, integration and testing
of the equipment and its integration into the total IGF is set forth in Annex 4
of this SOW.

7. DELIVERABLE EQUIPMENT

7.1 The deliverable equipment is as specified in the price proposal.

8. DELIVERABLE SERVICES

8.1. The Contractor shall install, integrate, test, and hand over to ICO all
GPRS elements at 12 SAN sites.

8.2 The contractor shall provide training program as defined in Annex 5 of the
GPRS SOW.

9. SITE INSTALLATION DELIVERABLES

The Contractor shall provide:

9.1 Specifications defining all of the interface points and the associated
interface conditions far all equipment supplied in accordance with a schedule to
be agreed at the PDR.

9.2 The specification of the power consumption, including, but not limited to
start-up and normal operating loads and required no-fuse-breaker capacities and
quantities for all of the equipment that will

<PAGE>   631
--------------------------------------------------------------------------------
[LOGO]              Annex 1 - Contractor's GPRS Deliverables
--------------------------------------------------------------------------------

be supplied by the Contractor and for future expansion of the equipment, in
accordance with the NEC-provided Equipment List, within 1 month of contract
signature.

9.3 The specification of Equipment heat dissipation for all items of equipment
that will be supplied by the Contractor and for future expansion of the
Equipment, in accordance with the NEC-provided Equipment List, within 1 month of
contract signature.

9.4 Certifications, where required, to confirm that all the equipment supplied
for use in the country meets all local and federal regulations and or standards
applicable in that country. Certification of ETSI CE mark, if required, is
subject to execution of an associated contract option.

10. SYSTEM CONFIGURATION INFORMATION

ICO shall provide the configuration information in the format defined by the
Contractor. The Contractor shall configure the equipment as per the supplied
configuration information and shall provide ICO the details of the configuration
in an agreed-upon form at handover.

<PAGE>   632

--------------------------------------------------------------------------------
[LOGO]                  Annex 2 - Services and Equipment
--------------------------------------------------------------------------------

                                Provided by ICO

                                TABLE OF CONTENTS
<TABLE>
<S>                                                                   <C>

l.   GENERAL ....................................................     A2-2
2.   INFORMATION TO BE  PROVIDED BY ICO .........................     A2-2
3.   SERVICES TO BE PROVIDED BY ICO .............................     A2-2
4.   EQUIPMENT TO BE PROVIDED BY ICO ............................     A2-2
</TABLE>

<PAGE>   633

--------------------------------------------------------------------------------
[LOGO]                  Annex 2 - Services and Equipment
--------------------------------------------------------------------------------

I.    GENERAL

      ICO shall be responsible for the provision of the following information,
      services and equipment, by the specified dates shown in Appendix 1.

2.    INFORMATION TO BE PROVIDED BY ICO

      o     Refined traffic model for initial GPRS service

      o     SGSN and GGSN quantities and site locations

      o     ICO 04.60.A1 ICO Radio Link Control (RLC) Specification

      o     ICO 104.60.A2 ICO Media Access Control (MAC) Specification

      o     All other Air Interface specifications that may need modifications.

      o     Requirements of backbone and frame relay networks and related
            connectivity.

3.    SERVICES TO BE PROVIDED BY ICO

      ICO shall be responsible for providing the following:

3.1   Inter-Site SAN E1 digital communication links, terminated on a Data
      Distribution Frame (DDF), prior to the commencement of Phase 2-2
      Integration testing at each SAN site. The quantity of intersite SAN E1
      digital communication links required by the contractor, will be confirmed
      no later than the Final System Design Review.

3.2   Digital communication links from SAN to point of interconnect (i.e., to
      backbone and other public data networks), terminated on a DDF, prior to
      the commencement of GPRS Phase 2-2 Integration testing at each SAN site.
      The quantity of digital communication links, required by the Contractor,
      will be confirmed no later than the Final System Design Review.

3.3   Digital communications links, terminated on a DDF, between SANS and NMC.
      The quantity of digital communications links, required by the Contractor,
      will be confirmed no later than the Final System Design Review.

3.4   Free assignment and use of SAN and ICO satellite air time and inter-site
      circuits, as necessary and relevant to the job, for the duration of the
      ICONET setup and testing, by the Contractor.

4.    EQUIPMENT TO BE PROVIDED BY ICO

      ICO shall be responsible for providing the following:

<PAGE>   634

--------------------------------------------------------------------------------
[LOGO]                  Annex 2 - Services and Equipment
--------------------------------------------------------------------------------

4.1   Test equipment as listed in TABLE 2-1 at each SAN, for the duration of the
      installation and Test period in accordance with the Master Level Schedule,
      Annex 4.
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------
NO.   TEST EQUIPMENT                     MODEL NO.              QTY.     REMARKS
---   --------------                     ---------              ----     -------
------------------------------------------------------------------------------------
<S>   <C>                                <C>                    <C>      <C>
Standard Test Equipment
  1   Spectrum Analyzer                  HP 8563E Option 006    1 Set
  2   Microwave Counter                  HP 5350B               1 Set
  3   Power Meter                        HP 437B                1 Set
  4   Power Sensor for Power Meter       HP 8481A               1 Set
  5   Scalar Network Analyzer            HP 8757D               1 Set
                                         HP 85025A              2 Sets
  6   RF Sweep Generator                 HP 8350B               1 Set
                                         HP 83595C              1 Set
  7   Digital Multimeter                 HP 34401A              1 Set
  8   RF Step Attenuator 10 dB Step      HP 849B                1 Set
  9   RF Step Attenuator 1 dB Step       HP 8495B               1 Set
 10   Microwave Link Analyzer            ME 4501B               1 Set
 11   Printer                            YS-11841H              1 Set
 12   Coaxial Attenuator Set             HP 11582A              1 Set
 13   Coaxial Coupler (2 dB)             HP 773D                1 Set
 14   RF Coaxial Hybrid                  HP 11667A              1 Set
 15   IF Coaxial Hybrid                  TBA                    1 Set
 16   Digital Storage Oscilloscope (50   HP54520A               2 Sets
      MHz)
 17   Logic Analyzer (100 MHz, 32        HP 16500B              1 Set
      Channels)
 18   LAN Analyzer                       TBA                    1 Set
 19   Protocol Analyzer                  Siemens K1103          1 Set
 20   El/T1 Test Set                     TTC T Berd 209A        1 Set
 21   PC                                 TBA                    1 Set
 22   Ethernet Sniffer                   PT - 85EN/TJ           1 Set
 23   ISDN Tester                        TBA                    1 Set
 24   Data Logger                        TBA                    1 Set
 25   Power Analyzer                     TBA                    1 Set
------------------------------------------------------------------------------------
Special Test Equipment

 1    Satellite Channel Simulator        N/A                      1 Set
 2    PCS Checker                        N/A                      1 Set
------------------------------------------------------------------------------------
</TABLE>

                   TABLE 2-1 TEST EQUIPMENT FOR EACH SAN SITE

<PAGE>   635

--------------------------------------------------------------------------------
[LOGO]               Annex 3 - Installation Site Conditions
                                    for GPRS
--------------------------------------------------------------------------------

                                TABLE OF CONTENTS

<TABLE>
<S>                                                       <C>
 1.  GENERAL ..........................................    A3-2

</TABLE>

<PAGE>   636
--------------------------------------------------------------------------------
[LOGO]               Annex 3 - Installation Site Conditions
                                    for GPRS
--------------------------------------------------------------------------------

1.    GENERAL

      The requirements of the IGF SOW, Annex 3 Sections 4 through 8 and
      Appendices 1 through 4 shall apply as appropriate for the GPRS
      installations.

<PAGE>   637

                        Annex 4 - Program Management and
                       Implementation for the GPRS Supply

                                TABLE OF CONTENTS
<TABLE>
<S>                                                                       <C>

 1.  PROGRAM MANAGEMENT ..............................................    A4-2
 2.  MEETINGS ........................................................    A4-3
 3.  REPORTING .......................................................    A4-5
 4.  CHANGE PROCESS ..................................................    A4-6
 5.  QUALITY ASSURANCE ...............................................    A4-6
 APPENDIX 1 ..........................................................    A4-7

</TABLE>
<PAGE>   638

--------------------------------------------------------------------------------
                        Annex 4 - Program Management and
  [LOGO]               Implementation for the GPRS Supply
--------------------------------------------------------------------------------

1.     PROGRAM MANAGEMENT

1.1    PURPOSE

       This Annex sets out the scope of work related to the Program Management
       and identifies the GPRS supply schedule to be incorporated into the
       master level schedule.

1.2    Scope

1.2.1  The Contractor shall establish a Program Office in London (the "Program
       Office").

1.2.2  The Program Office shall provide the prime interface with ICO and shall
       be responsible for ensuring that the program is carried out in accordance
       with this Agreement.

1.2.3  The Contractor shall establish, implement, and maintain, during the
       course of this Agreement, a project control system and process that will
       ensure effective management.

1.2.4  The Program Management Plan, Document WG7-PL-60041, describes the program
       management process, the NEC team program, project and management
       structure of the NEC team, and any subcontractor and is included as
       reference 1 to TABLE 1 of Annex 6 of this SOW.

1.2.5  The Program Management Plan, Document WG7-PL-60041, shall be updated from
       time to time to reflect any changes.

1.2.6  The NEC Team Program Office project control system and management process
       shall include but not be limited to the following areas:

       -      Establish and maintain Contractor program office
       -      Project administration
       -      Schedule planning and control
       -      Project resources and organizations
       -      Project review and progress reporting
       -      Problem reporting and tracking
       -      Technical management and system engineering
       -      Risk management and reporting
       -      Quality assurance
       -      Configuration management
       -      Financial reporting

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1.2.7  The GPRS Supply Schedule, as attached to this Annex, reflects the
       baseline schedule for management and implementation of the project at the
       time of contract signature.

       It will be reviewed regularly by the Project Review Meeting (PRM) and
       revised throughout the life of the project to reflect changing schedule
       requirements. The MLS is subject to the following caveats;

       -      Subsystem PDR and FDR dates to be reviewed to correlate with the
              System PDR and FDR.

       -      PDR and FDR dates to be agreed upon for the special test
              equipment.

2.     MEETINGS

The Contractor shall conduct the following meetings.

2.1    PRELIMINARY DESIGN REVIEW (PDR) MEETING

       The purpose of the PDR is to inform ICO on the baseline concept,
       configuration, and design. It establishes the general compatibility and
       sizing of internal and external interfaces of the GPRS. The selected
       design concept and its feasibility shall be presented together with a
       tradeoff analysis if any is required. Partitioning of the requirements
       into further subsystem and equipment elements must be presented for
       review.

       The Contractor shall identify at least the following:

       -      Compliance with the ICO GPRS Requirements Specification

       -      The interfaces to other systems and subsystems and assumed
              functions of those subsystems

       -      The system and subsystem design concept including breakdown into
              major equipment blocks, the interfaces among such blocks of
              equipment, and equipment sizing

       -      Descriptions of key procedures with sequence charts and logic
              diagrams, if applicable, for the system, also showing interactions
              with other subsystems

       -      The impact on requirements for external interfaces of the IGF,
              including the Air Interface

       -      Report progress of work for the preparation of documentation for
              Phase 1 and Phase 2.1 GPRS testing

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       For the relevant section in the ICO GPRS Requirements Specification, the
       Contractor shall identify highlights, problems and difficulties, and any
       differences from the existing concepts. The Contractor shall indicate how
       it is intended to resolve any identified problem.

       Completion of the PDR establishes the initial design baseline and permits
       the detailed design to proceed with minimum risk of major changes being
       required later.

2.2    FINAL DESIGN REVIEW (FDR) MEETING

       The purpose of the FDR is to demonstrate to ICO that the baseline design
       of GPRS is complete. It verifies the compatibility of the interfaces and
       the compliance of the system and subsystems with the IGFR and with the
       design and performance established at the PDR based on appropriate
       engineering model tests, or design studies analyses. It also verifies the
       compatibility with the overall IGF system design. The review further
       establishes the adequacy of plans and preparation for integration, test
       and operation of the GPRS system.

       The Contractor shall refine and confirm the details presented at the PDR.
       The Contractor shall describe the way in which each of the subsystem and
       IGF system level issues identified before, during, and after the PDR have
       been resolved. The Contractor shall report the progress of work for the
       preparation of documentation of Phase 1 and Phase 2.1 GPRS testing.

       After completion of the FDR the baseline design shall be frozen.

2.3    COORDINATION OF REVIEW MEETINGS

       Prior to any given PDR or FDR, the responsible Subsystem or System
       Contractor shall coordinate with ICO to discuss issue and agree on
       expectations of the Review, including agenda, participation, location,
       and the level of details to be addressed.

2.4    SCHEDULE FOR REVIEW MEETINGS

       The schedule for review meetings will be agreed upon between the
       Contractor and ICO.

2.5    FORMAL PROGRAM REVIEW MEETINGS (PRMS)

       In addition, formal Program Review Meetings (PRMs) will be held with ICO
       on a monthly basis. The Contractor will prepare and present to ICO a
       status report for all program activities which will identify progress to
       date, risks, and issues and identify the work plan and milestones for the
       next period.

2.6    ICO may participate in the Contractor's Internal Review Meetings and at
       its own discretion, observe all Status and Design Reviews that the
       Contractor may require from its subcontractors. ICO shall bear all the
       travel and associated costs for its own staff.

<PAGE>   641

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2.7    All relevant meeting documentation, including meeting agendas, shall be
       made available to ICO in accordance with Annex 6, TABLE 1. The review
       meeting reports shall record all agreements and action items, with target
       completion dates, agreed between the Contractor and ICO during the
       relevant review meeting.

2.8    All material shall be provided in English. All documentation, test
       results, and reports shall be presented in a manner consistent with good
       commercial practice in content and quality of material, as well as
       reproduction. ITU terminology and SI units, where possible, shall be used
       in all technical and operational documentation and drawings.

2.9    Further reviews may be necessary from time to time to address progress or
       technical issues in critical or high risk areas; these will be agreed
       upon with ICO as required.

3.     REPORTING

       The content of the monthly report presented to the Program Review
       Meetings (PRMs) shall be:

i)     Progress achieved since the previous report
ii)    Problems encountered and resolution plan
iii)   Items or information required from ICO
iv)    Updated schedule (including activities of subcontractors)
v)     Reviews status (including reviews by subcontractors)
vi)    Action items status and resolution
vii)   Work planned for the upcoming month
viii)  Tests, including tests by subcontractors, planned for the coming month
ix)    Review major/critical risks and action plans

3.1    In addition to the monthly report on project progress, the Contractor
       will submit to ICO other reports as identified in Annex 6, Contract
       Documentation, and as required by this SOW.

3.2    Action items, issues and risks shall be tracked throughout the duration
       of the contract databases uniquely identifying each action item, issue,
       and risk shall be maintained. Each item shall include a description,
       originator, action, date raised, action plan, due date for completion,
       status and actual completion date. The Program Office shall be
       responsible for action items arising from the overall program and system
       design reviews and the appropriate contractor shall be responsible for
       action items arising from the relevant subsystem reviews.

<PAGE>   642

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4.     CHANGE PROCESS

4.1    The Contractor shall set up and maintain a Change Control Board (CCB),
       which shall be responsible for the processing of any proposed changes
       between the members of the Contractor's team.

4.2    The CCB shall also be responsible for the implementation of changes to
       this Agreement.

4.3    ICO representatives shall be members of the CCB.

5.     QUALITY ASSURANCE

5.1    The Contractor shall at all times maintain ISO 9001 accreditation. In
       addition, the Contractor shall prepare ICO-specific quality assurance
       plans ("Quality Assurance Plans"), which demonstrate ISO 9441 compliance,
       the necessary quality assurance practice, procedure, process and
       standards to the satisfaction of ICO.

5.2    The Program Office shall be responsible for ensuring that the Quality
       Assurance Plans are prepared, submitted to ICO for approval, implemented
       and that such procedures, process, and standards, etc., are maintained.
       The Quality Assurance Plans are referenced in TABLE I of Annex 6 of this
       SOW and their scheduled delivery contained on the Master Level Schedule
       in Appendix 1 to this Annex.

<PAGE>   643

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

               APPENDIX 1 TO GPRS SOW ANNEX-4 GPRS SUPPLY SCHEDULE

<TABLE>
<CAPTION>
     ID NO.                    TASK NAME                             START             FINISH
     ------                    ---------                             -----             ------
<S>                 <C>                                            <C>               <C>
      XXO           EDC (Note 1)                                   02-Jan-98             -
      XX1           PDR                                            07-Jul-98         10-Jul-98
      XX2           FDR                                            10-Jan-99         15-Jan-99
      XX3           Hardware Production Acquisition                02-Jan-99         01-Oct-99
      XX4           Implementation                                 02-Jul-98         01-Mar-00
      XX5           Phase-1 Testing                                01-Nov-99         01-Mar-00
      XX6           Ship to site (2 per month)                     02-Oct-99         02-Mar-00
      XX7           Onsite (2 per month)                           02-Nov-99         02-Apr-00
      XX8           Installation + Phase 2-1 (2 per month)         02-Jan-04         02-Jul-00
      XX9           Phase 2-2 Test Complete (2 per month)          02-Mar-00         02-Sep-00
     XX10           Phase-3 Testing                                03-Sep-00         03-Mar-01
</TABLE>

Note 1 In the event that ICO elects a delayed delivery schedule for the GPRS,
       all dates listed above shall be delayed accordingly.

<PAGE>   644

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  [LOGO]                Annex 5 - GPRS Training
--------------------------------------------------------------------------------

                               TABLE OF CONTENTS

<TABLE>
<S>                                                                              <C>
1. GENERAL ................................................................      A5-2

2. COURSE 1- OPERATION AND MAINTENANCE ......................................    A5-2

3. COURSE 2 - ICO INSTRUCTOR'S TRAINING ...................................      A5-3

4. COURSE 3 - SYSTEM ARCHITECTURE AND OPERATION AND MAINTENANCE ...........      A5-3

5. GENERAL TRAINING CONDITIONS ............................................      A5-4
</TABLE>

<PAGE>   645

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

1.     GENERAL

1.1    This Annex sets out the scope of the training courses for the ICO staff.

1.2    The training courses are summarized below:

1.2.1  On-site Operation and Maintenance Course at each SAN site

1.2.2  ICO Training Instructor Course at one SAN site and one NMC site

1.2.3  System Architecture and Operation and Maintenance Course at an NMC

1.3    The Contractor in conjunction with ICO will develop a detailed training
       plan within 6 months of execution of this Agreement.

1.4    ICO and the Contractor shall work closely together to develop a training
       program that does not impact on the Master Level Schedule that ensures
       availability of trained ICO staff at a time when O & M services are
       required.

2.     COURSE 1 - OPERATION AND MAINTENANCE

2.1    An On-site Operation and Maintenance course shall be carried out at each
       of the twelve SAN sites.

2.2    The purpose of this course is to provide the SAN operator's operation and
       maintenance staff with an understanding of the operation and maintenance
       of the relevant system and subsystems.

       The duration of the GPRS Course, for each of the twelve (12) SAN sites,
       shall be 10 days.

       The courses shall include the following elements for each subsystems:

       a)     Principles and functional design
       b)     Interfaces and interaction with other subsystems
       c)     Safety aspects
       d)     Operation (local and remote)

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       e)     Emergency operation
       f)     Routine maintenance
       g)     Troubleshooting

2.3    The number of SAN operator's students, participating in each of the above
       courses, shall be a maximum of 10 students.

2.4    The Contractor shall provide background material and any other training
       course notes to supplement the operation and maintenance handbook.

2.5    The Contractor shall allow "over the shoulder" observation, during the
       equipment installation and testing.

3.     COURSE 2 - ICO INSTRUCTOR'S TRAINING

3.1    A training course shall be held for ICO's own training instructors.

3.2    The purpose of this course is to train ICO's training instructors so that
       they will be able to carry out their own training courses on the SAN
       system architecture, as well as the operation and maintenance of the SAN
       and NMC systems.

3.3    The duration of the on-site ICO instructor's training course shall be 15
       days. The starting date is to be mutually agreed during the course of the
       Supply Agreement.

3.4    The number of ICO training instructors, participating in each of the
       above courses, shall be a maximum of 15 students.

3.5    The ICO training instructors training course shall be held at one of the
       twelve (12) SAN sites, to be elected by ICO.

3.6    The Contractor shall provide background material and any other training
       course notes to supplement the operation and maintenance handbook.

4.     COURSE 3 - SYSTEM ARCHITECTURE AND OPERATION AND MAINTENANCE

<PAGE>   647

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4.1    A training course shall be held for training ICO'S engineering staff at
       one of the NMC sits, to be elected by ICO.

4.2    The purpose of this course is to provide the ICO engineers with an
       understanding of the system architecture and overview of the operation
       and maintenance of all the SAN's from the NMC.

4.3    The duration of the System Architecture and Operation and Maintenance
       training course shall be 5 days.

4.4    The number of ICO engineers, participating in each of the above courses,
       shall be a maximum of 10 students.

5.     GENERAL TRAINING CONDITIONS

5.1    Training shall consist of a combination of lecture style training and
       hands-on training. The style of training shall be dependent on the
       particular training course, and convenience of the training syllabus.

5.2    ICO shall make the relevant system and subsystems available as required
       for the purposes of hands-on training.

5.3    The students shall, as a minimum, have background knowledge and
       understanding of the overall SAN and NMC system and SBS courses of the
       IGF Supply Contract.

5.4    Training shall be carried out during normal local working hours nominally
       from 9:00 a.m. -4:00 p.m. 5 days a week.

5.5    ICO shall make the required staff available during these hours for the
       training course.

5.6    Training courses shall be conducted in the English language by technical
       training experts from the Contractor. The trainers shall be experienced
       in training staff whose mother tongue is not English. The students shall,
       as a minimum, have a good working knowledge and understanding of the
       English language though.

<PAGE>   648

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5.7    One copy of training notes shall be provided for each student in the
       English language. All the training documentation shall be provided in the
       English language and shall preferably use SI units. A copy of the
       training material shall be supplied to both IGO and the SAN operator one
       month before the commencement of the training session.

5.8    ICO shall supply the following training facilities at each training site
       for the duration of the training:

       -      Training room with seating and lighting for at least 10 students
              and one instructor.

       -      Overhead Projector Facilities for transparency presentation.

       -      Video Recorder and Television facilities

       -      White Board Facilities

       -      PC Overhead Projector Facilities

       -      Photocopy Machine

       -      Printer

       -      Phone and fax with international line access

<PAGE>   649

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  [LOGO]                Annex 6 - GPRS Documentation
--------------------------------------------------------------------------------

                               TABLE OF CONTENTS

<TABLE>
<S>                                                          <C>
1. GENERAL ............................................      A6-2

2. DOCUMENTATION MANAGEMENT AND CONTROL ...............      A6-2

3. EQUIPMENT HANDBOOK .................................      A6-2

4. AS-BUILT INFORMATION ...............................      A6-3
</TABLE>

<PAGE>   650

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1.     GENERAL

1.1    This Annex sets out the documentation that shall be provided by the
       Contractor in accordance with the requirements of this SOW.

1.2    The Contractor shall provide all documentation to ICO Global
       Communications in accordance with Table 1 of this Annex and shall be
       responsible for maintaining the currency of the documentation
       distribution of all copies and revisions to ICO.

1.3    The language used in all documentation submitted shall be English.
       Consistency of nomenclature shall be maintained between documents and
       each document shall contain a list of all abbreviations used. The SI
       system of units shall be used wherever possible throughout all documents.
       Common document standards shall be followed and the title page of all
       documents shall clearly identify:

a)     Document reference number
b)     Revision status
c)     Date of Issue
d)     Title of document
e)     Approval status
f)     Classification
g)     Author
h)     Distribution

1.4    In addition to hard copy, all document's shall also be submitted as
       electronic files) in MS Office(TM) or compatible format, or where
       appropriate, CD-ROM disk medium. Some documentation may be provided via
       electronic mail over the Internet to the address [xxxxxx@i-co-co-uk] by
       agreement with ICO. All documentation provided over the Internet will be
       sent as encrypted files using MS Exchange(TM) or system providing
       equivalent security.

       The switching O&M libraries will only be provided on CD ROM Disk medium.

2.     DOCUMENTATION MANAGEMENT AND CONTROL

       The documentation management and control process will be performed by the
       Contractor in accordance with the requirements contained in the Program
       Management Plan referred to in Table 1 of this Annex.

3.     EQUIPMENT HANDBOOK

The Equipment Handbook shall contain as a minimum:

<PAGE>   651

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

       -      Detailed description of the subsystem addressed in the relevant
              section including top-level functional block diagrams, electrical
              and technical performance characteristics.

       -      All relevant interfaces and characteristics of signals and data
              messages across those.

       -      Conditions to be observed during normal operation of the system.

       -      Anomalies, which may occur during normal operations and how to
              rectify those.

       -      Procedures for periodic maintenance and calibration if applicable
              and their recommended schedules.

       -      Corrective maintenance and fault-finding methods at system level.

4.     AS-BUILT INFORMATION

The "As-Built" Information data will be provided for the management center sites
and on a per SAN and NMC Site basis covering all the equipment and antenna areas
and shall include:

       -      Rack layout

       -      Elevation Drawings

       -      Interconnection and Cabling Diagrams

       -      Hardware Inventory

       -      Data Transcript files for the Switching elements

<PAGE>   652

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                       TABLE 1 - DOCUMENTATION SUBMISSION

<TABLE>
<CAPTION>
                                                                                       NO. OF COPIES
ITEM                                        SUBMISSION                                 (REF. TO NOTES BELOW)
----                                        ----------                                 ---------------------
<S>                                         <C>                                        <C>
Programme Mgt Plan (WG-PL-                                                             2
60041)
The Contractor's Standard QA Plans                                                     2
ICO-Specific Contractor's QA Plans          10 working days before FDR                 2
                                            meeting
Programme Review Meeting (PRM)              At ICO 2 working days before               2 + Internet
Reports                                     PRM meeting
Preliminary Design Reviews                  1 week before PDR meeting                  5
Documentation Pack (system and
subsystem)
Final Design Reviews Documentation          10 working days before FDR                 5
Pack (system and subsystem)                 meeting
In-Plant Ph. l Test Requirements            Draft 7 months prior to start of           2
                                            tests. Final 6 months prior to
                                            start of Tests
In-Plant Ph. l Test Plan                    Draft 3 months prior to start of           2
                                            tests. Final 2 months prior to
                                            start of tests
In Plant Ph. l Script                       l month prior to start of tests
In-Plant Ph. l Test Data Report             Draft within 1 month after                 2 (+1 to each relevant install.
                                            completion of tests. Final 3               site)
                                            months after completion of
                                            tests
</TABLE>

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--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Item                                         Submission                                   No. of Copies
                                                                                          (Ref. to notes below)
-----------------------------------------------------------------------------------------------------------------------------------
<S>                                          <C>                                          <C>
Shipping Information for all                 On shipment                                  2 (+1 to each install. site)
Shipments to site and ICO
-----------------------------------------------------------------------------------------------------------------------------------
Onsite Ph. 2-1 Test Requirements             Draft 7 months prior to start of             2
                                             tests. Final 6 months prior to
                                             start of Tests
-----------------------------------------------------------------------------------------------------------------------------------
Onsite Ph. 2-1 Test Plan                     Draft 3 months prior to start of             2 (+1 to each test site)
                                             tests. Final 2 months prior to
                                             start of tests
-----------------------------------------------------------------------------------------------------------------------------------
Onsite Ph. 2-1 Script                        1 month prior to start .of tests
-----------------------------------------------------------------------------------------------------------------------------------
Onsite Ph. 2-1 Test Data Report              Draft within 1 month after                   2 (+1 to each test site)
                                             completion of tests. Final 3
                                             months after completion of
                                             tests
-----------------------------------------------------------------------------------------------------------------------------------
Onsite Ph. 3 Test Plan Requirements          Draft 7 months prior to start of             2
                                             tests. Final 6 months prior to
                                             start of Tests
-----------------------------------------------------------------------------------------------------------------------------------
Onsite Ph. 3 Test Plan                       Draft 3 months prior to start of             2
                                             tests. Final 2 months prior to
                                             start of tests
-----------------------------------------------------------------------------------------------------------------------------------
Onsite Ph. 3 Test Script                     1 month prior to start of tests              2 (+1 to each test site)
-----------------------------------------------------------------------------------------------------------------------------------
Onsite Ph. 3 Test Data Report                Draft within 1 month after                   2 (+1 to each test site)
                                             completion of tests. Final 3
                                             months after completion of
                                             tests
-----------------------------------------------------------------------------------------------------------------------------------
Training Syllabus                            3 months before start of                     2
                                             training sessions
-----------------------------------------------------------------------------------------------------------------------------------
Training Manuals and Documentation           1 month before start of                      2 (+10 to each training site)
(inc notes)                                  training sessions
-----------------------------------------------------------------------------------------------------------------------------------
O&M Equipment Handbooks                      At equipment delivery                        2 (+1 each install. site)
-----------------------------------------------------------------------------------------------------------------------------------
As-Built for SAN and NMC Sites               1 month after completion of                  2 (+1 to each install. Site)
                                             site work
-----------------------------------------------------------------------------------------------------------------------------------
Air Interface Protocol Validation            As detailed in Annex II                      5 copies
(AIPV) - (optional)
-----------------------------------------------------------------------------------------------------------------------------------
ICONET Integration                           As detailed in Annex 9                       2 (+1 to each test site)
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>   654

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                   Annex 7 - Site Working Arrangements for
[LOGO]                             GPRS
--------------------------------------------------------------------------------

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                    <C>
1. INTRODUCTION .................................................      A7-2

2. WORKING HOURS AND ACCESS TO SITE .............................      A7-2

3. SITE RESPONSIBILITIES AND SAFE WORKING PRACTICES .............      A7-2

4. SITE COMMUNICATIONS ..........................................      A7-3

5. SITE IMPLEMENTATION PERIODS ..................................      A7-3
</TABLE>

<PAGE>   655

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                   Annex 7 - Site Working Arrangements for
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--------------------------------------------------------------------------------

1.     INTRODUCTION

1.1    This Annex describes the scope of the site working arrangements and safe
       working practices.

1.2    The scope of the site installation work includes the following:

1.2.1  Site management

1.2.2  Installation of the equipment

1.2.3  Installation and termination of the IFL cables

1.2.4  Testing of the equipment

2.     WORKING HOURS AND ACCESS TO SITE

2.1    The Contractor shall be entitled to request access to all sites on a 24
       hours per day, 7 days a week basis so that it may conduct all necessary
       inspection, site visits, installation, testing or fault rectification.

2.2    The Contractor shall provide notice to ICO at thirty (30) days in
       advance, where possible, of all personnel requiring access to the site.

2.3    The Contractor shall submit to ICO a list of the names of the site staff
       and visitors and produce satisfactory evidence as to their identity so
       that the name on each individual pass card can be filled in before the
       passes are issued.

2.4    Pass cards shall not be transferred and will be valid only for the person
       to whom they are issued, and shall be returned to ICO when the individual
       leaves the site.

3.     SITE RESPONSIBILITIES AND SAFE WORKING PRACTICES

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

3.1    The Contractor shall keep all existing roads and pavements, used by the
       Contractor, clear of mud and debris. The Contractor shall make good all
       damage it causes to any road, footpath or other property during the
       execution of the work.

3.2    The Contractor shall keep all internal work areas clean and free of
       debris and dust and shall remove all packing materials.

3.3    While on the site, the Contractor and any Subcontractors' personnel shall
       at all times comply with the local site and security arrangements.

4.     SITE COMMUNICATIONS

4.1    The Contractor shall be responsible for all site communications charges
       during the installation and testing activities.

4.2    The Contractor shall invoice ICO and ICO shall reimburse all
       communications charges on an actual cost basis.

5.     SITE IMPLEMENTATION PERIODS

5.1    The schedule dates and sequence of installation at the SAN sites is shown
       in Master Level Schedule in Annex 4.

5.2    Periods when weather conditions may impact on external installation work
       shall be taken into consideration when preparing installation schedules.

<PAGE>   657

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  [LOGO]                  Annex 8 - GPRS Test Plan
--------------------------------------------------------------------------------

                               TABLE OF CONTENTS

<TABLE>
<S>                                                          <C>
1. INTRODUCTION .......................................      A8-2

2. FACTORY PREINTEGRATION TEST FACILITY ...............      A8-2

3. ICO GPRS TEST PHASES ...............................      A8-2

4. GPRS DEMONSTRATION .................................      A8-4
</TABLE>

<PAGE>   658

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  [LOGO]                  Annex 8 - GPRS Test Plan
--------------------------------------------------------------------------------

1.     INTRODUCTION

1.1    This Annex describes the GPRS Test Plan for the supply contract. The aim
       of testing is to verify GPRS functionality and performance within the
       IGF.

1.2    Testing will be conducted in the same fashion as IGF testing, as shown in
       Annex 8 of the IGF SOW. Exceptions to this are TBD.

1.3    Final installation of the GPRS software and hardware may take place at
       SANs with live traffic; in such case, measures will be taken to minimize
       the impact on the live system. GPRS Phase 2-2 and 3 testing will be
       separate from other IGF testing and will not begin until the other IGF
       deliverables have received Level-1 acceptance from ICO.

1.4    The ICO GPRS unit and subsystem testing shall cover testing as specified
       in Specific ICO GPRS Requirements Specification (HNS-12075).

1.5    This Annex covers both in-factory and in-field testing, and formal and
       informal test campaigns. The detailed requirements, plans, acceptance
       criteria, scripts and Verification Cross Reference Matrices (VCRMs) for
       each section of the testing shall be developed during the course of the
       Supply Agreement.

1.6    The Contractor shall provide documentation for formal IGF GPRS testing
       for ICO's review and approval.

2.     FACTORY PREINTEGRATION TEST FACILITY

2.1    These informal tests combine all GPRS subsystems incrementally to provide
       confidence of operation of ICO GPRS prior to delivery to site.

2.2    The contractor shall provide Factory Pre-integration Test Facilities for
       use in the integration and development testing.

3.     ICO GPRS TEST PHASES

3.1    PHASE I, IN-FACTORY GPRS UNIT AND SUBSYSTEM TESTING

<PAGE>   659

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3.1.1  Unit and subsystem testing of ICO GPRS hardware and software shall follow
       the same methodology as defined in the IGF SOW. Unit testing shall be
       informal and subsystem testing shall be formal.

3.2    PHASE 2-I, GPRS INSTALLATION TESTING.

3.2.1  Installation testing of ICO GPRS hardware and software shall follow the
       same methodology as defined in the IGF SOW. Installation testing shall be
       formal and shall be completed before delivered equipment is released for
       further phases of testing or use.

3.2.2  Phase 2-1 testing will commence only with ICO's agreement that Phase 1
       testing has been successfully completed.

3.3    PHASE 2-2, ON-SITE GPR,S INTEGRATION TESTING AT THE FIRST SAN.

3.3.1  Phase 2-2 on-site testing of ICO GPRS hardware and software at the first
       site shall follow the same methodology as defined in the IGF SOW. This
       testing shall be informal.

3.3.2  Phase 2 testing at other SANs will commence after baseline software has
       been corrected for all subsystems, based on field testing at the first
       SAN.

3.3.3  Testing will proceed progressively until all SANs have been successfully
       checked out.

3.3.4  A reduced set of Phase tests will be performed at SANS 2-12. This testing
       shall be formal.

3.4    PHASE 3 IGF GPRS SYSTEM TESTING

3.4.1  Phase 3 system testing of ICO GPRS hardware and software shall follow the
       same methodology as defined in the IGF SOW. This testing shall be formal.

3.4.2  Phase 3 ICO GPRS System Testing shall be performed in field by the system
       test team upon completion of the Phase 2-2 on-site GPRS integration
       testing and after Level-1 acceptance of other IGF deliverables at the
       site.

<PAGE>   660

--------------------------------------------------------------------------------
  [LOGO]                  Annex 8 - GPRS Test Plan
--------------------------------------------------------------------------------

4.     GPRS DEMONSTRATION

4.1    The Contractor shall perform an End-to-End Packet Data Service
       Demonstration of the IGP. The demonstration shall confirm the GPRS
       functionality of the equipment together with the other elements of the
       ICO system, e.g., satellite(s), prototype user terminal (UT) and actual
       connection to the public switched packet data networks (PSPDNs).

4.2    The Contractor, with ICO assistance, shall demonstrate the establishment
       of end-to-end packet data connections, transmission and reception of
       packet data traffic, and connection cleardowns.

4.3    The demonstration shall show connections between an ICO data UT and a
       PSPDN terminal.

4.4    ICO's cooperation shall be a mandatory requirement for preparation of the
       SAN site and performing the demonstration. Specifically, all external
       components, being supplied by ICO and integrated into the ICONET, shall
       either already be satisfactorily in-service, or shall have undergone
       prior acceptance testing as a part of their individual Supply Agreements.

4.5    The following list outlines the basic prerequisites that shall be met, by
       the Contractor, for the demonstration to be performed:

       -      The Contractor shall have completed Phase 2 Testing at the
              selected SAN site.

4.6    The following list outlines the basic prerequisites that shall be met, by
       ICO, for the demonstration to be performed.

       -      PSPDN connections are working.

       -      UTs capable of GPRS service are available.

       -      PSPDN terminal and any necessary subscription available.

<PAGE>   661

--------------------------------------------------------------------------------
  [LOGO]                  Annex 9 - ICO GPRS Integration
--------------------------------------------------------------------------------

                                TABLE OF CONTENTS

<TABLE>
<S>                                           <C>
1. INTRODUCTION ........................      A9-2

2. DELIVERABLE DOCUMENTS ...............      A9-2
</TABLE>

<PAGE>   662

--------------------------------------------------------------------------------
  [LOGO]                  Annex 9 - ICO GPRS Integration
--------------------------------------------------------------------------------

1.     INTRODUCTION

1.1    This Annex provides the framework required to scope, support and guide
       the integration of the ICO GPRS with the other elements of the ICO System
       ("ICONET GPRS Integration") and the responsibilities of the Contractor
       and ICO respectively. The ICONET GPRS Integration shall be an option
       exercisable by ICO.

1.2    The ICONET Integration shall be in accordance with the IGF ICONET
       Integration, as documented in Annex 9 of the IGF SOW, except as noted
       below.

1.3    The Master ICONET GPRS Integration Plan Document (MIGIPD) shall be
       developed. It shall specify the range of ICONET Integration to be carried
       out.

1.4    This ICONET Integration shall include the following Campaigns with the
       prototype UT.

       -      SAN-UT Interworking

       -      SAN-Satellites-UT Integration

       -      SAN-Gateways-PSPDNs Integration

       -      End-to-End GPRS System Technical Assessment

       -      Overall Network Monitor and Control

2.     DELIVERABLE DOCUMENTS

2.1    The Contractor shall provide the following documentation to ICO for
       ICONET GPRS Integration. ICO shall approve the final documents.

<TABLE>
<S>                                                 <C>
- ICONET Integration Requirement (Draft)            7 months prior to the start date
- ICONET Integration Requirements (Final)           6 months prior to the start date
- ICONET Integration Plan (Draft)                   3 months prior to the start date
- ICONET Integration Plan (Final)                   2 months prior to the start date
- ICONET Integration Script                         1 month prior to the start date
- ICONET Integration Report (Preliminary)           1 month after completion of integration
- ICONET Integration Report (Formal)                3 months after completion of integration
</TABLE>

<PAGE>   663

--------------------------------------------------------------------------------
                            Annex 10 - ICO GPRS
[LOGO]                      Acceptance Criteria
--------------------------------------------------------------------------------

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                    <C>
1. GENERAL ......................................................      2

2. PROBLEM CLASSIFICATION .......................................      2

3. REPRODUCIBLE FAULT CLEARANCE .................................      2

4. NONREPRODUCIBLE FAULT CLEARANCE ..............................      3

5. LEVEL 1 ACCEPTANCE CRITERIA ..................................      4

6. LEVEL 2 ACCEPTANCE CRITERIA ..................................      4

7. FAULT AND TEMPORARY FIX TRACKING AND REPORTING ...............      5

8. DEFERRED FUNCTIONALITY ACCEPTANCE CRITERIA ...................      5
</TABLE>

<PAGE>   664

--------------------------------------------------------------------------------
                            Annex 10 - ICO GPRS
[LOGO]                      Acceptance Criteria
--------------------------------------------------------------------------------

1.     GENERAL

1.1    This Annex sets out the Acceptance Criteria for the GPRS.

2.     PROBLEM CLASSIFICATION

2.1    The following definitions are guidelines for the classification of
       problems.

<TABLE>
<CAPTION>
Type of effect of PROBLEM                            Critical            Major                   Minor
--------------------------------------------------------------------------------------------------------------
<S>                                                  <C>                 <C>                     <C>
Ability to carry services defined in the GPRS        Capacity            Capacity <80%           Capacity
Requirements Specification.                          <50%                                        <100%
--------------------------------------------------------------------------------------------------------------
Ability to charge accurately for services            Any impact
defined in the GPRS Requirements
Specification.
--------------------------------------------------------------------------------------------------------------
Performance of end user services                     Service             Significant             Minor
                                                     unusable            degradation             degradation
--------------------------------------------------------------------------------------------------------------
Performance of administration and support                                Service                 Any
services                                                                 unusable                degradation
--------------------------------------------------------------------------------------------------------------
Provision of service features or                                         Not work or not         Any
supplementary services                                                   available               degradation
--------------------------------------------------------------------------------------------------------------
Reproducible or nonreproducible service              >1 per week         <1 per week
disruption to multiple data sessions
simultaneously
--------------------------------------------------------------------------------------------------------------
Session failures with non-reproducible                                   Affect more             Affect more
characteristics                                                          than TBD of an          than TBD of
                                                                         identified type         an identified
                                                                                                 type
--------------------------------------------------------------------------------------------------------------
Additional attention by operational staff            Constant            Frequent (less          Occasional
                                                                         than once per           (less than
                                                                         hour)                   once per day)
--------------------------------------------------------------------------------------------------------------
</TABLE>

2.2    Any dispute that may arise out of the classification of problems, or
       about whether a problem has been fixed to the satisfaction of both
       parties, shall be dealt with by the Dispute Resolution procedures set out
       in the Terms and Conditions.

3.     REPRODUCIBLE FAULT CLEARANCE

3.1    CRITICAL PROBLEMS

<PAGE>   665

--------------------------------------------------------------------------------
                            Annex 10 - ICO GPRS
[LOGO]                      Acceptance Criteria
--------------------------------------------------------------------------------

3.1.1  Any temporary fix for previously occurring critical problems shall be
       replaced with the corresponding permanent fix within 3 months.

3.2    MAJOR PROBLEMS

3.2.1  Any temporary fix for previously occurring major problems shall be
       replaced with a corresponding permanent fix within 3 months unless
       otherwise mutually agreed.

3.2.2  The fix for all other major problems, which do not have a temporary fix,
       shall be implemented and demonstrated no later than 3 months after
       Acceptance unless otherwise mutually agreed.

3.3    MINOR PROBLEMS

3.3.1  Any temporary fix for previously occurring minor problems shall be
       replaced with a corresponding permanent fix within 6 months unless
       otherwise mutually agreed.

3.3.2  The fix for all minor problems, which do not have a temporary fix, shall
       be implemented and demonstrated no later than 6 months after Acceptance
       unless otherwise mutually agreed.

4.     NONREPRODUCIBLE FAULT CLEARANCE

4.1    These are faults that occur rarely or cannot be reproduced in the test
       environment.

4.2    CRITICAL PROBLEMS

4.2.1  Any temporary fix for previously occurring nonreproducible critical
       problem shall be replaced with a corresponding permanent fix within a
       target period of 3 months.

4.3    MAJOR PROBLEMS

4.3.1  Any temporary fix for previously occurring nonreproducible major problems
       shall be replaced with a corresponding permanent fix within a target
       period of 3 months unless otherwise mutually agreed.

<PAGE>   666

--------------------------------------------------------------------------------
                            Annex 10 - ICO GPRS
[LOGO]                      Acceptance Criteria
--------------------------------------------------------------------------------

4.3.2  All nonreproducible major problems shall be investigated by the addition
       of a diagnostic change or development of an agreed procedure to provide
       more detailed information so that progress can be made toward fixing the
       fault. The situation shall be reviewed within 1 month of the first
       recurrence.

4.4    MINOR PROBLEMS

4.4.1  Any temporary fix for previously occurring nonreproducible minor problems
       shall be replaced with a corresponding permanent fix within a target
       period of 6 months unless otherwise mutually agreed.

4.4.2  All non-reproducible minor problems shall be investigated by the addition
       of a diagnostic change or development of an agreed procedure to provide
       more detailed information so that progress can be made toward fixing the
       fault. The situation shall be reviewed within 2 months of the first
       recurrence.

5.     LEVEL 1 ACCEPTANCE CRITERIA

5.1    Level 1 acceptance shall be applied to each individual SAN or NMC site
       based on the results of all Phase 2 GPRS Tests.

5.2    Level 1 acceptance shall be granted when the SAN or NMC has no more than
       the following numbers of faults:

<TABLE>
<CAPTION>
Fault Class                   Number of Faults                Number of Temporary Firm
--------------------------------------------------------------------------------------
<S>                           <C>                             <C>
Critical                      0                               5
--------------------------------------------------------------------------------------
Major:                        0
End User Services                                             20
--------------------------------------------------------------------------------------
Major: Others                 5                               20
--------------------------------------------------------------------------------------
Minor: End User Services      20                              100
--------------------------------------------------------------------------------------
Minor: Others                 See Note 1                      See Note 1
--------------------------------------------------------------------------------------
</TABLE>

Note 1:  All minor other problems shall be recorded and reviewed at the time of
         acceptance and prioritized with target date of 6 months to clear.

6.     LEVEL 2 ACCEPTANCE CRITERIA

6.1    Level 2 acceptance shall be applied to the GPRS as a whale based on the
       results of all Phase 3 tests.

<PAGE>   667

--------------------------------------------------------------------------------
                Annex 11 - Air Interface Signaling Protocol
[LOGO]                  Validation of GPRS Features
--------------------------------------------------------------------------------

                               TABLE OF CONTENTS

<TABLE>
<S>                                                <C>
1.  OBJECTIVES AND SCOPE ....................      2

2. TASK ORGANIZATION ........................      2
</TABLE>

<PAGE>   668

--------------------------------------------------------------------------------
                           Annex 10 - ICO GPRS
  [LOGO]                   Acceptance Criteria
--------------------------------------------------------------------------------

6.2    Level 2 acceptance shall be granted when the following criteria are met:

6.2.1  The GPRS as a whole has no more than the following numbers of faults:

<TABLE>
<CAPTION>
Fault Class                      Number of Faults         Number of Temporary Fixes
-----------------------------------------------------------------------------------
<S>                              <C>                      <C>
Critical                         0                        5
-----------------------------------------------------------------------------------
Major:                           0                        20
End User Services
-----------------------------------------------------------------------------------
Major: Others                    5                        20
-----------------------------------------------------------------------------------
Minor: End User Services         20                       100
-----------------------------------------------------------------------------------
Minor: Others                    See Note 1               See Note 1
-----------------------------------------------------------------------------------
</TABLE>

Note 1:  All minor other problems shall be recorded and reviewed at the time of
         acceptance and prioritized with target date of 6 months to clear.

6.2.2  All Deliverables defined in this Statement of Work have been delivered,
       in accordance with the Statement of Work.

6.2.3  All Works required in this Statement of Work have been completed.

6.2.4  Sections 6.2.2 and 6.2.3 shall not apply to the Deliverables and items of
       the Works that are shown in a Master Level Schedule to be provided by the
       Contractor after the date of Phase 3 Test completion.

7.     FAULT AND TEMPORARY FIX TRACKING AND REPORTING

7.1    The procedures described in Annex 8 of the Statement of Work shall be
       applied to the faults and temporary fixes arising from Level 1 and Level
       2 Acceptance Criteria.

8.     DEFERRED FUNCTIONALITY ACCEPTANCE CRITERIA

8.1    Deferred functionality acceptance shall apply to each element of
       functionality that is defined as to be delivered later than the IGF as a
       whole.

8.2    Deferred functionality acceptance shall be granted when the following
       criteria are met:

       1.     The functionality has passed all formal tests using the
              operational GPRS System.
       2.     The associated training, which is agreed to be required and
              purchased, has been completed.
       3.     The associated documentation has been delivered.

<PAGE>   669

--------------------------------------------------------------------------------
                Annex 11 - Air Interface Signaling Protocol
[LOGO]                  Validation of GPRS Features
--------------------------------------------------------------------------------

1.     OBJECTIVES

       The Contractor shall revalidate the ICO Air Interface signaling protocols
       as modified by ICO to incorporate the GPRS. (Option, if exercised by ICO)

2.     TASK ORGANIZATION

2.1    The Contractor shall modify the simulation software of the IGF Air
       Interface Validation processors of the IGF supply contract to incorporate
       the new GPRS service feature performance defined in the ICO Air Interface
       Specification as modified and according to the requirements of the IGF
       SOW, Annex 11.

2.2    The Contractor shall conduct the ICO Air Interface Validation simulation
       and document the results subject to the requirements of the IGF SOW,
       Annex 11.

<PAGE>   670

MEMO                                                                  [ICO LOGO]

  To: Melvin Pointer

From: George Wiginton

Date: 22 October 1997

Copy:

                                                     ICO Global Communications
                                                     1 Queen Caroline Street
                                                     Hammersmith London W6 9BN
                                                     United Kingdom

Subject: CONTRACT CHANGE ORDER NO 1                  TEL +44(0) 181 600 1000
                                                     FAX +44 (0) 181 600 1199
                                                     WEBSITE //www.ico.com

Dear Melvin

Please find attached Contract Change Order No 1 of the Supply Agreement
Contract.

This will now form part of the Supply Agreement dated March 3rd 1997 between the
parties effective as from July 1st 1997.

Please file this with your copy of the main body of the Supply Agreement, Copy
No 41.

Regards

George Wiginton

<PAGE>   671

                                                              NEC PROGRAM OFFICE
                                                                     ICO Project
                                                                       5th FLOOR
                                                                   HORATIO HOUSE
                                                            77-85 FULL PALACE RD
                                                                     HAMMERSMITH
                                                                   LONDON W6 8JC
                                                                  UNITED KINGDOM
                                                       Tel: +44 (0) 181 600 4200
                                  Admin Office, WG 7 - Fax: +44 (0) 181 600 4290
                              Contract Office, WG 1-6 - Fax: +44(0) 181 600 1295

                                                                 15 October 1997

ICO Global Communications (Operations) Limited
c/o ICO Services Limited
1 Queen Caroline Street
London W6 9BN
England
For the attention of:
Mr. G L Titzer, Supervising Officer

Dear Sirs

SUBJECT:  GPRS STUDY - CHANGE ORDER NO 1 TO THE SUPPLY AGREEMENT DATED
          MARCH 3RD 1997 BETWEEN NEC CORPORATION AND ICO GLOBAL
          COMMUNICATIONS (OPERATIONS) LIMITED

We refer to the recently executed Change Order No 1 between our two companies
and in particular the Schedule contained in Table 9-2 of Attachment 1 thereto,
"Proposal for ICO GPRS Requirements Specification Development Contract".

NEC Corporation wishes to propose modifications to the Schedule, as follow:

<TABLE>
<S>                                                    <C>
Submission of technical proposal                       Week of 27 October 1997
Final review of GPRS material, in London               Week of 3 November 1997
Final submission of integrated GPRS
package (Price, draft Terms & Conditions and
Statement of Work for implementation and, final
technical requirements)                                Week of 10 November 1997
</TABLE>

<PAGE>   672

There is no change in the Schedule for the "Final Specific Inputs to Market Plan
and Business Case for ICO GPRS (06 October 1997).

All Air Interface Change Requests required to be provided in accordance with
Table 9-2 of Attachment 1 have been provided by Hughes Network Systems. Inc.,
this having been completed by 03 October 1997.

Notwithstanding the delay in the provision of certain Deliverables, as described
above, there will be no effect upon any other part of the Change Order No: l.

ICO Global Communications (Operations) Limited is requested to sign, date and
return the enclosed copy of this letter to signify its agreement with the
proposal and undertakings recorded herein.

Yours faithfully,

/s/ TADAO FURUKAWA
--------------------------------------
Tadao Furukawa
Contractor's Authorised Representative
NEC Corporation

The NEC Corporation proposal for modifying the Schedule contained in Table 9-2
of Attachment 1 of the Change Order No 1 to the Supply Agreement dated March 3rd
1997 between NEC Corporation and ICO Global Communications (Operations) Limited
and the associated undertakings, all as set out above, are agreed by ICO Global
Communications (Operations) Limited.

 /s/ G L TITZER                                              20/10/97
----------------------------------------------    ------------------------------
G L Titzer                                        Date
Supervising Officer
ICO Global Communications (Operations) Limited

<PAGE>   673
                                                                          4-6-32

                                                CONTRACT NUMBER: ICOO 97-1016/GW
                                                               CHANGE ORDER NO.2

                               2ND DECEMBER 1997

                               CHANGE ORDER NO.2

                                     TO THE

                                SUPPLY AGREEMENT

                                    BETWEEN

                                NEC CORPORATION

                                      and

                    ICO GLOBAL COMMUNICATIONS HOLDINGS (BV)

                                                                 COPY NUMBER 41
                                                                            ----
<PAGE>   674
                                                                          4-6-32

                                                CONTRACT NUMBER: ICOO 97-1016/GW
                                                               CHANGE ORDER NO.2

                               2ND DECEMBER 1997

                               CHANGE ORDER NO.2

                                     TO THE

                                SUPPLY AGREEMENT

                                    BETWEEN

                                NEC CORPORATION

                                      and

                    ICO GLOBAL COMMUNICATIONS HOLDINGS (BV)
<PAGE>   675
--------------------------------------------------------------------------------
[ICO LOGO]                                                   CHANGE ORDER NO: 2

            IGF SUPPLY AGREEMENT
            CONTRACT NO ICOO97 - 1016/GW

ICO                                                     DATE: 2ND DECEMBER, 1977

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

In accordance with clause 9 of the Supply Agreement dated March 3rd 1997
between NEC Corporation and ICO Global Communications Holdings BV, the
Agreement is hereby amended as follows:

--------------------------------------------------------------------------------
Amended Clauses               Attachment 1
--------------------------------------------------------------------------------
Amended Schedules             Attachment 2
--------------------------------------------------------------------------------
Amended Annexes               Attachment 3
--------------------------------------------------------------------------------
Amended Price                 Included in Attachment 2
--------------------------------------------------------------------------------
Other Amendments              Attachment 4 (Annex 4, Appendix 1 - Master Level
                                            Schedule)
--------------------------------------------------------------------------------
Reference Correspondence      SA0084/WG7/19970523/GT dated 23 May 1997 - 60 &
                              61 Day Options; SA0005/WG7/19970523/GT dated
                              23 May 1997 - Payload Command System;
                              SA0201/WG7/19970630/GT dated 30 June 1997 - 120
                              Day Options
--------------------------------------------------------------------------------
This Change Order No 2 will now form part of the Supply Agreement dated March
3rd 1997 between the parties and shall be effective in the case of 60 & 61 Day
Options and Payload Command System Change of Requirements from 23 May 1997 and
in the case of 120 Day Options from 30 June 1997, and shall be governed by and
construed in accordance with the laws of England.

Except for the changes set out above, this Change Order No 2 makes no further
amendments or modifications to the Agreement.
--------------------------------------------------------------------------------

Signed for and on behalf of               Signed for and on behalf of
ICO GLOBAL COMMUNICATIONS HOLDINGS BV     NEC CORPORATION

/s/ ***                                   /s/ ***
----------------------------------        --------------------------------------
Supervising Officer                       Contractor's Authorized Representative
[In the air over Russia]                  [Tokyo]

1 December 1997                           2 December 1997
----------------------------------        --------------------------------------
Date                                      Date
--------------------------------------------------------------------------------
<PAGE>   676
                                                         [ICO LOGO & LETTERHEAD]

23 May 1997
Our Ref: SA0084/WG7/19970523/GT

NEC Corporation
c/o NEC-ICO Project Office
5th Floor, Horatio House
77-85 Fulham Palace Road
Hammersmith
London W6 8JC

For the attention of Mr Tadeo Furukawa

Dear Sirs

SUBJECT:  EXERCISE OF 60 AND 61 DAY OPTIONS
REFS:     SUPPLY AGREEMENT, ANNEX 1, SECTIONS 4.6 TO 4.8
          ICO LETTER: SA/0040/WGA/19970429/KS
          NEC LETTERS: IUKC-136 AND IUKC-134

This letter is to confirm, subject to concluding a mutually agreed Change Order
to effect the required modifications to the Supply Agreement, ICO's intention
to exercise the following Options:

     1. 2 satellite position determination using differential time measurements
     2. Service area mapping using tiles of variable size and shape
     3. Encryption On/Off based on service area
     4. UT frequency assignment by service area
     5. Service area mapping using guard band
     6. 2 satellite position determination using differential frequency
     7. Legal interception based on subscriber location, including LIMF.

The FOB equipment, installation and test prices for these items are:
     Items 1 to 4 inclusive - as established in Schedule 9 of the Supply
     Agreement
     Items 5 and 6 - as offered in IUKC - 136
     Item 7 - as offered in IUKC - 134.

The appropriate modifications to Schedule 13 of the Supply Agreement, ICONET
Ground Facilities Requirements Document (IGFR), will form part of the eventual
Change Order required to implement ICO's exercise of the above Options. These
will be agreed with NEC as part of the preparation of the formal Contract
Change Order.

CONFIDENTIAL AND PROPRIETARY TO ICO GLOBAL COMMUNICATIONS
<PAGE>   677
Please acknowledge receipt of this letter, confirming NEC's acceptance of the
exercise of the above Options and advising the responsible person within the
NEC Project Office with whom ICO should develop and finalise the requisite
Change Order.

Yours faithfully

GL Titzer
Supervising Officer

cc: NEC Documentation Manager
    J Singh, K Smith, P Poskett, K Hungerford, C Forsyth, G Wiginton,
    ICO Project Office

                                     Page 2

CONFIDENTIAL AND PROPRIETARY TO ICO GLOBAL COMMUNICATIONS
<PAGE>   678
                                                         [ICO LOGO & LETTERHEAD]

23 May 1997
Our Ref: SA0085/WG7/19970523/GT

NEC Corporation
c/o NEC-ICO Project Office
5th Floor, Horatio House
77-85 Fulham Palace Road
Hammersmith
London W6 8JC

For the attention of Mr Tadeo Furukawa

Dear Sirs

SUBJECT:  PAYLOAD COMMAND SYSTEM - CHANGE OF REQUIREMENTS
REFS:     NEC LETTERS: IUKC-104 AND IUKC-133

This letter is to confirm ICO's intention to contract Hughes Space &
Communications (HSC) for the provision of the stored-command portion of the
Payload Command System (PCS). Accordingly, as from the date of this letter, NEC
is requested to cease all further work on the stored-command portion of the PCS.

As a result of this direction to NEC, modifications to the Supply Agreement
will be required -

     - to eliminate the stored-command element of the PCS from NEC's scope of
       work
     - to reconfirm the HPN-PCS Command Modem capability within the Baseline HPN
       Subsystem within NEC's scope of work, all as set out in the "Case-1: HSC
       provides PCS" attachment to IUKC-104.

These modifications to the Supply Agreement will be implemented by means of a
mutually agreed Change Order. NEC is requested to advise the responsible
person(s) within the NEC Project Office for progressing and finalising this
Change Order.

In order to progress the completion of the Change Order expeditiously, NEC is
requested to advise the actual costs that it has incurred, up to the date of
this letter, in relation to the stored-command element of the PCS work,
together with any other information that it believes necessary for
consideration to form a part of the Change Order.

One (1) copy of the current Payload Space Ground Interface Control Document
(HSC Doc No. SS80447-HOO-001) will be provided early the week of 26 May as it
completes an ICO internal review. Please note that this document is available
to ICO in hard copy form only. ICO will be providing NEC with a further
relevant document - Operational Concept - as soon as this document's approval
process is completed, which is expected to be in the early part of the week
commencing 26th May 1997. In order to facilitate the arrangements for the
interface required for the design and implementation of ICO's PCS requirements,

CONFIDENTIAL AND PROPRIETARY TO ICO GLOBAL COMMUNICATIONS
<PAGE>   679
NEC is invited to attend a meeting with representatives of HSC arranged for 2nd
June 1997, in Los Angeles. Please confirm to Dr Keith Smith that NEC will be
able to attend this meeting, advising the NEC representatives who will be
present.

NEC is requested to make available all information required by its Team members,
Sub-Contractors and HSC in order to promptly progress this and all Supply
Agreement work, subject only to appropriate, Non-Disclosure Agreements being in
place. ICO offers its full co-operation to NEC and the NEC Team members to
facilitate the timely dissemination of required information.

Yours faithfully

G L Titzer
Supervising Officer

cc:  Dr. A Fujii, NEC Documentation Manager

     J Singh, K Smith, R Aspden, P Poskett, M Coggin, K Hungerford, L Ghedia,
     M Caruso, C Forsyth, G Wiginton, ICO Project Office

Page 2
Confidential and Proprietary to ICO Global Communications
<PAGE>   680
                                                       [ICO LOGO and LETTERHEAD]

30 June 1997
Our Ref: SA0201/WG7/19970630/GT

NEC Corporation
c/o NEC Project Office
5th Floor, Horatio House
77-85 Fulham Palace Road
Hammersmith
London W6 8JC

For the attention of Mr Tadeo Furukawa

Dear Sirs

SUBJECT:  120 DAY OPTIONS
REFS:     SUPPLY AGREEMENT, ANNEX 1, SECTIONS 4.1 TO 4.5
          NEX LETTERS: IUKC-118, IUKC-163, IUKC-168, IUKC-171, 1UKC-173

This letter is to confirm, subject to concluding a mutually agreed Change Order
to effect the required modifications to the Supply Agreement dated March 3rd
1997 and receipt of satisfactory confirmation of the items detailed below,
ICO's intention to exercise the following 120 Day Options:

1.   One Integrated Messaging Platform as defined in your Documents 370068B
     (Technical Proposal for ICO Messaging) and 370069B (RFI Response
     Comparison) which replace the offer as defined in Annex 1, Section 4.1 and
     associated documents. ICO's understanding of the definition of the
     Integrated Messaging Platform is based upon the referenced documents which
     have yet to be submitted formally by NEC. Any variation between the
     documents that have been made available to ICO to date and those yet to be
     submitted formally could result in an adjustment to the exercise of this
     Option.

2.   One IS.41 to-ICO IWF with a software licence for 50,000 subscribers and
     software release R1 - referenced in Annex 1, Section 4.1 and as further
     defined in the attachment to IUKC-163, including the options offered
     therin,

3.   One ICO-to-IS.41 IWF with a software licence for 50,000 subscribers and
     software release R1 - referenced in Annex 1, Section 4.1 and as further
     defined in the attachment to IUKC-163, including the options offered
     therin.

CONFIDENTIAL AND PROPRIETARY TO ICO GLOBAL COMMUNICATIONS
<PAGE>   681
The FOB equipment, installation and test, and freight and insurance prices for
these items are:

     Item 1 - as set out in IUKC-171
     Item 2 and 3 - as established in Schedule 9 of the Supply Agreement and the
     clarifications and modifications thereto.

The exercise of these Options is subject to receipt of satisfactory confirmation
of the following outstanding items:

a) for the Integrated Messaging Platform -
     - confirmation of acceptable pricing for UPS for sizes other than 56,000
       subscribers
     - confirmation of extended warranty costs
     - confirmation that the delivery of this functionality is consistent with,
       if not better than, achievement of the Level 2 Acceptance date as
       established in the current Master Level Schedule
     - confirmation of acceptable pricing for the installation of incremental
       upgrades

b) for the IS.41 - to - ICO and ICO - to IS.41 IWFs-
     - confirmation that the delivery of these functionalities are consistent
       with, if not better than, achievement of the Level 2 Acceptance date as
       established in the current Master Level Schedule.

ICO wishes to record its appreciation for the NEC Team's extension, until 31
December 1997 (ref NEC IUKC168), of the offers detailed in IUKC-118 for the
PDC-to-ICO and GSM IWFs--the remaining 120 Day Options. ICO agrees to the
meetings proposed in IUKC-168 for a review of the status of these offers with a
view to finally resolving the issue of the future supply of these platforms by
the end of December 1997.

Please acknowledge receipt of this letter confirming NEC's acceptance of ICO's
exercise of the 120 Day Options specified above.

Yours faithfully,

G L Titzer
Supervising Officer

cc:    Mr T Shibahara, Mr J Shewring, NEC Documentation Manager
       J Singh, K Smith, M Coggin, P Poskett, G Wiginton, ICO Project Office

                                    Page 2

          CONFIDENTIAL AND PROPRIETARY TO ICO GLOBAL CONNUNICATIONS
<PAGE>   682

                        CHANGE ORDER NO: 2 ATTACHMENT 1
<PAGE>   683
ATTACHMENT 1
AMENDED CLAUSE

Clause 15.1 is amended to read as follows:

15.1    ICO shall pay an aggregate total price of US$618,668,700 for the
complete performance by the Contractor of all of its obligations under this
Agreement together with a further sum of US$21,655,600 (in respect of freight
and insurance as referred to in the Pricing Schedule), which amounts shall be
subject to adjustment only in respect of (i) changes agreed under clause 9 and
(ii) the cost of any Option items upon exercise of the relevant Option or other
items or services purchased under clause 46; (such aggregate amount, as so
adjusted, being referred to as the "Price"). Any Instalment payment made shall
discharge the relevant portion of the Price and shall not be reclaimable by ICO
but without prejudice to ICO's right to claim damages and/or indemnity in
accordance with the provisions of this Agreement in the event of any breach by
the Contractor.
<PAGE>   684
                        CHANGE ORDER NO: 2 ATTACHMENT 2

1. Schedule 9 - Pricing Schedule

2. Schedule 9 - Pricing Schedule Appendix 1

3. Schedule 9 - Pricing Schedule Appendix 2

4. Schedule 11 - Payment Schedule Classification Summary

5. Schedule 13 - IGFR Version 26

6. Schedule 14 - Statement Of Work

<PAGE>   685
                        CHANGE ORDER NO: 2 ATTACHMENT 2

1. Schedule 9 - Pricing Schedule

<PAGE>   686
                                                                 24 October 1997

                                Pricing Schedule

<PAGE>   687
                                                                 24 October 1997

1.       GENERAL

This Section describes:

-        in Section 2, the SA price schedule for the deliverables and services
         that the Contractor(s) will provide within the scope of this Supply
         Agreement

-        in Section 3, the future equipment (1) pricing

-        in Section 4 the future equipment order process

-        in Section 5, the pricing of future basic package software releases

-        in Section 6, the process and pricing of the development of ICO
         specific functionality.

2.    SA PRICE SCHEDULE

2.1.     Price of the SA

2.1.1.1  Table 1 summarises the price of the SA. Appendix 1 to this schedule
         describes the individual prices which are summarised in Items 1 to 9
         inclusive of Table 1. Appendix 2 to this schedule provides a detailed
         price list including individual equipment components. Appendix 3 to
         this Schedule provides the detailed price list including average hourly
         rates for the ICONET Integration Testing.

                     TABLE 1 - SA PRICE SUMMARY (US$'OOOs)

________________________________________________________________________________

             ITEM            PURCHASE         OPTIONS        PURCHASE + OPTIONS
________________________________________________________________________________
1    RFT                         *                  *                     *
________________________________________________________________________________
2    SBS                         *                  *                     *
________________________________________________________________________________
3    PCS                         *                  *                     *
________________________________________________________________________________
4    Switch                      *                  *                     *
________________________________________________________________________________
5    TNM                         *                  *                     *
________________________________________________________________________________
6    NMS SRMC                    *                  *                     *
________________________________________________________________________________
7    S.T.E                       *                  *                     *
________________________________________________________________________________
8    SI & PM                     *                  *                     *
________________________________________________________________________________
9    Ax & B                      *                  *                     *
________________________________________________________________________________
     TOTAL OF ITEMS 1 TO 9       *                  *                     *
     (EXCLUDING FREIGHT &
     INSURANCE)
________________________________________________________________________________

_______________________

(1)   For the purposes of this Schedule, the term 'equipment' throughout means
      hardware and the associated operating software.

      * Confidential Treatment Requested and the Redacted Material has been
        separately filed with the Commission.
<PAGE>   688
                                                                 24 October 1997

________________________________________________________________________________

             ITEM               PURCHASE       OPTIONS       PURCHASE + OPTIONS
________________________________________________________________________________
     Freight and Insurance         *              *                   *
________________________________________________________________________________
10   GPRS Study (Change Order
     No. 1)                        *
________________________________________________________________________________
     ICONET Integration            *              *                    *
________________________________________________________________________________

2.1.1.2.   In the event that ICO does not elect to purchase from the Contractor
           Freight and Insurance as set out in Table 1 within 30 days of the
           date of this Agreement, ICO may make alternate arrangements. In the
           event that ICO opts to make such arrangements, the parties shall meet
           to arrange any necessary modifications to the Agreement.

2.1.1.3.   For the avoidance of doubt, the Price specified in clause 15.1 of
           this Agreement shall remain unchanged unless and until ICO opts for
           alternate arrangements and the initial payment shall be calculated
           and paid by ICO as if Freight and Insurance were included. In the
           event that ICO does opt out of the Freight and Insurance
           arrangements, the related proportion of the initial payment by ICO
           to NEC shall not be repaid to ICO but shall be set off against future
           payments by ICO under this Agreement.

2.1.1.4.   In addition to the prices described in Paragraph 2.1.1.1 the
           Contractor will recharge ICO for:

           i.    Inter-Site telecommunication charges. These charges are for the
                 purposes of telephone and fax between SAN, NMC, BCC sites.

           ii.   Inter-Site testing telecommunications charges. These charges
                 are for the purposes of providing telecommunication links
                 between the development sites; NEC/A in Melbourne, NEC/J in
                 Yokohama, and HNS in Germantown, to enable the Contractor to
                 undertake factory integration testing of the IGF.

2.1.1.5    The Contractor will re-charge ICO the costs of Inter-Site testing
           telecommunications charges as incurred plus a handling fee. The total
           charge to ICO will be no more   *   for the whole of the SA.
           ICO will reimburse the Contractor on the basis of the invoice plus
           supporting detail.

2.1.1.6    The Contractor will re-charge ICO the costs of Inter-Site
           telecommunications charges as incurred plus a handling fee. The total
           charge to ICO will be no more   *   for the whole of the SA.
           ICO will reimburse the Contractor on the basis of the invoice plus
           supporting detail.

3.   FUTURE EQUIPMENT PRICING

3.1.       INTRODUCTION

3.1.1.1.   This Section describes the future pricing for:

           i.    traffic capacity and subscriber expansion and the associated
                 hardware and software
           ii.   the installation and testing

           iii.  Systems Integration and Project Management.

3.1.1.2.   The price adjustments that shall be applied for future orders are
           defined in Section 3.5 of this Schedule.

       * Confidential Treatment Requested and the Redacted Material has been
         separately filed with the Commission.

                                    1 of 11
<PAGE>   689
                                                                 24 October 1997

3.1.1.3.  The future prices computed according to the indices and processes are
          quoted as 'not to exceed' prices.

3.1.1.4.  ICO is being, and will continue to be offered reasonable future
          pricing consistent with ICO volumes and functionality.

3.1.1.5.  The price is quoted on FOB place of shipment basis. The interpretation
          of FOB is in accordance with the SA.

3.1.1.6.  The following items will be quoted separately at the time of order
          for individual element capacity increases:

          i.    Training

          ii.   Spares

3.1.1.7.  Freight and Insurance will be quoted separately at the time of order
          in consideration to the number of blocks to be ordered and the place
          of the SAN sites where these blocks will be delivered.

3.2       UNIT EQUIPMENT

The following sections describe the expansion block price for each subsystem.
          RFTs.

3.2.1.1.  The IGF RFT is designed to transmit and receive the maximum C-band
          feeder link capacity of 750 traffic carriers assuming that up to 473
          carriers can be transmitted by one HPA with a total maximum EIRP of
          77 dBW. It is also designed to transmit one TT&C carrier at the
          maximum EIRP of 81 dBW in an emergency case.

3.2.1.2.  The Contractor will negotiate with ICO, as and when requested by ICO,
          for the supply of additional RFT systems.

3.2.2.    SBS and DC Uninterruptable Power Supply System for SBS

3.2.2.1.  The number of SBS Expansion Blocks required to support the traffic
          capacity of a SBS subsystem shall be computed with the formulae shown
          in Table 2. N is number of additional expansion blocks beyond the
          Initial Size (320 Erlangs) required to make an SBS capable of
          supporting the traffic for a given "Erlang size".

                      TABLE 2 -- SBS TRAFFIC/BLOCK RELATIONSHIP
<TABLE>
<CAPTION>
                   SBS RATED TRAFFIC                        NUMBER OF BLOCKS (N)
          ==========================================================================
          <S>                                          <C>

                                        *

</TABLE>

3.2.2.2.  The traffic supported by each expansion block/SBS size are target
          throughputs under presently known conditions. The Contractor shall
          endeavour to exceed the target throughputs. However, unforeseen
          circumstances may change these formula, in which case the Contractor
          and the Purchaser agree to inform

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

<PAGE>   690
                                                                 24 October 1997

          each other of such circumstances and agree to work together to
          minimise the impact of unforeseen conditions.

3.2.2.3.  The SBS Expansion Block also requires an expansion of the DC
          Uninterruptable Power Supply System (DC UPS) over and above that
          provided in an SBS capable of supporting 320 Erlangs. For every 9
          expansion blocks an additional block of DC UPS will be required.

3.2.2.4.  The unit price, inclusive of installation and testing, and the
          equipment that comprises an SBS Expansion Block and DC UPS, is shown
          in Table 3. Table 3 also shows the price for providing CE Mark
          compliance for an SBS Expansion Block for a country where it may be
          required.

                 TABLE 3 - SBS EXPANSION BLOCK AND DC UPS PRICE

<TABLE>
<CAPTION>
NOS.                DESCRIPTION                   QUANTITY       PRICE(US$'000s)
--------------------------------------------------------------------------------
<S>       <C>                                      <C>           <C>
I         SBS EXPANSION BLOCK (CHANNEL                                *
          UNIT AND CHANNEL MANAGER)
--------------------------------------------------------------------------------
1         CHANNEL UNIT
--------------------------------------------------------------------------------
1.1       Channel Unit Chassis(CUC)                      *
--------------------------------------------------------------------------------
1.1.1     CUBs                                           *
--------------------------------------------------------------------------------
1.1.2     Slot Processor Module(SPM)                     *
--------------------------------------------------------------------------------
1.1.3     Modulator Demodulator Module(MDM)              *
--------------------------------------------------------------------------------
1.1.4     Clock Distribution Unit(CDM)                   *
--------------------------------------------------------------------------------
1.1.5     Common Functions Module(CFM)                   *
--------------------------------------------------------------------------------
1.1.6     Channel Unit Rack Base Units                   *
--------------------------------------------------------------------------------
2         CHANNEL MANAGER
--------------------------------------------------------------------------------
2.1       Channel Manager Chassis(ChM)                   *
--------------------------------------------------------------------------------
2.1.1     G.703 Interface                                *
--------------------------------------------------------------------------------
2.1.2     Control Processor Modules(CPM)                 *
--------------------------------------------------------------------------------
2.1.2.1   Channel Access Processor(CAP)                  *
--------------------------------------------------------------------------------
2.1.2.2   Channel Control Processor(CCP)                 *
--------------------------------------------------------------------------------
2.1.2.3   Global Resource Process(GRP)                   *
--------------------------------------------------------------------------------
2.1.3     Switching Transcoder Module(STM)               *
--------------------------------------------------------------------------------
2.1.4     10 Base2 Ethernet                              *
--------------------------------------------------------------------------------
2.2       Channel Manager Rack(CMR) w 2                  *
          Chassis
--------------------------------------------------------------------------------
2.2.1     Fan                                            *
--------------------------------------------------------------------------------
2.2.2     Power Distribution Unit                        *
--------------------------------------------------------------------------------
3         IF and Frequency Distribution Expansion        *
--------------------------------------------------------------------------------
4         INSTALLATION MATERIALS
          (Includes power/signal cables)
--------------------------------------------------------------------------------
4.1       Power Cables                                    *
--------------------------------------------------------------------------------
4.2       I/F Cables                                      *
--------------------------------------------------------------------------------
</TABLE>

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   691
                                                                 24 October 1997

<TABLE>
<CAPTION>
NOS.      DESCRIPTION                   QUANTITY       PRICE (US$'000s)
-----------------------------------------------------------------------
<S>      <C>                           <C>            <C>
4.3       LAN Cables                    Included

4.4       Sync Cabling                         *

5         Installation and Test                *

II        SBS DC UPS (AC/DC CONVERTERS &       *              *
          BATTERIES FOR 2 HOURS OPERATION)

III       CE MARK COMPLIANCE PER BLOCK         *              *
</TABLE>

3.2.3.     TNM

3.2.3.1.   The TNM capacity expansion equipment comprises four parts:

           i.     Vocoder/mux (Voc/Mux) traffic expansion. Each Voc/Mux block
                  shall support   *   .

           ii.    C&C rack (19 inch). One rack is required for Voc/Mux capacity
                  expansion of   *   .

           iii.   Voice Codec Royalty per Voc/Mux Block.

           iv.    TNM(RPC) computer expansion. A TNM(RPC) may be required when a
                  TNM rated throughput exceeds   *   . The additional
                  capacity provided by a TNM(RPC) is   *   .

3.2.3.2.  The Contractor shall endeavour to exceed the target throughputs.
          However, unforeseen circumstances may change these formula, in which
          case the Contractor and the Purchaser agree to inform each other of
          such circumstances and agree to work together to minimise the impact
          of unforeseen conditions.

3.2.3.3.  The Voc/Mux Block, the C&C rack, the voice Codec Royalty and TNM(RPC)
          price and associated equipment are shown in Table 4.

                 TABLE 4 - TNM TRAFFIC AND COMPUTER BLOCK PRICE

<TABLE>
<CAPTION>
NOS.      DESCRIPTION                        QUANTITY      PRICE (US$'000s)
---------------------------------------------------------------------------
<S>      <C>                                <C>            <C>
I         VOC/MUX BLOCK                                            *

1         VOCODER/MUX Unit

1.1       Vocoder/Mux Card                       *

1.2       Control Card                           *

1.3       I/O Card                               *

1.4       19 inch 6RU Shelf                      *

1.5       Power Supply Shelf                     *

1.6       Fan Unit                               *

2         Installation Materials                 *

II        C&C RACK (19 INCH).                    *                  *

III       VOICE CODEC ROYALTY                    *                  *
          (SUBJECT TO PARAGRAPH 3.2.3.4.)
</TABLE>

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   692
24 October 1997

<TABLE>
<S>           <C>                                         <C>        <C>
IV             TNM (RPC)                                               *

1.1            TNM Computer (RPC)

1.1.1          Sparc 1000 with 2 processors, 512MB          *
               MM, 5GB HD, Ethernet Interfaces, 8mm
               Tape Drive and CD ROM Drive

1.1.2          E1 Interface                                 *

1.2            Ethernet Hubs/Routers and Accessories        *

1.3            TNM O&M Software Licence                     *

1.4            Software Licences

1.4.1          Solaris Operating System with Media          *

1.4.2          Solstice - Runtime                           *

1.4.3          An additional TNM O&M Software               *
               licence for management of 2 sets of 1:1
               PRC.
</TABLE>

3.2.3.4.  The limit to the Contractors liability for the Voice Codec Royalty is
             *   for the licence and   *   per channel. Should the charges
          for the Voice Codec exceed these limits, NEC will recharge ICO at cost
          the excess over and above   *   and   *   per channel.

3.2.3.5.  The Volume discount rates that apply to purchases of I) TNM Voc/Mux
          blocks and II) C&C Rack capacity are shown in Table 5

 TABLE 5 - TNM VOC/MUX AND C&C RACK VOLUME DISCOUNTS

<TABLE>
<CAPTION>
     ERLANGS                      DISCOUNT FACTOR
--------------------------------------------------
<S>                                    <C>
 from 113     to 565                     *
 from 678    to 1,130                    *
from 1,243   to 2,260                    *
from 2,373   to 3,955                    *
from 4,068   to 6,667                    *
from 6,780   and above                   *
</TABLE>

3.2.3.6.  The installation charges for the expansion of Voc/Mux and TNM (RPC)
          capacity of a TNM are shown in Table 6.

                  TABLE 6 - TNM EXPANSION INSTALLATION PRICES

<TABLE>
<CAPTION>
NOS.     DESCRIPTION                           QUANTITY       PRICE (US$'000s)
------------------------------------------------------------------------------
<S>     <C>                                   <C>             <C>

1        VOC/MUX BLOCK EXPANSION

1.1      First Voc/Mux block per SAN           per block              *

1.2      Each Voc/Mux block in addition to     per block              *
         first block per SAN
</TABLE>

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   693
                                                                 24 October 1997

<TABLE>
<S>     <C>                               <C>                 <C>
2       TNM (RPC)
2.1     Per TNM (RPC) if as a separate    per TNM (RPC)
        installation                                            *
2.2     Per TNM (RPC) if installed at     per TNM (RPC)
        same time as capacity expansion
</TABLE>

3.2.3.7.  The discount rates that apply to the first Voc/Mux block installation
          charges are shown in Table 7. The number of SANs shows the number of
          SANs installed in the upgrade program.

TABLE 7 - FIRST EXPANSION BLOCK DISCOUNT RATES
<TABLE>
<CAPTION>
NUMBER OF SANs       DISCOUNT FACTOR
--------------       ---------------
<S>                  <C>
 1 to 3
 4 to 5
 6 to 7                     *
 8 to 9
   10
11 to 12
</TABLE>

3.2.3.8.  The volume discount rates that apply to the installation charges for
          the additional Voc/Mux blocks per SAN are shown in Table 8.

TABLE 8 - ADDITIONAL BLOCK DISCOUNT RATES
<TABLE>
<CAPTION>
NUMBER OF VOC/MUX
      BLOCKS               DISCOUNT FACTOR
-----------------          ---------------
<S>                        <C>
   1 to 2
   3 to 4
   5 to 6                        *
   7 to 8
   9 to 10
 11 and above
</TABLE>

3.2.4.    MSSC/VLR

3.2.4.1.  The MSSC/VLR reference price is shown in Table 9. The reference price
          includes:

          i.    the equipment including the hardware and the software licence
                fee

          ii.   installation and test charge.

          * Confidential Treatment Requested and the Redacted Material has been
            separately filed with the Commission.
<PAGE>   694
                                                                 24 October 1997

                       TABLE 9 - MSSC/VLR REFERENCE PRICE

                        [MSSC/VLR REFERENCE PRICE CHART]

3.2.4.2.  The pricing curve is intended to give ICO sound guidance to estimate
          prices for future switch growth. The curve has been developed using
          the current SA dimensioning assumptions as defined in Section 9.2 of
          the IGFR. Changes in these assumptions may lead to some adjustment in
          the price for any given switch capacity.

3.2.4.3.  The Contractor will provide ICO with a price for each upgrade based on
          the actual traffic and network configuration at the time of order.

3.2.4.4.  Table 10 illustrates how the price for incremental growth is
          calculated. In this example, the cost of growing a switch with an
          initial capacity of   *   to a new capacity of   *   would be
          approximately   *

          * Confidential Treatment Requested and the Redacted Material has been
            separately filed with the Commission.
<PAGE>   695
                                                                 24 October 1997

TABLE 10 - REFERENCE ILLUSTRATION OF PRICE FOR INCREMENTAL GROWTH OF AN MSSC/VLR

[TABLE 10 LINE GRAPH]

3.2.4.5.   Table 11 shows in tabular form the points for computing the graph
shown in Table 9.

TABLE 11 - MSSC/VLR PRICING GRAPH POINTS
<TABLE>
<CAPTION>
<S>                      <C>
CAPACITY (ERLANGS)        PRICE (US$'000s)
------------------------------------------
               *                       *
------------------------------------------
               *                       *
------------------------------------------
               *                       *
------------------------------------------
               *                       *
------------------------------------------
               *                       *
------------------------------------------
               *                       *
------------------------------------------
               *                       *
------------------------------------------
               *                       *
------------------------------------------
               *                       *
------------------------------------------
               *                       *
------------------------------------------
               *                       *
------------------------------------------
               *                       *
------------------------------------------
               *                       *
------------------------------------------
               *                       *
------------------------------------------
               *                       *
------------------------------------------
               *                       *
------------------------------------------
               *                       *
------------------------------------------
</TABLE>

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   696
                                                                 24 October 1997
<TABLE>
<CAPTION>
<S>                  <C>
CAPACITY (ERLANGS)    PRICE (US$'000s)
--------------------------------------
               *                  *
--------------------------------------
               *                  *
--------------------------------------
               *                  *
--------------------------------------
               *                  *
--------------------------------------
               *                  *
--------------------------------------
               *                  *
--------------------------------------
               *                  *
--------------------------------------
</TABLE>
3.2.4.6.  The project management fee for MSSC/VLR expansion shall be an
          additional fee of 7% of the agreed final MSSC/VLR upgrade price as per
          Paragraphs 3.2.4.1 and 3.2.4.3 of this Schedule.

3.2.5.    HLR

3.2.5.1   The additional software licence fee for the growth in the installed
          HLR subscriber capacity over and above the initial   *   subscribers
          is shown in Table 12.

TABLE 12 - HLR CAPACITY EXPANSION PRICE
<TABLE>
<CAPTION>
<S>           <C>                          <C>        <C>
NO.            DESCRIPTION                 QUANTITY      PRICE
                                                       (US$'000s)
----------------------------------------------------------------
 1   additional * subscribers, i.e.            *             *
     * subscriber total capacity
----------------------------------------------------------------
 2   additional * subscribers, i.e.            *             *
     * subscriber total capacity
----------------------------------------------------------------
 3   additional * subscribers, i.e.            *             *
     * subscriber total capacity
----------------------------------------------------------------
 4   additional 450,000 subscribers, i.e.      *             *
     500,000 subscriber total capacity
----------------------------------------------------------------
</TABLE>

3.2.5.2.  The offered HLR hardware has been dimensioned to support   *
          subscribers as per the parameters defined in Section 9.2 of the IGFR.
          The hardware may be able to support   *   subscribers, however, this
          is subject to confirmation.

3.2.5.3.  The Contract shall provide software licence fees for total capacity of
          greater than   *   subscribers subject to confirmation that the
          hardware can support total capacities greater than   *
          subscribers.

3.2.6.    AuC/EIR

3.2.6.1.  The additional software licence fee for the growth in the installed
          AuC/EIR subscriber capacity over and above the initial   *
          subscribers is shown in Table 13.

TABLE 13 - AUC/EIR CAPACITY EXPANSION PRICE
<TABLE>
<CAPTION>
<S>  <C>                                  <C>         <C>
NO.            DESCRIPTION                 QUANTITY      PRICE
                                                       (US$'000s)
----------------------------------------------------------------
 1   additional   *   subscribers, i.e.       *            *
        *   subscriber total capacity
----------------------------------------------------------------
 2   additional   *   subscribers, i.e.      *            *
        *   subscriber total capacity
----------------------------------------------------------------
 3   additional   *   subscribers, i.e.      *            *
        *   subscriber total capacity
----------------------------------------------------------------

</TABLE>

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

<PAGE>   697
                                                                 24 October 1997

<TABLE>
<S>       <C>                                              <C>       <C>
4         Additional 450,000 Subscribers i.e. 500,000
            subscriber total capacity                       1         433.8
</TABLE>

3.2.6.2   The offered AuC/EIR hardware has a rated total capacity of   *
          subscribers based on the values of Authentication and IMEI checking
          parameters as stated in the IGFR Section 9.2.

3.2.6.3   The Contractor shall provide software licence fees for total capacity
          of greater than   *   subscribers in increments of   *
          subscribers subject to confirmation that the hardware can support
          total capacities greater than   *   subscribers.

3.2.7     Messaging system (Converse Trilogue INfinity)

3.2.7.1   The hardware and software are sold together as a complete Messaging
          system--separation of the hardware and software licensing structure
          is not possible.

3.2.7.2   The detailed pricing for the messaging system is given in
          Tables 14-1, 14-2 and 14-3. The solution provides support for
          Voicemail, Faxmail, SMS and Email notification. The price for the
             *   centralised solution is fixed and firm and includes hardware
          and software, installation, commissioning and testing, warranty and
          spares.

3.2.7.3   Training, additional redundancy equipment and distribution equipment
          are excluded from the pricing.

3.2.7.4   Prices other than the   *   centralised solution are also fixed and
          firm and include hardware and software, installation, commissioning
          and testing, warranty and spares. The quoted prices will remain in
          force unadjusted until 31st March 1998. Thereafter, prices for
          additional orders will be negotiated within the NTE ceiling set in
          the Supply Agreement Contract and will take account of prevailing
          market conditions at the time of order.

3.7.5     The price for incremental growth of the messaging solution may be
          taken as the difference between the prices quoted below, plus the
          cost of any installation, commissioning and testing services that may
          be additionally required beyond those included below.

<TABLE>
<CAPTION>
  TABLE 14-1 MESSAGING SYSTEM CAPACITY EXPANSION PRICE (SINGLE SITE SOLUTION)

___________________________________________________________________________________________________________________________________
Single Site Solution
___________________________________________________________________________________________________________________________________
<S>                     <C>            <C>              <C>            <C>            <C>           <C>             <C>
Scenario

Subscribers

Pricing
                                                                           *
Net price to ICO
(US$)

Price per sub. (US$)
</TABLE>

The above prices also include the necessary Exchange Terminating Circuit (ETC)
equipment on the MSSC to support the   *   subscriber centralised messaging
requirement as defined in the RFI (This needs to have a document reference
number inserted. Sorry I don't have it. MCO). Prices quoted for systems with
capacity larger than   *   subscribers are exclusive of any necessary MSSC
hardware or software which must be dimensioned and priced as agreed in the
Supply Agreement.

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

<PAGE>   698
                                                               24 October 1997

   TABLE 14-2 MESSAGING SYSTEM CAPACITY EXPANSION PRICE (THREE SITE SOLUTION)
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------------------
Three Site Solution
-------------------------------------------------------------------------------------------------------------------------------
<S>                  <C>        <C>            <C>              <C>              <C>            <C>             <C>
Scenario

Site 1/3
Subscribers

Site 2/3
Subscribers

Site 3/3
Subscribers

Total Subscribers                                                       *

Pricing

NEC price to ICO

Price per sub.
(US$)
</TABLE>

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------------------
Three Site Solution
-------------------------------------------------------------------------------------------------------------------------------
<S>                                                                <C>            <C>              <C>             <C>
Scenario

Site 1/3
Subscribers

Site 2/3
Subscribers

Site 3/3
Subscribers                                                   *
Total Subscribers

Pricing

NEC price to ICO

Price per sub.
(US$)
</TABLE>

  TABLE 14-2 MESSAGING SYSTEM CAPACITY EXPANSION PICE (TWELVE SITE SOLUTION)

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------------------
Twelve Site Solution
-------------------------------------------------------------------------------------------------------------------------------
<S>                 <C>       <C>        <C>        <C>       <C>          <C>           <C>          <C>            <C>
Scenario

Site 1/12
Subscribers

Site 2/12
Subscribers

Site 3/12
Subscribers

Site 4/12
Subscribers

Site 5/12
Subscribers

Site 6/12
Subscribers
                                                                      *
Site 7/12
Subscribers

Site 8/12
Subscribers

Site 9/12
Subscribers

Site 10/12
Subscribers

Site 11/12
Subscribers

Site 12/12
Subscribers

Total Subscribers

Pricing

Nec price to ICO
</TABLE>

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

<PAGE>   699
                                                                 24 October 1997

<TABLE>
<CAPTION>
<S>                 <C>       <C>      <C>      <C>      <C>      <C>       <C>

                                        *

</TABLE>

3.2.8     ICO-IS.41 and IS.41-ICO ILR

3.2.8.1.  The additional software license fee for the growth in installed
          ICO-IS.41 and IS.41-ICO ILR subscriber capacity over and above the
          initial   *   subscribers is shown in Table 15.

         TABLE 15 - ICO-IS.41 & IS.41-ICO ILR CAPACITY EXPANSION PRICE

<TABLE>
<CAPTION>
NO.                           DESCRIPTION                    QUANTITY               PRICE
                                                                                 (US $ 000's)
--------------------------------------------------------------------------------------------
<S>                 <C>                                      <C>                  <C>
1

2

                                             *
3

4

</TABLE>

3.2.8.2   The offered ILR hardware has been dimensioned to support   *
          subscribers based on the parameters defined in Section 9.2 of the
          IGFR. The hardware may be able to support   *   subscribers,
          however, this is subject to confirmation.

3.2.9.    DC Uninterruptable Power Supply System For Switch Systems

3.2.9.1.  The purchase and installation prices for DC UPS (2 hour battery
          back-up) for the MSSC, HLR, AUC/EIR, MXE and ILR(AMPS) are provided in
          Table 16.

          * Confidential Treatment Requested and the Redacted Material has been
            separately filed with the Commission.
<PAGE>   700
                                                                 24 October 1997

                TABLE 16 - SWITCH DC UPS AND INSTALLATION PRICES

<TABLE>
<CAPTION>
NO.                           DESCRIPTION                    QUANTITY            DC UPS PRICE        INSTALLATION PRICE
                                                                                 (US $ 000's).          (US $ 000's).
--------------------------------------------------------------------------------------------------------------------
<S>                 <C>                                         <C>                  <C>                     <C>
1                   MSSC
1.1                 For 320 Erlangs
1.2                 For 3,200 Erlangs
2                   HLR                                                                *
3                   AUC/EIR
4                   MXE
                      PDC-ICO & ICO-PDC)(2)
</TABLE>
3.2.10.        PDC-ICO ILR (ICO Option As Defined in Annex 1 of the SOW)

3.2.10.1       The additional software license fee for the growth in the
               installed PDC-ICO and ICO-PDC ILR subscriber capacity over and
               above the initial   *   subscribers is shown in Table 17.

           TABLE 17 - PDC-ICO & ICO-PDC ILR CAPACITY EXPANSION PRICE

<TABLE>
<CAPTION>
NO.                           DESCRIPTION                    QUANTITY               PRICE
                                                                                 (US $ 000's)
--------------------------------------------------------------------------------------------
<S>                 <C>                                      <C>                  <C>
1

2

                                                  *
3

4

</TABLE>

3.2.11.        System Integration and Programme Management

3.2.11.1.      The Systems Integration and Programme Management (SI&PM) fee for
               the future expansion of traffic and subscriber capacity is:

               i.      *   thousand per annum

               ii.  SI&PM services will be provided at London

-------------
(2)  The DC UPS for PDC-ICO, ICO-PDC and associated IMSC will be quoted subject
     to ICO selection of options.

     * Confidential Treatment Requested and the Redacted Material has been
       separately filed with the Commission.
<PAGE>   701
                                                                 24 October 1997

           iii.  the SI&PM fee will be charged for the calendar year starting
                 from 12 August 2000 or handover whichever is latest.

3.2.11.2   ICO may terminate the SI&PM services on 6 months notice.

3.2.12.    Legal Interception

3.2.12.1   System capacity can be expanded to handle more "targets" and more
           simultaneous intercepted calls. The system can also be expanded to
           increase delivery capacity of intercepted calls toward the Monitoring
           Centres (MCs).

3.2.12.2   The pricing for each element of expansion is given in Table 18.

              TABLE 18 LEGAL INTERCEPTION CAPACITY EXPANSION PRICE

<TABLE>
<CAPTION>
Item                                                               Quantity     Firm Fixed Price
----                                                               --------     ----------------
<S>                                                                <C>          <C>
Increase size of "target" list (LIAS & LIMS)
Price for each additional module for E1 trunk handling the X3
   interface (30 channels) per LIAS
Price for upgrade of LIAS, Router and LIMS to accept fixed
   connections
Price for each additional connection of E0 (64Kbps) per LIAS(3)               *
Price for each additional group of 4 simultaneous switched
   connections (ISUP) per LIAS
LIMS support for the above
Installation for any of the above options
</TABLE>

3.2.12.3   Notes to Table 18:

           i.    Note 1: The "No Charge" options are provide Free of Charge
                 provided that the system is covered by warranty (initial or
                 extended).

           ii.   Note 2: Exclusive of all expenses which will be charged at
                 cost.

           iii.  Note 3: If fixed connections are not currently provided then
                 the upgrade of LIAS, Router and LIMS to accept fixed
                 connections will be required.

3.2.12.4   Please note that any necessary MSSC/VLR expansion is priced in
           accordance with the section 3.2.4.

3.3        SPARES

3.3.1.1.   The prices for the on-going supply of Spares to ICO for the purposes
           of maintaining ICO's stock of Spares to enable ICO to achieve the
           availability standards as defined in Section 8.11 is included within
           the Warranty prices.

           * Confidential Treatment Requested and the Redacted Material has
             been separately filed with the Commission.
<PAGE>   702
                                                                 24 October 1997

3.3.1.2.   The recommended expansion of spares over and above the packages
           offered in the SA to support the growth of the IGF and to exceed the
           levels of availability defined in Section 8.11 of the IGFR will be
           quoted at the time ICO orders additional capacity.

3.4        EXTENDED WARRANTY (ICO OPTION AS DEFINED IN ANNEX 1 OF THE SOW)

3.4.1      SBS Deluxe Support Service

3.4.1.1.   The price for the SBS Deluxe Support Service option as specified in
           Section 5.3 of Annex 1 of the SOW is   *   for each two year
           period.

3.4.2.     MSSC Deluxe Support Service

3.4.2.1.   The price for the MSSC Deluxe Support Service option specified in
           Section 5.4 -- covers 12 MSSC, 1 HLR, 1 AuC/EIR, Messaging system,
           ILR, Legal interception and 2 OSS, general purpose workstation
           hardware and operating systems are not included -- of Annex 1 of the
           SOW is:

           i.    during Year 1 and 2 (ie in the warranty period)   *
                 for a 2 year period.

           ii.   during Year 3 and 4,   *   for a 1 year period
                 thereafter, except Messaging system, ILR and Legal
                 interception.

           iii.  during Year 3 and 4   *   for a 1 year period thereafter,
                 for Messaging system ILR and Legal interception. The break down
                 of the amount is shown below:

                 (1)  ILR 2 systems (refer to item 2.4.2.3)            *
                                                                       *
                                                                       *

                 (2)  Messaging system                                 *

                 (3)  Legal Interception                               *

           iv.   Note that new MSSC software releases incorporating new
                 functionality are not included within this service.

3.4.2.2.   The price of the MSSC Deluxe Support Service will be revised should
           ICO change the number of nodes in the IGF.

3.4.2.3.   The options as defined in Annex 1 of the SOW also have a charge
           associated with Deluxe support as follows:

           i.    ILRs, for the 1st to 3rd ILR, US$ 184,000 per ILR per annum and
                 for the 4th and thereafter   *   per ILR per Year

3.4.2.4.   The price for the MSSC Deluxe Support Service II option specified in
           Section 5.5 of Annex 1 of the SOW is as specified in Paragraphs
           3.4.2.1, 3.4.2.2 and 3.4.2.3. of this Schedule.

3.4.2.5.   Deluxe Support of HPN is priced at   *   per Year. This price
           provides one year of depot maintenance for the HPN hardware and
           software. Depot maintenance support does not include travel which if
           required will be charged in addition to the basic annual price.
           General purpose workstation hardware and operating systems are not
           included in this service.

3.4.3      Extended Basic Warranty

3.4.3.1.   The price for the Extended Basic Warranty options specified in
           Section 5.2.1 of Annex 1 are:

           * Confidential Treatment Requested and the Redacted Material has
             been separately filed with the Commission.
<PAGE>   703
                                                                 24 October 1997

          i.   RFT:   *   of FOB equipment price excluding NRE and general
               purpose workstation per annum. The warranty for the TWT's shall
               be the same as that in clause 40.[16] of the SA.

          ii.  SBS: first year after completion of the warranty period specific
               to clause 40 of the SA,   *   per annum for 12 SANs and
               thereafter   *   per annum for 12 SAN.

          iii. MSSC:   *   of FOB equipment price, excluding NRE and general
               purpose workstation, per annum.

          iv.  TNM:   *   of FOB equipment price, excluding NRE and general
               purpose workstation hardware, per annum. This does not cover
               general purpose workstation hardware and OS maintenance.

          v.   NMC/SAN OSS:   *   of FOB Equipment price, excluding NRE and
               general purpose workstation hardware, per annum. This does not
               cover general purpose workstation hardware and OS maintenance.

3.5  PRICE ADJUSTMENT

3.5.1.         Equipment Price Adjustment Formula

3.5.1.1.       This Price Adjustment Formula shall be applied to the equipment
               described in Sections 3.2.1 to 3.2.10 inclusive and Section 3.3.

3.5.1.2.       Application of this price adjustment formula is subject to
               Section 3.5.3.

3.5.1.3.       The Contractor and ICO will negotiate in good faith to finalise
               the indices; As and Bs and ratios X, Y and Z, within three months
               of the SA. The Contractor will propose to ICO several options for
               the indices--shown below in Paragraphs 3.5.14., 3.5.1.5,
               3.5.1.6., 3.5.1.7, 3.5.1.8., 3.5.1.9, 3.5.1.10., 3.5.1.11.,
               3.5.1.12., 3.5.1.13 and 3.5.2-- and will also provide detail of
               at least the last three years recorded indices and their sources.

3.5.1.4.       Price in year of purchase

<TABLE>
<S>                                                         <C>

                                        *

</TABLE>

3.5.1.5.       NEC-J Indices: Antenna Subsystem:

               i.        "X" =  *

               ii.       "Y" =  *

               iii.      "Z" =  *

               iv.       Index A = Monthly wholesale price index of metals &
                         related products, Japan

               v.        Index B = Monthly cash earning index (nominal) of
                         regular workers in Manufacturing Industries (Contract
                         Cash Earning), Japan

3.5.1.6.       NEC-J Indices: Other Equipment

               i.        "X" =  *

               ii.       "Y" =  *

               iii.      "Z" =  *

               * Confidential Treatment Requested and the Redacted Material has
                 been separately filed with the Commission.
<PAGE>   704
                                                                 24 October 1997

          iv.       Index A = Monthly whole sale price index of Electrical
                    Machinery, Japan

          v.        Index B = Monthly cash earning index (nominal) of regular
                    workers in Manufacturing Industries (Contract Cash Earning),
                    Japan

3.5.1.7.  The NEC-J indices shall be extracted from "Economics Statistics
          Monthly" published monthly by the Bank of Japan and be applied to the
          above formula. Should the indices for the months of new order not be
          available, then the latest indices obtainable shall be applied.

3.5.1.8.  HNS Indices

          i.        "X" =  *

          ii.       "Y1" =   *   (Note that factor "Y" as shown in the formula
                    has, for HNS, been split into two components, "Y1" and "Y2".
                    "B" has also been split into two respectively "B1" and
                    "B2",)

          iii.      "Y2" = *

          iv.       "Z" =  *

          v.        Index A = US PPI for Electrical and Electronic Machinery
                    Equipment and Supplies, not seasonally adjusted

          vi.       Index B1 = USA Employment cost index for total compensation,
                    durable goods manufacturing, not seasonally adjusted

          vii.      Index B2 = Electrical/Electronics Industry Wages Index,
                    India

3.5.1.9.  The Producer Price Index (PPI) is calculated by US Bureau of Labor,
          and is widely recognized among business people, economists,
          statisticians, and accountants for price adjustment clauses in
          contracts.

3.5.1.10. Index A and B1 will be as published by the US Department of Labor
          Bureau of labor statistics.

3.5.1.11. Index B2 will be as defined as described in Paragraph 3.5.1.3.

3.5.1.12. ETL Indices:

          i.        "X" =  *

          ii.       "Y" =  *

          iii.      "Z" =  *

          iv.       Index A = Telephone Equipment Capital Goods Index, World

          v.        Index B = Electrical/Electronics Industry Wages Index,
                    Sweden

3.5.1.13. NEC/A Indices:

          i.        "X" =  *

          ii.       "Y" =  *

          iii.      "Z" =  *

          iv.       Index A = Price index of material as published by Australian
                    Bureau of Statistics Cat. No. 6412.0 group 33

          * Confidential Treatment Requested and the Redacted Material has been
            separately filed with the Commission.

<PAGE>   705
                                                               24 October 1997

          v.  Index B = Electrical/Electronics Industry Wages Index, Australia

3.5.2.    Basic Price Adjustment Formula for Services

3.5.2.1.  This Price Adjustment formula shall be applied to the installation,
          integration and project management services listed in Sections 3.2.1
          to 3.3.11.

3.5.2.2.  Application of this price adjustment formula is subject to Section
          3.5.3.

3.5.2.3.  The Basic Price adjustment formula for services is:

                                        *

3.5.2.4.  Each member of the Contractor's team price adjustment for services
          shall use the same wages Indices ("B"s,"B1"s and "B2"s) given in
          Section 3.5.1 and with the same proportion of B1 and B2 as given in
          Section 3.5 to make up the 0.8 coefficient.

3.5.3.    Application of Pricing Adjustment Formulae

3.5.3.1.  For equipment orders placed by ICO on, or before, 31 March 1998 for a)
          delivery, installation and integration with the initial purchase in
          the year 2000 and b) where the capacities do not exceed ICO's
          projected year 2002 requirements, the Not To Exceed price of the
          equipment, installation and integration shall be determined in
          accordance with the prices described in Section 3.2.1 to 3.2.10
          inclusive without application of the Price Adjustment formula
          described in Section 3.5.1 and 3.5.2. The actual price of the
          equipment, installation and integration shall be agreed at the date
          ICO places the order and shall take into account the then prevailing
          market conditions and not exceeding the prices charged to other
          customers ordering similar quantities of similar types of equipment.

3.5.3.2.  For equipment orders placed by ICO:

          i.    on, or after, 1 April 1998, or

          ii.   for delivery, installation and integration after year 2000 or

          iii.  in excess of ICO's projected year 2002 requirements.

          The Price Adjustment formulae in Section 3.5.1 and 3.5.2 shall apply
          unless the actual price adjustment on or after 1 April 1998 exceeds
          three times or more the average annual adjustment rate during the
          period March 1995 to March 1997, determined using the Price Adjustment
          formulae in Section 3.5.1 and 3.5.2. In such event the actual price
          shall be determined taking into account the then prevailing market
          conditions and not exceeding the prices charged to other customers
          ordering similar quantities of similar types of equipment

3.6.      PAYMENT SCHEDULE

3.6.1.1.  The equipment payment terms shall be:

          i.       *   of value on order

          ii.      *   of value on shipment

          iii.     *   of value on acceptance

3.6.1.2.  The installation and SI&PM charges payment terms shall be:

          * Confidential Treatment Requested and the Redacted Material has been
            separately filed with the Commission.

<PAGE>   706
                                                              24 October 1997

          i.       *   of value on order

          ii.      *   of the value in equal monthly instalments, in arrears,
                during the duration of the programme

          iii.     *   of the value upon acceptance.

3.6.1.3.  The spares payment terms shall be:

          i.       *   of the value on order

          ii.      *   on delivery to the specified site.

4.        EQUIPMENT ORDER PROCESS

4.1.      NORMAL PROCESS

4.1.1.1.  The Contractor and the Purchaser agree to develop a process for
          handling the ordering and delivery of equipment. The main principles
          of the process are detailed in the following paragraphs. Items in []
          are subject to review during the development of the process.

4.1.1.2.  ICO will provide the Contractor(s) with a rolling forecast of future
          demand estimates [the format for this is as per Table 1 of Annex 1 of
          the SOW]. The forecast will be revised on an [annual] basis and
          supplied to the Contractor(s) on [Specific date].

4.1.1.3.  ICO will place specific orders for equipment on Contractor(s) in the
          [format specified in Table 1 of Annex 1, showing separately the total
          installed capacity, the incremental capacity and the final installed
          capacity after the purchase.] The total incremental capacity to be
          supplied under the order for all sites shall be used for the
          calculation of the price as defined in Section 3.

4.1.1.4.  The FOB date shall be within nine months of receipt of order from ICO.

4.1.1.5.  Contractor(s) shall be responsible for the management and
          co-ordination of all contractor staff and the successful installation,
          testing and bringing into service of the new tranche of equipment at
          each site.

4.1.1.6.  The installation and test schedule will be agreed at the time of the
          placement of the order. The installation and acceptance shall be
          completed no more than 6 months after the delivery of equipment to the
          site unless agreed by ICO.

4.1.1.7.  Contractor(s) shall plan in advance with ICO to minimize any downtime
          required for installation of expansion blocks. The Contractor shall
          work with ICO/Operator to schedule the downtime in appropriate time of
          day for ICO's business purposes.

4.2       EXPEDITED PROCESS

4.2.1.1.  ICO may request at any time an expedited order, delivery and bringing
          into service capacity expansion.

4.2.1.2.  The Contractor will make all reasonable efforts to provide shortened
          delivery lead times for all, or part, of the order, as requested.

4.2.1.3.  ICO can negotiate and give contractor incentives to shorten the lead
          time from receipt of order to bringing into shipment (FOB) and
          installation and brining into service.

4.2.1.4.  The expedited process may apply to partial shipments of a normal order
          or to a special purpose order which ICO may raise.

          * Confidential Treatment Requested and the Redacted Material has been
            separately filed with the Commission.

<PAGE>   707
                                                            24 October 1997

5.        PRICING OF SOFTWARE RELEASES

5.1.      GENERAL PRINCIPLES

5.1.1.1.  Contractor(s) will provide ICO with releases of operating software on
          "as need be" basis or upon new feature release that has been purchased
          by ICO except switch (MSSC) subsystem software.

5.1.1.2.  Contractor will provide regular releases of operating software for
          Switch (MSSC) subsystem which will provide new functionality in
          accordance with Supply Agreement.

5.1.1.3.  The software releases will include fixes to faults, a basic package of
          new functionality and a range of optional features.

5.1.1.4.  The price schedule of the new software releases will be submitted
          separately 90 days in advance of the new releases.

5.2.      MSSC SOFTWARE UPGRADE PRICING

5.2.1.1.  The pricing per annum for subscription to the standard CME 20 (MSSC)
          Software release programme for the period 1 January 2001 until
          December 2003 is as shown in Table 19. The price for the upgrade
          depends upon the size of network.

                    TABLE 19 - MSSC SOFTWARE UPGRADE PRICING

<TABLE>
<CAPTION>
          PRICING        PRICE PER
NODE     PARAMETER       ANNUM (US$)
----     ---------       -----------
<S>      <C>             <C>

                *

</TABLE>

5.2.1.2.  The above pricing is firm fixed price for the three year term.
          Subsequent pricing will be negotiated at the end of the three year
          term and will be linked to an index to be agreed.

5.2.1.3.  The above software subscription provides ICO with the right to all
          basic software upgrades for the MSSC and HLR nodes which are made
          available within the subscription period. ICO may also choose to
          purchase optional features in addition.

5.2.1.4.  Note that the above prices exclude any installation and materials
          costs which may be charged and which will be quoted at the time of
          upgrade.

5.2.1.5.  The annual MSSC software subscription is subject to the discount
          structure shown in Table 20 based on the total number of installed
          Exchange Terminating Circuits (ETCs) in the ICO network at the start
          of the subscription year.

                  TABLE 20 - MSSC SOFTWARE DISCOUNT STRUCTURE

<TABLE>
<CAPTION>

NUMBER OF ETCs
IN IGF                                    *
--------------
<S>                           <C>
Software
subscription                              *
discount
</TABLE>

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   708
                                                  24 October 1997

5.2.1.6. The annual HLR software subscription is subject to the discount
         structure per HLR as shown in Table based on the number of registered
         subscribers in the ICO network at the start of the subscription year.

                   TABLE 21 - HLR SOFTWARE DISCOUNT STRUCTURE

<TABLE>
<CAPTION>

THOUSANDS OF
SUBSCRIBERS                                     *
IN THE HLR
------------
<C>                 <C>         <C>            <C>            <C>            <C>            <C>
Software
subscription                                    *
discount
</TABLE>

5.2.1.7. The pricing per annum for subscription to the standard Legal
         Interception Software release programme for the period 1 January 2001
         until 31 December 2003 is given in Table 22. The prices below are for
         the LIAS and LIMS for the Legal Interception solution as currently
         proposed. Software upgrades for the MSSC/VLR are covered by the
         existing Supply Agreement.

         TABLE 22 - LEGAL INTERCEPTION SYSTEM SOFTWARE UPGRADE PRICING

<TABLE>
<CAPTION>
ITEM           DESCRIPTION                      *
----           -----------              ----------------
<C>            <C>                      <C>
Software       As described in detail           *
Upgrade        below
Subscription
per one year
</TABLE>

5.2.1.8. The above pricing is fixed for the three-year term. Subsequent pricing
         will be negotiated at the end of the three-year term. The above
         software subscription provides ICO with the right to all basic software
         upgrades for the LIAS and LIMS nodes which are made available within
         the subscription period. Software upgrades are issued approximately
         once every six months. Software upgrades include fault corrections,
         module enhancements and new features.

5.2.1.9. Please note that the above prices exclude any installation and
         materials costs which may be charged in addition.

6.       PRICING AND PROCESS FOR DEVELOPMENT OF ICO SPECIFIC FUNCTIONALITY

6.1.     INTRODUCTION

6.1.1.1. The Contractor recognises that ICO will require the on-going
         development of ICO specific functionality and agrees to develop a
         process to support ICO's continued development.

6.1.1.2. The process and costs of development and integration of Future
         Requirements will be developed using the concepts as described in
         Section 6.2, 6.3, 6.4 and 6.5.

6.2.     FEASIBILITY STUDY

6.2.1.1. ICO will request the Contractor(s) to undertake a feasibility study for
         a particular element of functionality. The process that shall be
         followed is:

         i.    ICO and the Contractor(s) will hold functionality development
               meetings on as need be basis either initiated by ICO or by the
               Contractor., ICO will provide a forecast, short and long term, of
               the ICO specific functionality that may be required.

         * Confidential Treatment Requested and the Redacted Material has been
           separately filed with the Commission.

<PAGE>   709
                                                                 24 October 1997

          ii.    ICO will request the Contractor to provide 'rough order of
                 magnitude' costs (ROM) and the development and installation
                 schedule for ICO selected functions.

6.2.1.2.  The Contractor shall either:

          i.     deliver a rough order of magnitude cost, including a program
                 for the development of the functionality including the detailed
                 specification, and the program for installation and integration
                 of the functionality,

          ii.    or provide a commitment to delivering a Firm Fixed Price,
                 including development, testing and installation schedule on an
                 agreed upon schedule between ICO and contractor.

6.3.      DELIVERY

6.3.1.1.  The delivery of the additional functionality shall be completed on an
          agreed upon schedule between ICO and the contractor.

6.3.1.2.  The programme for delivery shall include milestones as appropriate to
          the needs of each development and may include, but are not limited to:

          i.     design review meeting

          ii.    critical design review meeting

          iii.   test plan review

          iv.    rollout plan review

          v.     installation plan

          vi.    acceptance and handover plan

6.4.      ICO SPECIFIC FUNCTIONALITY PRICING

6.4.1.1.  The Contractor shall provide ICO firm fixed price information that
          includes:

          i.     Non-recurring expenditure where appropriate

          ii.    equipment prices

          iii.   spares

          iv.    software licenses

          v.     installation and testing

          vi.    project management and systems integration

          vii.   warranty

          viii.  payment schedule.

<PAGE>   710
                                                                 24 October 1997

6.5.      PRICE METHODOLOGY

6.5.1.1.  In order to establish the firm fixed price for ICO specific
          functionality, the price level shall be agreed in the following
          manner.

          i.     Normal commercial negotiations following submission of
                 technical and commercial proposals

          ii.    Price justification initially based on the prices included in
                 the Contractor's Supply Agreement and taking into consideration
                 any changes in exchange rates and agreed escalation formulae

          iii.   If agreement cannot be reached on the above basis further price
                 justification will be provided based on world-wide price
                 comparisons

          iv.    If agreement cannot be reached the Contractor will provide
                 detailed estimates of the work to be performed with
                 corresponding hardware, software and manpower costings.

<PAGE>   711

                        CHANGE ORDER NO: 2  ATTACHMENT 2

                  2. Schedule 9 - Pricing Schedule Appendix 1
                 (*The following 19 pages have been redacted)

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   712
                                  GRAND TOTAL

                                       *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

<PAGE>   713
                        CHANGE ORDER NO: 2  ATTACHMENT 2

3. SCHEDULE 9 -- PRICING SCHEDULE APPENDIX 2
                (*The following 103 pages have been redacted)

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   714

                        CHANGE ORDER NO: 2  ATTACHMENT 2
            4. SCHEDULE 11 - PAYMENT SCHEDULE CLASSIFICATION SUMMARY

                        * [19 PAGES HAVE BEEN REDACTED]

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   715

                        CHANGE ORDER NO: 2  ATTACHMENT 2

            5. SCHEDULE 13 - IGFR VERSION 26

<PAGE>   716
27 November 1997
Our Ref: SA0526/WG7/19970523/GKS

NEC Corporation
c/o NEC-ICO Project Office
5th Floor, Horatio House
77-85 Fulham Palace Road
Hammersmith
London W6 8JC

                           [ICO Logo and Letterhead]
                           ICO GLOBAL COMMUNICATIONS
                            1 Queen Caroline Street
                           Hammersmith London W6 9BN
                                 United Kingdom

                            TEL +44 (0) 181 600 1000
                            FAX +44 (0) 181 600 1199

For the attention of Mr Tadeo Furukawa, Dr A Fujii

Dear Sirs

SUBJECT:  ICO GROUND FACILITIES SUPPLY AGREEMENT:
          CHANGE ORDER 2 - SIDE LETTER ON IGFR VERSION 26, 10 NOV 97

ICO and NEC intend to agree Change Order 2, which refers to IGFR Version 26,
dated 10 November 1997.

ICO and NEC agree that, as of the signature of Change Order 2, both parties
will agree and immediately implement the following changes to the IGFR, Version
26 of 10 November 1997:

The paragraphs identified below will read as follows:

3.3.3.2. REMOTE PCS (RPCS)
The IGF shall provide an IF Interface to external Remote PCS equipment at
selected SANs provided for PCS functions in accordance with the PCS ICD, ICO
document EN-TC-ICO-IS-0003.

3.3.6.3. CENTRAL PCS (CPCS)
The IGF shall provide a data communications interface at the NMC and Backup NMC
to external Central PCS equipment for passing information between CPCS and NMC
in accordance with the PCS ICD, ICO document EN-TC-ICO-IS-0003.

3.3.6.4. REMOTE PCS
The IGF shall provide a data communication Interface to external Remote PCS
equipment at selected SANs provided for PCS functions in accordance with the
PCS ICD, ICO document EN-TC-ICO-IS-0003.

6.53.1.6.5. The IGF shall assume that the Remote PCS equipment shall have the
capability to set its IF level at the interface point to the IDS to adjust to
the nominal EIRP of the PCS SRMS command carrier.

6.57.1.10.3. Interface requirements between the Remote PCS equipment and the
SAN equipment shall be in accordance with the PCS ICD, ICO document
EN-TC-ICO-IS-0003.

CONFIDENTIAL AND PROPRIETARY TO ICO GLOBAL COMMUNICATIONS

                                                                ICO SERVICES LTD
                                               Registered in England No. 3045294
                                                              Registered Office:
                                                         1 Queen Caroline Street
                                                                London W6 9BN UK

<PAGE>   717
6.59.1.5. The Remote PCS subsystem shall interface with the IDS at 1 GHz band
IF interface according to the PCS ICD, ICO document EN-TC-ICO-IS-0003.

6.59.1.6. The Remote PCS subsystem shall interface with the SAN-OSS to provide
the equipment alarms according to the PCS ICD, ICO document EN-TC-ICO-IS-0003.

6.59.1.7. The Remote PCS subsystem shall interface with the IDS to receive the
RFT to satellite assignment information according to the PCS ICD, ICO document
EN-TC-ICO-IS-0003.

6.59.1.8. The Remote PCS subsystem shall interface with the Clock Distribution
Subsystem to receive the reference clock and frequency according to the PCS
ICD, ICO document EN-TC-ICO-IS-0003.

It is further agreed that, as at the date of execution of Change Order 2, the
technical content of the PCS ICD, ICO document EN-TC-ICO-IS-0003 Appendix C
will be taken as given in NEC documents WG2-SN-70034 and WG2-SN-70035.

These changes will be incorporated into subsequent Versions of the IGFR.

Yours sincerely,

/s/ GK Smith

G.K. Smith
SVP and Chief Engineering Officer

cc:  NEC Documentation Manager
     J Singh, K Smith, P Poskett, K Hungerford, C Forsyth, G Wiginton,
     ICO Project Office

PARTIES AGREE:

G.K. Smith for ICO                           A. Fujii for NEC

/s/ GK Smith                                 /s/ A. Fujii
------------------------------               ------------------------------

Date:

    28/11/97                                     28/11/97
------------------------------               ------------------------------

                                                                          Page 2
CONFIDENTIAL AND PROPRIETARY TO ICO GLOBAL COMMUNICATIONS

<PAGE>   718
                                                       ICO GLOBAL COMMUNICATIONS
[ICO LOGO]                                               1 QUEEN CAROLINE STREET
                                                                     HAMMERSMITH
                                                                   LONDON W6 9BN
                                                                  UNITED KINGDOM

                                                           TEL: +44 181 600 1000
                                                           FAX: +44 181 600 1199

                                                           I-CO SERVICES LIMITED
                                               REGISTERED IN ENGLAND: NO.3045294
                                         REGISTERED OFFICE: 1 QUEEN CAROLINE ST.
                                                                LONDON W6 9BN UK

--------------------------------------------------------------------------------
                     ICONET GROUND FACILITIES REQUIREMENTS
                                    DOCUMENT
--------------------------------------------------------------------------------

                             COMMERCIALLY SENSITIVE
                            REPRODUCTION PROHIBITED

CONFIDENTIALITY STATEMENT
ALL INFORMATION CONTAINED IN THIS DOCUMENT IS CONFIDENTIAL AND PROPRIETY TO ICO
GLOBAL COMMUNICATIONS OR ANY OTHER MEMBER OF THE ICO GLOBAL COMMUNICATIONS
GROUP AND INTENDED ONLY FOR THE ADDRESSEE TO WHOM THIS COPY IS ADDRESSED. THE
RECIPIENT SHALL NEITHER COPY, DISTRIBUTE, DISCLOSE OR USE THE INFORMATION
CONTAINED IN IT FOR ANY PURPOSE OTHER THAN FOR WHICH THIS DOCUMENT HAS BEEN
MADE AVAILABLE NOR PERMIT ANYONE ELSE TO DO THE SAME. THE RECIPIENT SHALL BE
HELD FULLY LIABLE FOR ANY WRONGFUL DISCLOSURE OR USE OF ANY OF THE INFORMATION
CONTAINED IN THIS DOCUMENT BY HIM, OR HIS OFFICERS OR EMPLOYEES OR ANYONE ELSE
TO WHOM HE MAKES THE INFORMATION AVAILABLE.

                     ---------------------------------------
                     DOCUMENT NO.:       EN-IG-ICO-RQ/000014
                     ---------------------------------------
                     VERSION:            26
                     ---------------------------------------
                     DATE:               10 NOVEMBER 1997
                     ---------------------------------------

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                      (NEC)                              (ICO)
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<PAGE>   719
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AMENDMENT RECORD

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         DATE       CN NO.      REASON FOR CHANGE
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         10                     Exercise of 60, 61 and 120 day options. Removal
         November               of PCS from SA.
         1997
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                       ICO Proprietary and Confidential
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                                                            EN-IG-ICO-RQ/000014
ICO            ICONET Ground Facilities Requirements        Version: 26
                                                            10 November 1997

                               TABLE OF CONTENTS

1.   GENERAL                                                                 1
     1.1. PURPOSE                                                            1
     1.2. ELEMENTS OF THE ICONET GROUND FACILITIES                           1
     1.2.1. General                                                          1
     1.2.2. SAN                                                              1
     1.2.3. NMC and Backup NMC                                               3
     1.2.4. Operational Test and Development Facility (OT&DF) (F/R)          3
     1.2.5. Miscellaneous Equipment                                          3
     1.2.6. Buyer Furnished Equipment                                        3
     1.3. RELATED DOCUMENTS                                                 10
     1.3.1. Incorporation by Reference                                      10
     1.3.2. Precedence                                                      10
     1.3.3. List of Incorporated Documents                                  10
     1.3.4. List of Air Interface Documents.                                10
     1.3.5. List of Reference Documents.                                    10
     1.4. NOTATION CONVENTIONS                                              11
     1.4.1. Square Brackets, TBD, and TBR                                   11
     1.4.2. Future Requirements                                             11
     1.4.3. Options                                                         11

2.   DEFINITIONS & ACRONYMS                                                 12

3.   BASIC REQUIREMENTS                                                     18
     3.1. ICONET GROUND FACILITY DEFINITION                                 18
     3.2. SYSTEM DESCRIPTION                                                18
     3.3. EXTERNAL INTERFACES                                               18
     3.3.1. General                                                         18
     3.3.2. RF Interface                                                    18
     3.3.3. IF Interfaces                                                   18
     3.3.4. Terrestrial Network Interface                                   19
     3.3.5. ADC Interface                                                   19
     3.3.6. Data Communications Interface                                   19

4.   END-USER SERVICES                                                      20
     4.1. BASIC TELESERVICES                                                20
     4.1.1. Speech Services                                                 20
     4.1.2. Short Message Services                                          20
     4.1.3. Facsimile Services                                              21
     4.2. BASIC BEARER SERVICES                                             22
     4.2.1. Circuit Mode Data Services (up to 9600 bps) using GSM Standard  22
     4.2.2. Circuit Mode Data Services (up to 38.4 kbps) using
               GSM Standard                                                 22
     4.2.3. Alternate Voice and Data Services Using Voice Codec Signalling  23
     4.3. GSM SUPPLEMENTARY SERVICES                                        23
     4.3.1. General                                                         23
     4.3.2. Line Identification Services                                    24
     4.3.3. Call Forwarding Services                                        24
     4.3.4. Call Waiting and Call Hold Services                             24
     4.3.5. Multi-party Services                                            25
     4.3.6. Closed User Group Services                                      25
     4.3.7. Call Restriction Services                                       25
     4.3.8. Advice of Charge Services                                       25
     4.4. ICO SPECIFIC SERVICES                                             26
     4.4.1. High Penetration Notification (HPN) Service                     26
     4.4.2. ICO Dual-numbering                                              27
     4.4.3. Natural Language Support                                        27

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4.5. MAIL AND MESSAGING SERVICES                                             28
4.5.1. Generic Messaging Platform Requirements                               28
4.5.2. Voice Mailbox                                                         29
4.5.3. Fax Mailbox                                                           29
4.5.4. Email                                                                 29
4.5.5. SMS                                                                   29
4.5.6. Mailbox Access and Retrieval                                          30
4.5.7. Mailbox Notification                                                  32
4.5.8. Access to External Systems                                            32
4.6. ADVANCED SERVICES (F/R)                                                 32
4.6.1. General IN Platform Requirements                                      32
4.6.2. IN Services                                                           35
4.7. SUBSCRIPTION TO ICO SERVICES                                            38
4.7.1. General                                                               38
4.7.2. Subscription Profiles in the HLR/VLR                                  38
4.7.3. Subscriber Profiles in the IN Platform (F/R)                          39
4.7.4. Subscriber Profiles in the Messaging Platform                         39
4.8. CELLULAR/SATELLITE ROAMING                                              39
4.8.1. General                                                               39
4.8.2. Roaming with IS.41 Based Networks                                     40
4.8.3. Roaming with PDC Networks (OPTION)                                    40
4.8.4. Roaming with GSM Based Networks                                       40
4.8.5. Generic Roaming Functions                                             41
4.8.6. Protocol Support                                                      43
4.8.7. Provisioning Functions                                                44
4.8.8. Network Management Functions                                          44
4.8.9. Availability of Products and Services to Roaming Subscribers          45
4.9. OTHER VALUE-ADDED SERVICES                                              47
4.10. SPECIALISED TERMINALS                                                  48
4.10.1. Multichannel Terminals (F/R)                                         48
4.10.2. Semi-fixed Terminals                                                 48

5. ADMINISTRATION AND SUPPORT SERVICES                                       49
5.1. BILLING SERVICES                                                        49
5.1.1. Call Detail Recording in the MSSC                                     49
5.1.2. Call Detail Recording in the Messaging Platform                       51
5.2. PROVISIONING SERVICES                                                   53
5.2.1. Subscriber Administration in the HLR                                  53
5.2.2. Subscriber Administration in the Cellular/Satellite
       Interworking Function (CS-IWF)                                        53
5.2.3. Subscriber Administration in the Messaging Platform                   54
5.2.4. Subscriber Administration in the Service Control Point (SCP)(F/R)     54
5.2.5. Administration of Secret Keys in the Authentication Centre (AuC)      54
5.2.6. Administration of Secret Keys in the Cellular/Satellite
       Interworking Function (CS-IWF)                                        55
5.3. MOBILE EQUIPMENT MONITORING                                             55
5.4. CUSTOMER CARE AND OPERATOR SUPPORT                                      56
5.4.1. General                                                               56
5.4.2. Operator Determined Barring (ODB)                                     56
5.4.3. Operator Controlled Diversion                                         56
5.4.4. Subscriber Specific Announcements                                     56
5.4.5. Subscriber Tracing                                                    56
5.5. FRAUD MANAGEMENT SERVICES                                               57

6. GENERIC SYSTEM FUNCTIONS                                                  59
6.1. NUMBERING, ADDRESSING AND IDENTIFICATION                                59
6.1.1. International Mobile Subscriber Identification                        59
6.1.2. Mobile Station International ISDN Numbers                             59
6.1.3. Mobile Station Roaming Numbers                                        60
6.1.4. International Mobile Equipment Identity                               60
6.2. RADIO CONNECTIVITY BETWEEN USER TERMINALS, SATELLITES AND SANS          60

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6.3. PSTN/ISDN/PLMN INTERCONNECTION                                        61
6.4. SECTION NOT USED                                                      61
6.5. DCN SUBSYSTEM                                                         61
6.5.1. Network Management DCN                                              61
6.5.2. Voice Service Network (F/R)                                         62
6.6. REGISTRATION AND IMSI ATTACH/DETACH                                   64
6.6.1. Basic Capabilities for Registration                                 64
6.6.2. Registration Procedures                                             64
6.6.3. Registration Cases                                                  65
6.6.4. Denial of Registration                                              65
6.7. CALL ROUTING                                                          66
6.7.1. MSSC Call Routing                                                   66
6.7.2. TNM Routing                                                         66
6.8. MP PAGING                                                             66
6.9. SECTION NOT USED                                                      67
6.10. SECTION NOT USED                                                     67
6.11. DIVERSITY SATELLITE PATH ALLOCATIONS AND USAGE                       67
6.11.1. Diversity Capacity                                                 67
6.11.2. Diversity Path Allocation and De-allocation                        67
6.11.3. Transmission and Reception Over Diversity Path                     68
6.12. HANDOVERS                                                            68
6.13. SUBSCRIBER IDENTITY AUTHENTICATION                                   69
6.14. ENCRYPTION                                                           69
6.15. IMEI CHECKING                                                        70
6.16. CAUSES, TONES AND ANNOUNCEMENTS                                      70
6.17. ECHO CANCELLATION                                                    70
6.18. TERRESTRIAL MODEM POOLS                                              71
6.19. UT POSITION INFORMATION                                              71
6.19.1. Position Information Determination                                 71
6.19.2. Conversion of Frequency and Time Measurement to Position           72
6.19.3. Usage of UT Position Information                                   74
6.19.4. Mapping of UT Position to Service Area                             74
6.19.5. Handling of UT-supplied Position Information                       75
6.20. LEGAL INTERCEPTION                                                   75
6.21. FORCED CALL ROUTING (F/R)                                            78
6.22. PURGING OF LOCATION REGISTERS                                        79
6.23. ICO SPACE SEGMENT AND SANs                                           79
6.24. SECTION NOT USED                                                     80
6.25. RADIO SYNCHRONISATION                                                80
6.25.1. Time Synchronisation                                               80
6.25.2. Frequency Synchronisation                                          82
6.25.3. Terrestrial Network Synchronisation                                86
6.26. AIR INTERFACE ELEMENTARY AND STRUCTURED PROCEDURES                   86
6.26.1. Air Interface Elementary Procedures                                86
6.26.2. Structured Procedures                                              88
6.27. UT/SUBSCRIBER ACCESS MANAGEMENT AND CONTROL                          89
6.28. ACCESS CLASS HANDLING                                                89
6.28.1. General                                                            89
6.28.2. Barring of Access Classes                                          89
6.28.3. Unbarring of Access Classes                                        90
6.29. SUBSCRIBER CLASS HANDLING (F/R)                                      90
6.30. CLASSMARK HANDLING                                                   90
6.31. CHANNEL MODE MODIFY                                                  90
6.31.1. Channel Mode Modify in the SBS and TNM                             90
6.31.2. Channel Mode Modify in the MSSC                                    90
6.32. IN-CALL MODIFICATION                                                 91
6.33. SUPPORT FOR DTMF                                                     91
6.34. RELEASE OF RESOURCES                                                 91

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6.34.1. General                                                            91
6.34.2. Release of Equipment, Satellite Spectrum and Satellite Power
        Resources                                                          92
6.34.3. Release of Resources External to IGF                               92
6.35. QUEUING                                                              92
6.36. CONGESTION AND OVERLOAD                                              92
6.37. C7 SIGNALLING LINK MONITORING                                        93
6.38. VOICE CODING                                                         93
6.39. DTX                                                                  93
6.40. SYSTEM INFORMATION BROADCASTING                                      94
6.41. RADIO ACCESS MANAGEMENT                                              94
6.41.1. Paging Channel (PCH)                                               94
6.41.2. Access Grant Channel (AGCH)                                        94
6.41.3. Random Access Channel (RACH)                                       95
6.41.4. Fast and Slow Associated Control Channels (FACCH and SACCH)        95
6.42. RADIO SESSION MANAGEMENT                                             95
6.42.1. Session Initiation Requirements                                    95
6.43. LINK MONITORING                                                      97
6.43.1. Dedicated Channels                                                 97
6.43.2. BCCH                                                               98
6.43.3. RACH                                                               98
6.44. SECTION NOT USED                                                     99
6.45. SECTION NOT USED                                                     99
6.46. SECTION NOT USED                                                     99
6.47. POWER CONTROL                                                        99
6.47.1. SAN Automatic Power Control                                        99
6.47.2. SAN EIRP Control for TCH and DCCH                                  99
6.47.3. SAN EIRP Control for Forward Control Channels                     100
6.47.4. UT EIRP Control for TCH and DCCH                                  100
6.47.5. RACH                                                              101
6.47.6. ACK/HP                                                            101
6.48. SAN COVERAGE AND MANAGEMENT                                         101
6.48.1. SAN Coverage Access                                               101
6.48.2. Coverage Planning                                                 102
6.49. SATELLITE EIRP MANAGEMENT                                           103
6.49.1. Satellite RF Power Management Parameters                          103
6.49.2. Satellite Transponder Gain Value Entry and Usage                  105
6.49.3. Rules for Generation of Satellite Power Management Parameters     105
6.49.4. Determination of SBS and HPN and SAN-OSS Control Parameters       106
6.49.5. Satellite EIRP Monitoring                                         107
6.49.6. Satellite RF Power Overload Management                            107
6.50. SPECTRUM MANAGEMENT                                                 107
6.50.1. Functional Requirements for the Generation and Distribution
        of SRMC Data                                                      107
6.50.2. Performance Requirements                                          108
6.50.3. Spectrum Management Reference Traffic Distribution                116
6.51. INTERFERENCE MANAGEMENT                                             117
6.52. HPN REQUIREMENTS                                                    118
6.52.1. HPN General Requirements                                          118
6.52.2. Basic Capabilities for HPN                                        119
6.52.3. HPN Message Transmission and Reception                            119
6.52.4. Section Not Used                                                  119
6.52.5. HPN Frequency Planning                                            119
6.52.6. HPN Synchronisation Planning                                      120
6.52.7. HPN Satellite Control                                             121
6.52.8. HPN Location Phase Planning                                       121
6.52.9. HPN Channel Management                                            122
6.52.10. HPN Subsystem Synchronisation                                    123
6.53. SAN AIR INTERFACE REQUIREMENTS                                      123
6.53.1. C-band Transmit Requirements                                      123
6.53.2. C-band Receive Requirements                                       127
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[ICO LOGO]                                                   10 November 1997

<TABLE>
<S>        <C>                                                                 <C>
6.53.3     S-band TX Performance Requirements                                  129
6.54.      SECTION NOT USED                                                    130
6.55.      TRAFFIC PLANNING                                                    130
6.56.      CHANNEL UNIT FAILURE HANDLING                                       132
6.56.1.    Traffic Channel Unit Failures                                       132
6.56.2.    Control Channel Unit Failures                                       133
6.57.      RFT FUNCTIONAL REQUIREMENTS                                         133
6.57.1.    General Requirements                                                133
6.57.2.    Antenna Requirements                                                135
6.57.3.    C-band TX/RX Functional Requirements                                136
6.57.4.    S-band TX/RX Functional Requirements                                137
6.57.5.    Doppler Measurements and Compensation Functional Requirements       137
6.57.6.    Automatic Power Control (APC)                                       138
6.57.7.    Axial Ratio Compensation Functions (F/R)                            138
6.57.8.    RFT Monitoring and Control                                          138
6.57.9.    TT&C Support Functions                                              139
6.57.10.   PCS/HPN Support Functions                                           140
6.57.11.   Test Loop Translator                                                140
6.58.      RFT PERFORMANCE REQUIREMENTS                                        141
6.58.1.    Antenna Requirements                                                141
6.58.2.    C-band Performance Requirements                                     144
6.58.3.    S-band Performance Requirements                                     147
6.58.4.    Doppler Measurement and Compensation Performance Requirements       148
6.58.5.    Automatic Power Control (APC)                                       149
6.58.6.    RFT Shelter                                                         149
6.58.7.    RFT Downlink Requirements for TT&C                                  150
6.58.8.    RFT Uplink Requirements for TT&C                                    151
6.59.      PCS INTERFACE REQUIREMENTS                                          151
6.59.1.    General PCS Interface Requirements                                  151
6.59.2.    Section Not Used                                                    152
6.59.3.    PCS Subsystem Control Functions                                     152
6.59.4.    Section Not Used                                                    153
6.59.5.    Payload and Ground System Synchronisation                            153
6.59.6.    Section Not Used                                                    153
6.59.7.    Section Not Used                                                    153
6.59.8.    Payload Status                                                      153
6.59.9.    Payload Configuration                                               154

7.         NETWORK MANAGEMENT SYSTEM AND LEGAL INTERCEPTION SYSTEM             157
7.1        GENERAL REQUIREMENTS                                                157
7.1.1.     Requirements for New Elements                                       157
7.1.2.     Network Management                                                  157
7.1.3.     Data Archiving                                                      160
7.1.4.     Application Programming Interface                                   160
7.1.5.     Report Mechanisms                                                   160
7.1.6.     Software Upgrades                                                   161
7.1.7.     Network Management Centre and SAN-OSS                               161
7.1.8.     Man Machine Interface Requirements                                  163
7.1.9.     Backup and Restoration                                              165
7.1.10.    Reliability and Availability                                        166
7.1.11.    Performance                                                         166
7.1.12.    Sizing                                                              167
7.1.13.    Expandability                                                       167
7.1.14.    Operational Testing Capabilities                                    167
7.1.15.    NMC and Back-Up NMC Platform                                        168
7.2.       CONFIGURATION MANAGEMENT                                            168
7.2.1.     Requirements for New Elements                                       168
</TABLE>
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<TABLE>
<S>        <C>                                                                <C>
7.2.2.     General                                                            168
7.3.       FAULT MANAGEMENT                                                   171
7.3.1.     Requirements for New Elements                                      171
7.3.2.     General                                                            171
7.3.3.     Alarm Analysis                                                     172
7.3.4.     Trouble Ticket Management                                          172
7.4.       PERFORMANCE MANAGEMENT                                             173
7.4.1.     Requirements for New Elements                                      173
7.4.2.     General                                                            173
7.4.3.     Network Traffic Management                                         173
7.5.       SECURITY MANAGEMENT                                                174
7.5.1.     Requirements for New Elements                                      174
7.5.2.     General                                                            174
7.6.       ACCOUNTING MANAGEMENT                                              175
7.7.       SECTION NOT USED                                                   175
7.8.       OPERATIONS AND MAINTENANCE INTERFACE REQUIREMENTS                  175
7.8.1.     General                                                            175
7.8.2.     Satellite Resource Management Centre                               176
7.8.3.     Satellite Control Centre                                           177
7.8.4.     NODE Operations System                                             178
7.8.5.     Satellite Access Node                                              197
7.8.6.     High Power Notification                                            198
7.8.7.     ICO provided Payload Command System                                201
7.8.8.     Radio Frequency Terminal                                           205
7.8.9.     Satellite Base Station                                             211
7.8.10.    Terrestrial Network Manager                                        215
7.8.11.    Digital Communication Network                                      217
7.8.12.    ICONET Synchronisation System                                      219
7.8.13.    C-C Subsystem                                                      220
7.8.14.    ICO Administrative Data Centre                                     220
7.9.       LEGAL INTERCEPTION MANAGEMENT SYSTEM                               220
7.9.1.     General Requirements                                               220
7.9.2.     Configuration Management                                           221
7.9.3.     Fault Management                                                   221
7.9.4.     Performance Management                                             222
7.9.5.     Security Management                                                222

8.         PERFORMANCE REQUIREMENTS                                           223
8.1.       CONDITIONS FOR PERFORMANCE REQUIREMENTS                            223
8.2.       BASIC QUALITY OF SERVICE                                           223
8.2.1.     IGF Voice Loop Delay                                               223
8.2.2.     Speech Quality in MOS                                              223
8.2.3.     Probability of Call Loss                                           223
8.2.4.     Handover Performance                                               223
8.2.5.     Handover Performance                                               223
8.3.       SMS QUALITY OF SERVICE                                             224
8.3.1.     Delivery Time                                                      224
8.3.2.     Probability of SMS Non-delivery on Each Delivery Attempt.          224
8.4.       AUTOMATIC FACSIMILE GROUP 3 (UP TO 9600BPS) QUALITY OF SERVICE     224
8.4.1.     Transparent Mode                                                   224
8.5.       CIRCUIT MODE DATA (UP TO 9600BPS) QUALITY OF SERVICE               224
8.5.1.     Transparent Mode                                                   224
8.5.2.     Non-Transparent Mode                                               224
8.6.       CIRCUIT MODE DATA (GREATER THAN 9600BPS) QUALITY OF SERVICE (TBD)  224
8.7.       HPN QUALITY OF SERVICE                                             224
8.7.1.     HPN Idle Mode                                                      224
8.7.2.     HPN Message Delay                                                  225
8.7.3.     HPN Capacity                                                       225
8.7.4.     HPN Transmitter and Receiver Characteristics                       225
</TABLE>
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<TABLE>
<S>                                                                         <C>
    8.8 GSM SUPPLEMENTARY SERVICES QUALITY OF SERVICE                       225
    8.8.1. Time to Invoke or Change a Supplementary Service                 225
    8.9. SECTION NOT USED                                                   226
    8.10. SBS PERFORMANCE                                                   226
    8.10.1. Channel Assignment Delay (RACH to AGCH)                         226
    8.10.2. Paging Delay                                                    226
    8.10.3. Position Determination Delay                                    226
    8.10.4. Section Not Used                                                226
    8.10.5. Signalling Transit Time                                         226
    8.10.6. Voice Traffic Transit Time                                      226
    8.10.7. Non-Voice Traffic Transit Time                                  227
    8.10.8. Layer 2 Acknowledgement Delay                                   227
    8.11. AVAILABILITY                                                      227
    8.11.1. Definitions                                                     227
    8.11.2. Requirements                                                    228
    8.11.3. Environments                                                    231
    8.12. TNM PERFORMANCE REQUIREMENTS                                      232
    8.12.1. TNM Transit Time                                                232
    8.13. MSSC                                                              233
    8.13.1. Mobile Switching Response Time                                  233
    8.13.2. Transit Switching                                               234
    8.13.3. D-IWF                                                           234
    8.13.4. GMSC                                                            234
    8.13.5. IN-SSP (F/R)                                                    234
    8.13.6. MSSC Voice Transit Time                                         234
    8.14. Legal Interception Subsystem                                      234

 9. CAPACITY REQUIREMENTS                                                   236
    9.1. DIMENSIONING DRIVERS                                               236
    9.2. IGF ELEMENT SPECIFIC DETAILS                                       236
    9.3. SIZING REQUIREMENTS                                                245
    9.3.1. Network Management System                                        245
    9.3.2. Switching Equipment                                              245
    9.3.3. HPN Equipment                                                    246
    9.3.4. SBS Equipment                                                    247
    9.3.5. TNM and DCN Equipment                                            249
    9.4. NETWORK INTERFACE                                                  252

10. SECTION NOT USED                                                        253

11. REFERENCE CONFIGURATION FOR PERFORMANCE MEASUREMENT                     254

12. OTHER CONTRACT SERVICES                                                 258
    12.1. OPERATIONAL TEST & DEVELOPMENT FACILITY (OT&DF) (F/R)             258
    12.1.1. General                                                         258
    12.1.2. SAN Network Management                                          259
    12.1.3. MSSC/VLR and HLR/AuC                                            259
</TABLE>

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1.   GENERAL

1.1. PURPOSE

     1.1.1. The object of this document is to provide testable and complete
     ICONET Ground Facilities Functional Requirements.

     1.1.2. It is developed from Annexes 1 to 4 of the IPC SOW but is different
     because those Annexes describe requirements for Design of the ICO System,
     rather than directly for the ICONET Ground Facilities.

1.2. ELEMENTS OF THE ICONET GROUND FACILITIES

1.2.1. GENERAL

     1.2.1.1. It is an overall requirement that the end to end performance and
     functionality represented by the aggregation of the currently specified
     component elements shall be maintained in the event that there is a future
     need to redistribute or re-allocate functions.

     1.2.1.2. For full details of equipment, refer to the Equipment List in
     Annex 1 of the SOW.

     1.2.1.3. Figure 1-1 shows the elements of a SAN.

     1.2.1.4. Figure 1-2 shows the NMS and the SRMS subsystems.

1.2.2. SAN

1.2.2.1. MSSC SUBSYSTEM

     1.2.2.1.1. Switch providing MSSC, VLR, GMSC, SMS-GMSC, SMS-IWMSC, IN-SSF
     functions

     1.2.2.1.2. D-IWF (for fax and data)

     1.2.2.1.3. Echo cancellers

     1.2.2.1.4. Recorded Voice Announcements

     1.2.2.1.5. MSSC MMI (TMOS)

1.2.2.2. LES SUBSYSTEM

1.2.2.2.1. TNM SUBSYSTEM

     1.2.2.2.1.1. Voice codec, Multiplexer

     1.2.2.2.1.2. Remote Processor, Network (RPN)

     1.2.2.2.1.3. Remote Processor, Central (RPC)

     1.2.2.2.1.4. TNM OAM and MMI

1.2.2.2.2. SBS SUBSYSTEM

     1.2.2.2.2.1. Channel Manager

     1.2.2.2.2.2. Channel Unit

     1.2.2.2.2.3. Real Time Resource Manager

     1.2.2.2.2.4. SBS OMC AND MMI

1.2.2.2.3. HPN SUBSYSTEM

     1.2.2.2.3.1. HPN-SC

     1.2.2.2.3.2. HPN Channel Manager

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     1.2.2.2.3.3. HPN Channel Unit

     1.2.2.2.3.4. HPN-PCS Channel Unit

     1.2.2.2.3.5. HPN Local SRMS

     1.2.2.2.3.6. HPN OMC and MMI (no physical console is supplied with the HPN
     subsystem; MMI remoted from SAN-OSS MMI console)

1.2.2.2.4. SECTION NOT USED

1.2.2.2.5. RFT SUBSYSTEM

     1.2.2.2.5.1. Antennas

     1.2.2.2.5.2. RFT Outside equipment

     1.2.2.2.5.3. RFT Shelter equipment

     1.2.2.2.5.4. RFT OMC & MMI

     1.2.2.2.5.5. RFT IF to antenna distribution/cabling

1.2.2.2.6. REFERENCE CLOCK AND SYSTEM TIMING SUBSYSTEM

     1.2.2.2.6.1. GPS receiver

     1.2.2.2.6.2. RFT, SBS, HPN and PCS clock distribution

1.2.2.2.7. ON-SITE INTERCONNECTION SUBSYSTEM

     1.2.2.2.7.1. Distribution Frame (Intermediate)

1.2.2.2.8. IF DISTRIBUTION SUBSYSTEM

1.2.2.3. SAN MANAGEMENT SUBSYSTEM

     1.2.2.3.1. SAN OSS Supervisory Subsystem

     1.2.2.3.2. SAN SRMS

1.2.2.4. DCN SUBSYSTEM

     1.2.2.4.1. Inter-SAN Switch/Routers

     1.2.2.4.2. Intra-SAN Routers and Hubs

     1.2.2.4.3. E1 adapter (Mux and Encryption)

1.2.2.5. LEGAL INTERCEPTION SUBSYSTEM (LIS)

     1.2.2.5.1. MSSC/VLR interception function

     1.2.2.5.2. Legal Interception Activation System (LIAS)

     1.2.2.5.3. Legal Interception Management System (LIMS)

1.2.3. NMC AND BACKUP NMC

1.2.3.1. NETWORK AND SATELLITE RESOURCE MANAGEMENT

     1.2.3.1.1. NMC platform and MMI

     1.2.3.1.2. SRMC platform and MMI

     1.2.3.1.3. TMOS platform and MMI

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1.2.3.2. DCN SUBSYSTEM
     1.2.3.2.1 NMS-to-SAN Switch/Routers
     1.2.3.2.2. Intra-NMS Routers and Hubs
     1.2.3.2.3. E1 adapter (Mux and Encryption)

1.2.4. OPERATIONAL TEST AND DEVELOPMENT FACILITY (OT&DF) (F/R)

1.2.5. MISCELLANEOUS EQUIPMENT

1.2.5.1. GENERAL
     1.2.5.1.1. These may be located at any SAN

1.2.5.2. HLR/AuC

1.2.5.3. CELLULAR/SATELLITE INTERWORKING FUNCTIONS (CS-IWFS)

1.2.5.3.1. IS.41 ILR
     1.2.5.3.1.1. IS.41 -> ICO ILR
     1.2.5.3.1.2. ICO -> IS.41 ILR

1.2.5.3.2. PDC ILR (OPTION)
     1.2.5.3.2.1. PDC -> ICO ILR
     1.2.5.3.2.2. PDC/ICO IMSC

1.2.5.4. EIR

1.2.5.5. IN PLATFORM (F/R)
     1.2.5.5.1. IN-SCP
     1.2.5.5.2. IN-SMAS

1.2.5.6. MESSAGING PLATFORM
     1.2.5.6.1. Messaging platform including:
               1. short message service centre (SMSC)
               2. voice mail
               3. fax mail
               4. email

1.2.6. BUYER FURNISHED EQUIPMENT

     1.2.6.1. External transmission facilities

     1.2.6.2. Local standard Main Distribution Frame for termination of external
              transmission equipment

     1.2.6.3. AC power supplies (to local standard for frequency and voltage of
              required reliability

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                         [FLOORPLAN OF SAN SUBSYSTEMS]

FIGURE 1-1 SAN SUBSYSTEMS

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<TABLE>
<CAPTION>
               LIS                 NMS                     SRMS
<S>            <C>       <C>              <C>   <C>      <C>
NMC                      NODE-OS (TMOS)   LINK-OS        SRMC

BACK UP NMC    LIMS      NODE-OS TMOS     LINK-OS        SRMC

SAN (x12)      LIAS               SAN NMS                SAN SRMS

                              Subsystem OAMs     SAN OSS

                 Network Elements (MSSC, SBS, RFT, HPN, PCS, TNM)
</TABLE>

                    Figure 1-2 NMS, SRMS and LIS Subsystems

Note: In Section 6, NMC is sometimes used to represent LINK-OS/NODE-OS in this
diagram. The figure is for information purposes only and is intended to clarify
the distinction between the NMS and the SRMS functionality. It should be noted
that further elements into the NMS are likely to be implemented at a later date
(e.g. SMAS etc.).

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1.3.   RELATED DOCUMENTS

1.3.1. INCORPORATED BY REFERENCE

          1.3.1.1. In this document, references to other documents incorporate
          only as much of the referred document as is necessary to implement the
          required specification in this document.

1.3.2. PRECEDENCE

          1.3.2.1. Only references to specific clauses in other documents shall
          take on the precedence of this document. All general references to
          other documents shall retain the precedence of that document.

1.3.3. LIST OF INCORPORATED DOCUMENTS

          1.3.3.1. The following documents are incorporated into the contract.
          The capabilities that they define are required deliverables except
          where they conflict or are inconsistent with the requirements in the
          IGF Requirements document.

          1.3.3.2. IPC Deliverable Control Document WG360497

1.3.4. LIST OF AIR INTERFACE DOCUMENTS

          1.3.4.1. The following documents are incorporated into the contract to
          the extent necessary to support the requirements specifically
          identified in the IGF Requirements document.

          1.3.4.2. ICO Air Interface documents (all version 3.0)

               03.22.A1  Functions Related to Mobile Stations (MS) in Idle Mode

               103.40.A1 Technical Realisation of the High Penetration
                         Notification Service (HPN)

               04.06.A1  Mobile Station - Base Station System (MS - BSS)
                         Interface Data Link (DL) Specification

               04.07.D1  Mobile Radio Interface Signalling Layer 3- General
                         Aspects

               04.08.A1  Mobile Radio Interface Layer 3, RR Procedures &
                         Messages

               04.08.A2  Mobile Radio Interface Layer 3, MM Procedures &
                         Messages

               04.08.A3  Mobile Radio Interface Layer 3, CC Procedures &
                         Messages

               04.08.A4  Mobile Radio Interface Layer 3, Information Elements
                         Specification

               104.08.A1 Mobile Radio Interface Layer 3 HPN RR Procedures &
                         Messages

               05.01.A1  Physical Layer on the Radio Path (General Description)

               05.02.A1  Multiplexing and Multiple Access on the Radio Path

               05.03.A1  Channel Coding

               05.04.A1  Modulation

               05.05.A1  Radio Transmission and Reception

               05.08.A1  Radio Subsystem Link Control

               05.10.A1  Radio Subsystem Synchronisation

1.3.5. LIST OF REFERENCE DOCUMENTS.

          1.3.5.1. The following documents are incorporated into the contract to
          the extent necessary to support the requirements specifically
          identified in the IGF Requirements document.

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          1.3.5.2. All documents identified by document WG7-GA-60025-C7 (being
          the control document prepared by the NEC-ICO Project Team Office
          listing the IPC deliverable documents).

          1.3.5.3. All GSM Technical Specification documents referenced in the
          body of the IGF Requirements document or in the Incorporated Documents
          or in the Reference Documents. The latest approved version at the
          Effective Date of Contract shall be used.

          1.3.5.4. IPC Deliverable Control Document WG360497.

          1.3.5.5. All references to GSM specifications are subject to the ETL
          statements of compliance listed in document WG360497.

1.4. NOTATION CONVENTIONS

1.4.1. SQUARE BRACKETS, TBD AND TBR

          1.4.1.1. Square brackets [ ], TBD, and TBR are used to identify
          requirements which are to be resolved during the course of the supply
          agreement. The value or wording inside the brackets or associated with
          the TBD or TBR provides an indication of the expected outcome.

1.4.2. FUTURE REQUIREMENTS

          1.4.2.1. The requirements marked by '(F/R)' in this document shall be
          considered as the future requirements which will not be implemented
          during the course of the current Supply Agreement. Descriptions for
          such requirements shall not be considered as final and shall be
          revisited before the contract amendments (or separate contracts) to
          implement them are agreed upon.

1.4.3. OPTIONS

          1.4.3.1. The requirements marked by '(OPTION)' in this document are
          separately deliverable at ICO's option provided that the option is
          exercised within the time period specified in the SOW Annex 1.

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2. DEFINITIONS & ACRONYMS

     2.1. ADC            Administration and Data Centre

     2.2. AFC            Automatic Frequency Control

     2.3. AGCH           Access Grant Channel

     2.4. Air Interface  A set of documents defining protocols, messages and
                         information exchanged between UTs and the IGF, as
                         referred to in Section 1.3.4.

     2.5. ANSI           American National Standards Institute

     2.6. API            Application Programming Interface

     2.7. APC            Automatic Power Control

     2.8. AuC            Authentication Centre

     2.9. AWGN           Additive Gaussian White Noise

     2.10. BCCH          Broadcast Control Channel

     2.11. B-NMC         Backup NMC

     2.12. BPF           Bandpass Filter

     2.13. BSSMAP        Base Station Subsystem Management Part

     2.14. BTFP          Burst Time-Frequency Plan

     2.15. C/N           Carrier to Noise ratio

     2.16. CAMEL         Customised Applications for Mobile Network Enhanced
                         Logic

     2.17. CCB           Change Control Board

     2.18. CCCH          Common Control Channel

     2.19. CDR           Call Data Record

     2.20. CDR           Critical Design Review

     2.21. CFM           Common Function Modules

     2.22. ChM           Channel Manager

     2.23. ChU           Channel Unit

     2.24. CLI           Calling Line Identification

     2.25. CM            Connection Management

     2.26. CPCS          ICO Provided Central Payload Command System

     2.27. CRC           Cyclic Redundancy Code

     2.28. CS-IWF        Cellular/Satellite Interworking Function

     2.29. DCCH          Dedicated Control Channel

     2.30. DCN           Data Communications Network

     2.31. D-IWF         Data Interworking Function

     2.32. DTIF          Digital TuKa Interface

     2.33. DTMF          Dual Tone Multi-Frequency

     2.34. ECM           Error Correcting Mode

     2.35. EIM           External Interference Management

     2.36. EIR           Equipment Identity Register

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<TABLE>
<CAPTION>

<S>                      <C>
2.37. EIRP               Effective Isotropic Radiated Power
2.38. EMC                Electro-Magnetic Compatibility
2.39. ESN                Electronic Serial Number
2.40. ETSI               European Telecommunications Standards Institute
2.41. F/R                Future Requirement
2.42. FACCH              Fast Associated Control Channel
2.43. FCR                Frequency Co-ordination Regions
2.44. FEC                Forward Error Correction
2.45. FOV                Field of View
2.46. GC                 Ground Cell
2.47. GLR                Gateway Location Register
2.48. GMSC               Gateway MSC
2.49. GMSSC              Gateway MSSC
2.50. GoS                Grade of Service
2.51. GPS                Global Positioning System
2.52. GSM                Global System for Mobile Communications
2.53. GTT                Global Title Translation
2.54. GW                 Gateway
2.55. HDLC               High-Level Data Link Control
2.56. HLR                Home Location Register
2.57. HPA                High Power Amplifier
2.58. HPN                High Penetration Notification
2.59. HPN-PCS            Real time Payload Command System for HPN
2.60. HPN-SC             HPN Service Centre
2.61. HSCSD              High Speed Circuit Switched Data
2.62. ICD                Interface Control Document
2.63. ICONET             All ground facilities including all interconnecting terrestrial links.
2.64. ICO System         The complete ICO system consisting of UTs, satellites, ICONET
2.65. IGF                ICONET Ground Facilities, which comprises all ground facilities forming part of the
                         ICONET, but excluding terrestrial interconnecting links. The IGF is more particularly
                         defined in Section 3.
2.66. ILR                Interworking Location Register
2.67. IMEI               International Mobile Equipment Identity
2.68. IMSI               International Mobile Subscriber Identify
2.69. IN                 Intelligent Network
2.70. INAP               Intelligent Network Application Part
2.71. IOT                In Orbit Test
</TABLE>

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<TABLE>
<CAPTION>

<S>                         <C>
2.72.  IP                   Intelligent Peripheral
2.73.  IPC                  Initial phase contract, which is a contract to produce the requirements
                            for the ICONET ground facilities and related work.
2.74.  IS.41                Interim Standard 41 (Electronics Industry Association/Telecommunications
                            Industry Association standard)
2.75.  ISDN                 Integrated Services Digital Network
2.76.  ISUP                 ISDN User Part
2.77.  ITU-R                International Telecommunication Union-Radiocommunication Standardisation
                            Bureau
2.78.  ITU-T                International Telecommunication Union-Telecommunication Standardisation
                            Bureau
2.79.  LES                  Land Earth Station which consists of RFT, SBS, HPN, TNM, and PCS
2.80.  LHCP                 Left Hand Circular Polarisation
2.81.  LNA                  Low Noise Amplifier
2.82.  LNMC at OT&DF        Local Network Management Centre at OT&DF
2.83.  LNMS at OT&DF        Local Network Management System at OT&DF
2.84.  MAP                  Mobile Application Part
2.85.  MCD                  Multi-Coded Data
2.86.  MIN                  Mobile Identification Number
2.87.  MLS                  Microwave Landing System
2.88.  MM                   Mobility Management
2.89.  MMI                  Man-Machine Interface
2.90.  MP                   Medium Penetration
2.91.  MSC                  Mobile services Switching Centre
2.92.  MSI                  Mobile Subscriber Identity
2.93.  MSISDN               Mobile Station ISDN Number
2.94.  MSN                  Mobile Subscriber Number
2.95.  MSRN                 Mobile Station Roaming Number
2.96.  MSS                  Mobile Satellite Service
2.97.  MSSC                 Mobile Satellite Switching Centre, including VLR and GMSC function
2.98.  MTP                  Message Transfer Part
2.99.  NA                   Not Applicable
2.100. Network operator     Operational staff at the NMC
2.101. NMC                  Network Management Centre including MMI
2.102. NMS                  Network Management System
2.103. NP                   Nominal Penetration
2.104. OAM                  Operations and Maintenance including MMI

 </TABLE>

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     2.105.OM                 Operations and Maintenance Centre including MMI
     2.106.OSI                Open Systems Interconnect
     2.107.OSS*               Operations Support System, same as OMC
     2.108.OT&DF              Operational Test & Development Facility
     2.109.PABX               Private Access Branch Exchange
     2.110.PAD                Packet Assembler Dissembler
     2.111.PCH                Paging Channel
     2.112.PCM                Pulse Code Modulation
     2.113.PCS                ICO Provided Payload Command System
     2.114.PDC                Personal Digital Cellular
     2.115.PDR                Preliminary Design Review
     2.116.PIN                Personal Identification Number
     2.117.PLMN               Public Land Mobile Network
     2.118.PSPDN              Packet Switched Packet Data Network
     2.119.PSTN               Public Switched Telephone Network
     2.120.QoS                Quality of Service
     2.121.RACH               Random Access Channel
     2.122.RFT                Radio Frequency Terminal
     2.123.RHCP               Right Hand Circular Polarisation
     2.124.RPC                Regional Processor Controller
     2.125.RPCS               ICO Provided Remote Payload Command System
     2.126.RPN                Regional Processor Network
     2.127.RR                 Radio Resource
     2.128.RTRM               Real Time Resources Manager
     2.129.SACCH              Slow Associated Control Channel
     2.130.SAN                Satellite Access Node which consists of LES, MSSC,
                              SAN OMC and includes if co-located any HLR, ILR,
                              SMSC, IN
     2.131.SAN operator       Operational staff at the SAN.
     2.132.SBS                Satellite Base Station
     2.133.SCC                Satellite Control Centre
     2.134.SCCP               Signalling Connection Control Part
     2.135.SCE                Service Creation Environment
     2.126.SCP                Service Control Point
     2.137.SDCCH              Standalone Dedicated Control Channel
     2.138.SDF                Service Data Function
     2.139.SDP                Service Data Point
     2.140.Service Area       Equivalent to a cell in GSM
     2.141.SIM                Subscriber Identity Module
     2.142.SLRP               Stored Last Registered Position

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     2.143.SMAF               Service Management Access Function
     2.144.SMAS               Service Management Application System, Ericsson
                              product for IN management
     2.145.SMP                Service Management point
     2.146.SMS                Short Message Service
     2.147.SMSC               SMS Centre
     2.148.SMS-GMSC           SMS Gateway MSC
     2.149.SMS-IWMSC          SMS Interworking MSC
     2.150.SRMC               Satellite Resources Management Centre
     2.151.SRMS               Satellite Resource Management System
     2.152.SS                 Supplementary Service
     2.153.SS7                Signalling System 7
     2.154.SSF                Service Switching Function
     2.155.SSP                Service Switching Point
     2.156.STE                Special Test Equipment
     2.157.STP                Signal Transfer Point
     2.158.TBD                To Be Determined
     2.159.TBR                To Be Reviewed
     2.160.TCAP               Transaction Capabilities Application Part
     2.161.TCH                Traffic Channel
     2.162.TDMA               Time Division Multiple Access
     2.163.TMSI               Temporary Mobile Subscriber Identity
     2.164.TNM                Terrestrial Network Manager
     2.165.TT&C               Tracking, Telemetry and Command
     2.166.TUP                Telephone User Part
     2.167.UDI                Unrestricted Digital Information
     2.168.USSD               Unstructured Supplementary Service Data
     2.169.UT                 User Terminal
     2.170.VAS                Value-added Service
     2.171.VLR                Visitor Location Register
     2.172.VMSSC              Visited MSSC
     2.173.VPN                Virtual Private Network
     2.174.VSWR               Voltage Standing-Wave Ratio
     2.175.Z-arc              A uniform delay contour line within a spot beam.

     * Non-preferred term

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3.3.3.2. REMOTE PCS (RPCS)

     3.3.3.2.1. The IGF shall provide an IF Interface to external Remote PCS
     equipment at selected SANs provided for PCS functions in accordance with
     RPCS to SAN ICD (TBD).

3.3.4. TERRESTRIAL NETWORK INTERFACE

     3.3.4.1. The IGF shall provide interfaces to terrestrial public networks,
     such as Public Switched Telephone Network (PSTN), Integrated Services
     Digital Networks (ISDN), Public Land Mobile Networks (PLMN), and Packet
     Switched Public Data Networks (PSPDN) in accordance with Section 6.3 of
     this document.

     3.3.4.2. The interfaces to external transmission lines shall comply with
     ITU-T Recommendation G.703/G.704 for A-law PCM and DS1 for u-law systems.

3.3.5. ADC INTERFACE

     3.3.5.1. The IGF shall provide ADC interfaces in accordance with the
     following documents: WG3-XX-60915; WG5-NM-60024.

3.3.6. DATA COMMUNICATIONS INTERFACE

3.3.6.1. TT&C

     3.3.6.1.1. The IGF shall provide a data communications interface to
     external TT&C equipment at selected SANs provided for TT&C functions in
     accordance with TT&C to SAN ICD EN-TC-ICO-IS-0001.

3.3.6.2. SCC

     3.3.6.2.1. The IGF shall provide a data communications interface at the NMC
     and Backup NMC to external equipment at the Satellite Control Centre and
     Backup Satellite Control Centre for passing information between SCC and NMC
     in accordance with SAN to NMC ICD EN-TC-ICO-IS-0002.

3.3.6.3. CENTRAL PCS (CPCS)

     3.3.6.3.1. The IGF shall provide a data communications interface at the NMC
     and Backup NMC to external Central PCS equipment for passing information
     between CPCS and NMC in accordance with CPCS to NMC ICD (TBD).

3.3.6.4. REMOTE PCS

     3.3.6.4.1. The IGF shall provide a data communication Interface to external
     Remote PCS equipment at selected SANs provided for PCS functions in
     accordance with RPCS to SAN ICD (TBD).

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3. BASIC REQUIREMENTS

3.1. ICONET GROUND FACILITY DEFINITION

     3.1.1. ICONet Ground Facilities (IGF) shall comprise SANs, NMC and backup
     NMC, and miscellaneous equipment as listed in Section 1.2. For full details
     of equipment, refer to the Equipment List in Annex 1 of the SOW

3.2. SYSTEM DESCRIPTION

     3.2.1. The IGF is part of the ICO System, and in conjunction with
     satellites and PSTNs, is intended to provide digital voice telephony,
     facsimile, data, and value added services (VAS) to handheld User Terminals
     (UT) to and from any point on the earth.

     3.2.2. The IGF consists of elements which provide the following functions:
     range of voice and data services, supplementary services, mobility
     management, network management, billing and customer administration,
     service provisioning, gateways, messaging, satellite payload control, and
     monitoring of the interconnecting traffic and signalling communication
     links

     3.2.3. The IGF shall provide Mobile Originated calls to any telephone or
     equivalent terminal accessible via the world's international public
     switched telephone networks, or accessible through a Private Network
     connected to ICO.

     3.2.4. The system shall provide for Mobile Terminated calls.

     3.2.5. The system shall provide for Mobile to Mobile calls. These will be
     switched within the ICONET provided that the destination can be determined
     by explicit number analysis.

3.3. EXTERNAL INTERFACES

3.3.1. GENERAL

     3.3.1.1. The external interfaces present in the IGF are listed below.

3.3.2. RF INTERFACE

3.3.2.1. AIR INTERFACE (UT)

     3.3.2.1.1. The air interface describes the communication protocol between
     the IGF and the UTs. The details of the air interface can be found in the
     ICO Air Interface document and in supporting GSM Technical Specifications.

3.3.2.2. SATELLITE RF INTERFACE

     3.3.2.2.1. The IGF provides RF signals for TT&C in accordance with TT&C to
     SAN ICD EN-TC-ICO-IS-0001.

     3.3.2.2.2. The IGF shall provide RF signals for HPN real time payload
     command (HPN PCS) functions in accordance with Payload to Ground ICD [TBD].

3.3.3. IF INTERFACES

3.3.3.1. TT&C

     3.3.3.1.1. The IGF shall provide an IF Interface to external TT&C equipment
     at selected SANs provided for TT&C functions in accordance with TT&C to SAN
     ICD EN-TC-ICO-IS-0001.

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     4.1.2.1.4. The IGF shall support Acknowledgements in accordance with TS GSM
     03.40.

     4.1.2.1.5. The IGF shall support the encoding of SMS messages in characters
     of several alphabets.

     4.1.2.1.6. The available encodings shall include unstructured binary data
     (maximum 140 octets) and International Alphabet No. 5 (160 characters).

4.1.3. FACSIMILE SERVICES

4.1.3.1. FACSIMILE GROUP 3 (UP TO 9600 BPS) USING GSM DEFINITION

     4.1.3.1.1. The IGF shall support the GSM standard automatic facsimile
     service, as defined in TS GSM 02.03, with exception of the deviations
     listed below.

     4.1.3.1.2. The facsimile modem speed shall be up to and including 9600 bps.

     4.1.3.1.3. The IGF shall support transparent transmission of fax data.

     4.1.3.1.4. This service shall be subject to the Air Interface definition
     being for the use of maximum 2-slot transmission in accordance with the UT
     classmark.

     4.1.3.1.5. The IGF shall support fax towards the PSTN, in accordance with
     ITU recommendation T30.

     4.1.3.1.6. The IGF shall support fax error correcting mode (ECM) towards
     the PSTN, in accordance with ITU recommendation T30 Annex A.

     4.1.3.1.7. For the case of 9600 bps transmission, un-encoded 2 slot
     transmission shall be used.

4.1.3.2. FACSIMILE GROUP 3 (UP TO 14.4 KBPS) USING GSM STANDARD

     4.1.3.2.1. The IGF shall support higher rate automatic facsimile Group 3
     connections on the basis of the emerging GSM phase 2+ High Speed Circuit
     Switched Data (HSCSD) services as defined by TS GSM 02.03 and TS GSM 02.34
     and with the exception of the deviations listed below. For further details
     of the Ericsson implementation of these services see ETL document LK/XX
     1056-272.

     4.1.3.2.2. The data rates at the user interface supported by the system
     shall include 12 and 14.4 kbps (V.17).

     4.1.3.2.3. This service requires more than 2 slots air interface
     transmission and shall only be provided to UTs with corresponding
     capabilities as indicated by their classmarks.

     4.1.3.2.4. The call detail records produced by the MSSC shall include the
     number of traffic channels (i.e. air interface slots) assigned at the start
     of charging. If the number of traffic channels used changes during the
     call, the new assigned number of traffic channels shall be stored, as well,
     in the call data record.

     4.1.3.2.5. The IGF shall support error correcting mode (ECM) in accordance
     with ITU-T Recommendation T.30 Annex A.

     4.1.3.2.6. From a service provision perspective, services specified in
     4.1.3.1 and 4.1.3.2 shall be considered as one service.

4.1.3.3. ALTERNATE VOICE/GROUP 3 FACSIMILE USING GSM DEFINITION

     4.1.3.3.1. The IGF shall support the GSM standard alternate speech/group 3
     facsimile service, as defined in TS GSM 02.03, with the exception of the
     deviations listed below.

     4.1.3.3.2. The speech component of the connection shall be in accordance
     with the requirements for the ICO telephony service as described above.

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4. END-USER SERVICES

4.1. BASIC TELESERVICES

4.1.1. SPEECH SERVICES

4.1.1.1. TELEPHONY

     4.1.1.1.1. The IGF shall support the GSM standard telephone service, as
     defined in TS GSM 02.03, with the exception of the deviations listed below.

     4.1.1.1.2. The basic information rate at the UT shall be 4.8kbps inclusive
     of FEC.

     4.1.1.1.3. The voice codec algorithm shall be specified by ICO.

     4.1.1.1.4. The voice coding rate is [3.1kbps] approximately.

     4.1.1.1.5. FEC specified by ICO is provided on the vocoder rate to provide
     a bit rate of 4.8kbps.

     4.1.1.1.6. Transmission of DTMF signalling shall be supported by the IGF in
     both directions i.e. from the UT to the network and from the network to the
     UT. The transmission of DTMF tones to the UT shall be transparent to the
     MSSC.

     4.1.1.1.7. It shall be possible to send DTMF tones at any time after
     through connection and before the call is cleared.

     4.1.1.1.8. Two transcodings may be applied on Mobile to Mobile calls
     (4.8kbps to 64kbps, 64kbps to 4.8kbps).

     4.1.1.1.9. On calls to and from the fixed network, a single transcoding
     from the fixed network standard to the ICO voice coding method shall be
     performed.

4.1.1.2. EMERGENCY CALL

     4.1.1.2.1. The IGF shall support the GSM standard emergency call service,
     as defined in TS GSM 02.03, with the exception of the deviations listed
     below.

     4.1.1.2.2. The IGF shall support emergency call access for UTs without a
     SIM i.e. without an IMSI/TMSI.

     4.1.1.2.3. The IGF shall have the capability to suppress use of emergency
     calls without a SIM.

     4.1.1.2.4. The routing of emergency calls by the MSSC to national/regional
     emergency call centres shall be based on the service area of the UT.

     4.1.1.2.5. The MSSC shall transmit the UT position (i.e. service area) to
     those emergency call centres capable of receiving it.

     4.1.1.2.6. The IGF shall support up to 5000 emergency call centres per SAN
     for emergency call handling.

4.1.2. SHORT MESSAGE SERVICES

4.1.2.1. SHORT MESSAGE SERVICES-POINT TO POINT

     4.1.2.1.1. The IGF shall support the GSM standard short message service
     point-to-point services (mobile originated and mobile terminated), as
     defined in TS GSM 02.03 and TS GSM 03.40.

     4.1.2.1.2. The IGF shall include one or more SMS centres (SMSCs) for
     transmission/reception of messages to/from ICONET subscribers.

     4.1.2.1.3. The IGF shall be able to receive short messages from; and send
     short messages to; networks that conform to the GSM standards relating to
     SMS.

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     4.2.2.4. The IGF shall support autobauding for transparent and
     non-transparent services. For non-transparent services it shall be possible
     to change the data rate during the call.

     4.2.2.5. The IGF shall support the modification of the number of channels
     allocated to a particular HSCSD connection via in-call modification and on
     handover.

     4.2.2.6. If during the assignment of traffic channels or at handover a
     traffic channel congestion is encountered, the call set-up or handover can
     be carried using less channels than initially requested.

     4.2.2.7. Circuit mode data services shall be supported by the system at
     data rates of 9.6, 14.4, 16.8, 19.2, 21.6, 24.0, 26.4, 28.8, 31.2, 33.6 and
     38.4kbps.

     4.2.2.8. This service shall only be provided to UTs which can utilise more
     than 2 air interface slots as indicated by their classmarks.

     4.2.2.9. The IGF shall support data compression based on ITU-T V.42bis
     towards both the PSTN and the UT.

     4.2.2.10. The call detail records for mobile originated and mobile
     terminated cases produced by the MSSC shall include the number of traffic
     channels (i.e. air interface slots) assigned at the start of charging. If
     the number of traffic channels used changes during the call, the new
     assigned number of traffic channels shall be stored, as well, in the call
     data record.

4.2.3. ALTERNATE VOICE AND DATA SERVICES USING VOICE CODEC SIGNALLING

     4.2.3.1. For mobile terminated and mobile originated calls, the IGF shall
     detect in-band data tones and modulation. Upon such detection, the IGF
     shall perform an in-call modification to change the voice codecs in IGF and
     UT from voice mode to data mode, transparent to the MSSC. The GSM bearer
     capability shall remain 3.1 kHz audio.

     4.2.3.2. The data rates for alternate voice/data operation shall be limited
     to 2400bps.

     4.2.3.3. The voice codec shall support the detection of audio modem tones.

     4.2.3.4. The IGF shall support the switch from voice to data mode and vice
     versa.

4.3. GSM SUPPLEMENTARY SERVICES

4.3.1. GENERAL

     4.3.1.1. The IGF shall support the subscription (provision/withdrawal) of
     each of the GSM supplementary services on an individual subscriber (IMSI)
     basis.

     4.3.1.2. The IGF shall support the management of the supplementary services
     by the end-user (registration/erasure/activation/deactivation/
     interrogation/password control) as defined in TS GSM 02.04.

     4.3.1.3. The IGF shall support the registration/erasure/activation and
     deactivation of each of the supplementary services on a basic service group
     basis as defined in TS GSM 02.04.

     4.3.1.4. The IGF shall support the use of the Unstructured Supplementary
     Service Data (USSD) mechanisms for interaction with the end-user as defined
     in TS GSM 02.90, TS GSM 03.90 and TS GSM 04.90.

     4.3.1.5. Both user and network initiated USSD shall be included, as well as
     the capability to handle the USSD dialogues initiated from applications in
     the HLR; and from applications that use the USSD procedures to communicate
     with the HLR and are located in external nodes.

4.3.2. LINE IDENTIFICATION SERVICES

4.3.2.1. CALLING LINE IDENTIFICATION PRESENTATION (CLIP)

     4.3.2.1.1. The IGF shall comply with the GSM phase 2 Calling Line
     Identification Presentation (CLIP) service as defined in TS GSM 02.81, TS
     GSM 03.81 and TS GSM 04.81.

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     4.1.3.3.3. The facsimile component of the connection shall be in accordance
     with the requirements for the ICO automatic group 3 facsimile service as
     described above, but limited to a maximum of 4.8kbps.

     4.1.3.3.4. The IGF shall support the use of the GSM in-call modification
     procedure.

4.1.3.4. ALTERNATE VOICE/GROUP 3 FACSIMILE (UP TO 2400 BPS) USING INBAND
DETECTION

     4.1.3.4.1. The IGF shall detect the usage of in-band fax tones. Upon such
     detection, the IGF shall perform an in-call modification to change the
     voice codecs in IGF and UT from voice mode to fax mode, transparent to the
     MSSC. The GSM bearer capability shall remain 3.1 kHz audio.

     4.1.3.4.2. The facsimile data rates when using inband detection shall be
     limited to 2400bps.

     4.1.3.4.3. The IGF shall support in-band alternative voice/facsimile
     operation only where the facsimile data is transported over a speech
     circuit. That is, where there is only one bearer capability indication at
     call setup, and that bearer capability is 3.1kHz audio or speech.

     4.1.3.4.4. The voice codec shall support the detection of audio facsimile
     tones.

     4.1.3.4.5. The IGF shall support the switch from voice to facsimile mode
     and vice versa.

4.2. BASIC BEARER SERVICES

4.2.1. CIRCUIT MODE DATA SERVICES (UP TO 9600 BPS) USING GSM STANDARD

     4.2.1.1. The IGF shall support the following GSM standard circuit-mode data
     services listed below, as defined in TS GSM 02.02 subject to the
     clarifications included below:

     4.2.1.2. Asynchronous data (BS 2x), transparent and non-transparent, at bit
     rates of 300, 1200, 1200/75, 2400, 4800 and 9600 bps.

     4.2.1.3. Synchronous data (BS 3x), transparent, at bit rates of 1200, 2400,
     4800, and 9600 bps.

     4.2.1.4. Access from a mobile station to a packet switched data network
     shall be possible via the PAD (Packet Assemble/Disassembly) facility of the
     Data Interworking Function of IGF or via a PAD accessible via the switched
     telephone network. In both cases the same asynchronous rates 300, 1200,
     2400, 1200/75 and 4800 bps shall be supported.

     4.2.1.5. The Data Interworking Function of IGF shall support basic packet
     services at 2400, 4800 and 9600 bps. Support of basic packet service in
     IGF is the passing of X.25 packet layer information. The services use
     either a modem or the Unrestricted Digital Information (UDI) Transfer
     Capability of the ISDN, in both cases X.31 HDLC flag stuffing is used for
     rate adaptation. With a modem both transparent and non transparent services
     are supported. With UDI, utilising the HDLC flag stuffing towards ISDN,
     only non-transparent services are supported.

     4.2.1.6. For the case of 9600 bps transmission, un-encoded 2 slot
     transmission shall be used.

4.2.2. CIRCUIT MODE DATA SERVICES (UP TO 38.4 KBPS) USING GSM STANDARD

     4.2.2.1. The IGF shall support High Speed Circuit Switched Data (HSCSD)
     services in accordance with the emerging GSM phase 2+ services as defined
     in TS GSM 02.02 and TS GSM 02.34 subject to the clarifications included
     below. For further details of the Ericsson implementation of these services
     see ETL document LK/XX 1056-272.

     4.2.2.2. The IGF shall support subscription to the following bearer
     services:
          1. general asynchronous (BS 20)
          2. general synchronous (BS 30)

     4.2.2.3. The IGF shall support both transparent and non-transparent
     services.

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4.3.2.2. CALLING LINE IDENTIFICATION RESTRICTION (CLIR)

         4.3.2.2.1. The IGF shall comply with the GSM phase 2 Calling Line
         Identification Restriction (CLIR) service as defined in TS GSM 02.81,
         TS GSM 03.81 and TS GSM 04.81.

4.3.2.3. CONNECTED LINE IDENTIFICATION PRESENTATION (COLP)

         4.3.2.3.1. The IGF shall comply with the GSM phase 2 Connected Line
         Identification Presentation (COLP) service as defined in TS GSM 02.81,
         TS GSM 03.81 and TS GSM 04.81.

4.3.2.4. CONNECTED LINE IDENTIFICATION RESTRICTION (COLR)

         4.3.2.4.1. The IGF shall comply with the GSM phase 2 Connected Line
         Identification Restriction (COLR) service as defined in TS GSM 02.81,
         TS GSM 03.81 and TS GSM 04.81.

4.3.3.   CALL FORWARDING SERVICES

4.3.3.1. CALL FORWARDING UNCONDITIONAL (CFU)

         4.3.3.1.1. The IGF shall comply with the GSM phase 2 Call Forwarding
         Unconditional (CFU) service as defined in TS GSM 02.82, TS GSM 03.82
         and TS GSM 04.82.

4.3.3.2. CALL FORWARDING ON MOBILE SUBSCRIBER BUSY (CFB)

         4.3.3.2.1. The IGF shall comply with the GSM phase 2 Call Forwarding on
         Mobile Subscriber Busy (CFB) service as defined in TS GSM 02.82, TS GSM
         03.82 and TS GSM 04.82.

4.3.3.3. CALL FORWARDING ON NOT REACHABLE (CFNRc)

         4.3.3.3.1. The IGF shall comply with the GSM phase 2 Call Forwarding
         on Not Reachable (CFNRc) service as defined in TS GSM 02.82, TS GSM
         03.82 and TS GSM 04.82.

4.3.3.4. CALL FORWARDING ON NO REPLY (CFNRy)

         4.3.3.4.1. The IGF shall comply with the GSM phase 2 Call Forwarding on
         No Reply (CFNRy) service as defined in TS GSM 02.82, TS GSM 03.82 and
         TS GSM 04.82.

4.3.4.   CALL WAITING AND CALL HOLD SERVICES

4.3.4.1. CALL WAITING (CW)

         4.3.4.1.1. The IGF shall comply with the GSM phase 2 Call Waiting (CW)
         service as defined in TS GSM 02.83, TS GSM 03.83 and TS GSM 04.83.

4.3.4.2. CALL HOLD (HOLD)

         4.3.4.2.1. The IGF shall comply with the GSM phase 2 Call Hold (HOLD)
         service as defined in TS GSM 02.83, TS GSM 03.83 and TS GSM 04.83.

4.3.5.   MULTI-PARTY SERVICES

4.3.5.1. MULTI-PARTY (MPTY)

         4.3.5.1.1. The IGF shall comply with the GSM phase 2 Multi-Party (MPTY)
         service as defined in TS GSM 02.84, TS GSM 03.84 and TS GSM 04.84.

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4.3.6.   CLOSED USER GROUP SERVICES

4.3.6.1. CLOSED USER GROUP (CUG)

         4.3.6.1.1. The IGF shall comply with the GSM phase 2 Closed User Group
         (CUG) service as defined in TS GSM 02.85, TS GSM 03.85 and TS GSM
         04.85.

4.3.7.   CALL RESTRICTION SERVICES

4.3.7.1. BARRING OF ALL OUTGOING CALLS (BAOC)

         4.3.7.1.1. The IGF shall comply with the GSM phase 2 Barring of All
         Outgoing Calls (BAOC) service as defined in TS GSM 02.88, TS GSM 03.88
         and TS GSM 04.88.

4.3.7.2. BARRING OF ALL INCOMING CALLS (BAIC)

         4.3.7.2.1. The IGF shall comply with the GSM phase 2 Barring of All
         Incoming Calls (BAIC) service as defined in TS GSM 02.88, TS GSM 03.88
         and TS GSM 04.88.

4.3.7.3. BARRING OF ALL OUTGOING INTERNATIONAL CALLS (BOIC)

         4.3.7.3.1. The IGF shall support Barring of all outgoing
         international calls (BOIC), using the standard unmodified GSM
         functionality. However this may not fully function as specified for
         ICO operation.

4.3.7.4. BARRING OF OUTGOING INT. CALLS EXCEPT THOSE TO THE HOME COUNTRY
         (BOICexHC)

         4.3.7.4.1. The IGF shall support Barring of outgoing international
         calls except those to the Home Country (BOICexHC), using the standard
         unmodified GSM functionality.

4.3.7.5. BARRING OF INC. CALLS WHEN ROAMING OUTSIDE THE HOME COUNTRY (BIC-Roam)

         4.3.7.5.1. The IGF shall support Barring of incoming calls when roaming
         outside the Home Country (BIC-Roam), using the standard unmodified GSM
         functionality.

4.3.8.   ADVICE OF CHARGE SERVICES

4.3.8.1. ADVICE OF CHARGE - INFORMATION LEVEL (AoCI)

         4.3.8.1.1. The IGF shall comply in full with the GSM phase 2 Advice of
         Charge - Information Level (AoCI) service as defined in TS GSM 02.86,
         TS GSM 03.86 and TS GSM 04.86.

         4.3.8.1.2. The service on offer does not include any ICO specific
         modifications.

4.3.8.2. ADVICE OF CHARGE-CHARGING LEVEL (AoCC)

         4.3.8.2.1. The IGF shall comply in full with the GSM phase 2 Advice Of
         Charge - Charging Level (AoCC) service as defined in TS GSM 02.86, TS
         GSM 03.86 and TS GSM 04.86.

         4.3.8.2.2. The service on offer does not include any ICO specific
         modifications.

4.4.     ICO SPECIFIC SERVICES

4.4.1.   HIGH PENETRATION NOTIFICATION (HPN) SERVICE

4.4.1.1. SERVICE DEFINITION

         4.4.1.1.1. The IGF shall support the subscription
         (provision/withdrawal) of the ICO HPN supplementary service (HPN-SS)
         on an individual subscriber (IMSI) basis.

         4.4.1.1.2. The IGF shall support the following two levels of priority
         for the scheduling of HPN messages as a subscription option:

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4.4.1.2.  HPN PRIVACY

          4.4.1.2.1. The HPN transmission to the UT shall be encrypted by a
          [TBD] encryption algorithm. The algorithm shall be supplied by ICO.
          The algorithm shall use a time variant key (Kh) which is derived from
          the subscriber TMSI and HPN Frame Id. The application of HPN privacy
          based on the TMSI shall not compromise the existing security
          mechanisms applied to the other channels.

4.4.2.    ICO DUAL-NUMBERING

          4.4.2.1. The IGF shall support the subscription by cellular roamers to
          the ICO dual-numbering option. This requires the provision of an
          Interworking Location Register for the applicable cellular network
          standard.

          4.4.2.2. The IGF shall support the allocation of an ICO MSISDN to an
          existing cellular subscriber, in addition to the existing cellular
          MSISDN, for each service subscribed to.

          4.4.2.3. For a subscriber with ICO dual-numbering, the IGF shall
          support the delivery of incoming calls via ICO MSISDNs to:

               1. subscribers currently registered on ICO

               2. subscribers currently registered on cellular networks

          4.4.2.4. For a subscriber with ICO dual-numbering, the ILR shall
          support the selection, at subscription time, by the end-user of the
          primary MSISDN to be used for calling line identification (CLI)
          purposes. (F/R)

          4.4.3. NATURAL LANGUAGE SUPPORT

          4.4.3.1. The IGF shall support the selection of a "preferred language"
          by the end-user as a subscription option.

          4.4.3.2. The IGF shall store the "preferred language" of the
          subscriber in the service profile stored within the HLR and VLR
          registers.

          4.4.3.3. The IGF shall also store the "preferred language" of the
          subscriber in the service profile contained within the
          cellular/satellite interworking function. (F/R)

          4.4.3.4. For voice announcements and prompts to the subscriber the IGF
          shall employ the "preferred language" to select the language used.

          4.4.3.5. For announcements the IGF shall support a minimum of 30
          different languages, subject to the storage capacity for
          announcements.

          4.4.3.6. For voice messaging services, the IGF shall also support the
          use of a language preference the extent of this support shall be
          determined by the PDR.

          4.4.3.7. For roamers to the ICO network, the IGF shall support the
          derivation of the correct language for announcements etc., from the
          home network (MCC/MNC) of the subscriber via IMSI-range analysis.

4.5. MAIL AND MESSAGING SERVICES

4.5.1. GENERIC MESSAGING PLATFORM REQUIREMENTS

          4.5.1.1. The IGF shall include a flexible messaging platform for the
          provision of the following mail and messaging services:

               1. voice mail

               2. fax mail

               3. short messaging (SMS)

               4. email

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               1. standard

               2. high priority

          4.4.1.1.3. In accordance with the ISDN/GSM service model, the HPN
          supplementary service shall apply to the following basic service
          groups as defined in TS GSM 02.04:

               1. speech (BSG 1)

               2. short message service (BSG 2)

               3. facsimile services (BSG 6)

               4. data circuit asynchronous (BSG 7)

               5. data circuit synchronous (BSG 8)

          4.4.1.1.4. The IGF shall support the subscription to the HPN service
          by cellular roamers to the ICO network via the appropriate
          cellular/satellite interworking function.

          4.4.1.1.5. The HPN-SS shall be activated as a result of provision i.e.
          no user MMI actions are required for the registration/erasure/
          activation/deactivation of this service.

          4.4.1.1.6. The HPN-SS shall be invoked by the IGF on the failure to
          page a UT for the purpose of incoming call alerting or delivery of a
          mobile terminated SMS message.

          4.4.1.1.7. The HPN-SS shall also be invoked in case of an attempt to
          deliver an incoming call or mobile terminated short message to a
          subscriber for whom the IMSI-detach flag has been set. In such cases
          the escalation to HPN paging shall occur without any attempt at medium
          penetration (MP) paging.

          4.4.1.1.8. The invocation of the HPN-SS by the IGF shall result in the
          transmission of a HPN message to the UT.

          4.4.1.1.9. The IGF shall support the following types of content for
          the HPN message, as specified in ICO 103.40:

               1. notification with information extracted from the header of an
                  SMS message

               2. incoming call details (e.g. the calling line identity)

          4.4.1.1.10. The IGF shall support the reception of an HPN
          acknowledgement from the UT.

          4.4.1.1.11. In the event of a failure by the IGF to reach the UT,
          macro-diversity shall be applied in the form of multiple retries over
          an extended period of time.

          4.4.1.1.12. The HPN-SS shall be restricted by the IGF to subscribers
          roaming within the ICONET and shall not interfere in any way with the
          services on offer to ICO subscribers whilst roaming in foreign
          networks.

          4.4.1.1.13. The IGF shall support the applications defined in the
          appendices of ICO 103.40.

          4.4.1.1.14. The IGF shall support the 103.40, 05.xx,04.xx, and 104.08
          Series A1 documents.

          4.4.1.1.15. The IGF shall be capable of using any satellite visible
          (down to an NMC configurable limit) to the UT, to increase the
          likelihood of message delivery.

          4.4.1.1.16. The IGF shall use co-ordination and queuing methods to
          reduce message delivery delay and to achieve efficient use of the
          satellite resource.

          4.4.1.1.17. The IGF shall resend messages, up to a configurable limit,
          where this can increase message transfer success.

          4.4.1.1.18. The HPN subsystem shall prevent re-transmission of a
          message when an acknowledgement for the message has been received from
          the UT.

          4.4.1.1.19. For further details of the HPN service see ICO 103.40.

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          5. distribution lists, distribution of voice mail according to pre-set
             distribution lists. (F/R)

4.5.3. FAX MAILBOX

     4.5.3.1. The messaging platform shall support the allocation of a fax mail
     box on an individual subscriber (MSISDN) basis.

     4.5.3.2. The IGF messaging platform shall support the following functions
     for fax mailboxes:

          1. deposit, reception of fax

          2. retrieval of fax to UT

          3. retrieval of fax to fixed phone

          4. forwarding of fax to other destinations

          5. distribution, distribution of faxes according to pre-set
             distribution lists.

     4.5.3.3. The IGF shall support the use of standard fax cover sheets for the
     forwarding/distribution of fax mail. (F/R)

     4.5.3.4. In case of distribution, the IGF messaging platform shall insert
     the appropriate name and fax number from the distribution list into the fax
     cover sheet. (F/R)

4.5.4. EMAIL

     4.5.4.1. The messaging platform shall support the allocation of an email
     account on an individual subscriber basis.

     4.5.4.2. The IGF messaging platform shall support the following email
     functions:

          1. transmission of email to external systems, including at least
             Internet SMTP.

          2. reception of email from external systems, including at least
             Internet SMTP.

          3. forwarding of email

          4. conversion of email to SMS messages for notification purposes

          5. conversion of SMS message(s) to email.

4.5.5. SMS

     4.5.5.1. The messaging platform shall support the use of SMS without an
     explicit subscriber profile in the messaging platform.

     4.5.5.2. The IGF messaging platform shall support the following SMS
     functions:

          1. reception/storage/transmission of short messages from/to
             subscribers located within the ICONET

          2. reception/storage/transmission of short messages from/to
             subscribers located within cellular networks

          3. reception/storage/transmission of short messages from/to external
             information providers

          4. conversion of short messages to email

     4.5.5.3. The IGF messaging platform shall include the following GSM
     standard functionality:

          1. the SMS centre (SMSC) functionality as defined in TS GSM 03.40

          2. the SMS gateway MSC (SMS-GMSC) functionality as defined in TS GSM
             03.40

          3. the SMS interworking MSC (SMS-IWMSC) functionality as defined in TS
             GSM 03.40

     4.5.5.4. The IGF messaging platform shall support the following GSM
     standard features:

          1. the use of the validity period as defined in TS GSM 03.40

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     4.5.1.2. The IGF messaging platform shall support both a centralised or
     de-centralised configuration for the provision of messaging services.

     4.5.1.3. In order to support the distributed mailbox architecture, the IGF
     messaging platform shall support

          1. remote access (storage and retrieval) to a mailbox from another
             messaging node (F/R)

          2. the exchange of mail, in compressed form, between different
             messaging nodes. (F/R)

     4.5.1.4. The IGF messaging platform shall support the subscription by the
     end-user to a combination of any of the following types of mailbox:

          1. voice mailbox

          2. fax mailbox

          3. email

     4.5.1.5. The IGF shall provide a flexible script-based menu system for
     dialogue with the end-user. Interaction with the end-user shall be by means
     of DTMF.

     4.5.1.6. The IGF messaging platform shall support, as a subscription
     option, the use of multiple languages, for voice prompts and other forms of
     dialogue with the end user.

     4.5.1.7. The IGF shall provide the necessary tools for ICO to modify the
     individual menus or scripts employed by the messaging platform. This shall
     be provided by means of the COMVERSE KeyTASC, FlowTASC and SynTASC
     utilities.

     4.5.1.8. The IGF messaging platform shall support the use of multiple time
     zones. The time zone to be employed for a particular mailbox shall be a
     subscription option.

     4.5.1.9. The IGF messaging platform shall support the use of an individual
     personal identification number (PIN) for access protection. The subscriber
     shall be able to modify his/her PIN as part of the mailbox customisation
     process.

     4.5.1.10. The IGF messaging platform shall permit the mailbox owner to
     record and install personalised greetings for each of the mailbox services
     subscribed to.

     4.5.1.11. The IGF messaging platform shall produce call detail records for
     each mailbox transaction including, but not limited to the following:

          1. deposit

          2. retrieval

          3. forwarding/distribution of mail

          4. notification of waiting mail

          5. customisation of mailbox options.

     4.5.1.12. The IGF messaging platform shall also support Automatic Speech
     Recognition (ASR) and Interactive Voice Response (IVR) (OPTION).

4.5.2. VOICE MAILBOX

     4.5.2.1. The messaging platform shall support the allocation of a voice
     mail box on an individual subscriber (MSISDN) basis.

     4.5.2.2. The IGF messaging platform shall support the following functions
     for voice mailboxes:

          1. deposit, reception of voice mail

          2. retrieval of voice mail from a UT

          3. retrieval of voice mail from a fixed phone

          4. forwarding of voice mail

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               5.   Pause
               6.   Replay/Rewind
               7.   Message information
               8.   Skip/FF
               9.   Delete/Save
               10.  Rapid Retrieval Mode
               11.  Operator Fallback (F/R)
               12.  Record and Deposit Message to Another Mailbox
               13.  Enable/Disable Automatic Message Information
               14.  SPIG-Service Provider Identity Greeting
               15.  Standard System Greeting
               16.  Personal Greeting
               17.  Absence Greeting

     4.5.6.12. Security Control
               1.   Change Password
               2.   Enable/Disable Mailbox Security

     4.5.6.13. SMS Notification
               1.   Enable/Disable SMS Notification
               2.   New Voice Mail
               3.   Mailbox Full

     4.5.6.14. Outdial Notification
               1.   Enable/Disable Outdial Notification
               2.   Review & Change Outdial Number
               3.   Voice Prompt Only

     4.5.6.15. Voice Prompt Followed by New Messages

4.5.7. MAILBOX NOTIFICATION

     4.5.7.1.  The messaging platform shall support SMS notification over the
               GSM network and shall be able to make an outdial for notification
               and delivery of the waiting messages.

     4.5.7.2.  It shall be also possible to send a notification as an Internet
               mail.

     4.5.7.3.  It shall be possible to make an outdial to a paging network for
               paging notification.

     4.5.7.4.  In case of voice call-back ("outdial") and activated call
               forwarding, the IGF shall prevent the forwarding of the call-back
               notification to the same mailbox (i.e. to avoid loop-back).

4.5.8. ACCESS TO EXTERNAL SYSTEMS

     4.5.8.1.  The messaging platform shall support the exchange of messages
               with external systems via:

               1. dial-up connection (e.g. for generation of MT SMS)

               2. external mail systems

                         - Internet SMTP

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               2.   delivery of both standard and priority short messages as
                    defined in TS GSM 03.40

               3.   status reporting as defined in TS GSM 03.40

               4.   the use of the reply-path functionality described in TS GSM
                    03.40

               5.   message waiting data and the service centre alerting
                    procedure as defined in TS GSM 03.40 and TS GSM 09.02

               6.   the GSM default alphabet as defined in TS GSM 03.38

               7.   multi-alphabet support including UCS2/UNICODE (ISO 10646-1)

               8.   user-defined (8-bit binary) encoding as defined in TS GSM
                    03.38

               9.   multiple short message transfer (to avoid re-authentication
                    etc.) as defined in TS GSM 03.40

               10.  segmentation and reassembly of "long messages"

4.5.6. MAILBOX ACCESS AND RETRIEVAL

     4.5.6.1.  The IGF shall support the use of a short form common access
     number (2-3 digits) for access to the messaging system from within the ICO
     network.

     4.5.6.2.  The IGF shall also support a common access number for access to
     the messaging system from outside the ICO network i.e. from the PSTN/ISDN.

     4.5.6.3.  The IGF shall be capable of deriving the correct mailbox number
     from the calling line identity (CLI) if available.

     4.5.6.4.  If the CLI is unavailable or no matching mailbox entry can be
     found then it shall be possible for the end user to select the required
     mailbox number e.g. via DTMF.

     4.5.6.5.  The IGF shall also support the use of a personal identification
     number (PIN) or password, for example via DTMF, for authentication
     purposes.

     4.5.6.6.  In cases where the CLI is unavailable the entry of the correct
     password shall be mandatory.

     4.5.6.7.  If the CLI is available then the usage of the password shall be
     configurable (enable/disable) by the end user.

     4.5.6.8.  It shall also be possible for the end user to change the
     password.

     4.5.6.9.  The functions supported in the Voicemail subsystem shall include
     the following.

     4.5.6.10. Deposit Session

               1.   Common Access Number

               2.   Message Review & Re-recording

               3.   Pre-defined Text Message Menu

               4.   Language Selection

               5.   Operator Fallback

               6.   Access to Additional Mailboxes

               7.   Transfer to Mailbox Retrieval Session

     4.5.6.11. Retrieval & Administration Session

               1.   Common Access Number

               2.   New User Setup

               3.   System Administrator Broadcast Message

               4.   Subscriber Language Control

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               - X.400 (F/R)

          3. existing paging systems via the Telecator Network Paging Protocol
             (TNPP) (F/R)
          4. external user client/ system via the Telecator Application
             Protocol (TAP) and V.32
          5. external user client/ system via TDP/TME and V.32 and Modem Pool
          6. external user client/ system via TDP/TME and TCP/IP
          7. external user client/ system via the Computer Access Protocol
             Version II (CAP II) over X.25 (F/R)

4.6. ADVANCED SERVICES (F/R)

4.6.1. GENERAL IN PLATFORM REQUIREMENTS

4.6.1.1. GENERAL

     4.6.1.1.1. The IGF shall include an intelligent network (IN) platform to
     enable the provision of customised services for calls to/from both ICO
     subscribers and roamers within the ICONET.

     4.6.1.1.2. The IN platform shall include the following components:
          1. an integrated Service Switching function (SSF) in each MSSC
          2. Intelligent Peripherals (IPs) either standalone or integrated in
             the MSSC
          3. Service Control Point (SCP) with integrated Service Data Point
             (SDP)
          4. Service Management Point (SMP) with Service Management Access
             Function (SMAF)
          5. Service Creation Environment (SCE) including workstations

4.6.1.2. SERVICE SWITCHING FUNCTION (SSF)

     4.6.1.2.1. Each MSSC of the IGF shall be equipped with an integrated SSF
     function as defined in ITU-T Q.1214.

     4.6.1.2.2. The MSSC shall also be capable of routing to an SSF located in a
     standalone Service Switching Point (SSP) either within ICONET or other
     networks.

     4.6.1.2.3. The SSF shall be capable of communicating with SCPs, both within
     the ICONET and other networks, via the ETSI CORE INAP (CS-1) protocol as
     defined in ETS 300 374.1.

     4.6.1.2.4. The SSF shall be capable of being upgraded to CS-2 as and when
     this becomes available.

     4.6.1.2.5. In addition to the standard ETSI CS-1 INAP features, the IGF
     INAP shall support via the appropriate extension mechanisms, the transport
     of mobile specific information including, but not limited to, the
     following:
          1. IMSI
          2. Class Mark
          3. Basic Service Codes and bearer capabilities
          4. Supplementary service codes and parameters
          5. UT position (i.e. Service Area)

     4.6.1.2.6. The SSF shall also be capable of supporting the GSM CAMEL
     feature, as defined in TS GSM 02.78, when this becomes available.

     4.6.1.2.7. Each SSF of the IGF shall be capable of communicating with
     multiple SCPs including, but not limited to:
          1. service based routing i.e. specific services assigned to specific
             SCPs

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          2. subscriber based routing i.e. subscriber groups assigned to
             specific SCPs
          3. loadsharing between multiple but functionally equivalent SCPs

     4.6.1.2.8. In the event of an outage of a particular SCP, it shall be
     possible to route traffic automatically to an alternative or backup SCP.

     4.6.1.2.9. The SSF shall support both originating and terminating state
     models, detection points and triggers.

     4.6.1.2.10. The SSF shall support the terminating state model in both the
     GMSSC and the VMSSC.

     4.6.1.2.11. The SSF shall support triggering on the basis of the analysis
     of the dialled digit string and on the basic of service keys stored in the
     service profile of the HLR/VLR.

     4.6.1.2.12. The HLR shall support the provisioning of the IN service keys
     in the HLR and the HLR component of the appropriate cellular/satellite
     interworking function (CS-IWF).

     4.6.1.2.13. The SSF shall support triggering on the basis of both dialled
     number (MSISDN) and roaming number (MSRN) in the GMSSC. This shall include
     the ability of the SSF to prevent the subsequent triggering on MSRN if an
     IN dialogue on the basis of the MSISDN has already taken place.

     4.6.1.2.14. The presence or lack of an IN service key shall not interfere
     in any way with the operation of the GSM emergency call service.

     4.6.1.2.15. The SSF shall also be capable of supporting mobile specific
     extensions to the basic call state models in order to permit the initiation
     of an INAP dialogue as a result of:
          1. location registration/updating
          2. mobile originated/terminated SMS
          3. management of supplementary service information
             (reg./era./act./deact./int.) by the end-user
          4. unstructured supplementary service data (USSD)

4.6.1.3. INTELLIGENT PERIPHERALS (IPs)

     4.6.1.3.1. The IGF shall include intelligent peripherals (IPs) for
     interaction with the end-user as defined in ITU-T Q.1214.

     4.6.1.3.2. The IGF IPs shall support the generation of announcements and
     tones.

     4.6.1.3.3. The IGF IPs shall support the collection of digits from the
     end-user via the prompt and collect user information operation.

     4.6.1.3.4. The IGF IPs shall support the reception of DTMF tones as defined
     in ITU-T Q.23 and CEPT T/CS 46.08.

     4.6.1.3.5. The IGF IPs shall support the simultaneous allocation of
     announcements and tone generators to the same channel as a DTMF receiver.

     4.6.1.3.6. The IGF IPs shall support the assignment of both interruptible
     and non-interruptible announcements according to the INAP protocol.

4.6.1.4. SERVICE CONTROL POINT (SCP)

     4.6.1.4.1. The SCP shall include a service control function (SCF) as
     defined in ITU-T Q.1214.

     4.6.1.4.2. The SCF shall be capable of selecting the particular service(s)
     to be executed on the basis of the contents of the INAP initialDP message
     including, but not limited to, the following:
          1. service key
          2. called party number

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          3. calling party number

          4. detection point.

      4.6.1.4.3. The SCF shall also be capable of selecting the service(s) to be
      executed on the basis of the service data stored in the SDF.

      4.6.1.4.4. The SCF shall be capable of controlling the generation of call
      detail records in the SSF.

      4.6.1.4.5. The SCF shall be capable of storing additional IN relevant data
      in the call detail records produced by the SSF component of the MSSC.

      4.6.1.4.6. The SCF shall provide mechanisms for the generation and
      collection of statistics for the usage of services.

      4.6.1.4.7. The SCP shall support mechanisms and interfaces to distribute
      the collected statistics to the IGF NMC.

      4.6.1.4.8. The SCP shall include an internal Service Data Function (SDF)
      as defined in ITU-T Q.1214.

      4.6.1.4.9. The SDF shall be capable of providing storage and access
      mechanism for service data including:

          1. global data applicable to all services

          2. data applicable to particular service types

          3. call instance data for a particular service instance

          4. service subscriber data

          5. service user data

          6. service provider data.

      4.6.1.4.10. The SCP shall be capable of handling multiple versions of each
      service in order to permit the introduction of new services whilst
      maintaining a fall-back capability in case of service failure.

      4.6.1.4.11. The SCP shall support the scheduled activation/deactivation of
      services.

      4.6.1.4.12. The SCP shall be capable of operation in both simplex and
      mated-pair configurations.

      4.6.1.4.13. The SCP shall include overload protection mechanisms.

      4.6.1.4.14. The SCF shall also be capable of supporting the GSM CAMEL
      feature, as defined in TS GSM 02.78, when this becomes available.

4.6.1.5. SERVICE MANAGEMENT POINT (SMP)

      4.6.1.5.1. The SMP shall be capable of managing the provisioning and
      deployment of new services including, but not limited to, the following:

          1. management and distribution of service data to the SCPs

          2. interfacing to the ICO ADC for provisioning

          3. management and distribution of service logic

      4.6.1.5.2. The IGF SMAF shall support the access by external systems to
      the SMP including both service subscribers and service provider systems.

4.6.1.6. SERVICE CREATION ENVIRONMENT (SCE)

      4.6.1.6.1. The IGF shall include a service creation environment to support
      the development and testing of new IN services.

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      4.6.1.6.2. The IGF SCE shall include:

          1. a GUI based service development facility

          2. the creation and maintenance of Service Independent Building blocks
             (SIBs)

          3. testing and debugging facilities for trialling new services

          4. user terminal, SCP and SSP simulation capability for the validation
             of services prior to deployment in a live environment.

          5. interfaces to the SMP for downloading new service logic, data and
             management components.

4.6.2. IN SERVICES

4.6.2.1. GENERAL

      4.6.2.1.1. The IGF intelligent network (IN) platform shall enable the
      provision of customised services for calls to/from both ICO subscribers
      and roamers within the ICONET via the appropriate cellular/satellite
      interworking function.

      4.6.2.1.2. The IGF shall support the customisation of the service offering
      on the basis of at least the following:

          1. identify (IMSI/MSISDN) of the subscriber

          2. the location (service area) of the UT

          3. the A-party number (CLI)

          4. the called number

          5. time and date.

      4.6.2.1.3. The IN platform of the IGF shall support the use of multiple
      languages for use in dialogues with the end-user.

      4.6.2.1.4. The IGF IN platform shall support a minimum of 30 different
      languages.

      4.6.2.1.5. The IGF shall support the choice of language on the basis of
      individual service profiles, calling party number analysis (IMSI and
      MSISDN), location of the UT (i.e. service area), etc.

4.6.2.2. COMMUNITY OF INTEREST SERVICES

4.6.2.2.1. VIRTUAL PRIVATE NETWORKS (VPN)

      4.6.2.2.1.1. The IGF shall support a Virtual Private Network Service as
      defined in ITU-T Q.12.11. This shall include the necessary service scripts
      and service management application

      4.6.2.2.1.2. The IGF shall support the creation of ICO specific VPNs.

      4.6.2.2.1.3. The IGF shall support access from the ICONET to existing VPNs

4.6.2.3. SUBSCRIBER-SPECIFIC IN SERVICES

4.6.2.3.1. ADVANCED CALL FORWARDING

      4.6.2.3.1.1. The IGF shall support the use of the IN platform to provide a
      more advanced and more flexible form of call forwarding based on
      calling/called party numbers, date, time, location (i.e. service area),
      etc.

      4.6.2.3.1.2. The IGF shall support the creation by ICO of such services
      via the service creation environment (SCE). A ready-made service script
      will not be included.

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4.6.2.3.2. ADVANCED CALL BARRING

     4.6.2.3.2.1. The IGF shall support the use of the IN platform to provide a
     more advanced and more flexible form of call barring based on
     calling/called party numbers, date, time, location (i.e. service area),
     permitted and forbidden number lists, etc.

     4.6.2.3.2.2. The IGF shall be capable of applying advanced barring services
     in both the gateway MSSC (GMSSC) and the visited MSSC (VMSSC).

     4.6.2.3.2.3. The IGF shall support the creation by ICO of such services via
     the service creation environment (SCE). A ready-made service script will
     not be included.

4.6.2.3.3. ORIGINATING CALL SCREENING

     4.6.2.3.3.1. The IGF shall support an Originating Call Screening (OCS)
     service as defined in ITU-T Q.1211.

     4.6.2.3.3.2. The IGF shall support the creation by ICO of such screening
     services via the service creation environment (SCE). A ready-made service
     script will not be included.

4.6.2.3.4. TERMINATING CALL SCREENING

     4.6.2.3.4.1. The IGF shall support a Terminating Call Screening (TCS)
     service.

     4.6.2.3.4.2. The IGF shall be capable of applying TCS in both the gateway
     MSSC (GMSSC) and the visited MSSC (VMSSC).

     4.6.2.3.4.3. The IGF shall support the creation by ICO of such screening
     services via the service  creation environment (SCE). A ready-made service
     script will not be included.

4.6.2.3.5. LOCATION DEPENDENT ROUTING

     4.6.2.3.5.1. The IGF shall support the use of the IN platform to provide a
     more advanced and more flexible form of call routing based on the location
     of the UT (service area), calling/called party numbers, date, time, etc.
     This shall include the necessary service script(s) and service management
     application.

     4.6.2.3.5.2. For further details see the description of the Ericsson
     feature of the same name.

4.6.2.3.6 PERSONAL NUMBER

     4.6.2.3.6.1. The IGF IN platform shall support the personal number service
     i.e. the allocation of a single directory number for multiple destinations
     each of which is tried in turn until the call is answered. This shall
     include the necessary service script(s) and service management application.

     4.6.2.3.6.2. For further details see the description of the Ericsson
     feature of the same name.

4.6.2.3.7. HOT LINE ROUTING

     4.6.2.3.7.1. The IN platform of the IGF shall support the "hot line"
     routing i.e. the forced routing of all mobile originated calls from a
     particular subscriber to a single destination.

     4.6.2.3.7.2. The IGF shall support the creation by ICO of such services
     via the service creation environment (SCE). A ready-made service script
     will not be included.

4.6.2.3.8. CALLER LIST

     4.6.2.3.8.1. The IN platform of the IGF shall support the "caller list" or
     "CLI mailbox" functionality i.e. the storage of the CLI for failed incoming
     call attempts in a CLI mailbox, and the subsequent interrogation of that
     mailbox by the subscriber.

     4.6.2.3.8.2. The IGF shall support the creation by ICO of such services via
     the service creation environment (SCE). A ready-made service script will
     not be included.

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4.6.2.4. CHARGING SERVICES

4.6.2.4.1. PRE-PAID (DEBIT) SERVICE

     4.6.2.4.1.1. The IGF shall support the use of pre-paid SIM cards. This
     shall include the necessary service scripts and service management
     application.

     4.6.2.4.1.2. The following functions shall be included:
          1. the maintenance of the balance in real-time by the IGF
          2. the indication of a warning to the subscriber in the event of a
             lack of pre-cleared funds
          3. the immediate disconnection of a connection when the balance
             reaches zero
          4. the ability to check the B-number against screening lists
          5. usage of carrier access code.

4.6.2.4.2. PRIVATE CALLS

     4.6.2.4.2.1. The IGF shall support the use of two directory numbers for the
     same basic service, for business and private use respectively, in
     combination with a single subscription (IMSI).

     4.6.2.4.2.2. The CDRs collected by the IGF shall support the separate
     billing of the subscriber for business and private usage based on the
     number dialled.

     4.6.2.4.2.3. For mobile originated calls, the IGF shall permit the
     subscriber to determine to which of the two accounts (business/private) the
     call is to be billed and this shall be recorded in the appropriate CDRs.

     4.6.2.4.2.4. The IGF shall support the creation by ICO of such services via
     the service creation environment (SCE). A ready-made service script will
     not be included.

4.6.2.4.3. SPLIT BILLING

     4.6.2.4.3.1. The IGF shall support the Split Billing (SPL) service as
     defined in ITU-T Q.1211.

     4.6.2.4.3.2. The IGF shall support the creation by ICO of such services via
     the service creation environment (SCE). A ready-made service script will
     not be included.

4.7. SUBSCRIPTION TO ICO SERVICES

4.7.1. GENERAL

     4.7.1.1. The IGF shall support the necessary subscriber profiles to permit
     the subscription to the services on offer within the ICO network and
     subscription checking prior to service usage. This shall include the
     subscriber profiles stored in the:
          1. home location register (HLR)
          2. authentication centre (AuC)
          3. intelligent network service control point (SCP) (F/R)
          4. messaging platform (VMS/SMSC).

     4.7.1.2. (Note: services such as "itemised billing" are a matter for
     post-processing and are outside the scope of this section.)

4.7.2. SUBSCRIPTION PROFILES IN THE HLR/VLR

     4.7.2.1. The HLR/VLR shall support the GSM standard profiles as defined in
     TS GSM 03.08 and TS GSM 12.02.

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4.7.2.2.  The HLR shall support the subscription (provision/withdrawal) of each
          of the GSM basic and supplementary services on offer within the ICO
          network on an individual subscriber (IMSI) basis. This shall include
          each of the subscription options described in the applicable
          individual GSM technical specifications.

4.7.2.3.  The HLR and MSSC/VLR shall support the usage of PLMN (ICO) specific
          basic and supplementary services as defined in TS GSM 09.02.

4.7.2.4.  The HLR and MSSC/VLR shall support the extension of the subscriber
          profile transferred via the MAP protocol by means of the ellipsis
          ("...") notation as described in TS GSM 09.02.

4.7.2.5.  The IGF shall support the allocation of a basic or primary MSISDN.
          The MSISDN shall be transferred to the VLR from the HLR and employed
          for the purpose of calling line identification.

4.7.2.6.  The HLR and MSSC/VLR shall support the allocation of additional
          MSISDNs for different basic services and/or bearer capabilities and
          use in connection with mobile terminated services. This is the GSM
          "multi-numbering" method as defined in TS GSM 09.07.

4.7.2.7.  The HLR and MSSC/VLR shall support the subscription to the ICO
          specific services (HPN, language preference etc.) as defined in the
          previous sections.

4.7.2.8.  The IGF shall support regional subscription on the basis of ICO
          defined service areas. The IGF shall support a minimum of 65,000
          service areas. These areas shall be non-uniform in size and freely
          configurable under ICO control.

4.7.2.9.  The service areas shall permit the ICO Service providers to offer
          their customers subscription choices ranging from:

          1.  Global subscription;

          2.  Regional subscription: limited to one or several of the
              ICO-defined subscription areas;

          3.  Fixed subscription: limited to a fixed geographic location
              defined by a specific minimum sized service area.

4.7.2.10. Subscription with different tariff ideas shall be possible for the
          above subscription choices.

4.7.2.11. It shall be possible for the MSSC/VLR to deny mobile originated and
          mobile terminated service to a subscriber located outside the
          regional or fixed subscription area.

4.7.2.12. The IGF shall also support regional charging i.e. the application of
          a different set of tariffs for services used whilst still roaming
          outside the local subscription area.

4.7.2.13. The IGF shall be capable of providing an indication to the
          subscriber of the current coverage area. This shall include an out of
          area indication if the subscriber roams outside the local area.

4.7.2.14. For those services based on in-band detection of modem and fax tones,
          a subscription to the basic telephony service shall be required. An
          explicit subscription to these services is not required.

4.7.2.15. The HLR and VLR shall support the storage of intelligent network (IN)
          service profile information in the subscription files.

4.7.3.    SUBSCRIBER PROFILES IN THE IN PLATFORM (F/R)

4.7.3.1.  For those services provided by the ICONET Intelligent network
          platform, the IN SCP and service management function (SMAS) shall
          support the use of individual subscriber profiles.

4.7.3.2.  For individual profiles, the subscriber shall be identified by means
          of the MSISDN.
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4.7.4.    SUBSCRIBER PROFILES IN THE MESSAGING PLATFORM

4.7.4.1.  For those services provided by the ICONET messaging platform, the
          messaging platform shall support the use of individual subscriber
          profiles.

4.7.4.2.  For individual profiles, the subscriber shall be identified by means
          of one or more MSISDNs.

4.8.      CELLULAR/SATELLITE ROAMING

4.8.1.    GENERAL

4.8.1.1.  The IGF shall support roaming between the ICONET and the following
          types of cellular network

          1.  networks employing GSM MAP (GSM 900/DCS 1800/PCS 1900)

          2.  networks employing TIA IS.41 (AMPS/DAMPS/CDMA)

          3.  networks employing TTC MAP (PDC 800/PDC 1500) (OPTION)

4.8.1.2.  The IGF shall support roaming in both directions i.e. from other
          networks to ICO, and from ICO to other networks in accordance with
          the table in Section 4.8.9.

4.8.2.    ROAMING WITH IS.41 BASED NETWORKS

4.8.2.1.  For roaming between IS.41 based networks and ICONET an additional
          "roaming subscription" is required to map the identifiers and
          services employed within the home and visited network. The IGF shall
          support the provisioning of this additional service profile
          information.

4.8.2.2.  For roaming from IS.41 based networks to ICONET, the cellular/
          satellite interworking function of the IGF shall perform the functions
          of an IS.41 VLR towards the IS.41 network and the functions of a GSM
          HLR/AuC towards the ICONET.

4.8.2.3.  For roaming from ICONET to IS.41 based networks, the cellular/
          satellite interworking function of the IGF shall perform the functions
          of an IS.41 HLR/AuC towards the IS.41 network and the functions of a
          GSM VLR towards the ICONET.

4.8.2.4.  For roaming with IS.41 based networks, the IGF shall support
          interworking with cellular networks employing the following versions
          of the IS-41 protocol:

          1.  IS-41 Revision B

          2.  IS-41 Revision C

          3.  IS-41 Revision D (ANSI 41) (OPTION)

4.8.2.5.  In the case of interworking with IS-41 Revision D based networks, the
          IGF shall support, as a minimum, the following:

          1.  use of IMSIs on the IS-41 side (OPTION)

          2.  global title translation on the IS-41 side for full international
              roaming support (OPTION)

4.8.3.    ROAMING WITH PDC NETWORKS (OPTION)

4.8.3.1.  For roaming between TTC MAP based networks and ICONET an additional
          "roaming subscription" is required to map the identifiers and
          services employed within the home and visited network. The IGF shall
          support the provisioning of this additional service profile
          information.

4.8.3.2.  For roaming from PDC networks to ICONET, the cellular/satellite
          interworking function of the IGL shall perform the functions of a PDC
          GLR towards the PDC network and the functions of a GSM HLR/AuC
          towards the ICONET.

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          4.8.3.3.   In order to support the handling of roaming numbers and the
          routing of calls between PDC networks and the ICONET a switching
          function, the cellular/satellite gateway MSC (CS-GMSC, is also
          required. The cellular/satellite roaming function of the IGF shall
          include the required CS-GMSC functionality.

          4.8.3.4.   For roaming with PDC based networks, the IGF shall support

                     1.  version 2 (1994) of the TTC MAP DMNI standard
                         (TTC JJ-70.10)

                     2.  the proprietary Digital Tuka interface (DTIF).

4.8.4.    ROAMING WITH GSM BASED NETWORKS

4.8.4.1.  ANONYMOUS GSM ROAMERS

          4.8.4.1.1. For roaming between GSM based networks and ICONET, the IGF
          shall support automatic and "anonymous" roaming i.e. roaming based on
          the service profile stored in the home network and without an explicit
          subscription to the visited network.

4.8.5.    GENERIC ROAMING FUNCTIONS

4.8.5.1.  NUMBERING, ADDRESSING AND IDENTIFICATION

          4.8.5.1.1. The IGF shall support the mapping between the different
          identifiers employed within the different networking standards for
          numbering and identification purposes. This shall include the mapping
          between:

                     1.  GSM IMSI/MSISDN and IS.41 MIN/ESN

                     2.  GSM IMSI/MSISDN and PDC MSN/MSI (OPTION)

          4.8.5.1.2. The cellular/satellite interworking functions shall be
          capable of handling any ITU-T E.212 compliant IMSI e.g. the use of the
          PDC MSI as an IMSI without the allocation of and mapping  to an ICO
          IMSI

4.8.5.2.  AUTHENTICATION

          4.8.5.2.1. In order to protect roamers from fraudulent misuse, the IGF
          shall support the use of authentication in all roaming cases.

          4.8.5.2.2. In cases where end-to-end authentication between the
          subscriber and the home HLR is not technically possible, the IGF shall
          at least support the use of authentication between the subscriber and
          the cellular/satellite interworking function employing the
          authentication procedures of the visited network.

          4.8.5.2.3. IS-41 authentication shall comply with both IS-41 Revision
          C and TSB-51.

4.8.5.3.   LOCATION MANAGEMENT

          4.8.5.3.1. The IGF shall support the roaming functions required to
          ensure that the subscriber is reachable within each type of visited
          network. This shall include:

                     1.  location registration/update

                     2.  location cancellation

                     3.  deregistration i.e. purging of subscriber records in
                         the VLR (GLR)

          4.8.5.3.2. The IGF shall pass back each initial registration in a new
          network to the home network of the roaming subscriber.

          4.8.5.3.3. To avoid unnecessary signalling traffic, the IGF shall be
          capable of handling subsequent location updates, within the same
          network, without passing them back to the home network.

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     4.8.5.3.4.  For the PDC to ICO roaming case, the subsequent location
     updates will be handled through the home network. (OPTION)

4.8.5.4.  ROUTING FOR MOBILE TERMINATED CALLS

     4.8.5.4.1.  In order to support the optimal routing of mobile terminated
     calls, the IGF shall be capable of retrieving routing information from the
     location registers of both the cellular and ICO networks. This shall
     include the interrogation of the HLRs and the retrieval of routing numbers
     from the VLRs (GLRs for PDC).

     4.8.5.4.2.  For roaming between ICO and IS.41, the IGF shall be capable of
     handling both GSM MSRNs and IS.41 routing numbers (TLDNs) and of converting
     between the two.

     4.8.5.4.3.  For roaming between ICO and PDC the IGF shall be capable of
     handling the TTC MAP RON and of mapping the RON to a GSM MSRN and vice
     versa. Unlike GSM and IS.41, the TTC MAP RON is allocated on location
     registration and not on a call by call basis and this requires additional
     processing by the IGF. (OPTION)

4.8.5.5.   TRANSFER OF SUBSCRIBER DATA

     4.8.5.5.1.  The IGF shall be capable of retrieving subscriber profile
     information from HLRs of the home network and of downloading subscriber
     profile information to the VLRs (and GLRs in case of PDC roaming) of the
     visited network.

     4.8.5.5.2.  The IGF shall be capable of deleting the subscriber records
     from the VLR (GLR) on request by the HLR of the home network.

     4.8.5.5.3.  The IGF shall also be capable of deleting the subscriber record
     from the VLR (GLR) of the visited network as a result of network management
     operations.

4.8.5.6.  MAPPING OF SERVICE PROFILES

     4.8.5.6.1.  As the services supported vary between the three cellular
     standards, the IGF shall be responsible for the mapping of services
     retrieved from the HLR onto their equivalent in the VLR (GLR) of the
     visited network.

     4.8.5.6.2.  As a minimum, the following forms of service mapping shall be
     supported by the IGF:

          1.  a direct mapping of compatible services (e.g. telephony)

          2.  conversion of functional equivalents (e.g. GSM call barring and
              IS.41 call delivery)

          3.  the use of standard default values for those services not present
              in the home system

          4.  the extension of the profile received from the home HLR to include
              additional services offered by the visited network, this
              additional service information shall be stored in the HLR
              components of the cellular/satellite interworking functions of the
              IGF

4.8.5.7.  SUPPLEMENTARY SERVICE MANAGEMENT

     4.8.5.7.1.  The IGF shall support the MAP operations provided in each of
     the three cellular standards for the administration of supplementary
     services by the end user.

     4.8.5.7.2.  For GSM networks the IGF shall include the operations required
     to support the following actions:

          1.  registration/erasure

          2.  activation/deactivation

          3.  interrogation

          4.  the setting of passwords

          5.  unstructured supplementary service data (USSD).

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      4.8.5.7.3. For IS.41 based networks the IGF shall support remote feature
      activation.

      4.8.5.7.4. In order to increase the transparency of the service to the end
      user, the IGF shall support, where possible, the MMI strings employed
      within the home network. For example, the MMI codes for call delivery
      (IS.41) should also be accepted within the ICO network and mapped onto the
      appropriate call restriction (barring) services. (F/R)

      4.8.5.7.5. For those networks supporting the management of
      services/features from fixed network terminals via DTMF, this feature
      shall also be supported by the IGF in case of cellular/satellite roaming.

4.8.5.8. SHORT MESSAGING

      4.8.5.8.1. The Short Message teleservices shall be supported in both the
      IS.41 to ICO and ICO to IS.41 roaming cases.

      4.8.5.8.4. The ILR shall support the end-to-end delivery of mobile
      originated short messages for both IS.41 to ICO and ICO to IS.41 roaming.
      (OPTION)

      4.8.5.8.5. The ILR shall support the end-to-end delivery of mobile
      terminated short messages for both IS.41 to ICO and ICO to IS.41 roaming.
      (OPTION)

4.8.5.9. FAULT RECOVERY

      4.8.5.9.1. The IGF shall support the MAP operations provided in each of
      the three cellular standards for fault recovery e.g. HLR restart. This
      shall include the reception by the IGF of such fault recovery indications
      from the home and visited networks as well as the generation of such
      indications by the IGF in case of outage.

4.8.5.10. SECTION NOT USED

4.8.5.11. ADDITIONAL ICO HLR FUNCTIONALITY

      4.8.5.11.1. The GSM HLR/AuC components of the cellular/satellite
      interworking functions of the IGF shall include all of the functionality
      of a standalone ICO HLC/AuC including, but not limited to, the following:

          1. provisioning of HPN

          2. vendor proprietary services and features for the IS.41 interworking
             unit:

             a. Immediate Call Itemisation Service

             b. Announcement Suppression at Call Rerouting (F/R)

             c. Transfer of Announcement Suppression Indicator to HLR (F/R)

             d. Single Personal Number

             e. Ericsson Dual Numbering (ICO+GSM+two logical lines handset is
                needed)(F/R)

             f. Subscription Type (F/R)

             g. IMSI Changeover (F/R)

             h. MAP Policing in HLR (policing on addresses)

             i. Subscriber Priority Level for Channel Allocation

             j. Location Numbers (Regional and Local Subscription)

          3. vendor proprietary services and features for the PDC interworking
             unit (F/R)

          4. intelligent network support (e.g. IN services class marks/category
             keys)

          5. provisioning of other ICO specific services (F/R)

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4.8.6. PROTOCOL SUPPORT

      4.8.6.1. The IGF shall support the following protocol stacks for
      cellular/satellite roaming:

          1. GSM MAP/ITU-T TCAP/ITU-T SCCP/ITU-T MTP

          2. GSM MAP/ITU-T TCAP/ANSI SCCP/ANSI MTP

          3. IS.41 MAP/ANSI TCAP/ITU-T X.25 (F/R)

          4. IS.41 MAP/ANSI TCAP/ANSI SCCP/ANSI MTP

          5. IS.41 MAP/ANSI TCAP/ITU-T SCCP/ITU-T MTP

          6. IS.41 MAP/ITU-T TCAP/ITU-T SCCP/ITU-T MTP (F/R)

          7. TTC MAP (DMNI)/TTC TCAP/TTC SCCP/TTC MTP (OPTION)

          8. TTC MAP (DTIF)/TTC TCAP/TTC SCCP/TTC MTP. (OPTION)

4.8.7. PROVISIONING FUNCTIONS

      4.8.7.1. The IGF shall provide an interface for the provisioning of the
      data held in the cellular/satellite interworking function via the ICO ADC.

      4.8.7.2. The IGF shall support both a transaction based interface for
      individual subscriber details as well as a bulk update (e.g. file
      transfer) mechanism for the transfer of data en masse. The PDC to ICO ILR
      will only support the interface for individual subscriber details.

      4.8.7.3. Each change to a subscriber profile, either locally or remotely,
      shall be logged by the IGF including details of the change. The PDC to ICO
      ILR will not support logging of the change.

4.8.8. NETWORK MANAGEMENT FUNCTIONS

4.8.8.1. FAULT MANAGEMENT

      4.8.8.1.1. The cellular/satellite interworking function of the IGF shall
      support the generation, logging and cancellation of alarms.

      4.8.8.1.2. The cellular/satellite interworking function of the IGF shall
      support an interface for the transfer of alarms to the ICO NMC.

4.8.8.2. PERFORMANCE MANAGEMENT

      4.8.8.2.1. The cellular/satellite interworking function of the IGF shall
      be capable of producing traffic measurements (e.g. peg counters) for both
      application level transactions and the lower layers e.g. MAP, TCAP, SCCP,
      MTP etc.

      4.8.8.2.2. The cellular/satellite interworking function of the IGF shall
      support an interface for the transfer of performance measurements to the
      ICO NMC.

4.8.8.3. CONFIGURATION MANAGEMENT

      4.8.8.3.1. The cellular/satellite interworking function of the IGF shall
      support an interface to the ICO NMC for the configuration of both the
      application and underlying layers (e.g. MAP, TCAP, SCCP, MTP).

4.8.8.4. SECURITY MANAGEMENT

      4.8.8.4.1. The downloading of authentication keys from the ICO ADC to the
      cellular/satellite interworking function of the IGF shall be performed in
      a secure manner i.e. encrypted.

      4.8.8.4.2. The IGF shall support both a transaction based interface for
      individual subscriber details as well as a bulk update (e.g. file
      transfer) mechanism for the transfer of data en masse.

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     4.8.8.4.3. The storage of the keys within the cellular/satellite
     interworking function of the IGF shall also be in an encrypted form.

     4.8.8.4.4. The IGF shall prevent access by operator personnel to the
     secret key information held in the AuC component of the cellular/satellite
     interworking function.

4.8.9. AVAILABILITY OF PRODUCTS AND SERVICES TO ROAMING SUBSCRIBERS

     4.8.9.1. This table below describes the requirements on the IGF for the
     availability of products and services to roaming subscribers.

     KEY

     NA:          NOT APPLICABLE, NOT TECHNICALLY FEASIBLE

     Y:           REQUIRED

     N:           NOT REQUIRED

     F/R:         FUTURE REQUIREMENT

     TABLE 4-1 AVAILABILITY OF PRODUCTS AND SERVICES TO ROAMING SUBSCRIBERS

<TABLE>
<CAPTION>
                                                                 CELLULAR ROAMERS TO ICO          ICO ROAMERS TO CELLULAR
             SERVICE OR FEATURE                                 GSM       IS.41       PDC       ICO        ICO        ICO
                                                                 TO         TO         TO        TO         TO         TO
                                                                ICO        ICO        ICO       GSM       IS.41       PDC
                                                                                     (OPT                             (OPT
                                                                                     ION)                             ION)

<S>                                                            <C>        <C>        <C>        <C>        <C>        <C>
TELESERVICES
SPEECH SERVICES
4.1.1.1 Telephony (TS 11)                                       Y          Y          Y          Y          Y
4.1.1.2 Emergency calls (TS 12)                                 Y          Y          Y          Y         NA(1)
SHORT MESSAGE SERVICES (SMS)
4.1.2.1 Mobile Terminated SMS (TS 21)                           Y         Y(2)       F/R        Y(2)       Y(2)
4.1.2.1 Mobile Originated SMS (TS 22)                           Y         Y(2)       F/R         Y         Y(2)
FACSIMILE SERVICES (UP TO 9600 BPS)
4.1.3.1 Automatic fax group 3 (TS 62)                           Y         Y(3)       Y(3)        Y         Y(4)
4.1.3.3 Alternate speech and fax group 3 (TS 61)                Y         Y(5)       F/R         Y          NA
4.1.3.4 Alternate speech/fax - inband detection                 Y          Y          Y          NA         Y
FACSIMILE SERVICES, HIGH SPEED BEARERS (HSCSD)
4.1.3.2 Fax group 3 up to 14.4 kbps                            Y(6)       Y(7)       Y(7)       Y(6)        NA
BEARER SERVICES
CIRCUIT SWITCHED DATA (UP TO 9600 BPS)
4.2.1 Data circuit duplex asynchronous (BS 2x)                  Y         Y(7)       Y(7)        NA         NA
4.2.1 Data circuit duplex synchronous (BS 3x)                   Y         Y(7)       Y(7)        NA         NA
4.2.3 Alternate Speech/Data - inband detection                  Y          Y          Y          NA         Y
HIGH SPEED CIRCUIT-SWITCHED DATA (UP TO 38.4 KBPS
4.2.2 General data circuit duplex asynch. (BS 20)              Y(6)       Y(7)       Y(7)       Y(6)        NA
4.2.2 General data circuit duplex asynch. (BS 20)              Y(6)       Y(7)       Y(7)       Y(6)        NA
SUPPLEMENTARY SERVICES
CALL OFFERING SUPPLEMENTARY SERVICES
4.3.3.1 Call Forwarding Unconditional (CFU)                    Y(20)      Y(20)      Y(20)       Y          Y
4.3.3.2 Call Forwarding on Mobile Subscriber Busy (CFB)         Y         Y(90       F/R         Y         Y(9)
4.3.3.3 Call Forwarding on Mobile Not Reachable (CFNRc)         Y         Y(9)       F/R         Y          N
4.3.3.4 Call Forwarding on No Reply (CFNRy)                     Y         Y(9)       F/R         Y         Y(9)
CALL COMPLETION SUPPLEMENTARY SERVICES
</TABLE>

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<TABLE>
<CAPTION>
                                                                 CELLULAR ROAMERS TO ICO          ICO ROAMERS TO CELLULAR
             SERVICE OR FEATURE                                 GSM       IS.41       PDC       ICO        ICO        ICO
                                                                 TO         TO         TO        TO         TO         TO
                                                                ICO        ICO        ICO       GSM       IS.41       PDC
                                                                                     (OPT                             (OPT
                                                                                     ION)                             ION)

<S>                                                            <C>        <C>        <C>        <C>        <C>        <C>
4.3.4.1 Call Waiting (CW)                                       Y          Y         F/R         Y          Y
4.3.4.2 Call Hold (HOLD)                                        Y         Y(8)       F/R         Y          Y
NUMBER IDENTIFICATION SUPPLEMENTARY SERVICES
4.3.2.1 Calling Line Identification Presentation (CLIP)         Y         Y(10)      F/R         Y         Y(10)
4.3.2.2 Calling Line Identification Restriction (CLIR)          Y         Y(10)      F/R         Y         Y(10)
4.3.2.3 Connected Line Identification Presentation (COLP)       Y         Y(11)      F/R         NA         NA
4.3.2.4 Connected Line Identification Restriction (COLR)        Y         Y(11)      F/R         NA         NA
MULTI-PARTY SUPPLEMENTARY SERVICES
4.3.5.1 Multi Party Service (MPTY)                              Y          Y         F/R         Y          Y
CLOSED USER GROUP SUPPLEMENTARY SERVICES
4.3.6.1 Closed User Group (CUG)                                 Y          NA         NA         Y          NA
CHARGING SUPPLEMENTARY SERVICES
4.3.8.1 Advice of Charge Information (AoCI)                    N(12)       NA         NA        N(12)       NA
4.3.8.2 Advice of Charge Charging (AoCC)                       N(12)       NA         NA        N(12)       NA
CALL RESTRICTION SUPPLEMENTARY SERVICES
4.3.7.1 Barring of All Outgoing Calls (BAOC)                    Y          Y         F/R         Y          Y
4.3.7.2 Barring of All Incoming Calls (BAIC)                    Y          Y         F/R         Y          Y
4.3.7.3 Barring of Outgoing International Calls (BOIC)         Y(14)      Y(13)      F/R         Y         Y(13)
4.3.7.4 Barring of Outgoing International Calls, except        Y(15)      Y(11)      F/R         Y          NA
those directed to the Home Country (BOICexHC)
4.3.7.5 Barring of Incoming Calls when Roaming Outside         Y(16)      Y(22)      F/R         Y          NA
the Home Country (BIC-Roam)
UNSTRUCTURED SUPPLEMENTARY SERVICE DATA (USSD)
4.3 Unstructured supplementary service data (USSD)              Y         Y(11)      F/R         Y          NA
ICO SPECIFIC SERVICES
4.4.1 High Power Notification (HPN)                            N(17)      Y(11)      Y(11)       NA         NA
4.4.2 ICO Dual numbering                                       N(17)      Y(11)      Y(11)       NA         NA
4.4.3 Natural language support                                 N(17)       F/R        F/R        NA         NA
MAIL AND MESSAGING SERVICES
4.5.6 Mailbox access and retrieval                             Y(18)      Y(18)       F/R       Y(18)      Y(18)
4.5.7 Mailbox notification                                     Y(19)      Y(19)       F/R       Y(19)      Y(19)
ADVANCED SERVICES
4.6.2.2.1 Virtual Private Networks (VPN)                       Y(17)       Y          Y          NA          NA
4.6.2.3.1 Advanced call forwarding                             N(17)      Y(21)      Y(21)       NA          NA
4.6.2.3.2 Advanced call barring                                N(17)      N(21)      Y(21)       NA          NA
4.6.2.3.3 Originating call screening                           N(17)      Y(21)      Y(21)       NA          NA
4.6.2.3.4 Terminating call screening                           N(17)      Y(21)      Y(21)       NA          NA
4.6.2.3.5 Location dependent routing                           N(17)      Y(21)      Y(21)       NA          NA
4.6.2.3.6 Personal number                                      N(17)      Y(21)      Y(21)       NA          NA
4.6.2.3.7 Hot line routing                                     N(17)      N(21)      Y(21)       NA          NA
4.6.2.3.8 Caller list                                          N(17)      Y(21)      Y(21)       NA          NA
4.6.2.4.1 Pre-paid (debit) service                              NA         NA         NA         NA          NA
4.6.2.4.2 Private calls                                        N(17)      Y(21)      Y(21)       NA          NA
4.6.2.4.3 Split billing                                        N(17)      Y(21)      Y(21)       NA          NA
</TABLE>

     Notes:

1.   Although the GSM emergency call service will not be available in PDC and
     IS.41 networks, this does not prevent the subscriber from dialing an
     emergency access code in such networks. However, this call will be treated
     as a normal telephony call i.e. with no prioritised access on the
     air-interface.

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  2. End-to-end support for SMS is provided as an option (OPTION). However,
     roamers to ICO may also be provisioned with SMS in the CS-IWF allowing them
     to send and receive SMS on ICO via an ICO MSISDN.

  3. Roamers from IS.41 and PDC networks may employ GSM fax services from within
     the ICO network. However, delivery of fax calls from their home networks
     via their home cellular networks is not supported.

  4. Roamers from ICO to IS.41 networks may employ local fax services within the
     serving network. However, delivery of fax calls from the ICO network via
     ICO fax MSISDNs (multi-numbering) is not supported.

  5. Roamers from IS.41 and PDC networks may employ the GSM alt. speech/fax
     service from within the ICO network, but this requires the allocation of
     additional ICO MSISDNs in the CS-IWF.

  6. Subject to support of HSCSD by the GSM network.

  7. Roamers from IS.41 and PDC networks may employ local GSM data services
     within the ICO network by the allocation of an ICO MSISDN. However,
     delivery of data calls from the home network and via the home cellular
     number is not supported.

  8. Supported locally in the CS-IWF, not end-to-end.

  9. It may not be possible to support conditional call forwarding services when
     roaming between ICO and IS.41 networks. This depends on the capability of
     the individual IS.41 networks.

 10. Proprietary solution depending on the IS.41 extensions supported.

 11. Supported locally in the CS-IWF, not present in the home network.

 12. Advice of charge is not supported for roaming subscribers.

 13. The IS.41 and GSM services are not equivalent, some differences in service
     delivery are inevitable e.g. IS.41 supports barring of all calls outside
     world zone 1 (i.e. North America) rather than barring of all international
     calls.

 14. The interpretation of barring of all outgoing international calls within
     the ICO network shall be all calls to destinations with country codes other
     than ICO.

 15. The interpretation of BOIC-exHC within the ICO network shall be based on
     home PLMN and not home country.

 16. The interpretation of BIC-roam within the ICO network shall be barring of
     all incoming calls whilst roaming outside the home PLMN (i.e. not home
     country).

 17. The provisioning of this service requires a CS-IWF for GSM to ICO roaming.
     (OPTION)

 18. Mail and messaging services will normally be provided by the home network.
     However, it shall be possible to provide ICO mailboxes to roaming
     subscribers.

 19. The form of notification used may vary from network to network e.g. for
     those networks not supporting SMS a voice-call notification may be used.

 20. The support of this service depends on its provisioning by the home
     network.

 21. The CS-IWF supports the storage of the IN classmark/key information, it
     does not provide the actual IN service.

 22. This service is only supported in case of ICO dual numbering and for calls
     delivered via the ICO MSISDN.

4.9. OTHER VALUE-ADDED SERVICES

      4.9.1. The IGF shall support the routing of calls to/from value added
      services centres located within the ICONET.

      4.9.2. The IGF will support the usage of short code dialling for access to
      individual services.

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      4.9.3. In order to support the usage of multiple regional service centres,
      the IGF shall support the routing of service calls based on both the short
      code dialled and location (service area) of the UT.

4.10. SPECIALISED TERMINALS

4.10.1. MULTICHANNEL TERMINALS (F/R)

      4.10.1.1. The IGF shall support the usage of a single location update
      by the multi-channel terminal on behalf of all of the subscribers
      currently attached to it.

4.10.2. SEMI-FIXED TERMINALS

      4.10.2.1. The IGF shall support the usage of semi-fixed user terminals for
      the purpose of local loop replacement, remote PABX and remote payphone
      applications. The IGF requirements to support these terminals are in other
      sections of this document, in particular Section 4.7.2.

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5. ADMINISTRATION AND SUPPORT SERVICES

5.1. BILLING SERVICES

5.1.1. CALL DETAIL RECORDING IN THE MSSC

5.1.1.1. CALL DETAIL RECORD GENERATION

5.1.1.1.1. RECORD TYPES

     5.1.1.1.1.1. The IGF shall support the generation of call detail and event
     records (CDRs) for the following events, as defined in TS GSM 12.05:

          1. mobile originated call

          2. mobile originated emergency call

          3. mobile originated, call forwarding

          4. mobile terminated call

          5. roaming call component in a gateway MSSC

          6. transit call attempt (including calls to PABXs and service
             centres, which are seen as external nodes)

          7. supplementary service actions

          8. mobile originated SMS in the VMSSC

          9. mobile terminated SMS in the VMSSC

          10. mobile originated SMS in the SMS-IWMSC

          11. mobile terminated SMS in the SMS-GMSC.

     5.1.1.1.1.2. For intelligent network calls, the IGF shall also support the
     generation of the following CDR types:

          1. incoming IN call (F/R)

          2. outgoing IN call (F/R)

          3. transit IN call . (F/R)

     5.1.1.1.1.3.  The IGF shall support the generation of the following ICO
     specific charging information:

          1. HPN invocation

          2. legal interception in the VMSSC. No extra CDR for legal
             interception in the MSSC. In the cases where switched connection is
             used for setting up an intercept call to the monitoring centres,
             the VMSSC shall generate via exchange configurable parameters a
             normal transit call attempt CDR for the switched connection.

     5.1.1.1.1.4. The IGF shall support the generation of partial call records
     for the following cases:

          1. The call duration has reached a limit, which is set by an exchange
             parameter

          2. The number of call related events has reached a limit, which is
             set by an exchange parameter.

          3. A C7 charging message CHT, is received from a superior exchange.

     5.1.1.1.1.5. It shall be possible to generate call data records for call
     attempts. In particular, call data records can be generated for:

          1. calls receiving BUSY, CONGESTION or any other End Of Selection
             state

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          2. calls that reach through-connection

          3. calls that reach B-answer.

     5.1.1.1.1.6. The partial record timer employed by the IGF shall be
     configurable via the setting of exchange data and/or network management
     command.

     5.1.1.1.1.7. The IGF shall support the suppression of individual CDR types
     via the setting of exchange data and/or network management command.

5.1.1.1.2. RECORD CONTENT

     5.1.1.1.2.1. The content of each of the standard GSM CDR types generated by
     the IGF shall be equivalent to the record fields of the corresponding
     record types defined in TS GSM 12.05.

     5.1.1.1.2.2. The IGF shall support the configuration of the record fields
     of the individual CDR types via the setting of exchange data and/or network
     management command.

     5.1.1.1.2.3. In addition to the standard location information in a GSM CDR
     (e.g. Cell Identity = ICO service area), the CDRs produced by the IGF shall
     also include the position of the UT at the call set-up in the form of
     latitude, longitude and accuracy index.

     5.1.1.1.2.4. The mobile station RF power frequency capability of the mobile
     station classmark and the radio channel requested/used (e.g. full rate/half
     rate etc.) employed by the IGF shall be output in the CDR.

     5.1.1.1.2.5. The IGF shall employ ISO standard universal co-ordinated time
     (UTC time) for all date and time information stored in the CDRs.

     5.1.1.1.2.6. The MT CDR produced by the IGF shall be accompanied by the
     presentation/screening indicators received during the call set-up
     (see TS GSM 12.05 for further details).

     5.1.1.1.2.7. The storage of directory numbers in the CDRs produced by the
     IGF shall be accompanied by the appropriate "type of number" and "number
     plan" information elements received during the call set-up.

     5.1.1.1.2.8. The CDRs produced by the IGF to record the invocation of the
     HPN service shall include the following information:

          1. IMSI

          2. MSISDN

          3. Basic service code

          4. date and time

          5. HPN priority.

     5.1.1.1.2.9. The CDRs produced by the IGF to record the use of high speed
     fax/data services shall include the number of traffic channels (i.e.
     air-interface slots) allocated to the connection. Any change in the number
     of channels allocated during the call shall also be recorded and
     time-stamped.

5.1.1.2. CALL DETAIL RECORD STORAGE AND SUPERVISION

     5.1.1.2.1. The IGF shall store the CDRs locally in a non-volatile CDR
     filestore and in a redundant configuration e.g. mirror disks.

     5.1.1.2.2. The availability of the call detail recording function shall be
     sufficient to ensure that the probability of loss of any CDR does not
     exceed 1 in 10 million records.

     5.1.1.2.3. The capacity of the CDR filestore shall be sufficient to permit
     the continuous storage of CDRs by the IGF for a period of 72 hours without
     transfer to the ADC and without loss of data.

     5.1.1.2.4. The IGF shall monitor the occupancy of the CDR filestore.

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     5.1.1.2.5. The IGF shall support the use of occupancy thresholds and the
     generation of the associated alarm.

     5.1.1.2.6. The IGF shall support the configuration of the CDR filestore
     thresholds via network management command.

5.1.1.3. CALL DETAIL RECORD TRANSFER

     5.1.1.3.1. The IGF shall support the following forms of CDR transfer
     between the network elements and the ADC:

          1. electronic file transfer (e.g. FTAM)

          2. immediate record transfer ("hot billing")

          3. backup to secondary storage.

     5.1.1.3.2. In order to provide an adequate audit trail, each CDR file
     transferred by the IGF shall be allocated a unique sequence number.

     5.1.1.3.3. In order to ensure that no data is lost, the IGF shall include
     the size of the file in the information provided for each transfer.

     5.1.1.3.4. The IGF shall be capable of transferring CDR files at intervals
     of 15 minutes or less.

     5.1.1.3.5. In case of immediate record transfer, the IGF shall transfer the
     individual call records immediately after the event being recorded, or the
     release of a connection that is being recorded.

     5.1.1.3.6. The transfer by the IGF of individual CDRs to the ADC shall be
     completed in less than 1 minute, excluding transmission time, when
     immediate record transfer is used.

5.1.2. CALL DETAIL RECORDING IN THE MESSAGING PLATFORM

5.1.2.1. CALL DETAIL RECORD GENERATION

5.1.2.1.1. RECORD TYPES

     5.1.2.1.1.1. The Messaging Platform shall support the generation of call
     detail and event records (CDRs) for all transactions, including but not
     limited to the following:

          1. deposit of voice/fax/email

          2. retrieval of voice/fax/mail

          3. forwarding of voice/fax/email

          4. distribution of voice/fax/email

          5. customisation of mailbox settings

     5.1.2.1.1.2. It shall be possible to generate call data records for call
     attempts.

     5.1.2.1.1.3. The IGF shall support the suppression of individual CDR types
     via network management command.

5.1.2.1.2. RECORD CONTENT

     5.1.2.1.2.1. As a minimum, the CDRs produced by the Messaging Platform
     shall include the following information:

          1. A unique mailbox identifier

          2. Service/Transaction type

          3. Origin/destination address

          4. Start time and duration

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               5. No. of fax pages (for fax mail)

               6. Data volume for SMS and email

               7. Success/fail indicator

               8. Error code (where appropriate)

     5.1.2.1.2.2. The Messaging Platform shall employ universal co-ordinated
     time (UTC time) for all date and time information stored in the CDRs.

     5.1.2.1.2.3. The storage of directory numbers in the CDRs produced by the
     Messaging Platform shall be accompanied by the appropriate "type of
     number", "number plan" and "presentation/screening" information elements
     received during the call set-up.

5.1.2.2. CALL DETAIL RECORD STORAGE AND SUPERVISION

     5.1.2.2.1. The Messaging Platform shall store the CDRs locally in a
     non-volatile CDR filestore and in a redundant configuration e.g. mirror
     disks.

     5.1.2.2.2. The availability of the call detail recording function shall be
     sufficient to ensure that the probability of loss of any CDR does not
     exceed 1 in 10 million records.

     5.1.2.2.3. The capacity of the CDR filestore shall be sufficient to permit
     the continuous storage of CDRs by the Messaging Platform for a period of 72
     hours without transfer to the ADC and without loss of data.

     5.1.2.2.4. The Messaging Platform shall monitor the occupancy of the CDR
     filestore.

     5.1.2.2.5. The Messaging Platform shall support the use of occupancy
     thresholds and the generation of the associated alarm.

     5.1.2.2.6. The Messaging Platform shall support the configuration of the
     CDR filestore thresholds via network management command.

5.1.2.3. CALL DETAIL RECORD TRANSFER

     5.1.2.3.1. The Messaging Platform shall support the following forms of CDR
     transfer between the network elements and the ADC:

          1. electronic file transfer (e.g. FTAM)

          2. immediate record transfer ("hot billing") (F/R)

          3. backup to secondary storage.

     5.1.2.3.2. In order to provide an adequate audit trail, each CDR file
     transferred by the Messaging Platform shall be allocated a unique sequence
     number.

     5.1.2.3.3. In order to ensure that no data is lost, the Messaging Platform
     shall include the size of the file in the information provided for each
     transfer.

     5.1.2.3.4. The Messaging Platform shall be capable of transferring CDR
     files at intervals of 15 minutes or less.

     5.1.2.3.5. In case of immediate record transfer, the Messaging Platform
     shall transfer the individual call records immediately after the event
     being recorded, or the release of a connection that is being recorded.

     5.1.2.3.6. The transfer by the Messaging Platform of individual CDRs to the
     ADC shall be completed in less than 1 minute, excluding transmission time,
     when record transfer is used.

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5.2. PROVISIONING SERVICES

5.2.1. SUBSCRIBER ADMINISTRATION IN THE HLR

     5.2.1.1. The IGF shall support the management functions required for the
     administration of subscriber data in the HLR, as defined in TS GSM 12.02.
     This shall include the functions required for the administration of the
     following:

          1. directory numbers

          2. service provision

          3. basic and supplementary services

          4. regional subscription zones

          5. bearer capability allocations.

     5.2.1.2. The IGF shall also include the management functions required for
     the administration of the ICO specific services described above (e.g. HPN,
     language preference etc.).

     5.2.1.3. The IGF shall also include the management functions required for
     the administration of Ericsson proprietary services.

     5.2.1.4. The IGF shall support a remote provisioning interface from the HLR
     to the ICO ADC. The supplier shall provide full details of this interface
     including physical interconnection to the DCN, protocol stacks employed and
     application data units/MML command syntax.

     5.2.1.5. In addition to the handling of individual transactions on a per
     subscriber basis, the IGF provisioning interface shall also include a bulk
     update mechanism (e.g. file transfer) for the updating of HLR data en
     masse.

5.2.2. SUBSCRIBER ADMINISTRATION IN THE CELLULAR/SATELLITE INTERWORKING
FUNCTION (CS-IWF)

     5.2.2.1. The IGF shall provide a provisioning interface to the GSM HLR
     component of the cellular-satellite interworking function (CS-IWF) that is
     functionally identical to that provided for a standalone HLR and which is
     compliant with each of the provisioning requirements on the ICO HLR stated
     in Section 5.2.1 "Subscriber administration in the HLR."

     5.2.2.2. For the IS.41 variant of the CS-IWF, the IGF shall provide a
     provisioning interface to the IS.41 HLR component of the CS-IWF which is
     functionally identical to that provided for a standalone IS.41 HLR.

     5.2.2.3. For the PDC variant of the CS-IWF, the IGF shall provide a
     provisioning interface to the PDC HLR component of the CS-IWF which is
     functionally identical to that provided for a standalone PDC HLR (OPTION).

     5.2.2.4. For the IS.41 variant of the CS-IWF, the IGF shall provide a
     provisioning interface to the IS.41/ICO interworking component of the
     CS-IWF for the administration of the roaming subscription including:

          1. the mapping of services between the IS.41 and ICO environment

          2. the mapping of numbers and identifiers, i.e. MIN/ESN (less than) =
             (greater than) IMSI/MSISDN.

     5.2.2.5. For the PDC variant of the CS-IWF, the IGF shall provide a
     provisioning interface to the PDC/ICO interworking component of the CS-IWF
     for the administration of the roaming subscription including:

          1. the mapping of services between the PDC and ICO environment
             (OPTION)

          2. the mapping of numbers and identifiers i.e. MSI/MSN (less than) =
             (greater than) IMSI/MSISDN (OPTION).

     5.2.2.6. (F/R) For the GSM/ICO variant of the CS-IWF, the IGF shall provide
     a provisioning interface to the roaming subscription including:

          1. the mapping services between the GSM and ICO environment

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          2. the administration of ICO dual numbering.

5.2.3. SUBSCRIBER ADMINISTRATION IN THE MESSAGING PLATFORM

     5.2.3.1. The IGF shall support the management functions required for the
     administration of subscriber and data in the Messaging Platform.

     5.2.3.2. The IGF shall support a remote provisioning interface from the
     messaging platform to the ICO ADC. The supplier shall provide full details
     of this interface including physical interconnection to the DCN, protocol
     stacks employed and application data units/MML command syntax.

     5.2.3.3. In addition to the handling of individual transactions on a per
     subscriber basis, the IGF provisioning interface shall also include a bulk
     update mechanism (e.g. file transfer) for the updating of messaging
     platform data en masse.

5.2.4. SUBSCRIBER ADMINISTRATION IN THE SERVICE CONTROL POINT (SCP) (F/R)

     5.2.4.1. The IGF shall support the management functions required for the
     administration of subscriber and service data in the SCP via the Service
     Management Point (SMP).

     5.2.4.2. The IGF shall support a remote provisioning interface from the
     SMAS/SCP to the ICO ADC. The supplier shall provide full details of this
     interface including physical interconnection to the DCN, protocol stacks
     employed and application data units/MML command syntax.

     5.2.4.3. In addition to the handling of individual transactions on a per
     subscriber basis, the IGF provisioning interface shall also include a bulk
     update mechanism (e.g. file transfer) for the updating of SCP data en
     masse.

5.2.5. ADMINISTRATION OF SECRET KEYS IN THE AUTHENTICATION CENTRE (AuC)

     5.2.5.1. The IGF shall support the management functions required for the
     administration of subscriber data in the authentication centre (AuC) as
     defined in TS GSM 12.02. This shall include the administration of the
     following:

          1. IMSI

          2. subscriber authentication key (K).

     5.2.5.2. The IGF shall support a secure remote provisioning
     (pre-personalisation) interface from the AuC to the ICO ADC. The supplier
     shall provide full details of this interface including physical
     interconnection to the DCN, protocol stacks employed and application data
     units/MML command syntax.

     5.2.5.3. In addition to the handling of individual transactions on a per
     subscriber basis, the IGF provisioning interface shall also include a bulk
     update mechanism (e.g. file transfer) for the updating of AuC data en
     masse.

     5.2.5.4. The IGF shall support the encryption of all data exchanged on the
     interfaces to the AuC.

     5.2.5.5. The IGF shall ensure that all data held in the AuC is stored in
     encrypted form.

5.2.6. ADMINISTRATION OF SECRET KEYS IN THE CELLULAR/SATELLITE INTERWORKING
FUNCTION (CS-IWF)

5.2.6.1. GSM AuC COMPONENT

     5.2.6.1.1. The IGF shall provide a provisioning interface to the GSM AuC
     component of the CS-IWF that is functionally identical to that provided for
     a standalone GSM AuC and that is compliant with each of the provisioning
     requirements on the AuC stated above.

     5.2.6.1.2. The IGF shall support the encryption of security related data
     (keys) exchanged on the interface to the AuC component of the CS-IWF.

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     5.2.6.1.3. The IGF shall ensure that all security related data (keys) held
     in the AuC component of the CS-IWF is stored in encrypted form.

5.2.6.2. IS.41 AuC COMPONENT

     5.2.6.2.1. For the IS.41 variant of the CS-IWF, the IGF shall provide a
     provisioning interface to the IS.41 AuC component of the CS-IWF that is a
     functionally identical to that provided for an IS.41 AuC.

     5.2.6.2.2. The IGF shall support the encryption of all security related
     data (A-key) exchanged on the interfaces to the AuC component of the
     CS-IWF.

     5.2.6.2.3. The IGF shall ensure that all security related data (A-key) held
     in the AuC component of the CS-IWF is stored in encrypted form.

5.2.6.3. PDC AuC FUNCTIONALITY (OPTION)

     5.2.6.3.1. For the PDC variant of the CS-IWF, the IGF shall provide a
     provisioning interface for authentication data to the CS-IWF that is
     functionally identical to that provided for a standalone PDC HLR.

5.3. MOBILE EQUIPMENT MONITORING

     5.3.1. The IGF shall include an Equipment Identity Register (EIR) function
     for the monitoring of mobile equipment (UTs) based on their IMEIs.

     5.3.2. The EIR function provided by the IGF shall include the
     administration of the following equipment lists as defined in TS GSM 02.16
     and TS GSM 12.02:

          1. white list

          2. grey list

          3. black list

     5.3.3. The IGF shall support both the updating of individual list entries
     and the replacement of complete lists.

     5.3.4. The IGF shall support the exchange of equipment lists with other
     cellular operators via the GSM MoU Central EIR (CEIR) in Dublin and in
     accordance with GSM MoU PRD TD.18 and TD.19 (F/R)

     5.3.5. Inter-operability for EIR function across cellular standards is not
     supported.

5.4. CUSTOMER CARE AND OPERATOR SUPPORT

5.4.1. GENERAL

     5.4.1.1. The IGF shall support the connection of customer help desks and
     customer care centres. This shall include the routing of calls to/from
     these centres via the MSSC.

5.4.2. OPERATOR DETERMINED BARRING (ODB)

     5.4.2.1. The IGF shall support operator determined barring as defined in TS
     GSM 02.41.

     5.4.2.2. The disconnection of an ongoing call as a result of the
     application of ODB is not supported.

     5.4.2.3. The IGF shall support operator determined barring of supplementary
     services management.

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5.4.3. OPERATOR CONTROLLED DIVERSION

     5.4.3.1. The system shall support the diversion of incoming calls using the
     default call forwarding service. The default call forwarding service can be
     applied to a specific basic service or to all basic services.

     5.4.3.2. The use by the operator of the barning of SS management, shall
     prevent the subscriber from overriding the controlled diversion.

     5.4.3.3. The system shall support the diversion of outgoing calls for a
     specific subscriber.

     5.4.3.4. The operator shall be able to manage the controlled diversion for
     incoming/outgoing calls via the ICO ADC.

5.4.4. SUBSCRIBER SPECIFIC ANNOUNCEMENTS

     5.4.4.1. It shall be possible to forward both incoming and outgoing calls
     to a subscriber specific announcement, for example, an announcement of the
     termination of service (TOS), or a changed number interception announcement
     (CNI).

     5.4.4.2. It shall also be possible to provide a pre-connection announcement
     on an individual subscriber basis during the set-up phase of the
     connection. (F/R)

5.4.5. SUBSCRIBER TRACING

     5.4.5.1. The IGF shall support call path tracing as defined in document
     WG360003.

     5.4.5.2. Subscriber tracing will be implemented in R7 of the Ericsson CME
     20 software but is not included in the current offer. The R7 Ericsson
     subscriber tracing feature will be based on GSM TS 12.08, but with the
     following exceptions (F/R):

          1. Only 'basic' MSC record types to be implemented

          2. No output of trace data in non-anchor MSC

          3. Output of main MSISDN (instead of served MSISDN)

          4. The following 'basic' trace data are not output:

               a) translated number

               b) roaming number

               c) AoC parameters

          5. No IMEI trace supported

          6. No trace output in HLR

5.5. FRAUD MANAGEMENT SERVICES

     5.5.1. The system shall support the following fraud detection mechanisms.

     5.5.2. The ability to detect the presence of long-hold calls and provide
     information to the system operator indicating the presence of a long held
     call. The system shall also support the ability for the system operator to
     manually clear a long held call.

     5.5.3. The ability to flag when a particular service has one or more calls
     diverted and provide this information to the operator.

     5.5.4. For the above mechanisms:

          1. The MSSC shall collect the required information on a call by call
             basis.

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          2. The MSSC/VLR shall generate alarms in the case of unusual activity
             (e.g. long call times, etc.) and distribute and present these to
             the NMC operator via the Network Management System (NMS) for
             possible processing under the Fraud Management procedures. The NMC
             shall aggregate the data and provide the reporting mechanism to the
             operator.

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6. GENERIC SYSTEM FUNCTIONS

6.1. NUMBERING, ADDRESSING AND IDENTIFICATION

6.1.1. INTERNATIONAL MOBILE SUBSCRIBER IDENTIFICATION

     6.1.1.1. Each subscriber accessing the ICO network shall be identified and
     authenticated by means of a unique International Mobile Station
     Identification (IMSI) as defined in TS GSM 03.03 (see also emergency call
     handling).

     6.1.1.2. The IGF shall support both ICO assigned IMSIs and those allocated
     by terrestrial cellular networks with whom ICO has a valid roaming
     agreement (i.e. for those networks with entries in the global mobile title
     translation routing tables).

     6.1.1.3. For home subscribers to the ICO network, the IGF shall employ the
     IMSI to identify and communicate with the home location register (HLR).

     6.1.1.4. For roaming subscribers from GSM compatible networks, the IGF
     shall employ the IMSI to identify and communicate with the HLR of the home
     network via global mobile title translation as defined in both TS GSM 03.03
     and ITU-T E.214.

     6.1.1.5. For those subscribers with a roaming subscription in an ICO
     Cellular/Satellite Interworking function (e.g. an ILR), the IGF shall
     employ the IMSI to identify and communicate with the HLR component of that
     interworking function.

     6.1.1.6. The IMSI shall be recorded in each of the call detail and event
     records produced by the IGF.

6.1.2. MOBILE STATION INTERNATIONAL ISDN NUMBERS

     6.1.2.1. In order to support the routing of incoming calls to mobile
     subscribers, it shall be possible to assign one or more Mobile Station ISDN
     numbers (MSISDNs), as defined in TS GSM 03.03, to each of the home
     subscribers of the ICO network.

     6.1.2.2. The IGF shall support the use of multiple numbering plans
     including, but not limited to, the following: ITU-T E.164, ITU-T X.121,
     private numbering; as defined in TS ICO 04.08 and TS GSM 09.02.

     6.1.2.3. The IGF shall support both GSM single and multi-numbering as
     defined in TS GSM 09.07.

     6.1.2.4. The IGF shall support the "ICO dual-numbering" feature (see
     Section 4).

     6.1.2.5. ICO allocated MSISDNs shall be employed by the IGF to identify and
     interrogate the home location register (HLR), or cellular/satellite
     interworking function (e.g. ILR), in order to route the call to the current
     location of the subscriber.

     6.1.2.6. In order to support the replacement of a lost/stolen SIM, it shall
     be possible to transfer one or more existing MSISDNs to a new IMSI.

     6.1.2.7. MSISDNs allocated by cellular networks shall be employed by the
     IGF to route the call to the home network.

     6.1.2.8. The IGF shall support the display/suppression of the MSISDNs of
     individual subscribers in order to provide the line identification services
     described above.

     6.1.2.9. Position based support of national PSTN number plan is not
     supported.

6.1.3. MOBILE STATION ROAMING NUMBERS

     6.1.3.1. For calls to subscribers registered within the ICO network, the
     IGF shall be capable of allocating a Mobile Station Roaming Number (MSRN)
     as defined in TS GSM 03.03.

     6.1.3.2. The allocation of an MSRN by the MSSC shall be performed on a
     temporary, call-by-call basis, as defined in TS GSM 09.07.

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     6.1.3.3. The IGF shall be capable, via digit analysis, of differentiating
     between ICO assigned MSISDNs and MSRNs.

     6.1.3.4. The IGF shall employ the MSRN to route an incoming call to the
     MSSC/VLR that allocated the MSRN.

6.1.4. INTERNATIONAL MOBILE EQUIPMENT IDENTITY

     6.1.4.1. Each mobile equipment (UT) accessing the ICO network shall be
     identified by means of a unique International Mobile Equipment Identity
     (IMEI) as defined in TS GSM 03.03 and TS GSM 02.16.

     6.1.4.2. The IMEI, where available, shall be recorded in each of the call
     detail and event records produced by the IGF.

     6.1.4.3. The IGF shall employ the IMEI for IMEI checking.

6.2. RADIO CONNECTIVITY BETWEEN USER TERMINALS, SATELLITES AND SANS

     6.2.1. Each SAN shall be able to communicate with up to 4 satellites,
     provided those satellites are 5 degrees elevation or above, without
     interruption during the duration of a satellite pass subject to adequate
     signal propagation between SAN and satellite.

     6.2.2. The SRMC shall make BTFPs (burst time frequency plans) for control
     and dedicated channels for the SANs for all satellite spot beams, subject
     to satellite positioning and equipment resources at each individual SAN.

     6.2.3. The SRMC shall make BTFPs (burst time frequency plans) for dedicated
     channels for all the SANs such that the IGF can access each satellite in
     every spot beam to take into account the designed portion of diversity.

     6.2.4. Where a satellite spot-beam is visible to a UT and a SAN has
     resources to provide control and dedicated channels to that spot beam, and
     satellite spectrum and power is available, the IGF shall provide the
     capability for the UT to register, and to connect a mobile originated call.

     6.2.5. The SBS shall be able to use the frequencies assigned by the SRMC.

     6.2.6. The IGF shall provide the capability to alert a UT, and to connect a
     mobile terminated call to a UT where a satellite spot beam covers the UT's
     stored last registered position (SLRP), subject to the conditions stated
     above.

     6.2.7. The SBS shall provide the capability to connect a mobile originated,
     or a mobile terminated, call to a UT via a pair of satellites (diversity)
     where spot beams from both satellites are visible to the UT and both spot
     beams have pre-allocated dedicated channels provided by the same SAN.

     6.2.8. The SBS and TNM shall provide the capability to maintain continuous
     connection of every phase of a call to/from a UT provided the UT remains in
     the visibility of any spot-beam and subject to the conditions stated above.
     When the UT is in coverage of two or more satellites which are also in
     coverage of specific SAN and spectrum and equipment resources are
     available, continuous diversity connection shall be provided.

     6.2.9. The HPN subsystem shall provide the capability to send HPN messages
     to a UT via the appropriate spot beam of any satellite covering the UT's
     location.

     6.2.10. The SRMC and SBS shall, for the purposes of frequency planning and
     paging, assume that a satellite can be used by a UT at elevation angles of
     0 degrees or higher. Whether or not communication between the UT and the
     satellite is possible at any satellite elevation angle is subject only to
     adequate signal propagation between the UT and satellite.

6.3. PSTN/ISDN/PLMN INTERCONNECTION

     6.3.1. For IGF Interconnection to international and national PSTN networks,
     IGF shall support the use of international and national variants of common
     channel signalling system No. 7 Telephony User Part (TUP) for circuit
     related signalling.

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        6.3.2. For IGF Interconnecting to international and national ISDN
        networks, IGF shall support the use of international and national
        variants of common channel signalling system No. 7 ISDN User Part(ISUP)
        for circuit related signalling.

        6.3.3. For IGF interconnection to national PLMNs, IGF shall support the
        use of both international and national variants of ISUP and TUP where
        appropriate for circuit related signalling.

        6.3.4. The IGF shall support the different variants of CCS7 ISUP and TUP
        and DSS1 in accordance with WG360477 Terrestrial Point-of-Interconnect
        Interface Requirements.

        6.3.5. The IGF shall be capable of sending an early ACM signal on Mobile
        Terminated calls.

        6.3.6. Ericsson shall deliver the HLRs which have integrated STP
        functionally. The integrated STP functionality supports Global Title
        Translation(GTT) of SCCP. The STP will have signalling connections with
        other ICO signalling nodes such as SANs and also external networks.

6.4. SECTION NOT USED

6.5. DCN SUBSYSTEM

6.5.1. NETWORK MANAGEMENT DCN

        6.5.1.1. The DCN shall carry Network Management traffic, SRMC traffic,
        PCS traffic and HPN Traffic among SANs, NMCs and OT&DF(if provided).

        6.5.1.2. The DCN shall provide connections to all SANs, NMC, Backup NMC,
        and OT&DF(if provided).

        6.5.1.3. The DCN shall provide connections to SCC and Backup SCC(F/R).

        6.5.1.4. The DCN shall provide connections to the ADC(F/R).

        6.5.1.5. All IGF subsystems at SANs, NMC and Backup NMC which require
        DCN support shall be interfaced to the DCN equipment.

        6.5.1.6. The DCN shall use the physical network procured by ICO in the
        form of DS0 circuits derived from E1 capacity.

        6.5.1.7. Each DS0 interface at the SAN or NMC or Backup NMC shall
        terminate on a Router.

        6.5.1.8. The Routers form part of the DCN and their management shall be
        via the TNM OAM function, SAN-OSS and the NMC.

        6.5.1.9. The DCN traffic shall be encrypted on a link by link basis
        between the inter-SAN Routers with static encryption keys.

        6.5.1.10. The DCN equipment at each SAN, NMC and Backup NMC shall
        provide two complete and independent on-site networks and associated
        external interfaces.

        6.5.1.11. All critical on-site subsystems shall be interfaced to both of
        the on-site DCN networks.

        6.5.1.12. Non-critical subsystems, being all those of which there are
        multiple instances and the loss of one unit will not cause "system
        unavailability" shall be interfaced to at least one of the on-site DCN
        networks.

        6.5.1.13. The protocols used in the DCN shall be IP-based.

        6.5.1.14. The DCN shall for design and acceptance criteria be assumed to
        be configured as shown in Figure 6-1, Reference Terrestrial Network
        Connectivity.

        6.5.1.15. (F/R) The DCN shall be upgraded to provide the following

          1. A robust independent path so that management control of any element
             does not depend on the correct function of that element.

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          2. Scalability

          3. Increased capacity as required to meet SRMC data and other traffic
             needs.

          4. Management and visibility of DCN performance

          5. Increased security to protect data end-to-end

          6. Interfaces to allow use of externally provided network resources.

6.5.2. VOICE SERVICE NETWORK(F/R)

        6.5.2.1. The IGF shall provide facilities for a voice service network
        enabling operational staff at each SAN and at the NMC and Backup NMC to
        communicate.

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                                  [LINE GRAPH]

             FIGURE 6-1 REFERENCE TERRESTRIAL NETWORK CONNECTIVITY

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6.6. REGISTRATION AND IMSI ATTACH/DETACH

6.6.1. BASIC CAPABILITIES FOR REGISTRATION

       6.6.1.1. The MSSC shall provide capability for a UT to be registered with
       the network for the purpose of subsequently being able to have access to
       ICO communications services.

       6.6.1.2. The MSSC shall provide capability for a registered UT to be:

          1. IMSI attached, as defined by TS GSM 03.12 and TS GSM 03.22.

          2. IMSI detached as defined by TS GSM 03.12 and TS GSM 03.22.

       6.6.1.3. The MSSC shall provide capability to determine whether a UT is
       allowed to become registered based on:

          1. subscriber identity and authentication information

          2. service profile information received from the home network

          3. UT location, i.e. Service Area

       6.6.1.4. The IGF shall provide capability to store UT specific
       information for registered UT's including:

          1. service profile information and

          2. other information needed by the network to communicate with the UT.

       6.6.1.5. The IGF shall provide capability to respond

          1. to requests from an unregistered UT for registration.

          2. to requests from a registered UT for re-registration (location
             update).

       6.6.1.6. The IGF shall provide capability to respond to requests from a
       registered UT for

          1. IMSI detach

          2. IMSI attach.

       6.6.1.7. The MSSC shall provide autonomous detach and de-registration
       actions shall be taken based on separate configurable timeout periods,
       starting from the UT's last bi-directional communication with the IGF.

       6.6.1.8. In communicating with the UT for the purposes of registration or
       re-registration, the IGF shall communicate to/from the UT using the Air
       Interface Procedures.

6.6.2. REGISTRATION PROCEDURES

       6.6.2.1. If a registration or re-registration request is received from a
       UT, the IGF shall evaluate the request according to planned criteria and
       if criteria for granting registration are satisfied the IGF shall:

          1. register the UT with the network

          2. acknowledge such registration

          3. providing the UT with parameters needed for it to operate in any
             and/or all modes of operations required of an ICO UT.

          4. store the estimated UT location including accuracy estimates
             (stored last registered position - SLRP)

          5. store the IMSI attach/detach status

          6. store UT service profile information.

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      6.6.2.2. If a request for IMSI attach or IMSI detach is received from the
      UT, the IGF shall update the IMSI attach/detach status and shall maintain
      and/or update the data stored in the network at registration.

      6.6.2.3. The IGF shall de-register a UT if the UT becomes registered with
      another network and the other network informs the IGF.

      6.6.2.4. The IGF shall ensure that no UT will be registered in more than
      one SAN at a time.

6.6.3. REGISTRATION CASES

      6.6.3.1. If the IMSI is used, the TNM shall route registrations or
      location update requests from a SBS to an MSSC on the basis of a routing
      table. The table shall map IMSIs or IMSI ranges (up to 64,000 entries per
      table) to one of the following configurable routing options:

          1. route to MSSC as indicated by the UT.

          2. route based on the service area of the UT. This will require the
             consultation of a secondary table mapping service area to MSSC Ids
             (containing up to 64,000 elements)

          3. route to a particular MSSC.

          4. route to the MSSC of the SAN which provides the control channels
             for the satellite beam chosen by the UT.

      6.6.3.2. If a TMSI is used, the TNM shall route registrations or location
      update requests from a SBS to the MSSC according to one of the following
      configurable routing options:

          1. route to MSSC as indicated by the UT. If the ID of the MSSC where
             the UT was last registered is not provided, then the TNM shall
             route the request to the MSSC that belongs to the same SAN as the
             SBS Channel Manager that communicates with the UT.

          2. route based on the service area of the UT. This will require the
             consultation of the same table mapping service area to MSSC Ids as
             defined in 6.6.3.1.

      6.6.3.3. The configurable routing options shall be controlled by the NMC
      via the TNM OAM.

      6.6.3.4. The SRMC shall provide capability to preplan which SANs should be
      candidates for registration in each beam and their priority so that the
      BCCH data can be transmitted.

      6.6.3.5. The IGF shall provide capability to instruct UT's on the maximum
      rate at which the UT is allowed to attempt to re-register with the
      network.

6.6.4. DENIAL OF REGISTRATION

      6.6.4.1. The IGF shall provide capability to complete a UT's registration
      request procedure by a rejection for the following reasons:

          1. because the UT's service profile does not allow it to roam into the
             ICO network;

          2. because the UT's service profile does not allow it to register with
             the ICO network in the service area in which it is currently
             located;

          3. because the UT is not allowed to access the SAN at which the
             registration attempt was made; (F/R)

          4. because the UT's current position does not allow it to register
             with that particular SAN; (F/R)

          5. because the SAN is overloaded or is refusing new registration
             attempts for other operational reasons.

      6.6.4.2. The IGF shall provide the capability to instruct a UT which is
      denied registration against registration again until there is a high
      probability that a registration attempt will be successful. This shall
      involve, as a minimum:

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          1. Instructing the UT against making a registration attempt for a
             period of time, the value of this to be operationally controlled

          2. Instructing the UT against attempting registration until it has
             selected a different SAN with which to register. (F/R)

6.7. CALL ROUTING

6.7.1. MSSC CALL ROUTING

      6.7.1.1. The IGF shall be capable of routing on both fixed directory
      numbers (ITU-T E.164) and mobile station roaming numbers (MSRNs).

      6.7.1.2. The IGF shall be capable of routing to fixed directory numbers
      located in the ICO network e.g. to PABXs directly attached to a MSSC.

      6.7.1.3. In addition to the dialled number, the IGF shall also be capable
      of routing on the basis of one or more of the following:

          1. the location (service area) of the subscriber

          2. the identity of the subscriber (IMSI/IMSI range)

          3. the calling line identity (MSISDN)

          4. day/date and time

      6.7.1.4. The IGF shall be capable of supporting multiple routes to the
      same destination. As a minimum this shall include primary, secondary and
      tertiary routes.

6.7.2. TNM ROUTING

      6.7.2.1. The TNM shall route a mobile originating service request from a
      SBS to the MSSC where the UT was last registered, advised by the UT.

      6.7.2.2. The TNM shall provide an audit trail (log) of all TNM call
      routing operations.

      6.7.2.3. The TNMs at the various SAN sites shall establish and clear 64
      kbps connections via the intermediate MSSCs so as to ensure that traffic
      is routed to it's destination by an efficient route.

6.8. MP PAGING

      6.8.1. The IGF shall be able to page UTs.

      6.8.2. The IGF shall support paging groups for Medium Penetration (MP)
      paging.

      6.8.3. The IGF shall be capable of transmitting paging indications on
      PCHs.

      6.8.4. The IGF shall implement the PCH as defined in ICO 05.xx and ICO
      04.08 series.

      6.8.5. The IGF shall be capable of supporting one or more PCH carriers on
      every spot beam on every satellite.

      6.8.6. The IGF shall support the capability to transmit PCH bursts
      simultaneously on multiple spot beams of multiple satellites.

      6.8.7. The IGF shall be capable of paging a UT on all spot beams of all
      satellites covering a UT's position including position error value.

      6.8.8. SBS shall use the SLRP, position error and the currently broadcast
      beam co-ordinates to determine which beams controlled by the SBS will be
      used for paging, and will page the UT only in the beams which contain the
      SLRP, considering the position error.

      6.8.9. The TNM shall request one or more SBS to page a UT according to the
      SLRP.

      6.8.10. The SBS will page a UT in beams in which it transmits AGCH.

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     6.8.11. The TNM shall support the escalation of paging to UTs should no
     response to initial page be received. For escalation the TNM shall be
     capable of requesting additional SBSs. For both the initial and escalated
     page, the TNM shall be capable of changing the position error value
     provided to the SBS.

     6.8.12. The MSSC shall support a configurable paging timeout function to
     cause MP paging escalation to occur.

     6.8.13. The IGF shall support operational control of:

          1. number of pages allowed for each paged SBS, for initial and
             escalated paging separately.

          2. mapping from SLRP to SBS, for initial and escalated paging
             separately.

          3. change of position error value for escalated paging.

     6.8.14. The resolution of mapping in TNM of SLRP to SBS shall be no
     greater than 80km.

     6.8.15. In each TNM the change of position error factor for both cases of
     paging shall be configurable for each paged SBS.

6.9 SECTION NOT USED

6.10 SECTION NOT USED

6.11 DIVERSITY SATELLITE PATH ALLOCATIONS AND USAGE

6.11.1 DIVERSITY CAPACITY

     6.11.1.1. Each SBS shall provide diversity allocation capacity of 40% of
     specified SAN capacity. This 40% is in addition to the specified capacity.

     6.11.1.2. Any channel resource within the total 140% capacity shall be
     able to be allocated for single path usage or diversity usage.

     6.11.1.3. When the traffic offered to an SBS is at or below 50% of the
     specified capacity, the SBS shall be capable of providing diversity on
     every call to diversity eligible UTs.

     6.11.1.4. If the system load exceeds a [configurable] percentage of the
     total capacity the SBS shall offer diversity based on azimuth and elevation
     of satellites seen by the UT.

6.11.2 DIVERSITY PATH ALLOCATION AND DE-ALLOCATION

     6.11.2.1. The IGF shall have the capability to allocate and add diversity
     satellite path during a call. This diversity path terminates within the
     same Channel Manager.

     6.11.2.2. The IGF shall select the ChM to allow for the best probability of
     diversity path addition at the time of initial channel allocation.

     6.11.2.3. The IGF shall make diversity satellite path allocations with the
     following nominal satellite transmit path allocation burst time offsets
     between diversity paths priority order, subject to satellite spectrum
     availability as follows:

          1. 3 timeslots offset (diversity windows case)

          2. 0, 1, 2 timeslots offset

          3. 4, 5 timeslots offset

     6.11.2.4. The IGF shall command the UT to provide measurement reports for
     all satellites covering the UT.

     6.11.2.5. The IGF shall have the capability to remove and de-allocate one
     of the two paths used by UT during a call without affecting the other path.

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     6.11.2.6. The IGF shall perform addition of diversity path based on
     measurement reports received from a UT azimuth/elevation angles service
     requirements and UT capabilities. These reporting mechanisms and report
     content details shall be as described in ICO Air Interface documents.

     6.11.2.7. The SBS shall provide diversity during a call to UTs which
     indicate in their measurement reports that they can receive signals from
     two or more satellites in coverage of the SBS.

     6.11.2.8. The SBS shall add diversity if a UT becomes able to receive
     signals from two or more satellites during a call.

     6.11.2.9. The SBS shall remove diversity if a UT has been unable for 10
     seconds or more to receive signals from two or more satellites and
     diversity is needed for other UTs.

6.11.3. TRANSMISSION AND RECEPTION OVER DIVERSITY PATH

     6.11.3.1. When not in power saving mode the IGF shall transmit TCH/SACCH
     on both paths of the diversity when voice is active.

     6.11.3.2. When in power saving mode and voice is active, the IGF shall
     transmit TCH/SACCH on the path on which the SAN is receiving with higher
     quality and SACCH only on the other.

     6.11.3.3. When voice is inactive, the IGF shall transmit SACCH burst on
     both paths.

     6.11.3.4. Power control mechanism for both legs of diversity paths shall
     be controlled together according to the best path with a margin.

     6.11.3.5. The IGF shall receive TCH/SACCH in both diversity paths
     simultaneously.

     6.11.3.6. The IGF shall implement optimum burst by burst selection of the
     paths to which it is listening.

6.12. HANDOVERS

     6.12.1. The IGF shall perform handover to maintain call continuity and to
     maintain diversity via any pair of satellites in the coverage of any SAN
     subject to spectrum availability and equipment capacity limits.

     6.12.2. Handovers shall be performed with minimal or no interruptions to
     the call.

     6.12.3. The methods of implementing handover for single calls in priority
     order shall be:

          1. path addition and deletion, by two path redefinition procedures;

          2. channel reassignment.

     6.12.4. The methods of implementing handover for diversity path calls, in
     priority order, shall be

          1. path redefinition of each path separately, with continuity of the
             first path redefinition confirmed before the second path
             redefinition is commenced;

          2. channel reassignment of both paths simultaneously.

     6.12.5. If a single path is in use for a call a handover using channel
     reassignment may be used to change from the single path to a new pair of
     diversity paths. This is a non-preferred alternative to providing diversity
     by path addition.

     6.12.6. The IGF shall support the following handovers:

          1. intra-beam handovers (within same or different delay classes)

          2. inter-beam handovers (within one or two satellites)

          3. intra-SAN handovers (within one or two Channel Managers)

          4. inter-SAN handovers (but not inter-MSSC handover)

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     6.12.7.  For handovers by path redefinition, the IGF shall continue to
     support the original path until signals on the new path are received and
     demodulated correctly.

     6.12.8.  For handovers by channel reassignment the IGF shall continue to
     support the original path so that the UT can re-establish the connection on
     the old path if connectivity on the new path is not achieved.

     6.12.9.  For all handovers, if connectivity on the new path is not
     achieved, the IGF shall implement a recovery strategy to maximise the
     probability of continuing the call. This shall include attempts to overcome
     equipment malfunctions and attempts to communicate via an alternative path
     allocation on different frequencies subject to availability of satellite
     and spectrum resources.

6.13.  SUBSCRIBER IDENTITY AUTHENTICATION

     6.13.1.  The IGF shall support the subscriber identity authentication
     procedure as defined in TS GSM 02.09 and TS GSM 03.20.

     6.13.2.  The IGF shall permit each of the authentication triggers defined
     in TS GSM 02.09 to be set/reset via the setting of exchange data, exchange
     parameter and/or network management command.

     6.13.3.  The IGF shall support the use of multiple authentication
     algorithms, the key lengths shall be compatible to those defined in the
     relative GSM specifications.

6.14.  ENCRYPTION

     6.14.1.  The IGF shall support the encryption on the Air Interface to
     support the user data confidentiality and signaling information element
     confidentiality feature as defined in TS GSM 02.09 and TS GSM 03.20 with
     the exception of ICO-specific algorithms.

     6.14.2.  The IGF shall support user data confidentiality for
     connection-oriented services.

     6.14.3.  The IGF shall support the use of one encryption algorithm. The
     algorithm shall be similar to GSM A5-2 and shall be signalled to the MSSC
     as GSM A5-2.

     6.14.4.  The IGF shall maintain compatibility with the GSM Phase II
     multi-cipher signalling.

     6.14.5.  The IGF shall maintain such Air Interface confidentiality for the
     entire duration of the transaction subject to:

          1.  configurable operator preferences and criteria in the MSSC,

          2.  equipment characteristics of the UT.

     6.14.6.  The IGF shall support encryption on:

          1.  Diverse paths,

          2.  Handovers and channel changes, and

          3.  Channel mode changes.

     6.14.7.  The IGF shall be able to enable and disable encryption at any time
     during an active transaction for however many times are required.(F/R)

     6.14.8.  The IGF shall follow the Air Interface specifications for:

          1.  Control of encryption, and

          2.  Enabling and disabling of encryption.

     6.14.9.  The SBS shall apply encryption, or not, according to the service
     area of the UT in accordance with a table defined in 6.19.4.4, which
     indicates for each service area whether to apply encryption or not.

     6.14.10.  The IGF shall support the encryption of HPN messages transmitted
     over the radio interface on the NCH/HP.

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6.15.  IMEI CHECKING

     6.15.1. The IGF shall employ the IMEI checking procedure as defined in TS
     GSM 02.16 and TS GSM 09.02.

     6.15.2.  The IGF shall be capable of performing an IMEI check as a result
     of the following operations:

          1.  mobile originated/mobile terminated call attempt

          2.  mobile originated/mobile terminated SMS attempt

          3.  location update

          4.  non-call related supplementary service event.

6.16. CAUSES, TONES AND ANNOUNCEMENTS

     6.16.1.  The IGF shall support the presentation of call progress
     indications to the user in accordance with TS GSM 02.40.

     6.16.2.  It shall be possible for the operator to select the set of tones
     to be employed within the ICO network.

     6.16.3.  The IGF shall support the use of recorded voice announcements.

     6.16.4.  It shall be possible for the operator to select and record the
     announcements to be employed within the ICO network.

     6.16.5.  The IGF shall support the playback of an announcement to the user
     during call set-up, or during the release phase.

     6.16.6.  For prompts delivered to the user, the IGF shall support the
     simultaneous playback of announcements and reception of DTMF digits from
     the user.

6.17.  ECHO CANCELLATION

     6.17.1.  The MSSC shall provide echo cancelling functionality to suppress
     the echo created from connection to the fixed network

     6.17.2.  The echo canceller devices shall be provided on a common pool
     basis, i.e. not dedicated to individual trunk circuits.

     6.17.3.  The echo cancellation functionality shall provide the system with:

          1.  Tone disabler selection as defined in CCITT G.164 and CCITT G.165

          2.  Non-Linear Processor (NLP) selection in order to:

                  a)  suppress signals having a level below a certain threshold

                  b)  allow signals having a level detected above a certain
                  threshold, although the signal may be distorted.

          3.  double talk level

          4.  end path delay

          5.  A-law/(micron)-law

     6.17.4.  The echo canceller functionality will be compliant to CCITT Rec.
     G.165.

     6.17.5.  The MSSC shall signal the presence/absence of echo cancellers to
     subsequent nodes in the call setup path, provided that the signalling
     employed between the nodes supports this.

6.18.  TERRESTRIAL MODEM POOLS

     6.18.1.  The MSSC shall include pools of multi-functional modems for
     interworking with the PSTN and with the ISDN 3.1 kHz audio bearer service
     in accordance with TS GSM 09.07.

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       6.18.2. As a minimum, the MSSC modem pools shall support V.21, V.22,
       V.22bis, V.23, V.32 and V.34 modem standards.

       6.18.3. The MSSC modems shall support autobauding. Autobauding is not
       supported for transparent services or for non-transparent services with
       no flow control.

       6.18.4. The MSSC modems shall support both V.42 and MNP4 outband flow
       control and error correction procedures.

       6.18.5. The MSSC modems shall support V.42bis data compression.

 6.19. UT POSITION INFORMATION

 6.19.1. POSITION INFORMATION DETERMINATION

       6.19.1.1. The UT position information shall be determined in terms of a
       location and location accuracy.

       6.19.1.2. The content of the UT position information shall be

          1. latitude and longitude

          2. location accuracy: a confidence region in the shape of either a
             circle or a rectangle

       6.19.1.3. The location shall be stored with resolution of 1km or less.

       6.19.1.4. The accuracy estimate shall be stored with resolution of 1 km
       to [20] km depending on the magnitude of location error.

       6.19.1.5. The UT position determination shall utilise the time at which
       the RACH is received as specified in Section 6.25.1.2.3.

       6.19.1.6. The UT position information shall utilise the frequency offset
       at which the RACH is received as specified in Section 6.25.2.3.5.1.

       6.19.1.7. The UT position information shall utilise the time at which the
       DCCH bursts of the Initial Message are received as specified in Section
       6.25.1.2.5.

       6.19.1.8. The UT position information shall utilise the frequency offset
       at which the DCCH bursts of the Initial Message are received as specified
       in Section 6.25.2.3.5.3.

       6.19.1.9. Individual timing and frequency estimates from the RACH and
       DCCH bursts shall be processed to provide composite timing and frequency
       estimates.

       6.19.1.10. The UT position determination shall make use of a BCCH time
       offset parameter supplied by the UT as part of the data sent immediately
       after the dedicated channel is established, if the measurement of the
       parameter is made no earlier than 45 minutes before the call setup time,
       and if the UT transmits the parameter. Included with the measured
       parameter are a) a time stamp of the time the measurement was made, b)
       the IDs of the satellites between which the measurement was obtained, and
       c) an estimate of the measurement accuracy. The parameter will allow the
       SBS to calculate a second line of position relative to a second
       satellite, to be combined with that from the satellite through which the
       SBS is communicating with the UT.

       6.19.1.11. The UT position determination shall make use of a BCCH time
       offset parameter and a BCCH frequency offset parameter supplied by the
       UT as part of the data sent immediately after the dedicated channel is
       established, if the measurement of the parameters is made within [200 ms]
       of the time that the RACH burst is transmitted, if one of the satellites
       in the measurement is the satellite over which the RACH is transmitted,
       and if the UT transmits the parameters. Included with the measured
       parameters are a) the ID of the other satellite from which the
       measurement was obtained, and b) an estimation accuracy index that
       identifies the expected time offset and frequency measurement accuracy as
       defined in the Air Interface. These parameters shall be used by the SBS
       in determining the UT position.

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 6.19.2. CONVERSION OF FREQUENCY AND TIME MEASUREMENT TO POSITION

       6.19.2.1. The SBS shall process the measured time and frequency and any
       parameters provided by the UT according to the following subparagraphs.

       6.19.2.1.1. If the time offset parameter is not provided, the SBS shall
       convert the measured time and frequency to a geographic position
       (latitude and longitude) taking into account the position of the
       satellite and the beam of the RACH.

       6.19.2.1.2. If the time offset parameter (but not the frequency offset
       parameter) is provided, the SBS shall derive the geographic position
       (latitude and longitude) from two of the available three values taking
       into account the position of the satellite and the beam of the RACH and
       the position of the additional satellite used to obtain the time offset
       parameter.

       6.19.2.1.3. If the time offset parameter and the frequency offset
       parameter are provided, the SBS shall derive the geographic position
       (latitude and longitude) from two of the available four values taking
       into account the position of the satellite and the beam of the RACH and
       the position of the additional satellite used to obtain the time offset
       and frequency offset parameters.

       6.19.2.1.4. If the time offset parameter only or both the time and
       frequency offset parameters are provided, the pair of measurements to be
       used by the SBS to derive the geographic position shall be selected by a
       method which performs at least as well as the following: the selection
       shall be performed according to a decision process in which one pair of
       values is chosen at a time in some order until a configurable accuracy is
       achieved or all pairs are exhausted. For testing purposes, the
       configurable accuracy shall be set to the equivalent of 25 km. The
       configurable accuracy shall be managed by SBS OAM.

       6.19.2.2. The error introduced by the SBS algorithm for conversion to
       geographic position shall be no greater than that corresponding to [0.5
       micron sec and 0.5 Hz].

       6.19.2.3. If the time offset parameter is not provided, the SBS shall
       generate an estimate of the error in the geographic position based on:

          1. estimated errors in frequency and time measurements in the SBS
             demodulator, dependent on received signal strength;

          2. two configurable parameters representing cumulative frequency and
             time errors of the end to end path for the RACH and SDCCH signals;

          3. the relationship between error and position within the field of
             view of the serving satellite;

          4. a configurable parameter representing the possible ground speed of
             the UT:

          5. the effect of UT motion on the measured frequency.

          6. The configurable parameters shall be managed by SBS OAM.

       6.19.2.4. If the time offset parameter is provided with a period of more
       than [200 ms] (and less than 45 minutes) since the measurement, the SBS
       shall generate an estimate of the error in the geographic position based
       on the following:

          1. if the RACH and DCCH/TCH time measurement is used, the total
             estimated error in the composite timing obtained as the sum of the
             estimated error in time measurement in the SBS demodulator,
             dependent on received signal strength, plus a configurable
             parameter representing the cumulative time error of the end to end
             path for the RACH and SDCCH signals;

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          2.  if the RACH and DCCH/TCH frequency measurement is used, the total
              estimated error in RACH frequency obtained as the sum of the
              estimated error in frequency measurement in the SBS demodulator,
              dependent on received signal strength, plus a configurable
              parameter representing the cumulative frequency error of the end
              to end path for the RACH signal, plus the error in frequency
              attributable to the possible ground speed of the UT as defined by
              a configurable parameter representing the possible ground speed of
              the UT modified by the elevation angle to the satellite.

          3.  if the time offset parameter supplied by the UT is used, the
              total estimated error in the time offset parameter obtained as the
              sum of the estimated error in the parameter supplied by the UT,
              plus a configurable parameter representing the differential timing
              error in the transmitted BCCH signals used in the reported time
              offset parameter.

          4.  the chosen two of the three above values shall be translated to
              geographic position error according to the total estimated errors
              and the relationship to position within the field of view of the
              serving satellite and where applicable the satellites of the time
              offset parameter;

          5.  if the time offset parameter supplied by the UT is used, the
              distance the UT may have travelled since the reported time offset
              parameter measurement was taken shall be added to the error from
              this parameter, as defined by the configurable parameter
              representing the possible ground speed of the UT multiplied by the
              time since the parameter measurement was taken.

     6.19.2.5.  If the time offset and frequency offset parameters are provided
     with a period of no more than [200 ms] since the measurement, the SBS shall
     generate an estimate of the error in the geographic position based on the
     following:

          1.  if the RACH and DCCH/TCH time measurement is used, the total
              estimated error in the composite timing obtained as the sum of the
              estimated error in time measurement in the SBS demodulator,
              dependent on received signal strength, plus a configurable
              parameter representing the cumulative time error of the end to end
              path for the RACH and SDCCH signals;

          2.  if the RACH and DCCH/TCH frequency measurement is used, the total
              estimated error in composite frequency obtained as the sum of the
              estimated error in frequency measurement in the SBS demodulator,
              dependent on received signal strength, plus a configurable
              parameter representing the cumulative frequency error of the end
              to end path for the RACH and SDCCH signals, plus the error in
              frequency attributable to the possible ground speed of the UT as
              defined by a configurable parameter representing the possible
              ground speed of the UT modified by the elevation angle to the
              satellite;

          3.  if the time offset parameter supplied by the UT is used, the total
              estimated error in the time offset parameter obtained as the sum
              of the estimated error in the parameter supplied by the UT, plus a
              configurable parameter representing the differential timing error
              in the transmitted BCCH signals used in the reported time offset
              parameter;

          4.  if the frequency offset parameter supplied by the UT is used, the
              total estimated error in the frequency offset parameter obtained
              as the sum of the estimated error in the parameter supplied by
              the UT, plus a configurable parameter representing the
              differential frequency error in the transmitted BCCH signals used
              in the reported frequency offset parameter, plus the error in
              frequency attributable to the possible ground speed of the UT as
              defined by a configurable parameter representing the possible
              ground speed of the UT modified by the geometry relative to the
              two satellites;

          5.  the chosen two of the four above values shall be translated to
              geographic position error according to the relationship between
              error and position within the field of view of the serving
              satellite and where applicable the satellites of the time and
              frequency offset parameters.

          6.  The configurable parameters shall be managed by SBS OAM.

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6.19.3. USAGE OF UT POSITION INFORMATION

     6.19.3.1.  The IGF shall determine UT position at the start of every radio
     communications session including calls and registration.

     6.19.3.2.  The MSSC shall support the use of service area information for
     call routing.

     6.19.3.3.  The MSSC shall store the UT position information for use by SBS
     and TNM paging purposes.

     6.19.3.4.  The MSSC shall support the use of service area information for
     emergency calls.

     6.19.3.5.  Deleted.

     6.19.3.6.  The MSSC shall support the use of service area information for
     the purpose of billing.

     6.19.3.7.  The MSSC shall support the use of service area information to
     permit or deny registration.

     6.19.3.8.  The MSSC shall support the use of service area information for
     call barring.

6.19.4.  MAPPING OF UT POSITION TO SERVICE AREA

     6.19.4.1.  The IGF shall support up to 65,000 service areas comprising
     defined areas and virtual service areas. Each defined service area shall be
     a geographical area on the surface of the earth. Defined service areas need
     not be of the same size. Each virtual service area represents a buffer zone
     at the boundary of two or more defined service areas dependent on the UT
     position error. A UT shall be in a virtual service area for a particular
     combination of defined service areas if the UT position is in one defined
     service area, while its geographic position error overlaps one or more
     other defined service areas.

     6.19.4.2.  The SBS shall support up to 65,000 tiles of varying sizes which
     cover the earth. Each pole shall be covered by a circular tile whose
     boundary follows a line of constant latitude. The remaining tiles shall be
     quadrilaterals of varying size. The SBS shall determine the tile which
     contains the UT position.

     6.19.4.3.  The SBS shall map from the tile to service area code using
     pre-defined mapping tables and taking the UT position and position error
     into account. The data describing a virtual service area shall allow for
     the position error overlapping from one to three defined service areas
     different from the defined service area of the UT position. The service
     area containing the UT position shall be used when no virtual service areas
     are defined.

     6.19.4.3.1  The SBS shall map from the service area to service region code
     using pre-defined mapping tables.

     6.19.4.4.  The SRMC/NMS shall provide the following support for the ICO
     provided mapping tables needed for the definition and determination of
     tiles, service areas, service regions and service area characteristics;

          1.  reception of the tables in the form of files under operator
              control;

          2.  storage and archiving of the files;

          3.  distribution of the files to the SBSs under operator control.

     6.19.4.5.  SBS shall pass the service area and service region IDs to the
     MSSC during registration and call set-up.

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6.19.5. HANDLING OF UT-SUPPLIED POSITION INFORMATION

        6.19.5.1. If UT position information is provided by the UT itself then
        the SBS shall validate this information by comparing with the position
        determined in accordance with section 6.19.2.1.1 and the error estimated
        in accordance with section 6.19.2.3. The SBS shall assume the given UT
        position information is valid if the confidence region provided by the
        UT partially or completely overlaps with the determined position
        including its estimated error zone. The UT confidence region associated
        with the UT provided position shall be either derived in accordance with
        the Air Interface, or supplied by the UT.

        6.19.5.2. If the given UT position information is valid, the SBS shall
        use this UT position information.

        6.19.5.3. If the UT position information is not valid, the SBS shall use
        the position determined in accordance with sections 6.19.2.1 and
        6.19.2.3 in all subsequent steps.

6.20.   LEGAL INTERCEPTION

        6.20.1. The IGF Legal Interception Subsystem (LIS) shall provide the
        functionality required for the interception of user communications by
        authorised agencies for monitoring purposes.

        6.20.2. Intercepted user communications (known as intercept products)
        shall include all the IGF teleservices and bearer services as defined in
        the section 4 of this requirements specification.

        6.20.3. Apart from the interception of user communications, the LIS
        shall be able to collect data of a monitored call (known as intercept
        related data such as date, time, target identifier etc.) when a call
        attempt is made to/from a target subscriber and at the completion of the
        call.

        6.20.4. The intercept related data shall include, when available, the
        UT position in the form of latitude/longitude and accuracy indicator.

        6.20.5. The LIS shall support reporting of supplementary services
        activities in accordance with GSM TS 02.33 clause 4.2.2 and its
        sub-clauses, subject to the compliances to these requirements as stated
        in the ICONET Ground Facilities High Level System Description (HLSD).

        6.20.6. The LIS shall support the correlation of the intercept product
        and the intercept related data of a monitored call by the use of a call
        reference identifier.

        6.20.7. The LIS shall support target subscribers' identification by both
        MSISDN and IMEI.

        6.20.8. The LIS shall support both location independent (SANLOC) and
        location dependent interception (SUBLOC).

        6.20.9. SANLOC interception shall be triggered when a target subscriber
        is registered at a SAN and the SAN is covered by the interception
        warrant.

        6.20.10. SUBLOC interception shall be triggered when a target subscriber
        is determined to be located within the national jurisdiction of the
        requesting Law Enforcement Agency (LEA) at call setup time.

        6.20.11. The location of a target shall be defined by ICO service area
        (SA) for the purpose of determining SUBLOC triggering.

        6.20.12. The LIS shall be able to support ten simultaneous interceptions
        per SAN.

        6.20.13. The LIS shall be able to deliver the intercept product and the
        intercept related data, without any truncation and in parallel to up to
        four nominated monitoring centres identified by either national or
        international addresses.

        6.20.14. The LIS shall be capable of delivering the intercept product
        and the intercept related data to the destined monitoring centres in as
        near real time as possible.

        6.20.15. The LIS shall be able to deliver the intercept product in a
        separate stream to each of the nominated monitoring centres which are
        actively engaged in the monitoring activity.

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     6.20.16. The LIS shall support both fixed and switched connections to the
     monitoring centres. The number of fixed and switched connections to be
     provisioned shall be in accordance with their respective initial values as
     stated in Table 9-1 'Primary Capacity Drivers for the IGF' of this
     requirements specification.

     6.20.17. The LIS shall be able to support multiple legal warrants, and
     therefore multiple intercepts, in force against a single subscriber at any
     given time.

     6.20.18. The LIS shall comprise of three functional elements:

          1. the MSSC/VLR which provides the actual interception of target calls

          2. the Legal Interception Activation System (LIAS); one at each SAN

          3. the Legal Interception Management System (LIMS)

     The functional requirements of these 3 elements are stated in the following
     paragraphs.

     6.20.19. MSSC requirements

     6.20.19.1. The MSSC shall be capable of intercepting all calls from/to a
     particular subscriber including, but not limited to, forwarded calls and
     incoming calls to roaming subscribers.

     6.20.19.2. The interception by the MSSC of user communications shall be
     imperceptible to the end user i.e. the MSSC shall support covert
     monitoring.

     6.20.19.3. The services and features on offer to the end user by the MSSC
     shall not be limited by or otherwise affected by the application of
     interception.

     6.20.19.4. The MSSC shall generate CDRs to support the billing of the
     monitoring agencies for the resources used as a result of the interception.
     For the type of CDRs to be generated, see clause 5.1.1.1.1.3. of the IGF
     requirements (i.e. Schedule 13 of the Supply Agreement).

     6.20.20. LIAS requirements

     6.20.20.1. The LIAS shall support the mediation of intercept requests
     received from the LIMS to the MSSC/VLR.

     6.20.20.2. The LIAS shall support authentication of interception requests
     received from the LIMS to ensure that no unauthorised interception requests
     are accepted at the SAN.

     6.20.20.3. The LIAS shall provide buffering of intercept product and
     intercept related data delivered by the co-located MSSC at a SAN, whilst
     setting up connections to the specified monitoring centres, before routing
     the same to the destination addresses.

     6.29.20.4. The LIAS shall provide appropriate handling of SANLOC and SUBLOC
     interceptions according to the position information of the targets received
     from the MSSC for the monitored calls.

     6.20.20.5. The LIAS shall generate CDRs to support the billing of the
     monitoring agencies for the resources used as a result of the interception.

     6.20.21. LIMS requirements

     6.20.21.1. The LIMS shall support centralised management of legal
     interception capability.

     6.20.21.2. The LIMS shall provide secure management of legal interception
     warrants for intercepts. There shall be strict isolation between
     interception requests submitted by different agencies - even if agencies
     operate within the same national jurisdiction or have submitted warrants
     against the same target subscriber.

     6.20.21.3. The LIMS shall be able to configure an authorised intercept as
     SANLOC or SUBLOC with appropriate execution of the interception at the
     SANs.

     6.20.21.4. The LIMS shall support both manual and scheduled
     application/removal of interception of targets in the ICONET in a secure
     manner and without visibility to the local SAN operational staff.

     6.20.21.5. The LIMS shall only apply interceptions to those SANs which
     provide coverage in the jurisdiction of the interception authority
     presenting the warrant.

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     6.20.21.6. The LIMS shall maintain an audit trail of all actions performed
     by the operator(s) of the LIS.

     6.20.21.7. The LIMS shall be capable of auditing the interceptions set up
     at each SAN to determine if unauthorised interceptions have been set up
     at a SAN.

     6.20.21.8. The LIMS shall provide centralised Operation, Administration and
     Maintenance (OAM) facilities of the LIS.

     6.20.22. In addition to the technical requirements stated in section 6.20.
     of this IGF requirements specification, the LIS shall comply with the
     technical proposals as detailed in the ICO-Ericsson Control Document number
     360497 Chapter 6.

6.21. FORCED CALL ROUTING (F/R)

     6.21.1. It shall be possible to force route a call from within the ICONET
     (under the control of the ADC/SMAS) to a switch (end-system) of the
     requesting agent on the basis of:

          1. the service area of the subscriber

          2. home network/service provider of the subscriber (e.g. IMSI range)

          3. individual subscriber identity (e.g. IMSI/MSISDN).

     6.21.2. It shall be possible for the NMC to request Forced Call Routing via
     notification to the ADC/SMAS (e.g. for test purposes).

     6.21.3. The solution implemented by the MSSC shall require minimal support
     from the end-system of the requesting agency.

     6.21.4. Any impact on the quality of service delivered to the end user as a
     result of the application of forced call routing by the MSSC shall be kept
     to a minimum.

     6.21.5. The MSSC shall ensure that the re-routing of a call is not visible
     to the end users.

     6.21.6. The MSSC shall provide an administrative interface for the
     activation/deactivation of forced call routing.

     6.21.7. The IGF (namely the ADC/SMAS) shall provide an audit trail (log) of
     all forced call routing operations. This audit trail (log) shall be
     available to the NMC.

     6.21.8. The MSSC shall provide call detail records and measurement counters
     for each forced call routing attempt. The application of forced call
     routing shall not interfere in any way with the billing of the original
     call.

6.22. PURGING OF LOCATION REGISTERS

     6.22.1. The IGF shall support the purging of subscribers from the VLR as
     defined in TS GSM 09.02.

     6.22.2. The IGF shall support both implicit purging as a result of an
     extended period of inactivity as well as explicit purging via OAM command.

     6.22.3. The purging of a subscriber from the MSSC/VLR shall result in the
     deletion of all data for that subscriber in the MSSC/VLR.

     6.22.4. The VLR shall be capable of informing the HLR that a subscriber has
     been purged.

     6.22.5. On receipt of a purge notification from the VLR, the HLR shall
     consider the subscriber to be "not reachable" in order to avoid unnecessary
     signalling load.

6.23. ICO SPACE SEGMENT AND SANs

     6.23.1 The IGF shall be designed to meet full performance requirements with
     the baseline constellation: 10 satellites, 5 satellite per plane, equally
     spaced in terms of phase (72 degrees), inclination angle of 45 degrees.

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     6.23.2. The IGF shall be designed to allow operation with a satellite
     constellation consisting of from 1 to 12 satellites in 1 or 2 planes with 1
     to 6 satellites per plane.

     6.23.3. The IGF shall be able to support expansion up to 24 satellites and
     24 SANs as follows:

          1. The interfaces between entities of the IGF (NMC, SRMC, SAN-OSS,
             SBS, RFT) etc. shall be designed to provide data formats (field
             sizes, etc.) which accommodate expansion;

          2. Software in each entity shall be written in modules to facilitate
             expansion by replacement of modules and such that there are no
             avoidable limits on expansion in the internal interfaces between
             modules;

          3. The IGF equipment (hardware and software) shall be designed and
             configured such that expansion can be accommodated with minimal or
             no disruption to service, except when the increase of the number of
             RFT antennas per SAN and/or the increase of the maximum total EIRP
             per antenna is required.

     6.23.4. The IGF architecture shall be such that it may be expanded in
     increments and that minimum disruption occurs to the ICO system upon
     expansion, except when the increase of the number of RFT antennas per SAN
     and/or the increase of the maximum total EIRP per antenna is required.

     6.23.5. The SRMC shall be designed to accommodate ICO satellites which
     have a total of 163 spot beams on a regular, triangular lattice. It can be
     assumed that the payload rotational movement with respect to the Yaw axis
     is electrically and autonomously compensated by the payload so that the
     spot beam configuration is virtually fixed in the sense that the relative
     beam overlaps between the adjacent satellites are invariant.

     6.23.6. The IGF shall be capable of evolution to compatibility with the
     following alternative constellations:

          1. 6 to 18 satellites in 3 planes;

          2. up to 24 satellites in 4 planes.

     6.23.7. The IGF will be configured with 12 Satellite Access Nodes at the
     following locations:

     6.23.8.                      TABLE 6-1 SAN LOCATIONS
                                  -----------------------

<TABLE>
<CAPTION>
SAN Site location             Latitude              Longitude              Altitude(m)
--------------------------------------------------------------------------------------
<S>                           <C>                   <C>                    <C>
Australia, Ningi              27(degrees)03'35"S     153(degrees)03'30"E          2-16
Brazil, [Guaratiba]           [22(degrees)59'55"S    43(degrees)36'23"W             0]
Chile, Longvilo               33(degrees)57'11"S     71(degrees)23'49"W            166
China, Pudong                 31(degrees)20'06"N     121(degrees)31'05"E            40
Germany, Usingen              50(degrees)19'52"N     08(degrees)28'25"E            386
India, Chattarpur             28(degrees)31'27"N     77(degrees)11'12"E            684
Indonesia, Banyu Urip         06(degrees)55'15"S     112(degrees)31'17"E            42
Mexico, Tulancingo            20(degrees)03'52"N     98(degrees)26'07"W           2250
South Africa, Hartebeesthoek  25(degrees)54'36"S     27(degrees)42'35"E           1520
South Korea, [Kumsan]         [36(degrees)07'19"N    127(degrees)29'10"E          151]
UAE, Margum                   24(degrees)52'49"N     55(degrees)34'37"E             68
USA, Brewster                 48(degrees)08'19"N     119(degrees)41'28"W           177
</TABLE>

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6.24.  SECTION NOT USED

6.25.  RADIO SYNCHRONISATION

6.25.1.  TIME SYNCHRONISATION

6.25.1.1.  INTER-SAN TIME SYNCHRONISATION

     6.25.1.1.1.  The requirements of the SBS pertaining to GPS time
     synchronisation are as follows.

          1.  GPS time is the time of the GPS system.

          2.  The SBS shall maintain synchronisation to GPS time.

          3.  The SBS shall meet time synchronisation requirements for GPS
              outages lasting up to 1 week in duration.

          4.  The SBS shall synchronise the ATN number as defined in the Air
              Interface (Section 4.4.1 of ICO 05.02).

          5.  The HPN frame number shall be synchronised to the overall
              multiframe/superframe structures as defined in the air interface
              specifications.

          6.  The ATN number sequence starts at [24:00:00 05 January 1980] GPS
              time.

          7.  The ATN sequence counting is based on the GPS time.

6.25.1.2.  RADIO TIME SYNCHRONISATION

6.25.1.2.1.  COMMON CHANNEL TIMING SYNCHRONISATION

     6.25.1.2.1.1.  The requirements related to SCH, BCCH, and PCH/AGCH timing
     are as follows:

          1.  The SBS shall control the transmission of its SCH and BCCH bursts
              such that the burst timing error arriving at the Satellite is
              synchronised to GPS time within (plus minus) 3.5 microseconds,
              excluding the timing error between the SAN and satellite derived
              from satellite ephemeris.

          2.  The SBS shall transmit SCH and BCCH bursts in each spot beam
              controlled by the SBS in order to distribute system time
              information to UTs.

          3.  The SBS shall be capable of staggering or interleaving the
              transmission of the low-duty-cycle BCCH bursts in the multiple
              spot beams it controls, so as to reduce the satellite peak power
              demand, as planned by the SRMC.

          4.  The SBS shall control the transmission timing of its PCH/AGCH
              burst such that the burst timing error arriving at the satellite
              is synchronised to GPS time within 3.5 microsecond excluding the
              timing error between the SAN and satellite derived from satellite
              ephemeris.

     6.25.1.2.1.2. Requirements related to HPN forward/return channel timing
     synchronisation are as follows:

          1.  The HPN Transmit ChU shall control the transmission of the HPN
              forward channel burst such that the burst arrives at the satellite
              synchronised to the BCCH/MP with an absolute accuracy of 25
              microseconds.

6.25.1.2.2. LINK (BI-DIRECTIONAL DEDICATED CHANNEL) TIMING SYNCHRONISATION

     6.25.1.2.2.1. The NMC shall provide satellite C to S and S to C conversion
     delay and Z-arc delay to the SBSs.

     6.25.1.2.2.2. The IGF may assume that the satellite C to S conversion delay
     variability will be less than 100 nsec.

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     6.25.1.2.2.3. The IGF shall assume that the UT shall be capable of
     advancing or delaying transmission as defined in the Air Interface.

     6.25.1.2.2.4. The IGF shall assume that the UT shall use the rate-of-change
     information supplied by the SBS to adjust timing between updates.

     6.25.1.2.2.5. The IGF shall assume that the UT shall cause a time jitter
     of no more than (plus minus)2 microsecond under all operational
     conditions.

6.25.1.2.3. RACH TIME MEASUREMENTS AND INITIAL ASSIGNMENT

     6.25.1.2.3.1. The SAN shall set its receive timing reference to an
     accuracy of (plus minus) 3.5 microsecond from GPS time, excluding the
     timing error between SAN and satellite derived from the satellite
     ephemeris data.

     6.25.1.2.3.2. The SBS shall measure the Time Delay of the RACH transmitted
     from a UT.

     6.25.1.2.3.3. The accuracy of the time delay measurement in the
     demodulator relative to the signal at the demodulator input shall be
     better than (plus minus)7 microsecond 1sigma in an AWGN channel with a
     C/N=(minus)2.5 dB, and (plus minus)4 microsecond 1 sigma with C/N=+5.4dB.

     6.25.1.2.3.4. The SBS shall calculate the z-arc and required timing offset
     and send it to the UT.

     6.25.1.2.3.5. The timing offset shall be provided for position
     determination.

6.25.1.2.4. TCH/DCCH FORWARD LINK TIMING SYNCHRONISATION

     6.25.1.2.4.1. The SBS shall control the transmission of its TCH/DCCH burst
     such that the burst timing error at the Z-arc is synchronised to GPS time
     within (plus minus)3.5 microseconds, excluding (a) the timing error
     between the SAN and satellite derived from satellite ephemeris and (b) the
     timing variation in satellite C-to-S conversion.

6.25.1.2.5. TCH/DCCH RETURN LINK TIMING SYNCHRONISATION

     6.25.1.2.5.1. The SAN shall set its receiving timing reference to an
     accuracy of (plus minus)3.5 microseconds from GPS time with respect to the
     Z-arc, excluding (a) the timing error between the SAN and satellite
     derived from satellite ephemeris and (b) the timing variation in satellite
     S-to-C conversion.

     6.25.1.2.5.2. The SBS shall measure the Time Delay of the TCH/DCCH
     transmitted from a UT.

     6.25.1.2.5.3. The accuracy of the time delay measurement in the
     demodulator relative to the signal at the demodulator input shall be
     better than (plus minus) 14 microsecond 1sigma in an AWGN channel with a
     C/N=(minus)2.5 dB (DCCH/2 only), and (plus minus)6 microsecond 1 sigma
     with C/N = +5.4dB (all TCH and DCCH channels).

     6.25.1.2.5.4. The SBS shall use the measured time offsets for each SDCCH/2
     burst, along with time-stamp at point of measurement, and other data, in
     position determination.

     6.25.1.2.5.5. The SBS shall monitor the timing offset of each UT burst on
     a dedicated bi-directional channel up to a maximum offset of (plus
     minus)56 microsecond

     6.25.1.2.5.6. The SBS shall calculate and send the required timing
     adjustment and the rate of timing change to the UT when the UT timing
     error exceeds a configurable period (range 3 to 30 microsecond, nominal 10
     microsecond). The format shall be as defined in the Air Interface.

     6.25.1.2.5.7. The SBS shall be able to send these required timing
     adjustments and rate of timing changes to the UT at an average rate of
     once per 10 seconds (over all UTs), and at a maximum rate of once per 1
     seconds (for any UT).

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6.25.1.3. SAN TO SATELLITE DELAY ESTIMATION

     6.25.1.3.1. The NMC shall provide for ephemeris data to be received from
     the SCC.

     6.25.1.3.2. The NMC shall transfer the ephemeris data to the SAN SRMS as
     required.

     6.25.1.3.3. The SAN SRMS shall transfer the ephemeris data to the SBS as
     required.

     6.25.1.3.4. The SBS shall use the ephemeris data to calculate the SAN to
     satellite delay value to within [plus or minus 2.0] (micron) sec, 3 sigma
     error, at any given instant in time.

     6.25.1.3.5. The IGF shall assume that the ephemeris data provided to the
     IGF is of sufficient quality to permit the calculation of the SAN to
     satellite delay value to the accuracy required.

6.25.2. FREQUENCY SYNCHRONISATION

6.25.2.1. FREQUENCY REFERENCES

6.25.2.1.1. SATELLITE PAYLOAD FREQUENCY REFERENCE

     6.25.2.1.1.1. The IGF shall assume the SCC will provide the correction for
     satellite payload frequency reference error to the satellite.

     6.25.2.1.1.2. The IGF shall assume the correction for satellite payload
     frequency reference error provided to the satellite shall be less than
     5.0x10(negative tenth power) and that there is at least a 10 second delay
     between successive corrections.

6.25.2.1.2. LES FREQUENCY REFERENCE

     6.25.2.1.2.1. The LES shall include frequency reference equipment that are
     used as the basis for frequency and timing measurements for the
     synchronisation of the RFT, SBS, PCS, HPN Subsystem and of the transmission
     links to the TNM.

     6.25.2.1.2.2. The frequency stability shall be better than 1x10(negative
     tenth power) over 1 year.

     6.25.2.1.2.3. The LES frequency reference equipment shall support the
     synchronisation of radio signals within the specified tolerances of GPS
     time.

     6.25.2.1.2.4. The LES frequency reference equipment shall provide a
     secondary clock source for use in case of failure of the primary source,
     with accuracy and stability to enable operation of the LES for at least 1
     week.

6.25.2.2. SECTION NOT USED

6.25.2.3. LINK DOPPLER COMPENSATION

6.25.2.3.1. GENERAL

     6.25.2.3.1.1. The SBS and RFT shall transmit all forward direction channels
     in the spot beam, (including BCCH, SCH, PCH, AGCH, and those of TCH & DCCH
     channels), such that their frequencies are corrected in frequency at the
     frequency reference point of each particular spot beam relative to their
     nominal frequencies specified by SRMC to an accuracy as specified in
     Section 6.25.2.3.2.

     6.25.2.3.1.2. The SBS and RFT shall enable the frequencies of all return
     direction channels, (including RACH and those of TCH and DCCH channels),
     received from a spot beam to be provided at the demodulator input, relative
     to their nominal frequencies at a spot beam frequency reference point of
     each spot beam, to an accuracy as specified in Section 6.25.2.3.2.

     6.25.2.3.1.3. The Doppler compensation shall be done per satellite and per
     beam in order to obtain "zero" frequency reference for each beam at a point
     that represents the Doppler offset of that beam.

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     6.25.2.3.1.4. The overall formula performed by the SBS and RFT subsystem
     for frequency correction of its transmitted burst shall be:

             Ft=((Fs/(1+Dbn))+Fcs(1+M))/(1+Dc)

             Where:

          1. Ft:   Transmit frequency from the SAN

          2. Fs:   S-band frequency

          3. Fcs:  Translation frequency from C to S band

          4. Dbn:  Fractional Doppler shift of the service link at the zero
                   Doppler offset reference point on the earth for each beam

          5. Dc:   Fractional Doppler of the Feeder Link

          6. M:    Fractional satellite payload frequency reference offset.

     6.25.2.3.1.5. The SRMS shall estimate the Dbn value from the satellite
     ephemeris data provided by SCC, and assuming an oblate earth model, and
     supply them to the SBS and HPN subsystem.

     6.25.2.3.1.6. The SRMS shall provide Dbn parameters within an accuracy of
     (plus or minus)[1]Hz excluding errors in the ephemeris data.

     6.25.2.3.1.7. Each RFT shall compensate the forward transmit frequency for
     the C-band Doppler.

     6.25.2.3.1.8. The RFT shall provide the following data at regular intervals
     of 1 second for each antenna which is tracking a satellite:

          1. satellite payload frequency reference offset (M)

          2. forward feeder link Doppler offset (Dc).

     6.25.2.3.1.9. The RFT shall timestamp each measurement.

     6.25.2.3.1.10. The RFT subsystem shall provide frequency reference offsets
     (M) and Doppler offsets (Dc) with a resolution of at least [1 Hz] and an
     accuracy of better than [(plus or minus)6 Hz].

6.25.2.3.2. FREQUENCY ERROR BUDGET

     6.25.2.3.2.1. The frequency error budget is a list of all of the
     contributors of error and the maximum error which shall be permitted.

     6.25.2.3.2.2. The SBS requirements are shown in the following table:

               6.25.2.3.2.3. TABLE 6-2 SBS FREQUENCY ERROR BUDGET
                             ------------------------------------

<TABLE>
<CAPTION>
TERM                      FRACTIONAL ERROR              ERROR (HZ)
------------------------------------------------------------------
<S>                            <C>                          <C>
CU Receive Error                1.7E-9                        3
CU Residual Doppler               N/A                         1
CU Transmit Error               1.9E-09                       3
</TABLE>

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     6.25.2.3.2.4. The RFT requirements are shown in the following table:

               6.25.2.3.2.5. TABLE 6-3 RFT FREQUENCY ERROR BUDGET
                             ------------------------------------

<TABLE>
<CAPTION>
TERM                            ERROR (HZ)
------------------------------------------
<S>                                <C>
RFT Down Conversion                  1
RFT Doppler tracking                 5
RFT Up Conversion                    1
</TABLE>

     6.25.2.3.2.6. The total error of SBS and RFT, excluding errors due to Dbn
     estimation is (plus or minus)10 Hz, 3 sigma, per Tx or Rx direction.

6.25.2.3.3. SECTION NOT USED

6.25.2.3.4. HPN FREQUENCY CONTROL

     6.25.2.3.4.1. The forward channel frequency pre-correction shall be done at
     the HPN ChM by using the Doppler frequency-related information provided by
     the SAN-OSS for the Spot Beam reference point and taking into account the
     feeder link Doppler and master oscillator error reported by the RFT.

     6.25.2.3.4.2. The bursts transmitted by the HPN Transmit ChU shall have the
     frequency pre-corrected such that they are received on earth at their
     nominal values corresponding to the intended Spot Beam reference point with
     an absolute accuracy of [100 Hz].

     6.25.2.3.4.3. The frequency correction associated with each HPN forward
     channel burst is expected to be different, since bursts are being
     continually sent to different satellite beams.

6.25.2.3.5. LINK (BI-DIRECTIONAL DEDICATED CHANNEL) FREQUENCY SYNCHRONISATION

6.25.2.3.5.1. Initial Acquisition (RACH and AGCH)

     6.25.2.3.5.1.1. The SBS shall detect the RACH transmission at frequency
     offsets of up to [(plus or minus)2500] Hz, at the SAN input.

     6.25.2.3.5.1.2. The SBS shall measure the RACH frequency offset relative
     its frequency at the demodulator input to an accuracy of (plus or minus)13
     Hz 1 sigma with a C/N of -2.5 dB and (plus or minus)8 Hz 1 sigma at a C/N
     of 5.4 dB in AWGN.

     6.25.2.3.5.1.3. The SBS shall use the measured frequency offset, along with
     other data, in position determination.

     6.25.2.3.5.1.4. The SBS shall transmit an initial frequency correction to
     the UT in the IMMEDIATE ASSIGNMENT message as defined in the Air Interface.
     The maximum correction is [(plus or minus)2500] Hz, and the granularity is
     [8] Hz.

6.25.2.3.5.2. Forward Frequency Link Control

     6.25.2.3.5.2.1. The SBS and each RFT shall maintain the forward dedicated
     channel at the frequency reference point as described in Section
     6.25.2.3.2, Frequency Error Budget.

6.25.2.3.5.3. Return Frequency Measurement and Link Control

     6.25.2.3.5.3.1. The  SBS shall measure the medium penetration SDCCH/2
     frequency offset relative to its frequency at the demodulator input to an
     accuracy of (plus or minus)[20] Hz 1 sigma with a C/N of -2.5 dB and (plus
     or minus)12 Hz 1 sigma at a C/N of 5.4 dB.

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     6.25.2.3.5.3.2. The SBS shall measure the nominal penetration SDCCH6/TCH
     frequency offset relative to its frequency at the demodulator input to an
     accuracy of (plus or minus)12 Hz 1 sigma at a C/N of 5.4 dB.

     6.25.2.3.5.3.3. The SBS shall use the measured frequency offsets for each
     physical SDCCH/2 burst, along with the timestamp at the point of
     measurement and other data, in position determination.

     6.25.2.3.5.3.4. The  SBS shall be able to acquire the return direction of
     the dedicated channels with an initial frequency error of up to (plus or
     minus)[170] Hz relative to their nominal frequency.

     6.25.2.3.5.3.5. The SBS shall inform the UT of frequency corrections to be
     made to the return channel in the SACCH message as defined in the Air
     Interface. Updates shall be made whenever the frequency error exceeds a
     configurable value (range 10 - 32 Hz nominal 20 Hz), with corrections up to
     a maximum of (plus or minus)32 Hz with a granularity of 1 Hz.

     6.25.2.3.5.3.6. The SBS shall be able to provide these corrections at an
     average rate of once every [10] seconds (for all UTs), and at a maximum
     rate of once per 1 seconds per UT.

6.25.2.3.6. EFFECT OF VEHICLE MOTION AND VELOCITY

     6.25.2.3.6.1. The SBS shall be able to initiate and maintain communication
     with the UT with UT-induced Doppler up to 200 Hz provided that the rate of
     change of Doppler is less than 20 Hz/sec.

     6.25.2.3.6.2. If the UT velocity exceeds 5 km/hr at the time of the RACH,
     position determination accuracy will be reduced.

6.25.3. TERRESTRIAL NETWORK SYNCHRONISATION

     6.25.3.1. The MSSC shall be capable of being configured to take its
     frequency synchronisation from one of a set of communication interfaces in
     priority order, with a minimum of 4 interfaces being identified for this
     purpose. A particular interface shall be used as the synchronisation source
     if all interfaces of higher priority have failed.

     6.25.3.2. Where all external sources have failed the MSSC shall operate
     from a local synchronisation source. The quality, including holdover and
     free-running modes of operation, of the local source shall be that of a
     Secondary Reference Clock in accordance with ITU-T Recommendation G.812.

     6.25.3.3. The MSSC shall provide elastic buffers for time delay jitter and
     frequency synchronisation between the selected source of synchronisation
     and all other interfaces.

     6.25.3.4. The  MSSC synchronisation functions shall be in accordance with
     WG360497 IPC Deliverable Control Document, Section 3.4.1.26.5 Network
     Synchronisation.

     6.25.3.5. The TNM shall derive its timing reference at the terrestrial
     network interface (MSSC-TNM) from the incoming PCM and MCD signals and at
     the radio/satellite network interface (SBS-TNM) from the incoming MCD
     signals.

     6.25.3.6. Failure of any link input to the TNM shall not prevent traffic
     from other links being synchronised.

     6.25.3.7. The TNM shall provide time delay jitter and clock drift
     correction between

          1. the internal vocoder/multiplexer clock, and

          2. the incoming PCM and MCD signals from the MSSC and,

          3. MCD signals from the SBS,

     by means of an elastic buffer.

     6.25.3.8. Larger time errors including any difference between the clocks on
     the MSSC and SBS sides of the TNM shall be accommodated in the time domain
     to frequency domain conversion process of the vocoder.

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     6.25.3.9. The SBS including its transmission clocks towards the TNM shall
     be frequency synchronised to the LES Frequency Reference.

     6.25.3.10. The FEC and timing part of the vocoder in the SBS shall
     accommodate shifts up to 20 msec between the Air Interface modem data and
     the signals to the vocoder. This function shall automatically select an
     alternative MCD slot to the TNM to minimise any delay in less than 10
     seconds after a step change of up to 20 msecs.

     6.25.3.11. The configuration, operation and maintenance of the
     synchronisation sources and priorities for the MSSC shall be capable of
     control through the MSSC network management systems.

6.26. AIR INTERFACE ELEMENTARY AND STRUCTURED PROCEDURES

6.26.1. AIR INTERFACE ELEMENTARY PROCEDURES

     6.26.1.1. The IGF shall support the network side of all Air Interface
     elementary procedures necessary and sufficient to provide the services and
     system functions specified in this document.

     6.26.1.2. The IGF shall comply with the network side at least of the
     following elementary procedures as defined in the Air Interface documents
     available at time of contract.

            6.26.1.3. TABLE 6-4 AIR INTERFACE ELEMENTARY PROCEDURES
     ---------------------------------------------------------------------
                                   PROCEDURE
     ---------------------------------------------------------------------
     Establishment of Multiple Frame (MF) operation
                       Normal establishment
                       Contention Resolution
     ---------------------------------------------------------------------
     Information Transfer
                       Unacknowledged
                       Acknowledged
     ---------------------------------------------------------------------
     Suspension/Resumption of MF operation
     ---------------------------------------------------------------------
     Release of MF operation
     ---------------------------------------------------------------------
     RR Connection Establishment
                       Immediate Assignment
                       Paging
     ---------------------------------------------------------------------
     RR Connection Transfer
                       Measurement report
                       Channel Re-assignment
                       Path Re-definition
                       Channel Mode Modify
                       Cipher Mode Setting
                       Classmark Change
                       Classmark Interrogation (not supported by MSSC)
     ---------------------------------------------------------------------
     RR Connection Release
     ---------------------------------------------------------------------
     Idle Mode         System Information Broadcasting
     ---------------------------------------------------------------------
     MM Connection Establishment
     ---------------------------------------------------------------------

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     ---------------------------------------------------------------------
                                   PROCEDURE
     ---------------------------------------------------------------------
     MM Connection Information Transfer
                      TMSI Re-allocation
                      Authentication
                      Identification
                      IMSI Detach
                      Abort
                      Location Updating
                      Periodic Updating
                      IMSI Attach
                      Generic Location Updating
     ---------------------------------------------------------------------
     MM Connection Release
     ---------------------------------------------------------------------
     Call Establishment
                      Mobile originated
                      Mobile Terminated
     ---------------------------------------------------------------------
     Call Clearing
                      Mobile initiated
                      Network initiated
     ---------------------------------------------------------------------
     Others
                      User Notification (MSSC supports only network to UT
                      direction)
                      Call Rearrangements (MSSC supports only network to
                      UT direction)
                      DTMF
                      In-band tones and announcements
                      Call collisions
                      Status
                      Call Re-establishment, UT side
                      Call Re-establishment, Network side (not supported
                      by the MSSC)
                      Progress
     ---------------------------------------------------------------------

6.26.2. STRUCTURED PROCEDURES

     6.26.2.1. The IGF shall support the network side of all structured
     procedures necessary and sufficient to provide the services and system
     functions specified in this document.

     6.26.2.2. The IGF shall comply with the network side of at least the
     following structured procedures.

                   6.26.2.3. TABLE 6-5 STRUCTURED PROCEDURES
         -------------------------------------------------------------
                                   PROCEDURE
         -------------------------------------------------------------
         1. UT Registration
         -------------------------------------------------------------
         2. Location Update
         -------------------------------------------------------------
         3. Follow on Procedure
         -------------------------------------------------------------
         4. Mobile Originated Call Establishment
         -------------------------------------------------------------
         5. Mobile Terminated Call Establishment
         -------------------------------------------------------------
         6. CM Call Release
         -------------------------------------------------------------
         7. IMSI Attach
         -------------------------------------------------------------
         8. Diversity path addition (path redefinition)
         -------------------------------------------------------------

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                                   Procedure

           9. Diversity path removal (path redefinition)
          10. Handover using path redefinition
          11. SDCCH to TCH transition (using channel re-assignment)
          12. Intra-Channel Manager handover (channel re-assignment)
          13. Intra-SAN handover (inter channel manager channel re-assignment)
          14. Inter-SAN handover (channel re-assignment), but not inter-MSSC
              handover
          15. Mobile Originated SMS (in Idle mode and in call)
          16. Mobile Terminated SMS (in Idle mode and in call)
          17. HPN message delivery and acknowledgement
          18. DTMF end-to-end procedures (in band)
          19. Stand alone Supplementary Services
          20. Supplementary Services while in call
          21. In-Call Modification (Speech followed by fax)
          22. In-Call Modification (Alternate speech and fax)
          23. Channel Mode Modification
          24. Channel Assignment through Reassignment

     6.26.2.4. Where applicable the structured procedures shall be provided for
     both direct connection SBS-TNM-MSSC and for transit connection through a
     second TNM, i.e. SBS-TNM-TNM-MSSC.

6.27. UT/SUBSCRIBER ACCESS MANAGEMENT AND CONTROL

     6.27.1. In order to comply with possible regulatory constraints on the
     usage of ICO radio terminals, the MSSC shall support the following types
     of access restriction on the usage of ICO UTs from within a particular
     geographic region (i.e. service region/service area):

           1. The prevention of access by any ICO UT.

           2. The prevention of access by any subscriber from a particular home
              network and/or country, provided that IMSI will determine the home
              network or the country for which the prevention will take place.

           3. The prevention of access by individual ICO home subscribers
              (subscribers contained in an ICO HLR/ILR).

           4. The prevention of access by particular UTs. (F/R)

6.28. ACCESS CLASS HANDLING

6.28.1. GENERAL

     6.28.1.1. The IGF shall achieve access class handling by using the RACH
     control parameters of each BCCH for the purpose of managing the access of
     UTs to the ICO network

     6.28.1.2. The NMC shall provide access class handling information as
     follows:

           1. static traffic planning

           2. static frequency planning.

     6.28.1.3. The NMS shall provide:

           1. [fault and configuration management trigger].

     6.28.1.4. The SBS shall perform access class handling with the following
     consideration:

           1. dynamic traffic flow control.

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6.28.2. BARRING OF ACCESS CLASSES

     6.28.2.1. For the purpose of barring, there shall be two groups of access
     classes namely normal access classes and special access classes. Each of
     these two groups of access classes shall have individual classes of their
     own.

     6.28.2.2. All individual access classes of the normal access class group
     shall have equal priority .

     6.28.2.2. The individual access classes of the special access class group
     shall have priority which are configurable.

     6.28.2.3. The SBS shall provide separate access class restrictions on
     barring for each spotbeam individually.

     6.28.2.4. SBS shall ensure a random selection of the individual access
     classes when barring is required. The randomisation shall be spread
     firstly over individual classes of the normal Access Class group ensuring
     no repeat of any one class or classes until having cycled through all the
     individual classes even if there had been a break in barring or a
     resumption of service over a certain period of time.

     6.28.2.5. The SBS shall:

           1. perform Access Class barring progressively and incrementally
     before escalating to barring of the entire spot-beam;

           2. only start barring the special access group when all normal
     access classes has been barred;

           3. Barring of individual classes (normal or special) can be overview
     and selectable by OAM.

6.28.3. UNBARRING OF ACCESS CLASSES

     6.28.3.1. The unbarring of access classes shall be the complement of the
     barring process.

6.29. SUBSCRIBER CLASS HANDLING (F/R)

     6.29.1. The IGF shall support the Ericsson "subscriber class"
     (subscription type) feature. This feature permits each mobile subscriber
     to be associated with a subscription type that is independent of the
     subscriber's number, (IMSI, MSISDN). The subscription type may then be
     used to influence the routing, charging, accounting, etc. of the call. For
     further details see the following documents:

           1. WG360081 Handling of subscription type for subscriber dependent
              analysis in MSC/VLR

           2. WG360082 Handling of subscription type for subscriber dependent
              analysis in GMSC.

           3. WG360837 Protocol specification for mobile subscriber
              subscription type in MSC/VLR.

6.30. CLASSMARK HANDLING

     6.30.1. The SBS and MSSC shall use the UT Classmark, when available, to
     determine the service it shall provide to the UT.

     6.30.2. The SBS and MSSC shall use a default UT Classmark, when the UT's
     Classmark is not available, to determine the service it shall provide to
     the UT.

     6.30.3. The SBS and MSSC shall maintain a default Classmark that allows
     for:

           1. treatment and handling of the UT's radio access before all UT
              characteristics is known

           2. initiation of call-control processes before or during the time
              the UT is updating the network of its full equipment
              characteristics.

     6.30.4. The SBS and MSSC shall use default Classmark information until
     such time that actual Classmark information is updated by the UT in part
     or in whole.

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     6.30.5. The MSSC and SBS shall have the capability to query a UT about its
     Classmark

          1. any time during an active transaction

          2. both autonomously and/or under operator control

     6.30.6. If a UT fails to respond to a Classmark query, the MSSC and SBS
     shall continue using the default Classmark.

6.31. Channel Mode Modify

6.31.1. Channel Mode Modify in the SBS and TNM

     6.31.1.1. The SBS and TNM shall support and use the channel mode modify air
     interface procedure when required to do so for alternate speech/fax and
     alternate speech/data services.

6.31.2. Channel Mode Modify in the MSSC

     6.31.2.1. The MSSC shall support and use the Channel Mode Modify procedure
     to control the radio path from the SBS when providing fax and data services
     via the D-IWF.

     6.31.2.2. The D-IWF shall use the Channel Mode Modify procedure in order
     to adopt the user rate on the radio channel.

     6.31.2.3. The message speed used for the facsimile transmission is not
     known when setting up a facsimile connection. This speed is determined by
     T.30 negotiation between the facsimile machines. The facsimile adapter
     reads the frames of the negotiation. When the facsimile adapter has
     detected the rate, the chosen rate must be indicated, if this rate differs
     from the radio channel rate. The D-IWF will then initiate the Channel Mode
     Modify procedure, in order to change the user rate on the radio channel.

     6.31.2.4. The facsimile machines may decide to change to a lower facsimile
     transmission rate, due to bad line quality. this may happen during the
     inband call setup or in data phase. In both cases, the facsimile adapter
     performs a request for Channel Mode Modify.

     6.31.2.5. The facsimile machines may also change back to a higher facsimile
     transmission rate.

6.32. In-Call Modification

     6.32.1 In-call modification can be invoked once the call is in active
     state. The switching from current mode to the other mode is performed at
     the access without support from the network.

     6.32.2. In-call modification is invoked when a modification request is
     received from the mobile subscriber (calling or called MSs).

     6.32.3. The In-call modification procedure might be repeated several times.
     There is no limit concerning the number of switchings during a call.

     6.32.4. The MSSC/VLR checks the received request and if the requested mode
     is already the actual one, the MSSC/VLR completes the in-call modification
     procedure without initialising anything else. Otherwise, the MSSC/VLR
     informs the interworking unit about the in-call modification request.

     6.32.5. The MSC/VLR performs a new assignment procedure to adapt to the new
     mode.

     6.32.6. The connection of the D-IWF is performed in the MSSC/VLR when
     switching from speech to fax. The connection of the D-IWF is released in
     the MSSC/VLR when switching from fax to speech.

     6.32.7. The MSSC/VLR orders the D-IWF to put into effect the requested
     mode.

     6.32.8. The MSSC/VLR completes the in-call modification procedure by
     acknowledging the mobile subscriber and for fax call, wait for data
     transfer indication for D-IWF.

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6.33 SUPPORT FOR DTMF

     6.33.1. The IGF shall support the sending and receiving of DTMF tones
     from/to the UT to the PSTN/ISDN as defined in the ICO Air Interface.

     6.33.2. The TNM shall support the in-band transport of DTMF tones in voice
     mode.

6.34. RELEASE OF RESOURCES

6.34.1. GENERAL

     6.34.1.1. The IGF shall apply controlled release of all allocated
     resources that are no longer in use. This shall apply to all:

          1. satellite spectrum, power resources, and equipment,

          2. internal ICONET resources, and

          3. Resources external to ICONET but shared or used by the ICO network
             (which may or may not have been owned, managed or controlled by the
             ICO network) e.g. the interface resources to the PSTN, PLMN, ISDN,
             PSPDN.

6.34.2. RELEASE OF EQUIPMENT, SATELLITE SPECTRUM AND SATELLITE POWER RESOURCES

     6.34.2.1. The SBS shall release satellite spectrum, power resources, and
     equipment used for that call, promptly after the use of the resource has
     ended.

     6.34.2.2. The SBS shall release the satellite spectrum and power resources
     independently of other resources (internal or external to the IGF which
     prior to the moment of release are under common usage).

     6.34.2.3. In releasing the satellite spectrum, power resources, and
     equipment, the SBS shall release and make available those resources for
     other users within a 10 second period of time from the completion of the
     protocol exchange.

     6.34.2.4. The IGF shall only release allocated resources when the usage of
     such resources is no longer required.

     6.34.2.5. In an allocated resource is not used, the IGF shall release that
     resource following a time-out period.

     6.34.2.6. Where possible, the SBS shall co-ordinate with the UT the
     release of the allocated resources.

     6.34.2.7. All control and communications for releasing of Air Interface
     resources shall follow the ICO Air-Interface Specification release
     procedures.

6.34.3. RELEASE OF RESOURCES EXTERNAL TO IGF

     6.34.3.1. The IGF shall follow the appropriate interface specifications
     and standards that apply for that interface.

6.35. QUEUING

     6.35.1. SBS shall support Queuing Indication message in all cases of
     resource assignment when the resource is not available, except for
     diversity allocations, or where the queuing does not need to be advised to
     the MSSC.

     6.35.2. SBS-OMC shall support configuration of T11 timer.

     6.35.3. SBS shall support the queuing procedure conforming to ICO BSSMAP
     document 08.08.

     6.35.4. The TNM shall support the queuing procedure protocol between the
     SBS and the MSSC conforming to BSSMAP 08.08.

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6.36 CONGESTION AND OVERLOAD

     6.36.1. The MSSC shall provide internal means (such as queuing) for
     controlling the number of offered calls which are accepted so as to ensure
     proper handling of the calls which have been accepted.

     6.36.2. Congestion at MSSC shall use Overload message defined in BSSMAP
     08.08 to indicate to the TNM to reduce the traffic. (F/R)

     6.36.3. MSSC shall support timer T5 and T6. (F/R)

     6.36.4. Congestion at SBS shall use OVERLOAD message defined in BSSMAP
     08.08 to indicate to the TNM to reduce the traffic.

     6.36.5. SBS shall support timer T17 and T18.

     6.36.6. The TNM shall support the overload procedure protocol between the
     SBS and the MSSC confirming to BSSMAP 08.08 and will distribute the
     messages to all appropriate MSSCs and SBSs.

6.37. C7 SIGNALLING LINK MONITORING

     6.37.1. The MSSC signalling link monitoring function performs continuous
     fault supervision of all activated signalling links. It includes
     supervision of both the signalling terminal hardware and the message
     transfer ability.

     6.37.2. The signalling links are also checked by routine tests in
     accordance with the CCITT recommendation Q.707. This test is executed at
     regular intervals for each signaling link that is available for level 3
     traffic. The length of the intervals can be set by application parameters.
     If the test fails, restoration of the signalling link is initiated.

     6.37.3. An alarm is generated if a signalling link cannot be restored
     after a failure. The alarm class are specified by command.

     6.37.4. Alarm ceasing is generated when the signalling link is restored or
     deactivated by command.

     6.37.5. Signalling Traffic Management function as per ITU-T Q.701 Section
     3.3.1 shall be required.

     6.37.6. Signalling Link Management function as per ITU-T Q.701 Section
     3.3.2 shall be required.

     6.37.7. Signalling Route Management function as per ITU-T Q.701 Section
     3.3.3 shall be required for those cases when quasi-associated mode of
     signalling is used.

     6.37.8. The TNM will perform similar monitoring of the C7 signalling links
     between the TNM and SBS.

     6.37.9. The SBS will support the monitoring of the C7 signalling links by
     the TNM.

6.38. VOICE CODING

     6.38.1. The Voice Codec shall perform all of the voice signal processing
     functions for the system.

     6.38.2. The Voice Codec shall receive Air Interface format frames and
     provide PCM format speech to the Terrestrial Interface.

     6.38.3. In the SAN transmit direction, this block accepts 64kbps PCM
     encoded (A- or (micron)-law) speech and encodes it according to the ICO
     Voice Codec encoding algorithm.

     6.38.4. The Voice Codec will implement the Vocoding algorithm supplied by
     ICO, whose resource requirements interfaces and functionality are
     equivalent to those specified in NEC paper WG4-CN-60020-A3.

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     6.38.5 The vocoder shall be switched to By-pass Mode when the Bearer
     Capability for the call indicates Fax/Data.

6.39. DTX

     6.39.1. The IGF shall support voice activation on voice type calls, in
     forward and reverse directions, transparent to the MSSC.

     6.39.2. The use of voice activation shall be determined on a per call
     basis and signalled during call setup.

     6.39.3. The Voice Codec will signal the Air Interface MODEM to activate
     the transmit carrier as required.

     6.39.4. The voice codec shall include dynamic voice activation control
     which adapts the voice activation threshold depending upon the background
     noise characteristics of the voice input.

     6.39.5. When voice is inactive, silence frames shall be sent as defined in
     the Air Interface.

     6.39.6. On signalling channels, data bursts shall be sent when data is to
     be transferred. SACCH bursts shall be sent to maintain the link.

6.40. SYSTEM INFORMATION BROADCASTING

     6.40.1. The IGF shall implement the BCCH as defined in the Air Interface.

     6.40.2. The IGF shall generate system information to assist UTs in their
     Idle Mode operations. This information shall be in compliance with Idle
     Mode specifications stated in the ICO Air Interface reference.

     6.40.3. The SRMC shall distribute the system information to each SAN OSS
     as required.

     6.40.4. The SAN OSS shall provide the information to the SBS for broadcast
     via the BCCH/MP.

     6.40.5. The SBS shall add frame-number information and dynamic access
     control information to the information being broadcasted.

     6.40.6. The SBS shall broadcast this system information in accordance with
     the specifications stated in the Air Interface.

     6.40.7. The SBS shall be capable of broadcasting system information on the
     BCCH channel of the spot beams it controls.

     6.40.8. The SBSs of the IGF, taken together shall be capable of
     transmitting one or more BCCH in each spot beam of each satellite.

     6.40.9. The SBS shall be capable of starting and stopping BCCH
     transmission as planned by the SRMC independently in each spot beam as
     required for BCCH control transition from one SAN to another as beam
     control is handed over to a different SAN. The burst number shall be used
     to co-ordinate this transition of control.

     6.40.10. The SBS shall send the Sync Burst (SB) over SCH. The contents of
     SB are as described in the Air Interface and are generated locally at each
     SBS.

     6.40.11. The IGF shall have the capability to allow the configuration and
     control of the configurable part of the BCCH content by the NMC/SRMC
     operator.

6.41. RADIO ACCESS MANAGEMENT

6.4.1. PAGING CHANNEL (PCH)

     6.41.1.1. Requirements are as covered in Section 6.8.

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6.41.2. ACCESS GRANT CHANNEL(AGCH)

        6.41.2.1. The IGF shall implement the AGCH as defined in the Air
        Interface.

        6.41.2.2. The IGF shall be capable of transmitting one or more AGCH in
        each spot beam of each satellite.

        6.41.2.3. The SBS shall allocate radio resource based on the information
        in the RACH and shall then transmit this information over the AGCH
        channel in the same spot beam as the RACH was received. This information
        shall include the type of channel(SDDCH/6 or SDDCH/2 or TCH), forward
        and return link frequencies, timeslot number and initial timing and
        frequency adjustments.

        6.41.2.4. The SBS shall release resources allocated if no link
        establishment request has been received in response to an AGCH message
        within a wait time as specified.

        6.41.2.5. The SBS shall provide the OAM capability to view current
        actual channel configuration as well as to change the channel
        configuration.

        6.41.2.6. After granting the radio resource to the UT, the SBS shall
        immediately start maintenance of the granted radio resource.

        6.41.2.7. If the SBS is unable to grant radio access to the UT, the SBS
        shall inform the UT of such failure indicating sufficient parameters to
        the UT as to when it can attempt a retry, as given in Air-Interface
        Specifications.

        6.41.2.8. If the traffic over AGCH exceeds the allocated capacity, the
        IGF shall queue access grant messages. If the queue is exceeded, then
        access grant messages will be dropped.

6.41.3. RANDOM ACCESS CHANNEL(RACH)

        6.41.3.1. The SBS shall implement the RACH as defined in the Air
        Interface.

        6.41.3.2. The SBSs of the IGF, taken together, shall be capable of
        receiving one or more RACH in each spot beam of each satellite
        simultaneously.

        6.41.3.3. The SBS shall receive and process the RACH request as
        described in Section 6.41.2, Access Grant Channel(AGCH).

        6.41.3.4. The SBS shall provide the OAM capability to view current
        actual channel configuration as well as to change the channel
        configuration.

6.41.4. FAST AND SLOW ASSOCIATED CONTROL CHANNELS(FACCH AND SACCH)

        6.41.4.1. The SBS shall implement the FAACH and SACCH as defined in the
        air interface.

        6.41.4.2. The SBS shall implement FACCH and SACCH(transmit/receive) for
        each connection.

        6.41.4.3. The TNM shall originate and receive FAACH content specific to
        vocoder operation and shall identify these frames as FACCH frames.

        6.41.4.4. The SBS shall generate SACCH/FACCH content for other
        usage(non-vocoder) and in the case of FACCH shall insert them in place
        of voice frames (or silence.

6.42. RADIO SESSION MANAGEMENT

6.42.1. SESSION INITIATION REQUIREMENTS

6.42.1.1. GENERAL

        6.42.1.1.1. The requirement related to establishing an RR session over
        SDCCH are as follows:

          1. The SBS shall support layer 2 link establishing procedures as
             described in ICO Air Interface;

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          2. The SBS shall support the SDCCH/TCH transition when a connection
             needs to be switched from signalling to traffic.

6.42.1.2. CAPABILITIES FOR SIGNALLING RESOURCE ALLOCATION

        6.42.1.2.1. The SBS shall be capable of bi-directional communication for
        signalling between the UT and the network:

          1. through a medium penetration DCCH;

          2. through a nominal penetration DCCH;

          3. through normal TCH resources set to 'signalling only' when used as
             a signalling resource.

        6.42.1.2.2. The SBS shall capable of communicating via any of the above
        channel types using:

          1. a single satellite path;

          2. diversity satellite paths.

        6.42.1.2.3. The SBS shall support the DCCH configurations as given in
        Air Interface.

        6.42.1.2.4. The SBS shall support the DCCH configurations through any
        channel pre-allocated to it by the SRMC.

6.42.1.3. SIGNALLING RESOURCE ALLOCATION PROCEDURES

        6.42.1.3.1. The SBS shall allocate an initial signalling resource,
        following receipt of the RACH. Subsequently:

          1. update the allocation when practical and required to optimise use
             of satellite spectrum and power resources in the signalling phase;

          2. if the allocated signalling resource allocation is not compatible
             with the allocation type needed for the traffic phase of the call,
             change the allocation to one compatible with the traffic phase of
             the call;

          3. change the allocation when required for link maintenance.

        6.42.1.3.2. The SBS shall select the initial signalling resource,
        compatible with the expected allocation type/penetration level
        requirement for the signalling phase based on:

          1. the reason(s) given by the UT for wanting to access the network;

          2. an estimate of the penetration level required based on the signal
             level of RACH as measured;

          3. the availability of satellite spectrum, equipment, and power
             resources for signalling.

        6.42.1.3.3. The SBS shall have the capability of allocating the initial
        signalling resource in the same spot beam as that on which the RACH was
        received.

        6.42.1.3.4. The SBS shall have update signalling resource allocations
        when a signalling resource of a different level of penetration is needed
        or can be allowed based on:

          1. the equipment characteristics of the UT;

          2. an estimate of the penetration level needed based onlink monitoring
             of the existing signalling resource;

          3. the availability of equipment, satellite spectrum and power
             resources for signalling.

6.42.1.4. CAPABILITIES FOR TRAFFIC RESOURCE ALLOCATION

        6.42.1.4.1. The IGF shall be capable of bi-directional communications
        for traffic between the UT and an external network through TCH.

        6.42.1.4.2. The SBS shall capable of communicating via TCH using:

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          1. a single satellite path

          2. diversity satellite paths.

     6.42.1.4.3. The SBS shall select a TCH corresponding to the applicable
     Z-Arc.

     6.42.1.4.4. The SBS shall be capable of supporting the TCH configurations
     as given in the Air Interface.

     6.42.1.4.5. The SBS shall support the TCH configurations through any
     channel pre-allocated by the SRMC.

     6.42.1.4.6. The SBS shall be capable of supporting a TCH for
     traffic/signaling only usage.

     6.42.1.4.7. The SBS shall provide the OAM capability to view current actual
     channel configuration as well as to change the channel configuration

     6.42.1.4.8. The IGF shall be capable of communicating with the UT for
     traffic resource allocation using the Air Interface Elementary Procedures
     and Structured Procedures.

6.42.1.5. TRAFFIC RESOURCE ALLOCATION PROCEDURES

     6.42.1.5.1. The requirements in this section for early and late assignment
     are subject to review as part of the development of the Air Interface
     structured procedures.

     6.42.1.5.2. According to the radio bearer capability required for the
call, the SBS shall be capable of:

          1. continuing to use the existing (signalling) resource in the traffic
             phase of the call;

          2. allocating a new resource for the traffic phase of the call
             immediately after the radio bearer capability required for the call
             has been determined (early assignment);

          3. allocating a new resource for the traffic phase of the call as soon
             as practicable prior to call connection (late assignment).

     6.42.1.5.3. The SBS shall be capable of:

          1. using early or late assignment if the penetration level required
             for the  radio bearer capability for the traffic phase of the call
             is the same as in the signalling phase;

          2. using late assignment if the penetration level required for the
             radio bearer capability for the traffic phase of the call is less
             than in the signalling phase. In such case the traffic resource
             allocation shall be made only after the penetration level
             associated with the radio bearer capability for the call is
             compatible with an estimate of the penetration level needed based
             on link monitoring of the existing signalling resource.

     6.42.1.5.4. The SBS shall allocate a new resource for the traffic phase of
     the call or support continued use of the existing resource according to:

          1. the radio bearer capability required for the traffic phase of the
             call

          2. the equipment characteristics of the UT

          3. the priority of the request for TCH resources

          4. the availability of satellite spectrum and power resources to
             support the required radio bearer capability for the traffic phase
             of the call.

     6.42.1.5.5. If the TCH can be allocated, the SBS shall:

          1. allow a limited time for the UT to take up the allocated TCH
             resources

          2. until such limited time has expired, keep both the TCH and the
             SDCCH resources open for the UT's use

          3. after such limited time if the TCH resources are not taken up,
             release the TCH resources for further use.

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     6.42.1.5.6. If the allocated TCH resource is successfully taken up by the
     UT, the SBS shall:

          1. release the signalling resource

          2. continue with the link maintenance that has been started in the
             signalling phase.

6.43. LINK MONITORING

6.43.1. DEDICATED CHANNELS

     6.43.1.1. The SBS shall have capability to perform link monitoring on each
     forward and return path of each dedicated channel allocation.

     6.43.1.2. The SBS shall have capability to measure the following on the
     return paths:

          1. Timing offset and frequency offset from reference time and
             frequency

          2. Received Signal Strength

          3. Received Signal Quality:

               a) Carrier/Noise ratio

               b) Frame Error Rate (FER) on the channels which have CRC on Layer
                  2 Frames.

     6.43.1.3. The SBS shall have capability to receive from the UT reports of
the following on forward paths:

          1. Received Signal Presence and Strength

          2. Received Signal Quality:

               a) Carrier/Noise ratio

               b) Frame Error Rate (FER) on those channels which have CRC on
                  Layer 2 Frames.

     6.43.1.4. The SBS shall have capability to instruct the UT on network
     requirements for link monitoring of forward direction dedicated channels as
     required in the Air Interface Documents.

     6.43.1.5. The accuracy of the SBS measurements of received dedicated
     channel signal strength and received dedicated channel signal quality shall
     be [TBD].

6.43.2. BCCH

     6.43.2.1. The SBS shall have capability to receive from UTs reports of the
     following about one or more BCCHs:

          1. Received Signal Presence and Strength

          2. Received Signal Quality:

               a) Carrier/Noise ratio

               b) Frame Error Rate (FER)

     6.43.2.2. The SBS shall have capability to instruct UTs individually during
     calls on which BCCHs to monitor.

6.43.3. RACH

     6.43.3.1 The IGF shall have capability to monitor the following for each
     RACH message received

          1. Timing offset and frequency offset from reference time and
             frequency

          2. Received Signal Strength

          3. Received Signal Quality: Carrier/Noise ratio

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     6.43.3.2. The accuracy of the SBS measurements of RACH received signal
     strength and received signal quality shall be [TBD].

6.44.  SECTION NOT USED

6.45.  SECTION NOT USED

6.46.  SECTION NOT USED

6.47.  POWER CONTROL

6.47.1. SAN AUTOMATIC POWER CONTROL

     6.47.1.1. The RFT shall have an automatic power control subsystem to
     compensate for path loss changes, on the SAN to satellite link, satellite
     receive antenna gain chances with satellite motion, and propagation loss
     changes on the SAN to satellite link. The signal level at the satellite
     C-band receive antenna output shall be controlled with respect to the
     value corresponding to the reference SAN EIRP value input by the SBS.

6.47.2. SAN EIRP CONTROL FOR TCH AND DCCH

     6.47.2.1. The SBS shall control the instantaneous (closed loop) value of
     SAN EIRP value provided to the RFT for each path of each individual
     (TCH/DCCH channel as follows

          1. At the start of each channel allocation and update once per minute,
             the SBS shall calculate a SAN EIRP correction from the spot beam
             reference value in accordance with satellite S-band antenna gain in
             the direction of the UT's position in the spot beam. The SBS shall
             utilise this correction factor to set and update corrected value
             of the Reference Maximum SAN EIRP limit and the Reference Initial
             SAN EIRP.

          2. The SBS shall set the initial SAN EIRP provided to the RFT at the
             start of each path allocation according to the Corrected Reference
             Initial SAN EIRP.

     6.47.2.2.  The SBS shall use closed loop SAN EIRP control for the duration
     of each path allocation.

     6.47.2.3.  The SBS shall use the Corrected Reference Maximum SAN EIRP as an
     upper limit on the SAN EIRP value provided to the RFT.

     6.47.2.4.  The SBS shall be capable of determining from UT reports the
     actual channel quality value in comparison with the Target Channel Quality
     value.

     6.47.2.5.  The SBS shall be able to estimate expected forward link channel
     quality based on forward link channel quality measurements [alone or
     configurably as a combination of forward and return link channel quality
     measurements].

     6.47.2.6.  The SBS shall continuously control SAN EIRP for each channel to
     the minimum value required to meet the Target Channel Quality value,
     subject to the time varying Corrected Reference Maximum SAN EIRP limits.

     6.47.2.7.  The SBS shall implement SAN EIRP control algorithms which take
     account of channel operational modes, number of paths (single or
     diversity), DTX or not, diversity modes, codec rate etc.

     6.47.2.8.  The SBS shall modify SAN EIRP at the transmit burst immediately
     following the receipt of measurement reports from the UT according to the
     appropriate algorithms.

     6.47.2.9.  The SBS shall modify SAN EIRP to the required value within a
     resolution of [0.5] dB.

     6.47.2.10. Up to [10] previous measurement reports shall be used to
     determine the current SBS EIRP.

     6.47.2.11. The SBS shall have the capability to increase SAN EIRP on SBS
     link monitoring (i.e. in the event of a sudden reduction in return link
     quality).

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     6.47.2.12. The SBS shall implement capability to configure the parameters
     of the control algorithms to enable system capacity versus performance to
     be optimised based on operational experience.

     6.47.2.13. The IGF shall implement the following configurable options:

          1. to control the SAN EIRPs for each path in unison or separately

          2. to estimate expected forward link channel quality based on forward
     link channel quality measurements alone or a combination of forward and
     return link channel quality measurements

          3. to suspend transmissions on a path if it becomes blocked.

6.47.3. SAN EIRP CONTROL FOR FORWARD CONTROL CHANNELS

     6.47.3.1. The SBS shall set and periodically adjust the SAN EIRP provided
     to the RFT for the following forward control channels:

          1. BCCH,

          2. PCH,

          3. AGCH.

     6.47.3.2. The HPN system shall set and periodically adjust the SAN EIRP
     provided to the RFT for the following forward control channels:

          1. BCCH/HP,

          2. SCH/HP,

          3. NCH/HP

     according to the Reference Open Loop SAN EIRP values specified by the SRMC.

6.47.4. UT EIRP CONTROL FOR TCH AND DCCH

     6.47.4.1. The SBS shall control the instantaneous value of UT EIRP for each
     path of each individual TCH/DCCH channel as follows:

          1. The SBS shall set a planned initial UT EIRP value at the start of
             each path allocation.

          2. The SBS shall use closed loop UT EIRP control for the duration of
             each path allocation.

          3. The SBS shall use the Maximum UT EIRP as an upper limit on the
             closed loop UT EIRP control.

     6.47.4.2. The SBS shall be capable of determining the actual channel
     quality value in comparison with the Target Channel Quality value.

     6.47.4.3. The SBS shall be able to estimate expected return link channel
     quality based on return link channel quality measurements alone or
     configurably as a combination of return and forward link channel quality
     measurements.

     6.47.4.4. The SBS shall continuously control UT EIRP for each satellite
     path of each TCH/DCCH channel to the minimum value required to meet the
     Target Channel Quality value, subject to the maximum UT EIRP limit.

     6.47.4.5. The SBS shall implement UT EIRP control algorithms which take
     account of channel operational modes, number of paths (single or
     diversity), DTX or not, diversity modes, codec rate, etc. and adapt to
     ensure that the EIRP is the minimum appropriate to the channel operational
     mode.

     6.47.4.6. The SBS shall instruct the UT to modify its EIRP whenever the
     actual channel quality, as measured in the SBS, differs from the Target
     Channel Quality value by an amount equivalent to 1dB or more in received
     SNR. These instructions shall be carried in the SACCH at a rate up to once
     per SACCH frame.

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        6.47.4.7. Channel quality estimates shall be made at the SACCH frame
        rate based on received TCH and SACCH bursts received in the previous
        SACCH frame. Adjustment instructions shall be made to the UT in the next
        forward link SACCH after the adjustment is determined.

        6.47.4.8. A minimum of 1 and a maximum of [10] previous channel quality
        estimates shall be used to determine the current UT EIRP.

        6.47.4.9. The NMS shall implement the capability to configure the
        parameters of the control algorithms of the SBS to enable system
        capacity versus performance to be optimised based on operational
        experience.

        6.47.4.10. The IFG shall implement the following configurable options:

             1. to control the UT EIRPs for each path in unison or separately

             2. to estimate expected return link channel quality based on return
                link channel quality measurements alone or a combination of
                return and forward link channel quality measurements.

        6.47.4.11. The SBS shall control the UT EIRP using air interface
        procedures.

6.47.5. RACH

        6.47.5.1. The SBS shall transmit in the BCCH a parameter provided by the
        NMS as an operator configurable parameter to control the UT EIRP.

6.47.6. ACK/HP

        6.47.6.1. The SBS shall transmit in the BCCH a parameter provided by the
        NMS as an operator configurable parameter for the control of the UT EIRP
        during acknowledgement to the HPN.

6.48. SAN COVERAGE AND MANAGEMENT

6.48.1. SAN COVERAGE ACCESS

6.48.1.1. GENERAL

        6.48.1.1.1. The SBS shall be capable of sharing a satellite with other
        SANs.

        6.48.1.1.2. The SBS shall not share spot beam control channels (SCH,
        BCCH, RACH, PCH, or AGCH) simultaneously with other SANs.

        6.48.1.1.3. The SBS shall be capable of acquiring and relinquishing
        control of common channels, to sequentially share a spot beam with
        another SAN, following a plan provided by the SRMC.

        6.48.1.1.4. The SBS shall be able to use different traffic channels
        including those using the same frequency simultaneously with other SBSs
        in the same spot beam as configured by the SRMC.

        6.48.1.1.5. The SRMC shall supply the BCCH BSAN list that will indicate
        to the UTs which SANs have been allocated traffic channels in any beam.

        6.48.1.1.6. The SAN, when allocated traffic channels on a spot beam
        whose control channels are provided by another SAN, need not use those
        channels for the initial assignment, but shall be able to use them for
        subsequent diversity or handover.

6.48.1.2. CALL SET-UP WHEN MULTIPLE SANS SHARE ACCESS TO A SPOT BEAM FOR
          TCH/DCCH

        6.48.1.2.1. The SAN processing the control channels (CCCH control SAN)
        for the spot beam shall process the call setup as follows:

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             1. The CCCH control SAN shall assume that the UT will indicate the
                SAN required for the radio connection (the Radio Connection SAN)
                via the Initial Message. (Not covered in Air Interface Version
                3.0).

             2. The CCCH control SAN shall assume that the UT will indicate its
                currently registered SAN via the Initial Message.

        6.48.1.2.2. Following receipt of the Initial Message, the CCCH control
        SAN shall

             1. Set up a signalling connection to the MSSC of the registered
                SAN.

             2. As soon as is practicable, perform a SAN-to-SAN handover to the
                Radio Connection SAN if this is not the same as the CCCH control
                SAN.

6.48.2. COVERAGE PLANNING

6.48.2.1. IGF ACCESS PLANNING

        6.48.2.1.1. The SRMC shall provide a capability (algorithm) to generate
        plans specifying which SANs provide the following services in each spot
        beam of each satellite as a function of time:

             1. TCH/DCCH

             2. CCCH

             3. HPN.

6.48.2.2. TCH/DCCH SERVICE

        6.48.2.2.1. The SRMC shall provide an algorithm to determine the Nominal
        SAN for each point on the ground by dividing the earth's surface into
        ground cells. The SRMC shall for each ground cell identify a Nominal SAN
        based on best average radio connectivity via the constellation of
        satellites.

        6.48.2.2.2. The SRMC shall also identify which SANs enable diversity
        connections to each ground cell via any pair of satellites mutually
        visible to the SAN and a UT at the ground cell.

        6.48.2.2.3. The SRMC shall implement an algorithm which supports a
        configurable combination of the following:

             1. One or more SANs shall always be able to provide TCH/DCCH
                service in every spot beam of every satellite.

             2. The Nominal SAN for each ground cell shall be able to provide
                TCH/DCCH service in each spot beam of each satellite which
                provides coverage of the ground cell, wherever there exist any
                satellites which have mutual visibility of the SAN and the UT.

             3. Each SAN able to provide diversity connection to a ground cell
                shall be able to provide TCH/DCCH service in each spot beam of
                each satellite covering the ground cell.

             4. Before TCH/DCCH service is transferred from one SAN to another,
                there shall be a transitional period during which both SANs are
                capable of simultaneously providing TCH/DCCH service. The
                transitional periods shall be of the order of the time taken for
                the coverage to change by the width of a beam.

             5. TCH/DCCH service shall be provided through any SAN with which
                any UT may be registered, wherever there exist any satellites
                which have mutual visibility of the SAN and the UT.

             6. The operator shall be able to specify points on the ground for
                which TCH/DCCH service is to be provided by one or more SANs.

             7. In the event of a sun outage, service shall be provided by
                alternative satellites and SANs, wherever possible, subject to
                the potential performance of the satellite constellation and the
                SANs.

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6.48.2.3. CCCH SERVICE

     6.48.2.3.1.  The SRMC shall implement an algorithm which supports a
     configurable combination of the following:

          1.  Each spot beam of each satellite shall consist of one or more
              radio cells. For each radio cell one SAN shall transmit the BCCH,
              PCH and AGCH and receive one or two RACH.

          2.  Selection of the SAN to provide CCCH service in each radio cell
              shall take account of the need for all SANs providing TCH/DCCH
              service to share those control channels.

6.48.2.4.  HPN SERVICE

     6.48.2.4.1.  Coverage functions for HPN are covered in Sections 6.52.5,
     6.52.8, and 6.52.9.

6.49.  SATELLITE EIRP MANAGEMENT

6.49.1.  SATELLITE RF POWER MANAGEMENT PARAMETERS

6.49.1.1.  GENERAL

     6.49.1.1.1.  The SRMC shall determine the following time varying Forward
     Direction Satellite RF Power Management Parameters according to operator
     configurable rules as defined below.

6.49.1.2.  FORWARD DIRECTION TCH/DCCH CHANNELS

          1.  Maximum User Link Margin versus Elevation profile

          2.  Initial User Link Margin versus elevation profile

          3.  Satellite Load Management Criteria (TBD for planned load shedding
              on highly loaded satellites)

     independently for each combination of:

          1.  Service Type including all combinations of

              a)  radio bearer capability (including channel mode) and

              b)  UT type

          1.  satellite and

          2.  SAN

6.49.1.3.  BCCH/SCH/PCH/AGCH CHANNELS

     6.49.1.3.1.  Nominal User Link Margin versus Elevation profiles
     independently for each:

          1.  channel type (BCCH/SCH/PCH/AGCH)

          2.  satellite and

          3.  SAN

6.49.1.4.  BCCH/HP, SCH/HP, NCH/HP

     6.49.1.4.1.  Nominal User Link Margin versus Elevation profiles
independently for each:

          1.  channel type (BCCH/HP, SCH/HP, NCH/HP)

          2.  satellite and

          3.  SAN

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6.49.1.5.  SBS AND HPN CONTROL PARAMETERS AND NMS/SAN-OSS MONITORING PARAMETERS

6.49.1.5.1.  GENERAL

     6.49.1.5.1.1.  The SRMC shall utilise the Satellite Power Management
     Parameters to determine the following time varying SBS and HPN Control
     Parameters in Sections 6.49.1.5.2, 6.49.1.5.3, 6.49.1.5.4, and 6.49.1.5.5.

6.49.1.5.2.  FORWARD DIRECTION TCH AND DCCH CHANNELS (SBS)

          1.  Reference Maximum SAN EIRP limit (per carrier) by spot beam by
              service type.

          2.  Reference Initial SAN EIRP limit (per carrier) by spot beam by
              service type

          3.  Satellite Load Management Criteria

          4.  Target signal quality value for forward path power control.

6.49.1.5.3.  FORWARD DIRECTION CCCH CHANNELS (SBS)

          1.  Reference Open Loop SAN EIRP (per carrier) by spot beam

6.49.1.5.4.  FORWARD DIRECTION HPN CHANNELS (HPN)

          1.  Reference Open Loop SAN EIRP (per carrier) by spot beam

6.49.1.5.5.  SATELLITE EIRP MONITORING PARAMETERS

          1.  Maximum weighted aggregate forward direction SAN EIRP by satellite
              corresponding to the planned satellite EIRP (for the NMS),

          2.  SAN EIRP weighting factors by spot beam for calculation of
              weighted aggregate SAN EIRP according to differences in the
              satellite transponder gain in each beam (for the SAN-OSS).

6.49.1.5.6.  NMC CONFIGURED PARAMETERS

     6.49.1.5.6.1.  The NMC shall provide for operational configuration of

          1.  Maximum UT transmit power level by service type (SBS)

          2.  Target signal quality value for return path power control (SBS)

          3.  Satellite beam gain profile characteristics (SBS)

          4.  Beam transponder gain values (SRMC)

6.49.1.6.  SATELLITE RF POWER PLANNING

     6.49.1.6.1.  Based on satellite position, SAN location, predicted traffic
     loading characteristics, and individual satellite characteristics, the SRMC
     shall allocate satellite forward RF power to the SANs for use in a specific
     satellite by the SBS and HPN.

     6.49.1.6.2.  The SRMC shall apportion the total available satellite
     forwarded RF power between each type of forward direction CCCH/HPN and
     TCH/DCCH channels.

     6.49.1.6.3.  The SRMC shall apportion the satellite forward RF power for
     TCH/DCCH amongst the different service types.

     6.49.1.6.4.  The SRMC shall provide capabilities to plan the use of
     satellite RF power between BCCH/SCH and HPN to provide a constant satellite
     load for each satellite (nominally 20% of the power of each satellite but
     adjustable around this figure) with multiple simultaneous bursts of BCCH
     interleaved with one or more bursts of HPN.

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6.49.2. SATELLITE TRANSPONDER GAIN VALUE ENTRY AND USAGE

     6.49.2.1. The NMC shall provide capability for an operator to enter values
     of forward and return direction transponder gain for each spot beam of each
     satellite.

     6.49.2.2. The SRMC shall use the forward transponder gain parameters in the
     calculation of Reference SAN EIRP values.

6.49.3. RULES FOR GENERATION OF SATELLITE POWER MANAGEMENT PARAMETERS

     6.49.3.1. Nominal Capacity is the number of user channels which can be
     supported by the available satellite RF power with nominal link margin and
     without use of Satellite Load Management Criteria.

     6.49.3.2. Predicted Load is the number of user channels expected to be
     needed based on traffic predictions.

     6.49.3.3. The SRMC shall generate the Satellite RF Power Management
     parameters as a function of time according to available RF satellite power
     and Predicted Load requirements according to the following rules:

     6.49.3.4. The link margin values shall be  increased or decreased according
     to one of three link margin versus elevation profile tables. (F/R)

     6.49.5. Predicted Load equal to Nominal Capacity

          1. The Link Margin values shall be set at nominal values.

          2. The Satellite Load Management Criteria are nominal i.e. no
             satellite preference constraints.

     6.49.3.6. Predicted Load less than Nominal Capacity

          1. The Link Margin values shall be increased above nominal.

          2. The Satellite Load Management Criteria are nominal i.e. no
             satellite preference constraints.

     6.49.3.7. Predicted Load greater than Nominal Capacity

          1. The Link Margin values shall be set at nominal values.

          2. The Satellite Load Management Criteria are set to save EIRP on the
             most highly loaded satellites.

     6.49.3.8. Predicted Load much greater than Nominal Capacity

          1. The Link Margin values shall be reduced below nominal values.

          2. The Satellite Load Management Criteria are set to save EIRP on the
             most highly loaded satellites.

     6.49.3.9. The SRMC shall generate the Power Management parameters up to 24
     hour in advance of when they are to be used.

     6.49.3.10. Satellite Load Management Criteria shall include:

          1. offloading of traffic at low elevations to adjacent less highly
             loaded satellites

          2. implementation of diversity power saving mode

          3. reduction in use of diversity.

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6.49.4. DETERMINATION OF SBS AND HPN AND SAN-OSS CONTROL PARAMETERS

6.49.4.1. REFERENCE SAN EIRP (PER CARRIER) VALUES

6.49.4.1.1. FORWARD DIRECTION TCH AND DCCH (SBS)

     6.49.4.1.1.1. The SRMC shall calculate the:

          1. Reference Maximum SAN EIRP (per channel) limit by spot beam by
             service type

          2. Reference Initial SAN EIRP (per channel) limit by spot beam by
             service type corresponding to the:

               a) Maximum User Link Margin vs. Elevation profile by service type

               b) Initial User Link Margin vs. Elevation profile by service type

     using the parameters and to the accuracy defined in Section 6.49.4.3,
     Accuracy of Reference SAN EIRP Calculation.

6.49.4.1.2. BCCH/SCH/PCH/AGCH (SBS)

     6.49.4.1.2.1. The SRMC shall calculate the

          1. Reference Open loop SAN EIRP by spot beam by channel type
             corresponding to the:

               a) Nominal User Link margin vs. Elevation profile by channel type

     using the parameters defined in Section 6.49.4.3, Accuracy of Reference SAN
     EIRP Calculation.

6.49.4.1.3. BCCH/HP, SCH/HP, NCH/HP (HPN)

     6.49.4.1.3.1. The SRMC shall calculate the

          1. Reference Open Loop SAN EIRP by spot beam by channel type
             corresponding to the:

               a) Nominal User Link margin vs. Elevation profile by channel type

     using the parameters defined in Section 6.49.4.3, Accuracy of Reference SAN
     EIRP Calculation.

6.49.4.2. PARAMETERS FOR REFERENCE MAXIMUM AND INITIAL SAN EIRP CALCULATION

     6.49.4.2.1. The following parameters shall be used:

          1 Mobile-link space spreading (1/R(squared)) loss, satellite to UT, by
            spot beam

          2 Mobile-link spot-beam transmit gain:

               a) at the centre of the spot beam coverage (TCH/DCCH)

               b) at the edge of coverage of the spot beam (BCCH/SCH/PCH/AGCH
                  and BCCH/HP SCH/HP and NCH/HP)

          3 satellite forward-link (C to S band) transponder gain in each
\           transponder channel

          4 Nominal value of User Terminal G/T

          5 Planned Maximum Link Margin and Planned Initial Link Margin
            corresponding to the elevation at the centre of the spot beam

          6 Nominal feeder-link spreading (1/R(squared)) loss, assuming that the
            SAN is at the subsatellite point of the satellite.

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6.49.4.3.  ACCURACY OF REFERENCE SAN EIRP CALCULATION

     6.49.4.3.1.  The SRMC shall determine the reference SAN EIRP values with a
     maximum calculation error of [(plus or minus)0.1] dB from the value needed
     for the planned link margin excluding the errors due to source data
     accuracy.

6.49.5.  SATELLITE EIRP MONITORING

6.49.5.1. SAN/SATELLITE EIRP CALCULATIONS

     6.49.5.1.1.  The SBS shall calculate the actual aggregate SBS transmit EIRP
     relative to the reference SAN EIRP by satellite spot beam (including
     allowance for voice activity factor) and shall transfer the data to the
     SAN-OSS.

     6.49.5.1.2.  The SAN-OSS shall calculate the actual weighted aggregate SAN
     transmit EIRP in total by satellite corresponding to the actual traffic
     from the data for each spot beam provided by the SBS, as a performance data
     for long term planning purposes.

     6.49.5.1.3.  The NMS shall provide calculation of the actual total
     satellite S-band RF power of each satellite.

6.49.6.  SATELLITE RF POWER OVERLOAD MANAGEMENT

     6.49.6.1.  The NMS shall implement capabilities for RF power monitoring in
     the event that satellite RF power demand exceeds predicted requirements.

     6.49.6.2.  The NMS shall have the capability to determine from PCS
     telemetry data, whenever applicable:

          1.  estimates of the total satellite S-band RF power consumption for
              each satellite.

          2.  whether the satellite is being driven into overload.

     6.49.6.3.  The NMS shall collect the monitored data from the SAN, and shall
     generate an alarm that signifies when an overload condition starts and ends
     for each satellite in total and by SAN.

     6.49.6.4.  In the event of detection of overload of any satellite, the SRMC
     shall take into consideration for the next operational plan.

     6.49.6.5.  In the event of detection of overload of any satellite, the NMS
     shall have the capability [for the operator] to reconfigure the SBS to
     perform one or more of the following:

          1.  Implement the diversity power saving mode,

          2.  Decrease the diversity ratio in steps until no diversity occurs,

          3.  Stop the establishment of new calls.

6.50.  SPECTRUM MANAGEMENT

6.50.1.  FUNCTIONAL REQUIREMENTS FOR THE GENERATION AND DISTRIBUTION OF SRMC
DATA

     6.50.1.1.  The functional requirements for the SRMC shall be:

          1.  Generation of BTFPs and assignment of them to SANs.

          2.  Generation of Satellite channelisation plans (i.e., Transponder
              plans) and assignment of them to SANs.

          3.  Generation of frequency related parameter contents for system
              information broadcasting.

     6.50.1.2.  The NMS shall:

          1.  Establish and maintain a database of BTFPs and Satellite
              Channelisation Plans in advance of the time they are needed and a
              log of which data has been sent and acknowledged.

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          2. Communicate the data to the SANs and the ICO provided Central PCS.

          3. Manage the data flows to ensure that the data is synchronised
             between NMS, SANs and the Central PCS.

          4. Generate alarms and provide facilities for recovery in the event
             that the data is not sent and acknowledged successfully.

6.50.2. PERFORMANCE REQUIREMENTS

6.50.2.1. GENERAL

     6.50.2.1.1. The capabilities of the SRMC shall be demonstrated by a
     combination of means of design analysis, simulation and test as defined in
     the following sections.

     6.50.2.1.2. The requirements shall be met for test purposes.

6.50.2.2. TRAFFIC LEVELS VERSUS SPECTRUM USAGE

     6.50.2.2.1. The SRMC shall be capable of generating plans for carrying the
     traffic levels within the aggregate amounts of spectrum, available in the
     different co-ordination regions, as listed in Table 6-6.

              6.50.2.2.2. TABLE 6-6 TRAFFIC LEVEL VERSUS SPECTRUM
                          ---------------------------------------

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
           TRAFFIC LEVEL                             AGGREGATE MOBILE LINK SPECTRUM                AGGREGATE FEEDER  LINK
  AGGREGATE BUSY HOUR ERLANGS OF                     PER DIRECTION OF TRANSMISSION                       SPECTRUM
HANDHELD VOICE OR EQUIVALENT TRAFFIC                             (MHZ)                          PER DIRECTION OF TRANSMISSION
         (PERCENT OF TOTAL)                                                                       (MHZ) IN EACH POLARISATON
-----------------------------------------------------------------------------------------------------------------------------
<S>                                                 <C>                                        <C>
                 100                                             [10]                                       [50]
-----------------------------------------------------------------------------------------------------------------------------

                  75                                              [8]                                       [42]
-----------------------------------------------------------------------------------------------------------------------------
                  50                                              [6]                                       [34]
-----------------------------------------------------------------------------------------------------------------------------
                  25                                              [4]                                       [26]
-----------------------------------------------------------------------------------------------------------------------------
  Aggregate Busy Hour                              Aggregate Mobile Link Spectrum
Erlangs is as defined in Annex 1                      is defined as sum of the
                                                    spectrum in each usable sub-
                                                    band in a co-ordination region
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>

     Notes on Table 6-6:

     6.50.2.2.3. Note 1       Traffic level is defined in terms of requirements
     for supporting communications to handheld voice terminals carrying voice or
     other services utilising one TDMA slot and including all requirements for
     signalling and HPN. The impact of multiple services is defined elsewhere.

     6.50.2.2.4. Note 2       The specified Traffic levels are to be carried
     subject to simultaneous availability of the Aggregate Mobile Link Spectrum
     and Aggregate Feeder Link Spectrum.

     6.50.2.2.5. The plans generated by the SRMC shall be capable of
     simultaneously providing grade of service better than 10% worst case, in
     the sub cell (delay class of a spot beam) at 100% loading (4500 channels +
     40% diversity)

     6.50.2.2.6. The SRMC-generated plans shall be capable of carrying the
     specified traffic levels:

          1. with traffic distributions around the globe as defined in
             6.50.3.1

          2. with diurnal traffic variations as defined in 6.50.3.2

          3. where the mobile link spectrum used may be

               a) different in different co-ordination regions as indicated in
                  Figure 6-2 and Table 6-7

               b) different in any co-ordination regions of similar area

          4. where the mobile link spectrum in each co-ordination region

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          a) is in sub-bands as specified in Figure 6-2 and Table 6-7

          b) is in any number of sub-bands up to 5, the smallest being 1MHz, or

          c) is in a contiguous block

6.50.2.2.7. These requirements shall be met for test purposes:

     1. for all possible combination of satellite positions in the baseline
        satellite constellation

     2. while providing diversity path allocations for at least 80% of calls for
        UTs which are in coverage of more than one satellite.

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                        [CO-ORDINATION REGIONS DIAGRAM]

6.50.2.2.8. FIGURE 6-2 CO-ORDINATION REGIONS

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       6.50.2.2.9. TABLE 6-7 FREQUENCY SUB-BANDS IN CO-ORDINATION REGIONS

<TABLE>
<CAPTION>
Return                                            Forward
S-band    FCR     FCR     FCR     FCR             S-band    FCR     FCR     FCR     FCR
MHz        1       2       3       4              MHz        1       2       3       4
<S>      <C>     <C>     <C>     <C>              <C>      <C>     <C>     <C>     <C>
1985       X                       X              2170       X                       X
1986       X       X               X              2171       X       X               X
1987       X               X       X              2172       X               X       X
1988                                              2173
1989               X               X              2174               X               X
1990                               X              2175                               X
1991                       X       X              2176                       X       X
1992                       X       X              2177                       X       X
1993               X       X                      2178               X       X
1994                               X              2179                               X
1995                               X              2180                               X
1996               X               X              2181               X               X
1997                                              2182
1998               X       X                      2183               X       X
1999                                              2184
2000               X                              2185               X
2001               X                              2186               X
2002                       X                      2187                       X
2003                       X                      2188                       X
2004                                              2189
2005                                              2190
2006                                              2191
2007               X       X                      2192               X       X
2008                                              2193
2009       X               X                      2194       X               X
2010       X                                      2195       X
2011       X       X                              2196       X       X
2012       X       X                              2197       X       X
2013       X               X                      2198       X               X
2014       X                                      2199       X
2015       X                                      2200       X
</TABLE>

Note: In this example the forward and return allocation patterns are shown to be
the same - this will not be the case in reality. Table 6-7 is provided just as
an example/test case. The frequency planning algorithm must treat the forward
and return directions separately and independently.

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6.50.2.3. IMPACT OF MULTIPLE SERVICES

     6.50.2.3.1. Separate pools of timeslots and frequencies shall be provided
     for

          1. HPN

          2. MP signalling channels

          3. MP dedicated channels

          4. NP dedicated channels

6.50.2.4. SPECTRUM RESOURCES TO BE MANAGED

     6.50.2.4.1. The SRMC shall generate plans to manage the following satellite
     spectrum resources on a per channel basis, for mobile and feeder links, in
     both the forward and return directions.

     6.50.2.4.2. The SRMC shall generate plans for frequency and TDMA timeslot
     resources for the following carrier types:

          1. TCH/SDCCH

          2. BCCH/SCH

          3. PCH/AGCH

          4. RACH

          5. BCCH/HP

          6. SCH/HP

          7. ACK/HP

          8. NCH/HP

     6.50.2.4.3. The SBS and HPNS shall implement these plans according to
     their equipment resources.

6.50.2.5. GENERATION OF TIME VARYING FREQUENCY PLANS FOR ICO SATELLITES.

     6.50.2.5.1. The SRMC shall generate time varying frequency plans:

          1. for all satellites in the ICO satellite constellation;

          2. which provide access via SANs to all spot beams of all satellites;

          3. compatible with the satellite channelisation;

          4. providing resources to support all types of traffic, DCCH, common
             signalling and HPN;

          5. separately for each type of traffic, DCCH, common channel
             signalling and HPN;

          6. providing capacity according to traffic predictions by traffic type
             by SAN for each spot beam of each satellite;

          7. which are co-ordinated between satellites to allow the near
             instantaneous reuse of frequencies to be minimised both intra and
             inter-satellite;

          8. which allow the grade-of-service in each spot beam to be maximised
             whenever spare spectrum is available;

          9. which utilise all transponder filters available to provide the
             maximum grade-of service in each spot beam of each satellite;

         10. in advance of the time that they are required;

         11. subject to the spectrum allocation constraints;

         12. subject to the interference management requirements;

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          13.  which change slowly to minimise the impact on handovers;

          14.  which change slowly and incrementally without interruption;

          15.  which have a granularity of one TDMA carrier.

6.50.2.6. GENERATION OF TIME VARYING TRANSPONDER PLANS FOR EACH ICO SATELLITE

     6.50.2.6.1.  The SRMC shall generate time varying satellite transponder
     plans:

          1.   for all satellites in the ICO satellite constellation;

          2.   which encompass the carrier frequencies used in the frequency
               plans;

          3.   in advance of the time that they are required;

          4.   which have a granularity of one channelisation filter.

6.50.2.7. DISTRIBUTION OF TIME VARYING TRANSPONDER PLANS TO ICO SATELLITES

     6.50.2.7.1.  The NMS shall deliver transponder plans to the Central PCS
     so that it can upload them:

          1.   to all satellites in the ICO constellation;

          2.   in advance of the time required;

          3.   such that the satellite transponder allocations on the satellites
               are synchronised to the planned allocations [90 minutes].

6.50.2.8. ASSIGNMENT OF TIME VARYING POOLS OF FREQUENCIES AND TIMESLOTS TO SANS

     6.50.2.8.1.  The SRMC plans shall assign time varying pools of
     frequencies and timeslots:

          1.   to all SANs;

          2.   for all spot beams and all satellites, planned to be accessed by
               each SAN;

          3.   according to the planned traffic requirements of each SAN for
               each spot beam of each satellite.

6.50.2.9. DISTRIBUTION OF TIME VARYING POOLS OF FREQUENCIES AND TIMESLOTS TO
          SANS

     6.50.2.9.1.     The NMS via the DCN and SAN-OSS shall distribute pools of
     frequencies and timeslots to each SAN:

          1.   in advance of the time required;

          2.   such that the pools of frequencies known to each SAN are
               synchronised to the plans.

6.50.2.10.  ON DEMAND ALLOCATION BY SBSS OF TIMESLOTS FROM TIME VARYING POOLS

6.50.2.10.1.  SBS DEDICATED CHANNEL ALLOCATIONS

     6.50.2.10.1.1.  The SBS shall allocate resources from pools of frequencies
     and timeslots at each SAN on demand according to requirements for use in
     communications sessions for the signalling phase and traffic phase.

     6.50.2.10.1.2.  The SBS shall return resources to the pools when they are
     no longer in use so that they are available for further use.

     6.50.2.10.1.3.  Call setup allocations shall be processed with high
     priority relative to handovers and diversity changes.

     6.50.2.10.1.4.  The SBS shall change, in real-time, the resources
     allocated to each UT for call maintenance.

     6.50.2.10.1.5.  The SBS shall, subject to the resources allocated to it,
     maintain an acceptable grade-of-service and continue existing calls with an
     acceptable success probability.

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     6.50.2.10.1.6.  The SBS shall prioritise use of resources in the following
     order:

          1.   to maintain existing calls through provision of handovers;

          2.   to start new calls;

          3.   to provide diversity allocations.

     6.50.2.10.1.7.  Subject to the above priorities, the SBS shall provide
     diversity path allocations to all UTs in sight of two or more satellite
     when there are a sufficient number of resources available.

     6.50.2.10.1.8.  The SBS shall rotate resources to minimise near
     instantaneous frequency reuse amongst the resources available to each SAN.

     6.50.2.10.1.9.  The SBS shall have capability to change resource allocation
     for each communications session to take account of:

          1.   handover within a delay class from one frequency to a different
               frequency;

          2.   handover from delay class to delay class within a spot beam;

          3.   handover from spot beam to spot beam on the same satellite;

          4.   handover from a spot beam on one satellite to a spot beam on
               different, diversity, satellite;

          5.   handover from SAN to SAN;

          6.   diversity addition;

          7.   diversity removal.

     6.50.2.10.1.10.  The SBS shall allocate resources for handover so that
     they are used for the minimum practicable overlap time and are released
     as soon as communication is successfully established on the new channel.

     6.50.2.10.1.11.  The SBS shall assess the resources available for each
     handover and shall give priority for handovers to be make before break
     allowing a reasonable time for such resources to become available for such
     purpose before implementing the handover using break before make.

     6.50.2.10.1.12.  The SBS shall perform a frequency handover when a
     frequency resource is planned to become unavailable.

     6.50.2.10.1.13.  The SBS shall perform handovers when propagation delays
     reach specific time delay arc thresholds.

     6.50.2.10.1.14.  The SBS shall perform intra-satellite spot-beam handovers
     based on a the following information where individual parameters have
     configurable thresholds:

          1.   UT predicted to move to a new spot-beam coverage;

          2.   current spot-beam load factor at or above threshold;

          3.   signal quality measurements in old and new spot beams.

     6.50.2.10.1.15.  The SBS shall perform inter-satellite handovers based on
     of the following information where individual parameters have configurable
     thresholds:

          1.   signal quality measurements of channels on both satellites;

          2.   satellite(s) elevation angle(s);

          3.   satellite(s) load factor(s).

     6.50.2.10.1.16.  The SBS shall perform SAN to SAN handovers based on of
     the following information where individual parameters have configurable
     thresholds:

          1.   insufficient resources available at current SAN to maintain call;

          2.   signal quality measurements of satellites visible to the UT.

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     6.50.2.10.1.17. The SBS shall perform diversity addition based on the
     following information where individual parameters have configurable
     thresholds:

          1. signal quality measurement reports of satellites visible to the UT;

          2. elevation and azimuth of satellites visible to the UT.

     6.50.2.10.1.18. The SBS shall perform diversity removal based on the
     following information where individual parameters have configurable
     thresholds:

          1. signal quality measurement reports of satellites visible to the UT;

          2. elevation and azimuth of satellites visible to the UT.

     6.50.2.10.1.19. The SBS shall have the capability to, whenever possible,
     assign the same TDMA timeslots post-handover as were used pre-handover for
     each call.

     6.50.2.10.1.20. The SBS shall have the capability to bar dedicated channel
     frequencies dependent upon the service area of the UT in accordance with a
     table which indicates for each service area the frequencies which are not
     permitted.

6.50.2.10.2. COMMON SIGNALLING CHANNELS

     6.50.2.10.2.1. the SRMC shall generate frequency and timeslot plans for
     common signalling channels i.e. for BCCH, RACH, PCH and AGCH.

     6.50.2.10.2.2. The SBS shall operate according to the plan provided by the
     SRMC.

6.50.2.11. QUANTITATIVE CONSTRAINTS ON FREQUENCY PLANS

     6.50.2.11.1. The plans generated by the SRMC shall achieve the following:

     6.50.2.11.2. Frequency reuse beams shall be separated by a spacing greater
     than or equal to the spacing required for a 4 cell reuse pattern.

     6.50.2.11.3. The IGF shall implement a frequency planning algorithm which
     minimises the maximum number of reuses of any one frequency:

          1. within the satellite field of view to 0(degrees) elevation in the
             return direction, and

          2. for all beams of every satellite covering each UT's position for
             the forward direction.

     6.50.2.11.4. The number of satellite filters to be used shall be 490 when
     50 MHz of feeder link is available and pro rata for smaller amounts of
     feeder link.

6.50.2.12. SPECTRUM ALLOCATION CONSTRAINTS

     6.50.2.12.1. The SRMC shall implement, in the frequency planning
     algorithms, capability to take account of the following constraints on the
     use of the mobile link and feeder link bands:

          1. band sharing with other satellites;

          2. band sharing with terrestrial systems;

          3. non-contiguous allocations to ICO;

          4. allocations which are exclusive to ICO or shared and can produce
             potential interference to or from ICO [in certain azimuth/elevation
             ranges];

          5. different allocations between different regions;

          6. allocation constraints evolving over the lifetime of the system;

          7. Tx/Rx frequencies need not have a fixed offset from one to another;

          8. maintain continuity of spectrum allocation whenever possible.

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6.50.2.13. SPECTRUM MANAGEMENT ALGORITHM FLEXIBILITY

     6.50.2.13.1. The SRMC shall be capable of implementing any possible
     realistically implementable methods for planning the use of frequencies and
     allocating radio paths for calls which enable the spectrum efficiency to be
     maximised subject only to fundamental limitations of satellite antenna
     performance/isolation, satellite channelisation, and acceptable levels of
     interference. For example, when spectrum efficiency is at a premium due to
     traffic pressure, each SAN shall be allocated the minimum spectrum resource
     required to provide each service at the required quality, with any unused
     resources available for use by other SANs.

     6.50.2.13.2. Within limits imposed by the non-linear nature of the RF
     channel, the SRMC planning algorithms shall provide capability to trade-off
     spectrum efficiency vs. link quality i.e.

          1.  to enable excess spectrum to be used to give improved channel
              performance through reducing intra-system interference;

          2.  to accommodate extra traffic in limited spectrum by accepting
              reductions in channel performance below nominal due to additional
              intra-system interference.

6.50.3. SPECTRUM MANAGEMENT REFERENCE TRAFFIC DISTRIBUTION

6.60.3.1. TABLE 6-8 REFERENCE TRAFFIC DISTRIBUTION (NUMERICAL)

<TABLE>
<S>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>
   0      0      0      0      0      0      0      0      0      0      0      0      0      0      0      0      0      0      0
   0   0.05   0.13   0.13   0.14   0.14   0.14   0.14      0      0      0      0   0.63   0.67   1.28   0.85      0   0.09   0.09
   0   0.03   0.01   0.03   0.07   0.07   0.18      0      0   0.09   0.15   0.4    1.05   1.65   1.72   1.99   2.16   1.21   0.51
   0   0.02   0.03   0.79   2.93   2.3    0.54   0.12   0.05   0.06   0.14   1.19   2.06   3.54   2.94   2.1    3.12   0.08   0.53
0.03   0.03   0.03   0.1    0.61   2.13   0.62   0.62   0.06   0.06   0.1    0.92   3.38   1.69   1      1.05   4.87   1.71   1.45
0.09   0.06   0.03   0.12   0.08   0.37   1.87   1.88   0.04   0.03   0.17   0.53   0.51   0.11   0.69   0.06   0.42   0.59   1.35
0.03   0.03   0.03      0   0.09   0.09   0.87   0.54   1.22   0.84   0.03      0   0.28   0.23   0.66   0.09   0.06   0.09   0.07
   0      0      0      0      0   0.03   0.06   0.29   3.56   0.06   0.03   0.03   0.25   1.09   1.2    0.15   0.03   0.03   0.07
   0      0      0      0      0      0   0.03   0.76   0.59   0.06   0.03   0.03   0.03   1.4    0.03   0.03      0      0      0
0.06      0      0      0      0      0   0.03   0.06   0.06   0.03      0      0   0.03   0.03   0.03      0      0      0      0
0.06      0      0      0      0      0   0.03   0.03   0.03      0      0      0      0      0      0      0      0      0      0
   0      0      0      0      0      0      0      0      0      0      0      0      0      0      0      0      0      0      0
</TABLE>

<TABLE>
<S>    <C>    <C>    <C>    <C>
   0      0      0      0      0
0.09   0.09   0.09   0.09   0.09
1.84   0.86      0      0      0
2.27   2.52   0.12      0      0
2.33   0.91   0.18   0.09   0.06
1.06   0.86   0.12   0.03   0.03
0.86   0.33   0.08   0.06      0
0.1    0.25   0.24   0.1    0.09
0.07   0.04   0.05   0.1    0.12
0.03   0.05   0.07   0.09   0.09
   0      0      0   0.06   0.06
   0      0      0      0      0
</TABLE>

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                                  [LINE GRAPH]

           6.50.3.2.  FIGURE 6-3 REFERENCE DIURNAL TRAFFIC VARIATION

6.51.  INTERFERENCE MANAGEMENT

          6.51.1.   The SBS shall detect the failure of demodulation, log these
          events, and report these events to the SAN-OSS.

          6.51.2.   The SRMC shall have the capability to use frequencies that
          minimise the effects of external radio interference in to the ICO
          system.

          6.51.3.   The SRMC shall have the capability to use frequencies that
          minimise the radio interference caused by ICO in to other systems
          and geographical regions.

          6.51.4.   The interference avoidance planning shall take account of:

               1.   regulatory constraints on a regional/national basis

               2.   external interference becoming (or predicted to become)
                    excessive.

          6.51.5.   The SRMC planning capability for predictable interference
          events shall include:

               1.   switching off SAN transmissions at certain azimuth/
                    elevations

               2.   adjustment of the satellite filter configuration (spot-beam,
                    frequency) to avoid predictable interference subject to
                    spectrum resource availability.

          6.51.6.   The SBS response to failed allocation events shall include,
          where practicable according to Air Interface structured procedures:

               1.   changing the allocated channel to a different one on the
                    same satellite

               2.   changing the allocated channel to a different one on a
                    different diversity satellite.

          6.51.7.   The SRMC shall contain a database of regulatory
                    constraints. The database shall contain for all
                    geographical regions what mobile and feeder link
                    frequencies can and cannot be used.

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     6.51.8.  The SRMC shall contain a database of predictable interference
     sources in the mobile and feeder link frequencies. The database shall
     contain at least the following information:

          1.   For each interference source in to ICO:

                    a.  location/orientation information

                    b.  operating frequencies, time of operation

                    c.  antenna parameters.

          2.   For ICO interference into other systems:

                    a.   location/orientation information

                    b.   operating frequencies, time of operation.

     6.51.9.   The SRMC shall have the capability to update the data stored
     for the regulatory constraints to reflect changes in frequency allocations
     and co-ordinations.

     6.51.10.  The SRMC shall have the capability to update the data stored
     for the external interference sources to reflect:

          1.   the results of interference statistics analysis

          2.   new interference sources being found

          3.   existing interference source becoming obsolete.

     6.51.11.  The SRMC shall be able to use the above capabilities to plan to
     avoid mobile link interference from the following sources:

          1.   Terrestrial Fixed Services

          2.   Radar

          3.   Aggregate background interference level.

     6.51.12.  The SRMC shall be able to use the above capabilities to plan
     to avoid to feeder link interference from the following sources:

          1.   other MSS systems

          2.   predictable MS systems.

     6.51.13   The SRMC shall be able to use the above capabilities to plan
     to avoid causing excessive levels of interference to the following systems
     in the mobile link:

          1.   FS systems

          2.   Radar

          3.   MS systems.

     6.51.14.  The SRMC shall be able to use the above capabilities to plan
     to avoid causing excessive levels of interference to the following systems
     in the feeder link:

          1.   other MSS systems

          2.   Radio Astronomy sites

          3.   Aircraft MLS systems.

6.52.  HPN REQUIREMENTS

6.52.1.  HPN GENERAL REQUIREMENTS

     6.52.1.1.  The IGF shall support the applications defined in the
     appendices of ICO 103.40.

     6.52.1.2.  The IGF shall support TS ICO 05.xx, TS ICO 04.xx, TS ICO
     103.40 and TS ICO 104.08.

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6.52.2. BASIC CAPABILITIES FOR HPN

     6.52.2.1. The IGF shall:

          1. be capable of transmitting HP messages on NCH/HP channels

          2. be capable of providing regular synchronisation bursts for all UTs

          3. provide the NCH/HP configurations as given in ICO 05.xx series

          4. be capable of supporting the NCH/HP configurations on any and all
             spot beams of any and all satellites

          5. support capability to transmit NCH/HP to a UT

               a. in any one beam

               b. on any or all satellites

               c. in serial, or, for high priority messages in parallel up to a
                  maximum of 2 satellites

          6. support operational control of NCH/HP based on load related message
             repeat strategy

          7. be capable of transmitting HPN real time PCS commands to the
             satellites.

6.52.3. HPN MESSAGE TRANSMISSION AND RECEPTION

     6.52.3.1. The IGF shall support the transmission of HPN signal types to the
     UT specified in the Al.

     6.52.3.2. The HPN subsystem shall format and transmit the appropriate
     notification message to the subscriber.

     6.52.3.3. When required to send a NCH/HP message, the HPN subsystem shall,
     according to NMS operator configurable and settable priorities:

          1. send the NCH/HP on any or all satellites covering the UT's stored
             last registered position

          2. send the NCH/HP in the spot beam of each satellite covering the
             UT's stored last registered position

          3. if no response is received, repeat the NCH/HP an NMS configurable
             number of times.

     6.52.3.4. The HPN subsystem shall support the reception of acknowledgement
     signals from the UT at the frequency and time indicated on the successful
     forward message transmission.

     6.52.3.5. The IGF shall support the HPN channels by broadcasting
     appropriate information on the MP and HP BCCH channels.

6.52.4. SECTION NOT USED

6.52.5. HPN FREQUENCY PLANNING

     6.52.5.1. The SRMC shall support the use of HPN frequencies at defined flux
     density levels conforming to agreed regulatory constraints.

     6.52.5.2. The SRMC shall ensure that HPN frequencies are selected to
     minimise interference to ICO from other sources.

     6.52.5.3. The SRMC shall prevent interference on the Feederlink to other
     systems.

     6.52.5.4. The SRMC shall minimise service degradation whilst avoiding
     interference to other systems by preventing HPN subsystems which will cause
     interference from transmitting.

     6.52.5.5. In the forward direction,

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          1.  The SRMC shall provide 2 mobile link frequencies in the different
              satellite S-band frequency slots, if required and possible, in
              every satellite beam for use in the NCH/HP channels.

          2.  The SRMC shall also provide up to 2 mobile link frequencies which
              shall be different from those for NCH/HP but in the same satellite
              S-band frequency slots as for the NCH/HP, if required and
              possible, in every satellite beam for use in BCCH/HP channels.

          3.  The SRMC shall ensure that the HPN transponder is not used to
              transmit into known regions in particular azimuth and elevation
              ranges where this would cause interference to other systems.

          4.  The SRMC and NMS subsystems shall support the transfer of
              information to the UT to ensure that the UT and the network have a
              co-ordinated time and frequency rotation sequence in the forward
              channels.

     6.52.5.6.  In the return direction,

          1.  The SRMC shall support one acknowledgement channel in every beam
              considering inter system interference.

          2.  The SRMC shall plan the HPN return link frequencies considering
              the limited antenna isolation and interference into the satellite
              from other users (intra system interference).

          3.  The IGF shall broadcast using BCCH/MP the information on the
              frequencies to be used in the ACK/HP channel.

     6.52.5.7.  The SRMC shall plan and generate the HPN channelisation plans
     for the constellation consistent with continuous availability of the HPN
     transponder capacity, taking into account the constraints of the on-board
     HPN index tables.

     6.52.5.8.  The SRMC/NMS shall plan and generate the information needed to
     manage the on-board HPN index tables (active, standby and two backup HPN
     BFG triplet tables with index numbers) for the constellation consistent
     with continuous availability of the HPN transponder capacity, taking into
     account the constraints of the on-board HPN index tables.

     6.52.5.9.  The SRMC/NMS shall plan the timing of switching among active,
     standby, and two backup on-board HPN index tables to ensure that the
     frequencies required for operation in a region can be provided, taking into
     account the constraints of the on-board HPN index tables.

     6.52.5.10.  The  SRMC/NMS shall transfer the HPN channelisation plans for
     each satellites to the HPN subsystems and the HPN-PCS subsystems in that
     sub-satellite network.

     6.52.5.11.  The SRMC/NMS shall transfer the information on the on-board
     HPN index tables and its switching timing for each satellites to the HPN
     subsystems and the HPN-PCS subsystems in that sub-satellite network.

6.52.6  HPN SYNCHRONISATION PLANNING

     6.52.6.1.  The IGF shall permit access on a burst-by-burst basis to the
     forward and return HPN channels from any SAN in view of the satellite.

     6.52.6.2.  The IGF shall transmit HPN and BCCH at the appropriate times
     to ensure that the satellite peak power does not rise above the level to
     be used when only HPN or BCCH is to be used.

     6.52.6.3.  The HPN subsystem shall pre-correct the frequency to allow for
     the Doppler components of uplink feeder link and downlink mobile link.

6.52.7.  HPN SATELLITE CONTROL

     6.52.7.1.  The HPN-PCS subsystem and HPN subsystem shall operate in a
     co-ordinated manner to ensure that real-time satellite control commands
     and HPN messages arrive at the satellite with a fixed time offset.

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     6.52.7.2.  The HPN-PCS shall permit switching of the HPN transponder on a
     burst-by-burst basis for the transmission of HPN information.

     6.52.7.3.  The HPN-PCS shall permit switching of the HPN transponder
     channelisation (i.e. the HPN Index Tables) such that there is no loss of
     HPN transmitting capacity.

     6.52.7.4.  The IGF shall ensure that knowledge of the HPN transponder
     channelisation is shared by the NMS and the ICO provided CPCS

     6.52.7.5.  The IGF shall ensure that knowledge of the frequency
     availability in each beam is shared by the NMS and the HPN LSRMS
     subsystems in the sub-satellite network.

     6.25.7.6.  Deleted.

     6.52.7.7.  The detailed command formats and protocols to be exchanged
     between the HPN-PCS and the ICO satellite shall be as specified in the
     Payload to Ground Interface Control Document (TBD).

     6.52.7.8.  The HPN-PCS subsystems at all SANs shall be co-ordinated to
     ensure that only one HPN-PCS subsystem can access a particular HPN-PCS
     command channel at a given time.

     6.52.7.9.  The HPN-PCS subsystems shall interface with primary and backup
     NMC for the purpose of exchanging data through the HPN OAM and the SAN-OSS.

     6.52.7.10. The HPN subsystem and HPN-PCS subsystem shall transmit messages
     (HPN) and index table selection/swapping commands (HPN-PCS) respectively
     ensuring that consistent index tables become available with no loss in HPN
     transponder capacity, provided that the real-time PCS commands are
     received at the satellite without error and also that any capacity loss is
     within the HPN subsystem availability constraints.

     6.52.7.11. The HPN-PCS subsystem shall transmit real time HPN PCS commands
     to the ICO satellites such that they are available for use according to
     the channelisation plans.

6.52.8. HPN LOCATION PHASE PLANNING

     6.52.8.1.  The IGF shall transmit BCCH/HP information at the appropriate
     times and frequencies in each beam of each satellite as the satellites
     move to ensure that the UTs can achieve and maintain synchronisation.

     6.52.8.2.  The SRMC shall develop location phase time plans that allows,
     for the reference ICO constellation, transmission of BCCH/HP to every point
     on the Earth at the appropriate BCCH/HP time slot nominally every [10] HPN
     frames using maximum satellite diversity.

     6.52.8.3.  The SRMC shall develop location phase time plans which allows,
     for the reference constellation, transmission of BCCH/HP such that every
     point on the Earth receives a burst at least once every HPN frame using
     maximum satellite diversity.

     6.52.8.4.  The IGF shall, at registration on the ICO system, assign to
     each UT the parameters for BCCH/HP operation including:

          1. Location Phase slot associated with the UT position (SBS)

          2. Subscription status of the UT (MSSC).

6.52.9. HPN CHANNEL MANAGEMENT

     6.52.9.1.  The HPN subsystem at a SAN shall permit access on a
     burst-by-burst basis to the forward and return HPN channels from any SAN
     in view of the satellite.

     6.52.9.2.  The HPN subsystem shall permit all SANs in a sub-satellite
     network access to all satellites (forward and return HPN channels) on the
     basis of demand and with fair arbitration between SANs.

     6.52.9.3.  The HPN subsystem shall ensure that multiple SANs do not
     simultaneously access the forward link HPN satellite transponder.

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     6.52.9.4.  The HPN subsystem shall co-ordinate the use of the return link
     channel in a beam-by-beam basis by assigning appropriate return link
     frequencies, and possibly signatures, for use on the acknowledgement
     channel.

     6.52.9.5. The HPN subsystem shall implement a method of applying diversity
     to maximise message delivery success. Diversity methods shall be:

          1. Satellite diversity

          2. Time diversity (micro and macro).

     6.52.9.6.  The HPN subsystem shall apply diversity methods to maximise the
     overall grade of service considering:

          1. Traffic levels

          2. Message delay

          3. Statistics (temporal and spatial) on channel decorrelation

          4. History of frequencies used in previous message transmission
     attempts.

     6.52.9.7.  The HPN subsystem shall take into account the acknowledgement
     channel receiver availability when transmitting HPN messages to ensure that
     scheduled acknowledgements can be processed.

     6.52.9.8.  The HPN subsystem shall be capable of transmitting messages via
     remote SAN sites if this can increase the satellite coverage of the
     destined UT.

     6.52.9.9.  Key parameters of the HPN subsystem shall be configurable by
     the NMC. The NMS and HPN subsystems shall provide:

          1. Mechanisms to modify distributed algorithms (e.g. scheduling
             algorithms), to provide an upgrade path, ensuring that a consistent
             version is used at all points requiring co-ordination.

          2. Mechanisms to modify the satellite selection criteria as a function
             of azimuth and elevation to the UT.

          3. Mechanisms to modify the message repeat parameter as a function of
             traffic load.

          4. Mechanisms to control the ACK/HP detection threshold.

          5. Mechanisms to increase or decrease the HPN capacity by modifying
             the interleaving factor ensuring that the UT can benefit by reduced
             idle mode when the capacity reduces.

     6.52.9.10. The HPN subsystem shall transmit the location phase bursts
     (BCCH/HP) in accordance with the HPN location phase plans received from
     the SRMC.

     6.52.9.11. The HPN Subsystem at the SAN shall plan the contents of the
     BCCH/HP to ensure that the UTs can maintain correct operation.

     6.52.9.12. The SBS shall provide to each UT information on the time and
     frequencies to be used to receive the BCCH/HP as provided by SRMC.

     6.52.9.13. The SBS shall broadcast using BCCH the information on the
     frequencies to be used in the ACK/HP channels as provided by SRMC.

     6.52.9.14. The SBS shall broadcast using BCCH the information on the
     frequencies to be used in the NCH/HP channels.

6.52.10. HPN SUBSYSTEM SYNCHRONISATION

     6.52.10.1. The HPN channel units shall be synchronised with the medium
     penetration channels.

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     6.52.10.2.  The Timing and Synchronisation provided by the reference clock
     and system timing subsystem to the HPN subsystem shall consist of a 10 MHz
     reference clock and a GPS based time reference (absolute time code, and 1
     pulse per second signal).

     6.52.10.3.  In addition time varying delay to the satellite information
     with an accuracy of [5 usec] for each visible satellite shall be provided
     to the HPN subsystem.

     6.52.10.4.  The HPN Channel Units shall be synchronised such that there
     shall not be a significant overlap of the signals at the satellite which
     may cause peak power fluctuations or loss of signal quality.

     6.52.10.5. The HPN subsystem shall provide the 10 MHz reference clock and
     a GPS based time reference to the HPN-PCS subsystem.

6.53.   SAN AIR INTERFACE REQUIREMENTS

6.53.1. C-BAND TRANSMIT REQUIREMENTS

6.53.1.1. NOMINAL EIRP OF C-BAND COMMUNICATION CARRIERS

     6.53.1.1.1. The EIRP of each type of C-band communication carriers shall be
     able to be adjusted at the following nominal values under the clear weather
     conditions when the satellite gain is set to its nominal values and the
     satellite is located at the zenith of the SAN and to the direction of 20
     degrees elevation angles from the UT:

          1. TCH                   48.6 dBW
          2. BCCH                  53 dBW
          3. HPN                   56 dBW

6.53.1.2. EIRP REQUIREMENT FOR SRMS/HPN COMMAND CARRIERS

     6.53.1.2.1. EIRP of the SRMS command and the HPN PCS command carriers
     shall be able to be adjusted at the following nominal level under the
     clear weather conditions when the satellite is located at the zenith:

          1. SRMS Command          55.3 dBW
          2. HPN PCS Command       55.3 dBW

6.53.1.3. EIRP REQUIREMENT FOR TT&C COMMAND CARRIER

     6.53.1.3.1. EIRP of the TT&C command carrier shall be able to be adjusted
     to:

     1. 66 dBW for normal operation sharing with the communication carriers,

     2. 81 dBW for dedicated emergency and OICD/IOT operation, by setting the
           IF levels at the interface point specified in the TT&C to ICD.

6.53.1.4. MAXIMUM OPERATING EIRP PER POLARISATION

     6.53.1.4.1. The SAN shall be able to transmit multiple carriers with total
     EIRP of 77 dBW for each polarisation.

     6.53.1.4.2. In case of the TT&C emergency operation mode, the SAN shall be
     able to transmit a single TT&C command carrier with EIRP specified in
     Section 6.53.1.3.

6.53.1.5. RF EQUIPMENT GAIN CONTROL RANGE

     6.53.1.5.1. For the communication signals, including SRMS/HPN PCS command
     signals, the RF transmit subsystem shall include provisions for remote
     controllable gain adjustment to compensate for the C-band propagation path
     loss changes and the gain setting changes and/or the gain variations of
     the common part of the satellite transponder.

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     6.53.1.5.2. The gain adjustment range of the RF transmit subsystem shall
     be at least +6 dB, - 14 dB around the nominal EIRPs specified in Section
     6.53.1.1 and Section 6.53.1.2 with nominal steps of 0.5 dB or less.

     6.53.1.5.3. This gain adjustment capability shall also be used by the
     automatic power control system specified in Section 6.57.6.

     6.53.1.5.4. the EIRP of the TT&C command carrier shall be adjusted at the
     TT&C ground equipment independent of the communications carriers.

6.53.1.6. EIRP ACCURACY AND STABILITY

     6.53.1.6.1. The EIRP of each carrier except for the SRMS and HPN PCS
     command carriers shall be adjusted and maintained within plus or minus 1.5
     dB of the required level when the Automatic Power Control (APC) system
     specified in Section 6.57.6 is disabled, and the maximum ambient
     temperature change is less than 10 degrees.

     6.53.1.6.2. This accuracy and stability shall include all factors causing
     variation such as modulator, HPA and upconverter stability, antenna
     transmitting gain variation caused by tracking, and antenna beam pointing
     error.

     6.53.1.6.3. This accuracy also shall include the frequency response of the
     transmit path.

     6.53.1.6.4. Automatic level calibration and adjustment system, open loop or
     closed loop or combination, shall be provided if required to meet this
     specification.

     6.53.1.6.5. The IGF shall assume that the Remote PCS equipment shall have
     the capability to set its IF level at the interface point to the RFT to
     adjust to the nominal EIRP of the PCS SRMS command carrier.

6.53.1.7. MULTICARRIER INTERMODULATION PRODUCTS (TBR)

     6.53.1.7.1. When two tones each with EIRP of 3 dB below the maximum EIRP
     for multiple carrier operation specified in Section 6.53.1.4 are
     transmitted, the third order intermodulation product level shall be less
     than -26.8dB of each tone.

     6.53.1.7.2. The Noise Power Ratio measured using multicarriers (up to
     1,000 carriers), notched at the centre of the band, simulating the
     communication carriers, shall exceed 20.8 dB as a target at the output of
     the HPA under the following conditions:

          1. Total power of the noise:       corresponding to EIRP of 75dBW

          2. Bandwidth of the noise:         25MHz (5199.5 - 5224.5 MHz)

6.53.1.8. OFF-AXIS EIRP DENSITY

     6.53.1.8.1. At any angle A, which is 2.5 degrees or more off the main lobe
     axis of the antenna, the EIRP density in any direction should not exceed
     the following value specified in recommends 2 of Recommendation ITU-R
     S.524-5:

<TABLE>
<S>`                                                                     <C>
       Angle off-axis                                                      Maximum EIRP per 4 kHz
       2.5 degrees <= A <= 7 degrees                                      (32 - 25 log A) dB (W/4 kHz)
       7 degrees < A <= 9.2 degrees                                        11 dB(W/4 kHz)
       9.2 degrees < A <= 48 degrees                                       (35 - 25 log A) dB(W/4 kHz)
       48 degrees < A <= 180 degrees                                       -7 dB(W/4 kHz)
       Note: This spec may not be met by TT&C carrier in emergency mode.
</TABLE>

6.53.1.9. FREQUENCY RESPONSE

     6.53.1.9.1. The frequency response of the transmit path shall be
     calibrated and maintained so that the requirements for EIRP accuracy and
     stability in Section 6.53.1.6 are met.

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6.53.1.10. FREQUENCY STABILITY

     6.53.1.10.1. The transmit frequency stability for communication carriers
     shall be so that the requirements in Section 6.58.4.4 is met when the AFC
     is enabled.

     6.53.1.10.2. The transmit frequency stability for the TT&C carrier shall
     be referred to the TT&C to SAN Interface Control Document.

     6.53.1.10.3. The local oscillators of the TT&C up-converters shall be
     independent of the SAN Master Reference Oscillators.

6.53.1.11. NOISE AND SPURIOUS EMISSIONS (IN-BAND)

     6.53.1.11.1. In any 4 kHz band in the C-band transmit band specified in
     Section 6.57.1.4. excluding a band within 250% of the necessary bandwidth
     of each emission removed from the centre frequency of the carrier, the
     mean power of the inherent transmitter noise and all spurious signals,
     excluding harmonics and multicarrier intermodulation products, supplied to
     the antenna transmit port, shall be less than -43 dBW or less than -50dB
     of the carrier, whichever is greater, at any transmission level up to the
     total maximum operating EIRP specified in Section 6.53.1.4 with EIRP level
     settings for each carrier type as specified in Section 6.53.1.1, 6.53.1.2
     and 6.53.1.3 irrespective of the RF power control specified in Section
     6.58.5.1 plus upward output level control by the CU/modulator summarised
     below.

            6.53.1.11.2. TABLE 6-9 CU/MODULATOR OUTPUT CONTROL RANGE

<TABLE>
<CAPTION>
 Carrier type                  CU/modulator output
                              control range (upward)
---------------               ----------------------
<S>                          <C>
TCH                                up to +4.4dB
BCCH                                   0 dB
HPN                                    0 dB
SRMS Command                           0 dB
HPN Command                            0 dB
</TABLE>

6.53.1.12. NOISE AND SPURIOUS EMISSION (OUT-OF-BAND)

     6.53.1.12.1. In any 4 kHz band between 9 kHz to 26 GHz, the mean power of
     spurious emissions, including harmonics and multicarrier intermodulation
     products, supplied to the antenna transmit port, shall be attenuated below
     the mean total output power of the transmitter by:

          1. 25 dB at the frequency which is removed from the centre frequency
             of the transmit band by more than 50% up to 100% of the bandwidth
             of the transmit band

          2. 35 dB at the frequency which is removed from the centre frequency
             of the transmit band by more than 100% up to 250% of the bandwidth
             of the transmit band

          3. 43 dB plus 10 times the logarithm of the transmitter power (in
             Watts) at the frequency which is removed from the centre frequency
             of the transmit band by more than 250% of the bandwidth of the
             transmit band.

     6.53.1.12.2. The above specification shall be met at any transmission
     level up to the maximum operating EIRP specified in Section 6.53.1.4.

     6.53.1.12.3. If the spurious limits specified above become less than
     -43dBW in 4 kHz band, limit of -43 dBW in 4 kHz band shall apply.

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6.53.1.13. PROTECTION OF THE MLS BAND

     6.53.1.13.1. Every SAN shall have a TX filter after the HPA to protect the
     airborne receivers of the microwave landing system (MLS) operating in the
     frequency range between 5030 to 5091 and/or 5090 to 5150 MHz.

     6.53.1.13.2. All emissions from the SAN in this frequency range shall be
     suppressed below - 66 dBW of EIRP in any 26 kHz bandwidth.

6.53.1.14. TOTAL PHASE NOISE OF THE SAN TRANSMIT CARRIERS (INCLUDING MODULATORS)
(TBR)

     6.53.1.14.1. The single sideband phase noise spectral density induced on
     any transmit carrier except for the SRMS command carrier shall not exceed
     the values below with the AFC functions enabled:

          Frequency Offset (F)               SSB Phase Noise Limit
               (dBc/Hz; F in Hz)
          10 - 100 Hz                        -12 - 25 log F
          100 - 800 Hz                       -22.2 - 19.9 log F
          0.8 - 10 kHz                       -80 dBc
          10-20 kHz                          +52.8 - 33.2 log F
          20 - 100 kHz                       -90 dBc

     6.53.1.14.2. If any discrete phase noise components are present at a level
     that exceeds the limit mask, the 10 Hz to 100 kHz band shall be considered
     to be divided into a number of contiguous sub-bands, each containing no
     more than one discrete component.

     6.53.1.14.3. The width of a sub-band containing a discrete component shall
     not exceed F/5 Hz, where F is the frequency of the discrete component.

     6.53.1.14.4. In each of the sub-bands, the integrated phase noise due to
     any spectral component, including the discrete component, shall not exceed
     that allowed by integrating the limit mask over the same sub-band.

     6.53.1.14.5. In addition to the above, the following requirements shall be
     met:

          a) For offset frequencies up to 250 Hz, no discrete component shall
             exceed the limit mask by 10 dB.

          b) For offset frequencies from 250 Hz to 100 kHz, no discrete
             component shall exceed -50 dBc.

     6.53.1.14.6. The above specification shall be met including the IF part of
     the modulators for communication carriers.

     6.53.1.14.7. For the TT&C carrier, it shall be applied from the RFT IF
     input to the RF output.

6.53.2. C-BAND RECEIVE REQUIREMENTS

6.53.2.1. GENERAL

     6.53.2.1.1. The SAN shall meet the demodulation performance requirements
     under the specified conditions as defined in this section.

6.53.2.2. SAN DEMODULATION PERFORMANCE REQUIREMENTS

     6.53.2.2.1. The IGF shall meet the reference performance level as defined
     below. The reference performance level is defined as the C/No required at
     the SAN demodulator interface, excluding interference, for a bit error, a
     residual bit error or a frame erasure rate (whichever appropriate)
     corresponding to the reference rate. This reference sensitivity is
     specified in Tables 6-10, 6-11 and 6-12, according to the type of channel
     and the propagation condition. [Additional losses due to added thermal
     noise between the RFT antenna input and the demodulator baseband input
     shall be less than [0.1]dB.]

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          6.53.2.2.2. TABLE 6-10 REFERENCE SENSITIVITY PERFORMANCE FOR
                                NOMINAL PENETRATION CHANNELS

<TABLE>
<CAPTION>
CHANNEL   REFERENCE RATE     STATIC     RICE 12_20     RICE 12_20       RICE        RICE 7_200
 TYPE                                                                    7_20
-------   --------------     ------     ----------     ----------     ---------     ----------
<S>      <C>                <C>        <C>            <C>            <C>           <C>
TCH/NS    Raw BER=4%          48.5         tbd            tbd            tbd            tbd
TCH/2.4   Coder BER = 0.1%    [50.4]       tbd            tbd            tbd            tbd
TCH/4.8   Coder BER = 0.1%    [47.9]       tbd            tbd            tbd            tbd
SACCHT/T  FER = 10%           [46.3]       tbd            tbd            tbd            tbd
FACCH     FER = 10%           [46.3]       tbd            tbd            tbd            tbd
SDCCH/6   FER = 10%           [46.3]       tbd            tbd            tbd            tbd
SACCH/C6  FER = 10%           [46.3]       tbd            tbd            tbd            tbd
</TABLE>

          6.53.2.2.3. TABLE 6-11 REFERENCE SENSITIVITY PERFORMANCE FOR
                                MEDIUM PENETRATION CHANNELS

<TABLE>
<CAPTION>
CHANNEL   REFERENCE     STATIC     RICE 0_20     RICE 0_200
 TYPE       RATE
-------   ---------     ------     ---------     ----------
<S>      <C>           <C>        <C>           <C>
SDCCH/2   FER - 10%      tbd         tbd            tbd
SACCH/C2  FER - 10%      tbd         tbd            tbd
RACH      FER - 10%      tbd         tbd            tbd
</TABLE>

          6.53.2.2.4. TABLE 6-12 REFERENCE SENSITIVITY PERFORMANCE FOR
                                 HIGH PENETRATION CHANNELS

<TABLE>
<CAPTION>
CHANNEL   REFERENCE     STATIC      CLASS_20     CLASS_200
 TYPE       RATE
-------   ---------     ------     ---------     ---------
<S>      <C>           <C>        <C>           <C>
HP-ACK    tbd            tbd         tbd            tbd
</TABLE>

     6.53.2.2.5.  NOTE: TCH/S specification is measured at the output of the
     demodulator on 4800 bps coded bit stream. Specification will be refined
     when final codec structure (source and FEC coding) will be selected
     6.53.2.2.5. The TBD performance values in Tables 6-10, 6-11 and 6-12 will
     be equal to simulated performance of state of the art demodulation
     algorithms which are implementable within the constraints of the provided
     Channel Units, plus an implementation margin of 0.5 dB.

     6.53.2.2.6.  All TBD values are to be provided by CDR.

     6.53.2.2.7.  The TBD performance values are to be achieved for all channels
     with 3-sigma, Gaussian distributed frequency errors of up to plus or minus
     [43] Hz which are random timeslot-to-timeslot, and with 3-sigma, Gaussian
     distributed input signal timing errors of up to plus or minus [14] usec
     which are random timeslot-to-timeslot.

     6.53.2.2.8.  The RACH performance values are to be achieved with a maximum
     input frequency uncertainty of plus or minus 2500 Hz and a maximum timing
     uncertainty of plus or minus [2] msec.

     6.53.2.2.9.  All demodulators shall recover to steady state performance
     within [2] seconds after a step change of up to 125 Hz and 25 usec, in
     addition to the steady state errors defined in 6.53.2.2.8 and 6.53.2.2.9.

     6.53.2.2.10. Referring to Tables 6-10, 6-11, and 6-12, Ricek_fd is a
     Ricean channel with rice factor k dB and Doppler bandwidth plus or minus
     fd Hz and Class_fd is a classical (Rayleigh) Doppler channel with Doppler
     bandwidth plus or minus fd Hz, as specified in ICO 05.05.

6.53.2.3. ADDITIONAL DEGRADATIONS

     6.53.2.3.1. Additional degradations to the reference sensitivity
     performance levels shall be limited to the following:

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        6.53.2.3.2. TABLE 6-13 DEGRADATIONS TO THE REFERENCE SENSITIVITY
                                     PERFORMANCE LEVELS

<TABLE>
<CAPTION>
CONDITION           CHANNEL   MAXIMUM VALUE               MAXIMUM DEGRADATION
                                                          TO REFERENCE SENSITIVITY
                                                          PERFORMANCE
---------           -------   ----------------------      -------------------------
<S>                <C>       <C>                         <C>
Adjacent timeslot    All      Adjacent timeslots 12 dB    [0.1] dB
interference                  above wanted timeslot

Adjacent channel     All      Adjacent frequencies 6dB    [TBD] dB
interference                  above wanted frequency

Phase noise          All      +/-5 degrees                [0.1] dB
</TABLE>

Notes.
A full acceptance test procedure shall be agreed with ICO by CDR.

6.53.3. S-BAND TX PERFORMANCE REQUIREMENTS

6.53.3.1. NOMINAL EIRP

     6.53.3.1.1. The following are the nominal EIRP requirements by channel
     type:

          1. TCH         6.8 dBW

          2. RACH        6.8 dBW

     6.53.3.1.2. Individual carrier EIRP is set by the output level of the
     corresponding CU.

6.53.3.2. MAXIMUM OPERATING EIRP

     6.53.3.2.1. Maximum operating EIRP shall be 20 dBW.

     6.53.3.2.2. For the IOT antenna the 20 W SSPA located near the antenna
     feed shall be capable of transmitting multicarrier at 34 dBW total EIRP
     with 20 dB NPR.

6.53.3.3. TRANSMITTER NOISE AND SPURIOUS SIGNAL (IN-BAND)

     6.53.3.3.1. In any 4 kHz band in the S-band transmit band specified in
     Section 6.57.1.6, excluding a band within 250% of the necessary bandwidth
     of each emission removed from the centre frequency of the carrier, the
     EIRP of the inherent transmitter noise and all spurious signals, excluding
     harmonics and multicarrier intermodulation products, shall be less then
     -43 dBW.

6.53.3.4. NOISE AND SPURIOUS EMISSIONS (OUT-OF-BAND)

     6.53.3.4.1. In any 4 kHz band between 9 kHz to 26 GHz, the mean power of
     spurious emissions, including harmonics and multicarrier intermodulation
     products, supplied to the antenna transmit port, shall be attenuated below
     the mean total output power of the transmitter by:

          1. 25 dB at the frequency which is removed from the centre frequency
             of the transmit band by more than 50% up to 100% of the bandwidth
             of the transmit band

          2. 35 dB at the frequency which is removed from the centre frequency
             of the transmit band by more than 100% up to 250% of the bandwidth
             of the transmit band

          3. 43 dB plus 10 times the logarithm of the transmitter power (in
             Watts) at the frequency which is removed from the centre frequency
             of the transmit band by more than 250% of the bandwidth of the
             transmit band.

     6.53.3.4.2. The above specification shall be met at any transmission level
     up to the maximum operating EIRP specified in Section 6.53.3.2.

     6.53.3.4.3. If the spurious limits specified above become less than -43dBW
     in 4 kHz band, limit of -43 dBW in 4 kHz band shall apply.

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6.53.3.5. TRANSMITTER PHASE NOISE (TBR)

     6.53.3.5.1 The single sideband phase noise spectral density induced on any
     transmit carrier shall not exceed the values given below:

<TABLE>
<CAPTION>
Frequency Offset (F)                                 SSB Phase Noise Limit
        (dBc/Hz; F in Hz)
<S>                                                  <C>
10 - 100 Hz                                          -12 - 25 log F
100-800 Hz                                           -22.2 - 19.9 log F
0.8-10 kHz                                           -80 dBc
10 - 20 kHz                                          +52.8 -33.2 log F
20 - 100 kHz                                         -90 dBc
</TABLE>

     6.53.3.5.2. If any discrete phase noise components are present at a level
     that exceeds the limit mask, the 10 Hz to 100 kHz band shall be considered
     to be divided into a number of contiguous sub-bands, each containing no
     more than one discrete component.

     6.53.3.5.3. The width of a sub-band containing a discrete component shall
     not exceed F/5 Hz, where F is the frequency of the discrete component.

     6.53.3.5.4. In each of the sub-bands, the integrated phase noise due to any
     spectral component, including the discrete component, shall not exceed that
     allowed by integrating the limit mask over the same sub-band.

     6.53.3.5.5. In addition to the above, the following requirements shall be
     met:

          1. For offset frequencies up to 250 Hz, no discrete component shall
             exceed the limit mask by 10 dB.

          2. For offset frequencies form 250 Hz to 100 kHz, no discrete
             component shall exceed -50dBc.

6.53.3.6. EIRP ACCURACY AND STABILITY

     6.53.3.6.1. Under normal weather conditions prevailing at the land earth
     station location, the EIRP of any S-band transmitted signal in the
     direction of the satellite shall be maintained within +2.5 dB and -2.5 dB
     of the desired level, provided that the transmitted carrier is calibrated
     at the transmitted frequency.

     6.53.3.6.2. A monitoring coupler shall be provided at the S-band SSPA
     output.

6.53.3.7. TRANSMIT LEVEL CONTROL REQUIREMENT

     6.53.3.7.1. The transmit subsystem shall include provisions for local gain
     adjustment in the HPA and the upconverter.

     6.53.3.7.2. The combined gain adjustment range in the HPA and the
     upconverter shall be at least 20 dB, meeting the noise and spurious
     requirements specified in Section 6.53.3.3.

6.53.3.8. TRANSMIT FREQUENCY STABILITY

     6.53.3.8.1. The frequency stability of the S-band TX subsystem shall be
     better than [plus or minus] Hz.

6.54. SECTION NOT USED

6.55. TRAFFIC PLANNING

     6.55.1. The SRMC shall have the capability to predict the amount of traffic
     that will be offered to the system.

     6.55.2. The SRMC shall produce traffic predictions for each position on the
     ground by:

          1. service type

          2. UT type

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          3. Diversity type

          4. time of day

          5. whether the traffic is mobile originated or mobile terminated.

     6.55.3. The SRMC shall have the capability to represent the geographical
     areas used for traffic planning as follows:

          1. fixed equal size ground cells

          2. variable size ground cells

          3. national/regional political boundaries

          4. continental borders

          5. economical/commercial regions.

     6.55.4  The SRMC shall have the capability to update and optimise the
     traffic predictions by using actual carried traffic measurements provided
     by the NMS.

     6.55.5. The NMS shall provide the SRMC with the actual traffic measurements
     of the global coverage using measurement data generated at each SAN.

     6.55.6. The SRMC shall provide the facility for an operator to edit/modify
     the data used for traffic planning.

     6.55.7. The SRMC shall provide the facility for prediction algorithms used
     in the traffic planning to be further developed and optimised in the light
     of operational experience, by means of an Application Programming
     Interface. Traffic algorithm development shall be introduced in the LNMC
     and functionally tested in a planned and controlled manner within the
     boundaries of the OT&DF.

     6.55.8. The SRMC shall have the capability to use the traffic predictions
     produced by the traffic planning function to optimise the data produced by
     the following subsystems:

          1. Coverage and Network Planning

          2. Satellite Frequency and Channelisation Planning

          3. EIRP Management.

     6.55.9. The SRMC shall provide the capability to off-load traffic of any
     SAN approaching its capacity limit in terms of satellite-link resources by
     diverting the part of the traffic to adjacent lightly loaded SANs.

     6.55.10. The SRMC shall provide the capability to detect significant
     changes in measured traffic from predicted values.

     6.55.11. The SRMC shall provide the capability to respond to times when
     there are significant changes in measured traffic from predicted values, by
     re-allocation of available system resources accordingly.

     6.55.12. The SRMC shall have the capability to perform short-term,
     middle-term and long-term trend analysis on predicted and measured traffic
     data.

     6.55.13. The exact functional structure for traffic planning will depend on
     the design and implementation of the system but shall be based on the
     functional block diagram illustrated in the figure below.

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     7.8.4.11.2.  It consists of these network elements (in the following
     referred to as the IN systems): Service Switching Function (SSF),
     Intelligent Peripherals (IP), Service Control Point (SCP), Service
     Management Point (SMP), Service Creation Environment (SCE).

     7.8.4.11.3.  Provisions shall be included for the operator to manage the
     IN systems adopted across the various ICONET elements. Such management
     shall encompass:

          1.   Fault Management - monitoring of IN systems (including SMAS,
               SCP) shall be provided including alarm surveillance, alarm
               analysis. Fault detection, fault location and fault correction
               is required.

          2.   Alarm forwarding shall be supported from SMP/SCP to the
               NODE-OS (F/R)

          3.   Configuration Management - this shall encompass MSSC (SSF)
               and SS#7, network change introduction and maintenance support.
               It shall be possible to configure event thresholds.

          4.   Performance Management - the real-time collection, reporting and
               presentation of measurement data from the IN systems and
               counters shall be supported. The capability to collect statistics
               (usage of all IN services, errors when executing IN services,
               etc.).

7.8.4.12.  SIGNALLING SYSTEM

     7.8.4.12.1. CCITT (now ITU-T) No 7 acts as the signalling backbone channels
     for the signalling between the MSSC, TNM, SBS and IN elements. As such,
     its continual management is an important consideration.

     7.8.4.12.2. CCS#7 Management shall be compliant with the relevant industry
     standards (e.g. ITU-T, ANSI SS7, Japanese SS7).

     7.8.4.12.3. Provisions shall be included for the operator to manage the
     CCS7 signalling network adopted across the various ICONET elements. Such
     management shall encompass:

          1.   fault management - link monitoring shall be provided to detect,
               diagnose and treat real-time signalling link failures (both
               hardware and message transfer [MTP]). Testing of faults shall
               also be possible to confirm successful recovery action (e.g.
               link failure clearance, etc.). Serious faults shall be escalated
               and communicated to the SAN-OSS for higher level correlation and
               attention. Reporting shall also be possible for potential
               failures such as congestion build up and blocking.

          2.   configuration management - this shall encompass (network
               planning (F/R)), network change introduction and maintenance
               support.

          3.   performance management - the real-time collection, (reporting
               and presentation of measurement data (F/R)) from the CC7 elements
               and counters (e.g. traffic parameters, signalling message
               lengths, etc.).

     7.8.4.12.4. (It shall be possible to retain a network-wide display of the
     CCS7 operations and resources (e.g. network set-up, routing, trunks, etc.)
     (F/R)).
     Management of the CCS7 shall be possible at the NMC. In addition,
     management of the various interconnecting links shall be possible via the
     MSSC and TNM, as appropriate (refer to Section 6.37).

7.8.5.  SATELLITE ACCESS NODE

7.8.5.1.  GENERAL DESCRIPTION

     7.8.5.1.1. The SAN-OSS system is a single centralised point at the SAN
     where the complete functionality of the SAN can be monitored. The OSS
     also acts as a Mediation Device in support of the functionality required
     at the NMC.

     7.8.5.1.2. The objective of the SAN-OSS system is to maximise the
     availability and performance of the local SAN equipment.

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     7.8.5.1.3. The OT&DF is to be treated as a SAN.

7.8.5.2.  GENERAL REQUIREMENTS

     7.8.5.2.1. The SAN-OSS OAM interface shall provide access to backup and
     restoration procedures associated with the SAN-OSS.

     7.8.5.2.2. The SAN-OSS OAM interface shall provide the following software
     upgrade facilities:

          1.   download new versions of software from the NMC.

          2.   replace the current version of software with the new version.

          3.   replace the current version of software with the previous
               version.

          4.   extract existing software version information for the three
               versions of software.

     7.8.5.2.3. It shall be possible to integrate further elements into the
     SAN-OSS at a later date with the minimum disruption, for the purposes of
     network expansion.

7.8.5.3.  CONFIGURATION MANAGEMENT

     7.8.5.3.1. The SAN-OSS OAM interface shall provide a facility for the
     SAN-OSS to supply status to the NMC.

     7.8.5.3.2. The SAN OAM interface shall forward SAN events to the NMS.

     7.8.5.3.3. The SAN OAM interface shall allow the NMS to:

          1.   configure SAN event parameters.

          2.   initiate archiving of the SAN event data.

          3.   purge SAN event data.

          4.   access SAN event data.

     7.8.5.3.4. The SAN-OSS OAM interface shall provide access to parameters
     requiring configuration by the NMC.

7.8.5.4.  FAULT MANAGEMENT

     7.8.5.4.1. The SAN-OSS OAM interface shall forward the raising and
     clearing of SAN-OSS alarms to the NMC, including the following:

          1.   Miscellaneous alarms.

          2.   Communication alarms.

          3.   Equipment alarms.

          4.   Processing error alarms.

          5.   Quality of service alarms.

          6.   Alarm Severity.

     7.8.5.4.2. Each SAN-OSS alarm forwarded to the NMC shall contain:

          1.   an object identifier unique to the SAN-OSS.

          2.   date and time of when the alarm was raised or cleared.

          3.   alarm description.

          4.   source of the alarm for the purpose of fault location.

     7.8.5.4.3. The SAN OAM interface shall allow the NMS to:

          1.   configure SAN alarm parameters.

          2.   initiate archiving of the SAN alarm data.

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7.8.4.10.  INTERWORKING LOCATION REGISTER

7.8.4.10.1.  GENERAL DESCRIPTION

     7.8.4.10.1.1.  The ILR forms part of the cellular/satellite interworking
     function which enables roaming of ICO subscribers between the ICONET and
     other cellular networks as described in Section 4. The ILR is a database
     which is based on the ICO HLR construct.

7.8.4.10.2.  GENERAL REQUIREMENTS

     7.8.4.10.2.1.  The following functionalities shall be supported in the
     dialogue between the NODE-OS and the switch:

          1.  connection and association handling;

          2.  command and response communication to and from the switch,
              including spontaneous report reception;

          3.  logging and authority control;

          4.  file administration;

          5.  file transfer;

          6.  event logging;

          7.  subscription handling, which is a general mechanism for
              distribution of files, delayed responses, and spontaneous reports
              received from the switch.

7.8.4.10.3.  CONFIGURATION MANAGEMENT

     7.8.4.10.3.1.  Software management shall be incorporated into the ILR
     element. This shall enable:

          1.  The display of software properties for a selected network element
              to be supported.

          2.  The operator to search for a specific software unit or program
              correction, among a selected set of network elements or in the
              complete network.

          3.  Comparison among software revisions of a selected set of ILR or
              the complete network shall be supported.

          4.  The information stored in the NODE-OS database to be updated with
              the data of the ILR.

          5.  the operator to set certain filters in the tool properties that
              restrict the scope of the database retrieving operations.

          6.  importing of files from input media.

          7.  Handling of a suitable file store.

          8.  Files to be loaded into the AXE file store, before activation of
              software units.

          9.  software unit downloading (i.e. loading of software, testing and
              activation)

          10. Downloads of program correction command files shall be supported.

7.8.4.10.4.  FAULT MANAGEMENT

     7.8.4.10.4.1.  The NODE-OS shall manage the alarms generated by the SAN-OSS
     switches ILR subsystem.

     7.8.4.10.4.2.  The NMC shall monitor the operational state of the ILR.

     7.8.4.10.4.3.  Test procedures shall be available to test the ILR
     transactions as well as the communication to the ILR.

     7.8.4.10.4.4.  Alarms to be managed shall include:

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          1.  ILR Hardware Fault Alarms

          2.  Database Update alarms

          3.  Automatic Database recovery initiated alarms

          4.  Database threshold alarms

          5.  Signalling failures on GSM interface links

          6.  Excessive number of retries on GSM interface links

          7.  Threshold Alarms.

     7.8.4.10.4.5.  The NODE-OS shall encompass an alarm adaptation facility.
     This shall include:

          1.  The reception of the alarms from all ILRs currently specified to
              be supervised in the NODE-OS information model.

          2.  setting of mandatory attributes and several optional attributes in
              the Alarm Records.

          3.  the forwarding of created Alarm records to the Fault Management
              Kernel.

          4.  The conversion of an ILR alarm printout to an Alarm Record.

          5.  A database consistency check. This shall be made to update the ILR
              alarm information in NODE-OS after error situations.

          6.  The enabling/disabling of the AXE heartbeat supervision.

          7.  The setting of a heartbeat supervision interval.

          8.  The modification of the default values for mapping ILR alarm class
              to be perceived severity and to probable cause.

          9.  The modification of the default values for mapping ILR Alarm
              Category.

          10. The update of the Probable Cause value set for a specific Alarm
              Slogan.

          11. The update of the ILR specific problem list (Alarm Slogans), of
              the ILR Probable Cause List, and of the ILR Event Type list.

          12. The addition/removal of conversion rules for one or more Alarm
              Slogans.

          13. The update of input parameters to conversion rules.

7.8.4.10.5.  PERFORMANCE MANAGEMENT

     7.8.4.10.5.1.  The ILR shall report:

          1.  transaction load and response time

          2.  database size

          3.  update and query failure rates

          4.  service activation time.

     7.8.4.10.5.2  A variety of performance parameter measurements shall be
     recorded concerning the ILR and these shall be agreed in liaison with ICO
     during the requirements phase. However, typical parameters shall be as per
     the HLR.

7.8.4.10.6.  SECURITY MANAGEMENT

     7.8.4.10.6.1.  None.

7.8.4.11.  INTELLIGENT NETWORK SYSTEM (F/R)

     7.8.4.11.1.  The IN platform provides customised services for calls
to/from both ICO subscribers and roamers within the ICONET.

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         7.8.4.9.1.2  The EIR provides a global repository for the data required
         to validate the user terminal. It supports the detection of illegal or
         cloned equipment (white list), the detection of stolen equipment (black
         list) and the monitoring of faulty equipment (grey list).

7.8.4.9.2.  GENERAL REQUIREMENTS

         7.8.4.9.2.1. Management functions, functional entities and objects
         required from the EIR/AUC shall be as defined in the Ericsson SoC to
         GSM 12.02.

7.8.4.9.3.  CONFIGURATION MANAGEMENT

         7.8.4.9.3.1. The EIR shall maintain the following lists of user
         terminal IMEIs:

              1.  White List.  These are ranges of "normal" devices, authorised
                  to make calls on the network.

              2.  Grey List.  These devices are "suspect" numbers.

              3.  Black List.  IMEIs on the black list are either stolen,
                  suspended for non-payment or are faulty devices. They are
                  forbidden to make calls on the ICO network.

         7.8.4.9.3.2. It shall be possible to set up a connection from the
         NODE-OS to the AuC/EIR.

         7.8.4.9.3.3  It shall be possible to forward a command to the AuC/EIR
         and to receive the respective response.

         7.8.4.9.3.4. It shall be possible to interrupt the reception of the
         current response.

         7.8.4.9.3.5. It shall be possible to handle disconnection from the
         remote system.

         7.8.4.9.3.6. The authority check on connections as well as on commands
         shall be performed.

7.8.4.9.4.  FAULT MANAGEMENT

         7.8.4.9.4.1. The NODE-OS shall monitor the operational state of the
         Local EIR/AuC.

         7.8.4.9.4.2. Test procedures shall be available to test the Local
         EIR/AuC transactions as well as the communication to the Local EIR.

         7.8.4.9.4.3. Alarms to be managed shall include:

              1.  Local AuC/EIR Hardware Fault Alarms

              2.  Database Update alarms

              3.  Automatic Database recovery initiated alarms

              4.  Database threshold alarms

              5.  Signalling failures on GSM interface links

              6.  Excessive number of retries on GSM interface links

              7.  Threshold Alarms.

         7.8.4.9.4.4.  It shall be possible to receive at the NODE-OS all events
         originating from the AuC/EIR.

         7.8.4.9.4.5.  The processing of the AuC/EIR events/alarms and the
         translation into NODE-OS event/alarm record format shall be supported.

         7.8.4.9.4.6.  The setting of the mandatory attributes and of the
         optional attributes in the NODE-OS alarm record shall be supported.

         7.8.4.9.4.7.  The connection to AuC/EIR shall be supervised.

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7.8.4.9.5. PERFORMANCE MANAGEMENT

     7.8.4.9.5.1.  The EIR shall report:

          1.  transaction load and response time

          2.  database size

          3.  transaction response time

          4.  service activation time

          5.  queries for unidentified equipment

          6.  counts and ratios of grey list and black list "hits" versus white
              list "hits."

     7.8.4.9.5.2.  A variety of performance parameter measurements shall be
     recorded concerning the EIR and these shall be agreed in liaison with ICO
     during the requirements phase. However typical EIR Parameters shall
     include:

          1.  Number of total requests

          2.  Number of requests by MSSC

          3.  Number of "hits" by MSSC:

               a)  Black list

               b)  Grey list

               c)  White list

          4.  Minimum, average, and peak response times to requests from the
              MSSCs

          5.  Number of queries for unidentified equipment

          6.  Database size and percent utilisation

          7.  Number of transmitted check IMEI request

          8.  Number of white answers in EIR

          9.  Number of grey answers in EIR

          10. Number of black answers in EIR

          11. Number of unknown IMEI answers

     7.8.4.9.5.3.  The AuC shall report:

          1.  transaction load and response time

          2.  database size

          3.  transaction response time

          4.  counts and ratios of failed challenges versus accepted challenges.

     7.8.4.9.5.4.  A variety of performance parameter measurements shall be
     recorded concerning the AuC and these shall be agreed in liaison with ICO
     during the requirements phase. However typical AuC parameters shall
     include:

          1.  Total number of transactions per hour

          2.  Total number of transactions per hour per MSSC

          3.  Database size and percent space utilisation

          4.  Response times to test transactions

          5.  Counts and ratios of successful versus failed challenges.

7.8.4.9.6.  SECURITY MANAGEMENT

          7.8.4.9.6.1.  None

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          7.  subscription handling, which is a general mechanism for
              distribution of files, delayed responses, and spontaneous reports
              received from the switch.

7.8.4.8.3.  CONFIGURATION MANAGEMENT

     7.8.4.8.3.1.  The HLR shall contain the following (minimum) information:

          1.  The users international mobile subscriber number (IMSI), which
              corresponds to that contained in their Subscriber Identify Module
              (SIM)

          2.  Subscribers MSISDN

          3.  Supplementary services that have been authorised

          4.  The users home getaway

          5.  The location of the users current VLR.

     7.8.4.8.3.2.  Software management shall be incorporated into the HLR
     element. This shall enable:

          1.  The display of software properties for a selected network element
              to be supported.

          2.  The operator to search for a specific software unit or program
              correction, among a selected set of network elements or in the
              complete network.

          3.  Comparison among software revisions of a selected set of HLR or
              the complete network shall be supported.

          4.  The information stored in the NODE-OS database to be updated with
              the data of the HLR.

          5.  the operator to set certain filters in the tool properties that
              restrict the scope of the database retrieving operations.

          6.  importing of files from input media.

          7.  Handling of a suitable file store.

          8.  Files to be loaded into the AXE file store, before activation of
              software units.

          9.  software unit downloading (i.e. loading of software, testing and
              activation)

          10. Downloads of program correction command files shall be supported.

7.8.4.8.4.  FAULT MANAGEMENT

     7.8.4.8.4.1.  The NODE-OS shall monitor the operational state of the HLR.

     7.8.4.8.4.2.  Test procedures shall be available to test the HLR
     transactions as well as the communication to the HLR.

     7.8.4.8.4.3.  Alarms to be managed shall include:

          1.  HLR Hardware Fault alarms

          2.  Signalling Link Set alarms

          3.  Signalling Link Set alarms

          4.  Database Update alarms

          5.  Automatic Database recovery initiated alarms

          6.  Database threshold alarms

          7.  Signalling failures on GSM interface links

          8.  Excessive number of retries on GSM interface links

          9.  Threshold Alarms

     7.8.4.8.4.4.  The NODE-OS shall encompass an alarm adaptation facility.
     This shall include:

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     1.  The reception of the alarms from the HLR currently specified to be
         supervised in the NODE-OS information model.

     2.  setting of mandatory attributes and several optional attributes in the
         Alarm Records.

     3.  the forwarding of created Alarm records to the Fault Management Kernel.

     4.  The conversion of an HLR alarm printout to an Alarm Record.

     5.  A database consistency check. This shall be made to update the HLR
         alarm information in NODE-OS after error situations.

     6.  The enabling/disabling of the AXE heartbeat supervision.

     7.  The setting of a heartbeat supervision interval.

     8.  The modification of the default values for mapping HLR alarm class to
         perceived severity and to probable cause.

     9.  The modification of the default values for mapping HLR Alarm Category.

     10. The update of the Probable Cause value set for a specific Alarm Slogan.

     11. The update of the HLR specific problem list (Alarm Slogans), of the HLR
         Probable Cause List, and of the HLR Event Type list.

     12. The addition/removal of conversion rules for one or more Alarm
         Slogans.

     13. The update of input parameters to conversion rules.

7.8.4.8.5.  PERFORMANCE MANAGEMENT

     7.8.4.8.5.1.  The HLR shall report:

          1.  transaction load and response time

          2.  database size

          3.  update and query failure rates

          4.  service activation time.

     7.8.4.8.5.2.  A variety of performance parameter measurements shall be
     recorded concerning the HLR and these shall be agreed in liaison with ICO
     during the requirements phase. However, typical parameters shall include:

          1.  Subscription activity/profile measurements

          2.  Number of Attempted/successful user location updates

          3.  Attempted/successful request for MSRN

          4.  Number of added subscribers by time period.

7.8.4.8.6. SECURITY MANAGEMENT

     7.8.4.8.6.1.  None

7.8.4.9.   AUTHENTICATION CENTRE/EQUIPMENT IDENTIFICATION REGISTER

7.8.4.9.1. GENERAL DESCRIPTION

     7.8.4.9.1.1.  The AuC network element stores data for each mobile
     subscriber to allow the international mobile subscriber identity to be
     authenticated and to allow communication over the radio path between the
     mobile station and the network to be ciphered. The AuC is responsible for
     providing the authenticating keys for authorising ICO subscribers access to
     the ICONET

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     7.8.4.7.2.7.  The NODE-OS shall have sufficient capacity to manage capacity
     enhancements to the IGF Messaging Platform in the future.

     7.8.4.7.2.8.  It shall be possible for the OAM facility to accommodate
     additional future agent software to support new messaging services to be
     delivered by the IGF Messaging Platform.

     7.8.4.7.2.9  It shall be possible to obtain statistical and performance
     reports on the IGF Messaging Platform via the OAM. Typical these reports
     will cover traffic, subscriber and message activity.

7.8.4.7.3.  CONFIGURATION MANAGEMENT

     7.8.4.7.3.1.  It shall be possible to log into the IGF Messaging Platform
     for OAM operations:

          1.  Locally from a dedicated OAM terminal at the messaging node site.
          2.  Remotely from the SAN (via the NODE-OS Terminal)
          3.  Remotely from the NMC (if the IGF Messaging Platform is not sited
              at the NMC), via the NODE-OS.

     7.8.4.7.3.2.  The IGF Messaging Platform OAM interface shall provide a
     facility for the messaging nodes to supply status information to the
     NODE-OS. Typical status information is required of the current hardware and
     software configuration of each of the messaging nodes (namely, processing
     subsystem, storage subsystem, front-end subsystem, OAM subsystem, database
     management system).

     7.8.4.7.3.3.  It shall be possible to configure specific failure event
     conditions for reporting the NODE-OS.

     7.8.4.7.3.4.  The IGF Messaging Platform shall support the following
     functions in relation to the interface to the NODE-OS:

          1.  Conversion of the received IGF Messaging Platform alarms to
              NODE-OS format

          2.  Synchronisation of NODE-OS alarm information with the MC alarm
              information.

     7.8.4.7.3.5.  It shall be possible to configure IGF Messaging Platform
     thresholds and settings (e.g. system database settings, parameters, etc.)

     7.8.4.7.3.6.  It shall be possible to log configuration changes (e.g.
     database modification, parameter adjustments, etc.).

     7.8.4.7.3.7.  It shall be possible for the IGF Messaging Platform to
     support remote installation of upgraded software for each Messaging Node.

7.8.4.7.4.  FAULT MANAGEMENT

     7.8.4.7.4.1.  The NODE-OS shall manage the alarms generated by the IGF
     Messaging Platform.

     7.8.4.7.4.2.  Typical alarms reported shall include:

          1.  Equipment alarms

          2.  Software processing alarms

          3.  Communication alarms

          4.  Database alarms (e.g. update, recover, threshold violation, etc.)

          5.  IGF Messaging Platform service failures (e.g. voice mail, data,
              etc.)

          6.  Message validation failures

          7.  Signalling errors

          8.  Excessive number of SMS retries

          9.  Storage/Retrieval errors.

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     7.8.4.7.4.3.  The IGF Messaging Platform OAM shall maintain an event log
     for local error and event messages.

     7.8.4.7.4.4.  It shall be possible to filter event log(s) using pre-defined
     and/or custom filters.

7.8.4.7.5.  PERFORMANCE MANAGEMENT

     7.8.4.7.5.1.  A variety of performance parameter measurements shall be
     recorded concerning the IGF Messaging Platform and these shall be agreed
     with ICO during the requirements phase.  However, typical parameters shall
     include:

          1.  Overall attempted/successful mobile originating short message
              forwarding

          2.  Overall attempted/successful mobile terminating short message
              forwarding

          3.  Attempted/successful mobile originating messages per service type
              (i.e. voice, data, etc.)

          4.  Attempted/successful mobile terminating messages per service type

               a)  Short messages per time period.

               b)  No of stored messages to be distributed

               c)  No of notification messages received

               d)  Message buffer lengths.

7.8.4.7.6.  SECURITY MANAGEMENT

     7.8.4.7.6.1.  It shall be possible to limit access to the IGF Messaging
     Platform via a login/password control mechanism.

     7.8.4.7.6.2.  This access control facility shall be configurable.

     7.8.4.7.6.3.  It shall be possible to log all operator activities towards
     the IGF Messaging Platform exchange.

7.8.4.8.  HOME LOCATION REGISTER

7.8.4.8.1.  GENERAL DESCRIPTION

     7.8.4.8.1.1. The HLR is a database where subscriptions are defined with the
     IMSI and MSISDN number(s) attached. Attributes belonging to each
     subscription (categories, supplementary services, basic telecommunications
     services, locations) are also identified here. Authentication triplets
     requested from the AuC are also stored here.

7.8.4.8.2.  GENERAL REQUIREMENTS

     7.8.4.8.2.1.  Management functions, functional entities and objects
     required from the HLR shall be as defined in GSM 12.02 as far as is
     possible.

     7.8.4.8.2.2.  The following functionalities shall be supported in the
     dialogue between the NODE-OS and the switch:

          1.  connection and association handling;

          2.  command and response communication to and from the switch,
              including spontaneous report reception;

          3.  logging and authority control;

          4.  file administration;

          5.  file transfer;

          6.  event logging;

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          1. Traffic Reports

          2. Destination Measurements Reports

          3. Traffic Measurements for Mobile Calls

          4. Holding Times/Call Volumes

     7.8.4.6.5.2. A variety of performance counts shall be kept by the MSSC.
     The exact types and formats will depend on the switch chosen but typical
     counts shall include:

          1. TRAFFIC VOLUME DATA; traffic counts (attempts, completions) on
             each trunk group and channel group and on each network component
             at regular time intervals, resulting in counts per time interval)

          2. CUSTOMER BEHAVIOUR RELATED CALL FAILURE (e.g. counts of call
             disposition (Busy, Don't Answer, Customer not Available, etc.).

          3. TRAFFIC FAILURES DUE TO SWITCHING; internal measurements of call
             (traffic) failures due to switching. In addition, signalling often
             identifies an inability to establish a call due to switch failure.

          4. TRAFFIC FAILURES DUE TO SATELLITES; count of call failures due to
             satellite channel failure or poor quality provided by the switch
             (MSSC).

          5. TRAFFIC FAILURES DUE TO TRUNKING; count of call failures due to
             trunk failure or poor quality provided by the switch (MSSC).

          6. BLOCKED CALLS; counts of blocked call (No Circuit counts).

          7. INTERRUPTED CALLS; detect any call lost without a customer
             generated disconnect.

          8. CALL SET-UP TIME (post-dial delay); Call set-up time provided by
             the switching systems and through measured test calls.

          9. CALL HOLDING TIME; all holding time by service type, trunk group,
             and time and date.

     7.8.4.6.5.3. A variety of performance parameter measurements shall be
     recorded by the MSSC/VLR and these shall be agreed in liaison with ICO
     during the requirements phase. However, typical parameters shall include:

          1. Mobile Originated Call Measurements (e.g. attempted calls,
             successful calls, etc.)

          2. Mobile Terminated Call Measurements (e.g. attempted calls,
             successful calls, etc.)

          3. emergency calls (e.g. number answered, etc.)

          4. Call set-up measurements

          5. inter MSSC handover measurements

          6. Other call related measurements (e.g. TMSI subscriber transactions
             on MM layer, attempted TMSI re-allocations, IMSI detached
             procedures, etc.)

          7. Peak hour measurements

          8. Load measurements

          9. HLP-VLR measurements (e.g. attempted intra/inter VLR location
             updates, etc.)

          10.traffic volume data per geographical area.

     7.8.4.6.5.4. The data collection for Statistic and Traffic Measurement
     shall be supported.

     7.8.4.6.5.5. The data collection and presentation for the Traffic
     measurements on traffic routes, traffic types and geographical distribution
     shall be supported.

     7.8.4.6.5.6. The following functions shall be supported:

          1. data compression;

          2. data deletion;

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          3. data backup-handling.

          4. The generation of reports, once data has been collected and
             inserted into the database, shall be supported.

     7.8.4.6.5.7. The following four types of scripts for different functions
     shall be supported:

          1. command scripts;

          2. command response scripts;

          3. file normalisation scripts;

          4. report scripts.

     7.8.4.6.5.8 The administration of measurements (e.g. list of measurements,
     deletion of measurements) shall be supported.

     7.8.4.6.5.9. The data reception and storage shall be supported.

     7.8.4.6.5.10. The extended administration of measurements with creation of
     measurements via the Graphic User Interface shall be supported.

     7.8.4.6.5.11. The performance measurements measured by the MSSC and
     available through the NODE-OS OAM interface shall include the information
     to allow the calculation of:

          1. total call holding time categorised by (UT location, F/R),
             mobile-originated or mobile-terminated, (service type, F/R), time
             and day.

          2. total call counts (attempts and completion) categorised by (UT
             location, F/R), mobile-originated, mobile-terminated, (service
             type, F/R), time and day.

     7.8.4.6.5.12. The interval and resolution of measurements shall be chosen
     so that the measurements data can be efficiently utilised for traffic
     planning at the SRMC.

     7.8.4.6.5.13. Performance measurements recorded by the MSSC/VLR shall be
     made available through the NODE-OS OAM interface for the purpose of further
     analysis and predictions in Traffic Planning at the SRMC.

7.8.4.6.6. SECURITY MANAGEMENT

     7.8.3.6.6.1. None

7.8.4.7. IGF MESSAGING PLATFORM

7.8.4.7.1. GENERAL DESCRIPTION

     7.8.4.7.1.1. The IGF Messaging Platform is composed of a number of
     messaging nodes to be deployed in the ICONET to deliver the service
     requirements of Section 4.5 of the IGF Requirements.

7.8.4.7.2. GENERAL REQUIREMENTS

     7.4.4.7.2.1. The IGF Messaging Platform shall provide an OAM facility
     adhering to a recognised MMI standard.

     7.8.4.2.2.2. From the OAM facility it shall be possible to interrogate,
     monitor, control and modify the IGF Messaging Platform environment.

     7.8.4.7.2.3. The IGF Messaging Platform shall support multi-access for OAM
     operations.

     7.8.4.7.2.4. The IGF Messaging Platform shall support an interface to the
     NODE-OS at the NMC/B-NMC and (remote) SAN.

     7.8.4.7.2.5. The NODE-OS IGF Messaging Platform interface shall enable
     interaction via a standardised and recognised management protocol and
     interface.

     7.8.4.7.2.6. From the NODE-OS, it shall be possible to perform operations
     (that can be done from a local Messaging Node) on multiple messaging nodes
     to ensure node consistency.

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          4. Overflow route choices

          5. Routes received from Network Service Control Databases

          6. Dynamic routing choices

     7.8.4.6.3.7 Signalling message routing options shall include:

          1. Message Transfer Part (MTP) routing for signalling messages by
             destination point code

          2. Direct routing on primary link set

          3. Optional shared load routing per Signalling Link Selection Code

          4. Restricted routing per Signalling Network Management

          5. Sequenced routing options per Signalling Network Plan and
             Structure.

          6. Signalling Connection & Control Part (SCCP) signalling message
             routing by Destination Point Code, Sub-system number, or Global
             Title

          7. TCAP (Transaction Capability Application Part) messages

          8. OMAP (Operations & Maintenance Application Part) messages

          9. Other high-level signalling application part messages as
             appropriate.

     7.8.4.6.3.8. Destination for calls will be determined by translation types
     shall include:

          1. MSSC translation

          2. Network Service Control database translation.

     7.8.4.6.3.9. Configuration management data contained in the VLR shall
     include:

          1. VLR control program updates

          2. MSRN tables

          3. TMSI tables

          4. Database sizes.

     7.8.4.6.3.10. Software management shall be incorporated into the switching
     element. This shall enable:

          1. The display of software properties for a selected network element
             to be supported.

          2. The operator to search for a specific software unit or program
             correction, among a selected set of network elements or in the
             complete network.

          3. Comparison among software revisions of a selected set of MSSC/VLR
             or the complete network shall be supported.

          4. The information stored in the NODE-OS database to be updated with
             the data of the MSSC/VLR.

          5. the operator to set certain filters in the tool properties that
             restrict the scope of the database retrieving operations.

          6. importing of files from input media.

          7. Handling of a suitable file store.

          8. Files to be loaded into the AXE file store, before activation of
             software units.

          9. software unit downloading (i.e. loading of software, testing and
             activation)

         10. Downloads of program correction command files shall be supported.

7.8.4.6.4. FAULT MANAGEMENT

     7.8.4.6.4.1. The NMS shall monitor the operational state of the MSSC/VLR.

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     7.8.4.6.4.2. Test procedures shall be available to test the MSSC/VLR
     transactions as well as the communication to the MSSC/VLR.

     7.8.4.6.4.3. Alarms managed include the following:

          1. MSSC/VLR Hardware fault alarms

          2. Signalling Link alarms

          3. Signalling Link Set alarms

          4. Trunk and Trunk group alarms

          5. PCM Circuit alarms

          6. Failure of GSM interface links to the MSSC and other systems

          7. Signalling failures on GSM interface links

          8. Excessive number of retries on GSM interface links

          9. Excessive number of failed SMS attempts

         10. Excessive number of failed HPN attempts

         11. Automatic switchovers in response to hardware failure

         12. Equipment failures without automatic switchovers

         13. Database Update alarms

         14. Automatic Database recovery initiated alarms

         15. Database threshold alarms

     7.8.4.6.4.4. The NODE-OS shall encompass an alarm adaptation facility. This
     shall encompass:

          1. The reception of the alarms from all MSSCs currently specified to
             be supervised in the NODE-OS information model.

          2. setting of mandatory attributes and several optional attributes in
             the Alarm Records.

          3. the forwarding of created Alarm records to the Fault Management
             Kernel.

          4. The conversion of an MSSC alarm printout to an Alarm Record.

          5. A database consistency check. This shall be made to update the MSSC
             alarm information in NODE-OS after error situations.

          6. The enabling/disabling of the AXE heartbeat supervision.

          7. The setting of a heartbeat supervision interval.

          8. The modification of the default values for mapping MSSC alarm class
             to perceived severity and to probable cause.

          9. The modification of the default values for mapping MSSC Alarm
             Category.

         10. The update of the Probable Cause value set for a specific Alarm
             Slogan.

         11. The update of the MSSC specific problem list (Alarm Slogans), of
             the MSSC Probable Cause List, and of the MSSC Event Type list.

         12. The addition/removal of conversion rules for one or more Alarm
             Slogans.

         13. The update of input parameters to conversion rules.

7.8.4.6.5. PERFORMANCE MANAGEMENT

     7.8.4.6.5.1. A variety of performance data will be generated by the MSSC
     for reporting purposes. The exact types and formats will depend on the
     switch chosen but reporting shall include:

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          3. The invoking of actions to automate routine correction procedures
             and to collect more information from the network (F/R).

          4. Suppression of secondary alarms upon confirmation of a primary
             alarm (F/R).

     7.8.4.3.9. (F/R) The NODE-OS shall have online documentation to support
     the operations and maintenance of the switched network.

7.8.4.4. PERFORMANCE MANAGEMENT

     7.8.4.4.1. The NODE-OS shall collect performance measurement data from the
     network elements and databases.

     7.8.4.4.2. It shall be possible to generate performance summary reports on
     a daily, weekly and monthly basis.

     7.8.4.4.3. The NODE-OS shall include an application that measures and
     analyses certain events in order to provide quality indicators related to
     the performance of the network.

     7.8.4.4.4. Performance management features shall include:

         1. performance data administration

         2. measurement data collection and storage

         3. performance data presentation

         4. call tracing facilities

         5. performance measurement data analysis reports

         6. configurable thresholds for Measurement of performance parameters

     7.8.4.4.5. It shall be possible to export performance reports and data
     into standard PC based applications for subsequent post-processing.

7.8.4.5. SECURITY MANAGEMENT

     7.8.4.5.1. The NODE-OS shall include compatible access security measures
     as have been specified for the LINK-OSS.

     7.8.4.5.2. The security features, mechanisms, procedures and objects shall
     be in accordance with GSM 12.03 where possible.

     7.8.4.5.3. The NODE-OS shall encompass a security facility to:

         1. Allow authority support to be used for administration of the
            authority database (i.e. that contains information on who is
            allowed to do what and when).

         2. Provide log administration support in order to administer log
            tables.

7.8.4.6. MOBILE SATELLITE SWITCHING CENTRE/VISITOR LOCATION REGISTER

7.8.4.6.1. GENERAL DESCRIPTION

     7.8.4.6.1.1. The MSSC is an exchange which performs all of the switching
     and signalling functions for mobile stations located in the geographical
     area designated as the SAN serving area. The switching element also
     encompasses the reporting of SS7 alarm messages as seen by the switch. The
     VLR is further co-located within the same switch as the MSSC.

     7.8.4.6.1.2. From a network management perspective the MSSC is managed via
     the NODE-OS.

7.8.4.6.2. GENERAL REQUIREMENTS

     7.8.4.6.2.1. The MSSC OAM shall manage its elements through views that
     present a geographical layout of the actual network.

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     7.8.4.6.2.2. The MSSC OAM shall comprise of a management platform that
     supports the Cellular Management System for GSM.

     7.8.4.6.2.3. The following functionalities shall be supported in the
     dialogue between the NODE-OS and the switch:

          1. connection and association handling;

          2. command and response communication to and from the switch,
             including

          3. spontaneous report reception;

          4. logging and authority control;

          5. file administration;

          6. file transfer;

          7. event logging;

          8. subscription handling, which is a general mechanism for
             distribution of files,

          9. delayed responses, and spontaneous reports received from the
             switch.

7.8.4.6.3. CONFIGURATION MANAGEMENT

     7.8.4.6.3.1. Through the NODE-OS it shall be possible to configure:

          1. MSSC/VLR equipment provisioning and assignment

          2. MSSC/VLR parameter selection

          3. MSSC/VLR equipment status selection (e.g., on-line or standby)

          4. remote trunk assignment and service assignment and restriction

          5. remote software overwrites and patches

          6. Remote configuration of signalling links terminating on the switch

          7. Remove bulk downloading of traffic and signalling routing
             information without disruption or degradation of service.

     7.8.4.6.3.2. Categories of message trunks that are to be managed shall
     include:

          1. Inter-SAN trunks

          2. Trunks from SANs to external switching elements such as:

          3. National Satellite Access (NSA) Gateways

          4. PSTN National Switching Centres

          5. Other ICO internal network.

     7.8.4.6.3.3. It shall be possible to manage various categories of
     signalling links which terminate on ICO MSSCs (e.g. signalling transfer
     points, gateways, earth stations, network service control databases, etc.)

     7.8.4.6.3.4. It shall be possible to manage various categories of
     signalling links among STPs and network service control (e.g. inter-STP
     signalling links, STP to network service control database links, links
     between the ICO network and interfacing network providers).

     7.8.4.6.3.5. It shall be possible to maintain routing configuration data
     for calls and signalling messages (e.g. direct routing, transit routing
     for calls, etc.).

     7.8.4.6.3.6. Call routing options shall include:

          1. Ordered route choices by call type (e.g. originating/terminating)

          2. Ordered route choices by class of service or travelling classmark

          3. Ordered route choices with restrictions invoked by Network
             Management

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          7. provide a command line interface in order that other applications
             can be interfaced to the command handling functions.

          8. log all commands sent and responses returned.

          9. set for a selected command a specific warning, confirmation or
             guiding text that will then be displayed to the user of the network
             element.

     7.8.4.2.3. A file transfer and management facility shall be provided to
     enable:

          1. File transfer from a connected network element to the NODE-OS.

          2. Various file transfer options to be supported (e.g. spontaneous
             file output, requested file output, notification-initiated
             requested file output).

          3. scheduling of file transfers

          4. The operator to define subscriptions to files on behalf of external
             devices (i.e. to make sure that files are sent from NODE-OS to the
             specific OS on a regular basis).

          5. Automatic post-processing of files received in the NODE-OS file
             store.

          6. The process of transferring a file independently of the user
             interface.

          7. On-going file transfers to be restarted, in case of a reboot of
             the NODE-OS.

          8. file transfers to remain after a system restart.

          9. A NODE-OS alarm to be issued for each file transfer that is
             unsuccessful.

          10.A confirmation to be given for each file successfully transferred.

     7.8.4.2.4. The NODE-OS shall encompass an application to create and manage
     the management information base. This application shall support the:

          1. creation, deletion and the property change of a Managed Object
             (MO).

          2. heartbeat supervision.

          3. alarm supervision.

7.8.4.3. FAULT MANAGEMENT

     7.8.4.3.1. The NODE-OS OAM interface shall forward alarm and event
     information from the network elements (hardware and software) to the
     higher level NMS.

     7.8.4.3.2. Alarm information shall include:

          1. MSSC/VLR alarms (including SS7 alarms from the switch).

          2. Messaging Platform alarms.

          3. HLR alarms.

          4. AuC alarms.

          5. EIR alarms.

          6. ILR alarms. (OPTION)

     7.8.4.3.3. Facilities shall be provided to allow the following from the
     NODE-OS OAM for fault information:

          1. collection and storage

          2. status monitoring

          3. viewing

          4. history handling

          5. definition

          6. correlation, filtering and re-classification

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          7. threshold setting

          8. forwarding.

          9. diagnostics and testing

     7.8.4.3.4. Basic fault management facilities shall be provided at the
     NODE-OS to allow:

          1. reception of alarms from various alarm adaptation units

          2. alarm logging

          3. updating of the current alarm context for any managed object
             affected by a received alarm.

          4. distribution of received alarms to a subscribing presentation
             function.

          5. information access for presentational purposes.

          6. Routing of alarms to different destinations. Specifically, routing
             to printers, files, mail and automatic acknowledgement function
             shall be supported.

     7.8.4.3.5. The NODE-OS shall support a graphical presentation function
     which shall provide:

          1. A Network Status presentation: this shall provide the status of
             the whole network or the status of a part of the network.

          2. A display of the list of the new and active alarms.

          3. the ability to get all available information about any of these
             alarms.

          4. the ability to read and write comments on alarms.

          5. the ability to acknowledge observation of new alarms.

          6. the ability for the operator to find information about active and
             old (cleared) alarms stored in the alarm log.

     7.8.4.3.6. The NODE-OS shall provide for alarm analysis. This shall
     support:

          1. Analysis of the alarms retrieved through an graphical user
             interface.

          2. Alarm analysis from the command line.

          3. Input from either a file or standard input format for routine
             program analysis.

          4. the extension of the analysis function.

          5. New analysis programs that perform new types of analysis.

          6. New alarm attributes that can be used in the analysis.

          7. The ability for the operator to view operation and maintenance
             documentation on a work station screen.

     7.8.4.3.7. (F/R) The NODE-OS shall support the conversion from text file
     alarms. This shall encompass:

          1. The reception of alarms from regular files or named pipes.

          2. The transformation of alarms into NODE-OS alarm records and the
             forwarding of alarm records to the LINK-OS.

          3. The size of the file for incoming alarms.

          4. The real time update of the list of known alarms.

     7.8.4.3.8. The NODE-OS shall encompass:

          1. The automatic filtering and (correlation (F/R)) of alarms.

          2. User expertise to be incorporated in the filtering and (correlation
             (F/R)) of alarms.

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          2. Network Operators who require to monitor and distribute data only.

7.8.3. SATELLITE CONTROL CENTRE

7.8.3.1. GENERAL REQUIREMENTS

     7.8.3.1.1. The NMC/SRMC shall receive satellite orbital data from the SCC
     for use in generating satellite resource management data.

     7.8.3.1.2. An interface between the SCC and NMC shall be provided for the
     forwarding of various SCC generated faults and alarm conditions. This
     interface shall also be used for the delivery of files containing
     information such as satellite orbital data to the NMS for subsequent
     distribution.

     7.8.3.1.3. The interface and protocols shall follow the industry standards

7.8.3.2. CONFIGURATION MANAGEMENT

     7.8.3.2.1. The NMS shall store and record data files passed from the SCC
     from a version controlled perspective.

7.8.3.3. FAULT MANAGEMENT

     7.8.3.3.1. The SCC OAM interface shall forward the raising and clearing of
     communication SCC alarms to the NMS. Critical SCC (space segment) alarms
     shall also be forwarded to the NMC.

7.8.3.4. PERFORMANCE MANAGEMENT

     7.8.3.4.1. None.

7.8.3.5. SECURITY MANAGEMENT

     7.8.3.5.1. None.

7.8.4. NODE OPERATIONS SYSTEM

7.8.4.1. GENERAL REQUIREMENTS

     7.8.4.1.1. The NODE-OS (encompassing in the TMOS system) shall handle all
     network management functionality relating to the network elements directly
     under its control. Only alarm information is forwarded from the NODE-OS
     (and its lower network elements) to the higher level NMS.

     7.8.4.1.2. The NODE-OS architecture shall support:

          1. centralised MSSC/MM OAM at the NMC and back-up NMC with control at
             the NMC and the back-up NMC.

          2. monitoring information shall be transmitted to both OAM systems in
             the centralised option.

          3. a semi-distributed architecture with MSSC/MM OAM at the NMC, B-NMC
             and specified SANs.

          4. a fully distributed architecture with OAM at every SAN.

     7.8.4.1.3. There shall be no functionality impact when migrating away from
     the initial centralised architecture.

     7.8.4.1.4. For the purposes of this requirement specification, the NODE-OS
     shall encompass the management of the following network elements:

          1. MSSC which includes the VLR and SS7 switch based reported faults

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          2. Messaging Platform including voice/fax messaging and Short
             Messaging Service Centre (SMSC)

          3. HLR

          4. AuC

          5. EIR

          6. ILR

          7. IN (F/R)

     7.8.4.1.5. Management functions, functional entities and objects required
     for the VLR/HLR/MSSC/EIR/AUC shall comply with GSM 12.02 as far as is
     possible.

     7.8.4.1.6. The NODE-OS OAM shall provide access to backup and restoration
     procedures associated with the managed elements.

     7.8.4.1.7. The NODE-OS OAM shall provide the following software upgrade
     facilities:

          1. download new versions of software from the NODE-OS.

          2. replace current version software with minor updates, if needed
             (e.g. error fixes, etc.). In the event of a complete replacement
             of the current software with a new or previous version then this
             will be ordered from the NODE-OS using data stored by the switch.

          3. extract existing software version information for the three
             versions of software.

     7.8.4.1.8.  The GSM Series 12 shall be applied to the maximum extent
     possible for interoperability purposes. This shall include aspects such as
     managed object class definitions, class hierarchies and standard network
     management functionality.

     7.8.4.1.9.  Relevant TMN standards as called up by the GSM Series 12
     standards shall be applied to the maximum extent possible.

     7.8.4.1.10. Relevant CCITT X.700 standards as called up by the GSM Series
     12 standards shall be applied to the maximum extent possible.

     7.8.4.1.11. Objects shall be specified using standard GDMO definitions
     where possible for managed objects.

     7.8.4.1.12. The MMI shall follow recognised industry standards.

     7.8.4.1.13. The NODE-OS shall manage the satellite/cellular interworking
     function and provide fraud detection information from a network management
     perspective as described in Section 4.8 and 5.5, respectively.

7.8.4.2. CONFIGURATION MANAGEMENT

     7.8.4.2.1. GSM 12.06 shall be adopted where possible for network and
     service configuration management.

     7.8.4.2.2. A command handling application shall be available to enable the
     operator to:

          1. open a command session window for sending commands to an external
             network element and for presentation from the network element.

          2. display delayed responses in a separate window (i.e. responses to
             a command that arrives at a later stage).

          3. receive and display in a separate window spontaneous reports (i.e.
             events initiated by an network element).

          4. create a commend file (i.e. sequence of commands used in the
             communication with an network element).

          5. support shell-scripts in a way similar to the command files.

          6. activate command files and shell scripts at a specified time.

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     7.8.1.4. The OAM interfaces in this section have been divided up based on
     the various network elements. This does not imply that each network element
     will have its own OAM interface. For example the TNM OAM interface may
     handle both the TNM and DCN.

     7.8.1.5. The ICO system is to be designed with both expandability and
     interoperability in mind. Therefore, the NMS architecture employed must be
     capable of allowing additional network elements to be added with the
     minimum of network interruption. For these reasons then individual network
     element OAMs shall adhere to the following general requirements:

     7.8.1.6. Any communication interfaces, protocols, man machine interfaces,
     operating systems, databases, programming languages or
     development/application tools required for the network element OAM shall
     have the following basic features (as appropriate):

          1. be controlled by an industry standard.

          2. be commercially available with product support.

          3. be consistent with open systems concepts.

          4. be supported by major hardware and software platforms.

          5. be multiprocessing.

          6. be compatible between the client and server.

          7. be compatible with the NMC and SAN network management structure as
             far as is practical.

     7.8.1.7. Any exceptions to these (e.g. due to the re-use of existing
     equipment, etc.) shall be highlighted to ICO. For new elements then any
     exceptions will need to be approved by ICO.

     7.8.1.8. In general, separate OAM MMIs should be minimised (i.e. integrated
     into the SAN MMI). However, if a separate MMI is produced, then it shall be
     possible to initiate from the main SAN-OSS workstations.

7.8.2. SATELLITE RESOURCE MANAGEMENT CENTRE

7.8.2.1. GENERAL REQUIREMENTS

     7.8.2.1.1. The NMS shall encompass:

          1. SRMC equipment, associated software, processing, monitoring and
             control.

          2. Error free and confirmed resource management data distribution.

     7.8.2.1.2. The SRMC OAM interface shall provide access to backup and
     restoration procedures associated with the SRMC equipment.

     7.8.2.1.3. The SRMC OAM interface shall provide the following software
     upgrade facilities:

          1. download new versions of software from the NMS

          2. replace the current version of software with the new version.

          3. replace the current version of software with the previous version.

          4. extract existing software version information for the three
             versions of software.

7.8.2.2. CONFIGURATION MANAGEMENT

     7.8.2.2.1. The SRMC OAM interface shall provide a facility for the SRMC to
     supply status to the NMS.

     7.8.2.2.2. The SRMC OAM interface shall forward SRMC events to the NMS.

     7.8.2.2.3. The SRMC OAM interface shall allow the NMS to:

          1. configure SRMC event parameters.

          2. initiate archiving of the SRMC event data.

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          3. purge SRMC event data.

          4. access SRMC event data.

     7.8.2.2.4. The SRMC OAM interface shall provide access to parameters
     requiring configuration by the NMS.

7.8.2.3. FAULT MANAGEMENT

     7.8.2.3.1. The SRMC OAM interface shall forward the raising and clearing of
     SRMC alarms to the NMS, including the following:

          1. Communication alarms.

          2. Equipment alarms.

          3. Processing error alarms.

     7.8.2.3.2. Each SRMC alarm forwarded to the NMS shall contain:

          1. an object identifier unique to the SRMC.

          2. date and time of when alarm was raised or cleared.

          3. alarm description.

          4. alarm severity.

          5. source of the alarm for the purposes of fault location.

     7.8.2.3.3. The SRMC OAM interface shall allow the NMS to:

          1. configure SRMC alarm parameters.

          2. initiate archiving of the SRMC alarm data.

          3. purge SRMC alarm data.

          4. access SRMC alarm data using filters supplied by the NMS.

     7.8.2.3.4. In the event of single or multiple satellite and/or SAN failure,
     the NMS shall have the capability to, within a 2 to 3 hour time-frame:

          1. re-run SRMC software to regenerate Burst-time frequency plans and
             channelisation plans for the available system.

          2. [distribute and configure the system with the updated BTFPs and
             channelisation plans.]

7.8.2.4. PERFORMANCE MANAGEMENT

     7.8.2.4.1. The SRMC OAM interface shall allow the NMS to:

          1. configure SRMC performance parameters.

          2. initiate archiving of the SRMC performance data.

          3. purge SRMC performance data.

          4. access SRMC performance data using filters supplied by the NMS.

          5. configure periodic transfer of SRMC performance data to the NMS
             using filters.

7.8.2.5. SECURITY MANAGEMENT

     7.8.2.5.1. The SRMC OAM interface shall provide access control facilities
     to all SRMC OAM interface functionality. As a minimum, the SRMC shall
     distinguish between two level user categories:

          1. Network Engineer/Planners responsible for the verification and
             management of the planning process.

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7.4 PERFORMANCE MANAGEMENT

7.4.1. REQUIREMENTS FOR NEW ELEMENTS

     7.4.1.1. Section 7.4 covers general functionality to be located at the
     SAN-OSS and NMC. the functionality provided through the individual OSMs is
     described in Section 7.8. However, in the case of the development of new
     elements it is recommended that the requirements of this Section be taken
     into account.

7.4.2. GENERAL

     7.4.2.1. The NMS shall allow the operator to access performance management
     functions as defined in the OAM interface specifications in Sections 7.8.

     7.4.2.2. The NMS shall allow the operator to set thresholds for each
     performance criterion.

     7.4.2.3. The NMS shall raise an alarm whenever a performance threshold has
     been exceeded.

     7.4.2.4. The NMS shall be able to support Trend Analysis.

     7.4.2.5. The NMS shall routinely produce a top level performance report
     summarising QoS performance and network criteria (e.g. equipment
     availability, trouble tickets processed etc.)

7.4.3. NETWORK TRAFFIC MANAGEMENT

     7.4.3.1. NMS shall support user traffic supervision (i.e. to have a clear
     overview of the network alarms status from a traffic management point of
     view), traffic analysis (i.e. to analyse the cause and origin of traffic
     disturbances detected by the traffic supervision function), traffic control
     (i.e. to re-route and to restrict traffic in the network) for the elements
     within the ICONET for which ICO has full control (e.g. switch, TNM, SBS,
     etc.).

7.5 SECURITY MANAGEMENT

7.5.1. REQUIREMENTS FOR NEW ELEMENTS

     7.5.1.1. Section 7.5 covers general functionality to be located at the
     SAN-OSS and NMC. The functionality provided through the individual OAMs is
     described in Section 7.8. However, in the case of the development of new
     elements it is recommend that the requirements of this Section be taken
     into account.

7.5.2. GENERAL

     7.5.2.1. NMS security shall encompass access control measures to be
     provided by the NMS to manage, control and monitor access to the DCN and to
     the ICONET via the NMS (namely the NMC, LINK-OS, NODE-OS, SAN-OS and
     individual network elements).

     7.5.2.2. Within the NMS facilities shall be provided at the respective MMIs
     to enable the creation, deletion and configuration of operator user groups,
     user names and individual passwords.

     7.5.2.3. Individual access to the NMS shall be user and password
     controlled.

     7.5.2.4. It shall be possible to establish user groups (e.g. administrator,
     supervisor, general operator, etc.) with specific privileges in order to
     control group and/or individual access to specific operations, functions,
     configurations and applications.

     7.5.2.5. It shall be possible for authorised personnel to delete individual
     user access (e.g. when a staff member leaves, etc.).

     7.5.2.6. The password mechanism shall incorporate a facility for the
     automatic ageing.

     7.5.2.7. The NMS shall raise an alarm to the appropriate management layer
     for failed log-in attempts which exceed a pre-set rate.

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     7.5.2.8. All user accesses to the NMS shall be logged. Where possible,
     details recorded shall include the user identification and point of access.

     7.5.2.9. During a log-in session, the system shall record the start/end
     times and the elements accessed (in the case where user privileges allow
     immediate access to a number of network elements).

     7.5.2.10. If operators or the NMS detects an unauthorised access or attempt
     then the NMS system shall:

          1. Raise an alarm to the appropriate management layers.

          2. Attempt to lock out the work station. If lock-out is possible then
             it shall be possible for an operator with the necessary privilege
             to unlock it at a later time.

          3. Record all available information on the call/caller and disconnect
             the call for dial-in connections.

     7.5.2.11. At each NMS, computer routine security and system administration
     facilities shall be available. Typically, this shall include:

          1. Guarding against file and disk computer viruses which are
             commercially recognised.

          2. Monitoring, re-formatting and repairing disk space (e.g. due to
             file fragmentation, etc.).

          3. Protecting individual files and directories.

          4. Recording last directory and file accesses through the applications
             program.

     7.5.2.12. It shall be possible for a User to undertake a NMS security audit
     trail for a specified:

          1. User Group

          2. User

          3. Time period.

     7.5.2.13. The NMS shall produce a routine report covering security aspects
     (e.g. number of log-ins, viruses detected, security alarms, etc.).

     7.5.2.14. The NMC shall provide key management, control and distribution
     for use in the DCN. The key management shall be provided by a highly secure
     portion of the NMC. (F/R)

7.6. ACCOUNTING MANAGEMENT

     7.6.1. There are no NMS requirements for Accounting Management except for
     the receipt of CDR files, when required, from the ADC.

7.7. SECTION NOT USED

7.8. OPERATIONS AND MAINTENANCE INTERFACE REQUIREMENTS

7.8.1. GENERAL

     7.8.11. this section describes the functionality which is to be made
     available to the NMS by the various network elements within the ICO system.

     7.8.1.2. Included for each OAM are the minimum acceptable parameters that
     will be collected from a Fault, Configuration and Performance Management
     perspective.

     7.8.1.3. In practice the functionality made available to the various NMS
     operator stations, through Security Management of the NMS, will vary
     depending on the operational requirements of each station. The NMC, for
     example, will require more of a global view of the system whereas at the
     SAN a more detailed view is required for the day to day maintenance and
     operations of network elements.

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     7.3.2.3. Alarms shall be categorised into four levels of severity;
     Critical, Major, Minor, Warning.

     7.3.2.4. The NMS shall be responsible for assigning alarm severities to
     alarms generated by network elements.

     7.3.2.5. Each alarm shall have the following states:

          1. raised.

          2. cleared.

          3. acknowledged by the operator.

     7.3.2.6. The NMS shall have a facility for acknowledging multiple alarms
     using a single operation.

     7.3.2.7. The following sets of alarms shall be highlighted to the operator:

          1. new alarms which have been present in the system for a period of
             time as specified by the operator.

          2. alarms which have been acknowledged, but not been cleared for a
             minimum period of time as specified by the operator.

     7.3.2.8. It shall be possible to bring alarms to the attention of the
     Operator via various means such as (flashing text/icons, audibly, etc.).

     7.3.2.9. It shall be possible for the NMS to automatically upgrade the
     severity of alarms (alarm escalation), depending on factors such as
     persistence. The operator shall also have the capability to manually mark
     alarms for escalation.

     7.3.2.10. All alarms shall contain the following information:

          1. unique object alarm identifier.

          2. date and time of when the alarm was raised/cleared/acknowledged.

          3. alarm description.

          4. source of the alarm.

          5. fault location details.

     7.3.2.11. All alarm state changes shall be logged to an alarm history
     database.

     7.3.2.12. The NMS shall allow the operator to examine the alarm database
     using search criteria such as:

          1. range of times.

          2. source of alarms.

          3. specific alarm.

     7.3.2.13. To reduce the amount of traffic between sites the NMS shall allow
     the operator to specify alarm filters.

     7.3.2.14. The NMS shall provide a GUI style editor to allow the operator
     (with the necessary authorisation) to change:

          1. alarm threshold definitions.

          2. alarm filtering between sites.

          3. alarm attentional and reporting attributes (e.g. enable/disable
             beeping, switch on/off flashing, enable/disable reporting to event
             log, enable/disable reporting to printer/file, etc.).

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7.3.3. ALARM ANALYSIS

     7.3.3.1. The NMS shall be able to determine the fault location based on
     alarms raised, the fault location information contained within each alarm
     and from the diagnostics test processes in place.

     7.3.3.2. Fault location shall isolate the fault to a replaceable unit.

     7.3.3.3. The identified unit shall be linked to a physical location.

     7.3.3.4. The NMS shall support the establishment of alarm thresholds
     whereby the operator can configure the system to generate a higher level
     alarm based on a number of specified lower level alarms.

     7.3.3.5. The NMS shall perform alarm correlation at the NMC and SAN-OSS to
     identify faults and service affecting conditions within the system.

     7.3.3.6. The result of the alarm analysis shall be any or all of the
     following:

          1. an action to initiate automatic recovery.

          2. an audible alert at a specified location.

          3. an additional alarm which can initiate additional actions.

          4. generation of a trouble ticket.

7.3.4. TROUBLE TICKET MANAGEMENT

     7.3.4.1. The NMS shall provide a facility for the operator to generate
     Trouble Tickets for detected faults or Customer/Operator complaints.

     7.3.4.2. Each trouble ticket shall be tracked by recording details such as:

          1.  Trouble Ticket number

          2.  Day and time of alarm/reported fault

          3.  Location of alarm/reported fault

          4.  Equipment identification

          5.  object name

          6.  Probable cause

          7.  Description

          8.  severity

          9.  Processing priority

          10. Issued by

          11. Assigned to

          12. Primary contact

          13. Secondary contact

          14. Opened date/time

          15. Dispatched date/time

          16. Resolved date/time

          17. Closed date/time

     7.3.4.3. Trouble ticket reports detailing all available information
     associated with that ticket shall be generated at the specified reporting
     period while the trouble ticket remains active or on an operators request.
     Trouble Tickets may be generated manually or automatically. Attachments may
     be added to Trouble Tickets.

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              2. status information from network elements.
              3. event messages from network elements.
              4. information gathered from periodic polling of network
                 elements.

         7.2.2.11. The configurable data available to the NMS shall include:

             1. NMS parameters such as alarm thresholds, reporting periods.

             2. database maintenance functions.

             3. operating parameters for each network element.

             4. quality of service parameters.

         7.2.2.12. The status data available to the NMS shall include:

             1. versions of network element software.

             2. alarms.

             3. events.

             4. network status.

         7.2.2.13. The NMC shall support a scheduler to plan and co-ordinate
         long-term network changes.

         7.2.2.14. The NMC and SAN-OSS shall support scheduled configuration
         changes where the change is deferred to a selected time. The change
         process shall be as follows:

             1. The NMC NMS shall centrally control the scheduling of planned
                network configuration changes. Hence, the master schedule shall
                be maintained and stored by the NMC.

             2. It shall be possible to submit a change to the NMC in order that
                it can be scheduled via electronic or manual means.

             3. The NMC NMS shall notify in advance, the relevant SAN-OS of
                planned scheduling changes which are applicable to that site. A
                record of this distribution shall be maintained at the NMC.

             4. For each scheduled change, the following details shall be logged
                at the NMC:

                a. Date/time when scheduled change was issued.

                b. Date/time when scheduled change is planned to take place.

                c. Description of the change

                d. Network element(s) involved in the change

                e. Name of the authoriser

                f. Reason why a scheduled change cannot be performed

                g. Date/time when change was performed

                h. Confirmation/result of change

                i. Name of operator or software function initiating the
                   change

             5. The SAN-OS shall record receipt of the schedule notification
                from the NMC.

             6. The SAN-OS shall be responsible for informing the NMC NMS when
                scheduled changes cannot be satisfied within the time scales
                set (i.e. due to equipment failure, higher priority activities,
                etc.) such that re-scheduling can be undertaken.

             7. The SAN-OS shall be responsible for instructing the appropriate
                network element(s) to undertake the change (this is likely to be
                a manual process).

             8. The network element should record each configuration change made
                as per reqt. 7.2.2.19.

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          9. The SAN-OS shall have the capability to request configuration
             change event reports from the network elements.

          10. The San-OS shall be responsible for informing the NMC NMS of the
              outcome of each scheduled change.

     7.2.2.15. The NMS shall perform validation checks on configuration changes
     before making the change.

     7.2.2.16. The NMS (pre/post) validation of configuration requests shall
     include receiving information on :

          1. security checks.

          2. parameter range checks.

          3. checks to determine if the state change is possible given the
             current state of the network element being configured.

     7.2.2.17. The NMS shall handle any return status sent by the network
     element as a result of the configuration change.

     7.2.2.18. Each configuration change shall generate an event in the event
     log containing:

          1. name of operator or software function initiating the change.

          2. name of authoriser

          3. date and time of issuing the change.

          4. date and time of actioning the change.

          5. description of the change.

          6. confirmation / result of change.

     7.2.2.19. The NMS shall allow the operator to examine configuration changes
     within the event log based on:

          1. an interval of time.

          2. a set of network element(s).

          3. changes made by a specific operator.

     7.2.2.20. The NMS shall be able to assign priorities to each type of
     configuration change.

     7.2.2.21. The NMS shall allow additional installed, dimensioned and
     configured network elements to be added to the network without having to
     shutdown the system.

     7.2.2.22. The NMS shall provide a facility for maintaining time of day
     synchronism between network elements which require knowledge of system time
     of day.

7.3. FAULT MANAGEMENT

7.3.1.    REQUIREMENTS FOR NEW ELEMENTS

     7.3.1.1.  Section 7.3 covers general functionality to be located at the
     SAN-OSS and NMC. The functionality provided through the individual OAMs is
     described in Section 7.8. However, in the case of the development of new
     elements it is recommended that the requirements of this Section be taken
     into account.

7.3.2.    GENERAL

     7.3.2.1.  The NMS shall collect alarms generated by the network elements to
     determine device failures and/or service affecting conditions.

     7.3.2.2.  The NMS shall be able to monitor and report miscellaneous alarm
     conditions at each site, such as temperature, humidity, building alarms.

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     7.1.11.3.6. A minimum of 90 days of event log information shall be stored
     [on-line] at the NMC.

     7.1.11.3.7. The NMC NMS shall be able to serve a minimum of 8 concurrent
     operator users.

     7.1.11.3.8. The system response time to the NMC operator on any operator
     request shall be less than 10 seconds excluding the following:

          1. network element execution time;

          2. intersite data transfer time;

          3. request for shutdown/start-up of devices;

          4. requests that require retrieval and/or processing of large amounts
             of data.

     7.1.11.3.9. In the case of an exception then a response shall be provided
     back to the operator within 5 seconds with confirmation that the request
     has been received and is being actioned.

     7.1.11.3.10. NMC-NMS shutdown/start-up shall not exceed 10 minutes under
     normal working conditions.

7.1.12. SIZING

     7.1.12.1. The NMS shall provide the required functions and be sized for all
     equipment and traffic capacity of the initial installation, and shall
     provide a capability for growth as detailed in the Sizing Requirements
     (Section 9.3).

7.1.13. EXPANDABILITY

     7.1.13.1. The NMC and SAN-OSS shall support the addition of network
     elements for network expansion as specified in 6.23 and 7.8.

7.1.14. OPERATIONAL TESTING CAPABILITIES

     7.1.14.1. The NMS shall have the capability and necessary facilities and
     tools to undertake diagnostic tests on the detection of a failure or
     potential problem. [This shall encompass the ability to set up end-to-end
     test calls (as specified in ICO services requirements) between two or more
     parties and monitoring/logging all traces through the various subsystems.

     7.1.14.2. This feature shall use the logging data to provide an integrated
     view of the call trace and validate the functioning of the ICO System (a UT
     on the S-Band capability at the SAN shall be capable of being used for the
     test call). For testing purposes it shall be possible to initiate a
     handover from the NMS.]

7.1.15. NMC AND BACK-UP NMC PLATFORM

     7.1.15.1. Systems intended for the NMC (e.g. LINK-OS, SRMC, NODE-OS) shall
     adopt an open systems architecture in order to ensure later development,
     upgrades and reconfigurations can be encompassed with minimal impact.

     7.1.15.2. The NMC hardware shall employ a distributed client-server
     architecture, such that additional clients can be added at a later date. It
     shall further be possible to add additional workstations to the system to
     cater for additional operators (minimum of 10) without any redevelopment
     work.

     7.1.15.3. Hardware sizing and performance rating shall be established
     taking into account the need for future expandability which are reflected
     in the ICO 10 year Traffic Model. This shall encompass the processors, disk
     system, ports, workstations and data networks.

     7.1.15.4. Maximum use shall be made of commercial off-the-shelf software
     provided that:

          1. The product fits within the network management approach being
             adopted and is fit for purpose.

          2. The product is suitably documented

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          3. The product is sufficiently supported.

     7.1.15.5. Should non-proprietary products be adopted then this shall
     require ICO approval before being used.

     7.1.15.6. When new software is to be developed then this shall adopt an
     object oriented methodology whenever possible. Tools and aids (e.g.
     programming languages, developer tool kits, etc.) shall be recognised and
     well supported.

7.2. CONFIGURATION MANAGEMENT

7.2.1. REQUIREMENTS FOR NEW ELEMENTS

     7.2.1.1. Section 7.2 covers general functionality to be located at the
     SAN-OSS and NMC. The functionality provided through the individual OAMs is
     described in Section 7.8. However, in the case of the development of new
     elements it is recommended that the requirements of this Section be taken
     into account.

7.2.2. GENERAL

     7.2.2.1. This section covers general configuration management functionality
     to be located at the SAN-OSS and NMC.

     7.2.2.2. An event, as referenced in this section, is defined to be a
     message issued by a network element to the NMS as a result of a state
     change or action within the element. Events are used by the NMS as a method
     of obtaining real-time information from the network which supplements the
     periodic status messages. Alarms are also sent as a result of state changes
     but differ in that they:

          1. result from erroneous state changes.

          2. remain active until the corresponding clear alarm is issued from
             the network element.

     7.2.2.3. Configuration data maybe divided into long and short term changes.
     The long term configurable items maybe file based and are defined at the
     time of equipment installation or during the expansion of existing
     facilities. This data is classified as dimensioning data. Shorter term
     configurable items have fields associated with them on MMI views which
     allows the operator to make changes to the system while it is operational.
     The requirements in this specification refer to non dimensioning
     configuration data unless dimensioning data has been specifically referred
     to.

     7.2.2.4. The status which is returned from network elements does not
     represent state changes as is the case with events and alarms, but provides
     the current state of the network element in terms of all of the parameters
     associated with that network element. This may include parameters such as
     mode or frequency.

     7.2.2.5. The NMS shall provide facilities for the operator to modify NMS
     dimensioning and non-dimensioning data.

     7.2.2.6. All Operator actions for Configuration Management shall be logged.

     7.2.2.7. It shall be possible to initiate NMS configuration management
     processes from both the NMC and SAN-OSS.

     7.2.2.8. The NMS shall use schematic representations of the ICO network to
     graphically reflect the current state of the network and network elements.

     7.2.2.9. The NMS shall provide views of the network at a number of levels
     including:

          1. an overall view of the network showing network element
             interconnections.

          2. views of specific network elements and connections.

     7.2.2.10. The state of network elements shall be determined from the
     following information:

          1. alarm state changes from network elements.

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          1. be designed so as to maximise the ease of use and operation of the
             system bearing in mind the above roles.

          2. Permit error tracing, error logging and error recovery.

          3. Permit access to and the configuration of all SRMC functionality.

          4. Display information in a concise and informative manner.

7.1.8.4. NODE-OS MMI

     7.1.8.4.1. The NODE-OS shall be used within the NMC to manage the switching
     network and the mobility management databases. Hence, two levels of
     operation are envisioned:

          1. Controller - Front line operator responsible for the real time
             monitoring and controlling of the network.

          2. Switch Engineer - Responsible for the network planning, analysis
             and investigations.

     7.1.8.4.2. The details presented shall be designed bearing in mind these
     two user groups.

     7.1.8.4.3. The NODE-OSS MMI shall:

          1. Alert the operator when alarm conditions occur.

          2. Give the operator access to further information in order that
             operational decisions can be taken (e.g. network
             re-configurations).

          3. Provide a facility to enable actions or commands to be issued.

7.1.9. BACKUP AND RESTORATION

     7.1.9.1. The NMS shall support the following automatic data backup
     procedures:

          1. Full backups of data and system software.

          2. Incremental backups between the full backups of data changed since
             the last backup procedure where applicable.

     7.1.9.2. The timing of automatic data backup procedure initiation shall be
     configurable by the NMS operators.

     7.1.9.3. All backups and archives shall be transferred to media located at
     the same site as the system component containing the data. However, the
     architecture should not exclude the provision of eventual off-site storage
     for added security.

     7.1.9.4. The NMS shall provide initiation commands for restoration
     functionality for recovery of data from full and where provided incremental
     backups.

     7.1.9.5. The NMS shall allow restoration of backup data from storage media
     at the local and remote sites.

     7.1.9.6. Each site shall be able to maintain backup procedures in isolation
     of other sites.

7.1.10. RELIABILITY AND AVAILABILITY

     7.1.10.1. Each SAN-OSS shall have an availability of 99.99%.

     7.1.10.2. Each NMC shall have an availability of 99.99%.

     7.1.10.3. The MTTR shall be taken as 4 hours when on  site spares are
     offered; this assumes that qualified personnel are already on site.

     7.1.10.4. The MTTR shall be taken as 168 hours when no on site spares are
     offered.

     7.1.10.5. From the initiation of take-over, the backup NMC device at the
     Backup NMC site shall assume the role of the NMC in 10 minutes or less.

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7.1.11. PERFORMANCE

7.1.11.1. GENERAL

     7.1.11.1.1. The NMC NMS/SAN-OSS computing architecture shall be designed
     to allow for expansion of processing capabilities into the future.

     7.1.11.1.2. The NMC NMS/SAN-OSS system performance shall not be compromised
     by the addition of new SANs and new satellites in accordance with the ICO
     Traffic Model.

     7.1.11.1.3. A warning facility shall be available to inform the operator
     when spare disk capacity is low. It shall be possible to set the threshold
     for this type of reporting (e.g. disk 75% full).

7.1.11.2. SAN-OSS PERFORMANCE

     7.1.11.2.1. The transaction processing capability of the SAN-OSS is
     dependent upon the average event rates of the network elements. These
     rates shall be confirmed at PDR. However, at this point the SAN-OSS shall
     initially have a minimal processing capability of 2 events/second under
     normal working conditions.

     7.1.11.2.2. The SAN-OSS shall have the capability to queue excess event
     messages (awaiting processing) for a minimum period of 30 minutes, under
     normal working conditions.

     7.1.11.2.3. The time taken to report a detected tagged network element
     alarm (that affects network operations) to the network display at the
     SAN-OSS shall not exceed 20 seconds.

     7.1.11.2.4. A minimum of 30 days of event log information shall be stored
     [on-line] at the SAN-OSS.

     7.1.11.2.5. The SAN-OSS shall be able to serve a minimum of 8 concurrent
     operator users.

     7.1.11.2.6. The system response time to the SAN operator on any operator
     request shall be less than 10 seconds excluding the following:

          1. network element execution time;

          2. intersite data transfer time;

          3. request for start-up/shutdown of devices;

          4. requests that require retrieval and/or processing of large amounts
             of data.

     7.1.11.2.7. In the case of an exception then a response shall be provided
     back to the operator within 5 seconds with confirmation that the request
     has been received and is being actioned.

     7.1.11.2.8. SAN-OSS shutdown/start-up under normal working conditions
     shall not exceed 10 minutes.

     7.1.11.2.9. The SAN-OSS shall be able to run and store data in isolation
     from the NMC/BNMC for up to 48 hours.

7.1.11.3. NMC NMS PERFORMANCE

     7.1.11.3.1. The NODE-OS shall have the capability to process up to 1
     event/second under normal working conditions.

     7.1.11.3.2. The NODE-OS shall have the capability to process 5000 alarms
     per day on average.

     7.1.11.3.3. The NMC NMS (Link-OS) shall have the capability of processing
     a minimum of [15] events/second under normal working conditions.

     7.1.11.3.4. The NMC NMS shall have a capability to queue excess event
     messages (awaiting processing) for a minimum of 30 minutes under normal
     working conditions.

     7.1.11.3.5. The time taken to report a detected tagged network element
     alarm (that affects network operations) to the network display at the NMC
     shall not exceed 30 seconds under normal conditions.

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     7.1.8.1.3. Within the MMI it shall be possible to distinguish between
     different user types in order to dictate the MMI functionality that is to
     be made available. For example, an Operator within the NMC may be
     allocated a more reduced version of the SRMC MMI focused towards
     monitoring and control whereas the network planner will be given all the
     engineering rights to change the planning process or analyse the data.

     7.1.8.1.4. All MMIs shall provide system administration functions for the
     logical and/or physical area being managed.

     7.1.8.1.5. MMI code developed shall conform to recognised graphical user
     interface industry standards (e.g. Motif/X11, Windows, etc.). In general,
     standard windowing constructs such as multiple windows, tiling, icons,
     pop-ups, alerts, etc. shall be encompassed.

     7.1.8.1.6. The MMI shall encompass the WYSIWYG (What You See Is What You
     Get) approach and employ the point-and-click approach. However, the MMI
     shall be [fully] controllable from the keyboard to guard against a failure
     in the pointing device.

     7.1.8.1.7. Within the NMC it shall be possible to access the different
     systems required to fulfill the normal network management operations (e.g.
     SAN-OSS, NODE-OS, SRMC, etc.) from a single workstation and through a
     single, uniform top level MMI. This MMI level shall be referred to as the
     "Overall NMC MMI".

     7.1.8.1.8. The Overall NMC MMI shall distinguish between two key elements:

          1. The network status displays which shall present the real time
             status of the network.

          2. The controller workstation which shall activate various
             applications and be used for operator commanding.

     7.1.8.1.9. From the Overall NMC MMI the Controller shall be able to
     activate the following MMI levels:

          1. LINK-OSS

          2. SRMC

          3. NODE-OSS

     7.1.8.1.10. The NMC MMI shall be produced in liaison with ICO during the
     requirements and design phases.

     7.1.8.1.11. The NMS MMI Style Guide shall be developed and agreed with ICO.
     In addition, an NMC MMI Document shall be produced to define the actual
     screen layouts.

     7.1.8.1.12. All MMIs shall support operator features such as on-line help
     information, system administration functions, display settings, etc.

     7.1.8.1.13. The NMS MMIs shall support a standard Graphical User Interface
     (GUI) such as X-Windows, Motif or Windows.

     7.1.8.1.14. The NMS MMI shall follow the concepts of the GUI style
     guidelines and in line with ICO Operational concepts. This style guide
     shall be agreed with ICO.

     7.1.8.1.15. The NMS MMI shall support multiple active windows.

     7.1.8.1.16. The NMS MMI shall supply on-line help for system functions.

     7.1.8.1.17. It shall be possible for authorised operators to modify the
     on-line help messages.

     7.1.8.1.18. The NMS MMI shall support user specified window manager
     preferences.

     7.1.8.1.19. English shall be the user interface language for the NMS MMI.

     7.1.8.1.20. The NMS MMI shall allow for the user configuration of window
     parameters.

     7.1.8.1.21. The NMS MMI shall provide graphical views of the network.
     These views shall be hierarchically linked to enable movement from one
     view to another.

     7.1.8.1.22. The NMS MMI top level view shall have a world map which can
     display a near real-time representation of the following user selected
     information.

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          1. location and alarm status of the NMC sites.

          2. location and alarm status of the SAN sites, ADC, SCC sites and
             [OT&DF]. This information may be transported by means other than by
             the TNM or DCN.

          3. intersite links and their status.

     7.1.8.1.23. The NMS MMI shall support an Operator configuration facility
     during network expansion for the addition of new Network Elements.

     7.1.8.1.24. A change in the reporting status of a network element (e.g.
     normal to alarm condition) shall be visually communicated by changing the
     colour of the representative screen object, this colour will align with
     the current severity of the condition.

     7.1.8.1.25. The NMS MMI shall provide a graphical legend for map symbols
     and icons.

     7.1.8.1.26. The NMS MMI shall provide an alarm viewer for viewing current
     alarms and alarm history.

     7.1.8.1.27. The NMS MMI alarm viewer shall allow for displaying different
     alarm severities.

     7.1.8.1.28. The NMS MMI shall provide a current alarm summary window which
     provides a count of alarms for each alarm severity.

     7.1.8.1.29. The NMS MMI shall provide an alarm description lookup to
     provide additional information concerning each alarm and advice on
     recovery action

     7.1.8.1.30. The NMS MMI shall be designed with consideration for
     Operators' Health, Safety and comfort

     7.1.8.1.31. It shall be possible to login to any SAN MMI system from the
     NMC.

     7.1.8.1.32. The MMI shall include features to enable an authorised user to
     efficiently set-up, halt and debug the system operation.

7.1.8.2. LINK-OS MMI

     7.1.8.2.1. The style of the LINK-OS MMI shall conform with that of the
     higher level Overall NMC MMI.

     7.1.8.2.2. The LINK-OS MMI shall be used to consolidate the operation and
     maintenance across all the SAN sites. Hence, the LINK-OSS system is fed
     from the individual SAN-OSSs.

     7.1.8.2.3. The LINK-OS shall be primarily operated by "front line"
     operators in the NMC. Hence, ease of use, simple operation activation and
     good human computer interaction shall be key features.

     7.1.8.2.4. The LINK-OS MMI shall support filtered monitoring and alarming
     concerning the attached network elements.

     7.1.8.2.5. The LINK-OS MMI shall enable control commands to be issued to
     the attached network elements in a consistent manner.

7.1.8.3. SRMC MMI

     7.1.8.3.1. The SRMC MMI shall be designed bearing in mind two operational
     roles or user categories namely:

          1. Operator - Responsible for the monitoring and management of the
             physical hardware and software elements making up the SRMC and for
             the distribution of the various resource plans produced. This task
             is on-line in nature.

          2. Network Engineer - Responsible for the detailed planning and
             analysis of spectrum and resource management. This task is off-line
             in nature.

     7.1.8.3.2. Bearing in mind the above user roles, the MMI shall:

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     7.1.5.2. The NMS shall be able to produce custom reports with differing
     levels of detail suitable for management, technical and operational staff.

     7.1.5.3. The NMS shall be able to produce reports automatically or on an
     ad hoc basis.

     7.1.5.4. The NMS shall be able to provide reports in the following manner:

          1. MMI window.

          2. Printer.

          3. Disk File.

     7.1.5.5. It shall be possible to export the generated report file from the
     NMS platform into a universal PC based environment.

7.1.6. SOFTWARE UPGRADES

     7.1.6.1. The NMS shall be able to support the download of software to
     network elements which have software upgrade functionality. This
     capability can be through the network element's OAM.

     7.1.6.2. The NMS shall provide the ability to store the following software:

          1. Current executable software.

          2. Replacement executable software.

          3. Fallback executable software.

     7.1.6.3. The NMS shall provide the ability to store the following
     information about each piece of software:

          1. version number.

          2. date installed.

          3. description.

          4. developer and contact number.

     7.1.6.4. The NMS shall provide the ability to perform a consistency check
     of software to check that the version number of the software in the
     network elements across SANs are consistent and in accordance with the
     overall NMS master plan (Software Inventory).

     7.1.6.5. The NMS shall provide the ability to command a network element to
     change over to the replaceable executable software.

7.1.7. NETWORK MANAGEMENT CENTRE AND SAN-OSS

7.1.7.1. NETWORK MANAGEMENT CENTRE

     7.1.7.1.1. The NMC shall initially be the centralised command centre of
     the NMS. However, the architecture proposed shall not preclude the ability
     to distribute management services outwards into the network at a later
     date.

     7.1.7.1.2. The NMC shall provide a global view of the network status.

     7.1.7.1.3. The NMC shall be able to perform the functions of a SAN-OSS for
     a selected SAN.

     7.1.7.1.4. There shall be a backup NMC provided, that is functionally
     identical with the NMC.

     7.1.7.1.5. The backup NMC shall be kept synchronous with the primary NMC
     to allow manual switch-overs when authorised.

     7.1.7.1.6. The backup NMC shall be able to be used for routine monitoring
     operations in normal operational circumstances (i.e. when the main NMC is
     fully available).

     7.1.7.1.7. During failures between Management Levels, each level shall
     store messages for restoration purposes.

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7.1.7.2. SAN-OSS

     7.1.7.2.1. Each SAN shall include a SAN Management System.

     7.1.7.2.2. The SAN Management System shall comprise of:

          1. Element Management System (referred to as the SAN-OSS) for the
             network management of all the local elements resident at the SAN
             site.

          2. SAN Satellite Resource Management System (SRMS) for the
             distribution and coordination of satellite resource data.

     7.1.7.2.3. The SAN-OSS shall form a part of the overall network management
     capability required to monitor and control the entire ICONET. As such it
     shall act as an agent and mediation function to the higher level NMC
     network management system and hence act as a gateway between the NMC and
     the site elements.

     7.1.7.2.4. The SAN-OSS shall be responsible as far as is possible for the
     management of the network elements resident at the site. The SAN-OSS shall
     also include provisions to allow for future expandability to cater for
     additional network elements which may prove necessary.

     7.1.7.2.5. The SAN-OSS shall have the capability to collect, filter alarms,
     action and/or distribute relevant network management information to the
     NMC, and the sub-system OAMs. Some of these tasks shall occur on a
     real-time basis.

     7.1.7.2.6. The SAN-OSS shall conform to internationally recognised network
     management standards and adopt industry recognised network management
     protocol(s) where possible. Interfacing to the NMC shall adopt an
     internationally recognised network management protocol.

     7.1.7.2.7. The SAN-OSS shall incorporate provisions for fault,
     configuration, performance and security management, compliant with industry
     recognised practises.

     7.1.7.2.8. In addition, it shall be possible for all the SAN-OSS to
     continually operate the SAN NEs in the event of an NMC failure.

     7.1.7.2.9. It shall be possible to operate the SAN-OSS from the NMC site.

7.1.7.3. SAN SRMS

     7.1.7.3.1. The SAN SRMS shall be responsible for providing the satellite
     resource data such as the BTFP and the satellite channelisation plan for
     the other relevant sub-systems within the SAN in an appropriate format. The
     SAN SRMS shall receive the original of such satellite resource data from
     the NMC in advance and shall derive detailed data from the received
     information.

     7.1.7.3.2. Fault, performance, configuration and security management of the
     SAN SRMS shall be achieved via the SAN-OSS.

7.1.8. MAN MACHINE INTERFACE REQUIREMENTS

7.1.8.1. GENERAL

     7.1.8.1.1. The requirements of Section 7.1.8 are specific to the MMI at the
     NMC and SAN-OSS. However, they should also be considered at the network
     element level, where possible and practical (i.e. for new developments).

     7.1.8.1.2. For the purposes of network management then the NMS MMI shall be
     taken to encompass the totality of the MMI features available at each level
     in the system hierarchy (e.g. NMC, LINK-OS, NODE-OS, SAN-OSS and individual
     NE OAMs). Hence, as you move down from the top level MMI to the network
     elements then additional functionality and options will be uncovered,
     depending upon the set user privileges.

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     7.1.2.13. The NMS architecture shall be such that future network elements
     can be harmonised for network management purposes through the application
     of standardised and recognised interfaces. For example, this requirement is
     needed to cater to two types of system interconnections:

          1. Interconnection with other network carrier management systems for
             the exchange of network management data.

          2. Interconnection with new systems operated from the NMC. Items which
             fit into this category are the Legal Interception Management
             System, Fraud Management System, Key Management System and future
             monitoring systems.

     7.1.2.14. Network Management related Operator actions shall be logged.

     7.1.2.15. (F/R) The NMS shall be designed to support:

          1. electronic documentation system;

          2. the EDS shall provide system diagrams, maps, etc.;

          3. on-line fault recovering procedure;

     EDS shall be complemented by hard-copies of all documents. Relevant user
     manuals, operator instructions, etc. shall be provided in electronic format
     to allow integration into a general EDS (e.g.: hypertext application).

     7.1.2.16. The NMS shall encompass a facility to enable offsite personnel
     and sites to be contacted and provided with relevant information (e.g.
     trouble tickets, maintenance instructions, etc.). It shall be possible to:

          1. support an independent e-mail/paging/alerting local and
             geographical network provided by ICO and NEC;

          2. the e-mail/paging/alerting network shall be compliant with industry
             standards for transport, encryption, security, etc.;

          3. the e-mail/paging/alerting network shall connect all ICO specified
             nodes;

          4. failure of e-mail/paging/alerting network shall not impact any ICO
             node (e.g.: must be an independent LAN)

     7.1.2.17. The management of the ICO system is accomplished via the Network
     Management System (NMS) - elements of which exist at all ICO subsystems.

     7.1.2.18. The NMS is a heirarchical system with lower levels of management
     being performed by the elemental OAM.

     7.1.2.19. The information from the elemental OAMs is integrated/mediated
     where possible (e.g. the SAN-OSS) prior to being transported to the highest
     level in the NMS heirarchy - the NMC. The NMC also manages the
     communications, signalling and administrative links between the ICO
     elements.

     7.1.2.20. The NMC performs no real time functions of alarm and fault
     management, performance management, configuration management, security
     management and to a lesser degree accounting management.

     7.1.2.21. The NMC is used to maximise ICO reliability, effectiveness, and
     responsiveness.

     7.1.2.22. The NMC provides services to the upper layers of TMN - the
     Business and Service Management layers.

     7.1.2.23. The NMC provides one major specific configuration management
     function via the Satellite Resource Management Centre (SRMC) for the
     management of ICO resources at the SANS and on the Satellite.

     7.1.2.24. The NMC incorporates SRMC elements responsible for the satellite
     channelisation.

     7.1.2.25. The NMC incorporates tools enabling operators to reconfigure and
     manage and fine tune the ICO system.

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     7.1.2.26. The NMC monitors and responds to network traffic changes, alarms,
     faults, etc.

     7.1.2.27. There are two NMC - the Primary NMC and a back-up NMC. NM data
     from the Network elements is transported concurrently to both NMCs (i.e.
     full functionality at both centres) the only exception being that the
     databases at the B-NMC may not be in full real-time synchronism with the
     Primary NMC databases.

     7.1.2.28. There may be a direct connection between the NMC and the B-NMC.

     7.1.2.29. In the event of Primary NMC failure all NM operations (including
     SRMC/SRMS) are switched over to the back-up. The switchover is via operator
     command. The delay associated with the switchover is not to exceed [10]
     minutes.

     7.1.2.30. (F/R) The NMC also contains the management system for the ICONET
     (the Network Traffic Manager)

     7.1.2.31. Full NM functionality at the NMC is accessible via user friendly
     graphical user interfaces (GUIs)

     7.1.2.32. The NMC supports Application Programmable Interfaces (API's)
     which allows for system expansion.

     7.1.2.33. Legal Interception and Subscriber tracing capability is also
     provided at the NMC/B-NMC via the MSSC.

     7.1.2.34. Fraud Control is provided at the NMC/B-NMC via the MSSC.

     7.1.2.35. The NMC supports the NM requirements and interfaces to the SCC
     and the ADC.

7.1.3. DATA ARCHIVING

     7.1.3.1. The NMS shall support archiving of the following data:

          1. System performance statistics.

          2. Event logs.

          3. Alarm history.

          4. Trouble ticket data.

          5. Management Reports.

     7.1.3.2. The NMS shall provide the capability for managing long term
     archiving of data. The long-term archive shall hold a minimum of 90 days of
     data storage.

     7.1.3.3. The NMS shall provide the capability to access archived data
     locally and remotely.

     7.1.3.4. Each site shall be able to maintain archiving procedures in
     isolation of other sites.

7.1.4. APPLICATION PROGRAMMING INTERFACE

     7.1.4.1. The NMS shall supply libraries of open Application Programming
     Interfaces (APIs) for interfacing standard application programs (e.g.
     maintenance database, report generator, etc.).

7.1.5. REPORT MECHANISMS

     7.1.5.1. The NMS shall provide reports on the following:

          1. Performance data.

          2. Current status data.

          3. Diagnostic Tests.

          4. Trouble Ticket reports.

          5. Alarm data.

          6. Event log data.

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          6. High Power Notification.

          7. Payload Command System.

          8. Radio Frequency Terminal (this includes the shared Telemetry,
             Tracking and Control equipment).

          9. Satellite Base Station.

               a. Channel Unit.

               b. Channel Manager.

               c. Real Time Resource Manager.

               d. GPS Receiver equipment

               e. Ethernet switch

          10. Terrestrial Network Manager.

          11. Digital Communication Network.

          12. Forced Call Routing (F/R)

     7.1.2.5. The NMS shall support multiple MMIs which can be distributed in
     multiple locations.

     7.1.2.6. The NMS shall be able to retrieve events, alarms and configuration
     reports from network elements.

     7.1.2.7. The NMS shall provide a "reach through" capability e.g. via
     X-Windows, to allow management of network elements and/or element
     management systems remotely.

     7.1.2.8. The NMS shall use a client-server architecture.

     7.1.2.9. The operating systems and protocols used for the NMS shall have
     the following features:

          1. controlled by an industry standard.

          2. commercially available with product support.

          3. consistent with open systems concepts.

          4. multiprocessing.

          5. compatible between the client and server.

     7.1.2.10. The DBMS and all third party application software used for the
     NMS servers shall be commercially available with product support.

     7.1.2.11. The programming languages used to develop the NMS application
     code shall have the following features:

          1. controlled by an industry standard.

          2. commercially available with product support.

          3. support for major hardware and software platforms.

          4. support for object oriented programming.

          5. supported with development and management tools which are
             commercially available with product support

     7.1.2.12. The NMS monitoring capability shall support:

          1. event-driven philosophy

          2. polling

          3. event-driven and polling

          4. the monitoring strategy shall be user selectable, where possible.

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7. NETWORK MANAGEMENT SYSTEM AND LEGAL INTERCEPTION SYSTEM

7.1 GENERAL REQUIREMENTS

7.1.1. REQUIREMENTS FOR NEW ELEMENTS

     7.1.1.1. Section 7.1 covers general functionality to be located at the
     SAN-OSS and NMC. The functionality provided through the individual OAMs is
     described in Section 7.8. However, in the case of the development of new
     elements it is recommended that the requirements of this Section be taken
     into account.

7.1.2. NETWORK MANAGEMENT

     7.1.2.1. It is a general requirement that the Network Management System
     complies to GSM-12 Standards and refers to TMN Standards, whenever
     possible.

     7.1.2.2. The NMS consists of:

          1. Network Management Centre (NMC).

          2. Backup NMC.

          3. SAN Operations Support System (SAN-OSS) at each SAN, including the
             Operational Test and Development Facility (OT&DF) (refer to Section
             12)

          4. Network Elements Operation and Maintenance (OAM).

     7.1.2.3. The NMS shall provide the following management services for the
     ICO network:

          1. Configuration Management.

          2. System Administration

          3. Fault Management.

          4. Performance Management.

          5. Security Management.

          6. Accounting Management.

          7. Trouble Ticket Management.

     7.1.2.4. The NMS shall provide management services for the following:

          1. The NMC equipment and Back-up NMC (namely the main NMS platform
             including the Link-OS)

          2. Satellite Resource Management Centre (SRMC) and Back-up SRMC.

          3. Node Operation System (Node-OS):

               a. Mobile Satellite Switching Centre.

               b. Visitor Location Register.

               c. IGF Messaging Platform.

               d. Home Location Register.

               e. Authentication Centre/Equipment Identification Register.

               f. Interworking Location Register.

               g. Signalling System 7.

               h. Intelligent Networks (F/R)

          4. Satellite Access Node-OSS.

          5. Administration Data Centre.

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     6.59.9.2.3.6. The NMC shall plan the execution of stored payload control
     commands intended as the back-up for real-time HPN index table swapping
     commands. This shall occur approximately [3] seconds after the real-time
     swapping command execution time.

     6.59.9.2.3.7 The IGF shall assume that the potential duplication between
     real-time and back-up stored payload commands does not adversely affect
     satellite payload configuration.

6.59.9.2.4. SECTION NOT USED

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     6.59.1.2. The IGF shall assume that appropriate interface function is
     provided with the ICO provided PCS to perform the following requirements.

     6.59.1.3. The Central PCS subsystem shall interface with primary and backup
     NMC for the purpose of exchanging data according to the CPCS to NMC
     Interface Control Document (TBD).

     6.59.1.4. Where exchange of data with NMC is specified in the following
     sections, it shall be interpreted as meaning exchange of data with either
     or both the primary and the backup NMC.

     6.59.1.5. The Remote PCS subsystem shall interface with the RFT at 1 GHz
     band IF interface according to the RPCS to SAN Interface Control Document
     (TBD).

     6.59.1.6. The Remote PCS subsystem shall interface with the SAN-OSS to
     provide the equipment alarms according to the RPCS to SAN Interface Control
     Document (TBD).

     6.59.1.7. The Remote PCS subsystem shall interface with the RFT to receive
     the RFT to satellite assignment information according to the RPCS to SAN
     Interface Control Document (TBD).

     6.59.1.8. The Remote PCS subsystem shall interface with the Clock
     Distribution Subsystem to receive the reference clock and frequency
     according to the RPCS to SAN Interface Control Document (TBD).

     6.59.1.9. The IGF shall assume that the CPCS shall manage the data exchange
     within the PCS subsystem.

6.59.2. SECTION NOT USED

6.59.3. PCS SUBSYSTEM CONTROL FUNCTIONS

     6.59.3.1. The IGF shall assume that the PCS subsystem shall translate
     information on channelisation plans for the communications transponder
     into satellite payload control commands.

     6.59.3.2. Deleted.

     6.59.3.3. The IGF shall assume that the Central PCS subsystem shall send
     the payload status information to the NMS.

     6.59.3.4. The NMS shall deliver to Central PCS the SAN-satellite contact
     plan.

     6.59.3.5. The IGF shall assume the PCS subsystem shall translate
     information on HPN index table management into satellite payload control
     commands.

     6.59.3.6. The IGF shall assume that the Central PCS shall select the
     appropriate Remote PCS site and deliver the payload command information to
     the Remote PCS so that the payload commands are uploaded to the specified
     satellites on time.

6.59.4.  SECTION NOT USED

6.59.5.  PAYLOAD AND GROUND SYSTEM SYNCHRONISATION

     6.59.5.1. The IGF shall assume that the PCS shall adjust the time tag of
     the stored command according to the difference between the satellite clock
     and the IGF reference system time.

     6.59.5.2 DELETED

     6.59.5.3 DELETED

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6.59.6.        SECTION NOT USED

6.59.7.        SECTION NOT USED

6.59.8.        PAYLOAD STATUS

               6.59.8.1.  The IGF shall assume that the PCS subsystem shall
               validate that stored commands transferred to each satellite have
               been successfully received.

               6.59.8.2.  The IGF shall assume that the PCS subsystem shall
               resend any stored commands that have not been successfully
               received an PCS configurable number of times.

               6.59.8.3.  Deleted.

               6.59.8.4.  Deleted.

               6.59.8.5.  The IGF shall assume that the PCS subsystem shall make
               available information on the aggregate satellite S-band [and
               C-band] transmit power value to the NMS at a configurable
               interval from 8 to 64 seconds.

6.59.9.        PAYLOAD CONFIGURATION

6.59.9.1.      COMMUNICATIONS TRANSPONDER CONFIGURATION

6.59.9.1.1.    GENERAL

               6.59.9.1.1.1.  The IGF shall assume that the PCS subsystem shall
               configure the communications transponder using stored commands.

6.59.9.1.2.    STORED COMMUNICATIONS TRANSPONDER COMMANDS

               6.59.9.1.2.1.  The NMS shall deliver to the CPCS subsystem
               information needed to configure and maintain the satellite
               communications transponder in accordance with the CPCS to NMS ICD
               (TBD).

6.59.9.2.      HPN TRANSPONDER CONFIGURATION

6.59.9.2.1.    GENERAL

               6.59.9.2.1.1.  The IGF shall assume that the PCS subsystem shall
               configure the valid HPN index table on each satellite using a
               combination of stored commands to update index table entries and
               index table mapping commands in accordance with the CPS to NMS
               ICD (TBD).

6.59.9.2.2.    SECTION NOT USED

6.59.9.2.3.    STORED PAYLOAD COMMANDS

               6.59.9.2.3.1.  The NMS shall deliver to the CPCS information
               needed to configure and maintain the entries of the 4 on-board
               HPN index tables according to the HPN channelisation plan in
               accordance with the CPCS to NMS ICD (TBD).

               6.59.9.2.3.2.  The NMS shall deliver to the CPCS information
               needed to select the appropriate HPN index table to be the active
               and standby index table according to the HPN channelisation plan
               in accordance with the CPCS to NMS ICD (TBD).

               6.59.9.2.3.3.  DELETED

               6.59.9.2.3.4.  The NMS shall deliver to the CPCS information on
               when to change active and standby HPN table mapping in accordance
               with the CPCS to NMS ICD (TBD).

               6.59.9.2.3.5.  DELETED

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6.58.6.3.  CABLING BETWEEN THE RFT SHELTER AND THE MAIN BUILDING

     6.58.6.3.1.  Channel Units will be located in the central building
     separated from the RFT Shelters.

     6.58.6.3.2.  The cabling for IF and LAN signals between the RFT Shelter and
     the Main Building shall be redundant for any cable carrying signals for
     more than 1 RFT.

     6.58.6.3.3.  Cable loss between the RFT equipment and the Channel Units
     shall be such that C-band and S-band performance requirements specified in
     Section 6.58.2 and Section 6.58.3 are met.

     6.58.6.3.4.  Specifically, the amplitude response, and its variation, of
     the cable shall be taken into account to meet the EIRP level accuracy and
     stability requirements specified in Section 6.53.1.6.

6.58.7.  RFT DOWNLINK REQUIREMENTS FOR TT&C

6.58.7.1.  APPLICABILITY

     6.58.7.1.1.  The specifications in this section shall apply, over the
     operating temperature range, to the overall receive downlink path defined
     from the antenna feed output ports to the IF interface ports of the GCE.

6.58.7.2.  BANDWIDTH AND GAIN

     6.58.7.2.1.  The 10 dB bandwidth shall be greater than (plus or minus) 3
     MHz and not greater than (plus or minus) 25 MHz.

     6.58.7.2.2.  The gain stability shall be within (plus or minus) 1dB
     excluding the gain variation due to the IFL and the gain variation across
     the passband shall be less than 1dB. The gain variation of the IFL shall be
     less than [plus or minus 2.5] dB.

     6.58.7.2.3.  The nominal level of the telemetry beacon signal at 1F,
     corresponding to a power flux density at the antenna surface of
     -158dBW/m(2), shall be -45dBm.

6.58.7.3.  FREQUENCY CONVERSION

     6.58.7.3.1.  The overall frequency offset shall be less than (plus or
minus) 10kHz from the nominal frequency. The frequency translation equipment
shall not be synchronised to the SAN master frequency source. The system shall
not invert the spectrum of the received signal.

6.58.7.4.  Phase Noise

     6.58.7.4.1.  Phase noise spectral density shall not exceed the mask defined
     by the following breakpoints:

<TABLE>

                    <S>                           <C>
                    -37 dBc/Hz                    10 Hz offset
                    -62 dBc/Hz                    100 Hz offset
                    -80 dBc/Hz                    3000 Hz offset

</TABLE>

6.58.7.5.  SPURIOUS SIGNALS (TBR)

     6.58.7.5.1.  The level of spurious signals shall be less than -56 dBm and
     the level of the thermal noise shall be less than -60 dBm in any 4kHz band
     within the receive band provided that the signal output level from the
     downconverter is -26dBm.

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6.58.7.6.  GROUP DELAY

     6.58.7.6.1.  Group delay variation shall be less than 3 ns/MHz within the
     receive passband. Group delay stability shall be better than 12ns/6 months
     for levels between (minus) 10dB to (plus) 5dB of the nominal level.

6.58.8.  RFT UPLINK REQUIREMENTS FOR TT&C

6.58.8.1.  APPLICABILITY

     6.58.8.1.1.  The specifications in this section shall apply, over the
     operating temperature range, to the overall transmit uplink path defined
     from the IF interface ports of the GCE to the antenna feed input port.

6.58.8.2.  BANDWIDTH AND GAIN

     6.58.8.2.1.  The 10 dB bandwidth shall be greater than (plus or minus) 3
     MHz and less than (plus or minus) 25 MHz.

     6.58.8.2.2.  The gain stability shall be better than (plus or minus) 0.5dB
     in any 3-hour period and better than (plus or minus)[2.5] dB overall. The
     variation of the gain across the passband shall be less than 1 dB.

6.58.8.3.  FREQUENCY CONVERSION

     6.58.8.3.1.  The frequency stability shall be better than (plus or minus) 5
     kHz. The frequency translation equipment shall not be synchronised to the
     SAN master frequency source. The system shall not invert the spectrum of
     the transmitted signal.

6.58.8.4.  PHASE NOISE

     6.58.8.4.1.  Phase noise spectral density shall not exceed the mask defined
     by the following breakpoints:

<TABLE>

                         <S>                     <C>
                         -37 dBc/Hz              10 Hz offset
                         -62 dBc/Hz              100 Hz offset
                         -80 dBc/Hz              3000 Hz offset

</TABLE>

6.58.8.5.  SPURIOUS AND HARMONIC SIGNALS

     6.58.8.5.1.  Over the operating transmit power range, the level at the
     antenna transmit port of spurious signals shall be less than (-)43 dBW/4kHz
     and the radiated harmonics shall be at less than -50dBc. This is measured
     from the feed horn to the IF interface. The maximum spurious level from the
     TT&C modulator shall be less than -80dBm.

6.58.8.6.  GROUP DELAY

     6.58.8.6.1.  Group delay variation shall be less than 3 nanoseconds/MHz
     within the transmit band.  Group delay stability shall be better than 12
     nanoseconds/6 months over the transmit power range.

6.59.  PCS INTERFACE REQUIREMENTS

6.59.1.  GENERAL PCS INTERFACE REQUIREMENTS

     6.59.1.1.  ICO provided Payload Command System (PCS) shall consist of
primary and backup Central PCSs (CPCS) which shall collocate with the primary
and backup NMC sites, Display PCSs (DPCS) which shall collocate with the SCC
and BCC, and six Remote PCSs (RPCS) which shall collocate with the TT&C SANs.

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     6.58.3.1.6.2. All the signal level information thus gathered on the
     transponder and link shall be reported to the SRMS/SRMC. The SRMC will
     receive this information from all 12 SANs and by processing over time, the
     SRMC will be able to verify transponder EIRP and gain settings. Among
     others, the SAN SRMS will use the gathered data to adjust the SAN EIRP of
     the BCCH and other carriers so that their S-band EIRP from the satellite
     will be expected to be within +/- 1.5 dB of the specified values.

     6.58.3.1.6.3. The gain of the SAN S-band receive chain shall be calibrated
     as specified in Section 6.58.3.1.5 so that the accuracy of the measured
     BCCH levels is better than +/- 1.0 dB.

6.58.3.1.7. RECEIVER PHASE NOISE

     6.58.3.1.7.1. The single sideband phase noise spectral density induced on
     any received carrier shall not exceed the values given below:

<TABLE>
<CAPTION>
          Frequency Offset (F)     SSB Phase Noise Limit
                                   (dBc/Hz; F in Hz)
          <S>                      <C>
          10 - 100 Hz              -12 - 25 log F
          100 - 800 Hz             -22.2 - 19.9 log F
          0.8 - 10 kHz             -80 dBc
          10 - 20 kHz              +52.8 -33.2 log F
          20 - 100 kHz             -90 dBc
</TABLE>

     6.58.3.1.7.2. If any discrete phase noise components are present at a level
     that exceeds the limit mask, the 10 Hz to 100 kHz band shall be considered
     to be divided into a number of contiguous sub-bands, each containing no
     more than one discrete component.

     6.58.3.1.7.3. The width of a sub-band containing a discrete component shall
     not exceed F/5 Hz, where F is the frequency of the discrete component.

     6.58.3.1.7.4. In each of the sub-bands, the integrated phase noise due to
     any spectral component, including the discrete component, shall not exceed
     that allowed by integrating the limit mask over the same sub-band.

     6.58.3.1.7.5. In addition to the above, the following requirements shall be
     met:

          1. For offset frequencies up to 250 Hz, no discrete component shall
             exceed the limit mask by 10 dB.

          2. For offset frequencies from 250 Hz to 100 kHz, no discrete
             component shall exceed 50 dBc.

6.58.4. DOPPLER MEASUREMENT AND COMPENSATION PERFORMANCE REQUIREMENTS

6.58.4.1. PHASE NOISE

     6.58.4.1.1. The AFC compensation system shall meet the performance
     requirements in the presence of phase noise on the received C-to-C pilot.

     6.58.4.1.2. The phase noise induced by the AFC system shall be such that
     the overall phase noise specification in Section 6.53.1.14 shall be met.

6.58.4.2. CONTROL STEP SIZE AND RANGE

     6.58.4.2.1. The AFC system shall have a frequency control capability in
     phase continuous steps of no more than 1 Hz, up to a minimum of +/- 42 kHz
     of nominal frequency

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6.58.4.3. AFC ACQUISITION TIME

     6.58.4.3.1. AFC acquisition time is defined as the time that the AFC
     compensation error becomes within the specification given in Section
     6.58.4.4 after the reception of the pilot signals by the antenna.

     6.58.4.3.2. AFC acquisition time shall be less than 1 minute from any
     initial state, and less than 20 seconds when the initial prediction by
     using the satellite ephemeris data is available.

6.58.4.4. AFC ERROR AND RESPONSE SPEED

     6.58.4.4.1. The AFC system shall meet the following requirements:

          1. Threshold C/N(0) 45 dBHz

          2. Input signal characteristics

             Frequency variation range     less than +/- 72 kHz

             Change rate                   less than 38 Hz/sec

             Satellite LO drift            less than (10)(to the power of -8)
                                           (long term)
                                           less than (10)(to the power of -10)
                                           (for 10 seconds)

          3. Frequency compensation error

             Transmit (SAN IF to Satellite S - band output): less than +/-[6]Hz
                                                             at centre frequency

          4. Receive (Satellite S - band input to SAN IF):   less than +/-[6]Hz
                                                             at centre frequency

6.58.5. AUTOMATIC POWER CONTROL (APC)

6.58.5.1. C-BAND TRANSMIT POWER CONTROL RANGE

     6.58.5.1.1. The automatic power control subsystem shall be able to adjust
     EIRP for path loss variation of up to + 3 dB of the clear sky value, and
     the satellite gain variation over time up to 3 dB peak-to-peak.

     6.58.5.1.2. Total automatic power control range shall be at least 20 dB.

6.58.5.2. C-BAND TRANSMIT POWER CONTROL ACCURACY

     6.58.5.2.1. The expected accuracy of this control shall be better than +/-
     1.0 dB at the satellite C-band receive antenna output.

6.58.6. RFT SHELTER

6.58.6.1. ENVIRONMENTAL CONDITIONS

     6.58.6.1.1. The RF equipment shall be installed in the RFT shelter or
     building located near each antenna.

     6.58.6.1.2. The environmental conditions inside the RFT Shelter shall be
     controlled to meet the conditions specified below:

       Temperature :          +10 to +40 deg. Centigrade

       Relative humidity :    5% - 95%

6.58.6.2. CABLING BETWEEN THE ANTENNA AND THE RFT EQUIPMENT

     6.58.6.2.1. Cable loss between the Antenna and the RFT equipment shall be
     such that C-band and S-band performance requirements specified in Section
     6.58.2 and Section 6.58.3 be met.

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     6.58.2.2.2.3. The receive subsystem, including demodulators, shall operate
     over a signal range of ICO signals as defined.

6.58.2.2.3. PROTECTION TO THE ADJACENT FREQUENCY INTERFERENCE

     6.58.2.2.3.1. A BPF shall be able to be inserted, if required, before each
     LNA to protect the receivers against terrestrial systems operating at less
     than -30 dBm beyond 60 MHz outside the receive band.

     6.58.2.2.3.2. Insertion loss of the BPF shall not be greater than 0.2 dB.

6.58.2.2.4. TOLERABLE RECEIVER INPUT LEVEL

     6.58.2.2.4.1. The receive subsystem shall withstand the input level of -20
     dBm at the LNA input without damage.

6.58.2.2.5. GAIN STABILITY

     6.58.2.2.5.1. The RFT receive subsystem gain including IFL shall be
     maintained within plus or minus 3 dB over the environmental range of
     operation specified in Section 6.58.6.1 and below, assuming AGC is
     disabled.
               Outdoor temperature:           -20 to +55 deg. Centigrade
               Outdoor relative humidity:     0% - 100%

6.58.2.2.6. FREQUENCY STABILITY

     6.58.2.2.6.1. The frequency stability of the RX subsystem for communication
     carriers shall be so that the requirements in Section 6.58.4.4. is met when
     the AFC is enabled.

     6.58.2.2.6.2. The receive frequency stability for the TT&C carrier shall be
     referred to the TT&C to SAN Interface Control Document

     6.58.2.2.6.3. The local oscillators of the TT&C down-converters shall be
     independent of the SAN Master Reference Oscillators.

6.58.2.2.7. TOTAL PHASE NOISE INDUCED BY THE SAN RECEIVE PATH

     6.58.2.2.7.1. The single sideband noise spectral density induced on any
     received carrier shall not exceed the values given below with the AFC
     function enabled:

               Frequency Offset (F)     SSB Phase Noise Limit

                                        (dBc/Hz; F in Hz)

               10 - 100 Hz              -12 - 25 log F

               100 - 800 Hz             -22.2 - 19.9 log F

               0.8 - 10 kHz             -80 dBc

               10 - 20 kHz              +52.8 -33.2 log F

               20 - 100 kHz             -90 dBc

     6.58.2.2.7.2. If any discrete phase noise components are present at a level
     that exceeds the limit mask, the 10 Hz to 100 kHz band shall be considered
     to be divided into a number of contiguous sub-bands, each containing no
     more than one discrete component.

     6.58.2.2.7.3. The width of a sub-band containing a discrete component shall
     not exceed F/5 Hz, where F is the frequency of the discrete component.

     6.58.2.2.7.4. In each of the sub-bands, the integrated phase noise due to
     any spectral component, including the discrete component, shall not exceed
     that allowed by integrating the limit mask over the same sub-band.

     6.58.2.2.7.5. In addition to the above, the following requirements shall be
     met:

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          1. For offset frequencies up to 250 Hz, no discrete component shall
             exceed the limit mask by 10 dB.

          2. For offset frequencies from 250 Hz to 100 kHz, no discrete
             component shall exceed 50 dBc.

     6.58.2.2.7.6. The above specification shall be met from the RF input to the
     LNA to the IF output to the Channel Units.

6.58.3. S-BAND PERFORMANCE REQUIREMENTS

6.58.3.1. S-BAND RX PERFORMANCE REQUIREMENTS

6.58.3.1.1. G/T

     6.58.3.1.1.1. The receiving system G/T shall be at least 8.8 dB/K in the
     direction of the satellite over the entire receive pass-band under clear
     sky and average wind conditions.

     6.58.3.1.1.2. This specification shall be met with the C-band and S-band
     transmitter operating at maximum operating output power.

6.58.3.1.2. RECEIVER DYNAMIC RANGE

     6.58.3.1.2.1. The maximum composite PFD from ICO satellites, corresponding
     to SAN at centre of coverage is -100 dBW/m2 excluding noise and
     intermodulation components generated by the satellite.

     6.58.3.1.2.2. The expected PFD of S-band down link communication carriers
     will be:

          1. TCH:   -199 dBW/m(2)

          2. BCCH:  -115 dBW/m(2)

          3. HPN:   -105 dBW/m(2).

     Note that the variation of these values will not be much because the
     up-link fade will be compensated for by the ALC and there will be little
     downlink fade.

     6.58.3.1.2.3. The receive subsystem shall operate over a signal range of
     ICO signals as described above.

6.58.3.1.3 RECEIVE FREQUENCY STABILITY

     6.58.3.1.3.1. The frequency stability of the S-band RX subsystem shall be
     better than plus or minus 5 Hz.

6.58.3.1.4. RECEIVE GAIN STABILITY

     6.58.3.1.4.1. Gain stability of the receive subsystem excluding IFL shall
     be better than plus or minus 3 dB.

6.58.3.1.5. RECEIVE GAIN CALIBRATION REQUIREMENT

     6.58.3.1.5.1. Provision shall be provided to insert a standard signal
     generator signal with a known level to the S-band LNA input port to
     calibrate the gain of the S-band receive path any time as necessary to meet
     the receive level measurement requirement specified in Section 6.58.3.1.6.

6.58.3.1.6. C-S LOOPBACK BCCH MONITOR

     6.58.3.1.6.1. The S-band BCCH power monitor shall measure signal level of
     the received BCCH, which was transmitted by own SAN.

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6.58.1.3.6.  VSWR

     6.58.1.3.6.1.  The VSWR of the antenna feed subsystem at the transmit and
     receive ports shall not exceed 1:1.3. (TBR)

6.58.1.3.7.  TX/RX BEAM ALIGNMENT

     6.58.1.3.7.1.  The transmit and receive beam alignment shall be within 1/10
     of the half power beamwidth of the receive beam.

6.58.1.3.8.  C-S BEAM ALIGNMENT

     6.58.1.3.8.1.  The C-band and S-band receive beam alignment shall be within
     1/10 of the half power beamwidth of the S-band receive beam.

6.58.1.4. ISOLATION BETWEEN PORTS

     6.58.1.4.1.  The isolation between any C-band port and any S-band port,
     for signals in the C-band and S-band transmit and receive band, shall be
     such that the required C-band and S-band G/T requirements specified in
     Section 6.58.2.2.1 and Section 6.58.3.1.1 shall be guaranteed when the
     C-band and S-band signals are simultaneously transmitted at the maximum
     operating EIRP specified in Section 6.53.1.4 and Section 6.53.3.2.

6.58.1.5.  DE-ICING

     6.58.1.5.1.  De-icing capability shall be provided for antennas for the SAN
     located in the area with possibility of snow fall.

     6.58.1.5.2.  The performance of the de-icing shall be 500W/m(2) and it
     shall be possible to select full or half power control. The graph below
     shows a performance of 500W/m(2) (full power). The de-icing is effective in
     the area below the curve.

                                [DE-ICING CHART]

           6.58.1.5.3.  FIGURE 6-5 DE-ICING PERFORMANCE AT 500 W/m(2)

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6.58.2.  C-BAND PERFORMANCE REQUIREMENTS

6.58.2.1.  GENERAL

     6.58.2.1.1.  The requirements in this section shall be met including all
     equipment and cables between the antenna and channel units, inclusive,
     unless otherwise stated.

     6.58.2.1.2.  These requirements are also applicable to TT&C signals, unless
     otherwise stated, when the SAN is collocated with the TT&C site.

     6.58.2.1.3.  These requirements are also applicable to PCS signals, which
     are handled same as the communications carriers, unless otherwise stated,
     when the SAN is collocated with the Remote PCS.

6.58.2.2.  C-BAND RX PERFORMANCE REQUIREMENTS

6.58.2.2.1. G/T

     6.58.2.2.1.1.  The receiving system G/T shall be at least 31 dB/K in the
     direction of the satellite over the entire receive pass band, under clear
     sky and average wind conditions.

     6.58.2.2.1.2.  In case the BPF specified in Section 6.53.1.13 is inserted,
     the G/T shall be at least 30.5 dB/K.

     6.58.2.2.1.3.  This specification shall be met with the C-band and S-band
     transmitter operating at maximum operating output power specified in
     Section 6.53.1.4 and Section 6.53.3.2 and shall include losses dues to
     antenna polarisation misalignment.

6.58.2.2.2.  RECEIVER DYNAMIC RANGE

     6.58.2.2.2.1.  The maximum composite PFD from ICO satellites, corresponding
     to SAN at centre of coverage is [-125] dBw/m(2) per polarisation, excluding
     noise and intermodulation components generated by the satellite.

     6.58.2.2.2.2.  The range of expected PFD of C-band down link communication
     carriers, assuming the EIRP of the UTs as 6.8 dBW will be:

          Minimum single carrier PFD: [-168] dBW/m(2)

          Maximum single carrier PFD: [-143] dBW/m(2)

     The minimum value corresponds to the case of:

          10 degree UT elevation angle,

          8 dB S-band fade,

          nominal transponder gain setting,

          5 degree SAN elevation angle,

          4.8 dB rain fade at SAN

          3 dB additional loss.

     The maximum value corresponds to the case of:

          90 degree UT elevation angle,

          no S-band fade,

          nominal transponder gain setting,

          90 degree SAN elevation angle,

          no rain fade at SAN,

          3 dB additional gain.

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     6.58.1.1.3.2.  Once acquired, the antenna shall automatically track the
     satellite until the satellite reaches the opposite horizon (i.e., elevation
     reaches 5 degrees). Satellite acquisition time is defined as the elapsed
     time from when the satellite enters within the half power beamwidth of the
     stand-by antenna until the antenna becomes auto tracking mode and tracks
     the satellite within the accuracy specified in Section 6.58.1.1.2.

     6.58.1.1.3.3.  Satellite acquisition time shall be less than 10 seconds for
     monopulse tracking, and 30 seconds for step tracking.

     6.58.1.1.3.4.  The antenna flyback time shall be less than 60 seconds.

     6.58.1.1.3.5.  The antenna shall be able to acquire the satellite (i.e. to
     go in autotrack) with a signal (carrier component after modulation) minimum
     PFD of -176 dBW/m(2) at the centre of the antenna directivity. At (plus or
     minus)0.15 degrees of the antenna beam axis, the minimum PFD should be -173
     dBW/m(2).

     6.58.1.1.3.6.  While in autotrack, the antenna shall maintain lock with a
     signal (carrier component after modulation) PFD of -180 dBW/m(2).

6.58.1.1.4.  COMPARISON WITH THE EPHEMERIS DATA

     6.58.1.1.4.1. When the antenna is in the automatic tracking mode, the ACU
     shall compare the current pointing angles with those predicted by the
     satellite ephemeris data, and an alarm shall be generated when the
     difference exceeds a pre-set value.

6.58.1.1.5.  ANTENNA ANGLE DATA ACCURACY

     6.58.1.1.5.1.  In all modes, the rms error of the antenna pointing
     direction shall be less than 0.05 degrees. The antenna angle data shall be
     time-stamped with an accuracy better than (plus or minus)[1]s.

6.58.1.2.  C-BAND ANTENNA PERFORMANCE REQUIREMENTS

6.58.1.2.1.  TX GAIN

     6.58.1.2.1.1.  The transmit gain measured at the transmit port of the feed
     shall be at least:

                    50.3 + 20 log (F/5175) dBi

     within the required transmit pass-band, where F is frequency in MHz.

     6.58.1.2.1.2. The half power beamwidth for any cross-section of the main
     beam shall be less than or equal to 0.6 (degrees).

6.58.1.2.2.  RX GAIN

     6.58.1.2.2.1. The receive gain measured at the receive port of the feed
     shall be at least:

                    52.7 + 20 log (F/7000) dBi
     within the required receive pass band, where F is frequency in MHz.

     6.58.1.2.2.2. The half power beamwidth for any cross-section of the main
     beam shall be less than or equal to 0.5(degrees).

6.58.1.2.3.  POLARISATION

     6.58.1.2.3.1.  Transmissions at C-Band from the antenna shall be dual
     polarised (RHCP and LHCP), and reception at C-band shall also be dual
     polarised (LHCP and RHCP).

     6.58.1.2.3.2.  Polarisation sense shall be as defined in Recommendation
     ITU-R V.573.

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6.58.1.2.4.  AXIAL RATIO

     6.58.1.2.4.1.  The transmit axial ratio and the receive axial ratio within
     10% of the half power beamwidth of the boresight direction shall not exceed
     1.06. for the two IOT Antennas only the axial ratio shall not exceed 1.05.

6.58.1.2.5.  SIDELOBE CHARACTERISTICS

     6.58.1.2.5.1.  The transmit and receive sidelobes shall be in accordance
with Recommendation ITU-R S.580-5. The gain of 90% of the sidelobe peaks shall
not exceed:

<TABLE>

          <S>                               <C>
          G(A) = 29 - 25 log A              for A from 1 (degree) to 20 (degrees),

          G(A) = -3.5                       for A from 20 (degrees) to 26.3 (degrees),

          G(A) = 32 - 25 log A              for A from 26.3 (degrees) to 48 (degrees),

          G(A) = -10                        for A from 48 (degrees) to 180 (degrees),

</TABLE>

     where G(A) is the antenna gain in dB relative to isotropic at an angle A,
in degrees, from the main beam axis. This requirement shall be met for any
off-axis direction.

6.58.1.2.6.  VSWR

     6.58.1.2.6.1.  The VSWR of the antenna feed subsystem at the transmit and
     receive ports shall not exceed 1:1.3.

6.58.1.2.7.  TX/RX BEAM ALIGNMENT

     6.58.1.2.7.1.  The transmit and receive beam alignment shall be within 1/20
     of the half power beam width in the receive beam.

6.58.1.3.   S-BAND ANTENNA PERFORMANCE REQUIREMENTS

6.58.1.3.1.  TX GAIN

     6.58.1.3.1.1.  The transmit gain measured at the transmit port of the
     antenna shall be at least 34.3 dBi within the required transmit pass-band.

6.58.1.3.2.  RX GAIN

     6.58.1.3.2.1.  The receive gain measured at the receive port of the
antenna shall be at least 34.9 dBi within the required receive pass-band.

6.58.1.3.3.  POLARISATION

     6.58.1.3.3.1.  The S-band transmit and receive signals shall be right hand
     circular polarised (RHCP). Polarisation sense shall be as defined in
     Recommendation ITU-R V.573.

6.58.1.3.4.  AXIAL RATIO

     6.58.1.3.4.1.  The transmit axial ratio and the receive axial ratio shall
     not exceed 1.3. (TBR)

6.58.1.3.5.  SIDELOBE CHARACTERISTICS

     6.58.1.3.5.1.  At least 90% of the sidelobe peaks of the antenna pattern in
     any plane shall be less than described by the following expressions:

<TABLE>

               <S>                                     <C>
               G(A) = 37-25 log A (dBi)                (for 2 (degrees) < A < 7 (degrees))

               G(A) = 8 dBi                            (for 7 (degrees) (less than or equal to) A < 70 (degrees))

               G(A) = 0dBi                             (for 70 (degrees) (less than or equal to) A)

</TABLE>

     Where G(A) is the antenna gain in dB relative to isotropic at an angle A,
in degrees, from the main beam axis. This requirement shall be met for any off
axis direction.

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6.57.9.5.2. SIGNAL COUPLER REQUIREMENTS FOR CONNECTION OF MEASURING EQUIPMENT

     6.57.9.5.2.1. The following test signal injection and branching
     capabilities shall be provided:

          1. Signal Injection to C-band HPA Input

          2. Signal Branching at C-band HPA Output

          3. Signal Injection to C-band LNA Input

          4. Signal Branching at C-band LNA Output

          5. Signal Injection to S-band HPA Input

          6. Signal Branching at S-band HPA Output

          7. Signal Injection to S-band LNA Input

          8. Signal Branching at S-band LNA Output

     6.57.9.5.2.2. Also, switching capabilities shall be provided, to select a
     desired polarisation and to disconnect the communications equipment from
     the transmit/receive paths.

6.57.9.6. RFT SIMULATOR

     6.57.9.6.1. The RFT Simulator is a computer with software which shall
     simulate the behaviour of the RFT OAM with respect to its interface with
     SCC through TT&C ground equipment. The requirement for the RFT Simulator is
     found in the ICD ICO TT&C Ground to SAN (doc. no. IC80539-D01-002), part 1.

6.57.10. PCS/HPN SUPPORT FUNCTIONS

     6.57.10.1. The RFT shall have the capability to transmit and receive the
     PCS/HPN carriers and its operational bandwidth shall be wide enough for
     simultaneous transmission/reception of PCS/HPN carriers as well as C-S/S-C
     communication carriers.

     6.57.10.2. There will be no dedicated RF equipment for PCS/HPN but all
     equipment, including the interfacility link (IFL) between the RFT shelter
     and the central hub building, shall be shared between PCS/HPN and C-S/S-C
     communications.

     6.57.10.3. The IF frequency band for the PCS/HPN shall be the same as for
     the communications and it shall be 1GHz band.

6.57.11. TEST LOOP TRANSLATOR

     6.57.11.1. A tuneable test loop translator shall be included in SAN
     RFT/Antenna for supporting ranging calibrations and communication signal
     loopback tests. The loop via the translator shall include all the RFT
     equipment, cables and waveguides excluding the antenna feed and reflector.

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     6.57.11.2. The local frequency shall be remotely switchable among six (6)
     frequencies to support the frequency translations as described below:

          6.57.11.3. (for TT&C ranging loopback)

<TABLE>
<CAPTION>
          LOCAL FREQUENCY     TRANSLATION
          ---------------     -----------
<S>                          <C>
          1831.5 MHz:         5180 MHz to 7011.5 MHz
          1892.5 MHz:         5180 MHz to 7072.5 MHz
          1768.5 MHz:         5244 MHz to 7012.5 MHz
          1829.5 MHz:         5244 MHz to 7073.5 MHz
</TABLE>

          6.57.11.4. (for communication test loopback)

<TABLE>
<CAPTION>
          LOCAL FREQUENCY     TRANSLATION
          ---------------     -----------
<S>                          <C>
          1831 MHz:           5187.1-5236.9 MHz to 7018.1-7067.9 MHz (C-S/S-C)
          1830 MHz:           5183.1-5185.6 MHz to 7013.1-7015.6 MHz (C-C lower)
          1830 MHz:           5239.1-5241.6 MHz to 7069.1-7071.6 MHz (C-C upper)
</TABLE>

     6.57.11.5. Group delay variation shall be within 3ns/MHz at the TT&C
     frequencies and over the communication bands described above. Absolute
     delay stability at the TT&C frequencies shall be better than 3ns/6 months
     and over the operating temperature range. The spectrum shall not be
     inverted. The gain (or loss) of the translator shall be adjustable from TBD
     dB to TBD dB.

     6.57.11.6. The absolute delay data at the TT&C frequencies shall be
     provided. (TBD)

6.58. RFT PERFORMANCE REQUIREMENTS

6.58.1. ANTENNA REQUIREMENTS

6.58.1.1. ANTENNA POINTING AND TRACKING REQUIREMENTS

6.58.1.1.1. REQUIRED POINTING AND TRACKING SPEED AND RANGE

     6.58.1.1.1.1. The antenna shall be capable of pointing and tracking ICO
     satellites over a 360(degree) range of azimuth and over a 0 to 90(degree)
     elevation angle.

     6.58.1.1.1.2. The antenna shall be capable of tracking satellites passing
     over the location of the antenna.

6.58.1.1.2. POINTING AND TRACKING ACCURACY

     6.58.1.1.2.1. The antenna shall be capable of pointing to any location in
     the ICO orbital arc sky area above 5(degrees) elevation angles with a rms
     accuracy of better than 0.04 degrees.

     6.58.1.1.2.2. The antenna shall be capable of tracking a satellite, moving
     at any location in the ICO orbital arc sky area above 5(degrees) elevation
     angles, except for the area above 89(degrees) elevation angle, with a
     3-sigma accuracy of better than 0.04 degrees for monopulse tracking and rms
     accuracy of better than 0.04 degrees for step tracking.

     6.58.1.1.2.3. In the area above 89(degree) elevation angle, the rms
     tracking error shall be less than 0.08 degrees.

6.58.1.1.3. SATELLITE ACQUISITION AND ANTENNA FLYBACK TIME

     6.58.1.1.3.1. The antenna shall be capable of being pointed to a location
     where a satellite is predicted to be rising and to acquire that satellite
     automatically at an elevation of no greater than 5 degrees.

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6.57.5.3. USE OF THE SATELLITE EPHEMERIS DATA

     6.57.5.3.1. The AFC control unit shall be fed time-tagged ephemeris data by
     the SRMS for use in predicting the Doppler shift expected at any time in
     the satellite orbit referenced to a particular SAN.

     6.57.5.3.2. This prediction shall be used to set the correction signal for
     rising satellites.

     6.57.5.3.3. Also, this prediction shall be used as a secondary mode of AFC
     control should one or both of the pilots not be available.[F/R]

     6.57.5.3.4. The AFC control until shall compare the measured Doppler shift
     with the values predicted by the satellite ephemeris data and generate an
     alarm signal if the difference exceeds the pre-set value [F/R].

6.57.6. AUTOMATIC POWER CONTROL (APC)

6.57.6.1. GENERAL REQUIREMENTS

     6.57.6.1.1. The RF transmit subsystem shall have an automatic power control
     subsystem to compensate for path loss changes. These path loss changes are
     a result of path length change as the satellite moves through its orbital
     track, the path loss changes due to environment, and changes of the
     satellite receive antenna gain with regard to the signal direction.

     6.57.6.1.2. The automatic power control subsystem shall perform comparison
     of the received satellite SRMS telemetry level to the C-to-C pilot loopback
     pilot level, to correct the transmit subsystem gain to compensate for
     changes in path loss from a nominal clear sky reference value.

6.57.7. AXIAL RATIO COMPENSATION FUNCTIONS (F/R)

     6.57.7.1. This function is required for some SAN sites located in a heavy
     rain region to mitigate the effects of propagation-induced depolarisation.

     6.57.7.2. This system shall use wideband polarises in the feed of the
     C-band RFT to correct the polarisation of the receive and transmit signals.

     6.57.7.3. The system shall use C - C pilots transmitter in both
     polarisations.

     6.57.7.4. The received level of the pilots in the co-polarised and
     cross-polarised channels shall be detected and used to develop correction
     commands to the motorised polarises.

     6.57.7.5. The correction commands shall be used to optimise the setting of
     the polarises, with the ultimate goal being the maximum cross-polarisation
     (i.e., minimum axial ratio) between LH and RH feed ports.

     6.57.7.6. The system shall meet the following specification:

          1. Compensation improvement 10 dB minimum when 15 dB degradation from
             clear sky without compensation.

6.57.8. RFT MONITORING AND CONTROL

     6.57.8.1. Control and monitoring of the RFTs shall be performed by the RFT
     OAM, directed by the SRMS Controller.

     6.57.8.2. For emergency TT&C operations, the control shall be directed by
     the SCC through the TT&C ground equipment only.

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6.57.9. TT&C SUPPORT FUNCTIONS

6.57.9.1 GENERAL

     6.57.9.1.1. Scope of the TT&C Support Functions section is to define the
     specific functions of the RFT which shall be implemented to support the
     TT&C Operation.

6.57.9.2. SUPPORT FOR TT&C RANGING CALIBRATION

     6.57.9.2.1. For ranging calibration, a frequency selectable translator
     shall be provided to loop back the HPA output signal to the input of the
     LNA.

     6.57.9.2.2. The absolute delay of the translator shall be calibrated.
     Requirement of the test loop translator is specified in the TT&C to SAN
     Interface Control Document.

     6.57.9.2.3. Couplers shall be provided at the input of the LNAs.

6.57.9.3. SUPPORT FOR TT&C EIRP MEASUREMENT

     6.57.9.3.1. A selective power meter shall be provided at the output of the
     HPA to measure the EIRP of the TT&C command carrier.

     6.57.9.3.2. The measured data shall be sent to the TT&C baseband equipment
     through the RFT OAM.

6.57.9.4. SUPPLY OF SAN REFERENCE CLOCK TO TT&C

6.57.9.4.1. GENERAL

     6.57.9.4.1.1. The SAN reference clock shall be supplied to the TT&C ground
     equipment as specified in the TT&C to SAN ICD.

6.57.9.4.2. FORMAT

     6.57.9.4.2.1. The format of the time reference signal shall be in
     accordance with IRIG 200-95, code B-120.

6.57.9.4.3. TIME ACCURACY

     6.57.9.4.3.1. Time accuracy at the TT&C interface point shall be better
     than (plus or minus) 100 usec.

6.57.9.5. RF EQUIPMENT REQUIREMENTS FOR IOT SUPPORT

6.57.9.5.1. GENERAL

     6.57.9.5.1.1. Two RFTs in one selected TT&C collocated SAN site shall be
     capable of supporting the satellite IOT (In-Orbit Test).

     6.57.9.5.1.2. It shall be possible to insert C-band and S-band signals
     generated by the IOT equipment at the input of the HPA.

     6.57.9.5.1.3. The output power levels at the HPA and the LNA output shall
     be measured very accurately.

     6.57.9.5.1.4. To calibrate the LNA gain, a reference signal shall be
     inserted at the input of the LNA.

     6.57.9.5.1.5. It shall be possible to transmit test SRMS/HPN command
     signals generated by the IOT SRMS/HPN modulator to test the satellite
     SRMS/HPN configuration.

     6.57.9.5.1.6. It shall be possible to receive SRMS telemetry signals, and
     to feed them to the IOT SRMS demodulator. Details of the interface are
     provided in the TT&C to SAN ICD.

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6.57.3. C-BAND TX/RX FUNCTIONAL REQUIREMENTS

6.57.3.1. C-BAND TX FUNCTIONAL REQUIREMENTS

6.57.3.1.1. NOMINAL TRANSMIT FREQUENCY OF C-BAND CARRIERS

    6.57.3.1.1.1. The nominal carrier frequency of the C-band carriers
    shall be at:

           C-S Communications:      5187.100 MHz + n x 0.025 MHz
             (n = 1 to 1991)
           HPN Messages             5186.40 MHz or 5237.60 MHz
              (switchable)
           C-C pilots:              (Band)5,183.1-5,185.6 LHCP;
                                    5,239.1-5,241.6 RHCP.
           SRMS Command:            5186.80 MHz or 5237.20 MHz
              (switchable)
           HPN PCS Command:         5186.60 MHz or 5237.40 MHz
              (switchable)
           TT&C:                    5180.0 MHz or 5244.0 MHz (switchable)

6.57.3.1.2. TRANSMIT FREQUENCY CONVERSION

        6.57.3.1.2.1. The transmit subsystem for communication carriers shall
        translate the intermediate frequency passband at the output of the
        channel  units to the C-band transmit passband specified in Section
        6.57.1.4.

6.57.3.1.3. COMMUNICATION DISABLE SWITCH

        6.57.3.1.3.1. The RFT shall be provided with communication disable
        switches which would disconnect all communication signals from the
        transmit paths in case of the emergency TT&C operation.

        6.57.3.1.3.2. These switches shall be remotely controllable as
        specified by the TT&C to SAN ICD.

        6.57.3.1.3.3. Manual over-ride shall be possible for these switches.

6.57.3.2. C-BAND RX FUNCTIONAL REQUIREMENTS

6.57.3.2.1. NOMINAL RECEIVE FREQUENCY OF ICO CARRIERS

        6.57.3.2.1.1. The nominal carrier frequency of the C-band carriers
shall be at:

           S-C Communications
               Carriers:            7018.100 MHz + n x 0.025 MHz
             (n = 1 to 1991)
           SRMS Telemetry:          7017.40 MHz or 7068.40 MHz
             (switchable)
           C-C Pilots:              (Band) 7,013.1-7,015.6 LHCP
                                    7,069.1-7,071.6 RHCP
           TT&C Telemetry:          7011.5/7012.5 MHz or
             (switchable)           7072.5/7073.5 MHz

6.57.3.2.2. RECEIVE FREQUENCY CONVERSION

    6.57.3.2.2.1. The receive subsystem shall translate the C-band receive
    passband specified in Section 6.57.1.5 to an intermediate frequency
    passband.
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6.57.4. S-BAND TX/RX FUNCTIONAL REQUIREMENTS

6.57.4.1. GENERAL

     6.57.4.1.1. S-Band TX and RX capabilities shall be provided, in order to
     transmit test mobile signals and to receive S-band carriers for monitoring
     and level calibration purposes.

6.57.4.2. S-BAND TX FUNCTIONAL REQUIREMENTS

6.57.4.2.1. NOMINAL TRANSMIT FREQUENCY OF ICO CARRIERS

     6.57.4.2.1.1. The Nominal Transmit Frequency of ICO carriers shall be:
                    1985.000 MHz + n x 0.025 MHz (n = 1 to 1199)

6.57.4.2.2. TRANSMIT FREQUENCY CONVERSION

     6.57.4.2.2.1. The transmit subsystem shall translate the intermediate
     frequency passband output of the channel units to the S-band transmit
     passband specified in Section 6.57.1.6.

6.57.4.3. S-BAND RX FUNCTIONAL REQUIREMENTS

6.57.4.3.1. NOMINAL RECEIVE FREQUENCY OF ICO CARRIERS

     6.57.4.3.1.1. The Nominal Receive Frequency of ICO carriers shall be:
                    2170.000 MHz + n x 0.025 MHz (n = 1 to 1199)

6.57.4.3.2. RECEIVE FREQUENCY CONVERSION

     6.57.4.3.2.1. The receive subsystem shall translate the receive S-band
     passband to an intermediate frequency passband specified in Section
     6.57.1.7.

6.57.5. DOPPLER MEASUREMENTS AND COMPENSATION FUNCTIONAL REQUIREMENTS

6.57.5.1. GENERAL

    6.57.5.1.1. The AFC system shall compensate for satellite local oscillator
    frequency drift and Doppler shift at up and down-links of the C-band.

    6.57.5.1.2. In order to reduce the frequency errors seen by the UT
    demodulators, automatic frequency compensation (AFC) shall be performed
    by the SAN on the C-band transmit signals at the C-band up-converters.

    6.57.5.1.3. In order to reduce the frequency errors seen by the CU
    demodulators, AFC shall be performed at the C-band down-converters on the
    C-band receive signals as well.

    6.57.5.1.4. These AFC functions shall be performed for all communications
    and signalling carriers, including HPN message/command carriers and SRMS
    command/telemetry carriers.

    6.57.5.1.5. TT&C command and telemetry carriers shall not be affected by
    the AFC.

6.57.5.2. COMPENSATION OF RESIDUAL DOPPLER SHIFT AT CHANNEL UNITS

    6.57.5.2.1. Since the amount of the Doppler shift is proportional to the
    frequency, different amount of compensation is required for the signal at
    different frequencies within C-band transmit and receive band.

    6.57.5.2.2. The AFC system shall compensate for the Doppler shift at the
    centre frequency of the C-band transmit (5,212 MHz) and receive (7,043 MHz)
    band.

    6.57.5.2.3. The residual Doppler shift at the actual frequency of the signal
    shall be further compensated for at the Channel Units, if required.

    6.57.5.2.4. The AFC control unit shall provide the frequency compensation
    data to the Channel Managers for compensation of this frequency dependent
    residual Doppler shift.

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     6.57.1.3.2. Independent signal processing paths for each RFT shall be
     provided for signals designated for left hand circular polarisation and
     right hand circular polarisation, for both the transmit and receive
     directions.

6.57.1.4. C-BAND TRANSMIT PASS BAND

     6.57.1.4.1. The C-Band Transmit Pass Band shall be 5179.5 to 5244.5 MHz.

6.57.1.5. C-BAND RECEIVE PASS BAND

     6.57.1.5.1. The C-Band Receive Pass Band shall be 7011.0 to 7073.9 MHz.

6.57.1.6. S-BAND TRANSMIT PASS BAND

          6.57.1.6.1. The S-Band Transmit Pass Band shall be 1985 to 2015 MHz.

6.57.1.7. S-BAND RECEIVE PASS BAND

     6.57.1.7.1. The S-Band Receive Pass Band shall be 2170 to 2200 MHz.

6.57.1.8. REDUNDANCY REQUIREMENT

     6.57.1.8.1. The RFT subsystem shall consist of the five sets of the antenna
     and RF equipment in the 4+1 redundant configuration.

     6.57.1.8.2. Furthermore, the antenna and RF equipment subsystems within
     each RFT subsystem shall have the following redundancy configuration.

          Antenna subsystem        Non-redundant
          C-band HPA               2+1 redundant configuration
          C-band LNA               2+1 redundant configuration
          C-band Upconverter       2+1 redundant configuration
          C-band Downconverter     2+1 redundant configuration
          S-band HPA               Non-redundant
          S-band LNA               Non-redundant
          S-band Upconverter       Non-redundant
          S-band Downconverter     Non-redundant
          TT&C Upconverter         1+1 redundant configuration
          TT&C Downconverter       1+1 redundant configuration

     6.57.1.8.3. Each redundant system shall have an automatic real-time
     changeover facility to change traffic from a faulty unit to a standby unit
     in case an on-line unit is in failure condition and to minimise the loss
     of traffic without the help of RFT Controller/OAM functions.

6.57.1.9. NON-INVERSION OF SPECTRUM

     6.57.1.9.1. The spectrum of the C-band and S-band transmit signals at the
     antenna shall not be inverted from that of the modulator output signals.

     6.57.1.9.2. The spectrum of the demodulator input signals shall not be
     inverted from that of the C-band and S-band received signals at the
     antenna.

6.57.1.10. COLLOCATION WITH REMOTE PCS

     6.57.1.10.1. Six selected SAN sites collocated with the TT&C sites shall
     also be collocated with the ICO provided Remote PCS equipment for
     transmitting/receiving SRMS Command and SRMS Telemetry signals.

     6.57.1.10.2 The PCS signals (SRMS Command and SRMS Telemetry) shall be
     transmitted/received by the RFT with the same manner as the communications
     signals.

     6.57.1.10.3. Interface requirements between the Remote PCS equipment and
     the SAN equipment shall be in accordance with the RPCS to SAN Interface
     Control Document (TBD)

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6.57.2. ANTENNA REQUIREMENTS

6.57.2.1. GENERAL

     6.57.2.1.1. The antenna shall be capable of transmission and reception of
     both C-band and S-band signals.

6.57.2.2. ANTENNA POINTING AND TRACKING REQUIREMENTS

6.57.2.2.1. TRACKING CONTROL

     6.57.2.2.1.1. The antenna shall be capable of the following tracking and
     pointing control modes:

          1. Automatic Tracking
             The antenna shall track the satellite autonomously receiving the
             satellite TT&C telemetry signal.
             The tracking control shall be designed so that the antenna will
             not track by its sidelobes.

          2. Program Tracking
             The antenna shall track the satellite autonomously based on the
             satellite ephemeris data provided from the SCC.

          3. Search Pattern Tracking
             The antenna shall search the satellite with hexagonal search
             patterns near the predicted orbit locations based on the satellite
             ephemeris data until the satellite is acquired.
             Then the antenna shall be in the automatic tracking mode.

          4. Pointing (Command Position and Manual)
             The antenna shall be pointed to the specified pointing angles.

          5. Stand-by Mode
             The antenna shall be pointed to the predicted direction for the
             rising satellite and ready to track the satellite automatically
             when the satellite is acquired.

          6. Drive to Stow Position
             The antenna shall be capable of being driven to the stow position.

     6.57.2.2.1.2. The antennas installed at selected SAN sites, including all
     SAN TT&C sites, shall have mono-pulse tracking capability.

6.57.2.2.2. SAFETY

     6.57.2.2.2.1. Appropriate safety measures shall be provided to protect
     human and the antenna itself in case of the failure of the driving
     apparatus. The following safety devices shall be provided to the antenna:

          1. emergency stop switch

          2. drive disable switch

          3. drive limit switch

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                                  [FLOW CHART]

     6.55.14      FIGURE 6-4 FUNCTIONAL BLOCK DIAGRAM FOR TRAFFIC PLANNING

6.56 CHANNEL UNIT FAILURE HANDLING

6.56.1. TRAFFIC CHANNEL UNIT FAILURES

     6.56.1.1. In the event of the failure of a traffic channel unit, the SBS
     shall inform the SAN-OSS of the failure.

     6.56.1.2. The IGF shall tear down all traffic calls that were being routed
     solely through that channel unit, and release all the assigned traffic
     channels through that channel unit.

     6.56.1.3. The IGF shall continue all calls that were operating in diversity
     mode where one path was routed through the failed channel unit and the
     other path was routed through a different channel unit. However, the path
     routed through the failed channel unit shall be dropped.

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6.56.2. CONTROL CHANNEL UNIT FAILURES

     6.56.2.1. In the event of the failure of a control channel unit, the SBS
     shall inform the SAN-OSS of the failure.

     6.56.2.2. The IGF shall configure an unused control channel unit (if one is
     available) to replace the control channels that were being provided by the
     failed channel unit. This shall be achieved within [60] seconds.

     6.56.2.3. If no unused control channel unit is available, the IGF shall
     re-configure a traffic channel unit to operate as a control channel unit,
     and then configures it to replace the control channels that were being
     provided by the failed channel unit. This shall be achieved within [120]
     seconds. By preference, a traffic channel that was not carrying any traffic
     shall be used for this purpose.

     6.56.2.4. If it is necessary to reconfigure a traffic channel unit to a
     control channel unit, and that traffic channel unit was carrying traffic,
     the IGF shall attempt to handover all active calls to other channel units
     prior to reconfiguring the channel unit an extra [15] seconds will be
     allocated to attempt this. Should it not be possible to handover any of the
     calls, the IGF shall release those traffic channels as defined in Section
     6.56.1.

6.57. RFT FUNCTIONAL REQUIREMENTS

6.57.1. GENERAL REQUIREMENTS

6.57.1.1. NUMBER OF ANTENNAS

     6.57.1.1.1. Five antennas shall be required at each SAN site. Generally,
     two or more may be in track modes, tracking satellite in view, one antenna
     may likely be in a 'flyback' mode, one antenna may be in a 'positioned'
     mode waiting for the rising satellite to appear at the horizon, and one
     antenna may be an active spare.

6.57.1.2. COLLOCATION WITH TT&C SITE

     6.57.1.2.1. Six selected SAN sites shall be collocated with the TT&C
     stations.

     6.57.1.2.2. In these selected SANs the major RF equipment, notably
     antennas, LNAs and HPAs, shall be shared by the communication traffic and
     the TT&C command and telemetry carriers.

     6.57.1.2.3. One of the TT&C collocated site shall have the capability
     supporting the IOT (In Orbit Test) of satellites.

     6.57.1.2.4. Upconverters and downconverters for dedicated use of the TT&C
     shall be provided for these SANs.

     6.57.1.2.5. The output of the TT&C upconverters shall be combined with the
     output of the communication upconverters and fed to the input to the HPA.

     6.57.1.2.6. The LNA output shall be divided to feed to the input of the
     TT&C down-converters and the communication down-converters.

     6.57.1.2.7. The TT&C ground equipment will be provided separately by the
     satellite contractor and are outside the scope of this requirement
     document.

     6.57.1.2.8. Interface requirements between the TT&C ground equipment
     including IOT equipment and the SAN equipment are specified in TT&C to SAN
     Interface Control Documents (ICD).

6.57.1.3. IF CONNECTIVITY REQUIREMENTS

     6.57.1.3.1. The IF between the RFT and the IF Distribution shall be L-band
     (1010.5 MHz-1660.5 MHz).

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          3. purge SAN alarm data.

          4. access SAN alarm data using filters supplied by the NMS.

7.8.5.5. PERFORMANCE MANAGEMENT

     7.8.5.5.1. The SAN-OSS interface shall allow the NMC to:

          1. configure SAN-OSS performance parameters.

          2. initiate archiving of the SAN-OSS performance data.

          3. purge SAN-OSS performance data.

          4. access SAN-OSS performance data using filters supplied by the NMC.

          5. configure periodic transfer of SAN performance data to NMS using
             filters.

7.8.5.6. SECURITY MANAGEMENT

     7.8.5.6.1. The SAN-OSS OAM interface shall provide access control
     facilities to all SAN-OSS OAM interface functionality.

7.8.6. HIGH POWER NOTIFICATION

7.8.6.1. GENERAL DESCRIPTION

     7.8.6.1.1. High Power Notification delivers a short paging message to a
     user who is out of reach of the normal ICO communication services which are
     supported through line-of-sight satellite paths. The HPN service is a
     supplementary service that is triggered by failed mobile terminated (MT)
     short message delivery, and failed MT call attempts.

7.8.6.2. GENERAL REQUIREMENTS

     7.8.6.2.1. The HPN OAM interface shall provide the following software
     upgrade facilities:

          1. download new versions of software from the NMS.

          2. replace the current version of software with the new version.

          3. replace the current version of software with the previous version.

          4. extract existing software version information for the three
             versions of software.

     7.8.6.2.2. The HPN OAM interface shall encompass the management of the HPN
     hardware and software which implements the HPN-SC, the HPN Channel Manager,
     the HPN Local SRMS, HPN Channel Unit and HPN-PCS functions.

     7.8.6.2.3. The HPN OAM subsystem shall support an interface to the SAN-OSS,
     for receipt of global configuration parameters and providing fault and
     performance management information.

     7.8.6.2.4. The HPN OAM subsystem shall support an interface for an MMI to
     allow for local equipment control, and limited fault management.

     7.8.6.2.5. The HPN ChM shall be capable of uploading the event records to
     the NMC via the HPN OAM subsystem.

7.8.6.3. CONFIGURATION MANAGEMENT

     7.8.6.3.1. The HPN OAM interface shall:

          1. allow the SAN-OSS to configure HPN event logging.

          2. be used to report events to the SAN-OSS for archiving of the HPN
             event data.

          3. provide HPN request/delivery event logs for SAN-OSS retrieval, via
             ftp

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          4. maintain HPN request/delivery logs for [7] days.

     7.8.6.3.2. The HPN OAM interface shall forward low storage threshold alarms
     when the available event data storage reaches a level specified by the
     operator at the MMI

     7.8.6.3.3. The HPN event data available through the HPN OAM interface shall
     consist of the following:

          1. HPN request event records

          2. HPN delivery event records.

     7.8.6.3.4. The HPN OAM interface shall provide access to HPN subsystem
     parameters requiring configuration by the NMS, such as:

          1. number of micro-diversity retries for HPN messages.

          2. period between micro-diversity retries for HPN messages.

          3. number of macro-diversity retries for HPN messages.

          4. period between macro-diversity retries for HPN messages

          5. HPN satellite selection criteria

          6. H/V algorithm parameters.

          7. ICONET SAN administrative/operational status parameters.

          8. satellite channelisation plan generated by the SRMC

          9. satellite HPN transponder switching delay characteristics (time
             delay values for table swapping and index selection).

     7.8.6.3.5. The HPN OAM interface shall allow an operator accessing remotely
     from the NMS to:

          1. monitor the HPN to determine if the HPN is visible to the network.

          2. initiate start-up and shutdown procedures for elements associated
             with the HPN.

          3. enable/remove links from service.

     7.8.6.3.6. Test Message Generation

          1. It shall be possible to instigate test messages across the HPN
             service.

          2. Pre-defined routine test messages shall be available and easily
             activated from the NMC and SAN.

          3. It shall be possible for authorised users to enter test messages
             directly via the command line interface in emergency situations.

7.8.6.4. FAULT MANAGEMENT

     7.8.6.4.1. The HPN OAM interface shall forward the raising and clearing of
     HPN alarms, associated with the five HPN functional subsystems (HPN-SC,
     HPN-ChM, HPN-Local SRMS, HPN OAM, HPN ChUs and HPN-PCS) to the NMS. This
     shall include alarms for the following:

          1. Miscellaneous alarms.

          2. Communication alarms.

          3. Equipment alarms.

          4. Processing error alarms.

          5. Quality of service alarms.

          6. Database update alarms.

          7. Automatic database recovery initiated alarms.

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          8. Data threshold alarms.

          9. Signalling failures on GSM interface links.

          10. Excessive number of retries on GSM interface links.

     7.8.6.4.2. The HPN OAM interface shall forward the raising and clearing of
     Channel Manager alarms to the NMS, including the following:

          1. Miscellaneous alarms

          2. Communication alarms

          3. Equipment alarms

          4. Processing Error alarms

          5. Quality of Service alarms

          6. message arrival rate threshold exceeded

     7.8.6.4.3. The HPN OAM interface shall forward the raising and clearing of
     Channel Unit alarms to the NMS, including the following:

          1. Communication alarms

          2. Equipment alarms

          3. Processing error alarms

          4. Quality of Service alarms

     7.8.6.4.4. For each HPN alarm forwarded to SAN-OSS, the SAN-OSS shall save
     the following,and forward to the NMS:

          1. an alarm identifier unique to the HPN.

          2. date and time of when the alarm was raised or cleared.

          3. alarm description.

          4. source of the alarm for the purpose of fault location.

7.8.6.5. PERFORMANCE MANAGEMENT

     7.8.6.5.1. The HPN OAM interface shall allow the NMS to:

          1. retrieve event logs for HPN message request/delivery

          2. retrieve raw HPN statistics counters

     7.8.6.5.2. The HPN OAM interface shall forward low storage threshold alarms
     when the available performance data storage reaches a level specified by
     the NMS.

     7.8.6.5.3. The HPN performance data available through the HPN OAM interface
     shall include the following:

          1. HPN Request records.

          2. HPN Delivery records

          3. Performance Statistics including:

               a) number of successfully acknowledged HPN messages

               b) number of failed short message delivery attempts received

               c) number of failed incoming call attempts received

               d) number of macro-diversity attempts

               e) number of successful HPN attempts/satellite

               f) number of failed HPN attempts/satellite

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               g) number of HPN messages redirected to other SANs

     7.8.6.5.4. It shall be possible to display key summary performance data
either locally at the HPN when a terminal is directly attached or remotely via
a standardised remote login mechanism.

     7.8.6.5.5. It shall be possible to access all performance data stored in
the HPN MIB from the SAN-OSS and from the NMC.

7.8.6.6. SECURITY MANAGEMENT

     7.8.6.6.1. The HPN OAM interface shall provide access control facilities
to HPN OAM interface functionality.

7.8.7. ICO PROVIDED PAYLOAD COMMAND SYSTEM

7.8.7.1. GENERAL DESCRIPTION

     7.8.7.1.1. In order to make the most effective use of satellite resources,
the Satellite Resource Management Centre (SRMC) plans the frequency bandwidth,
gain, etc. allocated to each spot beam as the satellite moves (the
channelisation plan), taking into account expected traffic load. The payload
configuration data is then delivered to the ICO provided PCS for uploading to
the satellite.

7.8.7.2. GENERAL NETWORK MANAGEMENT REQUIREMENTS

     7.8.7.2.1. The interface between the Central PCS subsystem and the NMS
shall be defined by a CPCS to NMS Interface Control Document (TDB).

     7.8.7.2.2. The interface between the Remote PCS subsystem and the SAN
equipment shall be defined by a RPCS to SAN Interface Control Document (TBD).

     7.8.7.2.3. DELETED

     7.8.7.2.4. The NMC shall transfer spacecraft information collected by the
CPCS to the SRMC for the purposes of improving the use of the communications
satellite resource planning. Typically this information will consist of:
[C and] S band power levels, power thresholds (TBD), Tropo and ALC alarms.

7.8.7.3. NETWORK CONSISTENCY AND MANAGEMENT

     7.8.7.3.1. The NMS shall send to the CPCS subsystem the time window within
which the payload update is to be successfully loaded at the satellite, which is
specified by the SRMC.

     7.8.7.3.2. The NMS shall receive and report alarms from the CPCS subsystem
indicating payload update failure.

     7.8.7.3.3. DELETED

     7.8.7.3.4. The NMS shall receive and report an alarm from the CPCS that
the payload configuration is not consistent with that planned.

     7.8.7.3.5. The IG shall assume that any deviations from the planned and
actual payload configuration shall be made known to the NMC within [25] seconds.

     7.8.7.3.6. The IGF shall assume that restoration to the planned payload
configuration shall be made known to the NMS.

     7.8.7.3.7. Upon receipt of an alarm from the CPCS of inability to configure
the payload, or inconsistency of the payload configuration with that planned,
the NMS shall:

          1. Log the event and alarm details.

          2. Report the incident to the NMC operator.

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          3. Transfer the alarm information to the SCC if the operator
             considered that the spacecraft is in error.

          4. Notify all SBS and HPN subsystems in the SANs sharing the
             inconsistently configured satellite, within [20] seconds after the
             reception of the alarm, in order to stop all current and future
             planned transmissions to the affected satellite.

          5. Determine a contingency plan, if the operator decides to do so.

          6. Implement the contingency plan, if the operator decides to do so.

     7.8.7.3.8. Upon receipt of a notification from the CPCS of restoration of
     the payload configuration, or upon successful implementation of the
     contingency plan, the NMS shall notify all SBS and HPN subsystems affected
     that they can resume the transmissions.

     7.8.7.3.9. Upon receipt of a notification from the NMS of inconsistency of
     the payload configuration, the SBS and HPN shall stop all current and
     future planned transmission to the affected satellite until receipt of the
     notification from the NMS that the payload configuration has been restored
     or the contingency plan is in effect.

     7.8.7.3.10. The NMC shall provide the ability to configure the CPCS as
     defined in the CPCS to NMS ICD (TBD)

     7.8.7.3.11. It shall be possible from the NMS to configure the interval
     that payload status information is transferred to the NMS.

7.8.7.4. PAYLOAD MANAGEMENT

     7.8.7.4.1. The NMS shall be able to periodically request from the CPCS
     archived data of Payload summary status information for subsequent storage
     at the NMS. This status information shall include:

          1. [satellite power ([C and] S band)]

          2. Tropo detector events and ALC onsets

     7.8.7.4.2. The NMS shall transfer the channelisation plan information
     needed to update the satellite payload generated by the SRMC to the CPCS
     subsystem.

7.8.7.5. GENERAL OAM REQUIREMENTS

     7.8.7.5.1. The IGF shall assume that the PCS shall provide its own backup
     and restoration procedures associated with the PCS.

     7.8.7.5.2. The IGF shall assume that the PCS shall provide its own software
     upgrade facilities:

     7.8.7.5.3. The IGF shall assume that the PCS shall encompass its own
     management of the PCS equipment and software. However, status information
     shall be transferred from the CPCS to the NMS as defined in the CPCS to NMs
     ICD (TBD).

7.8.7.6 CONFIGURATION MANAGEMENT

     7.8.7.6.1. [It shall be possible from the NMS to configure PCS event
     parameters, status controls and alarms as defined by the CPCS to NMS ICD
     (TBD) and the RPCS to SAN ICD (TBD).]

7.8.7.7. FAULT MANAGEMENT

     7.8.7.7.1. The CPCS and RPCS shall forward the raising and clearing of PCS
     alarms to the NMS, according to the CPCS to NMS ICD (TBD) and RPCS to SAN
     ICD (TBD) The IGF shall assume as a minimum that the alarms include the
     following:

          1. Communication alarms [TBD].

          2. Equipment alarms [TBD].

          3. Processing error alarms [TBD].

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          4. ALC operation alarm.

          5. transmission channel overdrive protection alarm.

          6. satellite payload configuration mismatch.

          7. Payload Threshold Alarm [TBD]

     7.8.7.7.2. Each PCS alarm forwarded to the NMS shall contain:

          1. an object identifier unique to the PCS [TBD].

          2. date and time of when the alarm was raised or cleared [TBD].

          3. alarm description [TBD].

          4. source of the alarm for the purpose of fault location [TBD].

     7.8.7.7.3. [From the NMS it shall be possible to configure, purge, access,
     filter and transfer alarm data in accordance with the CPCS to NMS ICD (TBD)
     and RPCS to SAN ICD (TBD).]

7.8.7.8. PERFORMANCE MANAGEMENT

     7.8.7.8.1. [From the NMS it shall be possible to configure, purge, access,
     filter and transfer performance data from the PCS in accordance with the
     CPCS to NMS ICD (TBD) and RPCS to SAN ICD (TBD).]

7.8.7.9. DELETED.

7.8.8. RADIO FREQUENCY TERMINAL

7.8.8.1. GENERAL DESCRIPTION

     7.8.8.1.1. The RFT contains a logical OAM. The RFT can also be monitored
     and operated via the SAN-OSS and via the NMC. In normal conditions the RFT
     is monitored by the NMC, and also by the SCC for TT&C. In the event of
     serious space segment failures, the SCC may take direct control of the RFT
     equipment.

     7.8.8.1.2. The RFT OAM allows the operator to monitor and control the earth
     station radio terminal including the five tracking antennas and their
     associated subsystems, and the uplink and downlink chains.

     7.8.8.1.3. For the purposes of network management, the RFT OAM monitors the
     equipment that is shared with the TT&C subsystem at the co-located SAN/TT&C
     sites.

     7.8.8.1.4. The RFT shall encompass the management of the RFT equipment and
     software comprising the ACU, De-ice, Tracking Down Converter, Tracking
     Demodulator, C-band-HPA, S-LNA, TX/RX Path Selector, etc.

7.8.8.2. GENERAL REQUIREMENTS

     7.8.8.2.1. The RFT OAM interface shall provide access to backup and
     restoration procedures associated with the RFT.

     7.8.8.2.2. The RFT OAM interface shall provide the following software
     upgrade facilities:

          1. download new versions of software from the NMS.

          2. replace the current version of software with the new version.

          3. replace the current version of software with the previous version.

          4. extract existing software version information for the three
             versions of software.

     7.8.8.2.3. The RFT OAM shall be provided in a [hot standby] redundancy
     configuration.

     7.8.8.2.4. [The RFT OAM switchover shall not exceed 5 minutes].

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     7.8.8.2.5. A logical link shall exist between the RFT OAM and the SAN-OSS
     to support the relevant information exchange (this shall include ephemeris
     data, etc.).

     7.8.8.2.6. A direct logical interface shall be provided between the RFT OAM
     and the SCC (e.g. through the TT&C ground equipment) to exchange alarm,
     control and status information.

     7.8.8.2.7. In emergency operation of the TT&C, the RFT OAM shall accept
     commands from the SCC only, and shall reject control attempts from the
     SAN-OSS, until the TT&C returns the control back to the SRMS controller.

     7.8.8.2.8. The antenna shall be capable of Program Tracking where the
     antenna shall track the satellite autonomously based on the satellite
     ephemeris generated by the SCC and distributed via the NMC.

     7.8.8.2.9. The RFT OAM system shall consist of two MMIs as a
     primary/secondary configuration in the central building.

     7.8.8.2.10. The RFT OAM system shall provide a capability to connect
     another MMI in one of the RFT shelters.

     7.8.8.2.11. The RFT OAM shall have the capability to present a graphical
     view of the RFT configuration chains and to send a command to change the
     parameters of RFT equipment.

     7.8.8.2.12. It shall be possible to send RFT configuration commands from
     the NMC or SAN-OSS to the RFT system.

     7.8.8.2.13. The RFT OAM shall provide an event logging function.

7.8.8.3. CONFIGURATION MANAGEMENT

     7.8.8.3.1. The RFT OAM shall maintain the database as to which satellite
     each RFT Antenna is currently tracking or prepared to track at the moment.

     7.8.8.3.2. The RFT OAM interface shall provide a facility for the RFT to
     supply status to the NMS, including the following:

               7.8.8.3.3. Antenna Control Unit:

                    1. Control Mode.

                    2. Drive Mode.

                    3. Auto Transfer.

                    4. Program transfer.

                    5. Auto Enable.

                    6. Program Enable.

                    7. AZ Drive.

                    8. EL Drive.

                    9. AZ Position.

                   10. EL Position.

                   11. Satellite Acquisition.

                   12. Program Start Time.

               7.8.8.3.4. De-ice:

                    1. Operation Mode.

                    2. Control Mode.

                    3. Main REF.

                    4. Sub REF.

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                    5. Feed Horn.

                    6. Snow/ICE.

                    7. Rain.

              7.8.8.3.5. Tracking Down Converter:

                    1. Operational Condition.

                    2. Control Mode.

                    3. Frequency.

              7.8.8.3.6. Tracking Demodulator:

                    1. Operational Condition.

                    2. Beacon Level.

                    3. PLL.

              7.8.8.3.7. C-Band High Power Amplifier:

                    1. Operational Condition.

                    2. Control Mode.

                    3. Output Power.

                    4. LV.

                    5. HV.

                    6. Pre-Heat.

              7.8.8.3.8. C-Band Low Noise Amplifier:

                    1. Operational Condition.

              7.8.8.3.9. Tx/Rx Path Selector:

                    1. Control Mode.

                    2. TX Path-A/B Selection.

                    3. RX Path-A/B Selection.

              7.8.8.3.10. TT&C Up Converter:

                    1. Operational Condition.

                    2. Control Mode.

                    3. Frequency.

              7.8.8.3.11. TT&C Down Converter:

                    1. Operational Condition.

                    2. Control Mode.

                    3. Frequency.

              7.8.8.3.12. Switch:

                    1. Control Mode.

                    2. SW Status.

              7.8.8.3.13. C-Band Up Converter:

                    1. Operational condition.

              7.8.8.3.14. C-Band Down Converter:

                    1. Operational condition.

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          7.8.8.3.15. Automatic Frequency Compensation:

               1. Operational Condition.

               2. Control Mode.

               3. Pilot Frequency-1.

               4. Pilot Frequency-2.

               5. Pilot-1 Lock Status.

               6. Pilot-2 Lock Status.

               7. Hold Time.

          7.8.8.3.16. 5/7GHz Translator:

               1. Operational Condition.

               2. Control Mode.

               3. Local Frequency.

          7.8.8.3.17. RFT Summary:

               1. Operational Condition.

     7.8.8.3.18. The RFT OAM interface shall provide a facility for the TT&C to
     supply status to the NMS, including the following:

          7.8.8.3.19. TT&C upconverters:

               1. Operational condition.

               2. Frequency.

               3. Upconverter number.

          7.8.8.3.20. TT&C downconverters:

               1. Operational condition.

               2. Frequency.

               3. Down converter number.

          7.8.8.3.21. The RFT OAM interface shall forward RFT events to the NMS.

          7.8.8.3.22. The RFT OAM interface shall allow the NMS to:

               1. configure RFT event parameters.

               2. purge RFT event data.

               3. access RFT event data.

     7.8.8.3.23. The RFT OAM interface shall provide access to parameters
     requiring configuration by the NMS, including the following:

          7.8.8.3.24. Antenna Control Unit:

               1. Drive Mode.

               2. Auto Transfer.

               3. Program transfer.

               4. AZ Position.

               5. EL Position.

               6. Program Start Time.

               7. Program parameter.

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          7.8.8.3.25. De-ice:

               1. Operation Mode.

               2. Main REF.

               3. Sub REF.

               4. Feed Horn.

          7.8.8.3.26. Tracking Down Converter:

               1. Frequency.

          7.8.8.3.27. C-Band High Power Amplifier:

               1. LV.

               2. HV.

               3. Alarm Reset.

          7.8.8.3.28. Tx/Rx Path Selector:

               1. TX Path-A/B Selection.

               2. RX Path-A/B Selection.

          7.8.8.3.29. TT&C Up Converter:

               1. Frequency.

          7.8.8.3.30. TT&C Down Converter:

               1. Frequency.

          7.8.8.3.31. Switch:

               1. SW Status.

          7.8.8.3.32. 5/7 GHz Translator:

               1. Local Frequency.

     7.8.8.3.33. The RFT OAM interface shall provide access to TT&C parameters
     requiring configuration by the NMS.

7.8.8.4. FAULT MANAGEMENT

     7.8.8.4.1. The RFT OAM interface shall forward the raising and clearing of
     RFT alarms to the NMS, including the following:

     7.8.8.4.2. Communication alarms.

     7.8.8.4.3. Antenna Control Unit:

          1. Link.

          2. Operational Condition.

          3. Emergency Stop.

          4. AZ Drive Fault.

          5. EL Drive Fault.

          6. Angle Fault.

          7. Low EL.

          8. Up Limit.

          9. Down Limit.

          10.CW Limit.

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         11. CCW Limit.

         12. Dehydrator Alarm.

     7.8.8.4.4. De-ice:

          1. Major ALM.

          2. Minor ALM.

     7.8.8.4.5. Tracking Down Converter:

          1. Operational Condition.

     7.8.8.4.6. Tracking Demodulator:

          1. Operational Condition.

          2. Beacon Level Alarm.

     7.8.8.4.7. C-Bank High Power Amplifier:

          1. Link.

          2. Operational Condition.

          3. RF CCT Alarm.

          4. Cooling Alarm.

          5. INTLK Alarm.

          6. PS Alarm.

          7. Low RF.

     7.8.8.4.8. C-Bank Low Noise Amplifier:

          1. Operational Condition.

     7.8.8.4.9. Tx/Rx Path Selector:

          1. Link.

          2. Path SEL Alarm.

     7.8.8.4.10. TT&C Up Converter.

          1. Operational Condition.

     7.8.8.4.11. TT&C Down Converter.

          1. Operational Condition.

     7.8.8.4.12. C-Band Up Converter.

          1. Operational Condition.

     7.8.8.4.13. C-Band Down Converter.

          1. Operational Condition.

     7.8.8.4.14. Automatic Frequency Compensation:

          1. Operational Condition.

     7.8.8.4.15. 5/7Ghz Translator:

          1. Operational Condition.

     7.8.8.4.16. S-Band SSPA:

          1. Operational Condition.

     7.8.8.4.17. S-Bank Low Noise Amplifier:

          1. Operational Condition.

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     7.8.8.4.18. Miscellaneous Alarm:

          1. Air Conditioner.

          2. Fire Alarm.

     7.8.8.4.19. RFT Summary:

          1. Operational Condition.

     7.8.8.4.20. The RFT OAM interface shall forward the raising and clearing
     of TT&C alarms to the NMS, including the following:

     7.8.8.4.21. Equipment alarms [TT&C baseband equipment summary alarm].

     7.8.8.4.22. Each RFT alarm forwarded to the NMS shall contain:

          1. an object identifier unique to the RFT.

          2. date and time of when the alarm was raised or cleared.

          3. alarm description.

     7.8.8.4.23. The RFT OAM interface shall allow the NMS to configure RFT
     alarm parameters.

7.8.8.5. PERFORMANCE MANAGEMENT

     7.8.8.5.1. The RFT OAM interface shall allow the NMS to:

          1. configure RFT performance parameters.

          2. purge RFT performance data.

          3. access RFT performance data using filters supplied by the NMS.

          4. configure periodic transfer of RFT performance data to NMS using
             filters.

      7.8.8.5.2. The RFT performance data available through the RFT OAM
      interface shall include threshold exceeding data statistics.

7.8.8.6. SECURITY MANAGEMENT

     7.8.8.6.1. The RFT OAM interface shall provide access control facilities to
     all RFT OAM interface functionality.

7.8.9. SATELLITE BASE STATION

7.8.9.1. GENERAL DESCRIPTION

     7.8.9.1.1. The Satellite Base Station is responsible for the monitoring and
     management of the Satellite Access Subsystem and the Satellite Processing
     Subsystem. The Satellite Access Subsystem consists of the channel units and
     their associated elements. The Satellite Processing Subsystem consists of
     the channel manager and it's associated elements. The SBS domain also
     includes the OAM systems for the internal SBS Ethernet switch and GPS
     Receiver systems.

     7.8.9.1.2. SBS OMC (Operations and Maintenance Centre) hosts the logical
     functions for SBS OAM, ChU OAM, CM OAM and RTRM OAM. The SBS OMC includes
     element management for CM, ChU, RTRM and SBS Ethernet Switch.

7.8.9.2. GENERAL REQUIREMENTS

     7.8.9.2.1. The SBS OAM interface shall provide access to backup and
     restoration procedures associated with the SBS.

     7.8.9.2.2. The SBS OAM interface shall provide the following software
     upgrade facilities:

          1. download new versions of software from the NMS.

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          2.   replace the current version of software with the new version.

          3.   replace the current version of software with the previous
               version.

          4.   extract existing software version information for the three
               versions of software.

     7.8.9.2.3. The SBS OAM interface shall allow the NMS to:

          1.   configure SBS resource usage parameters.

          2.   initiate archiving of the SBS resource usage data.

          3.   purge SBS resource usage data.

          4.   access SBS resource usage data using filters supplied by the NMS.

     7.8.9.2.4. The SBS OMC shall use an industry standard remote window
     protocol for displaying all SBS control and configuration applications on
     the SAN-OSS console.

     7.8.9.2.5. The SBS OMC shall use an industry standard network management
     protocol to forward events and alarms to the SAN-OSS.

     7.8.9.2.6. The SBS OMC shall transfer bulk statistics to the SAN-OSS via
     industry standard file transfer protocol. The transfer shall occur
     automatically on a timed schedule or via SBS OMC operator command.

7.8.9.3. CONFIGURATION MANAGEMENT

     7.8.9.3.1. The SBS OAM interface shall provide a facility for the SBS to
     supply status to the NMS, including the following:

          1.   Channel Units.

          2.   Channel Manager.

          3.   Call Processor.

          4.   Channel Processor.

          5.   Switching and Transcoding Module (STM).

          6.   E1 Cards.

          7.   T1 Cards.

          8.   Ethernet Cards.

          9.   RTRM

     7.8.9.3.2. The SBS OAM interface shall forward SBS events to the NMS.

     7.8.9.3.3. The SBS OAM interface shall allow the NMS to:

          1.   configure SBS event parameters.

          2.   initiate archiving of the SBS event data.

          3.   purge SBS event data.

          4.   access SBS event data.

     7.8.9.3.4. The SBS OAM interface shall provide access to parameters
     requiring configuration by the NMS.

     7.8.9.3.5. The SBS OAM interface shall provide access to Channel Manager
     parameters requiring configuration by the NMS, including the following:

          1.   Traffic switching between air interface and MSSC.

          2.   Ciphering control.

     7.8.9.3.6. The SBS OAM interface shall provide access to Channel Unit
     parameters requiring configuration by the NMS, including the following:

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          1.   Operational state.

          2.   Software download.

     7.8.9.3.7. The SBS OAM interface shall provide access to RTRM parameters
     requiring configuration by the NMS, including the following:

          1.   threshold for disk utilisation.

7.8.9.4. FAULT MANAGEMENT

     7.8.9.4.1. The SBS OAM interface shall forward the raising and clearing of
     SBS alarms to the NMS, including the following:

          1.   Communication alarms.

          2.   Equipment alarms.

          3.   Processing error alarms.

          4.   Quality of service alarms.

     7.8.9.4.2. The SBS OAM interface shall forward the raising and clearing of
     Channel Manager alarms to the NMS, including the following:

          1.   Communication alarms.

          2.   Equipment alarms.

          3.   Processing error alarms.

     7.8.9.4.3. The SBS OAM interface shall forward the raising and clearing of
     Channel Unit alarms to the NMS, including the following:

          1.   Communication alarms.

          2.   Equipment alarms.

          3.   Processing error alarms.

     7.8.9.4.4. The SBS OAM interface shall forward the raising and clearing of
     RTRM alarms to the NMS, including the following:

          1.   Communication alarms.

          2.   Equipment alarms.

          3.   Processing error alarms.

          4.   Disk utilisation exceeds threshold.

     7.8.9.4.5. Each SBS alarm forwarded to the NMS shall contain:

          1.   an object identifier unique to the SBS.

          2.   date and time of when the alarm was raised or cleared.

          3.   alarm description.

          4.   source of the alarm for the purpose of fault location.

     7.8.9.4.6. The SBS OAM interface shall allow the NMS to:

          1.   configure SBS alarm parameters.

          2.   initiate archiving of the SBS alarm data.

          3.   purge SBS alarm data.

          4.   access SBS alarm data using filters supplied by the NMS.

7.8.9.5. PERFORMANCE MANAGEMENT

     7.8.9.5.1. The SBS OAM interface shall allow the NMS to:

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          1. configure SBS performance parameters.

          2. initiate archiving of the SBS performance data.

          3. purge SBS performance data.

          4. access SBS performance data using filters supplied by the NMS.

          5. configure periodic transfer of SBS performance data to NMS.

     7.8.9.5.2. The SBS performance data available through the SBS OAM
     interface shall include the following:

          1. Channel Unit performance statistics.

          2. Channel Manager performance statistics.

          3. Number of channel requests.

          4. Diversity allocation attempts.

          5. Page requests.

          6. Number of beam handovers.

          7. Number of satellite handovers.

          8. Number of channel units in use (traffic/control).

          9. Number of active calls.

          10.Number of failed calls due to hand-off failures.

     7.8.9.5.3. The Channel Manager performance data available through the SBS
     OAM interface shall including the following:

          1. Internal Handovers with successful re-establishment per ChM.

          2. Internal Handovers without successful re-establishment per ChM.

          3. Total requests for connections.

          4. Total paging messages per ChM.

     7.8.9.5.4. The Channel Unit performance data available through the SBS OAM
     interface shall include the following:

          1. Processor utilisation.

          2. Burst plans.

     7.8.9.5.5. The RTRM performance data available through the SBS OAM
     interface shall include the following:

          1. Number of channel units in use.

          2. Number of active channels.

          3. Number of channel handover attempts.

          4. Number of channel handover failures.

          5. Attempted handovers over beam, frequency, z-arc, satellite.

          6. Failed handovers over beam, frequency, z-arc, satellite.

     7.8.9.5.6. The performance measurements recorded by the SBS and available
     through the SAN-OSS OAM interface shall include the information to allow
     the calculation of:

          1. total call (radio session) holding time categorised by UT location,
             mobile-originated or mobile-terminated, [service type], class of
             diversity, time and date.

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          2. total call (radio session) count (attempts and completion)
             categorised by UT location, mobile-originated or mobile-terminated,
             [service type], class of diversity, time and date.

     7.8.9.5.7. The call (radio session) attempt count shall include ones that
     are blocked by the lack of frequency resources. The interval and
     resolution of measurements shall be chosen so that the measurement data
     can be efficiently utilised for traffic planning at the SRMC.

     7.8.9.5.8. The performance measurements, identified above, recorded by
     the SBS shall be made available to the SRMC through the SAN-OSS.

     7.8.9.5.9. Any Radio Session statistics data will be collected and
     reported on a per SBS basis, and will not span a SAN-to-SAN handover.

7.8.9.6.  SECURITY MANAGEMENT

     7.8.9.6.1. Access through the SBS OAM interface shall be controlled using
     password-based logins and feature control lists for SBS applications.

7.8.10.   TERRESTRIAL NETWORK MANAGER

7.8.10.1. GENERAL DESCRIPTION

     7.8.10.1.1. Each SAN has a Terrestrial Network Manager (TNM) to provide
     ICO-net routing, optimisation and vocoding functions. The TNM system
     interfaces between the MSSCs and the Channel Managers. The TNM routes
     calls to SANs, and invisibly to the MSSC and Channel Managers, and
     provides multiplexing for Inter-Site links and vocoding for Air Interface
     transmission via the Channel Managers.

     7.8.10.1.2. The TNM will also manage the DCN (refer to Section 7.8.11).

7.8.10.2.  GENERAL REQUIREMENTS

     7.8.10.2.1. The TNM OAM interface shall provide access to backup and
     restoration procedures associated with the TNM.

     7.8.10.2.2. TNM OAM failure switchover shall be automatic.

     7.8.10.2.3. The TNM OAM interface shall provide the following software
     upgrade facilities:

          1. download new versions of software from the NMS.

          2. replace the current version of software with the new version.

          3. replace the current version of software with the previous version.

          4. extract existing software version information for the above three
     versions of software.

7.8.10.3.  CONFIGURATION MANAGEMENT

     7.8.10.3.1. The TNM OAM interface shall provide a facility for the TNM to
     supply status to the NMS, including the following:

          1. RPC.

          2. RPN.

          3. MUX/Vocoder.

          4. intersite route health status for the SAN.

     7.8.10.3.2. The TNM OAM interface shall forward TNM events to the NMS.

     7.8.10.3.3. The TNM OAM interface shall allow the NMS to:

          1. configure TNM event parameters.

          2. initiate archiving of the TNM event data.

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          3. purge TNM event data.

          4. access TNM event data.

     7.8.10.3.4. The TNM OAM interface shall provide access to parameters
     requiring configuration by the NMS, including the following:

          1. RPC.

          2. RPN.

          3. MUX/Vocoder.

          4. intersite routing tables.

7.8.10.4. FAULT MANAGEMENT

     7.8.10.4.1. The TNM OAM interface shall forward the raising and clearing
of TNM alarms to the NMS, including the following:

          1. Communications alarms.

          2. Equipment alarms.

          3. Processing error alarms.

          4. Quality of service alarms.

     7.8.10.4.2. Each TNM alarm forwarded to the NMS shall contain:

          1. an object identifier unique to the TNM.

          2. date and time of when the alarm was raised or cleared.

          3. alarm description.

          4. source of the alarm for the purpose of fault location.

     7.8.10.4.3. The TNM OAM interface shall allow the NMS to:

          1. configure TNM alarm parameters.

          2. initiate archiving of the TNM alarm data.

          3. purge TNM alarm data.

          4. access TNM alarm data using filters supplied by NMS.

     7.8.10.4.4. The TNM OAM shall support alarm filtering.

     7.8.10.4.5. The TNM OAM shall support the same number of alarm severity
     levels (critical, major, minor, warning as referred to in Section 7.3) as
     the SAN-OSS for the purpose of categorising alarms displayed at an MMI.

7.8.10.5. PERFORMANCE MANAGEMENT

     7.8.10.5.1. The TNM OAM interface shall allow the NMS to:

          1. configure TNM performance parameters.

          2. initiate archiving of the TNM performance data.

          3. purge TNM performance data.

          4. access TNM performance data using filters supplied by the NMS.

     7.8.10.5.2. configure periodic transfer of TNM performance data to NMS
     using filters.

7.8.10.6. SECURITY MANAGEMENT

     7.8.10.6.1. The TNM OAM interface shall provide access control facilities
     to all TNM OAM interface functionality.

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7.8.11. DIGITAL COMMUNICATION NETWORK

7.8.11.1. GENERAL

     7.8.11.1.1. The Digital Communication Network (DCN) is described in Section
     6.5.

     7.8.11.1.2. The DCN is integrated with the TNM OAM and forms part of the
     TNM OAM interface.

     7.8.11.1.3. The management of the DCN and DCN components shall be the
     responsibility of the local TNM. The TNM OAM interface to the SAN-OSS and
     NMC shall support the DCN management functions. The DCN management
     functions shall include the functionalities listed below and in Sections
     7.8.11.2, 7.8.11.3 and 7.8.11.4:

          1. Each SAN DCN Encryption Device

               a. Normal/Fail

               b. I/O stream Normal/Fail

               c. [Bypass/Normal]

               d. [Configuration status]

          2. Each SAN DCN Router/Bridge

               a. Normal/Fail

               b. Link Fail Alarm (if provided by selected equipment)

               c. Router statistics (via text dump, information provided will be
                  vendor dependent)

               d. Router Table Display (via text dump)

               e. Router Table Load (via file download)

          3. Each SAN TNM DCN MUX

               a. Normal/Fail

               b. I/O stream Normal/Fail

               c. Configuration status

               d. Configuration change

               e. [Diagnostics]

          4. TNM OAM Aggregated Status

               a. DCN Direction/Route Normal/Fail (e.g. Dir A, Route B Fail)

               b. TNM Communications Timeout (link health check).

7.8.11.2. CONFIGURATION MANAGEMENT

     7.8.11.2.1. The TNM OAM shall provide a facility for the TNM to supply
     status to the NMS, including the following:

          1. [DCN Encryption Device] at each SAN, at the NMCs and at the OT&DF
             (if provided);

          2. TNM DCN MUX at each SAN, at the NMCs and at the OT&DF (if
             provided);

          3. TNM Communications Timeout (link health check);

          4. DCN Direction/Route status

     7.8.11.2.2. The TNM OAM shall provide a facility for the DCN Router/Bridge
     at each SAN, at the NMCs and at the OT&DF (if provided) to display the
     Router Table.

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     7.8.11.2.3. The TNM OAM interface shall provide the facility to download
     the Router Table (for the DCN Router/Bridge at each SAN, at the NMCs and at
     the OT&DF (if provided)) from the NMS.

     7.8.11.2.4. The TNM OAM interface shall provide a facility for the NMS to
     change the configuration of the DCN Router/Bridge at each SAN, at the NMCs
     and at the OT&DF (if provided) and [of the DCN Encryption Device at each
     SAN, at the NMCs and at the OT&DF (if provided)].

     7.8.11.2.5. The TNM OAM interface shall provide a facility for the NMS to
     get/set the enabled/disabled status of the encryption on each link (DCN
     Encryption Device Bypass/Normal).

7.8.11.3. FAULT MANAGEMENT

     7.8.11.3.1. The TNM OAM interface shall forward to the NMS the raising and
clearing of the alarms, including the following:

          1. DNC Encryption Device at each SAN, at the NMCs and at the OT&DF (if
             provided);

          2. I/O Stream for the DCN Encryption Device at each SAN, at the NMCs
             and at the OT&DF (if provided);

          3. DCN Router/Bridge failure at each SAN, at the NMCs and at the OT&DF
             (if provided);

          4. DCN Router Bridge Link Failure;

          5. TNM DCM MUX failure at each SAN, at the NMCs and at the OT&DF (if
             provided);

          6. I/O stream for the TNM DCN Mux at each SAN, at the NMCs and at the
             OT&DF (if provided);

          7. TNM Communication Timeout;

          8. DCN Direct/Route Alarm.

     7.8.11.3.2. [The TNM OAM interface shall provide diagnostics information
     for the TNM DCN MUX at each SAN, at the NMCs and at the OT&DF (if
     provided)].

7.8.11.4. PERFORMANCE MANAGEMENT

     7.8.11.4.1. The TNM OAM interface shall support access to router generated
     statistics for the DCN Router/Bridge at every SAN, at the NMCs and at the
     OT&DF (if provided).

     7.8.11.4.2. (F/R) Typical DCN performance data to be reported to the NMS
     shall include:

          1. network congestion;

          2. error rate;

          3. latency.

7.8.12. ICONET SYNCHRONISATION SYSTEM

7.8.12.1. GENERAL DESCRIPTION

     7.8.12.1.1. Accurate timing/frequency synchronisation between elements of
     the ground network, radio/satellite and interconnecting terrestrial
     networks needs to be accomplished in order to support the mobile services
     being provided. At the system level the NMC requires to be able to control,
     audit and manage the network synchronisation as identified in Section
     6.25.1. For this purpose, the synchronisation system is to be treated as a
     logical network element.

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     7.8.12.1.2. At the physical level, timing devices may well be integrated
     into the various network elements (e.g. SBS, TNM, etc.), and hence be
     monitored and managed by the controlling OAM. (SBS OAM, TNM OAM, etc.).
     However, this management needs to be pulled together and co-ordinated in
     order to provide a higher level view of the synchronisation subsystem at
     both the SAN-OSS and NMC. In addition, should additional external
     synchronisation devices be necessary then these will need to be managed
     through the synchronisation system OAM.

7.8.12.2. GENERAL REQUIREMENTS

     7.8.12.2.1. From the NMC it shall be possible to graphically determine the
     hierarchical synhcronisation network architecture being employed (e.g.
     active primary reference clock systems) and the real time status (e.g. GPS
     receiver device status, etc.).

     7.8.12.2.2. The NMC shall support an interface to the SCC for the receipt
     of ephemeris data to be transferred to the SAN SRMS for delay estimation
     purposes as outlined in Section 6.25.1.3.

     7.8.12.2.3. The following management functions in 7.8.12.3 to 7.8.12.6
     shall be applicable where provided by the network elements.

7.8.12.3 CONFIGURATION MANAGEMENT

     7.8.12.3.1 From the NMC it shall be possible to activate re-synchronisation
     procedures in the case of fault and alarm conditions (timing deviations)
     being reported across the system.

     7.8.12.3.2 From the NMC it shall be possible to introduce changes to the
     synchronisation mechanism with the minimal of disruption (i.e. switching to
     back-up or alternate timing sources, switching to another SAN timing
     mechanism, etc.). This configuration capability shall exist to the element
     level.

     7.8.12.3.3. Switchover to primary and/or secondary timing sources shall be
     co-ordinated with the NMC beforehand (normal operation) or the NMC shall be
     notified immediately afterwards (emergency operation).

     7.8.12.3.4. It shall be possible to undertake configuration audits
     concerning the synchronisation systems from the NMC for tracing and
     investigative purposes.

7.8.12.4. FAULT MANAGEMENT

     7.8.12.4.1. Devices making up the synchronisation system shall be
     continually monitored for fault and alarm conditions (e.g. device failures,
     etc.).

     7.8.12.4.2. It shall be possible to configure fault thresholds to report
     aspects such as timing deviation levels, update rates, etc. from the NMC
     (global) or SAN-OSS (local).

     7.8.12.4.3. The SAN-OSS shall filter and co-ordinate synchronisation data
     from the various timing devices and provide a summary of fault and alarm
     reporting to the NMC.

7.8.12.5. PERFORMANCE MANAGEMENT

     7.8.12.5.1. The SAN-OSS shall collate and conduct suitable trend analysis
     on performance data concerning the synchronisation elements.

     7.8.12.5.2. The NMC shall collate and conduct suitable trend analysis on
     reported synchronisation performance data across the ICONET and report
     conformance against the active network synchronisation plan.

     7.8.12.5.3. Measurement and reporting of conformation of the
     synchronisation system against the criteria set in Section 6.25 shall be
     available (e.g. timing accuracy measures, stability, etc.).

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7.8.12.6. SECURITY MANAGEMENT

          7.8.12.6.1. Access control mechanisms shall be implemented concerning
          the synchronisation mechanism.

          7.8.12.6.2. Access through the Synchronisation System OAM shall be
          controlled using password-based logins.

7.8.13.   C-C SUBSYSTEM

          7.8.13.1. It shall be possible for the NMS to:

               a) Display C-C link assignments per site (e.g. frequency, power)

               b) monitor status of C-C link

               c) [Control and] Manage C-C frequency/power allocation, as the
                  equipment allows.

7.8.14.   ICO ADMINISTRATIVE DATA CENTRE

          7.8.14.1. The ICO Administrative Data Centre (ADC) is involved in the
          activities of provisioning, billing, partner care and legal
          interception.

          7.8.14.2. The ADC shall provide its status to the NMS at all times.
          Any fault in the ADC shall be notified to the NMS.

          7.8.14.3. NMS shall perform a Health Check to the ADC periodically.
          The time interval shall be operator configurable.

          7.8.14.4. Any CDR Log Alarm detected by the ADC shall be notified to
          the NMS.

          7.8.14.5. Billing related complaints which can not be resolved at the
          ADC shall be forwarded to the NMS for possible resolution via call
          tracing facility at the NMS.

          7.8.14.6. Relevant CDRs shall be sent from the ADC to the NMS.

          7.8.14.7. Service affecting alarms shall be notified from the NMS to
          the I-ADC.

7.9.      LEGAL INTERCEPTION MANAGEMENT SYSTEM

7.9.1.    GENERAL REQUIREMENTS

          7.9.1.1. The Legal Interception Management System (LIMS) shall provide
          OAM functionalities for the Legal Interception System (LIS). It shall
          encompass LIS equipment, associated software, processing, monitoring
          and control.

          7.9.1.2. The LIMS shall provide access to backup and restoration
          procedures associated with the LIS equipment.

          7.9.1.3. The LIMS shall provide the following software upgrade
          facilities:

               1. download new versions of software to the LIAS from the LIMS.

               2. replace the current version of software with the new version.

               3. replace the current version of software with the previous
                  version.

               4. extract existing software version information for the two
                  versions of software (i.e. the current version and the
                  previous version) stored in the LIAS.

7.9.2.    CONFIGURATION MANAGEMENT

          7.9.2.1. A facility shall be provided for the LIAS to supply its
          status to the LIMS.

          7.9.2.2. The LIAS shall forward its events to the LIMS.

          7.9.2.3. The LIMS shall be able to:

               1. configure LIAS event parameters.

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             2. initiate/suppress logging of the LIAS event data.

             3. support logging of up to 3 days of LIAS event data in a buffer.

             4. support saving of the logged LIAS event data in a file for
                long term online archiving. The long-term archive shall hold a
                minimum of 90 days of data storage.

             5. access LIAS event data.

       7.9.2.4. The LIAS shall provide access to parameters requiring
                configuration by the LIMS.

7.9.3. FAULT MANAGEMENT

       7.9.3.1. The raising and clearing of LIAS alarms shall be reported to the
       LIMS, including the following alarm types:

             1. Communication alarms.

             2. Equipment alarms.

             3. Software error alarms.

       7.9.3.2. Each LIAS alarm forwarded to the LIMS shall contain:

             1. an object identifier unique to the LIAS.

             2. date and time of when the alarm was raised or cleared.

             3. alarm description.

             4. alarm severity.

             5. source of the alarm for the purpose of fault location.

       7.9.3.3. The LIMS shall be able to:

             1. configure LIAS alarm parameters.

             2. initiate/suppress logging of the LIAS alarm data.

             3. support logging of up to 3 days of LIAS alarm data in a
                buffer.

             4. support saving of the logged LIAS alarm data in a file for
                long term online archiving. The long-term archive shall hold
                a minimum of 90 days of data storage.

             5. access LIAS alarm data using filters supplied by the LIMS.

7.9.4. PERFORMANCE MANAGEMENT

       7.9.4.1. The LIMS shall be able to:

             1. configure LIAS system performance parameters (e.g. processor
                overload threshold, cache memory allocation).

             2. monitor LIAS system performance (e.g. processor overload
                performance, memory resource usage).

             3. initiate/suppress logging of LIAS system performance data.

             4. access LIAS system performance data using filters supplied
                by the LIMS.

             5. configure periodic transfer of LIAS system performance data
                to the LIMS using filters.

             6. generate operational statistical data (e.g. number of
                intercepted calls per hour).

7.9.5. SECURITY MANAGEMENT

       7.9.5.1. At the LIMS it shall be possible to provide access control
                facilities.

       7.9.5.2. The LIMS shall provide strict isolation of warrants submitted
                by different agencies.

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8. PERFORMANCE REQUIREMENTS

8.1. CONDITIONS FOR PERFORMANCE REQUIREMENTS

     8.1.1. Except where otherwise stated, all performance requirements shall be
     measured under the "Initial Value" load defined in Table 9-1 of Section
     9.2.

8.2. BASIC QUALITY OF SERVICE

8.2.1. IGF VOICE LOOP DELAY

     8.2.1.1. This is defined as the time from the inlet to the MSSC (4 wire
     mode) through the local TNM and via a remote TNM to the remote SBS output
     looped back at IF through the same SBS and the same TNM back to the MSSC
     inlet, in accordance with Test Configuration No. 2. The distance between
     the local TNM and the remote TNM shall be negligible. The transmitting
     channel unit shall be configured for the modulation scheme to be the same
     as the receiving channel unit.

     8.2.1.2. The average IGF voice loop delay shall be less than 290
     milliseconds assuming no other traffic.

8.2.2. SPEECH QUALITY IN MOS

     8.2.2.1. This shall be measured using a test path as defined for the one
     way transmission delay time.

     8.2.2.2. Value of speech quality shall be not less than [0.2] MOS less than
     the value achieved from a test of the vocoder algorithm connected in the
     standard manufacturer's supply environment hardware.

8.2.3. PROBABILITY OF CALL LOSS

     8.2.3.1. For a call passing via an MSSC, the local TNM and local SBS to a
     UT via a satellite channel simulator, and subjected to blockage according
     to the channel blockage model defined below the probability of call loss
     excluding failures on the terrestrial side of the MSSC and errors in the UT
     shall be no greater than [0.1]% per minute of call holding time provided
     the radio link timer is set to more than 10 seconds and there are no other
     radio link impairments.

     8.2.3.2. The channel blockage model for this requirement shall be one in
     which the radio link has no more than 10 second blockage in a single
     interruption and no more than 15 seconds aggregate blockage in a minute.

8.2.4. HANDOVER PERFORMANCE

8.2.4.1. HANDOVER INITIATION DELAY

     8.2.4.1.1. The handover initiation delay is defined as the period from the
     moment the handover decision is made to the first bit of "Handover Command"
     is sent out of the SAN antenna to the UT. The required execution times are:

          1. Intra Channel Manager: no more than 1 second for 95% of the time.

          2. Inter-Channel Manager (same SBS): no more than 3 seconds for 95% of
             the time.

          3. Inter-SBS: no more than 6 seconds for 95% of the time. The distance
             between the two SAN sites is assumed to be no more than 15,000km.

8.2.5. HANDOVER PERFORMANCE

     8.2.5.1. The probability of the success of the complete Handover procedure
     shall be 99.5% providing the resources are available and excluding errors
     in the UT and propagation errors.

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     8.2.5.2. In the procedure for handover by channel re-assignment, the
     duration from the receipt of the Reassignment Complete at SBS to the
     re-connection of the traffic communication path shall not exceed:

          1. Inter Channel Manager (same SBS)     [40 msec] for 95% of time.

          2. Inter SBS                            [80 msec] for 95% of time.

8.3. SMS QUALITY OF SERVICE

8.3.1. DELIVERY TIME

     8.3.1.1. The delivery time for a short message from the entry point of the
     SMSC to the output of the SMSC shall be no greater than 10 seconds for 95%
     of the time under the busy hour loading condition as defined in Table 9-1
     of Section 9.2.

8.3.2. PROBABILITY OF SMS NON-DELIVERY ON EACH DELIVERY ATTEMPT.

     8.3.2.1. The SMSC shall not lose any SMS message at any time under normal
     operating conditions and under the busy hour loading condition as defined
     in Table 9-1 of Section 9.2.

8.4. AUTOMATIC FACSIMILE GROUP 3 (UP TO 9600bps) QUALITY OF SERVICE

8.4.1. TRANSPARENT MODE

     8.4.1.1. The one way transmission delay shall be no greater than [300]
     msec, assuming lowest delay slot assignment, for Test Configuration No. 2

     8.4.1.2. The probability of lost calls (% per minute of call holding time)
     shall be no greater than 0.1% without noise injection

8.5. CIRCUIT MODE DATA (UP TO 9600bps) QUALITY OF SERVICE

8.5.1. TRANSPARENT MODE

     8.5.1.1. The one way transmission delay shall be no greater than [300]
     msec, assuming lowest delay slot assignment, for Test Configuration No. 2

     8.5.1.2. The probability of lost calls (% per minute of call holding time)
     shall be no greater than 0.1% without noise injection.

8.6. CIRCUIT MODE DATA (GREATER THAN 9600bps) QUALITY OF SERVICE (TBD)

8.7. HPN QUALITY OF SERVICE

8.7.1. HPN IDLE MODE

     8.7.1.1. The IGF shall allow a UT in HPN coverage and conformant with the
     AI specifications to maintain HPN operation with a duty cycle of [0.5]%.

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8.7.2.  HPN MESSAGE DELAY

        8.7.2.1 The HPN subsystem shall have an average delay in transmitting a
                double length burst message, for e.g. SMS notification, or a
                quadruple length burst message, for e.g. failed MT call,
                including CLI, for the first delivery attempt (at 90% system
                capacity) of less than 3 or 4 minutes respectively; from the
                time that the message is received at the HPN-SC. The above
                condition shall be met when there are no pending messages for
                the UT at the HPN-SC.

8.7.3. HPN CAPACITY

        8.7.3.1 The NMC, SRMC and HPN subsystems shall support the mechanisms
                in the Air Interface to allow a variable HPN capacity.

        8.7.3.2 The MSSC and HPN subsystem at each SAN shall support delivery
                of the following new message rates at each SAN:

                1. 3 HPN escalations/sec due to failed MT-SMS

                2. 6 HPN escalations/sec due to failed MT call attempts.

        8.7.3.3 The HPN subsystem shall modify message repeat mechanisms and
                flow control to prevent significant performance degradation in
                the event of over-loading.

        8.7.3.4 The HPN subsystem shall allow highly non-uniform message
                distribution with up to [1/4] of the traffic able to be handled
                in any one beam.

8.7.4. HPN TRANSMITTER AND RECEIVER CHARACTERISTICS

        8.7.4.1 The HPN transmit channel units shall be capable of tuning to
                any IF frequency returning to any frequency within a +/-220 kHZ
                offset from any valid HPN transmit frequency to a resolution of
                < 10Hz and shall stabilise within 10usec from receipt of a
                returning command.

        8.7.4.2 The HPN receiver shall have the following characteristics for
                the ACK/HP channel.

                1. False Alarm Rate                  <0.001

                2. Detection Probability             >[92]%

                3. Receive Frequency Uncertainty     (plus minus) 2.5 kHZ

                4. Receive burst Timing Uncertainty  (plus minus) 2.5 msec

                5. Channel Fading Bandwidth          30 Hz         AWGN

                6. Received Phase Noise              6 degrees rms
                                                     6 degrees rms

                7. Receiver Signal Level             [41.5]dB Hz   [31.5]dB Hz

8.8.    GSM SUPPLEMENTARY SERVICES QUALITY OF SERVICE

8.8.1.  TIME TO INVOKE OR CHANGE A SUPPLEMENTARY SERVICE

        8.8.1.1. The maximum time from initiating a Supplementary Service
                Request until when this service has become available or changed
                (as requested by the user), including authentication, if
                required, shall be no greater than 400 msec.

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8.9.    SECTION NOT USED

8.10.   SBS PERFORMANCE

8.10.1. CHANNEL ASSIGNMENT DELAY (RACH TO AGCH)

        Definition

        8.10.1.1. Start instant: Input of the last bit of the RACH into the RFT
                  antenna.

        8.10.1.2. End instant: Output of the first bit of the AGCH from the RFT
                  antenna.

        Test conditions:

        8.10.1.3. No AGCH queue

        8.10.1.4. Performance requirement:

        Delay less than 400 ms with 95% probability under full load

8.10.2. PAGING DELAY

        Definition

        8.10.2.1. Start instant: Input of the last bit of the Page Request
                  message into the SBS C7 link

        8.10.2.2. End instant: Output of the first bit of the PCH from the RFT
                  antenna.

        Test conditions:

        8.10.2.3. No PCH queue; paging to a single beam.

        8.10.2.4. Performance requirement:

        Delay less than 400 ms with 95% probability under full load.

8.10.3. POSITION DETERMINATION DELAY

        Definition

        8.10.3.1. Start instant: Input of the last bit of the Initial Message
                  into the RFT antenna

        8.10.3.2. End instant: Output of the first bit of the CM Service
                  Request message into the SBS C7 link

        Test conditions:

        8.10.3.3. No C7 queue

        8.10.3.4. Performance requirement:

        Delay less than 350 ms with 95% probability under full load.

8.10.4. SECTION NOT USED

8.10.5. SIGNALLING TRANSIT TIME

        8.10.5.1. The SBS-transparent signalling messages transit time is
                  defined as the last bit of the message into the SBS and the
                  first bit of the corresponding message out of the SBS and
                  shall be no more than 110 ms for 95% of the time for
                  channels other than SDCCH/2, and the 190 ms for 95% of the
                  time for the SDCCH/2 channel.

8.10.6. VOICE TRAFFIC TRANSIT TIME

        8.10.6.1. The voice traffic transit time is defined as the duration
                  between the last bit of a voice frame into SBS and the first
                  bit of the corresponding voice frame out of SBS, including
                  the FEC/Timing Part of the Voice Codec, and shall be less
                  than the following values.

                        1. With diversity: no more than 40ms longer than the
                           case without diversity.

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             2. Without diversity: no more than 49 ms (forward direction) and
                62 ms (return direction) for 95% of the time assuming optimum
                slot synchronisation with the TNM.

8.10.7. NON-VOICE TRAFFIC TRANSIT TIME

        8.10.7.1. The non-voice traffic transit time is defined as the duration
        between the last bit of a frame into SBS and the first bit of the
        corresponding frame out of SBS, and with no handover take place and
        shall be less than the corresponding values for voice plus slot
        alignment delay plus any interleaving delay.

8.10.8. LAYER 2 ACKNOWLEDGEMENT DELAY

        Definition

        8.10.8.1. Start instant: Input of the last bit of a Layer 2 Signal Unit
        with the P bit set to 1 into the SBS demodulator.

        8.10.8.2. End instant: Output of the first bit of the corresponding
        Layer 2 Signal Unit containing the acknowledgement to the received
        Signal Unit described in 8.10.8.1 from SBS demodulator.

        Test conditions:

        8.10.8.3. The Layer 2 used is in the acknowledgement mode.

        Performance requirement:

        8.10.8.4. Mean delay less than 150 ms.

        8.10.8.5. 95 percentile delay less than 180 ms.

8.11. AVAILABILITY

8.11.1. DEFINITIONS

        8.11.1.1. The availability of the elements of a SAN site that support
        the traffic, voice and data (customer), switching and transport
        capacity of a SAN shall be calculated using the definitions, redundancy
        schemes, and associated equations of Bellcore Document, GR-512 CORE
        (Revision in effect on 31 October 1966).

        8.11.1.2. A SAN shall be defined as being available when it can process
        and transport more than 70% of its rated traffic switching and
        transport capacity. When the SAN has lost 30% or more of its rated
        traffic switching and transport capacity due to SAN equipment failure
        the SAN shall be defined as unavailable.

        8.11.1.3. Failures of SAN site power shall not be counted in
        calculating SAN availability.

        8.11.1.4. Failure due to operator error, external physical damage to
        equipment or planned outages shall not be counted in calculating SAN
        availability.

        8.11.1.5. Failure of Network Management, SRMC, HPN and other equipment
        that does not result in loss of SAN switching, transport or processing
        of voice and data traffic capacity shall not be counted in calculating
        SAN availability.

        8.11.1.6. The availability of the following elements shall be specified
        and shall be considered available when each element can support at least
        70% of its rated traffic (voice, data or administration information)
        transport and processing load.

        8.11.1.7. The systems shall be considered unavailable when the elements
        are unable to support at least 70% of their rated traffic (voice, data
        or administration information) transport and processing load due to IGF
        equipment failure.

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8.11.2. REQUIREMENTS

        8.11.2.1. For purpose of availability calculation, the MTTR shall be 4
        hours or less for all replaceable elements of the SAN, NMC or Back up
        NMC, stocked on site, or 7 days for elements not stocked on site.

        8.11.2.2. Basis of MTBF estimate shall be stated (e.g. data,
        comparison).

        8.11.2.3. The Availability of a SAN site as defined above shall be
        equal or greater than 0.9996.

        8.11.2.4. The availability of each traffic carrying subsystem of the
        IGF (including MSSC/VLR, HLR, ILR, IN Platform, TNM, SBS, and RFT
        subsystem) shall be equal or greater than 0.9999.

        8.11.2.5. The IGF shall be designed so that the reliability of the NMC
        and non-traffic carrying elements of each SAN is not a significant
        factor in the SAN availability.

        8.11.2.6. Availability of the HPN subsystem shall be greater than
        [0.9996].

        8.11.2.7. Offered traffic levels of up to 150% of the rated capacity
        shall be supported without any system failures.

        8.11.2.8. Beyond the 150% of the rated capacity, rejection of calls
        shall be used to maintain the system in operation.

        8.11.2.9. During the rejection process the system capacity may be less
        than 100% of the rated capacity. The MSSC shall support the rejection of
        Network Originated traffic during this period. The SBS shall support the
        rejection of UT Originated traffic during this period.

        8.11.2.10. Availability of the Legal Interception Subsystem (LIS) shall
        be greater than 0.9999.

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                             [Availability Diagram]

                        FIGURE 8-1  AVAILABILITY DIAGRAM
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8.11.3.  ENVIRONMENTS

8.11.3.1.  GENERAL
           8.11.3.1.1.  The equipment composing the IGF shall operate under the
           following environmental conditions.

8.11.3.2.  EQUIPMENT IN THE MAIN BUILDING
8.11.3.2.1. Temperature, Humidity and Altitude Requirements:
            1. IEC 721-3-3 Class 3K2. See Figure 8-2.
            2. TEMPERATURE: 15(degrees)C to 30(degrees)C
            3. HUMIDITY: 10% to 75% RH, Relative Humidity, bounded by an
               absolute humidity range of 2 g/m(3) to 22 g/m(3).
            4. ALTITUDE: 0-10,000 feet, 0-3050 meters

8.11.3.2.2. Mechanical Requirements:
            1. IEC 721-3-3 class 3M1
            2. SINUSOIDAL VIBRATION: 0.3 mm 2-9 Hz, 1m/s(2) 9-200 Hz
            3. NON STATIONARY VIBRATION INCLUDING SHOCK: 40 m/s(2) response
               spectrum L

8.11.3.3.   EQUIPMENT IN THE RFT SHELTER
8.11.3.3.1. Temperature, Humidity and Altitude Requirements:
            1. TEMPERATURE: 10(degrees)C to 40(degrees)C full performance
               -10(degrees)C to 60(degrees)C operational
            2. HUMIDITY: 5% to 95% RH, Relative Humidity,
            3. ALTITUDE: 0-2000 meters
              (up to 2300 m with special provisions)

8.11.3.3.2. Mechanical Requirements:
            1. SINUSOIDAL VIBRATION: 5 mm(p-p) 0.1-10 Hz

8.11.3.4.   OUTDOOR EQUIPMENT
8.11.3.4.1. Temperature, Humidity and Altitude Requirements:
            1. TEMPERATURE: -20(degrees)C to 50(degrees)C full performance
               -30(degrees)C to 60(degrees)C operational
            2. HUMIDITY: 0% to 100% RH, Relative Humidity,
            3. ALTITUDE: 0-2000 meters
              (up to 2300 m with special provisions)

8.11.3.4.2. Mechanical Requirements:
            1. SINUSOIDAL VIBRATION: 5 mm(p-p) 0.1-10 Hz

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                                  [LINE GRAPH]

FIGURE 8-2 CLIMATOGRAM FOR 12 YEAR LIFE (ABSOLUTE HUMIDITY CURVES APPROXIMATED)

8.12.     TNM PERFORMANCE REQUIREMENTS

8.12.1.   TNM TRANSIT TIME

8.12.1.1. PAGING

          8.12.1.1.1. The paging transit time is defined as the time duration
          from the first bit of the Paging message received at the TNM from the
          MSSC until the first bit of the Paging message is sent from the same
          TNM to the last SBS of up to 3 selected target SBSs.

          8.12.1.1.2. The paging transit time shall be less than 80 ms (mean)
          and 130 ms (95 percentile), under the load defined in Table 9-1 of
          Section 9.2.

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8.12.1.2.  TRANSPARENT MESSAGES

       8.12.1.2.1. Message (excluding Paging) transit time is defined as the
       duration from the first bit of the message to TNM and the first bit of
       the same message out of the same TNM.

       8.12.1.2.2. The transit time shall be less than 60 ms (mean) and 90 ms
       (95 percentile), under the load defined in Table 9-1 of Section 9.2.

8.12.1.3.  VOICE TRAFFIC

       8.12.1.3.1. The voice traffic transit time is measured as the time
       duration from the first bit of a value circuit into the TNM to the
       corresponding bit out of the same TNM. The steady state value shall be
       less than the following

          1. Towards mobile transcoding: less than 94 ms (includes 72 ms for
             delay inherent in voice codec algorithm) assuming the TNM assigned
             optimum MCD slot is available.

          2. From mobile with transcoding: less than 38 ms (includes 20 ms for
             delay inherent in voice codec algorithm).

          3. Without transcoding (any direction): less than 14 ms assuming the
             TNM assigned optimum MCD slot is available.

8.12.1.4.  GSM DATA/FAX TRAFFIC

       8.12.1.4.1. The transit time is measured as the time duration from the
       first bit of fax/data circuit into the TNM to the corresponding bit out
       of the same TNM and shall be less than [14] ms.

8.12.1.5.  NON-GSM DATA TRAFFIC

       8.12.1.5.1. The transit time is measured as the time duration from the
       first bit of a data circuit into the TNM to the corresponding bit out of
       the same TNM and shall be less than the following values.

          1. Towards mobile: 82 ms plus slot alignment delay.

          2. From mobile: 60 ms.

8.12.1.6.  NON-GSM FAX TRAFFIC (THE IMAGE TRANSFER PART)

       8.12.1.6.1. The transit time is measured as the time duration from the
       first bit of a fax circuit into the TNM to the corresponding bit out of
       the same TNM and shall be less than the following values.

          1. Towards mobile: less than [82] ms plus slot alignment delay.

          2. From mobile: less than 60 ms.

8.13.    MSSC

8.13.1.  MOBILE SWITCHING RESPONSE TIME

       8.13.1.1. At rated traffic load as defined in Table 9-1 of Section 9.2,
       the following response time between a pair of signals shall apply.

                      8.13.1.2.  TABLE 8-1 RESPONSE TIMES
<TABLE>
          ----------------------------------------------------------
          <S>                      <C>            <C>
          Response Time            Mean (ms)      95 percentile (ms)
          ----------------------------------------------------------
          8.13.1.2. PSTN to UT
          ----------------------------------------------------------
          1. IAM - Paging            [80]               121
          ----------------------------------------------------------
</TABLE>

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<TABLE>
<CAPTION>
Response Time                           Mean (ms)           95 percentile (ms)
---------------------------------------------------------------------------
<S>                                    <C>                     <C>
2. Paging Resp - Auth Req               [30]                     44
3. Auth. Resp - Ciph Mode Cmd           [20]                     33
4. Ciph Mode Com - Setup                [30]                     44
5. Alert - Assignment Req               [20]                     33

8.13.1.3. UT - PSTN
1. CM Service Req - Auth Req            [30]                     44
2. Auth Resp - Ciph Mode Cmd            [30]                     66
3. Setup - Call Proceeding              [30]                     44
4. Modify Com - IAM                     [30]                     44
5. ACM - Alert                          [30]                     44
6. ANS - Connect                        [20]                     33

8.13.1.4. Location Update (no HLR)
1. LU Req - LU Acc                      [50]                     77
2. LU Acc - Clear                       [80]                    165

8.13.1.5. SS CFU Registration
1. CM Serv Req - Ciph Mode Cmd          [50]                     88
2. Ciph Mode Com - CM Serv Acc         [240]                    341
3. Register - Register                  [20]                     33
</TABLE>

8.13.2. TRANSIT SWITCHING

        TBD

8.13.3. D-IWF

        TBD

8.13.4. GMSC

        TBD

8.13.5. IN-SSP (F/R)

        TBD

8.13.6. MSSC VOICE TRANSIT TIME

        8.13.6.1 The MSSC voice transit time is defined as the time for a bit
        to pass from an inlet of the MSSC to an outlet of the same MSSC.

        8.13.6.2 The MSSC voice transit time shall be less than 2 ms.

8.14    LEGAL INTERCEPTION SUBSYSTEM

        8.14.1. MSSC interception function.

<TABLE>
<CAPTION>
             PERFORMANCE PARAMETERS                                TARGET VALUES
             -------------------------------------------------------------------
             <S>                                                   <C>
             Max. number of LIAS intercept commands that can       [TBD]
             be received by the MSSC per minute
</TABLE>

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<TABLE>
<CAPTION>
             PERFORMANCE PARAMETERS                                TARGET VALUES
             -------------------------------------------------------------------
             <S>                                                   <C>
             For MO call, max. delay from the instance when the    [TBD]
             layer 3 CC SETUP message is received by the
             MSSC to the instance when the target call is
             intercepted and an outgoing ISUP IAM message is
             initiated towards the LIAS.

             For MT call, max. delay from the instance when the    [TBD]
             incoming ISUP IAM message is detected by the
             MSSC to the instance when an outgoing ISUP IAM
             message is initiated towards the LIAS.
</TABLE>

        8.14.2. Legal Interception Activation System (LIAS)

<TABLE>
<CAPTION>
             PERFORMANCE PARAMETERS                                TARGET VALUES
             -------------------------------------------------------------------
             <S>                                                   <C>
             Max. number of LIMS Intercept Requests that can       [TBD]
             be received by the LIAS per minute

             Max. throughput of intercept commands that can be     [TBD]
             sent over the X1 interface towards the MSSC

             Max. Delay for answering an incoming intercept call   [2 seconds]
             delivered by the MSSC. This is calculated from the
             instant when an incoming IAM message is detected
             by the LIAS to the instant when an ISUP ANS
             message is sent back to the MSSC.

             For SANLOC interception, max. delay from the          [5 seconds]
             instance when an incoming intercept call is detected
             by the LIAS to the instance when an outgoing call is
             initiated towards a monitoring centre.

             For SUBLOC interception, max. delay from the          [5 seconds]
             instance when UT position information is available
             on the X2 interface to the instance when an
             outgoing call is initiated towards a monitoring
             centre.
</TABLE>

        8.14.3. Legal Interception Management System (LIMS)

<TABLE>
<CAPTION>
             PERFORMANCE PARAMETERS                                TARGET VALUES
             -------------------------------------------------------------------
             <S>                                                   <C>
             Max. number of Legal Intercept Warrants that can      [TBD]
             be validated and processed per hour

             Max. number of Legal Intercept Requests that can      [TBD]
             be sent to the LIAS per minute

             Max. number of audit operations that can be           [TBD]
             executed per hour.
</TABLE>

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9. CAPACITY REQUIREMENTS

9.1 DIMENSIONING DRIVERS

     9.1.1. This section specifies the sizing of ICO elements. In the case where
     more than one unit may be provided (e.g. MSC/VLR, HLR), the sizing data
     relates to a single unit. The total number of units to be provided in the
     initial contract to ICO shall be defined in the SOW.

     9.1.2. Individual elements of the ICONet Ground Facilities (IGF) will be
     dimensioned according to one, or more as appropriate, of the following
     dimensioning drivers:

          1. traffic carrying capacity at an interface, defined in Erlangs,
             based on a starting point of 320 Erlangs on the A interface
             (SBS-TNM) and incremented in 100 Erlangs

          2. call attempts, defined in numbers of call attempts per Busy Hour
             (an increment or a starting point is inappropriate to this measure)

          3. number of subscribers, starting at 10,000 subscribers and
             incremented in 1,000 subscribers (note that where subscriber
             numbers are dynamic, such as in a VLR, the average number of
             simultaneous registered subscribers may also be less than 10,000)

          4. other primary factors for specific items of equipment, for
             example, numbers of transactions per Busy Hour for the IN platform

     9.1.3. The values stated in the Table under the heading 'Maximum Value'
     refer to the expansion capability of the equipment.

     9.1.4. Individual elements shall be sized sufficiently to meet
     dimensioning drivers while meeting the appropriate performance
     requirements, such as the blocking budget, as defined in IGF Functional
     Requirements Document.

     9.1.5. Management systems will be dimensioned to operate so as to support
     the management activity generated by the traffic load.

9.2. IGF ELEMENT SPECIFIC DETAILS

     9.2.1. Table 9-1 describes the primary drivers and performance requirement
     (referenced to the IGF Functional Requirements TBD) for each element of
     the IGF.

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                 TABLE 9-1 PRIMARY CAPACITY DRIVERS FOR THE IGF

<TABLE>
<CAPTION>
IGF ELEMENT      DIMENSIONING DRIVER            INITIAL VALUE        MAXIMUM VALUE           PERFORMANCE               PERFORMANCE
                                                                                              PARAMETER                REQUIREMENT
-----------   --------------------------    ---------------------    -------------    ---------------------------    ---------------
<S>           <C>                           <C>                      <C>              <C>                            <C>
  1. RFT      C-Band EIRP towards           total 77 dBW per                                                         6.53.1
              satellite per RFT             polarisation

  2. RFT      Number of Antennas per        5                                         NA                             6.57.1.1
              SAN

  3. SBS      Traffic on the A interface    320E                     4,800 E          Blocking Budget                0.7% (9.3.4.1.2
              (to TNM)                                                                                               Table 9-4)

  4. SBS      Traffic on the Air            483 E (Assumption 1,     7,245 E          Diversity traffic served by    2% (9.3.4.1.2
              interface                     based on 320E, 7500                       a single path.                 Table 9-4)
                                            BHLU, 6500 BHSMS)                         (Does not apply to
                                                                                      signalling traffic)

  5. SBS      Busy Hour Call Attempts       7680 BHCA (Assumption    250,000 BHCA     Signalling transaction         []
                                            2, based on 320E)                         delay

  6. SBS      Busy Hour Location            7,500 (Assumption 6)     112,500 BHLU     Location Update                []
              Updates                                                                 transaction delay

  7. TNM      Traffic on the A interface    320E                     4,800 E          Blocking Budget for SBS        0.7%
              (to SBS)                                                                interface (Assumption (10))

  8. TNM      Traffic on the A interface    320E                     4,800 E          Blocking Budget for            0.3%
              (to MSSC, PCM coded)                                                    MSSC interface, PCM
                                                                                      coded (Assumption (10))

  9. TNM      Traffic on the A interface    64E                      960 E            Blocking Budget for MSSC       0.3%
              (to MSSC, compressed)                                                   interface, compressed
              refers to MCD data                                                      (Assumption (10))

 10. TNM      Semi-permanent traffic        4 calls (8 SANs)         22 calls         Availability                   NA
              (DCN)                         8 calls (4 SANs)
</TABLE>

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<TABLE>
<CAPTION>
                                                                                           PERFORMANCE                  PERFORMANCE
IGF ELEMENT     DIMENSIONING DRIVER            INITIAL VALUE              MAXIMUM VALUE      PARAMETER                   REQUIREMENT
-----------     -------------------            -------------              -------------     -----------                  -----------
<S>             <C>                            <C>                        <C>               <C>                          <C>
11. TNM         Busy Hour Call Attempts.       8448 BHCA (Assumption      275,000 BHCA      Signalling transaction       8.12
                                                 2, based on 352E)                            delay
12. MSSC/VLR    Traffic on the A interface     320E                       4800E             Blocking budget.             0.3%
                  (to TNM, PCM coded)                                                         (Assumption (11))
13. MSSC/VLR    Traffic on the A interface     8E                         120E              Blocking budget.             0.3%
                  (to TNM compressed)                                                         (Assumption (11))
                  refers to fully occupied
                  64k channel i.e. 8xMCD
                  voice calls
14. MSSC/VLR    Traffic on the interfaces      320E                       4,800E            Blocking budget.             0.3%
                  to POI (including echo                                                      (Assumption (11))
                  cancellation as required)
15. MSSC/VLR    Traffic on the interfaces      64E (8 SANs)               4,800E            Blocking budget.             0.3%
                  to other SANs                96E (4 SANs)                                   (Assumption (11))
16. MSSC/VLR    Traffic on the interface       16E                        240E              Blocking budget.             [0.3%]
                  MSSC/D-IWF                     (5% of, and included                         (Assumption (11))
                                                 in, the POI Traffic)
17. MSSC/VLR    Traffic on the interface to    3.7E (per SAN-             240E              Blocking budget.             [0.1%]
                  Voicemail                      Assumption 3)                                (Assumption (11))
18. MSSC/VLR    Facsimile traffic on the       0.4E per SAN               24E               Blocking budget.             [0.1%]
                  interface to the               (Assumption 12)                              (Assumption (11))
                  Voicemail (F/R)
19. MSSC/VLR    Traffic on the interface to    8E (Assumption 4)          120E              Blocking budget.             [0.1%]
                  Recorded Voice                                                              (Assumption (11))
                  Announcements.
20. MSSC/VLR    Busy Hour Call Attempts.       8640 BHCA (Assumption      280,000 BHCA      Signalling transaction       9.2.x
                                                 2, based on 360E)                            delay
21. MSSC/VLR    Busy Hour Registered           128,000                    300,000           % of registrations           9.2.x
                  Subscribers                                                                 successfully completed.
</TABLE>

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<TABLE>
<CAPTION>
                                                                                                PERFORMANCE              PERFORMANCE
IGF ELEMENT      DIMENSIONING DRIVER            INITIAL VALUE            MAXIMUM VALUE           PARAMETER               REQUIREMENT
-----------      -------------------            -------------            -------------          -----------              -----------
<S>              <C>                            <C>                      <C>                    <C>                      <C>
22. MSSC/VLR     Busy Hour Location Updates     7,500 BHLU               26,400                 Location Update          [ ]
                                                  (Assumption 6)                                  transaction delay
23. MSSC/VLR     C7 signalling link hardware    10 to 16                 To be stated by NEC    NA                       NA
                   ports
24. MSSC/VLR     Nos. of high speed (less       16 per MSSC              To be stated by NEC    NA                       [ ]
                   than 9.6 kbps) channels
25. MSSC/VLR     Busy Hour C7 signalling        To be stated by NEC      To be stated by NEC    MTP transaction delay    [ ]
                   MTP transactions
                   including STP
                   functionality
26. RVA Source   Traffic on interface           8E (Assumption 4)        To be stated by NEC    Blocking budget          [1%]
27. RVA Source   Busy Hour Call Attempts        2880 BHCA                To be stated by NEC    RVA access delay         [ ]
28. D-IWFs       Traffic on interfaces.         16E (5% of POI Traffic)  To be stated by NEC    Blocking budget.         [1%]
29. D-IWFs       Busy Hour Call Attempts        384 BHCA (Assumption     To be stated by NEC    Signalling transaction   [ ]
                                                  2, based on 16E)                                delay
30. AuC          Number of                      50,000                   To be stated by NEC    NA                       NA
                   subscribers/equipment
                   stored.
31. AuC          Busy Hour                      6,000 (Assumption 12)    To be stated by NEC    Authentication delay     [300 ms]
                   Authentication Vector
                   Requests.
32. EIR          Number of IMEIs stored.        50,000                   To be stated by NEC    N/A                      [ ]
33. EIR          Busy Hour IMEI checking        4500 (Assumption 6,7)    To be stated by NEC    IMEI checking attempt    [150 ms]
                   attempts.                                                                      delay.
34. HLR          Number of ICO                  50,000                   500,000                NA                       NA
                   subscribers.
35. HLR          Busy Hour Service              To be stated by NEC      To be stated by NEC    Service provisioning     [ ]
                   Provisioning attempts                                                           delay.
</TABLE>

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<TABLE>
<CAPTION>
                                                                                               PERFORMANCE               PERFORMANCE
IGF ELEMENT     DIMENSIONING DRIVER          INITIAL VALUE              MAXIMUM VALUE           PARAMETER                REQUIREMENT
-----------     -------------------          -------------              -------------          -----------               -----------
<S>             <C>                          <C>                        <C>                    <C>                       <C>
36. HLR         Busy Hour Network and        6,750 (Assumption 6)       67,500                 Registration transaction  [ ]
                  VLR registrations                                                              delay
37. HLR         Busy Hour Call Attempts      12,500 (Assumption 2, 9,   400,000                Signalling transaction    [ ]
                  (MT for ICO subscribers)     based on 43E in 12                                delay
                                               SANs)
38. HLR         Busy Hour C7 signalling      {?} To be stated by NEC    To be stated by NEC    MTP transaction delay     [ ]
                  MTP transactions
                  including STP
                  functionality
39. Voicemail   Number of subscribers        56,000 (Assumption 3)      To be stated by NEC    NA                        NA
40. Voicemail   Traffic on the interface to  15E (Assumption 3).        To be stated by NEC    Call completion rate      [ ]
                  co-located MSSC
41. Voicemail   Busy Hour Call Attempts      360 BHCA (Assumption 3).   To be stated by NEC    Signalling transaction    [ ]
                                                                                                 delay
42. Voicemail   Hours of storage (voice      950 hours per Voice        To be stated by NEC    Probability and hours of  [ ]
                  and fax).                    Mail site.                                        traffic lost per year.
43. Voicemail   Facsimile traffic on the     1.6E (Assumption 12)       To be stated by NEC    Blocking budget           [ ]
                  interface to MSSC (F/R)                                                        (Assumption (11)).
44. SMSC        Messages per busy hour       17,000                     To be stated by NEC    Message handling delay    8.3.1
45. HPN         Peak arrival rate of HPN     3 per second               3 per second           Message handling delay    8.7
                  escalations per second
                  from the MSSC due to
                  failed MT-SMS
46. HPN         Peak arrival rate of HPN     6 per second               6 per second                                     [ ]
                  escalations per second
                  from the MSSC due to
                  failed MT call attempts
</TABLE>

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<TABLE>
<CAPTION>
                                                                                                 PERFORMANCE             PERFORMANCE
IGF ELEMENT       DIMENSIONING DRIVER          INITIAL VALUE                MAXIMUM VALUE         PARAMETER              REQUIREMENT
-----------       -------------------          -------------                -------------        -----------             -----------
<S>               <C>                          <C>                          <C>                  <C>                     <C>
47. HPN           Peak processing load         30 per second                30 per second                                [ ]
                    HPN messages per
                    second (representing a
                    combination of satellite
                    transmissions and inter-
                    SAN routing of HPN
                    messages)
48. PCS (HPN)     Average satellite command    {?}                                               Command transmission    [ ]
                    transmission rate.                                                             delay
49. IS.41 IWF     Number of ICO/IS.41          50,000 registered in        To be stated by NEC   NA                      NA
                    subscribers capable of       each direction
                    roaming
50. IS.41 IWF     Busy Hour Network and        3,750 (Assumption 6)        To be stated by NEC   Registration delay      [ ]
                    ICO VLR registrations
51. IS.41 IWF     Busy Hour Call Attempts      4,100 (Assumption 2, 9,     To be stated by NEC   Signalling transaction  [ ]
                    (MT for ICO/IS.41            based on 14E in 12                                delay
                    subscribers)                 SANs)
52. PDC IWF       Number of PDC/ICO            50,000                      To be stated by NEC   NA                      NA
   (OPTION)         subscribers capable of
                    roaming
53. PDC IWF       Busy Hour Network and        1,900 (Assumption 64)       To be stated by NEC   Registration delay      [ ]
   (OPTION)         ICO VLR registrations
54. PDC IWF       Busy Hour Call Attempts      750 (Assumption 2, 9,       To be stated by NEC   Signalling transaction  [ ]
   (OPTION)         (MT for ICO/PDC              based on 2.5E in 12                               delay
                    subscribers                  SANs)
55. PDC IWF       Traffic through IMSC.        77 Erlangs (Assumption 9)   To be stated by NEC   Blocking budget.        0.3%
   (OPTION)
56. PDC IWF       Busy Hour Call Attempts      1,900 (Assumption 2,        To be stated by NEC   Signalling transaction  [ ]
   (OPTION)         through IMSC                 based on 77E)                                     delay
</TABLE>

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<TABLE>
<CAPTION>
                                                                                              PERFORMANCE                PERFORMANCE
IGF ELEMENT        DIMENSIONING DRIVER          INITIAL VALUE           MAXIMUM VALUE          PARAMETER                 REQUIREMENT
-----------        -------------------          -------------           -------------         -----------                -----------
<S>                <C>                          <C>                     <C>                   <C>                        <C>
57. IN Platform    Number of IN subscribers     50,000                  1M                    NA                         NA
          (F/R)
58. IN Platform    Busy Hour IN transactions    14,000 BHINT            3.6M                  Transaction delay          [ ]
          (F/R)                                   (Assumption 8)
59. SRMC           Number of satellites         12                      24                    NA                         NA
60. SRMC           Number of SANs               12                      24                    NA                         NA
61. SRMC           Number of spot beams         163                     163                   NA                         NA
                     per satellite
62. SRMC           Number of filters per        490                     490                   NA                         NA
                     satellite
63. SRMC           Satellite orbit period       6 hours                 6 hours               NA                         NA
64. SRMC           Planning Ground Cell size    1 degree                1 degree                                         [ ]
65. SRMC           Payload command table        32,000                  32,000                                           [ ]
                     size
66. SRMC           HPN tables                   4                       4                                                [ ]
67. SRMC           Number of frequency co-      4                       4                     NA                         NA
                     ordination regions
68. DCN            Number of 64 kbps ports      4 ports for SANs                              Link network utilisation   [ ]
                                                8 ports for SANs                                factor.
69. LIAS           Number of legal intercept    1500                    5000                  NA                         NA
                     target subscribers
                     provisioning
70. LIAS           Number of warrant that       To be stated by NEC     To be stated by NEC   NA                         NA
                     can be set against a
                     target subscriber
</TABLE>

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<TABLE>
<CAPTION>
                                                                                                 PERFORMANCE       PERFORMANCE
IGF ELEMENT       DIMENSIONING DRIVER              INITIAL VALUE       MAXIMUM VALUE              PARAMETER        REQUIREMENT
-----------       -------------------              -------------       -------------             -----------       -----------
<S>               <C>                              <C>                 <C>                       <C>               <C>
71. LIAS          Number of input channels         30                  540                       NA                NA
                    (i.e. 64 kbps circuits)
                    provisioned for the X3
                    interface between the
                    MSSC and the LIAS
72. LIAS          Number of output channels        24                  240                       NA                NA
                    (i.e. 64 kbps circuits)
                    provisioned for the X3
                    interface between the
                    MSSC and the LIAS
73. LIAS          Number of destination            4                   To be stated by NEC       NA                NA
                    addresses to which a
                    monitored call can be
                    delivered simultaneously
                    via switched connections.
74. LIAS          Number of destination            0                   To be stated by NEC       NA                NA
                    addresses to which a
                    monitored call can be
                    delivered simultaneously
                    via fixed (i.e. leased
                    line) connections.
75. LIAS          Number of fixed connections      0                   30                        NA                NA
                    (i.e. point to point
                    64 kbps EO links) to
                    monitoring centres
                    supported
76. LIAS          Number of legal intercept        18,000              60,000                    NA                NA
                    target subscribers
                    provisioning
</TABLE>

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<TABLE>
<CAPTION>
IGF ELEMENT    DIMENSIONING DRIVER        INITIAL VALUE          MAXIMUM VALUE           PERFORMANCE        PERFORMANCE
                                                                                          PARAMETER         REQUIREMENT
------------------------------------------------------------------------------------------------------------------------
<S>            <C>                        <C>                    <C>                      <C>               <C>
 77. LIMS      Number of warrants that    To be stated by NEC    To be stated by NEC        NA                 NA
               can be set against a
               target subscriber

78. MSSC/VLR   Number of legal intercept     1,500               To be stated by NEC        NA                 NA
               target subscribers
               provisioning

</TABLE>

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9.2.2. ASSUMPTIONS/DERIVED DATA

          1.  Traffic on the Air Interface consists of A-interface traffic plus
              the traffic resulting from providing diversity paths to 40% of
              calls, plus the traffic resulting from registrations, location
              updates, IMSI attach and detach, and SMS. The registration and LU
              traffic is calculated based on 8 seconds of call holding time per
              LU. The SMS traffic is calculated based on 10 seconds per message.

          2.  BHCA calculation for units affected by MT and MO calls assumes
              the average call holding time across all calls (successful and
              unsuccessful) is 150s. 40% of calls are MT. Maximum BHCA values
              based on approx. 30 x times initial values (traffic growth = x10,
              capability for growth = x1.5, predicted decrease in avg. call
              duration resulting from unsuccessful call attempts = x2)

          3.  Voice mail traffic 1.15% of SBS A-interface total. Maximum size
              SAN assumes 5% voice mail.

          4.  RVA traffic 2.5% of SBS A-interface total. Average RVA duration
              10s.

          5.  Year 2010 SMMO = 5m, SMMT = 200m, HPN = 110m. Initial value 10%,
              Busy Day = Year/265, Busy Hour = Busy Day/12. SMS message length
              average 30 characters.

          6.  Assumes 0.25 Location Updates / Registered UT / Busy Hour. Also
              assumes 90% of ICO-HLR customers registered, 15% of IS.41
              roamers, and 15% of PDC roamers. Initial registration average 0.1
              Reg / UT / Busy hour. VLR change average 0.05 Reg / UT / Busy
              hour. NOTE: MSC/VLR Location Updates per Busy Hour based on
              30,000 active registered subscribers, to maintain consistency
              with BAFO 2a figures.

          7.  Assumes that IMEI is checked on initial registrations to HLR.

          8.  Assumes 25% of MO calls require IN

          9.  MT called number distribution: ICO HLR 33%; ICO-GSM ILR 30%; GSM
              anonymous 24%; ICO-PDC ILR 2%; ICO-IS.41 ILR 11%.

          10. The TNM is non-blocking, thus the blocking budget for the TNM is
              associated with the number of ports provided.

          11. The MSSC is non-blocking, thus the blocking budget for the MSSC
              is associated with the number of circuits provided.

          12. Assumes authentication check performed on MO and MT calls only,
              with 5 sets of triplets returned from each request to the AuC.

          13. Facsimile traffic into the voicemail system is assumed to be 10%
              of the voice traffic and is additional to the voice traffic.
              (F/R)

9.3. SIZING REQUIREMENTS

9.3.1. NETWORK MANAGEMENT SYSTEM

        9.3.1.1. The Network management system shall provide the capability
        for growth to accommodate the equipment corresponding to the ICO 10-year
        traffic model.

9.3.2. SWITCHING EQUIPMENT

        9.3.2.1. Dimensioning rules for a typical switch are shown in the table
        below:

           9.3.2.2. TABLE 9-2 DIMENSIONING RULES FOR A TYPICAL SWITCH

<TABLE>
<CAPTION>
                    TRAFFIC RATE                            2.5 mErlangs
          ----------------------------------------------------------------------
          <S>                                               <C>
          Total traffic                                     320       Erlangs
</TABLE>

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<TABLE>
<CAPTION>
<S>                                                                                <C>
Max. subscribers                                                                    128,000
No. subscribers registered in the HLR                                              50,000
% total traffic to announcements                                                   0.025    %
% total traffic to voice mail                                                      0.0115   %
% MPTY calls exc. monitoring                                                       1        %
No. of subscribers to be monitored                                                 10
Holding time                                                                       150      secs
Data call holding time                                                             240      secs
Direction C for transit required?                                                  No
Switch connects to SMS/HLR/VM?                                                     Yes
% total traffic which is data                                                      5        %
BHCA/subscriber                                                                    0.06
Loss probability                                                                   0.003
T1 traffic                                                                         288      Erlangs
T2 traffic                                                                         32       Erlangs
T3 traffic                                                                         0        Erlangs
T4 traffic                                                                         32       Erlangs
ETC* to PSTN (No. of circuits)                                                     356
ETC* to SBS (No. of circuits)                                                      356
ETC* to TRANSIT (No. of circuits Dir. a)                                           47
ETC* to TRANSIT (No. of circuits Dir. b)                                           47
ETC* to TRANSIT (No. of circuits Dir. c)                                           0
ETC* to VOCODER (No. of circuits outgoing)                                         47
ETC* to VOCODER (No. of circuits incoming)                                         47
ETC* to VOICE MAIL (No. of circuits)                                               0
Number of ETC* to LIAS                                                             2
Number of SS7 signalling terminals dedicated for signalling links to LIAS          2
Data/fax circuits                                                                  39
MPTY circuits                                                                      9
ASTDR circuits                                                                     17
ECPOOL3 circuits (echo cancellers)                                                 340
</TABLE>
* ETC = Exchange Terminal Circuit

9.3.3. HPN EQUIPMENT

                        9.3.3.1. TABLE 9-3 HPN EQUIPMENT
<TABLE>
<CAPTION>
<S>                 <C>                                <C>
-------------------------------------------------------------------------------------------------------------
1                   HPN
-------------------------------------------------------------------------------------------------------------
1.1                 Work Station (Server)
-------------------------------------------------------------------------------------------------------------
                    Sun Ultra 1/140 Server, 143 MHz,    Sized to handle a peak arrival of 3 HPN escalations
                    32Mb RAM, 2.1 Gbyte Disk OR an      per second from the MSSC due to failed MT-SMS
                    Equivalent System (2 units)         and a peak arrival of 6 HPN escalations per second
-------------------------------------------------------------------------------------------------------------
</TABLE>

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<TABLE>
<CAPTION>
<S>                 <C>                                  <C>
-------------------------------------------------------------------------------------------------------------
                    active/warm standby                   from the MSSC due to failed MT call attempts.

                    Two (2) SS#7 interfaces to the        Sized to handle a peak processing load of 30 HPN
                    MSSC from each workstation            messages (representing a combination of satellite
                                                          transmissions and inter-SAN routing of HPN
                    no console (server models)            messages) per second.
-------------------------------------------------------------------------------------------------------------
1.2                 Channel Unit
-------------------------------------------------------------------------------------------------------------
                    4 (active) + 1 (in-line spare) HPN
                    Message Transmit Channel Units

                    4 (active) + 1 (in-line spare) HPN
                    PCS Transmit Channel Units

                    8 (active) + 2 (in-line spare) HPN
                    Receive Channel Units

                    note that full duplex (combined
                    transmit + receive function) channel
                    unit are being supplied
-------------------------------------------------------------------------------------------------------------
1.3                 Software
-------------------------------------------------------------------------------------------------------------
                    HPN Controller Software Hosted on
                    the Sun Ultra Server

                    SUN Solaris OS Software
-------------------------------------------------------------------------------------------------------------
1.4                 10 base T Ethernet Hub
-------------------------------------------------------------------------------------------------------------
                    Two 12 port 10baseT hubs
-------------------------------------------------------------------------------------------------------------
1.5                 IF distribution
-------------------------------------------------------------------------------------------------------------
                    IF distribution local to HPN rack
-------------------------------------------------------------------------------------------------------------
</TABLE>

9.3.4. SBS EQUIPMENT

9.3.4.1. CAPACITY REQUIREMENTS SBS

9.3.4.1.1. GENERAL

          9.3.4.1.1.1.   This section covers the capacity requirements for the
     SBS, for both traffic and signalling. These requirements will be based on
     the traffic model specified in Table 9-5.

9.3.4.1.2. TRAFFIC CAPACITY SPECIFICATION

          9.3.4.1.2.1.   In the initial purchase, the SBS shall support a
     traffic capacity of 320 holding time Erlang at the SBS-TNM interface in
     each of the 12 SANs. The capacity of each SBS shall be possible to be
     increased in steps of 100 Erlang (holding time) up to a maximum of [4800
     Erlang] in the largest SAN.

          9.3.4.1.2.2.   In order to meet the specified SBS-TNM interface
     capacity, sufficient Air-Interface capacity shall be provided based on the
     traffic model in Table 9-5.

9.3.4.1.3. BLOCKING PROBABILITY SPECIFICATION

          9.3.4.1.3.1.   The contribution to the end-to-end blocking
     probability attributable to the SBS will be determined by:

               1.   the availability of external satellite resources

               2.   the constraints imposed by these functional requirements
     and the underlying system design in the allocation of resources (e.g.,
     z-arc design, maximum number of reuses, etc.) and

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               3. the constraints imposed by the IGF design in the allocation
                  of resources.

          9.3.4.1.3.2. The blocking probability of the SBS over and above any
          blocking due to external resources shall be as follows:

               9.3.4.1.3.3. TABLE 9-4 BLOCKING PROBABILITY ALLOWANCE
                                    CONTRIBUTION ALLOWANCE    NOTES
                                    -------------------------------
SBS (Erlang) Blocking probability   <0.7%                     1

Diversity Blocking with diversity   <[2%]                     2
allocated at the call start

Diversity Blocking with diversity   <[12%]                    3
allocated after call start

          9.3.4.1.3.4. Notes:

               1. Blocking probability with respect to all offered calls

               2. Percentage of calls with diversity allocated at call start in
                  which only one path can be connected.

               3. Percentage of calls with diversity after call start in which
                  the diversity path cannot be connected without moving the
                  first path.

               4. The blocking percentages listed in Table 9-4 may need to be
                  revised to take account of multiple radio resources being
                  used for a call during mobile terminated call setup when the
                  UT is moving from MP to NP coverage.

9.3.4.2.    SBS CONTROL CHANNEL CAPACITY

9.3.4.2.1.  RACH CAPACITY

          9.3.4.2.1.1. In the initial purchase, the SBS shall provide adequate
          hardware to support one RACH channel per spot beam per satellite for
          12 satellites each with 163 spot beams, uniformly distributed across
          SANs.

          9.3.4.2.1.2. The design will not preclude provisioning of RACH modems
          as required for the maximum [4800 Erlang] SAN.

9.3.4.2.2.  TRANSMIT COMMON CHANNEL CAPACITY

          9.3.4.2.2.1. In the initial purchase the SBS shall provide adequate
          Transmit common control channel hardware corresponding to the number
          of RACH channels. These Transmit Common Control Channels may be
          applied to BCCH, PAGCH, AGCH, CBCH as required.

9.3.4.3.  SBS TRAFFIC MODEL

                       9.3.4.3.1. TABLE 9-5 TRAFFIC MODEL
<TABLE>
<S>                                                           <C>
Average call duration                                         150 seconds
Average LU, IMSI attach, IMSI detach duration                 [4] seconds
Channel type used for IMSI attach/detach and Location update  SDCCH/2
Diversity provisioning at 100% loading                       40%
Diversity provisioning at 50% loading                         100% of diversity eligible UTs
</TABLE>

9.3.4.4.  SBS ASSIGNMENT ALGORITHM PERFORMANCE SIMULATION MODEL

            1. 3 Satellite, [17] delay classes per satellite

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               2. Exponential distribution of traffic, randomised across sub
                  cells.

               3. Drive Frequency and Timeslot (f,t) planing relative to beam
                  traffic load and 490 filters/satellite.

               4. Generate traffic based on traffic distribution across
                  sub-beams and Table 9-5.

               5. Pass criteria: with assumed hardware meet the blocking
                  probability defined in Table 9-4, for 320, ~1000, and 3200
                  Erlang.

9.3.5. TNM AND DCN EQUIPMENT

                    9.3.5.1. TABLE 9-6 TNM AND DCN EQUIPMENT

================================================================================
ITEM                     DESCRIPTION              SIZING RULE
================================================================================
1.     TNM
--------------------------------------------------------------------------------
1.1    RPC
--------------------------------------------------------------------------------
1.1.1  Sparc 1000 with 2 processors, 512MB MM,    13 calls/sec full performance
       5GB HD, Ethernet Interfaces, 8mm Tape      17 calls/sec peak
       Drive and CD ROM Drive                     (1 + 1 Redundancy)
                                                  9.3.5.2. Max. 2000 Erlangs per
                                                  RPC
--------------------------------------------------------------------------------
1.1.2  MMI with one 10Bt and one 100Bt Ethernet   1 per RPC
       ports
--------------------------------------------------------------------------------
1.1.3  DCN (E1) Control                           2 Per SAN TNM
--------------------------------------------------------------------------------
1.1.4  RPN Ethernet Hubs (10BT)                   2 per SAN for first 8RPN's. 2
                                                  per 8 RPNs thereafter.
--------------------------------------------------------------------------------
1.1.5  Power Switchover                           1 Per Rack
--------------------------------------------------------------------------------
1.1.6  19" C&C Rack                               1 Per RPC
--------------------------------------------------------------------------------
1.2    TNM Software License                       1 per TNM
--------------------------------------------------------------------------------
1.3    Software Licences
--------------------------------------------------------------------------------
1.3.1  Solaris Operating System with Media        1 per RPC for first 2 SANs
--------------------------------------------------------------------------------
1.3.2  Solaris Operating System without Media     1 per RPC subsequent SANs
--------------------------------------------------------------------------------
1.3.3  Solstice - Runtime                         1 per SAN site (2 for ITC)
--------------------------------------------------------------------------------

================================================================================
 2     RPN SUBSYSTEM
--------------------------------------------------------------------------------
2.1    FOR SAN
--------------------------------------------------------------------------------
                         Required MUX/VOC channels
--------------------------------------------------------------------------------
                         Traffic Channels +
--------------------------------------------------------------------------------
                         Blocking +
--------------------------------------------------------------------------------
                         Inter-site Traffic Channels +
--------------------------------------------------------------------------------
                         Inefficiencies +
--------------------------------------------------------------------------------
                         Signalling Channels +
--------------------------------------------------------------------------------
                         DCN Channels
--------------------------------------------------------------------------------
                         Traffic Channels
--------------------------------------------------------------------------------
                         PSTN Traffic in Erlangs converted to Ch
--------------------------------------------------------------------------------

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<TABLE>
<S>       <C>                                <C>
                                             (@ 0.3% blocking)
                                             Inter-site Traffic Channels
                                             SBS Terminated Traffic in Erlangs converted to Ch
                                             (Based on 10% of PSTN traffic)
                                             Plus quantity if required to maintain availability ratio. (0 in this case given 30%
                                             failure rate)
                                             Inefficiencies
                                             For channel manager handover, internal inefficiency is 1% per ChM.
                                             Signalling Channels
                                             Maximum of 1 per RPN (normally slot 31) No additional MUX/VOC channels required
                                             DCN Channels
                                             2 ch (DSP) for each 64kbps of DCN*2(redund)
</TABLE>

<TABLE>
<CAPTION>
                                             TOTAL VOC/MUX CHANNELS REQUIRED
<S>       <C>                                <C>
2.1.1     Vocoder/Mux Card                   Max 8 channels per card
2.1.2     RPN Processor                      Max 60 channels & 2 calls/sec
2.1.3     19" 6RU Shelf                      1 per RPN
2.1.4     Power Unit
2.1.4.1   RPN Power Supply                   1 per RPN
2.1.4.2   Mux/Voc Power Unit                 1 per rack
2.1.5     Fan Unit                           1 per RPN
2.1.6     19" C&C Rack                       1 per 300 channels (min 4 initially)

                                             E1's SIZING
                                             PSTN Traffic
                                             PSTN traffic channels/30+
                                             (N+E+W+S traffic ch)/30*(packing factor-1)*2
                                             Note: (packing factor-1)>=1 (min 2 each N,S,E,W direction for redund)

                                             SBS Traffic
                                             2 Per ChM (each supports 160E)

                                             TOTAL E1's REQUIRED

2.2       FOR NMC #1 (DCN USE ONLY)

                                             REQUIRED MUX/VOC CHANNELS
                                             DCN CHANNELS
                                              For NMC (one link to each of 2 SANs)
                                              2ch (DSP) for each 64 kbps of DCN

                                             Total Voc/Mux Ch (DSP) required
</TABLE>

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<TABLE>
<S>       <C>                                <C>
2.2.1     Vocoder/Mux Card                   Max 8 channels per card
2.2.2     RPN/RPC Processor                  (Min 2) maximum of 2 Mbps each
2.2.3     19" 6RU Shelf                      1 per RPN
2.2.4     Power Unit
2.2.4.1   RPN Power Supply                   1 per RPN
2.2.4.2   Mux/VOC Power Unit                 1 per Rack
2.2.5     Fan Unit                           1 per shelf
2.2.6     19" C&C Rack                       1 per NMC

2.3       FOR NMC #2 (DCN USE ONLY)
                                             REQUIRED MUX/VOC CHANNELS
                                             DCN CHANNELS
                                              For NMC (one link to each of 2 SANs)
                                              2ch for each 64 kbps of DCN

                                             Total Voc/Mux Ch (DSP) required
2.3.1     Vocoder/Mux Card                   Max 8 channels per card
2.3.2     RPN/RPC Processor                  (Min 2) maximum of 2 Mbps each
2.3.3     19" 6RU Shelf                      1 per RPN
2.3.4     Power Unit
2.3.4.1   RPN Power Supply                   1 per RPN
2.3.4.2   Mux/VOC Power Unit                 1 per Rack
2.3.5     Fan Unit                           1 per 2 shelf
2.3.6     19" C&C Rack                       1 per NMC
2.4       Installation Materials             1 per SAN
</TABLE>

<TABLE>
<CAPTION>

<S>       <C>                                <C>
3                            DIGITAL COMMUNICATION NETWORK
3.1       SAN - 2 PORT AT 8 SANs
3.1.1     Switching Hub/Router
3.1.1.1   Ethernet Switch 10Bt/100Bt         1 per backbone, i.e. 2 per SAN
3.1.1.2   X.25/TCP Brg                       2 per SAN (MSSC OAM INTFC)
3.1.1.3   Hub 10Bt                           2 per SAN for HPNC, MSSC OAM etc.

3.1.2     Compression
3.1.2.1   Compression                        1 per A & B links in the E & W directions

3.1.3     Installation Materials
3.1.3.1   19" Rack
3.1.3.2   Cables
3.1.3.3   Hardware

3.2       SAN - 3 PORT AT 4 SANs

3.2.1     Switching Hub/Router
</TABLE>

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<TABLE>
<S>                                               <C>
3.2.1.1   Ethernet Switch 10Bt/100Bt              1 per backbone, i.e. 2 per SAN
3.2.1.2   X.25/TCP Brg                            2 per SAN (MSSC OAM INTFC)
3.2.1.3   Hub 10Bt                                2 per SAN for HPNC, MSSC OAM etc.

3.2.2     Compression
3.2.2.1   Compression                             1 per A & B links in the E & W & N directions
3.2.3     Installation Materials
3.2.3.1   19" Rack
3.2.3.2   Cables
3.2.3.3   Hardware

3.3       NETWORK MANAGEMENT CENTRE (NMC)

3.3.1     Hub/Router
3.3.1.1   Hub 10Bt                                1 per NMC Port
3.3.2     Compression
3.3.2.1   Compression                             1 per A & B link for each NMC

3.3.3     Installation Materials
3.3.3.1   19" Rack
3.3.3.2   Cables
3.3.3.3   Hardware
</TABLE>

9.4. NETWORK INTERFACE

       9.4.1. A two port SAN shall provide a capacity, for connecting calls to
              the terrestrial networks, of 320 Erlangs to the PSTN via one route
              plus 64 Erlangs in two equal parts for inter-site traffic,
              excluding DCN and signalling which shall be provided
              appropriately.

       9.4.2. A three port SAN shall have provide a capacity, for connecting
              calls to the terrestrial networks, of 320 Erlangs to the PSTN via
              one route plus 96 Erlangs in three equal parts for intersite
              traffic, excluding DCN and signalling which shall be provided
              appropriately.

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10. SECTION NOT USED

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11. REFERENCE CONFIGURATION FOR PERFORMANCE MEASUREMENT

                 [FIGURE 11-1 TEST CONFIGURATION NO. 1 Diagram]

                      FIGURE 11-1 TEST CONFIGURATION NO. 1

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                 [FIGURE 11-2 TEST CONFIGURATION NO.2 DIAGRAM]

                      FIGURE 11-2 TEST CONFIGURATION NO. 2

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                 [FIGURE 11-3 TEST CONFIGURATION NO. 3 DIAGRAM]

                      FIGURE 11-3 TEST CONFIGURATION NO. 3

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                      [FIGURE 11-4 TRAFFIC BLOCK DIAGRAM]

                       FIGURE 11-4 TRAFFIC BLOCK DIAGRAM

--------------------------------------------------------------------------------
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12. OTHER CONTRACT SERVICES

12.1 OPERATIONAL TEST & DEVELOPMENT FACILITY(OT&DF)(F/R)

12.1.1. GENERAL

        12.1.1.1. The OT&DF shall be used for the training and testing facility
        for human resources, equipment, services and new developments. The OT&DF
        shall have the provision to connect into the live network and support
        other off-line analysis activities and exercises. In addition, the OT&DF
        shall be used to support particular investigations concerning the
        network and help with the continual planning and evolution of the
        network.

        12.1.1.2. The OT&DF shall represent a multi-functional facility for the
        support of Operations and Engineering personnel.

        12.1.1.3. In order to deliver these capabilities then the OT&DF shall
        support and/or provide the following capabilities/facilities:

          1. TRAINING FACILITY: The Centre shall be the primary facility for
             both technical and operational training including vendor training
             (e.g. MSSC). To encompass this then the Centre shall be equipped
             with a scaled down version of the SAN equipment. Also, the Centre
             shall include test equipment and tools used by the operations staff
             in the management of the live network.

          2. ENGINEERING AND TECHNICAL DEVELOPMENTS FACILITY: The centre shall
             provide the facilities which allow engineers to develop potential
             new services/features.

          3. TEST AND VALIDATION FACILITY: The Centre shall be used to test new
             engineering plans before introduction. The centre shall have the
             capability for performing an array of tests for pre-service,
             in-service, remote, and local testing of hardware, software and
             services. In addition, the OT&DF shall be used to develop, test and
             prove the suitability of operations procedures which shall be
             adopted at the NMC and/or SAN sites.

          4. OPERATIONAL TESTING: The centre shall allow for some live testing
             using spare capacity in the ICO space segment.

          5. DEMONSTRATION FACILITIES: The OT&DF shall be equipped with
             demonstration capabilities for benefit of prospective customers,
             operators, and service providers.

          6. TEST EQUIPMENT: The Centre shall have the capability to run
             off-line (via use of purpose built equipment and simulators) and
             on-line testing. The later shall require authorisation and access
             to an operational SAN.

        12.1.1.4. The OT&DF is a miniature ICO network restricted to one SAN and
        with restricted capacity within that SAN.

        12.1.1.5. The OT&DF shall comprise of the items listed below. For a more
        detailed list of items, see the equipment list of Annex 1 of the SOW.
        Note also that in case of conflict, Annex 1 of the SOW shall take
        precedence over the equipment list contained within this document.

        12.1.1.6. Two complete RFT subsystems, including both C-band and S-band
        Equipment (excluding the axial ratio compensation subsystem and
        depending on location the radome, de-icing).

        12.1.1.7. A set of the following hardware;

          1. A minimum of 14 BCCH Signalling Channel Units

          2. A minimum of 14 RACH Signalling Channel Units

          3. A minimum quantity of TCH Communications Channel Units to allow for
             40 Erlangs (including Diversity) of traffic.

          4. A TNM with a capacity of 32 Erlangs

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          5. A minimum of 4 HPN Channel Units

          6. A minimum set of channel managers capable of supporting the above
             channel units. Associated Channel Managers: A minimum set capable
             of supporting the above channel units.

          7. A SAN OSS system responsible for the training SAN only. This OSS
             system shall be connected to the centralised ICO NMC.

          8. Miscellaneous: ALC, AFC and all other subsystems required for
             normal operation of the SAN.

        12.1.1.8. Fully operational software for the test SAN enabling it to
        function as a reduced capability (in terms of traffic only) SAN. The
        OT&DF shall only contain special software to the extent that is
        necessary to override its operations and protect the main ICO network
        from interference.

12.1.2 SAN NETWORK MANAGEMENT

        12.1.2.1. A local network management subsystem (LNMS-including the
        NODE-OS, NMC NMS and SRMC) shall be installed at the OT&DF.

        12.1.2.2. The LNMSC shall have the ability to be operated from the
        centralised ICO NMC site. A dedicated 64kbps link shall be used to link
        the two sites. This link shall be controlled by the TNM.

        12.1.2.3. The OT&DF will have its programmable routers under the control
        of the main network NMS, which will allow for isolation or connection of
        the SAN portion to the main network.

        12.1.2.4. When isolated, the technical centre SAN may be connected to
        the local NMC.

        12.1.2.5. Connection of the local NMC to the technical centre SAN
        portion is under control of the main network NMS.

        12.1.2.6. The RF equipment at the technical centre SAN shall normally be
        under control of SAN-OSS, however, an override control function will be
        provided.

        12.1.2.7. This override control function will enable the SAN RFT to be
        activated when permission is granted from the NMC. It may be
        de-activated at any time autonomously by the technical centre SAN.

        12.1.2.8. The local NMC shall at no time be capable of being connected
        to the main DCN.

        12.1.2.9. The main NMC may request control of the technical centre from
        the Local NMC or may release control to the local NMC.

12.1.3. MSSC/VLR AND HLR/AuC

        12.1.3.1. A minimum configuration of the following list of equipment:

          1. MSSC/VLR

          2. HLR/AuC

          3. IN

          4. CCS7 Links

          5. Trunks

          6. Conference Links

          7. Echo Cancellers

        12.1.3.2. The functions of these MSSC/VLR/HLR/AuC/IN shall be identical
        to that available for the same equipment in a SAN.

        12.1.3.3. A simulator connection limited by the simulator's
        capabilities, shall be provided.

                                                                 Page 244 of 245
                                                ICO PROPRIETARY AND CONFIDENTIAL
<PAGE>   972

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                                                           Version: 26
                                                           10 November 1997

12.1.3.4. A general purpose patch field will be provided to provide
          interconnection of various portions of the IF equipment and
          simulators.

12.1.3.5. Any additional equipment to provide for varying configurations,
          particularly, band switching satellites simulation conversions,
          is not provided in this contract.

                                                                Page 245 of 245
                                               ICO Proprietary and Confidential

<PAGE>   973

                         CHANGE ORDER NO:2 ATTACHMENT 2

                       6. Schedule 14 - Statement Of Work

<PAGE>   974
                                                       ICO GLOBAL COMMUNICATIONS
                                                         1 QUEEN CAROLINE STREET
                                                                     HAMMERSMITH
                                                                   LONDON W6 9BN
                                                                  UNITED KINGDOM
[ICO LOGO]
                                                           TEL: +44 181 600 1000
                                                           FAX: +44 181 600 1199

                                                            ICO SERVICES LIMITED
                                               REGISTERED IN ENGLAND: NO 3045294
                                         REGISTERED OFFICE: 1 QUEEN CAROLINE ST.
                                                                LONDON W6 9BN UK

                               STATEMENT OF WORK

                             COMMERCIALLY SENSITIVE

                            REPRODUCTION PROHIBITED

CONFIDENTIALITY STATEMENT

All information contained in this document is confidential and proprietary to
ICO Global Communications or any other member of the ICO Global Communications
Group and intended only for the addressee to whom this copy is addressed. The
recipient shall neither copy, distribute, disclose or use the information
contained in it for any purpose other than for which this document has been made
available nor permit anyone else to do the same. The recipient shall be held
fully liable for any wrongful disclosure or use of any of the information
contained in this document by him, or his officers or employees or anyone else
to whom he makes the information available.

               --------------------------------------------
               Document No.:            EN-IG-ICO-SW/000001
               --------------------------------------------
               Version:                 3.1
               --------------------------------------------
               Date:                    7th October, 1997
               --------------------------------------------

     ------------------------------------------------------------------------
     Prepared                      ICO                      NEC
     ------------------------------------------------------------------------
     Author:                       Title: VP-ICONET         Title: Program MG
     ------------------------------------------------------------------------
                                   Signature:               Signature:

                                   /s/ [illegible]          /s/ [illegible]
     ------------------------------------------------------------------------
<PAGE>   975
                                                            EN.IG-ICO-SW/000001
[ICO LOGO]             STATEMENT OF WORK                    ISSUE: 3.1
                                                            7th October, 1997

AMENDMENT RECORD

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------
REVISION    DATE      CN NO.    REASON FOR CHANGE
---------------------------------------------------------------------------------
<S>         <C>       <C>       <C>
1.0         14/2/97             NEC Contract Issue
---------------------------------------------------------------------------------
2.0         17/2/97             To incorporate Final NEC comments
---------------------------------------------------------------------------------
2.1         19/2/97             Changes to paragraph 9.3, LIMF para 4.11.5 added
---------------------------------------------------------------------------------
2.2         26/2/97             Minor editorial changes
---------------------------------------------------------------------------------
3.0         13/8/97             Changes to reflect 60/61/120 Days and PCS Options
---------------------------------------------------------------------------------
3.1         29/9/97             Changes agreed by Coggin/Jenkins 24/9/97
---------------------------------------------------------------------------------

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

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

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

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

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

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

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

---------------------------------------------------------------------------------
</TABLE>

                                                 Confidential and Proprietary to
                                                       ICO Global Communications
Created: 13/8/97
<PAGE>   976
                                                            EN.IG-ICO-SW/000001
[ICO LOGO]             STATEMENT OF WORK                    ISSUE: 3.1
                                                            7th October, 1997

1.   INTRODUCTION

1.1  This Statement of Work (SOW) defines the technical and management
     requirements for the design, construction, installation, integration and
     testing of the ICONET Ground Facilities (IGF). The SOW also defines the
     information, services and equipment to be provided by ICO.

1.2  The main Deliverables of this Supply Agreement are the ICONET Ground
     Facilities comprising twelve (12) SANs, NMC, and Back-up NMC, installed and
     tested within itself and integrated into the ICO System which can be
     enlarged and enhanced as set out in this Agreement.

1.3  The intention is to be able to demonstrate basic voice, low rate tax and
     data calls to UT's, via the satellite, and to the terrestrial network, from
     one standalone SAN, by the 1st March, 2000 provided that the other ICO
     System elements are available and functioning correctly.

1.4  It may be possible to demonstrate calls on additional standalone SANs,
     however there is no contractual commitment to this and it is subject to
     progress of the integration of the IGF being provided under the terms of
     the Supply Agreement.

1.5  If the number of standalone SANs made available for these call
     demonstrations is increased then the Handover Milestone may be delayed, and
     the Master Level Schedule, included in Annex 4, will be subject to review.

1.6  The warranty provisions relevant to this SOW are set out in clause 40 of
     the Terms and Conditions.

                                                 Confidential and Proprietary to
                                                       ICO Global Communications
Created: 13/8/97
<PAGE>   977
                                                            EN.IG-ICO-SW/000001
[ICO LOGO]             STATEMENT OF WORK                    ISSUE: 3.1
                                                            7th October, 1997

2. STATEMENT OF WORK CONTENTS

2.1 The SOW comprises this main text plus Annexes listed below

                                  TABLE SOW-1

                      SUMMARY OF STATEMENT OF WORK ANNEXES

<TABLE>
<CAPTION>
------------------------------------------------------------------------
ANNEX          DOCUMENT       DESCRIPTION OF TASK
------------------------------------------------------------------------
<S>            <C>            <C>
1              000002         Contractor's Deliverables
------------------------------------------------------------------------
2              000003         ICO Services and Equipment
------------------------------------------------------------------------
3              000004         Installation Site Conditions
------------------------------------------------------------------------
4              000005         Program Management & Implementation
------------------------------------------------------------------------
5              000006         Training
------------------------------------------------------------------------
6              000007         Documentation
------------------------------------------------------------------------
7              000008         Site Working Arrangements
------------------------------------------------------------------------
8A             000009         IGF Test Plan
8B             0000010        Call Demonstration Plan
------------------------------------------------------------------------
9              000011         ICONET Integration
------------------------------------------------------------------------
10             000012         IGF Acceptance Criteria
------------------------------------------------------------------------
11             000013         Air Interface Signaling Protocol Validation
------------------------------------------------------------------------
</TABLE>

                                                 Confidential and Proprietary to
                                                       ICO Global Communications
Created: 13/8/97
<PAGE>   978
[ICO LOGO]          STATEMENT OF WORK                  EN.IG-ICO-SW/000001
                                                       ISSUE: 3.1
                                                       7TH OCTOBER, 1997

3.   APPLICABLE DOCUMENTS

          Applicable documents of this SOW are listed in the ICONET Ground
          Facilities Requirements (IGFR) Section 1.3.

4.   SCOPE OF WORK

4.1       The Works shall include the design, manufacture, factory testing, and
          delivery of the ICONET Ground Facilities (IGF) including installation,
          integration, and site testing in accordance with Annexes 7 and 8A.

4.2       The Works shall include an end-to-end call demonstration of basic
          voice, low rate fax and data services from a single standalone SAN,
          via the satellite and the terrestrial network, provided that the other
          ICO System elements, supplied by ICO, are available and functioning
          correctly in accordance with Annex 8B.

4.3       The Works shall also include, at ICO's selection, provision of
          engineering support and materials for the ICONET Integration of the
          IGF with ICO's space segment, terrestrial telecommunications networks
          and ICO User Terminals (UTs) in accordance with Annex 9.

4.4       The IGF will include:

          -    SAN equipment for 12 SAN sites located in twelve (12) different
               countries

          -    NMC and Back Up NMC equipment located in two (2) different
               countries

          -    Interface provisions for interconnecting SANs and for connecting
               SANs to terrestrial networks

                                                 Confidential and Proprietary to
                                                       ICO Global Communications
Created: 13/8/97
<PAGE>   979
[ICO LOGO]          STATEMENT OF WORK                  EN.IG-ICO-SW/000001
                                                       ISSUE: 3.1
                                                       7TH OCTOBER, 1997

          -    Documentation

4.5       The IGF will implement all the requirements set out in the ICONET
          Ground Facilities Requirements Document ("IGFR") Version 26 except for
          those marked therein as "F/R" or "Option".

          Compliance of the IGF with the IGFR shall be demonstrated by the
          Contractor as described in Annexes 8A, and 8B.

                                                 Confidential and Proprietary to
                                                 ICO Global Communications
Created: 13/8/97
<PAGE>   980
[ICO LOGO]          STATEMENT OF WORK                  EN.IG-ICO-SW/000001
                                                       ISSUE: 3.1
                                                       7TH OCTOBER, 1997

4.6       HIGH LEVEL SYSTEM DESCRIPTION

4.6.1     The contractor shall prepare and maintain a High Level System
          Description (HLSD) for the IGF consistent with the IGFR.

4.6.2     The Contractor shall maintain an adequately staffed System Team to
          support the HLSD so that at all times the HLSD is internally
          consistent and complete.

4.6.3     The Contractor shall issue:

          The Draft Contents List of the HLSD for ICO review and approval, 2
          weeks after the date of the Supply Agreement;

          The first draft of the HLSD 2 weeks prior to the Preliminary System
          Design Review.

4.6.4     The first version of the HLSD will be subject to review and approval
          by ICO and issued formally by the Contractor within one month after
          the Preliminary System Design Review (PDR-1)

          A second version of the HLSD will also be subject to review and
          approval by ICO and issued formally by the Contractor within one month
          after the Preliminary System Design Review (PDR-2)

          The final version of the HLSD will be subject to review and approval
          by ICO and issued formally by the Contractor within one month after
          completion of Level 2 Acceptance of the IGF.

4.6.5     The Contractor shall maintain the HLSD in line with the IGF Design,
          with a revised Version being issued within one month after any System
          Design Review.

                                                 Confidential and Proprietary to
                                                       ICO Global Communications
<PAGE>   981
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                                                       ISSUE: 3.1
                                                       7TH OCTOBER, 1997

4.6.6     The HLSD shall contain the following:

          1) A System Reference Model Description that defines the major
          sub-system functional groups of the IGFR, the functionality of each
          major sub-system and the interfaces between the sub-systems;

          2) An IGFR System Analysis showing the processes and procedures of how
          the major IGF sub-systems interact between themselves to provide IGFR
          system functions and performance; including end user services and
          administrative and support services;

          3) An End-to-End System Analysis showing how the IGF interacts with
          external elements (e.g. UT and satellite) and the resultant end-to-end
          capabilities, performance budgets and resource budgets.

          To enable this to be done, ICO will provide initial performance
          budgets and resource budgets, for external elements, to be used for
          this End to End System Analysis. The End to End System Analysis will
          be developed and finalised during the course of the Supply Agreement.

4.6.7     The Contractor shall maintain the HLSD in line with the IGF Design,
          with a revised Version being within one month after any System Level
          Design Review.

4.7       FUNCTIONAL DEFINITION DOCUMENTS

4.7.1     All documentation derived from any of the Applicable Documents,
          referenced in the IGFR, shall be under configuration control, and full
          traceability shall be provided. All new and updated documentation
          shall be provided to ICO.

                                                 Confidential and Proprietary to
                                                       ICO Global Communications
<PAGE>   982
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                                                       ISSUE: 3.1
                                                       7TH OCTOBER, 1997

4.8       EXTERNAL INTERFACE CONTROL DOCUMENTS

4.8.1     ICO will control the evolution of all Interface Control Documents
          (ICDs) for external IGF interfaces including the Air Interface
          document. ICO will ensure that any modification made to an ICD has
          been co-ordinated with the Contractor and with the supplier(s) of the
          corresponding external systems before they are adopted into the
          relevant document.

4.8.2     The Contractor shall support ICO in developing the ICDs with which the
          IGF is concerned, and in particular the Air Interface. In so doing,
          the Contractor shall perform analyses and prepare draft material for
          the ICDs in a timely manner to the extent necessary to enable
          completion of the IGF in accordance with the programme schedule.

4.8.3     ICO will receive ICD Change Requests from the concerned parties. ICO
          will, for each ICD change proposed, perform an initial assessment of
          the change. For each ICD Change Request that passes the initial
          assessment, ICO will generate an ICD Change Proposal and distribute it
          to all concerned parties. The ICD Change Proposal will indicate the
          required response date. ICO will resolve responses to the changes
          proposed either through one-to-one meetings, joint meetings or through
          correspondence as considered necessary by ICO.

4.8.4     After an agreement has been reached regarding a ICD Change Proposal, a
          ICD Change Notice will be issued. The ICD Change Notice once approved
          and issued by ICO is a binding document which all concerned parties
          have to adhere to.

4.8.5     Whenever any proposed change of an ICD is considered by either party
          to affect the terms of this contract, the change shall be handled in
          accordance with Clause 9 of the Terms and Conditions.

4.9       REVIEWS

                                                 Confidential and Proprietary to
                                                       ICO Global Communications
<PAGE>   983
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                                                       ISSUE: 3.1
                                                       7TH OCTOBER, 1997

4.9.1     The Contractor shall conduct Reviews at both system level and
          subsystem level and for progress, according to Annex 4.

4.9.2     The Contractor shall provide all necessary materials for Reviews, and
          will conduct the Reviews. ICO will be represented at all Reviews.

4.10      SYSTEM SIZING

4.10.1    The Contractor shall provide and install the Equipment listed in
          Annex 1.

4.10.2    The System sizing rules given in the IGFR section 9 shall apply. These
          shall be augmented, as appropriate, to account for multi-time slot
          services such as high speed data.

4.11      OVERALL SYSTEM SUPPORT AND INTERFACE CONTROL

4.11.1    The Contractor shall, to the extent necessary, support the overall
          development of the ICO System by participating in technical interface
          meetings relevant to the IGF and by working with UT vendors,
          terrestrial network operators, SAN operators, and the spacecraft
          vendor under ICO's guidance and direction.

4.11.2    In providing this support, the Contractor shall endeavor to ensure the
          integrity and satisfactory operation of the integrated ICO System,
          recognising that the requirements of the IGF are stated in the IGFR
          and that the Contractor is not responsible for implementation of other
          elements of the ICO System.

4.11.3    The schedule for the production of the ICDs will be as shown in the
          Master Level Schedule.

                                                 Confidential and Proprietary to
                                                       ICO Global Communications
<PAGE>   984
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                                                       ISSUE: 3.1
                                                       7TH OCTOBER, 1997

4.11.4    The Contractor shall support ICO in examining ways of optimising the
          use of terrestrial network resources used in the ICO System, including
          maximising the extension of ICO Air Interface voice coding through ICO
          System to the point of interconnect with external networks, to jointly
          maximise service quality and resource efficiency.

5         CONTRACTOR'S DELIVERABLES

5.1       Annex 1 provides a detailed breakdown of the Equipment and services
          to be provided by the Contractor.

5.2       Any revision to the quantities or services shall be subject to the
          formal Contract Change procedures set out in Clause 9 of the Terms and
          Conditions.

5.3       The Contractor shall be responsible for the packaging, transportation
          and delivery of the Deliverables in accordance with clauses 27 and 31
          of the Terms and Conditions.

6.        INFORMATION, SERVICES & EQUIPMENT

6.1       Annex 2 provides a detailed breakdown of the information, services and
          equipment to be provided by ICO except for installation site
          conditions which are included in Annex 3.

6.2       Annex 2 also identifies the milestone dates that such information,
          services and equipment are to be made available to the Contractor.

7.        INSTALLATION SITE CONDITIONS

7.1       Annex 3 identifies the installation site conditions, including
          services and equipment to be provided by ICO.

                                                 Confidential and Proprietary to
                                                 ICO Global Communications
<PAGE>   985
[ICO LOGO]          STATEMENT OF WORK                  EN.IG-ICO-SW/000001
                                                       ISSUE: 3.1
                                                       7TH OCTOBER, 1997

7.2       Access to each Site shall be made available for the specific purpose
          of allowing the Contractor to inspect the Site conditions, and
          buildings and verify the installation design before the formal Ready
          for Access date.

8.        PROGRAM MANAGEMENT AND IMPLEMENTATION

8.1       Annex 4 identifies the Contractor's obligations for Program Management
          tasks including Quality Assurance and the Master Level Schedule, which
          the Contractor shall follow and work to.

8.2       The Contractor shall establish and implement a Program Management
          Organisation and system that ensures effective management of the
          Supply Agreement.

8.3       The Contractor shall establish an Office which shall be the prime
          interface with ICO and responsible for ensuring that the programme is
          executed on time to the requirements of the Supply Agreement and that
          all Deliverables to ICO are to the required technical and quality
          standard.

8.4       The Contractor shall implement a Documentation Control Procedure
          including configuration control for all documentation of this
          Agreement.

8.5       Full traceability shall be provided for all documentation derived from
          any of the Applicable Documents, referenced in the IGFR. All new and
          updated documentation shall be provided to ICO.

9.        TRAINING

9.1       Annex 5 sets out the scope of the training courses that the
          Contractor shall provide.

                                                 Confidential and Proprietary to
                                                 ICO Global Communications
<PAGE>   986
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                                                       ISSUE: 3.1
                                                       7TH October, 1997

9.2       The training shall be conducted in the English Language.

9.3       ICO and the Contractor shall work closely together to develop a
          training program that does not impact on the Master Level Schedule and
          which ensures availability of trained ICO staff at the time when O & M
          services are required.

          Any Changes in the training syllabus, numbers of staff to be trained
          and training locations shall be subject to the formal Contract Change
          Control procedures set out in clause 9 of the Terms and Conditions.

10.       DOCUMENTATION

10.1      Annex 6 sets out all the Documentation to be provided, under the
          terms of the Supply Agreement.

10.2      Annex 6 identifies the number of copies of documentation to be
          provided to ICO who shall be responsible for distribution of
          documentation to the individual SAN Operators.

10.3      The documents shall be written in the English Language.

                                                 Confidential and Proprietary to
                                                       ICO Global Communications
<PAGE>   987
[ICO LOGO]          STATEMENT OF WORK                  EN.IG-ICO-SW/000001
                                                       ISSUE: 3.1
                                                       7TH October, 1997

11.       SITE WORKING ARRANGEMENT

11.1      Annex 7 sets out the scope of the Site Working Arrangements and the
          safe working practices, which the Contractor shall follow.

12.       IGF TEST PLAN

12.1      Annex 8A sets out the Tests which the Contractor shall execute in
          order to demonstrate and verify the functionality of the IGF.

13.       END-TO-END CALL DEMONSTRATION

13.1      Annex 8B sets out the End-to-End call Demonstrations for the IGF
          through which the Contractor shall demonstrate the functionality of
          the IGF equipment with satellite(s), User Terminals and the connection
          to the terrestrial network.

14.       ICONET INTEGRATION

14.1      Annex 9 sets out the ICONET Integration campaigns, maximum available
          resources and the mechanism for determining the final scope of the
          Contractor's obligation for providing ICONET Integration work, to be
          selected by ICO, integrating the IGF with the other elements of the
          ICO System.

15.       IGF ACCEPTANCE CRITERIA

15.1      Annex 10 identifies the criteria to be used for the Acceptance of the
          IGF.

16.       AIR INTERFACE SIGNALLING PROTOCOL VALIDATION

16.1      The Contractor shall perform the scope of work set out in Annex 11 for
          the provision of Air Interface Signalling Protocol Validation.

                                                 Confidential and Proprietary to
                                                       ICO Global Communications
<PAGE>   988
ICO                 STATEMENT OF WORK                  EN.IG-ICO-SW/000001
                                                       ISSUE: 3.1
                                                       7TH OCTOBER, 1997

17.       IGF SYSTEM SUPPORT

          The following shall be made upon the request of ICO, as set out in the
          Agreement.

17.1      Options identified in Annex 1 of this Statement of Work.

17.2      Delivery of Equipment, Software and Services to increase the system
          capacity to meet demand as specifically ordered by ICO under the terms
          of the Agreement.

                                                 Confidential and Proprietary to
                                                       ICO Global Communications
<PAGE>   989

                        CHANGE ORDER NO:2  ATTACHMENT 3

                                AMENDED ANNEXES

ANNEX 1
(STATEMENT OF WORK) - CONTRACTOR'S DELIVERABLES
<PAGE>   990
                                [ICO LETTERHEAD]

                       ANNEX 1: CONTRACTOR'S DELIVERABLES

                             COMMERCIALLY SENSITIVE
                            REPRODUCTION PROHIBITED

CONFIDENTIALITY STATEMENT
ALL INFORMATION CONTAINED IN THIS DOCUMENT IS CONFIDENTIAL AND PROPRIETY TO ICO
GLOBAL COMMUNICATIONS OR ANY OTHER MEMBER OF THE ICO GLOBAL COMMUNICATIONS GROUP
AND INTENDED ONLY FOR THE ADDRESSEE TO WHOM THIS COPY IS ADDRESSED. THE
RECIPIENT SHALL NEITHER COPY, DISTRIBUTE, DISCLOSE OR USE THE INFORMATION
CONTAINED IN IT FOR ANY PURPOSE OTHER THAN FOR WHICH THIS DOCUMENT HAS BEEN MADE
AVAILABLE NOR PERMIT ANYONE ELSE TO DO THE SAME. THE RECIPIENT SHALL BE HELD
FULLY LIABLE FOR ANY WRONGFUL DISCLOSURE OR USE OF ANY OF THE INFORMATION
CONTAINED IN THIS DOCUMENT BY HIM, OR HIS OFFICERS OR EMPLOYEES OR ANYONE ELSE
TO WHOM HE MAKES THE INFORMATION AVAILABLE.

DOCUMENT NO.:         EN-IG-ICO-SW/000002
VERSION:              3.3
DATE:                 7 October 1997

PREPARED              ICO                        NEC
AUTHOR:               TITLE:     VP-ICONET       TITLE:     Program Manager
                      SIGNATURE: ***             SIGNATURE: ***

<PAGE>   991
                                                             EN-IG-ICO-SW/000002
[ICO LOGO]           Annex 1 Contractor's Deliverables       Issue 3.3
                                                             20 October 1997

AMENDMENT RECORD

REVISION     DATE       CN NO.       REASON FOR CHANGE
--------     ----       ------       -----------------
1.0          14/2/97                 NEC Contract Issue
2.0          17/2/97                 To incorporate final NEC comments
2.1          18/2/97                 To incorporate revision to para 9.3 and
                                     delete para 9.4 plus renumbering from para
                                     9.3 onwards -- change to new 9.4
2.2          18/2/97                 Add specific IGFR references to options
3.0          26/2/97                 Addition of warranty services.
3.1          26/2/97                 Minor edits. All agreed.
3.2          13/08/97                Changes to cover 60/61 & 120 Days Options
                                     and PCS/HPN option.
3.3          7/10/97                 Changes agreed Coggin/Jenkins 24/09/97.
                                     Plus editorial edits as per Woodhouse email
                                     of re: SA0424

                                       2              Proprietary & Confidential
                                                    to ICO Global Communications

<PAGE>   992
[ICO LOGO]          Annex 1 Contractor's Deliverables       EN-IG-ICO-SW/000002
                                                            Issue 3.3
                                                            20 October 1997

                               TABLE OF CONTENTS
<TABLE>

<S>                                                         <C>
1.   GENERAL                                                4

2.   DELIVERABLE DOCUMENTATION                              4

3.   MAJOR SUBSYSTEMS OF THE IGF                            4

4.   OPTIONS                                                6

5.   OPTIONAL SUPPORT SERVICES AND EXTENDED WARRANTY        7

6.   PERFORMANCE AND CAPACITY REQUIREMENTS OF DELIVERABLE
     EQUIPMENT                                              11

7.   DELIVERABLE FUNCTIONS AND FEATURES                     12

8.   DELIVERABLE EQUIPMENT                                  12

9.   DELIVERABLE SERVICES                                   15

10.  SITE INSTALLATION DELIVERABLES                         15

11.  SYSTEM CONFIGURATION INFORMATION                       16

</TABLE>

                                       3              Proprietary & Confidential
                                                    to ICO Global Communications
<PAGE>   993
[ICO LOGO]          Annex 1 Contractor's Deliverables       EN-IG-ICO-SW/000002
                                                            Issue 3.3
                                                            20 October 1997

1.   GENERAL

This Annex describes the Deliverables that the Contractor will deliver to ICO.
The structure of this Annex is as follows:

1.1  Section 2 describes the deliverable documentation

1.2  Section 3 describes the deliverable major sub systems of the IGF

1.3  Section 4 describes the options that ICO may exercise after execution of
     this Agreement

1.4  Section 5 describes the optional support and warranty services

1.5  Section 6 describes the performance and capacity requirements of the
     Deliverables

1.6  Section 7 describes the deliverable Functions and Features

1.7  Section 8 describes the detailed equipment list

1.8  Section 9 describes the Services that shall be delivered

1.9  Section 10 describes information to be provided by the Contractor
     regarding the Site installation conditions

1.10 Section 11 describes the IGF configuration data to be provided by the
     Contractor.

2.   DELIVERABLE DOCUMENTATION

The Contractor will deliver all documentation set out in Annex 6.

3.   MAJOR SUBSYSTEMS OF THE IGF

The Contractor's deliverables shall together provide the functionality
required by the IGFR and shall include but not be limited to the following
major subsystems:

3.1  Twelve (12) SANs each comprising:

          i.  An RFT (Radio Frequency Terminal) sub-system of 5 RFTs (a total
              of 60 RFTs).

                    -  including early delivery of 2 RFTs at 6 SAN Sites (a
                       total of 12 RFTs) for the purposes of TT&C

          ii. SBS sub-system including its associated:

                    -  DC UPS

                    -  Local SRMS

                                       4              Proprietary & Confidential
                                                    to ICO Global Communications

<PAGE>   994
                                                            EN-IG-ICO-SW/000002
[ICO LOGO]          Annex 1 Contractor's Deliverables       Issue 3.3
                                                            20 October 1997

          -  clock, reception and distribution sub-system

          -  IF Distribution subsystem

    iii.  TNM sub-system

    iv.   MSSC/VLR sub-system and its associated DC UPS

    v.    HPN sub-system

    vi.   SAN Management System:

          -  TMOS WS

          -  SAN OSS including SRMC functions

    vii.  DCN sub-system

    viii. Intra SAN sub system connection cabling and Intermediate Distribution
          Frame

    ix.   Interconnection cabling to the ICO provided DDF for telecommunications
          networks as defined in the IGFR.

    x.   Legal Interception Activation sub-system (LIAS)

3.2 One AuC/EIR and its associated DC UPS

3.3 One HLR and its associated DC UPS

3.4 One integrated messaging sub-system.

3.5 One IS.41-to-ICO IWF

3.6 One ICO-to-IS.41 IWF

3.7 One Network Management Centre comprising:

    i.   Link-OS (integrating all SAN-OSS)

    ii.  Node-OS/TMOS (management of switching and mobility management elements
         in the IGF)

    iii. SRMC sub-system

    iv.  DCN sub-system

                              5                     Proprietary & Confidential
                                                  to ICO Global Communications

<PAGE>   995
                                                            EN-IG-ICO-SW/000002
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                                                            20 October 1997

3.8  One Back-up Network Management Centre comprising:

        i.    Link-OS (integrating all SAN-OSS)

        ii.   Node-OS/TMOS (management of switching and mobility management
              elements in the IGF)

        iii.  SRMC sub-system

        iv.   DCN sub-system

        v.    Legal Interception Management Subsystem

3.9  SBS Test Fixtures/Test Equipment (to be installed at HNS India until ICO
     decides to move the equipment elsewhere)

3.10 System Integration support facility (to be installed at NEC/A and HNS USA.
     The remaining SBS equipment will stay at the NEC/A and HNS until ICO
     decides to move the equipment elsewhere.)

3.11 Set of Spares as specified in Table 2, Section 7 of this Annex.

3.12 Special purpose test equipment as defined in Annex 2 and Annex 9 of the SOW

4.   OPTIONS

The following item is deliverable at ICO's option provided that the option is
exercised within 180 days of the date of this Supply Agreement:

4.1  Salt defence and dust protection for the RFT Shelter at the UAE SAN Site

The following items are separately deliverable at ICO's option provided that
the option for each is exercised within 366 days of the date of this Supply
Agreement:

4.2  One PCD-to ICO IWF including IMSC

4.3. One ICO-to-PDC IWF

4.4  One GSM-to-ICO ILR

4.5  Software release 'R2' for the IS-41 IWF (see IUKC 163).

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5.   OPTIONAL SUPPORT SERVICES AND EXTENDED WARRANTY

5.1  ADDITIONAL SUPPORT SERVICES DURING THE WARRANTY PERIOD

5.1.1.1 Upon election by ICO not later than 6 months before the scheduled
commencement of the warranty period specified in Clause 40 of the Agreement,
the Contractor will provide SBS Deluxe Support Services as described in Section
5.3.

5.1.1.2 Upon election by ICO not later than 6 months before the scheduled
commencement of the warranty prior specified in clause 40 of the Agreement, the
Contractor will provide MSSC Deluxe Support as described in Section 5.4.

5.1.1.3 Upon election by ICO not later than 6 months before scheduled
commencement of the warranty prior specified in clause 40 of the Agreement, the
Contractor will provide HPN Deluxe Support as described in Section 5.6.

5.2 ADDITIONAL SUPPORT SERVICES DURING THE POST WARRANTY PERIOD.

5.2.1 EXTENDED BASIC WARRANTY

5.2.1.1 After completion of the Warranty Period specified in clause 40 of the
Agreement, the warranty condition of clause 40 of the Agreement may be extended
on an annual basis, for any or all of the RFT, SBS, MSSC, LIAS, LIMS, IWF,
messaging HLR, AuC/EIR, HPN, TNM or NMC/SAN OSS sub-systems.

5.2.1.2 ICO may elect to receive extended basic warranty services upon written
notice to the Contractor-not later than 3 months prior to the completion of the
warranty period specified in clause 40 of the Agreement, or in any subsequent
period of extended basic warranty services.

5.2.1.3 The ICO election(s) to receive basic warranty services shall be
continuous, without break in the periods of election.

5.2.2 EXTENDED SBS DELUXE SUPPORT SERVICES

5.2.2.1 Provided ICO has elected to receive SBS Deluxe Support Service in
accordance with Paragraph 5.1.1.1. above, ICO may elect to continue to receive
SBS Deluxe Services upon written notice to the Contractor or the provider of
the Deluxe Support Services, gives not later than 3 months prior to the
completion of the initial service period, or any subsequent renewals thereof.
Such SBS Deluxe Support Service shall be provided in 2 year periods of service.
The ICO election(s) to receive SBS Deluxe Support Services shall be continuous
without interruptions in the periods of election.

5.2.2.2 The SBS Deluxe Support Services to be provided are as described in
Section 5.3.

5.2.3. EXTENDED MSSC DELUXE SUPPORT SERVICES

5.2.3.1 Provided that ICO has elected to receive MSSC Deluxe Support Services
in accordance with Paragraph 5.1.1.2. above, ICO may elect to continue to
receive MSSC Deluxe Support Services upon written notice to the Contractor, or
the provider of the MSSC Deluxe Support Services, not later than 3

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months prior to the completion of the initial or any subsequent renewal(s) of
the MSSC Deluxe Support Services. The MSSC Deluxe Support Services shall be
provided in periods of 1 year.

5.2.3.2 The ICO election(s) to receive MSSC Deluxe Support Services shall be
continuous, without interruptions in the periods of election.

5.2.3.3 The MSSC Deluxe Support Services to be provided are as described in
Section 5.5.

5.2.4 EXTENDED HPN DELUXE SUPPORT SERVICES

5.2.4.1 Provided that ICO has elected to receive HPN Deluxe Support Services in
accordance with Paragraph 5.1.1.3. above, ICO may elect to continue to receive
HPN Deluxe Support Services upon written notice to the Contractor, or the
provider of the HPN Deluxe Support Services, not later than 3 months prior to
the completion of the initial or any subsequent renewal(s) of the HPN Deluxe
Support Services. The HPN Deluxe Support Services shall be provided in periods
of 1 year.

5.2.4.2 The ICO election(s) to receive HPN Deluxe Support Services shall be
continuous, without interruptions in the periods of election.

5.2.4.3 The HPN Deluxe Support Services to be provided are as described in
Section 5.6.

5.3 SBS DELUXE SUPPORT SERVICES

5.3.1.1 The DELUXE Support for SBS provides a full period Customer Assistance
Centre (CAC) on 24 hours per day, 7 days a week for all SAN locations.
Additionally, manufacturer will maintain a team of experts dedicated to ICO
for trouble shooting and support services of all SBS manufacturer supplied
equipment. Under the DELUXE support maintenance agreement, SBS manufacturer
technical staff at the manufacturer's engineering centre, dispatched to ICO
locations as required or temporarily place at selected locations will maintain
capability of the SBS manufacturer supplied equipment, including:

     i.  fault isolation and service restoration, in co-operation with the ICO
         technical staff.

     ii. problem investigation and problem resolution in co-operation with the
         SBS manufacturer support team at the manufacturer's engineering centre

    iii. creation and reporting on trouble ticket system for SBS equipment

     iv. system engineering for planning system extensions, and traffic sizing.

5.3.1.2. If ICO elects to exercise this option, the parties will agree a
definitive scope of work consistent with the basis set out above which may
include resident SBS support staff at ICO selected locations.

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5.4  MSSC DELUXE SUPPORT SERVICES

5.4.1  INTRODUCTION

5.4.1.1 The contractor shall provide MSSC Deluxe Support Services which
comprises Systems Services the content of which includes:

     i.   System Maintenance

    ii.   Spares Replenishment.

5.4.2 SYSTEM MAINTENANCE

5.4.2.1 System Maintenance comprises the following services.

5.4.2.2 Emergency Services
The Contractor shall at any time in an Emergency situation, when requested by
ICO, provide ICO with the Emergency Services consisting of telephone support
and on-site support.

5.4.2.3 Trouble Report Handling Services/Trouble Report Guideline
The Contractor shall provide ICO with Trouble Report Handling Services relating
to MSSC.

5.4.2.4 Software Update Service
Any part of the Software found to cause a measurable deviation from the
Software functionality, and which is not of an Emergency character shall be
corrected by supplying Software Updates to ICO in accordance with the schedule
supplied by the Contractor in its Trouble Report Answer.

New or updated documentation on Software Updates will be furnished to ICO free
of charge.

5.4.2.5 Implement and/or install, free of charge, the corrected Software,
supplied in accordance with the Software Update Services, on one SAN Site. ICO
shall perform and be responsible for the implementation and/or installation on
the rest of the SAN or NMC Sites.

5.4.2.6 Consultation services
During Normal Working Hours perform Consultation Services, mainly consisting of
answers and recommendations due to general System operation and maintenance
routine inquiries identified by ICO's support personnel.

5.4.3 SPARES REPLENISHMENT

5.4.3.1 Replenishment of Spares acquired with the initial or subsequent MSSC
equipment procurement.

5.4.4 EXCLUDED HARDWARE AND SOFTWARE

5.4.4.1 The System Services do not cover Hardware or Software which is damaged
due to ICO's or any third parties misuse or mishandling, packing, repairs or
attempted modifications.

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5.4.4.2 The System Services shall not apply to any failure caused by
modification of the Hardware or Software without the Contractor's written
approval and failures caused by interworking equipment not supplied under the
Agreement.

5.4.4.3 Consumable parts such as lamps, fuses, batteries, are excluded from the
System Services.

5.4.5 SCOPE OF THE MSSC SUPPORT SERVICES

5.4.5.1   The MSSC Support Services cover the following:

          i.   12 MSSC

          ii.  1 HLR

          iii. 1 AuC/EIR

          iv.  2 OSS

          v.   1 combined messaging and SMSC platform.

          vi.  1 ICO-to-IS41 IWF and 1 IS41-to-ICO ILR

          vii. 12Legal Interception Activation System (LIAS) and one Legal
               Interception Management Sub-system.

5.5 MSSC DELUXE SUPPORT SERVICES II

5.5.1.1 The services described in Section 5.4 shall be included in MSSC DELUXE
SUPPORT SERVICES II, in addition to the Repair and Replacement Service
described in Paragraph 5.5.1.2.

5.5.1.2 Repair and Replacement Services

Repair or replace any Hardware found by ICO to be faulty by reason of defective
material, design or workmanship which results in the Hardware not conforming to
and functioning and operating in accordance with the criteria and specification
set forth in the Agreement.

New or update Documentation or Hardware due to repair or modifications will be
furnished to ICO free of additional charge.

5.6 HPN DELUXE SUPPORT SERVICES

5.6.1.1 HPN Deluxe Support Service provides one year depot maintenance for the
HPN hardware and software. Depot maintenance support does not include travel
which if required will be charged in addition.

5.6.1.2 The HPN Support Service cover the following:

     i.  12 HPN

     ii. 12 HPN PCS

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6. PERFORMANCE AND CAPACITY REQUIREMENTS OF DELIVERABLE EQUIPMENT

The equipment delivered by the Contractor, including its major subsystems and
including all other associated equipment and facilities including software
necessary for its correct operation, shall when integrated to form the IGF,
satisfy the IGFR and shall satisfy the system capacity requirements set forth
in Table 1 of this Section of this Annex.

TABLE 1-PERFORMANCE AND CAPACITY REQUIREMENTS

NOTES TO TABLE 1

6.1.1.1 Note 1.
Traffic at the X3 interface from the MSSC to the LIAS is derived based as
follows.

% of MSSC/VLR BHCA (including MO and MT calls) that triggers interception = 5%

Outgoing BHCA from the MSSC/VLR to the LIAS = 0.005 * 8,640 = 432

As only 5% of the MSSC traffic is data/fax calls, therefore assume all
intercept traffic is speech call.

Average holding time of an intercept call = 150 seconds

Outgoing intercept traffic from the MSSC to the interconnected LIAS = (432*
150)/3,600 = 18 Erls

With 30 64 k/bit/s circuits provisioned for carrying intercept calls from the
MSSC to the LIAS, and applying Erlang B formula, the blocking probability for
failing to allocate an outgoing 64 kbit/s circuit to deliver an intercept call
from the MSSC to the LIAS = Erlang B (18,30) = 0.3%.

6.1.1.2 Note 2
Assuming 10% of the intercept calls arriving at the LIASS need to be delivered
to two monitoring centres and all intercept traffic arriving at the LIAS is
successfully switched via the MSSCs to the destination addresses, the outgoing
intercept on the X3 interface to the MSSC = 18* 1.1 = 20 Erls. Given that there
are 24 64 kbit/s circuits provisioned for the outgoing intercept traffic from
the LIAS to the MSSC, the blocking probability for failing to allocate an
outgoing 64 kbit/s circuit

=ErlangB (20,24)=6.6%.

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7. DELIVERABLE FUNCTIONS AND FEATURES

The Contractor shall deliver the IGF with all of the associated equipment and
facilities including necessary software so that the functions and features as
described in the IGFR will operate as specified.

The schedule for delivery, installation, commissioning, integration and testing
of the equipment and its integration into the total IGF is set forth in Annex 4
of this SOW.

Functions and features marked F/R and Options in the IGFR shall be excluded
from delivery within the timetable laid out in Annex 4 of this SOW.

8.  DELIVERABLE EQUIPMENT

8.1 DELIVERABLE EQUIPMENT

8.1.1.1 The deliverable equipment is set out in Table 2 of this Annex.

TABLE 2 - DELIVERABLE EQUIPMENT

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8.2 NOTES TO AX & B ITEMS

8.2.1.1  General Comments:

1) Any O&M functions for selected items are NOT INCLUDED.

8.2.1.2  NOTE 1: "SAN TO SAN HANDOVER.
Refer to Section 6.12 in the IGFR. The hardware required to implement and test
SAN-SAN handovers, is test equipment. This includes the purchase of specific
test instrument protocol suites to test the added functions.

8.2.1.3  NOTE 2: "LANGUAGE CHARACTER SETS"
Refer to Section 4.4.3 in the IGFR.

8.2.1.4  NOTE 3: "GEOGRAPHIC LOCATION"
Refer to Section 6.19.5 in the IGFR.

8.2.1.5  NOTE 4: "MULTIPLE LANGUAGE ANNOUNCEMENT"
Refer to Section 4.4.3 in the IGFR. The 2 recorded announcement machines
mentioned in the following note are included in the equipment list for the MSSC
(AST-DR, Equipment item 1.2.3.2)

8.2.1.6  The following technique is proposed as a way to support a language
indicator per subscriber.

       i. The indicator shall be stored as part of the subscriber profile
          within the HLR. This involves support in the operation and maintenance
          interface for entering the language preference, changing it, and
          printing it back out again. This data is reload marked as is the rest
          of the subscriber profile. Number range and mapping to national
          strings (e.g. 1=U.S.A.) should be defined. Administrative functions
          outside the HLR (e.g. SOG) are also influenced in a minor way.

      ii. The indicator shall be downloaded to VLR along with the rest of the
          subscriber data.

     iii. Transportation is via the extension area in MAP. The impact here is on
          the MAP handling blocks on the HLR end and on the VLR end (two
          blocks). The data storage block in VLR is impacted to store the new
          value.

      iv. The support for character sets (e.g. for SMS) is limited to that
          offered in current GSM systems. As other operators are already
          requiring additional alphabets and characters, this is unlikely to
          remain a problem in future.

8.2.1.7  NOTE 5: "EMERGENCY CALL"
Refer to Section 4.1.1.2. The hardware required to implement and test Emergency
Call expansion, is test equipment. This include the purchase of specific test
instrument protocol suites to test the added functions.

8.2.1.8  NOTE 6: "FAX GROUP 3 OVER 9.6KBIT/S"
Refer to Section 4.1.3.2 in the IGFR. Channel base quotation in the MSSC is
needed and provided in Item 16. The hardware quoted in this item means test
equipment for implementing and testing FAX

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over 9600bit/s functionality. This include the purchase of specific test
instrument protocol suites to test the added functions.

8.2.1.9. NOTE 7: "SPEECH FOLLOWED BY/ALTERNATIVE WITH DATA"
Refer to Section 4.2.3 in the IGFR. The hardware required to implement and test
Alternate speech/data, is test equipment. This include the purchase of
specific test instrument protocol suites to test the added functions.

8.2.1.10 NOTE 8: "CIRCUIT MODE DATA (9.6 Kbps - 38.4 Kbps)
Refer to Section 4.2.2 in the IGFR. Channel base quotation in the MSSC is
needed and provided in Item 16. The hardware required to implement and test
DATA over 9600bit/s, is test equipment. This include the purchase of specific
test instrument protocol suites to test the added functions.

8.2.1.11 NOTE 9: "HPN PRIVACY USING ENCRYPTION"
Refer to Section 4.4.1.2 in the IGFR.

8.2.1.12 NOTE 10: "ALTERNATIVE SATELLITE CONSTELLATION"
This item is not bided. Refer to Section 6.23 in the IGFR.

8.2.1.13 NOTE 11: "NETWORK ACCESS AVAILABILITY"
Refer to Section 6.8 in the IGFR. The hardware required to implement and test
multi SAN paging, is test equipment. This includes the purchase of specific
test instrument protocol suites to test the added functions.

8.2.1.14 NOTE 12: "DIVERSITY ALLOCATION CAPACITY"
Refer to Section 6.11.1 in the IGFR.

8.2.1.15 NOTE 13: "ADDITION/REMOVAL OF DIVERSITY"
Refer to Section 6.11.2 in the IGFR.

8.2.1.16 NOTE 14: "SOFT DECISION DECODE"
Soft Decision will be performed in the SBS.

8.2.1.17 NOTE 15: "INCOMING CALL DETAILS/CALL-BACK FUNCTION"
Tentative release date is 1Q2000.

8.2.1.18 NOTE 16: "SOFTWARE FOR HIGH SPEED CIRCUIT SWITCHED DATA AND GROUP FAX
SERVICES" (PER CHANNEL BASIS)

What we propose will provide support for data at rates in the range of 9.6 -
38.4 kbit/s. Circuit Switched Data at these rates will be supported from
release R8 of CME20. Fax Group 3 (over 9.6 kbit/s) is similarly supported.

8.2.1.19 The critical dimensioning parameter in calculating the price is the
number of GIWU channels necessary to support the required data and fax total
traffic. THIS QUOTATION IS SUBJECT TO FINALISATION OF THE AIR INTERFACE
SPECIFICATION

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9.   DELIVERABLE SERVICES

9.1  The Contractor shall install, integrate, test, and hand over to ICO all
individual SANs and the NMC and backup NMC that make up the integrated IGF.

9.2  ICONET Integration programme as defined in Annex 9 and selectable by ICO.

9.3  Training programme as defined in Annex 5.

10.  SITE INSTALLATION DELIVERABLES

The Contractor shall provide:

10.1 confirmation that the information and services being provided by ICO in
accordance with Annex 2 and 3, present no impediment to the SAN implementation
program

10.2 antenna foundation design drawings (SIC-STD-017, 017-1, 018) for typical
wind loading, based on NEC supplied drawings SIC-STD-017, 017-1, 018, within
one month of contract signature

10.3 the anchor bolts, templates and anchor bolt setting up procedures for the
antenna foundations three months prior to commencement of NEC installation

10.4 the detailed specification for the supporting rod and cable ducts for the
GPS systems during the SBS FDR

10.5 the RFT shelter foundation specification, including, but not limited to
physical dimensions and weight, based on NEC supplied drawings SIC-STD-006,
within one month of contract signature

10.6 the AC power distribution board inside all RFT shelters

10.7 specifications defining all of the interface points and the associated
interface conditions for all Equipment supplied, in accordance with a schedule
to be agreed at the DRM

10.8 the Equipment floor layout plans for all Sites for all Equipment to be
supplied by the Contractor, based on NEC supplied drawings SIC-STD-003/003-1
for RFT shelters, and SIC-STD-004 for Hub Buildings, within one month of
contract signature

10.9 the specification of the power consumption, including, but not limited to
start-up and normal operating loads and required no-fuse breaker capacities and
quantities for all of the equipment that will be supplied by the Contractor and
for future expansion of the Equipment, in accordance with the NEC provided
Equipment List, within one month of contract signature

10.10 the specification of Equipment heat dissipation for all items of
Equipment that will be supplied by the Contractor and for future expansion of
the Equipment, in accordance with the NEC provided Equipment List, within one
month of contract signature

10.11 the environmental conditions that shall apply for all items of Equipment
that will be supplied by the Contractor, have been specified in the IGFR
Section 8.11.3

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10.12 Certificates, where required, to confirm that all the equipment, supplied
for use in the country, meets all local and federal regulations and or
standards applicable in that country.

11. SYSTEM CONFIGURATION INFORMATION

ICO shall provide the configuration information in the format defined by the
Contractor. The Contractor shall configure the equipment as per the supplied
configuration information and shall provide ICO at handover the details of the
configuration in a form to be agreed.

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<TABLE>
<CAPTION>
                                                              Table 1
------------------------------------------------------------------------------------------------------------------------------------

SAN       DIMENSIONING DRIVER                  UNITS      AUSTRALIA          BRAZIL             CHILE              CHINA
                                                          SAN 1              SAN 2              SAN 3              SAN 4
<S>   <C> <C>                                  <C>        <C>      <C>       <C>      <C>       <C>      <C>       <C>      <C>
      RFT SUB-SYSTEM
          C-Band EIRP towards satellite
          per RFT                                         -                  -                  -                  -
          IF ports                                        -                  -                  -                  -
          Number of RFTs                                                 5                  5                  5                  5
          RFT Shellers                                                   5                  5                  5                  5
          Delcing Facility                                -                  -                  -                  -
          Blower and heater for Center hub                -                  -                  Yes                Yes
          Additional vent'l for Sheller                   -                  -                  -                  -
          Additional HPA Blower                           -                  -                  -                  -
          HPA Cooling cabinet sheller                     -                  -                  -                  -
          Optical fiber facility                          Yes                -                  Yes                -
          TTC Site (including monopulse
          tracking)                                       Yes                -                  Yes                -
          IOT Support Facility (axial ratio
          improvement)                                    -                  -                  -                  -
          Installation Materials                          Yes                Yes                Yes                Yes
          Remote maintenance system from
          Japan/SAN                            (TBD)
          Portable O&M Terminal/RFT
          Band Pass Filler at LNA input/SAN               Yes                Yes                Yes                Yes
      SBS SUB-SYSTEM
          Traffic on the A interface (to TNM)   E                      320                320                320                320
          Traffic on the Air interface          E                      483                483                483                483
          Busy Hour Call Attempts               BHCA                 7,680              7,680              7,680              7,680
          Busy Hour Location Updates                                 7,500              7,500              7,500              7,500
          SBS DC UPS                                      Yes                Yes                Yes                Yes
          Reference Clock & System Timing
          reception and distribution
          subsystem (GPS including antenna
          system)                                         Yes                Yes                Yes                Yes
          IF distribution sub-system                      Yes                Yes                Yes                Yes
      TNM SUB-SYSTEM
          Traffic on the A interface (to SBS)   E                      320                320                320                320
          Traffic on the A interface (to MSSC,
          PCM coded)                            E                      320                320                320                320
          Traffic on the A interface (to MSSC,
          compressed)                           E                       64                 64                 64                 64
          Semi-permanent traffic                calls                    4                  4                  4                  4
          Busy Hour Call Attempts               BHCA                 8,448              8,448              8,448              8,448
      MSSC/VLR SUB-SYSTEM
          Traffic on the A interface (to TNM,
          PCM coded)                            E                      320                320                320                320
          Traffic on the A interface (to TNM
          compressed)                           E                        8                  8                  8                  8
          Traffic on the interfaces to POI
          (including echo cancellation as
          required)                             E                      320                320                320                320
          Number of echo cancellers provided
          as % of POI trunks                                          100%               100%               100%               100%
          Number of T1 interfaces as % of
          POI trunks                                                    0%                 0%                 0%                 0%
          Traffic on the interfaces to other
          SANs                                  E                       64                 64                 64                 64
          Traffic on the interface MSSC/GIWU    E                       16                 16                 16                 16
          Traffic on the interface to Voicemail E                      3.7                3.7                3.7                3.7
          Traffic on the interface to the
          voicemail (F/R)                       E                      0.4                0.4                0.4                0.4
          Traffic on the interface to
          Recorded Voice Announcements          E                        8                  8                  8                  8
          Busy Hour Call Attempts               BHCA                 8,640              8,640              8,640              8,640
          Busy Hour Registered Subscribers      sub                128,000            128,000            128,000            128,000
          Busy Hour Location Updates            BHLU                 7,500              7,500              7,500              7,500
          C7 signalling link ports (64k)        ports                   16                 16                 16                 16
          Busy Hour C7 signalling MTP
          transactions                                    Note (1)           Note (1)           Note (1)           Note (1)
          Nos of high speed (>9.6 kbit/s)
          channels                             channels                 16                 16                 16                 16
          Traffic on interface to RVA source   E                         8                  8                  8                  8
          Busy Hour Call Attempts to RVA
          source                               BHCA                  2,880              2,880              2,880              2,880
          Traffic on interfaces to GIWUs       E                        16                 16                 16                 16
          Busy Hour Call Attempts to GIWUs     BHCA                    384                384                384                384
          Busy Hours Call Attempts (LIAS
          assumption)                          BHCA                  8,640              8,640              8,640              8,640
          % of BHCA that trigger interception  %                         5                  5                  5                  5
          Traffic at the X3 V/ to LIAS
          (See Note 1 below)                   E                        18                 18                 18                 18
</TABLE>

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

SAN       DIMENSIONING DRIVER                             GERMANY            INDIA              INDONESIA          MEXICO
                                                          SAN 5              SAN 6              SAN 7              SAN 8
<S>   <C> <C>                                             <C>      <C>       <C>       <C>      <C>       <C>      <C>       <C>
      RFT SUB-SYSTEM
          C-Band EIRP towards satellite
          per RFT                                          -                  -                  -                  -
          IF ports                                         -                  -                  -                  -
          Number of RFTs                                                 5                   5                  5                  5
          RFT Shellers                                                   5                   5                  5                  5
          Delcing Facility                                 Yes                -                  -                  -
          Blower and heater for Center hub                 Yes                -                  -                  -
          Additional vent'l for Sheller                    Yes                -                  -                  -
          Additional HPA Blower                            -                  -                  -                  Yes
          HPA Cooling cabinet sheller                      -                  -                  -                  Yes
          Optical fiber facility                           -                  -                  -                  -
          TTC site (including monopulse                    Yes                Yes                -                  -
          tracking)
          IOT Support Facility (axial ratio
          improvement)                                     -                  (Yes)              -                  -
          Installation Materials                           Yes                Yes                Yes                Yes
          Remote maintenance system from
          Japan/SAN
          Portable O&M Terminal/RFT
          Band Pass Filler at LNA input/SAN                Yes                Yes                Yes                Yes
      SBS SUB-SYSTEM
          Traffic on the A interface (to TNM)                          320                 320                320                320
          Traffic on the Air interface                                 483                 483                483                483
          Busy Hour Call Attempts                                    7,680               7,680              7,680              7,680
          Busy Hour Location Updates                                 7,500               7,500              7,500              7,500
          SBS DC UPS                                       Yes                Yes                Yes                Yes
          Reference Clock & System Timing
          reception and distribution
          subsystem (GPS including antenna
          system)                                          Yes                Yes                Yes                Yes
          IF distribution sub-system                       Yes                Yes                Yes                Yes
      TNM SUB-SYSTEM
          Traffic on the A interface (to SBS)                          320                 320                320                320
          Traffic on the A interface (to MSSC                          320                 320                320                320
          PCM coded)
          Traffic on the A interface (to MSSC                           64                  64                 64                 64
          compressed)
          Semi-permanent traffic                                         8                   8                  8                  8
          Busy Hour Call Attempts                                    8,448               8,448              8,448              8,448
      MSSC/VLR SUB-SYSTEM
          Traffic on the A interface (to TNM,                          320                 320                320                320
          PCM coded)
          Traffic on the A interface (to TNM                             8                   8                  8                  8
          compressed)
          Traffic on the interface to POI                              320                 320                320                320
          (including echo cancellation as
          required)
          Number of echo cancellers provided                          100%                100%               100%               100%
          as % of POI trunks
          Number of T1 interfaces as % of                               0%                  0%                 0%                 0%
          POI trunks
          Traffic on the interfaces to other
          SANs                                                          96                  96                 96                 96
          Traffic on the interface MSSC/GIWU                            16                  16                 16                 16
          Traffic on the interface to Voicemail                        3.7                 3.7                3.7                3.7
          Traffic on the interface to the
          voicemail (F/R)                                              0.4                 0.4                0.4                0.4
          Traffic on the interface to
          Recorded Voice Announcements                                   8                   8                  8                  8
          Busy Hour Call Attempts                                    8,640               8,640              8,640              8,640
          Busy Hour Registered Subscribers                         128,000             128,000            128,000            128,000
          Busy Hour Location Updates                                 7,500               7,500              7,500              7,500
          C7 signalling link ports (64k)                                16                  16                 16                 16
          Busy Hour C7 signalling MTP
          transactions                                     Note (1)           Note (1)           Note (1)           Note(1)
          Nos of high speed (>9.6 kbit/s)
          channels                                                      16                  16                 16                 16
          Traffic on interface to RVA source                             8                   8                  8                  8
          Busy Hour Call Attempts to RVA
          source                                                     2,880               2,880              2,880              2,880
          Traffic on interfaces to GIWUs                                16                  16                 16                 16
          Busy Hour Call Attempts to GIWUs                             384                 384                384                384
          Busy Hours Call Attempts (LIAS
          assumption)                                                8,640               8,640              8,640              8,640
          % of BHCA and trigger interception                             5                   5                  5                  5
          Traffic at the X3 V/ to LIAS
          (See Note 1 below)                                            18                  18                 18                 18
</TABLE>

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

SAN       DIMENSIONING DRIVER                             SOUTH AFRICA       SOUTH KOREA        UAE                USA
                                                          SAN 9              SAN 10             SAN 11             SAN 12
<S>   <C> <C>                                             <C>     <C>        <C>      <C>       <C>      <C>       <C>      <C>
      RFT SUB-SYSTEM
          C-Band EIRP towards satellite
          per RFT                                         -                  -                  -                  -
          IF ports                                        -                  -                  -                  -
          Number of RFTs                                                5                   5                  5                  5
          RFT Shellers                                                  5                   5                  5                  5
          Delcing Facility                                -                  -                  -                  Yes
          Blower and heater for Center hub                Yes                Yes                -                  Yes
          Additional vent'l for Sheller                   -                  Yes                -                  Yes
          Additional HPA Blower                           -                  -                  -                  -
          HPA Cooling cabinet sheller                     -                  -                  -                  -
          Optical fiber facility                          -                  -                  -                  -
          TTC site (including monopulse
          tracking)                                       Yes                -                  -                  Yes
          IOT Support Facility (axial ratio
          improvement)                                    -                  -                  -                  -
          Installation Materials                          Yes                Yes                Yes                Yes
          Remote maintenance system from
          Japan/SAN
          Portable O&M Terminal/RFT
          Band Pass Filler at LNA input/SAN               Yes                Yes                Yes                Yes
      SBS SUB-SYSTEM
          Traffic on the A interface (to TNM)                         320                 320                320                320
          Traffic on the Air interface                                483                 483                483                483
          Busy Hour Call Attempts                                   7,680               7,680              7,680              7,680
          Busy Hour Location Updates                                7,500               7,500              7,500              7,500
          SBS DC UPS                                      Yes                Yes                Yes                Yes
          Reference Clock & System Timing
          reception and distribution
          subsystem (GPS including antenna
          system)                                         Yes                Yes                Yes                Yes
          IF distribution sub-system                      Yes                Yes                Yes                Yes
      TNM SUB-SYSTEM
          Traffic on the A interface (to SBS)                         320                 320                320                320
          Traffic on the A interface (to MSSC,
          PCM coded)                                                  320                 320                320                320
          Traffic on the A interface (to MSSC,
          compressed)                                                  64                  64                 64                 64
          Semi-permanent traffic                                        4                   4                  4                  4
          Busy Hour Call Attempts                                   8,448               8,448              8,448              8,448
      MSSC/VLR SUB-SYSTEM
          Traffic on the A interface (to TNM,
          PCN coded)                                                  320                 320                320                320
          Traffic on the A interface (to TNM
          compressed)                                                   8                   8                  8                  8
          Traffic on the interface to POI
          (including echo cancellation as
          required)                                                   320                 320                320                320
          Number of echo cancellers provided
          as % of POI trunks                                         100%                100%               100%               100%
          Number of T1 interfaces as % of
          POI trunks                                                   0%                  0%                 0%               100%
          Traffic on the interfaces to other
          SANs                                                         64                  64                 64                 64
          Traffic on the interface MSSC/GIWU                           16                  16                 16                 16
          Traffic on the interface to Voicemail                       3.7                 3.7                3.7                3.7
          Traffic on the interface to the
          voicemail (F/R)                                             0.4                 0.4                0.4                0.4
          Traffic on the interface to
          Recorded Voice Announcements                                  8                   8                  8                  8
          Busy Hour Call Attempts.                                  8,640               8,640              8,640              8,640
          Busy Hour Registered Subscribers                        128,000             128,000            128,000            128,000
          Busy Hour Location Updates                                7,500               7,500              7,500              7,500
          C7 signalling link ports (64k)                               16                  16                 16                 16
          Busy Hour C7 signalling MTP
          transactions                                    Note (1)           Note (1)           Note (1)           Note(1)
          Nos of high speed (>9.6 kbits/s)
          channels                                                     16                  16                 16                 16
          Traffic on interface to RVA source                            8                   8                  8                  8
          Busy Hour Call Attempts to RVA
          source                                                    2,880               2,880              2,880              2,880
          Traffic on interfaces to GIWUs                               16                  16                 16                 16
          Busy Hour Call Attempts to GIWUs                            384                 384                384                384
          Busy Hours Call Attempts (LIAS
          assumption)                                               8,640               8,640              8,640              8,640
          % of BHCA and trigger interception                            5                   5                  5                  5
          Traffic at the X3 V/ to LIAS
          (See Note 1 below)                                           18                  18                 18                 18
</TABLE>

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

SAN       DIMENSIONING DRIVER                             JAPAN                       UK
                                                          (PRIMARY NMC LOC'N)         (BACKUP NMC LOC'N)
<S>   <C> <C>                                             <C>                         <C>
      RFT SUB-SYSTEM
          C-Band EIRP towards satellite
          per RFT                                         -                           -
          IF ports                                        -                           -
          Number of RFTs                                  -                           -
          RFT Shellers                                    -                           -
          Delcing Facility                                -                           -
          Blower and heater for Center hub                -                           -
          Additional vent'l for Sheller                   -                           -
          Additional HPA Blower                           -                           -
          HPA Cooling cabinet sheller                     -                           -
          Optical fiber facility                          -                           -
          TTC Site (including monopulse
          tracking)                                       -                           -
          IOT Support Facility (axial ratio
          improvement)                                    -                           -
          Installation Materials                          -                           -
          Remote maintenance system from
          Japan/SAN                                       -                           -
          Portable O&M Terminal/RFT                       -                           -
          Band Pass Filler at LNA input/SAN               -                           -
      SBS SUB-SYSTEM
          Traffic on the A interface (to TNM)             -                           -
          Traffic on the Air interface                    -                           -
          Busy Hour Call Attempts                         -                           -
          Busy Hour Location Updates                      -                           -
          SBS DC UPS                                      -                           -
          Reference Clock & System Timing                 -                           -
          reception and distribution                      -                           -
          subsystem (GPS including antenna
          system)                                         -                           -
          IF distribution sub-system                      -                           -
      TNM SUB-SYSTEM
          Traffic on the A interface (to SBS)             -                           -
          Traffic on the A interface (to MSSC,
          PCM coded)                                      -                           -
          Traffic on the A interface (to MSSC,
          compressed)                                     -                           -
          Semi-permanent traffic                          -                           -
          Busy Hour Call Attempts                         -                           -
      MSSC/VLR SUB-SYSTEM
          Traffic on the A interface (to TNM,
          PCM coded)                                      -                           -
          Traffic on the A interface (to TNM
          compressed)                                     -                           -
          Traffic on the interface to POI
          (including echo cancellation as
          required)                                       -                           -
          Number of echo cancellers provided
          as % of POI trunks                              -                           -
          Number of T1 interfaces as % of
          POI trunks                                      -                           -
          Traffic on the interfaces to other
          SANs                                            -                           -
          Traffic on the interface MSSC/GIWU              -                           -
          Traffic on the interface to Voicemail           -                           -
          Traffic on the interface to the
          voicemail (F/R)                                 -                           -
          Traffic on the interface to
          Recorded Voice Announcements                    -                           -
          Busy Hour Call Attempts.                        -                           -
          Busy Hour Registered Subscribers                -                           -
          Busy Hour Location Updates                      -                           -
          C7 signalling link ports (64k)                  -                           -
          Busy Hour C7 signalling MTP
          transactions                                    -                           -
          Nos of high speed (>9.6 kbit/s)
          channels                                        -                           -
          Traffic on interface to RVA source              -                           -
          Busy Hour Call Attempts to RVA
          source                                          -                           -
          Traffic on interfaces to GIWUs                  -                           -
          Busy Hour Call Attempts to GIWUs                -                           -
          Busy Hours Call Attempts (LIAS
          assumption)                                     -                           -
          % of BHCA and trigger interception              -                           -
          Traffic at the X3 V/ to LIAS
          (See Note 1 below)                              -                           -

22/10/97                          PROPRIETARY & CONFIDENTIAL TO ICO GLOBAL COMMUNICATIONS                        Paul Chambers

</TABLE>

<PAGE>   1007
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
<S>   <C> <C>                                  <C>        <C>      <C>       <C>      <C>       <C>      <C>       <C>      <C>
          Traffic at the X3 V/ to the
          monitoring centres (see Note 2
          below)                               E                    20                 20                 20                20
          MSC DC UPS                                      Yes                Yes                Yes                Yes
      HPN SUB-SYSTEM
          Peak arrival rate of HPN
          escalations per second from
          the MSSC due to failed MT-SMS        megs per              3                  3                  3                 3
                                               sec
          Peak arrival rate of HPN
          escalations per second from the
          MSSC due to failed MT call attempts  megs per              6                  6                  6                 6
                                               sec

          Peak processing load HPN
          messages per second (representing
          a combination of satellite
          transmissions and inter-SAN routing
          of HPN messages)                     megs per              30                 30                 30                30
                                               sec
      PCS SUB-SYSTEM                                      Yes                Yes                Yes                Yes
      SAN MANAGEMENT SUB-SYSTEM
          See Equipment List
      DCN SUBSYSTEM
          Number of 64k ports                  ports                  4                  4                  4                 4
          TTC Interface                                   Yes                                   Yes
      ON-SITE INTERCONNECTION SUBSYSTEM
          Cabling infrastructure                          Yes                Yes                Yes                Yes
          Digital Distribution Frame                      Yes                Yes                Yes                Yes
      INTERCONNECTION FACILITIES
          Interconnection to ICO provided DDF             Yes                Yes                Yes                Yes
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------

AuC/EIR   Dimensioning Driver                  Units      Australia          Brazil             Chile              China

          Number of subscribers/equipment
          stored                               subs       -                  -                  -                  -
          Busy Hour Authentication Vector
          Requests                             BH Auth    -                  -                  -                  -
          DC UPS                                          Yes                Yes                Yes                Yes
          OAM System                                      -                  -                  -                  -
          Number of IMEIs stored               IMEIs      -                  -                  -                  -
          Busy Hour IMEI checking attempts     IMEI       -                  -                  -                  -
                                               checks/hr
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------

HLR       Dimensioning Driver                  Units      Australia          Brazil             Chile              China

          Number of ICO subscribers                       -                  -                  -                  -
          Busy Hour Service Provisioning
          attempts                                        -                  -                  -                  -
          Busy Hour Network and VLR
          registrations                        regs/hr    -                  -                  -                  -
          Busy Hour Call Attempts (MT for
          ICO subscribers)                     BHCA       -                  -                  -                  -
          Integrated STP functionality                    -                  -                  -                  -
          Busy Hour C& Signalling MTP
          transactions
          DC UPS                                          Yes                Yes                Yes                Yes
          OAM System                                      -                  -                  -                  -
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------

VOICE-    Dimensioning Driver                 Units       Australia          Brazil             Chile              China
 MAIL
          Number of subscribers               subs        -                  -                  -                  -
          Traffic on the interface to
          colocated MSSC                      E           -                  -                  -                  -
          Busy Hour Call Attempts             BHCA        -                  -                  -                  -
          Hours of storage (voice & facsimile)hours       -                  -                  -                  -
          Facsimile traffic on the interface
          to the MSSC (F/R)                   E           -                  -                  -                  -

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

SMSC      Dimensioning Driver                 Units       Australia          Brazil             Chile              China

          Messages per busy hour              msgs/hr     -                  -                  -                  -
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
<S>   <C> <C>                                             <C>      <C>       <C>      <C>       <C>      <C>       <C>      <C>

          Traffic at the X3 V/ to the
          monitoring centres (see Note 2
          below)                                                    20                 20                 20                20
          MSC DC UPS                                      Yes                Yes                Yes                Yes
      HPN SUB-SYSTEM
          Peak arrival rate of HPN
          escalations per second from
          the MSSC due to failed MT-SMS                              3                  3                  3                 3

          Peak arrival rate of HPN
          escalations per second from the
          MSSC due to failed MT call attempts                        6                  6                  6                 6

          Peak processing load HPN
          messages per second (representing
          a combination of satellite
          transmissions and inter-SAN routing
          of HPN messages)                                          30                 30                 30                30

      PCS SUB-SYSTEM                                      Yes                Yes                Yes                Yes
      SAN MANAGEMENT SUB-SYSTEM
          See Equipment List
      DCN SUBSYSTEM
          Number of 64k ports                                        8                  8                  8                 8
          TTC Interface                                   Yes                Yes
      ON-SITE INTERCONNECTION SUBSYSTEM
          Cabling infrastructure                          Yes                Yes                Yes                 Yes
          Digital Distribution Frame                      Yes                Yes                Yes                 Yes
      INTERCONNECTION FACILITIES
          Interconnection to ICO provided DDF             Yes                Yes                Yes                 Yes
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------

AuC/EIR   Dimensioning Driver                             Germany            India              Indonesia           Mexico

          Number of subscribers/equipment
          stored                                          -                  -                  -                   -
          Busy Hour Authentication Vector
          Requests                                        -                  -                  -                   -
          DC UPS                                          Yes                Yes                Yes                 Yes
          OAM System                                      -                  -                  -                   -
          Number of IMEIs stored                          -                  -                  -                   -
          Busy Hour IMEI checking attempts
                                                          -                  -                  -                   -
-----------------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------------

HLR       Dimensioning Driver                             Germany            India              Indonesia           Mexico

          Number of ICO subscribers                       -                  -                  -                   -
          Busy Hour Service Provisioning
          attempts                                        -                  -                  -                   -
          Busy Hour Network and VLR
          registrations                                   -                  -                  -                   -
          Busy Hour Call Attempts (MT for
          ICO subscribers)                                -                  -                  -                   -
          Integrated STP functionality                    -                  -                  -                   -
          Busy Hour C& Signalling MTP
          transactions
          DC UPS                                          Yes                Yes                Yes                 Yes
          OAM System                                      -                  -                  -                   -
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------

VOICE-    Dimensioning Driver                             Germany            India              Indonesia           Mexico
 MAIL                                                     Voicemail 1
          Number of subscribers                                       56,000 -                  -                   -
          Traffic on the interface to
          colocated MSSC                                                  15 -                  -                   -
          Busy Hour Call Attempts                                        360 -                  -                   -
          Hours of storage (voice & facsimile)                           500 -                  -                   -
          Facsimile traffic on the interface
          to the MSSC (F/R)                                              1.6 -                  -                   -

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

SMSC      Dimensioning Driver                             Germany            India              Indonesia           Mexico
                                                          SMSC 1
          Messages per busy hour                                      11,000 -                  -                   -
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
<S>   <C> <C>                                             <C>      <C>       <C>      <C>       <C>      <C>       <C>      <C>

          Traffic at the X3 V/ to the
          monitoring centres (see Note 2
          below)                                                    20                 20                 20                20
          MSC DC UPS                                      Yes                Yes                Yes                Yes
      HPN SUB-SYSTEM
          Peak arrival rate of HPN
          escalations per second from
          the MSSC due to failed MT-SMS                              3                  3                  3                 3

          Peak arrival rate of HPN
          escalations per second from the
          MSSC due to failed MT call attempts                        6                  6                  6                 6

          Peak processing load HPN
          messages per second (representing
          a combination of satellite
          transmissions and inter-SAN routing
          of HPN messages)                                          30                 30                 30                30

      PCS SUB-SYSTEM                                      Yes                Yes                Yes                Yes
      SAN MANAGEMENT SUB-SYSTEM
          See Equipment List
      DCN SUBSYSTEM
          Number of 64k ports                                        4                  4                  4                 4
          TTC Interface                                   Yes                                                      Yes
      ON-SITE INTERCONNECTION SUBSYSTEM
          Cabling infrastructure                          Yes                Yes                Yes                Yes
          Digital Distribution Frame                      Yes                Yes                Yes                Yes
      INTERCONNECTION FACILITIES
          Interconnection to ICO provided DDF             Yes                Yes                Yes                Yes*
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------

AuC/EIR   Dimensioning Driver                             South Africa       South Korea        UAE                USA

          Number of subscribers/equipment
          stored                                          -                  -                  -                   -
          Busy Hour Authentication Vector
          Requests                                        -                  -                  -                   -
          DC UPS                                          Yes                Yes                Yes                 Yes
          OAM System                                      -                  -                  -                   -
          Number of IMEIs stored                          -                  -                  -                   -
          Busy Hour IMEI checking attempts
                                                          -                  -                  -                   -
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------

HLR       Dimensioning Driver                             South Africa       South Korea        UAE                USA

          Number of ICO subscribers                       -                  -                  -                   -
          Busy Hour Service Provisioning
          attempts                                        -                  -                  -                   -
          Busy Hour Network and VLR
          registrations                                   -                  -                  -                   -
          Busy Hour Call Attempts (MT for
          ICO subscribers)                                -                  -                  -                   -
          Integrated STP functionality                    -                  -                  -                   -
          Busy Hour C& Signalling MTP
          transactions
          DC UPS                                          Yes                Yes                Yes                 Yes
          OAM System                                      -                  -                  -                   -
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------

VOICE-    Dimensioning Driver                             South Africa       South Korea        UAE                USA
 MAIL
          Number of subscribers                           -                  -                  -                  -
          Traffic on the interface to
          colocated MSSC                                  -                  -                  -                  -
          Busy Hour Call Attempts                         -                  -                  -                  -
          Hours of storage (voice & facsimile)            -                  -                  -                  -
          Facsimile traffic on the interface
          to the MSSC (F/R)                               -                  -                  -                  -

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

SMSC      Dimensioning Driver                             South Africa       South Korea        UAE                USA

          Messages per busy hour                          -                  -                  -                  -
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
<S>   <C> <C>                                             <C>            <C>      <C>

          Traffic at the X3 V/ to the
          monitoring centres (see Note 2
          below)
          MSC DC UPS                                      -                       -
      HPN SUB-SYSTEM
          Peak arrival rate of HPN
          escalations per second from
          the MSSC due to failed MT-SMS                   -                       -

          Peak arrival rate of HPN
          escalations per second from the
          MSSC due to failed MT call attempts             -                       -

          Peak processing load HPN
          messages per second (representing
          a combination of satellite
          transmissions and inter-SAN routing
          routing of HPN messages)                        -                       -

      PCS SUB-SYSTEM
      SAN MANAGEMENT SUB-SYSTEM
          See Equipment List
      DCN SUBSYSTEM
          Number of 64k ports                             -                       -
          TTC Interface                                   -                       -
      ON-SITE INTERCONNECTION SUBSYSTEM
          Cabling infrastructure                          -                       -
          Digital Distribution Frame                      -                       -
      INTERCONNECTION FACILITIES
          Interconnection to ICO provided DDF             -                       -
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
                                                          Japan                   UK
AuC/EIR   Dimensioning Driver                             (Primary NMC Loc'n)     (Backup NMC Loc'n)

          Number of subscribers/equipment
          stored                                                         50,000   -
          Busy Hour Authentication Vector
          Requests                                                        6,000   -
          DC UPS                                                                  -
          OAM System                                                          1   -
          Number of IMEIs stored                                         50,000   -
          Busy Hour IMEI checking attempts                                4,500   -

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

HLR       Dimensioning Driver                             Japan                   UK
                                                          (Primary NMC Loc'n)     (Backup NMC Loc'n)
          Number of ICO subscribers                                      50,000   -
          Busy Hour Service Provisioning                                          -
          attempts                                        Note(1)                 -
          Busy Hour Network and VLR                                               -
          registrations                                                   6,750   -
          Busy Hour Call Attempts (MT for
          ICO subscribers)                                               12,500   -
          Integrated STP functionality                    Yes                     -
          Busy Hour C& Signalling MTP
          transactions                                    Note(1)
          DC UPS                                          -                       -
          OAM System                                                          1   -
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------

VOICE-    Dimensioning Driver                             Japan                   UK
 MAIL                                                     (Primary NMC Loc'n)     (Backup NMC Loc'n)
          Number of subscribers                           -                       -
          Traffic on the interface to
          colocated MSSC                                  -                       -
          Busy Hour Call Attempts                         -                       -
          Hours of storage (voice & facsimile)            -                       -
          Facsimile traffic on the interface
          to the MSSC (F/R)                               -                       -

------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
                                                          Japan                   UK
SMSC      Dimensioning Driver                             (Primary NMC Loc'n)     (Backup NMC Loc'n)

          Messages per busy hour                          -                       -
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>   1008
                                    TABLE 1
<TABLE>
<S>        <C>   <C>                                   <C>      <C>         <C>      <C>     <C>     <C>       <C>     <C>
----------------------------------------------------------------------------------------------------------------------------------
                OAM SYSTEM                                      -           -        -       -             1   -       -
----------------------------------------------------------------------------------------------------------------------------------
IS.41 >
ICO IWF          DIMENSIONING DRIVER                   UNITS    AUSTRALIA   BRAZIL   CHILE   CHINA   GERMANY   INDIA   INDONESIA
                 UNIDIRECTIONAL IS.41 > ICO IWF
                 NUMBER OF SUBSCRIBERS CAPABLE
                   OF ROAMING                          SUBS     -           -        -       -       -         -       -
                 BUSY HOUR NETWORK AND
                   ICO VLR REGISTRATIONS               BH REGS  -           -        -       -       -         -       -
                 BUSY HOUR CALL ATTEMPTS
                   (MT FOR ICO/IS.41 SUBSCRIBERS)      BHCA     -           -        -       -       -         -       -
                 OAM SYSTEM                                     -           -        -       -       -         -       -
----------------------------------------------------------------------------------------------------------------------------------
ICO >
IS.41 IWF        DIMENSIONING DRIVER                   UNITS    AUSTRALIA   BRAZIL   CHILE   CHINA   GERMANY   INDIA   INDONESIA
                 UNIDIRECTIONAL IC0 > IS.41 IWF
                 NUMBER OF SUBSCRIBERS CAPABLE
                   OF ROAMING                          SUBS     -           -        -       -       -         -       -
                 BUSY HOUR NETWORK AND
                   ICO VLR REGISTRATIONS               BH REGS  -           -        -       -       -         -       -
                 BUSY HOUR CALL ATTEMPTS
                   (MT FOR ICO/IS.41 SUBSCRIBERS)      BHCA     -           -        -       -       -         -       -
                 OAM SYSTEM                                     -           -        -       -       -         -       -
----------------------------------------------------------------------------------------------------------------------------------
LIAS
SUB-SYSTEM       DIMENSIONING DRIVER                   UNITS    AUSTRALIA   BRAZIL   CHILE   CHINA   GERMANY   INDIA   INDONESIA
                                                          NO            1        1       1       1         1       1           1
                 INTERCEPT TRAFFIC ON THE X3 I/I
                   TO THE MSSC (SWITCHED CONNECTIONS)
                   (SEE NOTE 2)                           E            20       20      20      20        20      20          20
                 INTERCEPT TRAFFIC ON THE X3 I/I
                   TO THE MONITORING CENTRES
                   (FIXED CONNECTIONS)                    E             0        0       0       0         0       0           0
----------------------------------------------------------------------------------------------------------------------------------
LIMS
SUB-SYSTEM       DIMENSIONING DRIVER                  UNITS     AUSTRALIA   BRAZIL   CHILE   CHINA   GERMANY   INDIA   INDONESIA
                                                         NO     -           -        -       -       -         -       -
----------------------------------------------------------------------------------------------------------------------------------
SRMC             DIMENSIONING DRIVER                  UNITS     AUSTRALIA   BRAZIL   CHILE   CHINA   GERMANY   INDIA   INDONESIA

                 NUMBER OF SATELLITES                 SATS      -           -        -       -       -         -       -
                 NUMBER OF SANS                       SANS      -           -        -       -       -         -       -
                 NUMBER OF SPOT BEAMS PER SATELLITE   BEAMS     -           -        -       -       -         -       -
                 NUMBER OF FILTERS PER SATELLITE      FILTERS   -           -        -       -       -         -       -
                 SATELLITE ORBIT PERIOD               HOURS     -           -        -       -       -         -       -
                 PLANNING GROUND CALL SIZE            DEGREE    -           -        -       -       -         -       -
                 PAYLOAD COMMAND TABLE SIZE                     -           -        -       -       -         -       -
                 HPN TABLES                                     -           -        -       -       -         -       -
                 NUMBER OF FREQUENCY CO-ORDINATION
                   REGIONS                                      -           -        -       -       -         -       -
----------------------------------------------------------------------------------------------------------------------------------
                 DIMENSIONING DRIVER                  UNITS     AUSTRALIA   BRAZIL   CHILE   CHINA   GERMANY   INDIA   INDONESIA
NMC
           SOFTWARE FUNCTIONAL BLOCKS
                 SEE EQUIPMENT LIST                             -           -        -       -       -         -       -
           DCN SUBSYSTEM
                 AVERAGE PEAK LOCAL NETWORK OA&M
                   TRAFFIC IN KBITS/S                 KBITS/S   -           -        -       -       -         -       -
                 AVERAGE PEAK TRAFFIC TO NMC          KBITS/S   -           -        -       -       -         -       -
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<S>        <C>   <C>                                  <C>       <C>      <C>      <C>     <C>   <C>          <C>         <C>
-----------------------------------------------------------------------------------------------------------------------------------
                 OAM SYSTEM
-----------------------------------------------------------------------------------------------------------------------------------
                                                                                                             JAPAN       UK
                                                                         SOUTH    SOUTH                      (PRIMARY    (BACKUP
IS.41 >                                               UNITS     MEXICO   AFRICA   KOREA   UAE   USA          NMC LOC'N)  NMC LOC'N)
ICO IWF          DIMENSIONING DRIVER
                 UNIDIRECTIONAL IS.41 > ICO IWF                 -        -        -       -     IS.41 IWF 1    -           -
                 NUMBER OF SUBSCRIBERS CAPABLE
                   OF ROAMING                         SUBS      -        -        -       -          50,000    -           -
                 BUSY HOUR NETWORK AND
                   ICO VLR REGISTRATIONS              BH REGS   -        -        -       -           1,875    -           -
                 BUSY HOUR CALL ATTEMPTS
                   (MT FOR ICO/IS.41 SUBSCRIBERS)     BHCA      -        -        -       -           2,050    -           -
                 OAM SYSTEM                                     -        -        -       -               1    -           -
-----------------------------------------------------------------------------------------------------------------------------------
                                                                                                             JAPAN       UK
                                                                         SOUTH    SOUTH                      (PRIMARY    (BACKUP
ICO >            DIMENSIONING DRIVER                  UNITS     MEXICO   AFRICA   KOREA   UAE   USA          NMC LOC'N)  NMC LOC'N)
IS.41 IWF        UNIDIRECTIONAL IC0 > IS.41 IWF
                 NUMBER OF SUBSCRIBERS CAPABLE
                   OF ROAMING                         SUBS      -        -        -       -          50,000    -           -
                 BUSY HOUR NETWORK AND
                   ICO VLR REGISTRATIONS              BH REGS   -        -        -       -           1,875    -           -
                 BUSY HOUR CALL ATTEMPTS
                   (MT FOR ICO/IS.41 SUBSCRIBERS)     BHCA      -        -        -       -           2,060    -           -
                 OAM SYSTEM                                     -        -        -       -               1    -           -
-----------------------------------------------------------------------------------------------------------------------------------
                                                                                                             JAPAN       UK
LIAS                                                                     SOUTH    SOUTH                      (PRIMARY    (BACKUP
SUB-SYSTEM       DIMENSIONING DRIVER                  UNITS     MEXICO   AFRICA   KOREA   UAE   USA          NMC LOC'N)  NMC LOC'N)
                                                         NO          1        1       1     1     1          -           -
                 INTERCEPT TRAFFIC ON THE X3 I/I
                   TO THE MSSC (SWITCHED CONNECTIONS)
                   (SEE NOTE 2)                           E         20       20      20    20    20          -           -
                 INTERCEPT TRAFFIC ON THE X3 I/I
                   TO THE MONITORING CENTRES
                   (FIXED CONNECTIONS)                    E          0        0       0     0     0          -           -
-----------------------------------------------------------------------------------------------------------------------------------
                                                                                                             JAPAN       UK
LIMS                                                                     SOUTH    SOUTH                      (PRIMARY    (BACKUP
SUB-SYSTEM       DIMENSIONING DRIVER                  UNITS     MEXICO   AFRICA   KOREA   UAE   USA          NMC LOC'N)  NMC LOC'N)
                                                         NO     -        -        -       -     -            -                   1
-----------------------------------------------------------------------------------------------------------------------------------
SRMC             DIMENSIONING DRIVER                  UNITS

                 NUMBER OF SATELLITES                 SATS      -        -        -       -     -                    12         12
                 NUMBER OF SANS                       SANS      -        -        -       -     -                    12         12
                 NUMBER OF SPOT BEAMS PER SATELLITE   BEAMS     -        -        -       -     -                   163        163
                 NUMBER OF FILTERS PER SATELLITE      FILTERS   -        -        -       -     -                   490        490
                 SATELLITE ORBIT PERIOD               HOURS     -        -        -       -     -                     6          6
                 PLANNING GROUND CALL SIZE            DEGREE    -        -        -       -     -                     1          1
                 PAYLOAD COMMAND TABLE SIZE                     -        -        -       -     -                32,000     32,000
                 HPN TABLES                                     -        -        -       -     -                     4          4
                 NUMBER OF FREQUENCY CO-ORDINATION
                   REGIONS                                      -        -        -       -     -                     4          4
-----------------------------------------------------------------------------------------------------------------------------------
                                                                                                             JAPAN       UK
                                                                         SOUTH    SOUTH                      (PRIMARY    (BACKUP
                 DIMENSIONING DRIVER                  UNITS     MEXICO   AFRICA   KOREA   UAE   USA          NMC LOC'N)  NMC LOC'N)
                                                                                                             NMC         NMC
                                                                                                             (PRIMARY)   (BACKUP)
NMC
           SOFTWARE FUNCTIONAL BLOCKS
                 SEE EQUIPMENT LIST                             -        -        -       -     -                     1          1
           DCN SUBSYSTEM
                 AVERAGE PEAK LOCAL NETWORK OA&M
                   TRAFFIC IN KBIT/S                  KBITS/S   -        -        -       -     -                 1,000      1,000
                 AVERAGE PEAK TRAFFIC TO NMC          KBITS/S   -        -        -       -     -            ?            ?
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

TBLE 1V2A XLS/EQUIPMENT LIST
PROPRIETARY & CONFIDENTIAL TO ICO GLOBAL COMMUNICATIONS
PAUL CHAMBERS
22/10/97
<PAGE>   1009
                                    TABLE 1
<TABLE>
<S>              <C>                                  <C>       <C>         <C>      <C>      <C>     <C>        <C>     <C>
SBS TEST FACILITY                                               AUSTRALIA   BRAZIL   CHILE    CHINA    GERMANY   INDIA   INDONESIA
                 SUPPORT FACILITY                               -           -        -        -       -              1   -
                 (NOTE: TO BE LOCATED AT HNS PREMISES)
----------------------------------------------------------------------------------------------------------------------------------
SYSTEM INTEGRATION SUPPORT FACILITY                             AUSTRALIA   BRAZIL   CHILE    CHINA    GERMANY   INDIA   INDONESIA
                 SUPPORT FACILITY                                       1   -        -        -        -             -   -
                 (NOTE: TO BE LOCATED AT NEC/A &
                   HNS PREMISES)
----------------------------------------------------------------------------------------------------------------------------------
SPARES                                                          1 SET       1 SET    1 SET    1 SET    1 SET     1 SET   1 SET
----------------------------------------------------------------------------------------------------------------------------------
SPECIALIST TEST EQUIPMENT                             QUANTITY
                 UT LOAD SIMULATOR (III.7 PH 1/2
                   & PH2-3 1/2)                             2          1         1       1        1         1        1           1
                 SATELLITE CHANNEL SIMULATOR
                   (III.7 PH2-3/2)                                     1         1       1        1         1        1           1
                 GSM TESTER (III.7 PH 1/3)                  2   -           -        -        -         -        -        -
                 SDL FOR AIR INTERFACE
                   VALIDATION (III.2.4.1)                   1   -           -        -        -         -        -        -
                 AIR INTERFACE CONFORMANCE
                   TESTER FOR UT (III.2.4.2)                2
                 PCS CHECKER                                           1         1       1        1         1        1           1
----------------------------------------------------------------------------------------------------------------------------------
OPTIONAL ITEMS
----------------------------------------------------------------------------------------------------------------------------------
PDC > ICO IWF    DIMENSIONING DRIVER                   UNITS    AUSTRALIA   BRAZIL   CHILE    CHINA    GERMANY   INDIA   INDONESIA
                 UNIDIRECTIONAL PDC > ICO ROAMING
                 NUMBER OF SUBSCRIBERS CAPABLE
                   OF ROAMING                          SUBS     -           -        -        -        -         -       -
                 BUSY HOUR NETWORK AND
                   ICO VLR REGISTRATIONS               BH REGS  -           -        -        -        -         -       -
                 BUSY HOUR CALL ATTEMPTS
                   (MT FOR ICO/PDC SUBSCRIBERS)        BHCA     -           -        -        -        -         -       -
                 TRAFFIC THROUGH IMSC.                 E        -           -        -        -        -         -       -
                 BUSY HOUR CALL ATTEMPTS
                   THROUGH IMSC                        BHCA     -           -        -        -        -         -       -
                 OAM SYSTEM                                     -           -        -        -        -         -       -
----------------------------------------------------------------------------------------------------------------------------------
ICO > PDC IWF    DIMENSIONING DRIVER                   UNITS    AUSTRALIA   BRAZIL   CHILE    CHINA    GERMANY   INDIA   INDONESIA
                 UNIDIRECTIONAL ICO > PDC ROAMING
                 NUMBER OF SUBSCRIBERS CAPABLE
                   OF ROAMING                          SUBS     -           -        -        -        -         -       -
                 BUSY HOUR NETWORK AND
                   ICO VLR REGISTRATIONS               BH REGS  -           -        -        -        -         -       -
                 BUSY HOUR CALL ATTEMPTS
                   (MT FOR ICO/PDC SUBSCRIBERS)        BHCA     -           -        -        -        -         -       -
                 TRAFFIC THROUGH IMSC.                 E        -           -        -        -        -         -       -
                 BUSY HOUR CALL ATTEMPTS
                   THROUGH IMSC                        BHCA     -           -        -        -        -         -       -
                 OAM SYSTEM                                     -           -        -        -        -         -       -
----------------------------------------------------------------------------------------------------------------------------------
GSM > ICO IWF    DIMENSIONING DRIVER                   UNITS    AUSTRALIA   BRAZIL   CHILE    CHINA    GERMANY   INDIA   INDONESIA
                 UNIDIRECTIONAL GSM > ICO IWF
                 NUMBER OF SUBSCRIBERS CAPABLE
                   OF ROAMING                          SUBS     -           -        -        -        -         -       -
                 BUSY HOUR NETWORK AND
                   ICO VLR REGISTRATIONS               BH REGS  -           -        -        -        -         -       -
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<S>              <C>                                  <C>       <C>      <C>      <C>     <C>    <C>         <C>         <C>
                                                                                                             JAPAN       UK
                                                                         SOUTH    SOUTH                      (PRIMARY    (BACKUP
SBS TEST FACILITY                                               MEXICO   AFRICA   KOREA   UAE    USA         NMC LOC'N)  NMC LOC'N)
                 SUPPORT FACILITY                               -        -        -       -      -           -           -
                 (NOTE: TO BE LOCATED AT HNS PREMISES)
----------------------------------------------------------------------------------------------------------------------------------
                                                                                                             JAPAN       UK
                                                                         SOUTH    SOUTH                      (PRIMARY    (BACKUP
SYSTEM INTEGRATION SUPPORT FACILITY                             MEXICO   AFRICA   KOREA   UAE    USA         NMC LOC'N)  NMC LOC'N)
                 SUPPORT FACILITY                               -        -        -       -      -           -           -
                 (NOTE: TO BE LOCATED AT NEC/A &
                   HNS PREMISES)                                -        -        -       -      -           -           -
----------------------------------------------------------------------------------------------------------------------------------
SPARES                                                          1 SET    1 SET    1 SET   1 SET  1 SET       1 SET       1 SET
----------------------------------------------------------------------------------------------------------------------------------
SPECIALIST TEST EQUIPMENT                             QUANTITY
                 UT LEAD SIMULATOR (III.7 PH 1/2
                   & PH2-3 1/2)                                      1        1       1     1      1         -           -
                 SATELLITE CHANNEL SIMULATOR
                   (III.7 PH2-3/2)                                   1        1       1     1      1         -           -
                 GSM TESTER (III.7 PH 1/3)                      -        -        -       -       -          -           -
                 SDL FOR AIR INTERFACE
                   VALIDATION (III.2.4.1)                       -        -        -       -       -          -           -
                 AIR INTERFACE CONFORMANCE
                   TESTER FOR UT (III.2.4.2)
                 PCS CHECKER                                         1         1      1     1      1         -           -
----------------------------------------------------------------------------------------------------------------------------------
OPTIONAL ITEMS
----------------------------------------------------------------------------------------------------------------------------------
                                                                                                             JAPAN       UK
                                                                         SOUTH    SOUTH                      (PRIMARY    (BACKUP
PDC > ICO IWF    DIMENSIONING DRIVER                   UNITS    MEXICO   AFRICA   KOREA   UAE    USA         NMC LOC'N)  NMC LOC'N)
                 UNIDIRECTIONAL PDC > ICO ROAMING                                                            PDC IWF 1
                 NUMBER OF SUBSCRIBERS CAPABLE
                   OF ROAMING                          SUBS     -           -        -        -        -        50,000   -
                 BUSY HOUR NETWORK AND
                   ICO VLR REGISTRATIONS               BH REGS  -           -        -        -        -         1,900   -
                 BUSY HOUR CALL ATTEMPTS
                   (MT FOR ICO/PDC SUBSCRIBERS)        BHCA     -           -        -        -        -           750   -
                 TRAFFIC THROUGH IMSC.                 E        -           -        -        -        -            77   -
                 BUSY HOUR CALL ATTEMPTS
                   THROUGH IMSC                        BHCA     -           -        -        -        -         1,900   -
                 OAM SYSTEM                                     -           -        -        -        -             1   -
----------------------------------------------------------------------------------------------------------------------------------
                                                                                                             JAPAN       UK
                                                                         SOUTH    SOUTH                      (PRIMARY    (BACKUP
ICO > PDC IWF    DIMENSIONING DRIVER                   UNITS    MEXICO   AFRICA   KOREA   UAE    USA         NMC LOC'N)  NMC LOC'N)
                 UNIDIRECTIONAL ICO > PDC ROAMING
                 NUMBER OF SUBSCRIBERS CAPABLE
                   OF ROAMING                          SUBS     -           -        -        -        -        50,000   -
                 BUSY HOUR NETWORK AND
                   ICO VLR REGISTRATIONS               BH REGS  -           -        -        -        -         1,900   -
                 BUSY HOUR CALL ATTEMPTS
                   (MT FOR ICO/PDC SUBSCRIBERS)        BHCA     -           -        -        -        -           750   -
                 TRAFFIC THROUGH IMSC.                 E        -           -        -        -        -            77   -
                 BUSY HOUR CALL ATTEMPTS
                   THROUGH IMSC                        BHCA     -           -        -        -        -         1,900   -
                 OAM SYSTEM                                     -           -        -        -        -             1   -
----------------------------------------------------------------------------------------------------------------------------------
                                                                                                             JAPAN       UK
                                                                         SOUTH    SOUTH                      (PRIMARY    (BACKUP
GSM > ICO IWF    DIMENSIONING DRIVER                   UNITS    MEXICO   AFRICA   KOREA   UAE    USA         NMC LOC'N)  NMC LOC'N)
                 UNIDIRECTIONAL GSM > ICO IWF                                                    GSM IWF 1
                 NUMBER OF SUBSCRIBERS CAPABLE
                   OF ROAMING                          SUBS     -           -        -        -     50,000   -           -
                 BUSY HOUR NETWORK AND
                   ICO VLR REGISTRATIONS               BH REGS  -           -        -        -      1,875   -           -
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

TBLE 1V2A XLS/EQUIPMENT LIST
PROPRIETARY & CONFIDENTIAL TO ICO GLOBAL COMMUNICATIONS
PAUL CHAMBERS
22/10/97
<PAGE>   1010
                                    TABLE 1
<TABLE>
<S>        <C>   <C>                                 <C>      <C>         <C>      <C>     <C>     <C>       <C>     <C>     <C>
----------------------------------------------------------------------------------------------------------------------------------
                 BUSY HOUR CALL ATTEMPTS
                 (MT FOR ICO/IS.41 SUBSCRIBERS)      BHCA     -           -        -       -       -         -       -       -
                 OAM SYSTEM                                   -           -        -       -       -         -       -       -
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<S>        <C>   <C>                                 <C>      <C>         <C>      <C>     <C>     <C>
------------------------------------------------------------------------------------------------------
                 BUSY HOUR CALL ATTEMPTS
                 (MT FOR ICO/IS.41 SUBSCRIBERS)      -         -           -        2,060  -       -
                 OAM SYSTEM                          -         -           -            1  -       -
------------------------------------------------------------------------------------------------------

TBLE 1V2A. XLS/EQUIPMENT LIST   PROPRIETARY & CONFIDENTIAL TO ICO GLOBAL COMMUNICATIONS   PAUL CHAMBERS
22/10/97
</TABLE>
<PAGE>   1011
RFT EQUIPMENT LIST

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------------
 Item No.   Description                                                         SAN           SAN             SAN
                                                  SAN            SAN            For           For          For South        SAN
                                                For ICO-       For USA       Australia      Germany         Africa      For India
                                                  NET          (Type 2)       (Type 1)      (Type 1)       (Type 1)      (Type 2)
                                                ----------------------------------------------------------------------------------
                                                  Q'ty           Q'ty          Q'ty           Q'ty           Q'ty          Q'ty
----------------------------------------------------------------------------------------------------------------------------------
<S>        <C>                                 <C>            <C>           <C>            <C>            <C>          <C>
            HARDWARE
 1.         7.6m C-band Antenna Subsystem
 1.1        7.6m Antenna Structure                                   5               5            5                5            5
 1.2        7.6m Reflector Panel                                     5               5            5                5            5
 1.3        Dual C.P. Feed (for Monopulse                            5               5            5                5            5
            Track)
 1.4        ACU and Tracking Receiver for
            Monopulse Track
 1.4.1      Tracking Down Converter                                  5               5            5                5            5
 1.4.2      Tracking Demodulator                                     5               5            5                5            5
 1.4.3      Antenna Control Equipment                                5               5            5                5            5
 1.5        Dual C.P. Feed (for Step Track)
 1.6        ACU and Beacon Receiver for Step
            Track
 1.6.1      Beacon Down Converter
 1.6.2      Beacon Receiver
 1.6.3      Antenna Control Equipment
 1.7        Blower and Heater Unit                                   5                            5                5
 1.8        A/C in Centre Hub(non-redundant)                                                                                    2
 1.9        Deicing Equipment                                        5                            5
 1.10       DCPA, DC Motor, Angle Det. and
            Dehydrator
 1.10.1     DCPA                                                     5               5            5                5            5
 1.10.2     Transformer for DCPA                                                     5            5                5            5
 1.10.3     DC Motor                                                20              20           20               20           20
 1.10.4     Angle Detector                                          10              10           10               10           10
 1.10.5     Dehydrator                                               5               5            5                5            5

 2.         c-band Low Noise Amplifier
            Subsystem
 2.1        C-Band FET LNA Unit                                     15              15           15               15           15
 2.2        RF Plate Assembly for 2+1 config.                        5               5            5                5            5
 2.3        LNA Power Supply                                         5               5            5                5            5
 2.4        Test Panel                                               5               5            5                5            5
 2.5        40 dB Coupler (LNA Input)                                5               5            5                5            5
 2.6        Coupler for tracking                                    10              10           10               10           10

 3.         C-band High Power Amplifier
            Subsystem
 3.1        3kW TWT HPA Cabinet/Linearizer                          15              15           15               15           15
 3.2        WG ASSY
 3.2.1      Isolator                                                10              10           10               10           10
 3.2.2      WG Directional Coupler                                  15              15           15               15           15
 3.2.3      WG SWO                                                  10              10           10               10           10
 3.2.4      High Power Dummy Load                                    5               5            5                5            5
 3.2.5      Low Power Dummy Load                                    15              15           15               15           15
 3.3        TX/RX Path Selector                                      5               5            5                5            5
 3.4        Band Pass Filter                                        10              10           10               10           10

 4.         C-band Up/Down Converter
            Subsystem
 4.1        C-band Up Converter                                     15              15           15               15           15
 4.2        Pilot Generator                                         15              15           15               15           15
</TABLE>

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------------
 Item No.   Description                                                                                      SAN
                                                    SAN            SAN            SAN           SAN          For            SAN
                                                  For Chile     For Brazil     For Mexico     For UAE     Indonesia      For China
                                                  (Type 2)       (Type 2)       (Type 2)      (Type 2)    (Type 2)       (Type 2)
                                                  --------------------------------------------------------------------------------
                                                    Q'ty           Q'ty           Q'ty          Q'ty        Q'ty           Q'ty
----------------------------------------------------------------------------------------------------------------------------------
<S>        <C>                                   <C>           <C>            <C>            <C>         <C>            <C>
            HARDWARE
 1.         7.6m C-band Antenna Subsystem
 1.1        7.6m Antenna Structure                        5              5              5            5            5              5
 1.2        7.6m Reflector Panel                          5              5              5            5            5              5
 1.3        Dual C.P. Feed (for Monopulse                 5              5                           5            5
            Track)
 1.4        ACU and Tracking Receiver for
            Monopulse Track
 1.4.1      Tracking Down Converter                       5              5                           5            5
 1.4.2      Tracking Demodulator                          5              5                           5            5
 1.4.3      Antenna Control Equipment                     5              5                           5            5
 1.5        Dual C.P. Feed (for Step Track)                                             5                                        5
 1.6        ACU and Beacon Receiver for Step
            Track
 1.6.1      Beacon Down converter                                                       5                                        5
 1.6.2      Beacon Receiver                                                             5                                        5
 1.6.3      Antenna Control Equipment                                                   5                                        5
 1.7        Blower and Heater Unit                        5                                                                      5
 1.8        A/C in Centre Hub(non-redundant)
 1.9        Deicing Equipment
 1.10       DCPA, DC Motor, Angle Det. and
            Dehydrator
 1.10.1     DCPA                                          5              5              5            5            5              5
 1.10.2     Transformer for DCPA                          5                                          5            5              5
 1.10.3     DC Motor                                     20             20             20           20           20             20
 1.10.4     Angle Detector                               10             10             10           10           10             10
 1.10.5     Dehydrator                                    5              5              5            5            5              5
 2.         c-band Low Noise Amplifier
            Subsystem
 2.1        C-Band FET LNA Unit                          15             15             15           15           15             15
 2.2        RF Plate Assembly for 2+1 config.             5              5              5            5            5              5
 2.3        LNA Power Supply                              5              5              5            5            5              5
 2.4        Test Panel                                    5              5              5            5            5              5
 2.5        40 dB Coupler (LNA Input)                     5              5              5            5            5              5
 2.6        Coupler for tracking                         10             10             10           10           10             10
 3.         C-band High Power Amplifier
            Subsystem
 3.1        3kW TWT HPA Cabinet/Linearizer               15             15             15           15           15             15
 3.2        WG ASSY
 3.2.1      Isolator                                     10             10             10           10           10             10
 3.2.2      WG Directional Coupler                       15             15             15           15           15             15
 3.2.3      WG SWO                                       10             10             10           10           10             10
 3.2.4      High Power Dummy Load                         5              5              5            5            5              5
 3.2.5      Low Power Dummy Load                         15             15             15           15           15             15
 3.3        TX/RX Path Selector                           5              5              5            5            5              5
 3.4        Band Pass Filter                             10             10             10           10           10             10

 4.         C-band Up/Down Converter
            Subsystem
 4.1        C-band Up Converter                          15             15             15           15           15             15
 4.2        Pilot Generator                              15             15             15           15           15             15

</TABLE>

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------------
 Item No.   Description                                                              SAN
                                                                                  For Korea        NMC            NMC
                                                                                  (Type 1)       Primary        Back-up      TOTAL
                                                                                  ------------------------------------------------
                                                                                    Q'ty          Q'ty           Q'ty        Q'ty
----------------------------------------------------------------------------------------------------------------------------------
<S>        <C>                                                                   <C>            <C>            <C>          <C>

            HARDWARE
 1.         7.6m C-band Antenna Subsystem
 1.1        7.6m Antenna Structure                                                        5                                     60
 1.2        7.6m Reflector Panel                                                          5                                     60
 1.3        Dual C.P. Feed (for Monopulse                                                                                       45
            Track)
 1.4        ACU and Tracking Receiver for
            Monopulse Track
 1.4.1      Tracking Down Converter                                                                                             45
 1.4.2      Tracking Demodulator                                                                                                45
 1.4.3      Antenna Control Equipment                                                                                           45
 1.5        Dual C.P. Feed (for Step Track)                                               5                                     15
 1.6        ACU and Beacon Receiver for Step
            Track
 1.6.1      Beacon Down Converter                                                         5                                     15
 1.6.2      Beacon Receiver                                                               5                                     15
 1.6.3      Antenna Control Equipment                                                     5                                     15
 1.7        Blower and Heater Unit                                                        5                                     30
 1.8        A/C in Centre Hub(non-redundant)                                                                                     2
 1.9        Deicing Equipment                                                                                                   10
 1.10       DCPA, DC Motor, Angle Det. and
            Dehydrator
 1.10.1     DCPA                                                                          5                                     60
 1.10.2     Transformer for DCPA                                                          5                                     45
 1.10.3     DC Motor                                                                     20                                    240
 1.10.4     Angle Detector                                                               10                                    120
 1.10.5     Dehydrator                                                                    5                                     60
 2.         c-band Low Noise Amplifier
            Subsystem
 2.1        C-Band FET LNA Unit                                                          15                                    180
 2.2        RF Plate Assembly for 2+1 config.                                             5                                     60
 2.3        LNA Power Supply                                                              5                                     60
 2.4        Test Panel                                                                    5                                     60
 2.5        40 dB Coupler (LNA Input)                                                     5                                     60
 2.6        Coupler for tracking                                                         10                                    120
 3.         C-band High Power Amplifier
            Subsystem
 3.1        3kW TWT HPA Cabinet/Linearizer                                               15                                    180
 3.2        WG ASSY
 3.2.1      Isolator                                                                     10                                    120
 3.2.2      WG Directional Coupler                                                       15                                    180
 3.2.3      WG SWO                                                                       10                                    120
 3.2.4      High Power Dummy Load                                                         5                                     60
 3.2.5      Low Power Dummy Load                                                         15                                    180
 3.3        TX/RX Path Selector                                                           5                                     60
 3.4        Band Pass Filter                                                             10                                    120
 4.         C-band Up/Down Converter
            Subsystem
 4.1        C-band Up Converter                                                          15                                    180
 4.2        Pilot Generator                                                              15                                    180

</TABLE>
<PAGE>   1012
RFT EQUIPMENT LIST

<TABLE>
<CAPTION>

                               SAN         SAN         SAN             SAN          SAN          SAN        SAN           SAN
Item No.   Description         For       For USA   For Australia    For Germany   For South   For India   For Chile    For Brazil
                             ICO-NET     (Type 2)    (Type 1)        (Type 1)      Africa      (Type 2)    (Type 2)     (Type 2)
                                                                                   (Type 1)
                               Q'ty         Q'ty        Q'ty            Q'ty         Q'ty         Q'ty        Q'ty         Q'ty
<S>        <C>                 <C>          <C>         <C>             <C>          <C>          <C>         <C>          <C>

4.3        C-band Down
            Converter                        15          15              15           15           15          15          15
4.4        AFC equipment                     15          15              15           15           15          15          15
4.5        AFC D/C                           15          15              15           15           15          15          15

4.6        EIRP C&M
4.6.1      Selective Power
            Meter 60001                       5           5               5            5            5           5           5
4.6.2      6-way Switch
            Model 61001                       5           5               5            5            5           5           5
4.6.3      Transmit Level
            Control Unit                     15          15              15           15           15          15          15
4.6.4      PC                                 5           5               5            5            5           5           5
4.7        LINE AMP
            (C-BAND RX)
            (2+1 CONFIG)                      5           5               5            5            5           5           5
4.8        Others
4.8.1      7GHz SWO                           5           5               5            5            5           5           5
4.8.2      1GHz SWO                          20          20              20           20           20          20          20
4.8.3      Test Panel                         5           5               5            5            5           5           5
4.8.4      1GHz D.COUP                       20          20              20           20           20          20          20
4.8.5      IF PATCH                          30          30              30           30           30          30          30
4.8.6      RF PATCH                          30          30              30           30           30          30          30
4.9        Traffic Carrier
            Termination
4.9.1      5GHz SWO                           5           5               5            5            5           5          15
4.10       TT&C Carrier
            EIRP Monitoring
4.10.1     C-band WG Coupler
            for SPM
            (for TTC only)                    5           5               5            5             5          5
4.11       S-band BCCH
            Carrier Monitoring
4.11.1     1 GHz D. Coupler                   5           5               5            5             5          5           5

4.12       IOT Signal
            Monitoring
4.12.1     5GHz RF SWO                                                                               2
4.12.2     5 GHz WG Coupler                                                                          4
4.12.3     7 GHz WG Coupler                                                                          2
4.12.4     7 GHz RF SWO                                                                              4
            for Hub SW
4.12.5     2 GHz RF SWO
            for Hub SW                                                                               2
4.12.6     7 GHz RF SWO                                                                              6
4.12.7     S-band Coupler
            for TX                                                                                   2
4.12.8     S-band RF SWO                                                                             4
4.12.9     1 GHz Patch                                                                               8
4.13       Signal Generator
            for S-band                       5             5              5            5             5          5           5
4.14       19 inch Rack
            (Up Converter rack)              5             5              5            5             5          5           5
4.15       19 inch Rack
            (Down Converter                 10            10             10           10            10         10          10
             rack)

4.16       19 inch Rack in
            Hub Building                     1             1              1            1             1          1           1
4.17       19 inch Rack
            (Misc. rack)                    10            10             10           10            10         10          10
4.18       C-band RF
            Divider (HYB)                   10            10             10           10            10         10          10
4.19       1GHz HYB (1:2)                   10            10             10           10            10         10          10

5.         TTC UP/DOWN
            CONVERTER
           Subsystem
5.1        TTC Up Converter                 10            10             10           10            10         10
5.2        TTC Down Converter               10            10             10           10            10         10
5.3        Crystal Oscillator
            for TT&C Converters             10            10             10           10            10         10

5.4        Others
5.4.1      RF DIV (HYB)                     15            15             15           15            15         15
5.4.2      70 MHz DIV (HYB)                  5             5              5            5             5          5
5.4.3      C-band RF SWO                     5             5              5            5             5          5
5.4.4      5GHz SWO                         20            20             20           20            20         20
5.4.5      IF SWO                            5             5              5            5             5          5

</TABLE>

<TABLE>
<CAPTION>

                                           SAN         SAN         SAN          SAN          SAN        NMC       NMC      TOTAL
Item No.   Description                  For Mexico   For UAE   For Indonesia  For China   For Korea   Primary    Back-up
                                         (Type 2)    (Type 2)    (Type 2)      (Type 2)    (Type 1)

                                           Q'ty        Q'ty        Q'ty         Q'ty         Q'ty        Q'ty      Q'ty     Q'ty
<S>        <C>                             <C>         <C>         <C>          <C>          <C>         <C>       <C>      <C>

4.3        C-band Down
            Converter                       15          15          15           15           15                            180
4.4        AFC equipment                    15          15          15           15           15                            180
4.5        AFC D/C                          15          15          15           15           15                            180

4.6        EIRP C&M
4.6.1      Selective Power
            Meter 60001                      5           5           5            5            5                             60
4.6.2      6-way Switch
            Model 61001                      5           5           5            5            5                             60
4.6.3      Transmit Level
            Control Unit                    15          15          15           15           15                            180
4.6.4      PC                                5           5           5            5            5                             60
4.7        LINE AMP
            (C-BAND RX)
            (2+1 CONFIG)                     5           5           5            5            5                             60
4.8        Others
4.8.1      7GHz SWO                          5           5           5            5            5                             60
4.8.2      1GHz SWO                         20          20          20           20           20                            240
4.8.3      Test Panel                        5           5           5            5            5                             60
4.8.4      1GHz D.COUP                      20          20          20           20           20                            240
4.8.5      IF PATCH                         30          30          30           30           30                            360
4.8.6      RF PATCH                         30          30          30           30           30                            360
4.9        Traffic Carrier
            Termination
4.9.1      5GHz SWO                         15          15          15           15           15                            120
4.10       TT&C Carrier
            EIRP Monitoring
4.10.1     C-band WG Coupler
            for SPM
            (for TTC only)                                                                                                   30
4.11       S-band BCCH
            Carrier Monitoring
4.11.1     1 GHz D. Coupler                 5            5           5            5            5                             60

4.12       IOT Signal
            Monitoring
4.12.1     5GHz RF SWO                                                                                                        2
4.12.2     5 GHz WG Coupler                                                                                                   4
4.12.3     7 GHz WG Coupler                                                                                                   2
4.12.4     7 GHz RF SWO                                                                                                       4
            for Hub SW
4.12.5     2 GHz RF SWO                                                                                                       4
            for Hub SW                                                                                                        2
4.12.6     7 GHz RF SWO                                                                                                       6
4.12.7     S-band Coupler
            for TX                                                                                                            2
4.12.8     S-band RF SWO                                                                                                      4
4.12.9     1 GHz Patch                                                                                                        8
4.13       Signal Generator
            for S-band                       5             5          5            5            5                            60
4.14       19 inch Rack
            (Up Converter rack)              5             5          5            5            5                            60
4.15       19 inch Rack
            (Down Converter                 10            10         10           10           10                           120
             rack)

4.16       19 inch Rack in
            Hub Building                     1             1          1            1            1                            12
4.17       19 inch Rack
            (Misc. rack)                    10            10         10           10           10                           120
4.18       C-band RF
            Divider (HYB)                   10            10         10           10           10                           120
4.19       1GHz HYB (1:2)                   10            10         10           10           10                           120
5.         TTC UP/DOWN
            CONVERTER
           Subsystem
5.1        TTC Up Converter                                                                                                  60
5.2        TTC Down Converter                                                                                                60
5.3        Crystal Oscillator
            for TT&C Converters                                                                                              60

5.4        Others
5.4.1      RF DIV (HYB)                                                                                                      90
5.4.2      70 MHz DIV (HYB)                                                                                                  30
5.4.3      C-band RF SWO                                                                                                     30
5.4.4      5GHz SWO                                                                                                         120
5.4.5      IF SWO                                                                                                            30

</TABLE>
<PAGE>   1013
RFT EQUIPMENT LIST
<TABLE>
<CAPTION>

                               SAN         SAN         SAN            SAN            SAN          SAN        SAN           SAN
Item No.   Description         For       For USA   For Australia   For Germany    For South   For India   For Chile    For Brazil
                             ICO-NET     (Type 2)    (Type 1)        (Type 1)      Africa      (Type 2)    (Type 2)     (Type 2)
                                                                                   (Type 1)
                               Q'ty         Q'ty        Q'ty            Q'ty         Q'ty         Q'ty        Q'ty         Q'ty
<S>        <C>                 <C>          <C>         <C>             <C>          <C>          <C>         <C>          <C>

5.4.6      IF PATCH                          10          10              10           10           10          10
5.4.7      RF PATCH                          15          15              15           15           15          15
5.4.8      19 inch Rack
            (TTC Converter
            rack)                             5           5               5            5            5           5
6.         S-band Subsystem
6.1        Antenna                            5           5               5            5            5           5           5
6.2        FET LNA                            5           5               5            5            5           5           5
6.3        20W SSPA                           5           5               5            5            5           5           5
6.4        Up Converter                       5           5               5            5            5           5           5
6.5        Down Converter                     5           5               5            5            5           5           5
6.6        Others
6.6.1      2G PATCH                          10          10              10           10           10          10          10
6.6.2      30 dB Coupler
            (LNA Input)                       5           5               5            5            5           5           5
6.6.3      IF PATCH                          10          10              10           10           10          10          10

7.         RFT O&M
            SUBSYSTEM
7.1        VDU
7.1.1      Server
7.1.1.1    Model D370/1 SMP
            Server                           2           2                2            2            2           2           2
7.1.1.2    12BMB ECC Memory
            Module, D Class
            Servers                          2           2                2            2            2           2           2
7.1.1.3    2GB FWD SCS1-2
            Hot Swap disk
            Drive                            2           2                2            2            2           2           2
7.1.1.4    4GB DOS DAT Drive
            with data
            compression                      2           2                2            2            2           2           2
7.1.1.5    2.86 MB floppy
            drive                            2           2                2            2            2           2           2
7.1.1.6    Quad Speed 600MB
            CD-ROM Drive                     2           2                2            2            2           2           2
7.1.2      HMI
7.1.2.1    HP VISUALIZE Mdl
            B132L w/EG
            graphics                         2           2                2            2            2           2           2
7.1.2.2    12BMB ECC memory
            module                           2           2                2            2            2           2           2
7.1.2.3    FWD SCSI-2 card
            for B-class
            systems                          2           2                2            2            2           2           2
7.1.2.4    2GB disk drive,
             FWD SCSI-2 for
             B-class                         2           2                2            2            2           2           2
7.1.2.5    Fast CD-ROM drive
             for B-class
             systems                         2           2                2            2            2           2           2
7.1.2.6    1.4 MB floppy disk
             drive for B-class               2           2                2            2            2           2           2
7.2        DAU                               6           6                6            6            6           6           6
7.3        UIC                               6           6                6            6            6           6           6
7.4        CUIN                              5           5                5            5            5           5           5
7.5        UIC (No charge)                   2           2                                                      2
8.         OPTICAL FIBER IFL
8.1        Optical Fiber
             TX/RX Unit                      1           1                                                      1
           (1GHz and 70MHz
             for signal IFL)
8.2        Optical LAN TX/RX
             Unit                            1           1                                                      1
8.3        Optical Fiber
             Modem                           1           1                                                      1
8.4        L-band AMP                        1           1                                                      1
8.4.1      AMP for Optical
             Fiber IFL (2+1)
             for C-band Route               10          10                                                     10
8.4.2      AMP for Optical
             fiber IFL (1+1)
             for S-band Route                2           2                                                      2
8.5        IF Combiner/Divider
             Package                         1           1                                                      1
8.5.1      Rack                              2           2                                                      2

</TABLE>

<TABLE>
<CAPTION>

                                           SAN         SAN         SAN          SAN          SAN        NMC       NMC      TOTAL
Item No.   Description                  For Mexico   For UAE   For Indonesia  For China   For Korea   Primary    Back-up
                                         (Type 2)    (Type 2)    (Type 2)      (Type 2)    (Type 1)

                                           Q'ty        Q'ty        Q'ty         Q'ty         Q'ty       Q'ty       Q'ty     Q'ty
<S>        <C>                             <C>         <C>         <C>          <C>          <C>        <C>        <C>      <C>

5.4.6      IF PATCH                                                                                                          60
5.4.7      RF PATCH                                                                                                          90
5.4.8      19 inch Rack                                                                                                      30
            (TTC Converter
            rack)
6.         S-band Subsystem
6.1        Antenna                          5           5           5            5            5                              60
6.2        FET LNA                          5           5           5            5            5                              60
6.3        20W SSPA                         5           5           5            5            5                              60
6.4        Up Converter                     5           5           5            5            5                              60
6.5        Down Converter                   5           5           5            5            5                              60
6.6        Others
6.6.1      2G PATCH                        10          10          10           10           10                             120
6.6.2      30 dB Coupler
            (LNA Input)                     5           5           5            5            5                              60
6.6.3      IF PATCH                        10          10          10           10           10                             120
7.         RFT O&M
            SUBSYSTEM
7.1        VDU
7.1.1      Server
7.1.1.1    Model D370/1 SMP
            Server                          2           2           2            2            2                              24
7.1.1.2    12BMB ECC Memory
            Module, D Class
            Servers                         2           2           2            2            2                              24
7.1.1.3    2GB FWD SCS1-2
            Hot Swap disk
            Drive                           2           2           2            2            2                              24
7.1.1.4    4GB DOS DAT Drive
            with data
            compression                     2           2           2            2            2                              24
7.1.1.5    2.86 MB floppy
            drive                           2           2           2            2            2                              24
7.1.1.6    Quad Speed 600MB
            CD-ROM Drive                    2           2           2            2            2                              24
7.1.2      HMI
7.1.2.1    HP VISUALIZE Mdl
            B132L w/EG
            graphics                        2           2           2            2            2                              24
7.1.2.2    12BMB ECC memory
            module                          2           2           2            2            2                              24
7.1.2.3    FWD SCSI-2 card
            for B-class
            systems                         2           2           2            2            2                              24
7.1.2.4    2GB disk drive,
             FWD SCSI-2 for
             B-class                        2           2           2            2            2                              24
7.1.2.5    Fast CD-ROM drive
             for B-class
             systems                        2           2           2            2            2                              24
7.1.2.6    1.4 MB floppy disk
             drive for B-class              2           2           2            2            2                              24
7.2        DAU                              6           6           6            6            6                              72
7.3        UIC                              6           6           6            6            6                              72
7.4        CUIN                             5           5           5            5            5                              60
7.5        UIC (No charge)                                                                                                    6
8.         OPTICAL FIBER IFL
8.1        Optical Fiber
             TX/RX Unit
           (1GHz and 70MHz
             for signal IFL)                                                                                                  3
8.2        Optical LAN TX/RX
             Unit                                                                                                             3
8.3        Optical Fiber
             Modem                                                                                                            3
8.4        L-band AMP                                                                                                         3
8.4.1      AMP for Optical
             Fiber IFL (2+1)
             for C-band Route                                                                                                30
8.4.2      AMP for Optical
             fiber IFL (1+1)
             for S-band Route                                                                                                 6
8.5        IF Combiner/Divider
             Package                                                                                                          3
8.5.1      Rack                                                                                                               6
</TABLE>
<PAGE>   1014
RFT EQUIPMENT LIST
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
                                 SAN          SAN          SAN          SAN          SAN          SAN          SAN         SAN
                                 FOR          FOR          FOR          FOR          FOR          FOR          FOR         FOR
ITEM   DESCRIPTION             ICO-NET        USA       AUSTRALIA     GERMANY   SOUTH AFRICA     INDIA        CHILE       BRAZIL
 NO.                                        (TYPE 2)     (TYPE 1)     (TYPE 1)     (TYPE 1)     (TYPE 2)     (TYPE 2)    (TYPE 2)
                             ------------------------------------------------------------------------------------------------------
                                Q'TY         Q'TY         Q'TY         Q'TY         Q'TY         Q'TY          Q'TY        Q'TY
-----------------------------------------------------------------------------------------------------------------------------------
<S>    <C>                   <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>
8.5.2  1:6 IF COMB/DIV                     6            6                                                   6
9.     REFERENCE CLOCK
       DISTRIBUTION
9.1    10 MHz  Reference                   5            5            5            5            5            5            5
       Clock Distribution
9.2    Time Code Generator                 5            5            5            5            5            5            5
10.    TEST TRANSLATOR                     5            5            5            5            5            5            5
11.    RFT SIMULATOR
       SUBSYSTEM
11.1   VDU                    1
11.2   Simulator Function     1
12.    TEST EQUIPMENT
12.1   RF Signal Generator    6
12.2   IF Coaxial Hybrid                   1            1            1            1            1            1            1
12.3   Wave Guide Circuit     6
12.4   Low Loss Cables                     1            1            1            1            1            1            1
12.5   Other miscellaneous                 1            1            1            1            1            1            1
       equipment
12.6   Directional Bridge                  1            1            1            1            1            1            1
12.7   Power Sensor for                    1            1            1            1            1            1            1
       Power Meter
12.8   Analogue Oscilloscope               1            1            1            1            1            1            1
12.9   Chart Recorder (4-pen)              1            1            1            1            1            1            1
12.10  Crystal Detector                    1            1            1            1            1            1            1
12.11  Coaxial Coupler                     1            1            1            1            1            1            1
       (960-1,900 MHz)
12.12  Coaxial Coupler                     1            1            1            1            1            1            1
       (1.7-12.4 GHz)
12.13  HP-IB/Centronics Bus                1            1            1            1            1            1            1
       Converter
12.14  HP-IB Cable                         1            1            1            1            1            1            1
12.15  HP IEEE-1284 A-B                    1            1            1            1            1            1            1
       Parallel Cable
13.    INSTALLATION MATERIALS              1            1            1            1            1            1            1
14.    SHELTERS AND RELATED
       FACILITIES
14.1   Shelter                             5            5            5            5            5            5            5
14.2   Cooling Cabinet
       Shelter (for Mexico)
14.3   Expansion of A/C in
       Shelter (for Mexico)
14.4   Additional Ventilation              5                         5
       (for USA, Germany &
       Korea
15.    DOCUMENTATION          1
16.    CE-MARKS
16.1   Hardware Modification                            1            1
16.2   License Registration                             1            1
       Fee
17     SPARE
17.1   Antenna Tracking                    1            1            1            1            1            1            1
       Modules
17.2   Antenna Feed Horn                   1            1            1            1            1            1            1
       Cover
17.3   C-Band FET LNA Unit    2
17.4   LNA Power Supply       2
17.5   TWT Tube               4
17.6   HPA Spare Parts &      2
       Panels

</TABLE>
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
                                SAN          SAN          SAN         SAN          SAN          NMC           NMC        TOTAL
ITEM   DESCRIPTION              FOR          FOR          FOR         FOR          FOR        PRIMARY       BACK-UP
 NO.                          MEXICO         UAE       INDONESIA     CHINA        KOREA
                             (TYPE 2)     (TYPE 2)     (TYPE 2)     (TYPE 2)     (TYPE 1)
                             ------------------------------------------------------------------------------------------------------
                               Q'TY         Q'TY         Q'TY         Q'TY        Q'TY         Q'TY          Q'TY         Q'TY
-----------------------------------------------------------------------------------------------------------------------------------
<S>    <C>                   <C>          <C>          <C>          <C>          <C>          <C>          <C>         <C>
8.5.2  1:6 IF COMB/DIV                                                                                                  18
9.     REFERENCE CLOCK
       DISTRIBUTION
9.1    10 MHz  Reference      5            5            5            5            5                                     60
       Clock Distribution
9.2    Time Code Generator    5            5            5            5            5                                     60
10.    TEST TRANSLATOR        5            5            5            5            5
11.    RFT SIMULATOR
       SUBSYSTEM
11.1   VDU                                                                                                               1
11.2   Simulator Function                                                                                                1
12.    TEST EQUIPMENT
12.1   RF Signal Generator                                                                                               6
12.2   IF Coaxial Hybrid      1            1            1            1            1                                     12
12.3   Wave Guide Circuit                                                                                                6
12.4   Low Loss Cables        1            1            1            1            1                                     12
12.5   Other miscellaneous    1            1            1            1            1                                     12
       equipment
12.6   Directional Bridge     1            1            1            1            1                                     12
12.7   Power Sensor for       1            1            1            1            1                                     12
       Power Meter
12.8   Analogue Oscilloscope  1            1            1            1            1                                     12
12.9   Chart Recorder (4-pen) 1            1            1            1            1                                     12
12.10  Crystal Detector       1            1            1            1            1                                     12
12.11  Coaxial Coupler        1            1            1            1            1                                     12
       (960-1,900 MHz)
12.12  Coaxial Coupler        1            1            1            1            1                                     12
       (1.7-12.4 GHz)
12.13  HP-IB/Centronics Bus   1            1            1            1            1                                     12
       Converter
12.14  HP-IB Cable            1            1            1            1            1                                     12
12.15  HP IEEE-1284 A-B       1            1            1            1            1                                     12
       Parallel Cable
13.    INSTALLATION MATERIALS 1            1            1            1            1                                     12
14.    SHELTERS AND RELATED
       FACILITIES
14.1   Shelter                5            5            5            5            5                                     60
14.2   Cooling Cabinet        5                                                                                          5
       Shelter (for Mexico)
14.3   Expansion of A/C in    5                                                                                          5
       Shelter (for Mexico)
14.4   Additional Ventilation                                                     5                                     15
       (for USA, Germany &
       Korea
15.    DOCUMENTATION                                                                                                     1
16.    CE-MARKS
16.1   Hardware Modification                                                                                             2
16.2   License Registration                                                                                              2
       Fee
17     SPARE
17.1   Antenna Tracking       1            1            1             1           1                                     12
       Modules
17.2   Antenna Feed Horn      1            1            1             1           1                                     12
       Cover
17.3   C-Band FET LNA Unit                                                                                               2
17.4   LNA Power Supply                                                                                                  2
17.5   TWT Tube                                                                                                          4
17.6   HPA Spare Parts &                                                                                                 2
       Panels

</TABLE>

<PAGE>   1015
RFT EQUIPMENT LIST
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
                                 SAN          SAN          SAN          SAN          SAN          SAN          SAN         SAN
                                 FOR          FOR          FOR          FOR          FOR          FOR          FOR         FOR
ITEM   DESCRIPTION             ICO-NET        USA       AUSTRALIA     GERMANY   SOUTH AFRICA     INDIA        CHILE       BRAZIL
 NO.                                        (TYPE 2)     (TYPE 1)     (TYPE 1)     (TYPE 1)     (TYPE 2)     (TYPE 2)    (TYPE 2)
                             ------------------------------------------------------------------------------------------------------
                                Q'TY         Q'TY         Q'TY          Q'TY        Q'TY         Q'TY         Q'TY         Q'TY
-----------------------------------------------------------------------------------------------------------------------------------
<S>    <C>                   <C>          <C>          <C>          <C>          <C>          <C>          <C>         <C>
17.7    PS Module for TX/RX   2
        Path Selector
17.8    PS Module for SWO     2
17.9    C-band Up Converter   5
17.10   Pilot Generator       4
17.11   C-band Down Converter 5
17.12   AFC equipment         2
17.13   7G/70MHz D/C          2
17.14   1G/70MHz U/C          5
17.15   1G/70MHz D/C          5
17.16   PC (CPU only)                      1            1            1            1            1            1            1
17.17   PS Module for
        LINE AMP              2
17.18   Time Code Generator                1            1            1            1            1            1            1
17.19   TTC Up Converter
        with Crystal OSC.     2
17.20   TTC Down Converter
        with Crystal OSC.     2
17.21   S-band FET LNA        2
17.22   S-band 20W SSPA       2
17.23   S-band Up Converter   2
17.24   S-band Down Converter 2
17.25   VDU                                1            1            1            1            1            1            1
17.26   DAU                                1            1            1            1            1            1            1
17.27   UIC                                1            1            1            1            1            1            1
17.28   AFC (CUIN)-PC                      1            1            1            1            1            1            1
17.29   10 MHz Reference                   1            1            1            1            1            1            1
        Clock Distribution
17.30   EIRP C&M                           1            1            1            1            1            1            1
17.31   Optical Fiber TX/RX   2
        Unit
17.32   Module for Deicing    2
        Facility
18      AXIAL RATIO                                                                            1
        IMPROVEMENT FOR
        IOT/2 RFT
19      REMOTE MAINTENANCE    1
        SYSTEM FROM JAPAN/
        SAN
        (COMMUNICATION FEE
        CHARGED, SEPARATELY)
20      BAND PASS FILTER AT                1            1            1            1            1            1            1
        LNA INPUT
21      AIR CONDITIONER                                                                        1
        EXPANSION IN IOT
        CENTER HUB

        SOFTWARE LICENCE
1       Oracle RDBMS for RFT  1            1            1            1            1            1            1            1
        O&M/simulator

        OPTION
1.      SHELTER OPTION
        (180 DAYS OPTION)
1.1     Salt Defense for
        Shelter (per Shelter) 1
1.2     Dust-proof facility
        (per shelter)         1

</TABLE>
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
                                SAN          SAN          SAN         SAN          SAN          NMC           NMC        TOTAL
ITEM   DESCRIPTION              FOR          FOR          FOR         FOR          FOR        PRIMARY       BACK-UP
 NO.                          MEXICO         UAE       INDONESIA     CHINA        KOREA
                             (TYPE 2)     (TYPE 2)     (TYPE 2)     (TYPE 2)     (TYPE 1)
                             ------------------------------------------------------------------------------------------------------
                               Q'TY         Q'TY         Q'TY         Q'TY         Q'TY         Q'TY         Q'TY         Q'TY
-----------------------------------------------------------------------------------------------------------------------------------
<S>    <C>                   <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>
17.7    PS Module for TX/RX                                                                                              2
        Path Selector
17.8    PS Module for SWO                                                                                                2
17.9    C-band Up Converter                                                                                              5
17.10   Pilot Generator                                                                                                  4
17.11   C-band Down Converter                                                                                            5
17.12   AFC equipment                                                                                                    2
17.13   7G/70MHz D/C                                                                                                     2
17.14   1G/70MHz U/C                                                                                                     5
17.15   1G/70MHz D/C                                                                                                     5
17.16   PC (CPU only)         1            1            1            1            1                                     12
17.17   PS Module for                                                                                                    2
        LINE AMP
17.18   Time Code Generator   1            1            1            1            1                                     12
17.19   TTC Up Converter                                                                                                 2
        with Crystal OSC.
17.20   TTC Down Converter                                                                                               2
        with Crystal OSC.
17.21   S-band FET LNA                                                                                                   2
17.22   S-band 20W SSPA                                                                                                  2
17.23   S-band Up Converter                                                                                              2
17.24   S-band Down Converter                                                                                            2
17.25   VDU                   1            1            1            1            1                                     12
17.26   DAU                   1            1            1            1            1                                     12
17.27   UIC                   1            1            1            1            1                                     12
17.28   AFC (CUIN)-PC         1            1            1            1            1                                     12
17.29   10 MHz Reference      1            1            1            1            1                                     12
        Clock Distribution
17.30   EIRP C&M              1            1            1            1            1                                     12
17.31   Optical Fiber TX/RX                                                                                              2
        Unit
17.32   Module for Deicing                                                                                               2
        Facility
18      AXIAL RATIO                                                                                                      1
        IMPROVEMENT FOR
        IOT/2 RFT
19      REMOTE MAINTENANCE                                                                                               1
        SYSTEM FROM JAPAN/
        SAN
        (COMMUNICATION FEE
        CHARGED, SEPARATELY)
20      BAND PASS FILTER AT   1            1             1           1            1                                     12
        LNA INPUT
21      AIR CONDITIONER                                                                                                  1
        EXPANSION IN IOT
        CENTER HUB

        SOFTWARE LICENCE
1       Oracle RDBMS for RFT  1            1             1           1            1                                     13
        O&M/simulator

        OPTION
1.      SHELTER OPTION                                                                                                   1
        (180 DAYS OPTION)
1.1     Salt Defense for
        Shelter (per Shelter)
1.2     Dust-proof facility                                                                                              1
        (per shelter)
</TABLE>

<PAGE>   1016
SBS EQUIPMENT LIST

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
                                 SAN          SAN          SAN          SAN          SAN          SAN          SAN         SAN
                                 FOR          FOR          FOR          FOR          FOR          FOR          FOR         FOR
ITEM   DESCRIPTION             ICO-NET        USA       AUSTRALIA     GERMANY   SOUTH AFRICA     INDIA        CHILE       BRAZIL
 NO.                                        (TYPE 2)     (TYPE 1)     (TYPE 1)     (TYPE 1)     (TYPE 2)     (TYPE 2)    (TYPE 2)
                             ------------------------------------------------------------------------------------------------------
                              QTY/MMs       QTY/MMs     QTY/MMs       QTY/MMs     QTY/MMs       QTY/MMs      QTY/MMs      QTY/MMs
-----------------------------------------------------------------------------------------------------------------------------------
<S>    <C>                     <C>         <C>         <C>           <C>          <C>           <C>          <C>          <C>
       HARDWARE

1       CHANNEL UNIT
1.1     Channel Unit Chassis                 18           18           18           18            18           18           18
        (CUC)
1.1.1   CUBs (42 RACH + 35                   79           79           79           79            79           79           79
        Traffic + 2 S-Band)
1.1.2   Slot Processor Module                90           90           90           90            90           90           90
        (SPM)
1.1.3   Modulator Demodulator               162          162          162          162           162          162          162
        Module (MDM)
1.1.4   Clock Distribution                   18           18           18           18            18           18           18
        Unit (CDM)
1.1.5   Common Functions                     36           36           36           36            36           36           36
        Module (CFM)
1.1.6   Channel Unit Rack Base                7            7            7            7             7            7            7
        Units
1.1.7   T1 Cables                            36           36           36           36            36           36           36
1.1.8   Software Licences                    18           18           18           18            18           18           18
1.1.9   Fan Tray                             18           18           18           18            18           18           18

2       CHANNEL MANAGER
        Channel Manager                       2            2            2            2             2            2            2
        Chassis (ChM)
2.1.1   G.703 Interface                      26           26           26           26            26           26           26
2.1.2   Control Processor                    22           22           22           22            22           22           22
        Modules (CPM)
2.1.2.1 Channel Access Processor             10           10           10           10            10           10           10
        (CAP)
2.1.2.2 Channel Control                       8            8            8            8             8            8            8
        Processor (CCP)
2.1.2.3 Global Resource Process               4            4            4            4             4            4            4
        (GRP)
2.1.3   Switching Transcoder                 42           42           42           42            42           42           42
        Module (STM)
2.1.4   10 Base2 Ethernet                     2            2            2            2             2            2            2
2.2     Channel Manager Rack                  1            1            1            1             1            1            1
        (CMR) w 2 Chassis
2.2.1   Fan                                   2            2            2            2             2            2            2
2.2.2   Power Distribution Unit               1            1            1            1             1            1            1
2.2.3   E1 Cables                             4            4            4            4             4            4            4
2.2.4   Software Licences                     2            2            2            2             2            2            2

3       DISTRIBUTION RACKS
3.1     IF Distribution Subsystem             1            1            1            1             1            1            1
        (IDS)
3.1.1   SBS Distribution Racks,               4            4            4            4             4            4            4
        Tx and Rx
3.2     Clock Distribution                    1            1            1            1             1            1            1
        Subsystem (CDS)
3.2.1   GPS Receiver w/ Rb                    2            2            2            2             2            2            2
        Oscillator
3.2.2   10 MHz Outputs (SBS)               Multiple    Multiple      Multiple     Multiple      Multiple     Multiple     Multiple
3.2.3   GPS Time Code Outputs              Multiple    Multiple      Multiple     Multiple      Multiple     Multiple     Multiple
        (SBS)
3.2.4   Network Time Server                   2            2            2            2             2            2            2
        (NTS)
4       INSTALLATION MATERIALS
        (incis power/signal
        cables)
4.1     Power Cables                         42           42           42           42            42           42           42
4.2     I/F Cables                           48           48           48           48            48           48           48
4.3     LAN Cables                           28           28           28           28            28           28           28
4.4     Sync Cabling                         60           60           60           60            60           60           60

5       SBS OMC
5.1     Hewlett-Packard H60                   1            1            1            1             1            1            1
        server
5.2     Hewlett-Packard Laser                 1            1            1            1             1            1            1
        Jet 4Si printer
</TABLE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                      SAN          SAN         SAN         SAN          SAN          NMC           NMC        TOTAL
ITEM   DESCRIPTION                    FOR          FOR         FOR         FOR          FOR        PRIMARY       BACK-UP
 NO.                                MEXICO         UAE      INDONESIA     CHINA        KOREA
                                   (TYPE 2)     (TYPE 2)     (TYPE 2)     (TYPE 2)     (TYPE 1)
                                   -------------------------------------------------------------------------------------------------
                                   QTY/MMs      QTY/MMs      QTY/MMs      QTY/MMs      QTY/MMs     QTY/MMs       QTY/MMs
------------------------------------------------------------------------------------------------------------------------------------
<S>    <C>                         <C>         <C>           <C>          <C>          <C>         <C>           <C>        <C>
       HARDWARE

1       CHANNEL UNIT
1.1     Channel Unit Chassis        18           18           18           18            18                                   216
        (CUC)
1.1.1   CUBs (42 RACH + 35          79           79           79           79            79                                   948
        Traffic + 2 S-Band)
1.1.2   Slot Processor Module       90           90           90           90            90                                 1,080
        (SPM)
1.1.3   Modulator Demodulator      162          162          162          162           162                                 1,944
        Module (MDM)
1.1.4   Clock Distribution          18           18           18           18            18                                   216
        Unit (CDM)
1.1.5   Common Functions            36           36           36           36            36                                   432
        Module (CFM)
1.1.6   Channel Unit Rack Base       7            7            7            7             7                                    84
        Units
1.1.7   T1 Cables                   36           36           36           36            36                                   432
1.1.8   Software Licences           18           18           18           18            18                                   216
1.1.9   Fan Tray                    18           18           18           18            18                                   216

2       CHANNEL MANAGER
        Channel Manager              2            2            2            2             2                                    24
        Chassis (ChM)
2.1.1   G.703 Interface             26           26           26           26            26                                   312
2.1.2   Control Processor           22           22           22           22            22                                   264
        Modules (CPM)
2.1.2.1 Channel Access Processor    10           10           10           10            10                                   120
        (CAP)
2.1.2.2 Channel Control              8            8            8            8             8                                    96
        Processor (CCP)
2.1.2.3 Global Resource Process      4            4            4            4             4                                    48
        (GRP)
2.1.3   Switching Transcoder        42           42           42           42            42                                   504
        Module (STM)
2.1.4   10 Base2 Ethernet            2            2            2            2             2                                    24
2.2     Channel Manager Rack         1            1            1            1             1                                    12
        (CMR) w 2 Chassis
2.2.1   Fan                          2            2            2            2             2                                    24
2.2.2   Power Distribution Unit      1            1            1            1             1                                    12
2.2.3   E1 Cables                    4            4            4            4             4                                    48
2.2.4   Software Licences            2            2            2            2             2                                    24

3       DISTRIBUTION RACKS
3.1     IF Distribution Subsystem    1            1            1            1             1                                    12
        (IDS)
3.1.1   SBS Distribution Racks,      4            4            4            4             4                                    48
        Tx and Rx
3.2     Clock Distribution           1            1            1            1             1                                    12
        Subsystem (CDS)
3.2.1   GPS Receiver w/ Rb           2            2            2            2             2                                    24
        Oscillator
3.2.2   10 MHz Outputs (SBS)       Multiple    Multiple      Multiple     Multiple      Multiple                            Multiple
3.2.3   GPS Time Code Outputs      Multiple    Multiple      Multiple     Multiple      Multiple                            Multiple
        (SBS)
3.2.4   Network Time Server          2            2            2            2             2                                    24
        (NTS)
4       INSTALLATION MATERIALS
        (incis power/signal
        cables)
4.1     Power Cables                42           42           42           42            42                                   504
4.2     I/F Cables                  48           48           48           48            48                                   576
4.3     LAN Cables                  28           28           28           28            28                                   336
4.4     Sync Cabling                60           60           60           60            60                                   720

5       SBS OMC
5.1     Hewlett-Packard H60          1            1            1            1             1                                    12
        server
5.2     Hewlett-Packard Laser        1            1            1            1             1                                    12
        Jet 4Si printer
</TABLE>
<PAGE>   1017
SBS EQUIPMENT LIST

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
                                 SAN          SAN          SAN          SAN          SAN          SAN          SAN         SAN
                                 FOR          FOR          FOR          FOR          FOR          FOR          FOR         FOR
ITEM   DESCRIPTION             ICO-NET        USA       AUSTRALIA     GERMANY   SOUTH AFRICA     INDIA        CHILE       BRAZIL
 NO.                                        (TYPE 2)     (TYPE 1)     (TYPE 1)     (TYPE 1)     (TYPE 2)     (TYPE 2)    (TYPE 2)
                             ------------------------------------------------------------------------------------------------------
                               QTY/MMs      QTY/MMs     QTY/MMs       QTY/MMs     QTY/MMs       QTY/MMs      QTY/MMs     QTY/MMs
-----------------------------------------------------------------------------------------------------------------------------------
<S>    <C>                      <C>       <C>          <C>          <C>          <C>          <C>          <C>          <C>
5.3    Hewlett-Packard 712                     1           1              1           1             1            1           1
       workstation
5.4    Database Management                     1           1              1           1             1            1           1
       System licence for HP
       server
5.5    Network Management                      1           1              1           1             1            1           1
       Framework Software
       Licence

6      LOCAL SRMS
6.1    Hewlett-Packard K400                    2           2              2           2             2             2          2
       servers
6.2    Mirror Disk Drives
       (included in K400
       Servers)
6.3    Rack (included in K400
       Servers)
6.4    Database Management                     1           1              1           1             1            1           1
       System Licence for HP
       Server

7      TEST FIXTURES/TEST
       EQUIPMENT
       (  Equipment will be
       used during the test
       period at the HNS
       facilities in India &
       USA and not at the SAN
       sites.)
7.1    Channel Unit
7.1.1  CUBS                                   54                                                   32
7.1.2  Channel Unit Chassis                   12                                                    7
       (CUC)
7.1.3  Slot Processor Module                  60                                                   35
       (SPM)
7.1.4  Modulator Distribution                108                                                   63
       Module (MDM)
7.1.5  Clock Distribution Unit                12                                                    7
       (CDM)
7.1.6  Common Functions Module                24                                                   14
       (CFM)
7.1.7  Channel Unit Rack Base                  4                                                    3
       Units
7.1.8  T1 Cables                              24                                                   14
7.1.9  Base Components
7.1.10 Fan Trays
7.1.11 Misc pins, circuit
       breakers, connectors
7.2    Channel Manager
7.2.1  Channel Manager Chassis                 2                                                    2
       (ChM)
7.2.2  G.703 Interface                        26                                                   26
7.2.3  Control Processor                      26                                                   26
       Modules (CPM)
7.2.4  Channel Access Processor               10                                                   10
7.2.5  Channel Control                         8                                                    8
       Processor (CCP)
7.2.6  Global Resource                         4                                                    4
       Processor (GRP)
7.2.7  Switching Transcoder                   42                                                   42
       Module (STM)
7.2.8  10 Base2 Ethernet                       2                                                    2
7.2.9  Channel Manager Rack                    1                                                    1
       (CMR) w2 Chassis
7.2.10 Fan                                     2                                                    2
7.2.11 E1 Cables                              20                                                   20
7.3    Processing Equipment
7.3.1  SBS OMC                                 1                                                    1
7.3.2  Local SRMS                              1                                                    1
7.3.3  OPS Console                             1                                                    1
7.3.4  Ethernet Switch                         1                                                    1

7.4    DISTRIBUTION RACKS
7.4.1  IF Distribution                         1                                                    1
       Subsystem (IDS)
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
                                 SAN          SAN          SAN         SAN          SAN          NMC           NMC        TOTAL
ITEM   DESCRIPTION               FOR          FOR          FOR         FOR          FOR        PRIMARY       BACK-UP
 NO.                           MEXICO         UAE       INDONESIA     CHINA        KOREA
                              (TYPE 2)     (TYPE 2)     (TYPE 2)     (TYPE 2)     (TYPE 1)
                              -----------------------------------------------------------------------------------------------------
                              QTY/MMs       QTY/MMs     QTY/MMs       QTY/MMs     QTY/MMs       QTY/MMs      QTY/MMs
-----------------------------------------------------------------------------------------------------------------------------------
<S>    <C>                     <C>        <C>          <C>          <C>          <C>          <C>          <C>          <C>
5.3    Hewlett-Packard 712          1           1              1           1             1                                  12
       workstation
5.4    Database Management          1           1              1           1             1                                  12
       System licence for HP
       server
5.5    Network Management           1           1              1           1             1                                  12
       Framework Software
       Licence

6      LOCAL SRMS
6.1    Hewlett-Packard K400         2           2              2           2             2                                  24
       servers
6.2    Mirror Disk Drives
       (included in K400
       Servers)
6.3    Rack (included in K400
       Servers)
6.4    Database Management          1           1              1           1             1                                  12
       System Licence for HP
       Server

7      TEST FIXTURES/TEST
       EQUIPMENT
       (  Equipment will be
       used during the test
       period at the HNS
       facilities in India &
       USA and not at the SAN
       sites.)
7.1    Channel Unit
7.1.1  CUBS                                                                                                                 86
7.1.2  Channel Unit Chassis                                                                                                 19
       (CUC)
7.1.3  Slot Processor Module                                                                                                95
       (SPM)
7.1.4  Modulator Distribution                                                                                              171
       Module (MDM)
7.1.5  Clock Distribution Unit                                                                                              19
       (CDM)
7.1.6  Common Functions Module                                                                                              38
       (CFM)
7.1.7  Channel Unit Rack Base
       Units
7.1.8  T1 Cables
7.1.9  Base Components
7.1.10 Fan Trays
7.1.11 Misc pins, circuit
       breakers, connectors
7.2    Channel Manager
7.2.1  Channel Manager Chassis                                                                                               4
       (ChM)
7.2.2  G.703 Interface                                                                                                      52
7.2.3  Control Processor                                                                                                    52
       Modules (CPM)
7.2.4  Channel Access Processor                                                                                             20
       (CAP)
7.2.5  Channel Control                                                                                                      16
       Processor (CCP)
7.2.6  Global Resource                                                                                                       8
       Processor (GRP)
7.2.7  Switching Transcoder                                                                                                 84
       Module (STM)
7.2.8  10 Base2 Ethernet                                                                                                     4
7.2.9  Channel Manager Rack                                                                                                  2
       (CMR) w2 Chassis
7.2.10 Fan                                                                                                                   4
7.2.11 E1 Cables                                                                                                            40
7.3    Processing Equipment
7.3.1  SBS OMC                                                                                                               2
7.3.2  Local SRMS                                                                                                            2
7.3.3  OPS Console                                                                                                           2
7.3.4  Ethernet Switch                                                                                                       2

7.4    DISTRIBUTION RACKS
7.4.1  IF Distribution                                                                                                       2
       Subsystem (IDS)

</TABLE>

<PAGE>   1018
                                                                    DERIVA-1.XLS

SBS EQUIPMENT LIST
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
                                 SAN          SAN          SAN          SAN          SAN          SAN          SAN         SAN
                                 FOR          FOR          FOR          FOR          FOR          FOR          FOR         FOR
ITEM   DESCRIPTION             ICO-NET        USA       AUSTRALIA     GERMANY   SOUTH AFRICA     INDIA        CHILE       BRAZIL
 NO.                                        (TYPE 2)     (TYPE 1)     (TYPE 1)     (TYPE 1)     (TYPE 2)     (TYPE 2)    (TYPE 2)
                             ------------------------------------------------------------------------------------------------------
                               QTY/MMs      QTY/MMs      QTY/MMs       QTY/MMs     QTY/MMs       QTY/MMs      QTY/MMs     QTY/MMs
-----------------------------------------------------------------------------------------------------------------------------------
<S>    <C>                     <C>          <C>          <C>           <C>         <C>           <C>          <C>         <C>
7.4.2   Clock Distribution
        Subsystem (CDS)                           1                                                    1

7.5     Installation
        Materials including
        power/signal cables
7.5.1   Power Cables                             30                                                   20
7.5.2   I/F Cables                               32                                                   24
7.5.3   LAN Cables                                2                                                    1
7.5.4   Sync Cabling                             40                                                   30

7.6     Power System                              1                                                    1

7.7     Specialized Test
        Equipment
7.7.1   Traffic Burst
        Generator                                 1                                                    1
7.7.2   Signaling Burst
        Generator                                 1                                                    1
7.7.3   BER Analyzer                              2                                                    2
7.7.4   SCAT Test Bed                             1                                                    0
7.7.5   Lab Power Suppliers                       6                                                    0
7.7.6   RF Combiners/
        Splitters                                10                                                    5
7.7.7   Misc Baseband
        Combiners/Splitters                      20                                                    5

8       CLOCK DISTRIBUTION
        SYSTEM
8.1     Engineering Development 71
8.2     Equipment-12 SANs
8.2.1   10 MHz Fiber Optic
        Outputs                              5 Sets       5 Sets        5 Sets      5 Sets        5 Sets       5 Sets      5 Sets
8.2.2   GPS Time Code Fiber
        Optic Outputs                        5 Sets       5 Sets        5 Sets      5 Sets        5 Sets       5 Sets      5 Sets
8.2.3   10 MHz Outputs                       3 Sets       3 Sets        3 Sets      3 Sets        3 Sets       3 Sets      3 Sets
8.2.4   IRIG-B Outputs                       6 Sets       6 Sets        6 Sets      6 Sets        6 Sets       6 Sets      6 Sets
8.2.5   1 PPS Outputs                        2 Sets       2 Sets        2 Sets      2 Sets        2 Sets       2 Sets      2 Sets
8.2.6   GPS Time Code Outputs                2 Sets       2 Sets        2 Sets      2 Sets        2 Sets       2 Sets      2 Sets

9       SYSTEM INTEGRATION
        SUPPORT FACILITY
        AT NEC AUSTRALIA                                      **
        (**; EQUIPMENT WILL
        BE USED DURING THE TEST
        PERIOD AT NEC
        AUSTRALIA FACILITY
        AND NOT AT SAN SITE.)
9.1     Engineering Support                                     9
9.2     Lab Equipment
9.2.1   Channel Unit                                           10
9.2.2   Channel Manager                                         2
9.2.3   E1/T1 Cabling                                     1 Group
9.2.4   LAN Cabling and TAPs                              1 Group
9.2.5   Clock Distribution
        System                                                  1
9.2.6   I/F Distribution
        System                                                  1
9.2.7   Traffic Burst
        Generator                                               4
9.2.8   Signaling Burst
        Generator                                               1

10      SBS DC POWER SYSTEM
        (AC/DC CONVERTERS &
        2 HR)                                      1            1             1           1             1            1           1
10.1    Battery Bank                               1            1             1           1             1            1           1
10.2    Rectifier Rack                             1            1             1           1             1            1           1
10.3    Power Distribution
        Rack                                       1            1             1           1             1            1           1
10.4    Installation
        Materials                               1 Lot       1 Lot         1 Lot       1 Lot         1 Lot         1 Lot      1 Lot

</TABLE>

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

                                SAN          SAN          SAN         SAN          SAN          NMC           NMC        TOTAL
ITEM   DESCRIPTION              FOR          FOR          FOR         FOR          FOR        PRIMARY       BACK-UP
 NO.                          MEXICO         UAE       INDONESIA     CHINA        KOREA
                              (TYPE 2)      (TYPE 2)    (TYPE 2)     (TYPE 2)     (TYPE 1)
                             ------------------------------------------------------------------------------------------------------
                               QTY/MMs      QTY/MMs      QTY/MMs       QTY/MMs     QTY/MMs       QTY/MMs      QTY/MMs     QTY/MMs
-----------------------------------------------------------------------------------------------------------------------------------
<S>    <C>                   <C>            <C>          <C>           <C>         <C>           <C>          <C>         <C>
7.4.2   Clock Distribution
        Subsystem (CDS)                                                                                                          2

7.5     Installation
        Materials including
        power/signal cables
7.5.1   Power Cables                                                                                                            50
7.5.2   I/F Cables                                                                                                              56
7.5.3   LAN Cables                                                                                                               3
7.5.4   Sync Cabling                                                                                                            70

7.6     Power System                                                                                                             2

7.7     Specialized Test
        Equipment
7.7.1   Traffic Burst
        Generator                                                                                                                2
7.7.2   Signaling Burst
        Generator                                                                                                                2
7.7.3   BER Analyzer                                                                                                             4
7.7.4   SCAT Test Bed                                                                                                            1
7.7.5   Lab Power Suppliers                                                                                                      6
7.7.6   RF Combiners/
        Splitters                                                                                                               15
7.7.7   Misc Baseband
        Combiners/Splitters                                                                                                     25

8       CLOCK DISTRIBUTION
        SYSTEM
8.1     Engineering Development
8.2     Equipment-12 SANs
8.2.1   10 MHz Fiber Optic
        Outputs                                                                                                            60 Sets
8.2.2   GPS Time Code Fiber
        Optic Outputs                                                                                                      60 Sets
8.2.3   10 MHz Outputs                                                                                                     36 Sets
8.2.4   IRIG-B Outputs                                                                                                     72 Sets
8.2.5   1 PPS Outputs                                                                                                      24 Sets
8.2.6   GPS Time Code Outputs                                                                                              24 Sets

9       SYSTEM INTEGRATION
        SUPPORT FACILITY
        AT NEC AUSTRALIA
        (**; EQUIPMENT WILL
        BE USED DURING THE TEST
        PERIOD AT NEC
        AUSTRALIA FACILITY
        AND NOT AT SAN SITE.)
9.1     Engineering Support                                                                                                      9
9.2     Lab Equipment
9.2.1   Channel Unit                                                                                                            10
9.2.2   Channel Manager                                                                                                          2
9.2.3   E1/T1 Cabling                                                                                                      1 Group
9.2.4   LAN Cabling and TAPs                                                                                               1 Group
9.2.5   Clock Distribution
        System                                                                                                                   1
9.2.6   I/F Distribution
        System                                                                                                                   1
9.2.7   Traffic Burst
        Generator                                                                                                                4
9.2.8   Signaling Burst
        Generator                                                                                                                1

10      SBS DC POWER SYSTEM
        (AC/DC CONVERTORS &
        2 HR)                         1             1           1             1           1                                      12
10.1    Battery Bank                  1             1           1             1           1                                      12
10.2    Rectifier Rack                1             1           1             1           1                                      12
10.3    Power Distribution
        Rack                          1             1           1             1           1                                      12
10.4    Installation
        Materials                  1 Lot         1 Lot      1 Lot         1 Lot       1 Lot                                 12 Lots
</TABLE>
<PAGE>   1019
                                                                    DERIVA-1.XLS

SBS EQUIPMENT LIST
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
                                                     SAN        SAN       SAN       SAN        SAN        SAN      SAN        SAN
                                                     FOR        FOR       FOR       FOR        FOR        FOR      FOR        FOR
ITEM   DESCRIPTION                                 ICO-NET      USA    AUSTRALIA  GERMANY  SOUTH AFRICA INDIA     CHILE      BRAZIL
 NO.                                                          (TYPE 2)  (TYPE 1)  (TYPE 1)   (TYPE 1)   (TYPE 2) (TYPE 2)   (TYPE 2)
                              -----------------------------------------------------------------------------------------------------
                                                   QTY/MMs    QTY/MMs   QTY/MMs   QTY/MMs   QTY/MMs    QTY/MMs    QTY/MMs   QTY/MMs
-----------------------------------------------------------------------------------------------------------------------------------
<S>       <C>                                      <C>       <C>       <C>        <C>      <C>        <C>        <C>        <C>
11        CE MARK COMPLIANCE FOR SAN CHM, CU, IF
          DISTRIBUTION & CLOCK DISTRIBUTION
          NOTE: ONE SITE QUALIFIED TO MEET CE
          PER EN55022 CLASS A

11.1      Engineering Development                   139
11.2      Test & Certification                                            7         7
11.3      Equipment

12        SPARE PARTS
12.1      Channel Unit Chassis
12.1.1    Slot Processor Module (SPM)                          5          5         5         5          5          5          5
12.1.2    Modulator Demodulator Module (MDM)                  10         10        10        10         10         10          10
12.1.3    Clock Distribution Unit (CDM)                        2          2         2         2          2          2          2
12.1.4    Common Functions Module (CFM)                        3          3         3         3          3          3          3
12.1.5    T1 Cables                                            1          1         1         1          1          1          1
12.1.6    Channel Unit Rack Base Components                 3 Lots     3 Lots    3 Lots    3 Lots     3 Lots     3 Lots      3 Lots
12.1.7    Fan Trays                                            2          2         2         2          2          2          2
12.2      Channel Manager Chassis
12.2.1    G-703 Interface                                      3          3         3         3          3          3          3
12.2.2    Control Processor Modules used for                   3          3         3         3          3          3          3
          CAPs, CCPs & GRPs
12.2.3    Switching Transcoder Module (STM)                    6          6         6         6          6          6          6
12.2.4    10 Base2 Ethernet                                    1          1         1         1          1          1          1
12.2.5    Fan                                                  1          1         1         1          1          1          1
12.2.6    E1 Cables                                            1          1         1         1          1          1          1
12.2.7    Power Distribution Unit Components                 1 Lot      1 Lot     1 Lot     1 Lot      1 Lot      1 Lot      1 Lot
12.3      Clock Distribution Subsystem
12.3.1    GPS Receiver w/Rb Oscillator                         1          1         1         1          1          1          1
12.3.2    10 MHz Outputs (SBS)                               1 Set      1 Set     1 Set     1 Set      1 Set      1 Set      1 Set
12.3.3    GPS Time Code Outputs (SBS)                        1 Set      1 Set     1 Set     1 Set      1 Set      1 Set      1 Set
12.3.4    Network Time Server                                  1          1         1         1          1          1          1
12.4      IF Distribution Subsystem
12.4.1    SBS Tx Distribution Modules                        1 Set      1 Set     1 Set     1 Set      1 Set      1 Set      1 Set
12.4.2    SBS Rx Distribution Modules                        1 Set      1 Set     1 Set     1 Set      1 Set      1 Set      1 Set
12.5      Clock Distribution Equipment
12.5.1    10 MHz Fiber Optic Outputs                         1 Set      1 Set     1 Set     1 Set      1 Set      1 Set      1 Set
12.5.2    GPS Time Code Fiber Optic Outputs                  1 Set      1 Set     1 Set     1 Set      1 Set      1 Set      1 Set
12.5.3    10 MHz Outputs                                     1 Set      1 Set     1 Set     1 Set      1 Set      1 Set      1 Set
12.5.4    IRIG-B Outputs                                     1 Set      1 Set     1 Set     1 Set      1 Set      1 Set      1 Set
12.5.5    1 PPS Outputs                                      1 Set      1 Set     1 Set     1 Set      1 Set      1 Set      1 Set
12.5.6    GPS Time Code Outputs                              1 Set      1 Set     1 Set     1 Set      1 Set      1 Set      1 Set

13        TESTER
13.1      AI Validation Tool (SDL)                   1
          Engineering Development                   96
          Materials                                  1
14        HARDWARE ITEM FOR 60/61 DAYS OPTION
14.1      Implementation of Service Area in SBS                1          1         1         1          1          1          1
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
                                                     SAN        SAN       SAN       SAN        SAN       NMC       NMC       TOTAL
                                                     FOR        FOR       FOR       FOR        FOR     PRIMARY    BACKUP
ITEM   DESCRIPTION                                  MEXICO      UAE    INDONESIA   CHINA      KOREA
 NO.                                               (TYPE 2)   (TYPE 2)  (TYPE 2)  (TYPE 2)  (TYPE 1)
                              -----------------------------------------------------------------------------------------------------
                                                   QTY/MMs    QTY/MMs   QTY/MMs   QTY/MMs   QTY/MMs    QTY/MMs    QTY/MMs   QTY/MMs
-----------------------------------------------------------------------------------------------------------------------------------
<S>       <C>                                      <C>       <C>       <C>        <C>      <C>        <C>        <C>        <C>
11        CE MARK COMPLIANCE FOR SAN CHM, CU, IF
          DISTRIBUTION & CLOCK DISTRIBUTION
          NOTE: ONE SITE QUALIFIED TO MEET CE
          PER EN55022 CLASS A

11.1      Engineering Development                                                                                           139
11.2      Test & Certification                                                                                               14
11.3      Equipment

12        SPARE PARTS
12.1      Channel Unit Chassis
12.1.1    Slot Processor Module (SPM)                  5          5          5          5          5                         60
12.1.2    Modulator Demodulator Module (MDM)          10        10         10         10         10        10               120
12.1.3    Clock Distribution Unit (CDM)                2          2          2          2          2                         24
12.1.4    Common Functions Module (CFM)                3          3          3          3          3                         36
12.1.5    T1 Cables                                    1          1          1          1          1                         12
12.1.6    Channel Unit Rack Base Components          3 Lots    3 Lots     3 Lots     3 Lots     3 Lots                     36 Lots
12.1.7    Fan Trays                                    2          2          2          2          2                         24
12.2      Channel Manager Chassis
12.2.1    G.703 Interface                              3          3          3          3          3         3               36
12.2.2    Control Processor Modules used for
          CAPs, CCPs & GRPs                            3          3          3          3          3         3               36
12.2.3    Switching Transcoder Module (STM)            6          6          6          6          6                         72
12.2.4    10 Base2 Ethernet                            1          1          1          1          1                         12
12.2.5    Fan                                          1          1          1          1          1                         12
12.2.6    E1 Cables                                    1          1          1          1          1                         12
12.2.7    Power Distribution Unit Components         1 Lot      1 Lot      1 Lot      1 Lot      1 Lot                     12 Lots
12.3      Clock Distribution Subsystem
12.3.1    GPS Receiver w/Rb Oscillator                 1          1          1          1          1                         12
12.3.2    10 MHz Outputs (SBS)                       1 Set      1 Set      1 Set      1 Set      1 Set                     12 Sets
12.3.3    GPS Time Code Outputs (SBS)                1 Set      1 Set      1 Set      1 Set      1 Set                     12 Sets
12.3.4    Network Time Server                          1          1          1          1          1                         12
12.4      IF Distribution Subsystem
12.4.1    SBS Tx Distribution Modules                1 Set      1 Set      1 Set      1 Set      1 Set                     12 Sets
12.4.2    SBS Rx Distribution Modules                1 Set      1 Set      1 Set      1 Set      1 Set                     12 Sets
12.5      Clock Distribution Equipment
12.5.1    10 MHz Fiber Optic Outputs                 1 Set      1 Set      1 Set      1 Set      1 Set                     12 Sets
12.5.2    GPS Time Code Fiber Optic Outputs          1 Set      1 Set      1 Set      1 Set      1 Set                     12 Sets
12.5.3    10 MHz Outputs                             1 Set      1 Set      1 Set      1 Set      1 Set                     12 Sets
12.5.4    IRIG-B Outputs                             1 Set      1 Set      1 Set      1 Set      1 Set                     12 Sets
12.5.5    1 PPS Outputs                              1 Set      1 Set      1 Set      1 Set      1 Set                     12 Sets
12.5.6    GPS Time Code Outputs                      1 Set      1 Set      1 Set      1 Set      1 Set                     12 Sets

13        TESTER
13.1      AI Validation Tool (SDL)                                                                                           1
          Engineering Development Materials                                                                                 96
          Materials                                                                                                          1

14        HARDWARE ITEM FOR 60/61 DAYS OPTION
14.1      Implementation of Service Area in SBS        1          1          1          1          1                 12
</TABLE>
<PAGE>   1020
SBS EQUIPMENT LIST

<TABLE>
<CAPTION>
                                  SAN          SAN          SAN          SAN         SAN          SAN          SAN          SAN
ITEM    DESCRIPTION           FOR ICO-NET    FOR USA        FOR          FOR       FOR SOUTH    FOR INDIA    FOR CHILE   FOR BRAZIL
NO.                                          (TYPE 2)    AUSTRALIA     GERMANY      AFRICA      (TYPE 2)     (TYPE 2)     (TYPE 2)
                                                         (TYPE 1)      (TYPE 1)    (TYPE 1)
                              ------------------------------------------------------------------------------------------------------
                                Qty/MMs      Qty/MMs      Qty/MMs      Qty/MMs      Qty/MMs      Qty/MMs      Qty/MMs      Qty/MMs
------------------------------------------------------------------------------------------------------------------------------------
<S>     <C>                     <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>
14.2    Service Area Based on                   1            1            1            1            1            1            1
         Frequency Assignment
14.3    Service Area mapping                    1            1            1            1            1            1            1
         using guard band
14.4    2 Satellite position                    1            1            1            1            1            1            1
         determination using
         differential delay

        SOFTWARE LICENCE

        OPTIONS
</TABLE>

<TABLE>
<CAPTION>
                                  SAN          SAN          SAN          SAN         SAN          NMC           NMC        TOTAL
ITEM    DESCRIPTION           FOR MEXICO     FOR UAE        FOR       FOR CHINA    FOR KOREA     PRIMARY      BACK-UP
NO.                            (TYPE 2)      (TYPE 2)    INDONESIA     (TYPE 2)    (TYPE 1)
                                                         (TYPE 2)
                              ------------------------------------------------------------------------------------------------------
                                Qty/MMs      Qty/MMs      Qty/MMs      Qty/MMs      Qty/MMs      Qty/MMs      Qty/MMs
------------------------------------------------------------------------------------------------------------------------------------
<S>     <C>                     <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>
14.2    Service Area Based on      1            1            1            1            1                                      12
         Frequency Assignment
14.3    Service Area mapping       1            1            1            1            1                                      12
         using guard band
14.4    2 Satellite position       1            1            1            1            1                                      12
         determination using
         differential delay

        SOFTWARE LICENCE

                                                                                                                Included in Hardware

        OPTIONS
</TABLE>
<PAGE>   1021
                                    SHEET 1

SWITCH EQUIPMENT LIST

<TABLE>
<CAPTION>
                                  SAN          SAN          SAN          SAN         SAN          SAN          SAN          SAN
ITEM    DESCRIPTION           FOR ICO-NET    FOR USA        FOR          FOR       FOR SOUTH    FOR INDIA    FOR CHILE   FOR BRAZIL
NO.                                          (TYPE 2)    AUSTRALIA     GERMANY      AFRICA      (TYPE 2)     (TYPE 2)     (TYPE 2)
                                                         (TYPE 1)      (TYPE 1)    (TYPE 1)
                              ------------------------------------------------------------------------------------------------------
                                 Q'ty         Q'ty         Q'ty          Q'ty        Q'ty         Q'ty         Q'ty         Q'ty
------------------------------------------------------------------------------------------------------------------------------------
<S>     <C>                     <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>
        HARDWARE

1       MSSC hardware
1.1     GSS Cabinet
1.1.1   GSS-1
1.1.1.1  TSM magazine (dupl)                    5            5            5            5            5            5            5
1.1.1.2  TSM - Cabinet incl.                    2            2            2            2            2            2            2
          cables
1.1.1.3  RP - pair included in                  1            1            1            1            1            1            1
          TSM-cabinet

1.1.2   GSS-2
1.1.2.1  SPM magazine 4K (dupl)                 1            1            1            1            1            1            1
1.1.2.2  SPM magazine 8K (dupl)                 0            0            0            0            0            0            0

1.1.3   GSS-3
1.1.3.1  Clock Modules (triplet)                1            1            1            1            1            1            1
          for TSM size<14k
1.1.3.2  Clock Modules (triplet)                0            0            0            0            0            0            0
          for TSM size<14k and
          <32k
1.1.3.3  ICM magazine                           2            2            2            2            2            2            2
1.1.3.4  RSM magazine                           1            1            1            1            1            1            1
1.1.3.5  RCF                                    1            1            1            1            1            1            1
1.1.3.6  SPM - Cabinet incl.
         cables                                 1            1            1            1            1            1            1
1.1.3.7  RP - pair in CLM -
         cabinet                                1            1            1            1            1            1            1
1.1.3.8  CLM - Cabinet incl.
         cables                                 1            1            1            1            1            1            1

1.2     TSS Cabinet
1.2.1   TSS-1
1.2.1.1  ETC magazine incl. 2 ETC               5            6            6            6            5            5            5
1.2.1.2  ETC board                             29           37           37           37           29           29           29
1.2.1.3  ETC - Cabinet incl.
         cables                                 1            1            1            1            1            1            1
1.2.1.4  RP - Pair in ETC cabinet               3            3            3            3            3            3            3
1.2.1.5  EC256 magazine incl.
         2 EC                                   0            0            0            0            0            0            0
1.2.1.6  EC256 Board                            0            0            0            0            0            0            0
</TABLE>

<TABLE>
<CAPTION>
                                   SAN         SAN          SAN          SAN         SAN          NMC           NMC        TOTAL
ITEM    DESCRIPTION            FOR MEXICO    FOR UAE        FOR       FOR CHINA    FOR KOREA     PRIMARY      BACK-UP
NO.                             (TYPE 2)     (TYPE 2)    INDONESIA     (TYPE 2)    (TYPE 1)
                                                          (TYPE 2)
                               -----------------------------------------------------------------------------------------------------
                                  Q'ty        Q'ty         Q'ty          Q'ty        Q'ty         Q'ty         Q'ty         Q'ty
------------------------------------------------------------------------------------------------------------------------------------
<S>     <C>                      <C>         <C>          <C>          <C>          <C>          <C>          <C>          <C>
        HARDWARE

1       MSSC hardware
1.1     GSS Cabinet
1.1.1   GSS-1
1.1.1.1  TSM magazine (dupl)        5           5            5            5            5                                      60
1.1.1.2  TSM - Cabinet incl.        2           2            2            2            2                                      24
          cables
1.1.1.3  RP - pair included in      1           1            1            1            1                                      12
          TSM-cabinet

1.1.2   GSS-2
1.1.2.1  SPM magazine 4K (dupl)     1           1            1            1            1                                      12
1.1.2.2  SPM magazine 8K (dupl)     0           0            0            0            0                                       0

1.1.3   GSS-3
1.1.3.1  Clock Modules (triplet)    1           1            1            1            1                                      12
          for TSM size<14k
1.1.3.2  Clock Modules (triplet)    0           0            0            0            0                                       0
          for TSM size<14k and
          <32k
1.1.3.3  ICM magazine               2           2            2            2            2                                      24
1.1.3.4  RSM magazine               1           1            1            1            1                                      12
1.1.3.5  RCF                        1           1            1            1            1                                      12
1.1.3.6  SPM - Cabinet incl.
          cables                    1           1            1            1            1                                      12
1.1.3.7  RP - pair in CLM -
          cabinet                   1           1            1            1            1                                      12
1.1.3.8  CLM - Cabinet incl.
          cables                    1           1            1            1            1                                      12

1.2     TSS Cabinet
1.2.1   TSS-1
1.2.1.1  ETC magazine incl.
          2 ETC                     5           5            5            5            6                                      64
1.2.1.2  ETC board                 29          29           29           29           37                                     380
1.2.1.3  ETC - Cabinet incl.
          cables                    1           1            1            1            1                                      12
1.2.1.4  RP - Pair in ETC
          cabinet                   3           3            3            3            3                                      36
1.2.1.5  EC256 magazine incl.
          2 EC                      0           0            0            0            0                                       0
1.2.1.6  EC256 Board                0           0            0            0            0                                       0
</TABLE>

                                     Page 1
<PAGE>   1022
                                    Sheet 1

<TABLE>
<CAPTION>

<C>       <S>                       <C>   <C>   <C>   <C>   <C>   <C>   <C>   <C>   <C>   <C>   <C>   <C>   <C>   <C>   <C>   <C>
1.2.1.7     ECC Board                      0     0     0     0     0     0     0     0     0     0     0     0                 0
1.2.1.8     ETC magazine incl.
          2 ETC for BCC, ECD               0     0     0     0     0     0     0     0     0     0     0     0                 0
1.2.1.9     ETC board for
          ECC, ECD                         0     0     0     0     0     0     0     0     0     0     0     0                 0
1.2.1.10    ETC/ECC/ECD -
          cabinet incl. cables             0     0     0     0     0     0     0     0     0     0     0     0                 0
1.2.1.11    RP - Pair in BTC/
          ECC/ECD - cabinet                0     0     0     0     0     0     0     0     0     0     0     0                 0

1.2.2     TSS-2
1.2.2.1     ECHO magazine
          incl. 4EC                        3     3     3     3     3     3     3     3     3     3     3     3                36
1.2.2.2     RP Pairs for Echo
          Cancelling                       1     1     1     1     1     1     1     1     1     1     1     1                12

1.2.2.3     Echo Canceller
          Cabinets                         1     1     1     1     1     1     1     1     1     1     1     1                12

1.2.3     TSS-3                                                                                                                0
1.2.3.1     CCD 32 channels                4     4     4     4     4     4     4     4     4     4     4     4                48
1.2.3.2     Digital Announcement
          M/c, AST-DR                      2     2     2     2     2     2     2     2     2     2     2     2                24
1.2.3.3     RSM, Remote Sub-
          scriber Multiplexor              1     1     1     1     1     1     1     1     1     1     1     1                12
1.2.3.4     CSK-D, Code Sender
          Keyset Digital                   2     2     2     2     2     2     2     2     2     2     2     2                24
1.2.3.5     ETC magazine incl.
          2 ETC                            0     0     0     0     0     0     0     0     0     0     0     0                 0
1.2.3.6     EC256 magazine
          incl. 2ECC                       0     0     0     0     0     0     0     0     0     0     0     0                 0
1.2.3.7     ECC magazine incl.
          2 ECC                            0     0     0     0     0     0     0     0     0     0     0     0                 0
1.2.3.8     Cabinet for CCD,
          AST-DR, RSM, CSK-D,              2     2     2     2     2     2     2     2     2     2     2     2                24
1.2.3.9     ECC, ECD, ETC.
          incl. cables                                                                                                         0

1.2.3.10    RO-Pair in CCD -
          cabinet                          2     2     2     2     2     2     2     2     2     2     2     2                24
1.2.3.11    Test connection
          interface, KEP Box               1     1     1     1     1     1     1     1     1     1     1     1                12
1.2.3.12    Code answering
          magazine, CANS                   1     1     1     1     1     1     1     1     1     1     1     1                12
1.2.3.13    PCD for Code answer-
          ing or Test
          connection                       2     2     2     2     2     2     2     2     2     2     2     2                24
1.2.3.14    Key Tone Receiver,KR           0     0     0     0     0     0     0     0     0     0     0     0                 0
1.2.3.15    Cabinet for CANS,
          TCON, KR incl. cables            1     1     1     1     1     1     1     1     1     1     1     1                12
1.2.3.16    RP-Pair in TCON-
          cabinet                          2     2     2     2     2     2     2     2     2     2     2     2                24

1.3       CPS Cabinet
1.3.1     Central processor
          group, APZ212 and
          interface for 8 RP-
          buses

</TABLE>

                                     Page 2
<PAGE>   1023
                                    Sheet 1

<TABLE>
<CAPTION>

<C>       <S>                       <C>  <C>   <C>   <C>   <C>   <C>   <C>   <C>   <C>   <C>   <C>   <C>   <C>   <C>   <C>   <C>
1.3.1.1     APZ 21220                      1     1     1     1     1     1     1     1     1     1     1     1                 12
1.3.1.2     PS/DS Memory
          (4MW Dupl.)                      0     0     0     0     0     0     0     0     0     0     0     0                  0

1.3.1.3     PS Memory
          (16MW Dupl.)                     0     0     0     0     0     0     0     0     0     0     0     0                  0
1.3.1.4     DS Memory
          (16MW Dupl.)                     0     0     0     0     0     0     0     0     0     0     0     0                  0
1.3.1.5     PS Memory
          (64MW Dupl.)                     1     1     1     1     1     1     1     1     1     1     1     1                 12
1.3.1.6     DS Memory
          (64MW Dupl.)                     2     2     2     2     2     2     2     2     2     2     2     2                 24
1.3.1.7     RP Bus Interface
          Boards (additional)              0     0     0     0     0     0     0     0     0     0     0     0                  0
1.3.1.8     Cabinet for APZ
          incl. cables                     2     2     2     2     2     2     2     2     2     2     2     2                 24

1.4       IOG Cabinet
1.4.1       IOG 11B5 (CP5) in-
          cluding 8 MB WSU and
          2 HDD and 1 FDD per
          side including Alarm
          interface for 8 ex-
          ternal Alarms and one
          Alarm Panel and CPT
          connection                      1     1     1     1     1     1     1     1     1     1     1     1                 12
1.4.2      IOG 11B5 (CP5) ex-
          tension group includ-
          ing 8 MB WSU and 2HDD
          and 1 FDD per side
1.4.3      X25 Cable Sets
1.4.4      V24I1, 4 V.24 inter-
          faces incl. control
          equipment for 8V.24-
          interfaces (alt. V.26)          2     2     2     2     2     2     2     2     2     2     2     2                 24
1.4.5      Cabinet for IOG-11             4     4     4     4     4     4     4     4     4     4     4     4                 48
1.5       MTG Cabinet
1.5.1      Magnetic Tape Group
          MTG10 incl. basic
          equipment and 1 TEAC
          MT-1000                         1     1     1     1     1     1     1     1     1     1     1     1                 12
1.5.2      Cabinet for MTG 10             1     1     1     1     1     1     1     1     1     1     1     1                 12

1.6       GIWU Cabinet
1.6.1      Interworking Unit
          (WU) For 15 channels            3     3     3     3     3     3     3     3     3     3     3     3                 36
1.6.2      Cabinet for IWU
          incl. cables                    1     1     1     1     1     1     1     1     1     1     1     1                 12
1.6.3      O&M Terminal for IWO           0     0     0     0     0     0     0     0     0     0     0     0                  0

1.7       CCS Cabinet
1.7.1      C7 signalling terminal        20    32    32    32    20    20    20    20    20    20    20    32                288
1.7.2      PCD-D for signalling
          terminal                        4     8     8     8     4     4     4     4     4     4     4     8                 64

</TABLE>

                                     Page 3
<PAGE>   1024
                                    Sheet 1

<TABLE>
<CAPTION>
<S>    <C>                      <C> <C>     <C>   <C>     <C>  <C>     <C>  <C>     <C>  <C>     <C>  <C>     <C>  <C>     <C>  <C>
1.7.3   Cabinet for C7 -             1       2       2     2      1     1      1      1     1     1     1      2                 16
       terminals incl. cables
1.7.4   RP - Pair in C7 cabinet     10      16      16    16     10    10     10     10    10    10    10     16                144

1.8    WORK STATION
1.8.1   Visual Display               2       2       2     2      2     2      2      2     2     2     2      2                 24
1.8.2   Printer                      2       2       2     2      2     2      2      2     2     2     2      2                 24
1.8.3   Alarm Panel                  1       1       1     1      1     1      1      1     1     1     1      1                 12

2      HPN                           1       1       1     1      1     1      1      1     1     1     1      1                 12
2.1    Sun Ultra 2/ 1200 Server      2       2       2     2      2     2      2      2     2     2     2      2                 24
       with SS#7 interface
       board including 200MHz,
       64Mb RAM, 2.1 Gbyte Disk
       or equivalent system
2.2    HPN Transmit Channel Unit     5       5       5     5      5     5      5      5     5     5     5      5                 60
2.3    HPN Acknowledgement          10      10      10    10     10    10     10     10    10    10    10     10                120
       Channel Unit
2.4    Power Supply                  4       4       4     4      4     4      4      4     4     4     4      4                 48
2.5    IF distribution (supports     1       1       1     1      1     1      1      1     1     1     1      1                 12
       dual polarization)
2.6    Fan Tray                      1       1       1     1      1     1      1      1     1     1     1      1                 12
2.7    12 port Ethernet Hub          2       2       2     2      2     2      2      2     2     2     2      2                 24
2.8    Rack Mounting                 1       1       1     1      1     1      1      1     1     1     1      1                 12

3      AuC/EIR (capacity for      1                                                                                               1
       500k subs)

4      HLR for maximum 500K       1                                                                                               1
       subscribers
4.1     Trunk and Signalling      1                                                                                               1
       hardware
4.2     Central Processor         1                                                                                               1
       hardware
4.3     Input/Output & Mag.       1                                                                                               1
       Tape Group hardware
4.4     Miscellaneous             1                                                                                               1

5      DC Non-break System
       (AC/DC Converter with
       2-hour battery)
5.1    Hardware                   2  1       1       1     1      1     1      1      1     1     1     1      1                 14

6      OSS (main plus back-
       up)
6.1    HW Conf 3 (3 servers
       + 1 work station)                                                                                            1       1     2

</TABLE>

                                     Page 4

<PAGE>   1025
                                    Sheet 1

<TABLE>
<CAPTION>
<S>    <C>                    <C>   <C>    <C>     <C>     <C>  <C>     <C>  <C>     <C>  <C>     <C>  <C>    <C>  <C>    <C> <C>
6.2    Work Station                  1       1       1     1      1     1      1      1     1     1     1      1                  12
6.3    Disk mirror conf 3                                                                                           1      1   1 Lot
6.4    Integration fee conf 3                                                                                       1      1   1 Lot

7      DOCUMENTATION           incl. incl.  incl.  incl.   incl. incl.  incl. incl.  incl. incl.  incl. incl. incl.            incl.

8      SPARES
8.1    MSSC                          1       1       1     1      1     1      1      1     1     1     1      1                 12
8.2    HLR                       1                                                                                                1
8.3    DC Non-break System       2   1       1       1     1      1     1      1      1     1     1     1      1                 14

9      OSS
9.1    Maps for NSP                                                                                                 1      1      2
9.2    Remote Access set-up          1       1       1     1      1     1      1      1     1     1     1      1                 12

10     ILR IS-41
10.1   ILR FOR IS.41-ICO          1                                                                                               1
10.2   DC Non-break System for    1                                                                                               1
       item 10.1
10.3   ILR FOR ICO-IS.41          1                                                                                               1
10.4   DC Non-break System for    1                                                                                               1
       item 10.3

11     TRILOGUE INFINITY
11.1   Hardware and Software
       Licence (170k subs
       stage 1=one-third
       capacity)
11.1.1 INfinity Base Hardware     1                                                                                               1
11.1.2 Multi-Media Units
       (Telephony Servers)        1                                                                                               1
11.1.3 Messaging & Storage
       Units (Message Servers)    1                                                                                               1
11.1.4 SS#7 Network Signaling     1                                                                                               1
        (Redundant)
11.1.5 INfinity SMSC              1                                                                                               1
11.1.6 Fax Application            1                                                                                               1
11.1.7 E-mail                     1                                                                                               1
11.1.8 Interface to
       Administration Host        1                                                                                               1
11.1.9 Interface to Billing
       Host                       1                                                                                               1
11.2   DC Non-break System        1                                                                                               1
        (with spare)
11.3   Spares                     1                                                                                               1

12     LEGAL INTERCEPTION

</TABLE>

                                     Page 5
<PAGE>   1026
                                    Sheet 1

<TABLE>
<S>  <C>                             <C>       <C>      <C>      <C>      <C>      <C>      <C>      <C>      <C>      <C>
12.1 LIAS                                         1        1        1        1        1        1        1        1        1
12.3 LIMS                               1
12.3 Monitoring center back end         1
     system for testing

13   PCS/HPN Modem
13.1 HPN PCS Modem                                1        1        1        1        1        1        1        1        1

     SOFTWARE LICENCE

1    MSSC                                      35 ETCs  45 ETCs  45 ETCs  45 ETCs  35 ETCs  35 ETCs  35 ETCs  35 ETCs  35 ETCs

2    HPN                                          1        1        1        1        1        1        1        1        1

3    AuC/EIR Software 50k subs          1

4    HLR Software for 50k subs          1

5    OSS
5.1  Features (AuC/EIR alarm
     handling, MXE alarm, Telnet)
5.2  Text file alarm adaption
5.3  License fee conf 3
5.4  MSSC, HLR, ILR connection fee

6.   ILR IS-41
6.1  Software Licence for IS.41-ICO  50k subs
6.2  Software Licence for ICO-IS.41  50k subs

7    Trilogue INfinity                  1

8    Legal Interception                 1

9    PCS/HPN Modem                      1

     OPTIONS

4    GPC-BASED PDC-ICO
4.1  GPC PDC to ICO ILR                 1
     Hardware & Software
</TABLE>

<TABLE>
<S>  <C>                             <C>       <C>     <C>       <C>      <C>     <C>
12.1 LIAS                               1         1        1                         12
12.3 LIMS                                                                             1
12.3 Monitoring center back end                                                       1
     system for testing

13   PCS/HPN Modem
13.1 HPN PCS Modem                      1         1        1                         12

     SOFTWARE LICENCE

1    MSSC                            35 ETCs  35 ETCs  45 ETCs                    460 ETCs

2    HPN                                1         1        1                         12

3    AuC/EIR Software 50k subs                                                        1

4    HLR Software for 50k subs                                                        1

5    OSS
5.1  Features (AuC/EIR alarm                                        2                 2
     handling, MXE alarm, Telnet)
5.2  Text file alarm adaption                                       1        1        2
5.3  License fee conf 3                                             1        1        2
5.4  MSSC, HLR, ILR connection fee                                  1                 1

6.   ILR IS-41
6.1  Software Licence for IS.41-ICO                                                50k subs
6.2  Software Licence for ICO-IS.41                                                50k subs

7    Trilogue INfinity                                                                1

8    Legal Interception                                                               1

9    PCS/HPN Modem                                                                    1

     OPTIONS

4    GPC-BASED PDC-ICO
4.1  GPC PDC to ICO ILR
     Hardware & Software
</TABLE>

                                     Page 6

<PAGE>   1027
                                    Sheet 1

<TABLE>
<S>  <C>                             <C>       <C>      <C>      <C>      <C>      <C>      <C>      <C>      <C>      <C>
4.2  AXE 10 based IMSC Hardware         1
     & Software
4.3  Software Licence                   1

     subtotal of above items 4.1,
     4.2 and 4.3
     For 50,000 subscribers             1
     software licence
     For 100,000 subscribers
     software licence
     For 200,000 subscribers
     software licence

5    GPC-BASED ICO-PDC
5.1  GPC ICO to PDC ILR                 1
     Hardware & Software
5.2  Software Licence                   1

     subtotal of above items 5.1 and
     5.2
     For 50,000 subscribers             1
     software licence
     For 100,000 subscribers
     software licence
     For 200,000 subscribers
     software licence

6    GPC-BASED GSM-ICO
6.1  GPC GSM to ICO ILR                 1
     Hardware & Software
6.2  Software Licence                   1

     subtotal of above items 6.1 and
     6.2
     For 50,000 subscribers             1
     software licence
     For 100,000 subscribers
     software licence
     For 200,000 subscribers
     software licence
</TABLE>

<TABLE>
<S>  <C>                             <C>       <C>      <C>      <C>      <C>      <C>
4.2  AXE 10 based IMSC Hardware
     & Software
4.3  Software Licence

     subtotal of above items 4.1,                                                      1
     4.2 and 4.3
     For 50,000 subscribers
     software licence
     For 100,000 subscribers
     software licence
     For 200,000 subscribers
     software licence

5    GPC-BASED ICO-PDC
5.1  GPC ICO to PDC ILR
     Hardware & Software
5.2  Software Licence

     subtotal of above items 5.1 and                                                   1
     5.2
     For 50,000 subscribers
     software licence
     For 100,000 subscribers
     software licence
     For 200,000 subscribers
     software licence

6    GPC-BASED GSM-ICO
6.1  GPC GSM to ICO ILR
     Hardware & Software
6.2  Software Licence

     subtotal of above items 6.1 and
     6.2
     For 50,000 subscribers                                                            1
     software licence
     For 100,000 subscribers
     software licence
     For 200,000 subscribers
     software licence
</TABLE>

                                     Page 7

<PAGE>   1028
TNM EQUIPMENT LIST

<TABLE>
<CAPTION>
                                                                         SAN       SAN       SAN        SAN        SAN        SAN
                                                              SAN        FOR       FOR    FOR SOUTH     FOR        FOR        FOR
ITEM NO.  DESCRIPTION                             FOR ICO-  FOR USA   AUSTRALIA  GERMANY    AFRICA     INDIA      CHILE      BRAZIL
                                                    NET     (TYPE 2)  (TYPE 1)   (TYPE 1)  (TYPE 1)   (TYPE 2)   (TYPE 2)   (TYPE 2)
                                                  ----------------------------------------------------------------------------------
                                                    Q'TY      Q'TY      Q'TY      Q'TY      Q'TY       Q'TY       Q'TY        Q'TY
------------------------------------------------------------------------------------------------------------------------------------
<S>       <C>                                     <C>       <C>       <C>        <C>      <C>        <C>        <C>        <C>
          HARDWARE

1         TERRESTRIAL NETWORK MANAGEMENT (TNM)

1.1       TNM COMPUTER (RPC)                                   1          1         1         1          1          1          1
1.1.1     MMI Sparc Station 5 including 20"                    2          2         2         2          2          2          2
          Monitor, Graphics Adaptor, 1.44 MB
          FDD, 64MB MM, 1GB HD, Ethernet
          interface 10BT & 100BT and cables
1.1.2     Sparc 1000 with 2 processors, 512MB                  2          2         2         2          2          2          2
          MM, 5GB HD, Ethernet Interfaces, 8mm
          Tape Drive and CD ROM Drive
1.1.3     E1 Interface                                         2          2         2         2          2          2          2

1.2       HI SPEED PRINTER -HP LASERJET 4MV                    1          1         1         1          1          1          1

1.3       ETHERNET HUBS/ROUTERS AND ACCESSORIES                1          1         1         1          1          1          1

2         VOCODER/MUX

2.1       VOCODER/MUX UNIT                                     1          1         1         1          1          1          1
2.1.1     Vocoder/Mux Card                                    50         50        50        50         50         50         50
2.1.2     Control Card                                         7          7         7         7          7          7          7
2.1.3     19" 6RU Shelf                                        7          7         7         7          7          7          7
2.1.4     Power Supply Shelf                                   7          7         7         7          7          7          7
2.1.5     Fan Unit                                             7          7         7         7          7          7          7
2.1.6     19" C&C Rack                                         4          4         4         4          4          4          4
2.1.7     Royality                                             1          1         1         1          1          1          1

2.2       INSTALLATION MATERIALS                               1          1         1         1          1          1          1

3         DIGITAL COMMUNICATION NETWORK

3.1       SAN - 2 PORT

3.1.1     Switching Hub/Router                                 1                                         1          1          1
3.1.1.1   Ethernet Switch                                      2                                         2          2          2
3.1.1.2   Dual Ethernet Port Cards (Included in
          3.1.1.1)
3.1.1.3   Hub 10Bt                                             4                                         4          4          4
3.1.2     Compression
3.1.2.1   Compression                                          4                                         4          4          4
</TABLE>

<TABLE>
<CAPTION>
                                                                           SAN
                                                     SAN        SAN        FOR        SAN        SAN       NMC      NMC
ITEM NO.  DESCRIPTION                             FOR MEXICO  FOR UAE   INDONESIA  FOR CHINA  FOR KOREA  PRIMARY  BACK-UP  TOTAL
                                                   (TYPE 2)   (TYPE 2)  (TYPE 2)   (TYPE 2)   (TYPE 1)
                                                  ------------------------------------------------------------------------------
                                                     Q'TY       Q'TY      Q'TY       Q'TY       Q'TY      Q'TY     Q'TY    Q'TY
--------------------------------------------------------------------------------------------------------------------------------
<S>       <C>                                     <C>         <C>       <C>        <C>        <C>        <C>      <C>      <C>
          HARDWARE

1         TERRESTRIAL NETWORK MANAGEMENT (TNM)

1.1       TNM COMPUTER (RPC)                          1          1          1          1          1                         12
1.1.1     MMI Sparc Station 5 including 20"           2          2          2          2          2                         24
          Monitor, Graphics Adaptor, 1.44 MB
          FDD, 64MB MM, 1GB HD, Ethernet
          interface 10BT & 100BT and cables
1.1.2     Sparc 1000 with 2 processors, 512MB         2          2          2          2          2                         24
          MM, 5GB HD, Ethernet Interfaces, 8mm
          Tape Drive and CD ROM Drive
1.1.3     E1 Interface                                2          2          2          2          2                         24

1.2       HI SPEED PRINTER -HP LASERJET 4MV           1          1          1          1          1                         12

1.3       ETHERNET HUBS/ROUTERS AND ACCESSORIES       1          1          1          1          1                         12

2         VOCODER/MUX

2.1       VOCODER/MUX UNIT                            1          1          1          1          1                         12
2.1.1     Vocoder/Mux Card                           50         50         50         50         50                        600
2.1.2     Control Card                                7          7          7          7          7                         84
2.1.3     19" 6RU Shelf                               7          7          7          7          7                         84
2.1.4     Power Supply Shelf                          7          7          7          7          7                         84
2.1.5     Fan Unit                                    7          7          7          7          7                         84
2.1.6     19" C&C Rack                                4          4          4          4          4                         48
2.1.7     Royality                                    1          1          1          1          1                         12

2.2       INSTALLATION MATERIALS                      1          1          1          1          1                         12

3         DIGITAL COMMUNICATION NETWORK

3.1       SAN - 2 PORT

3.1.1     Switching Hub/Router                        1          1          1          1          1                          8
3.1.1.1   Ethernet Switch                             2          2          2          2          2                         16
3.1.1.2   Dual Ethernet Port Cards (Included in
          3.1.1.1)
3.1.1.3   Hub 10t                                     4          4          4          4          4                         32
3.1.2     Compression
3.1.2.1   Compression                                 4          4          4          4          4                         32
</TABLE>

<PAGE>   1029

TNM EQUIPMENT LIST
<TABLE>
<CAPTION>
                                                                       SAN       SAN        SAN
                                                            SAN        FOR       FOR     FOR SOUTH     SAN        SAN        SAN
                                                FOR ICO-  FOR USA   AUSTRALIA  GERMANY    AFRICA    FOR INDIA  FOR CHILE  FOR BRAZIL
ITEM                                              NET     (TYPE 2)  (TYPE 1)   (TYPE 1)  (TYPE 1)   (TYPE 2)   (TYPE 2)    (TYPE 2)
NO.        DESCRIPTION                            Q'TY      Q'TY      Q'TY       Q'TY      Q'TY       Q'TY       Q'TY        Q'TY
------------------------------------------------------------------------------------------------------------------------------------
<S>        <C>                                  <C>       <C>       <C>        <C>       <C>        <C>        <C>        <C>
3.1.3      Installation Materials
3.1.3.1    19" Rack                                          1                                          1          1          1
3.1.3.2    Cables                                            1                                          1          1          1
3.1.3.3    Hardware                                          1                                          1          1          1

3.2        SAN - 3 PORTS

3.2.1      Switching Hub/Router                                         1         1          1
3.2.1.1    Ethernet Switch                                              2         2          2
3.2.1.2    Dual Ethernet Port Cards (Included
           in 3.2.1.1)
3.2.1.3    Hub 10Bt                                                     4         4          4
3.2.2      Compression
3.2.2.1    Compression                                                  7         7          7
3.2.3      Installation Materials
3.2.3.1    19" Rack                                                     1         1          1
3.2.3.2    Cables                                                       1         1          1
3.2.3.3    Hardware                                                     1         1          1

3.3        NETWORK MANAGEMENT CENTRE (NMC)

3.3.1      DCN Hub/Router
3.3.1.1    Dual Ethernet Port Cards (Refer to
           3.3.3.4)
3.3.1.2    Hub 10Bt
3.3.2      Compression
3.3.2.1    Compression
3.3.3      Installation Materials
3.3.3.1    19" Rack
3.3.3.2    Cables
3.3.3.3    Hardware
3.3.3.4    Mux Cards
3.3.3.5    RPN/RPC Processor
3.3.3.6    19" 6RU Shelf
3.3.3.7    RPC Power Supply
3.3.3.8    Fan Units

4          DOCUMENTATION                           1         1          1         1          1          1          1          1

5          SPARES
5.1        Vocoder/Mux
5.1.1      Vocoder/Mux Card                        9
5.1.2      Control Card                            3
5.1.3      Power Supply Shelf                      3
5.1.4      Fan Unit                                3
5.2        Digital Communication Network
5.2.1      SAN
5.2.1.1    Switching Hub/Router
5.2.1.1.1  Ethernet Switch                         6
</TABLE>

<TABLE>
<CAPTION>
                                                                         SAN                             NMC      NMC
                                                   SAN        SAN        FOR        SAN        SAN     PRIMARY  BACK-UP  TOTAL
                                                FOR MEXICO  FOR UAE   INDONESIA  FOR CHINA  FOR KOREA
ITEM                                             (TYPE 2)   (TYPE 2)  (TYPE 2)   (TYPE 2)   (TYPE 1)
NO.        DESCRIPTION                             Q'TY       Q'TY      Q'TY       Q'TY       Q'TY      Q'TY     Q'TY    Q'TY
------------------------------------------------------------------------------------------------------------------------------
<S>        <C>                                  <C>         <C>       <C>        <C>        <C>        <C>      <C>      <C>
3.1.3      Installation Materials
3.1.3.1    19" Rack                                 1          1          1          1                                     8
3.1.3.2    Cables                                   1          1          1          1                                     8
3.1.3.3    Hardware                                 1          1          1          1                                     8

3.2        SAN - 3 PORTS

3.2.1      Switching Hub/Router                                                                 1                          4
3.2.1.1    Ethernet Switch                                                                      2                          8
3.2.1.2    Dual Ethernet Port Cards (Include
           in 3.2.1.1)
3.2.1.3    Hub 10Bt                                                                             4                         16
3.2.2      Compression
3.2.2.1    Compression                                                                          7                         28
3.2.3      Installation Materials
3.2.3.1    19" Rack                                                                             1                          4
3.2.3.2    Cables                                                                               1                          4
3.2.3.3    Hardware                                                                             1                          4

3.3        NETWORK MANAGEMENT CENTRE (NMC)                                                                1        1       2

3.3.1      DCN Hub/Router
3.3.1.1    Dual Ethernet Port Cards (Refer to
           3.3.3.4)
3.3.1.2    Hub 10Bt                                                                                       2        2       4
3.3.2      Compression
3.3.2.1    Compression                                                                                    2        2       4
3.3.3      Installation Materials
3.3.3.1    19" Rack                                                                                       1        1       2
3.3.3.2    Cables                                                                                         1        1       2
3.3.3.3    Hardware                                                                                       1        1       2
3.3.3.4    Mux Cards                                                                                      5        5      10
3.3.3.5    RPN/RPC Processor                                                                              2        2       4
3.3.3.6    19" 6RU Shelf                                                                                  2        2       4
3.3.3.7    RPC Power Supply                                                                               2        2       4
3.3.3.8    Fan Units                                                                                      2        2       4

4          DOCUMENTATION                            1          1          1          1          1         1        1      15

5          SPARES
5.1        Vocoder/Mux
5.1.1      Vocoder/Mux Card
5.1.2      Control Card
5.1.3      Power Supply Shelf
5.1.4      Fan Unit
5.2        Digital Communication Network
5.2.1      SAN
5.2.1.1    Switching Hub/Router
5.2.1.1.1  Ethernet Switch
</TABLE>
<PAGE>   1030
TNM EQUIPMENT LIST
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
                                              SAN          SAN          SAN          SAN          SAN          SAN         SAN
                                 FOR          FOR          FOR          FOR          FOR          FOR          FOR         FOR
ITEM       DESCRIPTION         ICO-NET        USA       AUSTRALIA     GERMANY   SOUTH AFRICA     INDIA        CHILE       BRAZIL
 NO.                                        (TYPE 2)     (TYPE 1)     (TYPE 1)     (TYPE 1)     (TYPE 2)     (TYPE 2)    (TYPE 2)
                             ------------------------------------------------------------------------------------------------------
                                Q'TY          Q'TY         Q'TY         Q'TY         Q'TY         Q'TY         Q'TY        Q'TY
-----------------------------------------------------------------------------------------------------------------------------------
<S>        <C>                  <C>           <C>          <C>          <C>          <C>          <C>          <C>         <C>
5.2.1.1.2  Dual Ethernet Port
           Cards(included in
           5.2.1.1.1)
5.2.1.1.3  Hub 10Bt              6
5.2.1.2    Compression
5.2.1.2.1  Compression           3

6          INTERMEDIATE
           DISTRIBUTION FRAME                  1            1            1            1            1            1           1

           SOFTWARE LICENCE

1          TNM Software Licence                1            1            1            1            1            1           1
2          Solaris Software
           Licences for TNM                    1            1            1            1            1            1           1
2.1        Solaris Operating
           System with Media                                1
2.2        Solaris Operating
           System without Media                1                         1            1            1            1           1
2.3        Solstice - Runtime                  1            1            1            1            1            1           1
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
                                SAN          SAN          SAN         SAN          SAN          NMC           NMC        TOTAL
ITEM       DESCRIPTION          FOR          FOR          FOR         FOR          FOR        PRIMARY       BACK-UP
 NO.                          MEXICO         UAE       INDONESIA     CHINA        KOREA
                             (TYPE 2)     (TYPE 2)     (TYPE 2)     (TYPE 2)     (TYPE 1)
                             ------------------------------------------------------------------------------------------------------
                               Q'TY         Q'TY         Q'TY         Q'TY         Q'TY         Q'TY          Q'TY        Q'TY
-----------------------------------------------------------------------------------------------------------------------------------
<S>        <C>                 <C>          <C>          <C>          <C>          <C>          <C>           <C>         <C>
5.2.1.1.2  Dual Ethernet Port
           Cards(included in
           5.2.1.1.1)
5.2.1.1.3  Hub 10Bt
5.2.1.2    Compression
5.2.1.2.1  Compression

6          INTERMEDIATE
           DISTRIBUTION FRAME   1            1            1            1            1                                      12

           SOFTWARE LICENCE

1          TNM Software Licence 1            1            1            1            1                                      12
2          Solaris Software
           Licences for TNM     1            1            1            1            1            1             1
2.1        Solaris Operating
           System with Media                                                        1                                       2
2.2        Solaris Operating
           System without Media 1            1            1            1                                                   10
2.3        Solstice - Runtime   1            1            1            1            1            1             1           14
</TABLE>

                                          Commercial in Confidence Page 25 of 30
22/10/97
<PAGE>   1031
NMC/SRMC/SAN-OSS EQUIPMENT LIST
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
                                              SAN          SAN          SAN          SAN          SAN          SAN         SAN
                                 FOR          FOR          FOR          FOR          FOR          FOR          FOR         FOR
ITEM       DESCRIPTION         ICO-NET        USA       AUSTRALIA     GERMANY   SOUTH AFRICA     INDIA        CHILE       BRAZIL
 NO.                                        (TYPE 2)     (TYPE 1)     (TYPE 1)     (TYPE 1)     (TYPE 2)     (TYPE 2)    (TYPE 2)
                             ------------------------------------------------------------------------------------------------------
                                Q'TY          Q'TY         Q'TY         Q'TY         Q'TY         Q'TY         Q'TY        Q'TY
-----------------------------------------------------------------------------------------------------------------------------------
<S>        <C>                  <C>           <C>          <C>          <C>          <C>          <C>          <C>         <C>
           HARDWARE

1          SAN-OSS subsystem
1.1        Server system                         1            1            1            1            1            1           1
1.1.1      Server machine
           (redundant)                           1            1            1            1            1            1           1
1.1.2      Workstation                           2            2            2            2            2            2           2
1.1.3      Printer                               1            1            1            1            1            1           1
1.2        Accommodation of
           Housekeeping Alarm                  1 set        1 set        1 set        1 set        1 set        1 set       1 set
1.2.1      Misc. Rack                            1            1            1            1            1            1           1
1.2.2      Alarm concentrater
           panel                                 1            1            1            1            1            1           1
1.3        Server Upgrade for
           Static SRMS                         1 set        1 set        1 set        1 set        1 set        1 set       1 set
1.4        Installation
           Materials (LAN cable)               1 set        1 set        1 set        1 set        1 set        1 set       1 set
1.5        Document                            1 lot        1 lot        1 lot        1 lot        1 lot        1 lot       1 lot

2          NMC

2.1        NMS subsystem at NMC
2.1.1      Server system
2.1.1.1    Server machine
           (redundant)
2.1.1.2    Workstation
2.1.1.3    Printer
2.1.2      Accommodation of
           Housekeeping Alarm
2.1.2.1    Misc. Rack
2.1.2.2    Alarm concentrater
           panel
2.2        SRMC subsystem at NMC
2.2.1      Server system
2.2.1.1    Server machine
           (redundant)
2.2.2      Server Upgrade for
           SRMC
2.3        Remote Testing
           Facility
2.3.1      Workstation
2.3.2      Dial-In Modem
2.4        Installation
           Materials (LAN cable)
2.5        Document

3          SPARE

3          Accommodation of
           Housekeeping Alarm
3.1        Alarm concentrator
           panel                                  1            1            1            1            1            1           1

           SOFTWARE LICENCE

           SUBTOTAL OF SOFTWARE
           LICENCE                                1            1            1            1            1            1           1
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
                                SAN          SAN          SAN         SAN          SAN          NMC           NMC        TOTAL
ITEM       DESCRIPTION          FOR          FOR          FOR         FOR          FOR        PRIMARY       BACK-UP
 NO.                          MEXICO         UAE       INDONESIA     CHINA        KOREA
                             (TYPE 2)     (TYPE 2)     (TYPE 2)     (TYPE 2)     (TYPE 1)
                             ------------------------------------------------------------------------------------------------------
                               Q'TY         Q'TY         Q'TY         Q'TY         Q'TY         Q'TY          Q'TY        Q'TY
-----------------------------------------------------------------------------------------------------------------------------------
<S>        <C>                 <C>          <C>          <C>          <C>          <C>          <C>           <C>         <C>
           HARDWARE

1          SAN-OSS subsystem
1.1        Server system          1            1            1            1            1                                      12
1.1.1      Server machine
           (redundant)            1            1            1            1            1                                      12
1.1.2      Workstation            2            2            2            2            2                                      24
1.1.3      Printer                1            1            1            1            1                                      12
1.2        Accommodation of
           Housekeeping Alarm   1 set        1 set        1 set        1 set        1 set                                  12 sets
1.2.1      Misc. Rack             1            1            1            1            1                                      12
1.2.2      Alarm concentrater
           panel                  1            1            1            1            1                                      12
1.3        Server Upgrade for
           Static SRMS          1 set        1 set        1 set        1 set        1 set                                  12 sets
1.4        Installation
           Materials (LAN
           cable)               1 set        1 set        1 set        1 set        1 set                                  12 sets
1.5        Document             1 lot        1 lot        1 lot        1 lot        1 lot                                  12 lots

2          NMC

2.1        NMS subsystem at NMC
2.1.1      Server system                                                                         1 set         1 set        2 sets
2.1.1.1    Server machine
           (redundant)                                                                             1             1            2
2.1.1.2    Workstation                                                                             5             5           10
2.1.1.3    Printer                                                                                 1             1            2
2.1.2      Accommodation of
           Housekeeping Alarm                                                                    1 set         1 set        2 sets
2.1.2.1    Misc. Rack                                                                              1             1            2
2.1.2.2    Alarm concentrater
           panel                                                                                   1             1            2
2.2        SRMC subsystem at NMC                                                                 1 lot         1 lot        2 lots
2.2.1      Server system                                                                         1 set         1 set        2 sets
2.2.1.1    Server machine
           (redundant)                                                                             1             1            2
2.2.2      Server Upgrade for
           SRMC                                                                                  1 set         1 set        2 sets
2.3        Remote Testing
           Facility                                                                              1 set         1 set        2 sets
2.3.1      Workstation                                                                             1             1            2
2.3.2      Dial-In Modem                                                                           1             1            2
2.4        Installation
           Materials (LAN cable)                                                                 1 lot         1 lot        2 lots
2.5        Document                                                                              1 lot         1 lot        2 lots

3          SPARE                                                                                                            1 lot

3          Accommodation of
           Housekeeping Alarm
3.1        Alarm concentrator
           panel                  1            1            1            1            1            1            1             14

           SOFTWARE LICENCE

           SUBTOTAL OF SOFTWARE
           LICENCE                1            1            1            1            1            1            1           1 lot
</TABLE>

<PAGE>   1032
      SPECIAL TEST EQUIPMENT (STE) EQUIPMENT LIST
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
                                 SAN          SAN          SAN          SAN          SAN          SAN          SAN         SAN
                                 FOR          FOR          FOR          FOR          FOR          FOR          FOR         FOR
ITEM   DESCRIPTION             ICO-NET        USA       AUSTRALIA     GERMANY   SOUTH AFRICA     INDIA        CHILE       BRAZIL
 NO.                                        (TYPE 2)     (TYPE 1)     (TYPE 1)     (TYPE 1)     (TYPE 2)     (TYPE 2)    (TYPE 2)
                             ------------------------------------------------------------------------------------------------------
                                Q'TY         Q'TY         Q'TY         Q'TY         Q'TY         Q'TY         Q'TY         Q'TY
-----------------------------------------------------------------------------------------------------------------------------------
<S>    <C>                     <C>          <C>         <C>            <C>       <C>             <C>         <C>         <C>
       HARDWARE
1      AIR INTERFACE LOAD       2             1            1            1            1             1            1            1
       GENERATOR TESTER
       (for 150 Erlang
       Simultaneous Calls/25
       Z-Arcs)
1.1    Channel Unit Chassis     2
       (CUC)
1.2    CUC Chassis & Back       1
       plane
1.3    SPM                      5
1.4    MDC                      9
1.5    CDM                      2
1.6    CFM                      2
1.7    Base Module              1
1.8    Partial CMB              1
1.9    CMB Chassis &            1
       Backplane
1.10   G.703 Module             5
1.11   GRP                      2
1.12   CCP                      4
1.13   CAP                      4
1.14   STM (1 call/DSP)        14
1.15   Channel Manager Rack &   1
       Integration Materials
       (Fans, Cables, etc)
1.16   SAS Controller           1
       Workstation
1.17   Workstation SW License   1
1.18   24 Vdc, -48 Vdc Power    1
       Supply
1.19   Synchronization Source   1
IT IS CONFIRMED PRICE FOR L-
BAND (IF) INTERFACE. NO
INTERFACE TO RFT IS INCLUDED
AT THIS POINT. THE FOLLOWING
ITEMS TO BE PREPARED BY ICO.
(1) SAS CONTROLLER WORKSTATION
(2) WORKSTATION SW LICENCE
2      GSM Tester               2
3      Satellite Channel
         Simulator                            1            1            1            1            1            1            1
5      System Simulator         2
5.1    Partial CUC              1
5.2    CUC Chassis &            1
       Backplane
5.3    SPM                      3
5.4    MDM                      6
5.5    CDM                      2
5.6    CFM                      2
5.7    Base Module              1
5.8    Partial CMB              1
5.9    CMB Chassis & Bckplane   1
5.10   G.703 Module             3
5.11   GRP                      1
5.12   CCP                      1
5.13   CAP                      1
5.14   STM                      3
5.15   Channel Manager Rack &   1
       Integration Material
       (Fans, Cables, etc.)
5.16   24 Vdc, -48Vdc Power     1
       Supply
5.17   Synchronization Source   1

</TABLE>
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
                                SAN          SAN          SAN         SAN          SAN          NMC           NMC        TOTAL
ITEM   DESCRIPTION              FOR          FOR          FOR         FOR          FOR        PRIMARY       BACK-UP
 NO.                          MEXICO         UAE       INDONESIA     CHINA        KOREA
                             (TYPE 2)     (TYPE 2)     (TYPE 2)     (TYPE 2)     (TYPE 1)
                             ------------------------------------------------------------------------------------------------------
                               Q'TY         Q'TY         Q'TY         Q'TY         Q'TY         Q'TY         Q'TY         Q'TY
-----------------------------------------------------------------------------------------------------------------------------------
<S>    <C>                   <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>
       HARDWARE
1      AIR INTERFACE LOAD       1            1            1            1            1                                          14
       GENERATOR TESTER
       (for 150 Erlang
       Simultaneous Calls/25
       Z-Arcs)
1.1    Channel Unit Chassis
       (CUC)
1.2    CUC Chassis & Back
       plane
1.3    SPM
1.4    MDC
1.5    CDM
1.6    CFM
1.7    Base Module
1.8    Partial CMB
1.9    CMB Chassis &
       Backplane
1.10   G.703 Module
1.11   GRP
1.12   CCP
1.13   CAP
1.14   STM (1 call/DSP)
1.15   Channel Manager Rack &
       Integration Materials
       (Fans, Cables, etc)
1.16   SAS Controller
       Workstation
1.17   Workstation SW License
1.18   24 Vdc, -48 Vdc Power
       Supply
1.19   Synchronization Source
IT IS CONFIRMED PRICE FOR L-
BAND (IF) INTERFACE. NO
INTERFACE TO RFT IS INCLUDED
AT THIS POINT. THE FOLLOWING
ITEMS TO BE PREPARED BY ICO.
(1) SAS CONTROLLER WORKSTATION
(2) WORKSTATION SW LICENCE
2      GSM Tester                                                                                                               2
3      Satellite Channel
         Simulator              1            1            1            1            1                                          12
5      System Simulator                                                                                                         2
5.1    Partial CUC
5.2    CUC Chassis &
       Backplane
5.3    SPM
5.4    MDM
5.5    CDM
5.6    CFM
5.7    Base Module
5.8    Partial CMB
5.9    CMB Chassis & Bckplane
5.10   G.703 Module
5.11   GRP
5.12   CCP
5.13   CAP
5.14   STM
5.15   Channel Manager Rack &
       Integration Material
       (Fans, Cables, etc.)
5.16   24 Vdc, -48Vdc Power
       Supply
5.17   Synchronization Source
</TABLE>

<PAGE>   1033
      AX+B EQUIPMENT LIST
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
                                 SAN          SAN          SAN          SAN          SAN          SAN          SAN         SAN
                                 FOR          FOR          FOR          FOR          FOR          FOR          FOR         FOR
ITEM   DESCRIPTION             ICO-NET        USA       AUSTRALIA     GERMANY   SOUTH AFRICA     INDIA        CHILE       BRAZIL
 NO.                                        (TYPE 2)     (TYPE 1)     (TYPE 1)     (TYPE 1)     (TYPE 2)     (TYPE 2)    (TYPE 2)
                             ------------------------------------------------------------------------------------------------------
                                Q'TY         Q'TY         Q'TY         Q'TY         Q'TY         Q'TY         Q'TY         Q'TY
 -----------------------------------------------------------------------------------------------------------------------------------
<S>    <C>                    <C>           <C>          <C>          <C>          <C>          <C>          <C>         <C>
1      SAN TO SAN HANDOVER
       Hardware                               1            1            1            1            1            1            1
       Software Licence
2      LANGUAGE AND
       CHARACTER SET
       Hardware
       Software Licence
3      GEOGRAPHICAL
       LOCATION
       Hardware
       Software Licence
4      MULTIPLE LANGUAGE
       ANNOUNCEMENTS
       Note: The provision
       for 2 recorded
       announcement machines
       with capacity for
       1 hour of recording
       on each.
       Hardware
       Software Licence
5      EMERGENCY CALLS
       Hardware                               1            1            1            1            1            1            1
       Software Licence
6      FAX GROUP 3 OVER       See
       9.6 kpbs               Item 16
       Hardware                               1            1            1            1            1            1            1
       Software Licence
7      SPEECH FOLLOWED
       BY/ALTERNATIVE
       WITH DATA
       Hardware                               1            1            1            1            1            1            1
       Software Licence

</TABLE>
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
                                SAN          SAN          SAN         SAN          SAN          NMC           NMC        TOTAL
ITEM   DESCRIPTION              FOR          FOR          FOR         FOR          FOR        PRIMARY       BACK-UP
 NO.                          MEXICO         UAE       INDONESIA     CHINA        KOREA
                             (TYPE 2)     (TYPE 2)     (TYPE 2)     (TYPE 2)     (TYPE 1)
                             ------------------------------------------------------------------------------------------------------
                               Q'TY         Q'TY         Q'TY         Q'TY         Q'TY         Q'TY         Q'TY         Q'TY
-----------------------------------------------------------------------------------------------------------------------------------
<S>    <C>                   <C>          <C>          <C>          <C>          <C>          <C>           <C>          <C>
1      SAN TO SAN HANDOVER
       Hardware                  1            1            1            1            1                                     12
       Software Licence
2      LANGUAGE AND
       CHARACTER SET
       Hardware
       Software Licence
3      GEOGRAPHICAL
       LOCATION
       Hardware
       Software Licence
4      MULTIPLE LANGUAGE
       ANNOUNCEMENTS
       Note: The provision
       for 2 recorded
       announcement machines
       with capacity for
       1 hour of recording
       on each.
       Hardware
       Software Licence
5      EMERGENCY CALLS
       Hardware                  1            1            1            1            1                                     12
       Software Licence
6      FAX GROUP 3 OVER
       9.6 kpbs
       Hardware                  1            1            1            1            1                                     12
       Software Licence
7      SPEECH FOLLOWED
       BY/ALTERNATIVE
       WITH DATA
       Hardware                  1            1            1            1            1                                     12
       Software Licence
</TABLE>

<PAGE>   1034
AX+B EQUIPMENT LIST
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                   SAN          SAN          SAN          SAN          SAN          SAN          SAN         SAN
                                   FOR          FOR          FOR          FOR          FOR          FOR          FOR         FOR
ITEM   DESCRIPTION               ICO-NET        USA       AUSTRALIA     GERMANY   SOUTH AFRICA     INDIA        CHILE       BRAZIL
 NO.                                          (TYPE 2)     (TYPE 1)     (TYPE 1)     (TYPE 1)     (TYPE 2)     (TYPE 2)    (TYPE 2)
                             -------------------------------------------------------------------------------------------------------
                                  Q'TY          Q'TY         Q'TY         Q'TY         Q'TY         Q'TY         Q'TY        Q'TY
------------------------------------------------------------------------------------------------------------------------------------
<S>    <C>                        <C>           <C>          <C>          <C>          <C>          <C>          <C>         <C>
8      Circuit mode data          See Item 16
       (9.6 kpbs-38.4 kbps)

       Hardware                                  1            1            1            1            1            1           1
       Software Licence

9      HPN Privacy using
       encription

       Hardware
       Software Licence

10     Alternative satellite
       constellation

       Hardware

       Software Licence

11     Multi-SAN paging

       Hardware                                   1           1            1            1           1             1           1
       Software Licence

12     Diversity allocation
       capacity

       Hardware
       Software Licence

13     Addition and removal of
       diversity path allocation
       when such allocations
       become available or no
       longer available

       Hardware
       Software Licence

14     Soft decision decoding

       Hardware
       Software Licence

15     HPN Escalation with CLI

       Hardware
</TABLE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                   SAN          SAN          SAN         SAN          SAN          NMC           NMC        TOTAL
ITEM       DESCRIPTION             FOR          FOR          FOR         FOR          FOR        PRIMARY       BACK-UP
 NO.                              MEXICO        UAE       INDONESIA     CHINA        KOREA
                                 (TYPE 2)     (TYPE 2)     (TYPE 2)    (TYPE 2)     (TYPE 1)
                               -----------------------------------------------------------------------------------------------------
                                  Q'TY         Q'TY         Q'TY         Q'TY         Q'TY         Q'TY          Q'TY        Q'TY
------------------------------------------------------------------------------------------------------------------------------------
<S>    <C>                       <C>           <C>          <C>          <C>          <C>          <C>           <C>         <C>
8      Circuit mode data
       (9.6 kpbs-38.4 kbps)

       Hardware                   1             1            1            1            1                                     12
       Software Licence

9      HPN Privacy using
       encription

       Hardware
       Software Licence

10     Alternative satellite
       constellation

11     Multi-SAN paging

       Hardware                   1             1            1            1             1                                    12
       Software Licence

12     Diversity allocation
       capacity

       Hardware
       Software Licence

13     Addition and removal of
       diversity path allocation
       when such allocations
       become available or no
       longer available

       Hardware
       Software Licence

14     Soft decision decoding

       Hardware
       Software Licence

15     HPN Escalation with CLI

       Hardware
</TABLE>
<PAGE>   1035
AX+B EQUIPMENT LIST
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                   SAN          SAN          SAN          SAN          SAN          SAN          SAN         SAN
                                   FOR          FOR          FOR          FOR          FOR          FOR          FOR         FOR
ITEM   DESCRIPTION               ICO-NET        USA       AUSTRALIA     GERMANY   SOUTH AFRICA     INDIA        CHILE       BRAZIL
 NO.                                          (TYPE 2)     (TYPE 1)     (TYPE 1)     (TYPE 1)     (TYPE 2)     (TYPE 2)    (TYPE 2)
                             -------------------------------------------------------------------------------------------------------
                                  Q'TY          Q'TY         Q'TY         Q'TY         Q'TY         Q'TY         Q'TY        Q'TY
------------------------------------------------------------------------------------------------------------------------------------
<S>    <C>                        <C>           <C>          <C>          <C>          <C>          <C>          <C>         <C>
       Software Licence

16     Software/Hardware for
       High Speed Circuit
       Switched Data and Group
       3 Fax Services

       Hardware(16 CH/SAN)                      16           16           16           16           16           16          16
       Software Licence                         16           16           16           16           16           16          16
       (16 CH/SAN)
</TABLE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                   SAN          SAN          SAN         SAN          SAN          NMC           NMC        TOTAL
ITEM       DESCRIPTION             FOR          FOR          FOR         FOR          FOR        PRIMARY       BACK-UP
 NO.                              MEXICO        UAE       INDONESIA     CHINA        KOREA
                                 (TYPE 2)     (TYPE 2)     (TYPE 2)    (TYPE 2)     (TYPE 1)
                               -----------------------------------------------------------------------------------------------------
                                  Q'TY         Q'TY         Q'TY         Q'TY         Q'TY         Q'TY          Q'TY        Q'TY
------------------------------------------------------------------------------------------------------------------------------------
<S>    <C>                       <C>           <C>          <C>          <C>          <C>          <C>           <C>         <C>
       Software Licence

16     Software/Hardware for
       High Speed Circuit
       Switched Data and Group
       3 Fax Services

       Hardware(16 CH/SAN)        16            16           16           16           16                                    192
       Software Licence           16            16           16           16           16                                    192
       (16 CH/SAN)
</TABLE>
<PAGE>   1036

                        CHANGE ORDER NO: 2   ATTACHMENT 4

                                OTHER AMENDMENTS

ANNEX 4
APPENDIX 1
(STATEMENT OF WORK) - MASTER LEVEL SCHEDULE (VERSION 3.9)
<PAGE>   1037
SIDE LETTER TO CHANGE ORDER NO. 2

The revised Master Level Schedule (MLS) version 3.9 included with Change Order
No.2 (CO No2) to the Supply Agreement dated 3rd March 1997 includes most of the
updates required to reflect the impacts of implementing CO No2. Additional
refinements will be made to the Master Level Schedule in the near future,
however these will not affect the contractual Top Level Milestones, Schedule 7.

/s/ G. L. Titzer                             /s/ T. Furukawa
    --------------------------------------       ------------------------------
    G. L. Titzer                                  T. Furukawa
    On behalf of ICO Global Communications       On behalf of NEC Corporation
<PAGE>   1038

                   IGF PROJECT MASTER LEVEL SCHEDULE REV 3.9

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                                              1997
                                                            ------------------------------------------------------------------------
ID  TASK NAME                DUR     START      FINISH       F      M      A      M      J      J      A      S      O      N     D
------------------------------------------------------------------------------------------------------------------------------------
<S> <C>                    <C>     <C>        <C>         <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
1   SATELLITE LAUNCH DATE  451d     11/5/98     7/13/00
------------------------------------------------------------------------------------------------------------------------------------
2   F1                       0d     11/5/98     11/5/98
------------------------------------------------------------------------------------------------------------------------------------
3   F2                       0d      2/5/99      2/5/99
------------------------------------------------------------------------------------------------------------------------------------
4   F3                       0d      5/6/99      5/6/99
------------------------------------------------------------------------------------------------------------------------------------
5   F4                       0d      7/5/99      7/5/99
------------------------------------------------------------------------------------------------------------------------------------
6   F5                       0d      9/5/99      9/5/99
------------------------------------------------------------------------------------------------------------------------------------
7   F6                       0d     11/5/99     11/5/99
------------------------------------------------------------------------------------------------------------------------------------
8   F7                       0d    12/16/99    12/16/99
------------------------------------------------------------------------------------------------------------------------------------
9   F8                       0d     1/27/00     1/27/00
------------------------------------------------------------------------------------------------------------------------------------
10  F9                       0d      3/9/00      3/9/00
------------------------------------------------------------------------------------------------------------------------------------
11  F10                      0d     4/20/00     4/20/00
------------------------------------------------------------------------------------------------------------------------------------
12  F11                      0d      6/1/00      6/1/00
------------------------------------------------------------------------------------------------------------------------------------
13  F12                      0d     7/13/00     7/13/00
------------------------------------------------------------------------------------------------------------------------------------
14
------------------------------------------------------------------------------------------------------------------------------------
15  SUPPLY AGREEMENT         0d      3/3/97      3/3/97
------------------------------------------------------------------------------------------------------------------------------------
16  SUPPLY CONTRACT
     SIGNATURE IN JAPAN      0d      3/3/97      3/3/97       3/3
------------------------------------------------------------------------------------------------------------------------------------
17
------------------------------------------------------------------------------------------------------------------------------------
18  PROJECT MANAGEMENT       935d   2/17/97     8/11/00
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
                                                                 1998
                             ------------------------------------------------------------------------------
ID  TASK NAME                J      F      M      A      M      J      J      A      S      O      N     D
-----------------------------------------------------------------------------------------------------------
<S> <C>                     <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
1   SATELLITE LAUNCH
     DATE
-----------------------------------------------------------------------------------------------------------
2   F1                                                                                            11/5
-----------------------------------------------------------------------------------------------------------
3   F2
-----------------------------------------------------------------------------------------------------------
4   F3
-----------------------------------------------------------------------------------------------------------
5   F4
-----------------------------------------------------------------------------------------------------------
6   F5
-----------------------------------------------------------------------------------------------------------
7   F6
-----------------------------------------------------------------------------------------------------------
8   F7
-----------------------------------------------------------------------------------------------------------
9   F8
-----------------------------------------------------------------------------------------------------------
10  F9
-----------------------------------------------------------------------------------------------------------
11  F10
-----------------------------------------------------------------------------------------------------------
12  F11
-----------------------------------------------------------------------------------------------------------
13  F12
-----------------------------------------------------------------------------------------------------------
14
-----------------------------------------------------------------------------------------------------------
15  SUPPLY AGREEMENT
-----------------------------------------------------------------------------------------------------------
16  SUPPLY CONTRACT
     SIGNATURE IN JAPAN
----------------------------------------------------------------------------------------------------------
17
----------------------------------------------------------------------------------------------------------
18  PROJECT MANAGEMENT
----------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------
                                                                  1999
                             -------------------------------------------------------------------------------
ID  TASK NAME                J      F      M      A      M      J      J      A      S      O     N     D
------------------------------------------------------------------------------------------------------------
<S> <C>                     <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>   <C>
1   SATELLITE LAUNCH
     DATE
------------------------------------------------------------------------------------------------------------
2   F1
------------------------------------------------------------------------------------------------------------
3   F2                             2/5
------------------------------------------------------------------------------------------------------------
4   F3                                                  5/6
------------------------------------------------------------------------------------------------------------
5   F4                                                                7/5
------------------------------------------------------------------------------------------------------------
6   F5                                                                              9/5
------------------------------------------------------------------------------------------------------------
7   F6                                                                                           11/5
------------------------------------------------------------------------------------------------------------
8   F7                                                                                                 12/16
------------------------------------------------------------------------------------------------------------
9   F8
------------------------------------------------------------------------------------------------------------
10  F9
------------------------------------------------------------------------------------------------------------
11  F10
------------------------------------------------------------------------------------------------------------
12  F11
------------------------------------------------------------------------------------------------------------
13  F12
------------------------------------------------------------------------------------------------------------
14
------------------------------------------------------------------------------------------------------------
15  SUPPLY AGREEMENT
------------------------------------------------------------------------------------------------------------
16  SUPPLY CONTRACT
     SIGNATURE IN JAPAN
------------------------------------------------------------------------------------------------------------
17
------------------------------------------------------------------------------------------------------------
18  PROJECT MANAGEMENT
------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
                                                                 2000
                            -------------------------------------------------------------------------------
ID  TASK NAME               J      F      M      A      M      J      J      A      S      O     N     D
-----------------------------------------------------------------------------------------------------------
<S> <C>                    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>   <C>
1   SATELLITE LAUNCH
     DATE
----------------------------------------------------------------------------------------------------------
2   F1
----------------------------------------------------------------------------------------------------------
3   F2
----------------------------------------------------------------------------------------------------------
4   F3
----------------------------------------------------------------------------------------------------------
5   F4
----------------------------------------------------------------------------------------------------------
6   F5
----------------------------------------------------------------------------------------------------------
7   F6
----------------------------------------------------------------------------------------------------------
8   F7
----------------------------------------------------------------------------------------------------------
9   F8                      1/27
----------------------------------------------------------------------------------------------------------
10  F9                                   3/9
----------------------------------------------------------------------------------------------------------
11  F10                                          4/20
----------------------------------------------------------------------------------------------------------
12  F11                                                        6/1
----------------------------------------------------------------------------------------------------------
13  F12                                                               7/13
----------------------------------------------------------------------------------------------------------
14
----------------------------------------------------------------------------------------------------------
15  SUPPLY AGREEMENT
----------------------------------------------------------------------------------------------------------
16  SUPPLY CONTRACT
     SIGNATURE IN JAPAN
----------------------------------------------------------------------------------------------------------
17
----------------------------------------------------------------------------------------------------------
18  PROJECT MANAGEMENT
----------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------
</TABLE>
PROJECT: 18 NOV ICO MLS VER 29.MPP
DATE: 11/18/97

DOC: 770019 VERSION 3.9       PAGE 1          REVISED ON THE 12TH NOVEMBER, 1997
<PAGE>   1039
                   IGG PROJECT MASTER LEVEL SCHEDULE REV 3.9

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                                               1997
                                                                 -------------------------------------------------------------------
ID  TASK NAME                       DUR      START      FINISH     F     M     A     M     J     J     A     S     O     N     D
------------------------------------------------------------------------------------------------------------------------------------
<S> <C>                            <C>     <C>        <C>         <C>   <C>   <C>   <C>   <C>   <C>   <C>   <C>   <C>   <C>   <C>
19  Issue Project Management
      Plan                          60ed    2/17/97    4/18/97
------------------------------------------------------------------------------------------------------------------------------------
20  Issue ICO Specific
      Quality Plans                 120d    3/24/97     9/5/97
------------------------------------------------------------------------------------------------------------------------------------
21  Monthly Progress Reports
      (One every Month)             878d     5/7/97    8/11/00
------------------------------------------------------------------------------------------------------------------------------------
22
------------------------------------------------------------------------------------------------------------------------------------
23  System Engineering              945d     3/4/97    9/12/00
------------------------------------------------------------------------------------------------------------------------------------
24  High Level System
      Description (HLSD)            945d     3/4/97    9/12/00
------------------------------------------------------------------------------------------------------------------------------------
25  Index                            10d     3/4/97    3/17/97
------------------------------------------------------------------------------------------------------------------------------------
26  Preparations                     42d     3/4/97    4/30/97
------------------------------------------------------------------------------------------------------------------------------------
27  First Draft Version
      HLSD to ICO                     0d    4/30/97    4/30/97                4/30
------------------------------------------------------------------------------------------------------------------------------------
28  Issue 1st Version (System
      PDR-1 + 1 month)                0d    6/23/97    6/23/97                            6/23
------------------------------------------------------------------------------------------------------------------------------------
29  Issue Draft Update to
      1st Version                     0d     9/1/97     9/1/97                                              9/1
------------------------------------------------------------------------------------------------------------------------------------
30  Issue Draft 2nd Version           0d   11/15/97   11/15/97                                                          11/15
------------------------------------------------------------------------------------------------------------------------------------
31  Issue Formal 2nd Version          0d    1/31/98    1/31/98
------------------------------------------------------------------------------------------------------------------------------------
32  Issue Final Version               0d    9/12/00    9/12/00
------------------------------------------------------------------------------------------------------------------------------------
33
------------------------------------------------------------------------------------------------------------------------------------
34  System PDR-1 Germantown USA      10d    5/12/97    5/23/97
------------------------------------------------------------------------------------------------------------------------------------
35  System PDR-2 UK - (Top
      Level Milestone)                0d    9/15/97    9/15/97                                              9/15
------------------------------------------------------------------------------------------------------------------------------------
36  System & Sub-System PDR UK       10d    9/15/97    9/26/97
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                                 1998
                                    ------------------------------------------------------------------------------------------------
ID  TASK NAME                          J       F       M       A       M       J       J       A       S        O       N      D
------------------------------------------------------------------------------------------------------------------------------------
<S> <C>                               <C>     <C>     <C>     <C>     <C>     <C>     <C>     <C>     <C>      <C>     <C>    <C>
19  Issue Project Management
      Plan
------------------------------------------------------------------------------------------------------------------------------------
20  Issue ICO Specific
      Quality Plans
------------------------------------------------------------------------------------------------------------------------------------
21  Monthly Progress Reports
      (One every Month)
------------------------------------------------------------------------------------------------------------------------------------
22
------------------------------------------------------------------------------------------------------------------------------------
23  System Engineering
------------------------------------------------------------------------------------------------------------------------------------
24  High Level System
      Description (HLSD)
------------------------------------------------------------------------------------------------------------------------------------
25  Index
------------------------------------------------------------------------------------------------------------------------------------
26  Preparations
------------------------------------------------------------------------------------------------------------------------------------
27  First Draft Version
      HLSD to ICO
------------------------------------------------------------------------------------------------------------------------------------
28  Issue 1st Version (System
      PDR-1 + 1 month)
------------------------------------------------------------------------------------------------------------------------------------
29  Issue Draft Update to
      1st Version
------------------------------------------------------------------------------------------------------------------------------------
30  Issue Draft 2nd Version
------------------------------------------------------------------------------------------------------------------------------------
31  Issue Formal 2nd Version        1/31
------------------------------------------------------------------------------------------------------------------------------------
32  Issue Final Version
------------------------------------------------------------------------------------------------------------------------------------
33
------------------------------------------------------------------------------------------------------------------------------------
34  System PDR-1 Germantown USA
------------------------------------------------------------------------------------------------------------------------------------
35  System PDR-2 UK - (Top
      Level Milestone)
------------------------------------------------------------------------------------------------------------------------------------
36  System & Sub-System PDR UK
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                                 1999
                                    ------------------------------------------------------------------------------------------------
ID  TASK NAME                          J       F       M       A       M       J       J       A       S       O       N       D
------------------------------------------------------------------------------------------------------------------------------------
<S> <C>                               <C>     <C>     <C>     <C>     <C>     <C>     <C>     <C>     <C>     <C>     <C>     <C>
19  Issue Project Management
      Plan
------------------------------------------------------------------------------------------------------------------------------------
20  Issue ICO Specific
      Quality Plans
------------------------------------------------------------------------------------------------------------------------------------
21  Monthly Progress Reports
      (One every Month)
------------------------------------------------------------------------------------------------------------------------------------
22
------------------------------------------------------------------------------------------------------------------------------------
23  System Engineering
------------------------------------------------------------------------------------------------------------------------------------
24  High Level System
      Description (HLSD)
------------------------------------------------------------------------------------------------------------------------------------
25  Index
------------------------------------------------------------------------------------------------------------------------------------
26  Preparations
------------------------------------------------------------------------------------------------------------------------------------
27  First Draft Version
      HLSD to ICO
------------------------------------------------------------------------------------------------------------------------------------
28  Issue 1st Version (System
      PDR-1 + 1 month)
------------------------------------------------------------------------------------------------------------------------------------
29  Issue Draft Update to
      1st Version
------------------------------------------------------------------------------------------------------------------------------------
30  Issue Draft 2nd Version
------------------------------------------------------------------------------------------------------------------------------------
31  Issue Formal 2nd Version
------------------------------------------------------------------------------------------------------------------------------------
32  Issue Final Version
------------------------------------------------------------------------------------------------------------------------------------
33
------------------------------------------------------------------------------------------------------------------------------------
34  System PDR-1 Germantown USA
------------------------------------------------------------------------------------------------------------------------------------
35  System PDR-2 UK - (Top
      Level Milestone)
------------------------------------------------------------------------------------------------------------------------------------
36  System & Sub-System PDR UK
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                                 2000
                                    ------------------------------------------------------------------------------------------------
ID  TASK NAME                          J       F       M       A       M       J       J       A       S       O       N       D
------------------------------------------------------------------------------------------------------------------------------------
<S> <C>                               <C>     <C>     <C>     <C>     <C>     <C>     <C>     <C>     <C>     <C>     <C>     <C>
19  Issue Project Management
      Plan
------------------------------------------------------------------------------------------------------------------------------------
20  Issue ICO Specific
      Quality Plans
------------------------------------------------------------------------------------------------------------------------------------
21  Monthly Progress Reports
      (One every Month)
------------------------------------------------------------------------------------------------------------------------------------
22
------------------------------------------------------------------------------------------------------------------------------------
23  System Engineering
------------------------------------------------------------------------------------------------------------------------------------
24  High Level System
      Description (HLSD)
------------------------------------------------------------------------------------------------------------------------------------
25  Index
------------------------------------------------------------------------------------------------------------------------------------
26  Preparations
------------------------------------------------------------------------------------------------------------------------------------
27  First Draft Version
      HLSD to ICO
------------------------------------------------------------------------------------------------------------------------------------
28  Issue 1st Version (System
      PDR-1 + 1 month)
------------------------------------------------------------------------------------------------------------------------------------
29  Issue Draft Update to
      1st Version
------------------------------------------------------------------------------------------------------------------------------------
30  Issue Draft 2nd Version
------------------------------------------------------------------------------------------------------------------------------------
31  Issue Formal 2nd Version                                                                          9/12
------------------------------------------------------------------------------------------------------------------------------------
32  Issue Final Version
------------------------------------------------------------------------------------------------------------------------------------
33
------------------------------------------------------------------------------------------------------------------------------------
34  System PDR-1 Germantown USA
------------------------------------------------------------------------------------------------------------------------------------
35  System PDR-2 UK - (Top
      Level Milestone)
------------------------------------------------------------------------------------------------------------------------------------
36  System & Sub-System PDR UK
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

Project: 18 NOV ICO MLS VER 39.MPP
Date: 11/18/97

DOC: 770019 VERSION 3.9          Page 2       REVISED ON THE 12th NOVEMBER, 1997
<PAGE>   1040
                   IGF PROJECT MASTER LEVEL SCHEDULE REV 3.9
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                                              1997
                                                            ------------------------------------------------------------------------
ID  TASK NAME                DUR     START      FINISH       F      M      A      M      J      J      A      S      O      N     D
------------------------------------------------------------------------------------------------------------------------------------
<S> <C>                    <C>     <C>        <C>         <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
37   SYSTEM FDR-JAPAN        Od     1/15/98     1/15/98
     (TOP LEVEL MILESTONE)
------------------------------------------------------------------------------------------------------------------------------------
38   System and Sub-System   8d     12/3/97    12/12/97
     FDR Japan (Planned)
------------------------------------------------------------------------------------------------------------------------------------
39
------------------------------------------------------------------------------------------------------------------------------------
40   TEST DOCUMENTATION    747d      2/2/98    11/13/00
     ALL WORK GROUPS
------------------------------------------------------------------------------------------------------------------------------------
41   IGF TEST              364d      2/2/98      6/1/99
     REQUIREMENTS
------------------------------------------------------------------------------------------------------------------------------------
42   PHASE 1 & 2-1          32d      2/2/98     3/16/98
------------------------------------------------------------------------------------------------------------------------------------
43   Phase 1 Draft           0d      2/2/98      2/2/98
------------------------------------------------------------------------------------------------------------------------------------
44   Phase 1 Final           0d      3/2/98      3/2/98
------------------------------------------------------------------------------------------------------------------------------------
45   Phase 2-1 Draft         0d     2/15/98     2/15/98
------------------------------------------------------------------------------------------------------------------------------------
46   Phase 2-1 Final         0d     3/16/98     3/16/98
------------------------------------------------------------------------------------------------------------------------------------
47   PHASE 2-2 (INTERNAL)   25d      8/1/98      9/1/98
------------------------------------------------------------------------------------------------------------------------------------
48   Phase 2-2 Draft         0d      8/1/98      8/1/98
------------------------------------------------------------------------------------------------------------------------------------
49   Phase 2-2 Final         0d      9/1/98      9/1/98
------------------------------------------------------------------------------------------------------------------------------------
50   PHASE 3                21d      5/3/99      6/1/99
------------------------------------------------------------------------------------------------------------------------------------
51   Phase 3 Draft           0d      5/3/99      5/3/99
------------------------------------------------------------------------------------------------------------------------------------
52   Phase 3 Final           0d      6/1/99      6/1/99
------------------------------------------------------------------------------------------------------------------------------------
53
------------------------------------------------------------------------------------------------------------------------------------
54   IGF TEST PLAN         476d      2/2/98     11/1/99
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------

</TABLE>

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------------
                                                                                      1998
                                                  ------------------------------------------------------------------------------
ID   TASK NAME                                    J      F      M      A      M      J      J      A      S      O      N     D
--------------------------------------------------------------------------------------------------------------------------------
<S>  <C>                                         <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
37   SYSTEM FDR-JAPAN (TOP LEVEL MILESTONE)        1/15
--------------------------------------------------------------------------------------------------------------------------------
38   System and Sub-System FDR Japan (Planned)
--------------------------------------------------------------------------------------------------------------------------------
39
--------------------------------------------------------------------------------------------------------------------------------
40   TEST DOCUMENTATION ALL WORK GROUPS
--------------------------------------------------------------------------------------------------------------------------------
41   IGF TEST REQUIREMENTS
--------------------------------------------------------------------------------------------------------------------------------
42   PHASE 1 & 2-1
--------------------------------------------------------------------------------------------------------------------------------
43   Phase 1 Draft                                       2/2
--------------------------------------------------------------------------------------------------------------------------------
44   Phase 1 Final                                              3/2
--------------------------------------------------------------------------------------------------------------------------------
45   Phase 2-1 Draft                                     2/15
--------------------------------------------------------------------------------------------------------------------------------
46   Phase 2-1 Final                                            3/16
--------------------------------------------------------------------------------------------------------------------------------
47   PHASE 2-2 (INTERNAL)
--------------------------------------------------------------------------------------------------------------------------------
48   Phase 2-2 Draft                                                                               8/1
--------------------------------------------------------------------------------------------------------------------------------
49   Phase 2-2 Final                                                                                       9/1
--------------------------------------------------------------------------------------------------------------------------------
50   PHASE 3
--------------------------------------------------------------------------------------------------------------------------------
51   Phase 3 Draft
--------------------------------------------------------------------------------------------------------------------------------
52   Phase 3 Final
--------------------------------------------------------------------------------------------------------------------------------
53
--------------------------------------------------------------------------------------------------------------------------------
54   IGF TEST PLAN
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------------
                                                                                      1999
                                                  ------------------------------------------------------------------------------
ID   TASK NAME                                    J      F      M      A      M      J      J      A      S      O      N     D
--------------------------------------------------------------------------------------------------------------------------------
<S>  <C>                                         <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
37   SYSTEM FDR-JAPAN (TOP LEVEL MILESTONE)
--------------------------------------------------------------------------------------------------------------------------------
38   System and Sub-System FDR Japan (Planned)
--------------------------------------------------------------------------------------------------------------------------------
39
--------------------------------------------------------------------------------------------------------------------------------
40   TEST DOCUMENTATION ALL WORK GROUPS
--------------------------------------------------------------------------------------------------------------------------------
41   IGF TEST REQUIREMENTS
--------------------------------------------------------------------------------------------------------------------------------
42   PHASE 1 & 2-1
--------------------------------------------------------------------------------------------------------------------------------
43   Phase 1 Draft
--------------------------------------------------------------------------------------------------------------------------------
44   Phase 1 Final
--------------------------------------------------------------------------------------------------------------------------------
45   Phase 2-1 Draft
--------------------------------------------------------------------------------------------------------------------------------
46   Phase 2-1 Final
--------------------------------------------------------------------------------------------------------------------------------
47   PHASE 2-2 (INTERNAL)
--------------------------------------------------------------------------------------------------------------------------------
48   Phase 2-2 Draft
--------------------------------------------------------------------------------------------------------------------------------
49   Phase 2-2 Final
--------------------------------------------------------------------------------------------------------------------------------
50   PHASE 3
--------------------------------------------------------------------------------------------------------------------------------
51   Phase 3 Draft                                                            5/3
--------------------------------------------------------------------------------------------------------------------------------
52   Phase 3 Final                                                                   6/1
--------------------------------------------------------------------------------------------------------------------------------
53
--------------------------------------------------------------------------------------------------------------------------------
54   IGF TEST PLAN
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------------
                                                                                      2000
                                                  ------------------------------------------------------------------------------
ID   TASK NAME                                    J      F      M      A      M      J      J      A      S      O      N     D
--------------------------------------------------------------------------------------------------------------------------------
<S>  <C>                                         <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
37   SYSTEM FDR-JAPAN (TOP LEVEL MILESTONE)
--------------------------------------------------------------------------------------------------------------------------------
38   System and Sub-System FDR Japan (Planned)
--------------------------------------------------------------------------------------------------------------------------------
39
--------------------------------------------------------------------------------------------------------------------------------
40   TEST DOCUMENTATION ALL WORK GROUPS
--------------------------------------------------------------------------------------------------------------------------------
41   IGF TEST REQUIREMENTS
--------------------------------------------------------------------------------------------------------------------------------
42   PHASE 1 & 2-1
--------------------------------------------------------------------------------------------------------------------------------
43   Phase 1 Draft
--------------------------------------------------------------------------------------------------------------------------------
44   Phase 1 Final
--------------------------------------------------------------------------------------------------------------------------------
45   Phase 2-1 Draft
--------------------------------------------------------------------------------------------------------------------------------
46   Phase 2-1 Final
--------------------------------------------------------------------------------------------------------------------------------
47   PHASE 2-2 (INTERNAL)
--------------------------------------------------------------------------------------------------------------------------------
48   Phase 2-2 Draft
--------------------------------------------------------------------------------------------------------------------------------
49   Phase 2-2 Final
--------------------------------------------------------------------------------------------------------------------------------
50   PHASE 3
--------------------------------------------------------------------------------------------------------------------------------
51   Phase 3 Draft
--------------------------------------------------------------------------------------------------------------------------------
52   Phase 3 Final
--------------------------------------------------------------------------------------------------------------------------------
53
--------------------------------------------------------------------------------------------------------------------------------
54   IGF TEST PLAN
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
</TABLE>
PROJECT: 18 NOV ICO MLS VER 39.MPP
DATE: 11/18/97

DOC: 770019 VERSION 3.9       PAGE 3          REVISED ON THE 12TH NOVEMBER, 1997

<PAGE>   1041
                   IGF PROJECT MASTER LEVEL SCHEDULE REV 3.9
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                                              1997
                                                            ------------------------------------------------------------------------
ID  TASK NAME                DUR     START      FINISH       F      M      A      M      J      J      A      S      O      N     D
------------------------------------------------------------------------------------------------------------------------------------
<S> <C>                    <C>     <C>        <C>         <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
55   PHASE 1 & 2-1          123d      2/2/98    7/15/98
------------------------------------------------------------------------------------------------------------------------------------
56   Phase 1 Draft            0d      2/2/98     2/2/98
------------------------------------------------------------------------------------------------------------------------------------
57   Phase 1 Final            0d      3/2/98     3/2/98
------------------------------------------------------------------------------------------------------------------------------------
58   Phase 2-1 Draft          0d     6/15/98    6/15/98
------------------------------------------------------------------------------------------------------------------------------------
59   Phase 2-1 Final          0d     7/15/98    7/15/98
------------------------------------------------------------------------------------------------------------------------------------
60   PHASE 2-2 (INTERNAL)    22d     11/2/98    12/1/98
------------------------------------------------------------------------------------------------------------------------------------
61   Phase 2-2 Draft          0d     11/2/98    11/2/98
------------------------------------------------------------------------------------------------------------------------------------
62   Phase 2-2 Final          0d     12/1/98    12/1/98
------------------------------------------------------------------------------------------------------------------------------------
63   PHASE 3                 22d     10/1/99    11/1/99
------------------------------------------------------------------------------------------------------------------------------------
64   Phase 3 Draft            0d     10/1/99    10/1/99
------------------------------------------------------------------------------------------------------------------------------------
65   Phase 3 Final            0d     11/1/99    11/1/99
------------------------------------------------------------------------------------------------------------------------------------
66
------------------------------------------------------------------------------------------------------------------------------------
67   IGF TEST SCRIPTS       386d      7/1/98    12/1/99
------------------------------------------------------------------------------------------------------------------------------------
68   PHASE 1 & 2-1           36d      7/1/98    8/17/98
------------------------------------------------------------------------------------------------------------------------------------
69   Phase 1                  0d      7/1/98     7/1/98
------------------------------------------------------------------------------------------------------------------------------------
70   Phase 2-1                0d     8/17/98    8/17/98
------------------------------------------------------------------------------------------------------------------------------------
71   PHASE 2-2 (INTERNAL)     0d      1/1/99     1/1/99
------------------------------------------------------------------------------------------------------------------------------------
72   PHASE 2-2 IGF TEST       0d      1/1/99     1/1/99
     SCRIPT
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------
                                                                 1998
                             ----------------------------------------------------------------------------------
ID   TASK NAME               J      F      M      A      M      J      J      A      S      O      N     D
---------------------------------------------------------------------------------------------------------------
<S>  <C>                     <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
55   PHASE 1 & 2-1
---------------------------------------------------------------------------------------------------------------
56   Phase 1 Draft                   2/2
---------------------------------------------------------------------------------------------------------------
57   Phase 1 Final                          3/2
---------------------------------------------------------------------------------------------------------------
58   Phase 2-1 Draft                                             6/15
---------------------------------------------------------------------------------------------------------------
59   Phase 2-1 Final                                                    7/15
---------------------------------------------------------------------------------------------------------------
60   PHASE 2-2 (INTERNAL)
---------------------------------------------------------------------------------------------------------------
61   Phase 2-2 Draft                                                                               11/2
---------------------------------------------------------------------------------------------------------------
62   Phase 2-2 Final                                                                                      12/1
---------------------------------------------------------------------------------------------------------------
63   PHASE 3
---------------------------------------------------------------------------------------------------------------
64   Phase 3 Draft
---------------------------------------------------------------------------------------------------------------
65   Phase 3 Final
---------------------------------------------------------------------------------------------------------------
66
---------------------------------------------------------------------------------------------------------------
67   IGF TEST SCRIPTS
---------------------------------------------------------------------------------------------------------------
68   PHASE 1 & 2-1
---------------------------------------------------------------------------------------------------------------
69   Phase 1                                                            7/1
---------------------------------------------------------------------------------------------------------------
70   Phase 2-1                                                                8/17
---------------------------------------------------------------------------------------------------------------
71   PHASE 2-2 (INTERNAL)
---------------------------------------------------------------------------------------------------------------
72   PHASE 2-2 IGF TEST SCRIPT
---------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------
                                                                 1999
                             ----------------------------------------------------------------------------------
ID   TASK NAME               J      F      M      A      M      J      J      A      S      O      N     D
---------------------------------------------------------------------------------------------------------------
<S>  <C>                    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
55   PHASE 1 & 2-1
---------------------------------------------------------------------------------------------------------------
56   Phase 1 Draft
---------------------------------------------------------------------------------------------------------------
57   Phase 1 Final
---------------------------------------------------------------------------------------------------------------
58   Phase 2-1 Draft
---------------------------------------------------------------------------------------------------------------
59   Phase 2-1 Final
---------------------------------------------------------------------------------------------------------------
60   PHASE 2-2 (INTERNAL)
---------------------------------------------------------------------------------------------------------------
61   Phase 2-2 Draft
---------------------------------------------------------------------------------------------------------------
62   Phase 2-2 Final
---------------------------------------------------------------------------------------------------------------
63   PHASE 3
---------------------------------------------------------------------------------------------------------------
64   Phase 3 Draft                                                                            10/1
---------------------------------------------------------------------------------------------------------------
65   Phase 3 Final                                                                                    11/1
---------------------------------------------------------------------------------------------------------------
66
---------------------------------------------------------------------------------------------------------------
67   IGF TEST SCRIPTS
---------------------------------------------------------------------------------------------------------------
68   PHASE 1 & 2-1
---------------------------------------------------------------------------------------------------------------
69   Phase 1
---------------------------------------------------------------------------------------------------------------
70   Phase 2-1
---------------------------------------------------------------------------------------------------------------
71   PHASE 2-2 (INTERNAL)
---------------------------------------------------------------------------------------------------------------
72   PHASE 2-2 IGF TEST     1/1
     SCRIPT
---------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------
                                                                 2000
                             ----------------------------------------------------------------------------------
ID   TASK NAME               J      F      M      A      M      J      J      A      S      O      N     D
---------------------------------------------------------------------------------------------------------------
<S>  <C>                    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
55   PHASE 1 & 2-1
---------------------------------------------------------------------------------------------------------------
56   Phase 1 Draft
---------------------------------------------------------------------------------------------------------------
57   Phase 1 Final
---------------------------------------------------------------------------------------------------------------
58   Phase 2-1 Draft
---------------------------------------------------------------------------------------------------------------
59   Phase 2-1 Final
---------------------------------------------------------------------------------------------------------------
60   PHASE 2-2 (INTERNAL)
---------------------------------------------------------------------------------------------------------------
61   Phase 2-2 Draft
---------------------------------------------------------------------------------------------------------------
62   Phase 2-2 Final
---------------------------------------------------------------------------------------------------------------
63   PHASE 3
---------------------------------------------------------------------------------------------------------------
64   Phase 3 Draft
---------------------------------------------------------------------------------------------------------------
65   Phase 3 Final
---------------------------------------------------------------------------------------------------------------
66
---------------------------------------------------------------------------------------------------------------
67   IGF TEST SCRIPTS
---------------------------------------------------------------------------------------------------------------
68   PHASE 1 & 2-1
---------------------------------------------------------------------------------------------------------------
69   Phase 1
---------------------------------------------------------------------------------------------------------------
70   Phase 2-1
---------------------------------------------------------------------------------------------------------------
71   PHASE 2-2 (INTERNAL)
---------------------------------------------------------------------------------------------------------------
72   PHASE 2-2 IGF TEST
     SCRIPT
---------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------
</TABLE>
PROJECT: 18 NOV ICO MLS VER 39.MPP
DATE: 11/18/97

DOC: 770019 VERSION 3.9       PAGE 4          REVISED ON THE 12TH NOVEMBER, 1997

<PAGE>   1042

                   IGF PROJECT MASTER LEVEL SCHEDULE REV 3.9

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                                              1997
                                                            ------------------------------------------------------------------------
ID   TASK NAME               DUR      START      FINISH      F      M      A      M      J      J      A      S      O      N     D
------------------------------------------------------------------------------------------------------------------------------------
<S>  <C>                    <C>     <C>        <C>         <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
73   PHASE 3                  0d     12/1/99     12/1/99
------------------------------------------------------------------------------------------------------------------------------------
74   Phase 3 IGF
      Test Script             0d     12/1/99     12/1/99
------------------------------------------------------------------------------------------------------------------------------------
75
------------------------------------------------------------------------------------------------------------------------------------
76   TEST REPORT            449d      3/1/99    11/13/00
------------------------------------------------------------------------------------------------------------------------------------
77   PHASE 1 & 2-1          183d      3/1/99     11/8/99
------------------------------------------------------------------------------------------------------------------------------------
78   Phase 1 Draft            0d      3/1/99      3/1/99
------------------------------------------------------------------------------------------------------------------------------------
79   Phase 1 Final            0d      5/3/99      5/3/99
------------------------------------------------------------------------------------------------------------------------------------
80   Phase 2-1 Draft          0d      9/7/99      9/7/99
------------------------------------------------------------------------------------------------------------------------------------
81   Phase 2-1 Final          0d     11/8/99     11/8/99
------------------------------------------------------------------------------------------------------------------------------------
82   PHASE 2-2 (INTERNAL)    44d      2/1/00      4/3/00
------------------------------------------------------------------------------------------------------------------------------------
83   Phase 2-2 Draft          0d      2/1/00      2/1/00
------------------------------------------------------------------------------------------------------------------------------------
84   Phase 2-2 Final          0d      4/3/00      4/3/00
------------------------------------------------------------------------------------------------------------------------------------
85   PHASE 3                 44d     9/12/00    11/13/00
------------------------------------------------------------------------------------------------------------------------------------
86   Phase 3 Draft            0d     9/12/00     9/12/00
------------------------------------------------------------------------------------------------------------------------------------
87   Phase 3 Final            0d    11/13/00    11/13/00
------------------------------------------------------------------------------------------------------------------------------------
88
------------------------------------------------------------------------------------------------------------------------------------
89   SPECIAL TEST
      EQUIPMENT             717d      3/4/97     11/1/99
------------------------------------------------------------------------------------------------------------------------------------
90   UT LOAD SIMULATOR
      (14 SETS)             227d      2/2/98    11/30/98
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
                                                                          1998
                                     ----------------------------------------------------------------------------------
ID     TASK NAME                       J      F      M      A      M      J      J      A      S      O      N      D
-----------------------------------------------------------------------------------------------------------------------
<S>  <C>                             <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>
73   PHASE 3
-----------------------------------------------------------------------------------------------------------------------
74   Phase 3 IGF Test Script
-----------------------------------------------------------------------------------------------------------------------
75
-----------------------------------------------------------------------------------------------------------------------
76   TEST REPORT
-----------------------------------------------------------------------------------------------------------------------
77   PHASE 1 & 2-1
-----------------------------------------------------------------------------------------------------------------------
78   Phase 1 Draft
-----------------------------------------------------------------------------------------------------------------------
79   Phase 1 Final
-----------------------------------------------------------------------------------------------------------------------
80   Phase 2-1 Draft
-----------------------------------------------------------------------------------------------------------------------
81   Phase 2-1 Final
-----------------------------------------------------------------------------------------------------------------------
82   PHASE 2-2 (INTERNAL)
-----------------------------------------------------------------------------------------------------------------------
83   Phase 2-2 Draft
-----------------------------------------------------------------------------------------------------------------------
84   Phase 2-2 Final
-----------------------------------------------------------------------------------------------------------------------
85   PHASE 3
-----------------------------------------------------------------------------------------------------------------------
86   Phase 3 Draft
-----------------------------------------------------------------------------------------------------------------------
87   Phase 3 Final
-----------------------------------------------------------------------------------------------------------------------
88
-----------------------------------------------------------------------------------------------------------------------
89   SPECIAL TEST EQUIPMENT
-----------------------------------------------------------------------------------------------------------------------
90   UT LOAD SIMULATOR
      (14 SETS)
-----------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
                                                                          1999
                                     ----------------------------------------------------------------------------------
ID     TASK NAME                       J      F      M      A      M      J      J      A      S      O      N      D
-----------------------------------------------------------------------------------------------------------------------
<S>  <C>                             <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>
73   PHASE 3
-----------------------------------------------------------------------------------------------------------------------
74   Phase 3 IGF Test Script                                                                                       12/1
-----------------------------------------------------------------------------------------------------------------------
75
-----------------------------------------------------------------------------------------------------------------------
76   TEST REPORT
-----------------------------------------------------------------------------------------------------------------------
77   PHASE 1 & 2-1
-----------------------------------------------------------------------------------------------------------------------
78   Phase 1 Draft                                  3/1
-----------------------------------------------------------------------------------------------------------------------
79   Phase 1 Final                                                5/3
-----------------------------------------------------------------------------------------------------------------------
80   Phase 2-1 Draft                                                                         9/7
-----------------------------------------------------------------------------------------------------------------------
81   Phase 2-1 Final                                                                                       11/8
-----------------------------------------------------------------------------------------------------------------------
82   PHASE 2-2 (INTERNAL)
-----------------------------------------------------------------------------------------------------------------------
83   Phase 2-2 Draft
-----------------------------------------------------------------------------------------------------------------------
84   Phase 2-2 Final
-----------------------------------------------------------------------------------------------------------------------
85   PHASE 3
-----------------------------------------------------------------------------------------------------------------------
86   Phase 3 Draft
-----------------------------------------------------------------------------------------------------------------------
87   Phase 3 Final
-----------------------------------------------------------------------------------------------------------------------
88
-----------------------------------------------------------------------------------------------------------------------
89   SPECIAL TEST EQUIPMENT
-----------------------------------------------------------------------------------------------------------------------
90   UT LOAD SIMULATOR
      (14 SETS)
-----------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
                                                                          2000
                                     ----------------------------------------------------------------------------------
ID     TASK NAME                       J      F      M      A      M      J      J      A      S      O      N      D
-----------------------------------------------------------------------------------------------------------------------
<S>  <C>                             <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>
73   PHASE 3
-----------------------------------------------------------------------------------------------------------------------
74   Phase 3 IGF Test Script
-----------------------------------------------------------------------------------------------------------------------
75
-----------------------------------------------------------------------------------------------------------------------
76   TEST REPORT
-----------------------------------------------------------------------------------------------------------------------
77   PHASE 1 & 2-1
-----------------------------------------------------------------------------------------------------------------------
78   Phase 1 Draft
-----------------------------------------------------------------------------------------------------------------------
79   Phase 1 Final
-----------------------------------------------------------------------------------------------------------------------
80   Phase 2-1 Draft
-----------------------------------------------------------------------------------------------------------------------
81   Phase 2-1 Final
-----------------------------------------------------------------------------------------------------------------------
82   PHASE 2-2 (INTERNAL)
-----------------------------------------------------------------------------------------------------------------------
83   Phase 2-2 Draft                         2/1
-----------------------------------------------------------------------------------------------------------------------
84   Phase 2-2 Final                                      4/3
-----------------------------------------------------------------------------------------------------------------------
85   PHASE 3
-----------------------------------------------------------------------------------------------------------------------
86   Phase 3 Draft                                                                            9/12
-----------------------------------------------------------------------------------------------------------------------
87   Phase 3 Final                                                                                                  1
-----------------------------------------------------------------------------------------------------------------------
88
-----------------------------------------------------------------------------------------------------------------------
89   SPECIAL TEST EQUIPMENT
-----------------------------------------------------------------------------------------------------------------------
90   UT LOAD SIMULATOR
      (14 SETS)
-----------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------
</TABLE>

PROJECT: 18 NOV ICO MLS VER 39.MPP
DATE: 11/18/97

DOC: 770019 VERSION 3.9       PAGE 5         REVISED ON THE 12TH NOVEMBER, 1997

<PAGE>   1043
                   IGF PROJECT MASTER LEVEL SCHEDULE REV 3.9

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                                              1997
                                                            ------------------------------------------------------------------------
ID   TASK NAME               DUR      START      FINISH      F      M      A      M      J      J      A      S      O      N     D
------------------------------------------------------------------------------------------------------------------------------------
<S>  <C>                    <C>     <C>        <C>         <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
91   2 Sets (1 - HNS,
      1 - NECA)               0d      2/2/98      2/2/98
------------------------------------------------------------------------------------------------------------------------------------
92   12 Sets for On Site
      Testing
      (1 for each SAN)        0d    11/30/98    11/30/98
------------------------------------------------------------------------------------------------------------------------------------
93   12 SETS OF SATELLITE
      CHANNEL SIMULATORS
      (NOISE COM)           137d      1/5/98     7/15/98
------------------------------------------------------------------------------------------------------------------------------------
94   SAN SIMULATOR
      (2 SETS)              135d     7/24/98     1/20/99
------------------------------------------------------------------------------------------------------------------------------------
95   S.1.0 Release to ICO     0d     7/24/98     7/24/98
------------------------------------------------------------------------------------------------------------------------------------
96   S.2.0 release to ICO     0d     1/20/99     1/20/99
------------------------------------------------------------------------------------------------------------------------------------
97   GSM TESTER FOR FACTORY
      TESTING (NECA)          0d      4/1/98      4/1/98
------------------------------------------------------------------------------------------------------------------------------------
98   GSM TESTER FOR FACTORY
      TESTING (HNS)           0d      2/2/98      2/2/98
------------------------------------------------------------------------------------------------------------------------------------
99
------------------------------------------------------------------------------------------------------------------------------------
100  DDN/DDS COMMUNICATION
      LINKS FOR PRE-
      INTEGRATION TESTING   717d      3/4/97     11/1/99
------------------------------------------------------------------------------------------------------------------------------------
101  NEC SUPPLIED DDS
      LINKS                 139d      8/1/98      2/1/99
------------------------------------------------------------------------------------------------------------------------------------
102  NEC/A - HNS              0d      8/1/98      8/1/98
------------------------------------------------------------------------------------------------------------------------------------
103  NEC/A - Brisbane         0d      2/1/99      2/1/99
------------------------------------------------------------------------------------------------------------------------------------
104  HNS - Seattle            0d      2/1/99      2/1/99
------------------------------------------------------------------------------------------------------------------------------------
105  NEC/A - Japan            0d     10/1/98     10/1/98
------------------------------------------------------------------------------------------------------------------------------------
106
------------------------------------------------------------------------------------------------------------------------------------
107  ICO SUPPLIED INTER
      SAN LINKS             521d     12/2/97     11/1/99
------------------------------------------------------------------------------------------------------------------------------------
108  NEC to confirm
      quantity of
      DDS Links               0d     12/2/97     12/2/97                                                                        12/2
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
                                                                          1998
                                     ----------------------------------------------------------------------------------
ID     TASK NAME                       J      F      M      A      M      J      J      A      S      O      N      D
-----------------------------------------------------------------------------------------------------------------------
<S>  <C>                             <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>
91   2 Sets (1 - HNS, 1 - NECA)              2/2
-----------------------------------------------------------------------------------------------------------------------
92   12 Sets for On Site Testing
      (1 for each SAN)                                                                                      11/30
-----------------------------------------------------------------------------------------------------------------------
93   12 SETS OF SATELLITE CHANNEL
      SIMULATORS (NOISE COM)
-----------------------------------------------------------------------------------------------------------------------
94   SAN SIMULATOR (2 SETS)
-----------------------------------------------------------------------------------------------------------------------
95   S.1.0 Release to ICO                                                       7/24
-----------------------------------------------------------------------------------------------------------------------
96   S.2.0 release to ICO
-----------------------------------------------------------------------------------------------------------------------
97   GSM TESTER FOR FACTORY
      TESTING (NECA)                                      4/1
-----------------------------------------------------------------------------------------------------------------------
98   GSM TESTER FOR FACTORY
      TESTING (HNS)                          2/2
-----------------------------------------------------------------------------------------------------------------------
99
-----------------------------------------------------------------------------------------------------------------------
100  DDN/DDS COMMUNICATION LINKS
      FOR PRE-INTEGRATION TESTING
-----------------------------------------------------------------------------------------------------------------------
101  NEC SUPPLIED DDS LINKS
-----------------------------------------------------------------------------------------------------------------------
102  NEC/A - HNS                                                                      8/1
-----------------------------------------------------------------------------------------------------------------------
103  NEC/A - Brisbane
-----------------------------------------------------------------------------------------------------------------------
104  HNS - Seattle
-----------------------------------------------------------------------------------------------------------------------
105  NEC/A - Japan                                                                                  10/1
-----------------------------------------------------------------------------------------------------------------------
106
-----------------------------------------------------------------------------------------------------------------------
107  ICO SUPPLIED INTER SAN LINKS
-----------------------------------------------------------------------------------------------------------------------
108  NEC to confirm quantity
      of DDS Links
-----------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
                                                                          1999
                                     ----------------------------------------------------------------------------------
ID     TASK NAME                       J      F      M      A      M      J      J      A      S      O      N      D
-----------------------------------------------------------------------------------------------------------------------
<S>  <C>                             <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>
91   2 Sets (1 - HNS, 1 - NECA)       1/20
-----------------------------------------------------------------------------------------------------------------------
92   12 Sets for On Site Testing
      (1 for each SAN)
-----------------------------------------------------------------------------------------------------------------------
93   12 SETS OF SATELLITE CHANNEL
      SIMULATORS (NOISE COM)
-----------------------------------------------------------------------------------------------------------------------
94   SAN SIMULATOR (2 SETS)
-----------------------------------------------------------------------------------------------------------------------
95   S.1.0 Release to ICO
-----------------------------------------------------------------------------------------------------------------------
96   S.2.0 release to ICO
-----------------------------------------------------------------------------------------------------------------------
97   GSM TESTER FOR FACTORY
      TESTING (NECA)
-----------------------------------------------------------------------------------------------------------------------
98   GSM TESTER FOR FACTORY
      TESTING (HNS)
-----------------------------------------------------------------------------------------------------------------------
99
-----------------------------------------------------------------------------------------------------------------------
100  DDN/DDS COMMUNICATION LINKS
      FOR PRE-INTEGRATION TESTING
-----------------------------------------------------------------------------------------------------------------------
101  NEC SUPPLIED DDS LINKS
-----------------------------------------------------------------------------------------------------------------------
102  NEC/A - HNS
-----------------------------------------------------------------------------------------------------------------------
103  NEC/A - Brisbane                        2/1
-----------------------------------------------------------------------------------------------------------------------
104  HNS - Seattle                           2/1
-----------------------------------------------------------------------------------------------------------------------
105  NEC/A - Japan
-----------------------------------------------------------------------------------------------------------------------
106
-----------------------------------------------------------------------------------------------------------------------
107  ICO SUPPLIED INTER SAN LINKS
-----------------------------------------------------------------------------------------------------------------------
108  NEC to confirm quantity
      of DDS Links
-----------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
                                                                          2000
                                     ----------------------------------------------------------------------------------
ID     TASK NAME                       J      F      M      A      M      J      J      A      S      O      N      D
-----------------------------------------------------------------------------------------------------------------------
<S>  <C>                             <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>
91   2 Sets (1 - HNS, 1 - NECA)
-----------------------------------------------------------------------------------------------------------------------
92   12 Sets for On Site Testing
      (1 for each SAN)
-----------------------------------------------------------------------------------------------------------------------
93   12 SETS OF SATELLITE CHANNEL
      SIMULATORS (NOISE COM)
-----------------------------------------------------------------------------------------------------------------------
94   SAN SIMULATOR (2 SETS)
-----------------------------------------------------------------------------------------------------------------------
95   S.1.0 Release to ICO
-----------------------------------------------------------------------------------------------------------------------
96   S.2.0 release to ICO
-----------------------------------------------------------------------------------------------------------------------
97   GSM TESTER FOR FACTORY
      TESTING (NECA)
-----------------------------------------------------------------------------------------------------------------------
98   GSM TESTER FOR FACTORY
      TESTING (HNS)
-----------------------------------------------------------------------------------------------------------------------
99
-----------------------------------------------------------------------------------------------------------------------
100  DDN/DDS COMMUNICATION LINKS
      FOR PRE-INTEGRATION TESTING
-----------------------------------------------------------------------------------------------------------------------
101  NEC SUPPLIED DDS LINKS
-----------------------------------------------------------------------------------------------------------------------
102  NEC/A - HNS
-----------------------------------------------------------------------------------------------------------------------
103  NEC/A - Brisbane
-----------------------------------------------------------------------------------------------------------------------
104  HNS - Seattle
-----------------------------------------------------------------------------------------------------------------------
105  NEC/A - Japan
-----------------------------------------------------------------------------------------------------------------------
106
-----------------------------------------------------------------------------------------------------------------------
107  ICO SUPPLIED INTER SAN LINKS
-----------------------------------------------------------------------------------------------------------------------
108  NEC to confirm quantity
      of DDS Links
-----------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------
</TABLE>

PROJECT: 18 NOV ICO MLS VER 39.MPP
DATE: 11/18/97

DOC: 770019 VERSION 3.9       PAGE 6         REVISED ON THE 12TH NOVEMBER, 1997

<PAGE>   1044
                   IGF PROJECT MASTER LEVEL SCHEDULE REV 3.9
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                                              1997
                                                            ------------------------------------------------------------------------
ID   TASK NAME               DUR      START      FINISH      F      M      A      M      J      J      A      S      O      N     D
------------------------------------------------------------------------------------------------------------------------------------
<S>  <C>                    <C>     <C>        <C>         <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
109  Between SAN and
      Primary NMC for
      MSSC#1/HLR Testing      0d      2/1/99      2/1/99
------------------------------------------------------------------------------------------------------------------------------------
110  Inter SAN/MSSC for
      Phase 2-2 Testing       0d      2/1/99      2/1/99
------------------------------------------------------------------------------------------------------------------------------------
111  Between SANs and
      Backup NMC              0d     11/1/99     11/1/99
------------------------------------------------------------------------------------------------------------------------------------
112
------------------------------------------------------------------------------------------------------------------------------------
113  ICO SUPPLIED
      INFORMATION           285d      3/4/97      4/1/98
------------------------------------------------------------------------------------------------------------------------------------
114  Draft AMBE Voice Codec
      Software Interface      0d      3/4/97      3/4/97           3/4
------------------------------------------------------------------------------------------------------------------------------------
115  High Level Functional
      Description             0d      4/7/97      4/7/97                  4/7
------------------------------------------------------------------------------------------------------------------------------------
116  Preliminary NMS/SCC
      ICD Including
      Definition of
      Ephemeris               0d     5/12/97     5/12/97                         5/12
------------------------------------------------------------------------------------------------------------------------------------
117  Voice Codec Floating
      Point - C Source Code   0d     8/15/97     8/15/97                                              8/15
------------------------------------------------------------------------------------------------------------------------------------
118  Final NMS/SCC ICD
      Including Definition
      of Ephemeris Data       0d     9/15/97     9/15/97                                                     9/15
------------------------------------------------------------------------------------------------------------------------------------
119  Low Level Functional
      Description             0d     9/22/97     9/22/97                                                     9/22
------------------------------------------------------------------------------------------------------------------------------------
120  Air Interface Final
      Version 4               0d     9/24/97     9/24/97                                                     9/24
------------------------------------------------------------------------------------------------------------------------------------
121  Locations of China
     and Brazil SAN Sites     0d      4/1/98      4/1/98
------------------------------------------------------------------------------------------------------------------------------------
122
------------------------------------------------------------------------------------------------------------------------------------
123
------------------------------------------------------------------------------------------------------------------------------------
124  RFT EQUIPMENT          530d      3/3/97     2/15/99
------------------------------------------------------------------------------------------------------------------------------------
125  RFT INSTALLATION DRM     2d     4/24/97     4/25/97
------------------------------------------------------------------------------------------------------------------------------------
126  RFT FINAL DESIGN
      PACKAGE                47d      3/3/97      5/6/97
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
                                                                          1998
                                     ----------------------------------------------------------------------------------
ID     TASK NAME                       J      F      M      A      M      J      J      A      S      O      N      D
-----------------------------------------------------------------------------------------------------------------------
<S>    <C>                           <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>
109  Between SAN and Primary
      NMC for MSSC#1/HLR Testing
-----------------------------------------------------------------------------------------------------------------------
110  Inter SAN/MSSC for
      Phase 2-2 Testing
-----------------------------------------------------------------------------------------------------------------------
111  Between SANs and Backup NMC
-----------------------------------------------------------------------------------------------------------------------
112
-----------------------------------------------------------------------------------------------------------------------
113  ICO SUPPLIED INFORMATION
-----------------------------------------------------------------------------------------------------------------------
114  Draft AMBE Voice Codec
      Software Interface
-----------------------------------------------------------------------------------------------------------------------
115  High Level Functional
      Description
-----------------------------------------------------------------------------------------------------------------------
116  Preliminary NMS/SCC ICD
      Including Definition of
      Ephemeris
-----------------------------------------------------------------------------------------------------------------------
117  Voice Codec Floating
      Point - C Source Code
-----------------------------------------------------------------------------------------------------------------------
118  Final NMS/SCC ICD Including
      Definition of Ephemeris Data
-----------------------------------------------------------------------------------------------------------------------
119  Low Level Functional
      Description
-----------------------------------------------------------------------------------------------------------------------
120  Air Interface Final Version 4
-----------------------------------------------------------------------------------------------------------------------
121  Locations of China and Brazil
      SAN Sites                                            4/1
-----------------------------------------------------------------------------------------------------------------------
122
-----------------------------------------------------------------------------------------------------------------------
123
-----------------------------------------------------------------------------------------------------------------------
124  RFT EQUIPMENT
-----------------------------------------------------------------------------------------------------------------------
125  RFT INSTALLATION DRM
-----------------------------------------------------------------------------------------------------------------------
126  RFT FINAL DESIGN PACKAGE
-----------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
                                                                          1999
                                     ----------------------------------------------------------------------------------
ID     TASK NAME                       J      F      M      A      M      J      J      A      S      O      N      D
-----------------------------------------------------------------------------------------------------------------------
<S>    <C>                           <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>
109  Between SAN and Primary
      NMC for MSSC#1/HLR Testing             2/1
-----------------------------------------------------------------------------------------------------------------------
110  Inter SAN/MSSC for
      Phase 2-2 Testing                      2/1
-----------------------------------------------------------------------------------------------------------------------
111  Between SANs and Backup NMC                                                                            11/1
-----------------------------------------------------------------------------------------------------------------------
112
-----------------------------------------------------------------------------------------------------------------------
113  ICO SUPPLIED INFORMATION
-----------------------------------------------------------------------------------------------------------------------
114  Draft AMBE Voice Codec
      Software Interface
-----------------------------------------------------------------------------------------------------------------------
115  High Level Functional
      Description
-----------------------------------------------------------------------------------------------------------------------
116  Preliminary NMS/SCC ICD
      Including Definition of
      Ephemeris
-----------------------------------------------------------------------------------------------------------------------
117  Voice Codec Floating
      Point - C Source Code
-----------------------------------------------------------------------------------------------------------------------
118  Final NMS/SCC ICD Including
      Definition of Ephemeris Data
-----------------------------------------------------------------------------------------------------------------------
119  Low Level Functional
      Description
-----------------------------------------------------------------------------------------------------------------------
120  Air Interface Final Version 4
-----------------------------------------------------------------------------------------------------------------------
121  Locations of China and Brazil
      SAN Sites
-----------------------------------------------------------------------------------------------------------------------
122
-----------------------------------------------------------------------------------------------------------------------
123
-----------------------------------------------------------------------------------------------------------------------
124  RFT EQUIPMENT
-----------------------------------------------------------------------------------------------------------------------
125  RFT INSTALLATION DRM
-----------------------------------------------------------------------------------------------------------------------
126  RFT FINAL DESIGN PACKAGE
-----------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
                                                                          2000
                                     ----------------------------------------------------------------------------------
ID     TASK NAME                       J      F      M      A      M      J      J      A      S      O      N      D
-----------------------------------------------------------------------------------------------------------------------
<S>    <C>                           <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>
109  Between SAN and Primary
      NMC for MSSC#1/HLR Testing
-----------------------------------------------------------------------------------------------------------------------
110  Inter SAN/MSSC for
      Phase 2-2 Testing
-----------------------------------------------------------------------------------------------------------------------
111  Between SANs and Backup NMC
-----------------------------------------------------------------------------------------------------------------------
112
-----------------------------------------------------------------------------------------------------------------------
113  ICO SUPPLIED INFORMATION
-----------------------------------------------------------------------------------------------------------------------
114  Draft AMBE Voice Codec
      Software Interface
-----------------------------------------------------------------------------------------------------------------------
115  High Level Functional
      Description
-----------------------------------------------------------------------------------------------------------------------
116  Preliminary NMS/SCC ICD
      Including Definition of
      Ephemeris
-----------------------------------------------------------------------------------------------------------------------
117  Voice Codec Floating
      Point - C Source Code
-----------------------------------------------------------------------------------------------------------------------
118  Final NMS/SCC ICD Including
      Definition of Ephemeris Data
-----------------------------------------------------------------------------------------------------------------------
119  Low Level Functional
      Description
-----------------------------------------------------------------------------------------------------------------------
120  Air Interface Final Version 4
-----------------------------------------------------------------------------------------------------------------------
121  Locations of China and Brazil
      SAN Sites
-----------------------------------------------------------------------------------------------------------------------
122
-----------------------------------------------------------------------------------------------------------------------
123
-----------------------------------------------------------------------------------------------------------------------
124  RFT EQUIPMENT
-----------------------------------------------------------------------------------------------------------------------
125  RFT INSTALLATION DRM
-----------------------------------------------------------------------------------------------------------------------
126  RFT FINAL DESIGN PACKAGE
-----------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------
</TABLE>

PROJECT: 18 NOV ICO MLS VER 39.MPP
DATE: 11/18/97

DOC: 770019 VERSION 3.9       PAGE 7          REVISED ON THE 12TH NOVEMBER, 1997
<PAGE>   1045

                   IGF PROJECT MASTER LEVEL SCHEDULE REV 3.9

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                                              1997
                                                            ------------------------------------------------------------------------
ID   TASK NAME               DUR      START      FINISH      F      M      A      M      J      J      A      S      O      N     D
------------------------------------------------------------------------------------------------------------------------------------
<S>  <C>                    <C>     <C>        <C>         <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
127  RFT MANUFACTURING      465d     3/17/97     12/4/98
------------------------------------------------------------------------------------------------------------------------------------
128  ANTENNA PREASSEMBLY     35d      6/2/97     7/18/97
------------------------------------------------------------------------------------------------------------------------------------
129  RFT FAT PHASE 1 TEST    14d     7/22/97      8/8/97
------------------------------------------------------------------------------------------------------------------------------------
130  ANCHOR BOLTS &
      TEMPLATE
      TRANSPORTATION        123d     5/22/97     11/7/97
------------------------------------------------------------------------------------------------------------------------------------
131  ICO SUPPLIED
      SHIPPING &
      CONSIGNEE
      INFORMATION FOR RF    409d      7/9/97     1/10/99
------------------------------------------------------------------------------------------------------------------------------------
132  USA                     30d      7/9/97     8/19/97
------------------------------------------------------------------------------------------------------------------------------------
133  INDIA                   30d     7/15/97     8/25/97
------------------------------------------------------------------------------------------------------------------------------------
134  AUSTRALIA               30d     8/11/97     9/21/97
------------------------------------------------------------------------------------------------------------------------------------
135  SOUTH AFRICA            30d     9/25/97     11/4/97
------------------------------------------------------------------------------------------------------------------------------------
136  CHILE                   30d     9/15/97    10/26/97
------------------------------------------------------------------------------------------------------------------------------------
137  GERMANY                 30d     8/18/97     9/28/97
------------------------------------------------------------------------------------------------------------------------------------
138  INDONESIA               30d      3/2/98     4/12/98
------------------------------------------------------------------------------------------------------------------------------------
139  KOREA                   30d      3/9/98     4/19/98
------------------------------------------------------------------------------------------------------------------------------------
140  MEXICO                  30d      6/1/98      7/8/98
------------------------------------------------------------------------------------------------------------------------------------
141  UAE                     30d      6/5/98     7/14/98
------------------------------------------------------------------------------------------------------------------------------------
142  CHINA                   30d     12/1/98     1/10/99
------------------------------------------------------------------------------------------------------------------------------------
143  BRAZIL                  30d    10/15/98    11/24/98
------------------------------------------------------------------------------------------------------------------------------------
144  RFT EQUIPMENT
      TRANSPORTATION        408d     8/20/97     2/15/99
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
                                                                          1998
                                     ----------------------------------------------------------------------------------
ID     TASK NAME                       J      F      M      A      M      J      J      A      S      O      N      D
-----------------------------------------------------------------------------------------------------------------------
<S>    <C>                           <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>
127  RFT MANUFACTURING
-----------------------------------------------------------------------------------------------------------------------
128  ANTENNA PREASSEMBLY
-----------------------------------------------------------------------------------------------------------------------
129  RFT FAT PHASE 1 TEST
-----------------------------------------------------------------------------------------------------------------------
130  ANCHOR BOLTS & TEMPLATE
      TRANSPORTATION
-----------------------------------------------------------------------------------------------------------------------
131  ICO SUPPLIED SHIPPING &
      CONSIGNEE INFORMATION
      FOR RF
-----------------------------------------------------------------------------------------------------------------------
132  USA
-----------------------------------------------------------------------------------------------------------------------
133  INDIA
-----------------------------------------------------------------------------------------------------------------------
134  AUSTRALIA
-----------------------------------------------------------------------------------------------------------------------
135  SOUTH AFRICA
-----------------------------------------------------------------------------------------------------------------------
136  CHILE
-----------------------------------------------------------------------------------------------------------------------
137  GERMANY
-----------------------------------------------------------------------------------------------------------------------
138  INDONESIA
-----------------------------------------------------------------------------------------------------------------------
139  KOREA
-----------------------------------------------------------------------------------------------------------------------
140  MEXICO
-----------------------------------------------------------------------------------------------------------------------
141  UAE
-----------------------------------------------------------------------------------------------------------------------
142  CHINA
-----------------------------------------------------------------------------------------------------------------------
143  BRAZIL
-----------------------------------------------------------------------------------------------------------------------
144  RFT EQUIPMENT TRANSPORTATION
-----------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
                                                                          1999
                                     ----------------------------------------------------------------------------------
ID     TASK NAME                       J      F      M      A      M      J      J      A      S      O      N      D
-----------------------------------------------------------------------------------------------------------------------
<S>    <C>                           <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>
127  RFT MANUFACTURING
-----------------------------------------------------------------------------------------------------------------------
128  ANTENNA PREASSEMBLY
-----------------------------------------------------------------------------------------------------------------------
129  RFT FAT PHASE 1 TEST
-----------------------------------------------------------------------------------------------------------------------
130  ANCHOR BOLTS & TEMPLATE
      TRANSPORTATION
-----------------------------------------------------------------------------------------------------------------------
131  ICO SUPPLIED SHIPPING &
      CONSIGNEE INFORMATION
      FOR RF
-----------------------------------------------------------------------------------------------------------------------
132  USA
-----------------------------------------------------------------------------------------------------------------------
133  INDIA
-----------------------------------------------------------------------------------------------------------------------
134  AUSTRALIA
-----------------------------------------------------------------------------------------------------------------------
135  SOUTH AFRICA
-----------------------------------------------------------------------------------------------------------------------
136  CHILE
-----------------------------------------------------------------------------------------------------------------------
137  GERMANY
-----------------------------------------------------------------------------------------------------------------------
138  INDONESIA
-----------------------------------------------------------------------------------------------------------------------
139  KOREA
-----------------------------------------------------------------------------------------------------------------------
140  MEXICO
-----------------------------------------------------------------------------------------------------------------------
141  UAE
-----------------------------------------------------------------------------------------------------------------------
142  CHINA
-----------------------------------------------------------------------------------------------------------------------
143  BRAZIL
-----------------------------------------------------------------------------------------------------------------------
144  RFT EQUIPMENT TRANSPORTATION
-----------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
                                                                          2000
                                     ----------------------------------------------------------------------------------
ID     TASK NAME                       J      F      M      A      M      J      J      A      S      O      N      D
-----------------------------------------------------------------------------------------------------------------------
<S>    <C>                           <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>
127  RFT MANUFACTURING
-----------------------------------------------------------------------------------------------------------------------
128  ANTENNA PREASSEMBLY
-----------------------------------------------------------------------------------------------------------------------
129  RFT FAT PHASE 1 TEST
-----------------------------------------------------------------------------------------------------------------------
130  ANCHOR BOLTS & TEMPLATE
      TRANSPORTATION
-----------------------------------------------------------------------------------------------------------------------
131  ICO SUPPLIED SHIPPING &
      CONSIGNEE INFORMATION
      FOR RF
-----------------------------------------------------------------------------------------------------------------------
132  USA
-----------------------------------------------------------------------------------------------------------------------
133  INDIA
-----------------------------------------------------------------------------------------------------------------------
134  AUSTRALIA
-----------------------------------------------------------------------------------------------------------------------
135  SOUTH AFRICA
-----------------------------------------------------------------------------------------------------------------------
136  CHILE
-----------------------------------------------------------------------------------------------------------------------
137  GERMANY
-----------------------------------------------------------------------------------------------------------------------
138  INDONESIA
-----------------------------------------------------------------------------------------------------------------------
139  KOREA
-----------------------------------------------------------------------------------------------------------------------
140  MEXICO
-----------------------------------------------------------------------------------------------------------------------
141  UAE
-----------------------------------------------------------------------------------------------------------------------
142  CHINA
-----------------------------------------------------------------------------------------------------------------------
143  BRAZIL
-----------------------------------------------------------------------------------------------------------------------
144  RFT EQUIPMENT TRANSPORTATION
-----------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------
</TABLE>

PROJECT: 18 NOV ICO MLS VER 39.MPP
DATE: 11/18/97

DOC: 770019 VERSION 3.9       PAGE 8          REVISED ON THE 12TH NOVEMBER, 1997
<PAGE>   1046

                   IGF PROJECT MASTER LEVEL SCHEDULE REV 3.9

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                                              1997
                                                            ------------------------------------------------------------------------
ID   TASK NAME               DUR     START      FINISH       F      M      A      M      J      J      A      S      O      N     D
------------------------------------------------------------------------------------------------------------------------------------
<S>  <C>                   <C>     <C>        <C>         <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
145  USA                   163d     8/20/97    3/27/98
------------------------------------------------------------------------------------------------------------------------------------
146   USA RFT No 1          35d     8/25/97   10/10/97
------------------------------------------------------------------------------------------------------------------------------------
147   USA SHELTERS x5       38d     8/20/97   10/10/97
------------------------------------------------------------------------------------------------------------------------------------
148   USA ANTENNA No 1      36d     8/25/97   10/13/97
------------------------------------------------------------------------------------------------------------------------------------
149   USA RFT No 2          35d     10/1/97   11/15/97
------------------------------------------------------------------------------------------------------------------------------------
150   USA ANTENNA No 2      35d     10/1/97   11/15/97
------------------------------------------------------------------------------------------------------------------------------------
151   USA RFT Nos 3-5       36d     2/10/98    3/27/98
------------------------------------------------------------------------------------------------------------------------------------
152   USA ANTENNA Nos 3-5   36d     2/10/98    3/27/98
------------------------------------------------------------------------------------------------------------------------------------
153  INDIA                 149d     8/26/97    3/13/98
------------------------------------------------------------------------------------------------------------------------------------
154   INDIA RFT No 1        32d     9/11/97   10/26/97
------------------------------------------------------------------------------------------------------------------------------------
155   INDIA SHELTERS x5     46d     8/26/97   10/28/97
------------------------------------------------------------------------------------------------------------------------------------
156   INDIA ANTENNA No 1    44d     8/26/97   10/26/97
------------------------------------------------------------------------------------------------------------------------------------
157   INDIA RFT No 2        35d     10/1/97   11/15/97
------------------------------------------------------------------------------------------------------------------------------------
158   INDIA ANTENNA No 2    45d     10/1/97   11/28/97
------------------------------------------------------------------------------------------------------------------------------------
159   INDIA RFT No 3        33d    12/16/97    1/29/98
------------------------------------------------------------------------------------------------------------------------------------
160   INDIA ANTENNA No 3    45d    12/15/97    2/12/98
------------------------------------------------------------------------------------------------------------------------------------
161   INDIA RFT Nos 4 & 5   36d     1/12/98    2/26/98
------------------------------------------------------------------------------------------------------------------------------------
162   INDIA ANTENNA Nos 3-5 48d     1/12/98    3/13/98
------------------------------------------------------------------------------------------------------------------------------------

</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
                                                                 1998
                             ------------------------------------------------------------------------------
ID   TASK NAME               J      F      M      A      M      J      J      A      S      O      N     D
-----------------------------------------------------------------------------------------------------------
<S>  <C>                    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
145  USA
-----------------------------------------------------------------------------------------------------------
146   USA RFT No 1
-----------------------------------------------------------------------------------------------------------
147   USA SHELTERS x5
-----------------------------------------------------------------------------------------------------------
148   USA ANTENNA No 1
-----------------------------------------------------------------------------------------------------------
149   USA RFT No 2
-----------------------------------------------------------------------------------------------------------
150   USA ANTENNA No 2
-----------------------------------------------------------------------------------------------------------
151   USA RFT Nos 3-5
-----------------------------------------------------------------------------------------------------------
152   USA ANTENNA Nos 3-5
-----------------------------------------------------------------------------------------------------------
153  INDIA
-----------------------------------------------------------------------------------------------------------
154   INDIA RFT No 1
-----------------------------------------------------------------------------------------------------------
155   INDIA SHELTERS x5
-----------------------------------------------------------------------------------------------------------
156   INDIA ANTENNA No 1
-----------------------------------------------------------------------------------------------------------
157   INDIA RFT No 2
-----------------------------------------------------------------------------------------------------------
158   INDIA ANTENNA No 2
-----------------------------------------------------------------------------------------------------------
159   INDIA RFT No 3
-----------------------------------------------------------------------------------------------------------
160   INDIA ANTENNA No 3
-----------------------------------------------------------------------------------------------------------
161   INDIA RFT Nos 4 & 5
-----------------------------------------------------------------------------------------------------------
162   INDIA ANTENNA Nos 3-5
-----------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
                                                                 1999
                             ------------------------------------------------------------------------------
ID   TASK NAME               J      F      M      A      M      J      J      A      S      O      N     D
-----------------------------------------------------------------------------------------------------------
<S>  <C>                    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
145  USA
-----------------------------------------------------------------------------------------------------------
146   USA RFT No 1
-----------------------------------------------------------------------------------------------------------
147   USA SHELTERS x5
-----------------------------------------------------------------------------------------------------------
148   USA ANTENNA No 1
-----------------------------------------------------------------------------------------------------------
149   USA RFT No 2
-----------------------------------------------------------------------------------------------------------
150   USA ANTENNA No 2
-----------------------------------------------------------------------------------------------------------
151   USA RFT Nos 3-5
-----------------------------------------------------------------------------------------------------------
152   USA ANTENNA Nos 3-5
-----------------------------------------------------------------------------------------------------------
153  INDIA
-----------------------------------------------------------------------------------------------------------
154   INDIA RFT No 1
-----------------------------------------------------------------------------------------------------------
155   INDIA SHELTERS x5
-----------------------------------------------------------------------------------------------------------
156   INDIA ANTENNA No 1
-----------------------------------------------------------------------------------------------------------
157   INDIA RFT No 2
-----------------------------------------------------------------------------------------------------------
158   INDIA ANTENNA No 2
-----------------------------------------------------------------------------------------------------------
159   INDIA RFT No 3
-----------------------------------------------------------------------------------------------------------
160   INDIA ANTENNA No 3
-----------------------------------------------------------------------------------------------------------
161   INDIA RFT Nos 4 & 5
-----------------------------------------------------------------------------------------------------------
162   INDIA ANTENNA Nos 3-5
-----------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
                                                                 2000
                             ------------------------------------------------------------------------------
ID   TASK NAME               J      F      M      A      M      J      J      A      S      O      N     D
-----------------------------------------------------------------------------------------------------------
<S>  <C>                    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
145  USA
-----------------------------------------------------------------------------------------------------------
146   USA RFT No 1
-----------------------------------------------------------------------------------------------------------
147   USA SHELTERS x5
-----------------------------------------------------------------------------------------------------------
148   USA ANTENNA No 1
-----------------------------------------------------------------------------------------------------------
149   USA RFT No 2
-----------------------------------------------------------------------------------------------------------
150   USA ANTENNA No 2
-----------------------------------------------------------------------------------------------------------
151   USA RFT Nos 3-5
-----------------------------------------------------------------------------------------------------------
152   USA ANTENNA Nos 3-5
-----------------------------------------------------------------------------------------------------------
153  INDIA
-----------------------------------------------------------------------------------------------------------
154   INDIA RFT No 1
-----------------------------------------------------------------------------------------------------------
155   INDIA SHELTERS x5
-----------------------------------------------------------------------------------------------------------
156   INDIA ANTENNA No 1
-----------------------------------------------------------------------------------------------------------
157   INDIA RFT No 2
-----------------------------------------------------------------------------------------------------------
158   INDIA ANTENNA No 2
-----------------------------------------------------------------------------------------------------------
159   INDIA RFT No 3
-----------------------------------------------------------------------------------------------------------
160   INDIA ANTENNA No 3
-----------------------------------------------------------------------------------------------------------
161   INDIA RFT Nos 4 & 5
-----------------------------------------------------------------------------------------------------------
162   INDIA ANTENNA Nos 3-5
-----------------------------------------------------------------------------------------------------------
</TABLE>
PROJECT: 18 NOV ICO MLS VER 39.MPP
DATE: 11/18/97

DOC: 770019 VERSION 3.9       PAGE 9          REVISED ON THE 12TH NOVEMBER, 1997

<PAGE>   1047

                   IGF PROJECT MASTER LEVEL SCHEDULE REV 3.9

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                                              1997
                                                           -------------------------------------------------------------------------
ID   TASK NAME                   DUR   START     FINISH      F      M      A      M      J      J      A      S      O      N     D
------------------------------------------------------------------------------------------------------------------------------------
<S>  <C>                         <C>   <C>       <C>        <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
163  AUSTRALIA                    87d   9/22/97   1/18/98
------------------------------------------------------------------------------------------------------------------------------------
164   AUSTRALIA RFT No 1          40d   9/25/97  11/17/97
------------------------------------------------------------------------------------------------------------------------------------
165   AUSTRALIA SHELTERS x5       43d   9/22/97  11/17/97
------------------------------------------------------------------------------------------------------------------------------------
166   AUSTRALIA ANTENNA No 1      31d   9/29/97   11/7/97
------------------------------------------------------------------------------------------------------------------------------------
167   AUSTRALIA RFT No 2          33d  10/15/97  11/26/97
------------------------------------------------------------------------------------------------------------------------------------
168   AUSTRALIA ANTENNA No 2      27d  10/15/97  11/18/97
------------------------------------------------------------------------------------------------------------------------------------
169   AUSTRALIA RFT Nos 3 & 4      9d  11/17/97  11/27/97
------------------------------------------------------------------------------------------------------------------------------------
170   AUSTRALIA ANTENNA No 3 & 4  25d  11/17/97  12/19/97
------------------------------------------------------------------------------------------------------------------------------------
171   AUSTRALIA RFT No 5          30d   12/8/97   1/18/98
------------------------------------------------------------------------------------------------------------------------------------
172   AUSTRALIA ANTENNA No 5      25d   12/8/97   1/10/98
------------------------------------------------------------------------------------------------------------------------------------
173  SOUTH AFRICA                 99d   11/5/97   3/17/98
------------------------------------------------------------------------------------------------------------------------------------
174   S.AFRICA RFT No 1 & 2       44d   11/5/97    1/2/98
------------------------------------------------------------------------------------------------------------------------------------
175   S.AFRICA SHELTERS x5        34d  11/15/97  12/31/97
------------------------------------------------------------------------------------------------------------------------------------
176   S.AFRICA ANTENNA No 1 & 2   45d   11/5/97    1/5/98
------------------------------------------------------------------------------------------------------------------------------------
177   S.AFRICA RFT No 3, 4 & 5    44d   1/16/98   3/14/98
------------------------------------------------------------------------------------------------------------------------------------
178   S.AFRICA ANTENNA 3,         46d   1/16/98   3/17/98
      4 & 5
------------------------------------------------------------------------------------------------------------------------------------
179  CHILE                        71d   10/27/97  1/29/98
------------------------------------------------------------------------------------------------------------------------------------
180   CHILE RFT No 1 & 2          47d   10/27/97 12/26/97
------------------------------------------------------------------------------------------------------------------------------------

</TABLE>

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------
                                                                      1998
                                  ------------------------------------------------------------------------------
ID   TASK NAME                    J      F      M      A      M      J      J      A      S      O      N     D
----------------------------------------------------------------------------------------------------------------
<S>  <C>                         <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
163  AUSTRALIA
----------------------------------------------------------------------------------------------------------------
164   AUSTRALIA RFT No 1
----------------------------------------------------------------------------------------------------------------
165   AUSTRALIA SHELTERS x5
----------------------------------------------------------------------------------------------------------------
166   AUSTRALIA ANTENNA No 1
----------------------------------------------------------------------------------------------------------------
167   AUSTRALIA RFT No 2
----------------------------------------------------------------------------------------------------------------
168   AUSTRALIA ANTENNA No 2
----------------------------------------------------------------------------------------------------------------
169   AUSTRALIA RFT Nos 3 & 4
----------------------------------------------------------------------------------------------------------------
170   AUSTRALIA ANTENNA No 3 & 4
----------------------------------------------------------------------------------------------------------------
171   AUSTRALIA RFT No 5
----------------------------------------------------------------------------------------------------------------
172   AUSTRALIA ANTENNA No 5
----------------------------------------------------------------------------------------------------------------
173  SOUTH AFRICA
----------------------------------------------------------------------------------------------------------------
174   S.AFRICA RFT No 1 & 2
----------------------------------------------------------------------------------------------------------------
175   S.AFRICA SHELTERS x5
----------------------------------------------------------------------------------------------------------------
176   S.AFRICA ANTENNA No 1 & 2
----------------------------------------------------------------------------------------------------------------
177   S.AFRICA RFT No 3, 4 & 5
----------------------------------------------------------------------------------------------------------------
178   S.AFRICA ANTENNA 3,
      4 & 5
----------------------------------------------------------------------------------------------------------------
179  CHILE
----------------------------------------------------------------------------------------------------------------
180   CHILE RFT No 1 & 2
----------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------
                                                                      1999
                                  ------------------------------------------------------------------------------
ID   TASK NAME                    J      F      M      A      M      J      J      A      S      O      N     D
----------------------------------------------------------------------------------------------------------------
<S>  <C>                         <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
163  AUSTRALIA
----------------------------------------------------------------------------------------------------------------
164   AUSTRALIA RFT No 1
----------------------------------------------------------------------------------------------------------------
165   AUSTRALIA SHELTERS x5
----------------------------------------------------------------------------------------------------------------
166   AUSTRALIA ANTENNA No 1
----------------------------------------------------------------------------------------------------------------
167   AUSTRALIA RFT No 2
----------------------------------------------------------------------------------------------------------------
168   AUSTRALIA ANTENNA No 2
----------------------------------------------------------------------------------------------------------------
169   AUSTRALIA RFT Nos 3 & 4
----------------------------------------------------------------------------------------------------------------
170   AUSTRALIA ANTENNA No 3 & 4
----------------------------------------------------------------------------------------------------------------
171   AUSTRALIA RFT No 5
----------------------------------------------------------------------------------------------------------------
172   AUSTRALIA ANTENNA No 5
----------------------------------------------------------------------------------------------------------------
173  SOUTH AFRICA
----------------------------------------------------------------------------------------------------------------
174   S.AFRICA RFT No 1 & 2
----------------------------------------------------------------------------------------------------------------
175   S.AFRICA SHELTERS x5
----------------------------------------------------------------------------------------------------------------
176   S.AFRICA ANTENNA No 1 & 2
----------------------------------------------------------------------------------------------------------------
177   S.AFRICA RFT No 3, 4 & 5
----------------------------------------------------------------------------------------------------------------
178   S.AFRICA ANTENNA 3,
      4 & 5
----------------------------------------------------------------------------------------------------------------
179  CHILE
----------------------------------------------------------------------------------------------------------------
180   CHILE RFT No 1 & 2
----------------------------------------------------------------------------------------------------------------

</TABLE>

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------
                                                                      2000
                                  ------------------------------------------------------------------------------
ID   TASK NAME                    J      F      M      A      M      J      J      A      S      O      N     D
----------------------------------------------------------------------------------------------------------------
<S>  <C>                         <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
163  AUSTRALIA
----------------------------------------------------------------------------------------------------------------
164   AUSTRALIA RFT No 1
----------------------------------------------------------------------------------------------------------------
165   AUSTRALIA SHELTERS x5
----------------------------------------------------------------------------------------------------------------
166   AUSTRALIA ANTENNA No 1
----------------------------------------------------------------------------------------------------------------
167   AUSTRALIA RFT No 2
----------------------------------------------------------------------------------------------------------------
168   AUSTRALIA ANTENNA No 2
----------------------------------------------------------------------------------------------------------------
169   AUSTRALIA RFT Nos 3 & 4
----------------------------------------------------------------------------------------------------------------
170   AUSTRALIA ANTENNA No 3 & 4
----------------------------------------------------------------------------------------------------------------
171   AUSTRALIA RFT No 5
----------------------------------------------------------------------------------------------------------------
172   AUSTRALIA ANTENNA No 5
----------------------------------------------------------------------------------------------------------------
173  SOUTH AFRICA
----------------------------------------------------------------------------------------------------------------
174   S.AFRICA RFT No 1 & 2
----------------------------------------------------------------------------------------------------------------
175   S.AFRICA SHELTERS x5
----------------------------------------------------------------------------------------------------------------
176   S.AFRICA ANTENNA No 1 & 2
----------------------------------------------------------------------------------------------------------------
177   S.AFRICA RFT No 3, 4 & 5
----------------------------------------------------------------------------------------------------------------
178   S.AFRICA ANTENNA 3,
      4 & 5
----------------------------------------------------------------------------------------------------------------
179  CHILE
----------------------------------------------------------------------------------------------------------------
180   CHILE RFT No 1 & 2
----------------------------------------------------------------------------------------------------------------
</TABLE>
PROJECT: 18 NOV ICO MLS VER 39.MPP
DATE: 11/18/97

DOC: 770019 VERSION 3.9       PAGE 10         REVISED ON THE 12TH NOVEMBER, 1997

<PAGE>   1048

                   IGF PROJECT MASTER LEVEL SCHEDULE REV 3.9

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                                              1997
                                                            ------------------------------------------------------------------------
ID   TASK NAME               DUR      START      FINISH      F      M      A      M      J      J      A      S      O      N     D
------------------------------------------------------------------------------------------------------------------------------------
<S>  <C>                    <C>     <C>        <C>         <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
181  CHILE SHELTERS X5       38d    11/11/97    12/31/97
------------------------------------------------------------------------------------------------------------------------------------
182  CHILE ANTENNA NO 1 & 2  50d    10/27/97    12/31/97
------------------------------------------------------------------------------------------------------------------------------------
183  CHILE RFT NO 3, 4 & 5   44d    11/25/97     1/24/98
------------------------------------------------------------------------------------------------------------------------------------
184  CHILE ANTENNA
       NO 3, 4 & 5           48d    11/25/97     1/29/98
------------------------------------------------------------------------------------------------------------------------------------
185  GERMANY                155d     9/29/97     4/24/98
------------------------------------------------------------------------------------------------------------------------------------
186  GERMANY RFT NO 1        39d     9/29/97    11/18/97
------------------------------------------------------------------------------------------------------------------------------------
187  GERMANY RFT NO 2        38d    10/15/97     12/3/97
------------------------------------------------------------------------------------------------------------------------------------
188  GERMANY SHELTERS X5     12d    11/15/97     12/1/97
------------------------------------------------------------------------------------------------------------------------------------
189  GERMANY ANTENNA NO 1    37d     9/29/97    11/15/97
------------------------------------------------------------------------------------------------------------------------------------
190  GERMANY ANTENNA NO 2    36d    10/15/97     12/1/97
------------------------------------------------------------------------------------------------------------------------------------
191  GERMANY RFT
      NO 3, 4 & 5            34d     3/10/98     4/24/98
------------------------------------------------------------------------------------------------------------------------------------
192  GERMANY ANTENNA
      NO 3, 4 & 5            31d     3/13/98     4/24/98
------------------------------------------------------------------------------------------------------------------------------------
193  INDONESIA               51d      4/8/98     6/12/98
------------------------------------------------------------------------------------------------------------------------------------
194  INDONESIA RFT
      NO 1, 2 & 3            24d     4/16/98     5/18/98
------------------------------------------------------------------------------------------------------------------------------------
195  INDONESIA SHELTER X 5   31d      4/8/98     5/19/98
------------------------------------------------------------------------------------------------------------------------------------
196  INDONESIA ANTENNA
      NO 1, 2 & 3            26d     4/14/98     5/18/98
------------------------------------------------------------------------------------------------------------------------------------
197  INDONESIA RFT
      NO 4 & 5               28d     5/11/98     6/12/98
------------------------------------------------------------------------------------------------------------------------------------
198  INDONESIA ANTENNA
      4 & 5                  29d      5/8/98     6/12/98
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
                                                                          1998
                                     ----------------------------------------------------------------------------------
ID     TASK NAME                       J      F      M      A      M      J      J      A      S      O      N      D
-----------------------------------------------------------------------------------------------------------------------
<S>    <C>                           <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>
181    CHILE SHELTERS X5
-----------------------------------------------------------------------------------------------------------------------
182    CHILE ANTENNA NO 1 & 2
-----------------------------------------------------------------------------------------------------------------------
183    CHILE RFT NO 3, 4 & 5
-----------------------------------------------------------------------------------------------------------------------
184    CHILE ANTENNA
         NO 3, 4 & 5
-----------------------------------------------------------------------------------------------------------------------
185    GERMANY
-----------------------------------------------------------------------------------------------------------------------
186    GERMANY RFT NO 1
-----------------------------------------------------------------------------------------------------------------------
187    GERMANY RFT NO 2
-----------------------------------------------------------------------------------------------------------------------
188    GERMANY SHELTERS X5
-----------------------------------------------------------------------------------------------------------------------
189    GERMANY ANTENNA NO 1
-----------------------------------------------------------------------------------------------------------------------
190    GERMANY ANTENNA NO 2
-----------------------------------------------------------------------------------------------------------------------
191    GERMANY RFT
        NO 3, 4 & 5
-----------------------------------------------------------------------------------------------------------------------
192    GERMANY ANTENNA
        NO 3, 4 & 5
-----------------------------------------------------------------------------------------------------------------------
193    INDONESIA
-----------------------------------------------------------------------------------------------------------------------
194    INDONESIA RFT
        NO 1, 2 & 3
-----------------------------------------------------------------------------------------------------------------------
195    INDONESIA SHELTER X 5
-----------------------------------------------------------------------------------------------------------------------
196    INDONESIA ANTENNA
        NO 1, 2 & 3
-----------------------------------------------------------------------------------------------------------------------
197    INDONESIA RFT
        NO 4 & 5
-----------------------------------------------------------------------------------------------------------------------
198    INDONESIA ANTENNA
        4 & 5
-----------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
                                                                          1999
                                     ----------------------------------------------------------------------------------
ID     TASK NAME                       J      F      M      A      M      J      J      A      S      O      N      D
-----------------------------------------------------------------------------------------------------------------------
<S>    <C>                           <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>
181    CHILE SHELTERS X5
-----------------------------------------------------------------------------------------------------------------------
182    CHILE ANTENNA NO 1 & 2
-----------------------------------------------------------------------------------------------------------------------
183    CHILE RFT NO 3, 4 & 5
-----------------------------------------------------------------------------------------------------------------------
184    CHILE ANTENNA
         NO 3, 4 & 5
-----------------------------------------------------------------------------------------------------------------------
185    GERMANY
-----------------------------------------------------------------------------------------------------------------------
186    GERMANY RFT NO 1
-----------------------------------------------------------------------------------------------------------------------
187    GERMANY RFT NO 2
-----------------------------------------------------------------------------------------------------------------------
188    GERMANY SHELTERS X5
-----------------------------------------------------------------------------------------------------------------------
189    GERMANY ANTENNA NO 1
-----------------------------------------------------------------------------------------------------------------------
190    GERMANY ANTENNA NO 2
-----------------------------------------------------------------------------------------------------------------------
191    GERMANY RFT
        NO 3, 4 & 5
-----------------------------------------------------------------------------------------------------------------------
192    GERMANY ANTENNA
        NO 3, 4 & 5
-----------------------------------------------------------------------------------------------------------------------
193    INDONESIA
-----------------------------------------------------------------------------------------------------------------------
194    INDONESIA RFT
        NO 1, 2 & 3
-----------------------------------------------------------------------------------------------------------------------
195    INDONESIA SHELTER X 5
-----------------------------------------------------------------------------------------------------------------------
196    INDONESIA ANTENNA
        NO 1, 2 & 3
-----------------------------------------------------------------------------------------------------------------------
197    INDONESIA RFT
        NO 4 & 5
-----------------------------------------------------------------------------------------------------------------------
198    INDONESIA ANTENNA
        4 & 5
-----------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
                                                                          2000
                                     ----------------------------------------------------------------------------------
ID     TASK NAME                       J      F      M      A      M      J      J      A      S      O      N      D
-----------------------------------------------------------------------------------------------------------------------
<S>    <C>                           <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>
181    CHILE SHELTERS X5
-----------------------------------------------------------------------------------------------------------------------
182    CHILE ANTENNA NO 1 & 2
-----------------------------------------------------------------------------------------------------------------------
183    CHILE RFT NO 3, 4 & 5
-----------------------------------------------------------------------------------------------------------------------
184    CHILE ANTENNA
         NO 3, 4 & 5
-----------------------------------------------------------------------------------------------------------------------
185    GERMANY
-----------------------------------------------------------------------------------------------------------------------
186    GERMANY RFT NO 1
-----------------------------------------------------------------------------------------------------------------------
187    GERMANY RFT NO 2
-----------------------------------------------------------------------------------------------------------------------
188    GERMANY SHELTERS X5
-----------------------------------------------------------------------------------------------------------------------
189    GERMANY ANTENNA NO 1
-----------------------------------------------------------------------------------------------------------------------
190    GERMANY ANTENNA NO 2
-----------------------------------------------------------------------------------------------------------------------
191    GERMANY RFT
        NO 3, 4 & 5
-----------------------------------------------------------------------------------------------------------------------
192    GERMANY ANTENNA
        NO 3, 4 & 5
-----------------------------------------------------------------------------------------------------------------------
193    INDONESIA
-----------------------------------------------------------------------------------------------------------------------
194    INDONESIA RFT
        NO 1, 2 & 3
-----------------------------------------------------------------------------------------------------------------------
195    INDONESIA SHELTER X 5
-----------------------------------------------------------------------------------------------------------------------
196    INDONESIA ANTENNA
        NO 1, 2 & 3
-----------------------------------------------------------------------------------------------------------------------
197    INDONESIA RFT
        NO 4 & 5
-----------------------------------------------------------------------------------------------------------------------
198    INDONESIA ANTENNA
        4 & 5
-----------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------
</TABLE>

PROJECT: 18 NOV ICO MLS VER 39.MPP
DATE: 11/18/97

DOC: 770019 VERSION 3.9       PAGE 11         REVISED ON THE 12TH NOVEMBER, 1997
<PAGE>   1049

                   IGF PROJECT MASTER LEVEL SCHEDULE REV 3.9

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                                              1997
                                                            ------------------------------------------------------------------------
ID   TASK NAME               DUR      START      FINISH      F      M      A      M      J      J      A      S      O      N     D
------------------------------------------------------------------------------------------------------------------------------------
<S>  <C>                    <C>     <C>        <C>         <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
199  KOREA                   58d     3/23/98      6/7/98
------------------------------------------------------------------------------------------------------------------------------------
200  KOREA RFT NO 1, & 2     15d     4/20/98      5/8/98
------------------------------------------------------------------------------------------------------------------------------------
201  KOREA SHELTER X 5       34d     3/23/98      5/7/98
------------------------------------------------------------------------------------------------------------------------------------
202  KOREA ANTENNA
      NO 1 & 2               14d     4/22/98     5/11/98
------------------------------------------------------------------------------------------------------------------------------------
203  KOREA RFT
      NO 3, 4 & 5            15d     5/19/98      6/5/98
------------------------------------------------------------------------------------------------------------------------------------
204  KOREA ANTENNA
      3, 4 & 5               16d     5/19/98      6/7/98
------------------------------------------------------------------------------------------------------------------------------------
205  MEXICO                  65d      6/5/98     8/27/98
------------------------------------------------------------------------------------------------------------------------------------
206  MEXICO RFT NO 1 & 2     34d     6/26/98      8/9/98
------------------------------------------------------------------------------------------------------------------------------------
207  MEXICO SHELTERS X 5     28d      7/4/98      8/9/98
------------------------------------------------------------------------------------------------------------------------------------
208  MEXICO ANTENNA
      NO 1 & 2               50d      6/5/98      8/9/98
------------------------------------------------------------------------------------------------------------------------------------
209  MEXICO RFT 3, 4 & 5     37d     7/13/98     8/27/98
------------------------------------------------------------------------------------------------------------------------------------
210  MEXICO ANTENNA
      3, 4 & 5               51d     6/23/98     8/26/98
------------------------------------------------------------------------------------------------------------------------------------
211  UAE                     53d     7/15/98     9/20/98
------------------------------------------------------------------------------------------------------------------------------------
212  UAE RFT NO 1, 2 & 3     31d     7/15/98     8/22/98
------------------------------------------------------------------------------------------------------------------------------------
213  UAE SHELTERS X 5        30d     7/16/98     8/22/98
------------------------------------------------------------------------------------------------------------------------------------
214  UAE ANTENNA
      NO 1, 2 & 3            31d     7/15/98     8/22/98
------------------------------------------------------------------------------------------------------------------------------------
215  UAE RFT 4 & 5           31d     8/12/98     9/20/98
------------------------------------------------------------------------------------------------------------------------------------
216  UAE ANTENNA NO 4 & 5    29d     8/14/98     9/20/98
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
                                                                          1998
                                     ----------------------------------------------------------------------------------
ID     TASK NAME                       J      F      M      A      M      J      J      A      S      O      N      D
-----------------------------------------------------------------------------------------------------------------------
<S>  <C>                             <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>
199  KOREA
-----------------------------------------------------------------------------------------------------------------------
200  KOREA RFT NO 1, & 2
-----------------------------------------------------------------------------------------------------------------------
201  KOREA SHELTER X 5
-----------------------------------------------------------------------------------------------------------------------
202  KOREA ANTENNA
      NO 1 & 2
-----------------------------------------------------------------------------------------------------------------------
203  KOREA RFT
      NO 3, 4 & 5
-----------------------------------------------------------------------------------------------------------------------
204  KOREA ANTENNA
      NO 3, 4 & 5
-----------------------------------------------------------------------------------------------------------------------
205  MEXICO
-----------------------------------------------------------------------------------------------------------------------
206  MEXICO RFT NO 1 & 2
-----------------------------------------------------------------------------------------------------------------------
207  MEXICO SHELTERS X 5
-----------------------------------------------------------------------------------------------------------------------
208  MEXICO ANTENNA
      NO 1 & 2
-----------------------------------------------------------------------------------------------------------------------
209  MEXICO RFT 3, 4 & 5
-----------------------------------------------------------------------------------------------------------------------
210  MEXICO ANTENNA
      3, 4 & 5
-----------------------------------------------------------------------------------------------------------------------
211  UAE
-----------------------------------------------------------------------------------------------------------------------
212  UAE RFT NO 1, 2 & 3
-----------------------------------------------------------------------------------------------------------------------
213  UAE SHELTERS X 5
-----------------------------------------------------------------------------------------------------------------------
214  UAE ANTENNA
      NO 1, 2 & 3
-----------------------------------------------------------------------------------------------------------------------
215  UAE RFT 4 & 5
-----------------------------------------------------------------------------------------------------------------------
216  UAE ANTENNA NO 4 & 5
-----------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
                                                                          1999
                                     ----------------------------------------------------------------------------------
ID     TASK NAME                       J      F      M      A      M      J      J      A      S      O      N      D
-----------------------------------------------------------------------------------------------------------------------
<S>  <C>                             <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>
199  KOREA
-----------------------------------------------------------------------------------------------------------------------
200  KOREA RFT NO 1, & 2
-----------------------------------------------------------------------------------------------------------------------
201  KOREA SHELTER X 5
-----------------------------------------------------------------------------------------------------------------------
202  KOREA ANTENNA
      NO 1 & 2
-----------------------------------------------------------------------------------------------------------------------
203  KOREA RFT
      NO 3, 4 & 5
-----------------------------------------------------------------------------------------------------------------------
204  KOREA ANTENNA
      NO 3, 4 & 5
-----------------------------------------------------------------------------------------------------------------------
205  MEXICO
-----------------------------------------------------------------------------------------------------------------------
206  MEXICO RFT NO 1 & 2
-----------------------------------------------------------------------------------------------------------------------
207  MEXICO SHELTERS X 5
-----------------------------------------------------------------------------------------------------------------------
208  MEXICO ANTENNA
      NO 1 & 2
-----------------------------------------------------------------------------------------------------------------------
209  MEXICO RFT 3, 4 & 5
-----------------------------------------------------------------------------------------------------------------------
210  MEXICO ANTENNA
      3, 4 & 5
-----------------------------------------------------------------------------------------------------------------------
211  UAE
-----------------------------------------------------------------------------------------------------------------------
212  UAE RFT NO 1, 2 & 3
-----------------------------------------------------------------------------------------------------------------------
213  UAE SHELTERS X 5
-----------------------------------------------------------------------------------------------------------------------
214  UAE ANTENNA
      NO 1, 2 & 3
-----------------------------------------------------------------------------------------------------------------------
215  UAE RFT 4 & 5
-----------------------------------------------------------------------------------------------------------------------
216  UAE ANTENNA 4 & 5
-----------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
                                                                          2000
                                     ----------------------------------------------------------------------------------
ID     TASK NAME                       J      F      M      A      M      J      J      A      S      O      N      D
-----------------------------------------------------------------------------------------------------------------------
<S>  <C>                             <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>
199  KOREA
-----------------------------------------------------------------------------------------------------------------------
200  KOREA RFT NO 1, & 2
-----------------------------------------------------------------------------------------------------------------------
201  KOREA SHELTER X 5
-----------------------------------------------------------------------------------------------------------------------
202  KOREA ANTENNA
      NO 1 & 2
-----------------------------------------------------------------------------------------------------------------------
203  KOREA RFT
      NO 3, 4 & 5
-----------------------------------------------------------------------------------------------------------------------
204  KOREA ANTENNA
      NO 3, 4 & 5
-----------------------------------------------------------------------------------------------------------------------
205  MEXICO
-----------------------------------------------------------------------------------------------------------------------
206  MEXICO RFT NO 1 & 2
-----------------------------------------------------------------------------------------------------------------------
207  MEXICO SHELTERS X 5
-----------------------------------------------------------------------------------------------------------------------
208  MEXICO ANTENNA
      NO 1 & 2
-----------------------------------------------------------------------------------------------------------------------
209  MEXICO RFT 3, 4 & 5
-----------------------------------------------------------------------------------------------------------------------
210  MEXICO ANTENNA
      3, 4 & 5
-----------------------------------------------------------------------------------------------------------------------
211  UAE
-----------------------------------------------------------------------------------------------------------------------
212  UAE RFT NO 1, 2 & 3
-----------------------------------------------------------------------------------------------------------------------
213  UAE SHELTERS X 5
-----------------------------------------------------------------------------------------------------------------------
214  UAE ANTENNA
      NO 1, 2 & 3
-----------------------------------------------------------------------------------------------------------------------
215  UAE RFT 4 & 5
-----------------------------------------------------------------------------------------------------------------------
216  UAE ANTENNA NO 4 & 5
-----------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------
</TABLE>

PROJECT 18 NOV ICO MLS VER 39.MPP
DATE: 11/18/97

DOC: 770019 VERSION 3.9       PAGE 12         REVISED ON THE 12TH NOVEMBER, 1997
<PAGE>   1050

                   IGF PROJECT MASTER LEVEL SCHEDULE REV 3.9

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                                              1997
                                                            ------------------------------------------------------------------------
ID  TASK NAME                 DUR    START      FINISH       F      M      A      M      J      J      A      S      O      N     D
------------------------------------------------------------------------------------------------------------------------------------
<S> <C>                     <C>    <C>        <C>         <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
217 CHINA                    52d    12/9/98     2/15/99
------------------------------------------------------------------------------------------------------------------------------------
218 CHINA RFT 1, 2 & 3       17d    1/11/99     1/31/99
------------------------------------------------------------------------------------------------------------------------------------
219 CHINA SHELTERS X 5       40d    12/9/98     1/31/99
------------------------------------------------------------------------------------------------------------------------------------
220 CHINA ANTENNA 1, 2 & 3    4d    1/27/99     1/31/99
------------------------------------------------------------------------------------------------------------------------------------
221 CHINA RFT 4 & 5          18d    1/25/99     2/15/99
------------------------------------------------------------------------------------------------------------------------------------
222 CHINA ANTENNA 4 & 5       3d    2/12/99     2/15/99
------------------------------------------------------------------------------------------------------------------------------------
223 BRAZIL                   59d   11/30/98     2/14/99
------------------------------------------------------------------------------------------------------------------------------------
224 BRAZIL RFT No 1, 2 & 3   49d   11/30/98      2/1/99
------------------------------------------------------------------------------------------------------------------------------------
226 BRAZIL ANTENNA 1, 2 & 3  43d    12/7/98      2/1/99
------------------------------------------------------------------------------------------------------------------------------------
227 BRAZIL RFT 4 & 5         49d   12/11/98     2/14/99
------------------------------------------------------------------------------------------------------------------------------------
228 BRAZIL ANTENNA 4 & 5     43d   12/16/98     2/10/99
------------------------------------------------------------------------------------------------------------------------------------
229
------------------------------------------------------------------------------------------------------------------------------------
230 SBS                     759d    2/11/97     12/3/99
------------------------------------------------------------------------------------------------------------------------------------
231 DESIGN DOCUMENTATION    712d    3/17/97     11/3/99
------------------------------------------------------------------------------------------------------------------------------------
232 DESIGN                  176d    3/17/97    11/14/97
------------------------------------------------------------------------------------------------------------------------------------
233 PDR-1 Design Documents   27d    3/17/97     4/22/97
------------------------------------------------------------------------------------------------------------------------------------
234 PDR-2 Design Documents   71d    5/23/97     8/29/97
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------
                                                                  1998
                              ------------------------------------------------------------------------------
ID  TASK NAME                 J      F      M      A      M      J      J      A      S      O      N     D
------------------------------------------------------------------------------------------------------------
<S> <C>                      <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
217  CHINA
------------------------------------------------------------------------------------------------------------
218  CHINA RFT 1, 2 & 3
------------------------------------------------------------------------------------------------------------
219  CHINA SHELTERS X 5
------------------------------------------------------------------------------------------------------------
220  CHINA ANTENNA 1, 2 & 3
------------------------------------------------------------------------------------------------------------
221  CHINA RFT 4 & 5
------------------------------------------------------------------------------------------------------------
222  CHINA ANTENNA 4 & 5
------------------------------------------------------------------------------------------------------------
223  BRAZIL
------------------------------------------------------------------------------------------------------------
224  BRAZIL RFT No 1, 2 & 3
------------------------------------------------------------------------------------------------------------
225  BRAZIL SHELTERS X 5
------------------------------------------------------------------------------------------------------------
226  BRAZIL ANTENNA 1, 2 & 3
------------------------------------------------------------------------------------------------------------
227  BRAZIL RFT 4 & 5
------------------------------------------------------------------------------------------------------------
228  BRAZIL ANTENNA 4 & 5
------------------------------------------------------------------------------------------------------------
229
------------------------------------------------------------------------------------------------------------
230  SBS
------------------------------------------------------------------------------------------------------------
231  DESIGN DOCUMENTATION
------------------------------------------------------------------------------------------------------------
232  DESIGN
------------------------------------------------------------------------------------------------------------
233  PDR-1 Design Documents
------------------------------------------------------------------------------------------------------------
234  PDR-2 Design Documents
------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------
                                                                   1999
                              -------------------------------------------------------------------------------
ID  TASK NAME                 J      F      M      A      M      J      J      A      S      O     N     D
-------------------------------------------------------------------------------------------------------------
<S> <C>                      <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>   <C>
217  CHINA
-------------------------------------------------------------------------------------------------------------
218  CHINA RFT 1, 2 & 3
-------------------------------------------------------------------------------------------------------------
219  CHINA SHELTERS X 5
-------------------------------------------------------------------------------------------------------------
220  CHINA ANTENNA 1, 2 & 3
-------------------------------------------------------------------------------------------------------------
221  CHINA RFT 4 & 5
-------------------------------------------------------------------------------------------------------------
222  CHINA ANTENNA 4 & 5
-------------------------------------------------------------------------------------------------------------
223  BRAZIL
-------------------------------------------------------------------------------------------------------------
224  BRAZIL RFT No 1, 2 & 3
-------------------------------------------------------------------------------------------------------------
225  BRAZIL SHELTERS X 5
-------------------------------------------------------------------------------------------------------------
226  BRAZIL ANTENNA 1, 2 & 3
-------------------------------------------------------------------------------------------------------------
227  BRAZIL  RFT 4 & 5
-------------------------------------------------------------------------------------------------------------
228  BRAZIL ANTENNA 4 & 5
-------------------------------------------------------------------------------------------------------------
229
-------------------------------------------------------------------------------------------------------------
230  SBS
-------------------------------------------------------------------------------------------------------------
231  DESIGN DOCUMENTATION
-------------------------------------------------------------------------------------------------------------
232  DESIGN
-------------------------------------------------------------------------------------------------------------
233  PDR-1 Design Documents
-------------------------------------------------------------------------------------------------------------
234  PDR-2 Design Documents
-------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------
                                                                   2000
                              -------------------------------------------------------------------------------
ID  TASK NAME                 J      F      M      A      M      J      J      A      S      O     N     D
-------------------------------------------------------------------------------------------------------------
<S> <C>                      <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>   <C>
217 CHINA
-------------------------------------------------------------------------------------------------------------
218 CHINA RFT 1, 2 & 3
-------------------------------------------------------------------------------------------------------------
219 CHINA SHELTER X 5
-------------------------------------------------------------------------------------------------------------
220 CHINA ANTENNA 1, 2 & 3
-------------------------------------------------------------------------------------------------------------
221 CHINA RFT 4 & 5
-------------------------------------------------------------------------------------------------------------
222 CHINA ANTENNA 4 & 5
-------------------------------------------------------------------------------------------------------------
223 BRAZIL
-------------------------------------------------------------------------------------------------------------
224 BRAZIL RFT No 1, 2 & 3
-------------------------------------------------------------------------------------------------------------
225 BRAZIL SHELTERS X 5
-------------------------------------------------------------------------------------------------------------
226 BRAZIL ANTENNA 1, 2 & 3
-------------------------------------------------------------------------------------------------------------
227 BRAZIL RFT 4 & 5
-------------------------------------------------------------------------------------------------------------
228 BRAZIL ANTENNA 4 & 5
-------------------------------------------------------------------------------------------------------------
229
-------------------------------------------------------------------------------------------------------------
230 SBS
-------------------------------------------------------------------------------------------------------------
231 DESIGN DOCUMENTATION
-------------------------------------------------------------------------------------------------------------
232 DESIGN
-------------------------------------------------------------------------------------------------------------
233 PDR-1 Design Documents
-------------------------------------------------------------------------------------------------------------
234 PDR-2 Design Documents
-------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------
</TABLE>
PROJECT: 18 NOV ICO MLS VER 39.MPP
DATE: 11/18/97

DOC: 770019 VERSION 3.9       PAGE 13         REVISED ON THE 12TH NOVEMBER, 1997
<PAGE>   1051

                   IGF PROJECT MASTER LEVEL SCHEDULE REV 3.9

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                                              1997
                                                            ------------------------------------------------------------------------
ID  TASK NAME                DUR     START      FINISH       F      M      A      M      J      J      A      S      O      N     D
------------------------------------------------------------------------------------------------------------------------------------
<S> <C>                    <C>     <C>        <C>         <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
235 FDR Design Documents    36d     9/29/97    11/14/97
------------------------------------------------------------------------------------------------------------------------------------
236 ICD Design Documents   164d      4/2/97    11/14/97
------------------------------------------------------------------------------------------------------------------------------------
237 TEST & VERIFICATION    712d     3/17/97     11/3/99
    DOCUMENTS
------------------------------------------------------------------------------------------------------------------------------------
238 SBS R1, CDS, IDS,      398d     6/10/97    11/26/98
    Phase 1 T&V Documents
------------------------------------------------------------------------------------------------------------------------------------
239 Simulators R1 Phase 1  329d     6/10/97     8/26/98
    T&V Documents
------------------------------------------------------------------------------------------------------------------------------------
240 SBS, IDS, CDS,         294d     2/27/98     3/22/98
    R1 Phase 2-1
    T&V Documents
------------------------------------------------------------------------------------------------------------------------------------
241 SBS R2, Phase 2-1      299d     9/25/98     11/3/99
    T&V Documents
------------------------------------------------------------------------------------------------------------------------------------
242 UT Load Simulator      530d     3/17/97     2/26/99
    Documents
------------------------------------------------------------------------------------------------------------------------------------
243 SAN System Simulator   642d     3/17/97     7/30/99
    Documents
------------------------------------------------------------------------------------------------------------------------------------
244 ALGORITHM              232d      4/1/97     2/13/98
    DEVELOPMENT &
    SIMULATION
------------------------------------------------------------------------------------------------------------------------------------
245 SBS AND IDS            370d     4/15/97     8/27/98
    DEVELOPMENT REL 1.0
------------------------------------------------------------------------------------------------------------------------------------
246 SBS #1 MANUFACTURE       0d     8/31/98     8/31/98
    COMPLETE (TOP LEVEL
    MILESTONE)
------------------------------------------------------------------------------------------------------------------------------------
247 SBS S/W REL 1.X-2.0    215d     9/22/98      7/8/99
------------------------------------------------------------------------------------------------------------------------------------
248 R1.1 Ready for           0d     9/22/98     9/22/98
    Int Test
------------------------------------------------------------------------------------------------------------------------------------
249 R1.2 Ready to Ship       0d    12/14/98    12/14/98
------------------------------------------------------------------------------------------------------------------------------------
250 R2.0 Ready to Ship       0d      7/8/99      7/8/99
------------------------------------------------------------------------------------------------------------------------------------
251 CDS DEVELOPMENT         73d     12/1/97      3/9/98
------------------------------------------------------------------------------------------------------------------------------------
252 CDS Factory Testing     40d     12/1/97     1/23/98
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------
                                                                 1998
                             --------------------------------------------------------------------------------
ID  TASK NAME                J      F      M      A      M      J      J      A      S      O      N     D
-------------------------------------------------------------------------------------------------------------
<S> <C>                     <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
235 FDR Design Documents
-------------------------------------------------------------------------------------------------------------
236 ICD Design Documents
-------------------------------------------------------------------------------------------------------------
237 TEST & VERIFICATION
    DOCUMENTS
-------------------------------------------------------------------------------------------------------------
238 SBS R1, CDS, IDS,
    Phase 1 T&V Documents
-------------------------------------------------------------------------------------------------------------
239 Simulators R1 Phase 1
    T&V Documents
-------------------------------------------------------------------------------------------------------------
240 SBS, IDS, CDS, R1
    Phase 2-1
    T&V Documents
-------------------------------------------------------------------------------------------------------------
241 SBS R2, Phase 2-1
    T&V Documents
-------------------------------------------------------------------------------------------------------------
242 UT Load Simulator
    Documents
-------------------------------------------------------------------------------------------------------------
243 SAN System Simulator
    Documents
-------------------------------------------------------------------------------------------------------------
244 ALGORITHM
    DEVELOPMENT &
    SIMULATION
-------------------------------------------------------------------------------------------------------------
245 SBS AND IDS
    DEVELOPMENT REL 1.0
-------------------------------------------------------------------------------------------------------------
246 SBS #1 MANUFACTURE                                                        Yes
    COMPLETE (TOP LEVEL                                                       8/31
    MILESTONE)
-------------------------------------------------------------------------------------------------------------
247 SBS S/W REL 1.X-2.0
-------------------------------------------------------------------------------------------------------------
248 R1.2 Ready for
     Int Test                                                                        9/22
-------------------------------------------------------------------------------------------------------------
249 R1.2 Ready to Ship                                                                                  12/14
-------------------------------------------------------------------------------------------------------------
250 R2.0 Ready to Ship
-------------------------------------------------------------------------------------------------------------
251 CDS Development
-------------------------------------------------------------------------------------------------------------
252 CDS Factory Testing
-------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------
                                                                 1999
                             --------------------------------------------------------------------------------
ID  TASK NAME                J      F      M      A      M      J      J      A      S      O      N     D
-------------------------------------------------------------------------------------------------------------
<S> <C>                     <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
235 FDR Design Documents
-------------------------------------------------------------------------------------------------------------
236 ICD Design Documents
-------------------------------------------------------------------------------------------------------------
237 TEST & VERIFICATION
    DOCUMENTS
-------------------------------------------------------------------------------------------------------------
238 SBS R1, CDS, IDS,
    Phase 1 T&V Documents
-------------------------------------------------------------------------------------------------------------
239 Simulators R1 Phase 1
    T&V Documents
-------------------------------------------------------------------------------------------------------------
240 SBS, IDS, CDS, R1
    Phase 2-1
    T&V Documents
-------------------------------------------------------------------------------------------------------------
241 SBS R2, Phase 2-1
    T&V Documents
-------------------------------------------------------------------------------------------------------------
242 UT Load Simulator
    Documents
-------------------------------------------------------------------------------------------------------------
243 SAN System Simulator
    Documents
-------------------------------------------------------------------------------------------------------------
244 ALGORITHM
    DEVELOPMENT &
    SIMULATION
-------------------------------------------------------------------------------------------------------------
245 SBS AND IDS
    DEVELOPMENT REL 1.0
-------------------------------------------------------------------------------------------------------------
246 SBS #1 MANUFACTURE
    COMPLETE (TOP LEVEL
    MILESTONE)
-------------------------------------------------------------------------------------------------------------
247 SBS S/W REL 1.X-2.0
-------------------------------------------------------------------------------------------------------------
248 R1.2 Ready for
     Int Test
-------------------------------------------------------------------------------------------------------------
249 R1.2 Ready to Ship
-------------------------------------------------------------------------------------------------------------
250 R2.0 Ready to Ship                                                7/8
-------------------------------------------------------------------------------------------------------------
251 CDS DEVELOPMENT
-------------------------------------------------------------------------------------------------------------
252 CDS Factory Testing
-------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------
                                                                 2000
                             --------------------------------------------------------------------------------
ID  TASK NAME                J      F      M      A      M      J      J      A      S      O      N     D
-------------------------------------------------------------------------------------------------------------
<S> <C>                     <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
235 FDR Design Documents
-------------------------------------------------------------------------------------------------------------
236 ICD Design Documents
-------------------------------------------------------------------------------------------------------------
237 TEST & VERIFICATION
    DOCUMENTS
-------------------------------------------------------------------------------------------------------------
238 SBS R1, CDS, IDS,
    Phase 1 T&V Documents
-------------------------------------------------------------------------------------------------------------
239 Simulators R1 Phase 1
    T&V Documents
-------------------------------------------------------------------------------------------------------------
240 SBS, IDS, CDS, R1
    Phase 2-1
    T&V Documents
-------------------------------------------------------------------------------------------------------------
241 SBS R2, Phase 2-1
    T&V Documents
-------------------------------------------------------------------------------------------------------------
242 UT Load Simulator
    Documents
-------------------------------------------------------------------------------------------------------------
243 SAN System Simulator
    Documents
-------------------------------------------------------------------------------------------------------------
244 ALGORITHM
    DEVELOPMENT &
    SIMULATION
-------------------------------------------------------------------------------------------------------------
245 SBS AND IDS
    DEVELOPMENT REL 1.0
-------------------------------------------------------------------------------------------------------------
246 SBS #1 MANUFACTURE
    COMPLETE (TOP LEVEL
    MILESTONE)
-------------------------------------------------------------------------------------------------------------
247 SBS S/W REL 1.X-2.0
-------------------------------------------------------------------------------------------------------------
248 R1.2 Ready for
     Int Test
-------------------------------------------------------------------------------------------------------------
249 R1.2 Ready to Ship
-------------------------------------------------------------------------------------------------------------
250 R2.0 Ready to Ship
-------------------------------------------------------------------------------------------------------------
251 CDS Development
-------------------------------------------------------------------------------------------------------------
252 CDS Factory Testing
-------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------
</TABLE>
PROJECT: 18 NOV ICO MLS VER 39.MPP
DATE: 11/18/97

DOC: 770019 VERSION 3.9       PAGE 14         REVISED ON THE 12TH NOVEMBER, 1997

<PAGE>   1052

                   IGF PROJECT MASTER LEVEL SCHEDULE REV 3.9

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                                              1997
                                                            ------------------------------------------------------------------------
ID   TASK NAME               DUR      START      FINISH      F      M      A      M      J      J      A      S      O      N     D
------------------------------------------------------------------------------------------------------------------------------------
<S>  <C>                    <C>     <C>        <C>         <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
253  ICO Witness
      PH 1 Test               3d     1/26/98     1/28/98
------------------------------------------------------------------------------------------------------------------------------------
254  CDS FOB DATES           27d      2/2/98      3/9/98
------------------------------------------------------------------------------------------------------------------------------------
255  SAN 1                    0d      2/2/98      2/2/98
------------------------------------------------------------------------------------------------------------------------------------
256  SAN 2                    0d      2/9/98      2/9/98
------------------------------------------------------------------------------------------------------------------------------------
257  SAN 3                    0d     2/16/98     2/16/98
------------------------------------------------------------------------------------------------------------------------------------
258  SAN 4                    0d     2/23/98     2/23/98
------------------------------------------------------------------------------------------------------------------------------------
259  SAN 5                    0d      3/2/98      3/2/98
------------------------------------------------------------------------------------------------------------------------------------
260  SAN 6                    0d      3/9/98      3/9/98
------------------------------------------------------------------------------------------------------------------------------------
261  SYSTEM SIMULATOR
      SOFTWARE RELEASES      47d      6/1/98      6/1/98
------------------------------------------------------------------------------------------------------------------------------------
262  S1.0 RELEASE TO ICO      0d      6/1/98      6/1/98
------------------------------------------------------------------------------------------------------------------------------------
263  S2.0 RELEASE TO ICO      0d      8/1/98      8/1/98
------------------------------------------------------------------------------------------------------------------------------------
264  UT LOAD SIMULATOR
      SOFTWARE RELEASES     209d      6/1/98      6/1/99
------------------------------------------------------------------------------------------------------------------------------------
265  U1.0 Release to ICO      0d      6/1/98      6/1/98
------------------------------------------------------------------------------------------------------------------------------------
266  U1.1 Release to ICO      0d      8/1/98      8/1/98
------------------------------------------------------------------------------------------------------------------------------------
267  U2.0 Release to ICO      0d      3/1/99      3/1/99
------------------------------------------------------------------------------------------------------------------------------------
268  AGENCY CERTIFICATION
      (CE MARK)             366d      8/4/97     12/5/98
------------------------------------------------------------------------------------------------------------------------------------
269  CDS Certification      139d      8/4/97      2/9/98
------------------------------------------------------------------------------------------------------------------------------------
270  SBS Certification      201d     3/16/98     12/5/98
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
                                                                          1998
                                     ----------------------------------------------------------------------------------
ID     TASK NAME                       J      F      M      A      M      J      J      A      S      O      N      D
-----------------------------------------------------------------------------------------------------------------------
<S>  <C>                             <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>
253  ICO Witness PH 1 Test
-----------------------------------------------------------------------------------------------------------------------
254  CDS FOB DATES
-----------------------------------------------------------------------------------------------------------------------
255  SAN 1                                   2/2
-----------------------------------------------------------------------------------------------------------------------
256  SAN 2                                   2/9
-----------------------------------------------------------------------------------------------------------------------
257  SAN 3                                  2/16
-----------------------------------------------------------------------------------------------------------------------
258  SAN 4                                  2/23
-----------------------------------------------------------------------------------------------------------------------
259  SAN 5                                          3/2
-----------------------------------------------------------------------------------------------------------------------
260  SAN 6                                          3/9
-----------------------------------------------------------------------------------------------------------------------
261  SYSTEM SIMULATOR SOFTWARE
      RELEASES
-----------------------------------------------------------------------------------------------------------------------
262  S1.0 RELEASE TO ICO                                                 6/1
-----------------------------------------------------------------------------------------------------------------------
263  S2.0 RELEASE TO ICO                                                               8/1
-----------------------------------------------------------------------------------------------------------------------
264  UT LOAD SIMULATOR SOFTWARE
      RELEASES
-----------------------------------------------------------------------------------------------------------------------
265  U1.0 Release to ICO                                                 6/1
-----------------------------------------------------------------------------------------------------------------------
266  U1.1 Release to ICO                                                               8/1
-----------------------------------------------------------------------------------------------------------------------
267  U2.0 Release to ICO                            3/1
-----------------------------------------------------------------------------------------------------------------------
268  AGENCY CERTIFICATION (CE MARK)
-----------------------------------------------------------------------------------------------------------------------
269  CDS Certification
-----------------------------------------------------------------------------------------------------------------------
270  SBS Certification
-----------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
                                                                          1999
                                     ----------------------------------------------------------------------------------
ID     TASK NAME                       J      F      M      A      M      J      J      A      S      O      N      D
-----------------------------------------------------------------------------------------------------------------------
<S>  <C>                             <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>
253  ICO Witness PH 1 Test
-----------------------------------------------------------------------------------------------------------------------
254  CDS FOB DATES
-----------------------------------------------------------------------------------------------------------------------
255  SAN 1
-----------------------------------------------------------------------------------------------------------------------
256  SAN 2
-----------------------------------------------------------------------------------------------------------------------
257  SAN 3
-----------------------------------------------------------------------------------------------------------------------
258  SAN 4
-----------------------------------------------------------------------------------------------------------------------
259  SAN 5
-----------------------------------------------------------------------------------------------------------------------
260  SAN 6
-----------------------------------------------------------------------------------------------------------------------
261  SYSTEM SIMULATOR SOFTWARE
      RELEASES
-----------------------------------------------------------------------------------------------------------------------
262  S1.0 RELEASE TO ICO
-----------------------------------------------------------------------------------------------------------------------
263  S2.0 RELEASE TO ICO
-----------------------------------------------------------------------------------------------------------------------
264  UT LOAD SIMULATOR SOFTWARE
      RELEASES
-----------------------------------------------------------------------------------------------------------------------
265  U1.0 Release to ICO
-----------------------------------------------------------------------------------------------------------------------
266  U1.1 Release to ICO
-----------------------------------------------------------------------------------------------------------------------
267  U2.0 Release to ICO                            3/1
-----------------------------------------------------------------------------------------------------------------------
268  AGENCY CERTIFICATION (CE MARK)
-----------------------------------------------------------------------------------------------------------------------
269  CDS Certification
-----------------------------------------------------------------------------------------------------------------------
270  SBS Certification
-----------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
                                                                          2000
                                     ----------------------------------------------------------------------------------
ID     TASK NAME                       J      F      M      A      M      J      J      A      S      O      N      D
-----------------------------------------------------------------------------------------------------------------------
<S>  <C>                             <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>
253  ICO Witness PH 1 Test
-----------------------------------------------------------------------------------------------------------------------
254  CDS FOB DATES
-----------------------------------------------------------------------------------------------------------------------
255  SAN 1
-----------------------------------------------------------------------------------------------------------------------
256  SAN 2
-----------------------------------------------------------------------------------------------------------------------
257  SAN 3
-----------------------------------------------------------------------------------------------------------------------
258  SAN 4
-----------------------------------------------------------------------------------------------------------------------
259  SAN 5
-----------------------------------------------------------------------------------------------------------------------
260  SAN 6
-----------------------------------------------------------------------------------------------------------------------
261  SYSTEM SIMULATOR SOFTWARE
      RELEASES
-----------------------------------------------------------------------------------------------------------------------
262  S1.0 RELEASE TO ICO
-----------------------------------------------------------------------------------------------------------------------
263  S2.0 RELEASE TO ICO
-----------------------------------------------------------------------------------------------------------------------
264  UT LOAD SIMULATOR SOFTWARE
      RELEASES
-----------------------------------------------------------------------------------------------------------------------
265  U1.0 Release to ICO
-----------------------------------------------------------------------------------------------------------------------
266  U1.1 Release to ICO
-----------------------------------------------------------------------------------------------------------------------
267  U2.0 Release to ICO
-----------------------------------------------------------------------------------------------------------------------
268  AGENCY CERTIFICATION (CE MARK)
-----------------------------------------------------------------------------------------------------------------------
269  CDS Certification
-----------------------------------------------------------------------------------------------------------------------
270  SBS Certification
-----------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------
</TABLE>

PROJECT: 18 NOV ICO MLS VER 39.MPP
DATE: 11/18/97

DOC: 770019 VERSION 3.9       PAGE 15         REVISED ON THE 12TH NOVEMBER, 1997
<PAGE>   1053

                   IGF PROJECT MASTER LEVEL SCHEDULE REV 3.9

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                                              1997
                                                            ------------------------------------------------------------------------
ID   TASK NAME               DUR      START      FINISH      F      M      A      M      J      J      A      S      O      N     D
------------------------------------------------------------------------------------------------------------------------------------
<S>  <C>                    <C>     <C>        <C>         <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
271
------------------------------------------------------------------------------------------------------------------------------------
272  SBS EQUIPMENT
      TRANSPORTATION        191d     9/11/98     5/25/99
------------------------------------------------------------------------------------------------------------------------------------
273  SBS 1 SAN 1 - USA       26d     9/11/98    10/15/98
------------------------------------------------------------------------------------------------------------------------------------
274  SBS 2 SAN 2 - INDIA     30d    10/16/98    11/25/98
------------------------------------------------------------------------------------------------------------------------------------
275  SBS 3 SAN 3 -
      AUSTRALIA              30d    10/16/98    11/25/98
------------------------------------------------------------------------------------------------------------------------------------
276  SBS 4 SAN 4 -
      SOUTH AFRICA           30d     12/5/98     1/14/99
------------------------------------------------------------------------------------------------------------------------------------
277  SBS 5 SAN 5 - CHILE     30d     12/5/98     1/14/99
------------------------------------------------------------------------------------------------------------------------------------
278  SBS 6 SAN 6 - GERMANY   30d     12/5/98     1/14/99
------------------------------------------------------------------------------------------------------------------------------------
279  SBS 7 SAN 7 -
      INDONESIA              34d     1/18/99     2/26/99
------------------------------------------------------------------------------------------------------------------------------------
280  SBS 8 SAN 8 - KOREA     34d     1/18/99     2/26/99
------------------------------------------------------------------------------------------------------------------------------------
281  SBS 9 SAN 9 - MEXICO    32d     2/26/99      4/9/99
------------------------------------------------------------------------------------------------------------------------------------
282  SBS 10 SAN 10 - UAE     32d     2/26/99      4/9/99
------------------------------------------------------------------------------------------------------------------------------------
283  SBS 11 SAN 11 - CHINA   29d     4/15/99     5/25/99
------------------------------------------------------------------------------------------------------------------------------------
284  SBS 12 SAN 12 - BRAZIL  29d    4/15/99      5/25/99
------------------------------------------------------------------------------------------------------------------------------------
285
------------------------------------------------------------------------------------------------------------------------------------
286  MSSC                   868d      5/2/97     7/27/00
------------------------------------------------------------------------------------------------------------------------------------
287  ERICSSON PHASE
      MANAGEMENT            842d     6/10/97     7/27/00
------------------------------------------------------------------------------------------------------------------------------------
288  PHASE 4 REVIEW           0d     6/10/97     6/10/97                                6/10
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
                                                                          1998
                                     ----------------------------------------------------------------------------------
ID     TASK NAME                       J      F      M      A      M      J      J      A      S      O      N      D
-----------------------------------------------------------------------------------------------------------------------
<S>  <C>                             <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>
271
-----------------------------------------------------------------------------------------------------------------------
272  SBS EQUIPMENT TRANSPORTATION
-----------------------------------------------------------------------------------------------------------------------

273  SBS 1 SAN 1 - USA
-----------------------------------------------------------------------------------------------------------------------
274  SBS 2 SAN 2 - INDIA
-----------------------------------------------------------------------------------------------------------------------
275  SBS 3 SAN 3 - AUSTRALIA
-----------------------------------------------------------------------------------------------------------------------
276  SBS 4 SAN 4 - SOUTH AFRICA
-----------------------------------------------------------------------------------------------------------------------
277  SBS 5 SAN 5 - CHILE
-----------------------------------------------------------------------------------------------------------------------
278  SBS 6 SAN 6 - GERMANY
-----------------------------------------------------------------------------------------------------------------------
279  SBS 7 SAN 7 - INDONESIA
-----------------------------------------------------------------------------------------------------------------------
280  SBS 8 SAN 8 - KOREA
-----------------------------------------------------------------------------------------------------------------------
281  SBS 9 SAN 9 - MEXICO
-----------------------------------------------------------------------------------------------------------------------
282  SBS 10 SAN 10 - UAE
-----------------------------------------------------------------------------------------------------------------------
283  SBS 11 SAN 11 - CHINA
-----------------------------------------------------------------------------------------------------------------------
284  SBS 12 SAN 12 - BRAZIL
-----------------------------------------------------------------------------------------------------------------------
285
-----------------------------------------------------------------------------------------------------------------------
286  MSSC
-----------------------------------------------------------------------------------------------------------------------
287  ERICSSON PHASE MANAGEMENT
-----------------------------------------------------------------------------------------------------------------------
288  PHASE 4 REVIEW
-----------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
                                                                          1999
                                     ----------------------------------------------------------------------------------
ID     TASK NAME                       J      F      M      A      M      J      J      A      S      O      N      D
-----------------------------------------------------------------------------------------------------------------------
<S>  <C>                             <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>
271
-----------------------------------------------------------------------------------------------------------------------
272  SBS EQUIPMENT TRANSPORTATION
-----------------------------------------------------------------------------------------------------------------------

273  SBS 1 SAN 1 - USA
-----------------------------------------------------------------------------------------------------------------------
274  SBS 2 SAN 2 - INDIA
-----------------------------------------------------------------------------------------------------------------------
275  SBS 3 SAN 3 - AUSTRALIA
-----------------------------------------------------------------------------------------------------------------------
276  SBS 4 SAN 4 - SOUTH AFRICA
-----------------------------------------------------------------------------------------------------------------------
277  SBS 5 SAN 5 - CHILE
-----------------------------------------------------------------------------------------------------------------------
278  SBS 6 SAN 6 - GERMANY
-----------------------------------------------------------------------------------------------------------------------
279  SBS 7 SAN 7 - INDONESIA
-----------------------------------------------------------------------------------------------------------------------
280  SBS 8 SAN 8 - KOREA
-----------------------------------------------------------------------------------------------------------------------
281  SBS 9 SAN 9 - MEXICO
-----------------------------------------------------------------------------------------------------------------------
282  SBS 10 SAN 10 - UAE
-----------------------------------------------------------------------------------------------------------------------
283  SBS 11 SAN 11 - CHINA
-----------------------------------------------------------------------------------------------------------------------
284  SBS 12 SAN 12 - BRAZIL
-----------------------------------------------------------------------------------------------------------------------
285
-----------------------------------------------------------------------------------------------------------------------
286  MSSC
-----------------------------------------------------------------------------------------------------------------------
287  ERICSSON PHASE MANAGEMENT
-----------------------------------------------------------------------------------------------------------------------
288  PHASE 4 REVIEW
-----------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
                                                                          2000
                                     ----------------------------------------------------------------------------------
ID     TASK NAME                       J      F      M      A      M      J      J      A      S      O      N      D
-----------------------------------------------------------------------------------------------------------------------
<S>  <C>                             <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>

271
-----------------------------------------------------------------------------------------------------------------------
272  SBS EQUIPMENT TRANSPORTATION
-----------------------------------------------------------------------------------------------------------------------

273  SBS 1 SAN 1 - USA
-----------------------------------------------------------------------------------------------------------------------
274  SBS 2 SAN 2 - INDIA
-----------------------------------------------------------------------------------------------------------------------
275  SBS 3 SAN 3 - AUSTRALIA
-----------------------------------------------------------------------------------------------------------------------
276  SBS 4 SAN 4 - SOUTH AFRICA
-----------------------------------------------------------------------------------------------------------------------
277  SBS 5 SAN 5 - CHILE
-----------------------------------------------------------------------------------------------------------------------
278  SBS 6 SAN 6 - GERMANY
-----------------------------------------------------------------------------------------------------------------------
279  SBS 7 SAN 7 - INDONESIA
-----------------------------------------------------------------------------------------------------------------------
280  SBS 8 SAN 8 - KOREA
-----------------------------------------------------------------------------------------------------------------------
281  SBS 9 SAN 9 - MEXICO
-----------------------------------------------------------------------------------------------------------------------
282  SBS 10 SAN 10 - UAE
-----------------------------------------------------------------------------------------------------------------------
283  SBS 11 SAN 11 - CHINA
-----------------------------------------------------------------------------------------------------------------------
284  SBS 12 SAN 12 - BRAZIL
-----------------------------------------------------------------------------------------------------------------------
285
-----------------------------------------------------------------------------------------------------------------------
286  MSSC
-----------------------------------------------------------------------------------------------------------------------
287  ERICSSON PHASE
      MANAGEMENT
-----------------------------------------------------------------------------------------------------------------------
288  PHASE 4 REVIEW
-----------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------
</TABLE>

PROJECT: 18 NOV ICO MLS VER 39.MPP
DATE: 11/18/97

DOC: 770019 VERSION 3.9       PAGE 16         REVISED ON THE 12TH NOVEMBER, 1997
<PAGE>   1054

                   IGF PROJECT MASTER LEVEL SCHEDULE REV 3.9

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                                             1997
                                                           -------------------------------------------------------------------------
ID   TASK NAME                DUR    START      FINISH      F      M      A      M      J      J      A      S      O      N     D
------------------------------------------------------------------------------------------------------------------------------------
<S>  <C>                     <C>   <C>         <C>        <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
289    Phase 5 Review          0d  11/27/97    11/27/97                                                                  11/27
------------------------------------------------------------------------------------------------------------------------------------
290    Phase 6 Review          0d   7/30/98     7/30/98
------------------------------------------------------------------------------------------------------------------------------------
291    Phase 7 Review          0d   3/25/99     3/25/99
------------------------------------------------------------------------------------------------------------------------------------
292    Phase 8 Review          0d   2/24/00     2/24/00
------------------------------------------------------------------------------------------------------------------------------------
293    Phase 9 Review          0d   7/27/00     7/27/00
------------------------------------------------------------------------------------------------------------------------------------
294
------------------------------------------------------------------------------------------------------------------------------------
295  SYSTEM ENGINEERING      588d  12/31/97     3/2/00
       (LPM)
------------------------------------------------------------------------------------------------------------------------------------
296    Network Information     0d  12/31/97    12/31/97                                                                        12/31
         Binder Draft 1
------------------------------------------------------------------------------------------------------------------------------------
297    Network Information     0d    6/1/98      6/1/98
         Binder Draft 2
------------------------------------------------------------------------------------------------------------------------------------
298    Network Information     0d   4/30/99     4/30/99
         Binder Final 3
------------------------------------------------------------------------------------------------------------------------------------
299    Final Numbering         0d    3/2/00      3/2/00
         Information
------------------------------------------------------------------------------------------------------------------------------------
300
------------------------------------------------------------------------------------------------------------------------------------
301  MSSC SOFTWARE           389d   1/31/98      7/1/99
       DEVELOPMENT PROGRAM
------------------------------------------------------------------------------------------------------------------------------------
302    R7 PRODUCT LINE        48d    6/1/98      8/1/98
------------------------------------------------------------------------------------------------------------------------------------
303      R7 MS8                0d    6/1/98      6/1/98
------------------------------------------------------------------------------------------------------------------------------------
304      R7 (ICO Specific)     0d    8/1/98      8/1/98
           SW Ready for Test
------------------------------------------------------------------------------------------------------------------------------------
305    R8 PRODUCT LINE       389d   1/31/98      7/1/99
------------------------------------------------------------------------------------------------------------------------------------
306      R8 PLM REVIEW FDR     0d   1/31/98     1/31/98
           (TOP LEVEL
           MILESTONE)
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------
                                                                          1998
                                ----------------------------------------------------------------------------------
ID   TASK NAME                    J      F      M      A      M      J      J      A      S      O      N      D
------------------------------------------------------------------------------------------------------------------
<S>  <C>                        <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>
289    Phase 5 Review
------------------------------------------------------------------------------------------------------------------
290    Phase 6 Review                                                      7/30
------------------------------------------------------------------------------------------------------------------
291    Phase 7 Review
------------------------------------------------------------------------------------------------------------------
292    Phase 8 Review
------------------------------------------------------------------------------------------------------------------
293    Phase 9 Review
------------------------------------------------------------------------------------------------------------------
294
------------------------------------------------------------------------------------------------------------------
295  SYSTEM ENGINEERING
       (LPM)
------------------------------------------------------------------------------------------------------------------
296    Network Information
         Binder Draft 1
------------------------------------------------------------------------------------------------------------------
297    Network Information                                          6/1
         Binder Draft 2
------------------------------------------------------------------------------------------------------------------
298    Network Information
         Binder Final 3
------------------------------------------------------------------------------------------------------------------
299    Final Numbering
         Information
------------------------------------------------------------------------------------------------------------------
300
------------------------------------------------------------------------------------------------------------------
301  MSSC SOFTWARE
       DEVELOPMENT PROGRAM
------------------------------------------------------------------------------------------------------------------
302    R7 PRODUCT LINE
------------------------------------------------------------------------------------------------------------------
303      R7 MS8                                                     6/1
------------------------------------------------------------------------------------------------------------------
304      R7 (ICO Specific)                                                        8/1
           SW Ready for Test
------------------------------------------------------------------------------------------------------------------
305    R8 PRODUCT LINE
------------------------------------------------------------------------------------------------------------------
306      R8 PLM REVIEW FDR       *1/31
           (TOP LEVEL
           MILESTONE)
------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------
                                                                          1999
                                ----------------------------------------------------------------------------------
ID   TASK NAME                    J      F      M      A      M      J      J      A      S      O      N      D
------------------------------------------------------------------------------------------------------------------
<S>  <C>                        <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>
289    Phase 5 Review
------------------------------------------------------------------------------------------------------------------
290    Phase 6 Review
------------------------------------------------------------------------------------------------------------------
291    Phase 7 Review                          3/25
------------------------------------------------------------------------------------------------------------------
292    Phase 8 Review
------------------------------------------------------------------------------------------------------------------
293    Phase 9 Review
------------------------------------------------------------------------------------------------------------------
294
------------------------------------------------------------------------------------------------------------------
295  SYSTEM ENGINEERING
       (LPM)
------------------------------------------------------------------------------------------------------------------
296    Network Information
         Binder Draft 1
------------------------------------------------------------------------------------------------------------------
297    Network Information
         Binder Draft 2
------------------------------------------------------------------------------------------------------------------
298    Network Information                            4/30
         Binder Final 3
------------------------------------------------------------------------------------------------------------------
299    Final Numbering
         Information
------------------------------------------------------------------------------------------------------------------
300
------------------------------------------------------------------------------------------------------------------
301  MSSC SOFTWARE
       DEVELOPMENT PROGRAM
------------------------------------------------------------------------------------------------------------------
302    R7 PRODUCT LINE
------------------------------------------------------------------------------------------------------------------
303      R7 MS8
------------------------------------------------------------------------------------------------------------------
304      R7 (ICO Specific)
           SW Ready for Test
------------------------------------------------------------------------------------------------------------------
305    R8 PRODUCT LINE
------------------------------------------------------------------------------------------------------------------
306      R8 PLM REVIEW FDR
           (TOP LEVEL
           MILESTONE)
------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------
                                                                          2000
                                ----------------------------------------------------------------------------------
ID   TASK NAME                    J      F      M      A      M      J      J      A      S      O      N      D
------------------------------------------------------------------------------------------------------------------
<S>  <C>                        <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>
289    Phase 5 Review
------------------------------------------------------------------------------------------------------------------
290    Phase 6 Review
------------------------------------------------------------------------------------------------------------------
291    Phase 7 Review
------------------------------------------------------------------------------------------------------------------
292    Phase 8 Review                   2/24
------------------------------------------------------------------------------------------------------------------
293    Phase 9 Review                                                      7/27
------------------------------------------------------------------------------------------------------------------
294
------------------------------------------------------------------------------------------------------------------
295  SYSTEM ENGINEERING
       (LPM)
------------------------------------------------------------------------------------------------------------------
296    Network Information
         Binder Draft 1
------------------------------------------------------------------------------------------------------------------
297    Network Information
         Binder Draft 2
------------------------------------------------------------------------------------------------------------------
298    Network Information
         Binder Final 3
------------------------------------------------------------------------------------------------------------------
299    Final Numbering                         3/2
         Information
------------------------------------------------------------------------------------------------------------------
300
------------------------------------------------------------------------------------------------------------------
301  MSSC SOFTWARE
       DEVELOPMENT PROGRAM
------------------------------------------------------------------------------------------------------------------
302    R7 PRODUCT LINE
------------------------------------------------------------------------------------------------------------------
303      R7 MS8
------------------------------------------------------------------------------------------------------------------
304      R7 (ICO Specific)
           SW Ready for Test
------------------------------------------------------------------------------------------------------------------
305    R8 PRODUCT LINE
------------------------------------------------------------------------------------------------------------------
306      R8 PLM REVIEW FDR
           (TOP LEVEL
           MILESTONE)
------------------------------------------------------------------------------------------------------------------
</TABLE>
PROJECT: 18 NOV ICO MLS VER 39.MPP
DATE: 11/18/97

DOC: 770019 VERSION 3.9       PAGE 17         REVISED ON THE 12TH NOVEMBER, 1997
<PAGE>   1055

                   IGF PROJECT MASTER LEVEL SCHEDULE REV 3.9

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                                             1997
                                                           -------------------------------------------------------------------------
ID   TASK NAME                DUR    START      FINISH      F      M      A      M      J      J      A      S      O      N     D
------------------------------------------------------------------------------------------------------------------------------------
<S>  <C>                     <C>   <C>         <C>        <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
307    R8 TG2                  1d   3/16/98     3/16/98
------------------------------------------------------------------------------------------------------------------------------------
308    R8 Product Line SW    388d    4/8/98     6/30/99
         Development
------------------------------------------------------------------------------------------------------------------------------------
309    R8 MS8                  0d    5/3/99      5/3/99
------------------------------------------------------------------------------------------------------------------------------------
310    R8 SW Ready for Test    1d    7/1/99      7/1/99
------------------------------------------------------------------------------------------------------------------------------------
311  DT2 SAN SITES           138d    8/3/98      2/1/99
------------------------------------------------------------------------------------------------------------------------------------
312    Network Plan Agreed     1d    8/3/98      8/3/98
------------------------------------------------------------------------------------------------------------------------------------
313    DT Inputs Received      1d   10/1/98     10/1/98
         SAN's 1-3
------------------------------------------------------------------------------------------------------------------------------------
314    DT Inputs Received      1d    1/1/99      1/1/99
         SAN's 4-6
------------------------------------------------------------------------------------------------------------------------------------
315    DT Inputs Received      1d    2/1/99      2/1/99
         SAN's 7-12
------------------------------------------------------------------------------------------------------------------------------------
316
------------------------------------------------------------------------------------------------------------------------------------
317  PROCUREMENT AND         685d    5/2/97    11/15/99
       INSTALLATION
       ENGINEERING
------------------------------------------------------------------------------------------------------------------------------------
318    Place HW Forecast       0d    5/2/97      5/2/97                          5/2
------------------------------------------------------------------------------------------------------------------------------------
319    New AXE10 Hardware      0d    9/1/97      9/1/97                                                    9/1
         Change request
         Issued
------------------------------------------------------------------------------------------------------------------------------------
320    ICO Approval of new     0d   9/30/97     9/30/97                                                    9/30
         Hardware
------------------------------------------------------------------------------------------------------------------------------------
321      Receive ICO HW        0d   12/1/97     12/1/97                                                                        12/1
           Dimensioning
           (Initial)
------------------------------------------------------------------------------------------------------------------------------------
322      Freeze ICO HW         0d    3/2/98      3/2/98
           Dimensioining
------------------------------------------------------------------------------------------------------------------------------------
323      H-Module Available    0d    8/3/98      8/3/98
           (R7) for
           Phase 2-1 Testing
------------------------------------------------------------------------------------------------------------------------------------
324
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------
                                                                   1998
                                ----------------------------------------------------------------------------------
ID   TASK NAME                    J      F      M      A      M      J      J      A      S      O      N     D
------------------------------------------------------------------------------------------------------------------
<S>  <C>                        <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
307    R8 TG2                                  3/16
------------------------------------------------------------------------------------------------------------------
308    R8 Product Line SW
         Development
------------------------------------------------------------------------------------------------------------------
309    R8 MS8
------------------------------------------------------------------------------------------------------------------
310    R8 SW Ready for Test
------------------------------------------------------------------------------------------------------------------
311  DT2 SAN SITES
------------------------------------------------------------------------------------------------------------------
312    Network Plan Agreed                                                         8/3
------------------------------------------------------------------------------------------------------------------
313    DT Inputs Received                                                                        10/1
         SAN's 1-3
------------------------------------------------------------------------------------------------------------------
314    DT Inputs Received
         SAN's 4-6
------------------------------------------------------------------------------------------------------------------
315    DT Inputs Received
         SAN's 7-12
------------------------------------------------------------------------------------------------------------------
316
------------------------------------------------------------------------------------------------------------------
317  PROCUREMENT AND
       INSTALLATION
       ENGINEERING
------------------------------------------------------------------------------------------------------------------
318    Place HW Forecast
------------------------------------------------------------------------------------------------------------------
319    New AXE10 Hardware
         Change request
         Issued
------------------------------------------------------------------------------------------------------------------
320    ICO Approval of new
         Hardware
------------------------------------------------------------------------------------------------------------------
321      Receive ICO HW
           Dimensioning
           (Initial)
------------------------------------------------------------------------------------------------------------------
322      Freeze ICO HW                          3/2
           Dimensioining
------------------------------------------------------------------------------------------------------------------
323      H-Module Available                                                        8/3
           (R7) for
           Phase 2-1 Testing
------------------------------------------------------------------------------------------------------------------
324
------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------
                                                                   1999
                                ----------------------------------------------------------------------------------
ID   TASK NAME                    J      F      M      A      M      J      J      A      S      O      N     D
------------------------------------------------------------------------------------------------------------------
<S>  <C>                        <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
307    R8 TG2
------------------------------------------------------------------------------------------------------------------
308    R8 Product Line SW
         Development
------------------------------------------------------------------------------------------------------------------
309    R8 MS8                                                 5/3
------------------------------------------------------------------------------------------------------------------
310    R8 SW Ready for Test                                                 7/1
------------------------------------------------------------------------------------------------------------------
311  DT2 SAN SITES
------------------------------------------------------------------------------------------------------------------
312    Network Plan Agreed
------------------------------------------------------------------------------------------------------------------
313    DT Inputs Received
         SAN's 1-3
------------------------------------------------------------------------------------------------------------------
314    DT Inputs Received         1/1
         SAN's 4-6
------------------------------------------------------------------------------------------------------------------
315    DT Inputs Received                2/1
         SAN's 7-12
------------------------------------------------------------------------------------------------------------------
316
------------------------------------------------------------------------------------------------------------------
317  PROCUREMENT AND
       INSTALLATION
       ENGINEERING
------------------------------------------------------------------------------------------------------------------
318    Place HW Forecast
------------------------------------------------------------------------------------------------------------------
319    New AXE10 Hardware
         Change request
         Issued
------------------------------------------------------------------------------------------------------------------
320    ICO Approval of new
         Hardware
------------------------------------------------------------------------------------------------------------------
321      Receive ICO HW
           Dimensioning
           (Initial)
------------------------------------------------------------------------------------------------------------------
322      Freeze ICO HW
           Dimensioining
------------------------------------------------------------------------------------------------------------------
323      H-Module Available
           (R7) for
           Phase 2-1 Testing
------------------------------------------------------------------------------------------------------------------
324
------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------
                                                                   2000
                                ----------------------------------------------------------------------------------
ID   TASK NAME                    J      F      M      A      M      J      J      A      S      O      N     D
------------------------------------------------------------------------------------------------------------------
<S>  <C>                        <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
307    R8 TG2
------------------------------------------------------------------------------------------------------------------
308    R8 Product Line SW
         Development
------------------------------------------------------------------------------------------------------------------
309    R8 MS8
------------------------------------------------------------------------------------------------------------------
310    R8 SW Ready for Test
------------------------------------------------------------------------------------------------------------------
311  DT2 SAN SITES
------------------------------------------------------------------------------------------------------------------
312    Network Plan Agreed
------------------------------------------------------------------------------------------------------------------
313    DT Inputs Received
         SAN's 1-3
------------------------------------------------------------------------------------------------------------------
314    DT Inputs Received
         SAN's 4-6
------------------------------------------------------------------------------------------------------------------
315    DT Inputs Received
         SAN's 7-12
------------------------------------------------------------------------------------------------------------------
316
------------------------------------------------------------------------------------------------------------------
317  PROCUREMENT AND
       INSTALLATION
       ENGINEERING
------------------------------------------------------------------------------------------------------------------
318    Place HW Forecast
------------------------------------------------------------------------------------------------------------------
319    New AXE10 Hardware
         Change request
         Issued
------------------------------------------------------------------------------------------------------------------
320    ICO Approval of new
         Hardware
------------------------------------------------------------------------------------------------------------------
321      Receive ICO HW
           Dimensioning
           (Initial)
------------------------------------------------------------------------------------------------------------------
322      Freeze ICO HW
           Dimensioining
------------------------------------------------------------------------------------------------------------------
323      H-Module Available
           (R7) for
           Phase 2-1 Testing
------------------------------------------------------------------------------------------------------------------
324
------------------------------------------------------------------------------------------------------------------
</TABLE>
PROJECT: 18 NOV ICO MLS VER 39.MPP
DATE: 11/18/97

DOC: 770019 VERSION 3.9       PAGE 18         REVISED ON THE 12TH NOVEMBER, 1997
<PAGE>   1056

                   IGF PROJECT MASTER LEVEL SCHEDULE REV 3.9

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                                              1997
                                                            ------------------------------------------------------------------------
ID   TASK NAME               DUR     START      FINISH       F      M      A      M      J      J      A      S      O      N     D
------------------------------------------------------------------------------------------------------------------------------------
<S>  <C>                   <C>     <C>        <C>         <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
325  MSSC Manufacturing    570d      10/1/97    11/3/99
     for Pre-Integration
     Facilities
------------------------------------------------------------------------------------------------------------------------------------
326   TESTING &             91d      10/1/97     2/2/98
      VERIFICATION
      SIMULATOR
------------------------------------------------------------------------------------------------------------------------------------
327    Define Simulator      0d      10/1/97    10/1/97                                                           10/1
       Functions
------------------------------------------------------------------------------------------------------------------------------------
328    Build Simulator      83d     10/10/97    1/30/98
       Scripts
------------------------------------------------------------------------------------------------------------------------------------
329    Deliver Simulators    0d       2/2/98     2/2/98
       to NECA and HNS
       Pre-Integration F
------------------------------------------------------------------------------------------------------------------------------------
330   Order/ship and       226d      10/2/97    7/31/98
      Install Australia
      STP
------------------------------------------------------------------------------------------------------------------------------------
331   Order/ship and       226d      10/2/97    7/31/98
      INSTALL USA STP
------------------------------------------------------------------------------------------------------------------------------------
332   Support Pre-         133d      2/10/98     8/3/98
      Integration
------------------------------------------------------------------------------------------------------------------------------------
333   Integration test     113d       8/4/98   12/31/98
      with R7-TNM at
      NECA
------------------------------------------------------------------------------------------------------------------------------------
334   Integration/          92d      7/1/99     11/3/99
      Regression Test
      with R8
------------------------------------------------------------------------------------------------------------------------------------
335   Simulator Test       135d      2/3/98     7/31/98
      R7-SBS at HNS
------------------------------------------------------------------------------------------------------------------------------------
336   Integration test     113d      8/3/98    12/30/98
      with R7
------------------------------------------------------------------------------------------------------------------------------------
337   Integration/          92d      7/1/99     11/3/99
      Regression Test
      with R8
------------------------------------------------------------------------------------------------------------------------------------
338
------------------------------------------------------------------------------------------------------------------------------------
339  MSSC MANUFACTURING-   225d      4/1/98     1/24/99
     OPERATIONAL SANS
------------------------------------------------------------------------------------------------------------------------------------
340   Announcement           1d     4/30/98     4/30/98
      Requirements from
      ICO
------------------------------------------------------------------------------------------------------------------------------------
341   Announcement          40d     4/30/98     6/19/98
      Production/FAT
------------------------------------------------------------------------------------------------------------------------------------
342   SAN's 1-3 Site        42d      4/1/98     5/27/98
      Inspections
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

 <TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
                                                                 1998
                             ------------------------------------------------------------------------------
ID   TASK NAME               J      F      M      A      M      J      J      A      S      O      N     D
-----------------------------------------------------------------------------------------------------------
<S>  <C>                    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
325  MSSC Manufacturing
     for Pre-Integration
     Facilities
-----------------------------------------------------------------------------------------------------------
326   TESTING &
      VERIFICATION
      SIMULATOR
-----------------------------------------------------------------------------------------------------------
327    Define Simulator
       Functions
-----------------------------------------------------------------------------------------------------------
328    Build Simulator
       Scripts
-----------------------------------------------------------------------------------------------------------
329    Deliver Simulators          2/2
       to NECA and HNS
       Pre-Integration F
-----------------------------------------------------------------------------------------------------------
330   Order/ship and
      Install Australia
      STP
-----------------------------------------------------------------------------------------------------------
331   Order/ship and
      INSTALL USA STP
-----------------------------------------------------------------------------------------------------------
332   Support Pre-
      Integration
-----------------------------------------------------------------------------------------------------------
333   Integration test
      with R7-TNM at
      NECA
-----------------------------------------------------------------------------------------------------------
334   Integration/
      Regression Test
      with R8
-----------------------------------------------------------------------------------------------------------
335   Simulator Test
      R7-SBS at HNS
-----------------------------------------------------------------------------------------------------------
336   Integration test
      with R7
-----------------------------------------------------------------------------------------------------------
337   Integration/
      Regression Test
      with R8
-----------------------------------------------------------------------------------------------------------
338
-----------------------------------------------------------------------------------------------------------
339  MSSC MANUFACTURING-
     OPERATIONAL SANS
-----------------------------------------------------------------------------------------------------------
340   Announcement                               4/30
      Requirements from
      ICO
-----------------------------------------------------------------------------------------------------------
341   Announcement
      Production/FAT
-----------------------------------------------------------------------------------------------------------
342   SAN's 1-3 Site
      Inspections
-----------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------
</TABLE>

 <TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
                                                                 1999
                             ------------------------------------------------------------------------------
ID   TASK NAME               J      F      M      A      M      J      J      A      S      O      N     D
-----------------------------------------------------------------------------------------------------------
<S>  <C>                    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
325  MSSC Manufacturing
     for Pre-Integration
     Facilities
-----------------------------------------------------------------------------------------------------------
326   TESTING &
      VERIFICATION
      SIMULATOR
-----------------------------------------------------------------------------------------------------------
327    Define Simulator
       Functions
-----------------------------------------------------------------------------------------------------------
328    Build Simulator
       Scripts
-----------------------------------------------------------------------------------------------------------
329    Deliver Simulators
       to NECA and HNS
       Pre-Integration F
-----------------------------------------------------------------------------------------------------------
330   Order/ship and
      Install Australia
      STP
-----------------------------------------------------------------------------------------------------------
331   Order/ship and
      INSTALL USA STP
-----------------------------------------------------------------------------------------------------------
332   Support Pre-
      Integration
-----------------------------------------------------------------------------------------------------------
333   Integration test
      with R7-TNM at
      NECA
-----------------------------------------------------------------------------------------------------------
334   Integration/
      Regression Test
      with R8
-----------------------------------------------------------------------------------------------------------
335   Simulator Test
      R7-SBS at HNS
-----------------------------------------------------------------------------------------------------------
336   Integration test
      with R7
-----------------------------------------------------------------------------------------------------------
337   Integration/
      Regression Test
      with R8
-----------------------------------------------------------------------------------------------------------
338
-----------------------------------------------------------------------------------------------------------
339  MSSC MANUFACTURING-
     OPERATIONAL SANS
-----------------------------------------------------------------------------------------------------------
340   Announcement
      Requirements from
      ICO
-----------------------------------------------------------------------------------------------------------
341   Announcement
      Production/FAT
-----------------------------------------------------------------------------------------------------------
342   SAN's 1-3 Site
      Inspections
-----------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------
</TABLE>

 <TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
                                                                 2000
                             ------------------------------------------------------------------------------
ID   TASK NAME               J      F      M      A      M      J      J      A      S      O      N     D
-----------------------------------------------------------------------------------------------------------
<S>  <C>                    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
325  MSSC Manufacturing
     for Pre-Integration
     Facilities
-----------------------------------------------------------------------------------------------------------
326   TESTING &
      VERIFICATION
      SIMULATOR
-----------------------------------------------------------------------------------------------------------
327    Define Simulator
       Functions
-----------------------------------------------------------------------------------------------------------
328    Build Simulator
       Scripts
-----------------------------------------------------------------------------------------------------------
329    Deliver Simulators
       to NECA and HNS
       Pre-Integration F
-----------------------------------------------------------------------------------------------------------
330   Order/ship and
      Install Australia
      STP
-----------------------------------------------------------------------------------------------------------
331   Order/ship and
      INSTALL USA STP
-----------------------------------------------------------------------------------------------------------
332   Support Pre-
      Integration
-----------------------------------------------------------------------------------------------------------
333   Integration test
      with R7-TNM at
      NECA
-----------------------------------------------------------------------------------------------------------
334   Integration/
      Regression Test
      with R8
-----------------------------------------------------------------------------------------------------------
335   Simulator Test
      R7-SBS at HNS
-----------------------------------------------------------------------------------------------------------
336   Integration test
      with R7
-----------------------------------------------------------------------------------------------------------
337   Integration/
      Regression Test
      with R8
-----------------------------------------------------------------------------------------------------------
338
-----------------------------------------------------------------------------------------------------------
339  MSSC MANUFACTURING-
     OPERATIONAL SANS
-----------------------------------------------------------------------------------------------------------
340   Announcement
      Requirements from
      ICO
-----------------------------------------------------------------------------------------------------------
341   Announcement
      Production/FAT
-----------------------------------------------------------------------------------------------------------
342   SAN's 1-3 Site
      Inspections
-----------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------
</TABLE>
PROJECT: 18 NOV ICO MLS VER 39.MPP
DATE: 11/18/97

DOC: 770019 VERSION 3.9       PAGE 19         REVISED ON THE 12TH NOVEMBER, 1997

<PAGE>   1057

                   IGF PROJECT MASTER LEVEL SCHEDULE REV 3.9

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                                              1997
                                                            ------------------------------------------------------------------------
ID   TASK NAME               DUR     START      FINISH       F      M      A      M      J      J      A      S      O      N     D
------------------------------------------------------------------------------------------------------------------------------------
<S>  <C>                   <C>     <C>        <C>         <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
343   SAN's 4-6 Site        42d       5/1/98     6/24/98
      Inspections
------------------------------------------------------------------------------------------------------------------------------------
344   SAN's 7-12 Site       60d      6/15/98     8/29/98
      Inspections (TBC)
------------------------------------------------------------------------------------------------------------------------------------
345   Shipping/              0d       6/1/98      6/1/98
      transportation plans
      complete
------------------------------------------------------------------------------------------------------------------------------------
346   Obtain Shipping        0d      7/31/98     7/31/98
      Insurance
------------------------------------------------------------------------------------------------------------------------------------
347   SAN's 1-12           159d      6/29/98     1/24/99
      Production/FAT
------------------------------------------------------------------------------------------------------------------------------------
348
------------------------------------------------------------------------------------------------------------------------------------
349  MSSC EQUIPMENT        160d       8/3/98     2/28/99
     TRANSPORTATION
------------------------------------------------------------------------------------------------------------------------------------
350   MSSC/HPN # 1 SAN 1 -  36d       8/3/98     9/17/98
      USA
------------------------------------------------------------------------------------------------------------------------------------
351   MSSC/HPN #2 SAN 2 -   36d       8/3/98     9/17/98
      INDIA
------------------------------------------------------------------------------------------------------------------------------------
352   MSSC 3 SAN 3 -        36d       8/3/98     9/17/98
      AUSTRALIA
------------------------------------------------------------------------------------------------------------------------------------
353   MSSC 4 SAN 4 -        36d       9/9/98    10/27/98
      SOUTH AFRICA
------------------------------------------------------------------------------------------------------------------------------------
354   MSSC 5 SAN 5 -        36d       9/9/98    10/27/98
      CHILE
------------------------------------------------------------------------------------------------------------------------------------
355   MSSC 6 SAN 6 -        36d       9/9/98    10/27/98
      GERMANY
------------------------------------------------------------------------------------------------------------------------------------
356   MSSC 7 SAN 7 -        36d      11/2/98    12/17/98
      INDONESIA
------------------------------------------------------------------------------------------------------------------------------------
357   MSSC 8 SAN 8 -        36d      11/2/98    12/17/98
      KOREA
------------------------------------------------------------------------------------------------------------------------------------
358   MSSC 9 SAN 9 -        36d      11/2/98    12/17/98
      MEXICO
------------------------------------------------------------------------------------------------------------------------------------
359   MSSC 10 SAN 10 -      36d      11/2/98    12/17/98
      UAE
------------------------------------------------------------------------------------------------------------------------------------
360   MSSC 11 SAN 11 -      36d      1/15/99     2/28/99
      CHINA
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
                                                                 1998
                             ------------------------------------------------------------------------------
ID  TASK NAME                J      F      M      A      M      J      J      A      S      O      N     D
-----------------------------------------------------------------------------------------------------------
<S> <C>                     <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
343   SAN's 4-6 Site
      Inspections
-----------------------------------------------------------------------------------------------------------
344   SAN's 7-12 Site
      Inspections (TBC)
-----------------------------------------------------------------------------------------------------------
345   Shipping/                                                6/1
      transportation plans
      complete
-----------------------------------------------------------------------------------------------------------
346   Obtain Shipping                                                 7/31
      Insurance
-----------------------------------------------------------------------------------------------------------
347   SAN's 1-12
      Production/FAT
-----------------------------------------------------------------------------------------------------------
348
-----------------------------------------------------------------------------------------------------------
349  MSSC EQUIPMENT
     TRANSPORTATION
-----------------------------------------------------------------------------------------------------------
350   MSSC/HPN # 1 SAN 1 -
      USA
-----------------------------------------------------------------------------------------------------------
351   MSSC/HPN #2 SAN 2 -
      INDIA
-----------------------------------------------------------------------------------------------------------
352   MSSC 3 SAN 3 -
      AUSTRALIA
-----------------------------------------------------------------------------------------------------------
353   MSSC 4 SAN 4 -
      SOUTH AFRICA
-----------------------------------------------------------------------------------------------------------
354   MSSC 5 SAN 5 -
      CHILE
-----------------------------------------------------------------------------------------------------------
355   MSSC 6 SAN 6 -
      GERMANY
-----------------------------------------------------------------------------------------------------------
356   MSSC 7 SAN 7 -
      INDONESIA
-----------------------------------------------------------------------------------------------------------
357   MSSC 8 SAN 8 -
      KOREA
-----------------------------------------------------------------------------------------------------------
358   MSSC 9 SAN 9 -
      MEXICO
-----------------------------------------------------------------------------------------------------------
359   MSSC 10 SAN 10 -
      UAE
-----------------------------------------------------------------------------------------------------------
360   MSSC 11 SAN 11 -
      CHINA
-----------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
                                                                 1999
                             ------------------------------------------------------------------------------
ID  TASK NAME                J      F      M      A      M      J      J      A      S      O      N     D
-----------------------------------------------------------------------------------------------------------
<S> <C>                     <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
343   SAN's 4-6 Site
      Inspections
-----------------------------------------------------------------------------------------------------------
344   SAN's 7-12 Site
      Inspections (TBC)
-----------------------------------------------------------------------------------------------------------
345   Shipping/
      transportation plans
      complete
-----------------------------------------------------------------------------------------------------------
346   Obtain Shipping
      Insurance
-----------------------------------------------------------------------------------------------------------
347   SAN's 1-12
      Production/FAT
-----------------------------------------------------------------------------------------------------------
348
-----------------------------------------------------------------------------------------------------------
349  MSSC EQUIPMENT
     TRANSPORTATION
-----------------------------------------------------------------------------------------------------------
350   MSSC/HPN # 1 SAN 1 -
      USA
-----------------------------------------------------------------------------------------------------------
351   MSSC/HPN #2 SAN 2 -
      INDIA
-----------------------------------------------------------------------------------------------------------
352   MSSC 3 SAN 3 -
      AUSTRALIA
-----------------------------------------------------------------------------------------------------------
353   MSSC 4 SAN 4 -
      SOUTH AFRICA
-----------------------------------------------------------------------------------------------------------
354   MSSC 5 SAN 5 -
      CHILE
-----------------------------------------------------------------------------------------------------------
355   MSSC 6 SAN 6 -
      GERMANY
-----------------------------------------------------------------------------------------------------------
356   MSSC 7 SAN 7 -
      INDONESIA
-----------------------------------------------------------------------------------------------------------
357   MSSC 8 SAN 8 -
      KOREA
-----------------------------------------------------------------------------------------------------------
358   MSSC 9 SAN 9 -
      MEXICO
-----------------------------------------------------------------------------------------------------------
359   MSSC 10 SAN 10 -
      UAE
-----------------------------------------------------------------------------------------------------------
360   MSSC 11 SAN 11 -
      CHINA
-----------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
                                                                 2000
                             ------------------------------------------------------------------------------
ID  TASK NAME                J      F      M      A      M      J      J      A      S      O      N     D
-----------------------------------------------------------------------------------------------------------
<S> <C>                     <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
343   SAN's 4-6 Site
      Inspections
-----------------------------------------------------------------------------------------------------------
344   SAN's 7-12 Site
      Inspections (TBC)
-----------------------------------------------------------------------------------------------------------
345   Shipping/
      transportation plans
      complete
-----------------------------------------------------------------------------------------------------------
346   Obtain Shipping
      Insurance
-----------------------------------------------------------------------------------------------------------
347   SAN's 1-12
      Production/FAT
-----------------------------------------------------------------------------------------------------------
348
-----------------------------------------------------------------------------------------------------------
349  MSSC EQUIPMENT
     TRANSPORTATION
-----------------------------------------------------------------------------------------------------------
350   MSSC/HPN # 1 SAN 1 -
      USA
-----------------------------------------------------------------------------------------------------------
351   MSSC/HPN #2 SAN 2 -
      INDIA
-----------------------------------------------------------------------------------------------------------
352   MSSC 3 SAN 3 -
      AUSTRALIA
-----------------------------------------------------------------------------------------------------------
353   MSSC 4 SAN 4 -
      SOUTH AFRICA
-----------------------------------------------------------------------------------------------------------
354   MSSC 5 SAN 5 -
      CHILE
-----------------------------------------------------------------------------------------------------------
355   MSSC 6 SAN 6 -
      GERMANY
-----------------------------------------------------------------------------------------------------------
356   MSSC 7 SAN 7 -
      INDONESIA
-----------------------------------------------------------------------------------------------------------
357   MSSC 8 SAN 8 -
      KOREA
-----------------------------------------------------------------------------------------------------------
358   MSSC 9 SAN 9 -
      MEXICO
-----------------------------------------------------------------------------------------------------------
359   MSSC 10 SAN 10 -
      UAE
-----------------------------------------------------------------------------------------------------------
360   MSSC 11 SAN 11 -
      CHINA
-----------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------
</TABLE>
PROJECT: 18 NOV ICO MLS VER 39.MPP
DATE: 11/18/97

DOC: 770019 VERSION 3.9       PAGE 20         REVISED ON THE 12TH NOVEMBER, 1997

<PAGE>   1058

                   IGF PROJECT MASTER LEVEL SCHEDULE REV 3.9

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                                              1997
                                                            ------------------------------------------------------------------------
ID  TASK NAME                  DUR     START     FINISH      F      M      A      M      J      J      A      S      O      N     D
------------------------------------------------------------------------------------------------------------------------------------
<S> <C>                        <C>     <C>        <C>      <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
361 MSSC 12 SAN 12 - BRAZIL    36d    1/15/99    2/28/99

362 MSSC #12 FOB (Top Level
     Milestone)                 0d    2/28/99    2/28/99

363

364 HLR                       234d    3/30/98    2/19/99

365 Order HW                    0d    3/30/98    3/30/98

366 Ship HLR to Primary
     NMC site                  40d   12/10/98     2/1/99

367 Auc/EIR                   210d    5/1/98      2/1/99

368 Order HW                    0d    5/1/98      5/1/98

369 Ship AuC to Primary
     NMC site                  42d   12/8/98      2/1/99

370 TMOS                       36d   7/26/99     9/10/99

371 NMC Site Japan             36d   7/26/99     9/10/99

372 Transportation
     TMOS/OSS HW               36d   7/26/99     9/10/99

373 Back Up NMC Site,
     London UK                 36d   7/26/99     9/10/99

374 Transportation
     TMOS/OSS HW               36d   7/26/99     9/10/99

375

376 INTERWORKING LOCATION
     REGISTERS                379d    8/1/97    12/22/98

377 ILR Letter of Intent        1d    8/1/97      8/1/97                                               8/1

378 ILR Contract Option
     (ICO)                      1d   3/31/98     3/31/98

</TABLE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------
                                                                  1998
                             -------------------------------------------------------------------------------
ID  TASK NAME                J      F      M      A      M      J      J      A      S      O     N     D
------------------------------------------------------------------------------------------------------------
<S> <C>                     <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>   <C>

361 MSSC 12 SAN 12 - BRAZIL

362 MSSC #12 FOB (Top Level
     Milestone)

363

364 HLR

365 Order HW                               3/30

366 Ship HLR to Primary
     NMC site

367 Auc/EIR

368 Order HW                                            5/1

369 Ship AuC to Primary
     NMC site

370 TMOS

371 NMC Site Japan

372 Transportation
     TMOS/OSS HW

373 Back Up NMC Site,
     London UK

374 Transportation
     TMOS/OSS HW

375

376 INTERWORKING LOCATION
     REGISTERS

377 ILR Letter of Intent

378 ILR Contract Option
     (ICO)                                 3/31

</TABLE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------
                                                                  1999
                             -------------------------------------------------------------------------------
ID  TASK NAME                J      F      M      A      M      J      J      A      S      O     N     D
------------------------------------------------------------------------------------------------------------
<S> <C>                     <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>   <C>

361 MSSC 12 SAN 12 - BRAZIL

362 MSSC #12 FOB (Top Level        2/28
     Milestone)

363

364 HLR

365 Order HW

366 Ship HLR to Primary
     NMC site

367 Auc/EIR

368 Order HW

369 Ship AuC to Primary
     NMC site

370 TMOS

371 NMC Site Japan

372 Transportation
     TMOS/OSS HW

373 Back Up NMC Site,
     London UK

374 Transportation
     TMOS/OSS HW

375

376 INTERWORKING LOCATION
     REGISTERS

377 ILR Letter of Intent

378 ILR Contract Option
     (ICO)

</TABLE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------
                                                                  2000
                             -------------------------------------------------------------------------------
ID  TASK NAME                J      F      M      A      M      J      J      A      S      O     N     D
------------------------------------------------------------------------------------------------------------
<S> <C>                     <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>   <C>

361 MSSC 12 SAN 12 - BRAZIL

362 MSSC #12 FOB (Top Level
     Milestone)

363

364 HLR

365 Order HW

366 Ship HLR to Primary
     NMC site

367 Auc/EIR

368 Order HW

369 Ship AuC to Primary
     NMC site

370 TMOS

371 NMC Site Japan

372 Transportation
     TMOS/OSS HW

373 Back Up NMC Site,
     London UK

374 Transportation
     TMOS/OSS HW

375

376 INTERWORKING LOCATION
     REGISTERS

377 ILR Letter of Intent

378 ILR Contract Option
     (ICO)
</TABLE>

PROJECT: 18 NOV ICO MLS VER 39.MPP  TASK      MILESTONE    ROLLED UP TASK
                                                        ROLLED UP PROGRESS
DATE: 11/18/97                     PROGRESS  SUMMARY    ROLLED UP MILESTONE

DOC: 770019 VERSION 3.9       PAGE 21         REVISED ON THE 12TH NOVEMBER, 1997
<PAGE>   1059

                   IGF PROJECT MASTER LEVEL SCHEDULE REV 3.9

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                                              1997
                                                            ------------------------------------------------------------------------
ID  TASK NAME                  DUR     START     FINISH      F      M      A      M      J      J      A      S      O      N     D
------------------------------------------------------------------------------------------------------------------------------------
<S> <C>                        <C>     <C>        <C>      <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
379 ILR GSM(ICO) - AMPS
     Functionality              1d     6/1/98     6/1/98

380 ILR AMPS-GSM(ICO)
     Functionality              1d   12/22/98   12/22/98

381 ILR FAT                     0d    10/5/98    10/5/98

382 ILR Transportation (USA)   33d   11/10/98   12/22/98

383

384 MESSAGING                  73d     8/3/98    11/6/98

385 ICO System Verification
     (R7 SW) FAT               63d     8/3/98   10/23/98

386 Transportation Messaging
     Platform                  10d   10/26/98    11/6/98

387

388 LEGAL INTERCEPTION        100d    7/1/99    11/15/99

389 LI R8 Verification FAT     61d    7/1/99     9/22/99

390 Transportation LIAS
     SAN's 1-3                 30d   7/23/99      9/1/99

391 Transportation LIAS
     SAN's 4-6                 30d    8/6/99     9/15/99

392 Transportation LIAS
     SAN's 7-12                30d   8/20/99     9/30/99

393 Transportation LIMS        30d   10/6/99    11/15/99

394

395 HPN                       521d   3/31/99     2/28/99

396 HPN Req's Analysys and
     System Design            186d    5/5/97     1/15/99

</TABLE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------
                                                                  1998
                             -------------------------------------------------------------------------------
ID  TASK NAME                J      F      M      A      M      J      J      A      S      O     N     D
------------------------------------------------------------------------------------------------------------
<S> <C>                     <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>   <C>

379 ILR GSM(ICO) - AMPS
     Functionality                                             6/1

380 ILR AMPS-GSM(ICO)
     Functionality                                                                                     12/22

381 ILR FAT                                                                                 10/5

382 ILR Transportation (USA)

383

384 MESSAGING

385 ICO System Verification
     (R7 SW) FAT

386 Transportation Messaging
     Platform

387

388 LEGAL INTERCEPTION

389 LI R8 Verification FAT

390 Transportation LIAS
     SAN's 1-3

391 Transportation LIAS
     SAN's 4-6

392 Transportation LIAS
     SAN's 7-12

393 Transportation LIMS

394

395 HPN

396 HPN Req's Analysys and
     System Design

</TABLE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------
                                                                  1999
                             -------------------------------------------------------------------------------
ID  TASK NAME                J      F      M      A      M      J      J      A      S      O     N     D
------------------------------------------------------------------------------------------------------------
<S> <C>                     <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>   <C>

379 ILR GSM(ICO) - AMPS
     Functionality

380 ILR AMPS-GSM(ICO)
     Functionality

381 ILR FAT

382 ILR Transportation (USA)

383

384 MESSAGING

385 ICO System Verification
     (R7 SW) FAT

386 Transportation Messaging
     Platform

387

388 LEGAL INTERCEPTION

389 LI R8 Verification FAT

390 Transportation LIAS
     SAN's 1-3

391 Transportation LIAS
     SAN's 4-6

392 Transportation LIAS
     SAN's 7-12

393 Transportation LIMS

394

395 HPN

396 HPN Req's Analysys and
     System Design

</TABLE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------
                                                                  2000
                             -------------------------------------------------------------------------------
ID  TASK NAME                J      F      M      A      M      J      J      A      S      O     N     D
------------------------------------------------------------------------------------------------------------
<S> <C>                     <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>   <C>

379 ILR GSM(ICO) - AMPS
     Functionality

380 ILR AMPS-GSM(ICO)
     Functionality

381 ILR FAT

382 ILR Transportation (USA)

383

384 MESSAGING

385 ICO System Verification
     (R7 SW) FAT

386 Transportation Messaging
     Platform

387

388 LEGAL INTERCEPTION

389 LI R8 Verification FAT

390 Transportation LIAS
     SAN's 1-3

391 Transportation LIAS
     SAN's 4-6

392 Transportation LIAS
     SAN's 7-12

393 Transportation LIMS

394

395 HPN

396 HPN Req's Analysys and
     System Design

</TABLE>

PROJECT: 18 NOV ICO MLS VER 39.MPP  TASK      MILESTONE    ROLLED UP TASK
                                                        ROLLED UP PROGRESS
DATE: 11/18/97                     PROGRESS  SUMMARY    ROLLED UP MILESTONE

DOC: 770019 VERSION 3.9       PAGE 22         REVISED ON THE 12TH NOVEMBER, 1997
<PAGE>   1060

                   IGF PROJECT MASTER LEVEL SCHEDULE REV 3.9

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                                              1997
                                                            ------------------------------------------------------------------------
ID  TASK NAME                DUR      START      FINISH      F      M      A      M      J      J      A      S      O      N     D
------------------------------------------------------------------------------------------------------------------------------------
<S> <C>                    <C>      <C>        <C>        <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
397  HPN Functional
     Analsys                186d      5/5/97     1/15/98
------------------------------------------------------------------------------------------------------------------------------------
398  HPN Subsystem Design
     Document               163d      5/5/97    12/15/97
------------------------------------------------------------------------------------------------------------------------------------
399  SYSTEM ENGINEERING
     SUPPORT                178d     10/2/97     5/29/98
------------------------------------------------------------------------------------------------------------------------------------
400  SOFTWARE DETAILED
     DESIGN                 201d     6/30/97     3/30/98
------------------------------------------------------------------------------------------------------------------------------------
401  Controller Software    116d     6/30/97     12/4/97
------------------------------------------------------------------------------------------------------------------------------------
402  Channel Unit
     Software               112d      9/1/97     1/30/98
------------------------------------------------------------------------------------------------------------------------------------
403  Controller S/W
     Release 1              156d      9/1/97     3/30/98
------------------------------------------------------------------------------------------------------------------------------------
404  CU PROJECT
     MANAGEMENT             280d     3/31/97     4/17/98
------------------------------------------------------------------------------------------------------------------------------------
405  CHANNEL UNIT
     HARDWARE DESIGN        190d      6/2/97     2/16/98
------------------------------------------------------------------------------------------------------------------------------------
406  CU SOFTWARE
     DEVELOPMENT            117d     6/30/97     12/5/97
------------------------------------------------------------------------------------------------------------------------------------
407  MECHANICAL AND
     ENVIRONMENTAL
     DESIGN                 215d      7/7/97     4/24/98
------------------------------------------------------------------------------------------------------------------------------------
408  COTS HARDWARE
     PROCUREMENT            130d      1/8/98     6/30/98
------------------------------------------------------------------------------------------------------------------------------------
409  HPN PRODUCTION &
     PHASE 1 TESTING         72d     8/11/98    11/13/98
------------------------------------------------------------------------------------------------------------------------------------
410  SAN 1-3 FAT
     Phase 1 Testing        8.4w     8/11/98     10/2/98
------------------------------------------------------------------------------------------------------------------------------------
411  SAN 4-6 FAT
     Phase 1 Testing          4w     10/5/98    10/30/98
------------------------------------------------------------------------------------------------------------------------------------
412  SAN 7-12 FAT
     Phase 1 Testing          2w     11/2/98    11/13/98
------------------------------------------------------------------------------------------------------------------------------------
413  HPN EQUIPMENT
     TRANSPORTATION         112d     10/5/98     2/28/99
------------------------------------------------------------------------------------------------------------------------------------
414  HPN # 1 SAN 1
     - USA                   36d     10/5/98    11/21/98
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
                                                                 1998
                             ------------------------------------------------------------------------------
ID  TASK NAME                J      F      M      A      M      J      J      A      S      O      N     D
-----------------------------------------------------------------------------------------------------------
<S> <C>                     <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
397  HPN FUNCTIONAL
     ANALSYS
-----------------------------------------------------------------------------------------------------------
398  HPN SUBSYSTEM DESIGN
     DOCUMENT
-----------------------------------------------------------------------------------------------------------
399  SYSTEM ENGINEERING
     SUPPORT
-----------------------------------------------------------------------------------------------------------
400  SOFTWARE DETAILED
     DESIGN
-----------------------------------------------------------------------------------------------------------
401  CONTROLLER SOFTWARE
-----------------------------------------------------------------------------------------------------------
402  CHANNEL UNIT
     SOFTWARE
-----------------------------------------------------------------------------------------------------------
403  CONTROLLER S/W
     RELEASE 1
-----------------------------------------------------------------------------------------------------------
404  CU PROJECT
     MANAGEMENT
-----------------------------------------------------------------------------------------------------------
405  CHANNEL UNIT
     HARDWARE DESIGN
-----------------------------------------------------------------------------------------------------------
406  CU SOFTWARE
     DEVELOPMENT
-----------------------------------------------------------------------------------------------------------
407  MECHANICAL AND
     ENVIRONMENTAL
     DESIGN
-----------------------------------------------------------------------------------------------------------
408  COTS HARDWARE
     PROCUREMENT
-----------------------------------------------------------------------------------------------------------
409  HPN PRODUCTION &
     PHASE 1 TESTING
-----------------------------------------------------------------------------------------------------------
410  SAN 1-3 FAT
     PHASE 1 TESTING
-----------------------------------------------------------------------------------------------------------
411  SAN 4-6 FAT
     PHASE 1 TESTING
-----------------------------------------------------------------------------------------------------------
412  SAN 7-12 FAT
     PHASE 1 TESTING
-----------------------------------------------------------------------------------------------------------
413  HPN EQUIPMENT
     TRANSPORTATION
-----------------------------------------------------------------------------------------------------------
414  HPN # 1 SAN 1
     - USA
-----------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------
                                                                  1999
                             -------------------------------------------------------------------------------
ID  TASK NAME                J      F      M      A      M      J      J      A      S      O     N     D
------------------------------------------------------------------------------------------------------------
<S> <C>                     <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>   <C>
397  HPN FUNCTIONAL
     ANALSYS
------------------------------------------------------------------------------------------------------------
398  HPN SUBSYSTEM DESIGN
     DOCUMENT
------------------------------------------------------------------------------------------------------------
399  SYSTEM ENGINEERING
     SUPPORT
------------------------------------------------------------------------------------------------------------
400  SOFTWARE DETAILED
     DESIGN
------------------------------------------------------------------------------------------------------------
401  CONTROLLER SOFTWARE
------------------------------------------------------------------------------------------------------------
402  CHANNEL UNIT
     SOFTWARE
------------------------------------------------------------------------------------------------------------
403  CONTROLLER S/W
     RELEASE 1
------------------------------------------------------------------------------------------------------------
404  CU PROJECT
     MANAGEMENT
------------------------------------------------------------------------------------------------------------
405  CHANNEL UNIT
     HARDWARE DESIGN
------------------------------------------------------------------------------------------------------------
406  CU SOFTWARE
     DEVELOPMENT
------------------------------------------------------------------------------------------------------------
407  MECHANICAL AND
     ENVIRONMENTAL
     DESIGN
------------------------------------------------------------------------------------------------------------
408  COTS HARDWARE
     PROCUREMENT
------------------------------------------------------------------------------------------------------------
409  HPN PRODUCTION &
     PHASE 1 TESTING
------------------------------------------------------------------------------------------------------------
410  SAN 1-3 FAT
     PHASE 1 TESTING
------------------------------------------------------------------------------------------------------------
411  SAN 4-6 FAT
     PHASE 1 TESTING
------------------------------------------------------------------------------------------------------------
412  SAN 7-12 FAT
     PHASE 1 TESTING
------------------------------------------------------------------------------------------------------------
413  HPN EQUIPMENT
     TRANSPORTATION
------------------------------------------------------------------------------------------------------------
414  HPN # 1 SAN 1
     - USA
------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
                                                                 2000
                            -------------------------------------------------------------------------------
ID  TASK NAME               J      F      M      A      M      J      J      A      S      O     N     D
-----------------------------------------------------------------------------------------------------------
<S> <C>                    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>   <C>
397  HPN FUNCTIONAL
     ANALSYS
----------------------------------------------------------------------------------------------------------
398  HPN SUBSYSTEM DESIGN
     DOCUMENT
----------------------------------------------------------------------------------------------------------
399  SYSTEM ENGINEERING
     SUPPORT
----------------------------------------------------------------------------------------------------------
400  SOFTWARE DETAILED
     DESIGN
----------------------------------------------------------------------------------------------------------
401  CONTROLLER SOFTWARE
----------------------------------------------------------------------------------------------------------
402  CHANNEL UNIT
     SOFTWARE
----------------------------------------------------------------------------------------------------------
403  CONTROLLER S/W
     RELEASE 1
----------------------------------------------------------------------------------------------------------
404  CU PROJECT
     MANAGEMENT
----------------------------------------------------------------------------------------------------------
405  CHANNEL UNIT
     HARDWARE DESIGN
----------------------------------------------------------------------------------------------------------
406  CU SOFTWARE
     DEVELOPMENT
----------------------------------------------------------------------------------------------------------
407  MECHANICAL AND
     ENVIRONMENTAL
     DESIGN
----------------------------------------------------------------------------------------------------------
408  COTS HARDWARE
     PROCUREMENT
----------------------------------------------------------------------------------------------------------
409  HPN PRODUCTION &
     PHASE 1 TESTING
----------------------------------------------------------------------------------------------------------
410  SAN 1-3 FAT
     PHASE 1 TESTING
----------------------------------------------------------------------------------------------------------
411  SAN 4-6 FAT
     PHASE 1 TESTING
----------------------------------------------------------------------------------------------------------
412  SAN 7-12 FAT
     PHASE 1 TESTING
----------------------------------------------------------------------------------------------------------
413  HPN EQUIPMENT
     TRANSPORTATION
----------------------------------------------------------------------------------------------------------
414  HPN # 1 SAN 1
     - USA
----------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------
</TABLE>
PROJECT: 18 NOV ICO MLS VER 39.MPP
DATE: 11/18/97

DOC: 770019 VERSION 3.9       PAGE 23         REVISED ON THE 12TH NOVEMBER, 1997
<PAGE>   1061

                   IGF PROJECT MASTER LEVEL SCHEDULE REV 3.9

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                                              1997
                                                            ------------------------------------------------------------------------
ID  TASK NAME                DUR      START      FINISH      F      M      A      M      J      J      A      S      O      N     D
------------------------------------------------------------------------------------------------------------------------------------
<S> <C>                    <C>      <C>        <C>        <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
415  HPN # 2 SAN 2
     - INDIA                 36d     10/5/98    11/21/98
------------------------------------------------------------------------------------------------------------------------------------
416  HPN # 3 SAN 3
     - AUSTRALIA             36d     10/5/98    11/21/98
------------------------------------------------------------------------------------------------------------------------------------
417  HPN # 4 SAN 4
     - SOUTH AFRICA          36d     11/2/98    12/17/98
------------------------------------------------------------------------------------------------------------------------------------
418  HPN # 5 SAN 5
     - CHILE                 36d     11/2/98    12/17/98
------------------------------------------------------------------------------------------------------------------------------------
419  HPN # 6 SAN 6
     - GERMANY               36d     11/2/98    12/17/98
------------------------------------------------------------------------------------------------------------------------------------
420  HPN # 7 SAN 7
     - INDONESIA             36d    11/16/98    12/31/98
------------------------------------------------------------------------------------------------------------------------------------
421  HPN # 8 SAN 8
     - KOREA                 36d    11/16/98    12/31/98
------------------------------------------------------------------------------------------------------------------------------------
422  HPN # 9 SAN 9
     - MEXICO                36d    11/16/98    12/31/98
------------------------------------------------------------------------------------------------------------------------------------
423  HPN # 10 SAN 10
     - UAE                   36d    11/16/98    12/31/98
------------------------------------------------------------------------------------------------------------------------------------
424  HPN # 11 SAN 11
     - CHINA                 36d     1/15/99     2/28/99
------------------------------------------------------------------------------------------------------------------------------------
425  HPN # 12 SAN 12
     - BRAZIL                36d     1/15/99     2/28/99
------------------------------------------------------------------------------------------------------------------------------------
426
------------------------------------------------------------------------------------------------------------------------------------
427  TNM                    667d      3/7/97     8/26/99
------------------------------------------------------------------------------------------------------------------------------------
428  TNM DESIGN             258d      3/7/97     2/25/98
------------------------------------------------------------------------------------------------------------------------------------
429  SYSTEM DESIGN          258d      3/7/97     2/25/98
------------------------------------------------------------------------------------------------------------------------------------
430  SYSTEM ENGINEERING      29d     10/1/97     11/7/97
------------------------------------------------------------------------------------------------------------------------------------
431  HARDWARE               539d      9/3/97     8/26/99
------------------------------------------------------------------------------------------------------------------------------------
432  MUX/VOCODER            315d      9/3/97    10/28/98
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
                                                                 1998
                             ------------------------------------------------------------------------------
ID  TASK NAME                J      F      M      A      M      J      J      A      S      O      N     D
-----------------------------------------------------------------------------------------------------------
<S> <C>                     <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
415  HPN # 2 SAN 2
     - INDIA
-----------------------------------------------------------------------------------------------------------
416  HPN # 3 SAN 3
     - AUSTRALIA
-----------------------------------------------------------------------------------------------------------
417  HPN # 4 SAN 4
     - SOUTH AFRICA
-----------------------------------------------------------------------------------------------------------
418  HPN # 5 SAN 5
     - CHILE
-----------------------------------------------------------------------------------------------------------
419  HPN # 6 SAN 6
     - GERMANY
-----------------------------------------------------------------------------------------------------------
420  HPN # 7 SAN 7
     - INDONESIA
-----------------------------------------------------------------------------------------------------------
421  HPN # 8 SAN 8
     - KOREA
-----------------------------------------------------------------------------------------------------------
422  HPN # 9 SAN 9
     - MEXICO
-----------------------------------------------------------------------------------------------------------
423  HPN # 10 SAN 10
     - UAE
-----------------------------------------------------------------------------------------------------------
424  HPN # 11 SAN 11
     - CHINA
-----------------------------------------------------------------------------------------------------------
425  HPN # 12 SAN 12
     - BRAZIL
-----------------------------------------------------------------------------------------------------------
426
-----------------------------------------------------------------------------------------------------------
427  TNM
-----------------------------------------------------------------------------------------------------------
428  TNM DESIGN
-----------------------------------------------------------------------------------------------------------
429  SYSTEM DESIGN
-----------------------------------------------------------------------------------------------------------
430  SYSTEM ENGINEERING
-----------------------------------------------------------------------------------------------------------
431  HARDWARE
-----------------------------------------------------------------------------------------------------------
432  MUX/VOCODER
-----------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------
                                                                  1999
                             -------------------------------------------------------------------------------
ID  TASK NAME                J      F      M      A      M      J      J      A      S      O     N     D
------------------------------------------------------------------------------------------------------------
<S> <C>                     <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>   <C>
415  HPN # 2 SAN 2
     - INDIA
-----------------------------------------------------------------------------------------------------------
416  HPN # 3 SAN 3
     - AUSTRALIA
-----------------------------------------------------------------------------------------------------------
417  HPN # 4 SAN 4
     - SOUTH AFRICA
-----------------------------------------------------------------------------------------------------------
418  HPN # 5 SAN 5
     - CHILE
-----------------------------------------------------------------------------------------------------------
419  HPN # 6 SAN 6
     - GERMANY
-----------------------------------------------------------------------------------------------------------
420  HPN # 7 SAN 7
     - INDONESIA
-----------------------------------------------------------------------------------------------------------
421  HPN # 8 SAN 8
     - KOREA
-----------------------------------------------------------------------------------------------------------
422  HPN # 9 SAN 9
     - MEXICO
-----------------------------------------------------------------------------------------------------------
423  HPN # 10 SAN 10
     - UAE
-----------------------------------------------------------------------------------------------------------
424  HPN # 11 SAN 11
     - CHINA
-----------------------------------------------------------------------------------------------------------
425  HPN # 12 SAN 12
     - BRAZIL
-----------------------------------------------------------------------------------------------------------
426
-----------------------------------------------------------------------------------------------------------
427  TNM
-----------------------------------------------------------------------------------------------------------
428  TNM DESIGN
-----------------------------------------------------------------------------------------------------------
429  SYSTEM DESIGN
-----------------------------------------------------------------------------------------------------------
430  SYSTEM ENGINEERING
-----------------------------------------------------------------------------------------------------------
431  HARDWARE
-----------------------------------------------------------------------------------------------------------
432  MUX/VOCODER
------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
                                                                 2000
                            -------------------------------------------------------------------------------
ID  TASK NAME               J      F      M      A      M      J      J      A      S      O     N     D
-----------------------------------------------------------------------------------------------------------
<S> <C>                    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>   <C>
415  HPN # 2 SAN 2
     - INDIA
-----------------------------------------------------------------------------------------------------------
416  HPN # 3 SAN 3
     - AUSTRALIA
-----------------------------------------------------------------------------------------------------------
417  HPN # 4 SAN 4
     - SOUTH AFRICA
-----------------------------------------------------------------------------------------------------------
418  HPN # 5 SAN 5
     - CHILE
-----------------------------------------------------------------------------------------------------------
419  HPN # 6 SAN 6
     - GERMANY
-----------------------------------------------------------------------------------------------------------
420  HPN # 7 SAN 7
     - INDONESIA
-----------------------------------------------------------------------------------------------------------
421  HPN # 8 SAN 8
     - KOREA
-----------------------------------------------------------------------------------------------------------
422  HPN # 9 SAN 9
     - MEXICO
-----------------------------------------------------------------------------------------------------------
423  HPN # 10 SAN 10
     - UAE
-----------------------------------------------------------------------------------------------------------
424  HPN # 11 SAN 11
     - CHINA
-----------------------------------------------------------------------------------------------------------
425  HPN # 12 SAN 12
     - BRAZIL
-----------------------------------------------------------------------------------------------------------
426
-----------------------------------------------------------------------------------------------------------
427  TNM
-----------------------------------------------------------------------------------------------------------
428  TNM DESIGN
-----------------------------------------------------------------------------------------------------------
429  SYSTEM DESIGN
-----------------------------------------------------------------------------------------------------------
430  SYSTEM ENGINEERING
-----------------------------------------------------------------------------------------------------------
431  HARDWARE
-----------------------------------------------------------------------------------------------------------
432  MUX/VOCODER
----------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------
</TABLE>
PROJECT: 18 NOV ICO MLS VER 39.MPP
DATE: 11/18/97

DOC: 770019 VERSION 3.9       PAGE 24         REVISED ON THE 12TH NOVEMBER, 1997
<PAGE>   1062

                   IGF PROJECT MASTER LEVEL SCHEDULE REV 3.9

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                                              1997
                                                            ------------------------------------------------------------------------
ID   TASK NAME               DUR      START      FINISH      F      M      A      M      J      J      A      S      O      N     D
------------------------------------------------------------------------------------------------------------------------------------
<S>  <C>                    <C>     <C>        <C>         <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
433  Concept                 57d      9/3/97    11/18/97
------------------------------------------------------------------------------------------------------------------------------------
434  Program Management
      Plan                   37d     9/23/97    11/11/97
------------------------------------------------------------------------------------------------------------------------------------
435  Development of Product
      Specification          45d      9/3/97     11/3/97
------------------------------------------------------------------------------------------------------------------------------------
436  Request For Quote       27d     9/23/97    10/29/97
------------------------------------------------------------------------------------------------------------------------------------
437  Sub-Contractor
      Selection              13d     11/3/97    11/18/97
------------------------------------------------------------------------------------------------------------------------------------
438  DEMONSTRATION          158d    11/18/97     6/17/98
------------------------------------------------------------------------------------------------------------------------------------
439  Prepare Test Plan       58d    11/18/97      2/4/98
------------------------------------------------------------------------------------------------------------------------------------
440  M/V Hardware
      Documentation         158d    11/18/97     6/17/98
------------------------------------------------------------------------------------------------------------------------------------
441  M/V Hardware           158d    11/18/97     6/17/98
------------------------------------------------------------------------------------------------------------------------------------
442  Hardware Test System
      Development           150d    11/28/97     6/17/98
------------------------------------------------------------------------------------------------------------------------------------
443  EMC Test System
      Development           148d    11/18/97      6/4/98
------------------------------------------------------------------------------------------------------------------------------------
444  M/V Software
      Documentation         158d    11/18/97     6/17/98
------------------------------------------------------------------------------------------------------------------------------------
445  M/V Software            158d    11/18/97     6/17/98
------------------------------------------------------------------------------------------------------------------------------------
446  Software Test System
      Development           150d    11/28/97     6/17/98
------------------------------------------------------------------------------------------------------------------------------------
447  M/V MANUFACTURE        259d    11/18/97    10/28/98
------------------------------------------------------------------------------------------------------------------------------------
448  Development of
      Test Cards            110d    11/18/97     4/15/98
------------------------------------------------------------------------------------------------------------------------------------
449  Development &
      Pilot Production      112d      4/2/98     8/26/98
------------------------------------------------------------------------------------------------------------------------------------
450  Mux/Vocoder Card Full
      Scale Production       47d     8/27/98    10/28/98
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
                                                                          1998
                                     ----------------------------------------------------------------------------------
ID     TASK NAME                       J      F      M      A      M      J      J      A      S      O      N      D
-----------------------------------------------------------------------------------------------------------------------
<S>    <C>                           <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>
433  Concept
-----------------------------------------------------------------------------------------------------------------------
434  Program Management Plan
-----------------------------------------------------------------------------------------------------------------------
435  Development of Product
      Specification
-----------------------------------------------------------------------------------------------------------------------
436  Request For Quote
-----------------------------------------------------------------------------------------------------------------------
437  Sub-Contractor Selection
-----------------------------------------------------------------------------------------------------------------------
438  DEMONSTRATION
-----------------------------------------------------------------------------------------------------------------------
439  Prepare Test Plan
-----------------------------------------------------------------------------------------------------------------------
440  M/V Hardware Documentation
-----------------------------------------------------------------------------------------------------------------------
441  M/V Hardware
-----------------------------------------------------------------------------------------------------------------------
442  Hardware Test System
      Development
-----------------------------------------------------------------------------------------------------------------------
443  EMC Test System Development
-----------------------------------------------------------------------------------------------------------------------
444  M/V Software Documentation
-----------------------------------------------------------------------------------------------------------------------
445  M/V Software
-----------------------------------------------------------------------------------------------------------------------
446  Software Test System
      Development
-----------------------------------------------------------------------------------------------------------------------
447  M/V MANUFACTURE
-----------------------------------------------------------------------------------------------------------------------
448  Development of Test Cards
-----------------------------------------------------------------------------------------------------------------------
449  Development &
      Pilot Production
-----------------------------------------------------------------------------------------------------------------------
450  Mux/Vocoder Card Full
      Scale Production
-----------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
                                                                          1999
                                     ----------------------------------------------------------------------------------
ID     TASK NAME                       J      F      M      A      M      J      J      A      S      O      N      D
-----------------------------------------------------------------------------------------------------------------------
<S>    <C>                           <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>
433  Concept
-----------------------------------------------------------------------------------------------------------------------
434  Program Management Plan
-----------------------------------------------------------------------------------------------------------------------
435  Development of Product
      Specification
-----------------------------------------------------------------------------------------------------------------------
436  Request For Quote
-----------------------------------------------------------------------------------------------------------------------
437  Sub-Contractor Selection
-----------------------------------------------------------------------------------------------------------------------
438  DEMONSTRATION
-----------------------------------------------------------------------------------------------------------------------
439  Prepare Test Plan
-----------------------------------------------------------------------------------------------------------------------
440  M/V Hardware Documentation
-----------------------------------------------------------------------------------------------------------------------
441  M/V Hardware
-----------------------------------------------------------------------------------------------------------------------
442  Hardware Test System
      Development
-----------------------------------------------------------------------------------------------------------------------
443  EMC Test System Development
-----------------------------------------------------------------------------------------------------------------------
444  M/V Software Documentation
-----------------------------------------------------------------------------------------------------------------------
445  M/V Software
-----------------------------------------------------------------------------------------------------------------------
446  Software Test System
      Development
-----------------------------------------------------------------------------------------------------------------------
447  M/V MANUFACTURE
-----------------------------------------------------------------------------------------------------------------------
448  Development of Test Cards
-----------------------------------------------------------------------------------------------------------------------
449  Development &
      Pilot Production
-----------------------------------------------------------------------------------------------------------------------
450  Mux/Vocoder Card Full
      Scale Production
-----------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
                                                                          2000
                                     ----------------------------------------------------------------------------------
ID     TASK NAME                       J      F      M      A      M      J      J      A      S      O      N      D
-----------------------------------------------------------------------------------------------------------------------
<S>    <C>                           <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>
433  Concept
-----------------------------------------------------------------------------------------------------------------------
434  Program Management Plan
-----------------------------------------------------------------------------------------------------------------------
435  Development of Product
      Specification
-----------------------------------------------------------------------------------------------------------------------
436  Request For Quote
-----------------------------------------------------------------------------------------------------------------------
437  Sub-Contractor Selection
-----------------------------------------------------------------------------------------------------------------------
438  DEMONSTRATION
-----------------------------------------------------------------------------------------------------------------------
439  Prepare Test Plan
-----------------------------------------------------------------------------------------------------------------------
440  M/V Hardware Documentation
-----------------------------------------------------------------------------------------------------------------------
441  M/V Hardware
-----------------------------------------------------------------------------------------------------------------------
442  Hardware Test System
      Development
-----------------------------------------------------------------------------------------------------------------------
443  EMC Test System Development
-----------------------------------------------------------------------------------------------------------------------
444  M/V Software Documentation
-----------------------------------------------------------------------------------------------------------------------
445  M/V Software
-----------------------------------------------------------------------------------------------------------------------
446  Software Test System
      Development
-----------------------------------------------------------------------------------------------------------------------
447  M/V MANUFACTURE
-----------------------------------------------------------------------------------------------------------------------
448  Development of Test Cards
-----------------------------------------------------------------------------------------------------------------------
449  Development &
      Pilot Production
-----------------------------------------------------------------------------------------------------------------------
450  Mux/Vocoder Card Full
      Scale Production
-----------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------
</TABLE>

PROJECT: 18 NOV ICO MLS VER 39.MPP
DATE: 11/18/97

DOC: 770019 VERSION 3.9       PAGE 25         REVISED ON THE 12TH NOVEMBER, 1997

<PAGE>   1063

                   IGF PROJECT MASTER LEVEL SCHEDULE REV 3.9

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                                              1997
                                                            ------------------------------------------------------------------------
ID   TASK NAME               DUR      START      FINISH      F      M      A      M      J      J      A      S      O      N     D
------------------------------------------------------------------------------------------------------------------------------------
<S>  <C>                    <C>     <C>        <C>         <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
451   SYSTEM HARDWARE       320d     9/11/97    11/12/98
------------------------------------------------------------------------------------------------------------------------------------
452   ASSEMBLY              320d     9/11/97    11/12/98
------------------------------------------------------------------------------------------------------------------------------------
453   Concepts               39d    10/20/97     12/9/98
------------------------------------------------------------------------------------------------------------------------------------
454   Procurement           189d     9/11/97     5/25/98
------------------------------------------------------------------------------------------------------------------------------------
455   Prototype             133d    11/26/97     5/25/98
------------------------------------------------------------------------------------------------------------------------------------
456   Buyer Furnished
       Equipment (BFE)       93d     9/11/97     1/15/98
------------------------------------------------------------------------------------------------------------------------------------
457   Assembly Site Build
       (SAN #1 - SAN #12)    91d     7/16/98    11/12/98
------------------------------------------------------------------------------------------------------------------------------------
458
------------------------------------------------------------------------------------------------------------------------------------
459   TNM SOFTWARE
       IMPLEMENTATION       526d     9/22/97     8/26/99
------------------------------------------------------------------------------------------------------------------------------------
460   ADACEL Project
       Management
       Documentation         28d     9/22/97    10/29/97
------------------------------------------------------------------------------------------------------------------------------------
461   Design Reviews
       (ADACEL/NECA)        141d    11/28/97      6/5/98
------------------------------------------------------------------------------------------------------------------------------------
462   DETAILED DESIGN
       AND CODING           435d     9/29/97     4/29/99
------------------------------------------------------------------------------------------------------------------------------------
463   Build A
       (Infrastructure)     150d     9/29/97     4/17/98
------------------------------------------------------------------------------------------------------------------------------------
464   Build B
       (External I/F)       252d     9/29/97     8/28/98
------------------------------------------------------------------------------------------------------------------------------------
465   Build C
       (Interworking)       313d    11/25/97     1/15/99
------------------------------------------------------------------------------------------------------------------------------------
466   Build D
       (Final Build)        325d     2/24/98     4/29/99
------------------------------------------------------------------------------------------------------------------------------------
467   Software Release
       Schedule             306d     7/14/98     8/26/99
------------------------------------------------------------------------------------------------------------------------------------
468   TNM Software Pre-
       Release 1A             0d     7/14/98     7/14/98
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
                                                                          1998
                                     ----------------------------------------------------------------------------------
ID     TASK NAME                       J      F      M      A      M      J      J      A      S      O      N      D
-----------------------------------------------------------------------------------------------------------------------
<S>    <C>                           <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>
451   SYSTEM HARDWARE
-----------------------------------------------------------------------------------------------------------------------
452   ASSEMBLY
-----------------------------------------------------------------------------------------------------------------------
453   Concepts
-----------------------------------------------------------------------------------------------------------------------
454   Procurement
-----------------------------------------------------------------------------------------------------------------------
455   Prototype
-----------------------------------------------------------------------------------------------------------------------
456   Buyer Furnished Equipment
       (BFE)
-----------------------------------------------------------------------------------------------------------------------
457   Assembly Site Build
       (SAN #1 - SAN #12)
-----------------------------------------------------------------------------------------------------------------------
458
-----------------------------------------------------------------------------------------------------------------------
459   TNM SOFTWARE IMPLEMENTATION
-----------------------------------------------------------------------------------------------------------------------
460   ADACEL Project
       Management Documentation
-----------------------------------------------------------------------------------------------------------------------
461   Design Reviews
       (ADACEL/NECA)
-----------------------------------------------------------------------------------------------------------------------
462   DETAILED DESIGN AND CODING
-----------------------------------------------------------------------------------------------------------------------
463   Build A (Infrastructure)
-----------------------------------------------------------------------------------------------------------------------
464   Build B (External I/F)
-----------------------------------------------------------------------------------------------------------------------
465   Build C (Interworking)
-----------------------------------------------------------------------------------------------------------------------
466   Build D (Final Build)
-----------------------------------------------------------------------------------------------------------------------
467   Software Release Schedule
-----------------------------------------------------------------------------------------------------------------------
468   TNM Software Pre-Release 1A                                               7/14
-----------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
                                                                          1999
                                     ----------------------------------------------------------------------------------
ID     TASK NAME                       J      F      M      A      M      J      J      A      S      O      N      D
-----------------------------------------------------------------------------------------------------------------------
<S>    <C>                           <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>
451   SYSTEM HARDWARE
-----------------------------------------------------------------------------------------------------------------------
452   ASSEMBLY
-----------------------------------------------------------------------------------------------------------------------
453   Concepts
-----------------------------------------------------------------------------------------------------------------------
454   Procurement
-----------------------------------------------------------------------------------------------------------------------
455   Prototype
-----------------------------------------------------------------------------------------------------------------------
456   Buyer Furnished Equipment
       (BFE)
-----------------------------------------------------------------------------------------------------------------------
457   Assembly Site Build
       (SAN #1 - SAN #12)
-----------------------------------------------------------------------------------------------------------------------
458
-----------------------------------------------------------------------------------------------------------------------
459   TNM SOFTWARE IMPLEMENTATION
-----------------------------------------------------------------------------------------------------------------------
460   ADACEL Project
       Management Documentation
-----------------------------------------------------------------------------------------------------------------------
461   Design Reviews
       (ADACEL/NECA)
-----------------------------------------------------------------------------------------------------------------------
462   DETAILED DESIGN AND CODING
-----------------------------------------------------------------------------------------------------------------------
463   Build A (Infrastructure)
-----------------------------------------------------------------------------------------------------------------------
464   Build B (External I/F)
-----------------------------------------------------------------------------------------------------------------------
465   Build C (Interworking)
-----------------------------------------------------------------------------------------------------------------------
466   Build D (Final Build)
-----------------------------------------------------------------------------------------------------------------------
467   Software Release Schedule
-----------------------------------------------------------------------------------------------------------------------
468   TNM Software Pre-Release 1A
-----------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
                                                                          2000
                                     ----------------------------------------------------------------------------------
ID     TASK NAME                       J      F      M      A      M      J      J      A      S      O      N      D
-----------------------------------------------------------------------------------------------------------------------
<S>    <C>                           <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>
451   SYSTEM HARDWARE
-----------------------------------------------------------------------------------------------------------------------
452   ASSEMBLY
-----------------------------------------------------------------------------------------------------------------------
453   Concepts
-----------------------------------------------------------------------------------------------------------------------
454   Procurement
-----------------------------------------------------------------------------------------------------------------------
455   Prototype
-----------------------------------------------------------------------------------------------------------------------
456   Buyer Furnished Equipment
       (BFE)
-----------------------------------------------------------------------------------------------------------------------
457   Assembly Site Build
       (SAN #1 - SAN #12)
-----------------------------------------------------------------------------------------------------------------------
458
-----------------------------------------------------------------------------------------------------------------------
459   TNM SOFTWARE IMPLEMENTATION
-----------------------------------------------------------------------------------------------------------------------
460   ADACEL Project
       Management Documentation
-----------------------------------------------------------------------------------------------------------------------
461   Design Reviews
       (ADACEL/NECA)
-----------------------------------------------------------------------------------------------------------------------
462   DETAILED DESIGN AND CODING
-----------------------------------------------------------------------------------------------------------------------
463   Build A (Infrastructure)
-----------------------------------------------------------------------------------------------------------------------
464   Build B (External I/F)
-----------------------------------------------------------------------------------------------------------------------
465   Build C (Interworking)
-----------------------------------------------------------------------------------------------------------------------
466   Build D (Final Build)
-----------------------------------------------------------------------------------------------------------------------
467   Software Release Schedule
-----------------------------------------------------------------------------------------------------------------------
468   TNM Software Pre-Release 1A
-----------------------------------------------------------------------------------------------------------------------
</TABLE>

PROJECT: 18 NOV ICO MLS VER 39.MPP
DATE: 11/18/97

DOC: 770019 VERSION 3.9       PAGE 26         REVISED ON THE 12TH NOVEMBER, 1997
<PAGE>   1064

                   IGF PROJECT MASTER LEVEL SCHEDULE REV 3.9

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                                              1997
                                                            ------------------------------------------------------------------------
ID  TASK NAME                DUR     START      FINISH       F      M      A      M      J      J      A      S      O      N     D
------------------------------------------------------------------------------------------------------------------------------------
<S> <C>                    <C>     <C>        <C>         <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
469 TNM Software             0d     9/1/98      9/1/98
    Release 1A (Build B)
------------------------------------------------------------------------------------------------------------------------------------
470 TNM Software             0d    1/15/99     1/15/99
    Release 1.0 (Build C)
------------------------------------------------------------------------------------------------------------------------------------
471 TNM Software             0d    4/30/99     4/30/99
    Release 1.5 (Build D)
------------------------------------------------------------------------------------------------------------------------------------
472 TNM Software             0d    8/26/99     8/26/99
    Release 2.0
    (regression testing)
------------------------------------------------------------------------------------------------------------------------------------
473
------------------------------------------------------------------------------------------------------------------------------------
474 PHASE 1 FACTORY        171d     9/1/98     4/16/99
    TESTING
------------------------------------------------------------------------------------------------------------------------------------
475 SAN 3 - Australia       23d     9/1/98     9/30/98
------------------------------------------------------------------------------------------------------------------------------------
476 TNM #1 MANUFACTURE &     0d    4/16/99     4/16/99
    PHASE 1 TESTING (TOP
    LEVEL MILESTONE)
------------------------------------------------------------------------------------------------------------------------------------
477 SANs 1 & 2 USA &        18d    10/1/98    10/26/98
    India
------------------------------------------------------------------------------------------------------------------------------------
478 SANs 4, 5 & 6 -         21d   10/27/98    11/23/98
    South Africa,
    Chile, & Germany
------------------------------------------------------------------------------------------------------------------------------------
479 SANs 7, 8 and 9 -       20d   11/24/98    12/18/98
    Indonesia, Korea
    and Mexico
------------------------------------------------------------------------------------------------------------------------------------
480 SANs 10, 11 & 12 -      25d   12/21/98     1/22/98
    UAE, China and Brazil
------------------------------------------------------------------------------------------------------------------------------------
481
------------------------------------------------------------------------------------------------------------------------------------
482 TNM EQUIPMENT          117d    10/8/98     3/10/99
    TRANSPORTATION SITE
------------------------------------------------------------------------------------------------------------------------------------
483 TNM #1 SAN 1 - USA      29d    11/3/98     12/9/98
------------------------------------------------------------------------------------------------------------------------------------
484 TNM #2 SAN 2 - INDIA    29d    11/3/98     12/9/98
------------------------------------------------------------------------------------------------------------------------------------
485 TNM #3 SAN 3 -           5d    10/8/98    10/14/98
    AUSTRALIA
------------------------------------------------------------------------------------------------------------------------------------
486 TNM #4 SAN 4 -          28d    12/1/98      1/6/99
    SOUTH AFRICA
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------
                                                                   1998
                               ------------------------------------------------------------------------------
ID  TASK NAME                  J      F      M      A      M      J      J      A      S      O      N     D
-------------------------------------------------------------------------------------------------------------
<S> <C>                       <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
469 TNM Software
    Release 1A (Build B)                                                               9/1
-------------------------------------------------------------------------------------------------------------
470 TNM Software
    Release 1.0 (Build C)
-------------------------------------------------------------------------------------------------------------
471 TNM Software
    Release 1.5 (Build D)
-------------------------------------------------------------------------------------------------------------
472 TNM Software
    Release 2.0
    (regression testing)
-------------------------------------------------------------------------------------------------------------
473
-------------------------------------------------------------------------------------------------------------
474 PHASE 1 FACTORY
    TESTING
-------------------------------------------------------------------------------------------------------------
475 SAN 3 - Australia
-------------------------------------------------------------------------------------------------------------
476 TNM #1 MANUFACTURE &
    PHASE 1 TEST (TOP
    LEVEL MILESTONE)
-------------------------------------------------------------------------------------------------------------
477 SANs 1 & 2 USA &
    India
-------------------------------------------------------------------------------------------------------------
478 SANs 4, 5 & 6 -
    South Africa,
    Chile, & Germany
-------------------------------------------------------------------------------------------------------------
479 SANs 7, 8 and 9 -
    Indonesia, Korea
    and Mexico
-------------------------------------------------------------------------------------------------------------
480 SANS 10, 11 & 12 -
    UAE, China and Brazil
-------------------------------------------------------------------------------------------------------------
481
-------------------------------------------------------------------------------------------------------------
482 TNM EQUIPMENT
    TRANSPORTATION SITE
-------------------------------------------------------------------------------------------------------------
483 TNM #1 SAN 1 - USA
-------------------------------------------------------------------------------------------------------------
484 TNM #2 SAN 2 - INDIA
-------------------------------------------------------------------------------------------------------------
485 TNM #3 SAN 3 -
    AUSTRALIA
-------------------------------------------------------------------------------------------------------------
486 TNM #4 SAN 4 -
    SOUTH AFRICA
-------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------
                                                                   1999
                               ------------------------------------------------------------------------------
ID  TASK NAME                  J      F      M      A      M      J      J      A      S      O      N     D
-------------------------------------------------------------------------------------------------------------
<S> <C>                       <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
469 TNM Software
    Release 1A (Build B)
-------------------------------------------------------------------------------------------------------------
470 TNM Software
    Release 1.0 (Build C)      1/15
-------------------------------------------------------------------------------------------------------------
471 TNM Software
    Release 1.5 (Build D)                          4/30
-------------------------------------------------------------------------------------------------------------
472 TNM Software
    Release 2.0
    (regression testing)                                                        8/26
-------------------------------------------------------------------------------------------------------------
473
-------------------------------------------------------------------------------------------------------------
474 PHASE 1 FACTORY
    TESTING
-------------------------------------------------------------------------------------------------------------
475 SAN 3 - Australia
-------------------------------------------------------------------------------------------------------------
476 TNM #1 MANUFACTURE &
    PHASE 1 TEST (TOP
    LEVEL MILESTONE)                               4/16
-------------------------------------------------------------------------------------------------------------
477 SANs 1 & 2 USA &
    India
-------------------------------------------------------------------------------------------------------------
478 SANs 4, 5 & 6 -
    South Africa,
    Chile, & Germany
-------------------------------------------------------------------------------------------------------------
479 SANs 7, 8 and 9 -
    Indonesia, Korea
    and Mexico
-------------------------------------------------------------------------------------------------------------
480 SANS 10, 11 & 12 -
    UAE, China and Brazil
-------------------------------------------------------------------------------------------------------------
481
-------------------------------------------------------------------------------------------------------------
482 TNM EQUIPMENT
    TRANSPORTATION SITE
-------------------------------------------------------------------------------------------------------------
483 TNM #1 SAN 1 - USA
-------------------------------------------------------------------------------------------------------------
484 TNM #2 SAN 2 - INDIA
-------------------------------------------------------------------------------------------------------------
485 TNM #3 SAN 3 -
    AUSTRALIA
-------------------------------------------------------------------------------------------------------------
486 TNM #4 SAN 4 -
    SOUTH AFRICA
-------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------
                                                                   2000
                               ------------------------------------------------------------------------------
ID  TASK NAME                  J      F      M      A      M      J      J      A      S      O      N     D
-------------------------------------------------------------------------------------------------------------
<S> <C>                       <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
469 TNM Software
    Release 1A (Build B)
-------------------------------------------------------------------------------------------------------------
470 TNM Software
    Release 1.0 (Build C)
-------------------------------------------------------------------------------------------------------------
471 TNM Software
    Release 1.5 (Build D)
-------------------------------------------------------------------------------------------------------------
472 TNM Software
    Release 2.0
    (regression testing)
-------------------------------------------------------------------------------------------------------------
473
-------------------------------------------------------------------------------------------------------------
474 PHASE 1 FACTORY
    TESTING
-------------------------------------------------------------------------------------------------------------
475 SAN 3 - Australia
-------------------------------------------------------------------------------------------------------------
476 TNM #1 MANUFACTURE &
    PHASE 1 TEST (TOP
    LEVEL MILESTONE)
-------------------------------------------------------------------------------------------------------------
477 SANs 1 & 2 USA &
    India
-------------------------------------------------------------------------------------------------------------
478 SANs 4, 5 & 6 -
    South Africa,
    Chile, & Germany
-------------------------------------------------------------------------------------------------------------
479 SANs 7, 8 and 9 -
    Indonesia, Korea
    and Mexico
-------------------------------------------------------------------------------------------------------------
480 SANS 10, 11 & 12 -
    UAE, China and Brazil
-------------------------------------------------------------------------------------------------------------
481
-------------------------------------------------------------------------------------------------------------
482 TNM EQUIPMENT
    TRANSPORTATION SITE
-------------------------------------------------------------------------------------------------------------
483 TNM #1 SAN 1 - USA
-------------------------------------------------------------------------------------------------------------
484 TNM #2 SAN 2 - INDIA
-------------------------------------------------------------------------------------------------------------
485 TNM #3 SAN 3 -
    AUSTRALIA
-------------------------------------------------------------------------------------------------------------
486 TNM #4 SAN 4 -
    SOUTH AFRICA
-------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------
</TABLE>

PROJECT: 18 NOV ICO MLS VER 39.MPP
DATE: 11/18/97

DOC: 770019 VERSION 3.9       PAGE 27         REVISED ON THE 12TH NOVEMBER, 1997

<PAGE>   1065

                   IGF PROJECT MASTER LEVEL SCHEDULE REV 3.9

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                                              1997
                                                            ------------------------------------------------------------------------
ID  TASK NAME                DUR     START      FINISH       F      M      A      M      J      J      A      S      O      N     D
------------------------------------------------------------------------------------------------------------------------------------
<S> <C>                    <C>     <C>        <C>         <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
487 TNM #5 SAN 5 - CHILE    28d     12/1/98      1/6/99
------------------------------------------------------------------------------------------------------------------------------------
488 TNM #6 SAN 6 -          28d     12/1/98      1/6/99
    GERMANY
------------------------------------------------------------------------------------------------------------------------------------
489 TNM #7 SAN 7 -          29d      1/5/99     2/10/99
    INDONESIA
------------------------------------------------------------------------------------------------------------------------------------
490 TNM #8 SAN 8 - KOREA    29d      1/5/99     2/10/99
------------------------------------------------------------------------------------------------------------------------------------
491 TNM #9 SAN 9 - MEXICO   29d      1/5/99     2/10/99
------------------------------------------------------------------------------------------------------------------------------------
492 TNM #10 SAN 10 - UAE    30d      2/2/99     3/10/99
------------------------------------------------------------------------------------------------------------------------------------
493 TNM #11 SAN 11 -        30d      2/2/99     3/10/99
    CHINA
------------------------------------------------------------------------------------------------------------------------------------
494 TNM #12 SAN 12 -        30d      2/2/99     3/10/99
    BRAZIL
------------------------------------------------------------------------------------------------------------------------------------
495
------------------------------------------------------------------------------------------------------------------------------------
496 DIGITAL COMMUNICATIONS 271d      4/3/98     3/25/99
    NETWORK
------------------------------------------------------------------------------------------------------------------------------------
497 DIGITAL COMMUNICATIONS 107d      4/3/98     8/21/98
    NETWORK DESIGN
------------------------------------------------------------------------------------------------------------------------------------
498 Hardware Design and    107d      4/3/98     8/21/98
    Procurement
------------------------------------------------------------------------------------------------------------------------------------
499 Software Design &      107d      4/3/98     8/21/98
    Development
------------------------------------------------------------------------------------------------------------------------------------
500 DCN EQUIPMENT          133d     10/1/98     3/25/99
    TRANSPORTATION
------------------------------------------------------------------------------------------------------------------------------------
501 DCN #1 SAN 1 - USA      36d    10/26/98    12/10/98
------------------------------------------------------------------------------------------------------------------------------------
502 DCN #2 SAN 2 - INDIA    36d    10/27/98    12/11/98
------------------------------------------------------------------------------------------------------------------------------------
503 DCN #3 SAN 3 -          10d     10/1/98    10/14/98
    AUSTRALIA
------------------------------------------------------------------------------------------------------------------------------------
504 DCN #4 SAN 4 -          36d    11/30/98     1/15/99
    SOUTH AFRICA
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
                                                                 1998
                             ------------------------------------------------------------------------------
ID  TASK NAME                J      F      M      A      M      J      J      A      S      O      N     D
-----------------------------------------------------------------------------------------------------------
<S> <C>                     <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
487 TNM #5 SAN 5 - CHILE
-----------------------------------------------------------------------------------------------------------
488 TNM #6 SAN 6 -
    GERMANY
-----------------------------------------------------------------------------------------------------------
489 TNM #7 SAN 7 -
    INDONESIA
-----------------------------------------------------------------------------------------------------------
490 TNM #8 SAN 8 - KOREA
-----------------------------------------------------------------------------------------------------------
491 TNM #9 SAN 9 - MEXICO
-----------------------------------------------------------------------------------------------------------
492 TNM #10 SAN 10 - UAE
-----------------------------------------------------------------------------------------------------------
493 TNM #11 SAN 11 -
    CHINA
-----------------------------------------------------------------------------------------------------------
494 TNM #12 SAN 12 -
    BRAZIL
-----------------------------------------------------------------------------------------------------------
495
-----------------------------------------------------------------------------------------------------------
496 DIGITAL COMMUNICATIONS
    NETWORK
-----------------------------------------------------------------------------------------------------------
497 DIGITAL COMMUNICATIONS
    NETWORK DESIGN
-----------------------------------------------------------------------------------------------------------
498 Hardware Design and
    Procurement
-----------------------------------------------------------------------------------------------------------
499 Software Design &
    Development
-----------------------------------------------------------------------------------------------------------
500 DCN EQUIPMENT
    TRANSPORTATION
-----------------------------------------------------------------------------------------------------------
501 DCN #1 SAN 1 - USA
-----------------------------------------------------------------------------------------------------------
502 DCN #2 SAN 2 - INDIA
----------------------------------------------------------------------------------------------------------
503 DCN #3 SAN 3 -
    AUSTRALIA
----------------------------------------------------------------------------------------------------------
504 DCN #4 SAN 4 -
    SOUTH AFRICA
----------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
                                                                 1999
                             ------------------------------------------------------------------------------
ID  TASK NAME                J      F      M      A      M      J      J      A      S      O      N     D
-----------------------------------------------------------------------------------------------------------
<S> <C>                     <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
487 TNM #5 SAN 5 - CHILE
-----------------------------------------------------------------------------------------------------------
488 TNM #6 SAN 6 -
    GERMANY
-----------------------------------------------------------------------------------------------------------
489 TNM #7 SAN 7 -
    INDONESIA
-----------------------------------------------------------------------------------------------------------
490 TNM #8 SAN 8 - KOREA
-----------------------------------------------------------------------------------------------------------
491 TNM #9 SAN 9 - MEXICO
-----------------------------------------------------------------------------------------------------------
492 TNM #10 SAN 10 - UAE
-----------------------------------------------------------------------------------------------------------
493 TNM #11 SAN 11 -
    CHINA
-----------------------------------------------------------------------------------------------------------
494 TNM #12 SAN 12 -
    BRAZIL
-----------------------------------------------------------------------------------------------------------
495
-----------------------------------------------------------------------------------------------------------
496 DIGITAL COMMUNICATIONS
    NETWORK
-----------------------------------------------------------------------------------------------------------
497 DIGITAL COMMUNICATIONS
    NETWORK DESIGN
-----------------------------------------------------------------------------------------------------------
498 Hardware Design and
    Procurement
-----------------------------------------------------------------------------------------------------------
499 Software Design &
    Development
-----------------------------------------------------------------------------------------------------------
500 DCN EQUIPMENT
    TRANSPORTATION
-----------------------------------------------------------------------------------------------------------
501 DCN #1 SAN 1 - USA
-----------------------------------------------------------------------------------------------------------
502 DCN #2 SAN 2 - INDIA
----------------------------------------------------------------------------------------------------------
503 DCN #3 SAN 3 -
    AUSTRALIA
----------------------------------------------------------------------------------------------------------
504 DCN #4 SAN 4 -
    SOUTH AFRICA
----------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
                                                                 2000
                             ------------------------------------------------------------------------------
ID  TASK NAME                J      F      M      A      M      J      J      A      S      O      N     D
-----------------------------------------------------------------------------------------------------------
<S> <C>                     <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
487 TNM #5 SAN 5 - CHILE
-----------------------------------------------------------------------------------------------------------
488 TNM #6 SAN 6 -
    GERMANY
-----------------------------------------------------------------------------------------------------------
489 TNM #7 SAN 7 -
    INDONESIA
-----------------------------------------------------------------------------------------------------------
490 TNM #8 SAN 8 - KOREA
-----------------------------------------------------------------------------------------------------------
491 TNM #9 SAN 9 - MEXICO
-----------------------------------------------------------------------------------------------------------
492 TNM #10 SAN 10 - UAE
-----------------------------------------------------------------------------------------------------------
493 TNM #11 SAN 11 -
    CHINA
-----------------------------------------------------------------------------------------------------------
494 TNM #12 SAN 12 -
    BRAZIL
-----------------------------------------------------------------------------------------------------------
495
-----------------------------------------------------------------------------------------------------------
496 DIGITAL COMMUNICATIONS
    NETWORK
-----------------------------------------------------------------------------------------------------------
497 DIGITAL COMMUNICATIONS
    NETWORK DESIGN
-----------------------------------------------------------------------------------------------------------
498 Hardware Design and
    Procurement
-----------------------------------------------------------------------------------------------------------
499 Software Design &
    Development
-----------------------------------------------------------------------------------------------------------
500 DCN EQUIPMENT
    TRANSPORTATION
-----------------------------------------------------------------------------------------------------------
501 DCN #1 SAN 1 - USA
-----------------------------------------------------------------------------------------------------------
502 DCN #2 SAN 2 - INDIA
----------------------------------------------------------------------------------------------------------
503 DCN #3 SAN 3 -
    AUSTRALIA
----------------------------------------------------------------------------------------------------------
504 DCN #4 SAN 4 -
    SOUTH AFRICA
----------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------
</TABLE>

PROJECT: 18 NOV ICO MLS VER 39.MPP
DATE: 11/18/97

DOC: 770019 VERSION 3.9       PAGE 28         REVISED ON THE 12TH NOVEMBER, 1997

<PAGE>   1066

                   IGF PROJECT MASTER LEVEL SCHEDULE REV 3.9

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                                              1997
                                                            ------------------------------------------------------------------------
ID  TASK NAME                DUR     START      FINISH       F      M      A      M      J      J      A      S      O      N     D
------------------------------------------------------------------------------------------------------------------------------------
<S> <C>                    <C>     <C>        <C>         <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
505 DCN #5 SAN 5 - CHILE    36d   11/30/98     1/15/99
------------------------------------------------------------------------------------------------------------------------------------
506 DCN #6 SAN 6 -          36d   11/30/99     1/15/99
    GERMANY
------------------------------------------------------------------------------------------------------------------------------------
507 DCN #7 SAN 7 -          36d     1/1/99     2/16/99
    INDONESIA
------------------------------------------------------------------------------------------------------------------------------------
508 DCN #8 SAN 8 - KOREA    36d     1/6/99     2/19/99
------------------------------------------------------------------------------------------------------------------------------------
509 DCN #9 SAN 9 - MEXICO   36d     1/6/99     2/19/99
------------------------------------------------------------------------------------------------------------------------------------
510 DCN #10 SAN 10 - UAE    36d     2/5/99     3/23/99
------------------------------------------------------------------------------------------------------------------------------------
511 DCN #11 SAN 11 -        36d     2/9/99     3/25/99
    CHINA
------------------------------------------------------------------------------------------------------------------------------------
512 DCN #12 SAN 12 -        36d     2/9/99     3/25/99
    BRAZIL
------------------------------------------------------------------------------------------------------------------------------------
513
------------------------------------------------------------------------------------------------------------------------------------
514 SAN OSS/NMC/SRMS -     828d     4/1/97     4/30/00
    NEC/J
------------------------------------------------------------------------------------------------------------------------------------
515 SAN OSS SOFTWARE       373d    2/19/98      7/1/99
------------------------------------------------------------------------------------------------------------------------------------
516 Lower Layer Interface   98d    2/19/98     6/30/98
    Development
------------------------------------------------------------------------------------------------------------------------------------
517 Software Release         0d     7/1/98      7/1/98
     Alpha
------------------------------------------------------------------------------------------------------------------------------------
518 Software Release 1.0     0d     9/1/98      9/1/98
------------------------------------------------------------------------------------------------------------------------------------
519 Software Release 1.2     0d     4/1/99      4/1/99
------------------------------------------------------------------------------------------------------------------------------------
520 Software Release 2.0     0d     7/1/99      7/1/99
------------------------------------------------------------------------------------------------------------------------------------
521
------------------------------------------------------------------------------------------------------------------------------------
522 PRE-INTEGRATION        44d      8/5/98     9/30/98
    TESTING AT NEC A
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------
                                                                   1998
                               ------------------------------------------------------------------------------
ID  TASK NAME                  J      F      M      A      M      J      J      A      S      O      N     D
-------------------------------------------------------------------------------------------------------------
<S> <C>                       <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
505 DCN #5 SAN 5 - CHILE
-------------------------------------------------------------------------------------------------------------
506 DCN #6 SAN 6 -
    GERMANY
-------------------------------------------------------------------------------------------------------------
507 DCN #7 SAN 7 -
    INDONESIA
-------------------------------------------------------------------------------------------------------------
508 DCN #8 SAN 8 - KOREA
-------------------------------------------------------------------------------------------------------------
509 DCN #9 SAN 9 - MEXICO
-------------------------------------------------------------------------------------------------------------
510 DCN #10 SAN 10 - UAE
-------------------------------------------------------------------------------------------------------------
511 DCN #11 SAN 11 -
    CHINA
-------------------------------------------------------------------------------------------------------------
512 DCN #12 SAN 12 -
    BRAZIL
-------------------------------------------------------------------------------------------------------------
513
-------------------------------------------------------------------------------------------------------------
514 SAN OSS/NMC/SRMS -
    NEC/J
-------------------------------------------------------------------------------------------------------------
515 SAN OSS SOFTWARE
-------------------------------------------------------------------------------------------------------------
516 Lower Layer Interface
    Development
-------------------------------------------------------------------------------------------------------------
517 Software Release
    Alpha                                                                7/1
-------------------------------------------------------------------------------------------------------------
518 Software Release 1.0                                                               9/1
-------------------------------------------------------------------------------------------------------------
519 Software Release 1.2
-------------------------------------------------------------------------------------------------------------
520 Software Release 2.0
-------------------------------------------------------------------------------------------------------------
521
-------------------------------------------------------------------------------------------------------------
522 PRE-INTEGRATION
    TESTING AT NEC A
-------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------
                                                                   1999
                               ------------------------------------------------------------------------------
ID  TASK NAME                  J      F      M      A      M      J      J      A      S      O      N     D
-------------------------------------------------------------------------------------------------------------
<S> <C>                       <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
505 DCN #5 SAN 5 - CHILE
-------------------------------------------------------------------------------------------------------------
506 DCN #6 SAN 6 -
    GERMANY
-------------------------------------------------------------------------------------------------------------
507 DCN #7 SAN 7 -
    INDONESIA
-------------------------------------------------------------------------------------------------------------
508 DCN #8 SAN 8 - KOREA
-------------------------------------------------------------------------------------------------------------
509 DCN #9 SAN 9 - MEXICO
-------------------------------------------------------------------------------------------------------------
510 DCN #10 SAN 10 - UAE
-------------------------------------------------------------------------------------------------------------
511 DCN #11 SAN 11 -
    CHINA
-------------------------------------------------------------------------------------------------------------
512 DCN #12 SAN 12 -
    BRAZIL
-------------------------------------------------------------------------------------------------------------
513
-------------------------------------------------------------------------------------------------------------
514 SAN OSS/NMC/SRMS -
    NEC/J
-------------------------------------------------------------------------------------------------------------
515 SAN OSS SOFTWARE
-------------------------------------------------------------------------------------------------------------
516 Lower Layer Interface
    Development
-------------------------------------------------------------------------------------------------------------
517 Software Release
    Alpha
-------------------------------------------------------------------------------------------------------------
518 Software Release 1.0
-------------------------------------------------------------------------------------------------------------
519 Software Release 1.2
-------------------------------------------------------------------------------------------------------------
520 Software Release 2.0                            4/1
-------------------------------------------------------------------------------------------------------------
521                                                                      7/1
-------------------------------------------------------------------------------------------------------------
522 PRE-INTEGRATION
    TESTING AT NEC A
-------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------
                                                                   2000
                               ------------------------------------------------------------------------------
ID  TASK NAME                  J      F      M      A      M      J      J      A      S      O      N     D
-------------------------------------------------------------------------------------------------------------
<S> <C>                       <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
505 DCN #5 SAN 5 - CHILE
-------------------------------------------------------------------------------------------------------------
506 DCN #6 SAN 6 -
    GERMANY
-------------------------------------------------------------------------------------------------------------
507 DCN #7 SAN 7 -
    INDONESIA
-------------------------------------------------------------------------------------------------------------
508 DCN #8 SAN 8 - KOREA
-------------------------------------------------------------------------------------------------------------
509 DCN #9 SAN 9 - MEXICO
-------------------------------------------------------------------------------------------------------------
510 DCN #10 SAN 10 - UAE
-------------------------------------------------------------------------------------------------------------
511 DCN #11 SAN 11 -
    CHINA
-------------------------------------------------------------------------------------------------------------
512 DCN #12 SAN 12 -
    BRAZIL
-------------------------------------------------------------------------------------------------------------
513
-------------------------------------------------------------------------------------------------------------
514 SAN OSS/NMC/SRMS -
    NEC/J
-------------------------------------------------------------------------------------------------------------
515 SAN OSS SOFTWARE
-------------------------------------------------------------------------------------------------------------
516 Lower Layer Interface
    Development
-------------------------------------------------------------------------------------------------------------
517 Software Release
    Alpha
-------------------------------------------------------------------------------------------------------------
518 Software Release 1.0
-------------------------------------------------------------------------------------------------------------
519 Software Release 1.2
-------------------------------------------------------------------------------------------------------------
520 Software Release 2.0
-------------------------------------------------------------------------------------------------------------
521
-------------------------------------------------------------------------------------------------------------
522 PRE-INTEGRATION
    TESTING AT NEC A
-------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------
</TABLE>

PROJECT: 18 NOV ICO MLS VER 39.MPP
DATE: 11/18/97

DOC: 770019 VERSION 3.9       PAGE 29         REVISED ON THE 12TH NOVEMBER, 1997
<PAGE>   1067

                   IGF PROJECT MASTER LEVEL SCHEDULE REV 3.9

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                                              1997
                                                            ------------------------------------------------------------------------
ID  TASK NAME                DUR     START      FINISH       F      M      A      M      J      J      A      S      O      N     D
------------------------------------------------------------------------------------------------------------------------------------
<S> <C>                    <C>     <C>        <C>         <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>     <C>
523 Stage 3 Testing with    44d     8/5/98     9/30/98
    NECA and HNS
------------------------------------------------------------------------------------------------------------------------------------
524
------------------------------------------------------------------------------------------------------------------------------------
525 TRANSPORTATION OF      206d    8/28/98     5/31/99
    SAN OSS EQUIPMENT
------------------------------------------------------------------------------------------------------------------------------------
526 SAN OSS FAT              0d    9/21/98     9/21/98
    (SW R.1.0)
------------------------------------------------------------------------------------------------------------------------------------
527 SAN OSS #1 & #2         36d   10/22/98     12/8/98
------------------------------------------------------------------------------------------------------------------------------------
528 SAN OSS #3              36d    8/28/98    10/14/98
------------------------------------------------------------------------------------------------------------------------------------
529 SAN OSS #4, 5 & 6       36d   11/30/98     1/15/99
------------------------------------------------------------------------------------------------------------------------------------
530 SAN OSS #7 & 8          36d    1/14/99     2/26/99
------------------------------------------------------------------------------------------------------------------------------------
531 SAN OSS #9 & 10         36d    2/26/99     4/15/99
------------------------------------------------------------------------------------------------------------------------------------
532 SAN OSS #11 & 12        36d    4/12/99     5/31/99
------------------------------------------------------------------------------------------------------------------------------------
533
------------------------------------------------------------------------------------------------------------------------------------
534 NMC (LINK-OS)          720d     4/1/97     12/1/99
------------------------------------------------------------------------------------------------------------------------------------
535 OPERATIONAL            220d     4/1/97     1/30/98
    SCENARIO
------------------------------------------------------------------------------------------------------------------------------------
536 Review with ICO         87d     4/1/97     7/30/97
------------------------------------------------------------------------------------------------------------------------------------
537 Work Report              0d     8/4/97      8/4/97                                                 8/4
    Submission to PO
------------------------------------------------------------------------------------------------------------------------------------
538 Assigned WG Responses    0d    9/15/97     9/15/97
    to PO (Class A)                                                                                         9/15
------------------------------------------------------------------------------------------------------------------------------------
539 Assigned WG Responses    0d   11/17/97    11/17/97
    to PO (Class B)                                                                                                       11/17
------------------------------------------------------------------------------------------------------------------------------------
540 Contribution to HLSD     0d    1/30/98     1/30/98
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------
                                                                   1998
                               ------------------------------------------------------------------------------
ID  TASK NAME                  J      F      M      A      M      J      J      A      S      O      N     D
-------------------------------------------------------------------------------------------------------------
<S> <C>                       <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
523 Stage 3 Testing with
    NECA and HNS
-------------------------------------------------------------------------------------------------------------
524
-------------------------------------------------------------------------------------------------------------
525 TRANSPORTATION OF
    SAN OSS EQUIPMENT
-------------------------------------------------------------------------------------------------------------
526 SAN OSS FAT
    (SW R.1.0)
-------------------------------------------------------------------------------------------------------------
527 SAN OSS #1 & #2                                                                    9/21
-------------------------------------------------------------------------------------------------------------
528 SAN OSS #3
-------------------------------------------------------------------------------------------------------------
529 SAN OSS #4, 5 & 6
-------------------------------------------------------------------------------------------------------------
530 SAN OSS #7 & 8
-------------------------------------------------------------------------------------------------------------
531 SAN OSS #9 & 10
-------------------------------------------------------------------------------------------------------------
532 SAN OSS #11 & 12
-------------------------------------------------------------------------------------------------------------
533
-------------------------------------------------------------------------------------------------------------
534 NMC (LINK-OS)
-------------------------------------------------------------------------------------------------------------
535 OPERATIONAL
    SCENARIO
-------------------------------------------------------------------------------------------------------------
536 Review with ICO
-------------------------------------------------------------------------------------------------------------
537 Work Report
    Submission to PO
-------------------------------------------------------------------------------------------------------------
538 Assigned WG Responses
    to PO (Class A)
-------------------------------------------------------------------------------------------------------------
539 Assigned WG Responses
    to PO (Class B)
-------------------------------------------------------------------------------------------------------------
540 Contribution to HLSD      1/30
-------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------
                                                                   1999
                               ------------------------------------------------------------------------------
ID  TASK NAME                  J      F      M      A      M      J      J      A      S      O      N     D
-------------------------------------------------------------------------------------------------------------
<S> <C>                       <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
523 Stage 3 Testing with
    NECA and HNS
-------------------------------------------------------------------------------------------------------------
524
-------------------------------------------------------------------------------------------------------------
525 TRANSPORTATION OF
    SAN OSS EQUIPMENT
-------------------------------------------------------------------------------------------------------------
526 SAN OSS FAT
    (SW R.1.0)
-------------------------------------------------------------------------------------------------------------
527 SAN OSS #1 & #2
-------------------------------------------------------------------------------------------------------------
528 SAN OSS #3
-------------------------------------------------------------------------------------------------------------
529 SAN OSS #4, 5 & 6
-------------------------------------------------------------------------------------------------------------
530 SAN OSS #7 & 8
-------------------------------------------------------------------------------------------------------------
531 SAN OSS #9 & 10
-------------------------------------------------------------------------------------------------------------
532 SAN OSS #11 & 12
-------------------------------------------------------------------------------------------------------------
533
-------------------------------------------------------------------------------------------------------------
534 NMC (LINK-OS)
-------------------------------------------------------------------------------------------------------------
535 OPERATIONAL
    SCENARIO
-------------------------------------------------------------------------------------------------------------
536 Review with ICO
-------------------------------------------------------------------------------------------------------------
537 Work Report
    Submission to PO
-------------------------------------------------------------------------------------------------------------
538 Assigned WG Responses
    to PO (Class A)
-------------------------------------------------------------------------------------------------------------
539 Assigned WG Responses
    to PO (Class B)
-------------------------------------------------------------------------------------------------------------
540 Contribution to HLSD
-------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------
                                                                   2000
                               ------------------------------------------------------------------------------
ID  TASK NAME                  J      F      M      A      M      J      J      A      S      O      N     D
-------------------------------------------------------------------------------------------------------------
<S> <C>                       <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
523 Stage 3 Testing with
    NECA and HNS
-------------------------------------------------------------------------------------------------------------
524
-------------------------------------------------------------------------------------------------------------
525 TRANSPORTATION OF
    SAN OSS EQUIPMENT
-------------------------------------------------------------------------------------------------------------
526 SAN OSS FAT
    (SW R.1.0)
-------------------------------------------------------------------------------------------------------------
527 SAN OSS #1 & #2
-------------------------------------------------------------------------------------------------------------
528 SAN OSS #3
-------------------------------------------------------------------------------------------------------------
529 SAN OSS #4, 5 & 6
-------------------------------------------------------------------------------------------------------------
530 SAN OSS #7 & 8
-------------------------------------------------------------------------------------------------------------
531 SAN OSS #9 & 10
-------------------------------------------------------------------------------------------------------------
532 SAN OSS #11 & 12
-------------------------------------------------------------------------------------------------------------
533
-------------------------------------------------------------------------------------------------------------
534 NMC (LINK-OS)
-------------------------------------------------------------------------------------------------------------
535 OPERATIONAL
    SCENARIO
-------------------------------------------------------------------------------------------------------------
536 Review with ICO
-------------------------------------------------------------------------------------------------------------
537 Work Report
    Submission to PO
-------------------------------------------------------------------------------------------------------------
538 Assigned WG Responses
    to PO (Class A)
-------------------------------------------------------------------------------------------------------------
539 Assigned WG Responses
    to PO (Class B)
-------------------------------------------------------------------------------------------------------------
540 Contribution to HLSD
-------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------
</TABLE>

PROJECT: 18 NOV ICO MLS VER 39.MPP
DATE: 11/18/97

DOC: 770019 VERSION 3.9       PAGE 30         REVISED ON THE 12TH NOVEMBER, 1997
<PAGE>   1068

                   IGF PROJECT MASTER LEVEL SCHEDULE REV 3.9

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                                              1997
                                                            ------------------------------------------------------------------------
ID  TASK NAME                DUR      START      FINISH      F      M      A      M      J      J      A      S      O      N     D
------------------------------------------------------------------------------------------------------------------------------------
<S> <C>                    <C>      <C>        <C>        <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
541  DESIGN DOCUMENTS       240d      5/6/97     3/30/98
------------------------------------------------------------------------------------------------------------------------------------
542  NMS SFA                142d      5/6/97    11/17/97
------------------------------------------------------------------------------------------------------------------------------------
543  NMS SDD                142d      5/6/97    11/17/97
------------------------------------------------------------------------------------------------------------------------------------
544  NMS HLD                156d      9/1/97     3/30/98
------------------------------------------------------------------------------------------------------------------------------------
545  NE OAM TO SAN
     NMS/LINK OS,
     COMMON ICD             142d      5/6/97    11/17/97
------------------------------------------------------------------------------------------------------------------------------------
546  ICDS                   142d      5/6/97    11/17/97
------------------------------------------------------------------------------------------------------------------------------------
547
------------------------------------------------------------------------------------------------------------------------------------
548  SOFTWARE RELEASE       177d      4/1/99     12/1/99
------------------------------------------------------------------------------------------------------------------------------------
549  SOFTWARE VERSION
     1.0                      0d      4/1/99      4/1/99
------------------------------------------------------------------------------------------------------------------------------------
550  SOFTWARE VERSION
     2.0                      0d      7/1/99      7/1/99
------------------------------------------------------------------------------------------------------------------------------------
551  SOFTWARE VERSION
     2.5                      0d     12/1/99     12/1/99
------------------------------------------------------------------------------------------------------------------------------------
552  TRANSPORTATION OF
     NMC (LINK-0S)
     EQUIPMENT              118d     5/24/99    10/31/99
------------------------------------------------------------------------------------------------------------------------------------
553  MASTER NMC              36d     5/24/99      7/9/99
------------------------------------------------------------------------------------------------------------------------------------
554  BACK UP NMC             36d     9/13/99    10/31/99
------------------------------------------------------------------------------------------------------------------------------------
555
------------------------------------------------------------------------------------------------------------------------------------
556  SRMC                   828d      4/1/97     4/30/00
------------------------------------------------------------------------------------------------------------------------------------
557  OPERATIONAL
     SCENARIO               166d      4/1/97    11/17/97
------------------------------------------------------------------------------------------------------------------------------------
558  REVIEW WITH ICO         87d      4/1/97     7/30/97
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
                                                                 1998
                             ------------------------------------------------------------------------------
ID  TASK NAME                J      F      M      A      M      J      J      A      S      O      N     D
-----------------------------------------------------------------------------------------------------------
<S> <C>                     <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
541  DESIGN DOCUMENTS
-----------------------------------------------------------------------------------------------------------
542  NMS SFA
-----------------------------------------------------------------------------------------------------------
543  NMS SDD
-----------------------------------------------------------------------------------------------------------
544  NMS HLD
-----------------------------------------------------------------------------------------------------------
545  NE OAM TO SAN
     NMS/LINK OS,
     COMMON ICD
-----------------------------------------------------------------------------------------------------------
546  ICDS
-----------------------------------------------------------------------------------------------------------
547
-----------------------------------------------------------------------------------------------------------
548  SOFTWARE RELEASE
-----------------------------------------------------------------------------------------------------------
549  SOFTWARE VERSION
     1.0
-----------------------------------------------------------------------------------------------------------
550  SOFTWARE VERSION
     2.0
-----------------------------------------------------------------------------------------------------------
551  SOFTWARE VERSION
     2.5
-----------------------------------------------------------------------------------------------------------
552  TRANSPORTATION OF
     NMC (LINK-0S)
     EQUIPMENT
-----------------------------------------------------------------------------------------------------------
553  MASTER NMC
-----------------------------------------------------------------------------------------------------------
554  BACK UP NMC
-----------------------------------------------------------------------------------------------------------
555
-----------------------------------------------------------------------------------------------------------
556  SRMC
-----------------------------------------------------------------------------------------------------------
557  OPERATIONAL
     SCENARIO
-----------------------------------------------------------------------------------------------------------
558  REVIEW WITH ICO
-----------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------
                                                                  1999
                             -------------------------------------------------------------------------------
ID  TASK NAME                J      F      M      A      M      J      J      A      S      O     N     D
------------------------------------------------------------------------------------------------------------
<S> <C>                     <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>   <C>
541  DESIGN DOCUMENTS
------------------------------------------------------------------------------------------------------------
542  NMS SFA
------------------------------------------------------------------------------------------------------------
543  NMS SDD
------------------------------------------------------------------------------------------------------------
544  NMS HLD
------------------------------------------------------------------------------------------------------------
545  NE OAM TO SAN
     NMS/LINK OS,
     COMMON ICD
------------------------------------------------------------------------------------------------------------
546  ICDS
------------------------------------------------------------------------------------------------------------
547
------------------------------------------------------------------------------------------------------------
548  SOFTWARE RELEASE
------------------------------------------------------------------------------------------------------------
549  SOFTWARE VERSION
     1.0                                           4/1
------------------------------------------------------------------------------------------------------------
550  SOFTWARE VERSION
     2.0                                                                 7/1
------------------------------------------------------------------------------------------------------------
551  SOFTWARE VERSION
     2.5                                                                                               12/1
------------------------------------------------------------------------------------------------------------
552  TRANSPORTATION OF
     NMC (LINK-0S)
     EQUIPMENT
------------------------------------------------------------------------------------------------------------
553  MASTER NMC
------------------------------------------------------------------------------------------------------------
554  BACK UP NMC
------------------------------------------------------------------------------------------------------------
555
------------------------------------------------------------------------------------------------------------
556  SRMC
------------------------------------------------------------------------------------------------------------
557  OPERATIONAL
     SCENARIO
------------------------------------------------------------------------------------------------------------
558  REVIEW WITH ICO
------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
                                                                 2000
                            -------------------------------------------------------------------------------
ID  TASK NAME               J      F      M      A      M      J      J      A      S      O     N     D
-----------------------------------------------------------------------------------------------------------
<S> <C>                    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>   <C>
541  DESIGN DOCUMENTS
-----------------------------------------------------------------------------------------------------------
542  NMS SFA
-----------------------------------------------------------------------------------------------------------
543  NMS SDD
-----------------------------------------------------------------------------------------------------------
544  NMS HLD
-----------------------------------------------------------------------------------------------------------
545  NE OAM TO SAN
     NMS/LINK OS,
     COMMON ICD
-----------------------------------------------------------------------------------------------------------
546  ICDS
-----------------------------------------------------------------------------------------------------------
547
-----------------------------------------------------------------------------------------------------------
548  SOFTWARE RELEASE
-----------------------------------------------------------------------------------------------------------
549  SOFTWARE VERSION
     1.0
-----------------------------------------------------------------------------------------------------------
550  SOFTWARE VERSION
     2.0
-----------------------------------------------------------------------------------------------------------
551  SOFTWARE VERSION
     2.5
-----------------------------------------------------------------------------------------------------------
552  TRANSPORTATION OF
     NMC (LINK-0S)
     EQUIPMENT
-----------------------------------------------------------------------------------------------------------
553  MASTER NMC
-----------------------------------------------------------------------------------------------------------
554  BACK UP NMC
-----------------------------------------------------------------------------------------------------------
555
-----------------------------------------------------------------------------------------------------------
556  SRMC
-----------------------------------------------------------------------------------------------------------
557  OPERATIONAL
     SCENARIO
-----------------------------------------------------------------------------------------------------------
558  REVIEW WITH ICO
----------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------
</TABLE>
PROJECT: 18 NOV ICO MLS VER 39.MPP
DATE: 11/18/97

DOC: 770019 VERSION 3.9       PAGE 31         REVISED ON THE 12TH NOVEMBER, 1997
<PAGE>   1069

                   IGF PROJECT MASTER LEVEL SCHEDULE REV 3.9

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                                              1997
                                                            ------------------------------------------------------------------------
ID  TASK NAME                DUR      START      FINISH      F      M      A      M      J      J      A      S      O      N     D
------------------------------------------------------------------------------------------------------------------------------------
<S> <C>                    <C>      <C>        <C>        <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
559  WORK REPORT
     SUBMISSION TO PO          0d      8/4/97      8/4/97                                              8/4
------------------------------------------------------------------------------------------------------------------------------------
560  OPERATION
     SCENARIO DOCUMENT        0d     9/15/97     9/15/97                                                     9/15
------------------------------------------------------------------------------------------------------------------------------------
561  OPERATION
     SCENARIO DOCUMENT        0d    11/17/97    11/17/97                                                                  11/17
------------------------------------------------------------------------------------------------------------------------------------
562  DESIGN DOCUMENTS       240d      5/6/97     3/30/98
------------------------------------------------------------------------------------------------------------------------------------
563  SRMS SFA               142d      5/6/97    11/17/97
------------------------------------------------------------------------------------------------------------------------------------
564  SRMS SDD               142d      5/6/97    11/17/97
------------------------------------------------------------------------------------------------------------------------------------
565  SRMS HLD               156d      9/1/97     3/30/98
------------------------------------------------------------------------------------------------------------------------------------
566  OPERATOR TO SRMC
     ICD                    142d      5/6/97    11/17/97
------------------------------------------------------------------------------------------------------------------------------------
567  ICDS                   142d      5/6/97    11/17/97
------------------------------------------------------------------------------------------------------------------------------------
568  SOFTWARE RELEASE       177d      4/1/99     12/1/99
------------------------------------------------------------------------------------------------------------------------------------
569  SOFTWARE VERSION
     1.0                      0d      4/1/99      4/1/99
------------------------------------------------------------------------------------------------------------------------------------
570  SOFTWARE VERSION
     2.0                      0d      7/1/99      7/1/99
------------------------------------------------------------------------------------------------------------------------------------
571  SOFTWARE VERSION
     2.5                      0d     12/1/99     12/1/99
------------------------------------------------------------------------------------------------------------------------------------
572  VERSION 2 S/W
     RELEASE FOR NMS/
     SRMC (TOP LEVEL
     MILESTONE)               0d     4/30/00     4/30/00
------------------------------------------------------------------------------------------------------------------------------------
573
------------------------------------------------------------------------------------------------------------------------------------
574  TRANSPORTATION
     OF SRMC EQUIPMENT      118d     5/24/99    10/31/99
------------------------------------------------------------------------------------------------------------------------------------
575  MASTER NMC              36d     5/24/99      7/9/99
------------------------------------------------------------------------------------------------------------------------------------
576  BACK UP NMC             36d     9/13/99    10/31/99
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
                                                                 1998
                             ------------------------------------------------------------------------------
ID  TASK NAME                J      F      M      A      M      J      J      A      S      O      N     D
-----------------------------------------------------------------------------------------------------------
<S> <C>                     <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
559  WORK REPORT
     SUBMISSION TO PO
-----------------------------------------------------------------------------------------------------------
560  OPERATION
     SCENARIO DOCUMENT
-----------------------------------------------------------------------------------------------------------
561  OPERATION
     SCENARIO DOCUMENT
-----------------------------------------------------------------------------------------------------------
562  DESIGN DOCUMENTS
-----------------------------------------------------------------------------------------------------------
563  SRMS SFA
-----------------------------------------------------------------------------------------------------------
564  SRMS SDD
-----------------------------------------------------------------------------------------------------------
565  SRMS HLD
-----------------------------------------------------------------------------------------------------------
566  OPERATOR TO SRMC
     ICD
-----------------------------------------------------------------------------------------------------------
567  ICDS
-----------------------------------------------------------------------------------------------------------
568  SOFTWARE RELEASE
-----------------------------------------------------------------------------------------------------------
569  SOFTWARE VERSION
     1.0
-----------------------------------------------------------------------------------------------------------
570  SOFTWARE VERSION
     2.0
-----------------------------------------------------------------------------------------------------------
571  SOFTWARE VERSION
     2.5
-----------------------------------------------------------------------------------------------------------
572  VERSION 2 S/W
     RELEASE FOR NMS/
     SRMC (TOP LEVEL
     MILESTONE)
-----------------------------------------------------------------------------------------------------------
573
-----------------------------------------------------------------------------------------------------------
574  TRANSPORTATION
     OF SRMC EQUIPMENT
-----------------------------------------------------------------------------------------------------------
575  MASTER NMC
-----------------------------------------------------------------------------------------------------------
576  BACK UP NMC
-----------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------
                                                                  1999
                             -------------------------------------------------------------------------------
ID  TASK NAME                J      F      M      A      M      J      J      A      S      O     N     D
------------------------------------------------------------------------------------------------------------
<S> <C>                     <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>  <C>
559  WORK REPORT
     SUBMISSION TO PO
------------------------------------------------------------------------------------------------------------
560  OPERATION
     SCENARIO DOCUMENT
------------------------------------------------------------------------------------------------------------
561  OPERATION
     SCENARIO DOCUMENT
------------------------------------------------------------------------------------------------------------
562  DESIGN DOCUMENTS
-----------------------------------------------------------------------------------------------------------
563  SRMS SFA
------------------------------------------------------------------------------------------------------------
564  SRMS SDD
------------------------------------------------------------------------------------------------------------
565  SRMS HLD
------------------------------------------------------------------------------------------------------------
566  OPERATOR TO SRMC
     ICD
------------------------------------------------------------------------------------------------------------
567  ICDS
------------------------------------------------------------------------------------------------------------
568  SOFTWARE RELEASE
------------------------------------------------------------------------------------------------------------
569  SOFTWARE VERSION
     1.0                                          4/1
------------------------------------------------------------------------------------------------------------
570  SOFTWARE VERSION
     2.0                                                                 7/1
------------------------------------------------------------------------------------------------------------
571  SOFTWARE VERSION
     2.5                                                                                                12/1
------------------------------------------------------------------------------------------------------------
572  VERSION 2 S/W
     RELEASE FOR NMS/
     SRMC (TOP LEVEL
     MILESTONE)
------------------------------------------------------------------------------------------------------------
573
------------------------------------------------------------------------------------------------------------
574  TRANSPORTATION
     OF SRMC EQUIPMENT
------------------------------------------------------------------------------------------------------------
575  MASTER NMC
------------------------------------------------------------------------------------------------------------
576  BACK UP NMC
------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
                                                                 2000
                            -------------------------------------------------------------------------------
ID  TASK NAME               J      F      M      A      M      J      J      A      S      O     N     D
-----------------------------------------------------------------------------------------------------------
<S> <C>                    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>   <C>
559  WORK REPORT
     SUBMISSION TO PO
-----------------------------------------------------------------------------------------------------------
560  OPERATION
     SCENARIO DOCUMENT
-----------------------------------------------------------------------------------------------------------
561  OPERATION
     SCENARIO DOCUMENT
-----------------------------------------------------------------------------------------------------------
562  DESIGN DOCUMENTS
-----------------------------------------------------------------------------------------------------------
563  SRMS SFA
-----------------------------------------------------------------------------------------------------------
564  SRMS SDD
-----------------------------------------------------------------------------------------------------------
565  SRMS HLD
-----------------------------------------------------------------------------------------------------------
566  OPERATOR TO SRMC
     ICD
-----------------------------------------------------------------------------------------------------------
567  ICDS
-----------------------------------------------------------------------------------------------------------
568  SOFTWARE RELEASE
-----------------------------------------------------------------------------------------------------------
569  SOFTWARE VERSION
     1.0
-----------------------------------------------------------------------------------------------------------
570  SOFTWARE VERSION
     2.0
-----------------------------------------------------------------------------------------------------------
571  SOFTWARE VERSION
     2.5
-----------------------------------------------------------------------------------------------------------
572  VERSION 2 S/W
     RELEASE FOR NMS/
     SRMC (TOP LEVEL
     MILESTONE)                                  *4/30
-----------------------------------------------------------------------------------------------------------
573
-----------------------------------------------------------------------------------------------------------
574  TRANSPORTATION
     OF SRMC EQUIPMENT
-----------------------------------------------------------------------------------------------------------
575  MASTER NMC
-----------------------------------------------------------------------------------------------------------
576  BACK UP NMC
----------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------
</TABLE>
PROJECT: 18 NOV ICO MLS VER 39.MPP
DATE: 11/18/97

DOC: 770019 VERSION 3.9       PAGE 32         REVISED ON THE 12TH NOVEMBER, 1997
<PAGE>   1070
                   IGF PROJECT MASTER LEVEL SCHEDULE REV 3.9

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                                              1997
                                                            ------------------------------------------------------------------------
ID   TASK NAME               DUR      START      FINISH      F      M      A      M      J      J      A      S      O      N     D
------------------------------------------------------------------------------------------------------------------------------------
<S>  <C>                    <C>     <C>        <C>         <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
577
------------------------------------------------------------------------------------------------------------------------------------
578  PRE-INTEGRATION
      ACTIVITIES            475d    11/24/97     8/19/99
------------------------------------------------------------------------------------------------------------------------------------
579  TEST FACILITY          475d    11/24/97     8/19/99
------------------------------------------------------------------------------------------------------------------------------------
580  HARDWARE DELIVERIES    365d    11/24/97     3/22/99
------------------------------------------------------------------------------------------------------------------------------------
581  HPN HARDWARE             0d      1/5/98      1/5/98
------------------------------------------------------------------------------------------------------------------------------------
582  Deliver HPN Hardware
      at NEC/A Mulgrave       0d      1/5/98      1/5/98
------------------------------------------------------------------------------------------------------------------------------------
583  MSSC HARDWARE (ETL)      0d     1/28/98     1/28/98
------------------------------------------------------------------------------------------------------------------------------------
584  Deliver MSSC Hardware
      to NEC/A Mulgrave       0d     1/28/98     1/28/98
------------------------------------------------------------------------------------------------------------------------------------
585  Deliver MSSC Hardware
      to HNS                  0d     1/28/98     1/28/98
------------------------------------------------------------------------------------------------------------------------------------
586  DCN HARDWARE             0d    11/24/97    11/24/97                                                                   11/24
------------------------------------------------------------------------------------------------------------------------------------
587  SBS HARDWARE (HNS)     214d     6/15/98     3/22/99
------------------------------------------------------------------------------------------------------------------------------------
588  Deliver SBS Hardware
      to NEC/A Mulgrave       0d     6/15/98     6/15/98
------------------------------------------------------------------------------------------------------------------------------------
589  Support Testing in
      Melbourne             137d     9/22/98     3/22/99
------------------------------------------------------------------------------------------------------------------------------------
590  UT SIMULATOR (1 FOR
      EACH SAN E.G. 12
      SETS) (HUGHES)          0d      9/1/98      9/1/98
------------------------------------------------------------------------------------------------------------------------------------
591  2 X (1-HNS,
      1 - NECA)               0d      9/1/98      9/1/98
------------------------------------------------------------------------------------------------------------------------------------
592  SATELLITE CHANNEL
      SIMULATORS
      (1 FOR EACH SAN
      E.G. 12 SETS)           0d      9/1/98      9/1/98
------------------------------------------------------------------------------------------------------------------------------------
593  2 X (1 - HNS,
      1 - NECA)               0d      9/1/98      9/1/98
------------------------------------------------------------------------------------------------------------------------------------
594  SAN OSS HARDWARE         0d      9/1/98      9/1/98
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
                                                                          1998
                                     ----------------------------------------------------------------------------------
ID     TASK NAME                       J      F      M      A      M      J      J      A      S      O      N      D
-----------------------------------------------------------------------------------------------------------------------
<S>  <C>                             <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>
577
-----------------------------------------------------------------------------------------------------------------------
578  PRE-INTEGRATION ACTIVITIES
-----------------------------------------------------------------------------------------------------------------------
579  TEST FACILITY
-----------------------------------------------------------------------------------------------------------------------
580  HARDWARE DELIVERIES
-----------------------------------------------------------------------------------------------------------------------
581  HPN HARDWARE
-----------------------------------------------------------------------------------------------------------------------
582  Deliver HPN Hardware
      at NEC/A Mulgrave               1/5
-----------------------------------------------------------------------------------------------------------------------
583  MSSC HARDWARE (ETL)
-----------------------------------------------------------------------------------------------------------------------
584  Deliver MSSC Hardware
      to NEC/A Mulgrave               1/28
-----------------------------------------------------------------------------------------------------------------------
585  Deliver MSSC Hardware
      to HNS                          1/28
-----------------------------------------------------------------------------------------------------------------------
586  DCN HARDWARE
-----------------------------------------------------------------------------------------------------------------------
587  SBS HARDWARE (HNS)
-----------------------------------------------------------------------------------------------------------------------
588  Deliver SBS Hardware
      to NEC/A Mulgrave                                                  6/15
-----------------------------------------------------------------------------------------------------------------------
589  Support Testing in
      Melbourne
-----------------------------------------------------------------------------------------------------------------------
590  UT SIMULATOR (1 FOR EACH
      SAN E.G. 12 SETS)
      (HUGHES)
-----------------------------------------------------------------------------------------------------------------------
591  2 X (1-HNS, 1 - NECA)                                                                    9/1
-----------------------------------------------------------------------------------------------------------------------
592  SATELLITE CHANNEL SIMULATORS
      (1 FOR EACH SAN
      E.G. 12 SETS)
-----------------------------------------------------------------------------------------------------------------------
593  2 X (1 - HNS, 1 - NECA)                                                                  9/1
-----------------------------------------------------------------------------------------------------------------------
594  SAN OSS HARDWARE
-----------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
                                                                          1999
                                     ----------------------------------------------------------------------------------
ID     TASK NAME                       J      F      M      A      M      J      J      A      S      O      N      D
-----------------------------------------------------------------------------------------------------------------------
<S>  <C>                             <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>
577
-----------------------------------------------------------------------------------------------------------------------
578  PRE-INTEGRATION ACTIVITIES
-----------------------------------------------------------------------------------------------------------------------
579  TEST FACILITY
-----------------------------------------------------------------------------------------------------------------------
580  HARDWARE DELIVERIES
-----------------------------------------------------------------------------------------------------------------------
581  HPN HARDWARE
-----------------------------------------------------------------------------------------------------------------------
582  Deliver HPN Hardware
      at NEC/A Mulgrave
-----------------------------------------------------------------------------------------------------------------------
583  MSSC HARDWARE (ETL)
-----------------------------------------------------------------------------------------------------------------------
584  Deliver MSSC Hardware
      to NEC/A Mulgrave
-----------------------------------------------------------------------------------------------------------------------
585  Deliver MSSC Hardware
      to HNS
-----------------------------------------------------------------------------------------------------------------------
586  DCN HARDWARE
-----------------------------------------------------------------------------------------------------------------------
587  SBS HARDWARE (HNS)
-----------------------------------------------------------------------------------------------------------------------
588  Deliver SBS Hardware
      to NEC/A Mulgrave
-----------------------------------------------------------------------------------------------------------------------
589  Support Testing in
      Melbourne
-----------------------------------------------------------------------------------------------------------------------
590  UT SIMULATOR (1 FOR EACH
      SAN E.G. 12 SETS)
      (HUGHES)
-----------------------------------------------------------------------------------------------------------------------
591  2 X (1-HNS, 1 - NECA)
-----------------------------------------------------------------------------------------------------------------------
592  SATELLITE CHANNEL SIMULATORS
      (1 FOR EACH SAN
      E.G. 12 SETS)
-----------------------------------------------------------------------------------------------------------------------
593  2 X (1 - HNS, 1 - NECA)
-----------------------------------------------------------------------------------------------------------------------
594  SAN OSS HARDWARE
-----------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
                                                                          2000
                                     ----------------------------------------------------------------------------------
ID     TASK NAME                       J      F      M      A      M      J      J      A      S      O      N      D
-----------------------------------------------------------------------------------------------------------------------
<S>  <C>                             <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>
577
-----------------------------------------------------------------------------------------------------------------------
578  PRE-INTEGRATION ACTIVITIES
-----------------------------------------------------------------------------------------------------------------------
579  TEST FACILITY
-----------------------------------------------------------------------------------------------------------------------
580  HARDWARE DELIVERIES
-----------------------------------------------------------------------------------------------------------------------
581  HPN HARDWARE
-----------------------------------------------------------------------------------------------------------------------
582  Deliver HPN Hardware
      at NEC/A Mulgrave
-----------------------------------------------------------------------------------------------------------------------
583  MSSC HARDWARE (ETL)
-----------------------------------------------------------------------------------------------------------------------
584  Deliver MSSC Hardware
      to NEC/A Mulgrave
-----------------------------------------------------------------------------------------------------------------------
585  Deliver MSSC Hardware
      to HNS
-----------------------------------------------------------------------------------------------------------------------
586  DCN HARDWARE
-----------------------------------------------------------------------------------------------------------------------
587  SBS HARDWARE (HNS)
-----------------------------------------------------------------------------------------------------------------------
588  Deliver SBS Hardware
      to NEC/A Mulgrave
-----------------------------------------------------------------------------------------------------------------------
589  Support Testing in
      Melbourne
-----------------------------------------------------------------------------------------------------------------------
590  UT SIMULATOR (1 FOR EACH
      SAN E.G. 12 SETS)
      (HUGHES)
-----------------------------------------------------------------------------------------------------------------------
591  2 X (1-HNS, 1 - NECA)
-----------------------------------------------------------------------------------------------------------------------
592  SATELLITE CHANNEL SIMULATORS
      (1 FOR EACH SAN
      E.G. 12 SETS)
-----------------------------------------------------------------------------------------------------------------------
593  2 X (1 - HNS, 1 - NECA)
-----------------------------------------------------------------------------------------------------------------------
594  SAN OSS HARDWARE
-----------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------
</TABLE>

PROJECT: 18 NOV ICO MLS VER 39.MPP
DATE: 11/18/97

DOC: 770019 VERSION 3.9       PAGE 33         REVISED ON THE 12TH NOVEMBER, 1997
<PAGE>   1071
                   IGF PROJECT MASTER LEVEL SCHEDULE REV 3.9

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                                              1997
                                                            ------------------------------------------------------------------------
ID   TASK NAME               DUR      START      FINISH      F      M      A      M      J      J      A      S      O      N     D
------------------------------------------------------------------------------------------------------------------------------------
<S>  <C>                    <C>     <C>        <C>         <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
595  Delivery of SAN OSS
      Hardware                0d      9/1/98      9/1/98
------------------------------------------------------------------------------------------------------------------------------------
596  SPECIAL TEST
      EQUIPMENT              41d     2/13/98      4/8/98
------------------------------------------------------------------------------------------------------------------------------------
597  Siemens K 1297           0d      4/8/98      4/8/98
------------------------------------------------------------------------------------------------------------------------------------
598  GSM Tester (TSS 2000)    0d     2/13/98     2/13/98
------------------------------------------------------------------------------------------------------------------------------------
599  TESTING                428d     1/28/98     8/19/99
------------------------------------------------------------------------------------------------------------------------------------
600  PRE-INTEGRATION
      TESTING               428d     1/28/98     8/19/99
------------------------------------------------------------------------------------------------------------------------------------
601  STAGE 1                260d     1/28/98      1/6/99
------------------------------------------------------------------------------------------------------------------------------------
602  NEC/A MULGRAVE         133d     7/14/98      1/6/99
------------------------------------------------------------------------------------------------------------------------------------
603  Pre Integration
      Test Start              0d     7/14/98     7/14/98
------------------------------------------------------------------------------------------------------------------------------------
604  Pre Integration
      Stage 1 TNM Testing    24w     7/15/98    12/18/98
------------------------------------------------------------------------------------------------------------------------------------
605  Pre Integration
      Stage 1 Mux/Vocoder
      Testing                 4w     7/15/98      8/7/98
------------------------------------------------------------------------------------------------------------------------------------
606  Pre Integration
      Stage 1 Testing
      Complete                0d      1/6/99      1/6/99
------------------------------------------------------------------------------------------------------------------------------------
607  HUGHES (USA)           225d     1/28/98    11/20/98
------------------------------------------------------------------------------------------------------------------------------------
608  Load & Test of MSSC
      by ETL at Hughes
      (USA)                  58d     1/28/98     4/14/98
------------------------------------------------------------------------------------------------------------------------------------
609  Install TNM Hardware
      at Hughes (USA)        11d     6/24/98      7/7/98
------------------------------------------------------------------------------------------------------------------------------------
610  Load & Test of SBS
      by HNS at Hughes
      (USA)                  98d     7/15/98    11/20/98
------------------------------------------------------------------------------------------------------------------------------------
611  Load & Test of
      Vocoder/MUX at
      Hughes (USA)           10d     9/17/98     9/29/98
------------------------------------------------------------------------------------------------------------------------------------
612  STAGE 2                 47d      5/3/99      7/5/99
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
                                                                          1998
                                     ----------------------------------------------------------------------------------
ID     TASK NAME                       J      F      M      A      M      J      J      A      S      O      N      D
-----------------------------------------------------------------------------------------------------------------------
<S>  <C>                             <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>
595  Delivery of SAN OSS Hardware                                                             9/1
-----------------------------------------------------------------------------------------------------------------------
596  SPECIAL TEST EQUIPMENT
-----------------------------------------------------------------------------------------------------------------------
597  Siemens K 1298                                        4/8
-----------------------------------------------------------------------------------------------------------------------
598  GSM Tester (TSS 2000)                   2/13
-----------------------------------------------------------------------------------------------------------------------
599  TESTING
-----------------------------------------------------------------------------------------------------------------------
600  PRE-INTEGRATION TESTING
-----------------------------------------------------------------------------------------------------------------------
601  STAGE 1
-----------------------------------------------------------------------------------------------------------------------
602  NEC/A MULGRAVE
-----------------------------------------------------------------------------------------------------------------------
603  Pre Integration Test
      Start                                                                     7/14
-----------------------------------------------------------------------------------------------------------------------
604  Pre Integration Stage 1
      TNM Testing
-----------------------------------------------------------------------------------------------------------------------
605  Pre Integration Stage 1
      Mux/Vocoder Testing
-----------------------------------------------------------------------------------------------------------------------
606  Pre Integration Stage 1
      Testing Complete
-----------------------------------------------------------------------------------------------------------------------
607  HUGHES (USA)
-----------------------------------------------------------------------------------------------------------------------
608  Load & Test of MSSC by
      ETL at Hughes (USA)
-----------------------------------------------------------------------------------------------------------------------
609  Install TNM Hardware
      at Hughes (USA)
-----------------------------------------------------------------------------------------------------------------------
610  Load & Test of SBS by
      HNS at Hughes (USA)
-----------------------------------------------------------------------------------------------------------------------
611  Load & Test of Vocoder/
      MUX at Hughes (USA)
-----------------------------------------------------------------------------------------------------------------------
612  STAGE 2
-----------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
                                                                          1999
                                     ----------------------------------------------------------------------------------
ID     TASK NAME                       J      F      M      A      M      J      J      A      S      O      N      D
-----------------------------------------------------------------------------------------------------------------------
<S>  <C>                             <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>
595  Delivery of SAN OSS Hardware
-----------------------------------------------------------------------------------------------------------------------
596  SPECIAL TEST EQUIPMENT
-----------------------------------------------------------------------------------------------------------------------
597  Siemens K 1297
-----------------------------------------------------------------------------------------------------------------------
598  GSM Tester (TSS 2000)
-----------------------------------------------------------------------------------------------------------------------
599  TESTING
-----------------------------------------------------------------------------------------------------------------------
600  PRE-INTEGRATION TESTING
-----------------------------------------------------------------------------------------------------------------------
601  STAGE 1
-----------------------------------------------------------------------------------------------------------------------
602  NEC/A MULGRAVE
-----------------------------------------------------------------------------------------------------------------------
603  Pre Integration Test
      Start
-----------------------------------------------------------------------------------------------------------------------
604  Pre Integration Stage 1
      TNM Testing
-----------------------------------------------------------------------------------------------------------------------
605  Pre Integration Stage 1
      Mux/Vocoder Testing
-----------------------------------------------------------------------------------------------------------------------
606  Pre Integration Stage 1          1/6
      Testing Complete
-----------------------------------------------------------------------------------------------------------------------
607  HUGHES (USA)
-----------------------------------------------------------------------------------------------------------------------
608  Load & Test of MSSC by
      ETL at Hughes (USA)
-----------------------------------------------------------------------------------------------------------------------
609  Install TNM Hardware
      at Hughes (USA)
-----------------------------------------------------------------------------------------------------------------------
610  Load & Test of SBS by
      HNS at Hughes (USA)
-----------------------------------------------------------------------------------------------------------------------
611  Load & Test of Vocoder/
      MUX at Hughes (USA)
-----------------------------------------------------------------------------------------------------------------------
612  STAGE 2
-----------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
                                                                          2000
                                     ----------------------------------------------------------------------------------
ID     TASK NAME                       J      F      M      A      M      J      J      A      S      O      N      D
-----------------------------------------------------------------------------------------------------------------------
<S>  <C>                             <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>
595  Delivery of SAN OSS Hardware
-----------------------------------------------------------------------------------------------------------------------
596  SPECIAL TEST EQUIPMENT
-----------------------------------------------------------------------------------------------------------------------
597  Siemens K 1297
-----------------------------------------------------------------------------------------------------------------------
598  GSM Tester (TSS 2000)
-----------------------------------------------------------------------------------------------------------------------
599  TESTING
-----------------------------------------------------------------------------------------------------------------------
600  PRE-INTEGRATION TESTING
-----------------------------------------------------------------------------------------------------------------------
601  STAGE 1
-----------------------------------------------------------------------------------------------------------------------
602  NEC/A MULGRAVE
-----------------------------------------------------------------------------------------------------------------------
603  Pre Integration Test
      Start
-----------------------------------------------------------------------------------------------------------------------
604  Pre Integration Stage 1
      TNM Testing
-----------------------------------------------------------------------------------------------------------------------
605  Pre Integration Stage 1
      Mux/Vocoder Testing
-----------------------------------------------------------------------------------------------------------------------
606  Pre Integration Stage 1
      Testing Complete
-----------------------------------------------------------------------------------------------------------------------
607  HUGHES (USA)
-----------------------------------------------------------------------------------------------------------------------
608  Load & Test of MSSC by
      ETL at Hughes (USA)
-----------------------------------------------------------------------------------------------------------------------
609  Install TNM Hardware
      at Hughes (USA)
-----------------------------------------------------------------------------------------------------------------------
610  Load & Test of SBS by
      HNS at Hughes (USA)
-----------------------------------------------------------------------------------------------------------------------
611  Load & Test of Vocoder/
      MUX at Hughes (USA)
-----------------------------------------------------------------------------------------------------------------------
612  STAGE 2
-----------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------
</TABLE>

PROJECT: 18 NOV ICO MLS VER 39.MPP
DATE: 11/18/97

DOC: 770019 VERSION 3.9       PAGE 34         REVISED ON THE 12TH NOVEMBER, 1997
<PAGE>   1072

                   IGF PROJECT MASTER LEVEL SCHEDULE REV 3.9

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                                              1997
                                                            ------------------------------------------------------------------------
ID  TASK NAME                DUR     START      FINISH       F      M      A      M      J      J      A      S      O      N     D
------------------------------------------------------------------------------------------------------------------------------------
<S> <C>                    <C>     <C>        <C>         <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
613 Pre-Integration         47d     5/3/99      7/5/99
    Stage 2 Test (@)
    NEC/A and HNS
------------------------------------------------------------------------------------------------------------------------------------
614 STAGE 3                 32d     7/8/99     8/19/99
------------------------------------------------------------------------------------------------------------------------------------
615 Pre-Integration         32d     7/8/99     8/19/99
    Stage 3 Test (@)
    NEC A, HNS & NE
------------------------------------------------------------------------------------------------------------------------------------
616
------------------------------------------------------------------------------------------------------------------------------------
617 ON SITE                677d    9/24/97     3/24/00
    INSTALLATION &
    TESTING
------------------------------------------------------------------------------------------------------------------------------------
618 SAN 1 -                617d    9/24/97    12/31/99
    BREWSTER, USA
------------------------------------------------------------------------------------------------------------------------------------
619 Earliest Date for        0d    9/24/97     9/24/97
    Equipment Delivery                                                                                      9/24
------------------------------------------------------------------------------------------------------------------------------------
620 San Site Ready For       0d    10/8/97     10/8/97
    Access                                                                                                         10/8
------------------------------------------------------------------------------------------------------------------------------------
621 INSTALLATION AND       607d    10/8/97    12/31/99
    PHASE 2-1
------------------------------------------------------------------------------------------------------------------------------------
622 RFT 1 & 2               78d    10/8/97     1/21/98
------------------------------------------------------------------------------------------------------------------------------------
623 RFT 3-5                120d    3/31/98      9/2/98
------------------------------------------------------------------------------------------------------------------------------------
624 MSSC                    66d    9/21/98    12/17/98
------------------------------------------------------------------------------------------------------------------------------------
625 HPN                     51d   11/23/98     1/28/99
------------------------------------------------------------------------------------------------------------------------------------
626 SBS                     47d   10/19/98    12/18/98
------------------------------------------------------------------------------------------------------------------------------------
627 TNM/DCN                 33d    12/9/98     1/22/99
------------------------------------------------------------------------------------------------------------------------------------
628 SAN OSS                 73d   10/22/98     1/27/99
------------------------------------------------------------------------------------------------------------------------------------
629 ILR Installation        32d   11/11/98    12/22/98
    (USA)
------------------------------------------------------------------------------------------------------------------------------------
630 ILR Integration         91d     3/1/99      7/2/99
    Phase 2-1 (R7)
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------
                                                                   1998
                               ------------------------------------------------------------------------------
ID  TASK NAME                  J      F      M      A      M      J      J      A      S      O      N     D
-------------------------------------------------------------------------------------------------------------
<S> <C>                       <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
613 Pre-Integration
    Stage 2 Test (@)
    NEC/A and HNS
-------------------------------------------------------------------------------------------------------------
614 STAGE 3
-------------------------------------------------------------------------------------------------------------
615 Pre-Integration
    Stage 3 Test (@)
    NEC A, HNS & NE
-------------------------------------------------------------------------------------------------------------
616
-------------------------------------------------------------------------------------------------------------
617 ON SITE
    INSTALLATION &
    TESTING
-------------------------------------------------------------------------------------------------------------
618 SAN 1 -
    BREWSTER, USA
-------------------------------------------------------------------------------------------------------------
619 Earliest Date for
    Equipment Delivery
-------------------------------------------------------------------------------------------------------------
620 San Site Ready For
    Access
-------------------------------------------------------------------------------------------------------------
621 INSTALLATION AND
    PHASE 2-1
-------------------------------------------------------------------------------------------------------------
622 RFT 1 & 2
-------------------------------------------------------------------------------------------------------------
623 RFT 3-5
-------------------------------------------------------------------------------------------------------------
624 MSSC
-------------------------------------------------------------------------------------------------------------
625 HPN
-------------------------------------------------------------------------------------------------------------
626 SBS
-------------------------------------------------------------------------------------------------------------
627 TNM/DCN
-------------------------------------------------------------------------------------------------------------
628 SAN OSS
-------------------------------------------------------------------------------------------------------------
629 ILR Installation
    (USA)
-------------------------------------------------------------------------------------------------------------
630 ILR Integration
    Phase 2-1 (R7)
-------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------
                                                                   1999
                               ------------------------------------------------------------------------------
ID  TASK NAME                  J      F      M      A      M      J      J      A      S      O      N     D
-------------------------------------------------------------------------------------------------------------
<S> <C>                       <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
613 Pre-Integration
    Stage 2 Test (@)
    NEC/A and HNS
-------------------------------------------------------------------------------------------------------------
614 STAGE 3
-------------------------------------------------------------------------------------------------------------
615 Pre-Integration
    Stage 3 Test (@)
    NEC A, HNS & NE
-------------------------------------------------------------------------------------------------------------
616
-------------------------------------------------------------------------------------------------------------
617 ON SITE
    INSTALLATION &
    TESTING
-------------------------------------------------------------------------------------------------------------
618 SAN 1 -
    BREWSTER, USA
-------------------------------------------------------------------------------------------------------------
619 Earliest Date for
    Equipment Delivery
-------------------------------------------------------------------------------------------------------------
620 San Site Ready For
    Access
-------------------------------------------------------------------------------------------------------------
621 INSTALLATION AND
    PHASE 2-1
-------------------------------------------------------------------------------------------------------------
622 RFT 1 & 2
-------------------------------------------------------------------------------------------------------------
623 RFT 3-5
-------------------------------------------------------------------------------------------------------------
624 MSSC
-------------------------------------------------------------------------------------------------------------
625 HPN
-------------------------------------------------------------------------------------------------------------
626 SBS
-------------------------------------------------------------------------------------------------------------
627 TNM/DCN
-------------------------------------------------------------------------------------------------------------
628 SAN OSS
-------------------------------------------------------------------------------------------------------------
629 ILR Installation
    (USA)
-------------------------------------------------------------------------------------------------------------
630 ILR Integration
    Phase 2-1 (R7)
-------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------
                                                                   2000
                               ------------------------------------------------------------------------------
ID  TASK NAME                  J      F      M      A      M      J      J      A      S      O      N     D
-------------------------------------------------------------------------------------------------------------
<S> <C>                       <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
613 Pre-Integration
    Stage 2 Test (@)
    NEC/A and HNS
-------------------------------------------------------------------------------------------------------------
614 STAGE 3
-------------------------------------------------------------------------------------------------------------
615 Pre-Integration
    Stage 3 Test (@)
    NEC A, HNS & NE
-------------------------------------------------------------------------------------------------------------
616
-------------------------------------------------------------------------------------------------------------
617 ON SITE
    INSTALLATION &
    TESTING
-------------------------------------------------------------------------------------------------------------
618 SAN 1 -
    BREWSTER, USA
-------------------------------------------------------------------------------------------------------------
619 Earliest Date for
    Equipment Delivery
-------------------------------------------------------------------------------------------------------------
620 San Site Ready For
    Access
-------------------------------------------------------------------------------------------------------------
621 INSTALLATION AND
    PHASE 2-1
-------------------------------------------------------------------------------------------------------------
622 RFT 1 & 2
-------------------------------------------------------------------------------------------------------------
623 RFT 3-5
-------------------------------------------------------------------------------------------------------------
624 MSSC
-------------------------------------------------------------------------------------------------------------
625 HPN
-------------------------------------------------------------------------------------------------------------
626 SBS
-------------------------------------------------------------------------------------------------------------
627 TNM/DCN
-------------------------------------------------------------------------------------------------------------
628 SAN OSS
-------------------------------------------------------------------------------------------------------------
629 ILR Installation
    (USA)
-------------------------------------------------------------------------------------------------------------
630 ILR Integration
    Phase 2-1 (R7)
-------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------
</TABLE>

PROJECT: 18 NOV ICO MLS VER 39.MPP
DATE: 11/18/97

DOC: 770019 VERSION 3.9       PAGE 35         REVISED ON THE 12TH NOVEMBER, 1997

<PAGE>   1073

                   IGF PROJECT MASTER LEVEL SCHEDULE REV 3.9

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                                              1997
                                                            ------------------------------------------------------------------------
ID  TASK NAME                DUR     START      FINISH       F      M      A      M      J      J      A      S      O      N     D
------------------------------------------------------------------------------------------------------------------------------------
<S> <C>                    <C>     <C>        <C>         <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
631 ILR Integration        134d     7/1/99    12/31/99
    Phase 2-1 (R8)
------------------------------------------------------------------------------------------------------------------------------------
632 TNM #1 INSTALLATION      0d    8/31/99     8/31/99
    AND PHASE 2-1
    TESTING (TOP LEVEL
    MILESTONE)
------------------------------------------------------------------------------------------------------------------------------------
633 PHASE 2-2              244d     2/3/99    12/31/99
------------------------------------------------------------------------------------------------------------------------------------
634 Phase 2-2 Intra         65d     2/3/99     4/29/99
    SAN Test, R1 SW
------------------------------------------------------------------------------------------------------------------------------------
635 Phase 2-2 Intra         67d    4/30/99     7/30/99
    SAN Test, R1.2 SW &
    Regression
------------------------------------------------------------------------------------------------------------------------------------
636 Phase 2-2 Intra         61d     8/2/99    10/22/99
    SAN Test, R2 SW &
    Regression
------------------------------------------------------------------------------------------------------------------------------------
637 Phase 2-2 Inter SAN     41d    10/6/99    11/30/99
------------------------------------------------------------------------------------------------------------------------------------
638 ILR Integration Test    90d     3/1/99      7/1/99
    (R7 CN-l)
------------------------------------------------------------------------------------------------------------------------------------
639 ILR Integration Test   132d     7/5/99    12/31/99
    (R8)
------------------------------------------------------------------------------------------------------------------------------------
640
------------------------------------------------------------------------------------------------------------------------------------
641 SAN 2-                 594d    9/24/97    11/30/99
    CHATANAPAR, INDIA
------------------------------------------------------------------------------------------------------------------------------------
642 Earliest Date for        0d    9/24/97     9/24/97
    Equipment Delivery                                                                                      9/24
------------------------------------------------------------------------------------------------------------------------------------
643 San Site Ready For       0d    10/8/97     10/8/97
    Access                                                                                                         10/8
------------------------------------------------------------------------------------------------------------------------------------
644 INSTALLATION AND       346d   10/27/97     1/28/98
    PHASE 2-1
------------------------------------------------------------------------------------------------------------------------------------
645 RFT 1 & 2               67d   10/27/97     1/23/98
------------------------------------------------------------------------------------------------------------------------------------
646 RFT 3-5                 81d     6/5/98     9/17/98
------------------------------------------------------------------------------------------------------------------------------------
647 MSSC                    66d    9/22/98    12/18/98
------------------------------------------------------------------------------------------------------------------------------------
648 HPN                     51d   11/23/98     1/28/99
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------
                                                                   1998
                               ------------------------------------------------------------------------------
ID  TASK NAME                  J      F      M      A      M      J      J      A      S      O      N     D
-------------------------------------------------------------------------------------------------------------
<S> <C>                       <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
631 ILR Integration
    Phase 2-1 (R8)
-------------------------------------------------------------------------------------------------------------
632 TNM #1 INSTALLATION
    AND PHASE 2-1
    TESTING (TOP LEVEL
    MILESTONE)
-------------------------------------------------------------------------------------------------------------
633 PHASE 2-2
-------------------------------------------------------------------------------------------------------------
634 Phase 2-2 Intra
    SAN Test, R1 SW
-------------------------------------------------------------------------------------------------------------
635 Phase 2-2 Intra
    SAN Test, R1.2 SW &
    Regression
-------------------------------------------------------------------------------------------------------------
636 Phase 2-2 Intra
    SAN Test, R2 SW &
    Regression
-------------------------------------------------------------------------------------------------------------
637 Phase 2-2 Inter SAN
-------------------------------------------------------------------------------------------------------------
638 ILR Integration Test
    (R7 CN-l)
-------------------------------------------------------------------------------------------------------------
639 ILR Integration Test
    (R8)
-------------------------------------------------------------------------------------------------------------
640
-------------------------------------------------------------------------------------------------------------
641 SAN 2 -
    CHATANAPAR, INDIA
-------------------------------------------------------------------------------------------------------------
642 Earliest Date for
    Equipment Delivery
-------------------------------------------------------------------------------------------------------------
643 San Site Ready For
    Access
-------------------------------------------------------------------------------------------------------------
644 INSTALLATION AND
    PHASE 2-1
-------------------------------------------------------------------------------------------------------------
645 RFT 1 & 2
-------------------------------------------------------------------------------------------------------------
646 RFT 3-5
-------------------------------------------------------------------------------------------------------------
647 MSSC
-------------------------------------------------------------------------------------------------------------
648 HPN
-------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------
                                                                   1999
                               ------------------------------------------------------------------------------
ID  TASK NAME                  J      F      M      A      M      J      J      A      S      O      N     D
-------------------------------------------------------------------------------------------------------------
<S> <C>                       <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
631 ILR Integration
    Phase 2-1 (R8)
-------------------------------------------------------------------------------------------------------------
632 TNM #1 INSTALLATION
    AND PHASE 2-1
    TESTING (TOP LEVEL
    MILESTONE)                                                                  *8/31
-------------------------------------------------------------------------------------------------------------
633 PHASE 2-2
-------------------------------------------------------------------------------------------------------------
634 Phase 2-2 Intra
    SAN Test, R1 SW
-------------------------------------------------------------------------------------------------------------
635 Phase 2-2 Intra
    SAN Test, R1.2 SW &
    Regression
-------------------------------------------------------------------------------------------------------------
636 Phase 2-2 Intra
    SAN Test, R2 SW &
    Regression
-------------------------------------------------------------------------------------------------------------
637 Phase 2-2 Inter SAN
-------------------------------------------------------------------------------------------------------------
638 ILR Integration Test
    (R7 CN-l)
-------------------------------------------------------------------------------------------------------------
639 ILR Integration Test
    (R8)
-------------------------------------------------------------------------------------------------------------
640
-------------------------------------------------------------------------------------------------------------
641 SAN 2 -
    CHATANAPAR, INDIA
-------------------------------------------------------------------------------------------------------------
642 Earliest Date for
    Equipment Delivery
-------------------------------------------------------------------------------------------------------------
643 San Site Ready For
    Access
-------------------------------------------------------------------------------------------------------------
644 INSTALLATION AND
    PHASE 2-1
-------------------------------------------------------------------------------------------------------------
645 RFT 1 & 2
-------------------------------------------------------------------------------------------------------------
646 RFT 3-5
-------------------------------------------------------------------------------------------------------------
647 MSSC
-------------------------------------------------------------------------------------------------------------
648 HPN
-------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------
                                                                   2000
                               ------------------------------------------------------------------------------
ID  TASK NAME                  J      F      M      A      M      J      J      A      S      O      N     D
-------------------------------------------------------------------------------------------------------------
<S> <C>                       <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
631 ILR Integration
    Phase 2-1 (R8)
-------------------------------------------------------------------------------------------------------------
632 TNM #1 INSTALLATION
    AND PHASE 2-1
    TESTING (TOP LEVEL
    MILESTONE)
-------------------------------------------------------------------------------------------------------------
633 PHASE 2-2
-------------------------------------------------------------------------------------------------------------
634 Phase 2-2 Intra
    SAN Test, R1 SW
-------------------------------------------------------------------------------------------------------------
635 Phase 2-2 Intra
    SAN Test, R1.2 SW &
    Regression
-------------------------------------------------------------------------------------------------------------
636 Phase 2-2 Intra
    SAN Test, R2 SW &
    Regression
-------------------------------------------------------------------------------------------------------------
637 Phase 2-2 Inter SAN
-------------------------------------------------------------------------------------------------------------
638 ILR Integration Test
    (R7 CN-l)
-------------------------------------------------------------------------------------------------------------
639 ILR Integration Test
    (R8)
-------------------------------------------------------------------------------------------------------------
640
-------------------------------------------------------------------------------------------------------------
641 SAN 2 -
    CHATANAPAR, INDIA
-------------------------------------------------------------------------------------------------------------
642 Earliest Date for
    Equipment Delivery
-------------------------------------------------------------------------------------------------------------
643 San Site Ready For
    Access
-------------------------------------------------------------------------------------------------------------
644 INSTALLATION AND
    PHASE 2-1
-------------------------------------------------------------------------------------------------------------
645 RFT 1 & 2
-------------------------------------------------------------------------------------------------------------
646 RFT 3-5
-------------------------------------------------------------------------------------------------------------
647 MSSC
-------------------------------------------------------------------------------------------------------------
648 HPN
-------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------
</TABLE>

PROJECT: 18 NOV ICO MLS VER 39.MPP
DATE: 11/18/97

DOC: 770019 VERSION 3.9       PAGE 36         REVISED ON THE 12TH NOVEMBER, 1997
<PAGE>   1074

                   IGF PROJECT MASTER LEVEL SCHEDULE REV 3.9

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                                              1997
                                                            ------------------------------------------------------------------------
ID   TASK NAME               DUR     START      FINISH       F      M      A      M      J      J      A      S      O      N     D
------------------------------------------------------------------------------------------------------------------------------------
<S>  <C>                   <C>     <C>        <C>         <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
649    SBS                   40d    11/27/98    1/20/99
------------------------------------------------------------------------------------------------------------------------------------
650    TNM/DCN               33d     12/9/98    1/22/99
------------------------------------------------------------------------------------------------------------------------------------
651    SAN OSS               42d     12/4/98    1/28/99
------------------------------------------------------------------------------------------------------------------------------------
652   PHASE 2-2             221d      2/3/99   11/30/99
------------------------------------------------------------------------------------------------------------------------------------
653    Phase 2-2 Intra       65d      2/3/99    4/29/99
       SAN Test, R1 SW
------------------------------------------------------------------------------------------------------------------------------------
654    Phase 2-2 Intra       67d     4/30/99    7/30/99
       SAN Test, R1.2 SW
       & Regression
------------------------------------------------------------------------------------------------------------------------------------
655    Phase 2-2 Intra       61d      8/2/99   10/22/99
       SAN Test, R2 SW &
       Regression
------------------------------------------------------------------------------------------------------------------------------------
656    Phase 2-2 Inter SAN   41d     10/6/99   11/30/99
------------------------------------------------------------------------------------------------------------------------------------
657
------------------------------------------------------------------------------------------------------------------------------------
658  SAN 3 - BRISBANE,      576d    10/20/97   11/30/99
     AUSTRALIA
------------------------------------------------------------------------------------------------------------------------------------
659   Earliest Date for       0d    10/20/97   10/20/97                                                            10/20
      Equipment Delivery
------------------------------------------------------------------------------------------------------------------------------------
660   San Site Ready For      0d     11/1/97    11/1/97                                                                   11/1
      Access
------------------------------------------------------------------------------------------------------------------------------------
661   INSTALLATION AND      330d    11/17/97    1/29/99
      PHASE 2-1
------------------------------------------------------------------------------------------------------------------------------------
662    RFT 1 & 2             69d    11/17/97    2/17/98
------------------------------------------------------------------------------------------------------------------------------------
663    RFT 3-5               67d     2/18/98    5/19/98
------------------------------------------------------------------------------------------------------------------------------------
664    MSSC                  66d     9/21/98   12/17/98
------------------------------------------------------------------------------------------------------------------------------------
665    HPN                   51d    11/23/98    1/28/99
------------------------------------------------------------------------------------------------------------------------------------
666    SBS                   37d    11/27/98    1/15/99
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
                                                                 1998
                             ------------------------------------------------------------------------------
ID  TASK NAME                J      F      M      A      M      J      J      A      S      O      N     D
-----------------------------------------------------------------------------------------------------------
<S> <C>                     <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
649    SBS
-----------------------------------------------------------------------------------------------------------
650    TNM/DCN
-----------------------------------------------------------------------------------------------------------
651    SAN OSS
-----------------------------------------------------------------------------------------------------------
652   PHASE 2-2
-----------------------------------------------------------------------------------------------------------
653    Phase 2-2 Intra
       SAN Test, R1 SW
-----------------------------------------------------------------------------------------------------------
654    Phase 2-2 Intra
       SAN Test, R1.2 SW
       & Regression
-----------------------------------------------------------------------------------------------------------
655    Phase 2-2 Intra
       SAN Test, R2 SW &
       Regression
-----------------------------------------------------------------------------------------------------------
656    Phase 2-2 Inter SAN
-----------------------------------------------------------------------------------------------------------
657
-----------------------------------------------------------------------------------------------------------
658  SAN 3 - BRISBANE,
     AUSTRALIA
-----------------------------------------------------------------------------------------------------------
659   Earliest Date for
      Equipment Delivery
-----------------------------------------------------------------------------------------------------------
660   San Site Ready For
      Access
-----------------------------------------------------------------------------------------------------------
661   INSTALLATION AND
      PHASE 2-1
-----------------------------------------------------------------------------------------------------------
662    RFT 1 & 2
-----------------------------------------------------------------------------------------------------------
663    RFT 3-5
-----------------------------------------------------------------------------------------------------------
664    MSSC
-----------------------------------------------------------------------------------------------------------
665    HPN
-----------------------------------------------------------------------------------------------------------
666    SBS
-----------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
                                                                 1999
                             ------------------------------------------------------------------------------
ID  TASK NAME                J      F      M      A      M      J      J      A      S      O      N     D
-----------------------------------------------------------------------------------------------------------
<S> <C>                     <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
649    SBS
-----------------------------------------------------------------------------------------------------------
650    TNM/DCN
-----------------------------------------------------------------------------------------------------------
651    SAN OSS
-----------------------------------------------------------------------------------------------------------
652   PHASE 2-2
-----------------------------------------------------------------------------------------------------------
653    Phase 2-2 Intra
       SAN Test, R1 SW
-----------------------------------------------------------------------------------------------------------
654    Phase 2-2 Intra
       SAN Test, R1.2 SW
       & Regression
-----------------------------------------------------------------------------------------------------------
655    Phase 2-2 Intra
       SAN Test, R2 SW &
       Regression
-----------------------------------------------------------------------------------------------------------
656    Phase 2-2 Inter SAN
-----------------------------------------------------------------------------------------------------------
657
-----------------------------------------------------------------------------------------------------------
658  SAN 3 - BRISBANE,
     AUSTRALIA
-----------------------------------------------------------------------------------------------------------
659   Earliest Date for
      Equipment Delivery
-----------------------------------------------------------------------------------------------------------
660   San Site Ready For
      Access
-----------------------------------------------------------------------------------------------------------
661   INSTALLATION AND
      PHASE 2-1
-----------------------------------------------------------------------------------------------------------
662    RFT 1 & 2
-----------------------------------------------------------------------------------------------------------
663    RFT 3-5
-----------------------------------------------------------------------------------------------------------
664    MSSC
-----------------------------------------------------------------------------------------------------------
665    HPN
-----------------------------------------------------------------------------------------------------------
666    SBS
-----------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
                                                                 2000
                             ------------------------------------------------------------------------------
ID  TASK NAME                J      F      M      A      M      J      J      A      S      O      N     D
-----------------------------------------------------------------------------------------------------------
<S> <C>                     <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
649    SBS
-----------------------------------------------------------------------------------------------------------
650    TNM/DCN
-----------------------------------------------------------------------------------------------------------
651    SAN OSS
-----------------------------------------------------------------------------------------------------------
652   PHASE 2-2
-----------------------------------------------------------------------------------------------------------
653    Phase 2-2 Intra
       SAN Test, R1 SW
-----------------------------------------------------------------------------------------------------------
654    Phase 2-2 Intra
       SAN Test, R1.2 SW
       & Regression
-----------------------------------------------------------------------------------------------------------
655    Phase 2-2 Intra
       SAN Test, R2 SW &
       Regression
-----------------------------------------------------------------------------------------------------------
656    Phase 2-2 Inter SAN
-----------------------------------------------------------------------------------------------------------
657
-----------------------------------------------------------------------------------------------------------
658  SAN 3 - BRISBANE,
     AUSTRALIA
-----------------------------------------------------------------------------------------------------------
659   Earliest Date for
      Equipment Delivery
-----------------------------------------------------------------------------------------------------------
660   San Site Ready For
      Access
-----------------------------------------------------------------------------------------------------------
661   INSTALLATION AND
      PHASE 2-1
-----------------------------------------------------------------------------------------------------------
662    RFT 1 & 2
-----------------------------------------------------------------------------------------------------------
663    RFT 3-5
-----------------------------------------------------------------------------------------------------------
664    MSSC
-----------------------------------------------------------------------------------------------------------
665    HPN
-----------------------------------------------------------------------------------------------------------
666    SBS
-----------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------
</TABLE>
PROJECT: 18 NOV ICO MLS VER 39.MPP
DATE: 11/18/97

DOC: 770019 VERSION 3.9       PAGE 37         REVISED ON THE 12TH NOVEMBER, 1997

<PAGE>   1075

                   IGF PROJECT MASTER LEVEL SCHEDULE REV 3.9

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                                              1997
                                                            ------------------------------------------------------------------------
ID   TASK NAME                DUR     START     FINISH      F      M      A      M      J      J      A      S      O      N     D
------------------------------------------------------------------------------------------------------------------------------------
<S>  <C>                     <C>     <C>       <C>        <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
667    TNM/DCN                80d    10/15/98   1/29/99
------------------------------------------------------------------------------------------------------------------------------------
668    SAN OSS                73d    10/22/98   1/27/99
------------------------------------------------------------------------------------------------------------------------------------
669   PHASE 2-2              221d      2/3/99  11/30/99
------------------------------------------------------------------------------------------------------------------------------------
670    Phase 2-2 Intra        65d      2/3/99   4/29/99
       SAN Test, R1 SW
------------------------------------------------------------------------------------------------------------------------------------
671    Phase 2-2 Intra        67d     4/30/99   7/30/99
       SAN Test, R1.2 SW
       & Regression
------------------------------------------------------------------------------------------------------------------------------------
672    Phase 2-2 Intra        61d      8/2/99  10/22/99
       SAN Test, R2 SW &
       Regression
------------------------------------------------------------------------------------------------------------------------------------
673    PHASE 2-2 Inter        41d     10/6/99  11/30/99
       SAN (SANs 1-3)
------------------------------------------------------------------------------------------------------------------------------------
674
------------------------------------------------------------------------------------------------------------------------------------
675  SAN 4 - HARTEBEESHOAKE, 576d    10/20/97  11/30/99
     SOUTH AFRICA
------------------------------------------------------------------------------------------------------------------------------------
676   Earliest Date for        0d    10/20/97  10/20/97                                                            10/20
      Equipment Delivery
------------------------------------------------------------------------------------------------------------------------------------
677   San Site Ready For       0d     11/1/97   11/1/97                                                                   11/1
      Access
------------------------------------------------------------------------------------------------------------------------------------
678   INSTALLATION AND       320d      1/6/98    3/2/99
      PHASE 2-1
------------------------------------------------------------------------------------------------------------------------------------
679    RFT 1 & 2              48d      1/6/98    3/9/98
------------------------------------------------------------------------------------------------------------------------------------
680    RFT 3-5                74d     3/10/98   6/16/98
------------------------------------------------------------------------------------------------------------------------------------
681    MSSC                   66d    10/29/98   1/25/99
------------------------------------------------------------------------------------------------------------------------------------
682    HPN                    51d    12/18/98   2/22/99
------------------------------------------------------------------------------------------------------------------------------------
683    SBS                    31d     1/21/99   2/26/99
------------------------------------------------------------------------------------------------------------------------------------
684    TNM/DCN                35d     1/15/99   2/26/99
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
                                                                 1998
                             ------------------------------------------------------------------------------
ID  TASK NAME                J      F      M      A      M      J      J      A      S      O      N     D
-----------------------------------------------------------------------------------------------------------
<S> <C>                     <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
667    TNM/DCN
-----------------------------------------------------------------------------------------------------------
668    SAN OSS
-----------------------------------------------------------------------------------------------------------
669   PHASE 2-2
-----------------------------------------------------------------------------------------------------------
670    Phase 2-2 Intra
       SAN Test, R1 SW
-----------------------------------------------------------------------------------------------------------
671    Phase 2-2 Intra
       SAN Test, R1.2 SW
       & Regression
-----------------------------------------------------------------------------------------------------------
672    Phase 2-2 Intra
       SAN Test, R2 SW &
       Regression
-----------------------------------------------------------------------------------------------------------
673    Phase 2-2 Inter
       SAN (SANs 1-3)
-----------------------------------------------------------------------------------------------------------
674
-----------------------------------------------------------------------------------------------------------
675  SAN 4 - HARTEBEESHOAKE,
     SOUTH AFRICA
-----------------------------------------------------------------------------------------------------------
676   Earliest Date for
      Equipment Delivery
-----------------------------------------------------------------------------------------------------------
677   San Site Ready For
      Access
-----------------------------------------------------------------------------------------------------------
678   INSTALLATION AND
      PHASE 2-1
-----------------------------------------------------------------------------------------------------------
679    RFT 1 & 2
-----------------------------------------------------------------------------------------------------------
680    RFT 3-5
-----------------------------------------------------------------------------------------------------------
681    MSSC
-----------------------------------------------------------------------------------------------------------
682    HPN
-----------------------------------------------------------------------------------------------------------
683    SBS
-----------------------------------------------------------------------------------------------------------
684    TNM/DCN
-----------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
                                                                 1999
                             ------------------------------------------------------------------------------
ID  TASK NAME                J      F      M      A      M      J      J      A      S      O      N     D
-----------------------------------------------------------------------------------------------------------
<S> <C>                     <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
667    TNM/DCN
-----------------------------------------------------------------------------------------------------------
668    SAN OSS
-----------------------------------------------------------------------------------------------------------
669   PHASE 2-2
-----------------------------------------------------------------------------------------------------------
670    Phase 2-2 Intra
       SAN Test, R1 SW
-----------------------------------------------------------------------------------------------------------
671    Phase 2-2 Intra
       SAN Test, R1.2 SW
       & Regression
-----------------------------------------------------------------------------------------------------------
672    Phase 2-2 Intra
       SAN Test, R2 SW &
       Regression
-----------------------------------------------------------------------------------------------------------
673    Phase 2-2 Inter
       SAN (SANs 1-3)
-----------------------------------------------------------------------------------------------------------
674
-----------------------------------------------------------------------------------------------------------
675  SAN 4 - HARTEBEESHOAKE,
     SOUTH AFRICA
-----------------------------------------------------------------------------------------------------------
676   Earliest Date for
      Equipment Delivery
-----------------------------------------------------------------------------------------------------------
677   San Site Ready For
      Access
-----------------------------------------------------------------------------------------------------------
678   INSTALLATION AND
      PHASE 2-1
-----------------------------------------------------------------------------------------------------------
679    RFT 1 & 2
-----------------------------------------------------------------------------------------------------------
680    RFT 3-5
-----------------------------------------------------------------------------------------------------------
681    MSSC
-----------------------------------------------------------------------------------------------------------
682    HPN
-----------------------------------------------------------------------------------------------------------
683    SBS
-----------------------------------------------------------------------------------------------------------
684    TNM/DCN
-----------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
                                                                 2000
                             ------------------------------------------------------------------------------
ID  TASK NAME                J      F      M      A      M      J      J      A      S      O      N     D
-----------------------------------------------------------------------------------------------------------
<S> <C>                     <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
667    TNM/DCN
-----------------------------------------------------------------------------------------------------------
668    SAN OSS
-----------------------------------------------------------------------------------------------------------
669   PHASE 2-2
-----------------------------------------------------------------------------------------------------------
670    Phase 2-2 Intra
       SAN Test, R1 SW
-----------------------------------------------------------------------------------------------------------
671    Phase 2-2 Intra
       SAN Test, R1.2 SW
       & Regression
-----------------------------------------------------------------------------------------------------------
672    Phase 2-2 Intra
       SAN Test, R2 SW &
       Regression
-----------------------------------------------------------------------------------------------------------
673    Phase 2-2 Inter
       SAN (SANs 1-3)
-----------------------------------------------------------------------------------------------------------
674
-----------------------------------------------------------------------------------------------------------
675  SAN 4 - HARTEBEESHOAKE,
     SOUTH AFRICA
-----------------------------------------------------------------------------------------------------------
676   Earliest Date for
      Equipment Delivery
-----------------------------------------------------------------------------------------------------------
677   San Site Ready For
      Access
-----------------------------------------------------------------------------------------------------------
678   INSTALLATION AND
      PHASE 2-1
-----------------------------------------------------------------------------------------------------------
679    RFT 1 & 2
-----------------------------------------------------------------------------------------------------------
680    RFT 3-5
-----------------------------------------------------------------------------------------------------------
681    MSSC
-----------------------------------------------------------------------------------------------------------
682    HPN
-----------------------------------------------------------------------------------------------------------
683    SBS
-----------------------------------------------------------------------------------------------------------
684    TNM/DCN
-----------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------
</TABLE>
PROJECT: 18 NOV ICO MLS VER 39.MPP
DATE: 11/18/97

DOC: 770019 VERSION 3.9       PAGE 38         REVISED ON THE 12TH NOVEMBER, 1997

<PAGE>   1076

                   IGF PROJECT MASTER LEVEL SCHEDULE REV 3.9

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                                              1997
                                                            ------------------------------------------------------------------------
ID  TASK NAME                DUR      START      FINISH      F      M      A      M      J      J      A      S      O      N     D
------------------------------------------------------------------------------------------------------------------------------------
<S> <C>                    <C>      <C>        <C>        <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
685  SAN OSS                 33d     1/22/99      3/2/99
------------------------------------------------------------------------------------------------------------------------------------
686  PHASE 2-2              200d      3/1/99    11/30/99
------------------------------------------------------------------------------------------------------------------------------------
687  Phase 2-2 Intra SAN
     Test, R1 SW             44d      3/1/99     4/29/99
------------------------------------------------------------------------------------------------------------------------------------
688  Phase 2-2 Intra SAN
     Test, R1.2 SW &
     Regression              67d     4/30/99     7/30/99
------------------------------------------------------------------------------------------------------------------------------------
689  Phase 2-2 Intra SAN
     Test, R2 SW &
     Regression              61d      8/2/99    10/22/99
------------------------------------------------------------------------------------------------------------------------------------
690  Phase 2-2 Inter SAN     41d     10/6/99    11/30/99
------------------------------------------------------------------------------------------------------------------------------------
691
------------------------------------------------------------------------------------------------------------------------------------
692  SAN 5 - LONGVILO,
     CHILE                  566d     11/1/97    11/30/99
------------------------------------------------------------------------------------------------------------------------------------
693  Earliest Date for
     Equipment Delivery       0d     11/1/97     11/1/97                                                                   11/1
------------------------------------------------------------------------------------------------------------------------------------
694  San Site Ready
     for Access               0d    11/15/97    11/15/97                                                                   11/15
------------------------------------------------------------------------------------------------------------------------------------
695  INSTALLATION AND
     PHASE 2-1              318d      1/5/98     2/26/99
------------------------------------------------------------------------------------------------------------------------------------
696  RFT 1 & 2               58d      1/5/98     3/20/98
------------------------------------------------------------------------------------------------------------------------------------
697  RFT 3-5                 71d     3/26/98     6/29/98
------------------------------------------------------------------------------------------------------------------------------------
698  MSSC                    65d    10/28/98     1/22/99
------------------------------------------------------------------------------------------------------------------------------------
699  HPN                     51d    12/18/98     2/22/99
------------------------------------------------------------------------------------------------------------------------------------
700  SBS                     31d     1/21/99     2/26/99
------------------------------------------------------------------------------------------------------------------------------------
701  TNM/DCN                 33d     1/19/99     2/26/99
------------------------------------------------------------------------------------------------------------------------------------
702  SAN OSS                 33d     1/18/99     2/25/99
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
                                                                 1998
                             ------------------------------------------------------------------------------
ID  TASK NAME                J      F      M      A      M      J      J      A      S      O      N     D
-----------------------------------------------------------------------------------------------------------
<S> <C>                     <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
685  SAN OSS
-----------------------------------------------------------------------------------------------------------
686  PHASE 2-2
-----------------------------------------------------------------------------------------------------------
687  Phase 2-2 Intra SAN
     Test, R1 SW
-----------------------------------------------------------------------------------------------------------
688  Phase 2-2 Intra SAN
     Test, R1.2 SW &
     Regression
-----------------------------------------------------------------------------------------------------------
689  Phase 2-2 Intra SAN
     Test, R2 SW &
     Regression
-----------------------------------------------------------------------------------------------------------
690  Phase 2-2 Inter SAN
-----------------------------------------------------------------------------------------------------------
691
-----------------------------------------------------------------------------------------------------------
692  SAN 5 - LONGVILO,
     CHILE
-----------------------------------------------------------------------------------------------------------
693  Earliest Date for
     Equipment Delivery
-----------------------------------------------------------------------------------------------------------
694  San Site Ready
     for Access
-----------------------------------------------------------------------------------------------------------
695  INSTALLATION AND
     PHASE 2-1
-----------------------------------------------------------------------------------------------------------
696  RFT 1 & 2
-----------------------------------------------------------------------------------------------------------
697  RFT 3-5
-----------------------------------------------------------------------------------------------------------
698  MSSC
-----------------------------------------------------------------------------------------------------------
699  HPN
-----------------------------------------------------------------------------------------------------------
700  SBS
-----------------------------------------------------------------------------------------------------------
701  TNM/DCN
-----------------------------------------------------------------------------------------------------------
702  SAN OSS
-----------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------
                                                                  1999
                             -------------------------------------------------------------------------------
ID  TASK NAME                J      F      M      A      M      J      J      A      S      O     N     D
------------------------------------------------------------------------------------------------------------
<S> <C>                     <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>   <C>
685  SAN OSS
-----------------------------------------------------------------------------------------------------------
686  PHASE 2-2
-----------------------------------------------------------------------------------------------------------
687  Phase 2-2 Intra SAN
     Test, R1 SW
-----------------------------------------------------------------------------------------------------------
688  Phase 2-2 Intra SAN
     Test, R1.2 SW &
     Regression
-----------------------------------------------------------------------------------------------------------
689  Phase 2-2 Intra SAN
     Test, R2 SW &
     Regression
-----------------------------------------------------------------------------------------------------------
690  Phase 2-2 Inter SAN
-----------------------------------------------------------------------------------------------------------
691
-----------------------------------------------------------------------------------------------------------
692  SAN 5 - LONGVILO,
     CHILE
-----------------------------------------------------------------------------------------------------------
693  Earliest Date for
     Equipment Delivery
-----------------------------------------------------------------------------------------------------------
694  San Site Ready
     for Access
-----------------------------------------------------------------------------------------------------------
695  INSTALLATION AND
     PHASE 2-1
-----------------------------------------------------------------------------------------------------------
696  RFT 1 & 2
-----------------------------------------------------------------------------------------------------------
697  RFT 3-5
-----------------------------------------------------------------------------------------------------------
698  MSSC
-----------------------------------------------------------------------------------------------------------
699  HPN
-----------------------------------------------------------------------------------------------------------
700  SBS
-----------------------------------------------------------------------------------------------------------
701  TNM/DCN
-----------------------------------------------------------------------------------------------------------
702  SAN OSS
------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
                                                                 2000
                            -------------------------------------------------------------------------------
ID  TASK NAME               J      F      M      A      M      J      J      A      S      O     N     D
-----------------------------------------------------------------------------------------------------------
<S> <C>                    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>   <C>
685  SAN OSS
-----------------------------------------------------------------------------------------------------------
686  PHASE 2-2
-----------------------------------------------------------------------------------------------------------
687  Phase 2-2 Intra SAN
     Test, R1 SW
-----------------------------------------------------------------------------------------------------------
688  Phase 2-2 Intra SAN
     Test, R1.2 SW &
     Regression
-----------------------------------------------------------------------------------------------------------
689  Phase 2-2 Intra SAN
     Test, R2 SW &
     Regression
-----------------------------------------------------------------------------------------------------------
690  Phase 2-2 Inter SAN
-----------------------------------------------------------------------------------------------------------
691
-----------------------------------------------------------------------------------------------------------
692  SAN 5 - LONGVILO,
     CHILE
-----------------------------------------------------------------------------------------------------------
693  Earliest Date for
     Equipment Delivery
-----------------------------------------------------------------------------------------------------------
694  San Site Ready
     for Access
-----------------------------------------------------------------------------------------------------------
695  INSTALLATION AND
     PHASE 2-1
-----------------------------------------------------------------------------------------------------------
696  RFT 1 & 2
-----------------------------------------------------------------------------------------------------------
697  RFT 3-5
-----------------------------------------------------------------------------------------------------------
698  MSSC
-----------------------------------------------------------------------------------------------------------
699  HPN
-----------------------------------------------------------------------------------------------------------
700  SBS
-----------------------------------------------------------------------------------------------------------
701  TNM/DCN
-----------------------------------------------------------------------------------------------------------
702  SAN OSS
----------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------
</TABLE>
PROJECT:18 NOV ICO MLS VER 39.MPP
DATE: 11/18/97

DOC: 770019 VERSION 3.9       PAGE 39         REVISED ON THE 12TH NOVEMBER, 1997

<PAGE>   1077

                   IGF PROJECT MASTER LEVEL SCHEDULE REV 3.9

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                                              1997
                                                            ------------------------------------------------------------------------
ID  TASK NAME                DUR      START      FINISH      F      M      A      M      J      J      A      S      O      N     D
------------------------------------------------------------------------------------------------------------------------------------
<S> <C>                    <C>      <C>        <C>        <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
703  PHASE 2-2              200d      3/1/99    11/30/99
------------------------------------------------------------------------------------------------------------------------------------
704  Phase 2-2 Intra SAN
     Test, R1 SW             44d      3/1/99     4/29/99
------------------------------------------------------------------------------------------------------------------------------------
705  Phase 2-2 Intra SAN
     Test, R1.2 SW &
     Regression              67d     4/30/99     7/30/99
------------------------------------------------------------------------------------------------------------------------------------
706  Phase 2-2 Intra SAN
     Test, R2 SW &
     Regression              61d      8/2/99    10/22/99
------------------------------------------------------------------------------------------------------------------------------------
707  Phase 2-2 Inter SAN
     (SANs 1-6)              41d     10/6/99    11/30/99
------------------------------------------------------------------------------------------------------------------------------------
708
------------------------------------------------------------------------------------------------------------------------------------
709  SAN 6 - USINGEN,
     GERMANY                544d     12/1/97    11/30/99
------------------------------------------------------------------------------------------------------------------------------------
710  Earliest Date for
     Equipment Delivery       0d     12/1/97     12/1/97                                                                        12/1
------------------------------------------------------------------------------------------------------------------------------------
711  San Site Ready
     for Access               0d    12/15/97    12/15/97                                                                       12/15
------------------------------------------------------------------------------------------------------------------------------------
712  INSTALLATION AND
     PHASE 2-1              332d    12/16/97     2/26/99
------------------------------------------------------------------------------------------------------------------------------------
713  RFT 1 & 2               75d    12/16/97     3/25/98
------------------------------------------------------------------------------------------------------------------------------------
714  RFT 3-5                100d      5/7/98     9/11/98
------------------------------------------------------------------------------------------------------------------------------------
715  MSSC                    65d    10/28/98     1/22/99
------------------------------------------------------------------------------------------------------------------------------------
716  HPN                     51d    12/18/98     2/22/99
------------------------------------------------------------------------------------------------------------------------------------
717  SBS                     31d     1/21/99     2/26/99
------------------------------------------------------------------------------------------------------------------------------------
718  TNM/DCN                 35d     1/15/99     2/26/99
------------------------------------------------------------------------------------------------------------------------------------
719  SAN OSS                 33d     1/18/99     2/25/99
------------------------------------------------------------------------------------------------------------------------------------
720  PHASE 2-2              200d      3/1/99    11/30/99
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
                                                                 1998
                             ------------------------------------------------------------------------------
ID  TASK NAME                J      F      M      A      M      J      J      A      S      O      N     D
-----------------------------------------------------------------------------------------------------------
<S> <C>                     <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
703  PHASE 2-2
-----------------------------------------------------------------------------------------------------------
704  Phase 2-2 Intra SAN
     Test, R1 SW
-----------------------------------------------------------------------------------------------------------
705  Phase 2-2 Intra SAN
     Test, R1.2 SW &
     Regression
-----------------------------------------------------------------------------------------------------------
706  Phase 2-2 Intra SAN
     Test, R2 SW &
     Regression
-----------------------------------------------------------------------------------------------------------
707  Phase 2-2 Inter SAN
     (SANs 1-6)
-----------------------------------------------------------------------------------------------------------
708
-----------------------------------------------------------------------------------------------------------
709  SAN 6 - USINGEN,
     GERMANY
-----------------------------------------------------------------------------------------------------------
710  Earliest Date for
     Equipment Delivery
-----------------------------------------------------------------------------------------------------------
711  San Site Ready
     for Access
-----------------------------------------------------------------------------------------------------------
712  INSTALLATION AND
     PHASE 2-1
-----------------------------------------------------------------------------------------------------------
713  RFT 1 & 2
-----------------------------------------------------------------------------------------------------------
714  RFT 3-5
-----------------------------------------------------------------------------------------------------------
715  MSSC
-----------------------------------------------------------------------------------------------------------
716  HPN
-----------------------------------------------------------------------------------------------------------
717  SBS
-----------------------------------------------------------------------------------------------------------
718  TNM/DCN
-----------------------------------------------------------------------------------------------------------
719  SAN OSS
-----------------------------------------------------------------------------------------------------------
720  PHASE 2-2
-----------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------
                                                                  1999
                             -------------------------------------------------------------------------------
ID  TASK NAME                J      F      M      A      M      J      J      A      S      O     N     D
------------------------------------------------------------------------------------------------------------
<S> <C>                     <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>   <C>
703  PHASE 2-2
-----------------------------------------------------------------------------------------------------------
704  Phase 2-2 Intra SAN
     Test, R1 SW
-----------------------------------------------------------------------------------------------------------
705  Phase 2-2 Intra SAN
     Test, R1.2 SW &
     Regression
-----------------------------------------------------------------------------------------------------------
706  Phase 2-2 Intra SAN
     Test, R2 SW &
     Regression
-----------------------------------------------------------------------------------------------------------
707  Phase 2-2 Inter SAN
     (SANs 1-6)
-----------------------------------------------------------------------------------------------------------
708
-----------------------------------------------------------------------------------------------------------
709  SAN 6 - USINGEN,
     GERMANY
-----------------------------------------------------------------------------------------------------------
710  Earliest Date for
     Equipment Delivery
-----------------------------------------------------------------------------------------------------------
711  San Site Ready
     for Access
-----------------------------------------------------------------------------------------------------------
712  INSTALLATION AND
     PHASE 2-1
-----------------------------------------------------------------------------------------------------------
713  RFT 1 & 2
-----------------------------------------------------------------------------------------------------------
714  RFT 3-5
-----------------------------------------------------------------------------------------------------------
715  MSSC
-----------------------------------------------------------------------------------------------------------
716  HPN
-----------------------------------------------------------------------------------------------------------
717  SBS
-----------------------------------------------------------------------------------------------------------
718  TNM/DCN
-----------------------------------------------------------------------------------------------------------
719  SAN OSS
-----------------------------------------------------------------------------------------------------------
720  PHASE 2-2
------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
                                                                 2000
                            -------------------------------------------------------------------------------
ID  TASK NAME               J      F      M      A      M      J      J      A      S      O     N     D
-----------------------------------------------------------------------------------------------------------
<S> <C>                    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>   <C>
703  PHASE 2-2
-----------------------------------------------------------------------------------------------------------
704  Phase 2-2 Intra SAN
     Test, R1 SW
-----------------------------------------------------------------------------------------------------------
705  Phase 2-2 Intra SAN
     Test, R1.2 SW &
     Regression
-----------------------------------------------------------------------------------------------------------
706  Phase 2-2 Intra SAN
     Test, R2 SW &
     Regression
-----------------------------------------------------------------------------------------------------------
707  Phase 2-2 Inter SAN
     (SANs 1-6)
-----------------------------------------------------------------------------------------------------------
708
-----------------------------------------------------------------------------------------------------------
709  SAN 6 - USINGEN,
     GERMANY
-----------------------------------------------------------------------------------------------------------
710  Earliest Date for
     Equipment Delivery
-----------------------------------------------------------------------------------------------------------
711  San Site Ready
     for Access
-----------------------------------------------------------------------------------------------------------
712  INSTALLATION AND
     PHASE 2-1
-----------------------------------------------------------------------------------------------------------
713  RFT 1 & 2
-----------------------------------------------------------------------------------------------------------
714  RFT 3-5
-----------------------------------------------------------------------------------------------------------
715  MSSC
-----------------------------------------------------------------------------------------------------------
716  HPN
-----------------------------------------------------------------------------------------------------------
717  SBS
-----------------------------------------------------------------------------------------------------------
718  TNM/DCN
-----------------------------------------------------------------------------------------------------------
719  SAN OSS
-----------------------------------------------------------------------------------------------------------
720  PHASE 2-2
----------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------
</TABLE>
PROJECT: 18 NOV ICO MLS VER 39.MPP
DATE: 11/18/97

DOC: 770019 VERSION 3.9       PAGE 40         REVISED ON THE 12TH NOVEMBER, 1997
<PAGE>   1078

                   IGF PROJECT MASTER LEVEL SCHEDULE REV 3.9

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                                              1997
                                                            ------------------------------------------------------------------------
ID  TASK NAME                DUR     START      FINISH       F      M      A      M      J      J      A      S      O      N     D
------------------------------------------------------------------------------------------------------------------------------------
<S> <C>                    <C>    <C>         <C>         <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
721 Phase 2-2 Intra         44d     3/1/99     4/29/99
    SAN Test, R1 SW
------------------------------------------------------------------------------------------------------------------------------------
722 Phase 2-2 Intra         67d    4/30/99     7/30/99
    SAN Test, R1.2 SW &
    Regression
------------------------------------------------------------------------------------------------------------------------------------
723 Phase 2-2 Intra         61d     8/2/99    10/22/99
    SAN Test, R2 SW &
    Regression
------------------------------------------------------------------------------------------------------------------------------------
724 Phase 2-2 Inter SAN     41d    10/6/99    11/30/99
------------------------------------------------------------------------------------------------------------------------------------
725
------------------------------------------------------------------------------------------------------------------------------------
726 12 RFT's READY FOR       0d    3/31/98     3/31/98
    TT&C (TOP LEVEL
    MILESTONE)
------------------------------------------------------------------------------------------------------------------------------------
727
------------------------------------------------------------------------------------------------------------------------------------
728 SAN 7 - BANUYU URIP,   432d    5/1/98     11/30/99
    INDONESIA
------------------------------------------------------------------------------------------------------------------------------------
729 Earliest Date for        0d    5/1/98       5/1/98
    Equipment Delivery
------------------------------------------------------------------------------------------------------------------------------------
730 San Site Ready For       0d   5/15/98      5/15/98
    Access
------------------------------------------------------------------------------------------------------------------------------------
731 INSTALLATION AND       246d   5/28/98      4/15/99
    PHASE 2-1
------------------------------------------------------------------------------------------------------------------------------------
732 RFT 1-5                147d   5/28/98      12/5/98
------------------------------------------------------------------------------------------------------------------------------------
733 MSSC                    45d   1/21/99      3/17/99
------------------------------------------------------------------------------------------------------------------------------------
734 HPN                     51d    1/1/99       3/5/99
------------------------------------------------------------------------------------------------------------------------------------
735 SBS                     30d    3/4/99      4/14/99
------------------------------------------------------------------------------------------------------------------------------------
736 TNM/DCN                 34d    3/1/99      4/15/99
------------------------------------------------------------------------------------------------------------------------------------
737 SAN OSS                 34d    3/1/99      4/15/99
------------------------------------------------------------------------------------------------------------------------------------
738 PHASE 2-2              134d    6/1/99     11/30/99
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------
                                                                   1998
                               ------------------------------------------------------------------------------
ID  TASK NAME                  J      F      M      A      M      J      J      A      S      O      N     D
-------------------------------------------------------------------------------------------------------------
<S> <C>                       <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
721 Phase 2-2 Intra
    SAN Test, R1 SW
-------------------------------------------------------------------------------------------------------------
722 Phase 2-2 Intra
    SAN Test, R1.2 SW &
    Regression
-------------------------------------------------------------------------------------------------------------
723 Phase 2-2 Intra
    SAN Test, R2 SW &
    Regression
-------------------------------------------------------------------------------------------------------------
724 Phase 2-2 Inter SAN
-------------------------------------------------------------------------------------------------------------
725
-------------------------------------------------------------------------------------------------------------
726 12 RFT's READY FOR
    TT&C (TOP LEVEL
    MILESTONE)                              *3/31
-------------------------------------------------------------------------------------------------------------
727
-------------------------------------------------------------------------------------------------------------
728 SAN 7 - BANUYU URIP,
    INDONESIA
-------------------------------------------------------------------------------------------------------------
729 Earliest Date for
    Equipment Delivery                                     5/1
-------------------------------------------------------------------------------------------------------------
730 San Site Ready For
    Access                                                  5/15
-------------------------------------------------------------------------------------------------------------
731 INSTALLATION AND
    PHASE 2-1
-------------------------------------------------------------------------------------------------------------
732 RFT 1-5
-------------------------------------------------------------------------------------------------------------
733 MSSC
-------------------------------------------------------------------------------------------------------------
734 HPN
-------------------------------------------------------------------------------------------------------------
735 SBS
-------------------------------------------------------------------------------------------------------------
736 TNM/DCN
-------------------------------------------------------------------------------------------------------------
737 SAN OSS
-------------------------------------------------------------------------------------------------------------
738 PHASE 2-2
-------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------
                                                                   1999
                               ------------------------------------------------------------------------------
ID  TASK NAME                  J      F      M      A      M      J      J      A      S      O      N     D
-------------------------------------------------------------------------------------------------------------
<S> <C>                       <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
721 Phase 2-2 Intra
    SAN Test, R1 SW
-------------------------------------------------------------------------------------------------------------
722 Phase 2-2 Intra
    SAN Test, R1.2 SW &
    Regression
-------------------------------------------------------------------------------------------------------------
723 Phase 2-2 Intra
    SAN Test, R2 SW &
    Regression
-------------------------------------------------------------------------------------------------------------
724 Phase 2-2 Inter SAN
-------------------------------------------------------------------------------------------------------------
725
-------------------------------------------------------------------------------------------------------------
726 12 RFT's READY FOR
    TT&C (TOP LEVEL
    MILESTONE)
-------------------------------------------------------------------------------------------------------------
727
-------------------------------------------------------------------------------------------------------------
728 SAN 7 - BANUYU URIP,
    INDONESIA
-------------------------------------------------------------------------------------------------------------
729 Earliest Date for
    Equipment Delivery
-------------------------------------------------------------------------------------------------------------
730 San Site Ready For
    Access
-------------------------------------------------------------------------------------------------------------
731 INSTALLATION AND
    PHASE 2-1
-------------------------------------------------------------------------------------------------------------
732 RFT 1-5
-------------------------------------------------------------------------------------------------------------
733 MSSC
-------------------------------------------------------------------------------------------------------------
734 HPN
-------------------------------------------------------------------------------------------------------------
735 SBS
-------------------------------------------------------------------------------------------------------------
736 TNM/DCN
-------------------------------------------------------------------------------------------------------------
737 SAN OSS
-------------------------------------------------------------------------------------------------------------
738 PHASE 2-2
-------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------
                                                                   2000
                               ------------------------------------------------------------------------------
ID  TASK NAME                  J      F      M      A      M      J      J      A      S      O      N     D
-------------------------------------------------------------------------------------------------------------
<S> <C>                       <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
721 Phase 2-2 Intra
    SAN Test, R1 SW
-------------------------------------------------------------------------------------------------------------
722 Phase 2-2 Intra
    SAN Test, R1.2 SW &
    Regression
-------------------------------------------------------------------------------------------------------------
723 Phase 2-2 Intra
    SAN Test, R2 SW &
    Regression
-------------------------------------------------------------------------------------------------------------
724 Phase 2-2 Inter SAN
-------------------------------------------------------------------------------------------------------------
725
-------------------------------------------------------------------------------------------------------------
726 12 RFT's READY FOR
    TT&C (TOP LEVEL
    MILESTONE)
-------------------------------------------------------------------------------------------------------------
727
-------------------------------------------------------------------------------------------------------------
728 SAN 7 - BANUYU URIP,
    INDONESIA
-------------------------------------------------------------------------------------------------------------
729 Earliest Date for
    Equipment Delivery
-------------------------------------------------------------------------------------------------------------
730 San Site Ready For
    Access
-------------------------------------------------------------------------------------------------------------
731 INSTALLATION AND
    PHASE 2-1
-------------------------------------------------------------------------------------------------------------
732 RFT 1-5
-------------------------------------------------------------------------------------------------------------
733 MSSC
-------------------------------------------------------------------------------------------------------------
734 HPN
-------------------------------------------------------------------------------------------------------------
735 SBS
-------------------------------------------------------------------------------------------------------------
736 TNM/DCN
-------------------------------------------------------------------------------------------------------------
737 SAN OSS
-------------------------------------------------------------------------------------------------------------
738 PHASE 2-2
-------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------
</TABLE>

PROJECT: 18 NOV ICO MLS VER 39.MPP
DATE: 11/18/97

DOC: 770019 VERSION 3.9       PAGE 41         REVISED ON THE 12TH NOVEMBER, 1997
<PAGE>   1079

                   IGF PROJECT MASTER LEVEL SCHEDULE REV 3.9

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                                              1997
                                                            ------------------------------------------------------------------------
ID  TASK NAME                DUR     START      FINISH       F      M      A      M      J      J      A      S      O      N     D
------------------------------------------------------------------------------------------------------------------------------------
<S> <C>                    <C>     <C>        <C>         <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
739 Phase 2-2 Intra         45d     6/1/99     7/30/99
    SAN Test, R1.2 SW &
    Regression
------------------------------------------------------------------------------------------------------------------------------------
740 Phase 2-2 Intra         61d    8/2/99     10/22/99
    SAN Test, R2 SW &
    Regression
------------------------------------------------------------------------------------------------------------------------------------
741 Phase 2-2 Inter SAN     41d    10/6/99    11/30/99
------------------------------------------------------------------------------------------------------------------------------------
742
------------------------------------------------------------------------------------------------------------------------------------
743 SAN 8 - SOUTH KOREA    432d     5/1/98    11/30/99
------------------------------------------------------------------------------------------------------------------------------------
744 Earliest Date For        0d     5/1/98      5/1/98
    Equipment Delivery
------------------------------------------------------------------------------------------------------------------------------------
745 San Site Ready For       0d    5/15/98     5/15/98
    Access
------------------------------------------------------------------------------------------------------------------------------------
746 INSTALLATION AND       250d    5/22/98     4/15/99
    PHASE 2-1
------------------------------------------------------------------------------------------------------------------------------------
747 RFT 1-5                136d    5/22/98    11/17/98
------------------------------------------------------------------------------------------------------------------------------------
748 MSSC                    45d    1/21/99     3/17/99
------------------------------------------------------------------------------------------------------------------------------------
749 HPN                     51d     1/1/99      3/5/99
------------------------------------------------------------------------------------------------------------------------------------
750 SBS                     30d     3/4/99     4/14/99
------------------------------------------------------------------------------------------------------------------------------------
751 TNM/DCN                 34d     3/1/99     4/15/99
------------------------------------------------------------------------------------------------------------------------------------
752 SAN OSS                 34d     3/1/99     4/15/99
------------------------------------------------------------------------------------------------------------------------------------
753 PHASE 2-2              134d     6/1/99    11/30/99
------------------------------------------------------------------------------------------------------------------------------------
754 Phase 2-2 Intra         45d     6/1/99     7/30/99
    SAN Test, R1.2 SW &
    Regression
------------------------------------------------------------------------------------------------------------------------------------
755 Phase 2-2 Intra         61d     8/2/99    10/22/99
    SAN Test, R2 SW &
    Regression
------------------------------------------------------------------------------------------------------------------------------------

756 Phase 2-2 Inter SAN     41d    10/6/99    11/30/99
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------
                                                                   1998
                               ------------------------------------------------------------------------------
ID  TASK NAME                  J      F      M      A      M      J      J      A      S      O      N     D
-------------------------------------------------------------------------------------------------------------
<S> <C>                       <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
739 Phase 2-2 Intra
    SAN Test, R1.2 SW &
    Regression
-------------------------------------------------------------------------------------------------------------
740 Phase 2-2 Intra
    SAN Test, R2 SW &
    Regression
-------------------------------------------------------------------------------------------------------------
741 Phase 2-2 Inter SAN
-------------------------------------------------------------------------------------------------------------
742
-------------------------------------------------------------------------------------------------------------
743 SAN 8 - SOUTH KOREA
-------------------------------------------------------------------------------------------------------------
744 Earliest Date For                                       5/1
    Equipment Delivery                                      5/15
-------------------------------------------------------------------------------------------------------------
745 San Site Ready For
    Access
-------------------------------------------------------------------------------------------------------------
746 INSTALLATION AND
    PHASE 2-1
-------------------------------------------------------------------------------------------------------------
747 RFT 1-5
-------------------------------------------------------------------------------------------------------------
748 MSSC
-------------------------------------------------------------------------------------------------------------
749 HPN
-------------------------------------------------------------------------------------------------------------
750 SBS
-------------------------------------------------------------------------------------------------------------
751 TNM/DCN
-------------------------------------------------------------------------------------------------------------
752 SAN OSS
-------------------------------------------------------------------------------------------------------------
753 PHASE 2-2
-------------------------------------------------------------------------------------------------------------
754 Phase 2-2 Intra
    SAN Test, R1.2 SW &
    Regression
-------------------------------------------------------------------------------------------------------------
755 Phase 2-2 Intra
    SAN Test, R2 SW &
    Regression
-------------------------------------------------------------------------------------------------------------
756 Phase 2-2 Inter SAN
-------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------
                                                                   1999
                               ------------------------------------------------------------------------------
ID  TASK NAME                  J      F      M      A      M      J      J      A      S      O      N     D
-------------------------------------------------------------------------------------------------------------
<S> <C>                       <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
739 Phase 2-2 Intra
    SAN Test, R1.2 SW &
    Regression
-------------------------------------------------------------------------------------------------------------
740 Phase 2-2 Intra
    SAN Test, R2 SW &
    Regression
-------------------------------------------------------------------------------------------------------------
741 Phase 2-2 Inter SAN
-------------------------------------------------------------------------------------------------------------
742
-------------------------------------------------------------------------------------------------------------
743 SAN 8 - SOUTH KOREA
-------------------------------------------------------------------------------------------------------------
744 Earliest Date For
    Equipment Delivery
-------------------------------------------------------------------------------------------------------------
745 San Site Ready For
    Access
-------------------------------------------------------------------------------------------------------------
746 INSTALLATION AND
    PHASE 2-1
-------------------------------------------------------------------------------------------------------------
747 RFT 1-5
-------------------------------------------------------------------------------------------------------------
748 MSSC
-------------------------------------------------------------------------------------------------------------
749 HPN
-------------------------------------------------------------------------------------------------------------
750 SBS
-------------------------------------------------------------------------------------------------------------
751 TNM/DCN
-------------------------------------------------------------------------------------------------------------
752 SAN OSS
-------------------------------------------------------------------------------------------------------------
753 PHASE 2-2
-------------------------------------------------------------------------------------------------------------
754 Phase 2-2 Intra
    SAN Test, R1.2 SW &
    Regression
-------------------------------------------------------------------------------------------------------------
755 Phase 2-2 Intra
    SAN Test, R2 SW &
    Regression
-------------------------------------------------------------------------------------------------------------
756 Phase 2-2 Inter SAN
-------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------
                                                                   2000
                               ------------------------------------------------------------------------------
ID  TASK NAME                  J      F      M      A      M      J      J      A      S      O      N     D
-------------------------------------------------------------------------------------------------------------
<S> <C>                       <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
739 Phase 2-2 Intra
    SAN Test, R1.2 SW &
    Regression
-------------------------------------------------------------------------------------------------------------
740 Phase 2-2 Intra
    SAN Test, R2 SW &
    Regression
-------------------------------------------------------------------------------------------------------------
741 Phase 2-2 Inter SAN
-------------------------------------------------------------------------------------------------------------
742
-------------------------------------------------------------------------------------------------------------
743 SAN 8 - SOUTH KOREA
-------------------------------------------------------------------------------------------------------------
744 Earliest Date For
    Equipment Delivery
-------------------------------------------------------------------------------------------------------------
745 San Site Ready For
    Access
-------------------------------------------------------------------------------------------------------------
746 INSTALLATION AND
    PHASE 2-1
-------------------------------------------------------------------------------------------------------------
747 RFT 1-5
-------------------------------------------------------------------------------------------------------------
748 MSSC
-------------------------------------------------------------------------------------------------------------
749 HPN
-------------------------------------------------------------------------------------------------------------
750 SBS
-------------------------------------------------------------------------------------------------------------
751 TNM/DCN
-------------------------------------------------------------------------------------------------------------
752 SAN OSS
-------------------------------------------------------------------------------------------------------------
753 PHASE 2-2
-------------------------------------------------------------------------------------------------------------
754 Phase 2-2 Intra
    SAN Test, R1.2 SW &
    Regression
-------------------------------------------------------------------------------------------------------------
755 Phase 2-2 Intra
    SAN Test, R2 SW &
    Regression
-------------------------------------------------------------------------------------------------------------
756 Phase 2-2 Inter SAN
-------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------
</TABLE>

PROJECT: 18 NOV ICO MLS VER 39.MPP
DATE: 11/18/97

DOC: 770019 VERSION 3.9       PAGE 42         REVISED ON THE 12TH NOVEMBER, 1997
<PAGE>   1080

                   IGF PROJECT MASTER LEVEL SCHEDULE REV 3.9

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                                             1997
                                                           -------------------------------------------------------------------------
ID   TASK NAME                DUR    START      FINISH      F      M      A      M      J      J      A      S      O      N     D
------------------------------------------------------------------------------------------------------------------------------------
<S>  <C>                     <C>   <C>         <C>        <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
757
------------------------------------------------------------------------------------------------------------------------------------
758  SAN 9-MEXICO            333d    9/7/98    11/30/99
------------------------------------------------------------------------------------------------------------------------------------
759    EARLIEST DATE FOR       0d    9/7/98      9/7/98
         EQUIPMENT DELIVERY
------------------------------------------------------------------------------------------------------------------------------------
760    SAN SITE READY FOR      0d   9/20/98     9/20/98
         ACCESS
------------------------------------------------------------------------------------------------------------------------------------
761    INSTALLATION AND      188d   9/21/98     5/31/99
         PHASE 2-1
------------------------------------------------------------------------------------------------------------------------------------
762      RFT 1-5             142d   9/21/98     3/26/99
------------------------------------------------------------------------------------------------------------------------------------
763      MSSC                 45d   1/15/99     3/11/99
------------------------------------------------------------------------------------------------------------------------------------
764      HPN                  51d    1/1/99      3/5/99
------------------------------------------------------------------------------------------------------------------------------------
765      SBS                  29d   4/21/99     5/31/99
------------------------------------------------------------------------------------------------------------------------------------
766      TNM/DCN              32d   4/16/99     5/31/99
------------------------------------------------------------------------------------------------------------------------------------
767      SAN OSS              32d   4/16/99     5/31/99
------------------------------------------------------------------------------------------------------------------------------------
768    PHASE 2-2             134d    6/1/99    11/30/99
------------------------------------------------------------------------------------------------------------------------------------
769      Phase 2-2 Intra      45d    6/1/99     7/30/99
           SAN Test, R1.2
           SW & Regression
------------------------------------------------------------------------------------------------------------------------------------
770      Phase 2-2 Intra      61d    8/2/99    10/22/99
           SAN Test, R2
           SW & Regression
------------------------------------------------------------------------------------------------------------------------------------
771      Phase 2-2 Inter      41d   10/6/98    11/30/99
           SAN
------------------------------------------------------------------------------------------------------------------------------------
772
------------------------------------------------------------------------------------------------------------------------------------
773  SAN 10-UAE              333d    9/7/98    11/30/99
------------------------------------------------------------------------------------------------------------------------------------
774    Earliest Date for       0d    9/7/98      9/7/98
         Equipment Delivery
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------
                                                                       1998
                                ---------------------------------------------------------------------------------
ID   TASK NAME                    J      F      M      A      M      J      J      A      S      O      N     D
-----------------------------------------------------------------------------------------------------------------
<S>  <C>                        <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>

757
-----------------------------------------------------------------------------------------------------------------
758  SAN 9-MEXICO
-----------------------------------------------------------------------------------------------------------------
759    EARLIEST DATE FOR                                                                9/7
         EQUIPMENT DELIVERY
-----------------------------------------------------------------------------------------------------------------
760    SAN SITE READY FOR                                                               9/20
         ACCESS
-----------------------------------------------------------------------------------------------------------------
761    INSTALLATION AND
         PHASE 2-1
-----------------------------------------------------------------------------------------------------------------
762      RFT 1-5
-----------------------------------------------------------------------------------------------------------------
763      MSSC
-----------------------------------------------------------------------------------------------------------------
764      HPN
-----------------------------------------------------------------------------------------------------------------
765      SBS
-----------------------------------------------------------------------------------------------------------------
766      TNM/DCN
-----------------------------------------------------------------------------------------------------------------
767      SAN OSS
-----------------------------------------------------------------------------------------------------------------
768    PHASE 2-2
-----------------------------------------------------------------------------------------------------------------
769      Phase 2-2 Intra
           SAN Test, R1.2
           SW & Regression
-----------------------------------------------------------------------------------------------------------------
770      Phase 2-2 Intra
           SAN Test, R2
           SW & Regression
-----------------------------------------------------------------------------------------------------------------
771      Phase 2-2 Inter
           SAN
-----------------------------------------------------------------------------------------------------------------
772
-----------------------------------------------------------------------------------------------------------------
773  SAN 10-UAE
-----------------------------------------------------------------------------------------------------------------
774    Earliest Date for                                                                9/7
         Equipment Delivery
-----------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
------------------------------------------------------------------------------------------------------------------
                                                                   1999
                                ---------------------------------------------------------------------------------
ID   TASK NAME                    J      F      M      A      M      J      J      A      S      O      N     D
-----------------------------------------------------------------------------------------------------------------
<S>  <C>                        <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
757
-----------------------------------------------------------------------------------------------------------------
758  SAN 9-MEXICO
-----------------------------------------------------------------------------------------------------------------
759    EARLIEST DATE FOR
         EQUIPMENT DELIVERY
-----------------------------------------------------------------------------------------------------------------
760    SAN SITE READY FOR
         ACCESS
-----------------------------------------------------------------------------------------------------------------
761    INSTALLATION AND
         PHASE 2-1
-----------------------------------------------------------------------------------------------------------------
762      RFT 1-5
-----------------------------------------------------------------------------------------------------------------
763      MSSC
-----------------------------------------------------------------------------------------------------------------
764      HPN
-----------------------------------------------------------------------------------------------------------------
765      SBS
-----------------------------------------------------------------------------------------------------------------
766      TNM/DCN
-----------------------------------------------------------------------------------------------------------------
767      SAN OSS
-----------------------------------------------------------------------------------------------------------------
768    PHASE 2-2
-----------------------------------------------------------------------------------------------------------------
769      Phase 2-2 Intra
           SAN Test, R1.2
           SW & Regression
-----------------------------------------------------------------------------------------------------------------
770      Phase 2-2 Intra
           SAN Test, R2
           SW & Regression
-----------------------------------------------------------------------------------------------------------------
771      Phase 2-2 Inter
           SAN
-----------------------------------------------------------------------------------------------------------------
772
-----------------------------------------------------------------------------------------------------------------
773  SAN 10-UAE
-----------------------------------------------------------------------------------------------------------------
774    Earliest Date for
         Equipment Delivery
-----------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------
                                                                   2000
                                ----------------------------------------------------------------------------------
ID   TASK NAME                    J      F      M      A      M      J      J      A      S      O      N     D
-----------------------------------------------------------------------------------------------------------------
<S>  <C>                        <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
757
-----------------------------------------------------------------------------------------------------------------
758  SAN 9-MEXICO
-----------------------------------------------------------------------------------------------------------------
759    EARLIEST DATE FOR
         EQUIPMENT DELIVERY
-----------------------------------------------------------------------------------------------------------------
760    SAN SITE READY FOR
         ACCESS
-----------------------------------------------------------------------------------------------------------------
761    INSTALLATION AND
         PHASE 2-1
-----------------------------------------------------------------------------------------------------------------
762      RFT 1-5
-----------------------------------------------------------------------------------------------------------------
763      MSSC
-----------------------------------------------------------------------------------------------------------------
764      HPN
-----------------------------------------------------------------------------------------------------------------
765      SBS
-----------------------------------------------------------------------------------------------------------------
766      TNM/DCN
-----------------------------------------------------------------------------------------------------------------
767      SAN OSS
-----------------------------------------------------------------------------------------------------------------
768    PHASE 2-2
-----------------------------------------------------------------------------------------------------------------
769      Phase 2-2 Intra
           SAN Test, R1.2
           SW & Regression
-----------------------------------------------------------------------------------------------------------------
770      Phase 2-2 Intra
           SAN Test, R2
           SW & Regression
-----------------------------------------------------------------------------------------------------------------
771      Phase 2-2 Inter
           SAN
-----------------------------------------------------------------------------------------------------------------
772
-----------------------------------------------------------------------------------------------------------------
773  SAN 10-UAE
-----------------------------------------------------------------------------------------------------------------
774    Earliest Date for
         Equipment Delivery
-----------------------------------------------------------------------------------------------------------------
</TABLE>

PROJECT: 18 NOV ICO MLS VER 39.MPP
DATE: 11/18/97

DOC: 770019 VERSION 3.9       PAGE 43         REVISED ON THE 12TH NOVEMBER, 1997
<PAGE>   1081

                   IGF PROJECT MASTER LEVEL SCHEDULE REV 3.9

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                                              1997
                                                             -----------------------------------------------------------------------
ID  TASK NAME                      DUR  START    FINISH      F      M      A      M      J      J      A      S      O      N     D
------------------------------------------------------------------------------------------------------------------------------------
<S> <C>                          <C>    <C>        <C>      <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
775 San Site Ready For Access      0d    9/20/98    9/20/98
------------------------------------------------------------------------------------------------------------------------------------
776 Installation and Phase 2-1   188d    9/21/98    5/31/99
------------------------------------------------------------------------------------------------------------------------------------
777   RFT 1-5                    132d    9/21/98    3/12/99
------------------------------------------------------------------------------------------------------------------------------------
778   MSSC                        45d    2/11/99     4/9/99
------------------------------------------------------------------------------------------------------------------------------------
779   HPN                         51d     1/1/99     3/5/99
------------------------------------------------------------------------------------------------------------------------------------
780   SBS                         29d    4/21/99    5/31/99
------------------------------------------------------------------------------------------------------------------------------------
781   TNM/DCN                     32d    4/16/99    5/31/99
------------------------------------------------------------------------------------------------------------------------------------
782   SAN OSS                     53d    3/18/99    5/31/99
------------------------------------------------------------------------------------------------------------------------------------
783 Phase 2-2                    111d     7/1/99   11/30/99
------------------------------------------------------------------------------------------------------------------------------------
784   Phase 2-2 Intra SAN Test,
       R1.2 SW & Regression       41d     7/1/99    8/25/99
------------------------------------------------------------------------------------------------------------------------------------
785   Phase 2-2 Intra SAN Test,
       R2 SW & Regression         40d    8/30/99   10/22/99
------------------------------------------------------------------------------------------------------------------------------------
786   Phase 2-2 Inter SAN         41d    10/6/99   11/30/99
------------------------------------------------------------------------------------------------------------------------------------
787
------------------------------------------------------------------------------------------------------------------------------------
788 SAN 11 - Pudong, China       235d    1/18/99   11/30/99
------------------------------------------------------------------------------------------------------------------------------------
789   Earliest Date for
       Equipment Delivery          0d    1/18/99    1/18/99
------------------------------------------------------------------------------------------------------------------------------------
790   San Site Ready For Access    0d     2/1/99     2/1/99
------------------------------------------------------------------------------------------------------------------------------------
791   Installation and Phase 2-1 138d     2/1/99     8/5/99
------------------------------------------------------------------------------------------------------------------------------------
792     RFT 1-5                  138d     2/1/99     8/5/99
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                                             1998
                                                             -----------------------------------------------------------------------
ID  TASK NAME                      DUR  START    FINISH      J     F     M     A     M     J     J     A     S     O     N      D
------------------------------------------------------------------------------------------------------------------------------------
<S> <C>                          <C>    <C>        <C>      <C>   <C>   <C>   <C>   <C>   <C>   <C>   <C>   <C>   <C>   <C>    <C>
775 San Site Ready For Access      0d    9/20/98    9/20/98                                                  9/20
------------------------------------------------------------------------------------------------------------------------------------
776 Installation and Phase 2-1   188d    9/21/98    5/31/99
------------------------------------------------------------------------------------------------------------------------------------
777   RFT 1-5                    132d    9/21/98    3/12/99
------------------------------------------------------------------------------------------------------------------------------------
778   MSSC                        45d    2/11/99     4/9/99
------------------------------------------------------------------------------------------------------------------------------------
779   HPN                         51d     1/1/99     3/5/99
------------------------------------------------------------------------------------------------------------------------------------
780   SBS                         29d    4/21/99    5/31/99
------------------------------------------------------------------------------------------------------------------------------------
781   TNM/DCN                     32d    4/16/99    5/31/99
------------------------------------------------------------------------------------------------------------------------------------
782   SAN OSS                     53d    3/18/99    5/31/99
------------------------------------------------------------------------------------------------------------------------------------
783 Phase 2-2                    111d     7/1/99   11/30/99
------------------------------------------------------------------------------------------------------------------------------------
784   Phase 2-2 Intra SAN Test,
       R1.2 SW & Regression       41d     7/1/99    8/25/99
------------------------------------------------------------------------------------------------------------------------------------
785   Phase 2-2 Intra SAN Test,
       R2 SW & Regression         40d    8/30/99   10/22/99
------------------------------------------------------------------------------------------------------------------------------------
786   Phase 2-2 Inter SAN         41d    10/6/99   11/30/99
------------------------------------------------------------------------------------------------------------------------------------
787
------------------------------------------------------------------------------------------------------------------------------------
788 SAN 11 - Pudong, China       235d    1/18/99   11/30/99
------------------------------------------------------------------------------------------------------------------------------------
789   Earliest Date for
       Equipment Delivery          0d    1/18/99    1/18/99
------------------------------------------------------------------------------------------------------------------------------------
790   San Site Ready For Access    0d     2/1/99     2/1/99
------------------------------------------------------------------------------------------------------------------------------------
791   Installation and Phase 2-1 138d     2/1/99     8/5/99
------------------------------------------------------------------------------------------------------------------------------------
792     RFT 1-5                  138d     2/1/99     8/5/99
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                                             1999
                                                             -----------------------------------------------------------------------
ID  TASK NAME                      DUR  START    FINISH      J     F     M     A     M     J     J     A     S     O     N      D
------------------------------------------------------------------------------------------------------------------------------------
<S> <C>                          <C>    <C>        <C>      <C>   <C>   <C>   <C>   <C>   <C>   <C>   <C>   <C>   <C>   <C>    <C>
775 San Site Ready For Access      0d    9/20/98    9/20/98
------------------------------------------------------------------------------------------------------------------------------------
776 Installation and Phase 2-1   188d    9/21/98    5/31/99
------------------------------------------------------------------------------------------------------------------------------------
777   RFT 1-5                    132d    9/21/98    3/12/99
------------------------------------------------------------------------------------------------------------------------------------
778   MSSC                        45d    2/11/99     4/9/99
------------------------------------------------------------------------------------------------------------------------------------
779   HPN                         51d     1/1/99     3/5/99
------------------------------------------------------------------------------------------------------------------------------------
780   SBS                         29d    4/21/99    5/31/99
------------------------------------------------------------------------------------------------------------------------------------
781   TNM/DCN                     32d    4/16/99    5/31/99
------------------------------------------------------------------------------------------------------------------------------------
782   SAN OSS                     53d    3/18/99    5/31/99
------------------------------------------------------------------------------------------------------------------------------------
783 Phase 2-2                    111d     7/1/99   11/30/99
------------------------------------------------------------------------------------------------------------------------------------
784   Phase 2-2 Intra SAN Test,
       R1.2 SW & Regression       41d     7/1/99    8/25/99
------------------------------------------------------------------------------------------------------------------------------------
785   Phase 2-2 Intra SAN Test,
       R2 SW & Regression         40d    8/30/99   10/22/99
------------------------------------------------------------------------------------------------------------------------------------
786   Phase 2-2 Inter SAN         41d    10/6/99   11/30/99
------------------------------------------------------------------------------------------------------------------------------------
787
------------------------------------------------------------------------------------------------------------------------------------
788 SAN 11 - Pudong, China       235d    1/18/99   11/30/99
------------------------------------------------------------------------------------------------------------------------------------
789   Earliest Date for
       Equipment Delivery          0d    1/18/99    1/18/99  1/18
------------------------------------------------------------------------------------------------------------------------------------
790   San Site Ready For Access    0d     2/1/99     2/1/99         2/1
------------------------------------------------------------------------------------------------------------------------------------
791   Installation and Phase 2-1 138d     2/1/99     8/5/99
------------------------------------------------------------------------------------------------------------------------------------
792     RFT 1-5                  138d     2/1/99     8/5/99
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                                             2000
                                                             -----------------------------------------------------------------------
ID  TASK NAME                      DUR  START    FINISH      J     F     M     A     M     J     J     A     S     O     N      D
------------------------------------------------------------------------------------------------------------------------------------
<S> <C>                          <C>    <C>        <C>      <C>   <C>   <C>   <C>   <C>   <C>   <C>   <C>   <C>   <C>   <C>    <C>
775 San Site Ready For Access      0d    9/20/98    9/20/98
------------------------------------------------------------------------------------------------------------------------------------
776 Installation and Phase 2-1   188d    9/21/98    5/31/99
------------------------------------------------------------------------------------------------------------------------------------
777   RFT 1-5                    132d    9/21/98    3/12/99
------------------------------------------------------------------------------------------------------------------------------------
778   MSSC                        45d    2/11/99     4/9/99
------------------------------------------------------------------------------------------------------------------------------------
779   HPN                         51d     1/1/99     3/5/99
------------------------------------------------------------------------------------------------------------------------------------
780   SBS                         29d    4/21/99    5/31/99
------------------------------------------------------------------------------------------------------------------------------------
781   TNM/DCN                     32d    4/16/99    5/31/99
------------------------------------------------------------------------------------------------------------------------------------
782   SAN OSS                     53d    3/18/99    5/31/99
------------------------------------------------------------------------------------------------------------------------------------
783 Phase 2-2                    111d     7/1/99   11/30/99
------------------------------------------------------------------------------------------------------------------------------------
784   Phase 2-2 Intra SAN Test,
       R1.2 SW & Regression       41d     7/1/99    8/25/99
------------------------------------------------------------------------------------------------------------------------------------
785   Phase 2-2 Intra SAN Test,
       R2 SW & Regression         40d    8/30/99   10/22/99
------------------------------------------------------------------------------------------------------------------------------------
786   Phase 2-2 Inter SAN         41d    10/6/99   11/30/99
------------------------------------------------------------------------------------------------------------------------------------
787
------------------------------------------------------------------------------------------------------------------------------------
788 SAN 11 - Pudong, China       235d    1/18/99   11/30/99
------------------------------------------------------------------------------------------------------------------------------------
789   Earliest Date for
       Equipment Delivery          0d    1/18/99    1/18/99
------------------------------------------------------------------------------------------------------------------------------------
790   San Site Ready For Access    0d     2/1/99     2/1/99
------------------------------------------------------------------------------------------------------------------------------------
791   Installation and Phase 2-1 138d     2/1/99     8/5/99
------------------------------------------------------------------------------------------------------------------------------------
792     RFT 1-5                  138d     2/1/99     8/5/99
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

PROJECT: 18 NOV ICO MLS VER 39.MPP
DATE: 11/18/97

DOC: 770019 VERSION 3.9       PAGE 44         REVISED ON THE 12TH NOVEMBER, 1997
<PAGE>   1082

                   IGF PROJECT MASTER LEVEL SCHEDULE REV 3.9

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                                              1997
                                                            ------------------------------------------------------------------------
ID   TASK NAME                DUR     START     FINISH      F      M      A      M      J      J      A      S      O      N     D
------------------------------------------------------------------------------------------------------------------------------------
<S>  <C>                     <C>     <C>       <C>        <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
793    MSSC                    53d     3/18/99    5/31/99
------------------------------------------------------------------------------------------------------------------------------------
794    HPN                     51d      3/3/99    5/12/99
------------------------------------------------------------------------------------------------------------------------------------
795    SBS                     31d     5/28/99     7/8/99
------------------------------------------------------------------------------------------------------------------------------------
796    TNM/DCN                 30d      6/1/99     7/9/99
------------------------------------------------------------------------------------------------------------------------------------
797    SAN OSS                 30d      6/1/99     7/9/99
------------------------------------------------------------------------------------------------------------------------------------
798   Phase 2-2               111d      7/1/99   11/30/99
------------------------------------------------------------------------------------------------------------------------------------
799    Phase 2-2 Intra         41d      7/1/99    8/25/99
       SAN Test, R1.2 SW
       & Regression
------------------------------------------------------------------------------------------------------------------------------------
800    Phase 2-2 Intra         40d     8/30/99   10/22/99
       SAN Test, R2 SW &
       Regression
------------------------------------------------------------------------------------------------------------------------------------
801    Phase 2-2 Inter SAN     41d     10/6/99   11/30/99
------------------------------------------------------------------------------------------------------------------------------------
802
------------------------------------------------------------------------------------------------------------------------------------
803  SAN 12 - Brazil          150d     1/18/99     8/5/99
------------------------------------------------------------------------------------------------------------------------------------
804   Earliest Date for         0d     1/18/99    1/18/99
      Equipment Delivery
------------------------------------------------------------------------------------------------------------------------------------
805   San Site Ready For        0d      2/1/99     2/1/99
      Access
------------------------------------------------------------------------------------------------------------------------------------
806   Installation and        138d      2/1/99     8/5/99
      Phase 2-1
------------------------------------------------------------------------------------------------------------------------------------
807    RFT 1-5                138d      2/1/99     8/5/99
------------------------------------------------------------------------------------------------------------------------------------
808    MSSC                    53d     3/18/99    5/31/99
------------------------------------------------------------------------------------------------------------------------------------
809    HPN                     51d      3/3/99    5/12/99
------------------------------------------------------------------------------------------------------------------------------------
810    SBS                     30d      6/1/99     7/9/99
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
                                                                 1998
                             ------------------------------------------------------------------------------
ID  TASK NAME                J      F      M      A      M      J      J      A      S      O      N     D
-----------------------------------------------------------------------------------------------------------
<S> <C>                     <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
793    MSSC
-----------------------------------------------------------------------------------------------------------
794    HPN
-----------------------------------------------------------------------------------------------------------
795    SBS
-----------------------------------------------------------------------------------------------------------
796    TNM/DCN
-----------------------------------------------------------------------------------------------------------
797    SAN OSS
-----------------------------------------------------------------------------------------------------------
798   Phase 2-2
-----------------------------------------------------------------------------------------------------------
799    Phase 2-2 Intra
       SAN Test, R1.2 SW
       & Regression
-----------------------------------------------------------------------------------------------------------
800    Phase 2-2 Intra
       SAN Test, R2 SW &
       Regression
-----------------------------------------------------------------------------------------------------------
801    Phase 2-2 Inter SAN
-----------------------------------------------------------------------------------------------------------
802
-----------------------------------------------------------------------------------------------------------
803  SAN 12 - Brazil
-----------------------------------------------------------------------------------------------------------
804   Earliest Date for
      Equipment Delivery
-----------------------------------------------------------------------------------------------------------
805   San Site Ready For
      Access
-----------------------------------------------------------------------------------------------------------
806   Installation and
      Phase 2-1
-----------------------------------------------------------------------------------------------------------
807    RFT 1-5
-----------------------------------------------------------------------------------------------------------
808    MSSC
-----------------------------------------------------------------------------------------------------------
809    HPN
-----------------------------------------------------------------------------------------------------------
810    SBS
-----------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
                                                                 1999
                             ------------------------------------------------------------------------------
ID  TASK NAME                J      F      M      A      M      J      J      A      S      O      N     D
-----------------------------------------------------------------------------------------------------------
<S> <C>                     <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
793    MSSC
-----------------------------------------------------------------------------------------------------------
794    HPN
-----------------------------------------------------------------------------------------------------------
795    SBS
-----------------------------------------------------------------------------------------------------------
796    TNM/DCN
-----------------------------------------------------------------------------------------------------------
797    SAN OSS
-----------------------------------------------------------------------------------------------------------
798   Phase 2-2
-----------------------------------------------------------------------------------------------------------
799    Phase 2-2 Intra
       SAN Test, R1.2 SW
       & Regression
-----------------------------------------------------------------------------------------------------------
800    Phase 2-2 Intra
       SAN Test, R2 SW &
       Regression
-----------------------------------------------------------------------------------------------------------
801    Phase 2-2 Inter SAN
-----------------------------------------------------------------------------------------------------------
802
-----------------------------------------------------------------------------------------------------------
803  SAN 12 - Brazil
-----------------------------------------------------------------------------------------------------------
804   Earliest Date for      1/18
      Equipment Delivery
-----------------------------------------------------------------------------------------------------------
805   San Site Ready For            2/1
      Access
-----------------------------------------------------------------------------------------------------------
806   Installation and
      Phase 2-1
-----------------------------------------------------------------------------------------------------------
807    RFT 1-5
-----------------------------------------------------------------------------------------------------------
808    MSSC
-----------------------------------------------------------------------------------------------------------
809    HPN
-----------------------------------------------------------------------------------------------------------
810    SBS
-----------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
                                                                 2000
                             ------------------------------------------------------------------------------
ID  TASK NAME                J      F      M      A      M      J      J      A      S      O      N     D
-----------------------------------------------------------------------------------------------------------
<S> <C>                     <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
793    MSSC
-----------------------------------------------------------------------------------------------------------
794    HPN
-----------------------------------------------------------------------------------------------------------
795    SBS
-----------------------------------------------------------------------------------------------------------
796    TNM/DCN
-----------------------------------------------------------------------------------------------------------
797    SAN OSS
-----------------------------------------------------------------------------------------------------------
798   Phase 2-2
-----------------------------------------------------------------------------------------------------------
799    Phase 2-2 Intra
       SAN Test, R1.2 SW
       & Regression
-----------------------------------------------------------------------------------------------------------
800    Phase 2-2 Intra
       SAN Test, R2 SW &
       Regression
-----------------------------------------------------------------------------------------------------------
801    Phase 2-2 Inter SAN
-----------------------------------------------------------------------------------------------------------
802
-----------------------------------------------------------------------------------------------------------
803  SAN 12 - Brazil
-----------------------------------------------------------------------------------------------------------
804   Earliest Date for
      Equipment Delivery
-----------------------------------------------------------------------------------------------------------
805   San Site Ready For
      Access
-----------------------------------------------------------------------------------------------------------
806   Installation and
      Phase 2-1
-----------------------------------------------------------------------------------------------------------
807    RFT 1-5
-----------------------------------------------------------------------------------------------------------
808    MSSC
-----------------------------------------------------------------------------------------------------------
809    HPN
-----------------------------------------------------------------------------------------------------------
810    SBS
-----------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------
</TABLE>
PROJECT 18 NOV ICO MLS VER 39.MPP
DATE: 11/18/97

DOC: 770019 VERSION 3.9       PAGE 45         REVISED ON THE 12TH NOVEMBER, 1997
<PAGE>   1083

                   IGF PROJECT MASTER LEVEL SCHEDULE REV 3.9

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                                              1997
                                                            ------------------------------------------------------------------------
ID   TASK NAME                DUR     START     FINISH      F      M      A      M      J      J      A      S      O      N     D
------------------------------------------------------------------------------------------------------------------------------------
<S>  <C>                     <C>     <C>       <C>        <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
811    TNM/DCN                 30d      6/1/99     7/9/99
------------------------------------------------------------------------------------------------------------------------------------
812    SAN OSS                 30d      6/1/99     7/9/99
------------------------------------------------------------------------------------------------------------------------------------
813  SBS #12 Installation     601d      1/6/98    3/24/00
     and Phase 2-1 Testing
     (Top Level Milestone)
------------------------------------------------------------------------------------------------------------------------------------
814   Phase 2-2               134d      7/1/99   12/31/99
------------------------------------------------------------------------------------------------------------------------------------
815    Phase 2-2 Intra SAN     41d      7/1/99    8/25/99
       Test, R 1.2 SW &
       Regression
------------------------------------------------------------------------------------------------------------------------------------
816    Phase 2-2 Intra SAN     40d     8/30/99   10/22/99
       Test, R2 SW &
       Regression
------------------------------------------------------------------------------------------------------------------------------------
817    Phase 2-2 Inter SAN     64d     10/6/99   12/31/99
       (SANs 1-12)
------------------------------------------------------------------------------------------------------------------------------------
818
------------------------------------------------------------------------------------------------------------------------------------
819   PRIMARY NMC - JAPAN     215d      2/2/99   11/19/99
------------------------------------------------------------------------------------------------------------------------------------
820    Installation and        20d      2/2/99    2/25/99
       Phase 2-1 testing
       of HLR
------------------------------------------------------------------------------------------------------------------------------------
821    Installation and        20d      2/2/99    2/25/99
       Phase 2-1 Testing
       of AUC/EIR
------------------------------------------------------------------------------------------------------------------------------------
822    Installation and        20d     7/12/99     8/6/99
       Phase 2-1 Testing
       of Primary NMC
------------------------------------------------------------------------------------------------------------------------------------
823    Installation of         20d     9/13/99    10/8/99
       TMOS/OSS HW
------------------------------------------------------------------------------------------------------------------------------------
824    Integration and         65d      8/9/99    11/3/99
       Phase 2-1 Testing
       TMOS/OSS - NMC
------------------------------------------------------------------------------------------------------------------------------------
825    TMOS/OSS Phase 2-2      26d    10/18/99   11/19/99
       Testing
------------------------------------------------------------------------------------------------------------------------------------
826
------------------------------------------------------------------------------------------------------------------------------------
827   BACK UP NMC - ENGLAND    71d     9/13/99   12/17/99
------------------------------------------------------------------------------------------------------------------------------------
828    Installation of         20d     9/13/99    10/8/99
       TMOS/OSS HW
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
                                                                 1998
                             ------------------------------------------------------------------------------
ID  TASK NAME                J      F      M      A      M      J      J      A      S      O      N     D
-----------------------------------------------------------------------------------------------------------
<S> <C>                     <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
811    TNM/DCN
-----------------------------------------------------------------------------------------------------------
812    SAN OSS
-----------------------------------------------------------------------------------------------------------
813  SBS #12 Installation
     and Phase 2-1 Testing
     (Top Level Milestone)
-----------------------------------------------------------------------------------------------------------
814   Phase 2-2
-----------------------------------------------------------------------------------------------------------
815    Phase 2-2 Intra SAN
       Test, R 1.2 SW &
       Regression
-----------------------------------------------------------------------------------------------------------
816    Phase 2-2 Intra SAN
       Test, R2 SW &
       Regression
-----------------------------------------------------------------------------------------------------------
817    Phase 2-2 Inter SAN
       (SANs 1-12)
-----------------------------------------------------------------------------------------------------------
818
-----------------------------------------------------------------------------------------------------------
819   PRIMARY NMC - JAPAN
-----------------------------------------------------------------------------------------------------------
820    Installation and
       Phase 2-1 testing
       of HLR
-----------------------------------------------------------------------------------------------------------
821    Installation and
       Phase 2-1 Testing
       of AUC/EIR
-----------------------------------------------------------------------------------------------------------
822    Installation and
       Phase 2-1 Testing
       of Primary NMC
-----------------------------------------------------------------------------------------------------------
823    Installation of
       TMOS/OSS HW
-----------------------------------------------------------------------------------------------------------
824    Integration and
       Phase 2-1 Testing
       TMOS/OSS - NMC
-----------------------------------------------------------------------------------------------------------
825    TMOS/OSS Phase 2-2
       Testing
-----------------------------------------------------------------------------------------------------------
826
-----------------------------------------------------------------------------------------------------------
827   BACK UP NMC - ENGLAND
-----------------------------------------------------------------------------------------------------------
828    Installation of
       TMOS/OSS HW
-----------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
                                                                 1999
                             ------------------------------------------------------------------------------
ID  TASK NAME                J      F      M      A      M      J      J      A      S      O      N     D
-----------------------------------------------------------------------------------------------------------
<S> <C>                     <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
811    TNM/DCN
-----------------------------------------------------------------------------------------------------------
812    SAN OSS
-----------------------------------------------------------------------------------------------------------
813  SBS #12 Installation
     and Phase 2-1 Testing
     (Top Level Milestone)
-----------------------------------------------------------------------------------------------------------
814   Phase 2-2
-----------------------------------------------------------------------------------------------------------
815    Phase 2-2 Intra SAN
       Test, R 1.2 SW &
       Regression
-----------------------------------------------------------------------------------------------------------
816    Phase 2-2 Intra SAN
       Test, R2 SW &
       Regression
-----------------------------------------------------------------------------------------------------------
817    Phase 2-2 Inter SAN
       (SANs 1-12)
-----------------------------------------------------------------------------------------------------------
818
-----------------------------------------------------------------------------------------------------------
819   PRIMARY NMC - JAPAN
-----------------------------------------------------------------------------------------------------------
820    Installation and
       Phase 2-1 testing
       of HLR
-----------------------------------------------------------------------------------------------------------
821    Installation and
       Phase 2-1 Testing
       of AUC/EIR
-----------------------------------------------------------------------------------------------------------
822    Installation and
       Phase 2-1 Testing
       of Primary NMC
-----------------------------------------------------------------------------------------------------------
823    Installation of
       TMOS/OSS HW
-----------------------------------------------------------------------------------------------------------
824    Integration and
       Phase 2-1 Testing
       TMOS/OSS - NMC
-----------------------------------------------------------------------------------------------------------
825    TMOS/OSS Phase 2-2
       Testing
-----------------------------------------------------------------------------------------------------------
826
-----------------------------------------------------------------------------------------------------------
827   BACK UP NMC - ENGLAND
-----------------------------------------------------------------------------------------------------------
828    Installation of
       TMOS/OSS HW
-----------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
                                                                 2000
                             ------------------------------------------------------------------------------
ID  TASK NAME                J      F      M      A      M      J      J      A      S      O      N     D
-----------------------------------------------------------------------------------------------------------
<S> <C>                     <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
811    TNM/DCN
-----------------------------------------------------------------------------------------------------------
812    SAN OSS
-----------------------------------------------------------------------------------------------------------
813  SBS #12 Installation
     and Phase 2-1 Testing
     (Top Level Milestone)
-----------------------------------------------------------------------------------------------------------
814   Phase 2-2
-----------------------------------------------------------------------------------------------------------
815    Phase 2-2 Intra SAN
       Test, R 1.2 SW &
       Regression
-----------------------------------------------------------------------------------------------------------
816    Phase 2-2 Intra SAN
       Test, R2 SW &
       Regression
-----------------------------------------------------------------------------------------------------------
817    Phase 2-2 Inter SAN
       (SANs 1-12)
-----------------------------------------------------------------------------------------------------------
818
-----------------------------------------------------------------------------------------------------------
819   PRIMARY NMC - JAPAN
-----------------------------------------------------------------------------------------------------------
820    Installation and
       Phase 2-1 testing
       of HLR
-----------------------------------------------------------------------------------------------------------
821    Installation and
       Phase 2-1 Testing
       of AUC/EIR
-----------------------------------------------------------------------------------------------------------
822    Installation and
       Phase 2-1 Testing
       of Primary NMC
-----------------------------------------------------------------------------------------------------------
823    Installation of
       TMOS/OSS HW
-----------------------------------------------------------------------------------------------------------
824    Integration and
       Phase 2-1 Testing
       TMOS/OSS - NMC
-----------------------------------------------------------------------------------------------------------
825    TMOS/OSS Phase 2-2
       Testing
-----------------------------------------------------------------------------------------------------------
826
-----------------------------------------------------------------------------------------------------------
827   BACK UP NMC - ENGLAND
-----------------------------------------------------------------------------------------------------------
828    Installation of
       TMOS/OSS HW
-----------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------
</TABLE>

PROJECT: 18 NOV ICO MLS VER 39.MPP
DATE: 11/18/97

DOC: 770019 VERSION 3.9         PAGE 46       REVISED ON THE 12th NOVEMBER, 1997
<PAGE>   1084

                   IGF PROJECT MASTER LEVEL SCHEDULE REV 3.9

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                                              1997
                                                            ------------------------------------------------------------------------
ID  TASK NAME                DUR      START      FINISH      F      M      A      M      J      J      A      S      O      N     D
------------------------------------------------------------------------------------------------------------------------------------
<S> <C>                    <C>      <C>        <C>        <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
829  TMOS/OSS Phase
     2-2 Testing             26d    10/18/99    11/19/99
------------------------------------------------------------------------------------------------------------------------------------
830  Installation and Phase
     2-1 Testing of
     Back Up NMC             23d     11/1/99     12/1/99
------------------------------------------------------------------------------------------------------------------------------------
831  Integration and Phase
     2-1 Testing of
     TMOSS/OSS-NMC           20d    11/22/99    12/17/99
------------------------------------------------------------------------------------------------------------------------------------
832
------------------------------------------------------------------------------------------------------------------------------------
833  MESSAGING              459d      1/6/98      9/9/99
------------------------------------------------------------------------------------------------------------------------------------
834  ICO to identify
     Site for Messaging
     Platform                 0d      4/1/98      4/1/98
------------------------------------------------------------------------------------------------------------------------------------
835  Install Messaging
     Platform                30d     11/9/98    12/16/98
------------------------------------------------------------------------------------------------------------------------------------
836  Integration Phase
     2-1 Testing             60d      1/6/98     3/25/98
------------------------------------------------------------------------------------------------------------------------------------
837  Messaging R8
     Regression Test         30d      8/2/99      9/9/99
------------------------------------------------------------------------------------------------------------------------------------
838
------------------------------------------------------------------------------------------------------------------------------------
839  LEGAL INTERCEPTION     537d      4/1/98     3/24/00
------------------------------------------------------------------------------------------------------------------------------------
840  Install and Phase
     2-1 Testing of LIAS
     SAN'S 1-3               30d      9/1/99    10/12/99
------------------------------------------------------------------------------------------------------------------------------------
841  Install and Phase
     2-1 Testing of LIAS
     SAN'S 4-6               30d     9/15/99    10/26/99
------------------------------------------------------------------------------------------------------------------------------------
842  Install and Phase
     2-1 Testing of LIAS
     SAN'S 7-12              45d     9/30/99    11/30/99
------------------------------------------------------------------------------------------------------------------------------------
843  ICO to identify
     Site for LIM             0d      4/1/98      4/1/98
------------------------------------------------------------------------------------------------------------------------------------
844  Install and Phase
     2-1 Testing of LIMS     30d    11/15/99    12/24/99
------------------------------------------------------------------------------------------------------------------------------------
845  Integration Ph 2-1
     Testing                 60d     1/3/00      3/24/00
------------------------------------------------------------------------------------------------------------------------------------
846
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
                                                                 1998
                             ------------------------------------------------------------------------------
ID  TASK NAME                J      F      M      A      M      J      J      A      S      O      N     D
-----------------------------------------------------------------------------------------------------------
<S> <C>                     <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
829  TMOS/OSS Phase
     2-2 Testing
-----------------------------------------------------------------------------------------------------------
830  Installation and Phase
     2-1 Testing of
     Back Up NMC
-----------------------------------------------------------------------------------------------------------
831  Integration and Phase
     2-1 Testing of
     TMOSS/OSS-NMC
-----------------------------------------------------------------------------------------------------------
832
-----------------------------------------------------------------------------------------------------------
833  MESSAGING
-----------------------------------------------------------------------------------------------------------
834  ICO to identify
     Site for Messaging
     Platform                                    4/1
-----------------------------------------------------------------------------------------------------------
835  Install Messaging
     Platform
-----------------------------------------------------------------------------------------------------------
836  Integration Phase
     2-1 Testing
-----------------------------------------------------------------------------------------------------------
837  Messaging R8
     Regression Test
-----------------------------------------------------------------------------------------------------------
838
-----------------------------------------------------------------------------------------------------------
839  LEGAL INTERCEPTION
-----------------------------------------------------------------------------------------------------------
840  Install and Phase
     2-1 Testing of LIAS
     SAN'S 1-3
-----------------------------------------------------------------------------------------------------------
841  Install and Phase
     2-1 Testing of LIAS
     SAN'S 4-6
-----------------------------------------------------------------------------------------------------------
842  Install and Phase
     2-1 Testing of LIAS
     SAN'S 7-12
-----------------------------------------------------------------------------------------------------------
843  ICO to identify
     Site for LIM                                4/1
-----------------------------------------------------------------------------------------------------------
844  Install and Phase
     2-1 Testing of LIMS
-----------------------------------------------------------------------------------------------------------
845  Integration Ph 2-1
     Testing
-----------------------------------------------------------------------------------------------------------
846
-----------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------
                                                                  1999
                             -------------------------------------------------------------------------------
ID  TASK NAME                J      F      M      A      M      J      J      A      S      O     N     D
------------------------------------------------------------------------------------------------------------
<S> <C>                     <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>   <C>
829  TMOS/OSS Phase
     2-2 Testing
-----------------------------------------------------------------------------------------------------------
830  Installation and Phase
     2-1 Testing of
     Back Up NMC
-----------------------------------------------------------------------------------------------------------
831  Integration and Phase
     2-1 Testing of
     TMOSS/OSS-NMC
-----------------------------------------------------------------------------------------------------------
832
-----------------------------------------------------------------------------------------------------------
833  MESSAGING
-----------------------------------------------------------------------------------------------------------
834  ICO to identify
     site for Messaging
     Platform
-----------------------------------------------------------------------------------------------------------
835  Install Messaging
     Platform
-----------------------------------------------------------------------------------------------------------
836  Integration Phase
     2-1 Testing
-----------------------------------------------------------------------------------------------------------
837  Messaging R8
     Regression Test
-----------------------------------------------------------------------------------------------------------
838
-----------------------------------------------------------------------------------------------------------
839  LEGAL INTERCEPTION
-----------------------------------------------------------------------------------------------------------
840  Install and Phase
     2-1 Testing of LIAS
     SAN'S 1-3
-----------------------------------------------------------------------------------------------------------
841  Install and Phase
     2-1 Testing of LIAS
     SAN'S 4-6
-----------------------------------------------------------------------------------------------------------
842  Install and Phase
     2-1 Testing of LIAS
     SAN'S 7-12
-----------------------------------------------------------------------------------------------------------
843  ICO to identify
     Site for LIM
-----------------------------------------------------------------------------------------------------------
844  Install and Phase
     2-1 Testing of LIMS
-----------------------------------------------------------------------------------------------------------
845  Integration Ph 2-1
     Testing
-----------------------------------------------------------------------------------------------------------
846
------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
                                                                 2000
                            -------------------------------------------------------------------------------
ID  TASK NAME               J      F      M      A      M      J      J      A      S      O     N     D
-----------------------------------------------------------------------------------------------------------
<S> <C>                    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>   <C>
829  TMOS/OSS Phase
     2-2 Testing
-----------------------------------------------------------------------------------------------------------
830  Installation and Phase
     2-1 Testing of
     Back Up NMC
-----------------------------------------------------------------------------------------------------------
831  Integration and Phase
     2-1 Testing of
     TMOSS/OSS-NMC
-----------------------------------------------------------------------------------------------------------
832
-----------------------------------------------------------------------------------------------------------
833  MESSAGING
-----------------------------------------------------------------------------------------------------------
834  ICO to identify
     Site for Messaging
     Platform
-----------------------------------------------------------------------------------------------------------
835  Install Messaging
     Platform
-----------------------------------------------------------------------------------------------------------
836  Integration Phase
     2-1 Testing
-----------------------------------------------------------------------------------------------------------
837  Messaging R8
     Regression Test
-----------------------------------------------------------------------------------------------------------
838
-----------------------------------------------------------------------------------------------------------
839  LEGAL INTERCEPTION
-----------------------------------------------------------------------------------------------------------
840  Install and Phase
     2-1 Testing of LIAS
     SAN'S 1-3
-----------------------------------------------------------------------------------------------------------
841  Install and Phase
     2-1 Testing of LIAS
     SAN'S 4-6
-----------------------------------------------------------------------------------------------------------
842  Install and Phase
     2-1 Testing of LIAS
     SAN'S 7-12
-----------------------------------------------------------------------------------------------------------
843  ICO to identify
     Site for LIM
-----------------------------------------------------------------------------------------------------------
844  Install and Phase
     2-1 Testing of LIMS
-----------------------------------------------------------------------------------------------------------
845  Integration Ph 2-1
     Testing
-----------------------------------------------------------------------------------------------------------
846
----------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------
</TABLE>
PROJECT: 18 NOV ICO MLS VER 39.MPP
DATE: 11/18/97

DOC: 770019 VERSION 3.9       PAGE 47         REVISED ON THE 12TH NOVEMBER, 1997
<PAGE>   1085

                   IGF PROJECT MASTER LEVEL SCHEDULE REV 3.9

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                                              1997
                                                            ------------------------------------------------------------------------
ID  TASK NAME                DUR      START      FINISH      F      M      A      M      J      J      A      S      O      N     D
------------------------------------------------------------------------------------------------------------------------------------
<S> <C>                    <C>      <C>        <C>        <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
847  PHASE 3 ACCEPTANCE
     TESTING                161d      1/3/00     8/11/00
------------------------------------------------------------------------------------------------------------------------------------
848  One SAN - Australia
     - Brisbane              85d      1/3/00     4/28/00
------------------------------------------------------------------------------------------------------------------------------------
849  One NMC (Primary -
     Japan)                  85d      1/3/00     4/28/00
------------------------------------------------------------------------------------------------------------------------------------
850  Two SAN - Australia
     & Indonesia            108d      1/4/00     5/31/00
------------------------------------------------------------------------------------------------------------------------------------
851  Three SAN -
     Australia, Indonesia
     and Korea              130d      1/4/00     6/30/00
------------------------------------------------------------------------------------------------------------------------------------
852  Six SAN - Australia,
     Indonesia and Korea
     plus 3 Other SANs      151d      1/4/00     7/31/00
------------------------------------------------------------------------------------------------------------------------------------
853  12 SAN & 2 NMC         160d      1/4/00     8/11/00
------------------------------------------------------------------------------------------------------------------------------------
854  ILR Phase 3             66d      2/1/00      5/1/00
------------------------------------------------------------------------------------------------------------------------------------
855  Messaging Phase 3       65d      2/1/00     4/30/00
------------------------------------------------------------------------------------------------------------------------------------
856  Legal Interception
     Phase 3 Demonstration   93d     3/27/00      8/1/00
------------------------------------------------------------------------------------------------------------------------------------
857
------------------------------------------------------------------------------------------------------------------------------------
858  OTHER ACTIVITIES
     OUTSIDE IGF SOW          1d     2/11/97     2/11/97
------------------------------------------------------------------------------------------------------------------------------------
859  PSTN Integration TBD     1d     2/11/97     2/11/97
------------------------------------------------------------------------------------------------------------------------------------
860  ADC Integration TBD      1d     2/11/97     2/11/97
------------------------------------------------------------------------------------------------------------------------------------
861
------------------------------------------------------------------------------------------------------------------------------------
862  TRAINING                 0d     2/28/97     2/28/97    2/28
------------------------------------------------------------------------------------------------------------------------------------
863  Agree Detailed
     Training Plan            0d    12/31/97    12/31/97                                                                       12/31
------------------------------------------------------------------------------------------------------------------------------------
864  Training Course 1
     SAN O&M                522d     1/19/98    12/17/99
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
                                                                 1998
                             ------------------------------------------------------------------------------
ID  TASK NAME                J      F      M      A      M      J      J      A      S      O      N     D
-----------------------------------------------------------------------------------------------------------
<S> <C>                     <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
847  PHASE 3 ACCEPTANCE
     TESTING
-----------------------------------------------------------------------------------------------------------
848  One SAN - Australia
     - Brisbane
-----------------------------------------------------------------------------------------------------------
849  One NMC (Primary -
     Japan)
-----------------------------------------------------------------------------------------------------------
850  Two SAN - Australia
     & Indonesia
-----------------------------------------------------------------------------------------------------------
851  Three SAN -
     Australia, Indonesia
     and Korea
-----------------------------------------------------------------------------------------------------------
852  Six SAN - Australia,
     Indonesia and Korea
     Plus 3 Other SANs
-----------------------------------------------------------------------------------------------------------
853  12 SAN & 2 NMC
-----------------------------------------------------------------------------------------------------------
854  ILR Phase 3
-----------------------------------------------------------------------------------------------------------
855  Messaging Phase 3
-----------------------------------------------------------------------------------------------------------
856  Legal Interception
     Phase 3 Demonstration
-----------------------------------------------------------------------------------------------------------
857
-----------------------------------------------------------------------------------------------------------
858  OTHER ACTIVITIES
     OUTSIDE IGF SOW
-----------------------------------------------------------------------------------------------------------
859  PSTN Integration TBD
-----------------------------------------------------------------------------------------------------------
860  ADC Integration TBD
-----------------------------------------------------------------------------------------------------------
861
-----------------------------------------------------------------------------------------------------------
862  TRAINING
-----------------------------------------------------------------------------------------------------------
863  Agree Detailed
     Training Plan
-----------------------------------------------------------------------------------------------------------
864  Training Course 1
     SAN O&M
-----------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------
                                                                  1999
                             -------------------------------------------------------------------------------
ID  TASK NAME                J      F      M      A      M      J      J      A      S      O     N     D
------------------------------------------------------------------------------------------------------------
<S> <C>                     <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>   <C>
847  PHASE 3 ACCEPTANCE
     TESTING
-----------------------------------------------------------------------------------------------------------
848  One SAN - Australia
     - Brisbane
-----------------------------------------------------------------------------------------------------------
849  One NMC (Primary -
     Japan)
-----------------------------------------------------------------------------------------------------------
850  Two SAN - Australia
     & Indonesia
-----------------------------------------------------------------------------------------------------------
851  Three SAN -
     Australia, Indonesia
     and Korea
-----------------------------------------------------------------------------------------------------------
852  Six SAN - Australia,
     Indonesia and Korea
     Plus 3 Other SANs
-----------------------------------------------------------------------------------------------------------
853  12 SAN & 2 NMC
-----------------------------------------------------------------------------------------------------------
854  ILR Phase 3
-----------------------------------------------------------------------------------------------------------
855  Messaging Phase 3
-----------------------------------------------------------------------------------------------------------
856  Legal Interception
     Phase 3 Demonstration
-----------------------------------------------------------------------------------------------------------
857
-----------------------------------------------------------------------------------------------------------
858  OTHER ACTIVITIES
     OUTSIDE IGF SOW
-----------------------------------------------------------------------------------------------------------
859  PSTN Integration TBD
-----------------------------------------------------------------------------------------------------------
860  ADC Integration TBD
-----------------------------------------------------------------------------------------------------------
861
-----------------------------------------------------------------------------------------------------------
862  TRAINING
-----------------------------------------------------------------------------------------------------------
863  Agree Detailed
     Training Plan
-----------------------------------------------------------------------------------------------------------
864  Training Course 1
     SAN O&M
------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
                                                                 2000
                            -------------------------------------------------------------------------------
ID  TASK NAME               J      F      M      A      M      J      J      A      S      O     N     D
-----------------------------------------------------------------------------------------------------------
<S> <C>                    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>   <C>
847  PHASE 3 ACCEPTANCE
     TESTING
-----------------------------------------------------------------------------------------------------------
848  One SAN - Australia
     - Brisbane
-----------------------------------------------------------------------------------------------------------
849  One NMC (Primary -
     Japan)
-----------------------------------------------------------------------------------------------------------
850  Two SAN - Australia
     & Indonesia
-----------------------------------------------------------------------------------------------------------
851  Three SAN -
     Australia, Indonesia
     and Korea
-----------------------------------------------------------------------------------------------------------
852  Six SAN - Australia,
     Indonesia and Korea
     Plus 3 Other SANs
-----------------------------------------------------------------------------------------------------------
853  12 SAN & 2 NMC
-----------------------------------------------------------------------------------------------------------
854  ILR Phase 3
-----------------------------------------------------------------------------------------------------------
855  Messaging Phase 3
-----------------------------------------------------------------------------------------------------------
856  Legal Interception
     Phase 3 Demonstration
-----------------------------------------------------------------------------------------------------------
857
-----------------------------------------------------------------------------------------------------------
858  OTHER ACTIVITIES
     OUTSIDE IGF SOW
-----------------------------------------------------------------------------------------------------------
859  PSTN Integration TBD
-----------------------------------------------------------------------------------------------------------
860  ADC Integration TBD
-----------------------------------------------------------------------------------------------------------
861
-----------------------------------------------------------------------------------------------------------
862  TRAINING
-----------------------------------------------------------------------------------------------------------
863  Agree Detailed
     Training Plan
-----------------------------------------------------------------------------------------------------------
864  Training Course 1
     SAN O&M
----------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------
</TABLE>
PROJECT: 18 NOV ICO MLS VER 39.MPP
DATE: 11/18/97

DOC: 770019 VERSION 3.9       PAGE 48         REVISED ON THE 12TH NOVEMBER, 1997
<PAGE>   1086

                   IGF PROJECT MASTER LEVEL SCHEDULE REV 3.9

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                                              1997
                                                            ------------------------------------------------------------------------
ID  TASK NAME                DUR     START      FINISH       F      M      A      M      J      J      A      S      O      N     D
------------------------------------------------------------------------------------------------------------------------------------
<S> <C>                    <C>     <C>        <C>         <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
865 USA SAN 1              410d      1/19/98    7/16/99
------------------------------------------------------------------------------------------------------------------------------------
866   RFT                   10d      1/19/98    1/30/98
------------------------------------------------------------------------------------------------------------------------------------
867   MSSC/HPN              56d     11/12/98    1/25/99
------------------------------------------------------------------------------------------------------------------------------------
868   SBS/TNM/SAN-OSS       36d     5/31/99     7/16/99
------------------------------------------------------------------------------------------------------------------------------------
869 INDIA SAN 2            420d     1/19/98     7/30/99
------------------------------------------------------------------------------------------------------------------------------------
870   RFT                   10d     1/19/98    11/30/98
------------------------------------------------------------------------------------------------------------------------------------
871   MSSC/HPN              56d    11/12/98     1/25/99
------------------------------------------------------------------------------------------------------------------------------------
872   SBS/TNM/SAN-OSS       36d     6/14/99     7/30/99
------------------------------------------------------------------------------------------------------------------------------------
873 AUSTRALIA SAN 3        408d     2/16/98     8/13/99
------------------------------------------------------------------------------------------------------------------------------------
874   RFT                   10d     2/16/98     2/27/98
------------------------------------------------------------------------------------------------------------------------------------
875   MSSC/HPN              56d    11/10/98     1/22/99
------------------------------------------------------------------------------------------------------------------------------------
876   SBS/TNM/SAN-OSS       35d     6/28/99     8/13/99
------------------------------------------------------------------------------------------------------------------------------------
877 S. AFRICA SAN 4        403d      3/9/98     8/27/99
------------------------------------------------------------------------------------------------------------------------------------
878   RFT                   10d      3/9/98     3/20/98
------------------------------------------------------------------------------------------------------------------------------------
879   MSSC/HPN              53d    12/24/98      3/1/99
------------------------------------------------------------------------------------------------------------------------------------
880   SBS/TNM/SAN-OSS       36d     7/12/99     8/27/99
------------------------------------------------------------------------------------------------------------------------------------
881 CHILE SAN 5            408d     3/16/98     9/10/99
------------------------------------------------------------------------------------------------------------------------------------
882   RFT                   10d     3/16/98     3/27/98
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
                                                                 1998
                             ------------------------------------------------------------------------------
ID  TASK NAME                J      F      M      A      M      J      J      A      S      O      N     D
-----------------------------------------------------------------------------------------------------------
<S> <C>                     <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
865 USA SAN 1
-----------------------------------------------------------------------------------------------------------
866   RFT
-----------------------------------------------------------------------------------------------------------
867   MSSC/HPN
-----------------------------------------------------------------------------------------------------------
868   SBS/TNM/SAN-OSS
-----------------------------------------------------------------------------------------------------------
869 INDIA SAN 2
-----------------------------------------------------------------------------------------------------------
870   RFT
-----------------------------------------------------------------------------------------------------------
871   MSSC/HPN
-----------------------------------------------------------------------------------------------------------
872   SBS/TNM/SAN-0SS
-----------------------------------------------------------------------------------------------------------
873 AUSTRALIA SAN 3
-----------------------------------------------------------------------------------------------------------
874   RFT
-----------------------------------------------------------------------------------------------------------
875   MSSC/HPN
-----------------------------------------------------------------------------------------------------------
876   SBS/TNM/SAN-OSS
-----------------------------------------------------------------------------------------------------------
877 S. AFRICA SAN 4
-----------------------------------------------------------------------------------------------------------
878   RFT
-----------------------------------------------------------------------------------------------------------
879   MSSC/HPN
-----------------------------------------------------------------------------------------------------------
880   SBS/TNM/SAN-OSS
-----------------------------------------------------------------------------------------------------------
881 CHILE SAN 5
----------------------------------------------------------------------------------------------------------
882   RFT
----------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
                                                                 1999
                             ------------------------------------------------------------------------------
ID  TASK NAME                J      F      M      A      M      J      J      A      S      O      N     D
-----------------------------------------------------------------------------------------------------------
<S> <C>                     <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
865 USA SAN 1
-----------------------------------------------------------------------------------------------------------
866   RFT
-----------------------------------------------------------------------------------------------------------
867   MSSC/HPN
-----------------------------------------------------------------------------------------------------------
868   SBS/TNM/SAN-OSS
-----------------------------------------------------------------------------------------------------------
869 INDIA SAN 2
-----------------------------------------------------------------------------------------------------------
870   RFT
-----------------------------------------------------------------------------------------------------------
871   MSSC/HPN
-----------------------------------------------------------------------------------------------------------
872   SBS/TNM/SAN-0SS
-----------------------------------------------------------------------------------------------------------
873 AUSTRALIA SAN 3
-----------------------------------------------------------------------------------------------------------
874   RFT
-----------------------------------------------------------------------------------------------------------
875   MSSC/HPN
-----------------------------------------------------------------------------------------------------------
876   SBS/TNM/SAN-OSS
-----------------------------------------------------------------------------------------------------------
877 S. AFRICA SAN 4
-----------------------------------------------------------------------------------------------------------
878   RFT
-----------------------------------------------------------------------------------------------------------
879   MSSC/HPN
-----------------------------------------------------------------------------------------------------------
880   SBS/TNM/SAN-OSS
-----------------------------------------------------------------------------------------------------------
881 CHILE SAN 5
----------------------------------------------------------------------------------------------------------
882   RFT
----------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
                                                                 2000
                             ------------------------------------------------------------------------------
ID  TASK NAME                J      F      M      A      M      J      J      A      S      O      N     D
-----------------------------------------------------------------------------------------------------------
<S> <C>                     <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
865 USA SAN 1
-----------------------------------------------------------------------------------------------------------
866   RFT
-----------------------------------------------------------------------------------------------------------
867   MSSC/HPN
-----------------------------------------------------------------------------------------------------------
868   SBS/TNM/SAN-OSS
-----------------------------------------------------------------------------------------------------------
869 INDIA SAN 2
-----------------------------------------------------------------------------------------------------------
870   RFT
-----------------------------------------------------------------------------------------------------------
871   MSSC/HPN
-----------------------------------------------------------------------------------------------------------
872   SBS/TNM/SAN-0SS
-----------------------------------------------------------------------------------------------------------
873 AUSTRALIA SAN 3
-----------------------------------------------------------------------------------------------------------
874   RFT
-----------------------------------------------------------------------------------------------------------
875   MSSC/HPN
-----------------------------------------------------------------------------------------------------------
876   SBS/TNM/SAN-OSS
-----------------------------------------------------------------------------------------------------------
877 S. AFRICA SAN 4
-----------------------------------------------------------------------------------------------------------
878   RFT
-----------------------------------------------------------------------------------------------------------
879   MSSC/HPN
-----------------------------------------------------------------------------------------------------------
880   SBS/TNM/SAN-OSS
-----------------------------------------------------------------------------------------------------------
881 CHILE SAN 5
----------------------------------------------------------------------------------------------------------
882   RFT
----------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------
</TABLE>

PROJECT: 18 NOV ICO MLS VER 39.MPP
DATE: 11/18/97

DOC: 770019 VERSION 3.9       PAGE 49         REVISED ON THE 12TH NOVEMBER, 1997
<PAGE>   1087

                   IGF PROJECT MASTER LEVEL SCHEDULE REV 3.9

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                                              1997
                                                            ------------------------------------------------------------------------
ID  TASK NAME                DUR     START      FINISH       F      M      A      M      J      J      A      S      O      N     D
------------------------------------------------------------------------------------------------------------------------------------
<S> <C>                    <C>     <C>        <C>         <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
883   MSSC/HPN              53d     12/24/98     3/1/99
------------------------------------------------------------------------------------------------------------------------------------
884   SBS/TNM/SAN-OSS       36d      7/26/99    9/10/99
------------------------------------------------------------------------------------------------------------------------------------
885 GERMANY SAN 6          418d      3/16/98    9/24/99
------------------------------------------------------------------------------------------------------------------------------------
886   RFT                   10d     3/16/98     3/27/98
------------------------------------------------------------------------------------------------------------------------------------
887   MSSC/HPN              53d    12/24/98      3/1/99
------------------------------------------------------------------------------------------------------------------------------------
888   SBS/TNM/SAN-OSS       36d      8/9/99     9/24/99
------------------------------------------------------------------------------------------------------------------------------------
889 INDONESIA SAN 7        238d    11/23/98     10/8/99
------------------------------------------------------------------------------------------------------------------------------------
890   RFT                   10d    11/23/98     12/4/98
------------------------------------------------------------------------------------------------------------------------------------
891   MSSC/HPN              50d     2/11/99     4/16/99
------------------------------------------------------------------------------------------------------------------------------------
892   SBS/TNM/SAN-OSS       35d     8/23/99     10/8/99
------------------------------------------------------------------------------------------------------------------------------------
893 KOREA SAN 8            254d    11/16/98    10/22/99
------------------------------------------------------------------------------------------------------------------------------------
894   RFT                   10d    11/16/98    11/26/98
------------------------------------------------------------------------------------------------------------------------------------
895   MSSC/HPN              50d     2/11/99     4/16/99
------------------------------------------------------------------------------------------------------------------------------------
896   SBS/TNM/SAN-OSS       35d      9/6/99    10/22/99
------------------------------------------------------------------------------------------------------------------------------------
897 MEXICO SAN 9           198d     2/11/99     11/5/99
------------------------------------------------------------------------------------------------------------------------------------
898   RFT                   10d     3/29/99      4/9/99
------------------------------------------------------------------------------------------------------------------------------------
899   MSSC/HPN              50d     2/11/99     4/16/99
------------------------------------------------------------------------------------------------------------------------------------
900   SBS/TNM/SAN-OSS       36d     9/20/99     11/5/99
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
                                                                 1998
                             ------------------------------------------------------------------------------
ID  TASK NAME                J      F      M      A      M      J      J      A      S      O      N     D
-----------------------------------------------------------------------------------------------------------
<S> <C>                     <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
883   MSSC/HPN
-----------------------------------------------------------------------------------------------------------
884   SBS/TNM/SAN-OSS
-----------------------------------------------------------------------------------------------------------
885 GERMANY SAN 6
-----------------------------------------------------------------------------------------------------------
886   RFT
-----------------------------------------------------------------------------------------------------------
887   MSSC/HPN
-----------------------------------------------------------------------------------------------------------
888   SBS/TNM/SAN-OSS
-----------------------------------------------------------------------------------------------------------
889 INDONESIA SAN 7
-----------------------------------------------------------------------------------------------------------
890   RFT
-----------------------------------------------------------------------------------------------------------
891   MSSC/HPN
-----------------------------------------------------------------------------------------------------------
892   SBS/TNM/SAN-OSS
-----------------------------------------------------------------------------------------------------------
893 KOREA SAN 8
-----------------------------------------------------------------------------------------------------------
894   RFT
-----------------------------------------------------------------------------------------------------------
895   MSSC/HPN
-----------------------------------------------------------------------------------------------------------
896   SBS/TNM/SAN-OSS
-----------------------------------------------------------------------------------------------------------
897 MEXICO SAN 9
-----------------------------------------------------------------------------------------------------------
898   RFT
-----------------------------------------------------------------------------------------------------------
899   MSSC/HPN
----------------------------------------------------------------------------------------------------------
900   SBS/TNM/SAN-OSS
----------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
                                                                 1999
                             ------------------------------------------------------------------------------
ID  TASK NAME                J      F      M      A      M      J      J      A      S      O      N     D
-----------------------------------------------------------------------------------------------------------
<S> <C>                     <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
883   MSSC/HPN
-----------------------------------------------------------------------------------------------------------
884   SBS/TNM/SAN-OSS
-----------------------------------------------------------------------------------------------------------
885 GERMANY SAN 6
-----------------------------------------------------------------------------------------------------------
886   RFT
-----------------------------------------------------------------------------------------------------------
887   MSSC/HPN
-----------------------------------------------------------------------------------------------------------
888   SBS/TNM/SAN-OSS
-----------------------------------------------------------------------------------------------------------
889 INDONESIA SAN 7
-----------------------------------------------------------------------------------------------------------
890   RFT
-----------------------------------------------------------------------------------------------------------
891   MSSC/HPN
-----------------------------------------------------------------------------------------------------------
892   SBS/TNM/SAN-OSS
-----------------------------------------------------------------------------------------------------------
893 KOREA SAN 8
-----------------------------------------------------------------------------------------------------------
894   RFT
-----------------------------------------------------------------------------------------------------------
895   MSSC/HPN
-----------------------------------------------------------------------------------------------------------
896   SBS/TNM/SAN-OSS
-----------------------------------------------------------------------------------------------------------
897 MEXICO SAN 9
-----------------------------------------------------------------------------------------------------------
898   RFT
-----------------------------------------------------------------------------------------------------------
899   MSSC/HPN
----------------------------------------------------------------------------------------------------------
900   SBS/TNM/SAN-OSS
----------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
                                                                 2000
                             ------------------------------------------------------------------------------
ID  TASK NAME                J      F      M      A      M      J      J      A      S      O      N     D
-----------------------------------------------------------------------------------------------------------
<S> <C>                     <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
883   MSSC/HPN
-----------------------------------------------------------------------------------------------------------
884   SBS/TNM/SAN-OSS
-----------------------------------------------------------------------------------------------------------
885 GERMANY SAN 6
-----------------------------------------------------------------------------------------------------------
886   RFT
-----------------------------------------------------------------------------------------------------------
887   MSSC/HPN
-----------------------------------------------------------------------------------------------------------
888   SBS/TNM/SAN-OSS
-----------------------------------------------------------------------------------------------------------
889 INDONESIA SAN 7
-----------------------------------------------------------------------------------------------------------
890   RFT
-----------------------------------------------------------------------------------------------------------
891   MSSC/HPN
-----------------------------------------------------------------------------------------------------------
892   SBS/TNM/SAN-OSS
-----------------------------------------------------------------------------------------------------------
893 KOREA SAN 8
-----------------------------------------------------------------------------------------------------------
894   RFT
-----------------------------------------------------------------------------------------------------------
895   MSSC/HPN
-----------------------------------------------------------------------------------------------------------
896   SBS/TNM/SAN-OSS
-----------------------------------------------------------------------------------------------------------
897 MEXICO SAN 9
-----------------------------------------------------------------------------------------------------------
898   RFT
-----------------------------------------------------------------------------------------------------------
899   MSSC/HPN
----------------------------------------------------------------------------------------------------------
900   SBS/TNM/SAN-OSS
----------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------
</TABLE>

PROJECT: 18 NOV ICO MLS VER 39.MPP
DATE: 11/18/97

DOC: 770019 VERSION 3.9       PAGE 50         REVISED ON THE 12TH NOVEMBER, 1997
<PAGE>   1088
                   IGF PROJECT MASTER LEVEL SCHEDULE REV 3.9

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                                              1997
                                                            ------------------------------------------------------------------------
ID   TASK NAME               DUR      START      FINISH      F      M      A      M      J      J      A      S      O      N     D
------------------------------------------------------------------------------------------------------------------------------------
<S>  <C>                    <C>     <C>        <C>         <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
901  UAE SAN 10             208d     2/11/99    11/19/99
------------------------------------------------------------------------------------------------------------------------------------
902  RFT                     10d      3/1/99     3/12/99
------------------------------------------------------------------------------------------------------------------------------------
903  MSSC/HPN                50d     2/11/99     4/16/99
------------------------------------------------------------------------------------------------------------------------------------
904  SBS/TNM/SAN-OSS         36d     10/4/99    11/19/99
------------------------------------------------------------------------------------------------------------------------------------
905  CHINA SAN 11           166d     4/21/99     12/3/99
------------------------------------------------------------------------------------------------------------------------------------
906  RFT                     10d     7/26/99      8/6/99
------------------------------------------------------------------------------------------------------------------------------------
907  MSSC/HPN                60d     4/21/99     7/12/99
------------------------------------------------------------------------------------------------------------------------------------
908  SBS/TNM/SAN-OSS         36d    10/18/99     12/3/99
------------------------------------------------------------------------------------------------------------------------------------
909  BRAZIL SAN 12          176d     4/21/99    12/17/99
------------------------------------------------------------------------------------------------------------------------------------
910  RFT                     10d     7/26/99      8/6/99
------------------------------------------------------------------------------------------------------------------------------------
911  MSSC/HPN                60d     4/21/99     7/12/99
------------------------------------------------------------------------------------------------------------------------------------
912  SBS/TNM/SAN-OSS         35d     11/1/99    12/17/99
------------------------------------------------------------------------------------------------------------------------------------
913
------------------------------------------------------------------------------------------------------------------------------------
914  TRAINING COURSE 3
      NMC OPERATIONS &
      MAINTENANCE            25d     7/10/00     8/11/00
------------------------------------------------------------------------------------------------------------------------------------
915  MODULE B2 AT ONE NMC    25d     7/10/00     8/11/00
------------------------------------------------------------------------------------------------------------------------------------
916
------------------------------------------------------------------------------------------------------------------------------------
917  TRAINING COURSE 2
      ICO INSTRUCTORS       327d      8/9/99     11/2/00
------------------------------------------------------------------------------------------------------------------------------------
918  RFT - SAN SITE TO
     BE DETERMINED            5d      8/9/99     8/13/99
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
                                                                          1998
                                     ----------------------------------------------------------------------------------
ID     TASK NAME                       J      F      M      A      M      J      J      A      S      O      N      D
-----------------------------------------------------------------------------------------------------------------------
<S>  <C>                             <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>
901  UAE SAN 10
-----------------------------------------------------------------------------------------------------------------------
902  RFT
-----------------------------------------------------------------------------------------------------------------------
903  MSSC/HPN
-----------------------------------------------------------------------------------------------------------------------
904  SBS/TNM/SAN-OSS
-----------------------------------------------------------------------------------------------------------------------
905  CHINA SAN 11
-----------------------------------------------------------------------------------------------------------------------
906  RFT
-----------------------------------------------------------------------------------------------------------------------
907  MSSC/HPN
-----------------------------------------------------------------------------------------------------------------------
908  SBS/TNM/SAN-OSS
-----------------------------------------------------------------------------------------------------------------------
909  BRAZIL SAN 12
-----------------------------------------------------------------------------------------------------------------------
910  RFT
-----------------------------------------------------------------------------------------------------------------------
911  MSSC/HPN
-----------------------------------------------------------------------------------------------------------------------
912  SBS/TNM/SAN-OSS
-----------------------------------------------------------------------------------------------------------------------
913
-----------------------------------------------------------------------------------------------------------------------
914  TRAINING COURSE 3
      NMC OPERATIONS &
      MAINTENANCE
-----------------------------------------------------------------------------------------------------------------------
915  MODULE B2 AT ONE NMC
-----------------------------------------------------------------------------------------------------------------------
916
-----------------------------------------------------------------------------------------------------------------------
917  TRAINING COURSE 2
      ICO INSTRUCTORS
-----------------------------------------------------------------------------------------------------------------------
918  RFT - SAN SITE TO
     BE DETERMINED
-----------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
                                                                          1999
                                     ----------------------------------------------------------------------------------
ID     TASK NAME                       J      F      M      A      M      J      J      A      S      O      N      D
-----------------------------------------------------------------------------------------------------------------------
<S>  <C>                             <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>
901  UAE SAN 10
-----------------------------------------------------------------------------------------------------------------------
902  RFT
-----------------------------------------------------------------------------------------------------------------------
903  MSSC/HPN
-----------------------------------------------------------------------------------------------------------------------
904  SBS/TNM/SAN-OSS
-----------------------------------------------------------------------------------------------------------------------
905  CHINA SAN 11
-----------------------------------------------------------------------------------------------------------------------
906  RFT
-----------------------------------------------------------------------------------------------------------------------
907  MSSC/HPN
-----------------------------------------------------------------------------------------------------------------------
908  SBS/TNM/SAN-OSS
-----------------------------------------------------------------------------------------------------------------------
909  BRAZIL SAN 12
-----------------------------------------------------------------------------------------------------------------------
910  RFT
-----------------------------------------------------------------------------------------------------------------------
911  MSSC/HPN
-----------------------------------------------------------------------------------------------------------------------
912  SBS/TNM/SAN-OSS
-----------------------------------------------------------------------------------------------------------------------
913
-----------------------------------------------------------------------------------------------------------------------
914  TRAINING COURSE 3
      NMC OPERATIONS &
      MAINTENANCE
-----------------------------------------------------------------------------------------------------------------------
915  MODULE B2 AT ONE NMC
-----------------------------------------------------------------------------------------------------------------------
916
-----------------------------------------------------------------------------------------------------------------------
917  TRAINING COURSE 2
      ICO INSTRUCTORS
-----------------------------------------------------------------------------------------------------------------------
918  RFT - SAN SITE TO
     BE DETERMINED
-----------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
                                                                          2000
                                     ----------------------------------------------------------------------------------
ID     TASK NAME                       J      F      M      A      M      J      J      A      S      O      N      D
-----------------------------------------------------------------------------------------------------------------------
<S>  <C>                             <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>
901  UAE SAN 10
-----------------------------------------------------------------------------------------------------------------------
902  RFT
-----------------------------------------------------------------------------------------------------------------------
903  MSSC/HPN
-----------------------------------------------------------------------------------------------------------------------
904  SBS/TNM/SAN-OSS
-----------------------------------------------------------------------------------------------------------------------
905  CHINA SAN 11
-----------------------------------------------------------------------------------------------------------------------
906  RFT
-----------------------------------------------------------------------------------------------------------------------
907  MSSC/HPN
-----------------------------------------------------------------------------------------------------------------------
908  SBS/TNM/SAN-OSS
-----------------------------------------------------------------------------------------------------------------------
909  BRAZIL SAN 12
-----------------------------------------------------------------------------------------------------------------------
910  RFT
-----------------------------------------------------------------------------------------------------------------------
911  MSSC/HPN
-----------------------------------------------------------------------------------------------------------------------
912  SBS/TNM/SAN-OSS
-----------------------------------------------------------------------------------------------------------------------
913
-----------------------------------------------------------------------------------------------------------------------
914  TRAINING COURSE 3
      NMC OPERATIONS &
      MAINTENANCE
-----------------------------------------------------------------------------------------------------------------------
915  MODULE B2 AT ONE NMC
-----------------------------------------------------------------------------------------------------------------------
916
-----------------------------------------------------------------------------------------------------------------------
917  TRAINING COURSE 2
      ICO INSTRUCTORS
-----------------------------------------------------------------------------------------------------------------------
918  RFT - SAN SITE TO
     BE DETERMINED
-----------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------
</TABLE>

PROJECT 18: NOV ICO MLS VER 39.MPP
DATE: 11/18/97

DOC: 770019 VERSION 3.9       PAGE 51         REVISED ON THE 12TH NOVEMBER, 1997
<PAGE>   1089
                   IGF PROJECT MASTER LEVEL SCHEDULE REV 3.9

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                                              1997
                                                             -----------------------------------------------------------------------
ID   TASK NAME                DUR      START      FINISH     F      M      A      M      J      J      A      S      O      N     D
------------------------------------------------------------------------------------------------------------------------------------
<S>  <C>                     <C>     <C>        <C>        <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
919  Module C1 at a Single
      SAN                     59d     8/14/00     11/2/00
------------------------------------------------------------------------------------------------------------------------------------
920  Modue C2 at one NMC      20d     8/14/00      9/8/00
------------------------------------------------------------------------------------------------------------------------------------
921
------------------------------------------------------------------------------------------------------------------------------------
922  END-TO-END DEMONSTRATION
      FROM ONE SAN (TLM)       0d      1/3/00      3/1/00
------------------------------------------------------------------------------------------------------------------------------------
923
------------------------------------------------------------------------------------------------------------------------------------
924  12 SANs & 2 NMC
      HANDOVER (TLM)           0d     8/11/00     8/11/00
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
                                                                          1998
                                                        ----------------------------------------------------------------------------
ID   TASK NAME                 DUR   START     FINISH   J     F     M      A      M      J      J     A      S      O      N     D
------------------------------------------------------------------------------------------------------------------------------------
<S>  <C>                       <C>    <C>      <C>     <C>   <C>   <C>    <C>    <C>    <C>    <C>   <C>    <C>    <C>    <C>   <C>
919  Module C1 at a Single
      SAN
------------------------------------------------------------------------------------------------------------------------------------
920  Modue C2 at one NMC
------------------------------------------------------------------------------------------------------------------------------------
921
------------------------------------------------------------------------------------------------------------------------------------
922  END-TO-END DEMONSTRATION
      FROM ONE SAN (TLM)
------------------------------------------------------------------------------------------------------------------------------------
923
------------------------------------------------------------------------------------------------------------------------------------
924  12 SANs & 2 NMC
      HANDOVER (TLM)
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
                                                                          1999
                                                        ----------------------------------------------------------------------------
ID   TASK NAME                 DUR   START     FINISH   J     F     M      A      M      J      J     A      S      O      N     D
------------------------------------------------------------------------------------------------------------------------------------
<S>  <C>                       <C>    <C>      <C>     <C>   <C>   <C>    <C>    <C>    <C>    <C>   <C>    <C>    <C>    <C>   <C>
919  Module C1 at a Single
      SAN
------------------------------------------------------------------------------------------------------------------------------------
920  Modue C2 at one NMC
------------------------------------------------------------------------------------------------------------------------------------
921
------------------------------------------------------------------------------------------------------------------------------------
922  END-TO-END DEMONSTRATION
      FROM ONE SAN (TLM)
------------------------------------------------------------------------------------------------------------------------------------
923
------------------------------------------------------------------------------------------------------------------------------------
924  12 SANs & 2 NMC
      HANDOVER (TLM)
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
                                                                          2000
                                                        ----------------------------------------------------------------------------
ID   TASK NAME                 DUR   START     FINISH   J     F     M      A      M      J      J     A      S      O      N     D
------------------------------------------------------------------------------------------------------------------------------------
<S>  <C>                       <C>    <C>      <C>     <C>   <C>   <C>    <C>    <C>    <C>    <C>   <C>    <C>    <C>    <C>   <C>
919  Module C1 at a Single
      SAN
------------------------------------------------------------------------------------------------------------------------------------
920  Modue C2 at one NMC
------------------------------------------------------------------------------------------------------------------------------------
921
------------------------------------------------------------------------------------------------------------------------------------
922  END-TO-END DEMONSTRATION
      FROM ONE SAN (TLM)                                           *3/1
------------------------------------------------------------------------------------------------------------------------------------
923
------------------------------------------------------------------------------------------------------------------------------------
924  12 SANs & 2 NMC
      HANDOVER (TLM)                                                                                 *8/11
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

PROJECT: 18 NOV ICO MLS VER 39.MPP
DATE: 11/18/97

DOC: 770019 VERSION 3.9       PAGE 52         REVISED ON THE 12TH NOVEMBER, 1997
<PAGE>   1090

                   IGF PROJECT MASTER LEVEL SCHEDULE REV 3.9

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                                              1997
                                                            ------------------------------------------------------------------------
ID  TASK NAME                DUR     START      FINISH       F      M      A      M      J      J      A      S      O      N     D
------------------------------------------------------------------------------------------------------------------------------------
<S> <C>                    <C>     <C>        <C>         <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
1   SATELLITE LAUNCH DATE  451d     11/5/98     7/13/00
------------------------------------------------------------------------------------------------------------------------------------
2   F1                       0d     11/5/98     11/5/98
------------------------------------------------------------------------------------------------------------------------------------
3   F2                       0d      2/5/99      2/5/99
------------------------------------------------------------------------------------------------------------------------------------
4   F3                       0d      5/6/99      5/6/99
------------------------------------------------------------------------------------------------------------------------------------
5   F4                       0d      7/5/99      7/5/99
------------------------------------------------------------------------------------------------------------------------------------
6   F5                       0d      9/5/99      9/5/99
------------------------------------------------------------------------------------------------------------------------------------
7   F6                       0d     11/5/99     11/5/99
------------------------------------------------------------------------------------------------------------------------------------
8   F7                       0d    12/16/99    12/16/99
------------------------------------------------------------------------------------------------------------------------------------
9   F8                       0d     1/27/00     1/27/00
------------------------------------------------------------------------------------------------------------------------------------
10  F9                       0d      3/9/00      3/9/00
------------------------------------------------------------------------------------------------------------------------------------
11  F10                      0d     4/20/00     4/20/00
------------------------------------------------------------------------------------------------------------------------------------
12  F11                      0d      6/1/00      6/1/00
------------------------------------------------------------------------------------------------------------------------------------
13  F12                      0d     7/13/00     7/13/00
------------------------------------------------------------------------------------------------------------------------------------
14
------------------------------------------------------------------------------------------------------------------------------------
15  SUPPLY AGREEMENT         0d      3/3/97      3/3/97
------------------------------------------------------------------------------------------------------------------------------------
16  SUPPLY CONTRACT
     SIGNATURE IN JAPAN      0d      3/3/97      3/3/97       3/3
------------------------------------------------------------------------------------------------------------------------------------
17
------------------------------------------------------------------------------------------------------------------------------------
18  PROJECT MANAGEMENT       935d   2/17/97     8/11/00
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
                                                                 1998
                             ------------------------------------------------------------------------------
ID  TASK NAME                J      F      M      A      M      J      J      A      S      O      N     D
-----------------------------------------------------------------------------------------------------------
<S> <C>                     <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
1   SATELLITE LAUNCH
     DATE
-----------------------------------------------------------------------------------------------------------
2   F1                                                                                            11/5
-----------------------------------------------------------------------------------------------------------
3   F2
-----------------------------------------------------------------------------------------------------------
4   F3
-----------------------------------------------------------------------------------------------------------
5   F4
-----------------------------------------------------------------------------------------------------------
6   F5
-----------------------------------------------------------------------------------------------------------
7   F6
-----------------------------------------------------------------------------------------------------------
8   F7
-----------------------------------------------------------------------------------------------------------
9   F8
-----------------------------------------------------------------------------------------------------------
10  F9
-----------------------------------------------------------------------------------------------------------
11  F10
-----------------------------------------------------------------------------------------------------------
12  F11
-----------------------------------------------------------------------------------------------------------
13  F12
-----------------------------------------------------------------------------------------------------------
14
-----------------------------------------------------------------------------------------------------------
15  SUPPLY AGREEMENT
-----------------------------------------------------------------------------------------------------------
16  SUPPLY CONTRACT
     SIGNATURE IN JAPAN
----------------------------------------------------------------------------------------------------------
17
----------------------------------------------------------------------------------------------------------
18  PROJECT MANAGEMENT
----------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------
                                                                  1999
                             -------------------------------------------------------------------------------
ID  TASK NAME                J      F      M      A      M      J      J      A      S      O     N     D
------------------------------------------------------------------------------------------------------------
<S> <C>                     <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>   <C>
1   SATELLITE LAUNCH
     DATE
------------------------------------------------------------------------------------------------------------
2   F1
------------------------------------------------------------------------------------------------------------
3   F2                             2/5
------------------------------------------------------------------------------------------------------------
4   F3                                                  5/6
------------------------------------------------------------------------------------------------------------
5   F4                                                                7/5
------------------------------------------------------------------------------------------------------------
6   F5                                                                              9/5
------------------------------------------------------------------------------------------------------------
7   F6                                                                                           11/5
------------------------------------------------------------------------------------------------------------
8   F7                                                                                                 12/16
------------------------------------------------------------------------------------------------------------
9   F8
------------------------------------------------------------------------------------------------------------
10  F9
------------------------------------------------------------------------------------------------------------
11  F10
------------------------------------------------------------------------------------------------------------
12  F11
------------------------------------------------------------------------------------------------------------
13  F12
------------------------------------------------------------------------------------------------------------
14
------------------------------------------------------------------------------------------------------------
15  SUPPLY AGREEMENT
------------------------------------------------------------------------------------------------------------
16  SUPPLY CONTRACT
     SIGNATURE IN JAPAN
------------------------------------------------------------------------------------------------------------
17
------------------------------------------------------------------------------------------------------------
18  PROJECT MANAGEMENT
------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
                                                                 2000
                            -------------------------------------------------------------------------------
ID  TASK NAME               J      F      M      A      M      J      J      A      S      O     N     D
-----------------------------------------------------------------------------------------------------------
<S> <C>                    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>   <C>
1   SATELLITE LAUNCH
     DATE
----------------------------------------------------------------------------------------------------------
2   F1
----------------------------------------------------------------------------------------------------------
3   F2
----------------------------------------------------------------------------------------------------------
4   F3
----------------------------------------------------------------------------------------------------------
5   F4
----------------------------------------------------------------------------------------------------------
6   F5
----------------------------------------------------------------------------------------------------------
7   F6
----------------------------------------------------------------------------------------------------------
8   F7
----------------------------------------------------------------------------------------------------------
9   F8                      1/27
----------------------------------------------------------------------------------------------------------
10  F9                                   3/9
----------------------------------------------------------------------------------------------------------
11  F10                                          4/20
----------------------------------------------------------------------------------------------------------
12  F11                                                        6/1
----------------------------------------------------------------------------------------------------------
13  F12                                                               7/13
----------------------------------------------------------------------------------------------------------
14
----------------------------------------------------------------------------------------------------------
15  SUPPLY AGREEMENT
----------------------------------------------------------------------------------------------------------
16  SUPPLY CONTRACT
     SIGNATURE IN JAPAN
----------------------------------------------------------------------------------------------------------
17
----------------------------------------------------------------------------------------------------------
18  PROJECT MANAGEMENT
----------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------
</TABLE>
PROJECT: 18 NOV ICO MLS VER 39.MPP
DATE: 11/18/97

DOC: 770019 VERSION 3.9       PAGE 1          REVISED ON THE 12TH NOVEMBER, 1997
<PAGE>   1091
                   IGF PROJECT MASTER LEVEL SCHEDULE REV 3.9

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                                              1997
                                                            ------------------------------------------------------------------------
ID   TASK NAME               DUR      START      FINISH      F      M      A      M      J      J      A      S      O      N     D
------------------------------------------------------------------------------------------------------------------------------------
<S>  <C>                    <C>     <C>        <C>         <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>   <C>
433
------------------------------------------------------------------------------------------------------------------------------------
434
                             37d     9/23/97    11/11/97
------------------------------------------------------------------------------------------------------------------------------------
435                          45d      9/3/97     11/3/97
------------------------------------------------------------------------------------------------------------------------------------
436                          27d     9/23/97    10/29/97
------------------------------------------------------------------------------------------------------------------------------------
437
                             13d     11/3/97    11/18/97
------------------------------------------------------------------------------------------------------------------------------------
438                         158d    11/18/97      2/4/98
------------------------------------------------------------------------------------------------------------------------------------
439                          58d    11/18/97      2/4/98
------------------------------------------------------------------------------------------------------------------------------------
440
                            158d    11/18/97     6/17/98
------------------------------------------------------------------------------------------------------------------------------------
441                         158d    11/18/97     6/17/98
------------------------------------------------------------------------------------------------------------------------------------
442
                            150d    11/28/97     6/17/98
------------------------------------------------------------------------------------------------------------------------------------
443
                            148d    11/18/97      6/4/98
------------------------------------------------------------------------------------------------------------------------------------
444
                            158d    11/18/97     6/17/98
------------------------------------------------------------------------------------------------------------------------------------
445                         158d    11/18/97     6/17/98
------------------------------------------------------------------------------------------------------------------------------------
446
                            150d    11/28/97     6/17/98
------------------------------------------------------------------------------------------------------------------------------------
447                         259d    11/18/97    10/28/98
------------------------------------------------------------------------------------------------------------------------------------
448
                            110d    11/18/97     6/15/98
------------------------------------------------------------------------------------------------------------------------------------
449
                            112d      4/2/98     8/26/98
------------------------------------------------------------------------------------------------------------------------------------
450
                             47d     8/27/98    10/28/98
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
                                                                          1998
                                     ----------------------------------------------------------------------------------
ID     TASK NAME                       J      F      M      A      M      J      J      A      S      O      N      D
-----------------------------------------------------------------------------------------------------------------------
<S>  <C>                             <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>
433
-----------------------------------------------------------------------------------------------------------------------
434
-----------------------------------------------------------------------------------------------------------------------
435

-----------------------------------------------------------------------------------------------------------------------
436
-----------------------------------------------------------------------------------------------------------------------
437
-----------------------------------------------------------------------------------------------------------------------
438
-----------------------------------------------------------------------------------------------------------------------
439
-----------------------------------------------------------------------------------------------------------------------
440
-----------------------------------------------------------------------------------------------------------------------
441
-----------------------------------------------------------------------------------------------------------------------
442

-----------------------------------------------------------------------------------------------------------------------
443
-----------------------------------------------------------------------------------------------------------------------
444
-----------------------------------------------------------------------------------------------------------------------
445
-----------------------------------------------------------------------------------------------------------------------
446

-----------------------------------------------------------------------------------------------------------------------
447
-----------------------------------------------------------------------------------------------------------------------
448
-----------------------------------------------------------------------------------------------------------------------
449

-----------------------------------------------------------------------------------------------------------------------
450

-----------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------
</TABLE>

PROJECT 18 NOV ICO MLS VER 39.MPP
DATE: 11/18/97

DOC: 770019 VERSION 3.9       PAGE **         REVISED ON THE 12TH NOVEMBER, 1997
<PAGE>   1092

                                   [ICO LOGO]
                              IGF SUPPLY AGREEMENT
                          CONTRACT NO ICOO97 - 1016/GW
                               CHANGE ORDER NO: 3
                              DATE: 31 MARCH 1998

In accordance with clause 9 of the Supply Agreement dated March 3rd 1997 between
NEC Corporation and ICO Global Communications Holdings BV, the Agreement is
hereby amended as follows:

Amended Clauses               Attachment No. 1 (Clause 15.1) and Attachment 2
                              (Clause 16.4)

Amended Schedules             Attachment No 3 (Schedule 9 - Pricing Schedule
                              together with Appendices 1 and 2 thereto);
                              Attachment No 5 (Schedule 13 - IGFR Version 26.1)

Amended Annexes               Attachment No 6 (Statement of Work and Annexes 1
                              and 5 thereto)

Amended Price                 Attachment No: 1

Other Amendments              Attachment No: 4 (Payment Schedule Classification
                              Summary)

Reference Correspondence      See attached List of Reference Correspondence

This Change Order No 3 will now form part of the Supply Agreement dated March
3rd 1997 between the parties and shall be effective from 31 March 1998 and shall
be governed by and construed in accordance with the laws of England.
Except for the changes set out above, this Change Order No 3 makes no further
amendments or modifications to the Agreement.

Signed for and on behalf of                         Signed for and on behalf of
ICO GLOBAL COMMUNICATIONS HOLDINGS BV               NEC CORPORATION

G.L. Titzer                                         T. Furukawa
Supervising Officer                                 Contractor's Authorised
                                                    Representative

Date                                                Date

<PAGE>   1093

                               CHANGE ORDER NO: 3

                        LIST OF REFERENCE CORRESPONDENCE

1)   ICO Change Request No:6  (Indicative Initial Build) Versions 1 and 2

2)   ICO Change Proposal No:1 (AXE Hardware BYB 501)

3)   Contractor Change Request No:60 (Natural Language Support)

4)   NEC Document WG3-8-0124A (IS-41 ILR Pricing)

5)   ICO Change Request No:3 (Clarification Of Data Services)

6)   Contractor Change Request No:75 (SAN Minimum Configuration Change)

7)   IUKC-397 dated 20 January 1998 (Non-transparent data greater than
9.6kbit/s)

8)   NEC Documents WGA-TN-7-0428-B1 and WGA-TN-7-0252-B1 and Contractor
Change Request No 73 (DCN)

9)   IUKC-213 dated 4 August 1997 and SA0438/WG7/19971023/GLT dated 23 October
1997 (IF Combiner/Divider and Cable forRPCS)

10)  SA0449/WG7/19971027/GLT dated 20 October 1997 (180 Day Option: Dust
Protection - UAE)

11)  IUKC-455 dated 3 March 1998 and ICO Change Request No:13 (UAE RFT
Condenser Shelves).

<PAGE>   1094

                         CHANGE ORDER NO: 3 ATTACHMENT 1

<PAGE>   1095

ATTACHMENT 1
AMENDED CLAUSE

Clause 15.1 is amended to read as follows:

15.1     ICO shall pay an aggregate total price of US$705,802,343 for the
complete performance by the Contractor of all of its obligations under this
Agreement together with a further sum of US$21,516,700 (in respect of freight
and insurance as referred to in the Pricing Schedule), which amounts shall be
subject to adjustment only in respect of (i) changes agreed under clause 9 and
(ii) the cost of any Option items upon exercise of the relevant Option or other
items or services purchased under clause 46; (such aggregate amount, as so
adjusted, being referred to as the "Price"). Any Instalment payment made shall
discharge the relevant portion of the Price and shall not be reclaimable by ICO
but without prejudice to ICO's right to claim damages and/or indemnity in
accordance with the provisions of this Agreement in the event of any breach by
the Contractor.

<PAGE>   1096

                         CHANGE ORDER NO: 3 ATTACHMENT 2

<PAGE>   1097

                                                            IGF Supply Agreement
                                                    Contract No ICOO97 - 1016/GW
                                              Attachment 2 to Change Order No. 3

The existing clause 16.4 is deleted and replaced with the following text:-

16.4

"Any invoices which are to be submitted to ICO pursuant to this Agreement shall
be addressed to ICO Global Communications Holdings BV, Drentestraat 20, 1083 HK,
Amsterdam, Netherlands with a copy to ICO Services Limited at 1 Queen Caroline
Street, Hammersmith, London W6 9BN, UK."

<PAGE>   1098

                         CHANGE ORDER NO: 3 ATTACHMENT 3

1.       Schedule 9 - Pricing Schedule

2.       Schedule 9 - Pricing Schedule Appendix 1

3.       Schedule 9 - Pricing Schedule Appendix 2

<PAGE>   1099

                         CHANGE ORDER NO: 3 ATTACHMENT 3

1.       Schedule 9 - Pricing Schedule

<PAGE>   1100

                                                                 30th March 1998

                                PRICING SCHEDULE

<PAGE>   1101

                                                                 30th March 1998

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------
                      DATE                 CN NO.                 REASON FOR CHANGE
-----------------------------------------------------------------------------------------------------
<S>              <C>                       <C>          <C>
1                24 OCTOBER 1997            N/A         Final draft of pricing schedule including
                                                        editorial changes to document.  Acceptance of
                                                        original of revisions that were included in SA
                                                        3 March 1997.  Addition of paragraph numbers
                                                        and removal of typos.  MCo.
-----------------------------------------------------------------------------------------------------
2                30TH MARCH 1998            N/A         Final revisions reflecting change order No. 3.
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
</TABLE>

                                                                    Page 2 of 32
<PAGE>   1102

                                                                 30th March 1998

1.       GENERAL

This Section describes:

-        in Section 2, the SA price schedule for the deliverables and services
         that the Contractor(s) will provide within the scope of this Supply
         Agreement

-        in Section 3, the future equipment(1) pricing

-        in Section 4 the future equipment order process

-        in Section 5, the pricing of future basic package software releases

-        in Section 6, the process and pricing of the development of ICO
         specific functionality.

2.       SA PRICE SCHEDULE

2.1.     PRICE OF THE SA

2.1.1.1. Table 1 summarises the price of the SA. Appendix 1 to this schedule
         describes the individual prices which are summarised in Items 1 to 10
         inclusive of Table 1. Appendix 2 to this schedule provides a detailed
         price list including individual equipment components. Appendix 3 to
         this Schedule provides the detailed price list including average hourly
         rates for the ICONET Integration Testing. Table 24 in Section 7 shows
         the history of the price change.

                      TABLE 1 - SA PRICE SUMMARY (US$'000s)

<TABLE>
<CAPTION>
                  ITEM                                             PURCHASE                OPTIONS            PURCHASE + OPTIONS
--------------------------------------------------------------------------------------------------------------------------------
<S>                                                              <C>                    <C>                   <C>
1           RFT                                                        *                      *                        *
--------------------------------------------------------------------------------------------------------------------------------
2           SBS                                                        *                      *                        *
--------------------------------------------------------------------------------------------------------------------------------
3           PCS                                                        *                      *                        *
--------------------------------------------------------------------------------------------------------------------------------
4           Switch                                                     *                      *                        *
--------------------------------------------------------------------------------------------------------------------------------
5           TNM                                                        *                      *                        *
--------------------------------------------------------------------------------------------------------------------------------
6           NMS SRMC                                                   *                      *                        *
--------------------------------------------------------------------------------------------------------------------------------
7           S.T.E                                                      *                      *                        *
--------------------------------------------------------------------------------------------------------------------------------
8           SI & PM                                                    *                      *                        *
--------------------------------------------------------------------------------------------------------------------------------
9           Ax & B                                                     *                      *                        *
--------------------------------------------------------------------------------------------------------------------------------
10          DCN                                                        *                      *                        *
--------------------------------------------------------------------------------------------------------------------------------
</TABLE>

--------

1        For the purposes of this Schedule, the term `equipment' throughout
         means hardware and the associated operating software.

         * Confidential Treatment Requested and the Redacted Material has been
           separately filed with the Commission.

                                                                    Page 3 of 32
<PAGE>   1103
                                                                 30th March 1998

<TABLE>
<CAPTION>
                  ITEM                                             PURCHASE                OPTIONS            PURCHASE + OPTIONS
--------------------------------------------------------------------------------------------------------------------------------
<S>                                                              <C>                    <C>                   <C>
            TOTAL OF ITEMS 1 TO 10 (EXCLUDING FREIGHT &               *                      *                       *
            INSURANCE)
--------------------------------------------------------------------------------------------------------------------------------
            FREIGHT AND INSURANCE                                     *                      *                       *
--------------------------------------------------------------------------------------------------------------------------------
11          GPRS STUDY (CHANGE ORDER NO.1)                            *
--------------------------------------------------------------------------------------------------------------------------------
            ICONET INTEGRATION                                        *                      *                       *
--------------------------------------------------------------------------------------------------------------------------------
</TABLE>

2.1.1.2. In the event that ICO does not elect to purchase from the Contractor
         Freight and Insurance as set out in Table 1 within 30 days of the date
         of this Agreement, ICO may make alternate arrangements. In the event
         that ICO opts to make such arrangements, the parties shall meet to
         arrange any necessary modifications to the Agreement.

2.1.1.3. For the avoidance of doubt, the Price specified in clause 15.1 of this
         Agreement shall remain unchanged unless and until ICO opts for
         alternate arrangements and the initial payment shall be calculated and
         paid by ICO as if Freight and Insurance were included. In the event
         that ICO does opt out of the Freight and Insurance arrangements, the
         related proportion of the initial payment by ICO to NEC shall not be
         repaid to ICO but shall be set off against future payments by ICO under
         this Agreement.

2.1.1.4. In addition to the prices described in Paragraph 2.1.1.1 the Contractor
         will recharge ICO for:

         i.       Inter-Site telecommunication charges. These charges are for
                  the purposes of telephone and fax between SAN, NMC, BCC sites.

         ii.      Inter-Site testing telecommunications charges. These charges
                  are for the purposes of providing telecommunication links
                  between the development sites; NEC/A in Melbourne, NEC/J in
                  Yokohama, and HNS in Germantown, to enable the Contractor to
                  undertake factory integration testing of the IGF.

2.1.1.5. The Contractor will re-charge ICO the costs of Inter-Site
         telecommunications charges as incurred plus a handling fee. The total
         charge to ICO will be no more   *   for the whole of the SA.
         ICO will reimburse the Contractor on the basis of the invoice plus
         supporting detail.

2.1.1.6. The Contractor will re-charge ICO the costs of Inter-Site testing
         telecommunications charges as incurred plus a handling fee. The total
         charge to ICO will be no more US   *   for the whole of the SA.
         ICO will reimburse the Contractor on the basis of the invoice plus
         supporting detail.

3.       FUTURE EQUIPMENT PRICING

3.1.     INTRODUCTION

3.1.1.1. This Section describes the future pricing for:

         i.       traffic capacity and subscriber expansion and the associated
                  hardware and software

         ii.      the installation and testing

         iii.     Systems Integration and Project Management.

         * Confidential Treatment Requested and the Redacted Material has been
           separately filed with the Commission.

                                                                    Page 4 of 32

<PAGE>   1104
                                                                 30th March 1998

3.1.1.2. The price adjustments that shall be applied for future orders are
         defined in Section 3.5 of this Schedule.

3.1.1.3. The future prices computed according to the indices and processes are
         quoted as 'not to exceed' prices.

3.1.1.4. ICO is being, and will continue to be offered reasonable future pricing
         consistent with ICO volumes and functionality.

3.1.1.5. The price is quoted on FOB place of shipment basis. The interpretation
         of FOB is in accordance with the SA.

3.1.1.6. The following items will be quoted separately at the time of order for
         individual element capacity increases:

         i.       Training

         ii.      Spares

3.1.1.7. Freight and Insurance will be quoted separately at the time of order in
         consideration to the number of blocks to be ordered and the place of
         the SAN sites where these blocks will be delivered.

3.2.     UNIT EQUIPMENT

The following sections describe the expansion block price for each subsystem.
RFTs

3.2.1.1. The IGF RFT is designed to transmit and receive the maximum C-band
         feeder link capacity of 750 traffic carriers assuming that up to 473
         carriers can be transmitted by one HPA with a total maximum EIRP of 77
         dBW. It is also designed to transmit one TT&C carrier at the maximum
         EIRP of 81 dBW in an emergency case.

3.2.1.2. The Contractor will negotiate with ICO, as and when requested by ICO,
         for the supply of additional RFT systems.

3.2.2.   SBS and DC Uninterruptable Power Supply System for SBS

3.2.2.1. The number of SBS Expansion Blocks required to support the traffic
         capacity of a SBS subsystem shall be computed with the formulae shown
         in Table 2. N is number of additional expansion blocks beyond the
         Initial Size (320 Erlangs) required to make an SBS capable of
         supporting the traffic for a given "Erlang size". The Erlang size to be
         used in this calculation is that based on the resource holding time in
         the SBS.

                    TABLE 2 - SBS TRAFFIC/BLOCK RELATIONSHIP

<TABLE>
<CAPTION>
         -------------------------------------------------------------------------
                      SBS RATED TRAFFIC                    NUMBER OF BLOCKS (N)
         -------------------------------------------------------------------------
<S>                                                      <C>
                                        *

         -------------------------------------------------------------------------
</TABLE>

3.2.2.2. The traffic supported by each expansion block/SBS size are target
         throughputs under presently known conditions. The Contractor shall
         endeavour to exceed the target throughputs. However, unforeseen

         * Confidential Treatment Requested and the Redacted Material has been
           separately filed with the Commission.

                                                                    Page 5 of 32
<PAGE>   1105

                                                                 30th March 1998

         circumstances may change these formula, in which case the Contractor
         and the Purchaser agree to inform each other of such circumstances and
         agree to work together to minimise the impact of unforeseen conditions.

3.2.2.3. The SBS Expansion Block also requires an expansion of the DC
         Uninterruptable Power Supply System (DC UPS) over and above that
         provided in an SBS capable of supporting 320 Erlangs. For every
         expansion block an additional block of DC UPS will be required with a
         minimum expansion of 2 DC UPS blocks for the first SBS expansion block
         beyond the Initial Size (320 Erlangs) of the SBS.

3.2.2.4. The unit price, inclusive of installation and testing, and the
         equipment that comprises an SBS Expansion Block and DC UPS, is shown in
         Table 3. Table 3 also shows the price for providing CE Mark compliance
         for an SBS Expansion Block for a country where it may be required.

                 TABLE 3 - SBS EXPANSION BLOCK AND DC UPS PRICE

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------
  NOS.                   DESCRIPTION                                                 QUANTITY               PRICE (US$'000S)
----------------------------------------------------------------------------------------------------------------------------
<S>        <C>                                                                     <C>                      <C>
I          SBS EXPANSION BLOCK (CHANNEL UNIT AND CHANNEL MANAGER)                                                  *
----------------------------------------------------------------------------------------------------------------------------
1          CHANNEL UNIT
----------------------------------------------------------------------------------------------------------------------------
1.1        Channel Unit Chassis (CUC)                                                    *
----------------------------------------------------------------------------------------------------------------------------
1.1.1      CUBs                                                                          *
----------------------------------------------------------------------------------------------------------------------------
1.1.2      Slot Processor Module (SPM)                                                   *
----------------------------------------------------------------------------------------------------------------------------
1.1.3      Modulator Demodulator Module (MDM)                                            *
----------------------------------------------------------------------------------------------------------------------------
1.1.4      Clock Distribution Unit (CDM)                                                 *
----------------------------------------------------------------------------------------------------------------------------
1.1.5      Common Functions Module (CFM)                                                 *
----------------------------------------------------------------------------------------------------------------------------
1.1.6      Channel Unit Rack Base Units                                                  *
----------------------------------------------------------------------------------------------------------------------------
2          CHANNEL MANAGER
----------------------------------------------------------------------------------------------------------------------------
2.1        Channel Manager Chassis (ChM)                                                 *
----------------------------------------------------------------------------------------------------------------------------
2.1.1      G.703 Interface                                                               *
----------------------------------------------------------------------------------------------------------------------------
2.1.2      Control Processor Modules (CPM)                                               *
----------------------------------------------------------------------------------------------------------------------------
2.1.2.1    Channel Access Processor (CAP)                                                *
----------------------------------------------------------------------------------------------------------------------------
2.1.2.2    Channel Control Processor (CCP)                                               *
----------------------------------------------------------------------------------------------------------------------------
2.1.2.3    Global Resource Process (GRP)                                                 *
----------------------------------------------------------------------------------------------------------------------------
2.1.3      Switching Transcoder Module (STM)                                             *
----------------------------------------------------------------------------------------------------------------------------
2.1.4      10 Base2 Ethernet                                                             *
----------------------------------------------------------------------------------------------------------------------------
2.2        Channel Manager Rack (CMR) w 2 Chassis                                        *
----------------------------------------------------------------------------------------------------------------------------
2.2.1      Fan                                                                           *
----------------------------------------------------------------------------------------------------------------------------
2.2.2      Power Distribution Unit                                                       *
----------------------------------------------------------------------------------------------------------------------------
3          IF and Frequency Distribution Expansion                                       *
----------------------------------------------------------------------------------------------------------------------------
4          INSTALLATION MATERIALS (Includes power/signal cables)
----------------------------------------------------------------------------------------------------------------------------
4.1        Power Cables                                                                  *
----------------------------------------------------------------------------------------------------------------------------
</TABLE>

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

                                                                    Page 6 of 32
<PAGE>   1106
                                                                 30th March 1998

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------
  NOS.                   DESCRIPTION                                                 QUANTITY               PRICE (US$'000S)
----------------------------------------------------------------------------------------------------------------------------
<S>        <C>                                                                     <C>             <C>
4.2        I/F Cables                                                                    *
----------------------------------------------------------------------------------------------------------------------------
4.3        LAN Cables                                                                    *
----------------------------------------------------------------------------------------------------------------------------
4.4        Sync Cabling                                                                  *
----------------------------------------------------------------------------------------------------------------------------
5          Installation and Test                                                         *
----------------------------------------------------------------------------------------------------------------------------
II         SBS DC UPS (AC/DC CONVERTERS & BATTERIES FOR 2 HOURS OPERATION)               *                     *
                                                                                                               *
----------------------------------------------------------------------------------------------------------------------------
III        CE MARK COMPLIANCE PER BLOCK                                                  *                     *
----------------------------------------------------------------------------------------------------------------------------
</TABLE>

3.2.3.   TNM

3.2.3.1. The TNM capacity expansion equipment comprises four parts:

         i.       Vocoder/mux (Voc/Mux) traffic expansion. Each Voc/Mux block
                  shall be provided for each SBS expansion block and support up
                  to 200 Erlangs.

         ii.      C&C rack (19 inch). One rack is required for Voc/Mux capacity
                  expansion of 1 and 1/4 blocks.

         iii.     Voice Codec Royalty per Voc/Mux Block.

         iv.      TNM(RPC) computer expansion. A TNM(RPC) may be required when a
                  TNM rated throughput exceeds   *   or BHCA exceeds
                     *   including inter-SAN traffic. The additional capacity
                  provided by a TNM (RPC) is   *   and   *   .

         v.       If BHCA per Voc/Mux block exceeds 8,800, including inter-SAN
                  traffic, upgrade of the Control Cards will be necessary.

         vi.      The Erlang size to be used in this calculation is that based
                  on the resource holding time in the TNM.

3.2.3.2. The Contractor shall endeavour to exceed the target throughputs.
         However, unforeseen circumstances may change these formula, in which
         case the Contractor and the Purchaser agree to inform each other of
         such circumstances and agree to work together to minimise the impact of
         unforeseen conditions.

3.2.3.3. The Voc/Mux Block, the C&C rack, the voice Codec Royalty, TNM (RPC) and
         Control Card price and associated equipment are shown in Table 4.

         The BHCA capacity of a Voc/Mux block can be upgraded from the standard
         capacity indicated in paragraph 3.2.3.1 (v) by the replacement of the
         Control Cards. Where a NEW Voc/Mux block is being ordered to expand the
         capacity of a TNM, the block can be supplied with the upgraded Control
         Cards at an ADDITIONAL cost of   *   per Control Card. Four Control
         Cards are required for each Voc/Mux block. The total price for a
         Voc/Mux block with the upgraded Control Cards would therefore be   *
         . Where ICO wishes to upgrade the BHCA capacity of an EXISTING Voc/Mux
         block, the Control Cards in the block must be replaced with upgraded
         cards. The price for EACH replacement upgraded Control Card is   *   .

                 TABLE 4 - TNM TRAFFIC AND COMPUTER BLOCK PRICE

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------
NOS.         DESCRIPTION                                                          QUANTITY           PRICE (US$'000S)
------------------------------------------------------------------------------------------------------------------------
<S>       <C>                                                                     <C>                <C>
I         VOC/MUX BLOCK                                                                                     *
------------------------------------------------------------------------------------------------------------------------
</TABLE>

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

                                                                    Page 7 of 32
<PAGE>   1107
                                                                 30th March 1998

<TABLE>
<S>       <C>                                                                     <C>                <C>
1         VOCODER/MUX Unit
------------------------------------------------------------------------------------------------------------------------
1.1       Vocoder/Mux Card                                                            *
------------------------------------------------------------------------------------------------------------------------
1.2       Control Card                                                                *
------------------------------------------------------------------------------------------------------------------------
1.3       I/O Card                                                                    *
------------------------------------------------------------------------------------------------------------------------
1.4       19 inch 6RU Shelf                                                           *
------------------------------------------------------------------------------------------------------------------------
1.5       Power Supply Shelf                                                          *
------------------------------------------------------------------------------------------------------------------------
1.6       Fan Unit                                                                    *
------------------------------------------------------------------------------------------------------------------------
2         Installation Materials                                                      *
------------------------------------------------------------------------------------------------------------------------
II        C&C RACK (19 INCH).                                                         *                     *
------------------------------------------------------------------------------------------------------------------------
III       VOICE CODEC ROYALTY                                                         *                     *
          (SUBJECT TO PARAGRAPH 3.2.3.4.)
------------------------------------------------------------------------------------------------------------------------
IV        TNM (RPC)                                                                                         *
------------------------------------------------------------------------------------------------------------------------
1.1       TNM Computer (RPC)
------------------------------------------------------------------------------------------------------------------------
1.1.1     Sparc 1000 with 2 processors, 512MB MM, 5GB HD, Ethernet                    *
          Interfaces, 8mm Tape Drive and CD ROM Drive
------------------------------------------------------------------------------------------------------------------------
1.2       Ethernet Hubs/Routers and Accessories                                       *
------------------------------------------------------------------------------------------------------------------------
1.3       TNM O&M Software Licence                                                    *
------------------------------------------------------------------------------------------------------------------------
1.4       Software Licences
------------------------------------------------------------------------------------------------------------------------
1.4.1     Solaris Operating System with Media                                         *
------------------------------------------------------------------------------------------------------------------------
1.4.2     Solstice -Runtime                                                           *
------------------------------------------------------------------------------------------------------------------------
1.4.3     An additional TNM O&M Software licence for management of 2 sets of          *
          1:1 PRC.
------------------------------------------------------------------------------------------------------------------------
V         RPN CPU UP GRADED CONTROL CARD
------------------------------------------------------------------------------------------------------------------------
1.1       Future replacement of Control Card                                          *                     *
------------------------------------------------------------------------------------------------------------------------
1.2       Additional price of each Control Card, supplied as part of an               *                     *
          order for a new Voc/Mux block with upgraded Control Cards
          (this price is in addition to the price shown in Item I
          above)
------------------------------------------------------------------------------------------------------------------------
</TABLE>

3.2.3.4. The limit to the Contractors liability for the Voice Codec Royalty is
            *   for the licence and   *   per channel. Should the
         charges for the Voice Codec exceed these limits, NEC will recharge ICO
         at cost the excess over and above   *   and   *   per channel.

3.2.3.5. The Volume discount rates that apply to purchases of I) TNM Voc/Mux
         blocks and II) C&C Rack capacity are shown in Table 5.1 and Table 5.2,
         respectively.

         * Confidential Treatment Requested and the Redacted Material has been
           separately filed with the Commission.

                                                                    Page 8 of 32
<PAGE>   1108
                                                                 30th March 1998

                    TABLE 5.1 - TNM VOC/MUX VOLUME DISCOUNTS

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------
               NUMBER OF VOC/MUX BLOCKS                                       DISCOUNT FACTOR
---------------------------------------------------------------------------------------------
<S>                                                                           <C>
          from 1                       *                                            *
---------------------------------------------------------------------------------------------
          from 3                       *                                            *
---------------------------------------------------------------------------------------------
          from 6                       *                                            *
---------------------------------------------------------------------------------------------
          from 11                      *                                            *
---------------------------------------------------------------------------------------------
          from 18                      *                                            *
---------------------------------------------------------------------------------------------
          from 30                      *                                            *
---------------------------------------------------------------------------------------------
</TABLE>

                    TABLE 5.2 - TNM C&C RACK VOLUME DISCOUNTS

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------
                  NUMBER OF C&C RACK                                         DISCOUNT FACTOR
---------------------------------------------------------------------------------------------
<S>                                                                          <C>
          from 1                       *                                            *
---------------------------------------------------------------------------------------------
          from 3                       *                                            *
---------------------------------------------------------------------------------------------
          from 5                       *                                            *
---------------------------------------------------------------------------------------------
          from 9                       *                                            *
---------------------------------------------------------------------------------------------
          from 15                      *                                            *
---------------------------------------------------------------------------------------------
          from 24                      *                                            *
---------------------------------------------------------------------------------------------
</TABLE>

3.2.3.6. The installation charges for the expansion of Voc/Mux and TNM (RPC)
         capacity of a TNM are shown in Table 6.

                   TABLE 6 - TNM EXPANSION INSTALLATION PRICES

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------
NOS.                   DESCRIPTION                                             QUANTITY           PRICE (US$'000S)
--------------------------------------------------------------------------------------------------------------------
<S>          <C>                                                             <C>                  <C>
1            VOC/MUX BLOCK EXPANSION
--------------------------------------------------------------------------------------------------------------------
1.1          First Voc/Mux block per SAN                                           *                     *
--------------------------------------------------------------------------------------------------------------------
1.2          Each Voc/Mux block in addition to first block per SAN                 *                     *
--------------------------------------------------------------------------------------------------------------------
2            TNM (RPC)
--------------------------------------------------------------------------------------------------------------------
2.1          Per TNM (RPC) if as a separate installation                           *                     *
--------------------------------------------------------------------------------------------------------------------
2.2          Per TNM (RPC) if installed at same time as capacity                   *                     *
             expansion
--------------------------------------------------------------------------------------------------------------------
</TABLE>

3.2.3.7. The discount rates that apply to the first Voc/Mux block installation
         charges are shown in Table 7. The number of SANs shows the number of
         SANs installed in the upgrade program.

         * Confidential Treatment Requested and the Redacted Material has been
           separately filed with the Commission.

                                                                    Page 9 of 32
<PAGE>   1109
                                                                 30th March 1998

                 TABLE 7 - FIRST EXPANSION BLOCK DISCOUNT RATES

<TABLE>
<CAPTION>
               -------------------------------------
               NUMBER OF SANS        DISCOUNT FACTOR
               -------------------------------------
<S>                                  <C>
                   1 to 3                   *
               -------------------------------------
                   4 to 5                   *
               -------------------------------------
                   6 to 7                   *
               -------------------------------------
                   8 to 9                   *
               -------------------------------------
                     10                     *
               -------------------------------------
                  11 to 12                  *
               -------------------------------------
</TABLE>

3.2.3.8. The volume discount rates that apply to the installation charges for
         the additional Voc/Mux blocks per SAN are shown in Table 8.

                    TABLE 8 - ADDITIONAL BLOCK DISCOUNT RATES

<TABLE>
<CAPTION>
               -----------------------------------------------
               NUMBER OF VOC/MUX BLOCKS        DISCOUNT FACTOR
               -----------------------------------------------
<S>                                            <C>
                           1                         *
               -----------------------------------------------
                           2                         *
               -----------------------------------------------
                           3                         *
               -----------------------------------------------
                           4                         *
               -----------------------------------------------
                           5                         *
               -----------------------------------------------
                      6 and above                    *
               -----------------------------------------------
</TABLE>

3.2.4.   MSSC/VLR

3.2.4.1. The MSSC/VLR reference price is shown in Table 9. The reference price
         includes:

         i.       the equipment including the hardware and the software licence
                  fee

         ii.      installation and test charge.

         * Confidential Treatment Requested and the Redacted Material has been
           separately filed with the Commission.

                                                                   Page 10 of 32
<PAGE>   1110
                                                                 30th March 1998

                       TABLE 9 - MSSC/VLR REFERENCE PRICE

[GRAPHIC OMITTED]

3.2.4.2. The pricing curve is intended to give ICO sound guidance to estimate
         prices for future switch growth. The curve has been developed using the
         current SA dimensioning assumptions as defined in Section 9.2 of the
         IGFR. Changes in these assumptions may lead to some adjustment in the
         price for any given switch capacity.

3.2.4.3. The Contractor will provide ICO with a price for each upgrade based on
         the actual traffic and network configuration at the time of order.

3.2.4.4. Table 10 illustrates how the price for incremental growth is
         calculated. In this example, the cost of growing a switch with an
         initial capacity of   *   to a new capacity of   *   Erlangs
         would be approximately   *

         * Confidential Treatment Requested and the Redacted Material has been
           separately filed with the Commission.

                                                                   Page 11 of 32
<PAGE>   1111
                                                                 30th March 1998

TABLE 10 - REFERENCE ILLUSTRATION OF PRICE FOR INCREMENTAL GROWTH OF AN MSSC/VLR

                                [GRAPHIC OMITTED]

3.2.4.5. Table 11 shows in tabular form the points for computing the graph shown
         in Table 9.

                    TABLE 11 - MSSC/VLR PRICING GRAPH POINTS

<TABLE>
<CAPTION>
                    ----------------------------------------
                    CAPACITY (ERLANGS)      PRICE (US$'000S)
                    ----------------------------------------
<S>                 <C>                        <C>

                                        *

</TABLE>

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

                                                                   Page 12 of 32
<PAGE>   1112
                                                                 30th March 1998

<TABLE>
<CAPTION>
                    ----------------------------------------
                    CAPACITY (ERLANGS)      PRICE (US$'000S)
                    ----------------------------------------
<S>                                         <C>
                                        *
</TABLE>

3.2.4.6. The project management fee for MSSC/VLR expansion shall be an
         additional fee   *   of the agreed final MSSC/VLR upgrade price as per
         Paragraphs 3.2.4.1 and 3.2.4.3 of this Schedule.

3.2.5.   HLR

3.2.5.1. The price for an additional HLR platform, excluding DC UPS, with an
         initial   *   subscribers capacity is shown in Table 12-1.

                    TABLE 12-1 - HLR PLATFORM EXPANSION PRICE

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------
NO.                     DESCRIPTION                                            QUANTITY        PRICE (US$'000S)
---------------------------------------------------------------------------------------------------------------
<S>      <C>                                                                   <C>             <C>
 1       HLR Platform hardware for maximum 500k subscriber except DC
         Power Supply                                                              *                   *
---------------------------------------------------------------------------------------------------------------
 2       HLR Software for 50,000 subscriber                                        *                   *
---------------------------------------------------------------------------------------------------------------
</TABLE>

3.2.5.2. The additional software licence fee for the growth in the installed HLR
         subscriber capacity over and above   *   subscribers per HLR is shown
         in Table 12-2.

                    TABLE 12-2 - HLR CAPACITY EXPANSION PRICE

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------
NO.                    DESCRIPTION                                                     QUANTITY       PRICE (US$'000S)
---------------------------------------------------------------------------------------------------------------------
<S>     <C>                                                                            <C>            <C>
 1      additional   *   subscribers, i.e.   *   subscriber total capacity                 *              *
---------------------------------------------------------------------------------------------------------------------
 2      additional   *   subscribers i.e.    *   subscriber total capacity                 *              *
---------------------------------------------------------------------------------------------------------------------
 3      additional   *   subscribers i.e.    *   subscriber total capacity                 *              *
---------------------------------------------------------------------------------------------------------------------
 4      additional   *   subscribers i.e.    *   subscriber total capacity                 *              *
---------------------------------------------------------------------------------------------------------------------
</TABLE>

3.2.5.3. The offered HLR hardware has been dimensioned to support   *
         subscribers as per the parameters defined in Section 9.2 of the IGFR.
         The hardware may be able to support   *   subscribers, however, this
         is subject to confirmation.

3.2.5.4. The Contractor shall provide software licence fees for total capacity
         of greater than   *   subscribers subject to confirmation that the
         hardware can support total capacities greater than   *   subscribers.

         * Confidential Treatment Requested and the Redacted Material has been
           separately filed with the Commission.

                                                                   Page 13 of 32
<PAGE>   1113
                                                                 30th March 1998

3.2.6.   AuC/EIR

3.2.6.1. The price for an additional AuC/EIR platform, excluding DC UPS, with an
         initial   *   subscribers capacity is shown in Table 13-1.

                  TABLE 13-1 - AuC/EIR PLATFORM EXPANSION PRICE

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------
   NO.                 DESCRIPTION                                          QUANTITY          PRICE (US$'000S)
-------------------------------------------------------------------------------------------------------------
<S>         <C>                                                             <C>               <C>
    1       AuC/EIR Platform hardware for maximum 500k subscriber
            except DC Power Supply                                             *                     *
-------------------------------------------------------------------------------------------------------------
    2       AuC/EIR Software for 50,000 subscriber                             *                     *
-------------------------------------------------------------------------------------------------------------
</TABLE>

3.2.6.2  The additional software licence fee for the growth in the installed
         AuC/EIR subscriber capacity over and above   *   subscribers per
         AuC/EIR is shown in Table 13-2.

                  TABLE 13-2 - AuC/EIR CAPACITY EXPANSION PRICE

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------
NO.                    DESCRIPTION                                                           QUANTITY       PRICE (US$'000S)
----------------------------------------------------------------------------------------------------------------------------
<S>          <C>                                                                             <C>            <C>
 1           additional   *   subscribers, i.e.   *   subscriber total capacity                  *                *
----------------------------------------------------------------------------------------------------------------------------
 2           additional   *   subscribers i.e.    *   subscriber total capacity                  *                *
----------------------------------------------------------------------------------------------------------------------------
 3           additional   *   subscribers i.e.    *   subscriber total capacity                  *                *
----------------------------------------------------------------------------------------------------------------------------
 4           additional   *   subscribers i.e.    *   subscriber total capacity                  *                *
----------------------------------------------------------------------------------------------------------------------------
</TABLE>

3.2.6.3. The offered AuC/EIR hardware has a rated total capacity of   *
         subscribers based on the values of Authentication and IMEI checking
         parameters as stated in the IGFR Section 9.2.

3.2.6.4. The Contractor shall provide software licence fees for total capacity
         of greater than   *   subscribers in increments of   *   subscribers
         subject to confirmation that the hardware can support total capacities
         greater than   *   subscribers.

3.2.7    Messaging system (Comverse Trilogue INfinity)

3.2.7.1. The hardware and software are sold together as a complete Messaging
         system -- separation of the hardware and software licensing structure
         is not possible.

3.2.7.2  The detailed pricing for the messaging system is given in Tables 14-1,
         14-2 and 14-3. The solution provides support for Voicemail, Faxmail,
         SMS and Email notification. The price for the   *   subscribers
         centralised solution is fixed and firm and includes hardware and
         software, installation, commissioning and testing, warranty and spares.

3.2.7.3  Training, additional redundancy equipment and distribution equipment
         are excluded from the pricing.

         * Confidential Treatment Requested and the Redacted Material has been
           separately filed with the Commission.

                                                                  Page 14 of 32

<PAGE>   1114
                                                                 30th March 1998

3.2.7.4  Prices other than the   *   subscribers centralised solution are also
         fixed and firm and include hardware and software, installation,
         commissioning and testing, warranty and spares. The quoted prices will
         remain in force unadjusted until 31st March 1998. Thereafter, prices
         for additional orders will be negotiated within the NTE ceiling set in
         the Supply Agreement Contract and will take account of prevailing
         market conditions at the time of order.

3.2.7.5  The price for incremental growth of the messaging solution may be taken
         as the difference between the prices quoted below, plus the cost of any
         installation, commissioning and testing services that may be
         additionally required beyond those included below.

   TABLE 14-1 MESSAGING SYSTEM CAPACITY EXPANSION PRICE (SINGLE SITE SOLUTION)

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------------
Single Site Solution
----------------------------------------------------------------------------------------------------------------------------------
Scenario                          *             *              *              *             *               *              *
----------------------------------------------------------------------------------------------------------------------------------
<S>                         <C>            <C>            <C>            <C>           <C>             <C>            <C>
Subscribers                       *             *              *              *             *               *              *
----------------------------------------------------------------------------------------------------------------------------------
Pricing
----------------------------------------------------------------------------------------------------------------------------------
Nec price to ICO (US$)            *             *              *              *             *               *              *
----------------------------------------------------------------------------------------------------------------------------------
Price per sub. (US$)              *             *              *              *             *               *              *
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

The above prices also include the necessary Exchange Terminating Circuit (ETC)
equipment on the MSSC to support the   *   subscriber centralised messaging
requirement as defined in the document "Messaging Solution Proposal for ICO
Global Communications (reference WG3-IT7 0068C)". Prices quoted for systems with
capacity larger than   *   subscribers are exclusive of any necessary MSSC
hardware or software, which must be dimensioned and priced as agreed in the
Supply Agreement.

   TABLE 14-2 MESSAGING SYSTEM CAPACITY EXPANSION PRICE (THREE SITE SOLUTION)

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------
Three Site Solution
--------------------------------------------------------------------------------------------------------------------------
Scenario                                            *           *           *            *             *             *

--------------------------------------------------------------------------------------------------------------------------
<S>                      <C>    <C>         <C>          <C>          <C>          <C>          <C>            <C>
Site 1/3 Subscribers      *        *            *            *            *            *             *               *
--------------------------------------------------------------------------------------------------------------------------
Site 2/3 Subscribers      *        *            *            *            *            *             *               *
--------------------------------------------------------------------------------------------------------------------------
Site 3/3 Subscribers      *        *            *            *            *            *             *               *
--------------------------------------------------------------------------------------------------------------------------
Total Subscribers         *        *            *            *            *            *             *               *
--------------------------------------------------------------------------------------------------------------------------
Pricing
--------------------------------------------------------------------------------------------------------------------------
NEC price to ICO (US$)                              *           *           *            *             *             *
--------------------------------------------------------------------------------------------------------------------------
Price per sub. (US$)                                *           *           *            *             *             *
--------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
---------------------------------------------------------------------
Three Site Solution
---------------------------------------------------------------------
Scenario                           *             *             *
---------------------------------------------------------------------
<S>                        <C>            <C>            <C>
Site 1/3 Subscribers               *             *             *
---------------------------------------------------------------------
Site 2/3 Subscribers               *             *             *
---------------------------------------------------------------------
Site 3/3 Subscribers               *             *             *
---------------------------------------------------------------------
Total Subscribers                  *             *             *
---------------------------------------------------------------------
Pricing
---------------------------------------------------------------------
NEC price to ICO (US$)             *             *             *
---------------------------------------------------------------------
Price per sub. (US$)               *             *             *
---------------------------------------------------------------------
</TABLE>

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

                                                                   Page 15 of 32
<PAGE>   1115
                                                                 30th March 1998

     TABLE 14-3 MESSAGING SYSTEM CAPACITY EXPANSION PRICE (12 SITE SOLUTION)

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
Twelve Site Solution
----------------------------------------------------------------------------------------------------------------------
Scenario                                                         *               *                *                *
----------------------------------------------------------------------------------------------------------------------
<S>                             <C>      <C>            <C>              <C>              <C>              <C>
Site 1/12                         *          *                *               *                *                *
----------------------------------------------------------------------------------------------------------------------
Site 2/12                         *          *                *               *                *                *
----------------------------------------------------------------------------------------------------------------------
Site 3/12                         *          *                *               *                *                *
----------------------------------------------------------------------------------------------------------------------
Site 4/12                         *          *                *               *                *                *
----------------------------------------------------------------------------------------------------------------------
Site 5/12                         *          *                *               *                *                *
----------------------------------------------------------------------------------------------------------------------
Site 6/12                         *          *                *               *                *                *
----------------------------------------------------------------------------------------------------------------------
Site 7/12                         *          *                *               *                *                *
----------------------------------------------------------------------------------------------------------------------
Site 8/12                         *          *                *               *                *                *
----------------------------------------------------------------------------------------------------------------------
Site 9/12                         *          *                *               *                *                *
----------------------------------------------------------------------------------------------------------------------
Site 10/12                        *          *                *               *                *                *
----------------------------------------------------------------------------------------------------------------------
Site 11/12                        *          *                *               *                *                *
----------------------------------------------------------------------------------------------------------------------
Site 12/12                        *          *                *               *                *                *
----------------------------------------------------------------------------------------------------------------------
Total                             *          *                *               *                *                *
----------------------------------------------------------------------------------------------------------------------
Pricing
----------------------------------------------------------------------------------------------------------------------
Nec price to ICO                                              *               *                *                *
----------------------------------------------------------------------------------------------------------------------
Price per sub.                                                *               *                *                *
----------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
Twelve Site Solution
--------------------------------------------------------------------------------
Scenario                                  *               *               *
--------------------------------------------------------------------------------
<S>                               <C>              <C>              <C>
Site 1/12                                 *               *               *
--------------------------------------------------------------------------------
Site 2/12                                 *               *               *
--------------------------------------------------------------------------------
Site 3/12                                 *               *               *
--------------------------------------------------------------------------------
Site 4/12                                 *               *               *
--------------------------------------------------------------------------------
Site 5/12                                 *               *               *
--------------------------------------------------------------------------------
Site 6/12                                 *               *               *
--------------------------------------------------------------------------------
Site 7/12                                 *               *               *
--------------------------------------------------------------------------------
Site 8/12                                 *               *               *
--------------------------------------------------------------------------------
Site 9/12                                 *               *               *
--------------------------------------------------------------------------------
Site 10/12                                *               *               *
--------------------------------------------------------------------------------
Site 11/12                                *               *               *
--------------------------------------------------------------------------------
Site 12/12                                *               *               *
--------------------------------------------------------------------------------
Total                                     *               *               *
--------------------------------------------------------------------------------
Pricing
--------------------------------------------------------------------------------
Nec price to ICO                          *               *               *
--------------------------------------------------------------------------------
Price per sub.                            *               *               *
--------------------------------------------------------------------------------
</TABLE>

3.2.8    ICO-IS.41/IS.41-ICO ILR (Logica Aldiscon)

3.2.8.1  The Hardware prices for individual platforms are given below in Table
         15-1. There is no discount applicable to the hardware.

   TABLE 15-1 - ICO-IS.41/IS.41-ICO PLATFORM EXPANSION PRICE (IN THOUSAND US$)

<TABLE>
------------------------------------------------------------------------------------------------------------------
<S>                         <C>        <C>          <C>         <C>         <C>           <C>            <C>
No of Subscribers           *          *            *           *           *             *              *
------------------------------------------------------------------------------------------------------------------
RIG Price                   *          *            *           *           *             *              *
------------------------------------------------------------------------------------------------------------------
AUC Price                   *          *            *           *           *             *              *
------------------------------------------------------------------------------------------------------------------
AC Price                    *          *            *           *           *             *              *
------------------------------------------------------------------------------------------------------------------
Total ICO Hardware Price    *          *            *           *           *             *              *
------------------------------------------------------------------------------------------------------------------

</TABLE>

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

                                                                   Page 16 of 32
<PAGE>   1116
                                                                 30th March 1998

3.2.8.2  The software licence fees for installed ICO-IS.41 and IS.41-ICO ILR
         subscriber capacities per platform are shown in table 15-2 and table
         15-3.

              TABLE 15-2 - SUBSCRIBER CAPACITY PRICE, PER PLATFORM

<TABLE>
<CAPTION>
                                        *
<S>                         <C>                     <C>                  <C>                      <C>

                                        *

</TABLE>

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

                                                                   Page 17 of 32

<PAGE>   1117
                                                                 30th March 1998

              TABLE 15-3 - SUBSCRIBER CAPACITY PRICE, PER PLATFORM

<TABLE>
<CAPTION>

                                        *

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

                                        *

</TABLE>

         Upgrade price is the sum of all upgrade prices from the existing
         subscriber capacity to the new subscriber capacity. For example
         upgrading from   *   subscribers to   *   subscribers for Standard
         Products (only), would be   *   .

3.2.8.3  A discount will be applied to the total subscriber capacity according
         to Table 15-4 below. This discount is applicable to a 3 Platform
         solution only and will be applied as follows:

         For the initial procurement of 3 Platforms the discount will apply to
         the total capacity procured. For example if a total subscriber capacity
         of 800,000 across 3 Platforms is procured then a discount of   *   on
         Standard software and   *   on ICO Modifications and TMOS-Lite Agent
         will apply.

         Where an expansion in capacity is procured then the discount applicable
         to the new total subscriber capacity will apply to the additional
         capacity procured only. For example if the total subscriber capacity
         was   *   and a further increase of   *   was procured, giving a
         total subscriber capacity of   *   then a discount of   *   on
         Standard software and   *   on ICO Modifications and TMOS-Lite Agent
         would apply to the Upgrade price only, i.e. it would not be
         retrospectively calculated on the total subscriber capacity previously
         procured.

         * Confidential Treatment Requested and the Redacted Material has been
           separately filed with the Commission.

                                                                   Page 18 of 32
<PAGE>   1118
                                                                 30th March 1998

  TABLE 15-4 - DISCOUNT ON TOTAL SUBSCRIBER CAPACITY FOR A 3 PLATFORM SOLUTION

<TABLE>
<CAPTION>

                                        *

<S>                       <C>                                 <C>

                                        *

</TABLE>

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

                                                                   Page 19 of 32
<PAGE>   1119
                                                                 30th March 1998

3.2.9.   DC Uninterruptable Power Supply System For Switch Systems

3.2.9.1. The purchase and installation prices for DC UPS (2 hour battery
         back-up) for the MSSC/VLR, HPN/PCS, HLR, AUC/EIR, Messaging Platform
         and ILR are provided in Table 16.

          TABLE 16 - DC UPS POWER CAPACITY EXPANSION PRICE PER SAN SITE

<TABLE>
<CAPTION>
---------------------------------------------------------------
POWER CAPACITY KW          GROWTH ITEM       PRICE THOUSAND US$
---------------------------------------------------------------
<S>                        <C>               <C>

                                        *

</TABLE>

3.2.9.2  The installation price for the first installation and each subsequent
         expansion is   *   for the first 6.3kW and then   *   for each
         additional 6.3kW.

         One spares set (Price   *   ) is sufficient to support a DC UPS up to
         50.4kW.

         Growth Item 1 = 1 Battery Rack plus 1 Rectifier Unit

         Growth Item 2 = 1 Battery Rack plus 1 Rectifier Unit plus 1 Cabinet

         Growth Item 3 = 1 Battery Rack plus 1 Rectifier Unit plus 1
         Distribution Unit

         Note: The actual hardware delivered may vary as a consequence of the
         mix of platforms for which power is being supplied at any SAN site but
         the price for expansion will be as per the table.

3.2.9.3  NEC will provide details of the power consumptions of individual
         units/platforms as and when requested in order to facilitate ICO's
         planning of capacity expansions.

         * Confidential Treatment Requested and the Redacted Material has been
           separately filed with the Commission.

                                                                   Page 20 of 32
<PAGE>   1120
                                                                 30th March 1998

3.2.10    OSS (TMOS)

3.2.10.1  For the purpose of the OSS Software Licence fee, a Network Element
          shall be taken to mean a MSSC/VLR, an HLR, an AuC/EIR, a Messaging
          Platform, or an IS.41 ILR or any other equipment which may be
          connected into the ICO network for which connection to the OSS is
          required.

3.2.10.2  OSS is provided as hardware and software to the NMC and the back-up
          NMC and it should be noted that this is conditional on the back-up NMC
          being used as a cold standby ONLY.

3.2.10.3  A Software Licence fee of   *   shall be charged for each and
          every connection to a Network Element that is required by the OSS.

3.2.10.4  The Software Licence fee shall apply to every Network Element
          connection that is made above the initial connection of 22 Network
          elements. The initial 22 Network elements shall be charged at the firm
          fixed price as given in Change Order 3.

3.2.11.   System Integration and Programme Management

3.2.11.1. The Systems Integration and Programme Management (SI&PM) fee for the
          future expansion of traffic and subscriber capacity is:

          i.          *   thousand per annum

          ii.      SI&PM services will be provided at London

          iii.     the SI&PM fee will be charged for the calendar year starting
                   from 12 August 2000 or handover whichever is latest.

3.2.11.2. ICO may terminate the SI&PM services on 6 months notice.

3.2.12.   Legal Interception

3.2.12.1. System capacity can be expanded to handle more "targets" and more
          simultaneous intercepted calls. The system can also be expanded to
          increase delivery capacity of intercepted calls toward the Monitoring
          Centres (MCs).

3.2.12.2  The pricing for each element of expansion is given in Table 18.

              TABLE 18 LEGAL INTERCEPTION CAPACITY EXPANSION PRICE

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------
Item                                                                                  Quantity              Firm Fixed Price
---------------------------------------------------------------------------------------------------------------------------
<S>                                                                                   <C>                   <C>
Increase size of "target" list (LIAS & LIMS)                                             *                       *
----------------------------------------------------------------------------------------------------------------------------
Price for each additional module for E1 trunk handling the X3
interface (30 channels) per LIAS                                                         *                       *
----------------------------------------------------------------------------------------------------------------------------
Price for upgrade of LIAS, Router and LIMS to accept fixed connections                   *                       *
----------------------------------------------------------------------------------------------------------------------------
</TABLE>

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

                                                                   Page 21 of 32
<PAGE>   1121
                                                                 30th March 1998

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------
Item                                                                                  Quantity              Firm Fixed Price
---------------------------------------------------------------------------------------------------------------------------
<S>                                                                                   <C>                   <C>
Price for each additional connection of E0 (64Kbps) per LIAS(3)                          *                          *
----------------------------------------------------------------------------------------------------------------------------
Price for each additional group of 4 simultaneous switched connections
(ISUP) per LIAS                                                                          *                          *
----------------------------------------------------------------------------------------------------------------------------
Price for X.25 router for connection to Monitoring Centers (via PDPSN)
 per LIAS                                                                                *                          *
----------------------------------------------------------------------------------------------------------------------------
LIMS support for the above                                                               *                          *
----------------------------------------------------------------------------------------------------------------------------
Installation for any of the above options                                                *                          *
----------------------------------------------------------------------------------------------------------------------------
</TABLE>

3.2.12.3 Notes to Table 18:

         i.       Note 1: The "No Charge" options are provide Free of Charge
                  provided that the system is covered by warranty (initial or
                  extended).

         ii.      Note 2: Exclusive of all expenses which will be charged at
                  cost.

         iii.     Note 3: If fixed connections are not currently provided then
                  the upgrade of LIAS, Router and LIMS to accept fixed
                  connections will be required.

3.2.12.4 Please note that any necessary MSSC/VLR expansion is priced in
         accordance with the section 3.2.4.

3.3.     SPARES

3.3.1.1. The prices for the on-going supply of Spares to ICO for the purposes of
         maintaining ICO's stock of Spares to enable ICO to achieve the
         availability standards as defined in Section 8.11 is included within
         the Warranty prices.

3.3.1.2. The recommended expansion of spares over and above the packages offered
         in the SA to support the growth of the IGF and to exceed the levels of
         availability defined in Section 8.11 of the IGFR will be quoted at the
         time ICO orders additional capacity.

3.4.     EXTENDED WARRANTY (ICO OPTION AS DEFINED IN ANNEX 1 OF THE SOW)

3.4.1.   SBS Deluxe Support Service

3.4.1.1. The price for the SBS Deluxe Support Service option as specified in
         Section 5.3 of Annex 1 of the SOW is   *   for each two year
         period.

3.4.2.   MSSC Deluxe Support Service

3.4.2.1. The price for the MSSC Deluxe Support Service option specified in
         Section 5.4 in SOW Annex 1, excluding general purpose workstation
         hardware and operating systems, are as follows:-

         i.       during Year 1 and 2 (i.e. in the warranty period)
                     *   for a 2 year period covering 12 MSSCs, 2 HLRs,
                  2 AuC/EIRs, 3 Messaging Platforms, 3 ILR platforms, Legal
                  Interception and 2 OSSs.

         ii.      during Year 3 and 4,   *   for each 1 year period,
                  covering 12 MSSCs, 2 HLRs, 2 AuC/EIRs and 2 OSSs.

         iii.     during Year 3 and 4,   *   for each 1 year period,
                  covering 3 Messaging Platforms,3

         * Confidential Treatment Requested and the Redacted Material has been
           separately filed with the Commission.

                                                                   Page 22 of 32
<PAGE>   1122
                                                                 30th March 1998

                  ILR platforms, and Legal Interceptions. The break down of the
                  amount is shown below:

<TABLE>
<S>                                                                   <C>
                        (1) ILR platforms (refer to item 3.4.2.3)     *

                        (2) Messaging Platform                        *

                        (3) Legal Interception                        *
</TABLE>

         iv.      Note that new MSSC software releases incorporating new
                  functionality are not included within this service.

         v.       After year 4, pricing shall be based upon prevailing market
                  rates but limited by the NTE future price derived from the
                  prices quoted in paragraphs 3.4.2.1 and 3.4.2.3, adjusted by
                  the Price Adjustment factor as per Paragraph 3.5.2 for
                  Services.

3.4.2.2. The price of the MSSC Deluxe Support Service will be revised should ICO
         change the number of nodes in the IGF.

3.4.2.3. The options as defined in Annex 1 of the SOW also have a charge
         associated with Deluxe support as follows:

         i.       ILRs, for the 1st to 3rd ILR,   *   per ILR per annum
                  and for the 4th and thereafter   *   per ILR per Year

3.4.2.4. The price for the MSSC Deluxe Support Service II option specified in
         Section 5.5 of Annex 1 of the SOW is as specified in Paragraphs
         3.4.2.1, 3.4.2.2 and 3.4.2.3. of this Schedule.

3.4.2.5. Deluxe Support of HPN is priced at   *   per Year. This price
         provides one year of depot maintenance for the HPN hardware and
         software. Depot maintenance support does not include travel which if
         required will be charged in addition to the basic annual price. General
         purpose workstation hardware and operating systems are not included in
         this service.

3.4.3.   Extended Basic Warranty

3.4.3.1. The price for the Extended Basic Warranty options specified in Section
         5.2.1 of Annex 1 are:

         i.       RFT:   *   of FOB equipment price excluding NREand general
                  purpose workstation per annum. The warranty for the TWTs shall
                  be the same as that in clause 40.[16] of the SA.

         ii.      SBS: first year after completion of the warranty period
                  specific to clause 40 of the SA,   *   per annum for
                  12 SANs and thereafter   *   per annum for 12 SAN.

         iii.     MSSC:   *   of FOB equipment price, excluding NRE and general
                  purpose workstation, per annum.

         iv.      TNM EXCLUDING DCN*:   *   of FOB equipment price, excluding
                  NRE and general purpose workstation hardware, per annum. This
                  does not cover general purpose workstation hardware and OS
                  maintenance.

         v.       *: Because DCN equipment is provided from 3rd party resources,
                  no extended basic warranty is offered.

         vi.      NMC/SAN OSS:   *   of FOB Equipment price, excluding NRE and
                  general purpose workstation hardware, per annum. This does not
                  cover general purpose workstation hardware and OS maintenance.

         * Confidential Treatment Requested and the Redacted Material has been
           separately filed with the Commission.

                                                                   Page 23 of 32
<PAGE>   1123
                                                                 30th March 1998

3.5.     PRICE ADJUSTMENT

3.5.1.   Equipment Price Adjustment Formula

3.5.1.1. This Price Adjustment Formula shall be applied to the equipment
         described in Sections 3.2.1 to 3.2.10 inclusive and 3.2.12 and Section
         3.3.

3.5.1.2. Application of this price adjustment formula is subject to Section
         3.5.3.

3.5.1.3. The Contractor and ICO will negotiate in good faith to finalise the
         indices; As and Bs and ratios X, Y and Z, within three months of the
         SA. The Contractor will propose to ICO several options for the indices
         -- shown below in Paragraphs 3.5.1.4,3.5.1.5, 3.5.1.6, 3.5.1.7,
         3.5.1.8, 3.5.1.10, 3.5.1.11, 3.5.1.12, 3.5.1.13 and 3.5.2 -- and will
         also provide detail of at least the last three years recorded indices
         and their sources.

3.5.1.4. Price in year of purchase

<TABLE>
<S>                                                                   <C>

                                        *

</TABLE>

3.5.1.5. NEC - J Indices: Antenna Subsystem:

         i.       "X" = *

         ii.      "Y" = *

         iii.     "Z" = *

         iv.      Index A = Monthly wholesale price index of metals & related
                  products, Japan

         v.       Index B = Monthly cash earning index (nominal) of regular
                  workers in Manufacturing Industries (Contract Cash Earning),
                  Japan

3.5.1.6. NEC - J Indices: Other Equipment

         i.       "X" = *

         ii.      "Y" = *

         iii.     "Z" = *

         iv.      Index A = Monthly whole sale price index of Electrical
                  Machinery, Japan

         v.       Index B = Monthly cash earning index (nominal) of regular
                  workers in Manufacturing Industries (Contract Cash Earning),
                  Japan

3.5.1.7. The NEC - J indices shall be extracted from "Economics Statistics
         Monthly" published monthly by the Bank of Japan and be applied to the
         above formula. Should the indices for the months of new order not be
         available, then the latest indices obtainable shall be applied.

3.5.1.8. HNS Indices

         i.       "X" = *

         ii.      "Y1" =   *   (Note that factor "Y" as shown in the formula
                  has, for HNS, been split into two components, "Y1" and "Y2".
                  "B" has also been split into two respectively "B1" and "B2".)

         iii.     "Y2" = *

         * Confidential Treatment Requested and the Redacted Material has been
           separately filed with the Commission.

                                                                   Page 24 of 32
<PAGE>   1124
                                                                 30th March 1998

          iv.      "Z" = *

          v.       Index A = US PPI for Electrical and Electronic Machinery
                   Equipment and Supplies, not seasonally adjusted

          vi.      Index B1 = USA Employment cost index for total compensation,
                   durable goods manufacturing, not seasonally adjusted

          vii.     Index B2 = Electrical / Electronics Industry Wages Index,
                   India

3.5.1.9.  The Producer Price Index (PPI) is calculated by US Bureau of Labor,
          and is widely recognized among business people, economists,
          statisticians, and accountants for price adjustment clauses in
          contracts.

3.5.1.10. Index A and B1 will be as published by the US Department of Labor
          Bureau of labor statistics.

3.5.1.11. Index B2 will be as defined as described in Paragraph 3.5.1.3.

3.5.1.12. ETL Indices:

          i.       "X" = *

          ii.      "Y" = *

          iii.     "Z" = *

          iv.      Index A = Telephone Equipment Capital Goods Index, World

          v.       Index B = Electrical / Electronics Industry Wages Index,
                   Sweden

3.5.1.13. NEC/A Indices:

          i.       "X" = *

          ii.      "Y" = *

          iii.     "Z" = *

          iv.      Index A = Price index of material as published by Australian
                   Bureau of Statistics Cat. No. 6412.0 group 33

          v.       Index B = Electrical/Electronics Industry Wages Index,
                   Australia

3.5.2.    Basic Price Adjustment Formula for Services

3.5.2.1.  This Price Adjustment formula shall be applied to the installation,
          integration and project management services listed in Sections 3.2.1
          to 3.2.11.

3.5.2.2.  Application of this price adjustment formula is subject to Section
          3.5.3.

3.5.2.3.  The Basic Price adjustment formula for services is:

                                       *

3.5.2.4.  Each member of the Contractor's team price adjustment for services
          shall use the same wages Indices ("B"s, "B1"s and "B2"s) given in
          Section 3.5.1 and with the same proportion of B1 and B2 as given in
          Section 3.5 to make up the 0.8 coefficient.

          * Confidential Treatment Requested and the Redacted Material has been
            separately filed with the Commission.

                                                                   Page 25 of 32
<PAGE>   1125
                                                                 30th March 1998

3.5.3.   Application of Pricing Adjustment Formulae

3.5.3.1. For equipment orders placed by ICO on, or before, 31 March 1998 for a)
         delivery, installation and integration with the initial purchase in the
         year 2000 and b) where the capacities do not exceed ICO's projected
         year 2002 requirements, the Not To Exceed price of the equipment,
         installation and integration shall be determined in accordance with the
         prices described in Section 3.2.1 to 3.2.10 inclusive without
         application of the Price Adjustment formula described in Section 3.5.1
         and 3.5.2. The actual price of the equipment, installation and
         integration shall be agreed at the date ICO places the order and shall
         take into account the then prevailing market conditions and not
         exceeding the prices charged to other customers ordering similar
         quantities of similar types of equipment.

3.5.3.2. For equipment orders placed by ICO:

         i.       on, or after, 1 April 1998, or

         ii.      for delivery, installation and integration after year 2000 or

         iii.     in excess of ICO's projected year 2002 requirements.

         The Price Adjustment formulae in Section 3.5.1 and 3.5.2 shall apply
         unless the actual price adjustment on or after 1 April 1998 exceeds
         three times or more the average annual adjustment rate during the
         period March 1995 to March 1997, determined using the Price Adjustment
         formulae in Section 3.5.1 and 3.5.2. In such event the actual price
         shall be determined taking into account the then prevailing market
         conditions and not exceeding the prices charged to other customers
         ordering similar quantities of similar types of equipment

3.6.     PAYMENT SCHEDULE

3.6.1.1. The equipment payment terms shall be:

         i.          *   of value on order

         ii.         *   of value on shipment

         iii.        *   of value on acceptance

3.6.1.2. The installation and SI&PM charges payment terms shall be:

         i.          *   of value on order

         ii.         *   of the value in equal monthly instalments, in arrears,
                  during the duration of the programme

         iii.        *   of the value upon acceptance.

3.6.1.3. The spares payment terms shall be:

         i.          *   of the value on order

         ii.         *   on delivery to the specified site.

4.       EQUIPMENT ORDER PROCESS

4.1.     NORMAL PROCESS

4.1.1.1. The Contractor and the Purchaser agree to develop a process for
         handling the ordering and delivery of

         * Confidential Treatment Requested and the Redacted Material has been
           separately filed with the Commission.

                                                                   Page 26 of 32
<PAGE>   1126
                                                                 30th March 1998

         equipment. The main principles of the process are detailed in the
         following paragraphs. Items in [] are subject to review during the
         development of the process.

4.1.1.2. ICO will provide the Contractor(s) with a rolling forecast of future
         demand estimates [the format for this is as per Table 1 of Annex 1 of
         the SOW]. The forecast will be revised on an [annual] basis and
         supplied to the Contractor(s) on [Specific date].

4.1.1.3. ICO will place specific orders for equipment on Contractor(s)] in the
         [format specified in Table 1 of Annex 1, showing separately the total
         installed capacity, the incremental capacity and the final installed
         capacity after the purchase.] The total incremental capacity to be
         supplied under the order for all sites shall be used for the
         calculation of the price as defined in Section 3.

4.1.1.4. The FOB date shall be within nine months of receipt of order from ICO.

4.1.1.5. Contractor(s) shall be responsible for the management and co-ordination
         of all contractor staff and the successful installation, testing and
         bringing into service of the new tranche of equipment at each site.

4.1.1.6. The installation and test schedule will be agreed at the time of the
         placement of the order. The installation and acceptance shall be
         completed no more than 6 months after the delivery of equipment to the
         site unless agreed by ICO.

4.1.1.7. Contractor(s) shall plan in advance with ICO to minimise any downtime
         required for installation of expansion blocks. The Contractor shall
         work with ICO/Operator to schedule the downtime in appropriate time of
         day for ICO's business purposes.

4.2.     EXPEDITED PROCESS

4.2.1.1. ICO may request at any time an expedited order, delivery and bringing
         into service capacity expansion.

4.2.1.2. The Contractor will make all reasonable efforts to provide shortened
         delivery lead times for all, or part, of the order, as requested.

4.2.1.3. ICO can negotiate and give contractor incentives to shorten the lead
         time from receipt of order to bringing into shipment(FOB) and
         installation and bringing into service.

4.2.1.4. The expedited process may apply to partial shipments of a normal order
         or to a special purpose order which ICO may raise.

5.       PRICING OF SOFTWARE RELEASES

5.1.     GENERAL PRINCIPLES

5.1.1.1. Contractor(s) will provide ICO with releases of operating software on
         "as need be" basis or upon new feature release that has been purchased
         by ICO except switch(MSSC) subsystem software.

5.1.1.2. Contractor will provide regular releases of operating software for
         Switch(MSSC) subsystem which will provide new functionality in
         accordance with Supply Agreement.

5.1.1.3. The software releases will include fixes to faults, a basic package of
         new functionality and a range of optional features.

5.1.1.4. The price schedule of the new software releases will be submitted
         separately 90 days in advance of the new releases.

                                                                   Page 27 of 32
<PAGE>   1127
                                                                 30th March 1998

5.2.     MSSC SOFTWARE UPGRADE PRICING

5.2.1.1. The pricing per annum for subscription to the standard CME 20 (MSSC)
         Software release programme for the period 1 January 2001 until December
         2003 is as shown in Table 19. The price for the upgrade depends upon
         the size of network.

                    TABLE 19 - MSSC SOFTWARE UPGRADE PRICING

<TABLE>
<CAPTION>
                                        *
<S>                    <C>                      <C>

                                        *

</TABLE>

5.2.1.2. The above pricing is firm fixed price for the three year term.
         Subsequent pricing will be negotiated at the end of the three year term
         and will be linked to an index to be agreed.

5.2.1.3. The above software subscription provides ICO with the right to all
         basic software upgrades for the MSSC and HLR nodes which are made
         available within the subscription period. ICO may also choose to
         purchase optional features in addition.

5.2.1.4. Note that the above prices exclude any installation and materials costs
         which may be charged and which will be quoted at the time of upgrade.

5.2.1.5. The annual MSSC software subscription is subject to the discount
         structure shown in Table 20 based on the total number of installed
         Exchange Terminating Circuits (ETCs) in the ICO network at the start of
         the subscription year.

                   TABLE 20 - MSSC SOFTWARE DISCOUNT STRUCTURE

<TABLE>
<CAPTION>

                                        *

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

                                        *

</TABLE>

5.2.1.6. The annual HLR software subscription is subject to the discount
         structure per HLR as shown in Table 21, based on the number of
         registered subscribers in the ICO network at the start of the
         subscription year.

                   TABLE 21 - HLR SOFTWARE DISCOUNT STRUCTURE

<TABLE>
<CAPTION>

                                        *

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

                                        *

</TABLE>

5.2.1.7  The feature, non-transparent data greater than 9.6kbit/s, will form a
         part of R9 as per the price detailed in paragraph 5.2.1.1. R9 will be
         made available for integration and testing before 31st December 2000.
         The decisions to integrate and test R9 before 31st December 2000 shall
         be at the sole discretion of ICO. NEC

         * Confidential Treatment Requested and the Redacted Material has been
           separately filed with the Commission.

                                                                   Page 28 of 32
<PAGE>   1128

                                                                 30th March 1998

         will be responsible for the testing and integration of this feature
         within the IGF, if ICO decides to proceed with the R9 implementation.

5.3      LEGAL INTERCEPTION SOFTWARE UPGRADE PRICING

5.3.1.1. The pricing per annum for subscription to the standard Legal
         Interception Software release programme for the period 1 January 2001
         until 31 December 2003 is given in Table 22. The prices below are for
         the LIAS and LIMS for the Legal Interception solution as specified in
         Change Order No. 3. Software upgrades for the MSSC/VLR are covered by
         the existing Supply Agreement.

          TABLE 22 - LEGAL INTERCEPTION SYSTEM SOFTWARE UPGRADE PRICING

<TABLE>
<CAPTION>

                                        *

<S>                                                                <C>                                     <C>

                                        *

</TABLE>

5.3.1.2. The above pricing is fixed for the three-year term. Subsequent pricing
         will be negotiated at the end of the three-year term. The above
         software subscription provides ICO with the right to all basic software
         upgrades for the LIAS and LIMS nodes which are made available within
         the subscription period. Software upgrades are issued approximately
         once every six months. Software upgrades include fault corrections,
         module enhancements and new features.

5.3.1.3. Please note that the above prices exclude any installation and
         materials costs which may be charged in addition.

5.4      ETC SOFTWARE UTILISATION PRICING

5.4.1.1  Due to the way in which NEC supplies ETC's by magazine/cabinet there
         will be, from time to time and from site to site, an excess of ETC's
         supplied to that required to support the traffic capacities requested
         by ICO.

5.4.1.2  Should ICO wish to increase the capacity of MSSC's where there are
         unused magazines of ETC's these may be brought into service subject to
         payment of the Software Licence fee of  *  per magazine (of 14
         ETC's) brought into service.

5.5      NATURAL LANGUAGE SUPPORT

5.5.1.1  A Software Licence fee for Natural Language Support is payable
         according to a) the number of subscribers on the HLR's, and b) the
         number of ETC's in use within the SAN's.

5.5.1.2  For increases in the number of subscribers on the HLR's or number of
         ETC's in the SAN's there will be a software licence fee as given in
         Table 23.

         TABLE 23 - NATURAL LANGUAGE SUPPORT SOFTWARE EXPANSION PRICING

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

                                                                   Page 29 of 32
<PAGE>   1129
                                                                 30th March 1998

<TABLE>
<CAPTION>
         ---------------------------------------------------------------
          NODE               PRICING PARAMETER               PRICE (US$)
         ---------------------------------------------------------------
<S>                       <C>                                <C>
          MSSC                       *                           *
         ---------------------------------------------------------------
          HLR                        *                           *
         ---------------------------------------------------------------
</TABLE>

6.       PRICING AND PROCESS FOR DEVELOPMENT OF ICO SPECIFIC FUNCTIONALITY

6.1.     INTRODUCTION

6.1.1.1. The Contractor recognises that ICO will require the on-going
         development of ICO specific functionality and agrees to develop a
         process to support ICO's continued development

6.1.1.2. The process and costs of development and integration of Future
         Requirements will be developed using the concepts as described in
         Section 6.2, 6.3, 6.4 and 6.5.

6.2.     FEASIBILITY STUDY

6.2.1.1. ICO will request the Contractor(s) to undertake a feasibility study for
         a particular element of functionality. The process that shall be
         followed is:

         i.       ICO and the Contractor(s) will hold functionality development
                  meetings on as need be basis either initiated by ICO or by the
                  Contractor., ICO will provide a forecast, short and long term,
                  of the ICO specific functionality that may be required.

         ii.      ICO will request the Contractor to provide 'rough order of
                  magnitude' costs (ROM) and the development and installation
                  schedule for ICO selected functions.

6.2.1.2. The Contractor shall either:

         i.       deliver a rough order of magnitude cost, including a program
                  for the development of the functionality including the
                  detailed specification, and the program for installation and
                  integration of the functionality,

         ii.      or provide a commitment to delivering a Firm Fixed Price,
                  including development, testing and installation schedule on an
                  agreed upon schedule between ICO and contractor.

6.3.     DELIVERY

6.3.1.1. The delivery of the additional functionality shall be completed on an
         agreed upon schedule between ICO and the contractor.

6.3.1.2. The programme for delivery shall include milestones as appropriate to
         the needs of each development and may include, but are not limited to:

         i.       design review meeting

         ii.      critical design review meeting

         iii.     test plan review

         * Confidential Treatment Requested and the Redacted Material has been
           separately filed with the Commission.

                                                                   Page 30 of 32
<PAGE>   1130
                                                                 30th March 1998

         iv.      rollout plan review

         v.       installation plan

         vi.      acceptance and handover plan

6.4.     ICO SPECIFIC FUNCTIONALITY PRICING

6.4.1.1. The Contractor shall provide ICO firm fixed price information that
         includes:

         i.       Non-recurring expenditure where appropriate

         ii.      equipment prices

         iii.     spares

         iv.      software licences

         v.       installation and testing

         vi.      project management and systems integration

         vii.     warranty

         viii.    payment schedule.

6.5.     PRICE METHODOLOGY

6.5.1.1. In order to establish the firm fixed price for ICO specific
         functionality, the price level shall be agreed in the following manner.

         i.       Normal commercial negotiations following submission of
                  technical and commercial proposals

         ii.      Price justification initially based on the prices included in
                  the Contractor's Supply Agreement and taking into
                  consideration any changes in exchange rates and agreed
                  escalation formulae

         iii.     If agreement cannot be reached on the above basis further
                  price justification will be provided based on world-wide
                  market price comparisons.

         iv.      If agreement cannot be reached the Contractor will provide
                  detailed estimates of the work to be performed with
                  corresponding hardware, software and manpower costings.

                                                                   Page 31 of 32
<PAGE>   1131
                                                                 30th March 1998

7.       PRICE CHANGE HISTORY

The followings are the summary table of Price Change History.

                  TABLE 24 - SA PRICE CHANGE HISTORY (US$'000S)

<TABLE>
<CAPTION>

                                        *

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

                                        *

</TABLE>

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

                                                                   Page 32 of 32

<PAGE>   1132
                         CHANGE ORDER NO:3 ATTACHMENT 3

                  2. SCHEDULE 9 - PRICING SCHEDULE APPENDIX 1

                      * [PAGES 1 TO 18 HAVE BEEN REDACTED]

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

<PAGE>   1133
                                        *
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<PAGE>   1134
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<PAGE>   1135
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                                        *
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<PAGE>   1150
                                       *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

                                    Page 18
<PAGE>   1151
                         CHANGE ORDER NO:3 ATTACHMENT 3

               3.       SCHEDULE 9 - PRICING SCHEDULE APPENDIX 2

                          * [175 PAGES HAVE BEEN REDACTED]

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

<PAGE>   1152

                         CHANGE ORDER NO: 3 ATTACHMENT 4

             SCHEDULE 11 - PAYMENT SCHEDULE CLASSIFICATION SUMMARY
<PAGE>   1153
                                                            IGF Supply Agreement
                                                    Contract No ICOO97 - 1016/GW
                                              Attachment 4 to Change Order No. 3

Both parties acknowledge and agree the need to modify the Payment Schedule
within Schedule 11 to the Supply Agreement together with the Payment Schedule
Classification Summary thereto as a result of the diverse changes to the Supply
Agreement agreed by the parties within this Change Order No. 3.

The parties undertake that each will use its best efforts to ensure that any and
all necessary changes to Schedule 11 are agreed between them no later than 30
April 1998. Such modified Schedule shall, thereafter, be incorporated into, and
form part of, the Supply Agreement dated 3rd March 1997 without the need for the
parties to formalise the incorporation of the mutually agreed revised Schedule
11 by way of further Change Order.
<PAGE>   1154
                         CHANGE ORDER NO:3 ATTACHMENT 5

              SCHEDULE 13 - IGFR VERSION 26.1 (REPLACEMENT PAGES)
<PAGE>   1155
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                IGFR PAGE CHANGES - Version 26.1 (30 March 1998)

<TABLE>
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<S>                                                   <C>
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                                                                 Page (i) of (5)
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<PAGE>   1156
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                 ICONET Ground Facilities Requirements      VERSION : 26.1
                                                            30 MARCH 1998

<TABLE>
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<S>                                                   <C>
4.8.9 (2)                                             41
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4.8.9 (9)                                             41
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4.8.9 (21)                                            41
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4.8.9 (23)                                            41
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4.9.4.                                                42
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5
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5.2.2.1.                                              47
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5.2.2.2.                                              47
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5.2.6.2.                                              49
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5.2.6.2.1.                                            49
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5.2.6.2.2.                                            49
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5.2.6.2.3.                                            49
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6
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6.5.1.1.                                              55
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6.5.1.4.a                                             55
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6.5.1.14.                                             55a
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6.5.1.18.                                             55a
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6.5.1.19.                                             55a
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6.5.1.20.                                             55a
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6.5.1.21.  (*)                                        55b
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6.5.1.22.  (*)                                        55b
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Figure 6-1                                            57
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6.7.1.5.                                              60
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6.29.                                                 82
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6.29.1 (1)                                            82
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6.29.1 (2)                                            82
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6.29.1 (3)                                            82
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7
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7.5.2.1.                                              163
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7.5.2.15.                                             164
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[ICO ICON]                                                  EN-IG-ICO-RQ/000014
                 ICONET Ground Facilities Requirements      Version : 26.1
                                                            30 March 1998
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<TABLE>
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<S>                                                   <C>
7.8.4.10.2.1.                                         183
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7.8.4.10.2.1(2)                                       183
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7.8.4.10.2.1(7)                                       183
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7.8.4.10.3.1(8)                                       183
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7.8.4.10.3.1(10)                                      183
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7.8.4.10.4.1.                                         183
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7.8.4.10.4.5(6)                                       184
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7.8.11.1.2.                                           204
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7.8.11.1.3.                                           204
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7.8.11.1.3 (1)                                        204
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7.8.11.1.3 (1b)                                       204
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7.8.11.1.3 (1c)                                       204
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7.8.11.1.3 (1d)                                       204
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7.8.11.1.3 (1e)                                       204
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7.8.11.1.3 (2)                                        204
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7.8.11.1.4.                                           204
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7.8.11.1.5.                                           204
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7.8.11.2.1.                                           204a
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7.8.11.2.2.                                           204a
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7.8.11.2.3.                                           205
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7.8.11.2.4.                                           205
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7.8.11.2.5.                                           205
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7.8.11.3.1.                                           205
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7.8.11.3.2.                                           205
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7.8.11.4.1.                                           205
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7.8.11.4.2.                                           205
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7.8.11.4.2(1)                                         205
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7.8.11.4.2(2)                                         205
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7.8.11.4.2(3)                                         205
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7.8.11.4.2(4)                                         205
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7.8.11.4.2(5)                                         205
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7.8.11.4.3.                                           205
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9
--------------------------------------------------------------------------------
9.1.2(1)                                              221
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9.1.6.                                                221
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Table 9.1(10)                                         222
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Table 9.1(49)                                         227
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Table 9.1(68)                                         227
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Table 9.1(68.1)                                       227a
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Table 9.1(68.2)                                       227a
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Table 9.1(68.3)                                       227a
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Table 9.1(75)                                         228
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Table 9.1(78)                                         229
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9.3.5                                                 234
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9.3.5.1.                                              234
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Table 9-6 (1.1.3)                                     234
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Table 9-6 (2.1.)                                      234
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Table 9-6 (2.3)                                       236
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Table 9-6 (2.3.1)                                     236
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Table 9-6 (2.3.2)                                     236
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<TABLE>
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<S>                                                   <C>
Table 9-6 (2.3.3)                                     236
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Table 9-6 (2.3.4)                                     236
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Table 9-6 (2.3.4.1)                                   236
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Table 9-6 (2.3.4.2)                                   236
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Table 9-6 (2.3.5)                                     236
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Table 9-6 (2.3.6)                                     236
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Table 9-6 (3)                                         236
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Table 9-6 (3.1)                                       236
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Table 9-6 (3.1.1)                                     236
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Table 9-6 (3.1.1.1)                                   236
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Table 9-6 (3.1.1.2)                                   236
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Table 9-6 (3.1.1.3)                                   236
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Table 9-6 (3.1.2)                                     236
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Table 9-6 (3.1.2.1)                                   236
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Table 9-6 (3.1.3)                                     236
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Table 9-6 (3.1.3.1)                                   236
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Table 9-6 (3.1.3.2)                                   236
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Table 9-6 (3.1.3.3)                                   236
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Table 9-6 (3.2)                                       236
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Table 9-6 (3.2.1)                                     236
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Table 9-6 (3.2.1.1)                                   237
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Table 9-6 (3.2.1.2)                                   237
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Table 9-6 (3.2.1.3)                                   237
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Table 9-6 (3.2.2)                                     237
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Table 9-6 (3.2.2.1)                                   237
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Table 9-6 (3.2.3)                                     237
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Table 9-6 (3.2.3.1)                                   237
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Table 9-6 (3.2.3.2)                                   237
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Table 9-6 (3.2.3.3)                                   237
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Table 9-6 (3.3)                                       237
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Table 9-6 (3.3.1)                                     237
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Table 9-6 (3.3.1.1)                                   237
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Table 9-6 (3.3.2)                                     237
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Table 9-6 (3.3.2.1)                                   237
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Table 9-6 (3.3.3.)                                    237
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Table 9-6 (3.3.3.1)                                   237
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Table 9-6 (3.3.3.2)                                   237
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Table 9-6 (3.3.3.3)                                   237
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9.3.6                                                 237
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9.3.6 (1)                                             237
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9.3.6 (1.1)                                           237
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9.3.6 (1.1.1)                                         237
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9.3.6 (1.1.2)                                         237
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9.3.6 (1.1.3)                                         237
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9.3.6 (1.1.4)                                         237
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9.3.6 (1.1.5)                                         237
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9.3.6 (1.2)                                           237
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9.3.6 (1.2.1)                                         237
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9.3.6 (1.2.2)                                         237
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9.3.6 (1.2.3)                                         237
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9.3.6 (1.2.4)                                         237
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<TABLE>
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<S>                                                   <C>
9.3.6 (1.2.5)                                         237
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9.3.6 (1.2.6)                                         237
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9.3.6 (1.2.6.1)                                       237
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9.3.6 (1.2.6.2)                                       237a
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9.3.6 (1.2.6.3)                                       237a
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9.3.6 (1.2.6.4.)                                      237a
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12
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12.1.2.2.                                             244
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12.1.2.3.                                             244
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12.1.2.4.                                             244
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12.4.2.5.                                             244
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12.1.2.8.                                             244
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</TABLE>

NOTE: (*) denotes paragraphs revised between IGFR Version 26 Draft Revision 1.1
(issued 27 March 1998), and the final issue incorporated in Change Order 3,
Version 26.1

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         4.1.2.1.4. The IGF shall support Acknowledgements in accordance with TS
         GSM 03.40.

         4.1.2.1.5 The IGF shall support the encoding of SMS messages in
         characters of several alphabets.

         4.1.2.1.6 The available encodings shall include unstructured binary
         data (maximum 140 octets) and International Alphabet No.5 (160
         characters).

4.1.3. FACSIMILE SERVICES

4.1.3.1. FACSIMILE GROUP 3 (UP TO 9600 BPS) USING GSM  DEFINITION

         4.1.3.1.1. The IGF shall support the GSM standard automatic facsimile
         service, as defined in TS GSM 02.03, with exception of the deviations
         listed below.

         4.1.3.1.2. The facsimile modem speed shall be up to and including 9600
         bps.

         4.1.3.1.3. The IGF shall support transparent transmission of fax data.

         4.1.3.1.4. This service shall be subject to the Air Interface
         definition being for the use of maximum 4-slot transmission in
         accordance with the UT classmark.

         4.1.3.1.5. The IGF shall support fax towards the PSTN, in accordance
         with ITU recommendation T30.

         4.1.3.1.6. The IGF shall support fax error correcting mode (ECM)
         towards the PSTN, in accordance with ITU recommendation T30 Annex A.

4.1.3.2. FACSIMILE GROUP 3 (UP TO 14.4 KBPS) USING GSM STANDARD

         4.1.3.2.1 The IGF shall support higher rate automatic facsimile Group 3
         connections on the basis of the emerging GSM phase 2+ High Speed
         Circuit Switched Data (HSCSD) services as defined by TS GSM 02.03 and
         TS GSM 02.34 and with the exception of the deviations listed below. For
         further details of the Ericsson implementation of these services see
         ETL document LK/XX 1056-272.

         4.1.3.2.2. The data rates at the user interface supported by the system
         shall include 12 and 14.4 kbps (V.17).

         4.1.3.2.3. This service requires up to 6 slots air interface
         transmission and shall only be provided to UTs with corresponding
         capabilities as indicated by their classmarks.

         4.1.3.2.4. The call detail records produced by the MSSC shall include
         the number of traffic channels (i.e. air interface slots) assigned at
         the start of charging. If the number of traffic channels used changes
         during the call, the new assigned number of traffic channels shall be
         stored, as well, in the call data record.

         4.1.3.2.5. The IGF shall support error correcting mode (ECM) in
         accordance with ITU-T Recommendation T.30 Annex A.

         4.1.3.2.6. From a service provision perspective, services specified in
         4.1.3.1 and 4.1.3.2 shall be considered as one service.

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4.1.3.3. ALTERNATE VOICE/GROUP 3 FACSIMILE USING GSM DEFINITION

         4.1.3.3.1. The IGF shall support the GSM standard alternate
         speech/group 3 facsimile service, as defined in TS GSM 02.03, with the
         exception of the deviations listed below.

         4.1.3.3.2. The speech component of the connection shall be in
         accordance with the requirements for the ICO telephony service as
         described above.

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         4.1.3.3.3. The facsimile component of the connection shall be in
         accordance with the requirements for the ICO automatic group 3
         facsimile service as described above, but limited to a maximum of
         4.8kbps.

         4.1.3.3.4. The IGF shall support the use of the GSM in-call
         modification procedure.

4.1.3.4. ALTERNATE VOICE/GROUP 3 FACSIMILE (UP TO 2,400BIT/S) USING INBAND
         DETECTION

         4.1.3.4.1. The IGF shall detect the usage of in-band fax tones. Upon
         such detection, the IGF shall perform an in-call modification to change
         the voice codecs in IGF and UT from voice mode to fax mode, transparent
         to the MSSC. The GSM bearer capability shall remain speech.

         4.1.3.4.2. The facsimile data rates when using inband detection shall
         be limited to 2400bps.

         4.1.3.4.3. The IGF shall support in-band alternative voice/facsimile
         operation only where the facsimile data is transported over a speech
         circuit. That is, where there is only one bearer capability indication
         at call setup, and that bearer capability is speech.

         4.1.3.4.4. The voice codec shall support the detection of audio
         facsimile tones.

         4.1.3.4.5. The IGF shall support the switch from voice to facsimile
         mode and vice versa.

4.1.3.5. DYNAMIC ASSIGNMENT OF VOICE/FAX IWF RESOURCES

         4.1.3.5.1. The IGF shall support dynamic assignment of IWF resources
         for Speech/Fax.

4.2. BASIC BEARER SERVICES

4.2.1. CIRCUIT MODE DATA SERVICES (UP TO 9600 BPS) USING GSM STANDARD

         4.2.1.1. The IGF shall support the following GSM standard circuit-mode
         data services listed below, as defined in TS GSM 02.02 subject to the
         clarifications included below:

         4.2.1.2. Asynchronous data (BS 2x), transparent and non-transparent, at
         bit rates of 300, 1200, 1200/75, 2400, 4800 and 9600 bps. For
         Non-transparent rates of 2400bit/s and below the network shall use two
         slots for transmission and require the UT to transmit on one slot if
         the classmark indicates that it can only transmit on a single slot,
         otherwise the UT shall transmit using two slots.

         4.2.1.3. Synchronous data (BS 3x), transparent, at bit rates of 1200,
         2400, 4800, and 9600 bps.

         4.2.1.4. Access from a mobile station to a packet switched data network
         shall be possible via the PAD (Packet Assemble/Disassembly) facility of
         the Data Interworking Function of IGF or via a PAD accessible via the
         switched telephone network. In both cases the same asynchronous rates
         300, 1200, 2400, 1200/75 and 4800 bps shall be supported.

         4.2.1.5. The Data Interworking Function of IGF shall support basic
         packet services at 2400, 4800 and 9600 bps. Support of basic packet
         service in IGF is the passing of X.25 packet layer information. The
         services use either a modem or the Unrestricted Digital Information
         (UDI) Transfer Capability of the ISDN, for the UDI case X.31 HDLC flag
         stuffing is used for rate adaptation. With a modem both transparent and
         non-transparent services are supported. With UDI, utilising the HDLC
         flag stuffing towards ISDN, only synchronous non-transparent services
         are supported.

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4.2.2. CIRCUIT MODE DATA SERVICES (UP TO 38.4 KBPS) USING GSM STANDARD

         4.2.2.1. The IGF shall support High Speed Circuit Switched Data (HSCSD)
         services in accordance with the emerging GSM phase 2+ services as
         defined in TS GSM 02.02 and TS GSM 02.34 subject to the clarifications
         included below. For further details of the Ericsson implementation of
         these services see ETL document LK/XX 1056-272.

         4.2.2.2. The IGF shall support subscription to the following bearer
         services:

                  1. general asynchronous (BS 20)

                  2. general synchronous (BS 30)

         4.2.2.3. The IGF shall support both transparent and non-transparent
         services. Synchronous non-transparent services for data rates above
         9600 bit/s shall be available no later than by the release date of
         CME20 R9

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         4.2.2.4. The IGF shall support autobauding for non-transparent
         services. For non-transparent services it shall be possible to change
         the data rate during the call.

         4.2.2.5. The IGF shall support the modification of the number of
         channels allocated to a particular non-transparent HSCSD connection via
         in-call modification and on handover.

         4.2.2.6. If during the assignment of traffic channels or at handover a
         traffic channel congestion is encountered, the call set-up or handover
         for non-transparent services can be carried using less channels than
         initially requested.

         4.2.2.7. Circuit mode data services shall be supported by the system
         for symmetric services with the following requirements:

                  1. Air Interface rates of 2.4, 4.8, 9.6, 14.4, 19.2, 28.8, and
                     38.4 kbit/s;

                  2. Signalling code points for the following rates: 0.3, 1.2,
                     1.2/0.075, 2.4, 4.8, 9.6, 14.4, 19.2, 28.8, and
                     38.4 kbit/s;

                  3. For 3.1kHz modem access refer to section 6.18;

                  4. For UDI access, rates of 2.4, 4.8, 9.6, 14.4, 19.2, 28.8,
                     and 38.4 kbit/s

         4.2.2.8. This service shall only be provided to UTs which can utilise
         more than 2 air interface slots as indicated by their classmarks.

         4.2.2.9. The IGF shall support data compression based on ITU-T V.42bis
         towards both the PSTN and the UT.

         4.2.2.10. The call detail records for mobile originated and mobile
         terminated cases produced by the MSSC shall include the number of
         traffic channels (i.e. air interface slots) assigned at the start of
         charging. If the number of traffic channels used changes during the
         call, the new assigned number of traffic channels shall be stored, as
         well, in the call data record.

         4.2.2.11 The IGF shall support the following asymmetric rates for
         non-transparent services; 9600/2400bit/s and 4800/2400bit/s, network to
         transmit at the higher rate as indicated by the classmark. For the
         direction of transmission from the UT to the IGF, these services shall
         involve transmission on only one air interface slot.

4.2.3.  ALTERNATE VOICE AND DATA SERVICES USING VOICE CODEC SIGNALLING

         4.2.3.1. For mobile terminated and mobile originated calls, the IGF
         shall detect in-band data tones and modulation. Upon such detection,
         the IGF shall perform an in-call modification to change the voice
         codecs in IGF and UT from voice mode to data mode, transparent to the
         MSSC. The GSM bearer capability shall remain speech

         4.2.3.2. The data rates for alternate voice/data operation shall be
         limited to 2400bps.

         4.2.3.3. The voice codec shall support the detection of audio modem
         tones.

         4.2.3.4. The IGF shall support the switch from voice to data mode and
         vice versa.

4.3. GSM SUPPLEMENTARY SERVICES

4.3.1. GENERAL

         4.3.1.1. The IGF shall support the subscription (provision/withdrawal)
         of each of the GSM supplementary services on an individual subscriber
         (IMSI) basis.

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         4.3.1.2. The IGF shall support the management of the supplementary
         services by the end-user (registration/erasure/activation/deactivation/
         interrogation/password control) as defined in TS GSM 02.04.

         4.3.1.3. The IGF shall support the registration/erasure/activation and
         deactivation of each of the supplementary services on a basic service
         group basis as defined in TS GSM 02.04.

         4.3.1.4 The IGF shall support the use of the Unstructured Supplementary
         Service Data (USSD) mechanisms for interaction with the end-user as
         defined in TS GSM 02.90, TS GSM 03.90 and TS GSM 04.90.

         4.3.1.5. Both user and network initiated USSD shall be included, as
         well as the capability to handle the USSD dialogues initiated from
         applications in the HLR; and from applications that use the USSD
         procedures to communicate with the HLR and are located in external
         nodes.

4.3.2.  LINE IDENTIFICATION SERVICES

4.3.2.1. CALLING LINE IDENTIFICATION PRESENTATION (CLIP)

         4.3.2.1.1. The IGF shall comply with the GSM phase 2 Calling Line
         Identification Presentation (CLIP) service as defined in TS GSM 02.81,
         TS GSM 03.81 and TS GSM 04.81.

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4.4.1.2. HPN PRIVACY

         4.4.1.2.1. The HPN transmission to the UT shall be encrypted by a [TBD]
         encryption algorithm. The algorithm shall be supplied by ICO. The
         algorithm shall use a time variant key (Kh) which is derived from the
         subscriber TMSI and HPN Frame Id. The application of HPN privacy based
         on the TMSI shall not compromise the existing security mechanisms
         applied to the other channels.

4.4.2. ICO DUAL-NUMBERING

         4.4.2.1. The IGF shall support the subscription by cellular roamers to
         the ICO dual-numbering option. This requires the provision of an
         Interworking Location Register for the applicable cellular network
         standard.

         4.4.2.2. The IGF shall support the allocation of an ICO MSISDN to an
         existing cellular subscriber, in addition to the existing cellular
         MSISDN, for each service subscribed to.

         4.4.2.3. For a subscriber with ICO dual-numbering, the IGF shall
         support the delivery of incoming calls via ICO MSISDNs to:

                  1. subscribers currently registered on ICO

                  2. subscribers currently registered on cellular networks

         4.4.2.4. For a subscriber with ICO dual-numbering, the ILR shall
         support the selection, at subscription time, by the end-user of the
         primary MSISDN to be used for calling line identification (CLI)
         purposes. (F/R)

4.4.3. NATURAL LANGUAGE SUPPORT

         4.4.3.1. The IGF shall support the selection of a "preferred language"
         by the end-user as a subscription option.

         4.4.3.2. The IGF shall store the "preferred language" of the subscriber
         in the service profile stored within the HLR and VLR registers.

         4.4.3.3. The IGF shall also store the "preferred language" of the
         subscriber in the service profile contained within the
         cellular/satellite interworking function.

         4.4.3.4. For voice announcements and prompts to the subscriber the IGF
         shall employ the "preferred language" to select the language used.

         4.4.3.5. For announcements the IGF shall support a minimum of 30
         different languages, subject to the storage capacity for announcements.

         4.4.3.6. For voice messaging services, the IGF shall also support the
         use of a language preference the extent of this support shall be
         determined by the PDR.

         4.4.3.7. For roamers to the ICO network, the IGF shall support the
         derivation of the correct language for announcements etc., from the
         home network (MCC/MNC) of the subscriber via IMSI-range analysis.

4.5. MAIL AND MESSAGING SERVICES

4.5.1. GENERIC MESSAGING PLATFORM REQUIREMENTS

         4.5.1.1. The IGF shall include a flexible messaging platform for the
         provision of the following mail and messaging services:

                  1. voice mail

                  2. fax mail

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                  3. short messaging (SMS)

                  4. email

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4.7.4. SUBSCRIBER PROFILES IN THE MESSAGING PLATFORM

         4.7.4.1. For those services provided by the ICONET messaging platform,
         the messaging platform shall support the use of individual subscriber
         profiles.

         4.7.4.2. For individual profiles, the subscriber shall be identified by
         means of one or more MSISDNs.

4.8. CELLULAR/SATELLITE ROAMING

4.8.1. GENERAL

         4.8.1.1. The IGF shall support roaming between the ICONET and the
         following types of cellular network

                  1. networks employing GSM MAP (GSM 900/DCS 1800/PCS 1900)

                  2. networks employing TIA IS.41 (AMPS/DAMPS/CDMA)

                  3. networks employing TTC MAP (PDC 800/PDC 1500) (OPTION)

         4.8.1.2. The IGF shall support roaming in both directions i.e. from
         other networks to ICO, and from ICO to other networks in accordance
         with the table in Section 4.8.9.

4.8.2. ROAMING WITH IS.41 BASED NETWORKS

         4.8.2.1. For roaming between IS.41 based networks and ICONET an
         additional "roaming subscription" is required to map the identifiers
         and services employed within the home and visited network. The IGF
         shall support the provisioning of this additional service profile
         information.

         4.8.2.2. For roaming from IS.41 based networks to ICONET, the
         cellular/satellite interworking function of the IGF shall perform the
         functions of an IS.41 VLR towards the IS.41 network and the functions
         of a GSM HLR/AuC towards the ICONET.

         4.8.2.3. For roaming from ICONET to IS.41 based networks, the
         cellular/satellite interworking function of the IGF shall perform the
         functions of an IS.41 HLR/AC towards the IS.41 network and the
         functions of a GSM VLR towards the ICONET.

         4.8.2.4. For roaming with IS.41 based networks, the IGF shall support
         interworking with cellular networks employing the following versions of
         the IS-41 protocol:

                  1. IS-41 Revision B

                  2. IS-41 Revision C

                  3. IS-41 Revision D (ANSI 41) (F/R)

         4.8.2.5.The IGF shall support the use of global title translation (GTT)
         on the IS-41 side for full international roaming support.

4.8.3. ROAMING WITH PDC NETWORKS  (OPTION)

         4.8.3.1. For roaming between TTC MAP based networks and ICONET an
         additional "roaming subscription" is required to map the identifiers
         and services employed within the home and visited network. The IGF
         shall support the provisioning of this additional service profile
         information.

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         4.8.3.2. For roaming from PDC networks to ICONET, the
         cellular/satellite interworking function of the IGF shall perform the
         functions of a PDC GLR towards the PDC network and the functions of a
         GSM HLR/AuC towards the ICONET.

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         4.8.5.7.3. For IS.41 based networks the IGF shall support remote
         feature activation.

         4.8.5.7.4. In order to increase the transparency of the service to the
         end user, the IGF shall support, where possible, the MMI strings
         employed within the home network. For example, the MMI codes for call
         delivery (IS.41) should also be accepted within the ICO network and
         mapped onto the appropriate call restriction (barring) services.

         4.8.5.7.5. For those networks supporting the management of
         services/features from fixed network terminals via DTMF, this feature
         shall also be supported by the IGF in case of cellular/satellite
         roaming.

4.8.5.8. SHORT MESSAGING

         4.8.5.8.1. The Short Message teleservices shall be supported in both
         the IS.41 to ICO and ICO to IS.41 roaming cases.

         4.8.5.8.2. The IGFshall support the end-to-end delivery of mobile
         originated short messages for both IS.41 to ICO and ICO to IS.41
         roaming.

         4.8.5.8.3. The IGF shall support the end-to-end delivery of mobile
         terminated short messages for both IS.41 to ICO and ICO to IS.41
         roaming.

4.8.5.9. FAULT RECOVERY

         4.8.5.9.1. The IGF shall support the MAP operations provided in each of
         the three cellular standards for fault recovery e.g. HLR restart. This
         shall include the reception by the IGF of such fault recovery
         indications from the home and visited networks as well as the
         generation of such indications by the IGF in case of outage.

4.8.5.10 SECTION NOT USED

4.8.5.11. ADDITIONAL ICO HLR FUNCTIONALITY

         4.8.5.11.1. The GSM HLR/AuC components of the cellular/satellite
         interworking functions of the IGF shall include all of the
         functionality of a standalone ICO HLR/AuC including, but not limited
         to, the following:

                  1. provisioning of HPN

                  2. vendor proprietary services and features for the IS.41
                     interworking unit :

                           a. Immediate Call Itemisation Service

                           b. Announcement Suppression at Call Rerouting (F/R)

                           c. Transfer of Announcement Suppression Indicator to
                              HLR (F/R)

                           d. Single Personal Number (F/R)

                           e. Ericsson Dual Numbering (ICO+GSM+two logical lines
                              handset is needed) (F/R)

                           f. Subscription Type

                           g. IMSI Changeover (F/R)

                           h. MAP Policing

                           i. Subscriber Priority Level for Channel Allocation
                              (F/R)

                           j. Location Numbers (Regional and Local Subscription)

                  3. vendor proprietary services and features for the PDC
                     interworking unit (F/R)

                  4. intelligent network support (e.g. IN service class
                     marks/category keys) (F/R)

                  5. provisioning of other ICO specific services (F/R)

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4.8.6. PROTOCOL SUPPORT

         4.8.6.1. The IGF shall support the following protocol stacks for
         cellular/satellite roaming:

                  1. GSM MAP/ ITU-T TCAP/ ITU-T SCCP/ ITU-T MTP

                  2. GSM MAP/ ITU-T TCAP/ ANSI SCCP/ANSI MTP

                  3. IS.41 MAP/ ANSI TCAP/ ITU-T X.25

                  4. IS.41 MAP/ ANSI TCAP/ ANSI SCCP/ ANSI MTP

                  5. IS.41 MAP/ ANSI TCAP/ ITU-T SCCP/ ITU-T MTP

                  6. IS.41 MAP/ ITU-T TCAP/ ITU-T SCCP/ ITU-T MTP (F/R)

                  7. TTC MAP (DMNI)/ TTC TCAP/ TTC SCCP/ TTC MTP (OPTION)

                  8. TTC MAP (DTIF)/ TTC TCAP/ TTC SCCP/ TTC MTP. (OPTION)

4.8.7. PROVISIONING FUNCTIONS

         4.8.7.1. The IGF shall provide an interface for the provisioning of the
         data held in the cellular/satellite interworking function via the ICO
         ADC.

         4.8.7.2. The IGF shall support both a transaction based interface for
         individual subscriber details as well as a bulk update (e.g. file
         transfer) mechanism for the transfer of data en masse. The PDC to ICO
         ILR will only support the interface for individual subscriber details.

         4.8.7.3. Each change to a subscriber profile, either locally or
         remotely, shall be logged by the IGF including details of the change.
         The PDC to ICO ILR will not support logging of the change.

4.8.8. NETWORK MANAGEMENT FUNCTIONS

4.8.8.1. FAULT MANAGEMENT

         4.8.8.2.1. The cellular/satellite interworking function of the IGF
         shall support the generation, logging and cancellation of alarms.

         4.8.8.2.2. The cellular/satellite interworking function of the IGF
         shall support an interface for the transfer of alarms to the ICO NMC.

4.8.8.2. PERFORMANCE MANAGEMENT

         4.8.8.2.1. The cellular/satellite interworking function of the IGF
         shall be capable of producing traffic measurements (e.g. peg counters)
         for both application level transactions and the lower layers e.g. MAP,
         TCAP, SCCP, MTP etc.

         4.8.8.2.2. The cellular/satellite interworking function of the IGF
         shall support an interface for the transfer of performance measurements
         to the ICO NMC.

4.8.8.3. CONFIGURATION MANAGEMENT

         4.8.8.3.1. The cellular/satellite interworking function of the IGF
         shall support an interface to the ICO NMC for the configuration of both
         the application and underlying layers (e.g. MAP, TCAP, SCCP, MTP).

4.8.8.4. SECURITY MANAGEMENT

         4.8.8.4.1. The downloading of authentication keys from the ICO ADC to
         the cellular/satellite interworking function of the IGF shall be
         performed in a secure manner i.e. encrypted.

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         4.8.8.4.2. The IGF shall support both a transaction based interface for
         individual subscriber details as well as a bulk update (e.g. file
         transfer) mechanism for the transfer of data en masse.

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         4.8.8.4.3. The storage of the keys within the cellular/satellite
         interworking function of the IGF shall also be in an encrypted form.

         4.8.8.4.4. The IGF shall prevent access by operator personnel to the
         secret key information held in the AuC component of the
         cellular/satellite interworking function.

4.8.9. AVAILABILITY OF PRODUCTS AND SERVICES TO ROAMING SUBSCRIBERS

         4.8.9.1. This table below describes the requirements on the IGF for the
         availability of products and services to roaming subscribers.

         KEY
         ---

         NA:                        NOT APPLICABLE, NOT TECHNICALLY FEASIBLE

         Y:                         REQUIRED

         N:                         NOT REQUIRED

         F/R:                       FUTURE REQUIREMENT

     TABLE 4-1 AVAILABILITY OF PRODUCTS AND SERVICES TO ROAMING SUBSCRIBERS
     ----------------------------------------------------------------------

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------
                                                          CELLULAR ROAMERS TO          ICO ROAMERS TO
                                                                 ICO                      CELLULAR

                   SERVICE OR FEATURE                      GSM     IS.41      PDC TO        ICO       ICO        ICO TO
                                                           TO      TO          ICO          TO        TO           PDC
                                                           ICO     ICO        (OPTION)      GSM       IS.41      (OPTION)
------------------------------------------------------------------------------------------------------------------------
<S>                                                        <C>     <C>        <C>          <C>        <C>    <C>
TELESERVICES
------------------------------------------------------------------------------------------------------------------------
SPEECH SERVICES
------------------------------------------------------------------------------------------------------------------------
4.1.1.1 Telephony (TS 11)                                   Y        Y         Y           Y          Y
------------------------------------------------------------------------------------------------------------------------
4.1.1.2 Emergency calls (TS 12)                             Y        Y         Y           Y          NA(1)
------------------------------------------------------------------------------------------------------------------------
SHORT MESSAGE SERVICES (SMS)
------------------------------------------------------------------------------------------------------------------------
4.1.2.1 Mobile Terminated SMS (TS 21)                       Y        Y (2)     F/R         Y          Y(2)
------------------------------------------------------------------------------------------------------------------------
4.1.2.1 Mobile Originated SMS (TS 22)                       Y        Y (2)     F/R         Y          Y(2)
------------------------------------------------------------------------------------------------------------------------
FACSIMILE SERVICES (UP TO 9600 BPS)
------------------------------------------------------------------------------------------------------------------------
4.1.3.1 Automatic fax group 3 (TS 62)                       Y        Y (3)     Y (3)       Y          Y(4)
------------------------------------------------------------------------------------------------------------------------
4.1.3.3 Alternate speech and fax group 3 (TS 61)            Y        Y (5)     F/R         Y          NA
------------------------------------------------------------------------------------------------------------------------
4.1.3.4 Alternate speech/fax - inband detection             Y        Y          Y          NA         Y
------------------------------------------------------------------------------------------------------------------------
FACSIMILE SERVICES, HIGH SPEED BEARERS (HSCSD)
------------------------------------------------------------------------------------------------------------------------
4.1.3.2 Fax group 3 up to 14.4 kbps                        Y (6)     Y (7)     Y (7)       Y (6)      NA
------------------------------------------------------------------------------------------------------------------------
BEARER SERVICES
------------------------------------------------------------------------------------------------------------------------
CIRCUIT SWITCHED DATA (UP TO 9600 BPS)
------------------------------------------------------------------------------------------------------------------------
4.2.1 Data circuit duplex asynchronous (BS 2x)              Y        Y (7)     Y (7)       NA         NA
------------------------------------------------------------------------------------------------------------------------
4.2.1 Data circuit duplex synchronous (BS 3x)               Y        Y (7)     Y (7)       NA         NA
------------------------------------------------------------------------------------------------------------------------
4.2.3 Alternate Speech/Data - inband detection              Y        Y         Y           NA         Y
------------------------------------------------------------------------------------------------------------------------
HIGH SPEED CIRCUIT-SWITCHED DATA (UP TO 38.4 KBPS)
------------------------------------------------------------------------------------------------------------------------
4.2.2 General data circuit duplex asynch. (BS 20)          Y (6)     Y (7)     Y (7)       Y (6)      NA
------------------------------------------------------------------------------------------------------------------------
4.2.2 General data circuit duplex asynch. (BS 20)          Y (6)     Y (7)     Y (7)       Y (6)      NA
------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTARY SERVICES
------------------------------------------------------------------------------------------------------------------------
CALL OFFERING SUPPLEMENTARY SERVICES
------------------------------------------------------------------------------------------------------------------------
4.3.3.1 Call Forwarding Unconditional (CFU)                Y (20)     Y (20)   Y (20)      Y          Y
------------------------------------------------------------------------------------------------------------------------
4.3.3.2 Call Forwarding on Mobile Subscriber Busy (CFB)    Y          Y (9)     F/R        Y          Y (9)
------------------------------------------------------------------------------------------------------------------------
4.3.3.3 Call Forwarding on Mobile Not Reachable (CFNRc)    Y          Y (9)     F/R        Y          Y(9)
------------------------------------------------------------------------------------------------------------------------
4.3.3.4 Call Forwarding on No Reply (CFNRy)                Y          Y (9)     F/R        Y          Y (9)
------------------------------------------------------------------------------------------------------------------------
CALL COMPLETION SUPPLEMENTARY SERVICES
------------------------------------------------------------------------------------------------------------------------
</TABLE>

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<TABLE>
<CAPTION>
                                                        CELLULAR ROAMERS TO ICO          ICO ROAMERS TO CELLULAR
                  SERVICE OR FEATURE                      GSM TO    IS.41 TO     PDC      ICO      ICO      ICO
                                                           ICO         ICO       TO       TO       TO     TO PDC
                                                                                 ICO      GSM     IS.41    (OPT
                                                                                (OPT                       ION)
                                                                                ION)
------------------------------------------------------- ---------    --------   -----  -------  -------    -----
<S>                                                     <C>          <C>       <C>     <C>      <C>        <C>
4.3.4.1 Call Waiting (CW)                                   Y           Y        F/R       Y        Y

4.3.4.2 Call Hold (HOLD)                                    Y         Y (8)      F/R       Y        Y

NUMBER IDENTIFICATION SUPPLEMENTARY SERVICES

4.3.2.1 Calling Line Identification Presentation            Y        Y (10)      F/R       Y     Y (10)
(CLIP)

4.3.2.2 Calling Line Identification Restriction (CLIR)      Y        Y (10)      F/R       Y     Y (10)

4.3.2.3 Connected Line Identification Presentation          Y        Y (11)      F/R      NA       NA
(COLP)

4.3.2.4 Connected Line Identification Restriction           Y        Y (11)      F/R      NA       NA
(COLR)

MULTI-PARTY SUPPLEMENTARY SERVICES

4.3.5.1 Multi Party Service (MPTY)/IS-41 3 way calling      Y           Y        F/R       Y        Y

CLOSED USER GROUP SUPPLEMENTARY SERVICES

4.3.6.1 Closed User Group (CUG)                             Y           N         N        Y       NA

CHARGING SUPPLEMENTARY SERVICES

4.3.8.1 Advice of Charge Information (AoCI)               N (12)        N         N     N (12)     NA

4.3.8.2 Advice of Charge Charging (AoCC)                  N (12)        N         N     N (12)     NA

CALL RESTRICTION SUPPLEMENTARY SERVICES

4.3.7.1 Barring of All Outgoing Calls (BAOC)                Y           Y        F/R       Y        Y

4.3.7.2 Barring of All Incoming Calls (BAIC)                Y        Y (22)      F/R       Y        Y

4.3.7.3 Barring of Outgoing International Calls (BOIC)    Y (14)     Y (13)      F/R       Y     Y (13)

4.3.7.4 Barring of Outgoing International Calls,          Y (15)     Y (11)      F/R       Y       NA
except those directed to the Home Country (BOICexHC)

4.3.7.5 Barring of Incoming Calls when Roaming            Y (16)     Y (22)      F/R       Y       NA
Outside the  Home Country (BIC-Roam)

UNSTRUCTURED SUPPLEMENTARY SERVICE DATA (USSD)

4.3 Unstructured supplementary service data (USSD)          Y        Y (11)      F/R       Y       NA

ICO SPECIFIC SERVICES

4.4.1 High Power Notification (HPN)                       N (17)     Y (11)    Y (11)     NA       NA

4.4.2 ICO Dual numbering                                  N (17)     Y (11)    Y (11)     NA       NA

4.4.3 Natural language support                            N (17)      Y(23)     Y(23)     NA       NA

MAIL AND MESSAGING SERVICES

4.5.6 Mailbox access and retrieval                        Y (18)     Y (18)      F/R    Y (18)   Y (18)

4.5.7 Mailbox notification                                Y (19)     Y (19)      F/R    Y (19)   Y (19)

ADVANCED SERVICES

4.6.2.2.1 Virtual Private Networks (VPN)                  Y (17)      N(21)     N(21)     NA       NA

4.6.2.3.1 Advanced call forwarding                        N (17)     N (21)    N (21)     NA       NA

4.6.2.3.2 Advanced call barring                           N (17)     N (21)    N (21)     NA       NA

4.6.2.3.3 Originating call screening                      N (17)     N (21)    N (21)     NA       NA

4.6.2.3.4 Terminating call screening                      N (17)     N (21)    N (21)     NA       NA

4.6.2.3.5 Location dependent routing                      N (17)     N (21)    N (21)     NA       NA

4.6.2.3.6 Personal number                                 N (17)     N (21)    N (21)     NA       NA

4.6.2.3.7 Hot line routing                                N (17)     N (21)    N (21)     NA       NA

4.6.2.3.8 Caller list                                     N (17)     N (21)    N (21)     NA       NA

4.6.2.4.1 Pre-paid (debit) service                          NA         NA        NA       NA       NA

4.6.2.4.2 Private calls                                   N (17)     N (21)    N (21)     NA       NA

4.6.2.4.3 Split billing                                   N (17)     N (21)    N (21)     NA       NA
</TABLE>

Notes:

1.  Although the GSM emergency call service will not be available in PDC and
    IS.41 networks, this does not prevent the subscriber from dialling an
    emergency access code in such networks. However, this call will be treated
    as a normal telephony call i.e. with no prioritised access on the
    air-interface.

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2.  End-to-end support for SMS is provided However, roamers to ICO may also be
    provisioned with SMS in the CS-IWF allowing them to send and receive SMS on
    ICO via an ICO MSISDN.

3.  Roamers from IS.41 and PDC networks may employ GSM fax services from within
    the ICO network. However, delivery of fax calls from their home networks via
    their home cellular networks is not supported.

4.  Roamers from ICO to IS.41 networks may employ local fax services within the
    serving network. However, delivery of fax calls from the ICO network via ICO
    fax MSISDNs (multi-numbering) is not supported.

5.  Roamers from IS.41 and PDC networks may employ the GSM alt. speech/fax
    service from within the ICO network, but this requires the allocation of
    additional ICO MSISDNs in the CS-IWF.

6.  Subject to support of HSCSD by the GSM network.

7.  Roamers from IS.41 and PDC networks may employ local GSM data services
    within the ICO network by the allocation of an ICO MSISDN. However, delivery
    of data calls from the home network and via the home cellular number is not
    supported.

8.  Supported locally in the CS-IWF, not end-to-end.

9.  It may not be possible to support conditional call forwarding services when
    roaming between ICO and IS.41 networks. This depends on the capability of
    the individual IS.41 networks. Note that the IS-41 Call forward on No Answer
    service is the equivalent of the GSM services CFNRc and CFNRy.

10. Proprietary solution depending on the IS.41 extensions supported.

11. Supported locally in the CS-IWF, not present in the home network.

12. Advice of charge is not supported for roaming subscribers.

13. The IS.41 and GSM services are not equivalent, some differences in service
    delivery are inevitable e.g. IS.41 supports barring of all calls outside
    world zone 1 (i.e. North America) rather than barring of all international
    calls.

14. The interpretation of barring of all outgoing international calls within the
    ICO network shall be all calls to destinations with country codes other than
    ICO.

15. The interpretation of BOIC-exHC within the ICO network shall be based on
    home PLMN and not home country.

16. The interpretation of BIC-roam within the ICO network shall be barring of
    all incoming calls whilst roaming outside the home PLMN (i.e. not home
    country).

17. The provisioning of this service requires a CS-IWF for GSM to ICO roaming.
    (OPTION)

18. Mail and messaging services will normally be provided by the home network.
    However, it shall be possible to provide ICO mailboxes to roaming
    subscribers.

19. The form of notification used may vary from network to network e.g. for
    those networks not supporting SMS a voice-call notification may be used.

20. The support of this service depends on its provisioning by the home network.

21. The CS-IWF does not support the storage of the IN classmark/key information.
    .

22. This service is only supported in case of ICO dual numbering and for calls
    delivered via the ICO MSISDN.

23. Note that the ICO natural language support feature is implemented via the
    Ericsson subscription type feature.

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4.9. OTHER VALUE-ADDED SERVICES

        4.9.1. The IGF shall support the routing of calls to/from value added
        services centres located within the ICONET.

        4.9.2. The IGF will support the usage of short code dialling for access
        to individual services.

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         4.9.3. In order to support the usage of multiple regional service
         centres, the IGF shall support the routing of service calls based on
         both the short code dialled and location (service area) of the UT.

         4.9.4. The IGF shall support the use of a Primary Rate ISDN connection
         between the MSSC and PABX/ Value Added Service Centres.

4.10. SPECIALISED TERMINALS

4.10.1.  MULTICHANNEL TERMINALS (F/R)

         4.10.1.1. The IGF shall support the usage of a single location update
         by the multi-channel terminal on behalf of all of the subscribers
         currently attached to it.

4.10.2. SEMI-FIXED TERMINALS

4.10.2.1. The IGF shall support the usage of semi-fixed user terminals for the
purpose of local loop replacement, remote PABX and remote payphone applications.
The IGF requirements to support these terminals are in other sections of this
document, in particular Section 4.7.2.

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5.2. PROVISIONING SERVICES

5.2.1. SUBSCRIBER ADMINISTRATION IN THE HLR

         5.2.1.1. The IGF shall support the management functions required for
         the administration of subscriber data in the HLR, as defined in TS GSM
         12.02. This shall include the functions required for the administration
         of the following:

            1.  directory numbers

            2.  service provision

            3.  basic and supplementary services

            4.  regional subscription zones

            5.  bearer capability allocations.

         5.2.1.2. The IGF shall also include the management functions required
         for the administration of the ICO specific services described above
         (e.g. HPN, language preference etc.).

         5.2.1.3. The IGF shall also include the management functions required
         for the administration of Ericsson proprietary services.

         5.2.1.4. The IGF shall support a remote provisioning interface from the
         HLR to the ICO ADC. The supplier shall provide full details of this
         interface including physical interconnection to the DCN, protocol
         stacks employed and application data units/MML command syntax.

         5.2.1.5. In addition to the handling of individual transactions on a
         per subscriber basis, the IGF provisioning interface shall also include
         a bulk update mechanism (e.g. file transfer) for the updating of HLR
         data en masse.

5.2.2. SUBSCRIBER ADMINISTRATION IN THE CELLULAR/SATELLITE INTERWORKING FUNCTION
       (CS-IWF)

         5.2.2.1. The IGF shall provide a provisioning interface to the GSM HLR
         component of the cellular-satellite interworking function (CS-IWF) that
         is functionally equivalent to that provided for a standalone HLR and
         which is compliant with each of the provisioning requirements on the
         ICO HLR stated in Section 5.2.1 "Subscriber administration in the HLR."

         5.2.2.2. For the IS.41 variant of the CS-IWF, the IGF shall provide a
         provisioning interface to the IS.41 HLR component of the CS-IWF which
         is functionally equivalent to that provided for a standalone IS.41 HLR.

         5.2.2.3. For the PDC variant of the CS-IWF, the IGF shall provide a
         provisioning interface to the PDC HLR component of the CS-IWF which is
         functionally identical to that provided for a standalone PDC HLR
         (OPTION).

         5.2.3.4. For the IS.41 variant of the CS-IWF, the IGF shall provide a
         provisioning interface to the IS.41/ICO interworking component of the
         CS-IWF for the administration of the roaming subscription including:

            1.  the mapping of services between the IS.41 and ICO environment

            2.  the mapping of numbers and identifiers, i.e. MIN/ESN {=}
                IMSI/MSISDN.

         5.2.2.5. For the PDC variant of the CS-IWF, the IGF shall provide a
         provisioning interface to the PDC/ICO interworking component of the
         CS-IWF for the administration of the roaming subscription including:

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            1.  the mapping of services between the PDC and ICO environment
                (OPTION)

            2.  the mapping of numbers and identifiers i.e. MSI/MSN {=}
                IMSI/MSISDN (OPTION).

         5.2.2.6. (F/R) For the GSM/ICO variant of the CS-IWF, the IGF shall
         provide a provisioning interface to the roaming subscription including:

              the mapping services between the GSM and ICO environment

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         5.2.6.1.3. The IGF shall ensure that all security related data (keys)
         held in the AuC component of the CS-IWF is stored in encrypted form.

5.2.6.2.  IS.41 AC COMPONENT

         5.2.6.2.1. For the IS.41 variant of the CS-IWF, the IGF shall provide a
         provisioning interface to the IS.41 AC component of the CS-IWF that is
         functionally equivalent to that provided for an IS.41 AC.

         5.2.6.2.2. The IGF shall support the encryption of all security related
         data (A-key) exchanged on the interfaces to the AC component of the
         CS-IWF.

         5.2.6.2.3. The IGF shall ensure that all security related data (A-key)
         held in the AC component of the CS-IWF is stored in encrypted form.

5.2.6.3.  PDC AUC FUNCTIONALITY (OPTION)

         5.2.6.3.1. For the PDC variant of the CS-IWF, the IGF shall provide a
         provisioning interface for authentication data to the CS-IWF that is
         functionally identical to that provided for a standalone PDC HLR.

5.3.  MOBILE EQUIPMENT MONITORING

         5.3.1. The IGF shall include an Equipment Identity Register (EIR)
         function for the monitoring of mobile equipment (UTs) based on their
         IMEIs.

         5.3.2. The EIR function provided by the IGF shall include the
         administration of the following equipment lists as defined in TS GSM
         02.16 and TS GSM 12.02:

            1.  white list

            2.  grey list

            3.  black list.

         5.3.3. The IGF shall support both the updating of individual list
         entries and the replacement of complete lists.

        5.3.4. The IGF shall support the exchange of equipment lists with other
        cellular operators via the GSM MoU Central EIR (CEIR) in Dublin and in
        accordance with GSM MoU PRD TD.18 and TD.19. (F/R)

        5.3.5. Inter-operability for EIR function across cellular standards is
        not supported.

5.4. CUSTOMER CARE AND OPERATOR SUPPORT

5.4.1. GENERAL

         5.4.1.1. The IGF shall support the connection of customer help desks
         and customer care centres. This shall include the routing of calls
         to/from these centres via the MSSC.

5.4.2. OPERATOR DETERMINED BARRING (ODB)

        5.4.2.1. The IGF shall support operator determined barring as defined in
        TS GSM 02.41.

        5.4.2.2. The disconnection of an ongoing call as a result of the
        application of ODB is not supported.

        5.4.2.3. The IGF shall support operator determined barring of
        supplementary services management.

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        6.3.2. For IGF Interconnecting to international and national ISDN
        networks, IGF shall support the use of international and national
        variants of common channel signalling system No. 7 ISDN User Part (ISUP)
        for circuit related signalling.

        6.3.3. For IGF interconnection to national PLMNs, IGF shall support the
        use of both international and national variants of ISUP and TUP where
        appropriate for circuit related signalling.

        6.3.4. The IGF shall support the different variants of CCS7 ISUP and TUP
        and DSS1 in accordance with WG360477 Terrestrial Point-of-Interconnect
        Interface Requirements.

        6.3.5. The IGF shall be capable of sending an early ACM signal on Mobile
        Terminated calls.

        6.3.6. Ericsson shall deliver the HLRs which have integrated STP
        functionality. The integrated STP functionality supports Global Title
        Translation (GTT) of SCCP. The STP will have signalling connections with
        other ICO signalling nodes such as SANs and also external networks.

6.4. SECTION NOT USED

6.5. DCN SUBSYSTEM

6.5.1. NETWORK MANAGEMENT DCN

        6.5.1.1. The DCN shall carry Network Management traffic, SRMS traffic,
        between SANs, NMCs and [OT&DF (if provided)].

        6.5.1.2. The DCN shall provide connections to all SANs, NMC, Backup NMC,
        and [OT&DF(if provided)].

        6.5.1.3.a The DCN LAN routers at the BNMC and NMC sites shall
        respectively provide connections to the SCC and Backup SCC (BCC) LAN
        router via the local LAN

        6.5.1.3.b The DCN LAN routers shall connect to the TT&C LAN Router at
        the TT&C SAN sites via the local LAN.

        6.5.1.4.a The DCN shall provide connections to the BDC (F/R).

        6.5.1.4.b The DCN shall provide connections to the PCS equipment at each
        of the SAN/NMC/BNMC sites (F/R).

        6.5.1.5. All IGF subsystems at SANs, NMC and Backup NMC which require
        DCN support shall be interfaced to the DCN equipment.

        6.5.1.6. The DCN shall use the physical network procured by ICO for WAN
        Network, in a form of a X.21 interface at rates up to 2Mbit/s for each
        links.

        6.5.1.7. The ICO provided WAN Network interface to the DCN at the SAN or
        NMC or Backup NMC shall terminate on an encryption device.

        6.5.1.8. The backbone Routers, encryption devices and switches at the
        SAN/NMC/BNMC sites, form part of the DCN. Any LAN devices, albeit, hubs,
        switches or routers within another WG's subsystem is not a part of the
        DCN but a part of that subsystem.

        6.5.1.9. The DCN traffic shall be encrypted on a link by link basis
        between the inter-SAN Routers. The encryption device shall be
        configurable to use either a static key or to automatically regenerate
        keys within a configurable period on a link by link basis.

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        6.5.1.10 The DCN equipment at each SAN, NMC and Backup NMC shall be
        configured as a redundant LAN network.

        6.5.1.11. All critical on-site subsystems (as illustrated in
        WGA-TN-7-0428-B1) shall be interfaced to both sides of the redundant DCN
        LAN network.

        6.5.1.12. Non-critical subsystems (as illustrated in WGA-TN-7-0428-B1)
        shall be interfaced to at least one side of the redundant DCN LAN
        network.

        6.5.1.13. The protocols used in the DCN shall be IP-based.

        6.5.1.14. The DCN shall for design and acceptance criteria be assumed to
        be configured as shown in WGA-TN-7-0428-B1, subject to final agreement
        on the NMC/BNMC links to SANS, based on WGA-TN-7-0252-B1.

        1. 6.5.1.15 Not Used

        6.5.1.16. The redundant DCN LAN network at each SAN/NMC/BCMC sites
        shall be managed by the DCN NMS.

        6.5.1.17.The DCN NMS shall provide an interface to the LINK-NMS to
        support the functionality described in 6.5.1.18 to 6.5.1.22.

        6.5.1.18. The DCN NMS and LINK-NMS interface shall provide the following
        functionality:

                  a)   SNMP TRAP

                       The DCN NMS shall send a SNMP trap to the LINK-NMS when
                  an event is reported from a DCN LAN device to the DCN NMS.

                  b)   REACH THROUGH SESSION

                       The LINK-NMS operator shall be able to establish a reach
                  through session to the DCN NMS.

                  c)   TELNET SESSION

                       The LINK-NMS operator shall be able to establish a telnet
                  session to the DCN NMS.

                  d)   PING TEST

                       The LINK NMS shall periodically ping the DCN NMS to
                  confirm whether the interface is active or not.

        6.5.1.19. The LINK NMS operator shall be able to establish a telnet
        session with any DCN LAN device at the SAN/NMC BNMC sites.

        6.5.1.20. The DCN NMS facility shall be installed at both the NMC and
        BNMC sites. Both DCN NMS shall operate independent to each other and
        shall therefore monitor & control

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        the DCN Router and switches independently. The failure of one DCN NMS at
        one site shall not affect the operation of the DCN NMS at the other
        site.

        6.5.1.21 The DCN NMS at the NMC site shall provide the functionality
        described in 6.5.1.18. to the LINK-NMS at both the NMC and BNMC sites in
        parallel. Sub-master mode LINK-NMS does not perform the functionality of
        receiving SNMP Trap and Ping Test, until it becomes the Master mode
        LINK-NMS.

        6.5.1.22. The DCN NMS at the BNMC site shall provide the functionality
        described in 6.5.1.18. to the LINK-NMS at both the NMC and BNMC sites in
        parallel. Sub-master mode LINK-NMS does not perform the functionality of
        receiving SNMP Trap and Ping Test, until it becomes the Master mode
        LINK-NMS.

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                                [FLOWCHART]

              FIGURE 6-1 REFERENCE TERRESTRIAL NETWORK CONNECTIVITY
              (NOTE, DELIVERED IGF EQUIPMENT CAPACITIES AND ASSUMED
             TOPOLOGY ARE AS SPECIFIED IN S.O.W. ANNEX 1, TABLE 1)

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                1.  Instructing the UT against making a registration attempt for
                    a period of time, the value of this to be operationally
                    controlled

                2.  Instructing the UT against attempting registration until it
                    has selected a different SAN with which to register. (F/R)

6.7. CALL ROUTING

6.7.1. MSSC CALL ROUTING

        6.7.1.1. The IGF shall be capable of routing on both fixed directory
        numbers (ITU-T E.164) and mobile station roaming numbers (MSRNs).

        6.7.1.2. The IGF shall be capable of routing to fixed directory numbers
        located in the ICO network e.g. to PABXs directly attached to a MSSC.

        6.7.1.3. In addition to the dialled number, the IGF shall also be
        capable of routing on the basis of one or more of the following:

                1.  the location (service area) of the subscriber

                2.  the identity of the subscriber (IMSI/ IMSI range)

                3.  the calling line identity (MSISDN)

                4.  day/ date and time

        6.7.1.4. The IGF shall be capable of supporting multiple routes to the
        same destination. As a minimum this shall include primary, secondary and
        tertiary routes.

        6.7.1.5 The IGF shall support Optimal Routing at late call forwarding as
        defined in TS GSM 02.79.

6.7.2. TNM ROUTING

        6.7.2.1. The TNM shall route a mobile originating service request from a
        SBS to the MSSC where the UT was last registered, advised by the UT.

        6.7.2.2.The TNM shall provide an audit trail (log) of all TNM call
        routing operations.

        6.7.2.3. The TNMs at the various SAN sites shall establish and clear 64
        kbps connections via the intermediate MSSCs so as to ensure that traffic
        is routed to it's destination by an efficient route.

6.8. MP PAGING

        6.8.1. The IGF shall be able to page UTs.

        6.8.2. The IGF shall support paging groups for Medium Penetration (MP)
        paging.

        6.8.3. The IGF shall be capable of transmitting paging indications on
        PCHs.

        6.8.4. The IGF shall implement the PCH as defined in ICO 05.xx and ICO
        04.08 series.

        6.8.5. The IGF shall be capable of supporting one or more PCH carriers
        on every spot beam on every satellite.

        6.8.6. The IGF shall support the capability to transmit PCH bursts
        simultaneously on multiple spot beams of multiple satellites.

        6.8.7. The IGF shall be capable of paging a UT on all spot beams of all
        satellites covering a UT's position including position error value.

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        6.8.8. SBS shall use the SLRP, position error and the currently
        broadcast beam co-ordinates to determine which beams controlled by the
        SBS will be used for paging, and will page the UT only in the beams
        which contain the SLRP, considering the position error.

        6.8.9. The TNM shall request one or more SBS to page a UT according to
        the SLRP.

        6.8.10. The SBS will page a UT in beams in which it transmits AGCH.

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6.28.2 BARRING OF ACCESS CLASSES

        6.28.2.1. For the purpose of barring, there shall be two groups of
        access classes namely normal access classes and special access classes.
        Each of these two groups of access classes shall have individual classes
        of their own.

        6.28.2.2. All individual access classes of the normal access class group
        shall have equal priority.

        6.28.2.2. The individual access classes of the special access class
        group shall have priority which are configurable.

        6.28.2.3. The SBS shall provide separate access class restrictions on
        barring for each spotbeam individually.

        6.28.2.4. SBS shall ensure a random selection of the individual access
        classes when barring is required. The randomisation shall be spread
        firstly over individual classes of the normal Access Class group
        ensuring no repeat of any one class or classes until having cycled
        through all the individual classes even if there had been a break in
        barring or a resumption of service over a certain period of time.

        6.28.2.5. The SBS shall:

                1.  perform Access Class barring progressively and incrementally
                    before escalating to barring of the entire spot-beam;

                2.  only start barring the special access class group when all
                    normal access classes has been barred;

                3.  Barring of individual classes (normal or special) can be
                    overview and selectable by OAM.

6.28.3. UNBARRING OF ACCESS CLASSES

        6.28.3.1 The unbarring of access classes shall be the complement of the
        barring process.

6.29. SUBSCRIBER CLASS HANDLING

        6.29.1. The IGF shall support the Ericsson "subscriber class"
        (subscription type) feature. This feature permits each mobile subscriber
        to be associated with a subscription type that is independent of the
        subscriber's number (IMSI, MSISDN). The subscription type may then be
        used to influence the routing, charging, accounting, etc. of the call.
        For further details see the following documents in Total Function List
        MSSC/VLR and HLR - ICO (WG3-TS-7-0116):

                1.  Handling of subscription type for subscriber dependent
                    analysis in MSC/VLR

                2.  Handling of subscription type for subscriber dependent
                    analysis in GMSC.

                3.  Protocol specification for mobile subscriber subscription
                    type in MSC/VLR.

6.30. CLASSMARK HANDLING

        6.30.1 The SBS and MSSC shall use the UT Classmark, when available, to
        determine the service it shall provide to the UT.

        6.30.2. The SBS and MSSC shall use a default UT Classmark, when the UT's
        Classmark is not available, to determine the service it shall provide to
        the UT.

        6.30.3. The SBS and MSSC shall maintain a default Classmark that allows
        for:

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                1.  treatment and handling of the UT's radio access before all
                    UT characteristics is known

                2.  initiation of call-control processes before or during the
                    time the UT is updating the network of its full equipment
                    characteristics.

        6.30.4. The SBS and MSSC shall use default Classmark information until
        such time that actual Classmark information is updated by the UT in part
        or in whole.

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7.4. PERFORMANCE MANAGEMENT

7.4.1. REQUIREMENTS FOR NEW ELEMENTS

        7.4.1.1. Section 7.4 covers general functionality to be located at the
        SAN-OSS and NMC. The functionality provided through the individual OAMs
        is described in Section 7.8. However, in the case of the development of
        new elements it is recommended that the requirements of this Section be
        taken into account.

7.4.2. GENERAL

        7.4.2.1. The NMS shall allow the operator to access performance
        management functions as defined in the OAM interface specifications in
        Sections 7.8.

        7.4.2.2. The NMS shall allow the operator to set thresholds for each
        performance criterion.

        7.4.2.3. The NMS shall raise an alarm whenever a performance threshold
        has been exceeded.

        7.4.2.4. The NMS shall be able to support Trend Analysis.

        7.4.2.5. The NMS shall routinely produce a top level performance report
        summarising QoS performance and network criteria (e.g. equipment
        availability, trouble tickets processed etc.)

7.4.3. NETWORK TRAFFIC MANAGEMENT

        7.4.3.1. NMS shall support user traffic supervision (i.e. to have a
        clear overview of the network alarms status from a traffic management
        point of view), traffic analysis (i.e. to analyse the cause and origin
        of traffic disturbances detected by the traffic supervision function),
        traffic control (i.e. to re-route and to restrict traffic in the
        network) for the elements within the ICONET for which ICO has full
        control (e.g. switch, TNM, SBS, etc.).

7.5. SECURITY MANAGEMENT

7.5.1. REQUIREMENTS FOR NEW ELEMENTS

        7.5.1.1. Section 7.5 covers general functionality to be located at the
        SAN-OSS and NMC. The functionality provided through the individual OAMs
        is described in Section 7.8. However, in the case of the development of
        new elements it is recommended that the requirements of this Section be
        taken into account.

7.5.2. GENERAL

        7.5.2.1.DCN Equipment shall encompass configuration access control
        measures.

        7.5.2.2. Within the NMS facilities shall be provided at the respective
        MMIs to enable the creation, deletion and configuration of operator user
        groups, user names and individual passwords.

        7.5.2.3. Individual access to the NMS shall be user and password
        controlled.

        7.5.2.4. It shall be possible to establish user groups (e.g.
        administrator, supervisor, general operator, etc.) with specific
        privileges in order to control group and/or individual access to
        specific operations, functions, configurations and applications.

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        7.5.2.5. It shall be possible for authorised personnel to delete
        individual user access (e.g. when a staff member leaves, etc.).

        7.5.2.6. The password mechanism shall incorporate a facility for the
        automatic ageing.

        7.5.2.7. The NMS shall raise an alarm to the appropriate management
        layer for failed log-in attempts which exceed a pre-set rate.

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        7.5.2.8. All user accesses to the NMS shall be logged. Where possible,
        details recorded shall include the user identification and point of
        access.

        7.5.2.9. During a log-in session, the system shall record the start/end
        times and the elements accessed (in the case where user privileges allow
        immediate access to a number of network elements).

        7.5.2.10. If operators or the NMS detects an unauthorised access or
        attempt then the NMS system shall:

                1.  Raise an alarm to the appropriate management layer.

                2.  Attempt to lock out the work station. If lock-out is
                    possible then it shall be possible for an operator with the
                    necessary privilege to unlock it at a later time.

                3.  Record all available information on the call/caller and
                    disconnect the call for dial-in connections.

        7.5.2.11. At each NMS, computer routine security and system
        administration facilities shall be available. Typically, this shall
        include :

                1.  Guarding against file and disk computer viruses which are
                    commercially recognised.

                2.  Monitoring, re-formatting and repairing disk space (e.g. due
                    to file fragmentation, etc.).

                3.  Protecting individual files and directories.

                4.  Recording last directory and file accesses through the
                    applications program.

        7.5.2.12. It shall be possible for a User to undertake a NMS security
        audit trail for a specified:

                1.  User Group

                2.  User

                3.  Time period.

        7.5.2.13. The NMS shall produce a routine report covering security
        aspects (e.g. number of log-ins, viruses detected, security alarms,
        etc.).

        7.5.2.14. The DCN LINK Encrypter keys shall be configured from the front
        panel of the encryption device.

        7.5.2.15. The NMC shall provide key management, control and distribution
        for use in the DCN. The key management shall be provided by a highly
        secure portion of the NMC. (F/R)

7.6. ACCOUNTING MANAGEMENT

        7.6.1. There are no NMS requirements for Accounting Management except
        for the receipt of CDR files, when required, from the ADC.

7.7. SECTION NOT USED

7.8. OPERATIONS AND MAINTENANCE INTERFACE REQUIREMENTS

7.8.1. GENERAL

        7.8.1.1. This section describes the functionality which is to be made
        available to the NMS by the various network elements within the ICO
        system.

        7.8.1.2. Included for each OAM are the minimum acceptable parameters
        that will be collected from a Fault, Configuration and Performance
        Management perspective.

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        7.8.1.3. In practice the functionality made available to the various NMS
        operator stations, through Security Management of the NMS, will vary
        depending on the operational requirements of each station. The NMC, for
        example, will require more of a global view of the system whereas at the
        SAN a more detailed view is required for the day to day maintenance and
        operations of network elements.

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        7.8.1.4. The OAM interfaces in this section have been divided up based
        on the various network elements. This does not imply that each network
        element will have its own OAM interface.

        7.8.1.5. The ICO system is to be designed with both expandability and
        interoperability in mind. Therefore, the NMS architecture employed must
        be capable of allowing additional network elements to be added with the
        minimum of network interruption. For these reasons then individual
        network element OAMs shall adhere to the following general requirements:

        7.8.1.6. Any communication interfaces, protocols, man machine
        interfaces, operating systems, databases, programming languages or
        development/application tools required for the network element OAM shall
        have the following basic features (as appropriate):

                1.  be controlled by an industry standard.

                2.  be commercially available with product support.

                3.  be consistent with open systems concepts.

                4.  be supported by major hardware and software platforms.

                5.  be multiprocessing.

                6.  be compatible between the client and server.

                7.  be compatible with the NMC and SAN network management
                    structure as far as is practical.

        7.8.1.7. Any exceptions to these (e.g. due to the re-use of existing
        equipment, etc.) shall be highlighted to ICO. For new elements then any
        exceptions will need to be approved by ICO.

        7.8.1.8 In general, separate OAM MMIs should be minimised (i.e.
        integrated into the SAN MMI). However, if a separate MMI is produced,
        then it shall be possible to initiate from the main SAN-OSS
        workstations.

7.8.2. SATELLITE RESOURCE MANAGEMENT CENTRE

7.8.2.1. GENERAL REQUIREMENTS

        7.8.2.1.1. The NMS shall encompass:

                1.  SRMC equipment, associated software, processing, monitoring
                    and control.

                2.  Error free and confirmed resource management data
                    distribution.

        7.8.2.1.2. The SRMC OAM interface shall provide access to backup and
        restoration procedures associated with the SRMC equipment.

        7.8.2.1.3. The SRMC OAM interface shall provide the following software
        upgrade facilities:

                1.  download new versions of software from the NMS.

                2.  replace the current version of software with the new
                    version.

                3.  replace the current version of software with the previous
                    version.

                4.  extract existing software version information for the three
                    versions of software.

7.8.2.2. CONFIGURATION MANAGEMENT

        7.8.2.2.1. The SRMC OAM interface shall provide a facility for the SRMC
        to supply status to the NMS.

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        7.8.2.2.2. The SRMC OAM interface shall forward SRMC events to the NMS.

        7.8.2.2.3. The SRMC OAM interface shall allow the NMS to:

                1.  configure SRMC event parameters.

                2.  initiate archiving of the SRMC event data.

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                2.  Messaging Platform including voice/fax messaging and Short
                    Messaging Service Centre (SMSC)

                3.  HLR

                4.  AuC

                5.  EIR

                6.  ILR

                7.  IN (F/R)

        7.8.4.1.5. Management functions, functional entities and objects
        required for the VLR/HLR/MSSC/EIR/AUC shall comply with GSM 12.02 as far
        as is possible.

        7.8.4.1.6 The NODE-OS OAM shall provide access to backup and restoration
        procedures associated with the managed elements.

        7.8.4.1.7. The NODE-OS OAM shall provide the following software upgrade
        facilities:

                1.  download new versions of software from the NODE-OS.

                2.  replace current version software with minor updates, if
                    needed (e.g. error fixes, etc.). In the event of a complete
                    replacement of the current software with a new or previous
                    version then this will be ordered from the NODE-OS using
                    data stored by the switch.

                3.  extract existing software version information for the three
                    versions of software.

        7.8.4.1.8 The GSM Series 12 shall be applied to the maximum extent
        possible for interoperability purposes. This shall include aspects such
        as managed object class definitions, class hierarchies and standard
        network management functionality.

        7.8.4.1.9. Relevant TMN standards as called up by the GSM Series 12
        standards shall be applied to the maximum extent possible.

        7.8.4.1.10. Relevant CCITT X.700 standards as called up by the GSM
        Series 12 standards shall be applied to the maximum extent possible.

        7.8.4.1.11. Objects shall be specified using standard GDMO definitions
        where possible for managed objects.

        7.8.4.1.12. The MMI shall follow recognised industry standards.

        7.8.4.1.13. The NODE-OS shall manage the satellite/cellular interworking
        function from a network management perspective as described in Section
        4.8

7.8.4.2. CONFIGURATION MANAGEMENT

        7.8.4.2.1 GSM 12.06 shall be adopted where possible for network and
        service configuration management.

        7.8.4.2.2. A command handling application shall be available to enable
        the operator to:

                1.  open a command session window for sending commands to an
                    external network element and for presentation from the
                    network element.

                2.  display delayed responses in a separate window (i.e.
                    responses to a command that arrives at a later stage).

                3.  receive and display in a separate window spontaneous reports
                    (i.e. events initiated by an network element).

                4.  create a command file (i.e. sequence of commands used in the
                    communication with an network element).

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                5.  support shell scripts in a way similar to the command files.

                6.  activate command files and shell scripts at a specified
                    time.

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                7.  provide a command line interface in order that other
                    applications can be interfaced to the command handling
                    functions.

                8.  log all commands sent and responses returned.

                9.  set for a selected command a specific warning, confirmation
                    or guiding text that will then be displayed to the user of
                    the network element.

        7.8.4.2.3. A file transfer and management facility shall be provided to
        enable:

                1.  File transfer from a connected network element to the
                    NODE-OS.

                2.  Various file transfer options to be supported (e.g.
                    spontaneous file output, requested file output,
                    notification-initiated requested file output).

                3.  scheduling of file transfers

                4.  The operator to define subscriptions to files on behalf of
                    external devices (i.e. to make sure that files are sent from
                    NODE-OS to the specific OS on a regular basis)

                5.  Automatic post-processing of files received in the NODE-OS
                    file store

                6.  The process of transferring a file independently of the user
                    interface.

                7.  On-going file transfers to be restarted, in case of a reboot
                    of the NODE-OS.

                8.  file transfers to remain after a system restart.

                9.  A NODE-OS alarm to be issued for each file transfer that is
                    unsuccessful.

                10. A confirmation to be given for each file successfully
                    transferred.

        7.8.4.2.4 The NODE-OS shall encompass an application to create and
        manage the management information base. This application shall support
        the:

                1.  creation, deletion and the property change of a Managed
                    Object (MO).

                2.  heartbeat supervision.

                3.  alarm supervision.

7.8.4.3. FAULT MANAGEMENT

        7.8.4.3.1. The NODE-OS OAM interface shall forward alarm and event
        information from the network elements (hardware and software) to the
        higher level NMS.

        7.8.4.3.2. Alarm information shall include:

                1.  MSSC/VLR alarms (including SS7 alarms from the switch).

                2.  Messaging Platform alarms.

                3.  HLR alarms.

                4.  AuC alarms.

                5.  EIR alarms.

                6.  ILR alarms.

        7.8.4.3.3. Facilities shall be provided to allow the following from the
        NODE-OS OAM for fault information:

                1.  collection and storage

                2.  status monitoring

                3.  viewing

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                4.  history handling

                5.  definition

                6.  correlation, filtering and re-classification

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7.8.4.10. INTERWORKING LOCATION REGISTER

7.8.4.10.1. GENERAL DESCRIPTION

        7.8.4.10.1.1. ILR forms part of the cellular/satellite interworking
        function which enables roaming of ICO subscribers between the ICONET and
        other cellular networks as described in Section 4. The ILR is a database
        which is based on the ICO HLR construct.

7.8.4.10.2. REQUIREMENTS

        7.8.4.10.2.1. The following functionalities shall be supported in the
        dialogue between the NODE-OS and the ILR:

                1.  connection and association handling;

                2.  command and response communication to and from the ILR,
                    including spontaneous report reception;

                3.  logging and authority control;

                4.  file administration;

                5.  file transfer;

                6.  event logging;

                7.  subscription handling, which is a general mechanism for
                    distribution of files, delayed responses, and spontaneous
                    reports received from the ILR.

7.8.4.10.3. CONFIGURATION MANAGEMENT

        7.8.4.10.3.1. Software management shall be incorporated into the ILR
        element. This shall enable:

                1.  The display of software properties for a selected network
                    element to be supported.

                2.  The operator to search for a specific software unit or
                    program correction, among a selected set of network elements
                    or in the complete network.

                3.  Comparison among software revisions of a selected set of ILR
                    or the complete network shall be supported.

                4.  The information stored in the NODE-OS database to be updated
                    with the data of the ILR.

                5.  the operator to set certain filters in the tool properties
                    that restrict the scope of the database retrieving
                    operations.

                6.  importing of files from input media.

                7.  Handling of a suitable file store.

                8.  Files to be loaded into the ILRfile store, before activation
                    of software units.

                9.  software unit downloading (i.e. loading of software, testing
                    and activation)

                10.

7.8.4.10.4. FAULT MANAGEMENT

        7.8.4.10.4.1. The NODE-OS shall manage the alarms generated by the ILR
        subsystem.

        7.8.4.10.4.2. The NMC shall monitor the operational state of the ILR.

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        7.8.4.10.4.3. Test procedures shall be available to test the ILR
        transactions as well as the communication to the ILR.

        7.8.4.10.4.4. Alarms to be managed shall include:

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                1.  ILR Hardware Fault Alarms

                2.  Database Update alarms

                3.  Automatic Database recovery initiated alarms

                4.  Database threshold alarms

                5.  Signalling failures on GSM interface links

                6.  Excessive number of retries on GSM interface links

                7.  Threshold Alarms.

        7.8.4.10.4.5. The NODE-OS shall encompass an alarm adaptation facility.
        This shall include:

                1.  The reception of the alarms from all ILRs currently
                    specified to be supervised in the NODE-OS information model.

                2.  setting of mandatory attributes and several optional
                    attributes in the Alarm Records.

                3.  the forwarding of created Alarm records to the Fault
                    Management Kernel.

                4.  The conversion of an ILR alarm printout to an Alarm Record.

                5.  A database consistency check. This shall be made to update
                    the ILR alarm information in NODE-OS after error situations.

                6.  The enabling/disabling of the ILRheartbeat supervision.

                7.  The setting of a heartbeat supervision interval.

                8.  The modification of the default values for mapping ILR alarm
                    class to perceived severity and to probable cause.

                9.  The modification of the default values for mapping ILR Alarm
                    Category.

                10. The update of the Probable Cause value set for a specific
                    Alarm Slogan.

                11. The update of the ILR specific problem list (Alarm Slogans),
                    of the ILR Probable Cause List, and of the ILR Event Type
                    list.

                12. The addition/removal of conversion rules for one or more
                    Alarm Slogans.

                13. The update of input parameters to conversion rules.

7.8.4.10.5. PERFORMANCE MANAGEMENT

        7.8.4.10.5.1. The ILR shall report:

                1.  transaction load and response time

                2.  database size

                3.  update and query failure rates

                4.  service activation time.

        7.8.4.10.5.2. A variety of performance parameter measurements shall be
        recorded concerning the ILR and these shall be agreed in liaison with
        ICO during the requirements phase. However, typical parameters shall be
        as per the HLR.

7.8.4.10.6. SECURITY MANAGEMENT

        7.8.4.10.6.1. None.

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7.8.4.11. Intelligent Network System  (F/R)

7.8.4.11.1. The IN platform provides customised services for calls to/from both
         ICO subscribers and roamers within the ICONET.

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7.8.11. DIGITAL COMMUNICATION NETWORK

7.8.11.1. GENERAL

        7.8.11.1.1. The Digital Communication Network (DCN) is described in
        Section 6.5.

        7.8.11.1.2.Not Used

        7.8.11.1.3. DCN NMS shall support the DCN management functions. The DCN
        management functions shall include the functionalities listed below and
        in Section 7.8.11.4:

                1.  Each SAN DCNRouter/Ethernet switch

                    a.  Normal/Fail

                    b.  Link Fail alarm

                    c.  Router statistics (via text dump, information provided
                        will be vendor dependent)

                    d.  Routing Table Display (via text dump)

                    e.  Routers can be configured remotely by the DCN NMS.

        7.8.11.1.4. Each SAN Encryption device shall provide a Normal/Fail
        status to the SAN OSS via a relay contact.

        7.8.11.1.5. Each NMC/BNMC Encryption device shall provide a Normal/Fail
        status to its local LINK-NMS via a relay contact

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7.8.11.2. CONFIGURATION MANAGEMENT

        7.8.11.2.1. Not Used

        7.8.11.2.2. Not Used

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        7.8.11.2.3. Not Used

        7.8.11.2.4. DCN Equipment at each SAN, NMC and Backup NMC [and OT & DF
        (if provided)], shall have a capability to be configured locally

        7.8.11.2.5. DCN Encryption Device shall have the capability to be
        configured and monitored locally only; including enabling and disabling
        encryption function for each WAN link.

7.8.11.3. FAULT MANAGEMENT

        7.8.11.3.1.Not Used

        7.8.11.3.2. Not Used

7.8.11.4. PERFORMANCE MANAGEMENT

        7.8.11.4.1. Not Used

        7.8.11.4.2. The DCN NMS shall be configurable to select, from the
        available Router MIB variables, MIBs to be used for Performance Data.
        Typical DCN performance data to be reported to the DCN NMS shall
        include:

            1.  Router CPU Utilization;

            2.  Router Free Memory;

            3.  Collision on LAN interface

            4.  Interface Input/Output bit rate

            5.  No. of packets with CRC error on a serial link.

        7.8.11.4.3 The DCN NMS operator shall be able to set thresholds that, if
        exceeded, will generate a trap.

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7.8.12. ICONET SYNCHRONISATION SYSTEM

7.8.12.1. GENERAL DESCRIPTION

        7.8.12.1.1. Accurate timing/frequency synchronisation between elements
        of the ground network, radio/satellite and interconnecting terrestrial
        networks needs to be accomplished in order to support the mobile
        services being provided. At the system level the NMC requires to be able
        to control, audit and manage the network synchronisation as identified
        in Section 6.25.1. For this purpose, the synchronisation system is to be
        treated as a logical network element.

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9. CAPACITY REQUIREMENTS

9.1 DIMENSIONING DRIVERS

        9.1.1. This section specifies the sizing of ICO elements. In the case
        where more than one unit may be provided (e.g. MSC/VLR, HLR), the sizing
        data relates to a single unit. The total number of units to be provided
        in the initial contract to ICO shall be defined in the SOW.

        9.1.2. Individual elements of the ICONet Ground Facilities (IGF) will be
        dimensioned according to one, or more as appropriate, of the following
        dimensioning drivers:

            1.  traffic carrying capacity at an interface, defined in Erlangs,
                based on a starting point of 320 Erlangs on the A interface
                (SBS-TNM) and incremented according to the block size for each
                type of equipment. (the block sizes are defined in Schedule 9:
                Pricing Schedule).

            2.  call attempts, defined in numbers of call attempts per Busy Hour
                (an increment or a starting point is inappropriate to this
                measure)

            3.  number of subscribers, starting at 10,000 subscribers and
                incremented in 1,000 subscribers (note that where subscriber
                numbers are dynamic, such as in a VLR, the average number of
                simultaneous registered subscribers may also be less than
                10,000)

            4.  other primary factors for specific items of equipment, for
                example, numbers of transactions per Busy Hour for the IN
                platform

        9.1.3. The values stated in the Table under the heading 'Maximum Value'
        refer to the expansion capability of the equipment.

        9.1.4. Individual elements shall be sized sufficiently to meet
        dimensioning drivers while meeting the appropriate performance
        requirements, such as the blocking budget, as defined in IGF Functional
        Requirements Document.

        9.1.5. Management systems will be dimensioned to operate so as to
        support the management activity generated by the traffic load.

        9.1.6. Call holding times, whether stated explicitly or derived from the
        traffic throughput and BHCA load on a network element, shall be
        considered as the total times for which resources are allocated to a
        particular call whilst it is in progress. It is recognised that the
        resource holding times will vary between network elements for any
        particular call.

9.2. IGF ELEMENT SPECIFIC DETAILS

9.2.1. Table 9-1 describes the primary drivers and performance requirement
(referenced to the IGF Functional Requirements TBD) for each element of the IGF.

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                   TABLE 9-1 PRIMARY CAPACITY DRIVERS FOR THE
         IGF (NOTE, DELIVERED IGF EQUIPMENT CAPACITIES ARE AS SPECIFIED
                           IN S.O.W. ANNEX 1, TABLE 1)

<TABLE>
<CAPTION>

     IGF ELEMENT            DIMENSIONING DRIVER               INITIAL VALUE
--------------------    ----------------------------   -----------------------------
<S>                     <C>                            <C>
1.            RFT       C-Band EIRP towards            total 77 dBW per
                        satellite per RFT              polarisation

2.            RFT       Number of Antennas per SAN     5

3.            SBS       Traffic on the A interface     320E
                        (to TNM)

4.            SBS       Traffic on the Air             483 E (Assumption 1, based
                        interface                      on 320E, 7500 BHLU, 6500
                                                       BHSMS)

5.            SBS       Busy Hour Call Attempts        7680 BHCA (Assumption 2,
                                                       based on 320E)

6.            SBS       Busy Hour Location Updates     7,500 (Assumption 6)

7.            TNM       Traffic on the A interface     320E
                        (to SBS)

8.            TNM       Traffic on the A interface     320E
                        (to MSSC, PCM coded)

9.            TNM       Traffic on the A interface     64E
                        (to MSSC, compressed)
                        refers to MCD data

10.        Not Used
</TABLE>

<TABLE>
<CAPTION>

     IGF ELEMENT          MAXIMUM VALUE             PERFORMANCE PARAMETER          PERFORMANCE REQUIREMENT
--------------------    -------------------------   ---------------------------    -----------------------------
<S>                     <C>                         <C>                            <C>
1.            RFT                                                                     6.53.1

2.            RFT                                     NA                              6.57.1.1

3.            SBS       4,800 E                       Blocking Budget                 0.7% (9.3.4.1.2 Table 9-4)

4.            SBS       7,245 E                       Diversity traffic served by     2% (9.3.4.1.2 Table 9-4)
                                                      a single path.
                                                      (Does not apply to
                                                      signalling traffic)

5.            SBS       250, 000 BHCA                 Signalling transaction          [ ]
                                                      delay

6.            SBS       112, 500 BHLU                 Location Update transaction     [ ]
                                                      delay

7.            TNM       4,800 E                       Blocking Budget for SBS         0.7%
                                                      interface (Assumption (10))

8.            TNM       4,800 E                       Blocking Budget for MSSC        0.3%
                                                      interface, PCM coded
                                                      (Assumption (10))

9.            TNM       960 E                         Blocking Budget for MSSC        0.3%
                                                      interface, compressed
                                                      (Assumption (10))

10.        Not Used
</TABLE>

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<TABLE>
<CAPTION>
     IGF ELEMENT              DIMENSIONING DRIVER             INITIAL VALUE

-----------------------   --------------------------   ---------------------------
<S>                       <C>                          <C>
       47. HPN            Peak processing load HPN     30 per second
                          messages per second
                          (representing a
                          combination of satellite
                          transmissions and
                          inter-SAN routing of HPN
                          messages)

     48. PCS (HPN)        Average satellite command       ?
                          transmission rate.

     49. IS.41 IWF        Number of ICO/IS.41          50,000 registered in each
                          subscribers capable of       direction
                          roaming

     50. IS.41 IWF        Busy Hour Network and ICO    3,750 (Assumption 6)
                          VLR registrations

     51. IS.41 IWF        Busy Hour Call Attempts      4,100 (Assumption 2,9,
                          (MT for ICO/IS.41            based on 14E in 12 SANs)
                          subscribers)

     52. PDC IWF          Number of PDC/ICO            50,000
       (OPTION)           subscribers capable of
                          roaming

 53. PDC IWF (OPTION)     Busy Hour Network and ICO    1,900 (Assumption 64)
                          VLR registrations

 54. PDC IWF (OPTION)     Busy Hour Call Attempts      750 (Assumption 2,9, based
                          (MT for ICO/PDC              on 2.5E in 12 SANs)
                          subscribers)

     55. PDC IWF          Traffic through IMSC.        77 Erlangs (Assumption 9)
       (OPTION)

 56. PDC IWF (OPTION)     Busy Hour Call Attempts      1,900 (Assumption 2, based
                          through IMSC                 on 77E)
</TABLE>

<TABLE>
<CAPTION>
     IGF ELEMENT                    MAXIMUM VALUE                  PERFORMANCE                   PERFORMANCE
                                                                    PARAMETER                    REQUIREMENT
-----------------------  -   ----------------------------    -----------------------------     --------------
<S>                         <C>                              <C>                               <C>
       47. HPN               30 per second                                                           [ ]

     48. PCS (HPN)                                             Command transmission delay            [ ]

     49. IS.41 IWF           Up to 4 Million subscribers.      NA                                    NA

     50. IS.41 IWF           To be stated by NEC               Registration delay                    [ ]

     51. IS.41 IWF           To be stated by NEC               Signalling transaction delay          [ ]

     52. PDC IWF             To be stated by NEC               NA                                    NA
       (OPTION)

 53. PDC IWF (OPTION)        To be stated by NEC               Registration delay                    [ ]

 54. PDC IWF (OPTION)        To be stated by NEC               Signalling transaction delay          [ ]

     55. PDC IWF             To be stated by NEC               Blocking budget.                      0.3%
       (OPTION)

 56. PDC IWF (OPTION)        To be stated by NEC               Signalling transaction delay          [ ]

</TABLE>

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<TABLE>
<CAPTION>
     IGF ELEMENT             DIMENSIONING DRIVER               INITIAL VALUE

-----------------------      ----------------------------    -----------------------------
<S>                          <C>                             <C>
57. IN Platform (F/R)        Number of IN subscribers.         50,000

58. IN Platform (F/R)        Busy Hour IN transactions         14,000 BHINT (Assumption 8)

       59. SRMC              Number of satellites              12

       60. SRMC              Number of SANs                    12

       61. SRMC              Number of spot beams per          163
                             satellite

       62. SRMC              Number of filters per             490
                             satellite

       63. SRMC              Satellite orbit period            6 hours

       64. SRMC              Planning Ground Cell size         1 degree

       65. SRMC              Payload command table size        32,000

       66. SRMC              HPN tables                        4

       67. SRMC              Number of frequency               4
                             co-ordination regions

       68.1 DCN              1) Number of serial ports         8 X.21 ports (shared among
                             on DCN Router                     x.25 interface and WAN
                                                               interface).

</TABLE>

<TABLE>
<CAPTION>
     IGF ELEMENT                  MAXIMUM VALUE                 PERFORMANCE                  PERFORMANCE
                                                                PARAMETER                    REQUIREMENT
-----------------------       -----------------------------     --------------------         -----------
<S>                           <C>                               <C>                          <C>
57. IN Platform (F/R)              1 M                           NA                            NA

58. IN Platform (F/R)              3.6 M                         Transaction delay             [ ]

       59. SRMC                    24                            NA                            NA

       60. SRMC                    24                            NA                            NA

       61. SRMC                    163                           NA                            NA

       62. SRMC                    490                           NA                            NA

       63. SRMC                    6 hours                       NA                            NA

       64. SRMC                    1 degree                                                    [ ]

       65. SRMC                    32,000                                                      [ ]

       66. SRMC                    4                                                           [ ]

       67. SRMC                    4                             NA                            NA

       68.1 DCN                    Routers have 2 free card      NA                            NA
                                   slots.  If both slots used
                                   for expansion of serial
                                   interfaces the maximum
                                   number of serial ports
                                   becomes 24.
</TABLE>

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<TABLE>
<CAPTION>
     IGF ELEMENT       DIMENSIONING DRIVER              INITIAL VALUE                  MAXIMUM VALUE

-------------------    ----------------------------     --------------------------     ---------------------------
<S>                    <C>                             <C>                             <C>
       68.2 DCN         1) Number of LAN ports on       1) 3x100BASE-TX and 4x         Router has 2 free card
                        the DCN Router                  10BASE-T per router at the     slots.  If both slots are
                                                        SAN                            used for expansion of
                                                                                       100BASE-TX ports, the
                                                        2) 2x100BASE-TX and 4x         maximum number of 100BASE-T
                                                        10BASE-T ports per router      ports becomes 7 and
                                                        at the NMC and BNMC            10BASE-T ports  remains 4.
                                                                                       If instead the 2 free ports
                                                                                       are used for expansion of
                                                                                       10BASE-T ports, the maximum
                                                                                       number of 10BASE-T ports
                                                                                       becomes 20 and the
                                                                                       100BASE-T ports remains at
                                                                                       3 for the SAN and 2 for the
                                                                                       NMC/BNMC.

       68.3 DCN         Number of LAN ports on DCN      24                             24
                        Switch

       69. LIAS         Number of legal intercept       1500                           5000
                        target subscribers
                        provisioning

       70. LIAS         Number of warrants that         To be stated by NEC            To be stated by NEC
                        can be set against a
                        target subscriber
</TABLE>

<TABLE>
<CAPTION>
     IGF ELEMENT         PERFORMANCE       PERFORMANCE
                         PARAMETER         REQUIREMENT
-------------------      -------------     -----------
<S>                      <C>               <C>
       68.2 DCN              NA               NA

       68.3 DCN              NA               NA

       69. LIAS              NA               NA

       70. LIAS              NA               NA

</TABLE>

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<TABLE>
<CAPTION>

     IGF ELEMENT            DIMENSIONING DRIVER          INITIAL VALUE     MAXIMUM VALUE               PERFORMANCE    PERFORMANCE
                                                                                                       PARAMETER      REQUIREMENT
--------------------    ----------------------------    ---------------    ---------------------     ------------    ------------
<S>                     <C>                             <C>                <C>                       <C>             <C>
       71. LIAS         Number of input channels            30                540                        NA             NA
                        (i.e 64 kbps circuits)
                        provisioned for the X3
                        interface between the
                        MSSC and the LIAS.

       72. LIAS         Number of output channels           24                240                        NA             NA
                        (i.e. 64 kbps circuits)
                        provisioned for the X3
                        interface between the LIAS
                        and the MSSC.

       73. LIAS         Number of destination               4                 To be stated by NEC        NA             NA
                        addresses to which a
                        monitored call can be
                        delivered simultaneously
                        via switched connections.

       74. LIAS         Number of destination               0                 To be stated by NEC        NA             NA
                        addresses to which a
                        monitored call can be
                        delivered simultaneously
                        via fixed (i.e. leased
                        line) connections.

       75. LIAS         Number of fixed                     0                 30                         NA             NA
                        connections (i.e. point to
                        point 64 kbit/s E0 links)
                        to monitoring centres
                        supported

       76. LIMS         Number of legal intercept           18000             60000                      NA             NA
                        target subscribers
                        provisioning
</TABLE>

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<TABLE>
<CAPTION>

     IGF ELEMENT          DIMENSIONING DRIVER        INITIAL VALUE         MAXIMUM VALUE                PERFORMANCE    PERFORMANCE
                                                                                                        PARAMETER      REQUIREMENT
-------------------   ---------------------------   -------------------   ------------------------     --------------  ------------
<S>                   <C>                           <C>                   <C>                          <C>             <C>
       77. LIMS       Number of warrants that       To be stated by NEC    To be stated by NEC              NA           NA
                      can be set against a
                      target subscriber

       78. LIAS       Number of physical X.25       2                      To be stated by NEC              NA           NA
                      network ports for the
                      delivery of Intercept
                      Related Information to the
                      approved monitoring
                      centres.
</TABLE>

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9.2.2. ASSUMPTIONS/DERIVED DATA

            1.  Traffic on the Air Interface consists of A-interface traffic
                plus the traffic resulting from providing diversity paths to 40%
                of calls, plus the traffic resulting from registrations,
                location updates, IMSI attach and detach, and SMS. The
                registration and LU traffic is calculated based on 8 seconds of
                call holding time per LU. The SMS traffic is calculated based on
                10 seconds per message.

            2.  BHCA calculation for units affected by MT and MO calls assumes
                the average call holding time across all calls (successful and
                unsuccessful) is 150s. 40% of calls are MT. Maximum BHCA values
                based on approx. 30 x times initial values (traffic growth =
                x10, capability for growth = x1.5, predicted decrease in avg.
                call duration resulting from unsuccessful call attempts = x 2)

            3.  Voice mail traffic 1.15% of SBS A-interface total. Maximum size
                SAN assumes 5% voice mail.

            4.  RVA traffic 2.5% of SBS A-interface total. Average RVA duration
                10s.

            5.  Year 2010 SMMO=5m, SMMT=200m, HPN = 110m. Initial value 10%,
                Busy Day = Year/265, Busy Hour = Busy Day / 12. SMS message
                length average 30 characters.

            6.  Assumes 0.25 Location Updates / Registered UT / Busy Hour. Also
                assumes 90% of ICO-HLR customers registered, 15% of IS.41
                roamers, and 15% of PDC roamers. Initial registration average
                0.1 Reg / UT / Busy hour. VLR change average 0.05 Reg / UT /
                Busy hour. NOTE: MSC/VLR Location Updates per Busy Hour based on
                30,000 active registered subscribers, to maintain consistency
                with BAFO 2a figures.

            7.  Assumes that IMEI is checked on initial registrations to HLR.

            8.  Assumes 25% of MO calls require IN

            9.  MT called number distribution: ICO HLR 33%; ICO-GSM ILR 30%; GSM
                anonymous 24%; ICO-PDC ILR 2%; ICO-IS.41 ILR 11%.

            10. The TNM is non-blocking, thus the blocking budget for the TNM is
                associated with the number of ports provided.

            11. The MSSC is non-blocking, thus the blocking budget for the MSSC
                is associated with the number of circuits provided.

            12. Assumes authentication check performed on MO and MT calls only,
                with 5 sets of triplets returned from each request to the AuC.

            13. Facsimile traffic into the voicemail system is assumed to be 10%
                of the voice traffic and is additional to the voice traffic.
                (F/R)

9.3. SIZING REQUIREMENTS

9.3.1. NETWORK MANAGEMENT SYSTEM

         9.3.1.1. The Network management system shall provide the capability for
         growth to accommodate the equipment corresponding to the ICO 10-year
         traffic model.

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9.3.2. SWITCHING EQUIPMENT

        9.3.2.1. Dimensioning rules for a typical switch are shown in the table
        below:

           9.3.2.2. TABLE 9-2 DIMENSIONING RULES FOR A TYPICAL SWITCH

<TABLE>
<CAPTION>
          TRAFFIC RATE                    2.5            mERLANGS
          ------------                    ---            --------
<S>                                       <C>            <C>
Total traffic                             320            Erlangs
</TABLE>

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            2.  Exponential distribution of traffic, randomised across sub
                cells.

            3.  Drive Frequency and Timeslot (f, t) planing relative to beam
                traffic load and 490 filters/satellite.

            4.  Generate traffic based on traffic distribution across sub-beams
                and Table 9-5.

            5.  Pass criteria: with assumed hardware meet the blocking
                probability defined in Table 9-4, for 320, ~1000, and 3200
                Erlang.

9.3.5. TNM EQUIPMENT

                        9.3.5.1. TABLE 9-6 TNM EQUIPMENT

<TABLE>
<CAPTION>
   ITEM                   DESCRIPTION                                  SIZING RULE
   ----                   -----------                                  -----------
<S>        <C>                                                   <C>
1.         TNM

1.1        RPC

1.1.1      Sparc 1000 with 2 processors, 512MB MM, 5GB HD,       13 calls/sec full performance
           Ethernet Interfaces, 8mm Tape Drive and CD
           ROM Drive                                             17 calls/sec peak
                                                                 (1+1 Redundancy)

                                                                 1. Max. 2000 Erlangs per RPC

1.1.2      MMI with one 10Bt and one 100Bt Ethernet ports        1 per RPC
1.1.3      Not Used.

1.1.4      RPN Ethernet Hubs (10BT)                              2 per SAN for first 8RPN's.
                                                                 2 per 8 RPNs thereafter

1.1.5      Power Switchover                                      1 Per Rack

1.1.6      19" C&C Rack                                          1 Per RPC

1.2        TNM Software License                                  1 per TNM

1.3        Software Licences

1.3.1      Solaris Operating System with Media                   1 per RPC for first 2 SANs

1.3.2      Solaris Operating System without Media                1 per RPC subsequent SANs

1.3.3      Solstice - Runtime                                    1 per SAN site (2 for ITC)
</TABLE>

<TABLE>
<S>        <C>                   <C>
    2      RPN SUBSYSTEM

   2.1     FOR SAN
                                 Required MUX/VOC channels

                                 Traffic Channels +

                                 Blocking +

                                 Inter-site Traffic Channels +

                                 Inefficiencies +

                                 Signalling Channels +

                                 Traffic Channels

                                 PSTN Traffic in Erlangs converted to Ch
</TABLE>

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<TABLE>
<S>        <C>                                   <C>
2.2.1      Vocoder/Mux Card                      Max 8 channels per card

2.2.2      RPN/RPC Processor                     (Min 2) maximum of 2 Mbps each

2.2.3      19" 6RU Shelf                         1 per RPN

2.2.4      Power Unit

2.2.4.1    RPN Power Supply                      1 per RPN

2.2.4.2    Mux/VOC Power Unit                    1 per Rack

2.2.5      Fan Unit                              1 per shelf

2.2.6      19" C&C Rack                          1 per NMC

2.3        NOT USED

2.4        Installation Materials                1 per SAN
</TABLE>

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           THIS TABLE NO LONGER USED

9.3.6 DCN EQUIPMENT

<TABLE>
<CAPTION>
   ITEM          DESCRIPTION                               SIZING RULE
   ----          -----------                               -----------
<S>        <C>                                             <C>
1.         DIGITAL COMMUNICATION NETWORK
1.1        SAN
1.1.1      Ethernet Switch 10/100BASE-T                    4 per SAN
1.1.2      Router                                          2 per SAN
1.1.3      Encryption Device                               [2 - 5 per SAN]
1.1.4      Cables (associated LAN components)
1.1.5      19inch Rack                                     2 per SAN
1.2        NMC/BNMC
1.2.1      Ethernet Switch 10/100BASE-T                    2 per site
1.2.2      Router                                          2 per site
1.2.3      Encryption Device                               [2 per site]
1.2.4.     Cables (associated LAN  components)
1.2.5.     19inch Rack                                     2 per site
1.2.6.     DCN NMS
1.2.6.1    Workstation                                     1 per site
</TABLE>

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<TABLE>
<S>        <C>                                             <C>
1.2.6.2    Display                                         1 per site
1.2.6.3.   CD-ROM Drive                                    1 per site
1.2.6.4.   8mm Tape Drive                                  1 per site
</TABLE>

9.4 NETWORK INTERFACE

        9.4.1. A two port SAN shall provide a capacity, for connecting calls to
        the terrestrial networks, of 320 Erlangs to the PSTN via one route plus
        64 Erlangs in two equal parts for inter-site traffic, excluding DCN and
        signalling which shall be provided appropriately.

        9.4.2. A three port SAN shall have provide a capacity, for connecting
        calls to the terrestrial networks, of 320 Erlangs to the PSTN via one
        route plus 96 Erlangs in three equal parts for intersite traffic,
        excluding DCN and signalling which shall be provided appropriately.

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            5.  A minimum of 4 HPN Channel Units

            6.  A minimum set of channel managers capable of supporting the
                above channel units. Associated Channel Managers: A minimum set
                capable of supporting the above channel units.

            7.  A SAN OSS system responsible for the training SAN only. This OSS
                system shall be connected to the centralised ICO NMC.

            8.  Miscellaneous: ALC, AFC and all other subsystems required for
                normal operation of the SAN.

        12.1.1.8. Fully operational software for the test SAN enabling it to
        function as a reduced capability (in terms of traffic only) SAN. The
        OT&DF shall only contain special software to the extent that is
        necessary to override its operations and protect the main ICO network
        from interference.

12.1.2. SAN NETWORK MANAGEMENT

        12.1.2.1. A local network management subsystem (LNMS - including the
        NODE-OS, NMC NMS and SRMC) shall be installed at the OT&DF.

        12.1.2.2. The LNMSC shall have the ability to be operated from the
        centralised ICO NMC site. A dedicated [64kbps} link shall be used to
        link the two sites.

        12.1.2.3. The OT&DF will have its router[s] connected to the IGF DCN by
        WAN port [s]

        12.1.2.4. Not Used

        12.1.2.5. Not Used

        12.1.2.6. The RF equipment at the technical centre SAN shall normally be
        under control of SAN-OSS, however, an override control function will be
        provided.

        12.1.2.7. This override control function will enable the SAN RFT to be
        activated when permission is granted from the NMC. It may be
        de-activated at any time autonomously by the technical centre SAN.

        12.1.2.8. The local NMS (OT&DF) shall be configured to control equipment
        at OT&DF only.

        12.1.2.9 The main NMC may request control of the technical centre from
        the Local NMC or may release control to the local NMC.

12.1.3. MSSC/VLR AND HLR/AUC

        12.1.3.1. A minimum configuration of the following list of equipment:

            1.  MSSC/VLR

            2.  HLR/AuC

            3.  IN

            4.  CCS7 Links

            5.  Trunks

            6.  Conference Links

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            7.  Echo Cancellers

        12.1.3.2. The functions of these MSSC/VLR/HLR/AuC/IN shall be identical
        to that available for the same equipment in a SAN.

        12.1.3.3. A simulator connection limited by the simulator's capablities,
        shall be provided.

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                         CHANGE ORDER NO:3 ATTACHMENT 6

            1.  SCHEDULE 14 - STATEMENT OF WORK

            2.  ANNEX 1 - CONTRACTOR'S DELIVERABLES

            3.  ANNEX 5 - TRAINING
<PAGE>   1223
                         CHANGE ORDER NO:3  ATTACHMENT 6

      SCHEDULE 14 - STATEMENT OF WORK
<PAGE>   1224
                                     FINAL

                                                       ICO GLOBAL COMMUNICATIONS
                                                         1 QUEEN CAROLINE STREET
                                                                     HAMMERSMITH
[ICO LOGO]                                                         LONDON W6 9BN
                                                                  UNITED KINGDOM

                                                           TEL: +44 181 600 1000
                                                           FAX: +44 181 600 1199

                                                           I-CO SERVICES LIMITED
                                               REGISTERED IN ENGLAND: NO.3045294
                                         REGISTERED OFFICE: 1 QUEEN CAROLINE ST.
                                                                LONDON W6 9BN UK

                                STATEMENT OF WORK

                             COMMERCIALLY SENSITIVE
                             REPRODUCTION PROHIBITED

CONFIDENTIALITY STATEMENT

ALL INFORMATION CONTAINED IN THIS DOCUMENT IS CONFIDENTIAL AND PROPRIETY TO ICO
GLOBAL COMMUNICATIONS OR ANY OTHER MEMBER OF THE ICO GLOBAL COMMUNICATIONS GROUP
AND INTENDED ONLY FOR THE ADDRESSEE TO WHOM THIS COPY IS ADDRESSED. THE
RECIPIENT SHALL NEITHER COPY, DISTRIBUTE, DISCLOSE OR USE THE INFORMATION
CONTAINED IN IT FOR ANY PURPOSE OTHER THAN FOR WHICH THIS DOCUMENT HAS BEEN MADE
AVAILABLE NOR PERMIT ANYONE ELSE TO DO THE SAME. THE RECIPIENT SHALL BE HELD
FULLY LIABLE FOR ANY WRONGFUL DISCLOSURE OR USE OF ANY OF THE INFORMATION
CONTAINED IN THIS DOCUMENT BY HIM, OR HIS OFFICERS OR EMPLOYEES OR ANYONE ELSE
TO WHOM HE MAKES THE INFORMATION AVAILABLE.

                 DOCUMENT NO.:              EN IG ICO SW/000001

                 VERSION:                   3.2

                 DATE:                      25 March 1998

<TABLE>
<CAPTION>

       PREPARED          ICO                                NEC
       --------          ---                                ---
<S>                     <C>                                 <C>
       AUTHOR:           TITLE: VP ICONET                   TITLE: PROGRAM MANAGER

                         SIGNATURE:                         SIGNATURE:
                         /s/ G. L. Titzer                   /s/ T. Furukawa
                         ----------------------------       -------------------------
</TABLE>
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AMENDMENT RECORD
<TABLE>
<CAPTION>

REVISION        DATE          CN NO.      REASON FOR CHANGE
----------      --------      -------     -------------------------------------------------
<S>             <C>           <C>         <C>
1.0             14/2/97                   NEC Contract Issue

2.0             17/2/97                   To incorporate Final NEC comments

2.1             19/2/97                   Changes to paragraph 9.3, LIMF para 4.11.5 added

2.2             26/2/97                   Minor editorial changes

3.0             13/08/97                  Changes to reflect 60/61/120 Days and PCS Options

3.1             07/10/97                  Changes agreed Coggin/Jenkins 24 September 1997

3.2             25/03/98                  Changes to reflect CR#6
</TABLE>

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                                TABLE OF CONTENTS

1. INTRODUCTION                                                           5

2. STATEMENT OF WORK CONTENTS                                             7

3. APPLICABLE DOCUMENTS                                                   8

4. SCOPE OF WORK                                                          8

5  CONTRACTOR'S DELIVERABLES                                             15

6. INFORMATION, SERVICES & EQUIPMENT                                     15

7. INSTALLATION SITE CONDITIONS                                          16

8. PROGRAM MANAGEMENT AND IMPLEMENTATION                                 16

9. TRAINING                                                              17

10. DOCUMENTATION                                                        17

11. SITE WORKING ARRANGEMENT                                             17

12. IGF TEST PLAN                                                        18

13. END-TO-END CALL DEMONSTRATION                                        19

14. ICONET INTEGRATION                                                   19

15. IGF ACCEPTANCE CRITERIA                                              19

16. AIR INTERFACE SIGNALLING PROTOCOL VALIDATION                         19

17. IGF SYSTEM SUPPORT                                                   19

                                                                               3
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1.       INTRODUCTION

1.1      This Statement of Work (SOW) defines the technical and management
         requirements for the design, construction, installation, integration
         and testing of the ICONET Ground Facilities (IGF). The SOW also defines
         the information, services and equipment to be provided by ICO.

1.2      The main Deliverables of this Supply Agreement are the ICONET Ground
         Facilities comprising twelve (12) SANs, NMC, and Back-up NMC, installed
         and tested within itself and integrated into the ICO System which can
         be enlarged and enhanced as set out in this Agreement.

1.3      The intention is to be able to demonstrate basic voice, low rate fax
         and data calls to UTs, via the satellite, and to the terrestrial
         network, from one standalone SAN, by the 1st March, 2000 provided that
         the other ICO System elements are available and functioning correctly.

1.4      It may be possible to demonstrate calls on additional standalone SANs,
         however there is no contractual commitment to this and it is subject to
         progress of the integration of the IGF being provided under the terms
         of the Supply Agreement.

1.5      If the number of standalone SANs made available for these call
         demonstrations is increased then the Handover Milestone may be delayed,
         and the Master Level Schedule, included in Annex 4, will be subject to
         review.

1.6      The warranty provisions relevant to this SOW are set out in clause 40
         of the Terms and Conditions.

                                                                               4
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2.       STATEMENT OF WORK CONTENTS

2.1      The SOW comprises this main text plus Annexes listed below

                                   TABLE SOW-1

                      SUMMARY OF STATEMENT OF WORK ANNEXES
<TABLE>
<CAPTION>

ANNEX               DOCUMENT       DESCRIPTION OF TASK
----------          ---------      ---------------------------------------------
<S>                 <C>            <C>
1                   000002         Contractor's Deliverables

2                   000003         ICO Services and Equipment

3                   000004         Installation Site Conditions

4                   000005         Program Management & Implementation

5                   000006         Training

6                   000007         Documentation

7                   000008         Site Working Arrangements

8 A                 000009         IGF Test  Plan

8 B                 0000010        Call Demonstration Plan

9                   000011          ICONET Integration

10                  000012         IGF Acceptance Criteria

11                  000013         Air Interface Signalling Protocol Validation
</TABLE>

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3.       APPLICABLE DOCUMENTS

         Applicable documents of this SOW are listed in the ICONET Ground
         Facilities Requirements ( IGFR) Section 1.3.

4.       SCOPE OF WORK

4.1      The Works shall include the design, manufacture, factory testing, and
         delivery of the ICONET Ground Facilities (IGF) including installation,
         integration, and site testing in accordance with Annexes 7 and 8A.

4.2      The Works shall include an end-to-end call demonstration of basic
         voice, low rate fax and data services from a single standalone SAN, via
         the satellite and the terrestrial network, provided that the other ICO
         System elements, supplied by ICO, are available and functioning
         correctly in accordance with Annex 8B.

4.3      The Works shall also include, at ICO's selection, provision of
         engineering support and materials for the ICONET Integration of the IGF
         with ICO's space segment, terrestrial telecommunications networks and
         ICO User Terminals (UTs) in accordance with Annex 9.

4.4      The IGF will include:

         -        SAN equipment for 12 SAN sites located in twelve (12)
                  different countries

         -        NMC and Back Up NMC equipment located in two (2) different
                  countries

         -        Interface provisions for interconnecting SANs and for
                  connecting SANs to terrestrial networks

                                                                               6

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         -        Documentation

4.5      The IGF will implement all the requirements set out in the ICONET
         Ground Facilities Requirements Document ("IGFR") Version 26 Revision 1
         except for those marked therein as "F/R" or "Option".

         Compliance of the IGF with the IGFR shall be demonstrated by the
         Contractor as described in Annexes 8A, and 8B.

                                                                               7

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4.6         HIGH LEVEL SYSTEM DESCRIPTION

4.6.1       The contractor shall prepare and maintain a High Level System
            Description (HLSD) for the IGF consistent with the IGFR.

4.6.2       The Contractor shall maintain an adequately staffed System Team to
            support the HLSD so that at all times the HLSD is internally
            consistent and complete.

4.6.3       The Contractor shall issue -:

            The Draft Contents List of the HLSD for ICO review and approval, 2
            weeks after the date of the Supply Agreement;

            The first draft of the HLSD 2 weeks prior to the Preliminary System
            Design Review.

4.6.4       The first version of the HLSD will be subject to review and approval
            by ICO and issued formally by the Contractor within one month after
            the Preliminary System Design Review (PDR-1).

            - A second version of the HLSD will also be subject to review and
            approval by ICO and issued formally by the Contractor within one
            month after the Preliminary System Design Review (PDR-2)

            The final version of the HLSD will be subject to review and approval
            by ICO and issued formally by the Contractor within one month after
            completion of Level 2 Acceptance of the IGF.

4.6.5       The Contractor shall maintain the HLSD in line with the IGF Design,
            with a revised Version being issued within one month after any
            System Design Review.

                                                                               8

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4.6.6       The HLSD shall contain the following:

            1) A System Reference Model Description that defines the major
            sub-system functional groups of the IGFR, the functionality of each
            major sub-system and the interfaces between the sub-systems;

            2) An IGFR System Analysis showing the processes and procedures of
            how the major IGF sub-systems interact between themselves to provide
            IGFR system functions and performance; including end user services
            and administrative and support services;

            3) An End-to End System Analysis showing how the IGF interacts with
            external elements (e.g. UT and satellite) and the resultant
            end-to-end capabilities, performance budgets and resource budgets.

            To enable this to be done, ICO will provide initial performance
            budgets and resource budgets, for external elements, to be used for
            this End to End System Analysis. The End to End System Analysis will
            be developed and finalised during the course of the Supply
            Agreement.

4.6.7       The Contractor shall maintain the HLSD in line with the IGF Design,
            with a revised Version being issued within one month after any
            System Level Design Review.

4.7         FUNCTIONAL DEFINITION DOCUMENTS

4.7.1       All documentation derived from any of the Applicable Documents,
            referenced in the IGFR, shall be under configuration control, and
            full traceability shall be provided. All new and updated
            documentation shall be provided to ICO.

                                                                               9

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4.8         EXTERNAL INTERFACE CONTROL DOCUMENTS

4.8.1.      ICO will control the evolution of all Interface Control Documents
            (ICDs) for external IGF interfaces including the Air Interface
            document. ICO will ensure that any modification made to an ICD has
            been co-ordinated with the Contractor and with the supplier(s) of
            the corresponding external systems before they are adopted into the
            relevant document.

4.8.2       The Contractor shall support ICO in developing the ICDs with which
            the IGF is concerned, and in particular the Air Interface. In so
            doing, the Contractor shall perform analyses and prepare draft
            material for the ICDs in a timely manner to the extent necessary to
            enable completion of the IGF in accordance with the programme
            schedule.

4.8.3       ICO will receive ICD Change Requests from the concerned parties. ICO
            will, for each ICD change proposed, perform an initial assessment of
            the change. For each ICD Change Request that passes the initial
            assessment, ICO will generate an ICD Change Proposal and distribute
            it to all concerned parties. The ICD Change Proposal will indicate
            the required response date. ICO will resolve responses to the
            changes proposed either through one-to-one meetings, joint meetings
            or through correspondence as considered necessary by ICO.

4.8.4       After an agreement has been reached regarding a ICD Change Proposal,
            a ICD Change Notice will be issued. The ICD Change Notice once
            approved and issued by ICO is a binding document which all concerned
            parties have to adhere to.

4.8.5       Whenever any proposed change of an ICD is considered by either party
            to affect the terms of this contract, the change shall be handled in
            accordance with Clause 9 of the Terms and Conditions.

                                                                              10

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4.9         REVIEWS

4.9.1       The Contractor shall conduct Reviews at both system level and
            subsystem level and for progress, according to Annex 4. .

4.9.2       The Contractor shall provide all necessary materials for Reviews,
            and will conduct the Reviews. ICO will be represented at all
            Reviews.

4.10        SYSTEM SIZING

4.10.1      The Contractor shall provide and install the Equipment listed in
            Annex 1.

4.10.2      The System sizing rules given in the IGFR section 9 shall apply.
            These shall be augmented, as appropriate, to account for multi-time
            slot services such as high speed data.

4.11        OVERALL SYSTEM SUPPORT AND INTERFACE CONTROL

4.11.1      The Contractor shall, to the extent necessary, support the overall
            development of the ICO System by participating in technical
            interface meetings relevant to the IGF and by working with UT
            vendors, terrestrial network operators, SAN operators, and the
            spacecraft vendor under ICO's guidance and direction.

4.11.2      In providing this support, the Contractor shall endeavour to ensure
            the integrity and satisfactory operation of the integrated ICO
            System, recognising that the requirements of the IGF are stated in
            the IGFR and that the Contractor is not responsible for
            implementation of other elements of the ICO System.

4.11.3      The schedule for the production of the ICDs will be as shown in the
            Master Level Schedule.

                                                                              11

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4.11.4      The Contractor shall support ICO in examining ways of optimising the
            use of terrestrial network resources used in the ICO System,
            including maximising the extension of ICO Air Interface voice coding
            through ICO System to the point of interconnect with external
            networks, to jointly maximise service quality and resource
            efficiency.

5.       CONTRACTOR'S DELIVERABLES

5.1         Annex 1 provides a detailed breakdown of the Equipment and services
            to be provided by the Contractor.

5.2         Any revision to the quantities or services shall be subject to the
            formal Contract Change procedures set out in Clause 9 of the Terms
            and Conditions.

5.3         The Contractor shall be responsible for the packaging,
            transportation and delivery of the Deliverables in accordance with
            clauses 27 and 31 of the Terms and Conditions.

6.       INFORMATION, SERVICES & EQUIPMENT

6.1         Annex 2 provides a detailed breakdown of the information, services
            and equipment to be provided by ICO except for installation site
            conditions which are included in Annex 3.

6.2         Annex 2 also identifies the milestone dates that such information,
            services and equipment are to be made available to the Contractor.

7.       INSTALLATION SITE CONDITIONS

                                                                              12

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7.1         Annex 3 identifies the installation site conditions, including
            services and equipment to be provided by ICO.

7.2         Access to each Site shall be made available for the specific purpose
            of allowing the Contractor to inspect the Site conditions, and
            buildings and verify the installation design before the formal Ready
            for Access date.

8.       PROGRAM MANAGEMENT AND IMPLEMENTATION

8.1         Annex 4 identifies the Contractor's obligations for Program
            Management tasks including Quality Assurance and the Master Level
            Schedule, which the Contractor shall follow and work to.

8.2         The Contractor shall establish and implement a Program Management
            Organisation and system that ensures effective management of the
            Supply Agreement.

8.3         The Contractor shall establish an Office which shall be the prime
            interface with ICO and responsible for ensuring that the programme
            is executed on time to the requirements of the Supply Agreement and
            that all Deliverables to ICO are to the required technical and
            quality standard.

8.4         The Contractor shall implement a Documentation Control Procedure
            including configuration control for all documentation of this
            Agreement.

8.5         Full traceability shall be provided for all documentation derived
            from any of the Applicable Documents, referenced in the IGFR. All
            new and updated documentation shall be provided to ICO.

9.       TRAINING

                                                                              13

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9.1         Annex 5 sets out the scope of the training courses that the
            Contractor shall provide.

9.2         The training shall be conducted in the English Language.

9.3         ICO and the Contractor shall work closely together to develop a
            training program that does not impact on the Master Level Schedule
            and which ensures availability of trained ICO staff at the time when
            O & M services are required.

            Any Changes in the training syllabus, numbers of staff to be trained
            and training locations shall be subject to the formal Contract
            Change Control procedures set out in clause 9 of the Terms and
            Conditions.

10.      DOCUMENTATION

10.1        Annex 6 sets out all the Documentation to be provided, under the
            terms of the Supply Agreement.

10.2        Annex 6 identifies the number of copies of documentation to be
            provided to ICO who shall be responsible for distribution of
            documentation to the individual SAN Operators.

10.3        The documents shall be written in the English Language.

                                                                              14

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11.      SITE WORKING ARRANGEMENT

11.1        Annex 7 sets out the scope of the Site Working Arrangements and the
            safe working practices, which the Contractor shall follow.

12.      IGF TEST PLAN

12.1        Annex 8A sets out the Tests which the Contractor shall execute in
            order to demonstrate and verify the functionality of the IGF.

13.      END-TO-END CALL DEMONSTRATION

13.1        Annex 8B sets out the End-to-End call Demonstrations for the IGF
            through which the Contractor shall demonstrate the functionality of
            the IGF equipment with satellite(s), User Terminals and the
            connection to the terrestrial network.

14.      ICONET  INTEGRATION

14.1        Annex 9 sets out the ICONET Integration campaigns, maximum available
            resources and the mechanism for determining the final scope of the
            Contractor's obligation for providing ICONET Integration work, to be
            selected by ICO, integrating the IGF with the other elements of the
            ICO System.

15.      IGF ACCEPTANCE CRITERIA

15.1        Annex 10 identifies the criteria to be used for the Acceptance of
            the IGF.

16.      AIR INTERFACE SIGNALLING PROTOCOL VALIDATION

                                                                              15

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16.1        The Contractor shall perform the scope of work set out in Annex 11
            for the provision of Air Interface Signalling Protocol Validation.

17.      IGF SYSTEM  SUPPORT

            The following shall be made available upon the request of ICO, as
            set out in the Agreement.

17.1        Options identified in Annex 1 of this Statement of Work.

17.2        Delivery of Equipment, Software and Services to increase the system
            capacity to meet demand as specifically ordered by ICO under the
            terms of the Agreement.

                                                                              16

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<PAGE>   1240
CHANGE ORDER NO: 3                                                 ATTACHMENT 6

ANNEX 1 - CONTRACTOR'S DELIVERABLES
<PAGE>   1241
                                                       ICO GLOBAL COMMUNICATIONS
                                                         1 QUEEN CAROLINE STREET
                                                                     HAMMERSMITH
                                                                   LONDON W6 9BN
                                                                  UNITED KINGDOM

                                                           TEL: +44 181 600 1000
                                                           FAX: +44 181 600 1199

                                                           I-CO SERVICES LIMITED
                                               REGISTERED IN ENGLAND: NO.3045294
                                         REGISTERED OFFICE: 1 QUEEN CAROLINE ST.
                                                                LONDON W6 9BN UK
[ICO LOGO]

                             COMMERCIALLY SENSITIVE

                       ANNEX 1: CONTRACTOR'S DELIVERABLES

                             REPRODUCTION PROHIBITED

CONFIDENTIALITY STATEMENT

All information contained in this document is confidential and propriety to ICO
Global Communications or any other member of the ICO Global Communications Group
and intended only for the addressee to whom this copy is addressed. The
recipient shall neither copy, distribute, disclose or use the information
contained in it for any purpose other than for which this document has been made
available nor permit anyone else to do the same. The recipient shall be held
fully liable for any wrongful disclosure or use of any of the information
contained in this document by him, or his officers or employees or anyone else
to whom he makes the information available.

                 DOCUMENT NO.:               EN-IG-ICO-SW-000002

                 VERSION:                    3.6

                 DATE:                       25 March, 1998

       PREPARED                   ICO                         NEC

       AUTHOR:            TITLE: VP ICO NET             TITLE:  PROGRAM MANAGER

                          SIGNATURE:                    SIGNATURE:
                          /s/ G. L. Titzer               /s/ T. Furukawa
                          -----------------------       -----------------------
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Amendment record

<TABLE>
<CAPTION>
REVISION          DATE          CN NO.        REASON FOR CHANGE
<S>               <C>           <C>           <C>
1.0               14/2/97                     NEC Contract Issue

2.0               17/2/97                     To incorporate final NEC comments

2.1               18/2/97                     To incorporate revision to para 9.3 and delete para 9.4 plus
                                              renumbering from para 9.3 onwards - change to new 9.4

2.2               18/2/97                     Add specific IGFR references to options

3.0               26/2/97                     Addition of  warranty services.

3.1               26/2/97                     Minor edits.  All agreed.

3.2               13/08/97                    Changes to cover 60/61 & 120 Days Options and PCS/HPN option.

3.3               07/10/97                    Changes agreed Coggin/Jenkins 24/09/97. Plus editorial edits
                                              as per Woodhouse email of re: SA0424

3.4               25/02/98                    Changes to reflect CR#6 with revisions accepted

3.5               20/3/98                     Exclusion of DCN from optional extended warranty

3.6               25/3/98                     Incorporating additional ICO revisions
</TABLE>

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                                TABLE OF CONTENTS

CONFIDENTIALITY STATEMENT                                                    1

 1. GENERAL                                                                  4

 2. DELIVERABLE DOCUMENTATION                                                4

 3. MAJOR SUBSYSTEMS  OF THE IGF                                             5

 4. OPTIONS                                                                  7

 5. OPTIONAL SUPPORT SERVICES AND EXTENDED WARRANTY                          7

 6. PERFORMANCE AND CAPACITY REQUIREMENTS OF DELIVERABLE EQUIPMENT          13

 7. DELIVERABLE  FUNCTIONS AND FEATURES                                     15

 8. DELIVERABLE EQUIPMENT                                                   16

 9. DELIVERABLE SERVICES                                                    21

10. SITE INSTALLATION DELIVERABLES                                          21

11. SYSTEM CONFIGURATION INFORMATION                                        22

Proprietary & Confidential to ICO Global Communications                        3

                                                             Created on 25/02/98
                                                                 Revised 25/3/98

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1.                GENERAL

This Annex describes the Deliverables that the Contractor will deliver to ICO.
The structure of this Annex is as follows:

1.1      Section 2 describes the deliverable documentation

1.2      Section 3 describes the deliverable major sub systems of the IGF

1.3      Section 4 describes the options that ICO may exercise after execution
         of this Agreement

1.4      Section 5 describes the optional support and warranty services

1.5      Section 6 describes the performance and capacity requirements of the
         Deliverables

1.6      Section 7 describes the deliverable Functions and Features

1.7      Section 8 describes the detailed equipment list

1.8      Section 9 describes the Services that shall be delivered

1.9      Section 10 describes information to be provided by the Contractor
         regarding the Site installation conditions

1.10     Section 11 describes the IGF configuration data to be provided by the
         Contractor.

2.       DELIVERABLE DOCUMENTATION

    The Contractor will deliver all documentation set out in Annex 6.

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3.       MAJOR SUBSYSTEMS OF THE IGF

    The Contractor's deliverables shall together provide the functionality
    required by the IGFR and shall include but not be limited to the following
    major subsystems:

3.1      Twelve (12) SANs each comprising:

         i.       An RFT (Radio Frequency Terminal) sub-system of 5 RFTs (a
                  total of 60 RFTs).

                  -        including early delivery of 2 RFTs at 6 SAN Sites (a
                           total of 12 RFTs) for the purposes of TT&C

         ii.      SBS sub-system including its associated:

-                 DC UPS

                  -        Local SRMS

                  -        clock, reception and distribution sub-system

                  -        IF Distribution subsystem

         iii.     TNM sub-system

         iv.      MSSC/VLR sub-system and its associated DC UPS

         v.       HPN sub-system

         vi.      SAN Management System:

                  -        TMOS WS

                  -        SAN OSS including SRMC functions

         vii.     (Not used)

         viii.    Intra SAN sub system connection cabling and Intermediate
                  Distribution Frame

         ix.      Interconnection cabling to the ICO provided DDF for
                  telecommunications networks as defined in the IGFR.

         x.       Legal Interception Activation sub-system (LIAS)

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3.2      Two AuC / EIRs and their associated DC UPS

3.3      Two HLRs and their associated DC UPS

3.4      Three integrated messaging sub-systems and their associated DC UPS

3.5      Three IWFs supporting IS.41-to-ICO and ICO -to- IS.41 interworking and
         their associated DC UPS

3.6      One DCN sub-system

3.7      One Network Management Centre comprising:

         i.       Link-OS (integrating all SAN-OSS)

         ii.      Node-OS / TMOS (management of switching and mobility
                  management elements in the IGF)

         iii.     SRMC sub-system

3.8      One Back-up Network Management Centre comprising:

         i.       Link-OS (integrating all SAN-OSS)

         ii.      Node-OS / TMOS (management of switching and mobility
                  management elements in the IGF)

         iii.     SRMC sub-system

3.9      SBS Test Fixtures/Test Equipment (to be installed at HNS India until
         ICO decides to move the equipment elsewhere)

3.10     System Integration support facility (to be installed at NEC/A and HNS
         USA. The remaining SBS equipment will stay at the NEC/A and HNS until
         ICO decides to move the equipment elsewhere.)

3.11     Set of Spares as specified in Table 2, Section 8 of this Annex.

3.12     Special purpose test equipment as defined in Annex 2 and Annex 9 of the
         SOW

3.13     Legal Interception Management Sub-system

3.14     Dust protection for the RFT Shelters at the UAE SAN site.

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4.       OPTIONS

4.1      The following item is deliverable at ICO's option provided that the
         option is exercised within 180 days of the date of this Supply
         Agreement

         i)       Four alternative options for the provision of spares for the
                  DCN on a centralised or decentralised basis.

5.       OPTIONAL SUPPORT SERVICES AND EXTENDED WARRANTY

5.1      ADDITIONAL SUPPORT SERVICES DURING THE WARRANTY PERIOD

5.1.1    Upon election by ICO not later than 6 months before the scheduled
         commencement of the warranty period specified in Clause 40 of the
         Agreement, the Contractor will provide SBS Deluxe Support Services as
         described in Section 5.3.

5.1.2    Upon election by ICO not later than 6 months before the scheduled
         commencement of the warranty prior specified in clause 40 of the
         Agreement, the Contractor will provide MSSC Deluxe Support as described
         in Section 5.4.

5.1.3    Upon election by ICO not later than 6 months before the scheduled
         commencement of the warranty prior specified in clause 40 of the
         Agreement, the Contractor will provide HPN Deluxe Support as described
         in Section 5.6.

5.2      ADDITIONAL SUPPORT SERVICES DURING THE POST WARRANTY PERIOD.

5.2.1    EXTENDED BASIC WARRANTY

5.2.1.1  After completion of the Warranty Period specified in clause 40 of the
         Agreement, the warranty condition of clause 40 of the Agreement may be
         extended on an annual basis, for any or all of the RFT, SBS, MSSC,
         LIAS, LIMS, IWF, Messaging, HLR, AuC/EIR, HPN, TNM ( excluding the DCN)
         or NMC/SAN OSS sub-systems.

5.2.1.2  ICO may elect to receive extended basic warranty services upon written
         notice to the Contractor -- not later than 3 months prior to the
         completion of the warranty period specified in clause 40 of the
         Agreement, or in any subsequent period of extended basic warranty
         services.

5.2.1.3  The ICO election(s) to receive basic warranty services shall be
         continuous, without break in the periods of election.

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5.2.2    EXTENDED SBS DELUXE SUPPORT SERVICES

5.2.2.1  Provided ICO has elected to receive SBS Deluxe Support Service in
         accordance with Paragraph 5.1.1. above, ICO may elect to continue to
         receive SBS Deluxe Services upon written notice to the Contractor or
         the provider of the Deluxe Support Services, gives not later than 3
         months prior to the completion of the initial service period, or any
         subsequent renewals thereof. Such SBS Deluxe Support Service shall be
         provided in 2 year periods of service. The ICO election(s) to receive
         SBS Deluxe Support Services shall be continuous without interruptions
         in the periods of election.

5.2.2.2  The SBS Deluxe Support Services to be provided are as described in
         Section 5.3.

5.2.3    EXTENDED MSSC DELUXE SUPPORT SERVICES

5.2.3.1  Provided that ICO has elected to receive MSSC Deluxe Support Services
         in accordance with Paragraph 5.1.2. above, ICO may elect to continue to
         receive MSSC Deluxe Support Services upon written notice to the
         Contractor, or the provider of the MSSC Deluxe Support Services, not
         later than 3 months prior to the completion of the initial or any
         subsequent renewal(s) of the MSSC Deluxe Support Services. The MSSC
         Deluxe Support Services shall be provided in periods of 1 year.

5.2.3.2  The ICO election(s) to receive MSSC Deluxe Support Services shall be
         continuous, without interruptions in the periods of election.

5.2.3.3  The MSSC Deluxe Support Services to be provided are as described in
         Section 5.5.

5.2.4    EXTENDED HPN DELUXE SUPPORT SERVICES

5.2.4.1  Provided that ICO has elected to receive HPN Deluxe Support Services in
         accordance with Paragraph 5.1.3. above, ICO may elect to continue to
         receive HPN Deluxe Support Services upon written notice to the
         Contractor, or the provider of the HPN Deluxe Support Services, not
         later than 3 months prior to the completion of the initial or any
         subsequent renewal(s) of the HPN Deluxe Support Services. The HPN
         Deluxe Support Services shall be provided in periods of 1 year.

5.2.4.2  The ICO election(s) to receive HPN Deluxe Support Services shall be
         continuous, without interruptions in the periods of election.

5.2.4.3  The HPN Deluxe Support Services to be provided are as described in
         Section 5.6.

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5.3      SBS DELUXE SUPPORT SERVICES

5.3.1.1  The DELUXE Support for SBS provides a full period Customer Assistance
         Centre (CAC) on 24 hours per day, 7 days a week for all SAN locations.
         Additionally, manufacturer will maintain a team of experts dedicated to
         ICO for trouble shooting and support services of all SBS manufacturer
         supplied equipment. Under the DELUXE support maintenance agreement, SBS
         manufacturer technical staff at the manufacturer's engineering centre,
         dispatched to ICO locations as required or temporarily placed at
         selected locations will maintain capability of the SBS manufacturer
         supplied equipment, including:

         i.       fault isolation and service restoration, in co-operation with
                  the ICO technical staff.

         ii.      problem investigation and problem resolution in co-operation
                  with the SBS manufacturer support team at the manufacturer's
                  engineering centre

         iii.     creation and reporting on trouble ticket system for SBS
                  equipment

         iv.      system engineering for planning system extensions, and traffic
                  sizing.

5.3.1.2  If ICO elects to exercise this option, the parties will agree a
         definitive scope of work consistent with the basis set out above which
         may include resident SBS support staff at ICO selected locations.

5.4      MSSC DELUXE SUPPORT SERVICES

5.4.1    INTRODUCTION

5.4.1.1  The contractor shall provide MSSC Deluxe Support Services which
         comprises Systems Services the content of which includes:

         i.       System Maintenance

         ii.      Spares Replenishment.

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5.4.2    SYSTEM MAINTENANCE

5.4.2.1  System Maintenance comprises the following services.

5.4.2.2  Emergency Services

         The Contractor shall at any time in an Emergency situation, when
         requested by ICO, provide ICO with the Emergency Services consisting of
         telephone support and on-site support.

5.4.2.3  Trouble Report Handling Services / Trouble Report Guideline

         The Contractor shall provide ICO with Trouble Report Handling Services
         relating to MSSC.

5.4.2.4  Software Update Service

         Any part of the Software found to cause a measurable deviation from the
         Software functionality, and which is not of an Emergency character
         shall be corrected by supplying Software Updates to ICO in accordance
         with the schedule supplied by the Contractor in its Trouble Report
         Answer.

         New or updated documentation on Software Updates will be furnished to
         ICO free of charge.

5.4.2.5  Implement and/or install, free of charge, the corrected Software,
         supplied in accordance with the Software Update Services, on one SAN
         Site. ICO shall perform and be responsible for the implementation
         and/or installation on the rest of the SAN or NMC Sites.

5.4.2.6  Consultation services

         During Normal Working Hours perform Consultation Services, mainly
         consisting of answers and recommendations due to general System
         operation and maintenance routine inquiries identified by ICO's support
         personnel.

5.4.3    SPARES REPLENISHMENT

5.4.3.1  Replenishment of Spares acquired with the initial or subsequent MSSC
         equipment procurement.

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5.4.4    EXCLUDED HARDWARE AND SOFTWARE

5.4.4.1  The System Services do not cover Hardware or Software which is damaged
         due to ICO's or any third parties misuse or mishandling, packing,
         repairs or attempted modifications.

5.4.4.2  The System Services shall not apply to any failure caused by
         modification of the Hardware or Software without the Contractor's
         written approval and failures caused by interworking equipment not
         supplied under the Agreement.

5.4.4.3  Consumable parts such as lamps, fuses, batteries, are excluded from the
         System Services.

5.4.5    SCOPE OF THE MSSC SUPPORT SERVICES

5.4.5.1  The MSSC Support Services cover the following:

         i.       12 MSSC

         ii.      2 HLRs

         iii.     2 AuC/EIRs

         iv.      2 OSS

         v.       3 combined messaging and SMSC platforms.

         vi.      3 IWFs supporting ICO-to-IS.41 and IS.41-to-ICO interworking

         vii.     12 Legal Interception Activation Sub-System (LIAS) and 1 Legal
                  Interception Management Sub-system (LIMS).

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5.5      MSSC DELUXE SUPPORT SERVICES II

5.5.1.1  The services described in Section 5.4 shall be included in MSSC DELUXE
         SUPPORT SERVICES II, in addition to the Repair and Replacement Service
         described in Paragraph 5.5.1.2.

5.5.1.2  Repair and Replacement Services

         Repair or replace any Hardware found by ICO to be faulty by reason of
         defective material, design or workmanship which results in the Hardware
         not conforming to and functioning and operating in accordance with the
         criteria and specification set forth in the Agreement.

         New or update Documentation or Hardware due to repair or modifications
         will be furnished to ICO free of additional charge.

5.6      HPN DELUXE SUPPORT SERVICES

5.6.1.1  HPN Deluxe Support Service provides one year depot maintenance for the
         HPN hardware and software. Depot maintenance support does not include
         travel which if required will be charged in addition.

5.6.1.2  The HPN Support Service cover the following:

         i.       12 HPN

         ii.      12 HPN PCS

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6.       PERFORMANCE AND CAPACITY REQUIREMENTS OF DELIVERABLE EQUIPMENT

         The equipment delivered by the Contractor, including its major
         subsystems and including all other associated equipment and facilities
         including software necessary for its correct operation, shall when
         integrated to form the IGF, satisfy the IGFR and shall satisfy the
         system capacity requirements set forth in Table 1 of this Section of
         this Annex.

Proprietary & Confidential to ICO Global Communications                       13

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                                     ANNEX 1

                 TABLE 1 - PERFORMANCE AND CAPACITY REQUIREMENTS

Proprietary & Confidential to ICO Global Communications                       14

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Version 3.0
                           EQUIPMENT ORDER INDICATION

                                                                        Page 1/5

Note: Red cells contain data directly entered into this sheet
      Black cells contain data derived in this sheet
      IMPORTANT:  BOLD RED CELLS SHOW INPUTS/ASSUMPTIONS THAT HAVE CHANGED FROM
      VERSION 2.0 TO VERSION 3.0. OTHER CELLS WILL HAVE CHANGED AS A
      CONSEQUENCE!

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

SAN                   Dimensioning Driver                                      Units           Australia   Brazil      Chile
                                                                                               SAN 1       SAN 2       SAN 3
<S>                                                                            <C>             <C>         <C>         <C>
                 RFT Sub-system
                      C-Band EIRP towards satellite per RFT                                    -           -           -
                      IF ports                                                                 -           -           -
                      Number of RFTs                                                                   5           5          5
                      RFT Shelters                                                                     5           5          5
                      Deicing Facility                                                         -           -           -
                      Blower and heater for Center hub                                         -           -           Yes
                      Additional  vent'l for Shelter                                           -           -           -
                      Additional HPA Blower                                                    -           -           -
                      HPA Cooling cabinet shelter                                              -           -           -
                      Optical fiber facility                                                   Yes         -           Yes
                      TTC Site (including monopulse tracking)                                  Yes         -           Yes
                      IOT Support Facility (axial ratio improvement)                           -           -           -
                      Installation Materials                                                   Yes         Yes         Yes
                      Remote maintenance system from Japan/SAN                 [TBD]
                      Portable O&M Terminal / RFT
                      Band Pass Filter at LNA input / SAN                                      Yes         Yes         Yes
                 SBS Sub-system
                      Traffic on the A interface (to TNM)                      E                     320         679        473
                      Traffic on the Air interface                             E                     456         969        675
                      Busy Hour Call Attempts                                  BHCA               12,800      27,176     18,931
                      Busy Hour Location Updates                                                   3,115       6,613      4,606
                      SBS DC UPS                                                               Yes         Yes         Yes
                      Reference Clock & System Timing reception and
                      distribution subsystem (GPS including antenna
                      system)                                                                  Yes         Yes         Yes
                      IF distribution sub-system                                               Yes         Yes         Yes
                 TNM Sub-system
                      Traffic on the A interface (to SBS)                      E                     320         679        473
                      Traffic on the A interface (to MSSC, PCM coded)          E                     320         679        473
                      Traffic on the A interface (to MSSC, compressed),
                      each Erlang represents a 64k circuit                     E                      16          34         24
                      Semi-permanent traffic (Note 1)                          calls           -           -           -
                      Busy Hour Call Attempts  (Note 2)                        BHCA               14,080      29,894     20,824
                 MSSC/VLR Sub-system
                      Traffic on the A interface (to TNM, PCM coded)           E                     320         679        473
                      + traffic on the A interface (to TNM compressed)
                      expressed as ISUP (64k) demand and allowing for an
                      efficiency factor; see assumptions                       E                      16          34         24
                      Traffic on the interfaces to POI (including echo
                      cancellation as required)                                E                   1,036         546        361
                      Number of echo cancellers provided as % of POI trunks                          50%         50%        50%
                      POI TRAFFIC REQUIRING ECHO CANCELLATION                  E                     518         273        181
                      % OF POI TRUNKS THAT ARE T1                                                     0%          0%         0%
                      Traffic on the interfaces to other SANs - route A        E                   398.6       275.7      430.9
                      Traffic on the interfaces to other SANs - route B        E                   532.5       460.9      460.9
                      Traffic on the interfaces to other SANs - route C        E               -           -           -
                      Traffic on the interfaces to other SANs - route D        E               -           -           -
                      Traffic on the interface MSSC/Data Interwkg Unit         E                      32          68         47
                      Voice traffic on the interface to the Local Messaging
                      System                                                   E               -           -           -
                      Fax traffic on the interface to the Local Messaging
                      System                                                   E               -           -           -
                      Traffic on the interface to Recorded Voice
                      Announcements.                                           E                       8          17         12
                      LI TRAFFIC (MSSC}LIAS)                                   E                      10          20         14
                      LI TRAFFIC (LIAS}MSSC)                                   E                      10          21         15
</TABLE>

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

SAN                   Dimensioning Driver                                      China       Germany        India       Indonesia
                                                                               SAN 4       SAN 5          SAN 6       SAN 7
<S>                                                                            <C>         <C>            <C>         <C>
                 RFT Sub-system
                      C-Band EIRP towards satellite per RFT                    -           -              -           -
                      IF ports                                                 -           -              -           -
                      Number of RFTs                                                   5              5           5             5
                      RFT Shelters                                                     5              5           5             5
                      Deicing Facility                                         -           Yes            -           -
                      Blower and heater for Center hub                         Yes         Yes            -           -
                      Additional  vent'l for Shelter                           -           Yes            -           -
                      Additional HPA Blower                                    -           -              -           -
                      HPA Cooling cabinet shelter                              -           -              -           -
                      Optical fiber facility                                   -           -              -           -
                      TTC Site (including monopulse tracking)                              Yes            Yes         -
                      IOT Support Facility (axial ratio improvement)           -           -              [Yes]       -
                      Installation Materials                                   Yes         Yes            Yes         Yes
                      Remote maintenance system from Japan/SAN
                      Portable O&M Terminal / RFT
                      Band Pass Filter at LNA input / SAN                      Yes         Yes            Yes         Yes
                 SBS Sub-system
                      Traffic on the A interface (to TNM)                            451            759         716           619
                      Traffic on the Air interface                                   644          1,082       1,021           883
                      Busy Hour Call Attempts                                     18,057         30,360      28,644        24,778
                      Busy Hour Location Updates                                   4,394          7,388       6,970         6,029
                      SBS DC UPS                                               Yes         Yes            Yes         Yes
                      Reference Clock & System Timing reception and
                      distribution subsystem (GPS including antenna
                      system)                                                  Yes         Yes            Yes         Yes
                      IF distribution sub-system                               Yes         Yes            Yes         Yes
                 TNM Sub-system
                      Traffic on the A interface (to SBS)                            451            759         716           619
                      Traffic on the A interface (to MSSC, PCM coded)                451            759         716           619
                      Traffic on the A interface (to MSSC, compressed),
                      each Erlang represents a 64k circuit                            23             38          36            31
                      Semi-permanent traffic (Note 1)                          -           -              -           -
                      Busy Hour Call Attempts  (Note 2)                           19,863         33,396      31,508        27,256
                 MSSC/VLR Sub-system
                      Traffic on the A interface (to TNM, PCM coded)                 451            759         716           619
                      + traffic on the A interface (to TNM compressed)
                      expressed as ISUP (64k) demand and allowing for an
                      efficiency factor; see assumptions                              23             38          36            31
                      Traffic on the interfaces to POI (including echo
                      cancellation as required)                                      297          2,131         308           180
                      Number of echo cancellers provided as % of POI trunks          50%            50%         50%           50%
                      POI TRAFFIC REQUIRING ECHO CANCELLATION                        149          1,065         154            90
                      % OF POI TRUNKS THAT ARE T1                                     0%             0%          0%            0%
                      Traffic on the interfaces to other SANs - route A            384.7          762.1       251.7         532.5
                      Traffic on the interfaces to other SANs - route B            251.7          347.2       403.1         403.1
                      Traffic on the interfaces to other SANs - route C        -                  275.7       146.5   -
                      Traffic on the interfaces to other SANs - route D        -                  332.2       635.6   -
                      Traffic on the interface MSSC/Data Interwkg Unit                45             76          72            62
                      Voice traffic on the interface to the Local Messaging    -
                      System                                                                      256.1   -                 154.3
                      Fax traffic on the interface to the Local Messaging      -
                      System                                                                       28.5   -                  17.1
                      Traffic on the interface to Recorded Voice                      11             19          18            15
                      Announcements.
                      LI TRAFFIC (MSSC}LIAS)                                          14             23          21            19
                      LI TRAFFIC (LIAS}MSSC)                                          14             24          23            20
</TABLE>

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

SAN                   Dimensioning Driver                                      Mexico        South Africa   South Korea   UAE
                                                                               SAN 8         SAN 9          SAN 10        SAN 11
<S>                                                                            <C>           <C>            <C>           <C>
                 RFT Sub-system
                      C-Band EIRP towards satellite per RFT                    -             -              -             -
                      IF ports                                                 -             -              -             -
                      Number of RFTs                                                     5              5             5           5
                      RFT Shelters                                                       5              5             5           5
                      Deicing Facility                                         -             -              -             -
                      Blower and heater for Center hub                         -             Yes            Yes           -
                      Additional  vent'l for Shelter                           -             -              Yes           -
                      Additional HPA Blower                                    Yes           -              -             -
                      HPA Cooling cabinet shelter                              Yes           -              -             -
                      Optical fiber facility                                   -             -              -             -
                      TTC Site (including monopulse tracking)                  -             Yes            -             -
                      IOT Support Facility (axial ratio improvement)           -             -              -             -
                      Installation Materials                                   Yes           Yes            Yes           Yes
                      Remote maintenance system from Japan/SAN
                      Portable O&M Terminal / RFT
                      Band Pass Filter at LNA input / SAN                      Yes           Yes            Yes           Yes
                 SBS Sub-system
                      Traffic on the A interface (to TNM)                              560            619           438         723
                      Traffic on the Air interface                                     798            883           624       1,030
                      Busy Hour Call Attempts                                       22,400         24,764        17,505      28,908
                      Busy Hour Location Updates                                     5,451          6,026         4,260       7,034
                      SBS DC UPS                                               Yes           Yes            Yes           Yes
                      Reference Clock & System Timing reception and
                      distribution subsystem (GPS including antenna
                      system)                                                  Yes           Yes            Yes           Yes
                      IF distribution sub-system                               Yes           Yes            Yes           Yes
                 TNM Sub-system
                      Traffic on the A interface (to SBS)                              560            619           438         723
                      Traffic on the A interface (to MSSC, PCM coded)                  560            619           438         723
                      Traffic on the A interface (to MSSC, compressed),
                      each Erlang represents a 64k circuit                              28             31            22          36
                      Semi-permanent traffic (Note 1)                          -             -              -             -
                      Busy Hour Call Attempts  (Note 2)                             24,640         27,240        19,256      31,799
                 MSSC/VLR Sub-system
                      Traffic on the A interface (to TNM, PCM coded)                   560            619           438         723
                      + traffic on the A interface (to TNM compressed)
                      expressed as ISUP (64k) demand and allowing for an
                      efficiency factor; see assumptions                                28             31            22          36
                      Traffic on the interfaces to POI (including echo
                      cancellation as required)                                        146            412            65         324
                      Number of echo cancellers provided as % of POI trunks            50%            50%           50%         50%
                      POI TRAFFIC REQUIRING ECHO CANCELLATION                           73            206            32         162
                      % OF POI TRUNKS THAT ARE T1                                       0%             0%            0%          0%
                      Traffic on the interfaces to other SANs - route A              516.3          146.5         398.6       635.6
                      Traffic on the interfaces to other SANs - route B              430.9          347.2         384.7       762.1
                      Traffic on the interfaces to other SANs - route C        -             -                    382.0   -
                      Traffic on the interfaces to other SANs - route D        -             -              -             -
                      Traffic on the interface MSSC/Data Interwkg Unit                  56             62            44          72
                      Voice traffic on the interface to the Local Messaging
                      System                                                         175.9   -              -             -
                      Fax traffic on the interface to the Local Messaging
                      System                                                          19.5   -              -             -
                      Traffic on the interface to Recorded Voice
                      Announcements.                                                    14             15            11          18
                      LI TRAFFIC (MSSC}LIAS)                                            17             19            13          22
                      LI TRAFFIC (LIAS}MSSC)                                            18             20            14          23
</TABLE>

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------
                                                                                             Japan          UK
SAN                   Dimensioning Driver                                      USA           (NMC)          (BNMC)           Totals
                                                                               SAN 12
<S>                                                                            <C>           <C>            <C>              <C>
                 RFT Sub-system
                      C-Band EIRP towards satellite per RFT                    -             -              -
                      IF ports                                                 -             -              -
                      Number of RFTs                                                     5   -              -
                      RFT Shelters                                                       5   -              -
                      Deicing Facility                                         Yes           -              -
                      Blower and heater for Center hub                         Yes           -              -
                      Additional  vent'l for Shelter                           Yes           -              -
                      Additional HPA Blower                                    -             -              -
                      HPA Cooling cabinet shelter                              -             -              -
                      Optical fiber facility                                   -             -              -
                      TTC Site (including monopulse tracking)                  Yes           -              -
                      IOT Support Facility (axial ratio improvement)           -             -              -
                      Installation Materials                                   Yes           -              -
                      Remote maintenance system from Japan/SAN
                      Portable O&M Terminal / RFT
                      Band Pass Filter at LNA input / SAN                      Yes           -              -
                 SBS Sub-system
                      Traffic on the A interface (to TNM)                              320   -              -                  6,678
                      Traffic on the Air interface                                     456   -              -                  9,522
                      Busy Hour Call Attempts                                       12,800   -              -                267,123
                      Busy Hour Location Updates                                     3,115   -              -                 65,000
                      SBS DC UPS                                               Yes           -              -
                      Reference Clock & System Timing reception and
                      distribution subsystem (GPS including antenna
                      system)                                                  Yes           -              -
                      IF distribution sub-system                               Yes           -              -
                 TNM Sub-system
                      Traffic on the A interface (to SBS)                              320   -              -
                      Traffic on the A interface (to MSSC, PCM coded)                  320   -              -
                      Traffic on the A interface (to MSSC, compressed),
                      each Erlang represents a 64k circuit                              16   -              -
                      Semi-permanent traffic (Note 1)                          -             -              -
                      Busy Hour Call Attempts  (Note 2)                             14,080   -              -                293,835
                 MSSC/VLR Sub-system
                      Traffic on the A interface (to TNM, PCM coded)                   320   -              -                  6,678
                      + traffic on the A interface (to TNM compressed)
                      expressed as ISUP (64k) demand and allowing for an
                      efficiency factor; see assumptions                                16   -              -                    334
                      Traffic on the interfaces to POI (including echo
                      cancellation as required)                                      1,018   -              -                  6,824
                      Number of echo cancellers provided as % of POI trunks            50%   -              -
                      POI TRAFFIC REQUIRING ECHO CANCELLATION                          509   -              -                  3,412
                      % OF POI TRUNKS THAT ARE T1                                     100%   -              -
                      Traffic on the interfaces to other SANs - route A              382.0   -              -                  5,115
                      Traffic on the interfaces to other SANs - route B              332.2                                     5,117
                      Traffic on the interfaces to other SANs - route C              516.3                                     1,321
                      Traffic on the interfaces to other SANs - route D        -                                                 968
                      Traffic on the interface MSSC/Data Interwkg Unit                  32   -              -                    668
                      Voice traffic on the interface to the Local Messaging
                      System                                                   -             -              -                    586
                      Fax traffic on the interface to the Local Messaging
                      System                                                   -             -              -                     65
                      Traffic on the interface to Recorded Voice
                      Announcements.                                                     8   -              -                    167
                      LI TRAFFIC (MSSC}LIAS)                                            10   -              -                    200
                      LI TRAFFIC (LIAS}MSSC)                                            10                                       210
</TABLE>

            PROPRIETARY & CONFIDENTIAL TO ICO GLOBAL COMMUNICATIONS
<PAGE>   1256

Version 3.0                  EQUIPMENT ORDER INDICATION                Page 2/5

<TABLE>
<S>               <C>                                                             <C>             <C>       <C>      <C>     <C>
                       TOTAL SWITCH ERLANG LOAD (Note 6)                          E                           1,161            1,019
                       Busy Hour Registered Subscribers                           subs                       12,459           26,451
                       Busy Hour Location Updates                                 BHLU                        3,115            6,613
                       No. of PABX/PRA connections                                                                0                0
                       GoS - POI (PSTN)                                                                        0.3%             0.3%
                       GoS - SAN-SAN                                                                           0.3%             0.3%
                       GoS - A interface                                                                       0.3%             0.3%
                       GoS - LIAS                                                                              0.1%             0.1%
                       GoS - MSSC-VMS                                                                          0.1%             0.1%
                       # ISC Interconnects                                                                        1                1
                       # National Interconnects                                                                   0                0
                       SMS MO BH Messages                                                                        12               25
                       SMS MT BH Messages                                                                       478            1,014
                  HPN SUB-SYSTEM
                       Peak arrival rate of HPN escalations per second from
                       the MSSC due to failed MT-SMS                              msgs per sec                    3                3
                       Peak arrival rate of HPN escalations per second from
                       the MSSC due to failed MT call attempts                    msgs per sec                    6                6
                       Peak processing load HPN messages per second
                       (representing a combination of satellite transmissions
                       and inter-SAN routing of HPN message)                      msgs per sec                   30               30
                  PCS SUB-SYSTEM                                                                  Yes                 Yes
                  SAN MANAGEMENT SUB-SYSTEM
                       See Equipment List
                  DCN SUBSYSTEM
                       Number of 64k ports                                        See DCN
                                                                                  Design
                                                                                  Documentation
                       TTC Interface                                                              Yes
                  ON-SITE INTERCONNECTION SUBSYSTEM
                       Cabling infrastructure                                                     Yes                 Yes
                       Digital Distribution Frame                                                 Yes                 Yes
                  INTERCONNECTION FACILITIES
                       Interconnection to ICO provided DDF                                        Yes                 Yes
----------------------------------------------------------------------------------------------------------------------------------
AuC/EIR                Dimensioning Driver                                        Units           Australia           Brazil

                       Number of subscribers/equipment stored.                    subs            -                   -
                       Busy Hour Authentication Vector Requests                   BH Auth         -                   -
                       Number of IMEIs stored.                                    IMEIs           -                   -
                       Busy Hour IMEI checking attempts.                          IMEI checks/hr  -                   -

----------------------------------------------------------------------------------------------------------------------------------
HLR                    Dimensioning Driver                                        Units           Australia           Brazil

                       Number of ICO subscribers.                                                 -                   -
                       Busy Hour Service Provisioning attempts                                    -                   -
                       Busy Hour Network and VLR registrations                    regs/hr         -                   -
                       Busy Hour Call Attempts (MT for ICO subscribers)           BHCA            -                   -
                       STP Traffic                                                                -                   -
                       Minimum no. of 64k connections to MSSC (Note 3)
                       Minimum no. of V.36 connections to AuC/EIR (Note 3)

----------------------------------------------------------------------------------------------------------------------------------
MESSAGING
SYSTEM                 Dimensioning Driver                                        Units           Australia           Brazil

                       Number of subscribers.                                     subs            -                   -
                       Voice Traffic on the interface to colocated MSSC           E               -                   -
                       Fax Traffic on the interface to colocated MSSC             E               -                   -
                       Hours of storage (voice & facsimile).                      hours           -                   -
                       GoS                                                        %               -                   -
</TABLE>

<TABLE>
<S>               <C>                                                             <C>     <C>     <C>     <C>     <C>        <C>
                       TOTAL SWITCH ERLANG LOAD (Note 6)                                      890             718              2,488
                       Busy Hour Registered Subscribers                                    18,426          17,575             29,550
                       Busy Hour Location Updates                                           4,606           4,394              7,388
                       No. of PABX/PRA connections                                              0               0                  0
                       GoS - POI (PSTN)                                                      0.3%            0.3%               0.3%
                       GoS - SAN-SAN                                                         0.3%            0.3%               0.3%
                       GoS - A interface                                                     0.3%            0.3%               0.3%
                       GoS - LIAS                                                            0.1%            0.1%               0.1%
                       GoS - MSSC-VMS                                                        0.1%            0.1%               0.1%
                       # ISC Interconnects                                                      1               1                  1
                       # National Interconnects                                                 0               0                  0
                       SMS MO BH Messages                                                      18              17                 28
                       SMS MT BH Messages                                                     707             674              1,133
                  HPN SUB-SYSTEM
                       Peak arrival rate of HPN escalations per second from
                       the MSSC due to failed MT-SMS                                            3               3                  3
                       Peak arrival rate of HPN escalations per second from
                       the MSSC due to failed MT call attempts                                  6               6                 6
                       Peak processing load HPN messages per second
                       (representing a combination of satellite transmissions
                       and inter-SAN routing of HPN message)                                   30              30                 30
                  PCS SUB-SYSTEM                                                  Yes             Yes             Yes
                  SAN MANAGEMENT SUB-SYSTEM
                       See Equipment List
                  DCN SUBSYSTEM
                       Number of 64k ports

                       TTC Interface                                              Yes                             Yes
                  ON-SITE INTERCONNECTION SUBSYSTEM
                       Cabling infrastructure                                     Yes             Yes             Yes
                       Digital Distribution Frame                                 Yes             Yes             Yes
                  INTERCONNECTION FACILITIES
                       Interconnection to ICO provided DDF                        Yes             Yes             Yes
----------------------------------------------------------------------------------------------------------------------------------
AuC/EIR                Dimensioning Driver                                        Chile           China           Germany

                       Number of subscribers/equipment stored.                    -               -                          250,000
                       Busy Hour Authentication Vector Requests                   -               -                           21,184
                       Number of IMEIs stored.                                    -               -                          250,000
                       Busy Hour IMEI checking attempts.                          -               -                           11,440

----------------------------------------------------------------------------------------------------------------------------------
HLR                    Dimensioning Driver                                        Chile           China           Germany

                       Number of ICO subscribers.                                 -               -                          250,000
                       Busy Hour Service Provisioning attempts                    -               -               NEC
                                                                                                                  to state
                       Busy Hour Network and VLR registrations                    -               -                           17,160
                       Busy Hour Call Attempts (MT for ICO subscribers)           -               -                           47,072
                       STP Traffic                                                -               -               No
                       Minimum no. of 64k connections to MSSC (Note 3)                                                             2
                       Minimum no. of V.36 connections to AuC/EIR (Note 3)                                                         2

----------------------------------------------------------------------------------------------------------------------------------
MESSAGING
SYSTEM                 Dimensioning Driver                                        Chile           China           Germany

                                                                                                                  Voicemail 1
                       Number of subscribers.                                     -               -                          209,633
                       Voice Traffic on the interface to colocated MSSC           -               -                              256
                       Fax Traffic on the interface to colocated MSSC             -               -                               28
                       Hours of storage (voice & facsimile).                      -               -                            3,494
                       GoS                                                        -               -                              0.1
</TABLE>

<TABLE>
<S>                                                                <C>       <C>      <C>        <C>        <C>         <C>
          TOTAL SWITCH ERLANG LOAD (Note 6)                                    1,270                   988                   956
          Busy Hour Registered Subscribers                                    27,880                24,118                21,803
          Busy Hour Location Updates                                           6,970                 6,029                 5,451
          No. of PABX/PRA connections                                              0                     0                     0
          GoS - POI (PSTN)                                                      0.3%                  0.3%                  0.3%
          GoS - SAN-SAN                                                         0.3%                  0.3%                  0.3%
          GoS - A interface                                                     0.3%                  0.3%                  0.3%
          GoS - LIAS                                                            0.1%                  0.1%                  0.1%
          GoS - MSSC-VMS                                                        0.1%                  0.1%                  0.1%
          # ISC Interconnects                                                      1                     1                     1
          # National Interconnects                                                 0                     0                     0
          SMS MO BH Messages                                                      27                    23                    21
          SMS MT BH Messages                                                   1,069                   925                   836
     HPN SUB-SYSTEM
          Peak arrival rate of HPN escalations per second from
          the MSSC due to failed MT-SMS                                            3                     3                     3
          Peak arrival rate of HPN escalations per second from
          the MSSC due to failed MT call attempts                                  6                     6                    6
          Peak processing load HPN messages per second
          (representing a combination of satellite transmissions
          and inter-SAN routing of HPN message)                                   30                    30                    30
     PCS SUB-SYSTEM                                                  Yes              Yes                   Yes
     SAN MANAGEMENT SUB-SYSTEM
           See Equipment List
     DCN SUBSYSTEM
           Number of 64k ports

           TTC Interface                                              Yes
     ON-SITE INTERCONNECTION SUBSYSTEM
           Cabling infrastructure                                     Yes             Yes                   Yes
           Digital Distribution Frame                                 Yes             Yes                   Yes
     INTERCONNECTION FACILITIES
           Interconnection to ICO provided DDF                        Yes             Yes                   Yes
----------------------------------------------------------------------------------------------------------------------------------
AuC/EIR    Dimensioning Driver                                        India           Indonesia             Mexico

           Number of subscribers/equipment stored.                    -               -                     -
           Busy Hour Authentication Vector Requests                   -               -                     -
           Number of IMEIs stored.                                    -               -                     -
           Busy Hour IMEI checking attempts.                          -               -                     -

----------------------------------------------------------------------------------------------------------------------------------
HLR        Dimensioning Driver                                        India           Indonesia             Mexico

           Number of ICO subscribers.                                 -               -                     -
           Busy Hour Service Provisioning attempts                    -               -                     -
           Busy Hour Network and VLR registrations                    -               -                     -
           Busy Hour Call Attempts (MT for ICO subscribers)           -               -                     -
           STP Traffic                                                -               -                     -
           Minimum no. of 64k connections to MSSC (Note 3)
           Minimum no. of V.36 connections to AuC/EIR (Note 3)

----------------------------------------------------------------------------------------------------------------------------------
MESSAGING
SYSTEM     Dimensioning Driver                                        India           Indonesia             Mexico

                                                                                      Voicemail 2           Voicemail 3
           Number of subscribers.                                     -                            126,272               144,096
           Voice Traffic on the interface to colocated MSSC           -                                154                   176
           Fax Traffic on the interface to colocated MSSC             -                                 17                    20
           Hours of storage (voice & facsimile).                      -                              2,105                 2,402
           GoS                                                        -                                0.1                   0.1
</TABLE>

<TABLE>
<S>                                                                   <C>          <C>     <C>    <C>      <C>        <C>
              TOTAL SWITCH ERLANG LOAD (Note 6)                                        797             858              1,263
              Busy Hour Registered Subscribers                                      24,104          17,039             28,137
              Busy Hour Location Updates                                             6,026           4,260              7,034
              No. of PABX/PRA connections                                                0               0                  0
              GoS - POI (PSTN)                                                        0.3%            0.3%               0.3%
              GoS - SAN-SAN                                                           0.3%            0.3%               0.3%
              GoS - A interface                                                       0.3%            0.3%               0.3%
              GoS - LIAS                                                              0.1%            0.1%               0.1%
              GoS - MSSC-VMS                                                          0.1%            0.1%               0.1%
              # ISC Interconnects                                                        1               1                  1
              # National Interconnects                                                   0               0                  0
              SMS MO BH Messages                                                        23              16                 27
              SMS MT BH Messages                                                       924             653              1,079
          HPN SUB-SYSTEM
              Peak arrival rate of HPN escalations per second from
              the MSSC due to failed MT-SMS                                              3               3                  3
              Peak arrival rate of HPN escalations per second from
              the MSSC due to failed MT call attempts                                    6               6                 6
              Peak processing load HPN messages per second
              (representing a combination of satellite transmissions
              and inter-SAN routing of HPN message)                                     30              30                 30
           PCS SUB-SYSTEM                                                  Yes             Yes             Yes
           SAN MANAGEMENT SUB-SYSTEM
               See Equipment List
           DCN SUBSYSTEM
               Number of 64k ports

               TTC Interface                                              Yes
           ON-SITE INTERCONNECTION SUBSYSTEM
               Cabling infrastructure                                     Yes             Yes             Yes
               Digital Distribution Frame                                 Yes             Yes             Yes
           INTERCONNECTION FACILITIES
               Interconnection to ICO provided DDF                        Yes             Yes             Yes
----------------------------------------------------------------------------------------------------------------------------------
AuC/EIR        Dimensioning Driver                                        South           South           UAE
                                                                          Africa          Korea
               Number of subscribers/equipment stored.                    -               -               -
               Busy Hour Authentication Vector Requests                   -               -               -
               Number of IMEIs stored.                                    -               -               -
               Busy Hour IMEI checking attempts.                          -               -               -

----------------------------------------------------------------------------------------------------------------------------------
HLR            Dimensioning Driver                                        South           South           UAE
                                                                          Africa          Korea
               Number of ICO subscribers.                                 -               -               -
               Busy Hour Service Provisioning attempts                    -               -               -
               Busy Hour Network and VLR registrations                    -               -               -
               Busy Hour Call Attempts (MT for ICO subscribers)           -               -               -
               STP Traffic                                                -               -               -
               Minimum no. of 64k connections to MSSC (Note 3)
               Minimum no. of V.36 connections to AuC/EIR (Note 3)

----------------------------------------------------------------------------------------------------------------------------------
MESSAGING
SYSTEM         Dimensioning Driver                                        South           South           UAE
                                                                          Africa          Korea
               Number of subscribers.                                     -               -               -
               Voice Traffic on the interface to colocated MSSC           -               -               -
               Fax Traffic on the interface to colocated MSSC             -               -               -
               Hours of storage (voice & facsimile).                      -               -               -
               GoS                                                        -               -               -
</TABLE>

<TABLE>
<S>               <C>                                                             <C>     <C>     <C>    <C>      <C>        <C>
                       TOTAL SWITCH ERLANG LOAD (Note 6)                                    1,302 -               -
                       Busy Hour Registered Subscribers                                    12,459 -               -
                       Busy Hour Location Updates                                           3,115 -               -
                       No. of PABX/PRA connections                                              0
                       GoS - POI (PSTN)                                                      0.3%
                       GoS - SAN-SAN                                                         0.3%
                       GoS - A interface                                                     0.3%
                       GoS - LIAS                                                            0.1%
                       GoS - MSSC-VMS                                                        0.1%
                       # ISC Interconnects                                                      1
                       # National Interconnects                                                 0
                       SMS MO BH Messages                                                      12
                       SMS MT BH Messages                                                     478
                  HPN SUB-SYSTEM
                       Peak arrival rate of HPN escalations per second from
                       the MSSC due to failed MT-SMS                                            3 -               -
                       Peak arrival rate of HPN escalations per second from
                       the MSSC due to failed MT call attempts                                  6 -               -
                       Peak processing load HPN messages per second
                       (representing a combination of satellite transmissions                  30
                       and inter-SAN routing of HPN message)
                  PCS SUB-SYSTEM                                                  Yes
                  SAN MANAGEMENT SUB-SYSTEM
                       See Equipment List
                  DCN SUBSYSTEM
                       Number of 64k ports

                       TTC Interface                                              Yes             -               -
                  ON-SITE INTERCONNECTION SUBSYSTEM
                       Cabling infrastructure                                     Yes             -               -
                       Digital Distribution Frame                                 Yes             -               -
                  INTERCONNECTION FACILITIES
                       Interconnection to ICO provided DDF                        Yes             -               -
---------------------------------------------------------------------------------------------------------------------------
AuC/EIR                Dimensioning Driver                                        USA             Japan           UK
                                                                                                  (NMC)           (BNMC)

                       Number of subscribers/equipment stored.                    -                       250,000 -
                       Busy Hour Authentication Vector Requests                   -                        21,184 -
                       Number of IMEIs stored.                                    -                       250,000 -
                       Busy Hour IMEI checking attempts.                          -                        11,440 -

---------------------------------------------------------------------------------------------------------------------------
HLR                    Dimensioning Driver                                        USA             Japan           UK
                                                                                                  (NMC)           (BNMC)

                       Number of ICO subscribers.                                 -                       250,000 -
                       Busy Hour Service Provisioning attempts                    -               NEC             -
                                                                                                  to
                                                                                                  state
                       Busy Hour Network and VLR registrations                    -                        17,160 -
                       Busy Hour Call Attempts (MT for ICO subscribers)           -                        47,072 -
                       STP Traffic                                                -               No              -
                       Minimum no. of 64k connections to MSSC (Note 3)                                          2
                       Minimum no. of V.36 connections to AuC/EIR (Note 3)                                      2

---------------------------------------------------------------------------------------------------------------------------
MESSAGING
SYSTEM                 Dimensioning Driver                                        USA             Japan           UK
                                                                                                  (NMC)           (BNMC)

                       Number of subscribers.                                     -               -               -
                       Voice Traffic on the interface to colocated MSSC           -               -               -
                       Fax Traffic on the interface to colocated MSSC             -               -               -
                       Hours of storage (voice & facsimile).                      -               -               -
                       GoS                                                        -               -               -
</TABLE>

<TABLE>
<S>              <C>                                                                             <C>
                            TOTAL SWITCH ERLANG LOAD (Note 6)
                            Busy Hour Registered Subscribers                                     260,000
                            Busy Hour Location Updates                                            65,000
                            No. of PABX/PRA connections                                                0
                            GoS - POI (PSTN)
                            GoS - SAN-SAN
                            GoS - A interface
                            GoS - LIAS
                            GoS - MSSC-VMS
                            # ISC Interconnects                                                       12
                            # National Interconnects                                                   0
                            SMS MO BH Messages                                                       249
                            SMS MT BH Messages                                                     9,971
                 HPN SUB-SYSTEM
                            Peak arrival rate of HPN escalations per second from
                            the MSSC due to failed MT-SMS
                            Peak arrival rate of HPN escalations per second from
                            the MSSC due to failed MT call attempts
                            Peak processing load HPN messages per second
                            (representing a combination of satellite transmissions
                            and inter-SAN routing of HPN message)
                 PCS SUB-SYSTEM
                 SAN MANAGEMENT SUB-SYSTEM
                            See Equipment List
                 DCN SUBSYSTEM
                            Number of 64k ports

                            TTC Interface
                 ON-SITE INTERCONNECTION SUBSYSTEM
                            Cabling infrastructure
                            Digital Distribution Frame
                 INTERCONNECTION FACILITIES
                            Interconnection to ICO provided DDF
---------------------------------------------------------------------------------------
AuC/EIR                     Dimensioning Driver

                            Number of subscribers/equipment stored.                              500,000
                            Busy Hour Authentication Vector Requests
                            Number of IMEIs stored.                                              500,000
                            Busy Hour IMEI checking attempts.

---------------------------------------------------------------------------------------
HLR                         Dimensioning Driver

                            Number of ICO subscribers.                                           500,000
                            Busy Hour Service Provisioning attempts
                            Busy Hour Network and VLR registrations
                            Busy Hour Call Attempts (MT for ICO subscribers)
                            STP Traffic
                            Minimum no. of 64k connections to MSSC (Note 3)
                            Minimum no. of V.36 connections to AuC/EIR (Note 3)

---------------------------------------------------------------------------------------
MESSAGING
SYSTEM                      Dimensioning Driver

                            Number of subscribers.                                               480,000
                            Voice Traffic on the interface to colocated MSSC                         586
                            Fax Traffic on the interface to colocated MSSC                            65
                            Hours of storage (voice & facsimile).                                  8,000
                            GoS
</TABLE>

                           PROPRIETARY & CONFIDENTIAL
                          TO ICO GLOBAL COMMUNICATIONS

<PAGE>   1257

Version 3.0             EQUIPMENT ORDER INDICATION                     Page 3/5

<TABLE>
<S>                    <C>                                                        <C>             <C>             <C>
----------------------------------------------------------------------------------------------------------------------------------
SMSC                   Dimensioning Driver                                        Units           Australia       Brazil

                       Messages per busy hour                                     msgs/hr         -               -
                       GoS                                                        %

----------------------------------------------------------------------------------------------------------------------------------
IS.41{ }ICO IWF        Dimensioning Driver                                        Units           Australia       Brazil

                       BIDIRECTIONAL IS.41 {} ICO IWF (Note 9)
                       Number of subscribers capable of roaming                   subs            -                       100,000
                       Busy Hour Network and ICO VLR registrations                BH regs         -                           171
                       MT BH Erlangs for IS.41>ICO subscribers (Note 10)          E                                             8
                       Minimum no. SS7 ports to ICO MSSC (Note 3)                                                               2
                       Minimum no. SS7 ports to IS.41 SS7 Network (Note 3)                                                      2
                       GoS                                                        %                                             1

----------------------------------------------------------------------------------------------------------------------------------
OAM SYSTEM                                                                        Units           Australia       Brazil

                       OAM Interface provided  (Note 4)                                           Yes             Yes
                       TMOS Server  (Note 4)

----------------------------------------------------------------------------------------------------------------------------------
POWER SYSTEM                                                                      Units           Australia       Brazil

                       DC UPS (Note 4)                                                            Yes             Yes
----------------------------------------------------------------------------------------------------------------------------------
SRMC                   Dimensioning Driver                                        Units           Australia       Brazil

                       Number of satellites                                       sats            -               -
                       Number of SANs                                             SANs            -               -
                       Number of spot beams per satellite                         beams           -               -
                       Number of filters per satellite                            filters         -               -
                       Satellite orbit period                                     hours           -               -
                       Planning Ground Cell size                                  degree          -               -
                       Payload command table size                                                 -               -
                       HPN tables                                                                 -               -
                       Number of frequency co-ordination regions                                  -               -
----------------------------------------------------------------------------------------------------------------------------------
                       Dimensioning Driver                                        Units           Australia       Brazil

NMC
                  SOFTWARE FUNCTIONAL BLOCKS
                       See Equipment List                                                         -               -
                  DCN SUBSYSTEM
                       Average peak local network OA&M traffic in kbit/s.         kbits/s         -               -
                       Average peak traffic to NMC                                kbits/s         -               -
----------------------------------------------------------------------------------------------------------------------------------
SBSTEST FACILITY                                                                                  Australia       Brazil

                       Support Facility                                                           -               -
                       (NOTE: To be located at HNS premises)
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<S>                    <C>                                                        <C>             <C>             <C>
----------------------------------------------------------------------------------------------------------------------------------
SMSC                   Dimensioning Driver                                        Chile           China           Germany

                                                                                                                  SMSC 1
                       Messages per busy hour                                     -               -                         4,463
                       GoS                                                                                                      1

----------------------------------------------------------------------------------------------------------------------------------
IS.41{ }ICO IWF        Dimensioning Driver                                        Chile           China           Germany

                       BIDIRECTIONAL IS.41 {} ICO IWF (Note 9)
                       Number of subscribers capable of roaming                   -               -               -
                       Busy Hour Network and ICO VLR registrations                -               -               -
                       MT BH Erlangs for IS.41>ICO subscribers (Note 10)
                       Minimum no. SS7 ports to ICO MSSC (Note 3)
                       Minimum no. SS7 ports to IS.41 SS7 Network (Note 3)
                       GoS

----------------------------------------------------------------------------------------------------------------------------------
OAM SYSTEM                                                                        Chile           China           Germany

                       OAM Interface provided  (Note 4)                           Yes             Yes             Yes
                       TMOS Server  (Note 4)

----------------------------------------------------------------------------------------------------------------------------------
POWER SYSTEM                                                                      Chile           China           Germany

                       DC UPS (Note 4)                                            Yes             Yes             Yes
----------------------------------------------------------------------------------------------------------------------------------
SRMC                   Dimensioning Driver                                        Chile           China           Germany

                       Number of satellites                                       -               -               -
                       Number of SANs                                             -               -               -
                       Number of spot beams per satellite                         -               -               -
                       Number of filters per satellite                            -               -               -
                       Satellite orbit period                                     -               -               -
                       Planning Ground Cell size                                  -               -               -
                       Payload command table size                                 -               -               -
                       HPN tables                                                 -               -               -
                       Number of frequency co-ordination regions                  -               -               -
----------------------------------------------------------------------------------------------------------------------------------
                       Dimensioning Driver                                        Chile           China           Germany

NMC
                  SOFTWARE FUNCTIONAL BLOCKS
                       See Equipment List                                         -               -               -
                  DCN SUBSYSTEM
                       Average peak local network OA&M traffic in kbit/s.         -               -               -
                       Average peak traffic to NMC                                -               -               -
----------------------------------------------------------------------------------------------------------------------------------
SBSTEST FACILITY                                                                  Chile           China           Germany

                       Support Facility                                           -               -               -
                       (NOTE: To be located at HNS premises)
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<S>                    <C>                                                        <C>             <C>             <C>
----------------------------------------------------------------------------------------------------------------------------------
SMSC                   Dimensioning Driver                                        India           Indonesia       Mexico

                                                                                                  SMSC 2          SMSC 3
                       Messages per busy hour                                     -                         2,689           3,068
                       GoS                                                                                      1               1

----------------------------------------------------------------------------------------------------------------------------------
IS.41{ }ICO IWF        Dimensioning Driver                                        India           Indonesia       Mexico

                       BIDIRECTIONAL IS.41 {} ICO IWF (Note 9)
                       Number of subscribers capable of roaming                   -               -               -
                       Busy Hour Network and ICO VLR registrations                -               -               -
                       MT BH Erlangs for IS.41>ICO subscribers (Note 10)
                       Minimum no. SS7 ports to ICO MSSC (Note 3)
                       Minimum no. SS7 ports to IS.41 SS7 Network (Note 3)
                       GoS

----------------------------------------------------------------------------------------------------------------------------------
OAM SYSTEM                                                                        India           Indonesia       Mexico

                       OAM Interface provided  (Note 4)                           Yes             Yes             Yes
                       TMOS Server  (Note 4)

----------------------------------------------------------------------------------------------------------------------------------
POWER SYSTEM                                                                      India           Indonesia       Mexico

                       DC UPS (Note 4)                                            Yes             Yes             Yes
----------------------------------------------------------------------------------------------------------------------------------
SRMC                   Dimensioning Driver                                        India           Indonesia       Mexico

                       Number of satellites                                       -               -               -
                       Number of SANs                                             -               -               -
                       Number of spot beams per satellite                         -               -               -
                       Number of filters per satellite                            -               -               -
                       Satellite orbit period                                     -               -               -
                       Planning Ground Cell size                                  -               -               -
                       Payload command table size                                 -               -               -
                       HPN tables                                                 -               -               -
                       Number of frequency co-ordination regions                  -               -               -
----------------------------------------------------------------------------------------------------------------------------------
                       Dimensioning Driver                                        India           Indonesia       Mexico

NMC
                  SOFTWARE FUNCTIONAL BLOCKS
                       See Equipment List                                         -               -               -
                  DCN SUBSYSTEM
                       Average peak local network OA&M traffic in kbit/s.         -               -               -
                       Average peak traffic to NMC                                -               -               -
----------------------------------------------------------------------------------------------------------------------------------
SBSTEST FACILITY                                                                  India           Indonesia       Mexico

                       Support Facility                                                         1 -               -
                       (NOTE: To be located at HNS premises)
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<S>                    <C>                                                        <C>             <C>             <C>
----------------------------------------------------------------------------------------------------------------------------------
SMSC                   Dimensioning Driver                                        South_Africa    South_Korea     UAE

                       Messages per busy hour                                     -               -               -
                       GoS

----------------------------------------------------------------------------------------------------------------------------------
IS.41{ }ICO IWF        Dimensioning Driver                                        South_Africa    South_Korea     UAE

                       BIDIRECTIONAL IS.41 {} ICO IWF (Note 9)
                       Number of subscribers capable of roaming                   -                       200,000 -
                       Busy Hour Network and ICO VLR registrations                -                           341 -
                       MT BH Erlangs for IS.41>ICO subscribers (Note 10)                                       16
                       Minimum no. SS7 ports to ICO MSSC (Note 3)                                               2
                       Minimum no. SS7 ports to IS.41 SS7 Network (Note 3)                                      2
                       GoS                                                                                      1

----------------------------------------------------------------------------------------------------------------------------------
OAM SYSTEM                                                                        South_Africa    South_Korea     UAE

                       OAM Interface provided  (Note 4)                           Yes             Yes             Yes
                       TMOS Server  (Note 4)

----------------------------------------------------------------------------------------------------------------------------------
POWER SYSTEM                                                                      South_Africa    South_Korea     UAE

                       DC UPS (Note 4)                                            Yes             Yes             Yes
----------------------------------------------------------------------------------------------------------------------------------
SRMC                   Dimensioning Driver                                        South_Africa    South_Korea     UAE

                       Number of satellites                                       -               -               -
                       Number of SANs                                             -               -               -
                       Number of spot beams per satellite                         -               -               -
                       Number of filters per satellite                            -               -               -
                       Satellite orbit period                                     -               -               -
                       Planning Ground Cell size                                  -               -               -
                       Payload command table size                                 -               -               -
                       HPN tables                                                 -               -               -
                       Number of frequency co-ordination regions                  -               -               -
----------------------------------------------------------------------------------------------------------------------------------
                       Dimensioning Driver                                        South_Africa    South_Korea     UAE

NMC
                  SOFTWARE FUNCTIONAL BLOCKS
                       See Equipment List                                         -               -               -
                  DCN SUBSYSTEM
                       Average peak local network OA&M traffic in kbit/s.         -               -
                       Average peak traffic to NMC                                -               -
----------------------------------------------------------------------------------------------------------------------------------
SBSTEST FACILITY                                                                  South_Africa    South_Korea     UAE

                       Support Facility                                           -               -               -
                       (NOTE: To be located at HNS premises)
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<S>                    <C>                                                   <C>             <C>             <C>
-------------------------------------------------------------------------------------------------------------------------------
SMSC                   Dimensioning Driver                                   USA             Japan           UK
                                                                                             (NMC)           (BNMC)

                       Messages per busy hour                                -               -               -
                       GoS

-------------------------------------------------------------------------------------------------------------------------------
IS.41{ }ICO IWF        Dimensioning Driver                                   USA             Japan           UK
                                                                                             (NMC)           (BNMC)
                       BIDIRECTIONAL IS.41 {} ICO IWF (Note 9)               IS.41 IWF 1
                       Number of subscribers capable of roaming                      500,000 -               -
                       Busy Hour Network and ICO VLR registrations                     1,228 -               -
                       MT BH Erlangs for IS.41>ICO subscribers (Note 10)                  57
                       Minimum no. SS7 ports to ICO MSSC (Note 3)                          2
                       Minimum no. SS7 ports to IS.41 SS7 Network (Note 3)                 2
                       GoS                                                                 1

-------------------------------------------------------------------------------------------------------------------------------
OAM SYSTEM                                                                   USA             Japan           UK
                                                                                             (NMC)           (BNMC)
                       OAM Interface provided  (Note 4)                      Yes                             Yes
                       TMOS Server  (Note 4)                                                 Yes             Backup

-------------------------------------------------------------------------------------------------------------------------------
POWER SYSTEM                                                                 USA             Japan           UK
                                                                                             (NMC)           (BNMC)
                       DC UPS (Note 4)                                       Yes             Yes             Yes
-------------------------------------------------------------------------------------------------------------------------------
SRMC                   Dimensioning Driver                                   USA             Japan           UK
                                                                                             (NMC)           (BNMC)

                       Number of satellites                                  -                            12                12
                       Number of SANs                                        -                            12                12
                       Number of spot beams per satellite                    -                           163               163
                       Number of filters per satellite                       -                           490               490
                       Satellite orbit period                                -                             6                 6
                       Planning Ground Cell size                             -                             1                 1
                       Payload command table size                            -                        32,000            32,000
                       HPN tables                                            -                             4                 4
                       Number of frequency co-ordination regions             -                             4                 4
-------------------------------------------------------------------------------------------------------------------------------
                       Dimensioning Driver                                   USA             Japan           UK
                                                                                             (NMC)           (BNMC)
                                                                                             NMC             NMC
                                                                                             (primary)       (backup)
NMC
                  SOFTWARE FUNCTIONAL BLOCKS
                       See Equipment List                                    -                             1                 1
                  DCN SUBSYSTEM
                       Average peak local network OA&M traffic in kbit/s.                             See DCN Design Documentation
                       Average peak traffic to NMC                                                    See DCN Design Documentation
-------------------------------------------------------------------------------------------------------------------------------
SBSTEST FACILITY                                                             USA             Japan           UK
                                                                                             (NMC)           (BNMC)

                       Support Facility                                                    1 -               -
                       (NOTE: To be located at HNS premises)
-------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<S>                    <C>                                                      <C>
--------------------------------------------------------------------------------
SMSC                   Dimensioning Driver

                       Messages per busy hour
                       GoS

--------------------------------------------------------------------------------
IS.41{ }ICO IWF        Dimensioning Driver

                       BIDIRECTIONAL IS.41 {} ICO IWF (Note 9)
                       Number of subscribers capable of roaming                 800,000
                       Busy Hour Network and ICO VLR registrations                1,740
                       MT BH Erlangs for IS.41>ICO subscribers (Note 10)             80
                       Minimum no. SS7 ports to ICO MSSC (Note 3)
                       Minimum no. SS7 ports to IS.41 SS7 Network (Note 3)
                       GoS

--------------------------------------------------------------------------------
OAM SYSTEM

                       OAM Interface provided  (Note 4)
                       TMOS Server  (Note 4)

--------------------------------------------------------------------------------
POWER SYSTEM

                       DC UPS (Note 4)
--------------------------------------------------------------------------------
SRMC                   Dimensioning Driver

                       Number of satellites
                       Number of SANs
                       Number of spot beams per satellite
                       Number of filters per satellite
                       Satellite orbit period
                       Planning Ground Cell size
                       Payload command table size
                       HPN tables
                       Number of frequency co-ordination regions
--------------------------------------------------------------------------------
                       Dimensioning Driver

NMC
                  SOFTWARE FUNCTIONAL BLOCKS
                       See Equipment List
                  DCN SUBSYSTEM
                       Average peak local network OA&M traffic in kbit/s.
                       Average peak traffic to NMC
--------------------------------------------------------------------------------
SBSTEST FACILITY

                       Support Facility
                       (NOTE: To be located at HNS premises)
--------------------------------------------------------------------------------
</TABLE>

                PROPRIETARY & CONFIDENTIAL TO ICO COMMUNICATIONS
<PAGE>   1258

Version 3.0             EQUIPMENT ORDER INDICATION                     Page 4/5

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------
SYSTEM
INTEGRATION
SUPPORT
FACILITY                                                                                          Australia       Brazil

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

                       Support Facility                                                                           1 -
                       (NOTE: To be located at NEC/A & HNS premises)
---------------------------------------------------------------------------------------------------------------------------
SPARES
                                                                                                  1 set           1 set
---------------------------------------------------------------------------------------------------------------------------
SPECIALIST
TEST
EQUIPMENT                                                                            Quantity
                                                                                                  -               -
                  UT LOAD SIMULATOR (III.7 PH1/2 & PH2-3/1.2)                                     2               1
                  SATELLITE CHANNEL SIMULATOR (III.7 PH2-3/2)                                                     1
                  GSM TESTER (III.7 PH1/3)                                                        2 -             -
                  SDL FOR AIR INTERFACE VALIDATION (III.2 4.1)                                    1 -             -
                  AIR INTERFACE CONFORMANCE TESTER FOR UT  (III.2 4.2)                            2
                  PCS CHECKER                                                        -                            1
---------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
SYSTEM
INTEGRATION
SUPPORT
FACILITY                                                                    Chile           China           Germany         India

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

                       Support Facility                                     -               -               -               -
                       (NOTE: To be located at NEC/A & HNS premises)
-----------------------------------------------------------------------------------------------------------------------------------
SPARES
                                                                            1 set           1 set           1 set           1 set
-----------------------------------------------------------------------------------------------------------------------------------
SPECIALIST
TEST
EQUIPMENT
                                                                            -               -               -               -
                  UT LOAD SIMULATOR (III.7 PH1/2 & PH2-3/1.2)                   1               1               1               1
                  SATELLITE CHANNEL SIMULATOR (III.7 PH2-3/2)                   1               1               1               1
                  GSM TESTER (III.7 PH1/3)                                  -               -               -               -
                  SDL FOR AIR INTERFACE VALIDATION (III.2 4.1)              -               -               -               -
                  AIR INTERFACE CONFORMANCE TESTER FOR UT  (III.2 4.2)
                  PCS CHECKER                                                   1               1               1               1
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
SYSTEM
INTEGRATION
SUPPORT
FACILITY                                                                    Indonesia       Mexico          South_Africa

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

                       Support Facility                                     -               -               -
                       (NOTE: To be located at NEC/A & HNS premises)
----------------------------------------------------------------------------------------------------------------------------
SPARES
                                                                            1 set           1 set           1 set
----------------------------------------------------------------------------------------------------------------------------
SPECIALIST
TEST
EQUIPMENT
                                                                            -               -               -
                  UT LOAD SIMULATOR (III.7 PH1/2 & PH2-3/1.2)                   1               1               1
                  SATELLITE CHANNEL SIMULATOR (III.7 PH2-3/2)                   1               1               1
                  GSM TESTER (III.7 PH1/3)                                  -               -               -
                  SDL FOR AIR INTERFACE VALIDATION (III.2 4.1)              -               -               -
                  AIR INTERFACE CONFORMANCE TESTER FOR UT  (III.2 4.2)
                  PCS CHECKER                                                   1               1               1
----------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------
SYSTEM
INTEGRATION
SUPPORT
FACILITY                                                                       South_Korea     UAE             USA

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

                       Support Facility                                        -               -               -
                       (NOTE: To be located at NEC/A & HNS premises)
-------------------------------------------------------------------------------------------------------------------------------
SPARES
                                                                               1 set           1 set           1 set
-------------------------------------------------------------------------------------------------------------------------------
SPECIALIST
TEST
EQUIPMENT
                                                                               -               -               -
                  UT LOAD SIMULATOR (III.7 PH1/2 & PH2-3/1.2)                      1               1               1
                  SATELLITE CHANNEL SIMULATOR (III.7 PH2-3/2)                      1               1               1
                  GSM TESTER (III.7 PH1/3)                                     -               -               -
                  SDL FOR AIR INTERFACE VALIDATION (III.2 4.1)                 -               -               -
                  AIR INTERFACE CONFORMANCE TESTER FOR UT  (III.2 4.2)
                  PCS CHECKER                                                      1               1               1
-------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------
SYSTEM
INTEGRATION
SUPPORT
FACILITY                                                                         Japan           UK
                                                                                 (NMC)           (BNMC)
<S>                                                                              <C>             <C>

                       Support Facility                                          -               -
                       (NOTE: To be located at NEC/A & HNS premises)
---------------------------------------------------------------------------------------------------------
SPARES
                                                                                 1 set           1 set
---------------------------------------------------------------------------------------------------------
SPECIALIST
TEST
EQUIPMENT
                                                                                 -               -
                  UT LOAD SIMULATOR (III.7 PH1/2 & PH2-3/1.2)
                  SATELLITE CHANNEL SIMULATOR (III.7 PH2-3/2)                    -               -
                  GSM TESTER (III.7 PH1/3)                                       -               -
                  SDL FOR AIR INTERFACE VALIDATION (III.2 4.1)                   -               -
                  AIR INTERFACE CONFORMANCE TESTER FOR UT  (III.2 4.2)
                  PCS CHECKER                                                    -               -
---------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
ASSUMPTIONS
<S>                                                                <C>              <C>
     Mean holding time for voice calls                                90s           Working Assumption
     Mean holding time for data calls                                 90s           Working Assumption
     Mean holding time for voice calls forwarded to
     message platform                                                 30s           Working Assumption
     Mean holding time for fax/data calls forwarded to
     message platform                                                 90s           Working Assumption
     Mean holding time for calls terminated on RVA                    10s           Source = IGFR Assumption
     Mean holding time for Reg/LU msgs on Air I/f                     8s            Source = IGFR Assumption
     Mean holding time for SMS on Air I/f                             10s           Source = IGFR Assumption
     Diversity                                                        40%           Source = IGFR Assumption
     Compressed Calls (E) as % A' interface Erlangs                  2.5%           Working Assumption (=0.1*2/8)
     % SMS MO                                                        2.4%           Source = IM
     % SMS MT                                                        97.6%          Source = IM
     Mean size of SMS Messages                                     30 Chars         Source = IGFR Assumption
     SMS Messages (MO+MT) in BHour                                  10,220          Source = BP (SMG)
     % calls invoking conference call device
     (CW/CH/CONF) excluding monitoring                                1%            Source = IGFR Assumption
     MSSC>LIAS Traffic (% A' Interface Calls)                         3%            Source = IGFR Assumption
     LIAS > MSSC TRAFFIC (% MSSC>LIAS TRAFFIC)                       105%           Assume 70% of MSSC>LIAS traffic is in
                                                                                    a valid location and average of 1.5 MCs
     % calls requiring DTMF                                           5%            Working Assumption
     Mean holding time for calls invoking DTMF                        90s           Working Assumption
     % calls to Code Answering Test Lines                             0%            Working Assumption
     % calls which are fax/data                                       10%           Source = BP (SMG)
     BH registered subscribers                                      260,000         Source = BP (Sandim spreadsheets)
     BH Location Updates per registered subscriber                   0.25           Source = IGFR Assumption
     RVA Traffic as % A' interface traffic                           2.5%           Source = IGFR Assumption
     % Air Interface calls which are MT                               27%           Source = BP (SMG)
     % MT Call Attempts which result in air interface call            50%           Working Assumption
     % MT Call Attempts to ICO-HLR customers                          60%           Source: ICO BP
     % MO Call Attempts from ICO-HLR customers                        77%           Source: ICO BP
     Number of triplets issued by AuC for each request                 5            Source = IGFR Assumption
     Initial registrations (per UT/BH)                                0.1           Source = IGFR Assumption
     VLR change per UT/BH                                            0.05           Source = IGFR Assumption
     IMEI checked on each initial registration?                       Yes           Source = IGFR Assumption
     Auth checked on MO & MT?                                         Yes           Source = IGFR Assumption
     Proportion of registered UTs which are ICO-HLR                   88%           Source = BP (Sandim spreadsheets)
     Proportion of registered UTs which are IS.41>ICO                 4%            Source = BP (Sandim spreadsheets)
     Number of ICO>IS.41 customers                                  50,000          Source = BP (Sandim spreadsheets, rounded up)
     Proportion of ICO>IS.41 customers registered in BH               5%            Working Assumption
     TNM BHCA as a proportion of SBS BHCA (allows for
     TNM-TNM Traffic                                                 110%           Working Assumption
     AVERAGE PACKING EFFICIENCY OF TNM-MSSC MCD CIRCUITS              50%           Working Assumption
</TABLE>

            PROPRIETARY & CONFIDENTIAL TO ICO GLOBAL COMMUNICATIONS
<PAGE>   1259

Version 3.0             EQUIPMENT ORDER INDICATION                Page 5/5

NOTES   1 Assume this row was for DCN traffic. This is no longer valid with the
          redesign of the DCN
        2 Simplified assumption, needs further analysis
        3 Minimum number of connections for redundancy, ETL to confirm required
          number for traffic volume
        4 These rows refer to ETL systems
        5 MSSC BHCA not directly shown here, ICO & ETL to jointly consider
          based on call flows, mean holding times, %MT failed calls...
        6 Total Switch Erlang Load = (A Interface + POI + Transit + Vmail + LI)
           / 2
        7 Transit Erlangs for the MSSC includes transport of voicemail traffic
        8 IS.41 { } ICO ILR now based on bidirectional platform, table updated
          to reflect this. Assume all ICO>IS.41 customers are in US ILR
        9 IS.41 { } ICO ILR BH Erlangs figure for US increased to allow for MTC
          to ICO customers reg on IS.41. Total in accordance with V2.0
       10 LI Traffic to Monitoring Centres has been added to the MSSC POI
          Erlangs
       11 Adjusted A' Interface Erlangs for Mexico to be 560.0

            PROPRIETARY & CONFIDENTIAL TO ICO GLOBAL COMMUNICATIONS
<PAGE>   1260
-------------------------------------------------------------------------------
                                                            EN-IG-ICO-SW/000002
[ICO LOGO]      Annex 1 Contractor's Deliverables           Version 3.6
                                                            25 March, 1998
-------------------------------------------------------------------------------

7.       DELIVERABLE FUNCTIONS AND FEATURES

         The Contractor shall deliver the IGF with all of the associated
         equipment and facilities including necessary software so that the
         functions and features as described in the IGFR will operate as
         specified.

         The schedule for delivery, installation, commissioning, integration and
         testing of the equipment and its integration into the total IGF is set
         forth in Annex 4 of this SOW.

         Functions and features marked F/R and Options in the IGFR shall be
         excluded from delivery within the timetable laid out in Annex 4 of this
         SOW.

Proprietary & Confidential to ICO Global Communications                       15
<PAGE>   1261
-------------------------------------------------------------------------------
                                                            EN-IG-ICO-SW/000002
[ICO LOGO]      Annex 1 Contractor's Deliverables           Version 3.6
                                                            25 March, 1998
-------------------------------------------------------------------------------

8.       DELIVERABLE EQUIPMENT

8.1      DELIVERABLE EQUIPMENT

8.1.1.1  The deliverable equipment is set out in Table 2 of this Annex.

Proprietary & Confidential to ICO Global Communications                       16
<PAGE>   1262
--------------------------------------------------------------------------------
                                                            EN-IG-ICO-SW/000002
   [ICO LOGO]      Annex 1 Contractor's Deliverables        Version 3.6
                                                            25 March, 1998

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

                                     ANNEX 2

                      TABLE 2 - CONTRACTOR'S DELIVERABLES

Proprietary & Confidential to ICO Global Communications     Created on 25/02/98
<PAGE>   1263
REI EQUIPMENT LIST

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
                                                               SAN         SAN          SAN  For        SAN           SAN
Item No.           Description                               For ICO-    For USA       Australia    For Germany       For
                                                               NET       (Type 2)      (Type 1)       (Type 1)   South Africa
                                                                                                                    (Type 1)
                                                             ----------------------------------------------------------------
                                                               Q'ty       Q'ty           Q'ty          Q'ty          Q'ty
-----------------------------------------------------------------------------------------------------------------------------
<S>        <C>                                               <C>         <C>           <C>          <C>          <C>
           HARDWARE

1.         7.6m C-band Antenna Subsystem
1.1        7.6m Antenna Structure                                           5              5             5             5
1.2        7.6m Reflector Panel                                             5              5             5             5
1.3        Dual C. P. Feed (for Monopulse Track)                            5              5             5             5
1.4        ACU and Tracking Receiver for Monopulse Track
1.4.1      Tracking Down Converter                                          5              5             5             5
1.4.2      Tracking Demodulator                                             5              5             5             5
1.4.3      Antenna Control Equipment                                        5              5             5             5
1.5        Dual C. P. Feed (for Step Track)
1.6        ACU and Beacon Receiver for Step Track
1.6.1      Beacon Down Converter
1.6.2      Beacon Receiver
1.6.3      Antenna Control Equipment
1.7        Blower and Heater Unit                                           5                            5             5
1.8        A/C in Centre Hub(non-redundant)
1.9        Deicing Equipment                                                5                            5
1.10       DCPA, DC Motor, Angle Det. and Dehydrator
1.10.1     DCPA                                                             5              5             5             5
1.10.2     Transformer for DCPA                                                            5             5             5
1.10.3     DC Motor                                                        20             20            20            20
1.10.4     Angle Detector                                                  10             10            10            10
1.10.5     Dehydrator                                                       5              5             5             5

2.         C-band Low Noise
           Amplifier Subsystem
</TABLE>

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------------------
                                                              SAN           SAN           SAN              SAN           SAN
Item No.           Description                              For India    For Chile      For Brazil      For Mexico     For UAE
                                                            (Type 2)     (Type 2)        (Type 2)        (Type 2)      (Type 2)

                                                            -------------------------------------------------------------------
                                                              Q'ty          Q'ty           Q'ty            Q'ty           Q'ty
-------------------------------------------------------------------------------------------------------------------------------
<S>        <C>                                              <C>          <C>            <C>             <C>            <C>
II         HARDWARE

1.         7.6m C-band Antenna Subsystem
1.1        7.6m Antenna Structure                                5             5             5                5           5
1.2        7.6m Reflector Panel                                  5             5             5                5           5
1.3        Dual C. P. Feed (for Monopulse Track)                 5             5             5                            5
1.4        ACU and Tracking Receiver for Monopulse Track
1.4.1      Tracking Down Converter                               5             5             5                            5
1.4.2      Tracking Demodulator                                  5             5             5                            5
1.4.3      Antenna Control Equipment                             5             5             5                            5
1.5        Dual C. P. Feed (for Step Track)                                                                   5
1.6        ACU and Beacon Receiver for Step Track
1.6.1      Beacon Down Converter                                                                              5
1.6.2      Beacon Receiver                                                                                    5
1.6.3      Antenna Control Equipment                                                                          5
1.7        Blower and Heater Unit                                              5
1.8        A/C in Centre Hub(non-redundant)                      2
1.9        Deicing Equipment
1.10       DCPA, DC Motor, Angle Det. and Dehydrator
1.10.1     DCPA                                                  5             5             5                5           5
1.10.2     Transformer for DCPA                                  5             5                                          5
1.10.3     DC Motor                                             20            20            20               20          20
1.10.4     Angle Detector                                       10            10            10               10          10
1.10.5     Dehydrator                                            5             5             5                5           5

2.         C-BAND LOW NOISE
           AMPLIFIER SUBSYSTEM
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
                                                                 SAN           SAN        SAN         NMC         NMC       TOTAL
Item No.           Description                               For Indonesia  For China   For Korea   Primary     Back-up
                                                                (Type 2)     (Type 2)   (Type 1)

                                                             ----------------------------------------------------------------------
                                                                 Q'ty          Q'ty       Q'ty        Q'ty        Q'ty       Q'ty
-----------------------------------------------------------------------------------------------------------------------------------
<S>        <C>                                               <C>            <C>         <C>         <C>          <C>        <C>
II         HARDWARE

1.         7.6m C-band Antenna Subsystem
1.1        7.6m Antenna Structure                                   5            5          5                                 60
1.2        7.6m Reflector Panel                                     5            5          5                                 60
1.3        Dual C. P. Feed (for Monopulse Track)                    5                                                         45
1.4        ACU and Tracking Receiver for Monopulse Track
1.4.1      Tracking Down Converter                                  5                                                         45
1.4.2      Tracking Demodulator                                     5                                                         45
1.4.3      Antenna Control Equipment                                5                                                         45
1.5        Dual C. P. Feed (for Step Track)                                      5          5                                 15
1.6        ACU and Beacon Receiver for Step Track
1.6.1      Beacon Down Converter                                                 5          5                                 15
1.6.2      Beacon Receiver                                                       5          5                                 15
1.6.3      Antenna Control Equipment                                             5          5                                 15
1.7        Blower and Heater Unit                                                5          5                                 30
1.8        A/C in Centre Hub(non-redundant)                                                                                    2
1.9        Deicing Equipment                                                                                                  10
1.10       DCPA, DC Motor, Angle Det. and Dehydrator
1.10.1     DCPA                                                     5            5          5                                 60
1.10.2     Transformer for DCPA                                     5            5          5                                 45
1.10.3     DC Motor                                                20           20         20                                240
1.10.4     Angle Detector                                          10           10         10                                120
1.10.5     Dehydrator                                               5            5          5                                 60

2.         C-band Low Noise
           Amplifier Subsystem
</TABLE>

                            Commercial in Confidence
<PAGE>   1264
RFT EQUIPMENT LIST

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
                                                               SAN         SAN           SAN           SAN            SAN
ITEM NO.           DESCRIPTION                               FOR ICO-    FOR USA         FOR        FOR GERMANY       FOR
                                                               NET       (TYPE 2)      AUSTRALIA      (TYPE 1)   SOUTH AFRICA
                                                                                       (TYPE 1)                     (TYPE 1)
                                                             ----------------------------------------------------------------
                                                               Q'TY       Q'TY           Q'TY          Q'TY          Q'TY
-----------------------------------------------------------------------------------------------------------------------------
<S>        <C>                                               <C>         <C>           <C>          <C>          <C>
2.1        C-Band FET LNA Unit                                             15             15            15            15
2.2        RF Plate Assembly for 2+1 config.                                5              5             5             5
2.3        LNA Power Supply                                                 5              5             5             5
2.4        Test Panel                                                       5              5             5             5
2.5        40 dB Coupler (LNA Input)                                        5              5             5             5
2.6        Coupler for tracking                                            10             10            10            10

3.         C-BAND HIGH POWER AMPLIFIER SUBSYSTEM
3.1        3kW TWT HPA Cabinet/Linearizer                                  15             15            15            15
3.2        WG  ASSY
3.2.1      Isolator                                                        10             10            10            10
3.2.2      WG Directional Coupler                                          15             15            15            15
3.2.3      WG SWO                                                          10             10            10            10
3.2.4      High Power Dummy Load                                            5              5             5             5
3.2.5      Low Power Dummy Load                                            15             15            15            15
3.3        TX/RX Path Selector                                              5              5             5             5
3.4         Band Pass Filter                                               10             10            10            10

4.         C-BAND UP/DOWN CONVERTER SUBSYSTEM
4.1        C-band Up Converter                                             15             15            15            15
4.2        Pilot Generator                                                 15             15            15            15
4.3        C-band Down Converter                                           15             15            15            15
4.4        AFC equipment                                                   15             15            15            15
4.5        AFC D/C                                                         15             15            15            15

4.6        EIRP C&M
4.6.1      Selective Power Meter 6000                                       5              5             5             5
4.6.2      6-way Switch Model 6100I                                         5              5             5             5
4.6.3      Transmit Level Control Unit                                     15             15            15            15
4.6.4      PC                                                               5              5             5             5
4.7        LINE AMP (C-BAND RX) (2+1 CONFIG)                                5              5             5             5
</TABLE>

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------------
                                                               SAN           SAN           SAN              SAN           SAN
ITEM NO.           DESCRIPTION                               FOR INDIA    FOR CHILE      FOR BRAZIL      FOR MEXICO     FOR UAE
                                                             (TYPE 2)     (TYPE 2)        (TYPE 2)        (TYPE 2)      (TYPE 2)

                                                             -------------------------------------------------------------------
                                                               Q'TY          Q'TY           Q'TY            Q'TY           Q'TY
--------------------------------------------------------------------------------------------------------------------------------
<S>        <C>                                               <C>          <C>            <C>             <C>            <C>
2.1        C-Band FET LNA Unit                                  15            15             15              15            15
2.2        RF Plate Assembly for 2+1 config.                     5             5              5               5             5
2.3        LNA Power Supply                                      5             5              5               5             5
2.4        Test Panel                                            5             5              5               5             5
2.5        40 dB Coupler (LNA Input)                             5             5              5               5             5
2.6        Coupler for tracking                                 10            10             10              10            10

3.         C-BAND HIGH POWER AMPLIFIER SUBSYSTEM
3.1        3kW TWT HPA Cabinet/Linearizer                       15            15             15              15            15
3.2        WG  ASSY
3.2.1      Isolator                                             10            10             10              10            10
3.2.2      WG Directional Coupler                               15            15             15              15            15
3.2.3      WG SWO                                               10            10             10              10            10
3.2.4      High Power Dummy Load                                 5             5              5               5             5
3.2.5      Low Power Dummy Load                                 15            15             15              15            15
3.3        TX/RX Path Selector                                   5             5              5               5             5
3.4         Band Pass Filter                                    10            10             10              10            10

4.         C-BAND UP/DOWN CONVERTER SUBSYSTEM
4.1        C-band Up Converter                                  15            15             15              15            15
4.2        Pilot Generator                                      15            15             15              15            15
4.3        C-band Down Converter                                15            15             15              15            15
4.4        AFC equipment                                        15            15             15              15            15
4.5        AFC D/C                                              15            15             15              15            15

4.6        EIRP C&M
4.6.1      Selective Power Meter 6000                            5             5              5               5             5
4.6.2      6-way Switch Model 6100I                              5             5              5               5             5
4.6.3      Transmit Level Control Unit                          15            15             15              15            15
4.6.4      PC                                                    5             5              5               5             5
4.7        LINE AMP (C-BAND RX) (2+1 CONFIG)                     5             5              5               5             5
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
                                                           SAN              SAN          SAN            NMC         NMC       TOTAL
ITEM NO.           DESCRIPTION                         FOR INDONESIA     FOR CHINA     FOR KOREA      PRIMARY      BACK-UP
                                                          (TYPE 2)        (TYPE 2)     (TYPE 1)

                                                       ----------------------------------------------------------------------------
                                                           Q'TY             Q'TY         Q'TY           Q'TY        Q'TY       Q'TY
-----------------------------------------------------------------------------------------------------------------------------------
<S>        <C>                                         <C>               <C>           <C>            <C>          <C>        <C>
2.1        C-Band FET LNA Unit                              15              15             15                                  180
2.2        RF Plate Assembly for 2+1 config.                 5               5              5                                   60
2.3        LNA Power Supply                                  5               5              5                                   60
2.4        Test Panel                                        5               5              5                                   60
2.5        40 dB Coupler (LNA Input)                         5               5              5                                   60
2.6        Coupler for tracking                             10              10             10                                  120

3.         C-BAND HIGH POWER AMPLIFIER SUBSYSTEM
3.1        3kW TWT HPA Cabinet/Linearizer                   15              15             15                                  180
3.2        WG  ASSY
3.2.1      Isolator                                         10              10             10                                  120
3.2.2      WG Directional Coupler                           15              15             15                                  180
3.2.3      WG SWO                                           10              10             10                                  120
3.2.4      High Power Dummy Load                             5               5              5                                   60
3.2.5      Low Power Dummy Load                             15              15             15                                  180
3.3        TX/RX Path Selector                               5               5              5                                   60
3.4         Band Pass Filter                                10              10             10                                  120

4.         C-BAND UP/DOWN CONVERTER SUBSYSTEM
4.1        C-band Up Converter                              15              15             15                                  180
4.2        Pilot Generator                                  15              15             15                                  180
4.3        C-band Down Converter                            15              15             15                                  180
4.4        AFC equipment                                    15              15             15                                  180
4.5        AFC D/C                                          15              15             15                                  180

4.6        EIRP C&M
4.6.1      Selective Power Meter 6000                        5               5              5                                   60
4.6.2      6-way Switch Model 6100I                          5               5              5                                   60
4.6.3      Transmit Level Control Unit                      15              15             15                                  180
4.6.4      PC                                                5               5              5                                   60
4.7        LINE AMP (C-BAND RX) (2+1 CONFIG)                 5               5              5                                   60
</TABLE>

                            Commercial in Confidence
<PAGE>   1265
RFI EQUIPMENT LIST

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
                                                               SAN         SAN           SAN           SAN            SAN
ITEM NO.           DESCRIPTION                               FOR ICO-    FOR USA         FOR        FOR GERMANY       FOR
                                                               NET       (TYPE 2)      AUSTRALIA      (TYPE 1)   SOUTH AFRICA
                                                                                       (TYPE 1)                     (TYPE 1)
                                                             ----------------------------------------------------------------
                                                               Q'TY       Q'TY           Q'TY          Q'TY          Q'TY
-----------------------------------------------------------------------------------------------------------------------------
<S>        <C>                                               <C>         <C>           <C>          <C>          <C>
4.8        Others                                                           5               5             5             5
4.8.1      7GHz SWO                                                        20              20            20            20
4.8.2      1GHz SWO                                                         5               5             5             5
4.8.3      Test Panel                                                      20              20            20            20
4.8.4      1GHz D.COUP                                                     30              30            30            30
4.8.5      IF PATCH                                                        30              30            30            30
4.8.6      RF PATCH
4.9        Traffic Carrier Termination
4.9.1      5GHz SWO
4.10       TT&C Carrier EIRP
4.10.1     C-band WG Coupler for SPM (for TTC only)                         5               5             5             5
4.11       S-band BCCH Carrier Monitoring                                   5               5             5             5
4.11.1     1 GHz D. Coupler                                                 5               5             5             5

4.12       IOT Signal Monitoring
4.12.1     5 GHz RF SWO
4.12.2     5 GHz WG Coupler
4.12.3     7 GHz WG Coupler
4.12.4     7 GHz RF SWO for Hub SW
4.12.5     2 GHz RF SWO for Hub SW
4.12.6     7 GHz RF SWO
4.12.7     S-band Coupler for TX
4.12.8     S-band RF SWO
4.12.9     1 GHz Patch
4.13       Signal Generator for S-band                                      5               5             5             5
4.14       19 inch Rack (Up Converter rack)                                 5               5             5             5
4.15       19 inch Rack (Down Converter rack)                              10              10            10            10
4.16       19 inch Rack in Hub Building                                     1               1             1             1
4.17       19 inch Rack (Misc. rack)                                       10              10            10            10
4.18       C-band RF Divider (HYB)                                         10              10            10            10
4.19       1GHz HYB (1:2)                                                  10              10            10            10
</TABLE>

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------------
                                                               SAN           SAN           SAN              SAN           SAN
ITEM NO.           DESCRIPTION                               FOR INDIA    FOR CHILE      FOR BRAZIL      FOR MEXICO     FOR UAE
                                                             (TYPE 2)     (TYPE 2)        (TYPE 2)        (TYPE 2)      (TYPE 2)

                                                            --------------------------------------------------------------------
                                                               Q'TY          Q'TY           Q'TY            Q'TY           Q'TY
--------------------------------------------------------------------------------------------------------------------------------
<S>        <C>                                               <C>          <C>            <C>             <C>            <C>
4.8        Others                                                5             5              5               5              5
4.8.1      7GHz SWO                                             20            20             20              20             20
4.8.2      1GHz SWO                                              5             5              5               5              5
4.8.3      Test Panel                                           20            20             20              20             20
4.8.4      1GHz D.COUP                                          30            30             30              30             30
4.8.5      IF PATCH                                             30            30             30              30             30
4.8.6      RF PATCH
4.9        Traffic Carrier Termination
4.9.1      5GHz SWO                                              5             5             15              15             15
4.10       TT&C Carrier EIRP
4.10.1     C-band WG Coupler for SPM (for TTC only)              5             5
4.11       S-band BCCH Carrier Monitoring
4.11.1     1 GHz D. Coupler                                      5             5              5               5              5

4.12       IOT Signal Monitoring
4.12.1     5 GHz RF SWO
4.12.2     5 GHz WG Coupler                                      2
4.12.3     7 GHz WG Coupler                                      4
4.12.4     7 GHz RF SWO for Hub SW                               2
4.12.5     2 GHz RF SWO for Hub SW                               4
4.12.6     7 GHz RF SWO                                          2
4.12.7     S-band Coupler for TX                                 6
4.12.8     S-band RF SWO                                         2
4.12.9     1 GHz Patch                                           4
4.13       Signal Generator for S-band                           8
4.14       19 inch Rack (Up Converter rack)                      5             5              5               5              5
4.15       19 inch Rack (Down Converter rack)                    5             5              5               5              5
4.16       19 inch Rack in Hub Building                         10            10             10              10             10
4.17       19 inch Rack (Misc. rack)                            10            10             10              10             10
4.18       C-band RF Divider (HYB)                              10            10             10              10             10
4.19       1GHz HYB (1:2)                                       10            10             10              10             10
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
                                                           SAN              SAN          SAN            NMC         NMC       TOTAL
ITEM NO.           DESCRIPTION                         FOR INDONESIA     FOR CHINA     FOR KOREA      PRIMARY      BACK-UP
                                                          (TYPE 2)        (TYPE 2)     (TYPE 1)

                                                       ----------------------------------------------------------------------------
                                                           Q'TY             Q'TY         Q'TY           Q'TY        Q'TY       Q'TY
-----------------------------------------------------------------------------------------------------------------------------------
<S>        <C>                                         <C>               <C>           <C>            <C>          <C>        <C>
4.8        Others                                             5               5             5                                   60
4.8.1      7GHz SWO                                          20              20            20                                  240
4.8.2      1GHz SWO                                           5               5             5                                   60
4.8.3      Test Panel                                        20              20            20                                  240
4.8.4      1GHz D.COUP                                       30              30            30                                  360
4.8.5      IF PATCH                                          30              30            30                                  360
4.8.6      RF PATCH
4.9        Traffic Carrier Termination
4.9.1      5GHz SWO                                          15              15            15                                  120
4.10       TT&C Carrier EIRP
4.10.1     C-band WG Coupler for SPM (for TTC only)                                                                             30
4.11       S-band BCCH Carrier Monitoring
4.11.1     1 GHz D. Coupler                                   5               5             5                                   60

4.12       IOT Signal Monitoring                                                                                                 2
4.12.1     5 GHz RF SWO                                                                                                          4
4.12.2     5 GHz WG Coupler                                                                                                      2
4.12.3     7 GHz WG Coupler                                                                                                      4
4.12.4     7 GHz RF SWO for Hub SW                                                                                               2
4.12.5     2 GHz RF SWO for Hub SW                                                                                               6
4.12.6     7 GHz RF SWO                                                                                                          2
4.12.7     S-band Coupler for TX
4.12.8     S-band RF SWO                                                                                                         4
4.12.9     1 GHz Patch                                                                                                           8
4.13       Signal Generator for S-band                        5               5             5                                   60
4.14       19 inch Rack (Up Converter rack)                   5               5             5                                   60
4.15       19 inch Rack (Down Converter rack)                10              10            10                                  120
4.16       19 inch Rack in Hub Building                       1               1             1                                   12
4.17       19 inch Rack (Misc. rack)                         10              10            10                                  120
4.18       C-band RF Divider (HYB)                           10              10            10                                  120
4.19       1GHz HYB (1:2)                                    10              10            10                                  120
</TABLE>

                            Commercial in Confidence
<PAGE>   1266
RFT EQUIPMENT LIST

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
                                                               SAN         SAN           SAN           SAN            SAN
ITEM NO.           DESCRIPTION                               FOR ICO-    FOR USA         FOR        FOR GERMANY       FOR
                                                               NET       (TYPE 2)      AUSTRALIA      (TYPE 1)   SOUTH AFRICA
                                                                                       (TYPE 1)                     (TYPE 1)
                                                             ----------------------------------------------------------------
                                                               Q'ty       Q'ty           Q'ty          Q'ty          Q'ty
-----------------------------------------------------------------------------------------------------------------------------
<S>        <C>                                               <C>         <C>           <C>          <C>          <C>
5.         TTC UP/DOWN CONVERTER SUBSYSTEM
5.1        TTC Up Converter                                                10             10            10            10
5.2        TTC Down Converter                                              10             10            10            10
5.3        Crystal Oscillator for TT&C Converters                          10             10            10            10
5.4        Others
5.4.1      RF DIV (HYB)                                                    15             15            15            15
5.4.2      70 MHz DIV (HYB)                                                 5              5             5             5
5.4.3      C-band RF SWO                                                    5              5             5             5
5.4.4      5GHz SWO                                                        20             20            20            20
5.4.5      IF SWO                                                           5              5             5             5
5.4.6      IF PATCH                                                        10             10            10            10
5.4.7      RF PATCH                                                        15             15            15            15
5.4.8      19 inch Rack (TTC Converter rack)                                5              5             5             5

6.         S-BAND SUBSYSTEM
6.1        Antenna                                                          5              5             5             5
6.2        FET LNA                                                          5              5             5             5
6.3        20W SSPA                                                         5              5             5             5
6.4        Up Converter                                                     5              5             5             5
6.5        Down Converter                                                   5              5             5             5
6.6        Others
6.6.1      2G PATCH                                                        10             10            10            10
6.6.2      30 dB Coupler (LNA Input)                                        5              5             5             5
6.6.3      IF   PATCH                                                      10             10            10            10

7.         RFT O&M SUBSYSTEM
7.1        VDU
7.1.1      Server
7.1.1.1    Model D370/1 SMP Server                                          2              2             2             2
7.1.1.2    128MB ECC Memory Module, D Class Servers                         2              2             2             2
7.1.1.3    2 GB FWD SCSI-2 Hot Swap disk Drive                              2              2             2             2
</TABLE>

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------------
                                                               SAN           SAN           SAN              SAN           SAN
ITEM NO.           DESCRIPTION                               FOR INDIA    FOR CHILE      FOR BRAZIL      FOR MEXICO     FOR UAE
                                                             (TYPE 2)     (TYPE 2)        (TYPE 2)        (TYPE 2)      (TYPE 2)

                                                             -------------------------------------------------------------------
                                                               Q'TY          Q'TY           Q'TY            Q'TY           Q'TY
--------------------------------------------------------------------------------------------------------------------------------
<S>        <C>                                               <C>          <C>            <C>             <C>            <C>
5.         TTC UP/DOWN CONVERTER SUBSYSTEM
5.1        TTC Up Converter                                     10            10
5.2        TTC Down Converter                                   10            10
5.3        Crystal Oscillator for TT&C Converters               10            10
5.4        Others
5.4.1      RF DIV (HYB)                                         15            15
5.4.2      70 MHz DIV (HYB)                                      5             5
5.4.3      C-band RF SWO                                         5             5
5.4.4      5GHz SWO                                             20            20
5.4.5      IF SWO                                                5             5
5.4.6      IF PATCH                                             10            10
5.4.7      RF PATCH                                             15            15
5.4.8      19 inch Rack (TTC Converter rack)                     5             5

6.         S-BAND SUBSYSTEM
6.1        Antenna                                               5             5              5               5              5
6.2        FET LNA                                               5             5              5               5              5
6.3        20W SSPA                                              5             5              5               5              5
6.4        Up Converter                                          5             5              5               5              5
6.5        Down Converter                                        5             5              5               5              5
6.6        Others
6.6.1      2G PATCH                                             10            10             10              10             10
6.6.2      30 dB Coupler (LNA Input)                             5             5              5               5              5
6.6.3      IF   PATCH                                           10            10             10              10             10

7.         RFT O&M SUBSYSTEM
7.1        VDU
7.1.1      Server
7.1.1.1    Model D370/1 SMP Server                               2             2              2               2              2
7.1.1.2    128MB ECC Memory Module, D Class Servers              2             2              2               2              2
7.1.1.3    2 GB FWD SCSI-2 Hot Swap disk Drive                   2             2              2               2              2
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
                                                           SAN              SAN          SAN            NMC         NMC       TOTAL
ITEM NO.           DESCRIPTION                         FOR INDONESIA     FOR CHINA     FOR KOREA      PRIMARY     BACK-UP
                                                          (TYPE 2)        (TYPE 2)     (TYPE 1)

                                                       ----------------------------------------------------------------------------
                                                           Q'TY             Q'TY         Q'TY           Q'TY        Q'TY       Q'TY
-----------------------------------------------------------------------------------------------------------------------------------
<S>        <C>                                         <C>               <C>           <C>            <C>          <C>        <C>
5.         TTC UP/DOWN CONVERTER SUBSYSTEM
5.1        TTC Up Converter                                                                                                     60
5.2        TTC Down Converter                                                                                                   60
5.3        Crystal Oscillator for TT&C Converters                                                                               60
5.4        Others
5.4.1      RF DIV (HYB)                                                                                                         90
5.4.2      70 MHz DIV (HYB)                                                                                                     30
5.4.3      C-band RF SWO                                                                                                        30
5.4.4      5GHz SWO                                                                                                            120
5.4.5      IF SWO                                                                                                               30
5.4.6      IF PATCH                                                                                                             60
5.4.7      RF PATCH                                                                                                             90
5.4.8      19 inch Rack (TTC Converter rack)                                                                                    30

6.         S-BAND SUBSYSTEM
6.1        Antenna                                            5               5            5                                    60
6.2        FET LNA                                            5               5            5                                    60
6.3        20W SSPA                                           5               5            5                                    60
6.4        Up Converter                                       5               5            5                                    60
6.5        Down Converter                                     5               5            5                                    60
6.6        Others
6.6.1      2G PATCH                                          10              10           10                                   120
6.6.2      30 dB Coupler (LNA Input)                          5               5            5                                    60
6.6.3      IF   PATCH                                        10              10           10                                   120

7.         RFT O&M SUBSYSTEM
7.1        VDU
7.1.1      Server
7.1.1.1    Model D370/1 SMP Server                            2               2            2                                    24
7.1.1.2    128MB ECC Memory Module, D Class Servers           2               2            2                                    24
7.1.1.3    2 GB FWD SCSI-2 Hot Swap disk Drive                2               2            2                                    24
</TABLE>

                            Commercial in Confidence
<PAGE>   1267
RFT EQUIPMENT LIST

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
                                                               SAN         SAN          SAN FOR         SAN           SAN
ITEM NO.           DESCRIPTION                               FOR ICO-    FOR USA       AUSTRALIA    FOR GERMANY       FOR
                                                               NET       (TYPE 2)      (TYPE 1)       (TYPE 1)   SOUTH AFRICA
                                                                                                                    (TYPE 1)
                                                             ----------------------------------------------------------------
                                                               Q'TY       Q'TY           Q'TY          Q'TY          Q'TY
-----------------------------------------------------------------------------------------------------------------------------
<S>        <C>                                               <C>         <C>           <C>          <C>          <C>
7.1.1.4    4GB DDS DAT Drive with data compression                           2             2             2             2
7.1.1.5    2.88 MB floppy drive                                              2             2             2             2
7.1.1.6    Quad Speed 600MB CD-ROM Drive                                     2             2             2             2
7.1.2      HMI
7.1.2.1    HP VISUALIZE Mdl B132L w/ EG graphics                             2             2             2             2
7.1.2.2    128MB ECC memory module                                           2             2             2             2
7.1.2.3    FWD SCSI-2 card for B-class systems                               2             2             2             2
7.1.2.4    2GB disk drive, FWD SCSI-2 for B-class                            2             2             2             2
7.1.2.5    Fast CD-ROM drive for B-class systems                             2             2             2             2
7.1.2.6    1.4 MB floppy disk drive for B-class                              2             2             2             2
7.2        DAU                                                               6             6             6             6
7.3        UIC                                                               6             6             6             6
7.4        CUIN                                                              5             5             5             5
7.5        UIC (No charge)                                                   2             2

8.         OPTICAL FIBER IFL
8.1        Optical Fiber TX/RX Unit                                          1             1
           (1GHz and 70MHz  for signal IFL)
8.2        Optical LAN TX/RX Unit                                            1             1
8.3        Optical Fiber Modem                                               1             1
8.4        L-band AMP                                                        1             1
8.4.1      AMP for Optical Fiber IFL (2+1) for C-band Route                 10            10
8.4.2      AMP for Optical fiber IFL (1+1) for S-band Route                  2             2
8.5        IF Combiner/Divider Package                                       1             1
8.5.1      Rack                                                              2             2
8.5.2      1:6 IF COMB/DIV                                                   6             6
</TABLE>

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------------
                                                               SAN           SAN           SAN              SAN           SAN
ITEM NO.           DESCRIPTION                               FOR INDIA    FOR CHILE      FOR BRAZIL      FOR MEXICO     FOR UAE
                                                             (TYPE 2)     (TYPE 2)        (TYPE 2)        (TYPE 2)      (TYPE 2)

                                                             -------------------------------------------------------------------
                                                               Q'TY          Q'TY           Q'TY            Q'TY           Q'TY
--------------------------------------------------------------------------------------------------------------------------------
<S>        <C>                                               <C>          <C>            <C>             <C>            <C>
7.1.1.4    4GB DDS DAT Drive with data compression               2             2             2               2              2
7.1.1.5    2.88 MB floppy drive                                  2             2             2               2              2
7.1.1.6    Quad Speed 600MB CD-ROM Drive                         2             2             2               2              2
7.1.2      HMI
7.1.2.1    HP VISUALIZE Mdl B132L w/ EG graphics                 2             2             2               2              2
7.1.2.2    128MB ECC memory module                               2             2             2               2              2
7.1.2.3    FWD SCSI-2 card for B-class systems                   2             2             2               2              2
7.1.2.4    2GB disk drive, FWD SCSI-2 for B-class                2             2             2               2              2
7.1.2.5    Fast CD-ROM drive for B-class systems                 2             2             2               2              2
7.1.2.6    1.4 MB floppy disk drive for B-class                  2             2             2               2              2
7.2        DAU                                                   6             6             6               6              6
7.3        UIC                                                   6             6             6               6              6
7.4        CUIN                                                  5             5             5               5              5
7.5        UIC (No charge)                                                     2

8.         OPTICAL FIBER IFL
8.1        Optical Fiber TX/RX Unit                                            1
           (1GHz and 70MHz  for signal IFL)
8.2        Optical LAN TX/RX Unit                                              1
8.3        Optical Fiber Modem                                                 1
8.4        L-band AMP                                                          1
8.4.1      AMP for Optical Fiber IFL (2+1) for C-band Route                   10
8.4.2      AMP for Optical fiber IFL (1+1) for S-band Route                    2
8.5        IF Combiner/Divider Package                                         1
8.5.1      Rack                                                                2
8.5.2      1:6 IF COMB/DIV                                                     6
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
                                                                 SAN          SAN          SAN         NMC         NMC       TOTAL
ITEM NO.           DESCRIPTION                               FOR INDONESIA FOR CHINA     FOR KOREA   PRIMARY      BACK-UP
                                                                (Type 2)    (Type 2)     (Type 1)

                                                             ----------------------------------------------------------------------
                                                                 Q'TY         Q'TY         Q'TY        Q'TY        Q'TY       Q'TY
-----------------------------------------------------------------------------------------------------------------------------------
<S>        <C>                                               <C>           <C>           <C>         <C>          <C>        <C>
7.1.1.4    4GB DDS DAT Drive with data compression                 2           2             2                                 24
7.1.1.5    2.88 MB floppy drive                                    2           2             2                                 24
7.1.1.6    Quad Speed 600MB CD-ROM Drive                           2           2             2                                 24
7.1.2      HMI
7.1.2.1    HP VISUALIZE Mdl B132L w/ EG graphics                   2           2             2                                 24
7.1.2.2    128MB ECC memory module                                 2           2             2                                 24
7.1.2.3    FWD SCSI-2 card for B-class systems                     2           2             2                                 24
7.1.2.4    2GB disk drive, FWD SCSI-2 for B-class                  2           2             2                                 24
7.1.2.5    Fast CD-ROM drive for B-class systems                   2           2             2                                 24
7.1.2.6    1.4 MB floppy disk drive for B-class                    2           2             2                                 24
7.2        DAU                                                     6           6             6                                 72
7.3        UIC                                                     6           6             6                                 72
7.4        CUIN                                                    5           5             5                                 60
7.5        UIC (No charge)                                                                                                      6

8.         OPTICAL FIBER IFL
8.1        Optical Fiber TX/RX Unit                                                                                             3
           (1GHz and 70MHz  for signal IFL)
8.2        Optical LAN TX/RX Unit                                                                                               3
8.3        Optical Fiber Modem                                                                                                  3
8.4        L-band AMP                                                                                                           3
8.4.1      AMP for Optical Fiber IFL (2+1) for C-band Route                                                                    30
8.4.2      AMP for Optical fiber IFL (1+1) for S-band Route                                                                     6
8.5        IF Combiner/Divider Package                                                                                          3
8.5.1      Rack                                                                                                                 6
8.5.2      1:6 IF COMB/DIV                                                                                                     18
</TABLE>

                            Commercial in Confidence
<PAGE>   1268
RFT EQUIPMENT LIST

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
                                                               SAN         SAN           SAN           SAN            SAN
ITEM NO.           DESCRIPTION                               FOR ICO-    FOR USA         FOR        FOR GERMANY       FOR
                                                               NET       (TYPE 2)      AUSTRALIA      (TYPE 1)   SOUTH AFRICA
                                                                                       (TYPE 1)                     (TYPE 1)
                                                             ----------------------------------------------------------------
                                                               Q'TY       Q'TY           Q'TY          Q'TY          Q'TY
-----------------------------------------------------------------------------------------------------------------------------
<S>        <C>                                               <C>         <C>           <C>          <C>          <C>
9.         REFERENCE CLOCK DISTRIBUTION
9.1        10 MHz Reference Clock Distribution                                5             5             5             5
9.2        Time Code Generator                                                5             5             5             5

10.        TEST TRANSLATOR                                                    5             5             5             5

11.        RFT Simulator Subsystem
11.1        VDU                                                  1
11.2        Simulator Function                                   1

12.        TEST EQUIPMENT

12.1       RF Signal Generator                                   6
12.2       IF Coaxial Hybrid                                                  1             1             1             1
12.3       Wave Guide Circuit                                    6
12.4       Low Loss Cables                                                    1             1             1             1
12.5       Other miscellaneous equipment                                      1             1             1             1
12.6       Directional Bridge                                                 1             1             1             1
12.7       Power Sensor for Power Meter                                       1             1             1             1
12.8       Analogue Oscilloscope                                              1             1             1             1
12.9       Chart Recorder (4-pen)                                             1             1             1             1
12.10      Crystal Detector                                                   1             1             1             1
12.11      Coaxial Coupler (960 - 1,900 MHz)                                  1             1             1             1
12.12      Coaxial Coupler (1.7 - 12.4 GHz)                                   1             1             1             1
12.13      HP-IB/ Centronics Bus Converter                                    1             1             1             1
12.14      HP-IB Cable                                                        1             1             1             1
12.15      HP IEEE-1284 A-B Parallel Cable                                    1             1             1             1
</TABLE>

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------------
                                                               SAN           SAN           SAN              SAN           SAN
ITEM NO.           DESCRIPTION                               FOR INDIA    FOR CHILE      FOR BRAZIL      FOR MEXICO     FOR UAE
                                                             (TYPE 2)     (TYPE 2)        (TYPE 2)        (TYPE 2)      (TYPE 2)

                                                             -------------------------------------------------------------------
                                                               Q'TY          Q'TY           Q'TY            Q'TY           Q'TY
--------------------------------------------------------------------------------------------------------------------------------
<S>        <C>                                               <C>          <C>            <C>             <C>            <C>
9.         REFERENCE CLOCK DISTRIBUTION
9.1        10 MHz Reference Clock Distribution                    5             5             5               5              5
9.2        Time Code Generator                                    5             5             5               5              5

10.        TEST TRANSLATOR                                        5             5             5               5              5

11.        RFT Simulator Subsystem
11.1        VDU
11.2        Simulator Function

12.        TEST EQUIPMENT

12.1       RF Signal Generator
12.2       IF Coaxial Hybrid                                      1             1             1               1              1
12.3       Wave Guide Circuit
12.4       Low Loss Cables                                        1             1             1               1              1
12.5       Other miscellaneous equipment                          1             1             1               1              1
12.6       Directional Bridge                                     1             1             1               1              1
12.7       Power Sensor for Power Meter                           1             1             1               1              1
12.8       Analogue Oscilloscope                                  1             1             1               1              1
12.9       Chart Recorder (4-pen)                                 1             1             1               1              1
12.10      Crystal Detector                                       1             1             1               1              1
12.11      Coaxial Coupler (960 - 1,900 MHz)                      1             1             1               1              1
12.12      Coaxial Coupler (1.7 - 12.4 GHz)                       1             1             1               1              1
12.13      HP-IB/ Centronics Bus Converter                        1             1             1               1              1
12.14      HP-IB Cable                                            1             1             1               1              1
12.15      HP IEEE-1284 A-B Parallel Cable                        1             1             1               1              1
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
                                                           SAN              SAN          SAN            NMC         NMC       TOTAL
ITEM NO.           DESCRIPTION                         FOR INDONESIA     FOR CHINA     FOR KOREA      PRIMARY      BACK-UP
                                                          (TYPE 2)        (TYPE 2)     (TYPE 1)

                                                       ----------------------------------------------------------------------------
                                                           Q'TY             Q'TY         Q'TY           Q'TY        Q'TY       Q'TY
-----------------------------------------------------------------------------------------------------------------------------------
<S>        <C>                                         <C>               <C>           <C>            <C>          <C>        <C>
9.         REFERENCE CLOCK DISTRIBUTION
9.1        10 MHz Reference Clock Distribution                5               5            5                                     60
9.2        Time Code Generator                                5               5            5                                     60

10.        TEST TRANSLATOR                                    5               5            5                                     60

11.        RFT Simulator Subsystem
11.1        VDU                                                                                                                   1
11.2        Simulator Function                                                                                                    1

12.        TEST EQUIPMENT

12.1       RF Signal Generator                                                                                                    6
12.2       IF Coaxial Hybrid                                  1               1            1                                     12
12.3       Wave Guide Circuit                                                                                                     6
12.4       Low Loss Cables                                    1               1            1                                     12
12.5       Other miscellaneous equipment                      1               1            1                                     12
12.6       Directional Bridge                                 1               1            1                                     12
12.7       Power Sensor for Power Meter                       1               1            1                                     12
12.8       Analogue Oscilloscope                              1               1            1                                     12
12.9       Chart Recorder (4-pen)                             1               1            1                                     12
12.10      Crystal Detector                                   1               1            1                                     12
12.11      Coaxial Coupler (960 - 1,900 MHz)                  1               1            1                                     12
12.12      Coaxial Coupler (1.7 - 12.4 GHz)                   1               1            1                                     12
12.13      HP-IB/ Centronics Bus Converter                    1               1            1                                     12
12.14      HP-IB Cable                                        1               1            1                                     12
12.15      HP IEEE-1284 A-B Parallel Cable                    1               1            1                                     12
</TABLE>

                            Commercial in Confidence
<PAGE>   1269
\RFT EQUIPMENT LIST

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
                                                               SAN         SAN           SAN           SAN            SAN
ITEM NO.           DESCRIPTION                               FOR ICO-    FOR USA         FOR         FOR GERMANY      FOR
                                                               NET       (TYPE 2)      AUSTRALIA      (TYPE 1)    SOUTH AFRICA
                                                                                       (TYPE 1)                     (TYPE 1)
                                                             ----------------------------------------------------------------
                                                               Q'TY       Q'TY           Q'TY          Q'TY          Q'TY
-----------------------------------------------------------------------------------------------------------------------------
<S>        <C>                                               <C>         <C>           <C>          <C>          <C>
13.        INSTALLATION MATERIALS                                           1               1             1            1

14.        SHELTERS AND RELATED FACILITIES
14.1       Shelter                                                          5               5             5            5
14.2       Cooling Cabinet Shelter(for Mexico)
14.3       Expansion of A/C in Shelter(for Mexico)
14.4       Additional Ventilation(for USA, Germany &
             Korea)                                                         5                             5
14.5       Dust Proof facilities

15.        DOCUMENTATION                                         1

16.        CE-MARKS
16.1       Hardware Modification                                                            1             1
16.2       License Registration Fee                                                         1             1

17         SPARE
17.1       Antenna Tracking Modules                                         1               1             1            1
17.2       Antenna Feed Horn Cover                                          1               1             1            1
17.3       C-Band FET LNA Unit                                   2
17.4       LNA Power Supply                                      2
17.5       TWT Tube                                              4
17.6       HPA Spare Parts & Panels                              2
17.7       PS Module for TX/RX Path Selector                     2
17.8       PS Module for SWO                                     2
17.9       C-band Up Converter                                   5
17.10      Pilot Generator                                       4
17.11      C-band Down Converter                                 5
17.12      AFC equipment                                         2
17.13      7G/70MHz D/C                                          2
</TABLE>

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------------
                                                               SAN           SAN           SAN              SAN           SAN
ITEM NO.           DESCRIPTION                               FOR INDIA    FOR CHILE      FOR BRAZIL      FOR MEXICO     FOR UAE
                                                             (TYPE 2)     (TYPE 2)        (TYPE 2)        (TYPE 2)      (TYPE 2)

                                                             -------------------------------------------------------------------
                                                               Q'TY          Q'TY           Q'TY            Q'TY           Q'TY
--------------------------------------------------------------------------------------------------------------------------------
<S>        <C>                                               <C>          <C>            <C>             <C>            <C>
13.        INSTALLATION MATERIALS                                1             1              1               1              1

14.        SHELTERS AND RELATED FACILITIES
14.1       Shelter                                               5             5              5               5              5
14.2       Cooling Cabinet Shelter(for Mexico)                                                                5
14.3       Expansion of A/C in Shelter(for Mexico)                                                            5
14.4       Additional Ventilation(for USA, Germany &
             Korea)
14.5       Dust Proof facilities                                                                                             5

15.        DOCUMENTATION

16.        CE-MARKS
16.1       Hardware Modification
16.2       License Registration Fee

17         SPARE
17.1       Antenna Tracking Modules                              1             1              1               1              1
17.2       Antenna Feed Horn Cover                               1             1              1               1              1
17.3       C-Band FET LNA Unit
17.4       LNA Power Supply
17.5       TWT Tube
17.6       HPA Spare Parts & Panels
17.7       PS Module for TX/RX Path Selector
17.8       PS Module for SWO
17.9       C-band Up Converter
17.10      Pilot Generator
17.11      C-band Down Converter
17.12      AFC equipment
17.13      7G/70MHz D/C
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
                                                           SAN              SAN          SAN            NMC         NMC       TOTAL
ITEM NO.           DESCRIPTION                         FOR INDONESIA     FOR CHINA     FOR KOREA      PRIMARY      BACK-UP
                                                          (TYPE 2)        (TYPE 2)     (TYPE 1)

                                                       ----------------------------------------------------------------------------
                                                           Q'TY             Q'TY         Q'TY           Q'TY        Q'TY       Q'TY
-----------------------------------------------------------------------------------------------------------------------------------
<S>        <C>                                         <C>               <C>           <C>            <C>          <C>        <C>
13.        INSTALLATION MATERIALS                            1                1            1                                     12

14.        SHELTERS AND RELATED FACILITIES
14.1       Shelter                                           5                5            5                                     60
14.2       Cooling Cabinet Shelter(for Mexico)                                                                                    5
14.3       Expansion of A/C in Shelter(for Mexico)                                                                                5
14.4       Additional Ventilation(for USA, Germany &
             Korea)                                                                        5                                     15
14.5       Dust Proof facilities                                                                                                  5

15.        DOCUMENTATION                                                                                                          1

16.        CE-MARKS
16.1       Hardware Modification                                                                                                  2
16.2       License Registration Fee                                                                                               2

17         SPARE
17.1       Antenna Tracking Modules                          1                1            1                                     12
17.2       Antenna Feed Horn Cover                           1                1            1                                     12
17.3       C-Band FET LNA Unit                                                                                                    2
17.4       LNA Power Supply                                                                                                       2
17.5       TWT Tube                                                                                                               4
17.6       HPA Spare Parts & Panels                                                                                               2
17.7       PS Module for TX/RX Path Selector                                                                                      2
17.8       PS Module for SWO                                                                                                      2
17.9       C-band Up Converter                                                                                                    5
17.10      Pilot Generator                                                                                                        4
17.11      C-band Down Converter                                                                                                  5
17.12      AFC equipment                                                                                                          2
17.13      7G/70MHz D/C                                                                                                           2
</TABLE>

                            Commercial in Confidence
<PAGE>   1270
RFT EQUIPMENT LIST

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
                                                               SAN         SAN           SAN           SAN            SAN
Item No.           Description                               For ICO-    For USA    For Australia   For Germany       For
                                                               NET       (Type 2)      (Type 1)       (Type 1)   South Africa
                                                                                                                    (Type 1)
                                                             ----------------------------------------------------------------
                                                               Q'ty       Q'ty           Q'ty          Q'ty          Q'ty
-----------------------------------------------------------------------------------------------------------------------------
<S>        <C>                                               <C>         <C>           <C>          <C>          <C>
17.14      1G/70MHz U/C                                          5
17.15      1G/70MHz D/C                                          5
17.16       PC (CPU only)                                                   1               1             1             1
17.17       PS Module for LINE AMP                               2
17.18      Time Code Generator                                              1               1             1             1
17.19      TTC Up Converter with Crystal OSC.                    2
17.20      TTC Down Converter with Crystal OSC.                  2
17.21      S-band FET LNA                                        2
17.22      S-band 20W SSPA                                       2
17.23      S-band Up Converter                                   2
17.24      S-band Down Converter                                 2
17.25      VDU                                                              1               1             1             1
17.26      DAU                                                              1               1             1             1
17.27      UIC                                                              1               1             1             1
17.28      AFC (CUIN) -PC                                                   1               1             1             1
17.29      10 MHz Reference Clock Distribution                              1               1             1             1
17.30      EIRP C&M                                                         1               1             1             1
17.31      Optical Fiber TX / RX Unit                            2
17.32      Module for Deicing Facility                           2

18         Axial Ratio Improvement for IOT/ 2 RFT
19         Remote Maintenance System from Japan /SAN             1
           (Communication Fee Charged, separately)
20         Band Pass Filter at LNA Input                                    1               1             1             1
21         Air Conditioner Expansion in IOT Center Hub
</TABLE>

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------------
                                                               SAN           SAN           SAN              SAN           SAN
Item No.           Description                               For India    For Chile      For Brazil      For Mexico     For UAE
                                                             (Type 2)     (Type 2)        (Type 2)        (Type 2)      (Type 2)

                                                             -------------------------------------------------------------------
                                                               Q'ty          Q'ty           Q'ty            Q'ty           Q'ty
--------------------------------------------------------------------------------------------------------------------------------
<S>        <C>                                               <C>          <C>            <C>             <C>            <C>
17.14      1G/70MHz U/C
17.15      1G/70MHz D/C                                                                       1               1              1
17.16       PC (CPU only)                                        1             1
17.17       PS Module for LINE AMP                                                            1               1              1
17.18      Time Code Generator                                   1             1
17.19      TTC Up Converter with Crystal OSC.
17.20      TTC Down Converter with Crystal OSC.
17.21      S-band FET LNA
17.22      S-band 20W SSPA
17.23      S-band Up Converter
17.24      S-band Down Converter
17.25      VDU                                                   1             1              1               1              1
17.26      DAU                                                   1             1              1               1              1
17.27      UIC                                                   1             1              1               1              1
17.28      AFC (CUIN) -PC                                        1             1              1               1              1
17.29      10 MHz Reference Clock Distribution                   1             1              1               1              1
17.30      EIRP C&M                                              1             1              1               1              1
17.31      Optical Fiber TX / RX Unit
17.32      Module for Deicing Facility

18         Axial Ratio Improvement for IOT/ 2 RFT                1
19         Remote Maintenance System from Japan /SAN
           (Communication Fee Charged, separately)
20         Band Pass Filter at LNA Input                         1             1              1               1              1
21         Air Conditioner Expansion in IOT Center Hub           1
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
                                                           SAN              SAN          SAN            NMC         NMC       TOTAL
Item No.           Description                         For Indonesia     For China     For Korea      Primary     Back-up
                                                          (Type 2)        (Type 2)     (Type 1)

                                                       ----------------------------------------------------------------------------
                                                           Q'ty             Q'ty         Q'ty           Q'ty        Q'ty       Q'ty
-----------------------------------------------------------------------------------------------------------------------------------
<S>        <C>                                         <C>               <C>           <C>            <C>          <C>        <C>
17.14      1G/70MHz U/C                                                                                                           5
17.15      1G/70MHz D/C                                      1                1            1                                      5
17.16       PC (CPU only)                                                                                                        12
17.17       PS Module for LINE AMP                           1                1            1                                      2
17.18      Time Code Generator                                                                                                   12
17.19      TTC Up Converter with Crystal OSC.                                                                                     2
17.20      TTC Down Converter with Crystal OSC.                                                                                   2
17.21      S-band FET LNA                                                                                                         2
17.22      S-band 20W SSPA                                                                                                        2
17.23      S-band Up Converter                                                                                                    2
17.24      S-band Down Converter                             1                1            1                                      2
17.25      VDU                                               1                1            1                                     12
17.26      DAU                                               1                1            1                                     12
17.27      UIC                                               1                1            1                                     12
17.28      AFC (CUIN) -PC                                    1                1            1                                     12
17.29      10 MHz Reference Clock Distribution               1                1            1                                     12
17.30      EIRP C&M                                                                                                              12
17.31      Optical Fiber TX / RX Unit                                                                                             2
17.32      Module for Deicing Facility                                                                                            2

18         Axial Ratio Improvement for IOT/ 2 RFT                                                                                 1
                                                                                                                                  1
19         Remote Maintenance System from Japan /SAN
           (Communication Fee Charged, separately)
20         Band Pass Filter at LNA Input                     1                1            1                                     12
21         Air Conditioner Expansion in IOT Center Hub                                                                            1
</TABLE>

                            Commercial in Confidence
<PAGE>   1271
RFT EQUIPMENT LIST

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
                                                               SAN         SAN           SAN           SAN            SAN
Item No.           Description                               For ICO-    For USA       Australia    For Germany       For
                                                               NET       (Type 2)      (Type 1)       (Type 1)   South Africa
                                                                                                                    (Type 1)
                                                             ----------------------------------------------------------------
                                                               Q'ty       Q'ty           Q'ty          Q'ty          Q'ty
-----------------------------------------------------------------------------------------------------------------------------
<S>        <C>                                               <C>         <C>           <C>          <C>          <C>
III        SOFTWARE LICENCE

1          Oracle RDBMS for RFT O&M/simulator                    1           1             1             1             1

V          OPTION

1.         Shelter Option (180 days option)
1.1        Salt Defense for Shelter (per Shelter)                1
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------------
                                                               SAN           SAN           SAN              SAN           SAN
Item No.           Description                               For India    For Chile      For Brazil      For Mexico     For UAE
                                                             (Type 2)     (Type 2)        (Type 2)        (Type 2)      (Type 2)

                                                             -------------------------------------------------------------------
                                                               Q'ty          Q'ty           Q'ty            Q'ty           Q'ty
--------------------------------------------------------------------------------------------------------------------------------
<S>        <C>                                               <C>          <C>            <C>             <C>            <C>
III        SOFTWARE LICENCE

1          Oracle RDBMS for RFT O&M/simulator                     1            1              1                1             1

V          OPTION

1.         Shelter Option (180 days option)
1.1        Salt Defense for Shelter (per Shelter)
--------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------------
                                                       SAN              SAN          SAN            NMC         NMC       TOTAL
Item No.           Description                     For Indonesia     For China     For Korea      Primary      Backup
                                                      (Type 2)        (Type 2)     (Type 1)

                                                   ------------------------------------------------------------------------------
                                                       Q'ty             Q'ty         Q'ty           Q'ty        Q'ty       Q'ty
---------------------------------------------------------------------------------------------------------------------------------
<S>        <C>                                     <C>               <C>           <C>            <C>          <C>        <C>
III        SOFTWARE LICENCE

1          Oracle RDBMS for RFT O&M/simulator            1                1            1                                     13

V          OPTION

1.         Shelter Option (180 days option)
1.1        Salt Defense for Shelter (per Shelter)                                                                             1
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>

                            Commercial in Confidence

<PAGE>   1272
SBS EQUIPMENT LIST

<TABLE>
<CAPTION>
                                                                          SAN       SAN         SAN
                                                    SAN       SAN         For       For      For South      SAN         SAN
Item No.            Description                   For ICO-   For USA    Australia  Germany     Africa    For India   For Chile
                                                    NET      (Type 2)   (Type 1)   (Type 1)  (Type 1)     (Type 2)   (Type 2)
                                               ---------------------------------------------------------------------------------
                                                  Qty./MMs   Qty./MMs   Qty./MMs   Qty./MMs   Qty./MMs   Qty./MMs    Qty./MMs
--------------------------------------------------------------------------------------------------------------------------------

<S>          <C>                               <C>           <C>        <C>        <C>       <C>         <C>         <C>
II.          HARDWARE

1            CHANNEL UNIT
1.1          Channel Unit Chassis (CUC)                            18         18         30        26          30          22
1.1.1        Slot Processor Module (SPM)                           90         90        150       130         150         110
1.1.2        Modulator Demodulator Module (MDM)                   162        162        270       234         270         198
1.1.3        Burst Repeater Module   (BRM)                         20         20         20        20          20          20
1.1.4        Clock Distribution Unit (CDM)                         14         14         22        22          22          18
1.1.5        Common Functions Module (CFM)                         24         24         48        40          48          32
1.2          Channel Unit Rack Base Units                           7          7         11        11          11           9
1.2.1        T1 Cables                                             36         36         60        52          60          44
1.2.2        Software Licences                                     18         18         30        26          30          22
1.2.3        Fan Tray                                              18         18         30        26          30          22

2            CHANNEL MANAGER
2.1          Channel Manager Chassis (ChM)                          3          3          6         5           6           4
2.1.1        G.703 Interface                                       27         27         54        45          54          36
2.1.2        Control Processor Modules (CPM)                       33         33         66        55          66          44
2.1.3        Switching Transcoder Module (STM)                     63         63        126       105         126          84
2.1.4        EXM                                                    9          9         18        15          18          12
2.1.5        10 Base2 Ethernet                                      3          3          6         5           6           4
2.1.6        Fan                                                    3          3          6         5           6           4
2.1.7        Channel Manager Rack (CMR)                             1          1          2         2           2           2
2.1.8        Software Licences                                      3          3          6         5           6           4

3            DISTRIBUTION RACKS
3.1          IF Distribution Subsystem (IDS)                        1          1          1         1           1           1
3.1.1        SBS Distribution Racks, Tx and Rx                      4          4          4         4           4           4
3.1.2        IDS Expansion Kits                                     0          0          3         2           3           1
3.2          Clock Distribution Subsystem (CDS)                     1          1          1         1           1           1
3.2.1        GPS Receiver w/ Rb Oscillator                          2          2          2         2           2           2
3.2.2        10 MHz Outputs (SBS)                            Multiple   Multiple   Multiple   Multiple   Multiple    Multiple
3.2.3        GPS Time Code Outputs (SBS)                     Multiple   Multiple   Multiple   Multiple   Multiple    Multiple
3.2.4        Network Time Server (NTS)                              2          2          2         2           2           2
3.2.5        CDS Expansion Kit                                      0          0          3         2           3           1
</TABLE>

<TABLE>
<CAPTION>
                                                                                         SAN
                                                   SAN          SAN         SAN          For          SAN          SAN
Item No.            Description                 For Brazil   For Mexico   For UAE     Indonesia    For China    For Korea
                                                 (Type 2)      (Type 2)   (Type 2)     (Type 2)     (Type 2)     (Type 1)
                                               -------------------------------------------------------------------------------
                                                Qty./MMs      Qty./MMs     Qty./MMs   Qty./MMs      Qty./MMs     Qty./MMs
------------------------------------------------------------------------------------------------------------------------------
<S>          <C>                                <C>          <C>          <C>         <C>          <C>          <C>
II.          HARDWARE

1            CHANNEL UNIT
1.1          Channel Unit Chassis (CUC)                 30           26          30          26          22            22
1.1.1        Slot Processor Module (SPM)               150          130         150         130         110           110
1.1.2        Modulator Demodulator Module (MDM)        270          234         270         234         198           198
1.1.3        Burst Repeater Module   (BRM)              20           20          20          20          20            20
1.1.4        Clock Distribution Unit (CDM)              22           22          22          22          18            18
1.1.5        Common Functions Module (CFM)              48           40          48          40          32            32
1.2          Channel Unit Rack Base Units               11           11          11          11           9             9
1.2.1        T1 Cables                                  60           62          60          52          44            44
1.2.2        Software Licences                          30           26          30          26          22            22
1.2.3        Fan Tray                                   30           26          30          26          22            22

2            CHANNEL MANAGER
2.1          Channel Manager Chassis (ChM)               6            5           6           5           4             4
2.1.1        G.703 Interface                            54           45          54          45          36            36
2.1.2        Control Processor Modules (CPM)            66           55          66          55          44            44
2.1.3        Switching Transcoder Module (STM)         126          105         126         105          84            84
2.1.4        EXM                                        18           15          18          15          12            12
2.1.5        10 Base2 Ethernet                           6            5           6           5           4             4
2.1.6        Fan                                         6            5           5           5           4             4
2.1.7        Channel Manager Rack (CMR)                  2            2           2           2           2             2
2.1.8        Software Licences                           6            5           6           5           4             4

3            DISTRIBUTION RACKS
3.1          IF Distribution Subsystem (IDS)             1            1           1           1           1             1
3.1.1        SBS Distribution Racks, Tx and Rx           4            4           4           4           4             4
3.1.2        IDS Expansion Kits                          3            2           3           2           1             1
3.2          Clock Distribution Subsystem (CDS)          1            1           1           1           1             1
3.2.1        GPS Receiver w/ Rb Oscillator               2            2           2           2           2             2
3.2.2        10 MHz Outputs (SBS)                 Multiple     Multiple    Multiple    Multiple    Multiple      Multiple
3.2.3        GPS Time Code Outputs (SBS)          Multiple     Multiple    Multiple    Multiple    Multiple      Multiple
3.2.4        Network Time Server (NTS)                   2            2           2           2           2             2
3.2.5        CDS Expansion Kit                           3            2           3           2           1             1
</TABLE>

<TABLE>
<CAPTION>
                                                      NMC         NMC      TOTAL
Item No.            Description                     Primary     Back-up

                                               -----------------------------------
                                                    Qty./MMs    Qty./MMs
----------------------------------------------------------------------------------
<S>          <C>                                    <C>         <C>        <C>
II.          HARDWARE

1            CHANNEL UNIT
1.1          Channel Unit Chassis (CUC)                                         300
1.1.1        Slot Processor Module (SPM)                                      1,500
1.1.2        Modulator Demodulator Module (MDM)                               2,700
1.1.3        Burst Repeater Module   (BRM)                                      240
1.1.4        Clock Distribution Unit (CDM)                                      236
1.1.5        Common Functions Module (CFM)                                      456
1.2          Channel Unit Rack Base Units                                       118
1.2.1        T1 Cables                                                          600
1.2.2        Software Licences                                                  300
1.2.3        Fan Tray                                                           300

2            CHANNEL MANAGER
2.1          Channel Manager Chassis (ChM)                                       57
2.1.1        G.703 Interface                                                    513
2.1.2        Control Processor Modules (CPM)                                    627
2.1.3        Switching Transcoder Module (STM)                                1,197
2.1.4        EXM                                                                171
2.1.5        10 Base2 Ethernet                                                   57
2.1.6        Fan                                                                 57
2.1.7        Channel Manager Rack (CMR)                                          22
2.1.8        Software Licences                                                   57

3            DISTRIBUTION RACKS
3.1          IF Distribution Subsystem (IDS)                                     12
3.1.1        SBS Distribution Racks, Tx and Rx                                   48
3.1.2        IDS Expansion Kits                                                  21
3.2          Clock Distribution Subsystem (CDS)                                  12
3.2.1        GPS Receiver w/ Rb Oscillator                                       24
3.2.2        10 MHz Outputs (SBS)                                          Multiple
3.2.3        GPS Time Code Outputs (SBS)                                   Multiple
3.2.4        Network Time Server (NTS)                                           24
3.2.5        CDS Expansion Kit                                                   21
</TABLE>

<PAGE>   1273

SBS EQUIPMENT LIST

<TABLE>
<CAPTION>
                                                                          SAN       SAN         SAN
                                                    SAN       SAN         For       For      For South      SAN         SAN
Item No.            Description                   For ICO-   For USA    Australia  Germany     Africa    For India   For Chile
                                                    NET      (Type 2)   (Type 1)  (Type 1)   (Type 1)     (Type 2)   (Type 2)
                                               ---------------------------------------------------------------------------------
                                                  Qty./MMs   Qty./MMs   Qty./MMs   Qty./MMs   Qty./MMs   Qty./MMs    Qty./MMs
--------------------------------------------------------------------------------------------------------------------------------
<S>          <C>                                  <C>        <C>        <C>        <C>       <C>         <C>         <C>
4            INSTALLATION MATERIALS (INCLS
              POWER/SIGNAL CABLES)
4.1          Power Cables                                          42         42         42         42          42       42
4.2          I/F Cables                                            48         48         48         48          48       48
4.3          LAN Cables                                            28         28         28         28          28       28
4.4          Sync Cabling                                          60         60         60         60          60       60

5            SBS OMC
5.1          SUN Ultra 2 Server                                     1          1          1          1           1        1
5.2          LEX-OPTRA Printer                                      1          1          1          1           1        1
5.3          SUN Ultra 1 workstation                                1          1          1          1           1        1
5.4          Oracle Relational DBMS                                 1          1          1          1           1        1
5.5          SUN Solstice Enterprise Manager                        1          1          1          1           1        1

6            LOCAL SRMS
6.1          SUN File Server (E5000 Series)                         2          2          2          2           2        2
6.2          Mirror Disk Drives (included in
              E5000 Servers)
6.3          Rack (included in E5000 Servers)
6.4          Operating system software license
              for E5000 Server                                      1          1          1          1           1        1

7            TEST FIXTURES / TEST EQUIPMENT                         *                                            *
             (* ; Equipment will be used during
              the test period at the HNS
              facilities in India & USA and not
              at the SAN sites.)
7.1          Channel Unit
7.1.1        CUBS                                                  54                                           32
7.1.2        Channel Unit Chassis (CUC)                            12                                            7
7.1.3        Slot Processor Module (SPM)                           60                                           35
7.1.4        Modulator Distribution Module
             (MDM)                                                108                                           63
7.1.5        Clock Distribution Unit                               12                                            7
7.1.6        Common Functions Module (CFM)                         24                                           14
7.1.7        Channel Unit Rack Base Units                           4                                            3
7.1.8        T1 Cables                                             24                                           14
7.1.9        Base Components
7.1.10       Fan Trays
7.1.11       Misc pins, circuit breakers,
              connectors
</TABLE>

SBS EQUIPMENT LIST

<TABLE>
<CAPTION>
                                                                                             SAN
                                                       SAN          SAN         SAN          For          SAN          SAN
Item No.            Description                     For Brazil   For Mexico   For UAE     Indonesia    For China    For Korea
                                                     (Type 2)      (Type 2)   (Type 2)    (Type 2)     (Type 2)     (Type 1)
                                               ----------------------------------------------------------------------------------
                                                    Qty./MMs      Qty./MMs     Qty./MMs   Qty./MMs      Qty./MMs     Qty./MMs
---------------------------------------------------------------------------------------------------------------------------------
<S>          <C>                                    <C>          <C>          <C>         <C>          <C>          <C>
4            INSTALLATION MATERIALS (INCLS
              POWER/SIGNAL CABLES)
4.1          Power Cables                                  42           42          42          42           42           42
4.2          I/F Cables                                    48           48          48          48           48           48
4.3          LAN Cables                                    28           28          28          28           28           28
4.4          Sync Cabling                                  60           60          60          60           60           60

5            SBS OMC
5.1          SUN Ultra 2 Server                             1            1           1           1            1            1
5.2          LEX-OPTRA Printer                              1            1           1           1            1            1
5.3          SUN Ultra 1 workstation                        1            1           1           1            1            1
5.4          Oracle Relational DBMS                         1            1           1           1            1            1
5.5          SUN Solstice Enterprise Manager                1            1           1           1            1            1

6            LOCAL SRMS
6.1          SUN File Server (E5000 Series)                 2            2           2           2            2            2
6.2          Mirror Disk Drives (included in
              E5000 Servers)
6.3          Rack (included in E5000 Servers)
6.4          Operating system software license
              for E5000 Server                              1            1           1           1            1            1

7            TEST FIXTURES / TEST EQUIPMENT
             (* ; Equipment will be used during
              the test period at the HNS
              facilities in India & USA and not
              at the SAN sites.)
7.1          Channel Unit
7.1.1        CUBS
7.1.2        Channel Unit Chassis (CUC)
7.1.3        Slot Processor Module (SPM)
7.1.4        Modulator Distribution Module
             (MDM)
7.1.5        Clock Distribution Unit
7.1.6        Common Functions Module (CFM)
7.1.7        Channel Unit Rack Base Units
7.1.8        T1 Cables
7.1.9        Base Components
7.1.10       Fan Trays
7.1.11       Misc pins, circuit breakers,
              connectors
</TABLE>

SBS EQUIPMENT LIST

<TABLE>
<CAPTION>
                                                      NMC         NMC       TOTAL
Item No.            Description                     Primary     Back-up

                                               -----------------------------------
                                                    Qty./MMs    Qty./MMs
----------------------------------------------------------------------------------
<S>          <C>                                    <C>         <C>         <C>
4            INSTALLATION MATERIALS (INCLS
              POWER/SIGNAL CABLES)
4.1          Power Cables                                                     504
4.2          I/F Cables                                                       576
4.3          LAN Cables                                                       336
4.4          Sync Cabling                                                     720

5            SBS OMC
5.1          SUN Ultra 2 Server                                                12
5.2          LEX-OPTRA Printer                                                 12
5.3          SUN Ultra 1 workstation                                           12
5.4          Oracle Relational DBMS                                            12
5.5          SUN Solstice Enterprise Manager                                   12

6            LOCAL SRMS
6.1          SUN File Server (E5000 Series)                                    24
6.2          Mirror Disk Drives (included in
              E5000 Servers)
6.3          Rack (included in E5000 Servers)
6.4          Operating system software license
              for E5000 Server                                                 12

7            TEST FIXTURES / TEST EQUIPMENT
             (* ; Equipment will be used during
              the test period at the HNS
              facilities in India & USA and not
              at the SAN sites.)
7.1          Channel Unit
7.1.1        CUBS                                                              86
7.1.2        Channel Unit Chassis (CUC)                                        19
7.1.3        Slot Processor Module (SPM)                                       95
7.1.4        Modulator Distribution Module
             (MDM)                                                            171
7.1.5        Clock Distribution Unit                                           19
7.1.6        Common Functions Module (CFM)                                     38
7.1.7        Channel Unit Rack Base Units                                       7
7.1.8        T1 Cables                                                         38
7.1.9        Base Components
7.1.10       Fan Trays
7.1.11       Misc pins, circuit breakers,
              connectors
</TABLE>

<PAGE>   1274

SBS EQUIPMENT LIST

<TABLE>
<CAPTION>
                                                    SAN       SAN         SAN       SAN         SAN         SAN         SAN
Item No.            Description                   For ICO-   For USA      For       For      For South   For India   For Chile
                                                    NET      (Type 2)   Australia  Germany     Africa     (Type 2)   (Type 2)
                                                                         (Type 1)  (Type 1)   (Type 1)
                                               ---------------------------------------------------------------------------------
                                                  Qty./MMs   Qty./MMs   Qty./MMs   Qty./MMs   Qty./MMs   Qty./MMs    Qty./MMs
--------------------------------------------------------------------------------------------------------------------------------
<S>       <C>                                     <C>        <C>        <C>        <C>       <C>         <C>         <C>
7.2       Channel Manager
7.2.1     Channel Manager Chassis (ChM)                             2                                           2
7.2.2     G.703 Interface                                          26                                          26
7.2.3     Control Processor Modules (CPM)                          26                                          26
7.2.4     Channel Access Processor (CAP)                           10                                          10
7.2.5     Channel Control Processor (CCP)                           8                                           8
7.2.6     Global Resource Processor (GRP)                           4                                           4
7.2.7     Switching Transcoder Module (STM)                        42                                          42
7.2.8     10 Base2 Ethernet                                         2                                           2
7.2.9     Channel Manager Rack (CMR) w2 Chassis                     1                                           1
7.2.10    Fan                                                       2                                           2
7.2.11    E1 Cables                                                20                                          20

7.3       Processing Equipment
7.3.1     SBS OMC                                                   1                                           1
7.3.2     Local SRMS                                                1                                           1
7.3.3     OPS Console                                               1                                           1
7.3.4     Ethernet Switch                                           1                                           1

7.4       DISTRIBUTION RACKS
7.4.1     IF Distribution Subsystem (IDS)                           1                                           1
7.4.2     Clock Distribution Subsystem (CDS)                        1                                           1

7.5       Installation Materials Including
            power/signal cables
7.5.1     Power Cables                                             30                                          20
7.5.2     I/F cables                                               32                                          24
7.5.3     LAN Cables                                                2                                           1
7.5.4     Sync Cabling                                             40                                          30

7.6       Power System                                              1                                           1

7.7       Specialized Test Equipment
7.7.1     Traffic Burst Generator                                   1                                           1
7.7.2     Signalling Burst Generator                                1                                           1
7.7.3     BER Analyzer                                              2                                           2
7.7.4     SCAT Test Bed                                             1                                           0
7.7.5     Lab Power Supplies                                        6                                           0
7.7.6     RF Combiners/Splitters                                   10                                           5
7.7.7     Misc Baseband Combiners/Splitters                        20                                           5
</TABLE>

SBS EQUIPMENT LIST

<TABLE>
<CAPTION>
                                                    SAN          SAN         SAN          SAN         SAN          SAN
Item No.            Description                  For Brazil   For Mexico   For UAE        For       For China    For Korea
                                                  (Type 2)      (Type 2)   (Type 2)    Indonesia    (Type 2)     (Type 1)
                                                                                        (Type 2)
                                               -------------------------------------------------------------------------------
                                                 Qty./MMs      Qty./MMs     Qty./MMs   Qty./MMs      Qty./MMs     Qty./MMs
------------------------------------------------------------------------------------------------------------------------------
<S>       <C>                                    <C>          <C>          <C>         <C>          <C>          <C>
7.2       Channel Manager
7.2.1     Channel Manager Chassis (ChM)
7.2.2     G.703 Interface
7.2.3     Control Processor Modules (CPM)
7.2.4     Channel Access Processor (CAP)
7.2.5     Channel Control Processor (CCP)
7.2.6     Global Resource Processor (GRP)
7.2.7     Switching Transcoder Module (STM)
7.2.8     10 Base2 Ethernet
7.2.9     Channel Manager Rack (CMR) w2 Chassis
7.2.10    Fan
7.2.11    E1 Cables

7.3       Processing Equipment
7.3.1     SBS OMC
7.3.2     Local SRMS
7.3.3     OPS Console
7.3.4     Ethernet Switch

7.4       DISTRIBUTION RACKS
7.4.1     IF Distribution Subsystem (IDS)
7.4.2     Clock Distribution Subsystem (CDS)

7.5       Installation Materials Including
            power/signal cables
7.5.1     Power Cables
7.5.2     I/F cables
7.5.3     LAN Cables
7.5.4     Sync Cabling

7.6       Power System

7.7       Specialized Test Equipment
7.7.1     Traffic Burst Generator
7.7.2     Signalling Burst Generator
7.7.3     BER Analyzer
7.7.4     SCAT Test Bed
7.7.5     Lab Power Supplies
7.7.6     RF Combiners/Splitters
7.7.7     Misc Baseband Combiners/Splitters
</TABLE>

SBS EQUIPMENT LIST

<TABLE>
<CAPTION>
                                                  NMC          NMC        TOTAL
Item No.            Description                 Primary      Back-up

                                               ----------------------------------
                                                Qty./MMs     Qty./MMs
---------------------------------------------------------------------------------
<S>       <C>                                   <C>          <C>          <C>
7.2       Channel Manager
7.2.1     Channel Manager Chassis (ChM)                                        4
7.2.2     G.703 Interface                                                     52
7.2.3     Control Processor Modules (CPM)                                     52
7.2.4     Channel Access Processor (CAP)                                      20
7.2.5     Channel Control Processor (CCP)                                     16
7.2.6     Global Resource Processor (GRP)                                      8
7.2.7     Switching Transcoder Module (STM)                                   84
7.2.8     10 Base2 Ethernet                                                    4
7.2.9     Channel Manager Rack (CMR) w2 Chassis                                2
7.2.10    Fan                                                                  4
7.2.11    E1 Cables                                                           40

7.3       Processing Equipment
7.3.1     SBS OMC                                                              2
7.3.2     Local SRMS                                                           2
7.3.3     OPS Console                                                          2
7.3.4     Ethernet Switch                                                      2

7.4       DISTRIBUTION RACKS
7.4.1     IF Distribution Subsystem (IDS)                                      2
7.4.2     Clock Distribution Subsystem (CDS)                                   2

7.5       Installation Materials Including
            power/signal cables
7.5.1     Power Cables                                                        50
7.5.2     I/F cables                                                          56
7.5.3     LAN Cables                                                           3
7.5.4     Sync Cabling                                                        70

7.6       Power System                                                         2

7.7       Specialized Test Equipment
7.7.1     Traffic Burst Generator                                              2
7.7.2     Signalling Burst Generator                                           2
7.7.3     BER Analyzer                                                         4
7.7.4     SCAT Test Bed                                                        1
7.7.5     Lab Power Supplies                                                   6
7.7.6     RF Combiners/Splitters                                              15
7.7.7     Misc Baseband Combiners/Splitters                                   25
</TABLE>

<PAGE>   1275

SBS EQUIPMENT LIST

<TABLE>
<CAPTION>
                                                    SAN       SAN         SAN       SAN         SAN         SAN         SAN
Item No.            Description                   For ICO-   For USA      For       For      For South   For India   For Chile
                                                    NET      (Type 2)   Australia  Germany     Africa     (Type 2)   (Type 2)
                                                                         (Type 1)  (Type 1)   (Type 1)
                                               ---------------------------------------------------------------------------------
                                                  Qty./MMs   Qty./MMs   Qty./MMs   Qty./MMs   Qty./MMs   Qty./MMs    Qty./MMs
--------------------------------------------------------------------------------------------------------------------------------
<S>       <C>                                     <C>        <C>        <C>        <C>       <C>         <C>         <C>
8         CLOCK DISTRIBUTION SYSTEM
8.1       Engineering Development                       71
8.2       Equipment - 12 SANs
8.2.1     10 MHz Fiber Optic Outputs                           5 Sets     5 Sets     5 Sets     5 Sets         5 Sets   5 Sets
8.2.2     GPS Time Code Fiber Optic Outputs                    5 Sets     5 Sets     5 Sets     5 Sets         5 Sets   5 Sets
8.2.3     10 MHz Outputs                                       3 Sets     3 Sets     3 Sets     3 Sets         3 Sets   3 Sets
8.2.4     IRIG-B Outputs                                       6 Sets     6 Sets     6 Sets     6 Sets         6 Sets   6 Sets
8.2.5     1 PPS Outputs                                        2 Sets     2 Sets     2 Sets     2 Sets         2 Sets   2 Sets
8.2.6     GPS Time Code Outputs                                2 Sets     2 Sets     2 Sets     2 Sets         2 Sets   2 Sets

9         SYSTEM INTEGRATION SUPPORT FACILITY
           AT NEC AUSTRALIA                                                    **
          (** ; Equipment will be used during
           the test period at NEC Australia
           facility and not at SAN site.)
9.1       Engineering Support                                                  9
9.2       Lab Equipment
9.2.1     Channel Unit                                                        10
9.2.2     Channel Manager                                                      2
9.2.3     E1/T1 Cabling                                                 1  Group
9.2.4     LAN Cabling and TAPs                                          1  Group
9.2.5     Clock Distribution System                                            1
9.2.6     I/F Distribution System                                              1
9.2.7     Traffic Burst Generator                                              4
9.2.8     Signalling Burst Generator                                           1

10        SBS DC POWER SYSTEM (AC/DC CONVERTORS
            & 2 HR BATTERY BANK)                                    1          1          1          1              1        1
10.1      Battery Bank                                              1          1          1          1              1        1
10.2      Rectifier Rack                                            1          1          1          1              1        1
10.3      Power Distribution Rack                                   1          1          1          1              1        1
10.4      Installation Materials                                1 Lot      1 Lot      1 Lot      1 Lot          1 Lot    1 Lot
10.5      Expansion DC Power                                        0          0          3          2              3        1

11        CE MARK COMPLIANCE FOR SAN ChM, CU,
           IF DISTRIBUTION & CLOCK
              NOTE: One site qualified to meet
              CE per EN55022 Class A.
11.1      Engineering Development                      139
</TABLE>

SBS EQUIPMENT LIST

<TABLE>
<CAPTION>
                                                    SAN          SAN         SAN          SAN           SAN          SAN
Item No.            Description                  For Brazil   For Mexico   For UAE        For       For China    For Korea
                                                  (Type 2)      (Type 2)   (Type 2)    Indonesia    (Type 2)     (Type 1)
                                                                                        (Type 2)
                                               -------------------------------------------------------------------------------
                                                 Qty./MMs      Qty./MMs     Qty./MMs   Qty./MMs      Qty./MMs     Qty./MMs
------------------------------------------------------------------------------------------------------------------------------
<S>       <C>                                    <C>          <C>          <C>         <C>          <C>          <C>
8         CLOCK DISTRIBUTION SYSTEM
8.1       Engineering Development
8.2       Equipment - 12 SANs
8.2.1     10 MHz Fiber Optic Outputs                 5 Sets       5 Sets      5 Sets      5 Sets       5 Sets       5 Sets
8.2.2     GPS Time Code Fiber Optic Outputs          5 Sets       5 Sets      5 Sets      5 Sets       5 Sets       5 Sets
8.2.3     10 MHz Outputs                             3 Sets       3 Sets      3 Sets      3 Sets       3 Sets       3 Sets
8.2.4     IRIG-B Outputs                             6 Sets       6 Sets      6 Sets      6 Sets       6 Sets       6 Sets
8.2.5     1 PPS Outputs                              2 Sets       2 Sets      2 Sets      2 Sets       2 Sets       2 Sets
8.2.6     GPS Time Code Outputs                      2 Sets       2 Sets      2 Sets      2 Sets       2 Sets       2 Sets

9         SYSTEM INTEGRATION SUPPORT FACILITY
           AT NEC AUSTRALIA
          (** ; Equipment will be used during
           the test period at NEC Australia
           facility and not at SAN site.)
9.1       Engineering Support
9.2       Lab Equipment
9.2.1     Channel Unit
9.2.2     Channel Manager
9.2.3     E1/T1 Cabling
9.2.4     LAN Cabling and TAPs
9.2.5     Clock Distribution System
9.2.6     I/F Distribution System
9.2.7     Traffic Burst Generator
9.2.8     Signalling Burst Generator

10        SBS DC POWER SYSTEM (AC/DC CONVERTORS
            & 2 HR BATTERY BANK)                          1            1           1           1            1            1
10.1      Battery Bank                                    1            1           1           1            1            1
10.2      Rectifier Rack                                  1            1           1           1            1            1
10.3      Power Distribution Rack                         1            1           1           1            1            1
10.4      Installation Materials                      1 Lot        1 Lot       1 Lot       1 Lot        1 Lot        1 Lot
10.5      Expansion DC Power                              3            2           3           2            1            1

11        CE MARK COMPLIANCE FOR SAN ChM, CU,
           IF DISTRIBUTION & CLOCK
              NOTE: One site qualified to meet
              CE per EN55022 Class A.
11.1      Engineering Development
</TABLE>

SBS EQUIPMENT LIST

<TABLE>
<CAPTION>
                                                   NMC          NMC       TOTAL
Item No.            Description                  Primary      Back-up

                                               ----------------------------------
                                                Qty./MMs     Qty./MMs
---------------------------------------------------------------------------------
<S>       <C>                                   <C>          <C>         <C>
8         CLOCK DISTRIBUTION SYSTEM
8.1       Engineering Development
8.2       Equipment - 12 SANs
8.2.1     10 MHz Fiber Optic Outputs                                     60 Sets
8.2.2     GPS Time Code Fiber Optic Outputs                              60 Sets
8.2.3     10 MHz Outputs                                                 36 Sets
8.2.4     IRIG-B Outputs                                                 72 Sets
8.2.5     1 PPS Outputs                                                  24 Sets
8.2.6     GPS Time Code Outputs                                          24 Sets

9         SYSTEM INTEGRATION SUPPORT FACILITY
           AT NEC AUSTRALIA
          (** ; Equipment will be used during
           the test period at NEC Australia
           facility and not at SAN site.)
9.1       Engineering Support                                                  9
9.2       Lab Equipment
9.2.1     Channel Unit                                                        10
9.2.2     Channel Manager                                                      2
9.2.3     E1/T1 Cabling                                                 1  Group
9.2.4     LAN Cabling and TAPs                                          1  Group
9.2.5     Clock Distribution System                                            1
9.2.6     I/F Distribution System                                              1
9.2.7     Traffic Burst Generator                                              4
9.2.8     Signalling Burst Generator                                           1

10        SBS DC POWER SYSTEM (AC/DC CONVERTORS
            & 2 HR BATTERY BANK)                                              12
10.1      Battery Bank                                                        12
10.2      Rectifier Rack                                                      12
10.3      Power Distribution Rack                                             12
10.4      Installation Materials                                         12 Lots
10.5      Expansion DC Power                                                  21

11        CE MARK COMPLIANCE FOR SAN ChM, CU,
           IF DISTRIBUTION & CLOCK
              NOTE: One site qualified to meet
              CE per EN55022 Class A.
11.1      Engineering Development                                            139
</TABLE>

<PAGE>   1276

SBS EQUIPMENT LIST

<TABLE>
<CAPTION>
                                                    SAN       SAN         SAN       SAN         SAN         SAN         SAN
Item No.            Description                   For ICO-   For USA      For       For      For South   For India   For Chile
                                                    NET      (Type 2)   Australia  Germany     Africa     (Type 2)   (Type 2)
                                                                         (Type 1)  (Type 1)   (Type 1)
                                               ---------------------------------------------------------------------------------
                                                  Qty./MMs   Qty./MMs   Qty./MMs   Qty./MMs   Qty./MMs   Qty./MMs    Qty./MMs
--------------------------------------------------------------------------------------------------------------------------------
<S>       <C>                                     <C>        <C>        <C>        <C>       <C>         <C>         <C>
11.2      Test & Certification                                                 7          7
11.3      Equipment

12        SPARE PARTS
12.1      Channel Unit Chassis
12.1.1    Slot Processor Module (SPM)                               5          5          8          7              8        6
12.1.2    Modulator Demodulator Module (MDM)                       10         10         17         15             17       13
12.1.3    Clock Distribution Unit (CDM)                             2          2          3          3              3        2
12.1.4    Common Functions Module (CFM)                             3          3          6          5              6        4
12.1.5    T1 Cables                                                 1          1          1          1              1        1
12.1.6    Channel Unit Rack Base Components                    3 Lots     3 Lots     3 Lots     3 Lots         3 Lots   3 Lots
12.1.7    Fan Trays                                                 2          2          2          2              2        2
12.2      Channel Manager Chassis
12.2.1    G.703 Interface                                           3          3          6          6              6        4
12.2.2    Control Processor Modules used for
           CAPs, CCPs,& GRPs                                        3          3          6          5              6        4
12.2.3    Switching Transcoder Module (STM)                         6          6         12         10             12        8
12.2.4    EXM                                                       2          2          5          4              5        3
12.2.5    10 Base2 Ethernet                                         1          1          1          1              1        1
12.2.6    Fan                                                       1          1          1          1              1        1
12.2.7    E1 Cables                                                 1          1          1          1              1        1
12.2.8    Power Distribution Unit Components                    1 Lot      1 Lot      1 Lot      1 Lot          1 Lot    1 Lot
12.3      Clock Distribution Subsystem
12.3.1    GPS  Receiver w/ Rb Oscillator                            1          1          1          1              1        1
12.3.2    10 Mhz Outputs (SBS)                                  1 Set      1 Set      1 Set      1 Set          1 Set    1 Set
12.3.3    GPS Time Code Outputs (SBS)                           1 Set      1 Set      1 Set      1 Set          1 Set    1 Set
12.3.4    Network Time Server                                       1          1          1          1              1        1
12.4      IF Distribution Subsystem
12.4.1    SBS Tx Distribution Modules                           1 Set      1 Set      1 Set      1 Set          1 Set    1 Set
12.4.2    SBS Rx Distribution Modules                           1 Set      1 Set      1 Set      1 Set          1 Set    1 Set
12.5      Clock Distribution Equipment
12.5.1    10 MHz Fiber Optic Outputs                            1 Set      1 Set      1 Set      1 Set          1 Set    1 Set
12.5.2    GPS Time Code Fiber Optic Outputs                     1 Set      1 Set      1 Set      1 Set          1 Set    1 Set
12.5.3    10 MHz Outputs                                        1 Set      1 Set      1 Set      1 Set          1 Set    1 Set
12.5.4    IRIG-B Outputs                                        1 Set      1 Set      1 Set      1 Set          1 Set    1 Set
12.5.5    1 PPS Outputs                                         1 Set      1 Set      1 Set      1 Set          1 Set    1 Set
12.5.6    GPS Time Code Outputs                                 1 Set      1 Set      1 Set      1 Set          1 Set    1 Set

13        TESTER
13.1      AI Validation Tool (SDL)                                  1
          Engineering Development                                  96
          Materials                                                 1
</TABLE>

SBS EQUIPMENT LIST

<TABLE>
<CAPTION>
                                                    SAN          SAN         SAN          SAN           SAN          SAN
Item No.            Description                  For Brazil   For Mexico   For UAE        For       For China    For Korea
                                                  (Type 2)      (Type 2)   (Type 2)    Indonesia    (Type 2)     (Type 1)
                                                                                        (Type 2)
                                               --------------------------------------------------------------------------------
                                                 Qty./MMs      Qty./MMs     Qty./MMs   Qty./MMs      Qty./MMs     Qty./MMs
-------------------------------------------------------------------------------------------------------------------------------
<S>       <C>                                    <C>          <C>          <C>         <C>          <C>          <C>
11.2      Test & Certification
11.3      Equipment

12        SPARE PARTS
12.1      Channel Unit Chassis
12.1.1    Slot Processor Module (SPM)                     8            7           8           7            6            6
12.1.2    Modulator Demodulator Module (MDM)             17           16          17          15           13           13
12.1.3    Clock Distribution Unit (CDM)                   3            3           3           3            2            2
12.1.4    Common Functions Module (CFM)                   6            5           6           5            4            4
12.1.5    T1 Cables                                       1            1           1           1            1            1
12.1.6    Channel Unit Rack Base Components          3 Lots       3 Lots      3 Lots      3 Lots       3 Lots       3 Lots
12.1.7    Fan Trays                                       2            2           2           2            2            2
12.2      Channel Manager Chassis
12.2.1    G.703 Interface                                 6            5           6           5            4            4
12.2.2    Control Processor Modules used for
           CAPs, CCPs,& GRPs                              6            6           6           5            4            4
12.2.3    Switching Transcoder Module (STM)              12           10          12          10            8            8
12.2.4    EXM                                             6            4           5           4            3            3
12.2.5    10 Base2 Ethernet                               1            1           1           1            1            1
12.2.6    Fan                                             1            1           1           1            1            1
12.2.7    E1 Cables                                       1            1           1           1            1            1
12.2.8    Power Distribution Unit Components          1 Lot        1 Lot       1 Lot       1 Lot        1 Lot        1 Lot
12.3      Clock Distribution Subsystem
12.3.1    GPS  Receiver w/ Rb                             1            1           1           1            1            1
12.3.2    10 Mhz Outputs (SBS)                        1 Set        1 Set       1 Set       1 Set        1 Set        1 Set
12.3.3    GPS Time Code Outputs (SBS)                 1 Set        1 Set       1 Set       1 Set        1 Set        1 Set
12.3.4    Network Time Server                             1            1           1           1            1            1
12.4      IF Distribution Subsystem
12.4.1    SBS Tx Distribution Modules                 1 Set        1 Set       1 Set       1 Set        1 Set        1 Set
12.4.2    SBS Rx Distribution Modules                 1 Set        1 Set       1 Set       1 Set        1 Set        1 Set
12.5      Clock Distribution Equipment
12.5.1    10 MHz Fiber Optic Outputs                  1 Set        1 Set       1 Set       1 Set        1 Set        1 Set
12.5.2    GPS Time Code Fiber Optic Outputs           1 Set        1 Set       1 Set       1 Set        1 Set        1 Set
12.5.3    10 MHz Outputs                              1 Set        1 Set       1 Set       1 Set        1 Set        1 Set
12.5.4    IRIG-B Outputs                              1 Set        1 Set       1 Set       1 Set        1 Set        1 Set
12.5.5    1 PPS Outputs                               1 Set        1 Set       1 Set       1 Set        1 Set        1 Set
12.5.6    GPS Time Code Outputs                       1 Set        1 Set       1 Set       1 Set        1 Set        1 Set

13        TESTER
13.1      AI Validation Tool (SDL)
          Engineering Development
          Materials
</TABLE>

SBS EQUIPMENT LIST

<TABLE>
<CAPTION>
                                                   NMC          NMC        TOTAL
Item No.            Description                  Primary      Back-up
                                               ------------------------------------
                                                 Qty./MMs    Qty./MMs
-----------------------------------------------------------------------------------
<S>       <C>                                    <C>         <C>           <C>
11.2      Test & Certification                                                 14
11.3      Equipment

12        SPARE PARTS
12.1      Channel Unit Chassis
12.1.1    Slot Processor Module (SPM)                                          81
12.1.2    Modulator Demodulator Module (MDM)                                  172
12.1.3    Clock Distribution Unit (CDM)                                        31
12.1.4    Common Functions Module (CFM)                                        57
12.1.5    T1 Cables                                                            12
12.1.6    Channel Unit Rack Base Components                               36 Lots
12.1.7    Fan Trays                                                            24
12.2      Channel Manager Chassis                                               0
12.2.1    G.703 Interface                                                      57
12.2.2    Control Processor Modules used for
           CAPs, CCPs,& GRPs                                                   57
12.2.3    Switching Transcoder Module (STM)                                   114
12.2.4    EXM                                                                  45
12.2.5    10 Base2 Ethernet                                                    12
12.2.6    Fan                                                                  12
12.2.7    E1 Cables                                                            12
12.2.8    Power Distribution Unit Components                              12 Lots
12.3      Clock Distribution Subsystem                                          0
12.3.1    GPS  Receiver w/ Rb                                                  12
12.3.2    10 Mhz Outputs (SBS)                                            12 Sets
12.3.3    GPS Time Code Outputs (SBS)                                     12 Sets
12.3.4    Network Time Server                                                  12
12.4      IF Distribution Subsystem
12.4.1    SBS Tx Distribution Modules                                     12 Sets
12.4.2    SBS Rx Distribution Modules                                     12 Sets
12.5      Clock Distribution Equipment
12.5.1    10 MHz Fiber Optic Outputs                                      12 Sets
12.5.2    GPS Time Code Fiber Optic Outputs                               12 Sets
12.5.3    10 MHz Outputs                                                  12 Sets
12.5.4    IRIG-B Outputs                                                  12 Sets
12.5.5    1 PPS Outputs                                                   12 Sets
12.5.6    GPS Time Code Outputs                                           12 Sets

13        TESTER
13.1      AI Validation Tool (SDL)                                              1
          Engineering Development                                              96
          Materials                                                             1
</TABLE>

<PAGE>   1277

SBS EQUIPMENT LIST

<TABLE>
<CAPTION>
                                                    SAN       SAN         SAN       SAN         SAN         SAN         SAN
Item No.            Description                   For ICO-   For USA      For       For      For South   For India   For Chile
                                                    NET      (Type 2)   Australia  Germany     Africa     (Type 2)   (Type 2)
                                                                        (Type 1)   (Type 1)   (Type 1)
                                               ---------------------------------------------------------------------------------
                                                  Qty./MMs   Qty./MMs   Qty./MMs   Qty./MMs   Qty./MMs   Qty./MMs    Qty./MMs
--------------------------------------------------------------------------------------------------------------------------------
<S>       <C>                                     <C>        <C>        <C>        <C>       <C>         <C>         <C>
14.       HARDWARE ITEM FOR 60/61 DAYS OPTION
14.1      Implementation of Service Area in SBS                     1          1          1          1           1          1
14.2      Service Area Based on Frequency
            Assignment                                              1          1          1          1           1          1
14.3      Service Area mapping using guard band                     1          1          1          1           1          1
4.2       2 Satellite position determination
           using differential delay                                 1          1          1          1           1          1

          SOFTWARE LICENCE

          SUBTOTAL
</TABLE>

SBS EQUIPMENT LIST

<TABLE>
<CAPTION>
                                                    SAN          SAN         SAN          SAN           SAN          SAN
Item No.            Description                  For Brazil   For Mexico   For UAE        For       For China    For Korea
                                                  (Type 2)      (Type 2)   (Type 2)    Indonesia    (Type 2)     (Type 1)
                                                                                        (Type 2)
                                               --------------------------------------------------------------------------------
                                                 Qty./MMs      Qty./MMs     Qty./MMs   Qty./MMs      Qty./MMs     Qty./MMs
-------------------------------------------------------------------------------------------------------------------------------
<S>       <C>                                    <C>          <C>           <C>        <C>          <C>          <C>
14.       HARDWARE ITEM FOR 60/61 DAYS OPTION
14.1      Implementation of Service Area in SBS           1            1           1         1            1            1
14.2      Service Area Based on Frequency
            Assignment                                    1            1           1         1            1            1
14.3      Service Area mapping using guard band           1            1           1         1            1            1
4.2       2 Satellite position determination
           using differential delay                       1            1           1         1            1            1

          SOFTWARE LICENCE

          SUBTOTAL
</TABLE>

SBS EQUIPMENT LIST

<TABLE>
<CAPTION>
                                                       NMC         NMC       TOTAL
Item No.            Description                      Primary     Back-up

                                               ------------------------------------
                                                     Qty./MMs    Qty./MMs
-----------------------------------------------------------------------------------
<S>       <C>                                        <C>         <C>       <C>
14.       HARDWARE ITEM FOR 60/61 DAYS OPTION
14.1      Implementation of Service Area in SBS                                   12
14.2      Service Area Based on Frequency
            Assignment                                                            12
14.3      Service Area mapping using guard band1                                  12
4.2       2 Satellite position determination
           using differential delay                                               12

          SOFTWARE LICENCE                                                  INCLUDED IN HARDWARE

          SUBTOTAL
</TABLE>
<PAGE>   1278
SWITCH EQUIPMENT LIST

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------------
                                                                SAN       SAN         SAN        SAN         SAN         SAN
                                                                                      For        For      For South
                                                              For ICQ-   For USA   Australia   Germany      Africa    For India
                                                                NET      Type 2     (Type 1)   (Type 1)    (Type 1)    (Type 2)
                                                           ----------------------------------------------------------------------
Item No.                          Description                  Q'ty       Q'ty        Q'ty       Q'ty        Q'ty        Q'ty
---------------------------------------------------------------------------------------------------------------------------------
<S>                                                           <C>        <C>       <C>         <C>        <C>         <C>
II.        HARDWARE

1.         MSSC HARDWARE                                                    1           1          1           1           1

1.1        CPS CABINET                                                      1           1          1           1           1
           Compact APZ 212 20 cabinet incl.
           cabling and mag. incl. 64 MW PS, 512 MW DS,
           8 RP-bus interfaces (1 parallell, 7 serial).
           Standard cables and cabinets.

1.2        IOG20 / PDSPL2 / CLM CABINET                                     1           1          1           1           1
           IOG20-M (two shelves), one GDM-H magazine
           equipped with 5 PDSPL2 (3 for CCD func., 1 for
           CSK-D func., 1 for KRD-D func.), 1 ETC5  and
           one Test Telephone connection, CLM and
           RCM, fan, internal cabling and cabinet.

1.3        DTI / C7 CABINET
           2 DTI in conversion box equipped with 4 TR-
           boards (16 channels) in each magazine, one
           GDM-H magazine with 14 ETC5, two GDM-H
           magazines with 8 RPG2 each for C7 signalling,
           one GDM-H magazine equipped with 5 PDSPL2
           (3 for CCD func., 1 for CSK-D func., 1 for CANS
           func.), fan, internal cabling and cabinet

1.4        DTI / C7 CABINET                                                 1           1          2           2           2
           2 DTI in conversion box equipped with 8 TR-
           boards (32 channels) in each magazine, one
           GDM-H magazine with 14 ETC5, two GDM-H
           magazines with 8 RPG2 each for C7 signalling,
           one GDM-H magazine equipped with 5 PDSPL2
           (3 for CCD func., 1 for CSK-D func., 1 for CANS
           func.), fan, internal cabling and cabinet

1.5        SS7 CABINET                                                      1
           This cabinet contains unrationalized DSOA
           signaling terminals and RP boards housed
           together in a 202 magazine. Each shelf
           supports 4 signaling links(2 per Magzine)
           which gives a total of 16 signaling Links in the
           cabinet.

1.6        GS 16K CABINET                                                   1           1                      1           1
           16k GS 10.0, internal cabling, GS magazines
           and cabinet

1.7        GS 32K CABINET                                                                          1
           32k GS 10.0, internal cabling, GS magazines
           and cabinet

1.8        AST1 CABINET                                                     1           1          1           1           1
           1 AST V3 (64 ch. ), one GDM-H magazine
           equipped with 16 IO2B for DL2/DL3
</TABLE>

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------------------
                                                                   SAN         SAN           SAN          SAN        SAN
                                                                                                                     For
                                                                 For Chile   For Brazil   For Mexico    For UAE   Indonesia
                                                                 (Type 2)     (Type 2)     (Type 2)     (Type 2)   (Type 2)
                                                           --------------------------------------------------------------------
Item No.                          Description                     Q'ty         Q'ty          Q'ty         Q'ty       Q'ty
-------------------------------------------------------------------------------------------------------------------------------
<S>                                                              <C>         <C>          <C>           <C>       <C>
II.        HARDWARE

1.         MSSC HARDWARE                                            1            1             1            1          1

1.1        CPS CABINET                                              1            1             1            1          1
           Compact APZ 212 20 cabinet incl.
           cabling and mag. incl. 64 MW PS, 512 MW DS,
           8 RP-bus interfaces (1 parallell, 7 serial).
           Standard cables and cabinets.

1.2        IOG20 / PDSPL2 / CLM CABINET                             1            1             1            1          1
           IOG20-M (two shelves), one GDM-H magazine
           equipped with 5 PDSPL2 (3 for CCD func., 1 for
           CSK-D func., 1 for KRD-D func.), 1 ETC5  and
           one Test Telephone connection, CLM and
           RCM, fan, internal cabling and cabinet.

1.3        DTI / C7 CABINET                                         1                          1
           2 DTI in conversion box equipped with 4 TR-
           boards (16 channels) in each magazine, one
           GDM-H magazine with 14 ETC5, two GDM-H
           magazines with 8 RPG2 each for C7 signalling,
           one GDM-H magazine equipped with 5 PDSPL2
           (3 for CCD func., 1 for CSK-D func., 1 for CANS
           func.), fan, internal cabling and cabinet

1.4        DTI / C7 CABINET                                         1            2             1            2          2
           2 DTI in conversion box equipped with 8 TR-
           boards (32 channels) in each magazine, one
           GDM-H magazine with 14 ETC5, two GDM-H
           magazines with 8 RPG2 each for C7 signalling,
           one GDM-H magazine equipped with 5 PDSPL2
           (3 for CCD func., 1 for CSK-D func., 1 for CANS
           func.), fan, internal cabling and cabinet

1.5        SS7 CABINET
           This cabinet contains unrationalized DSOA
           signaling terminals and RP boards housed
           together in a 202 magazine. Each shelf
           supports 4 signaling links(2 per Magzine)
           which gives a total of 16 signaling Links in the
           cabinet.

1.6        GS 16K CABINET                                           1            1             1            1          1
           16k GS 10.0, internal cabling, GS magazines
           and cabinet

1.7        GS 32K CABINET
           32k GS 10.0, internal cabling, GS magazines
           and cabinet

1.8        AST1 CABINET                                             1            1             1            1          1
           1 AST V3 (64 ch. ), one GDM-H magazine
           equipped with 16 IO2B for DL2/DL3
</TABLE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------
                                                                  SAN         SAN         NMC       NMC

                                                                For China   For Korea
                                                                 (Type 2)    (Type 1)   Primary   Back-up   TOTAL
                                                           -------------------------------------------------------
Item No.                          Description                     Q'ty        Q'ty        Q'ty      Q'ty     Q'ty
------------------------------------------------------------------------------------------------------------------
<S>                                                             <C>         <C>         <C>       <C>       <C>
II.        HARDWARE

1.         MSSC HARDWARE                                            1           1                              12

1.1        CPS CABINET                                              1           1                              12
           Compact APZ 212 20 cabinet incl.
           cabling and mag. incl. 64 MW PS, 512 MW DS,
           8 RP-bus interfaces (1 parallell, 7 serial).
           Standard cables and cabinets.

1.2        IOG20 / PDSPL2 / CLM CABINET                             1           1                              12
           IOG20-M (two shelves), one GDM-H magazine
           equipped with 5 PDSPL2 (3 for CCD func., 1 for
           CSK-D func., 1 for KRD-D func.), 1 ETC5  and
           one Test Telephone connection, CLM and
           RCM, fan, internal cabling and cabinet.

1.3        DTI / C7 CABINET                                         1           1                               4
           2 DTI in conversion box equipped with 4 TR-
           boards (16 channels) in each magazine, one
           GDM-H magazine with 14 ETC5, two GDM-H
           magazines with 8 RPG2 each for C7 signalling,
           one GDM-H magazine equipped with 5 PDSPL2
           (3 for CCD func., 1 for CSK-D func., 1 for CANS
           func.), fan, internal cabling and cabinet

1.4        DTI / C7 CABINET                                         1           1                              18
           2 DTI in conversion box equipped with 8 TR-
           boards (32 channels) in each magazine, one
           GDM-H magazine with 14 ETC5, two GDM-H
           magazines with 8 RPG2 each for C7 signalling,
           one GDM-H magazine equipped with 5 PDSPL2
           (3 for CCD func., 1 for CSK-D func., 1 for CANS
           func.), fan, internal cabling and cabinet

1.5        SS7 CABINET                                                                                          1
           This cabinet contains unrationalized DSOA
           signaling terminals and RP boards housed
           together in a 202 magazine. Each shelf
           supports 4 signaling links(2 per Magzine)
           which gives a total of 16 signaling Links in the
           cabinet.

1.6        GS 16K CABINET                                           1           1                              11
           16k GS 10.0, internal cabling, GS magazines
           and cabinet

1.7        GS 32K CABINET                                                                                       1
           32k GS 10.0, internal cabling, GS magazines
           and cabinet

1.8        AST1 CABINET                                             1           1                              12
           1 AST V3 (64 ch. ), one GDM-H magazine
           equipped with 16 IO2B for DL2/DL3
</TABLE>

                            Commercial-in-confidence
<PAGE>   1279
<TABLE>
<CAPTION>
SWITCH EQUIPMENT LIST
---------------------------------------------------------------------------------------------------------------------------------
                                                                SAN       SAN         SAN        SAN         SAN         SAN
                                                                                      For        For      For South
                                                              For ICO-   For USA   Australia   Germany      Africa    For India
                                                                NET      (Type 2)   (Type 1)   (Type 1)    (Type 1)    (Type 2)
                                                           ----------------------------------------------------------------------
Item No.                          Description                  Q'ty       Q'ty        Q'ty       Q'ty        Q'ty        Q'ty
---------------------------------------------------------------------------------------------------------------------------------
<S>                                                           <C>        <C>       <C>         <C>        <C>         <C>
           conversion, fan, internal cabling and cabinet

1.9        TRAFFIC CABINET                                                  2           2          4           1           2
           One ASMECP404 magazine with 16 EC4,
           three GDM-H magazines with 14 ETC5, and one
           GDM-H magazine with 4 PDSPL2 (for CSR-D
           functionality), internal cabling and cabinet.

1.10        WORK STATION                                                    1           1          1           1           1
              Visual Display                                                2           2          2           2           2
              Printer                                                       2           2          2           2           2
              Alarm Panel                                                   1           1          1           1           1

2          HPN                                                              1           1          1           1           1
2.1        Sun Ultra 2/ 1200 Server with SS#7                               2           2          2           2           2
           interface board including 200MHz, 64Mb
           RAM, 2.1 Gbyte Disk or equivalent system
2.2        HPN Transmit Channel Unit                                        5           5          5           5           5
2.3        HPN Acknowledgement Channel Unit                                10          10         10          10          10
2.4        Power Supply                                                     4           4          4           4           4
2.5        IF distribution (supports dual polarization)                     1           1          1           1           1
2.6        Fan Tray                                                         1           1          1           1           1
2.7        12 port Ethernet Hub                                             2           2          2           2           2
2.8        Rack mounting                                                    1           1          1           1           1

3          AUC/EIR   (CAPACITY FOR 500K SUBS)                                                      1

4          HLR FOR MAXIMUM 500K SUBSCRIBERS                                                        1
4.1          Trunk and Signalling hardware                                                         1
4.2           Central Processor hardware                                                           1
4.3           Input/Output & Mag. Tape Group hardware                                              1
4.4           Miscellaneous                                                                        1

5          DC NON-BREAK SYSTEM (AC/DC
           CONVERTER WITH 2-HOUR BATTERY)
5.1        Hardware                                                         3           1          4           1           1

6          OSS (MAIN PLUS BACK-UP)
6.1        HW Conf 3 (3 servers + 1 work station)
6.2        Work Station                                                     1           1          1           1           1
6.3        Disk mirror conf 3
6.4        Integration fee conf 3

7          DOCUMENTATION                                      incl.      incl.       incl.      incl.       incl.       incl.

8          SPARES
8.1        MSSC                                                             1           1          1           1           1
8.2        HLR                                                                                     1
8.3        DC Non-break System                                              1           1          1           1           1

9          OSS
9.1        Maps for NSP
9.2        Remote Access set-up                                             1           1          1           1           1

10         ILR IS-41
10.1       ILR FOR IS.41-ICO / ICO-IS.41                                    1

11         MESSAGING SYSTEM
11.1       System hardware and Software                                                            1
11.2       Spares                                                                                  1

12         LEGAL INTERCEPTON
12.1       LIAS                                                             1           1          1           1           1
</TABLE>

<TABLE>
<CAPTION>
SWITCH EQUIPMENT LIST
-----------------------------------------------------------------------------------------------------------------------------
                                                                  SAN         SAN           SAN          SAN        SAN
                                                                                                                    For
                                                                For Chile   For Brazil   For Mexico    For UAE   Indonesia
                                                                (Type 2)    (Type 2)      (Type 2)     (Type 2)   (Type 2)
                                                           ------------------------------------------------------------------
Item No.                          Description                    Q'ty         Q'ty          Q'ty         Q'ty       Q'ty
-----------------------------------------------------------------------------------------------------------------------------
<S>                                                             <C>         <C>          <C>           <C>       <C>
           conversion, fan, internal cabling and cabinet

1.9        TRAFFIC CABINET                                         2            2             2            2          2
           One ASMECP404 magazine with 16 EC4,
           three GDM-H magazines with 14 ETC5, and one
           GDM-H magazine with 4 PDSPL2 (for CSR-D
           functionality), internal cabling and cabinet.

1.10        WORK STATION                                           1            1             1            1          1
              Visual Display                                       2            2             2            2          2
              Printer                                              2            2             2            2          2
              Alarm Panel                                          1            1             1            1          1

2          HPN                                                     1            1             1            1          1
2.1        Sun Ultra 2/ 1200 Server with SS#7                      2            2             2            2          2
           interface board including 200MHz, 64Mb
           RAM, 2.1 Gbyte Disk or equivalent system
2.2        HPN Transmit Channel Unit                               5            5             5            5          5
2.3        HPN Acknowledgement Channel Unit                       10           10            10           10         10
2.4        Power Supply                                            4            4             4            4          4
2.5        IF distribution (supports dual polarization)            1            1             1            1          1
2.6        Fan Tray                                                1            1             1            1          1
2.7        12 port Ethernet Hub                                    2            2             2            2          2
2.8        Rack mounting                                           1            1             1            1          1

3          AUC/EIR   (CAPACITY FOR 500K SUBS)

4          HLR FOR MAXIMUM 500K SUBSCRIBERS
4.1          Trunk and Signalling hardware
4.2           Central Processor hardware
4.3           Input/Output & Mag. Tape Group hardware
4.4           Miscellaneous

5          DC NON-BREAK SYSTEM (AC/DC
           CONVERTER WITH 2-HOUR BATTERY)
5.1        Hardware                                                1            3             2            1          2

6          OSS (MAIN PLUS BACK-UP)
6.1        HW Conf 3 (3 servers + 1 work station)
6.2        Work Station                                            1            1             1            1          1
6.3        Disk mirror conf 3
6.4        Integration fee conf 3

7          DOCUMENTATION                                        incl.        incl.         incl.        incl.      incl.

8          SPARES
8.1        MSSC                                                    1            1             1            1          1
8.2        HLR
8.3        DC Non-break System                                     1            1             1            1          1

9          OSS
9.1        Maps for NSP
9.2        Remote Access set-up                                    1            1             1            1          1

10         ILR IS-41
10.1       ILR FOR IS.41-ICO / ICO-IS.41                                        1

11         MESSAGING SYSTEM
11.1       System hardware and Software                                                       1                       1
11.2       Spares                                                                             1                       1

12         LEGAL INTERCEPTON
12.1       LIAS                                                    1            1             1            1          1
</TABLE>

<TABLE>
<CAPTION>
SWITCH EQUIPMENT LIST
----------------------------------------------------------------------------------------------------------------
                                                                SAN         SAN         NMC       NMC

                                                              For China   For Korea
                                                               (Type 2)    (Type 1)   Primary   Back-up   TOTAL
                                                           -----------------------------------------------------
Item No.                          Description                   Q'ty        Q'ty        Q'ty      Q'ty     Q'ty
----------------------------------------------------------------------------------------------------------------
<S>                                                           <C>         <C>         <C>       <C>       <C>
           conversion, fan, internal cabling and cabinet

1.9        TRAFFIC CABINET                                        1           2                              24
           One ASMECP404 magazine with 16 EC4,
           three GDM-H magazines with 14 ETC5, and one
           GDM-H magazine with 4 PDSPL2 (for CSR-D
           functionality), internal cabling and cabinet.

1.10        WORK STATION                                          1           1                              12
              Visual Display                                      2           2                              24
              Printer                                             2           2                              24
              Alarm Panel                                         1           1                              12

2          HPN                                                    1           1                              12
2.1        Sun Ultra 2/ 1200 Server with SS#7                     2           2                              24
           interface board including 200MHz, 64Mb
           RAM, 2.1 Gbyte Disk or equivalent system
2.2        HPN Transmit Channel Unit                              5           5                              60
2.3        HPN Acknowledgement Channel Unit                      10          10                             120
2.4        Power Supply                                           4           4                              48
2.5        IF distribution (supports dual polarization)           1           1                              12
2.6        Fan Tray                                               1           1                              12
2.7        12 port Ethernet Hub                                   2           2                              24
2.8        Rack mounting                                          1           1                              12

3          AUC/EIR   (CAPACITY FOR 500K SUBS)                                             1                   2

4          HLR FOR MAXIMUM 500K SUBSCRIBERS                                               1                   2
4.1          Trunk and Signalling hardware                                                1                   2
4.2           Central Processor hardware                                                  1                   2
4.3           Input/Output & Mag. Tape Group hardware                                     1                   2
4.4           Miscellaneous                                                               1                   2

5          DC NON-BREAK SYSTEM (AC/DC
           CONVERTER WITH 2-HOUR BATTERY)
5.1        Hardware                                               1           3           1         1        25

6          OSS (MAIN PLUS BACK-UP)
6.1        HW Conf 3 (3 servers + 1 work station)                                         1         1         2
6.2        Work Station                                           1           1                              12
6.3        Disk mirror conf 3                                                             1         1     1 Lot
6.4        Integration fee conf 3                                                         1         1     1 Lot

7          DOCUMENTATION                                       incl.       incl.                           incl.

8          SPARES
8.1        MSSC                                                   1           1                              12
8.2        HLR                                                                            1                   2
8.3        DC Non-break System                                    1           1           1         1        14

9          OSS
9.1        Maps for NSP                                                                   1         1         2
9.2        Remote Access set-up                                   1           1                              12

10         ILR IS-41
10.1       ILR FOR IS.41-ICO / ICO-IS.41                                      1                               3

11         MESSAGING SYSTEM
11.1       System hardware and Software                                                                       3
11.2       Spares                                                                                             3

12         LEGAL INTERCEPTON
12.1       LIAS                                                   1           1                              12
</TABLE>

                            Commercial-in-confidence
<PAGE>   1280
<TABLE>
<CAPTION>
SWITCH EQUIPMENT LIST
---------------------------------------------------------------------------------------------------------------------------------
                                                                SAN       SAN         SAN        SAN         SAN         SAN
                                                                                      For        For      For South
                                                              For ICO-   For USA   Australia   Germany      Africa    For India
                                                                NET      (Type 2)   (Type 1)   (Type 1)    (Type 1)    (Type 2)
                                                           ----------------------------------------------------------------------
Item No.                          Description                  Q'ty       Q'ty        Q'ty       Q'ty        Q'ty        Q'ty
---------------------------------------------------------------------------------------------------------------------------------
<S>                                                           <C>        <C>       <C>         <C>        <C>         <C>
12.2       LIMS
12.3       Monitoring center back end system for testing

13         PCS/HPN MODEM
13.1       HPN PCS Modem                                                    1           1          1           1           1

III.       SOFTWARE LICENCE

1          MSSC                                                           ETC         ETC        ETC         ETC         ETC
1.1        MSSC                                                            98          98        196          70         112

1.2        Excess ETC magazine adjustment                                 -28           0          0           0           0

2          HPN                                                              1           1          1           1           1

3          AUC/EIR
3.1        AuC/EIR  Software 50K subs (each site)                                                  1
3.2        AuC/EIR  Software 200K subs (each site)                                                 1

4          HLR
4.1        HLR 'Software for 50K Subs                                                              1
4.2        HLR 'Software for 200K Subs                                                             1

5          NATURAL LANGUAGE SUPPORT
5.1        Software per traffic ETC at each site                           70          98        196          70         112
5.2        Software for 250k subscriber at HLR site                                                1

6          OSS
6.1         Features (AuC/EIR alarm handling, MXE
            alarm, Telnet)
6.2         Text file alarm adaption
6.3         License fee conf 3
6.4         MSSC, HLR, ILR connection fee

7          ILR IS-41
7.1        ILR Standard software (30% discount)                             1
7.2        ILR ICO software (35% discount)                                  1
7.3        ILR TMOS lite-agent (35% discount)                               1
7.4        ILR R2:IMSI in IS41 (35% discount)                               1

8          MESSAGING SYSTEM

9          Legal Interception

10         PCS/HPN Modem
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
SWITCH EQUIPMENT LIST
----------------------------------------------------------------------------------------------------------------------------
                                                                 SAN         SAN           SAN          SAN        SAN
                                                                                                                   For
                                                               For Chile   For Brazil   For Mexico    For UAE   Indonesia
                                                               (Type 2)    (Type 2)      (Type 2)     (Type 2)   (Type 2)
                                                           -----------------------------------------------------------------
Item No.                          Description                   Q'ty         Q'ty          Q'ty         Q'ty       Q'ty
----------------------------------------------------------------------------------------------------------------------------
<S>                                                            <C>         <C>          <C>           <C>       <C>
12.2       LIMS
12.3       Monitoring center back end system for testing

13         PCS/HPN MODEM
13.1       HPN PCS Modem                                          1            1             1            1          1

III.       SOFTWARE LICENCE

1          MSSC                                                 ETC          ETC           ETC          ETC        ETC
1.1        MSSC                                                 112          112           112          112        112

1.2        Excess ETC magazine adjustment                       -28          -14           -14            0        -14

2          HPN                                                    1            1             1            1          1

3          AUC/EIR
3.1        AuC/EIR  Software 50K subs (each site)
3.2        AuC/EIR  Software 200K subs (each site)

4          HLR
4.1        HLR 'Software for 50K Subs
4.2        HLR 'Software for 200K Subs

5          NATURAL LANGUAGE SUPPORT
5.1        Software per traffic ETC at each site                 84           98            98          112         98
5.2        Software for 250k subscriber at HLR site

6          OSS
6.1         Features (AuC/EIR alarm handling, MXE
            alarm, Telnet)
6.2         Text file alarm adaption
6.3         License fee conf 3
6.4         MSSC, HLR, ILR connection fee

7          ILR IS-41
7.1        ILR Standard software (30% discount)                                1
7.2        ILR ICO software (35% discount)                                     1
7.3        ILR TMOS lite-agent (35% discount)                                  1
7.4        ILR R2:IMSI in IS41 (35% discount)                                  1

8          MESSAGING SYSTEM

9          Legal Interception

10         PCS/HPN Modem
----------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
SWITCH EQUIPMENT LIST
-------------------------------------------------------------------------------------------------------------------
                                                                   SAN         SAN         NMC       NMC

                                                                 For China   For Korea
                                                                  (Type 2)    (Type 1)   Primary   Back-up   TOTAL
                                                           --------------------------------------------------------
Item No.                          Description                      Q'ty        Q'ty        Q'ty      Q'ty     Q'ty
-------------------------------------------------------------------------------------------------------------------
<S>                                                              <C>         <C>         <C>       <C>       <C>
12.2       LIMS                                                                                        1         1
12.3       Monitoring center back end system for testing                                               1         1

13         PCS/HPN MODEM
13.1       HPN PCS Modem                                             1           1                              12

III.       SOFTWARE LICENCE

1          MSSC                                                    ETC         ETC                             ETC
1.1        MSSC                                                     70         112                           1,316

1.2        Excess ETC magazine adjustment                            0         -28                            -126

2          HPN                                                       1           1                              12

3          AUC/EIR
3.1        AuC/EIR  Software 50K subs (each site)                                            1                   2
3.2        AuC/EIR  Software 200K subs (each site)                                           1                   2

4          HLR
4.1        HLR 'Software for 50K Subs                                                        1                   2
4.2        HLR 'Software for 200K Subs                                                       1                   2

5          NATURAL LANGUAGE SUPPORT
5.1        Software per traffic ETC at each site                    70          84                           1,190
5.2        Software for 250k subscriber at HLR site                                          1                   2

6          OSS
6.1         Features (AuC/EIR alarm handling, MXE                                            2                   2
            alarm, Telnet)
6.2         Text file alarm adaption                                                         1         1         2
6.3         License fee conf 3                                                               1         1         2
6.4         MSSC, HLR, ILR connection fee                                                    1                   1

7          ILR IS-41
7.1        ILR Standard software (30% discount)                                  1                               3
7.2        ILR ICO software (35% discount)                                       1                               3
7.3        ILR TMOS lite-agent (35% discount)                                    1                               3
7.4        ILR R2:IMSI in IS41 (35% discount)                                    1                               3

8          MESSAGING SYSTEM

9          Legal Interception

10         PCS/HPN Modem
-------------------------------------------------------------------------------------------------------------------
</TABLE>

Notes:

         1.       Dimensioning of MSSC's is based against the traffic forecast
                  version 3 supplied with Change Request Number 6 amendment 2
                  plus the subsequent spreadsheet indicating TMN requirements

         2.       By agreement from ICO Germany has 1 ETC less than calculated
                  requirement and South Africa has 3 ETC's less than calculated
                  requirement

         3.       By request from ICO Brazil and South Korea have an additional
                  ETC included to provide a level of redundancy in links to the
                  ILR platforms

         4.       Quantities and Prices for DC UPS are based upon the price
                  expansion table proposed as an amendment to the Pricing
                  Schedule

         5.       ETC licences for Natural Language Support are priced against
                  ETC's used for traffic only

         6.       Software licences for OSS (TMOS) connections have been
                  maintained at the level for 16 connections instead of 21 as
                  agreed with ICO
<PAGE>   1281
TNM EQUIPMENT LIST

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

                                                                                             For       For     For South
                                                                      For ICO-  For USA   Australia  Germany     Africa   For India
                                                                        NET     (Type 2)   (Type 1)  (Type 1)  (Type 1)   (Type 2)
                                                                      --------------------------------------------------------------
Item No.                                       Description              Q'ty      Q'ty      Q'ty      Q'ty        Q'ty      Q'ty
------------------------------------------------------------------------------------------------------------------------------------
<S>                                                                   <C>       <C>       <C>        <C>       <C>        <C>
II.                HARDWARE

1                  TERRESTRIAL NETWORK
                   MANAGEMENT (TNM)

1.1                TNM COMPUTER (RPC)                                               1         1         1           1         1
1.1.1              MMI Sparc Station  5 including 20"                               2         2         2           2         2
                   Monitor, Graphics Adaptor, 1.44MB
                    FDD, 64MB MM, 1GB HD, Ethernet
                    interface 10BT & 100BT and cables
1.1.2              Sparc 1000 with 2 processors, 512MB                              2         2         2           2         2
                   MM, 5GB HD, Ethernet Interfaces, 8mm
                    Tape Drive and CD ROM Drive
1.1.3              E1 Interface                                                     2         2         2           2         2

1.2                HI SPEED PRINTER -HP LASERJET 4MV                                1         1         1           1         1

1.3                ETHERNET HUBS/ROUTERS AND ACCESSORIES                            1         1         1           1         1

2                  VOCODER/MUX

2.1                VOCODER/MUX UNIT (INITIAL SYSTEM)
2.1.1              Vocoder/Mux Card                                                55        56        56          56        55
2.1.2              Control Card                                                     7         7         7           7         7
2.1.3              19" 6RU Shelf                                                    7         7         7           7         7
2.1.4              Power Supply Shelf                                               7         7         7           7         7
2.1.5              Fan Unit                                                         7         7         7           7         7
2.1.6              19" C&C Rack                                                     4         4         4           4         4
2.1.7              Royality                                                         1         1         1           1         1

2.2                VOCODER/MUX UNIT (INITIAL
                    system upgrade)
2.2.1              Vocoder/Mux Card                                                 9         8         8           8         9
2.2.2              Control Card                                                     1         1         1           1         1
2.2.3              19" 6RU Shelf                                                    1         1         1           1         1
2.2.4              Power Supply Shelf                                               1         1         1           1         1
2.2.5              Fan Unit                                                         1         1         1           1         1
2.2.6              Royality                                                         9         8         8           8         9

2.3                VOCODER/MUX UNIT
                    (Expansion)
2.3.1              Vocoder/Mux Card                                                                    96          64        96
2.3.2              Control Card                                                                        12           8        12
2.3.3              19" 6RU Shelf                                                                       12           8        12
2.3.4              Power Supply Shelf                                                                  12           8        12
2.3.5              Fan Unit                                                                            12           8        12
2.3.6              Royality                                                                            96          64        96
2.3.7              Additional I/O card                                                                  3           2         3

2.4                VOCODER/MUX UNIT
                    (Test bed)
2.4.1              Vocoder/Mux Card                                                          24
2.4.2              Control Card                                                               3
</TABLE>

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

                                                                                                                        For
                                                                        For Chile  For Brazil  For Mexico  For UAE   Indonisia
                                                                         (Type 2)   (Type 2)    (Type 2)   (Type 2)   (Type 2)
                                                                      ----------------------------------------------------------
Item No.                                       Description                 Q'ty       Q'ty        Q'ty       Q'ty       Q'ty
--------------------------------------------------------------------------------------------------------------------------------
<S>                                                                     <C>        <C>         <C>         <C>       <C>
II.                HARDWARE

1                  TERRESTRIAL NETWORK
                   MANAGEMENT (TNM)

1.1                TNM COMPUTER (RPC)                                        1          1           1          1          1
1.1.1              MMI Sparc Station  5 including 20"                        2          2           2          2          2
                   Monitor, Graphics Adaptor, 1.44MB
                    FDD, 64MB MM, 1GB HD, Ethernet
                    interface 10BT & 100BT and cables
1.1.2              Sparc 1000 with 2 processors, 512MB                       2          2           2          2          2
                   MM, 5GB HD, Ethernet Interfaces, 8mm
                    Tape Drive and CD ROM Drive
1.1.3              E1 Interface                                              2          2           2          2          2

1.2                HI SPEED PRINTER -HP LASERJET 4MV                         1          1           1          1          1

1.3                ETHERNET HUBS/ROUTERS AND ACCESSORIES                     1          1           1          1          1

2                  VOCODER/MUX

2.1                VOCODER/MUX UNIT (INITIAL SYSTEM)
2.1.1              Vocoder/Mux Card                                         55         55          55         55         55
2.1.2              Control Card                                              7          7           7          7          7
2.1.3              19" 6RU Shelf                                             7          7           7          7          7
2.1.4              Power Supply Shelf                                        7          7           7          7          7
2.1.5              Fan Unit                                                  7          7           7          7          7
2.1.6              19" C&C Rack                                              4          4           4          4          4
2.1.7              Royality                                                  1          1           1          1          1

2.2                VOCODER/MUX UNIT (INITIAL
                    system upgrade)
2.2.1              Vocoder/Mux Card                                          9          9           9          9          9
2.2.2              Control Card                                              1          1           1          1          1
2.2.3              19" 6RU Shelf                                             1          1           1          1          1
2.2.4              Power Supply Shelf                                        1          1           1          1          1
2.2.5              Fan Unit                                                  1          1           1          1          1
2.2.6              Royality                                                  9          9           9          9          9

2.3                VOCODER/MUX UNIT
                    (Expansion)
2.3.1              Vocoder/Mux Card                                         32         96          64         96         64
2.3.2              Control Card                                              4         12           8         12          8
2.3.3              19" 6RU Shelf                                             4         12           8         12          8
2.3.4              Power Supply Shelf                                        4         12           8         12          8
2.3.5              Fan Unit                                                  4         12           8         12          8
2.3.6              Royality                                                 32         96          64         96         64
2.3.7              Additional I/O card                                       1          3           2          3          2

2.4                VOCODER/MUX UNIT
                    (Test bed)
2.4.1              Vocoder/Mux Card
2.4.2              Control Card
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
                                                                            SAN        SAN       NMC      NMC    TOTAL

                                                                         For China  For Korea
                                                                          (Type 2)   (Type 1)  Primary  Back-up
                                                                      -------------------------------------------------
Item No.                                       Description                  Q'ty       Q'ty     Q'ty     Q'ty     Q'ty
-----------------------------------------------------------------------------------------------------------------------
<S>                                                                      <C>        <C>        <C>      <C>      <C>
II.                HARDWARE

1                  TERRESTRIAL NETWORK
                   MANAGEMENT (TNM)

1.1                TNM COMPUTER (RPC)                                         1           1                         12
1.1.1              MMI Sparc Station  5 including 20"                         2           2                         24
                   Monitor, Graphics Adaptor, 1.44MB
                    FDD, 64MB MM, 1GB HD, Ethernet
                    interface 10BT & 100BT and cables
1.1.2              Sparc 1000 with 2 processors, 512MB                        2           2                         24
                   MM, 5GB HD, Ethernet Interfaces, 8mm
                    Tape Drive and CD ROM Drive
1.1.3              E1 Interface                                               2           2                         24

1.2                HI SPEED PRINTER -HP LASERJET 4MV                          1           1                         12

1.3                ETHERNET HUBS/ROUTERS AND ACCESSORIES                      1           1                         12

2                  VOCODER/MUX

2.1                VOCODER/MUX UNIT (INITIAL SYSTEM)
2.1.1              Vocoder/Mux Card                                          55          56                        664
2.1.2              Control Card                                               7           7                         84
2.1.3              19" 6RU Shelf                                              7           7                         84
2.1.4              Power Supply Shelf                                         7           7                         84
2.1.5              Fan Unit                                                   7           7                         84
2.1.6              19" C&C Rack                                               4           4                         48
2.1.7              Royality                                                   1           1                         12

2.2                VOCODER/MUX UNIT (INITIAL
                    system upgrade)
2.2.1              Vocoder/Mux Card                                           9           8                        104
2.2.2              Control Card                                               1           1                         12
2.2.3              19" 6RU Shelf                                              1           1                         12
2.2.4              Power Supply Shelf                                         1           1                         12
2.2.5              Fan Unit                                                   1           1                         12
2.2.6              Royality                                                   9           8                        104

2.3                VOCODER/MUX UNIT
                    (Expansion)
2.3.1              Vocoder/Mux Card                                          32          32                        672
2.3.2              Control Card                                               4           4                         84
2.3.3              19" 6RU Shelf                                              4           4                         84
2.3.4              Power Supply Shelf                                         4           4                         84
2.3.5              Fan Unit                                                   4           4                         84
2.3.6              Royality                                                  32          32                        672
2.3.7              Additional I/O card                                        1           1                         21

2.4                VOCODER/MUX UNIT
                    (Test bed)
2.4.1              Vocoder/Mux Card                                                                                 24
2.4.2              Control Card                                                                                      3
</TABLE>

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<PAGE>   1282
TNM EQUIPMENT LIST

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

                                                                                             For       For     For South
                                                                      For ICO-  For USA   Australia  Germany     Africa   For India
                                                                        NET     (Type 2)   (Type 1)  (Type 1)  (Type 1)   (Type 2)
                                                                      --------------------------------------------------------------
Item No.                                       Description              Q'ty      Q'ty      Q'ty      Q'ty        Q'ty      Q'ty
------------------------------------------------------------------------------------------------------------------------------------
<S>                <C>                                                <C>       <C>       <C>        <C>       <C>        <C>
2.4.3              19" 6RU Shelf                                                              3
2.4.4              Power Supply Shelf                                                         3
2.4.5              Fan Unit                                                                   3
2.4.6              Royality                                                                  24

2.5                INSTALLATION MATERIALS                                           1         1         1           1         1

3                  DIGITAL COMMUNICATION NETWORK

3.1                SAN - 2 PORT

3.1.1              Switching Hub/Router                                             0                                         0
3.1.1.1            Ethernet Switch                                                  0                                         0
3.1.1.2            Dual Ethernet Port Cards (Included in 3.1.1.1)
3.1.1.3            Hub 10Bt                                                         0                                         0
3.1.2              Compression
3.1.2.1            Compression                                                      0                                         0
3.1.3              Installation Materials
3.1.3.1            19" Rack                                                         0                                         0
3.1.3.2            Cables                                                           0                                         0
3.1.3.3            Hardware                                                         0                                         0

3.2                SAN - 3 PORTS

3.2.1              Switching Hub/Router                                                       0         0           0
3.2.1.1            Ethernet Switch                                                            0         0           0
3.2.1.2            Dual Ethernet Port Cards (Included in 3.2.1.1)
3.2.1.3            Hub 10Bt                                                                   0         0           0
3.2.2              Compression
3.2.2.1            Compression                                                                0         0           0
3.2.3              Installation Materials
3.2.3.1            19" Rack                                                                   0         0           0
3.2.3.2            Cables                                                                     0         0           0
3.2.3.3            Hardware                                                                   0         0           0

3.3                NETWORK MANAGEMENT CENTRE (NMC)

3.3.1              DCN Hub/Router
3.3.1.1            Dual Ethernet Port Cards (Refer  to 3.3.3.4)
3.3.1.2            Hub 10Bt
3.3.2              Compression
3.3.2.1            Compression
3.3.3              Installation Materials
3.3.3.1            19" Rack
3.3.3.2            Cables
3.3.3.3            Hardware
3.3.3.4            Mux Cards
3.3.3.5            RPN/RPC Processor
3.3.3.6            19" 6RU Shelf
3.3.3.7            RPC Power Supply
3.3.3.8            Fan Units

4                  DOCUMENTATION                                          1         1         1         1           1         1

5                  SPARES
5.1                Vocoder/Mux
</TABLE>

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

                                                                                                                        For
                                                                        For Chile  For Brazil  For Mexico  For UAE   Indonesia
                                                                         (Type 2)   (Type 2)    (Type 2)   (Type 2)   (Type 2)
                                                                      ---------------------------------------------------------
Item No.                                       Description                 Q'ty       Q'ty        Q'ty       Q'ty       Q'ty
-------------------------------------------------------------------------------------------------------------------------------
<S>                <C>                                                 <C>        <C>         <C>         <C>       <C>
2.4.3              19" 6RU Shelf
2.4.4              Power Supply Shelf
2.4.5              Fan Unit
2.4.6              Royality

2.5                INSTALLATION MATERIALS                                    1          1           1          1          1

3                  DIGITAL COMMUNICATION NETWORK

3.1                SAN - 2 PORT

3.1.1              Switching Hub/Router                                      0          0           0          0          0
3.1.1.1            Ethernet Switch                                           0          0           0          0          0
3.1.1.2            Dual Ethernet Port Cards (Included in 3.1.1.1)
3.1.1.3            Hub 10Bt                                                  0          0           0          0          0
3.1.2              Compression
3.1.2.1            Compression                                               0          0           0          0          0
3.1.3              Installation Materials
3.1.3.1            19" Rack                                                  0          0           0          0          0
3.1.3.2            Cables                                                    0          0           0          0          0
3.1.3.3            Hardware                                                  0          0           0          0          0

3.2                SAN - 3 PORTS

3.2.1              Switching Hub/Router
3.2.1.1            Ethernet Switch
3.2.1.2            Dual Ethernet Port Cards (Included in 3.2.1.1)
3.2.1.3            Hub 10Bt
3.2.2              Compression
3.2.2.1            Compression
3.2.3              Installation Materials
3.2.3.1            19" Rack
3.2.3.2            Cables
3.2.3.3            Hardware

3.3                NETWORK MANAGEMENT CENTRE (NMC)

3.3.1              DCN Hub/Router
3.3.1.1            Dual Ethernet Port Cards (Refer  to 3.3.3.4)
3.3.1.2            Hub 10Bt
3.3.2              Compression
3.3.2.1            Compression
3.3.3              Installation Materials
3.3.3.1            19" Rack
3.3.3.2            Cables
3.3.3.3            Hardware
3.3.3.4            Mux Cards
3.3.3.5            RPN/RPC Processor
3.3.3.6            19" 6RU Shelf
3.3.3.7            RPC Power Supply
3.3.3.8            Fan Units

4                  DOCUMENTATION                                             1          1           1          1          1

5                  SPARES
5.1                Vocoder/Mux
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
                                                                            SAN        SAN       NMC      NMC    TOTAL

                                                                         For China  For Korea
                                                                          (Type 2)   (Type 1)  Primary  Back-up
                                                                      -------------------------------------------------
Item No.                                       Description                  Q'ty       Q'ty     Q'ty     Q'ty     Q'ty
-----------------------------------------------------------------------------------------------------------------------
<S>                <C>                                                   <C>        <C>        <C>      <C>      <C>
2.4.3              19" 6RU Shelf                                                                                     3
2.4.4              Power Supply Shelf                                                                                3
2.4.5              Fan Unit                                                                                          3
2.4.6              Royality                                                                                         24

2.5                INSTALLATION MATERIALS                                     1           1                         12

3                  DIGITAL COMMUNICATION NETWORK

3.1                SAN - 2 PORT

3.1.1              Switching Hub/Router                                       0                                      0
3.1.1.1            Ethernet Switch                                            0                                      0
3.1.1.2            Dual Ethernet Port Cards (Included in 3.1.1.1)
3.1.1.3            Hub 10Bt                                                   0                                      0
3.1.2              Compression
3.1.2.1            Compression                                                0                                      0
3.1.3              Installation Materials
3.1.3.1            19" Rack                                                   0                                      0
3.1.3.2            Cables                                                     0                                      0
3.1.3.3            Hardware                                                   0                                      0

3.2                SAN - 3 PORTS

3.2.1              Switching Hub/Router                                                   0                          0
3.2.1.1            Ethernet Switch                                                        0                          0
3.2.1.2            Dual Ethernet Port Cards (Included in 3.2.1.1)
3.2.1.3            Hub 10Bt                                                               0                          0
3.2.2              Compression
3.2.2.1            Compression                                                            0                          0
3.2.3              Installation Materials
3.2.3.1            19" Rack                                                               0                          0
3.2.3.2            Cables                                                                 0                          0
3.2.3.3            Hardware                                                               0                          0

3.3                NETWORK MANAGEMENT CENTRE (NMC)                                                0        0         0

3.3.1              DCN Hub/Router
3.3.1.1            Dual Ethernet Port Cards (Refer  to 3.3.3.4)
3.3.1.2            Hub 10Bt                                                                       0        0         0
3.3.2              Compression
3.3.2.1            Compression                                                                    0        0         0
3.3.3              Installation Materials
3.3.3.1            19" Rack                                                                       0        0         0
3.3.3.2            Cables                                                                         0        0         0
3.3.3.3            Hardware                                                                       0        0         0
3.3.3.4            Mux Cards                                                                      0        0         0
3.3.3.5            RPN/RPC Processor                                                              0        0         0
3.3.3.6            19" 6RU Shelf                                                                  0        0         0
3.3.3.7            RPC Power Supply                                                               0        0         0
3.3.3.8            Fan Units                                                                      0        0         0

4                  DOCUMENTATION                                              1           1       1        1        15

5                  SPARES
5.1                Vocoder/Mux
</TABLE>

                            Commercial in Confidence
<PAGE>   1283
TNM EQUIPMENT LIST

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

                                                                                             For       For     For South
                                                                      For ICO-  For USA   Australia  Germany     Africa   For India
                                                                        NET     (Type 2)   (Type 1)  (Type 1)  (Type 1)   (Type 2)
                                                                      --------------------------------------------------------------
Item No.                                       Description              Q'ty      Q'ty      Q'ty      Q'ty        Q'ty      Q'ty
------------------------------------------------------------------------------------------------------------------------------------
<S>                <C>                                                <C>       <C>       <C>        <C>       <C>        <C>
5.1.1              Vocoder/Mux Card                                                 2         2         2           2         2
5.1.2              Control Card                                                     2         2         2           2         2
5.1.3              Power Supply Shelf                                               2         2         2           2         2
5.1.4              Fan Unit                                                         2         2         2           2         2
5.1.5              I/O card                                                         2         2         2           2         2
5.1.6              LAN switch                                                       2         2         2           2         2
5.2                Digital Communication Network
5.2.1              SAN
5.2.1.1            Switching Hub/Router
5.2.1.1.1          Ethernet Switch                                        0
5.2.1.1.2          Dual Ethernet Port Cards (included
                    in 5.2.1.1.1)
5.2.1.1.3          Hub 10Bt                                               0
5.2.1.2            Compression
5.2.1.2.1          Compression                                            0

6                  INTERMEDIATE DISTRIBUTION FRAME                                  1         1         1           1         1

III.               SOFTWARE LICENCE

1                  TNM SOFTWARE LICENCE                                             1         1         1           1         1

2                  Solaris Software Licences for TNM                                1         1         1           1         1
2.1                Solaris Operating System with Media                                        1
2.2                Solaris Operating System without Media                           1                   1           1         1
2.3                Solstice - Runtime                                               1         1         1           1         1
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

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

                                                                                                                      For
                                                                      For Chile  For Brazil  For Mexico  For UAE   Indonesia
                                                                       (Type 2)   (Type 2)    (Type 2)   (Type 2)   (Type 2)
                                                                     ---------------------------------------------------------
Item No.                                       Description               Q'ty       Q'ty        Q'ty       Q'ty       Q'ty
------------------------------------------------------------------------------------------------------------------------------
<S>                <C>                                                <C>        <C>         <C>         <C>       <C>
5.1.1              Vocoder/Mux Card                                        2          2           2          2          2
5.1.2              Control Card                                            2          2           2          2          2
5.1.3              Power Supply Shelf                                      2          2           2          2          2
5.1.4              Fan Unit                                                2          2           2          2          2
5.1.5              I/O card                                                2          2           2          2          2
5.1.6              LAN switch                                              2          2           2          2          2
5.2                Digital Communication Network
5.2.1              SAN
5.2.1.1            Switching Hub/Router
5.2.1.1.1          Ethernet Switch
5.2.1.1.2          Dual Ethernet Port Cards (included
                    in 5.2.1.1.1)
5.2.1.1.3          Hub 10Bt
5.2.1.2            Compression
5.2.1.2.1          Compression

6                  INTERMEDIATE DISTRIBUTION FRAME                         1          1           1          1          1

III.               SOFTWARE LICENCE

1                  TNM SOFTWARE LICENCE                                    1          1           1          1          1

2                  Solaris Software Licences for TNM                       1          1           1          1          1
2.1                Solaris Operating System with Media
2.2                Solaris Operating System without Media                  1          1           1          1          1
2.3                Solstice - Runtime                                      1          1           1          1          1
------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------
                                                                          SAN        SAN       NMC      NMC    TOTAL

                                                                       For China  For Korea
                                                                        (Type 2)   (Type 1)  Primary  Back-up
                                                                     ------------------------------------------------
Item No.                                       Description                Q'ty       Q'ty     Q'ty     Q'ty     Q'ty
---------------------------------------------------------------------------------------------------------------------
<S>                <C>                                                 <C>        <C>        <C>      <C>      <C>
5.1.1              Vocoder/Mux Card                                         2           2                         24
5.1.2              Control Card                                             2           2                         24
5.1.3              Power Supply Shelf                                       2           2                         24
5.1.4              Fan Unit                                                 2           2                         24
5.1.5              I/O card                                                 2           2                         24
5.1.6              LAN switch                                               2           2                         24
5.2                Digital Communication Network
5.2.1              SAN
5.2.1.1            Switching Hub/Router
5.2.1.1.1          Ethernet Switch
5.2.1.1.2          Dual Ethernet Port Cards (included
                    in 5.2.1.1.1)
5.2.1.1.3          Hub 10Bt
5.2.1.2            Compression
5.2.1.2.1          Compression

6                  INTERMEDIATE DISTRIBUTION FRAME                          1           1                         12

III.               SOFTWARE LICENCE

1                  TNM SOFTWARE LICENCE                                     1           1                         12

2                  Solaris Software Licences for TNM                        1           1       0        0
2.1                Solaris Operating System with Media                                  1                          2
2.2                Solaris Operating System without Media                   1                                     10
2.3                Solstice - Runtime                                       1           1       0        0        12
---------------------------------------------------------------------------------------------------------------------
</TABLE>

                            Commercial in Confidence
<PAGE>   1284
NMC/SRMC/SAN-OSS EQUIPMENT LIST

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
                                          FOR ICO-       SAN            SAN              SAN             SAN              SAN
                                            NET
Item No.          Description                          For USA          For             For           For South         For India
                                                      (Type 2)       Australia        Germany           Africa          (Type 2)
                                                                     (Type 1)         (Type 1)         (Type 1)
                                        -------------------------------------------------------------------------------------------
                                           Q'ty          Q'ty           Q'ty            Q'ty             Q'ty            Q'ty
-----------------------------------------------------------------------------------------------------------------------------------
<S>         <C>                          <C>           <C>           <C>               <C>            <C>               <C>

II          HARDWARE

1           SAN-OSS SUBSYSTEM
1.1         Server system                                       1                1                1                1              1
1.1.1       Server machine (redundant)                          1                1                1                1              1
1.1.2       Workstation                                         2                2                2                2              2
1.1.3       Printer                                             1                1                1                1              1
1.2         Accommodation of
            Housekeeping Alarm                              1 set            1 set            1 set            1 set          1 set
1.2.1       Misc. Rack                                          1                1                1                1              1
1.2.2       Alarm concentrater panel                            1                1                1                1              1
1.3         Server Upgrade for Static
            SRMS                                            1 set            1 set            1 set            1 set          1 set
1.4         Installation Materials
            (LAN cable)                                     1 set            1 set            1 set            1 set          1 set
1.5         Document                                        1 lot            1 lot            1 lot            1 lot          1 lot
1.6         2 years warranty                                1 lot            1 lot            1 lot            1 lot          1 lot

2           NMC
2.1         NMS subsystem at NMC
2.1.1       Server system
2.1.1.1     Server machine (redundant)
2.1.1.2     Workstation
2.1.1.3     Printer
2.1.2       Accommodation of
            Housekeeping Alarm
2.1.2.1     Misc. Rack
2.1.2.2     Alarm concentrater panel
2.2         SRMC subsystem at NMC
2.2.1       Server system
2.2.1.1     Server machine (redundant)
2.2.2       Server Upgrade for SRMC
2.3         Remote Testing Facility
2.3.1       Workstation
2.3.2       Dial-In Modem
2.4         Installation Materials
            (LAN cable)
2.5         Document
2.6         2 years warranty

3             SPARE

3           Accomodation of
            Housekeeping Alarm
3.1         Alarm concentrater panel                            1                1                1                1              1

4           NEW REQUIREMENT FOR PCS
            SUBSYSTEM                                           0                0                0                0              0

--------------------------------------------------------------------------------------------------------------
                                            SAN               SAN             SAN               SAN

Item No.          Description            For Chile        For Brazil       For Mexico         For UAE
                                         (Type 2)          (Type 2)         (Type 2)          (Type 2)

                                        ----------------------------------------------------------------------
                                           Q'ty              Q'ty            Q'ty              Q'ty
--------------------------------------------------------------------------------------------------------------
<S>         <C>                          <C>              <C>              <C>                <C>

II          HARDWARE

1           SAN-OSS SUBSYSTEM
1.1         Server system                           1                1                1                1
1.1.1       Server machine (redundant)              1                1                1                1
1.1.2       Workstation                             2                2                2                2
1.1.3       Printer                                 1                1                1                1
1.2         Accommodation of
            Housekeeping Alarm                  1 set            1 set            1 set            1 set
1.2.1       Misc. Rack                              1                1                1                1
1.2.2       Alarm concentrater panel                1                1                1                1
1.3         Server Upgrade for Static
            SRMS                                1 set            1 set            1 set            1 set
1.4         Installation Materials
            (LAN cable)                         1 set            1 set            1 set            1 set
1.5         Document                            1 lot            1 lot            1 lot            1 lot
1.6         2 years warranty                    1 lot            1 lot            1 lot            1 lot

2           NMC
2.1         NMS subsystem at NMC
2.1.1       Server system
2.1.1.1     Server machine (redundant)
2.1.1.2     Workstation
2.1.1.3     Printer
2.1.2       Accommodation of
            Housekeeping Alarm
2.1.2.1     Misc. Rack
2.1.2.2     Alarm concentrater panel
2.2         SRMC subsystem at NMC
2.2.1       Server system
2.2.1.1     Server machine (redundant)
2.2.2       Server Upgrade for SRMC
2.3         Remote Testing Facility
2.3.1       Workstation
2.3.2       Dial-In Modem
2.4         Installation Materials
            (LAN cable)
2.5         Document
2.6         2 years warranty

3             SPARE

3           Accomodation of
            Housekeeping Alarm
3.1         Alarm concentrater panel                1                1                1                1

4           NEW REQUIREMENT FOR PCS
            SUBSYSTEM                               0                0                0                0

-------------------------------------------------------------------------------------------------------------------------------
                                           SAN               SAN               NMC               NMC                TOTAL

Item No.          Description           For China         For Korea          Primary           Back-up
                                        (Type 2)          (Type 1)

                                        ---------------------------------------------------------------------------------------
                                          Q'ty              Q'ty              Q'ty              Q'ty                Q'ty
-------------------------------------------------------------------------------------------------------------------------------
<S>         <C>                         <C>               <C>                <C>               <C>                 <C>

II          HARDWARE

1           SAN-OSS SUBSYSTEM
1.1         Server system                          1                 1                                                       12
1.1.1       Server machine (redundant)             1                 1                                                       12
1.1.2       Workstation                            2                 2                                                       24
1.1.3       Printer                                1                 1                                                       12
1.2         Accommodation of
            Housekeeping Alarm                 1 set             1 set                                                  12 sets
1.2.1       Misc. Rack                             1                 1                                                       12
1.2.2       Alarm concentrater panel               1                 1                                                       12
1.3         Server Upgrade for Static
            SRMS                               1 set             1 set                                                  12 sets
1.4         Installation Materials
            (LAN cable)                        1 set             1 set                                                  12 sets
1.5         Document                           1 lot             1 lot                                                  12 lots
1.6         2 years warranty                   1 lot             1 lot                                                  12 lots

2           NMC
2.1         NMS subsystem at NMC
2.1.1       Server system                                                         1 set               1 set              2 sets
2.1.1.1     Server machine (redundant)                                                1                   1                   2
2.1.1.2     Workstation                                                               5                   5                  10
2.1.1.3     Printer                                                                   1                   1                   2
2.1.2       Accommodation of
            Housekeeping Alarm                                                    1 set               1 set              2 sets
2.1.2.1     Misc. Rack                                                                1                   1                   2
2.1.2.2     Alarm concentrater panel                                                  1                   1                   2
2.2         SRMC subsystem at NMC                                                 1 LOT               1 LOT              2 LOTS
2.2.1       Server system                                                         1 set               1 set              2 sets
2.2.1.1     Server machine (redundant)                                                1                   1                   2
2.2.2       Server Upgrade for SRMC                                               1 set               1 set              2 sets
2.3         Remote Testing Facility                                               1 set               1 set              2 sets
2.3.1       Workstation                                                               1                   1                   2
2.3.2       Dial-In Modem                                                             1                   1                   2
2.4         Installation Materials
            (LAN cable)                                                           1 lot               1 lot              2 lots
2.5         Document                                                              1 lot               1 lot              2 lots
2.6         2 years warranty                                                      1 lot               1 lot              2 lots

3             SPARE                                                                                                       1 lot

3           Accommodation of
            Housekeeping Alarm
3.1         Alarm concentrater panel               1                 1                1                   1                  14

4           NEW REQUIREMENT FOR PCS
            SUBSYSTEM                              0                 0                                                        0
</TABLE>

                   Commercial in Confidence

<PAGE>   1285

NMC/SRMC/SAN-OSS EQUIPMENT LIST

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
                                          FOR ICO-       SAN            SAN              SAN             SAN              SAN
                                            NET
Item No.          Description                          For USA          For             For           For South         For India
                                                      (Type 2)       Australia        Germany           Africa          (Type 2)
                                                                     (Type 1)         (Type 1)         (Type 1)
                                        -------------------------------------------------------------------------------------------
                                           Q'ty          Q'ty           Q'ty            Q'ty             Q'ty            Q'ty
-----------------------------------------------------------------------------------------------------------------------------------
<S>         <C>                          <C>           <C>           <C>               <C>            <C>               <C>
4.1         Additional disk space for
            Archived telemetry data

III         SOFTWARE LICENCE

            SUBTOTAL OF SOFTWARE
            LICENCE                                             1                1                1                1              1

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

------------------------------------------------------------------------------------------------------------------------------
                                            SAN               SAN             SAN               SAN             SAN

Item No.          Description            For Chile        For Brazil       For Mexico         For UAE            For
                                         (Type 2)          (Type 2)         (Type 2)          (Type 2)        Indonesia
                                                                                                               (Type 2)
                                        --------------------------------------------------------------------------------------
                                           Q'ty              Q'ty            Q'ty              Q'ty            Q'ty
------------------------------------------------------------------------------------------------------------------------------
<S>         <C>                          <C>              <C>              <C>                <C>             <C>
4.1         Additional disk space for
            Archived telemetry data

III         SOFTWARE LICENCE

            SUBTOTAL OF SOFTWARE
            LICENCE                                 1                1                1                1                1

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

---------------------------------------------------------------------------------------------------------------------------------
                                             SAN               SAN               NMC               NMC                TOTAL

Item No.          Description             For China         For Korea          Primary           Back-up
                                          (Type 2)          (Type 1)

                                        -----------------------------------------------------------------------------------------
                                            Q'ty              Q'ty              Q'ty              Q'ty                Q'ty
---------------------------------------------------------------------------------------------------------------------------------
<S>         <C>                           <C>               <C>                <C>               <C>                 <C>
4.1         Additional disk space for
            Archived telemetry data

III         SOFTWARE LICENCE

            SUBTOTAL OF SOFTWARE
            LICENCE                                  1                 1                1                   1               1 lot

---------------------------------------------------------------------------------------------------------------------------------
</TABLE>

                            Commercial in Confidence

<PAGE>   1286
SPECIAL TEST EQUIPMENT (STE) EQUIPMENT LIST
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
                                 SAN          SAN          SAN          SAN          SAN          SAN          SAN         SAN
                                 FOR          FOR          FOR          FOR          FOR          FOR          FOR         FOR
ITEM   DESCRIPTION             ICO-NET        USA       AUSTRALIA     GERMANY   SOUTH AFRICA     INDIA        CHILE       BRAZIL
 NO.                                        (TYPE 2)     (TYPE 1)     (TYPE 1)     (TYPE 1)     (TYPE 2)     (TYPE 2)    (TYPE 2)
                             ------------------------------------------------------------------------------------------------------
                                Q'TY          Q'TY         Q'TY         Q'TY         Q'TY         Q'TY         Q'TY        Q'TY
-----------------------------------------------------------------------------------------------------------------------------------
<S>    <C>                    <C>        <C>          <C>          <C>          <C>          <C>          <C>          <C>
       HARDWARE
1      AIR INTERFACE LOAD       2          1            1            1            1            1            1            1
       GENERATOR TESTER
       (for 150 Erlang
       Simultaneous
       Calls / 25Z-Arcs)
1.1    Channel Unit Chassis     2
       (CUC)
1.2    CUC Chassis & Back-      1
       plane
1.3    SPM                      5
1.4    MDC                      0
1.5    CDM                      2
1.6    CFM                      2
1.7    Base Module              1
1.8    Partial CMB              1
1.9    CMB Chassis & Back-      1
       plane
1.10   G703 Module              5
1.11   GRP                      2
1.12   CCP                      4
1.13   CAP                      4
1.14   SIM (1 call/DSP)        14
1.15   Channel Manager Rack &   1
       Integration Materials
       (Fans, Cables, etc)
1.16   SAS Controller           1
       Workstation
1.17   Workstation SW License   1
1.18   24 Vdc, -48 Vdc Power    1
       Supply

1.19   Synchronization Source   1
it is confirmed price for
L-Band (IF) Interface.
No Interface to RFT is
included at this point.
The following items to be
prepared by ICO.
(1) SAS Controller Workstation
(2) Workstation SW Licence
2      GSM Tester               2
3      Satellite Channel
       Simulator                           1            1            1            1            1            1            1
4      PCS Checker                         0            0            0            0            0            0            0
5      System Simulator         2
5.1    Partial CUC              1
5.2    CUC Chassis & Backplane  1
5.3    SPM                      3
5.4    MDM                      6
5.5    CDM                      2
5.6    CFM                      2
5.7    Base Module              1
5.8    Partial CMB              1
5.9    CMB Chassis & Backplane  1
5.10   G703 Module              3
5.11   GRP                      1
5.12   CCP                      1
5.13   CAP                      1
5.14   STM                      3
5.15   Channel Manager Rack &   1
       Integration Material
       (Fans, Cables, etc.)
5.16   24 Vdc, -48 Vdc Power    1
       Supply
5.17   Synchronization Source   1
</TABLE>
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
                                 SAN          SAN          SAN          SAN          SAN          NMC         NMC         TOTAL
                                 FOR          FOR          FOR          FOR          FOR        PRIMARY     BACK-UP
ITEM   DESCRIPTION             MEXICO         UAE       INDONESIA      CHINA        KOREA
 NO.                          (TYPE 2)     (TYPE 2)     (TYPE 2)      (TYPE 2)     (TYPE 1)
                             ------------------------------------------------------------------------------------------------------
                                Q'TY          Q'TY         Q'TY         Q'TY         Q'TY         Q'TY         Q'TY        Q'TY
-----------------------------------------------------------------------------------------------------------------------------------
<S>    <C>                   <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>
       HARDWARE
1      AIR INTERFACE LOAD       1           1            1            1           1                                      14
       GENERATOR TESTER
       (for 150 Erlang
       Simultaneous
       Calls / 25Z-Arcs)
1.1    Channel Unit Chassis
       (CUC)
1.2    CUC Chassis & Back-
       plane
1.3    SPM
1.4    MDC
1.5    CDM
1.6    CFM
1.7    Base Module
1.8    Partial CMB
1.9    CMB Chassis & Back-
       plane
1.10   G703 Module
1.11   GRP
1.12   CCP
1.13   CAP
1.14   SIM (1 call/DSP)
1.15   Channel Manager Rack &
       Integration Materials
       (Fans, Cables, etc)
1.16   SAS Controller
       Workstation
1.17   Workstation SW License
1.18   24 Vdc, -48 Vdc Power
       Supply

1.19   Synchronization Source
it is confirmed price for
L-Band (IF) Interface.
No Interface to RFT is
included at this point.
The following items to be
prepared by ICO.
(1) SAS Controller
Workstation
(2) Workstation SW Licence
2      GSM Tester                                                                                                         2
3      Satellite Channel
       Simulator                1           1            1            1           1                                      12
4      PCS Checker              0           0            0            0           0                                       0
5      System Simulator                                                                                                   2
5.1    Partial CUC
5.2    CUC Chassis & Backplane
5.3    SPM
5.4    MDM
5.5    CDM
5.6    CFM
5.7    Base Module
5.8    Partial CMB
5.9    CMB Chassis & Backplane
5.10   G703 Module
5.11   GRP
5.12   CCP
5.13   CAP
5.14   STM
5.15   Channel Manager Rack &
       Integration Material
       (Fans, Cables, etc.)
5.16   24 Vdc, -48 Vdc Power
       Supply
5.17   Synchronization Source
</TABLE>

                            Commercial in Confidence
<PAGE>   1287
AX+B EQUIPMENT LIST
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
                                 SAN          SAN          SAN          SAN          SAN          SAN          SAN         SAN
                                 FOR          FOR          FOR          FOR          FOR          FOR          FOR         FOR
ITEM   DESCRIPTION             ICO-NET        USA       AUSTRALIA     GERMANY   SOUTH AFRICA     INDIA        CHILE       BRAZIL
 NO.                                        (TYPE 2)     (TYPE 1)     (TYPE 1)     (TYPE 1)     (TYPE 2)     (TYPE 2)    (TYPE 2)
                             ------------------------------------------------------------------------------------------------------
                                Q'TY          Q'TY         Q'TY         Q'TY         Q'TY         Q'TY         Q'TY        Q'TY
-----------------------------------------------------------------------------------------------------------------------------------
<S>    <C>                   <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>
1      SAN to SAN Handover
1.2    Hardware                             1            1            1            1            1            1            1
1.3    Software Licence
5      Emergency Calls
5.2    Hardware                             1            1            1            1            1            1            1
5.3    Software Licence
6      FAX Group 3 over      See
       9.6 kpbs
6.2    Hardware                             1            1            1            1            1            1            1
6.3    Software Licence
7      Speech Followed
       by/alternative with
       data
7.2    Hardware                             1            1            1            1            1            1            1
7.3    Software Licence
8      Circuit mode data     See Item
       (9.6 kpbs-38.4 kpbs)  16
8.2    Hardware                             1            1            1            1            1            1            1
8.3    Software Licence
11     Multi-SAN paging
11.2   Hardware                             1            1            1            1            1            1            1
11.3   Software Licence
16     Software/Hardware
       for High Speed
       Circuit Switched
       Data and Group
       3 Fax Services
16.2   Hardware (16CH/SAN)                 16           16           16            16          16           16           16
16.3   Software Licence                    16           16           16            16          16           16           16
       (16CH/SAN)
</TABLE>
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
                                 SAN          SAN          SAN          SAN          SAN          NMC         NMC         TOTAL
                                 FOR          FOR          FOR          FOR          FOR        PRIMARY     BACK-UP
ITEM   DESCRIPTION             MEXICO         UAE       INDONESIA      CHINA        KOREA
 NO.                          (TYPE 2)     (TYPE 2)     (TYPE 2)      (TYPE 2)     (TYPE 1)
                             ------------------------------------------------------------------------------------------------------
                                Q'TY          Q'TY         Q'TY         Q'TY         Q'TY         Q'TY         Q'TY        Q'TY
-----------------------------------------------------------------------------------------------------------------------------------
<S>    <C>                   <C>          <C>          <C>          <C>          <C>          <C>          <C>          <C>
1      SAN to SAN Handover
1.2    Hardware                1            1            1            1            1
1.3    Software Licence
5      Emergency Calls
5.2    Hardware                1            1            1            1            1
5.3    Software Licence
6      FAX Group 3 over
       9.6 kpbs
6.2    Hardware                1            1            1            1            1
6.3    Software Licence
7      Speech Followed
       by/alternative with
       data
7.2    Hardware                1            1             1           1            1
7.3    Software Licence
8      Circuit mode data
       (9.6 kpbs-38.4 kpbs)
8.2    Hardware                1            1             1           1            1
8.3    Software Licence
11     Multi-SAN paging
11.2   Hardware                1            1             1           1            1
11.3   Software Licence
16     Software/Hardware
       for High Speed
       Circuit Switched
       Data and Group
       3 Fax Services
16.2   Hardware (16CH/SAN)    16           16            16          16           16                                     192
16.3   Software Licence       16           16            16          16           16                                     192
       (16CH/SAN)
</TABLE>

                            Commercial in Confidence
<PAGE>   1288
AX+B EQUIPMENT LIST

<TABLE>
<CAPTION>

                      SAN       SAN      SAN       SAN      SAN        SAN        SAN       SAN
Item  Description   For ICO-  For USA    For       For   For South  For India  For Chile For Brazil
 No.                   NET            Australia  Germany   Africa
                              (Type 2) (Type 1)  (Type 1) (Type 1)   (Type 2)   (Type 2)  (Type 2)
                      Q'ty      Q'ty     Q'ty     Q'ty     Q'ty        Q'ty       Q'ty      Q'ty
<S>                   <C>     <C>      <C>       <C>      <C>        <C>        <C>       <C>

</TABLE>

<TABLE>
<CAPTION>

                      SAN       SAN       SAN       SAN       SAN       NMC        NMC     TOTAL
Item  Description     For     For UAE     For       For       For     Primary    Back-up
 No.                 Mexico            Indonesia   China     Korea
                    (Type 2)  (Type 2)  (Type 2)  (Type 2)  (Type 1)
                      Q'ty     Q'ty      Q'ty       Q'ty      Q'ty     Q'ty       Q'ty      Q'ty
<S>                  <C>      <C>       <C>        <C>       <C>       <C>        <C>       <C>

</TABLE>
<PAGE>   1289
DCN EQUIPMENT LIST

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------
                                                            SAN        SAN         SAN         SAN         SAN         SAN
Item                 Description                          For ICO-    For USA      For         For       For South   For India
No.                                                         NET      (Type 2)   Australia    Germany      Africa     (Type 2)
                                                                                (Type 1)     (Type 1)    (Type 1)
                                                          --------------------------------------------------------------------
                                                           Q'ty        Q'ty       Q'ty        Q'ty         Q'ty        Q'ty
------------------------------------------------------------------------------------------------------------------------------
<S>                                                       <C>        <C>        <C>          <C>         <C>         <C>
         HARDWARE

1.       Cisco Router
1.1      7507/4 7-Slot, 2 CyBus, 1 RSP4, Single Power                    2           2           2           2          2
         Supply
1.2      SF75C-11.2.X IOS RSPx Series IP                                 2           2           2           2          2
         Only
1.3      VIP2-40 Versatile Interface Processor-2                         6           6           6           6          6
         Model 40
1.4      PA-FE-TX Fast Ethernet Port Adapter                             6           6           6           6          6
         (100Base-TX, 1-port)
1.5      PA-4E Ethernet 10Base-T Port Adapter (4-port)                   2           2           2           2          2
1.6      PA-4T+ Enhanced Syncronous Serial Port                          4           4           4           4          4
         Adapter (4-port)
1.7      CAB-X21MT X.21 Cable, DTE, Male, 10 Feet                        3           2           4           2          5

2.       Cisco Eternet Switch
2.1      WS-C2926T Catalyst 10/100 Switch, Fixed
         24-10/100 RJ-45, 2-100BASE
         TX
2.2      WS-C2916M-XL 16-Port 10/100 FE Switch with 2                    4           4           4           4          4
         Uplink Slots
2.3      WS-X2914-XL 4-Port 10/100 FE Switch Module                      8           8           8           8          8
         for Catalyst 2916M-XL

3.       CYLINK Link Encryptor                                           3           2           4           2          5

4.       DCN NMS
4.1      A4190A HP9000 B132L(VISUALIZE-EG)
4.2      A4477A 4Gbyte FW Disk
4.3      A4953A CD-ROM Drive
4.4      A4331D 20inch Color Monitor
4.5      DAT Drive
4.6      HP-UX Execution Environment
4.7      Others (I/O Cards, Cable,
         Manual, etc.)

5.       DCN Equipment Rack                                              2           2           2           2          2
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
                                                            SAN         SAN        SAN         SAN         SAN         SAN
Item                 Description                          For Chile  For Brazil    For       For UAE       For      For China
No.                                                       (Type 2)    (Type 2)    Mexico     (Type 2)    Indonesia   (Type 2)
                                                                                 (Type 2)                (Type 2)
                                                          -------------------------------------------------------------------
                                                            Q'ty        Q'ty       Q'ty        Q'ty        Q'ty        Q'ty
-----------------------------------------------------------------------------------------------------------------------------
<S>                                                        <C>       <C>         <C>         <C>         <C>        <C>
         HARDWARE

1.       Cisco Router
1.1      7507/4 7-Slot, 2 CyBus, 1 RSP4, Single Power        2           2          2           2           2          2
         Supply
1.2      SF75C-11.2.X IOS RSPx Series IP                     2           2          2           2           2          2
         Only
1.3      VIP2-40 Versatile Interface Processor-2             6           6          6           6           6          6
         Model 40
1.4      PA-FE-TX Fast Ethernet Port Adapter                 6           6          6           6           6          6
         (100Base-TX, 1-port)
1.5      PA-4E Ethernet 10Base-T Port Adapter (4-port)       2           2          2           2           2          2
1.6      PA-4T+ Enhanced Syncronous Serial Port              4           4          4           4           4          4
         Adapter (4-port)
1.7      CAB-X21MT X.21 Cable, DTE, Male, 10 Feet            2           2          2           2           2          2

2.       Cisco Eternet Switch
2.1      WS-C2926T Catalyst 10/100 Switch, Fixed
         24-10/100 RJ-45, 2-100BASE
         TX
2.2      WS-C2916M-XL 16-Port 10/100 FE Switch with 2        4           4          4           4           4          4
         Uplink Slots
2.3      WS-X2914-XL 4-Port 10/100 FE Switch Module          8           8          8           8           8          8
         for Catalyst 2916M-XL

3.       CYLINK Link Encryptor                               2           2          2           2           2          2

4.       DCN NMS
4.1      A4190A HP9000 B132L(VISUALIZE-EG)
4.2      A4477A 4Gbyte FW Disk
4.3      A4953A CD-ROM Drive
4.4      A4331D 20inch Color Monitor
4.5      DAT Drive
4.6      HP-UX Execution Environment
4.7      Others (I/O Cards, Cable,
         Manual, etc.)

5.       DCN Equipment Rack                                  2           2          2           2           2          2
</TABLE>

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------
                                                                SAN         NMC         NMC       TOTAL
Item                 Description                             For Korea    Primary     Back-up
No.                                                          (Type 1)

                                                          ---------------------------------------------
                                                               Q'ty        Q'ty        Q'ty       Q'ty
-------------------------------------------------------------------------------------------------------
<S>                                                          <C>          <C>         <C>         <C>
         HARDWARE

1.       Cisco Router
1.1      7507/4 7-Slot, 2 CyBus, 1 RSP4, Single Power           2           2           2          28
         Supply
1.2      SF75C-11.2.X IOS RSPx Series IP                        2           2           2          28
         Only
1.3      VIP2-40 Versatile Interface Processor-2                6           6           6          84
         Model 40
1.4      PA-FE-TX Fast Ethernet Port Adapter                    6           4           4          80
         (100Base-TX, 1-port)
1.5      PA-4E Ethernet 10Base-T Port Adapter (4-port)          2           2           2          28
1.6      PA-4T+ Enhanced Syncronous Serial Port                 4           4           4          56
         Adapter (4-port)
1.7      CAB-X21MT X.21 Cable, DTE, Male, 10 Feet               4           4           4          40

2.       Cisco Eternet Switch
2.1      WS-C2926T Catalyst 10/100 Switch, Fixed
         24-10/100 RJ-45, 2-100BASE                                         2           2           4
         TX
2.2      WS-C2916M-XL 16-Port 10/100 FE Switch with 2           4                                  48
         Uplink Slots
2.3      WS-X2914-XL 4-Port 10/100 FE Switch Module             8                                  96
         for Catalyst 2916M-XL

3.       CYLINK Link Encryptor                                  4           4           4          40

4.       DCN NMS
4.1      A4190A HP9000 B132L(VISUALIZE-EG)                                  1           1           2
4.2      A4477A 4Gbyte FW Disk                                              1           1           2
4.3      A4953A CD-ROM Drive                                                1           1           2
4.4      A4331D 20inch Color Monitor                                        1           1           2
4.5      DAT Drive                                                          1           1           2
4.6      HP-UX Execution Environment                                        1           1           2
4.7      Others (I/O Cards, Cable,                                          1           1           2
         Manual, etc.)

5.       DCN Equipment Rack                                     2           2           2          28
</TABLE>

                            Commercial in Confidence
<PAGE>   1290
DCN EQUIPMENT LIST

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------
                                                            SAN        SAN         SAN         SAN         SAN         SAN
Item                 Description                          For ICO-    For USA      For         For       For South   For India
No.                                                         NET      (Type 2)   Australia    Germany      Africa     (Type 2)
                                                                                (Type 1)     (Type 1)    (Type 1)
                                                          --------------------------------------------------------------------
                                                           Q'ty        Q'ty       Q'ty        Q'ty         Q'ty        Q'ty
------------------------------------------------------------------------------------------------------------------------------
<S>                                                       <C>        <C>        <C>          <C>         <C>         <C>
6.       Installation Materials                                          1           1           1           1          1

7.       Documentation                                                   1           1           1           1          1

8.       Integration Support Facility at
         Factory
8.1      Cisco Router
8.1.1    7507/4 7-Slot, 2 CyBus, 1 RSP4,                     1
         Single Power Supply
8.1.2    SF75C-11.2.X IOS RSPx Series IP                     1
         Only
8.1.3    VIP2-40 Versatile Interface                         3
         Processor-2 Model 40
8.1.4    PA-FE-TX Fast Ethernet Port                         3
         Adapter (100Base-TX, 1-port)
8.1.5    PA-4E Ethernet 10Base-T Port                        1
         Adapter (4-port)
8.1.6    PA-4T+ Enhanced Syncronous                          2
         Serial Port Adapter (4-port)
8.1.7    CAB-X21MT X.21 Cable, DTE, Male,                    1
         10 Feet

8.2      Cisco Eternet Switch
8.2.1    WS-C2926T Catalyst 10/100                           2
         Switch, Fixed 24-10/100 RJ-45,
         2-100BASE TX
8.2.2    WS-C2916M-XL 16-Port 10/100 FE                      2
         Switch with 2 Uplink Slots
8.2.3    WS-X2914-XL 4-Port 10/100 FE                        4
         Switch Module for Catalyst
         2916M-XL

8.3      Cylink Link Encryptor                               2

8.4      DCN NMS
8.4.1    A4190A HP9000 B132L(VISUALIZE-EG)                   1
8.4.2    A4477A 4Gbyte FW Disk                               1
8.4.3    A4953A CD-ROM Drive                                 1
8.4.4    A4331D 20inch Color Monitor                         1
8.4.5    DAT Drive                                           1
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
                                                            SAN         SAN        SAN         SAN         SAN         SAN
Item                 Description                          For Chile  For Brazil    For       For UAE       For      For China
No.                                                       (Type 2)    (Type 2)    Mexico     (Type 2)    Indonesia   (Type 2)
                                                                                 (Type 2)                (Type 2)
                                                          -------------------------------------------------------------------
                                                            Q'ty        Q'ty       Q'ty        Q'ty        Q'ty        Q'ty
-----------------------------------------------------------------------------------------------------------------------------
<S>                                                        <C>       <C>         <C>         <C>         <C>        <C>
6.       Installation Materials                              1           1          1           1           1          1

7.       Documentation                                       1           1          1           1           1          1

8.       Integration Support Facility at
         Factory
8.1      Cisco Router
8.1.1    7507/4 7-Slot, 2 CyBus, 1 RSP4,
         Single Power Supply
8.1.2    SF75C-11.2.X IOS RSPx Series IP
         Only
8.1.3    VIP2-40 Versatile Interface
         Processor-2 Model 40
8.1.4    PA-FE-TX Fast Ethernet Port
         Adapter (100Base-TX, 1-port)
8.1.5    PA-4E Ethernet 10Base-T Port
         Adapter (4-port)
8.1.6    PA-4T+ Enhanced Syncronous
         Serial Port Adapter (4-port)
8.1.7    CAB-X21MT X.21 Cable, DTE, Male,
         10 Feet

8.2      Cisco Eternet Switch
8.2.1    WS-C2926T Catalyst 10/100
         Switch, Fixed 24-10/100 RJ-45,
         2-100BASE TX
8.2.2    WS-C2916M-XL 16-Port 10/100 FE
         Switch with 2 Uplink Slots
8.2.3    WS-X2914-XL 4-Port 10/100 FE
         Switch Module for Catalyst
         2916M-XL

8.3      Cylink Link Encryptor

8.4      DCN NMS
8.4.1    A4190A HP9000 B132L(VISUALIZE-EG)
8.4.2    A4477A 4Gbyte FW Disk
8.4.3    A4953A CD-ROM Drive
8.4.4    A4331D 20inch Color Monitor
8.4.5    DAT Drive
</TABLE>

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------
                                                                SAN         NMC         NMC       TOTAL
Item                 Description                             For Korea    Primary     Back-up
No.                                                          (Type 1)

                                                          ---------------------------------------------
                                                               Q'ty        Q'ty        Q'ty       Q'ty
-------------------------------------------------------------------------------------------------------
<S>                                                          <C>          <C>         <C>         <C>
6.       Installation Materials                                 1           1           1          14

7.       Documentation                                          1           1           1          14

8.       Integration Support Facility at
         Factory
8.1      Cisco Router
8.1.1    7507/4 7-Slot, 2 CyBus, 1 RSP4,                                                            1
         Single Power Supply
8.1.2    SF75C-11.2.X IOS RSPx Series IP                                                            1
         Only
8.1.3    VIP2-40 Versatile Interface                                                                3
         Processor-2 Model 40
8.1.4    PA-FE-TX Fast Ethernet Port                                                                3
         Adapter (100Base-TX, 1-port)
8.1.5    PA-4E Ethernet 10Base-T Port                                                               1
         Adapter (4-port)
8.1.6    PA-4T+ Enhanced Syncronous                                                                 2
         Serial Port Adapter (4-port)
8.1.7    CAB-X21MT X.21 Cable, DTE, Male,                                                           1
         10 Feet

8.2      Cisco Eternet Switch
8.2.1    WS-C2926T Catalyst 10/100                                                                  2
         Switch, Fixed 24-10/100 RJ-45,
         2-100BASE TX
8.2.2    WS-C2916M-XL 16-Port 10/100 FE                                                             2
         Switch with 2 Uplink Slots
8.2.3    WS-X2914-XL 4-Port 10/100 FE                                                               4
         Switch Module for Catalyst
         2916M-XL

8.3      Cylink Link Encryptor                                                                      2

8.4      DCN NMS
8.4.1    A4190A HP9000 B132L(VISUALIZE-EG)                                                          1
8.4.2    A4477A 4Gbyte FW Disk                                                                      1
8.4.3    A4953A CD-ROM Drive                                                                        1
8.4.4    A4331D 20inch Color Monitor                                                                1
8.4.5    DAT Drive                                                                                  1
</TABLE>
<PAGE>   1291
DCN EQUIPMENT LIST

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------
                                                            SAN        SAN         SAN         SAN         SAN         SAN
Item                 Description                          For ICO-    For USA      For         For       For South   For India
No.                                                         NET      (Type 2)   Australia    Germany      Africa     (Type 2)
                                                                                (Type 1)     (Type 1)    (Type 1)
                                                          --------------------------------------------------------------------
                                                           Q'ty        Q'ty       Q'ty        Q'ty         Q'ty        Q'ty
------------------------------------------------------------------------------------------------------------------------------
<S>                                                       <C>        <C>        <C>          <C>         <C>         <C>
8.4.6    HP-UX Execution Environment                         1
8.4.7    Others (I/O Cards, Cable,                           1
         Manual, etc.)

9.       Spares (hardware)
9.1      Cisco Router
9.1.1    7507/4 7-Slot, 2 CyBus, 1 RSP4, Single Power                     1           1           1           1          1
         Supply
9.1.2    SF75C-11.2.X IOS RSPx Series IP                                  1           1           1           1          1
         Only
9.1.3    VIP2-40 Versatile Interface Processor-2                          3           3           3           3          3
         Model 40
9.1.4    PA-FE-TX Fast Ethernet Port Adapter                              3           3           3           3          3
         (100Base-TX, 1-port)
9.1.5    PA-4E Ethernet 10Base-T Port Adapter (4-port)                    1           1           1           1          1
9.1.6    PA-4T+ Enhanced Syncronous Serial Port                           2           2           2           2          2
         Adapter (4-port)
9.1.7    CAB-X21MT X.21 Cable, DTE, Male, 10 Feet                         1           1           1           1          1

9.2      Cisco Eternet Switch
9.2.1    WS-C2926T Catalyst 10/100 Switch, Fixed
         24-10/100 RJ-45, 2-100BASE TX

9.2.2    WS-C2916M-XL 16-Port 10/100 FE Switch with 2                     1           1           1           1          1
         Uplink Slots
9.2.3    WS-X2914-XL 4-Port 10/100 FE Switch Module                       2           2           2           2          2
         for Catalyst 2916M-XL

9.3      Cylink Link Encryptor                                            1           1           1           1          1

9.4      DCN NMS
9.4.1    A4190A HP9000 B132L(VISUALIZE-EG)
9.4.2    A4477A 4Gbyte FW Disk
9.4.3    A4953A CD-ROM Drive
9.4.4    A4331D 20inch Color Monitor
9.4.5    DAT Drive
9.4.6    HP-UX Execution Environment
</TABLE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------
                                                            SAN         SAN        SAN         SAN         SAN         SAN
Item                 Description                          For Chile  For Brazil    For       For UAE       For      For China
No.                                                       (Type 2)    (Type 2)    Mexico     (Type 2)    Indonesia   (Type 2)
                                                                                 (Type 2)                (Type 2)
                                                          --------------------------------------------------------------------
                                                            Q'ty        Q'ty       Q'ty        Q'ty        Q'ty        Q'ty
------------------------------------------------------------------------------------------------------------------------------
<S>                                                        <C>       <C>         <C>         <C>         <C>        <C>
8.4.6    HP-UX Execution Environment
8.4.7    Others (I/O Cards, Cable,
         Manual, etc.)

9.       Spares (hardware)
9.1      Cisco Router
9.1.1    7507/4 7-Slot, 2 CyBus, 1 RSP4, Single Power         1           1          1           1           1          1
         Supply
9.1.2    SF75C-11.2.X IOS RSPx Series IP                      1           1          1           1           1          1
         Only
9.1.3    VIP2-40 Versatile Interface Processor-2              3           3          3           3           3          3
         Model 40
9.1.4    PA-FE-TX Fast Ethernet Port Adapter                  3           3          3           3           3          3
         (100Base-TX, 1-port)
9.1.5    PA-4E Ethernet 10Base-T Port Adapter (4-port)        1           1          1           1           1          1
9.1.6    PA-4T+ Enhanced Syncronous Serial Port               2           2          2           2           2          2
         Adapter (4-port)
9.1.7    CAB-X21MT X.21 Cable, DTE, Male, 10 Feet             1           1          1           1           1          1

9.2      Cisco Eternet Switch
9.2.1    WS-C2926T Catalyst 10/100 Switch, Fixed
         24-10/100 RJ-45, 2-100BASE TX

9.2.2    WS-C2916M-XL 16-Port 10/100 FE Switch with 2         1           1          1           1           1          1
         Uplink Slots
9.2.3    WS-X2914-XL 4-Port 10/100 FE Switch Module           2           2          2           2           2          2
         for Catalyst 2916M-XL

9.3      Cylink Link Encryptor                                1           1          1           1           1          1

9.4      DCN NMS
9.4.1    A4190A HP9000 B132L(VISUALIZE-EG)
9.4.2    A4477A 4Gbyte FW Disk
9.4.3    A4953A CD-ROM Drive
9.4.4    A4331D 20inch Color Monitor
9.4.5    DAT Drive
9.4.6    HP-UX Execution Environment
</TABLE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------
                                                               SAN         NMC         NMC       TOTAL
Item                 Description                            For Korea    Primary     Back-up
No.                                                         (Type 1)

                                                          --------------------------------------------
                                                              Q'ty        Q'ty        Q'ty       Q'ty
------------------------------------------------------------------------------------------------------
<S>                                                         <C>          <C>         <C>         <C>
8.4.6    HP-UX Execution Environment                                                               1
8.4.7    Others (I/O Cards, Cable,                                                                 1
         Manual, etc.)

9.       Spares (hardware)
9.1      Cisco Router
9.1.1    7507/4 7-Slot, 2 CyBus, 1 RSP4, Single Power           1           1           1          14
         Supply
9.1.2    SF75C-11.2.X IOS RSPx Series IP                        1           1           1          14
         Only
9.1.3    VIP2-40 Versatile Interface Processor-2                3           3           3          42
         Model 40
9.1.4    PA-FE-TX Fast Ethernet Port Adapter                    3           3           3          42
         (100Base-TX, 1-port)
9.1.5    PA-4E Ethernet 10Base-T Port Adapter (4-port)          1           1           1          14
9.1.6    PA-4T+ Enhanced Syncronous Serial Port                 2           2           2          28
         Adapter (4-port)
9.1.7    CAB-X21MT X.21 Cable, DTE, Male, 10 Feet               1           1           1          14

9.2      Cisco Eternet Switch
9.2.1    WS-C2926T Catalyst 10/100 Switch, Fixed
         24-10/100 RJ-45, 2-100BASE TX                                      1           1           2

9.2.2    WS-C2916M-XL 16-Port 10/100 FE Switch with 2           1                                  12
         Uplink Slots
9.2.3    WS-X2914-XL 4-Port 10/100 FE Switch Module             2                                  24
         for Catalyst 2916M-XL

9.3      Cylink Link Encryptor                                  1           1           1          14

9.4      DCN NMS
9.4.1    A4190A HP9000 B132L(VISUALIZE-EG)                                  1           1           2
9.4.2    A4477A 4Gbyte FW Disk                                              1           1           2
9.4.3    A4953A CD-ROM Drive                                                1           1           2
9.4.4    A4331D 20inch Color Monitor                                        1           1           2
9.4.5    DAT Drive                                                          1           1           2
9.4.6    HP-UX Execution Environment                                        1           1           2
</TABLE>
<PAGE>   1292
DCN EQUIPMENT LIST

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------
                                                            SAN        SAN         SAN         SAN         SAN         SAN
Item                 Description                          For ICO-    For USA      For         For       For South   For India
No.                                                         NET      (Type 2)   Australia    Germany      Africa     (Type 2)
                                                                                (Type 1)     (Type 1)    (Type 1)
                                                          --------------------------------------------------------------------
                                                           Q'ty        Q'ty       Q'ty        Q'ty         Q'ty        Q'ty
------------------------------------------------------------------------------------------------------------------------------
<S>                                                       <C>        <C>        <C>          <C>         <C>         <C>
9.4.7    Others (I/O Cards, Cable,
         Manual, etc.)

9.5      Spare Cables
9.5.1    100 Base T-X Straight                                           1           1           1           1          1
9.5.2    100 Base T-X Cross                                              1           1           1           1          1
9.5.3    10 Base T Cross (NMC/BNMC Site Only)
9.5.4    X.21 DTE                                                        1           1           1           1          1
9.5.5    RS-232C (D-Sub)                                                 1           1           1           1          1
9.5.6    RS-232C (Modular Jack)                                          1           1           1           1          1

         SOFTWARE LICENCE

1.       Cisco FR-WPP75 RSP1, RSP2, RSP7000, WAN                         2           2           2           2          2
         Packet Protocol Licence

2.       HP Open View NNM 5.0 Software Set

3        CISCO Works for HP Openview HP-UX
         (CW-4.0-OVH) and CWSI, HP-UX Openview,
         Standalone (CWSI-2.1-OVH)

4        Integration Support Facility at
         Factory
4.1      Cisco FR-WPP75 RSP1, RSP2,                           1
         RSP7000, WAN Packet Protocol
         Licence
4.2      HP Open View NNM 5.0 Software Set                    1
4.3      CISCO Works for HP Openview                          1
         HP-UX (CW-4.0-OVH) and   CWSI,
         HP-UX Openview, Standalone
         (CWSI-2.1-OVH)

5        Software Licence for Spares
5.1      Cisco FR-WPP75 RSP1, RSP2, RSP7000, WAN                         1           1           1           1          1
         Packet Protocol Licence
5.2      HP Open View NNM 5.0 Software Set
</TABLE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------
                                                            SAN         SAN        SAN         SAN         SAN         SAN
Item                 Description                          For Chile  For Brazil    For       For UAE       For      For China
No.                                                       (Type 2)    (Type 2)    Mexico     (Type 2)    Indonesia   (Type 2)
                                                                                 (Type 2)                (Type 2)
                                                          --------------------------------------------------------------------
                                                            Q'ty        Q'ty       Q'ty        Q'ty        Q'ty        Q'ty
------------------------------------------------------------------------------------------------------------------------------
<S>                                                        <C>       <C>         <C>         <C>         <C>        <C>
9.4.7    Others (I/O Cards, Cable,
         Manual, etc.)

9.5      Spare Cables
9.5.1    100 Base T-X Straight                               1           1          1           1           1          1
9.5.2    100 Base T-X Cross                                  1           1          1           1           1          1
9.5.3    10 Base T Cross (NMC/BNMC Site Only)
9.5.4    X.21 DTE                                            1           1          1           1           1          1
9.5.5    RS-232C (D-Sub)                                     1           1          1           1           1          1
9.5.6    RS-232C (Modular Jack)                              1           1          1           1           1          1

         SOFTWARE LICENCE

1.       Cisco FR-WPP75 RSP1, RSP2, RSP7000, WAN             2           2          2           2           2          2
         Packet Protocol Licence

2.       HP Open View NNM 5.0 Software Set

3        CISCO Works for HP Openview HP-UX
         (CW-4.0-OVH) and CWSI, HP-UX Openview,
         Standalone (CWSI-2.1-OVH)

4        Integration Support Facility at
         Factory
4.1      Cisco FR-WPP75 RSP1, RSP2,
         RSP7000, WAN Packet Protocol
         Licence
4.2      HP Open View NNM 5.0 Software Set
4.3      CISCO Works for HP Openview
         HP-UX (CW-4.0-OVH) and   CWSI,
         HP-UX Openview, Standalone
         (CWSI-2.1-OVH)

5        Software Licence for Spares
5.1      Cisco FR-WPP75 RSP1, RSP2, RSP7000, WAN             1           1          1           1           1          1
         Packet Protocol Licence
5.2      HP Open View NNM 5.0 Software Set
</TABLE>

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------
                                                                SAN         NMC         NMC       TOTAL
Item                 Description                             For Korea    Primary     Back-up
No.                                                          (Type 1)

                                                          ---------------------------------------------
                                                               Q'ty        Q'ty        Q'ty       Q'ty
-------------------------------------------------------------------------------------------------------
<S>                                                          <C>          <C>         <C>         <C>
9.4.7    Others (I/O Cards, Cable,                                          1           1           2
         Manual, etc.)

9.5      Spare Cables
9.5.1    100 Base T-X Straight                                  1           1           1          14
9.5.2    100 Base T-X Cross                                     1           1           1          14
9.5.3    10 Base T Cross (NMC/BNMC Site Only)                               1           1           2
9.5.4    X.21 DTE                                               1           1           1          14
9.5.5    RS-232C (D-Sub)                                        1           1           1          14
9.5.6    RS-232C (Modular Jack)                                 1           1           1          14

         SOFTWARE LICENCE

1.       Cisco FR-WPP75 RSP1, RSP2, RSP7000, WAN                2           2           2          28
         Packet Protocol Licence

2.       HP Open View NNM 5.0 Software Set                                  1           1           2

3        CISCO Works for HP Openview HP-UX
         (CW-4.0-OVH) and CWSI, HP-UX Openview,
         Standalone (CWSI-2.1-OVH)                                          1           1           2

4        Integration Support Facility at
         Factory
4.1      Cisco FR-WPP75 RSP1, RSP2,                                                                 1
         RSP7000, WAN Packet Protocol
         Licence
4.2      HP Open View NNM 5.0 Software Set                                                          1
4.3      CISCO Works for HP Openview
         HP-UX (CW-4.0-OVH) and   CWSI,
         HP-UX Openview, Standalone
         (CWSI-2.1-OVH)

5        Software Licence for Spares
5.1      Cisco FR-WPP75 RSP1, RSP2, RSP7000, WAN                1           1           1          14
         Packet Protocol Licence
5.2      HP Open View NNM 5.0 Software Set                                  1           1           2
</TABLE>
<PAGE>   1293
DCN EQUIPMENT LIST

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------
                                                            SAN        SAN         SAN         SAN         SAN         SAN
Item                 Description                          For ICO-    For USA      For         For       For South   For India
No.                                                         NET      (Type 2)   Australia    Germany      Africa     (Type 2)
                                                                                (Type 1)     (Type 1)    (Type 1)
                                                          --------------------------------------------------------------------
                                                           Q'ty        Q'ty       Q'ty        Q'ty         Q'ty        Q'ty
------------------------------------------------------------------------------------------------------------------------------
<S>                                                       <C>        <C>        <C>          <C>         <C>         <C>
</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
                                                            SAN         SAN        SAN         SAN         SAN         SAN
Item                 Description                          For Chile  For Brazil    For       For UAE       For      For China
No.                                                       (Type 2)    (Type 2)    Mexico     (Type 2)    Indonesia   (Type 2)
                                                                                 (Type 2)                (Type 2)
                                                          -------------------------------------------------------------------
                                                            Q'ty        Q'ty       Q'ty        Q'ty        Q'ty        Q'ty
-----------------------------------------------------------------------------------------------------------------------------
<S>                                                        <C>       <C>         <C>         <C>         <C>        <C>
</TABLE>

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------
                                                                SAN         NMC         NMC       TOTAL
Item                 Description                             For Korea    Primary     Back-up
No.                                                          (Type 1)

                                                          ---------------------------------------------
                                                               Q'ty        Q'ty        Q'ty       Q'ty
-------------------------------------------------------------------------------------------------------
<S>                                                          <C>          <C>         <C>         <C>
</TABLE>

The equipment purchased under item No.8 for the Integration Support Facility at
Factory shall remain at NEC Yokohama until such a time when ICO/NEC mutually
agree that it no longer can be utilized effectively, after which it will be used
as ICO spares.
<PAGE>   1294
[LOGO ICO]          ANNEX 1 CONTRACTOR'S DELIVERABLES        EN-IG-ICO-SW/000002
                                                             Version 3.6
                                                             25 March, 1998

8.2               NOTES TO AX & B ITEMS

8.2.1.1           General Comments:

                  1) Any O&M functions for selected items are not included.

8.2.1.2           Note 1: "SAN TO SAN HANDOVER.
                  Refer to Section 6.12 in the IGFR. The hardware required to
                  implement and test SAN-SAN handovers, is test equipment. This
                  includes the purchase of specific test instrument protocol
                  suites to test the added functions.

8.2.1.3           Note 2: "Language Character Sets"
                  Refer to Section 4.4.3 in the IGFR.

8.2.1.4           Note 3: "Geographic Location"
                  Refer to Section 6.19.5 in the IGFR.

8.2.1.5           Note 4: "Multiple Language Announcement".
                  Refer to Section 4.4.3 in the IGFR. The 2 recorded
                  announcement machines mentioned in the following note are
                  included in the equipment list for the MSSC (AST-DR, Equipment
                  item 1.2.3.2)

8.2.1.6           The following technique is proposed as a way to support a
                  language indicator per subscriber.

                  i.   The indicator shall be stored as part of the subscriber
                       profile within the HLR. This involves support in the
                       operation and maintenance interface for entering the
                       language preference, changing it, and printing it back
                       out again. This data is reload marked as is the rest of
                       the subscriber profile. Number range and mapping to
                       national strings (e.g. 1=U.S.A.) should be defined.
                       Administrative functions outside the HLR (e.g. SOG) are
                       also influenced in a minor way.

                  ii.  The indicator shall be downloaded to VLR along with the
                       rest of the subscriber data.

                  iii. Transportation is via the extension area in MAP. The
                       impact here is on the MAP handling blocks on the HLR end
                       and on the VLR end (two blocks). The data storage block
                       in VLR is impacted to store the new value.

                  iv.  The support for character sets (e.g. for SMS) is limited
                       to that offered in current GSM systems. As other
                       operators are already requiring additional alphabets and
                       characters, this is unlikely to remain a problem in
                       future.

                                                                              18
Proprietary & Confidential to ICO Global Communications

                                                             Created on 25/02/98
<PAGE>   1295
[LOGO ICO]          ANNEX 1 CONTRACTOR'S DELIVERABLES       EN-IG-ICO-SW/000002
                                                             Version 3.6
                                                             25 March, 1998

8.2.1.7           NOTE 5: "EMERGENCY CALL"
                  Refer to Section 4.1.1.2. The hardware required to implement
                  and test Emergency Call expansion, is test equipment. This
                  include the purchase of specific test instrument protocol
                  suites to test the added functions.

8.2.1.8           NOTE 6: "FAX GROUP 3 OVER 9.6KBIT/S"
                  Refer to Section 4.1.3.2 in the IGFR. Channel base quotation
                  in the MSSC is needed and provided in Item 16. The hardware
                  quoted in this item means test equipment for implementing and
                  testing FAX over 9600bit/s functionality. This include the
                  purchase of specific test instrument protocol suites to test
                  the added functions.

8.2.1.9           NOTE 7: "SPEECH FOLLOWED BY/ALTERNATIVE WITH DATA"
                  Refer to Section 4.2.3 in the IGFR. The hardware required to
                  implement and test Alternate speech/data, is test equipment.
                  This include the purchase of specific test instrument protocol
                  suites to test the added functions.

8.2.1.10          NOTE 8: "CIRCUIT MODE DATA (9.6 KBPS - 38.4 KBPS)
                  Refer to Section 4.2.2 in the IGFR. Channel base quotation in
                  the MSSC is needed and provided in Item 16. The hardware
                  required to implement and test DATA over 9600bit/s, is test
                  equipment. This include the purchase of specific test
                  instrument protocol suites to test the added functions.

8.2.1.11          NOTE 9: "HPN PRIVACY USING ENCRYPTION"
                  Refer to Section 4.4.1.2 in the IGFR.

8.2.1.12          NOTE 10: "ALTERNATIVE SATELLITE CONSTELLATION"
                  This item is not bided. Refer to Section 6.23 in the IGFR.

8.2.1.13          NOTE 11: "NETWORK ACCESS AVAILABILITY"
                  Refer to Section 6.8 in the IGFR. The hardware required to
                  implement and test multi SAN paging, is test equipment. This
                  includes the purchase of specific test instrument protocol
                  suites to test the added functions.

8.2.1.14          NOTE 12: "DIVERSITY ALLOCATION CAPACITY"
                  Refer to Section 6.11.1 in the IGFR.

8.2.1.15          NOTE 13: "ADDITION/REMOVAL OF DIVERSITY"
                  Refer to Section 6.11.2 in the IGFR.

8.2.1.16          NOTE 14: "SOFT DECISION DECODE"
                  Soft Decision will be performed in the SBS.

8.2.1.17          NOTE 15: "INCOMING CALL DETAILS/CALL-BACK FUNCTION"
                  Tentative release date is 1Q2000.

                                                                              19
Proprietary & Confidential to ICO Global Communications

                                                             Created on 25/02/98
<PAGE>   1296
[LOGO ICO]          ANNEX 1 CONTRACTOR'S DELIVERABLES        EN-IG-ICO-SW/000002
                                                             Version: 3.6
                                                             25 March, 1998

8.2.1.18          NOTE 16: "SOFTWARE FOR HIGH SPEED CIRCUIT SWITCHED DATA AND
                  GROUP FAX SERVICES" (PER CHANNEL BASIS)

                  What we propose will provide support for data at rates in the
                  range of 9.6 - 38.4 kbit/s. Circuit Switched Data at these
                  rates will be supported from release R8 of CME20. Fax Group 3
                  (over 9.6 kbit/s) is similarly supported.

8.2.1.19          The critical dimensioning parameter in calculating the price
                  is the number of GIWU channels necessary to support the
                  required data and fax total traffic. THIS QUOTATION IN SUBJECT
                  TO FINALISATION OF THE AIR INTERFACE SPECIFICATION

                                                                              20
Proprietary & Confidential to ICO Global Communications      Created on 25/02/98
<PAGE>   1297
[LOGO ICO]          ANNEX 1 CONTRACTOR'S DELIVERABLES        EN-IG-ICO-SW/000002
                                                             Version 3.6
                                                             25 March, 1998

9.                DELIVERABLE SERVICES

9.1               The Contractor shall install, integrate, test, and hand over
                  to ICO all individual SANs and the NMC and backup NMC that
                  make up the integrated IGF.

9.2               ICONET Integration programme as defined in Annex 9 and
                  selectable by ICO.

9.3               Training programme as defined in Annex 5.

10.               SITE INSTALLATION DELIVERABLES

                  The Contractor shall provide:

10.1              confirmation that the information and services being provided
                  by ICO in accordance with Annex 2 and 3, present no impediment
                  to the SAN implementation program

10.2              antenna foundation design drawings (SIC-STD-017, 017-1, 018 )
                  for typical wind loading, based on NEC supplied drawings
                  SIC-STD-017,017-1,018, within one month of contract signature

10.3              the anchor bolts, templates and anchor bolt setting up
                  procedures for the antenna foundations three months prior to
                  commencement of NEC installation

10.4              the detailed specification for the supporting rod and cable
                  ducts for the GPS systems during the SBS FDR

10.5              the RFT shelter foundation specification, including, but not
                  limited to physical dimensions and weight, based on NEC
                  supplied drawings SIC-STD-006, within one month of contract
                  signature

10.6              the AC power distribution board inside all RFT shelters

10.7              specifications defining all of the interface points and the
                  associated interface conditions for all Equipment supplied, in
                  accordance with a schedule to be agreed at the DRM

10.8              the Equipment floor layout plans for all Sites for all
                  Equipment to be supplied by the Contractor, based on NEC
                  supplied drawings SIC-STD-003/003-1 for RFT shelters, and
                  SIC-STD-004 for Hub Buildings, within one month of contract
                  signature

10.9              the specification of the power consumption, including, but not
                  limited to start-up and normal operating loads and required
                  no-fuse breaker capacities and quantities for all of the
                  equipment that will be supplied by the Contractor and for
                  future expansion of the Equipment, in accordance with the NEC
                  provided Equipment List, within one month of contract
                  signature

                                                                              21
Proprietary & Confidential to ICO Global Communications      Created on 25/02/98
<PAGE>   1298
[LOGO ICO]          ANNEX 1 CONTRACTOR'S DELIVERABLES        EN-IG-ICO-SW/000002
                                                             Version 3.6
                                                             25 March, 1998

10.10             the specification of Equipment heat dissipation for all items
                  of Equipment that will be supplied by the Contractor and for
                  future expansion of the Equipment, in accordance with the NEC
                  provided Equipment List, within one month of contract
                  signature

10.11             the environmental conditions that shall apply for all items of
                  Equipment that will be supplied by the Contractor, have been
                  specified in the IGFR Section 8.11.3

10.12             Certificates, where required, to confirm that all the
                  equipment, supplied for use in the country, meets all local
                  and federal regulations and or standards applicable in that
                  country.

11.               SYSTEM CONFIGURATION INFORMATION

                  ICO shall provide the configuration information in the format
                  defined by the Contractor. The Contractor shall configure the
                  equipment as per the supplied configuration information and
                  shall provide ICO at handover the details of the configuration
                  in a form to be agreed.

                                                                              22
Proprietary & Confidential to ICO Global Communications

                                                             Created ON 25/02/98
<PAGE>   1299
                        CHANGE ORDER NO:3 ATTACHMENT 6

ANNEX 5 - TRAINING
<PAGE>   1300
[LOGO ICO]                               ICO GLOBAL COMMUNICATIONS
                                         1 QUEEN CAROLINE STREET
                                         HAMMERSMITH
                                         LONDON W6 9BN
                                         UNITED KINGDOM

                                         TEL: +44 181 600 1000
                                         FAX: +44 181 600 1199

                                         I-CO SERVICES LIMITED
                                         REGISTERED IN ENGLAND: NO.3045294
                                         REGISTERED OFFICE: 1 QUEEN CAROLINE ST.
                                         LONDON W6 9BN UK

                               ANNEX 5 - TRAINING

                             COMMERCIALLY SENSITIVE
                             REPRODUCTION PROHIBITED

CONFIDENTIALITY STATEMENT

ALL INFORMATION CONTAINED IN THIS DOCUMENT IS CONFIDENTIAL AND PROPRIETY TO ICO
GLOBAL COMMUNICATIONS OR ANY OTHER MEMBER OF THE ICO GLOBAL COMMUNICATIONS GROUP
AND INTENDED ONLY FOR THE ADDRESSEE TO WHOM THIS COPY IS ADDRESSED. THE
RECIPIENT SHALL NEITHER COPY, DISTRIBUTE, DISCLOSE OR USE THE INFORMATION
CONTAINED IN IT FOR ANY PURPOSE OTHER THAN FOR WHICH THIS DOCUMENT HAS BEEN MADE
AVAILABLE NOR PERMIT ANYONE ELSE TO DO THE SAME. THE RECIPIENT SHALL BE HELD
FULLY LIABLE FOR ANY WRONGFUL DISCLOSURE OR USE OF ANY OF THE INFORMATION
CONTAINED IN THIS DOCUMENT BY HIM, OR HIS OFFICERS OR EMPLOYEES OR ANYONE ELSE
TO WHOM HE MAKES THE INFORMATION AVAILABLE.

              DOCUMENT NO.:       EN-IG-ICO-SW/000006

              VERSION:            2.5

              DATE:               30 March 1998

    PREPARED                      ICO                    NEC

    AUTHOR:                       TITLE: VP ICONET       TITLE: Program Manager

                                  SIGNATURE:             SIGNATURE:

                                  /s/ G.L. Titzer        /s/ T. Furokawa
                                  ------------------     ---------------
                                       G.L. Titzer         T. Furokawa
<PAGE>   1301
                                                            EN.IG-ICO-SW/000006
   [LOGO ICO]                 Annex 5 - Training            ISSUE:  2.5
                                                            30 March 1998

AMENDMENT RECORD

<TABLE>
<CAPTION>
REVISIONS      DATE         CN NO.        REASON FOR CHANGE
---------      ----         ------        -----------------
<S>            <C>          <C>           <C>
1.0            14/02/97                   NEC Contract Issue
2.0            17/2/97                    To incorporate final NEC comments.
2.1            19/2/97                    Incorporate new para 1.4
2.2            26/2/97                    Changes to table para 4.3 new para 4.5
2.3            26/2/97                    Minor editorial changes
2.4            25/2/98                    Addition of new 'options' training
2.5            9/3/98                     Addition of DCN Training
               30/3/98                    Corrected Header Version Number
</TABLE>

                                                             1 Confidential
                                                       ICO Global Communications
<PAGE>   1302
                                                             EN-IG-ICO-SW/000006
[LOGO ICO]                    ANNEX 5 - TRAINING             ISSUE: 2.5
                                                             30 March 1998

TABLE OF CONTENTS

<TABLE>
<S>                                                                            <C>
        1. GENERAL                                                             3

        2. COURSE 1 - OPERATION & MAINTENANCE                                  3

        3. COURSE 2 - ICO'S INSTRUCTOR'S TRAINING                              5

        4. COURSE 3 - SYSTEM ARCHITECTURE AND OPERATION & MAINTENANCE          6

        5. ADDITIONAL OPTIONS TRAINING                                         8

        6. GENERAL TRAINING CONDITIONS                                         8
</TABLE>

                                                             2 Confidential
                                                       ICO Global Communications
<PAGE>   1303
                                                             EN-IG-ICO-SW/000006
[LOGO ICO]                    ANNEX 5 - TRAINING             ISSUE: 2.5
                                                             30 March 1998

1.                GENERAL

1.1.              This Annex sets out the scope of the training courses, for the
                  ICO staff.

1.2.              The training courses are summarised below:

1.2.1.            On Site Operation and Maintenance Course at each SAN Site

1.2.2.            ICO Training Instructor Course at one SAN Site and one NMC
                  Site

1.2.3.            System Architecture and Operation and Maintenance Course at an
                  NMC

1.3.              The Contractor in conjunction with ICO will develop a detailed
                  training plan within 6 months of execution of this Agreement.

1.4.              ICO and the Contractor shall work closely together to develop
                  a training program that does not impact on the Master Level
                  Schedule which ensures availability of trained ICO staff at a
                  time when O & M services are required.

                                                             3 Confidential
                                                       ICO Global Communications

<PAGE>   1304
                                                             EN-IG-ICO-SW/000006
[LOGO ICO]                    ANNEX 5 - TRAINING             ISSUE: 2.5
                                                             30 March 1998

2.                COURSE 1 - OPERATION & MAINTENANCE

2.1.              An On-Site Operation and Maintenance course shall be carried
                  out at each of the twelve SAN Sites.

2.2.              The purpose of this course is to provide the SAN Operator's
                  operation and maintenance staff with an understanding of the
                  operation and maintenance of the relevant system and
                  sub-systems.

                  The duration of the Course, for each of the twelve (12) SAN
                  Sites, shall be as shown below:

<TABLE>
<CAPTION>
                      Item      Description                            Duration (Days)
                      ----      -----------                            ---------------
<S>                             <C>                                    <C>
                       1        Overall SAN and NMC System                   10
                       2        RFT,                                         10
                       3        MSSC/VLR and related equipment               45
                                -  AXE 10 System Survey
                                -  AXE 10 Cellular O&M, basics
                                -  OSS Operation
                                -  HPN
                       4        SBS                                          15
                       5        TNM                                           5
                       7        SAN OSS                                       5
                       8        DCN System                                    2
</TABLE>

         The courses shall include the following elements for each subsystems:
                  a) Principles and functional design
                  b) Interfaces and interaction with other subsystems
                  c) Safety aspects
                  d) Operation (local and remote)
                  e) Emergency operation
                  f) Routine maintenance
                  g) Troubleshooting

2.3.              The number of SAN Operator's students, participating in each
                  of the above courses, shall be a maximum of 10 students.

                                                             4 Confidential
                                                       ICO Global Communications

<PAGE>   1305
                                                             EN-IG-ICO-SW/000006
[LOGO ICO]                    ANNEX 5 - TRAINING             ISSUE: 2.5
                                                             30 March 1998

2.4.              Because the RFT sub-systems, particularly at the first six
                  TT&C SAN Sites, shall be completed earlier than the
                  SBS/MSSC/TNM systems the RFT On Site Operation and Maintenance
                  training courses at the TT&C SAN Sites shall be held, after
                  completion of the Installation Phase 2-1 Test of the 2 RFT
                  Sub-systems committed for early availability for TT&C
                  Integration testing at each of six TT&C SAN Sites.

2.5.              The Contractor shall provide background material and any other
                  training course notes to supplement the operation and
                  maintenance handbook.

2.6.              The Contractor shall allow "over the shoulder" observation,
                  during the Equipment installation and testing.

3.                COURSE 2 - ICO'S INSTRUCTOR'S TRAINING

3.1.              A training course shall be held for ICO's own Training
                  Instructors.

3.2.              The purpose of this course is to train ICO's Training
                  instructors so that they shall be able to carry out their own
                  training courses on the SAN system architecture, as well as
                  the operation and maintenance of the SAN and NMC systems.

3.3.              The duration of the On Site ICO Instructor's Training course
                  shall be as shown in the table below. The starting date is to
                  be mutually agreed during the course of the Supply Agreement.

<TABLE>
<CAPTION>
                    Item    Description                               Duration (Days)
                    ----    -----------                               ---------------
<S>                         <C>                                       <C>
                     1      Overall SAN and NMC System                       10
                     2      RFT                                              10
                     3      MSSC/VLR and related equipment                   65
                            - AXE 10 System Survey
                            - AXE 10 Cellular O&M, basics
                            - MSC/VLR/HLR O&M
                            - OSS Operation
                            - AXE 10 IOG O&M Advanced
                            - AXE Extended Software Maintenance
                            - HPN
                     4      SBS                                              25
                     5      TNM                                               5
                     7      NMS/SRMC/SAN OSS                                 20
                     8      DCN System                                        4
</TABLE>

                                                             5 Confidential
                                                       ICO Global Communications

<PAGE>   1306
                                                             EN-IG-ICO-SW/000006
[LOGO ICO]                    ANNEX 5 - TRAINING             ISSUE: 2.5
                                                             30 March 1998

3.4.              The number of ICO Training Instructors, participating in each
                  of the above courses, shall be a maximum of 15 students.

3.5.              The ICO Training Instructors training course shall be held at
                  one of the twelve (12) SAN Sites, to be elected by ICO, for
                  the RFT, SBS, HPN, MSSC, TNM, SAN-OSS and DCN sub-systems and
                  at one of the two (2) NMC Sites for the NMS/SRMC and DCN
                  sub-systems.

3.6.              Because the RFT sub-systems, particularly at the first six
                  TT&C SAN Sites, shall be completed earlier than the
                  SBS/HPN/MSSC/TNM/DCN systems the RFT training course for the
                  ICO Training Instructors may be held correspondingly earlier
                  than the remaining training courses.

3.7.              The Contractor shall provide background material and any other
                  training course notes to supplement the operation and
                  maintenance handbook.

                                                             6 Confidential
                                                       ICO Global Communications

<PAGE>   1307
                                                             EN-IG-ICO-SW/000006
[LOGO ICO]                    ANNEX 5 - TRAINING             ISSUE: 2.5
                                                             30 March 1998

4.                COURSE 3 - SYSTEM ARCHITECTURE AND OPERATION & MAINTENANCE

4.1.              A training course shall be held for training ICO's engineering
                  staff at one of the NMC Sites, to be elected by ICO.

4.2.              The purpose of this course is to provide the ICO engineers
                  with an understanding of the system architecture and overview
                  of the operation and maintenance of all the SAN's from the
                  NMC.

4.3.              The duration of the System Architecture and Operation and
                  Maintenance training course shall be as shown below:

<TABLE>
<CAPTION>
                      Item      Description                                Duration (Days)
                      ----      -----------                                ---------------
<S>                             <C>                                        <C>
                       1        Overall SAN and NMC System                       10
                       2        RFT                                              10
                       3        MSSC/VLR and related equipment                   40
                                - Telecom Network & AXE 10 - Introduction
                                - AXE 10 System Survey
                                - MSC/VLR/HLR O&M
                                - OSS Operation
                                - AUC/EIR Training
                                - HPN
                       4        SBS                                              15
                       5        TNM                                               5
                       6        NMS/SRMC/SAN OSS                                 10
                       7        DCN System                                        3
</TABLE>

4.4.              The number of ICO engineers, participating in each of the
                  above courses, shall be a maximum of 10 students.

4.5               Training for the MXE option, as defined in Annex 1 of the SOW,
                  will be included if ICO elect to exercise this option.

                                                                 7  Confidential
                           ICO Global Communications
<PAGE>   1308
                                                             EN.IG-ICO-SW/000006
[LOGO ICO]                    ANNEX 5 - TRAINING             ISSUE: 2.5
                                                             30 March 1998

5.                ADDITIONAL OPTIONS TRAINING

5.1               The following additional training courses shall be held for
                  ICO SAN site staff.

5.2               The messaging and & ILR O&M courses will be taught only at the
                  SAN Sites where this equipment will be installed. These sites
                  will be confirmed by ICO as per Table 1 of Annex 1 to the SOW.
                  The duration of the courses are shown below.

<TABLE>
<CAPTION>
                      Item      Description                 Duration (Days)
                      ----      -----------                 ---------------
<S>                             <C>                         <C>
                       1        LIAS O&M                            5
                       2        Messaging O&M                      10
                       3        ILR O&M                             5
</TABLE>

5.3               The number of ICO Engineers, participating in each of the
                  above courses, shall be a maximum of 10 people.

5.4               The following training courses will be held for ICO's NMC
                  staff at the PNMC or the BNMC at ICO's discretion.

5.5               The duration of these courses are as shown below:

<TABLE>
<CAPTION>
                      Item      Description                           Duration (Days)
                      ----      -----------                           ---------------
<S>                             <C>                                   <C>
                       1        LIMS Operator Administration                  5
                       2        Messaging Administration                     10
                       3        ILR Administration Management                 5
</TABLE>

5.6               The number of ICO engineers, participating in each of the
                  above courses, shall be a maximum of 10 people.

5.7               NEC to propose syllabus & schedule for the above courses in
                  consultation with ICO.

5.8               Appropriate training courses on the additional options, i.e.
                  Legal Interception, Messaging and ILR systems, for ICO's 15
                  instructors will be agreed with ICO.

                                                                 8  Confidential
                                     ICO Global Communications
<PAGE>   1309
                                                             EN.IG-ICO-SW/000006
[LOGO ICO]                    ANNEX 5 - TRAINING             ISSUE: 2.5
                                                             30 March 1998

6.                GENERAL TRAINING CONDITIONS

6.1.              Training shall consist of a combination of lecture style
                  training and hands-on training. The style of training shall be
                  dependant on the particular training course, and convenience
                  of the training syllabus.

6.2.              ICO shall make the relevant system and sub-systems available
                  as required, for the purposes of hands-on training.

6.3.              The students shall, as a minimum, have background knowledge
                  and understanding of one or more of the following
                  technologies -:

                  -  Satellite Communications

                  -  Cellular mobile switching

                  -  Installation of electronic systems

                  -  Familiarity with PCs and Work Station operator consoles

6.4.              The students shall, as a minimum, have a good working
                  knowledge and understanding of the English language.

6.5.              Training shall be carried out during normal local working
                  hours nominally from 9:00am - 5:00pm 5 days a week.

6.6.              ICO shall make the required staff available during these hours
                  for the training course.

6.7.              Training courses shall be conducted in the English Language by
                  technical training experts from the Contractor. The trainers
                  shall be experienced in training staff whose mother tongue is
                  not English.

6.8.              One Copy of training notes shall be provided for each student,
                  in the English language. All the training documentation shall
                  be provided in the English language and shall preferably use
                  SI units. A copy of the training material shall be supplied to
                  both ICO and the SAN operator one month before the
                  commencement of the training session.

                                                                  9 Confidential
                                      ICO Global Communications
<PAGE>   1310
                                                             EN.IG-ICO-SW/000006
[LOGO ICO]                    ANNEX 5 - TRAINING             ISSUE: 2.5
                                                             30 March 1998

6.9.              ICO shall supply the following training facilities at each
                  SAN/NMC training Site for the duration of the training:

                  -   Training room with seating and lighting for at least 10
                      students and one instructor

                  -   Overhead Projector Facilities for transparency
                      presentation

                  -   Video Recorder and Television facilities

                  -   White Board Facilities

                  -   PC Overhead Projector Facilities

                  -   Photocopy Machine

                  -   Printer

                                                                 10 Confidential
                                      ICO Global Communications

<PAGE>   1311
21 December 1998
Our Ref: SA1387/WG7/19981221/GW

                                                                [ICO LETTERHEAD]

NEC Corporation
c/o NEC Program Office
5th Floor, Horatio House
77-85 Fulham Palace Road
Hammersmith
London W6 8JC

For the attention of Mr Tadao Furukawa

Dear Sirs

SUBJECT: CLOSURE OF CHANGE ORDER NO 3

Attached are the two (2) originals of the document, signed by ICO's Supervising
Officer, recording the closure of Change Order No 3, together with one (1) copy
of the associated schedules.

Please arrange for the signature of one (1) copy by the Contractor's Authorised
Representative of the document recording the Closure of this Change Order, and
its subsequent return to ICO.

The other original of the document recording the Closure of Change Order No 3
and the attached associated schedules which have been initialled by ICO, are
for the Contractor's records.

Please sign and return the enclosed copy of this letter to acknowledge receipt
of the above documents.

Yours faithfully

/s/ George Wiginton
---------------------
George Wiginton
Procurement Manager

Cc: Mr Mineo Hattori, Mr M Takata, NEC Document Manager
    G Titzer, ICONET Project Office

<PAGE>   1312
Receipt of the documents listed above acknowledged.

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

For and on behalf of                    Date
NEC Corporation

<PAGE>   1313
                         CLOSURE OF CHANGE ORDER NO. 3

Attachment 1 to this Closure of Change Order No 3 is the mutually agreed revised
Payment Schedule Classification Summary within Schedule 11 which the parties
hereby agree shall form Attachment 4 to Change Order No 3 and shall be
incorporated into, and form part of, the Supply Agreement dated 3rd March 1997
without the need for the parties to formalise its incorporation by way of
further Change Order, all as foreseen in Change Order No 3 which was executed on
31 March 1998.

As a apart of the preparation of the Payment Schedule Classification Summary
referred to above, the parties also agreed to change the description of the
financial units from US$'000 to US$ that appear in Appendix 2 of Schedule 9
(Pricing Schedule) which formed Appendix 3.3 of Change Order No 3. Appendix 2 of
Schedule 9, with its financial units restated as described above, is Attachment
2 to this Closure of Change Order No 3.

There is no change to the total aggregate price, or to the further sum, shown in
Attachment 1 of Change Order No 3 resulting from Attachments 1 and 2 to this
Closure of Change Order No 3.

These Attachments 1 and 2 will now form a part of the Supply Agreement dated 3rd
March 1997 and shall be effective from 31 March 1998.

Signed for and on behalf of                  Signed for and on behalf of
ICO Global Communications                    NEC Corporation
Holdings BV

/s/       ***
----------------------------                 ----------------------------
Supervising Officer                          Contractor's Authorised
                                             Representative

17/12/98
----------------------------                 ----------------------------
Date                                         Date

<PAGE>   1314
                          CLOSURE OF CHANGE ORDER NO 3
                                  ATTACHMENT 1
                    PAYMENT SCHEDULE CLASSIFICATION SUMMARY
                        (SCHEDULE 11, CHANGE ORDER NO 3)

                        * [41 PAGES HAVE BEEN REDACTED]

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

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                          CLOSURE OF CHANGE ORDER NO 3
                                  ATTACHMENT 2
                         PRICING SCHEDULE - APPENDIX 2
                  (APPENDIX 2 OF SCHEDULE 9, CHANGE ORDER NO 3

                        * [98 PAGES HAVE BEEN REDACTED]

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
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                                       *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

<PAGE>   1343
                                        *
<PAGE>   1344
            II.6 PRICE SUMMARY (SERVICES-BREAKDOWN (IN THOUSAND US$)

                                       *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

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[ICO LOGO]                                                    CHANGE ORDER NO: 4

                IGF SUPPLY AGREEMENT
                CONTRACT NO ICOO97 - 1016/GW
                                                   DATE: 15 MAY 1998

In accordance with clause 9 of the Supply Agreement dated March 3rd 1997 between
NEC Corporation and ICO Global Communications Holdings BV, the Agreement is
hereby amended as follows:

<TABLE>
<S>                           <C>
Amended Clauses               See Attachment 1
Amended Schedules             See Attachment 1
Amended Annexes               See Attachment 1
Amended Price                 See Attachment 1
Other Amendments              See Attachment 1
Reference Correspondence      SA0226/WG7/19970715/GW (15 July 1997); IUKC-500
                              (15 April 1998)
</TABLE>

This Change Order No 4 will now form part of the Supply Agreement dated March
3rd 1997 between the parties effective as from 20 January 1998 and shall be
governed by and construed in accordance with the laws of England.

Except for the changes set out above, this Change Order No 4 makes no further
amendments or modifications to the Agreement.

<TABLE>
<S>                                       <C>
Signed for and on behalf of               Signed for and on behalf of
ICO GLOBAL COMMUNICATIONS HOLDINGS BV     NEC CORPORATION

              *                                            *
-------------------------------------     --------------------------------------
Supervising Officer                       Contractor's Authorised Representative

-----------------                         ------------------
Date                                      Date
</TABLE>
<PAGE>   1376
                                                            IGF SUPPLY AGREEMENT
                                                    CONTRACT NO ICOO97 - 1016/GW
                                                              CHANGE ORDER NO. 4
                                                                    ATTACHMENT 1

1.       This Change Order No 4 is issued pursuant to and shall be governed by
         clause 14 of the Supply Agreement dated March 3rd 1997 and incorporates
         the following elements specified in clause 14.6 thereof.

(a)      The ICONET Integration (II) Campaign to be undertaken by the Contractor
         is the G0 (SAN-UT Interworking) Campaign, Priority 1 and 2 as specified
         in NEC Documents B70096a6 and 370191G (Attachments 2.1 and 2.2 to this
         Change Order No 4).

(b)      The qualifications and numbers of personnel and the resultant
         man-months, including the minimum number of man-months, for the II G0
         Campaign, Priority 1 and 2, are specified in Attachment 5.2 to this
         Change Order No 4.

(c)      The travel costs shall be incurred and paid in accordance with clause
         14.10(b) of the Supply Agreement. The total travel costs for the G0
         Campaign activities shall not exceed $100,000. In the event the
         Contractor believes that travel costs in excess of $100,000 are
         required to be incurred to ensure the Contractor's performance and
         completion of the ICONET Integration (II) Campaign to be undertaken
         under this Change Order No 4, the Contractor shall seek ICO's authority
         to incur such additional costs prior to the formalising any such travel
         arrangements. Within 5 days of receipt of any such request from the
         Contractor, ICO shall confirm whether such authority is granted.

(d)      The duration and sequence for the performance and completion of the II
         G0 Campaign will be in accordance with NEC Document B70097a5
         (Attachment 3 to this Change Order No 4).

(e)      The Deliverables are those documents specified in Table 11-1 ("Other
         Test Documents") of Attachment 2.1 to this Change Order No 4. There are
         no separate price or payment terms for the Deliverables in this Change
         Order No 4.

(f)      The special test equipment for the II G0 Campaign which ICO will make
         available for use by the Contractor is 1 set of HPN Subsystem Simulator
         which is being provided by the Contractor on behalf of ICO in
         accordance with the NEC Documents 370187C, 370188C and 370193C
         (Attachments 4.1, 4.2 and 4.3 to this Change Order No 4). The firm
         fixed price for the HPN Subsystem Simulator is * which shall be
         payable by ICO to the Contractor as follows:

                  (i) * on the date of this Change Order No. 4, and;

                  (ii) * upon completion of the delivery, installation and
                  testing of the HPN Subsystem Simulator at the designated test
                  site location.

         The submission and payment of the invoices for the HPN Subsystem
         Simulator shall be in accordance with clause 17 of the Supply
         Agreement.

(g)      The Associated Management man-months for the II G0 Campaign are as
         specified in Attachment 5.3 to this Change Order No 4.

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   1377
(h)      The Additional Resources which ICO will provide to the Contractor for
         the II G0 Campaign are:

                  (i) the equipment specified in Table 5-1, Parts 1 and 2 in
                  Section 5 of Attachment 2.1 to this Change Order No 4;

                  (ii) the documents to be provided by ICO/Vega/Wavecom
                  specified in Section 11 of Attachment 2.1 to this Change Order
                  No 4.

(i)      The Additional Resources which the Contractor will provide for the II
         G0 Campaign are those items identified as "Other Costs" in No 5 of
         Attachment 5.1 to this Change Order No 4.

2.       The authorisation to proceed dated 20 January 1998 is subsumed into
         this Change Order No 4.The Labour and Associated Management man-month
         and travel costs incurred by the Contractor up to the date of this
         Change Order No 4 may be invoiced to ICO, in accordance with clause
         14.10, on the date of this Change Order No 4.

3.       Annex 9 of Schedule 14 of the Supply Agreement (ICONET Integration)
         shall apply to the performance of this Change Order No 4, except to the
         extent that it is specifically modified by Attachments 2.1, 2.2, 3,
         5.1, 5.2 and 5.3 to this Change order No 4.

4.       At all times the

                  (i) special test equipment;

                  (ii) ICO provided Additional Resources, and;

                  (iii) Contractor purchased Additional Resources

         (collectively identified as "ICO G0 Material") remain the property of
         ICO. The Contractor shall be responsible for the proper operation,
         maintenance and risk of loss of ICO G0 Material while in the possession
         or control of the Contractor. Upon ICO's written instruction and at
         ICO's cost, the Contractor shall, within 30 days of the receipt of such
         written ICO instruction, arrange for the shipment and delivery of ICO
         G0 Material to such location(s) as ICO may specify. All ICO G0 Material
         shall be returned by the Contractor to ICO, in good and properly
         functioning condition save for normal wear and tear.

5.       The price pursuant to clause 15.1 and Tables 1 and 24 of Schedule 9
         (Pricing Schedule) of the Supply Agreement shall be amended upon
         completion of this Change Order No 4.
<PAGE>   1378
                                                            IGF SUPPLY AGREEMENT
                                                    CONTRACT NO ICOO97 - 1016/GW
                                                              CHANGE ORDER NO. 4
                                                                    ATTACHMENT 2

2.1      NEC DOCUMENT B70096a6: ICONET INTEGRATION, TECHNICAL PROPOSAL FOR THE
         G0 (SAN-UT INTERWORKING) CAMPAIGN (HNS-12226, MARCH 25, 1998)

2.2      NEC DOCUMENT 370191G: PROPOSAL FOR ICO INTERWORKING (II) G0 TEST
         CAMPAIGN SUPPORT
<PAGE>   1379
                                                   [HUGHES NETWORK SYSTEMS LOGO]

HNS-12226

                               ICONET INTEGRATION
               TECHNICAL PROPOSAL FOR THE G0 (SAN-UT INTERWORKING)
                                    CAMPAIGN

                                 MARCH 25, 1998
<PAGE>   1380
                               PROPRIETARY NOTICE

                All rights reserved. This publication and its contents are
                proprietary to Hughes. No part of this publication may be
                reproduced in any form or by any means without the written
                permission of Hughes Network Systems, Inc., 11717 Exploration
                Lane, Germantown, Maryland 20876.

                 Copyright (C) 1998 Hughes Network Systems, Inc.

                                       ii
<PAGE>   1381
                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
SECTION                                                                         PAGE
-------                                                                         ----

<S>                                                                             <C>
1. INTRODUCTION ............................................................     0-1

2.    SCOPE ................................................................     1-1

3.    REFERENCED DOCUMENTS .................................................     2-1

4. TEST CONFIGURATION ......................................................     3-1

5. EQUIPMENT LIST ..........................................................     4-1

6. ASSUMPTIONS .............................................................     5-1

7. STATEMENT OF WORK .......................................................     6-1
7.1    PARTICIPANTS ........................................................     6-1
7.2 ROLES AND RESPONSIBILITIES .............................................     6-2
7.3    WORK BREAKDOWN STRUCTURE PRIME INTEGRATOR ...........................     6-3
7.4    ORGANIZATIONAL BREAKDOWN ............................................     6-4
7.5    MEETINGS ............................................................     6-4
7.6    CHANGES .............................................................     6-4
7.7    PROBLEM REPORTING ...................................................     6-5

8. ASSESSMENT OF TEST PLAN AND TEST REQUIREMENTS ...........................     7-1

9. ASSESSMENT OF RISKS RETIRED .............................................     8-1

10. SCHEDULE ...............................................................     9-1

11. DOCUMENTATION TO BE PRODUCED ...........................................    10-1

12. REQUIREMENTS FOR SCS ...................................................    11-1

13. OPTIONS ................................................................    12-1
13.1    INTRODUCTION .......................................................    12-1
13.2    OPTION 1: TEST WITH A UT SUPPLIER ..................................    12-1
13.3    ADDITIONAL OPTION: ADD VOCODER TO SAN SIMULATOR ....................    12-1

14. COMPLIANCE MATRIX ......................................................    13-1

15. FACILITIES REQUESTED BY OTHER PARTICIPANTS .............................    15-1

16. HNS STAFF RESPONSIBILITIES .............................................    15-1
</TABLE>

                                      iii
<PAGE>   1382
                                 LIST OF FIGURES

<TABLE>
<CAPTION>
FIGURE                                                                          PAGE
------                                                                          ----
<S>                                                                             <C>
FIGURE 4-1.   PHYSICAL CONFIGURATION FOR UT BREADBOARD TESTS ...............     4-1
FIGURE 7-1.   CONTRACTUAL RELATIONSHIPS ....................................     7-1
FIGURE 7-2.   HNS G0 ORGANIZATION CHART ....................................     7-4
FIGURE 10-1.   SCHEDULE ....................................................    10-2
</TABLE>

                                       iv
<PAGE>   1383
                                 LIST OF TABLES

<TABLE>
<CAPTION>
TABLE                                                                           PAGE
-----                                                                           ----
<S>                                                                             <C>
TABLE 5-1.   PART 1 -- ICO SUPPLIED EQUIPMENT ..............................     4-1
TABLE 5-2.   PART 2 -- ICO (WAVECOM) SUPPLIED EQUIPMENT ....................     5-1
TABLE 5-2.   PART 1 -- HNS SUPPLIED EQUIPMENT ..............................     5-1
TABLE 5-2.   PART 2 -- NEC SUPPLIED EQUIPMENT BASED ON THE IGF SA ..........     5-1
TABLE 10-1.  TEST PHASES ...................................................     9-1
TABLE 11-1.  SCRIPTS .......................................................    10-1
TABLE 14-1.  COMPLIANCE MATRIX .............................................    13-1
TABLE 15-1.  FACILITIES REQUESTED BY ICO(WAVECOM) ..........................    14-1
</TABLE>

                                       v
<PAGE>   1384
                                        ICONET INTEGRATION G0 TECHNICAL PROPOSAL
                                                               HNS-12226 (2/98P)

                                 1. INTRODUCTION

Hughes Network Systems, Inc. (HNS) is pleased to submit this proposal for ICONET
Integration (II) campaign G0 (SAN-UT Interworking). This proposal includes the
following sections:

-        Section 1 provides an introduction and "roadmap" of the proposal.

-        Section 2 describes the scope.

-        Section 3 lists the referenced documents.

-        Section 4 shows the test configuration.

-        Section 5 provides the equipment list.

-        Section 6 lists the assumptions used in preparing this proposal.

-        Section 7 describes the statement of work and interactions between team
         members.

-        Section 8 provides an assessment of the Test Plan and Test Requirements
         documents.

-        Section 9 provides an assessment of the risks retired by this campaign.

-        Section 10 includes the schedule.

-        Section 11 describes the documentation to be produced.

-        Section 12 describes the Satellite Channel Simulator requirements.

-        Section 13 describes the options.

-        Section 14 includes the compliance matrix.

-        Section 15 lists the facilities and test equipment requested by other
         participants.

-        Section 16 outlines the responsibilities of HNS staff.

                                      0-1
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                                        ICONET INTEGRATION G0 TECHNICAL PROPOSAL
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                                    2. SCOPE

II campaign G0 involves Air Interface compatibility tests between a SAN
Simulator from HNS and a Prototype User Terminal (PUT) from ICO(Wavecom). The
objective of this II campaign is to achieve AI convergence through exposing
possible bugs in SBS and UT implementation. This testing will include the test
cases defined in the Test Plan and Test Requirements (referenced documents B and
C below). It is planned to split the base testing into two phases: a first phase
with the UT Breadboard nominally totaling 2.5 months, excluding HPN tests, in
1998 and a second phase with the Field Test UT nominally lasting 2.5 months,
excluding HPN tests, in 1999. There is an option that ICO can exercise to extend
the testing. It reruns the base tests with a UT from a UT supplier. HNS commits
to having the equipment, facilities, and staff available during this base period
and ICO-chosen optional testing.

                                      2-1
                              HUGHES PROPRIETARY II
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                                        ICONET INTEGRATION G0 TECHNICAL PROPOSAL
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                             3. REFERENCED DOCUMENTS

This proposal is based on these documents, with the versions indicated:

      -  ICO First Integration Phase, Technical Note, Version 1.0, 14 July 1997

      -  Test Plan Document for the SAN/UT Interworking Campaign (G0.x), Issue
         1.4, 1 October 1997

      -  Test Requirements Document for the SAN/UT Interworking Campaign (G0.x),
         Issue 1.7, 17 February 1998

      -  ICO Air Interface Documents, Version 4.0, released 26 September -- 9
         October 1997

      -  SAN Simulator Requirements, Rev. 4.1

      -  [Wavecom] Services Required for Interworking Test at Germantown, e-mail
         from Paul Britten, 20 August 1997

      -  [Main supply agreement] Statement of Work, Annex 9, Version 2.2, 26
         February 1997

      -  Satellite Channel Simulator (SCS) Specification, B7008A4

      -  [Main supply agreement] Clause 14, Terms and Conditions, 4th March,
         1997

      -  UT Simulator/Load Generator Requirements, Rev. 4.1

                                      2-1
                              HUGHES PROPRIETARY II
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                                        ICONET INTEGRATION G0 TECHNICAL PROPOSAL
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                              4. TEST CONFIGURATION

FIGURE 4-1 shows the physical configuration proposed for the initial tests (with
the UT Breadboard). This figure includes two satellite channel simulators (one
to model S-band impairments and one for C-band impairments) rather than the one
shown in the Test Plan. Two SCSs allow easier modeling of the separate
impairments on each link. For the later tests with the Field Test UT, HNS agrees
to use a single SCS, providing equivalent satellite channel simulation, to match
the configuration of the SAN site tests underway at that time.

[FLOWCHART GRAPHIC]

           FIGURE 4-1. PHYSICAL CONFIGURATION FOR UT BREADBOARD TESTS

The figure shows one example of how the HPN and SANS will connect to the SCS
modeling C-band impairments. Depending on the need to combine or separate HPN
and SANS signals, this configuration will vary somewhat by test case. Any test
cases that require combining the signals will require an extra combiner and
splitter. The HPN equipment will be operated by ETL(COMSAT) staff in the HNS
lab.

The amplifiers at each SCS output (shown in the October proposal) have now been
deleted, since NEC (after the October proposal was submitted) exercised the
option with Noise/Com to include them in the SCS.

The IF equipment has been chosen based on the power levels of the UT Breadboard.
If the power levels or connectors for the Field Test UT (which are not currently
known) differ from those of the UT Breadboard, additional or different
amplifiers/attenuators may be required. This is not included in the price
quotation.

                                      4-1
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                                        ICONET INTEGRATION G0 TECHNICAL PROPOSAL
                                                               HNS-12226 (2/98P)

                                5. EQUIPMENT LIST

ICO supplied equipment is shown in TABLE 5-1 PART 1 AND 2. Part 1 of the table
is according to Table 3 of Annex 9 of the SOW of SA and provides dates for the
equipment as specified in 14.4 (f) of the SA. Part 2 of the table is equipment
provided by ICO (Wavecom) for the G0 campaign. All equipment is to be made
available to the Germantown facility for the G0 campaign. HNS supplied equipment
is shown in TABLE 5-2.

 TABLE 5-1. PART 1 - ICO SUPPLIED EQUIPMENT (ACCORDING TO TABLE 3 OF ANNEX 9)

<TABLE>
<CAPTION>
  Item                          Description                         Quantity        Date
  ----                          -----------                         --------        ----
<S>        <C>                                                      <C>         <C>
    1      SAN Simulator and its scripts                                1       June 1, 1998
           (System Simulator)
    2      SCS                                                          2       April 1, 1998
</TABLE>

Note: Items 1 - supplied by HNS on behalf of ICO to be used as part of G0
      Campaign.

Item 2 - SCS will be shipped by NEC-PO for ICO

              TABLE 5-1. PART 2 - ICO (WAVECOM) SUPPLIED EQUIPMENT

<TABLE>
<CAPTION>
  Item                          Description                         Quantity         Date
  ----                          -----------                         --------         ----
<S>        <C>                                                      <C>         <C>
    1      Prototype UT, its scripts, and the associated PUT RSS        1       June 22, 1998
    2      Frequency reference for PUT RSS                              1       April 1, 1998
</TABLE>

                   TABLE 5-2. PART 1 - HNS SUPPLIED EQUIPMENT

<TABLE>
<CAPTION>
   Item                            Description                            Quantity            Hardware Source
   ----                            -----------                            --------            ---------------
<S>         <C>                                                         <C>            <C>
1           Low Phase Noise Frequency Reference Source                  2              Purchased for II
2           L-S band upconverter                                        1              Purchased for II
3           S-L band downconverter                                      1              Purchased for II
4           Combiner                                                    3              Purchased for II
5           Splitter                                                    3              Purchased for II
6           TTCN Compiler w/training and Environment setup              2 seats        Purchased for II
7           Miscellaneous Equipment (note 1)                            as needed      Lab supply or Purchased for II
8           BERTS                                                       1              Lease
9           Standard test equipment(spectrum analyzer, oscilloscope,    as needed      Lease
            etc.)
10          DC rectifiers, cooling equipment                            as needed      Lab supply
11          -        Cables                                             as needed      Lab supply
12          Printer                                                     1              Lab supply
</TABLE>
-----------
Note 1: Individual Miscellaneous Equipment Purchases greater than $5,000
requires ICO approval.

Note 2: All items "Purchased for II" are ICO's property and can be shipped to
ICO's directed location, if required.

         TABLE 5-2. PART 2 - NEC SUPPLIED EQUIPMENT BASED ON THE IGF SA
<TABLE>
<S>         <C>                                                        <C>            <C>
13          UT Simulator and its Scripts (Air interface Load            1              IGF Supply Agreement
            Generator)
14          Clock source for SAN simulator                              1              IGF Supply Agreement
15          IF port                                                     1              IGF Supply Agreement
</TABLE>

                                      4-1
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                                        ICONET INTEGRATION G0 TECHNICAL PROPOSAL
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                                 6. ASSUMPTIONS

1.   The UT Simulator is used to validate SANs test scripts. Back-to-back
     SANS-UTS tests will have been run before for each part of G0.

2.   All G0 equipment in the lab will be able to run on 60 Hz, 110 Vac power,
     except for the SANS, UTS, and HPN which require DC Power.

3.   HNS will supply almost all of the test equipment and facilities requested
     by ICO(Wavecom), as detailed in Section 15.

4.   The "B" phase of campaign G0 (testing with the Field Test UT) is scheduled
     for March-May 1999. At that time, all the existing SCSs (that are
     deliverable) will already be on SAN sites to support installation testing.
     ICO shall endeavor to make an SCS from the USA (or another) SAN site
     available for the "B" phase of G0. If that proves impossible, ICO shall
     (with sufficient advance notice) provide one additional SCS.

5.   The proposal assumes a nominal schedule as shown in the Schedule section,
     with these testing duration (excluding HPN):

     -   Phase A1:                     2 months

     -   Phase A2:                     0.5 month

     -   Phase B:                      2.5 months

     -   Option 1 (each):              3 months

6.   HNS should generally be able to make equipment and staff available for
     reasonable duration of extended testing, provided enough advance notice.
     While the need for re-testing will not be known until tests are underway
     and problems are encountered, HNS requests reasonable advance notice. HNS
     also requests that the extra testing can be carried out immediately after
     one of the currently planned test phases, because all the equipment is set
     up and the staff is on hand.

7.   HNS would find it difficult to support phase A tests in advance of the
     proposed start date. Delays up to 1 month can be accommodated. It might be
     possible to accommodate delays up to 3 months. However, with a 3 month
     delay, the resulting diversion of staff expected to work on UTS release
     U2.0 could delay the availability of U2.0. HNS will need to know 1 month
     before the scheduled start date of any delays.

                                      6-1
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                              7. STATEMENT OF WORK

This section describes the statement of work and interaction between team
members. Reference G provides the general requirements for ICONET Integration.
Reference A provides additional descriptions for the early II campaigns. HNS
agrees to the descriptions in both these references. This section provides
additional details on how the general requirements apply to the G0 campaign.

7.1. PARTICIPANTS
For the G0 base work, the contractual relationships are shown in FIGURE 7-1.

[FLOWCHART GRAPHIC]

                      FIGURE 7-1. CONTRACTUAL RELATIONSHIPS

The roles assumed for each participant in the base work and option 1 are:
     -   ICO: organization on whose behalf the campaign is performed.
     -   NEC: contractual lead
     -   HNS: prime integrator (based on SOW Annex 9), participant
     -   Ericsson: pass-through for ETL(COMSAT), no direct involvement
     -   ETL/COMSAT: participant, contributor of HPN portions of documents
     -   ICO(Wavecom): participant (not in NEC Team)

                                      7-1
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7.2  ROLES AND RESPONSIBILITIES

The prime integrator shall be responsible for organizing and conducting the
campaign on a day-to-day basis under the guidance by ICO. For the G0 base
campaign, the prime integrator serves as facilities host as well. Thus the prime
integrator's responsibilities are to:

-    lead the test preparation, execution, and reporting

-    coordinate with all participants, including ICO(Wavecom), at an engineering
     level

-    coordinate with the documentor and all participants, including ETL(COMSAT)
     and ICO(Wavecom), regarding interfacing, planning, scheduling, adherence to
     test requirements, STE functional compatibility and executable script
     compatibility

-    pursue the resolution of all test problems and discrepancies to a
     satisfactory close as directed by ICO

-    work with ICO to organize meetings

-    provide the facilities for all participants to conduct these tests,
     including making the test equipment ICO(Wavecom) has requested available as
     needed.

-    produce SCS scripts, based on orbital information provided by ICO.

-    coordinate overall configuration management for the test equipment and
     setup (not for the source code from each participant but a record of what
     releases are used when).

-    keep ICO regularly informed of progress, by means of weekly progress
     reports for those works carried out in the previous week and others needing
     attention, before and during testing (tests attempted, passed, and failed;
     problems encountered; near-term plans; etc.).

-    administer the problem reporting system to record problems found in
     testing.

-    produce the preliminary test report.

-    produce and maintain the Test Scripts Document (TSD) for phases A1, A2, and
     B, together with the participants.

HNS agrees to allow ICO, ETL(COMSAT) and ICO(Wavecom) access to its lab and
support facilities (conference rooms, cafeteria, etc.) for the purposes of
conducting the G0 tests.

On planning, scheduling, and engineering matters, HNS reports directly to
NEC-PO. HNS and ICO can communicate directly, provided that communications are
copied to NEC PO.

The documentor is expected to:

-    make updates to the Test Requirements Document (TRD) and Test Plan Document
     (TPD) before phase A tests

-    make updates to the TRD and TPD before phase B tests

-    provide a TRD appendix which provides details on what configuration data
     and parameters are to be tested.

ICO(Wavecom) shall contribute to the TSD, especially the instructions for
operating the PUT and any constraints on its use. A more detailed description of
the TSD preparation appears in section 11 on documentation.

ETL(COMSAT) shall supply the HPN portions of the Test Scripts and Test Report,
and any revisions (expected to be minor) to the HPN portions of the Test
Requirements and Test Plan. HNS will merge these portions into the overall test
documents and produce combined documents.

                                      7-2
                              HUGHES PROPRIETARY II
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                                        ICONET INTEGRATION G0 TECHNICAL PROPOSAL
                                                               HNS-12226 (2/98P)

Each participant is expected to:

-    provide their equipment, as listed Section 5.

-    prepare the executable scripts that run on their equipment

-    provide on-site support to run their equipment during tests and join in
     troubleshooting

-    provide bug fixes as quickly as possible

-    contribute portions of the test documents and review the combined documents

-    provide configuration management for their equipment, software, and scripts
     used in the campaign

As described in Annex 9 section 3, ICO is responsible for overall coordination,
especially with ICO(Wavecom). ICO staff are welcome to attend all meetings and
participate in or observe any tests, if they choose.

7.3  WORK BREAKDOWN STRUCTURE PRIME INTEGRATOR
The WBS for the HNS portion of the effort is:

1.       G0 Campaign
         1.1      Management

         1.2      Test Preparation (including document and script preparation)
                  1.2.1 Phase A1
                  1.2.2 Phase A2
                  1.2.3 Phase B

         1.3      Test Execution
                  1.3.1    Phase A1
                  1.3.2    Phase A2
                  1.3.3    Phase B

         1.4      Preliminary Test Report
                  1.4.1 Phase A1
                  1.4.2 Phase A2
                  1.4.3 Phase B

         1.5      Equipment Supply and Lab Support

         1.6      Options
                  1.6.1    Option 1:  Test with UT Supplier

                                       6-3
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7.4  ORGANIZATIONAL BREAKDOWN
FIGURE 7-2 shows the HNS organization chart for the G0 campaign. The development
organizations in Engineering will provide on-call support to assist with setup
and troubleshooting.

                              [FLOWCHART GRAPHIC]

                      FIGURE 7-2. HNS G0 ORGANIZATION CHART

7.5  MEETINGS
A suggested schedule for coordination meetings is shown at the beginning of the
schedule, with proposed locations marked. In addition, Test Readiness Reviews
before test phases A and B are shown in the testing sections, later in the
schedule. At each meeting, all parties involved in the G0 campaign are expected
to attend.

Two weeks before each meeting, an agenda will be prepared and distributed to all
organizations. Either ICO or the prime integrator will prepare this agenda, as
ICO prefers. Initial meetings will confirm agreement on the "who, what, where,
and when" of testing. After that, the main focus of the meetings will shift to
how the tests will be conducted. This will be accomplished through detailed
reviews of the test scripts that each participant has prepared and distributed
in advance. All meetings will nominally be held at HNS Germantown Facilities,
with one meeting being held at the ICO(Wavecom) Facilities in Paris for each of
Phase A and Phase B campaigns.

7.6  CHANGES
Coordination of changes may take place via teleconferences, e-mails, faxes, or
the next regularly-scheduled meeting as described below. The final agreement
between NEC and ICO shall be made in accordance with Clause 9 of the Supply
Agreement-:

                                      7-4
                              HUGHES PROPRIETARY II
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                                        ICONET INTEGRATION G0 TECHNICAL PROPOSAL
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Changes to the Air Interface (AI) after Version 4.0: ICO will coordinate
proposed changes to the AI specification, as is the current practice, using
Change Requests and Change Notices. In reply to such Change Request by ICO, for
the impact of these changes on the G0 campaign, the prime integrator shall
coordinate responses of the NEC team. When a Change Notice is issued (assuming
contractual agreement), all parties involved in II must:

-    review the change

-    determine whether it affects the G0 campaign. While many AI changes will
     impact G0, some (such as changes to high speed fax and data) will not.

-    determine when they can include the change in a release

-    agree on the schedule for testing it in the G0 campaign. AI changes
     introduced too late to be tested in phase A may be tested in phase B.

-    agree on any G0 regression testing that may be required

The assumption is that all equipment used in the test must meet the same version
of the AI. There may be exceptions to this, which can be examined on a
case-by-case basis.

Test changes: If ICO or any participant wishes to propose addition, deletion, or
modification of test cases, it should inform all parties of the proposal. The
mechanism for handling these changes can be based on the method for handling AI
changes, though simplified. The conclusions should be recorded in updated TRD,
TPD, and TSD, which will be maintained current to reflect the testing actually
performed. Assuming that only test script modifications are required (not
changes in capabilities of the equipment used), the lead time for these changes
will typically be less than an AI change.

Other changes: If any participant wishes to introduce a new release of their
hardware, software, firmware, or scripts, either to fix a bug or add features,
he must:

-    alert other participants to the change

-    provide the expected date and time of incorporation

-    describe any changes that other participants will have to make to remain
     compatible

The prime integrator will coordinate these new releases within NEC team and
ICO(Wavecom) and inform ICO.

7.7  PROBLEM REPORTING
HNS proposes to use an automated system to track problems found in testing and
ensure that they are corrected and not forgotten. HNS's existing
Defect/Enhancement Tracking System (DETS) will be available for this purpose for
the G0 campaign. This system was used to enter System Problem Reports (SPRs)
from PDR 1. It is also in daily use to record problems found in HNS releases and
documents. This system can produce detailed listings and summary reports, which
can be e-mailed or faxed to ICO and other participants.

If the NEC team adopts a common, linked problem tracking system in time for the
G0 campaign, that system can be used in place of DETS.

                                      6-5
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                                        ICONET INTEGRATION G0 TECHNICAL PROPOSAL
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                8. ASSESSMENT OF TEST PLAN AND TEST REQUIREMENTS

The Test Plan and Test Requirements documents were discussed at a meeting with
ICO and ICO(Wavecom) on August 6. HNS provided written comments on both
documents to ICO on August 22 and on the new Test Requirements Document on
September 12. HNS agrees that these documents are generally acceptable. A few
minor comments remain, including ones shown in the comments column of the
Compliance Matrix. However, these comments can easily be resolved once the work
is underway. An additional comment is the suggestion to use 2 (not 1) SCSs with
the UT Breadboard tests.

After further examination, one August 22 comment that HNS would like to clarify
is the statement "Call Re-establishment is not supported in SANS". The SANS does
not have the intelligence of the MSSC to recognize that the re-establishment
attempt is a continuation of a previous call. To the SANS scripts, it more
resembles a new call. However, the SANS can support the message exchange, so the
tests can be run.

In areas for further work, HNS' principal suggestion is that the in-call
modification and diversity tests be expanded, as described in both sets of
comments. There are additional, minor suggestions for expansion included in the
previously submitted comments.

ICO will prioritize the test cases in the TRD and label those to be done at the
end of each phase and only if time is available.

                                       8-1
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                         9. ASSESSMENT OF RISKS RETIRED

HNS agrees that the G0 campaign, as described in the Test Plan and Test
Requirements, will meet ICO's goal of significantly retiring the risk that the
SBS and prototype UT interpret or implement the Air Interface differently for
these layers:

    -    Physical
    -    Layer 2
    -    Layer 3 RR
    -    Layer 3 MM
    -    Layer 3 CC

Exercise of the option to test with UT prototypes will reduce the risk that
different UT suppliers interpret or implement the Air Interface differently.

The location (laboratory, not field) and timing (early) of the G0 campaign also
ensure that differences are easier to detect and can be fixed before much
equipment has been manufactured and deployed.

The areas where risk is not retired in the base work include:

    -    Layer 3 SS (since no tests are proposed for that currently)

    -    Layer 3 SMS (since no tests are proposed for that currently)

    -    Any functions involving multiple UTs, such as contention on the RACH,
         since only a single UT is simulated at a time

    -    Vocoders

    -    Higher level fax and data protocols (T.30 and RLP).

    -    High speed fax and data

    -    Complete DTX and DTMF functions.

    -    Authentication algorithm (though message exchange is tested).

    -    Inter-SAN handovers (which would require two SANs)

  HPN risk retirement (any layers) will be assessed by Ericsson/COMSAT.

                                       9-1
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                                  10. SCHEDULE

FIGURE 10-1 shows the schedule for the G0 campaign as presented in the Kick Off
Meeting.

The schedule shows in italics the dependencies needed from ICO(Wavecom) or ICO.
The only limitations imposed by external time constraints are:

     a. The availability of equipment (SANS, PUT, SCS) used in the tests, which
     are shown as prerequisites in the schedule.

As discussed at the coordination meeting on August 6 1997 and the KOM, this
schedule divides the testing into three phases, as shown in TABLE 10-1.

                             TABLE 10-1. TEST PHASES

<TABLE>
<CAPTION>
      PHASE             SANS RELEASE USED              PROTOTYPE UT USED                     TEST FOCUS
      -----             -----------------              -----------------                     ----------
<S>                <C>                           <C>                            <C>
A1                 S1.0                          UT Breadboard                  Physical and data link layers
A2                 S2.0                          UT Breadboard                  Core RR
B                  S2.0                          Field Test UT                  RR remainder, MM, CC plus selective
                                                                                regression tests
</TABLE>

This schedule shows 3 months for A1/A2 testing excluding HPN. As discussed at
the KOM, this schedule takes a conservative approach, though HNS will endeavor
to meet ICO's goal of 2.5 months for this effort.

This schedule is presented and contingent on the Change Order (CO) being agreed
by 15 May 1998 by all parties.

                                      10-1
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           (Please refer to the attached document number b70097a5.MPP)

                              FIGURE 10-1. SCHEDULE

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                        11. DOCUMENTATION TO BE PRODUCED

The following documents shall be provided by ICO/Vega/Wavecom:

    o    Test Plan Document (TPD)
    o    Test Requirements Document (TRD)
    o    TRD Appendix
    o    Final Test Report
    o    Executable scripts to run the PUT equipment

Other test documents include Test Scripts, Test Procedures and Preliminary Test
Reports. The types of test scripts and their expected provider is shown in TABLE
11-1.

                        TABLE 11-1. OTHER TEST DOCUMENTS

<TABLE>
<CAPTION>
                          TYPE                                                PROVIDER
                          ----                                                --------
<S>                                                       <C>
TTCN scripts to run the SAN Simulator                     HNS
SCS profiles                                              HNS
HPN scripts (if any)                                      ETL(COMSAT)
Test procedures (instructions to the tester, in the       HNS (with inputs from ICO(Wavecom) and
Test Scripts Document)                                    ETL(COMSAT))
Preliminary Test Reports                                  HNS
Hardware ICDs                                             HNS and SCS provider
</TABLE>

A number of TTCN scripts (listed in references E and J) will be produced as part
of the simulator development. The II campaigns will reuse as many of them as
possible. Only additional scripts, unique to II, are produced in the II effort.

The proposed approach to TSD preparation is: First, the parties should clarify a
few open questions from the Test Requirements Document and the comments that
have been submitted about it, in order to agree more precisely on what test
cases should be included and how they should be run. HNS will produce a detailed
outline of the TSD, with a template. The writing should be done in roughly the
order the tests will be run, i.e., physical layer first. Dates for exchange of
written sections will be agreed to. Through several iterations, HNS will merge
contributions from ICO(Wavecom) and ETL(COMSAT) into a combined document. The
detailed procedures will need to be reviewed (primarily compared for
consistency) in a few test script coordination meetings, shown in the schedule.

Early in the campaign, one or more brief Interface Control Documents (ICDs) will
need to be written to define the interface(s) between equipment from various
suppliers (especially between the ICO(Wavecom) and NEC-Team-supplied equipment).
The ICDs will specify the number of cables, connectors, power levels, and other
interface items. The Prime Integrator will need to produce these documents with
contributions and agreement from all parties. Where possible, the ICDs will
refer to existing documents, such as the SCS Requirements. A task for ICD
preparation and agreement is shown in the schedule. HNS is confident that there
will be no material changes to the hardware costs as result of defining this
interface precisely.

Documentation for optional work is described in the Options section.

                                      11-1
                              HUGHES PROPRIETARY II
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                                        ICONET INTEGRATION G0 TECHNICAL PROPOSAL
                                                               HNS-12226 (2/98P)

The approach proposed for distribution and draft versions is: For speed, HNS
proposes to distribute engineering documents to all parties simultaneously,
subject to ICO's and NEC's approval. (Progress reports are not sent to
ICO(Wavecom) directly, but are sent first to ICO.) The handling for each
document is described below. A number of document dates are shown in the
schedule. The TSD will require review meetings to reach agreement. For other
documents, it is assumed that exchange of e-mails and teleconferences will be
sufficient to reach agreement on them - meetings are not required.

The ICDs are expected to be brief documents that records the physical interface
(number of cables, connectors, power levels, etc.) between ICO(Wavecom) and
NEC-team-supplied equipment. It is assumed that only one draft version will be
required before the final is agreed to.

The TSD is the main document requiring coordination and agreement. Several
versions of it will be required before "final" versions are issued for each of
phases A1, A2, B, and any optional testing. Specific dates for draft releases
should be agreed with all parties at the kickoff meeting.

HNS will use its existing configuration management system for its documents.

                                      11-2
                              HUGHES PROPRIETARY II
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                                        ICONET INTEGRATION G0 TECHNICAL PROPOSAL
                                                               HNS-12226 (2/98P)

                            12. REQUIREMENTS FOR SCS

The Satellite Channel Simulator (SCS) requirements are contained in reference H.
Additional components required to fully support the SCS function include:

       1. Low phase noise Reference to SCS to provide:
            10 Hz SSB  -123 dBc/Hz
           100 Hz SSB -133 dBc/Hz
          1000 Hz SSB -139 dBc/Hz
       Requirements between SSB frequencies stated shall be
       straight-line-interpolated on a logarithmic frequency axis.
       2. Equipment Rack Assembly
       3. I/O Interface Components (Filters/Switches)
       4. Internal Interface Cables
       5. AC Power Distribution
       6. Environmental Control Components (Blowers, Filters, Vents)
       7. Operations and Maintenance Manual for Complete SCS Configuration

HNS will integrate the two SCSs used for G0 in the Germantown lab on behalf of
ICO.

                                      12-1
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                                        ICONET INTEGRATION G0 TECHNICAL PROPOSAL
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                                   13. OPTIONS

13.1 INTRODUCTION
This section describes the options.

13.2 OPTION 1: TEST WITH A UT SUPPLIER
HNS and ETL(COMSAT) will repeat the G0 tests with prototype UTs from additional
UT supplier(s). This option covers a single UT supplier.

HNS assumes that these tests will involve only one manufacturer at a time, and
they will not occur at the same time as tests with ICO(Wavecom) equipment. Thus
only one set of SANS, other test equipment, and staff are required for the G0
campaign. HNS further assumes that the test cases, procedures, and data for the
UT manufacturers are reused from the tests with ICO(Wavecom).

HNS requests that ICO notify HNS of its desire to exercise this option at least
90 days before the optional testing would begin. This option shall be valid up
to and including the end of warranty period specified in the main supply
agreement Part B, Article 4 and Article 40.

The test equipment provided for this option is similar to that shown in TABLE
15-1 and shall be either purchased or leased for II. Miscellaneous equipment
will come from lab supply or purchased.

13.1 ADDITIONAL OPTION: ADD VOCODER TO SAN SIMULATOR
ICO also requested that HNS investigate the possibility of adding a vocoder
(either externally or internally) to the SAN Simulator. At this time, HNS has
not been able to finalize its technical solution to integrate the vocoders
because it does not have enough information on the DVSI vocoder design, but
investigations will continue.

                                      13-1
                              HUGHES PROPRIETARY II
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                                        ICONET INTEGRATION G0 TECHNICAL PROPOSAL
                                                               HNS-12226 (2/98P)

                              14. COMPLIANCE MATRIX

TABLE 14-1 provides the compliance matrix. The first 3 columns are repeats of
the matrix supplied by ICO except for entries in BOLD, where HNS is proposing a
change. In the Class column, "Opt" (optional) means that ICO/Vega proposed that
those test cases (scripted CC cases) be omitted from the G0 campaign. The fourth
column, which HNS has supplied, shows HNS agreement that the test case can be
run in the [corrected] phase and that the SAN Simulator release will support it.
For test cases ICO marked as Optional, a "Y" in the compliance column means that
the SANS is capable of supporting those tests in phase B.

One of the factors affecting which release of the SAN Simulator supports which
test case is the type of channel involved. The Comments column tries to mark
when the test case calls for use of a channel that is not supported until a
later release. In some cases, there is some flexibility in the choice of
channels, so the test can be run with the first release if a different channel
type is selected. Where the test case is not precise (such as mentioning TCH
instead of TCH/NS), HNS has assumed that a compatible channel type can be used
but has not marked this in the Comments column.

[ TO BE REVISED AS PART OF A KOM ACTION ITEM]

                                      14-1
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                          TABLE 14-1. COMPLIANCE MATRIX

<TABLE>
<CAPTION>
Test Id.                             Test Title                           Class     Compliant Y/N                     Comments
--------                             ----------                           -----     -------------                     --------
<S>         <C>                                                        <C>          <C>             <C>
L1_1_1      Synchronisation and BCCH Reception                              A1            Y

L1_1_2      BCCH Frame Erasure Rate                                         A1            Y

L1_1_3      Re-selection due to Cell Barred                                 A1            Y

L1_1_4      Re-selection due to Cell Not Suitable                           A1            Y

L1_1_5      Re-selection due to BCCH Signal Levels                          A1            Y

L1_2_1      Nominal Penetration Downlink Burst - TCH/NS                     A2            Y

L1_2_2      Nominal Penetration Downlink Burst - TCH/2.4                    A1            Y

L1_2_3      Nominal Penetration Downlink Burst - TCH/4.8                    A2            Y

L1_2_4      Nominal Penetration Downlink Burst - TCH/NS, Diversity          A2            Y

L1_2_5      Nominal Penetration Downlink Burst - TCH/NS, Ciphered      A2 (not A1)        Y         SANS does not support TCH/NS
                                                                                                    until S2.0.

L1_2_6      Nominal Penetration Downlink Burst - TCH/NS, DTX           A2 (not A1)        Y         SANS does not support TCH/NS
                                                                                                    until S2.0.

L1_2_7      Nominal Penetration Uplink Burst - TCH/NS                       A2            Y

L1_2_8      Nominal Penetration Uplink Burst - TCH/2.4                      A1            Y

L1_2_9      Nominal Penetration Uplink Burst - TCH/4.8                      A2            Y

L1_2_10     Nominal Penetration Uplink Burst - TCH/NS, Diversity            A2            Y

L1_2_11     Nominal Penetration Uplink Burst - TCH/NS, Ciphered        A2 (not A1)        Y         SANS does not support TCH/NS
                                                                                                    until S2.0.

L1_2_12     Nominal Penetration Uplink Burst - TCH/NS, DTX             A2 (not A1)        Y         SANS does not support TCH/NS
                                                                                                    until S2.0.

L1_3_1      Nominal Penetration Downlink Burst - SACCH/T               A2 (not A1)        Y         SANS does not support SACCH/T
                                                                                                    until S2.0. HNS will change the
                                                                                                    SANS firmware to support these
                                                                                                    FER measurements.  Note that a
                                                                                                    TCH needs to be manually set up
                                                                                                    as well, so that the SACCH has
                                                                                                    a TCH to associate with.

L1_3_2      Nominal Penetration Downlink Burst - SACCH/6               A2 (not A1)        Y         SANS does not support SACCH/6
                                                                                                    until S2.0.
</TABLE>

                                  14-1
                          HUGHES PROPRIETARY II
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                                    ICONET INTEGRATION G0 TECHNICAL PROPOSAL
                                                           HNS-12226 (2/98P)

<TABLE>
<CAPTION>
Test Id.                             Test Title                          Class     Compliant Y/N                     Comments
--------                             ----------                          -----     -------------                     --------
<S>         <C>                                                       <C>          <C>             <C>

L1_3_3      Nominal Penetration Downlink Burst - SDCCH/6              A2 (not A1)        Y         SANS does not support SDCCH/6
                                                                                                   until S2.0.

L1_3_4      Nominal Penetration Downlink Burst - FACCH                     A1            Y

L1_3_5      Medium Penetration Downlink Burst - SACCH/2               A2 (not A1)        Y         SANS does not support SACCH/2
                                                                                                   until S2.0.

L1_3_6      Medium Penetration Downlink Burst - SDCCH/2                    A1            Y

L1_3_7      Medium Penetration Downlink Burst - PCH                        A1            Y

L1_3_8      Medium Penetration Downlink Burst - AGCH                       A1            Y

L1_3_9      Nominal Penetration Uplink Burst - SACCH/T                A2 (not A1)        Y         SANS does not support SACCH/T
                                                                                                   until S2.0. Also, HNS will change
                                                                                                   the SANS firmware to support
                                                                                                   these FER measurements.

L1_3_10     Nominal Penetration Uplink Burst - SACCH/6                A2 (not A1)        Y         SANS does not support SACCH/6
                                                                                                   until S2.0.

L1_3_11     Nominal Penetration Uplink Burst - SDCCH/6                A2 (not A1)        Y         SANS does not support SDCCH/6
                                                                                                   until S2.0.

L1_3_12     Nominal Penetration Uplink Burst - FACCH                       A1            Y

L1_3_13     Medium Penetration Uplink Burst - SACCH/2                 A2 (not A1)        Y         SANS does not support SACCH/2
                                                                                                   until S2.0.

L1_3_14     Medium Penetration Uplink Burst - SDCCH/2                      A1            Y

L1_3_15     Initial Access Burst - RACH                                    A1            Y

L1_3_16     Access Burst - On DCCH                                         A1            Y

L1_4_1      Initial Switch On to Idle Mode                                 A1            Y

L1_5_1      Power Control                                                  A2            Y

L1_5_2      Frequency Control                                              A2            Y

L1_5_3      Timing Control                                                 A2            Y

L1_5_4      Physical Control Under Simulated Pass Conditions               A2            Y         HNS now intends to use an SCS
                                                                                                   profile update period of 40
                                                                                                   instead of 6.67 msec, allowing
                                                                                                   tests of 2.5 hours (and longer).
                                                                                                   Note that the limit on testing
                                                                                                   duration is the SCS (assuming
                                                                                                   only 1 profile, which can be
                                                                                                   repeated), not the SANS.
</TABLE>

                                  14-2
                          HUGHES PROPRIETARY II
<PAGE>   1406
                                    ICONET INTEGRATION G0 TECHNICAL PROPOSAL
                                                           HNS-12226 (2/98P)

<TABLE>
<CAPTION>
Test Id.                             Test Title                          Class     Compliant Y/N                     Comments
--------                             ----------                          -----     -------------                     --------
<S>         <C>                                                       <C>         <C>              <C>

L1_6_1      Paging Capability                                              A2            Y

L2_1_1      UI Frame SANS to PUT (info. < L2 octets)                       A1            Y

L2_1_2      UI Frame SANS to PUT (info. = L2 octets)                       A1            Y

L2_1_3      UI Frame PUT to SANS (info. < L2 octets)                       A1            Y

L2_1_4      UI Frame PUT to SANS (info. = L2 octets)                       A1            Y

L2_2_1      Contention Resolution Establishment on SDCCH (info. < L2       A1            Y
            octets)

L2_2_2      Contention Resolution Establishment on SDCCH (info. = L2       A1            Y
            octets)

L2_2_3      Contention Resolution Establishment on SDCCH                   A1            Y

L2_2_4      UA Frame with different information field                      A1            Y

L2_2_5      SABM Frame with different information field                    A1            Y

L2_2_6      Loss of UA Frame                                               A1            Y

L2_2_7      Establishment Denial                                           A1            Y

L2_2_8      Total Establishment Failure                                    A1            Y

L2_3_1      Normal Establishment                                           A1            Y

L2_3_2      Loss of UA Frame                                               A1            Y

L2_3_3      Establishment Denial                                           A1            Y

L2_4_1      Information Transfer SANS to PUT                               A1            Y

L2_4_2      Information Transfer PUT to SANS                               A1            Y

L2_4_3      Information Transfer with I Frame Acknowledgment               A1            Y

L2_4_4      Flow Control SANS to PUT                                       A1            Y

L2_4_5      Flow Control PUT to SANS                                       A1            Y

L2_4_6      RR Frame Loss (SANS to PUT)                                    A1            Y

L2_4_7      RR Frame Loss (PUT to SANS)                                    A1            Y

L2_4_8      SREJ Frame (SANS to PUT)                                       A1            Y

L2_4_9      SREJ Frame (PUT to SANS)                                       A1     Y with altered   The SANS does not allow filtering
                                                                                             test  the 4th and 5th messages in a
                                                                                                   series of six messages, of the
                                                                                                   same type, in rapid
</TABLE>

                                  14-3
                          HUGHES PROPRIETARY II
<PAGE>   1407
                                    ICONET INTEGRATION G0 TECHNICAL PROPOSAL
                                                           HNS-12226 (2/98P)

<TABLE>
<CAPTION>
Test Id.                             Test Title                          Class     Compliant Y/N                     Comments
--------                             ----------                          -----     -------------                     --------
<S>         <C>                                                       <C>          <C>             <C>
                                                                                                   succession.  The test can be
                                                                                                   altered to accomplish the
                                                                                                   objective in a different way.
L2_4_10     Suspension and Resumption of Multiple Frame Operation          A1            Y

L2_5_1      Release initiated by the PUT                                   A1            Y

L2_5_2      Loss of Frame during Network Initiated Release                 A1            Y

L2_5_3      Loss of Frame during PUT Initiated Release                     A1            Y

L2_6_1      Collision of Commands - PUT Behavior Test Case 1               A1            Y

L2_6_2      Collision of Commands - PUT Behavior Test Case 2               A1            Y

L2_6_3      Collision of Commands - PUT Behavior Test Case 3               A1            Y

L2_6_4      Collision of Commands - PUT Behavior Test Case 4               A1            Y

L2_6_5      Collision of Commands - SANS Behavior Test Case 1              A1            Y

L2_6_6      Collision of Commands - SANS Behavior Test Case 2              A1            Y

L2_6_7      Collision of Commands - SANS Behaviour Test Case 3             A1            Y

L2_6_8      Collision of Commands - SANS Behavior Test Case 4              A1            Y

RR_1_1      Extended Paging                                                B             Y

RR_1_2      Paging Reorganization                                          B             Y

RR_2_1      Rejection Followed by Immediate Assignment                     B             Y

RR_2_2      Rejection Followed by Successful Paging                        B             Y

RR_3        Measurement Report                                             B             Y

RR_4_1      Intra-cell Re-Assignment Successful                            A2            Y

RR_4_2      Re-Assignment Failure                                          A2            Y

RR_5_1      Successful Path Redefinition                                   A2            Y

RR_5_2      Path Redefinition Reject                                       A2            Y

RR_5_3      Diversity Path Addition and Removal                            A2            Y

RR_6_1      Channel Mode Modify                                            B             Y

RR_7_1      Ciphering Mode Setting                                         A2            Y

RR_8_1      Classmark Change                                               B             Y

RR_9_1      Classmark Interrogation                                        B             Y
</TABLE>

                                  14-4
                          HUGHES PROPRIETARY II
<PAGE>   1408
                                    ICONET INTEGRATION G0 TECHNICAL PROPOSAL
                                                           HNS-12226 (2/98P)

<TABLE>
<CAPTION>
Test Id.                             Test Title                          Class     Compliant Y/N                     Comments
--------                             ----------                          -----     -------------                     --------
<S>         <C>                                                       <C>          <C>             <C>
MM_1_1      Location Updating Accepted                                     A2            Y

MM_1_2_1    Location Updating Rejected - Test Case 1                       B             Y

MM_1_2_2    Location Updating Rejected - Test Case 2                       B             Y

MM_1_2_3    Location Updating Rejected - Test Case 3                       B             Y

MM_1_3      IMSI Attach / Detach                                           A2            Y

MM_1_4_1_1  Periodic Updating - Test Case 1                                B             Y

MM_1_4_1_2  Periodic Updating - Test Case 2                                B             Y

MM_1_4_4_3  Periodic Updating - Test Case 3                                B             Y

MM_1_4_4_4  Periodic Updating - Test Case 4                                A2            Y

MM_2_1      TMSI Reallocation                                              A2            Y

MM_3_1      Authentication Accepted                                        B             Y

MM_3_2      Authentication Rejected                                        B             Y

MM_4_1      Identification                                                 B             Y

MM_5_1      MM Connection Establishment Rejected                           B             Y

MM_5_2      MM Connection Establishment Failure                            B             Y

MM_5_3      MM Connection Establishment Aborted                            B             Y

MM_6_1      Call Re-establishment Allowed                                  A2            Y         Note that the re-establishment
                                                                                                   attempt looks like a new call to
                                                                                                   the SANS.

MM_6_2      Call Re-establishment Not Allowed                              B             Y

MM_6_3      Call Re-establishment Rejected                                 B             Y

CC_1_1      Mobile Originating Call                                        B             Y

CC_1_2      Mobile Terminating Call                                        B             Y

CC_1_3      Emergency Call                                                 B             Y

CC_2_1_1    MO Call / Call Initiation Accepted (Call Proceeding)           B             Y

CC_2_1_2    MO Call / Call Initiation Accepted (Alerting)                  B             Y

CC_2_1_3    MO Call / Call Initiation Accepted (Connect)                   B             Y

CC_2_1_4    MO Call / Call Initiation Rejected (Invalid Number)            B             Y

CC_2_1_5    MO Call / Call Initiation Aborted (Timer T303 expiry)         Opt            Y

CC_2_1_6    MO Call / Call Initiation Terminated by the Mobile             B             Y

CC_2_2_1    MO Call / Call Proceeding (Alerting)                           B             Y

CC_2_2_2    MO Call / Call Proceeding (Connect)                            B             Y
</TABLE>

                                  14-5
                          HUGHES PROPRIETARY II
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                                    ICONET INTEGRATION G0 TECHNICAL PROPOSAL
                                                           HNS-12226 (2/98P)

<TABLE>
<CAPTION>
Test Id.                             Test Title                          Class     Compliant Y/N                     Comments
--------                             ----------                          -----     -------------                     --------
<S>         <C>                                                       <C>          <C>             <C>
CC_2_2_3    MO Call / Call Proceeding (Prog. with non-PLMN/ISDN user)     Opt            Y

CC_2_2_4    MO Call / Call Proceeding (Traffic Channel Allocation)         B             Y

CC_2_2_5    MO Call / Call Proceeding Rejected (No Circuit Available)      B             Y

CC_2_2_6    MO Call / Call Proceeding Aborted (Timer T310 expiry)         Opt            Y

CC_2_2_7    MO Call / Call Proceeding Terminated by the Mobile             B             Y

CC_2_3_1    MO Call / Alerting (Connect)                                   B             Y

CC_2_3_2    MO Call / Alerting (Traffic Channel Allocation)                B             Y

CC_2_3_3    MO Call / Alerting Rejected (Release)                          B             Y

CC_2_3_4    MO Call / Alerting Aborted (Timer T310 expiry)                Opt            Y

CC_2_3_5    MO Call / Alerting Terminated by the Mobile                    B             Y

CC_2_4_1    MO Call / Connect Rejected                                     B             Y

CC_2_4_2    MO Call / Connect Aborted (Timer T313 expiry)                 Opt            Y

CC_2_4_3    MO Call / Connect Terminated by the Mobile                     B             Y

CC_3_1_1    MT Call / Call Indication Accepted                             B             Y

CC_3_1_2    MT Call / Call Indication Rejected (Invalid DDI Number)       Opt            Y

CC_3_1_3    MT Call / Call Indication Reject (Basic Service Not            B             Y
            Supported)

CC_3_1_4    MT Call / Call Indication Aborted (Timer T303 expiry)         Opt            Y

CC_3_1_5    MT Call / Call Indication Terminated by the Network            B             Y

CC_3_2_1    MT Call / Call Confirmation (Alerting)                         B             Y

CC_3_2_2    MT Call / Call Confirmation (TCH Assignment)                   B             Y

CC_3_2_3    MT Call / Call Confirmation Rejected (User Busy)               B             Y

CC_3_2_4    MT Call / Call Confirmation Aborted (Timer T310 expiry)       Opt            Y

CC_3_2_5    MT Call / Call Confirmation Terminated by the Network          B             Y
</TABLE>

                                  14-6
                          HUGHES PROPRIETARY II
<PAGE>   1410
                                    ICONET INTEGRATION G0 TECHNICAL PROPOSAL
                                                           HNS-12226 (2/98P)

<TABLE>
<CAPTION>
Test Id.                             Test Title                               Class     Compliant Y/N                     Comments
--------                             ----------                               -----     -------------                     --------
<S>         <C>                                                            <C>          <C>             <C>
CC_3_3_1    MT Call / Alerting (Call Accepted)                                  B             Y

CC_3_3_2    MT Call / Alerting (TCH Assignment)                                 B             Y

CC_3_3_3    MT Call / Alerting Rejected (Stopped by the User)                   B             Y

CC_3_3_4    MT Call / Alerting Aborted (Timer T301 expiry)                     Opt            Y

CC_3_3_5    MT Call / Alerting Terminated by the Network                        B             Y

CC_3_4_1    MT Call / Connect (TCH Assignment)                                  B             Y

CC_3_4_2    MT Call / Connect Rejected (Stopped by the User)                    B             Y

CC_3_4_3    MT Call / Connect Aborted (Timer T313 expiry)                      Opt            Y

CC_3_4_4    MT Call / Connect Terminated by the Network                         B             Y

CC_4_1      Call Clearing with In band Tones (initiated by the Network)        Opt            Y

CC_4_2      Call Clearing (RELEASE initiated by the Network)                    B             Y

CC_4_3      Call Clearing (RELEASE initiated by the Mobile)                     B             Y

CC_4_4      Call Clearing (RELEASE COMPLETE initiated by the Network)           B             Y

CC_4_5      Call Clearing (RELEASE COMPLETE initiated by the Mobile)            B             Y

CC_4_6      Call Clearing (Clear Collision)                                     B             Y

CC_4_7      Call Clearing (Downlink Failure)                                    B             Y

CC_4_8      Call Clearing (Uplink Failure)                                      B             Y

CC_4_9      Call Clearing (Persistent Downlink Failure during Release          Opt            Y
            Procedure)

CC_4_10     Call Clearing (Persistent Uplink Failure during Release            Opt            Y
            Procedure)

CC_5_1      Active Call Procedures / DTMF Information Transfer                 Opt            Y

CC_5_2      Active Call Procedures / User Notification and Status Enquiry       B             Y

CC_5_3_1    Successful In-Call Modification Initiated by the Network            B             Y

CC_5_3_2    Successful In-Call Modification Initiated by the Mobile             B             Y

CC_5_3_3    Mobile Rejection of In-Call Modification                            B             Y
</TABLE>

                                  14-7
                          HUGHES PROPRIETARY II
<PAGE>   1411
                                    ICONET INTEGRATION G0 TECHNICAL PROPOSAL
                                                           HNS-12226 (2/98P)

<TABLE>
<CAPTION>
Test Id.                             Test Title                            Class     Compliant Y/N                     Comments
--------                             ----------                            -----     -------------                     --------
<S>         <C>                                                         <C>          <C>             <C>
CC_5_3_4    Network Rejection of In-Call Modification                        B             Y

CC_5_3_5    Abortion of In-Call Modification Initiated by the Network        B             Y

CC_5_3_6    Abortion of In-Call Modification Initiated by the Mobile         B             Y

CC_6_1_1    Link Failure when Re-establishment Allowed                       B             Y

CC_6_1_2    Persistent Link Failure when Re-establishment Allowed            B             Y

CC_6_2_1    Handover During Call Establishment                               B             Y

CC_6_2_2    Handover During Active Call - Single Slot                        B             Y

CC_6_2_3    Handover During Active Call - Dual Slot                          B             Y

CC_6_2_4    Handover During Active Call - Diversity                          B             Y

CC_6_2_5    Handover During Active Call - Inter-Satellite                    B             Y

CC_6_2_6    Handover Failure During Active Call                              B             Y

HPN_1_1     High Penetration Broadcast Burst                                 A1           N/A        ETL(COMSAT) to answer

HPN_1_2     High Penetration Burst                                           A1           N/A

HPN_1_3     High Penetration Acknowledgment Burst                            A1           N/A

HPN_2_1     Idle Mode HP Operation                                           A1           N/A

HPN_3_1     Successful Transfer using single dual-burst                      A1           N/A

HPN_3_2     Successful Transfer using multiple dual-bursts                   A1           N/A

HPN_3_3     Loss of HPN Acknowledgment Burst                                 A1           N/A
</TABLE>

                                      14-8
                              HUGHES PROPRIETARY II
<PAGE>   1412
                                        ICONET INTEGRATION G0 TECHNICAL PROPOSAL
                                                               HNS-12226 (2/98P)

                 15. FACILITIES REQUESTED BY OTHER PARTICIPANTS

TABLE 15-1 shows the equipment ICO(Wavecom) requested in reference F and in a
subsequent request, along with HNS's proposed equivalent equipment. HNS agrees
to supply the requested (or equivalent) equipment for all items marked "Yes" in
the "HNS Will Supply?" column.

                TABLE 15-1. FACILITIES REQUESTED BY ICO(WAVECOM)

<TABLE>
<CAPTION>
                                                     ICO(Wavecom) Example
                 Item                    Quantity            Model             HNS Proposed Equivalent     HNS Will Supply?
                 ----                    --------    --------------------      -----------------------     ----------------
<S>                                      <C>         <C>                       <C>                         <C>
Spectrum Analyzer 3.5 GHz                 1          Rohde & Schwarz FSEA      Same                        Yes
                                                     20

Audio Analyzer 10 Hz-100 KHz              1          Rohde & Schwarz UPA3      HP8903B                     Yes

HF generator 2.4 GHz (or more)            2          Marconi 2024 (9 KHz       R&S SME03 or HP8664A        Yes
                                                     - 2.4 GHz) or             (both 3 GHz)
                                                     HP8648C (100 KHz -
                                                     3200 MHz)

Analog oscilloscope 2 channels > 100      1          Metrix 0x860              Tektronix TAS475            Yes
MHz

Digital oscilloscope 4 channels > 200     1          Lecroy 9304A or           LEC 9314L                   Yes
MHz                                                  Tektronix TDS460

Variable Power Supply 0-20V/2A            3                                    HP6633A                     Yes

Laptop PC (optional)                      1          Toshiba Satellite                                     No - see note 1
                                                     210CS

Logic analyzer 16 /32 Channels 500 MHz    1          HP1664A                   HP1660A                     Yes

Soldering iron                            2                                                                Yes

Multimeters                               2          FLUKE 87                  FLUKE 70                    Yes

Laser Printer                             1                                    HP LaserJet 5Si MX          Yes

Desktop PCs (Optional)                    2                                                                No - see note 1

10 MHz reference                          1                                                                No - see note 2

Rooms (about 14 (m2) each or single         2 rooms                                                          Yes - see note 3
room of equivalent size) equipped
with:

-        power supply (110 V/60 Hz)

-        tables

-        chairs

-        telephone line

-        modems

-        Internet access

-        cabling between rooms for
         connection between PCs and
         the RSS and UT breadboard

-        White or paper board.
</TABLE>

Note 1: Instead of supplying laptop and desktop PCs (both shown as optional),
HNS suggests that ICO(Wavecom) bring its own laptops, set up for the preferred
language and company configuration. HNS can provide an analog phone line to
allow these PCs to connect via modem to external networks (such as
ICO(Wavecom)'s corporate network).

                                      15-1
                              HUGHES PROPRIETARY II
<PAGE>   1413
                                        ICONET INTEGRATION G0 TECHNICAL PROPOSAL
                                                               HNS-12226 (2/98P)

Note 2: The CDS does not meet ICO(Wavecom)'s phase noise requirement, so HNS
proposes that ICO(Wavecom) supply their own reference.

Note 3: For the office space, given the tightness of space at HNS, it may be
necessary to use tables, chairs, etc., in the lab. This should be the most
convenient setup, as it will be closest to the ICO(Wavecom) equipment.

For standard test equipment ETL(COMSAT) needs in the HNS lab, HNS has agreed
with ETL(COMSAT) that if HNS has equipment available, HNS will provide it. If
ETL(COMSAT) needs additional equipment, ETL(COMSAT) will bring it from
Clarksburg or lease or purchase it separately.

                                       15-2
                              HUGHES PROPRIETARY II
<PAGE>   1414
                                        ICONET INTEGRATION G0 TECHNICAL PROPOSAL
                                                              HNS-12226 (11/97P)

                         16. HNS STAFF RESPONSIBILITIES

This section describes the responsibilities of various levels of HNS staff in
G0.

The Test Engineers prepare test scripts and most of the documentation. They
perform the detailed technical coordination with other participants. They "dry
run" the tests with a SANS and UTS before ICO(Wavecom) equipment arrives. Then
they execute the tests, troubleshoot problems, and report on results.

The Development Engineers provide consulting support in use of the SANS and (if
needed) the UTS. They also provide the detailed expertise for troubleshooting
and fixing problems.

The Lab Manager is a very senior technician who manages the equipment (not
engineers) in the lab. He makes sure that facilities and communications are
available, equipment is installed and configured, and test equipment is
available.

The Technical Manager provides day-to-day supervision of the work, coordinates
at an engineering level with ICO and other participants, writes portions of the
documents and reviews all the documents. The Technical Manager plans the work,
tracks schedule progress, and prepares the periodic status reports.

The System Engineering Technical Director provides part-time consulting and
recommendations on high-level questions.

                                      15-1
                              HUGHES PROPRIETARY II
<PAGE>   1415
                               NEC PROGRAM OFFICE
                                   ICO PROJECT

5th Floor, Horatio House
77-85 Fulham Palace Rd
LONDON
W6 8JC
UK
Tel: +44 (0) 181 600 4200
Admin Office Fax: +44 (0) 181 600 4290
Contract Office Fax: +44 (0) 181 600 4295

                                 DOCUMENT HEADER

DOCUMENT TITLE / SUBJECT & INDEX REFERENCE

PROPOSAL FOR ICO INTERWORKING  (II) G0 TEST  CAMPAIGN SUPPORT

<TABLE>
<CAPTION>
ISSUER INFORMATION                     ICO PROJECT DOCUMENT NUMBER
ISSUED BY             DATE:               WORKGROUP         TYPE       YR       NUMBER      REV
<S>                   <C>                 <C>               <C>       <C>       <C>         <C>
Adrian Streeter       31/3/98                WG3            Doc        97       370191       G
</TABLE>

WORKGROUP                                                        DOCUMENT TYPE
WG3 - ETL (MSSC)

<TABLE>
<CAPTION>

PROJECT OFFICE USE    DATE        8.3 DOS FILENAME      ISSUING GROUP DOCUMENT
                                                             NUMBER
<S>                               <C>                   <C>
                                        .DOC
</TABLE>

SECURITY LEVEL                                    ADDITIONAL NOTES IF REQUIRED

/ / CONFIDENTIAL

/X/ RESTRICTED

/ / NON - RESTRICTED

/X/ Attached is a copy of a document, which is issued to you under the Data &
Documentation Control procedure WG8-PL-60002-A1. You will receive all subsequent
updates on this document. It is your responsibility to maintain the
documentation to its latest status. Please advise the NEC Project Office
Documentation Manager if you do not require further updates.

/ / Attached is a copy of the updated document. Please update & destroy any
previous issued copies, or advise the NEC Project Office Documentation Manager
if you do not require any further updates.

<PAGE>   1416
[ERICSSON LOGO]

                                  PROPOSAL FOR
                              ICO INTERWORKING (II)
                            G0 TEST CAMPAIGN SUPPORT

<TABLE>
<CAPTION>
<S>                                                                     <C>
1.0 INTRODUCTION........................................................  2
2.0 PROPOSAL............................................................  2
3.0 SCOPE OF WORK.......................................................  2
4.0 APPLICABLE DOCUMENTS................................................  2
5.0 SERVICES AND DELIVERABLES...........................................  2
6.0  PROGRAM MANAGEMENT AND IMPLEMENTATION..............................  2
7.0 CHANGE PROCESS......................................................  3
8.0 ROLES AND RESPONSIBILITIES..........................................  3
   8.1 COMSAT Roles and Responsibilities................................  3
     8.1.1 Subcontractor to Ericsson....................................  3
     8.1.2  G0 Test Execution Team......................................  3
     8.1.3 Test Planning and Test review................................  3
   8.2 ETL Roles and Responsibilities...................................  3
9.0 GO TESTING SUPPORT..................................................  4
10.0 SCHEDULE...........................................................  4
APPENDIX A  SOW.........................................................  5
   A1  SAN/UT Interworking Campaign (G0)................................  5
     A1.1 G0 Program Management:........................................  5
     A1.2 G0 Test Script:...............................................  5
     A1.3 G0 Test Review:...............................................  5
     A1.4 G0 Technical Meetings.........................................  5
     A1.5 G0 On Site Test Support: Phase A..............................  5
     A1.7 G0 Post Test Support: Phase A.................................  6
     A1.8 G0 On Site Test Support: Phase B..............................  6
     A1.10  Option: Test with UT suppliers..............................  6
     A1.11 Shipping Installation........................................  6
APPENDIX B  Test Equipment..............................................  7
APPENDIX C  HPN G0 Test Compliance Matrix...............................  8
</TABLE>

                                     Page 1
<PAGE>   1417
[ERICSSON LOGO]

1.0      INTRODUCTION

         This Proposal defines the technical and management requirements for
         supporting the ICO Interworking (II) Test Campaign, referred to as G0,
         on a Time and Material basis. The main Deliverables of the HPN G0
         Supply Subcontract are Qualified Test Support Engineers to support
         planning, testing, TSD Documentation, and reporting associated with
         testing HPN between the SAN and UT Breadboard/Field Test UT.

2.0      PROPOSAL

         This proposal comprises this main text plus Annexes listed below:

<TABLE>
<CAPTION>
              ANNEX                        DESCRIPTION
              -----                        -----------
<S>                                        <C>
              A                            Statement of Work
              B                            Test Equipment
              C                            HPN Test Configuration
              D                            HPN G0 Test Compliance Matrix
</TABLE>

3.0      SCOPE OF WORK

         This work includes On Site Test Support for the G0 Test Campaigns. It
         includes On Site Engineering Support, travel and participation in
         various planning meetings and review boards, and report preparation. It
         includes developing test scripts for COMSAT developed HPN test
         equipment and for Shipping and Installation of HPN Test equipment at
         the G0 Test site. The WBS for this work is given in Annex A.

4.0      APPLICABLE DOCUMENTS

         The documents applicable to the effort in the SOW are as follows:

         -        ICO First Integration Phase: EN-II-ICO-TN/000085

         -        Test Requirements Documents for the SAN/UT Interworking
                  Campaign (G0.x)

         -        HPN Subsystem Simulator Requirements Document. No. 370187rev.
                  C

         -        HPN Subsystem Simulator Design Summary Document No. 370188
                  rev. C

         -        Also add the following document to list: Proposal for HPN
                  Subsystem Simulator to be used for the G0 and G0' test
                  campaigns No. 370193 rev. C

5.0      SERVICES AND DELIVERABLES Time and Materials test support.

         -        Test scripts for COMSAT Developed HPN equipment to HNS
                  (includes TSD documentation and executable scripts. Scripts
                  and TSD documentation will be updated as necessary to include
                  TRD/TPD changes).

         -        Test reports for COMSAT Developed HPN equipment to HNS.

         -        Deliver, install, and setup the HPN Simulator at HNS in
                  Germantown, Maryland

         -        Time and Materials for Meetings

6.0      PROGRAM MANAGEMENT AND IMPLEMENTATION

         HPN G0 testing will be managed by a G0 Test Manager reporting
         internally to the COMSAT HPN Project Manger. The HPN G0 Test Manager
         will be ETL/ICO's point of contact for all matters concerning G0
         testing.

                                     Page 2
<PAGE>   1418
[ERICSSON LOGO]

7.0      CHANGE PROCESS

         COMSAT will provide ETL with time and material estimates to changes in
         accordance with the change proposed by NEC Team/ICO for Test Case
         Changes, Re-Testing, Rescheduling Tests, or other changes pertaining to
         G0 testing.

8.0      ROLES AND RESPONSIBILITIES

         8.1      COMSAT ROLES AND RESPONSIBILITIES

                  8.1.1    Subcontractor to Ericsson

                           -        COMSAT is a Subcontractor to Ericsson

                  8.1.2     G0 Test Execution Team

                           -        Develop test scripts for COMSAT equipment
                                    and deliver them to HNS (Sub Documentor role
                                    for this specific task).

                           -        Technical Support to operate COMSAT
                                    equipment during the G0 Integration and
                                    Testing campaigns (Phases A and B).

                           -        Propose and supply solutions as required to
                                    deal with anomalies, including both
                                    short-term fixes and long-term corrections
                                    as appropriate.

                           -        Review and supply comments as required to a
                                    G0 Test Facility ICD. HNS has the prime
                                    responsibility for this ICD.

                  8.1.3    Test Planning and Test review

                           -        Attend Pre and Post test meetings

                           -        Prepare HPN Test Report and deliver to HNS
                                    (Sub Documentor role for this specific task)

                           -        Review test documents

                           -        Review test results

         8.2      ETL ROLES AND RESPONSIBILITIES

         -        Obtain permission and authorization for the COMSAT's staff to
                  access the test site as needed.

         -        Ensure necessary furniture and test floor space for the HPN
                  test equipment

         -        Provide the name, address, telephone and fax numbers of ICO's
                  site co-ordinator.

         -        Provide cabling between the HPN subsystem and other
                  subsystems.

         -        Provide 120 VAC power and cabling to the HPN Test Equipment.
<PAGE>   1419
9.0      GO TESTING SUPPORT
         In accordance with Annex-A, SOW

10.0     SCHEDULE
         SAN- UT Interworking (G0) Test Program Milestones

<TABLE>
<CAPTION>

              MILESTONE                                  DATES
              ---------                                  -----
<S>                                                      <C>
              Kickoff and A1 Coordination Meeting        Jan  29/30 1998

              A1 Test Script Coordination Meeting        March 30, 1998
              (Germantown)

              A1/A2 Test Script (Paris)                  May 11, 1998

              A2 Test Script Coordination Meeting        July 13, 1998
              (Germantown)

              B Coordination Meeting (Paris)             Oct 12, 1998

              B Test Script Coordination Meeting         Dec 14, 1998
              (Germantown)

              B Test Script Coordination Meeting         Jan 11, 1999
              (Germantown)

              On Site Test Support:
              Phase A                                    Aug 3  - Sept 3 1998
              Phase B                                    May 17-31, 1999

              Option 1 Test Support Windows              June 1, 1999 - Open Date

              Post Test Support:
              Phase A                                    Sept 3-30, 1998
              Phase B                                    June 1-30, 1998
</TABLE>

Notes:

The above schedule has been coordinated with HNS. This schedule is contingent on
the Change Order (CO) being agreed by 15 May 1998 by all parties.

The HPN schedule reflects the base line schedule for Management and
Implementation of the project at the time of contract signature. It will be
revised, throughout the life of the project, to reflect changing schedule
requirements. The HPN Simulator is currently scheduled to be available for G0
testing on August 1, 1998.

                                     Page 4
<PAGE>   1420
[ERICSSON LOGO]

APPENDIX A  SOW

A1       SAN/UT INTERWORKING CAMPAIGN (G0)

         Purpose

         The purpose of the G0 Test Campaign for HPN is to validate the AI
         specification and verify the implementation in both the UT and HPN
         subsystem.. COMSAT Engineers will execute tests, diagnose problems and
         resolve issues regarding HPN. COMSAT will not act as or assume the
         responsibilities of the "Prime Integrator" or "Documentor" as defined
         in ICO document "EN -II-TN/000085 (except where noted). COMSAT will
         also participate as a Test Team Member by attending various technical
         meetings.

         COMSAT's proposal for G0 testing is based on the following two
         documents: ICO First Integration Phase: EN-II-ICO-TN/000085 Test
         Requirements Documents for the SAN/UT Interworking Campaign (G0.x)

         The following sections define the scope of work for COMSAT and list
         assumptions reflected in this cost proposal.

         A1.1 G0 Program Management:

         This task is for overall management of the HPN G0 Test campaign

         A1.2 G0 Test Script:

         This task is for the preparation of test scripts for the HPN equipment.
         These scripts will be delivered to HNS for integration into the
         combined G0 test scripts. This includes both documentation (TSD) and
         executable scripts.

         A1.3 G0 Test Review:

         This work includes Test Document Reviews, Test Coordination meetings
         and Test Control Board Meetings. It is assumed that each meeting will
         be attended by 2 COMSAT Engineers. The schedule for these meetings is
         given in the G0 proposal.

         A1.4 G0 Technical Meetings

         This work supports Technical Interchange Meetings. It is assumed that
         these meetings take place at HNS in Germantown, Maryland. One meeting
         will be held at Wavecom Facilities in Paris for each of the Phase A and
         Phase B Campaigns.

         A1.5 G0 On Site Test Support: Phase A

         This work supports actual G0 testing at HNS's facility in Germantown.
         It is assumed this testing requires two COMSAT Engineers for a 2 week
         period. It also includes fixing defects in the HPN Simulator that may
         occur during testing. COMSAT will try to recreate reported problems in
         its Clarksburg facility and will give top priority to fixing defects.

                                     Page 5
<PAGE>   1421
         [ERICSSON LOGO]

         A1.7 G0 Post Test Support: Phase A

         This work includes reviewing and commenting on the Phase A test report.

         A1.8 G0 On Site Test Support: Phase B

         This work supports actual G0 testing at HNS's facility in Germantown.
         It is assumed this testing requires two COMSAT Engineers for a 2 week
         period. It also includes fixing defects in the HPN Simulator that may
         occur during testing. COMSAT will try to recreate reported problems in
         its Clarksburg facility and will give top priority to fixing defects.

         A1.10 Option: Test with UT suppliers

         This work is for coordinating with UT Suppliers, preparing test
         documents, conducting tests, and preparing test reports.

         A1.11 Shipping Installation

         This work includes the shipping of the HPN Simulator from COMSAT's
         Clarksburg, Maryland facility to the HNS facility in Germantown,
         Maryland and Installation in the HNS Germantown facility.

                                     Page 6
<PAGE>   1422
[ERICSSON LOGO]

APPENDIX B  TEST EQUIPMENT

              STANDARD TEST EQUIPMENT REQUIRED AT G0 TEST FACILITY

COMSAT will rent or lease the following standard lab equipment:

1.       HP 436A Power Meter

2.       HP 8484A Power Sensor

3.       HP 8657B L-Band Signal Generator

4.       HP 8566B L-Band Spectrum Analyzer

5.       HP ThinkJet Plotter (GPIB)

6.       Tek TDS540 Digital Oscilliscope

7.       Micronetics NOD 5108 Noise Generator

8.       HP 54201D DIgitizing Oscilliscope

Note that the G0 test facility must incorporate a version of the SCS providing
sufficient white noise power to meet the HPN Testing requirements specified in
Issue 1.4 of the ICO/SAN Interworking Test Requirements Document.

               SPECIAL TEST EQUIPMENT TO BE PROVIDED BY ETL/COMSAT

HPN Subsystem Simulator

                                     Page 7
<PAGE>   1423
[ERICSSON LOGO]

APPENDIX C  HPN G0 TEST COMPLIANCE MATRIX

The compliance matrix of tests to be conducted is shown below. Note that several
test subcases will be developed and performed for each test.

         PARTIES.

<TABLE>
<CAPTION>
TEST ID         TEST TITLE                              CLASS     COMPLIANT       COMMENTS
-------         ----------                              -----     ---------       --------
<S>             <C>                                     <C>       <C>             <C>
HPN_1_1         High Penetration Broadcast Burst         A1        Yes             HPNSS

HPN_1_2         High Penetration Burst                   A1        Yes             HPNSS

HPN_1_3         High Penetration Acknowledgment Burst    A1        Yes             HPNSS

HPN_2_1         Idle Mode HP Operation                   A1        Yes             HPNSS

HPN_3_1         Successful Transfer using single         A1        Yes             HPNSS
                dual-burst

HPN_3_2         Successful transfer using multiple       A1        Yes             HPNSS
                dual-bursts

HPN_3_3         Loss of HPN Acknowledge Frame            A1        Yes             HPNSS
</TABLE>

                                     Page 8
<PAGE>   1424
                                                            IGF SUPPLY AGREEMENT
                                                    CONTRACT NO ICOO97 - 1016/GW
                                                              CHANGE ORDER NO. 4
                                                                    ATTACHMENT 3

             NEC DOCUMENT B70097a5: ICONET INTEGRATION G0 SCHEDULE

<PAGE>   1425
                         ICONET Integration GO Schedule

<TABLE>
<CAPTION>

ID  TASK NAME                                     DURATION  START         FINISH        PREDECESSORS  A     S      O    N     D
---------------------------------------------------------------------------------------------------------------------------------
<S> <C>                                           <C>       <C>           <C>           <C>           <C>   <C>   <C>   <C>   <C>
 1  HNS started work                                  0d    Wed 07/01/98  Wed 07/01/98

 2

 3  COORDINATION MEETINGS                           375d    WED 06/08/97  TUE 12/01/99

 4    Proposal coordination meeting (London)          1d    Wed 06/08/97  Wed 06/08/97                06/08

 5    Proposal review meeting (Haslemere)             1d    Wed 24/09/97  Wed 24/09/97                        04/09|24/09

 6   Proposal clarification meeting (London)          1d    Mon 17/11/97  Mon 17/11/97                                   17/11|17/11

 7   Kickoff meeting (Germantown)                     2d    Thu 29/01/98  Fri 30/01/98

 8   A1 test script initial review (Germantown)       2d    Mon 30/03/98  Tue 31/03/98

 9   A1/A2 test script review (Paris)                 2d    Mon 11/05/98  Tue 12/05/98

10   A2 test script review (Germantown)               2d    Mon 03/08/98  Tue 04/08/98

11   B test coordination meeting (Paris)              2d    Mon 12/10/98  Tue 13/10/98

12   B test script coordination meeting (Germantown)  2d    Mon 14/12/98  Tue 15/12/98

13   B test script coordination meeting (Germantown)  2d    Mon 11/01/99  Tue 12/01/99

14

15  A1 PHASE TESTING                                324d    TUE 23/09/97  FRI 18/12/98

16   DOCUMENTATION & PREPARATION                     89d    TUE 20/01/98  FRI 22/05/98

17     A1 L1 configuration data final (by ICO)        0d    Fri 27/02/98  Fri 27/02/98

18     A1 L2 configuration data final (by ICO)        0d    Tue 31/03/98  Tue 31/03/98

19     Prepare A1 Test Scripts Document              88d    Wed 21/01/98  Fri 22/05/98   1FS+10d

20     Deliver A1 TSD                                 0d    Fri 22/05/98  Fri 22/05/98   19,39SF-23d

21     Produce ICDs                                  19d    Tue 20/01/98  Fri 13/02/98   1FS+9d

22     ICDs ready for review                          0d    Fri 13/02/98  Fri 13/02/98   21

23     Comments on ICDs due to HNS                    0d    Fri 20/02/98  Fri 20/02/98   22FS+5d

24     Final ICDs released                            0d    Fri 27/02/98  Fri 27/02/98   23FS+5d
============================================================================================================================
</TABLE>

<TABLE>
<CAPTION>
                                                                                         1998
                                                       ---------------------------------------------------------------------------
ID  TASK NAME                                          J      F      M     A     M     J      J      A     S     O     N     D
----------------------------------------------------------------------------------------------------------------------------------
<S> <C>                                                <C>    <C>    <C>   <C>   <C>   <C>    <C>    <C>   <C>   <C>   <C>   <C>
 1  HNS started work                                   07/01

 2

 3  COORDINATION MEETINGS

 4    Proposal coordination meeting (London)

 5    Proposal review meeting (Haslemere)

 6   Proposal clarification meeting (London)

 7   Kickoff meeting (Germantown)                      29/01|30/01

 8   A1 test script initial review (Germantown)                  30/03|31/03

 9   A1/A2 test script review (Paris)                                            11/05|12/05

10   A2 test script review (Germantown)                                                              03/08|04/08

11   B test coordination meeting (Paris)                                                                         12/10|13/10

12   B test script coordination meeting (Germantown)                                                                     14/12|15/12

13   B test script coordination meeting (Germantown)   11/01/01

14

15  A1 PHASE TESTING

16   DOCUMENTATION & PREPARATION

17     A1 L1 configuration data final (by ICO)                27/02

18     A1 L2 configuration data final (by ICO)                       31/03

19     Prepare A1 Test Scripts Document                21/01                     22/05

20     Deliver A1 TSD                                                            22/05

21     Produce ICDs                                    21/01 13/02

22     ICDs ready for review                                 13/02

23     Comments on ICDs due to HNS                           20/02

24     Final ICDs released                                   27/02
==================================================================================================================================
</TABLE>

<TABLE>
<CAPTION>
                                                                                1999
                                                       -----------------------------------------------
ID  TASK NAME                                          J     F     M     A     M     J     J     A
------------------------------------------------------------------------------------------------------
<S> <C>                                                <C>   <C>   <C>   <C>   <C>   <C>   <C>   <C>
 1  HNS started work

 2

 3  COORDINATION MEETINGS

 4    Proposal coordination meeting (London)

 5    Proposal review meeting (Haslemere)

 6   Proposal clarification meeting (London)

 7   Kickoff meeting (Germantown)

 8   A1 test script initial review (Germantown)

 9   A1/A2 test script review (Paris)

10   A2 test script review (Germantown)

11   B test coordination meeting (Paris)

12   B test script coordination meeting (Germantown)

13   B test script coordination meeting (Germantown)   11/01|12/01

14

15  A1 PHASE TESTING

16   DOCUMENTATION & PREPARATION

17     A1 L1 configuration data final (by ICO)

18     A1 L2 configuration data final (by ICO)

19     Prepare A1 Test Scripts Document

20     Deliver A1 TSD

21     Produce ICDs

22     ICDs ready for review

23     Comments on ICDs due to HNS

24     Final ICDs released
======================================================================================================
</TABLE>

B70097a5.MPP                                                             Page 1
<PAGE>   1426
                         ICONET Integration GO Schedule

<TABLE>
<CAPTION>

ID  TASK NAME                                           DURATION  START         FINISH        PREDECESSORS  A   S   O   N   D
---------------------------------------------------------------------------------------------------------------------------------
<S> <C>                                                 <C>       <C>           <C>           <C>           <C> <C> <C> <C> <C>
49     Prepare A2 Test Scripts Document                    88d    Thu 19/03/98  Mon 20/07/98  19FS-47d

50     Deliver A2 TSD                                       0d    Wed 19/08/98  Wed 19/08/98  49,58SF-23d

51

52  PRE-REQUISITES                                         35d    MON 15/06/98  MON 03/08/98

53     SAN Simulator rel. S2.0 available to AI v4.0         0d    Mon 03/08/98  Mon 03/08/98  27FS+225d

54     UTB release for A2 testing available (TBD)           0d    Mon 03/08/98  Mon 03/08/98

55     G0 scripts available for A2                          0d    Mon 15/06/98  Mon 15/06/98  33

56  TESTING                                               156d    TUE 16/06/98  TUE 19/01/99

57     Test A2 SANS-UTS scripts (HNS internal)             40d    TUE 16/06/98  Mon 10/08/98  55

58     TEST PHASE A2                                       22d    Mon 21/09/98  Tue 20/10/98  41,53,54,57

59     Prepare A2 Test Report                              22d    Wed 21/10/98  Thu 19/11/98  58

60     Deliver A2 Test Report (Preliminary)                 0d    Thu 19/11/98  Thu 19/11/98  59

61     Deliver A2 Test Report (Formal)                      0d    Tue 19/01/99  Tue 19/01/99  60FS+43d

62

63  HPN A PHASE TESTING                                    24d    THU 30/07/98  TUE 01/09/98

64     HPN installed & checked out in HNS lab for G0        2d    Thu 30/07/98  Fri 31/07/98

65     COMSAT & Wavecom test HPN                           22d    Mon 03/08/98  Tue 01/09/98   40,64

66

67  B PHASE TESTING                                       271d    MON 03/08/98  MON 16/08/99

68     DOCUMENTATION & PREPARATION                        130d    MON 03/08/98  MON 01/02/99

69        Prepare B TSD: initial (during HPN A1 phase)     22d    Mon 03/08/98  Tue 01/09/98   65SS

70        Prepare B TSD: complete                          73d    Wed 21/10/98  Fri 29/01/99   58

71        Deliver TSD                                       0d    Mon 01/02/99  Mon 01/02/99   70,79-SF-20d

72
==================================================================================================================================
</TABLE>

<TABLE>
<CAPTION>
                                                                                         1998
                                                       ---------------------------------------------------------------------------
ID  TASK NAME                                          J      F      M     A     M     J      J      A     S     O     N     D
----------------------------------------------------------------------------------------------------------------------------------
<S> <C>                                                <C>    <C>    <C>   <C>   <C>   <C>    <C>    <C>   <C>   <C>   <C>   <C>
49     Prepare A2 Test Scripts Document                              19/03                    20/07

50     Deliver A2 TSD                                                                                19/08

51

52  PRE-REQUISITES

53     SAN Simulator rel. S2.0 available to AI v4.0                                                  03/08

54     UTB release for A2 testing available (TBD)                                                    03/08

55     G0 scripts available for A2                                                     15/06

56  TESTING

57     Test A2 SANS-UTS scripts (HNS internal)                                         13/06         16/08

58     TEST PHASE A2                                                                                       21/09 20/10

59     Prepare A2 Test Report                                                                                    20/10 19/11

60     Deliver A2 Test Report (Preliminary)                                                                            19/11

61     Deliver A2 Test Report (Formal)

62

63  HPN A PHASE TESTING

64     HPN installed & checked out in HNS lab for G0                                          30/07-31/07

65     COMSAT & Wavecom test HPN                                                                    03/08 01/09

66

67  B PHASE TESTING

68     DOCUMENTATION & PREPARATION

69        Prepare B TSD: initial (during HPN A1 phase)                                              03/08 01/09

70        Prepare B TSD: complete                                                                               21/10

71        Deliver TSD

72
==================================================================================================================================
</TABLE>

<TABLE>
<CAPTION>
                                                                                1999
                                                       -----------------------------------------------
ID  TASK NAME                                          J     F     M     A     M     J     J     A
------------------------------------------------------------------------------------------------------
<S> <C>                                                <C>   <C>   <C>   <C>   <C>   <C>   <C>   <C>
49     Prepare A2 Test Scripts Document

50     Deliver A2 TSD

51

52  PRE-REQUISITES

53     SAN Simulator rel. S2.0 available to AI v4.0

54     UTB release for A2 testing available (TBD)

55     G0 scripts available for A2

56  TESTING

57     Test A2 SANS-UTS scripts (HNS internal)

58     TEST PHASE A2

59     Prepare A2 Test Report

60     Deliver A2 Test Report (Preliminary)

61     Deliver A2 Test Report (Formal)                  19/01

62

63  HPN A PHASE TESTING

64     HPN installed & checked out in HNS lab for G0

65     COMSAT & Wavecom test HPN

66

67  B PHASE TESTING

68     DOCUMENTATION & PREPARATION

69        Prepare B TSD: initial (during HPN A1 phase)  29/01

70        Prepare B TSD: complete                             01/02

71        Deliver TSD

72
======================================================================================================
</TABLE>

B70097a5.MPP                                                             Page 3
<PAGE>   1427
                                                            IGF SUPPLY AGREEMENT
                                                    CONTRACT NO ICOO97 - 1016/GW
                                                              CHANGE ORDER NO. 4
                                                                    ATTACHMENT 4

4.1 NEC DOCUMENT 370187C: HPN SUBSYSTEM SIMULATOR REQUIREMENT

4.2 NEC DOCUMENT 370188C: HPN SUBSYSTEM SIMULATOR DESIGN SUMMARY

4.3 NEC DOCUMENT 370193C: PROPOSAL FOR HPN SUBSYSTEM SIMULATOR TO BE USED FOR
    THE G0 AND G0' TEST CAMPAIGNS
<PAGE>   1428
                               NEC PROGRAM OFFICE
                                   ICO PROJECT

5th Floor, Horatio House
77-85 Fulham Palace Rd
LONDON
W6 8JC
UK
Tel : +44 (0) 181 600 4200
Admin Office Fax : +44 (0) 181 600 4290
Contract Office Fax : +44 (0) 181 600 4295

                                 DOCUMENT HEADER

DOCUMENT TITLE / SUBJECT & INDEX REFERENCE

HPN Subsystem Simulator Requirements.

ISSUER INFORMATION

ISSUED BY                                        DATE:

Adrian Streeter                                  17/2/98

ICO PROJECT DOCUMENT NUMBER

<TABLE>
<CAPTION>

   WORKGROUP        TYPE      YR     NUMBER       REV
<S>   <C>           <C>       <C>    <C>          <C>
      WG3           Doc.      7       0187         C
</TABLE>

WORKGROUP                                        DOCUMENT TYPE

WG3 - ETL (MSSC)

PROJECT OFFICE USE                               DATE

8.3 DOS FILENAME                                 ISSUING GROUP DOCUMENT
                                                 NUMBER
DOC

SECURITY LEVEL                                   ADDITIONAL NOTES IF REQUIRED

CONFIDENTIAL

/x/ RESTRICTED

/ / NON - RESTRICTED

         /x/ Attached is a copy of a document, which is issued to you under the
         Data & Documentation Control procedure WG8-PL-60002-A1. You will
         receive all subsequent updates on this document. It is your
         responsibility to maintain the documentation to its latest status.
         Please advise the NEC Project Office Documentation Manager if you do
         not require further updates.

<PAGE>   1429
(LOGO)                                           Document name:           Sheet
                                                                            2(2)

Prepared dept,name, telephone                    Extn

ETL/XM/J Adrian Streeter

Document No.
370187

Approved                                         Checked
ETL/XM/J

Date                          Rev                File/reference
14/10/97                                         E:DOCS-97\

         / / Attached is a copy of the updated document. Please update & destroy
         any previous issued copies, or advise the NEC Project Office
         Documentation Manager if you do not require any further updates.
<PAGE>   1430
                                                                          [LOGO]

                      HPN SUBSYSTEM SIMULATOR REQUIREMENTS
<PAGE>   1431
                                TABLE OF CONTENTS

<TABLE>
<S>                                                                           <C>
1. Purpose....................................................................1
2. Scope......................................................................1
3. References.................................................................1
4. Specific Requirements......................................................1
   4.1 Physical Layer.........................................................1
   4.2 RR Layer Protocol......................................................1
   4.3 Upper Layer (TL and AL) Protocols......................................2
   4.4 Test Monitor and Control...............................................2
     4.4.1 Configuration of Parameters........................................2
     4.4.2 Configuration of Test Scenarios....................................2
     4.4.3 Compute Message Error Rates & BER statistics.......................2
     4.4.4 Display and Log HPN messages.......................................2
5. Annex - A IGFR Compliance..................................................2
</TABLE>
<PAGE>   1432
                                REVISION HISTORY

<TABLE>
<S>              <C>                           <C>
Rev A            October 14th,  1997           Initial Release

Rev B            November 26th, 1997           Updated based on following
                                               comments from ICO -
                                               -    Added table of contents
                                               -    Added IGFR v26
                                                    conformance table; comments
                                                    column indicates reasons for
                                                    any non-conformance
                                               -    Added References section
                                               -    Provided additional text
                                                    for clarification of
                                                    functionality

Rev c            16/2/98                       Minor changes resulting from
                                               meeting with ICO on 13/2/98.
                                               Section 4.4.4 - removed square
                                               brackets
</TABLE>
<PAGE>   1433
                      HPN SUBSYSTEM SIMULATOR REQUIREMENTS

1.  PURPOSE

The purpose of the HPN Subsystem Simulator (HPNSS) is to provide simulation of
the HPN functions (including monitoring and display of the HPN behaviour on the
network side) to test the Space Craft Engineering Model Payload during the G0'
test campaign and to test the Prototype User Terminal (PUT) during the G0 test
campaign.

2.  SCOPE

The HPNSS provides the capability to simulate HPN functions at the SAN. It
executes the HPN functions in a controlled environment, defined by user
commands. It provides the capability for an operator to enter the configuration
and control commands. It also displays and logs the results. This document
describes the requirements associated with the HPNSS.

3.  REFERENCES

[1] ICONET Ground Facilities Requirements Document, ICO Global Communications,
v26, October 29, 1997.

[2] Air Interface, ICO Global Communications, Version 4.0, September/October
1997:

<TABLE>
<S>                        <C>
         ICO 04.08.A1      Radio interface layer 3 specification
         ICO 104.08.A1     HPN Radio interface layer 3 (HPN-RR) specification
         ICO 103.40.A1     Technical realization of the high penetration
                           notification service
         ICO 05.01.A1      Physical Layer on the Radio Path:  General
                           Description
         ICO 05.02.A1      Multiplexing and Multiple Access on the Radio Path
         ICO 05.03.A1      Channel Coding
         ICO 05.04.A1      Modulation
         ICO 05.05.A1      Radio Transmission and Reception
         ICO 05.08.A1      Radio Subsystem link control
         ICO 05.10.A1      Radio Subsystem Synchronization.
</TABLE>

[3] Payload Space Ground Interface Control Document, 9th Dec 1996
(SS80447-H00-001)

4.  SPECIFIC REQUIREMENTS

This section summarizes the requirements for the HPNSS. The requirements are
classified into a) Physical Layer, b) RR Layer Protocol, c) Upper Layer (TL &
AL) Protocols, and c) Test Control and Monitoring

4.1 PHYSICAL LAYER

The physical layer requirements associated with the HPNSS are as follows:

-    It shall transmit SCH/HP, BCCH/HP, and NCH/HP bursts in conformance with
     the ICO air interface specifications 05.xx series.

-    It shall receive ACK/HP bursts in conformance with the ICO air interface
     specifications 05.xx series.

-    It shall be capable of simultaneously receiving up to 4 acknowledgements to
     allow for load testing. Since the acknowledgement burst sequence is longer
     in duration than the forward channel HPN notification bursts, multiple
     receivers are required to enable load testing over a single HPN transmit
     channel.

-    It shall transmit the HPN-PCS messages in conformance with the Payload
     space ground ICD[3]. This capability will be used to validate the
     inter-working with the Engineering Model (EM) payload of the satellite by
     sending the index table selection and switch-over commands.

-    It shall provide an L-band coaxial interface to the Satellite Channel
     Simulator (SCS).

-    It shall interface to an external clock distribution subsystem (CDS) to
     receive a 10 MHz clock and a GPS time code signal.

4.2 RR LAYER PROTOCOL

The HPN-RR layer protocol requirements associated with the HPNSS are as follows:
<PAGE>   1434
-    It shall conform to the HPN-RR protocols specified in ICO air interface
     specifications 104.08. It shall be able to transmit single Location phase
     (BCCH/HP) bursts, dual/quadruple Notification phase (NCH/HP) bursts and
     receive acknowledgements in accordance with the RR protocol.

4.3 UPPER LAYER (TL AND AL) PROTOCOLS

The HPN-TL and HPN-AL layer protocol requirements associated with the HPNSS are
as follows:

-    It shall implement the HPN-TL protocol as specified in ICO air interface
     specifications 103.40. Note that the feature associated with interfacing to
     an external HLR for service centre alerting shall not be provided.

-    It shall allow for the HPN-AL header and data to be scripted from the
     console.

4.4 TEST MONITOR AND CONTROL

The HPNSS shall be capable of configuring parameters and test scenarios, and
displaying and logging HPN messages & acknowledgements, as explained in the
following sections.

4.4.1  Configuration of Parameters

The HPNSS shall provide the capability for configuration of the following
parameters:

      -    HPN Transmit & Receive Frequencies

      -    Transmit Power Level

      -    Simulated Doppler Correction Information (fine frequency tuning)

      -    Simulated Emphemeris Data Processing (burst time delay)

4.4.2  Configuration of Test Scenarios

The HPNSS shall provide the capability to specify the following parameters for
HPN transmissions:

      -    UT - TMSI, IMSI, Location (and Zone Number)

      -    Number of Messages to be sent

      -    Message Length

      -    Message Inter-arrival Time & Distribution

      -    HPN-AL header/data contents(including patterns to enable BER testing)

4.4.3  Compute Message Error Rates & BER statistics

The HPN-SS in conjunction with the HPN UT Simulator shall be capable of
monitoring and reporting statistics related to received Message Error Rate and
BER. The BER statistics shall be generated in a test mode, wherein a known
pattern is introduced in the HPN burst.

4.4.4  Display and Log HPN messages

The HPNSS shall be capable displaying and logging transmitted HPN messages and
the correspondingly received positive and negative acknowledgements. The display
shall include the time the message was transmitted and acknowledgement was
received as well as the UT involved with the transmission and the contents of
the message. Message logging capacity shall be provided for at least 10,000
messages.

5.  ANNEX - A IGFR COMPLIANCE

Table below summarizes the HPN Subsystem applicable IGFR (Version 26)
requirements that are supported by the HPN Simulator

<TABLE>
<CAPTION>
IGFR NUMBER          Y/N   COMMENTS
<S>                  <C>   <C>
1.2.1.1.              Y    General requirement
1.2.2.2.3.1.          Y
1.2.2.2.3.2.          Y
</TABLE>

                                       2
<PAGE>   1435
<TABLE>
<S>                  <C>   <C>
1.2.2.2.3.3.          Y
1.2.2.2.3.4.          Y
1.2.2.2.3.5.          N    Dummy local HPN SRMS
1.2.2.2.3.6.          N    HPN OMC & MMI functions not supported by the HPN Subsystem Simulator
3.1.1.                Y    General requirement
3.2.1.                Y    General requirement
3.2.2.                Y    General requirement
3.3.2.1.1.            Y    Limited 103.40 AL functionality  (supported via test scripts)
4.4.1.1.10.           Y
4.4.1.1.11.           Y
4.4.1.1.13.           Y    In absence of MSSC & complete AL module, functionality triggered via test scripts
4.4.1.1.14.           Y    103.40 AL will be supported via test scripts
4.4.1.1.15.           Y    Single satellite only
4.4.1.1.16.           Y
4.4.1.1.17.           Y
4.4.1.1.18.           Y
4.4.1.1.19.           Y
4.4.1.1.2.1.          Y
4.4.1.1.2.2.          Y
4.4.1.1.3.            Y    In absence of MSSC & complete AL module, functionality triggered via test scripts
4.4.1.1.6.            Y    In absence of MSSC & complete AL module, functionality triggered via test scripts
4.4.1.1.7.            Y    In absence of MSSC & complete AL module, functionality triggered via test scripts
4.4.1.1.8.            N    No MSSC link
4.4.1.1.9.            Y    In absence of MSSC & complete AL module, functionality triggered via test scripts
4.4.1.2.1.            N    Encryption Not Supported
6.14.10.              N    Encryption Not Supported
6.2.9.                Y    Single satellite only
6.5.1.1.              N    No DCN
6.5.1.12.             N    No DCN
6.5.1.13.             N    No DCN
6.5.1.5.              N    No DCN
6.23.1.               Y    Single satellite only
6.23.3.1.             Y    General requirement
6.23.3.2.             Y    General requirement
6.23.3.3              Y    General requirement
6.23.4.               Y    General requirement
6.23.6.1.             Y    General requirement
6.23.6.2.             Y    General requirement
6.25.1.1.1.5.         Y
6.25.1.2.1.2.1.       Y
6.25.2.1.2.1.         Y
6.25.2.3.1.5          N    "canned" pre-correction of doppler frequency
6.25.2.3.4.1.         N    "canned" pre-correction of doppler frequency
6.25.2.3.4.2.         N    "canned" pre-correction of doppler frequency
6.25.2.3.4.3.         Y
6.26.2.1.             Y    General requirement
6.26.2.2.             Y    General requirement
6.26.2.3.17.          Y
6.34.1.1.1.           Y    General requirement
6.34.1.1.2.           Y    General requirement
6.47.3.2.1.           N    no EIRP adjustment capability via the SRMC
6.47.3.2.2.           N    no power calibration functionality
6.47.3.2.3.           N    no power calibration functionality
</TABLE>
<PAGE>   1436
<TABLE>
<S>                  <C>   <C>
6.49.4.1.3.1.         N    no EIRP adjustment capability via the SRMC
6.50.1.2.2.           N    interface to NMC not supported
6.50.1.2.3.           N    interface to NMC not supported
6.50.1.2.4.           N    interface to NMC not supported
6.50.2.4.3.           Y    Frequency & time plans defined via test scripts (& not SRMS)
6.52.1.1.             Y    Limited AL functionality will be supported via test scripts
6.52.1.2.             Y    Limited AL functionality will be supported via test scripts
6.52.10.1.            Y
6.52.10.2.            Y
6.52.10.3.            Y
6.52.10.4.            Y
6.52.2.1.1.           Y
6.52.2.1.2.           Y
6.52.2.1.3.           Y
6.52.2.1.4.           Y    Single satellite only
6.52.2.1.5.           Y    Single satellite only
6.52.2.1.6.           Y
6.52.3.1.             Y
6.52.3.2.             Y
6.52.3.3.1.           Y    Single satellite only; not operator configurable
6.52.3.3.2.           Y    Single satellite only; not operator configurable
6.52.3.3.3.           Y    Not configurable by NMS
6.52.3.4.             Y
6.52.3.5.             Y
6.52.6.1.             Y    Single satellite only
6.52.6.2.             Y
6.52.6.3.             N    No pre-correction of doppler frequency
6.52.7.1.             Y
6.52.7.2.             Y
6.52.7.3.             Y
6.52.7.5.             N    Interface to SRMC not supported
6.52.7.6.             Y
6.52.8.1.             Y
6.52.9.1.             Y    Single satellite, single SAN only
6.52.9.10.            Y    Location phase plan will be determined from test data
6.52.9.11.            Y
6.52.9.2.             Y    Single satellite, single SAN only
6.52.9.3.             Y    Single satellite, single SAN only
6.52.9.4.             Y
6.52.9.5.1.           Y    Single satellite only
6.52.9.5.2.           Y
6.52.9.6.             Y    Single satellite only
6.52.9.6.1.           Y    Single satellite only
6.52.9.6.2.           Y    Single satellite only
6.52.9.6.3.           Y    Single satellite only
6.52.9.6.4.           N    Frequency diversity option not supported
6.52.9.7.             Y
6.52.9.9.             Y    Only sub-bullets 3, 4, 5 supported; not configurable by NMS
6.53.1.1.1.3.         Y
6.53.1.11.1.          Y
6.53.1.11.2.3.        Y
6.53.1.11.2.5.        Y
6.53.1.12.            Y
</TABLE>

                                       4
<PAGE>   1437
<TABLE>
<S>                  <C>   <C>
6.53.1.14.1.          Y
6.53.1.14.2.          Y
6.53.1.14.3.          Y
6.53.1.14.4.          Y
6.53.1.14.5a          Y
6.53.1.14.5b          Y
6.53.1.14.6.          Y
6.53.1.2.1.2.         Y
6.53.1.6.1.           N    power calibration not supported
6.53.1.6.2.           N    power calibration not supported
6.53.1.6.3.           N    power calibration not supported
6.53.1.6.4.           N    power calibration not supported
6.53.1.9.             Y
6.53.2.2.4.           Y
6.57.10.3.            Y
6.57.3.1.1.1.b        N    HPN SS does not interface to RFT
6.57.3.1.1.1.e        N    HPN SS does not interface to RFT
6.57.5.2.3.           N    "canned" pre-correction of doppler frequency
6.57.5.2.4.           N    "canned" pre-correction of doppler frequency
6.58.2.2.2.2.         Y
6.58.2.2.2.3.         Y
6.59.9.2.4.2.         Y    Limited to single SAN
Section 7 HPN         N    Limited O&M capabilities
reqs
8.1.1.                Y    General requirement
8.7.1.1.              Y
8.7.2.1.              Y
8.7.3.1.              Y
8.7.3.2.1.            N    Not designed to handle full load (limited number of CU's and processing power in the
                           Controller)
8.7.3.2.2.            N    see above
8.7.3.3.              Y
8.7.3.4.              N    Not applicable
8.7.4.1.              Y
8.7.4.2.1.            Y
8.7.4.2.2.            Y
8.7.4.2.3.            Y
8.7.4.2.4.            Y
8.7.4.2.5.            Y
8.7.4.2.6.            Y
8.7.4.2.7.            Y
8.11.                 N    Availability requirements not applicable - non redundant configuration proposed
9.1.                  N    Capacity requirements as per Deliverables section of this proposal and the reference HPN
                           Subsystem Simulator Requirements document
</TABLE>
<PAGE>   1438
                               NEC PROGRAM OFFICE
                                   ICO PROJECT

5th Floor, Horatio House
77-85 Fulham Palace Rd
LONDON
W6 8JC
UK
Tel : +44 (0) 181 600 4200
Admin Office Fax : +44 (0) 181 600 4290
Contract Office Fax : +44 (0) 181 600 4295

                                DOCUMENT HEADER

DOCUMENT TITLE / SUBJECT & INDEX REFERENCE

HPN Subsystem Simulator Design Summary

<TABLE>
<CAPTION>
ISSUER INFORMATION
<S>                                                <C>
ISSUED BY                                          DATE:

Adrian Streeter                                    17/2/98
</TABLE>

<TABLE>
<CAPTION>
ICO PROJECT DOCUMENT NUMBER
<S>                 <C>       <C>    <C>          <C>
   WORKGROUP        TYPE      YR     NUMBER       REV

      WG3           Doc       7       0188         C
</TABLE>

WORKGROUP

WG3 - ETL (MSSC)

DOCUMENT TYPE

PROJECT OFFICE USE                               DATE

8.3 DOS FILENAME                                 ISSUING GROUP DOCUMENT NUMBER

DOC

SECURITY LEVEL                                   ADDITIONAL NOTES IF REQUIRED

/ / CONFIDENTIAL

/x/ RESTRICTED

/ / NON - RESTRICTED

/x/ Attached is a copy of a document, which is issued to you under the Data &
Documentation Control procedure WG8-PL-60002-A1. You will receive all subsequent
updates on this document. It is your responsibility to maintain the
documentation to its latest status. Please advise the NEC Project Office
Documentation Manager if you do not require further updates.

/ / Attached is a copy of the updated document. Please update & destroy any
previous issued copies, or advise the NEC Project Office Documentation Manager
if you do not require any further updates.

<PAGE>   1439
                                                                          [LOGO]

                     HPN SUBSYSTEM SIMULATOR DESIGN SUMMARY

                                       2
<PAGE>   1440
<TABLE>
<CAPTION>
                                TABLE OF CONTENTS
<S>                                                                          <C>
1. General....................................................................1
2. Requirements...............................................................1
3. Hardware Design............................................................1
4. Software Design............................................................2
5. Physical Layout (Preliminary)..............................................3
6. Miscellaneous..............................................................3
</TABLE>

                                       3
<PAGE>   1441
                                REVISION HISTORY

<TABLE>
<S>             <C>                            <C>
Rev A           October 14th,  1997            Initial Release

Rev B           November 26th, 1997            Updated based on following
                                               comments from ICO -
                                               -  Added table of contents
                                               -  Fixed typographical errors

Rev C           17/2/98                        Minor changes as result of
                                               meeting with ICO on 13/2/98.
</TABLE>

                                       4
<PAGE>   1442
                     HPN SUBSYSTEM SIMULATOR DESIGN SUMMARY

1. GENERAL

The HPN Subsystem Simulator (HPNSS) provides the capability to simulate the HPN
functions at the SAN. The HPNSS will be used during the G0 and G0' ICONET
Integration (II) tests. The HPNSS provides the capability to run operator
controlled HPN testing and also provides monitoring and logging capability that
is required during those tests. A high level design summary of the HPNSS is
provided in this document.

2. REQUIREMENTS

The HPNSS shall comply with the requirements specified in the HPN Subsystem
Simulator Requirements document Rev B, 26th November 1997.

3. HARDWARE DESIGN

The HPNSS will re-use to a large extent the hardware being designed and
developed for the HPN Subsystem. The HPNSS consists of the following elements:

    - 1 HPN-SS Controller (SUN Ultra Sparc server)

    - 1 Laptop with X-windows software

    - 4 HPN Channel Units

    - 1 MCD card (for interfacing with CDS and providing time reference)

    - 1 Ethernet Hub

    - Local IF distribution (this connects to the SCS at L-band)

    - Misc (e.g. power supply, etc.)

The above components are identical to those used in the HPN Subsystem with the
following exceptions:

    - A Laptop with X-windows software is provided for the MMI.

    - Fewer number of channel units

    - Non-redundant configuration (Single Sun workstation, single Ethernet Hub,
      single MCD, and no in-line Channel Unit spares)

Figure 1, shows a logical layout of the HPN Subsystem Simulator.

                                       1
<PAGE>   1443
                                [GRAPHIC OMITTED]

         FIGURE 1 HPN SUBSYSTEM SIMULATOR LOGICAL LAYOUT (PRELIMINARY)

4. SOFTWARE DESIGN

The software for the HPNSS will also re-use elements from the
HPN Subsystem design and development effort. The additional software that are
required are identified below with a brief description of these new software
modules. The primary software modules within the HPNSS Controller subsystem are:

    - HPN-AL Test Generator (new)

    - HPN-TL

    - HPN-RR

    - HPN Scheduler Scripts (new)

    - HPN Transmission Management

    - HPN Timing Synchronization

    - HPN-Test Monitor (new)

    - HPN O&M

HPN-AL Test Generator will interface with the HPN-TL, enable the operator to
specify parameters associated with HPN message generation such as destination
UT, AL layer header and data contents.

HPN-Test Monitor: provides display and logging capabilities.

HPN Scheduler scripts will essentially bypass the detailed Resource Management
functions (Pre-scheduler, Subnet Data Synchronization, Scheduler, Acknowledgment
Resource Management), Satellite and SAN selection functions, and implement a
rudimentary scheduling algorithm to feed scheduled Notification and Location
phase bursts to the HPN Transmission Management software module.

                                [GRAPHIC OMITTED]

                    FIGURE 2 HPN SIMULATOR SOFTWARE MODULES

                                       2
<PAGE>   1444
5. PHYSICAL LAYOUT (PRELIMINARY)

Figure 3, shows a block diagram for the HPNSS. From the hardware viewpoint, it
consists of a 4' high rack containing a number of 19" rack mount subassemblies,
as shown in the figure. Starting from the top of the rack, the Ethernet Hub is
an IEEE 802.3 standard 10BaseT wiring hub offering multiple RJ45 physical
connections. The Hub is connected to all Channel Units (located in the CU
Chassis), to the SUN computer, and offers connection to external equipment, if
desired. The CU Chassis provides a total of eight slots for Channel Units. Of
these, four (4) are populated with Channel Units to simulate traffic for
multiple users, while the other four are blank (unused) slots. The 4 Channel
Units provide the physical layer transmit and receive capabilities needed to
simulate transmit/receive activity on the ICO air interface specification 05.xx
series. Cooling is provided by a fan tray located directly below the CU Chassis.
The Channel Units are all monitored and controlled via HPN Controller software
running on the SUN computer. This software accesses each Channel Unit via its
Ethernet connection, collects and analyzes health and status information,
assigns channel units to specific tasks and downloads data necessary for the
Channel Unit to fulfill the function assigned. Both the SUN computer and the
Ethernet Hub are powered using single-phase AC power (110/220 VAC, 50/60 Hz
options available). The CU Chassis and fan tray are powered from DC voltages
supplied by the DC power supply located in the bottom of the rack. Prime power
interface to the DC supply can be either 48VDC, 110VAC, or 220VAC as a factory
option. A 10 MHz signal having sine wave format with +13+1 dBm level at
50(OMEGA) impedance must be externally supplied to the UT simulator. This may be
provided by the SAN clock distribution subsystem (CDS) or any other external
source.

                               [GRAPHIC OMITTED]

              FIGURE 3 HPN SIMULATOR PHYSICAL LAYOUT (PRELIMINARY)

6. MISCELLANEOUS

The HPN Simulator equipment will not be tested/certified for EMC compliance,
safety, or the environments specified in section 8.11.3 of the IGFR. However,
standard design practices will be employed for safety and reliability and all
components utilized will at least operate in the standard commercial temperature
range of 0(degree) - 70(degree) C.

                                       3

<PAGE>   1445
                               NEC PROGRAM OFFICE
                                   ICO PROJECT

5th Floor, Horatio House
77-85 Fulham Palace Rd
LONDON
W6 8JC
UK
Tel : +44 (0) 181 600 4200
Admin Office Fax : +44 (0) 181 600 4290
Contract Office Fax : +44 (0) 181 600 4295

                                 DOCUMENT HEADER

DOCUMENT TITLE / SUBJECT & INDEX REFERENCE

PROPOSAL FOR HPN SUBSYSTEM SIMULATOR TO BE USED FOR THE G0 AND G0' TEST
CAMPAIGNS

<TABLE>
<CAPTION>
ISSUER INFORMATION                           ICO PROJECT DOCUMENT NUMBER
--------------------------------------------------------------------------------------------------
ISSUED BY                      DATE:            WORKGROUP        TYPE      YR     NUMBER       REV
--------------------------------------------------------------------------------------------------
<S>                            <C>           <C>                 <C>       <C>    <C>          <C>
Adrian Streeter                17/2/98             WG3           Doc       7       0193         C
</TABLE>

<TABLE>
<CAPTION>
WORKGROUP                                                        DOCUMENT TYPE
--------------------------------------------------------------------------------
<S>                                                              <C>
WG3 - ETL (MSSC)
</TABLE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------
PROJECT OFFICE USE        DATE       8.3 DOS FILENAME        ISSUING GROUP DOCUMENT NUMBER
------------------------------------------------------------------------------------------
<S>                       <C>        <C>                     <C>
                                     .DOC
</TABLE>

<TABLE>
<CAPTION>
SECURITY LEVEL                              ADDITIONAL NOTES IF REQUIRED
--------------------------------------------------------------------------------
<S>                                         <C>
/ / CONFIDENTIAL
/X/ RESTRICTED
/ / NON - RESTRICTED
</TABLE>

         /X/ Attached is a copy of a document, which is issued to you under the
         Data & Documentation Control procedure WG8-PL-60002-A1. You will
         receive all subsequent updates on this document. It is your
         responsibility to maintain the documentation to its latest status.
         Please advise the NEC Project Office Documentation Manager if you do
         not require further updates.

         / / Attached is a copy of the updated document. Please update & destroy
         any previous issued copies, or advise the NEC Project Office
         Documentation Manager if you do not require any further updates.

<PAGE>   1446
HPN Subsystem Simulator Proposal

                                  PROPOSAL FOR
      HPN SUBSYSTEM SIMULATOR TO BE USED FOR THE G0 AND G0' TEST CAMPAIGNS

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                            <C>
1.0 INTRODUCTION.......................................................        3
2.0 PROPOSAL...........................................................        3
3.0 SCOPE OF WORK......................................................        3
4.0 APPLICABLE DOCUMENTS...............................................        3
5.0 DELIVERABLES.......................................................        3
6.0 PROGRAM MANAGEMENT AND IMPLEMENTATION..............................        4
7.0 ACCEPTANCE TEST....................................................        4
8.0 AIR INTERFACE AND IGFR BASELINE....................................        4
9.0 SCHEDULE...........................................................        4
APPENDIX A.............................................................        1
</TABLE>

                                      -2-

COMSAT PROPRIETARY - The use or disclosure of this information is subject to the
                     restrictions stated in the title page
<PAGE>   1447
HPN Subsystem Simulator Proposal

1.0      INTRODUCTION

         This proposal defines the technical and management requirements for
         developing, testing, and delivering an HPN Subsystem Simulator for G0
         and G0' Test Campaigns. The Deliverables are two HPN Subsystem
         Simulators, System Design Review, Acceptance Testing, and Manuals.

2.0      PROPOSAL

         This proposal comprises this main text plus Annex A.

3.0      SCOPE OF WORK

         This work includes the Design, Development and Delivery of a HPN
         Subsystem Simulator in accordance with HPN Subsystem Simulator
         Requirements document and HPN Subsystem Simulator Design Summary
         document. As described in the Design Summary document, the hardware for
         the HPN-Subsystem Simulator is a subset of the HPN Subsystem at the SAN
         (in a smaller rack). Additional software is required for test control,
         configuration and monitoring as well as for a "dummy" HPN local SRMS
         function. Note that the HPN Subsystem simulator does not support the
         injection of data patterns from an external BERT directly at the
         Channel Units (for BER testing). We have proposed an alternate method
         of testing BER.- see HPN subsystem Simulator requirements Para 3.4.2.

4.0      APPLICABLE DOCUMENTS

         The documents applicable to the effort in the SOW are as follows:

         1.       ICO First Integration Phase: EN-II-ICO-TN/000085

         2.       N/A

         3.       Test Requirements Documents for the SAN/UT Interworking
                  Campaign (G0.x)

         4.       HPN Subsystem Simulator Requirements Document version
                  B(November 26, 1997)

         5.       HPN Subsystem Simulator Design Summary Document version
                  B(November 26, 1997)

5.0      DELIVERABLES

         0        The deliverables associated with this proposal are -

         1        HPN Simulator System Design Review

         2        HPN Simulator Test Plan

         3        One (1 for G0 )) 19" wide rack containing: (note that the
                  hardware configuration of the HPN Subsystem Simulator rack are
                  identical to that of the HPN-UT Simulator. However there are
                  significant differences in the Controller Software, Channel
                  Unit Software, DSP firmware, and EPLD firmware

                           -        One chassis/backplane

                           -        Four Channel Unit Cards

                           -        One power supply subsystem

                           -        One MCD card

                           -        One Sun Ultra-Sparc Computer

                           -        One fan tray

                           -        One laptop computer

                           -        One printer

                           -        One Ethernet hub

                           -        One Local IF distribution panel

                           -        Interface cabling

         4        HPN Subsystem Simulator Software/Firmware

         5        HPN Subsystem Simulator Acceptance Test Results

         6        HPN Subsystem Simulator Operations Manual

                                      -3-

COMSAT PROPRIETARY - The use or disclosure of this information is subject to the
                     restrictions stated in the title page
<PAGE>   1448
HPN Subsystem Simulator Proposal

6.0      PROGRAM MANAGEMENT AND IMPLEMENTATION

         COMSAT is a subcontractor to ETL for this project and will report to
         ETL/ICO as an extension to COMSAT's current HPN Subsystem contract with
         ETL. Internally to COMSAT, the HPN Subsystem Simulator project will be
         managed by an HPN Special Test Equipment Manager reporting to COMSAT's
         HPN Project Manager. The same project controls and quality standards
         used for the HPN Equipment development will be applied to the HPN
         Subsystem Simulator development.

         The major milestones and development phases for the program are given
         in the program schedule. A single design review with ETL/ICO is
         planned. This review will compare the capabilities and functions of the
         HPN Subsystem Simulator to the SAN HPN in regards to the testing needs
         of the EM Payload and the UT breadboard/Field Test UT.

7.0      ACCEPTANCE TEST

         COMSAT will conduct a formal Acceptance Test of the HPN Subsystem
         Simulator equipment which may be witnessed by ETL and ICO at their
         discretion. The Test plan will use a subset of the HPN Subsystem VCRM
         as per requirements identified in [4].

8.0      AIR INTERFACE AND IGFR BASELINE

         The HPN Subsystem Simulator design will be based on AI Version 4 and
         IGFR Version 26 and as per the requirements outlined [4]. CNs received
         on either of these baseline documents will be evaluated on a case by
         case basis. When requested by ICO/ETL, COMSAT will provide cost and
         schedule estimates to incorporate CNs into the HPN subsystem simulator
         design.

9.0      SCHEDULE
         HPN Subsystem Simulator Development Program Milestones.

<TABLE>
<CAPTION>
         MILESTONE                                 DATES
         -----------------------------------------------------------------------
<S>                                                <C>
         Req. Analysis & System Design             Feb 2, 1998- March 17,1998

         System Design Review                      March 17, 1998

         Design & Development                      March 17, 1998 - June 1, 1998

         Integration & Testing                     June 2, 1998- June 26, 1998

         Test Plan                                 June 1, 1998

         Acceptance Testing                        June 29- July 24, 1998

         Documentation                             May 15, 1998 -
                                                    June 15, 1998
</TABLE>

                                      -4-

COMSAT PROPRIETARY - The use or disclosure of this information is subject to the
                     restrictions stated in the title page
<PAGE>   1449
HPN Subsystem Simulator Proposal

APPENDIX A

Table below summarizes the HPN Subsystem applicable IGFR (Version 26)
requirements that are supported by the HPN Simulator

<TABLE>
<CAPTION>
IGFR NUMBER          Y/N   COMMENTS
---------------------------------------------------------------------------------------------------------------
<S>                  <C>   <C>
1.2.1.1.              Y    General requirement

1.2.2.2.3.1.          Y

1.2.2.2.3.2.          Y

1.2.2.2.3.3.          Y

1.2.2.2.3.4.          N

1.2.2.2.3.5.          N

3.1.1.                Y    General requirement

3.2.1.                Y    General requirement

3.2.2.                Y    General requirement

3.3.2.1.1.            Y    Limited 103.40 AL functionality  (supported via test scripts)

4.4.1.1.10.           Y

4.4.1.1.11.           Y

4.4.1.1.13.           Y    In absence of MSSC & complete AL module, functionality triggered via test scripts

4.4.1.1.14.           Y    103.40 AL will be supported via test scripts

4.4.1.1.15.           Y    Single satellite only

4.4.1.1.16.           Y

4.4.1.1.17.           Y

4.4.1.1.18.           Y

4.4.1.1.19.           Y

4.4.1.1.2.1.          Y

4.4.1.1.2.2.          Y

4.4.1.1.3.            Y    In absence of MSSC & complete AL module, functionality triggered via test scripts

4.4.1.1.6.            Y    In absence of MSSC & complete AL module, functionality triggered via test scripts

4.4.1.1.7.            Y    In absence of MSSC & complete AL module, functionality triggered via test scripts

4.4.1.1.8.            N    No MSSC link

4.4.1.1.9.            Y    In absence of MSSC & complete AL module, functionality triggered via test scripts

4.4.1.2.1.            N

6.14.10.              N

6.2.9.                Y    Single satellite only

6.23.1.               Y    Single satellite only

6.23.3.1.             Y    General requirement

6.23.3.2.             Y    General requirement

6.23.3.3              Y    General requirement

6.23.4.               Y    General requirement

6.23.6.1.             Y    General requirement

6.23.6.2.             Y    General requirement

6.23.7.               N

6.25.1.1.1.5.         Y

6.25.1.2.1.2.1.       Y

6.25.2.1.2.1.         Y

6.25.2.3.1.5          N

6.25.2.3.4.1.         N

6.25.2.3.4.2.         N

6.25.2.3.4.3.         N
</TABLE>

                                      -1-

COMSAT PROPRIETARY - The use or disclosure of this information is subject to the
                     restrictions stated in the title page
<PAGE>   1450
HPN Subsystem Simulator Proposal

<TABLE>
<S>                  <C>   <C>
6.26.2.1.             Y    General requirement

6.26.2.2.             Y    General requirement

6.26.2.3.17.          Y

6.34.1.1.1.           Y    General requirement

6.34.1.1.2.           Y    General requirement

6.47.3.2.1.           N

6.47.3.2.2.           N

6.47.3.2.3.           N

6.49.1.5.6.1.4.       N

6.49.4.1.3.1.         N

6.5.1.1.              Y    No DCN

6.5.1.12.             Y    No DCN

6.5.1.13.             Y    No DCN

6.5.1.5.              Y    No DCN

6.50.1.2.2.           N

6.50.1.2.3.           N

6.50.1.2.4.           N

6.50.2.4.3.           Y    Frequency & time plans defined via test scripts (& not SRMS)

6.52.1.1.             Y    Limited AL functionality will be supported via test scripts

6.52.1.2.             Y    Limited AL functionality will be supported via test scripts

6.52.10.1.            Y

6.52.10.2.            Y

6.52.10.3.            Y

6.52.10.4.            Y

6.52.2.1.1.           Y

6.52.2.1.2.           Y

6.52.2.1.3.           Y

6.52.2.1.4.           Y    Single satellite only

6.52.2.1.5.           Y    Single satellite only

6.52.2.1.6.           Y

6.52.3.1.             Y

6.52.3.2.             Y

6.52.3.3.1.           Y    Single satellite only; not operator configurable

6.52.3.3.2.           Y    Single satellite only; not operator configurable

6.52.3.3.3.           Y    Not configurable by NMS

6.52.3.4.             Y

6.52.3.5.             Y

6.52.6.1.             Y    Single satellite only

6.52.6.2.             Y

6.52.6.3.             N

6.52.7.1.             Y

6.52.7.2.             Y

6.52.7.3.             Y

6.52.7.5.             N

6.52.7.6.             Y

6.52.8.1.             Y

6.52.9.1.             Y    Single satellite, single SAN only

6.52.9.10.            Y    Location phase plan will be determined from test data

6.52.9.11.            Y

6.52.9.2.             Y    Single satellite, single SAN only

6.52.9.3.             Y    Single satellite, single SAN only

6.52.9.4.             Y

6.52.9.5.1.           Y    Single satellite only
</TABLE>

                                      -2-

COMSAT PROPRIETARY - The use or disclosure of this information is subject to the
                     restrictions stated in the title page
<PAGE>   1451
HPN Subsystem Simulator Proposal

<TABLE>
<S>                  <C>   <C>
6.52.9.6.             Y    Single satellite only

6.52.9.6.1.           Y    Single satellite only

6.52.9.6.2.           Y    Single satellite only

6.52.9.6.3.           Y    Single satellite only

6.52.9.6.4.           N

6.52.9.7.             Y

6.52.9.8.             N

6.52.9.9.             Y    Only sub-bullets 3, 4, 5 supported; not configurable by NMS

6.53.1.1.1.3.         Y

6.53.1.11.1.          Y

6.53.1.11.2.3.        Y

6.53.1.11.2.5.        Y

6.53.1.12.            Y

6.53.1.14.1.          Y

6.53.1.14.2.          Y

6.53.1.14.3.          Y

6.53.1.14.4.          Y

6.53.1.14.5a          Y

6.53.1.14.5b          Y

6.53.1.14.6.          Y

6.53.1.2.1.2.         Y

6.53.1.6.1.           N

6.53.1.6.2.           N

6.53.1.6.3.           N

6.53.1.6.4.           N

6.53.1.9.             Y

6.53.2.2.4.           Y

6.57.10.3.            Y

6.57.3.1.1.1.b        N

6.57.3.1.1.1.e        N

6.57.5.2.3.           N

6.57.5.2.4.           N

6.58.2.2.2.2.         Y

6.58.2.2.2.3.         Y

6.59.9.2.4.2.         Y    Limited to single SAN

Section 7 HPN         N    Limited O&M capabilities
reqs

8.1.1.                Y    General requirement

8.7.1.1.              Y

8.7.2.1.              Y

8.7.3.1.              Y

8.7.3.2.1.            N    Not designed to handle full load (limited number of CU's and processing power in the
                           Controller)

8.7.3.2.2.            N

8.7.3.3.              Y

8.7.3.4.              N

8.7.4.1.              Y

8.7.4.2.1.            Y

8.7.4.2.2.            Y

8.7.4.2.3.            Y

8.7.4.2.4.            Y

8.7.4.2.5.            Y
</TABLE>

                                      -3-

COMSAT PROPRIETARY - The use or disclosure of this information is subject to the
                     restrictions stated in the title page
<PAGE>   1452
HPN Subsystem Simulator Proposal

<TABLE>
<S>                  <C>   <C>
8.7.4.2.6.            Y

8.7.4.2.7.            Y

8.11.                 N    Availability requirements not applicable - non redundant configuration proposed

9.1.                  N    Capacity requirements as per Deliverables section of this proposal and the reference
                           HPN Subsystem Simulator Requirements document
</TABLE>

                                      -4-

COMSAT PROPRIETARY - The use or disclosure of this information is subject to the
                     restrictions stated in the title page
<PAGE>   1453
                                                            IGF SUPPLY AGREEMENT
                                                    CONTRACT NO ICOO97 - 1016/GW
                                                              CHANGE ORDER NO. 4
                                                                    ATTACHMENT 5

5.1 ICONET INTEGRATION (G0 CAMPAIGN PRIORITY 1 + 2): PRICE SUMMARY

5.2 ICONET INTEGRATION (G0 CAMPAIGN PRIORITY 1 + 2): LABOUR FEE AND EXPENSES

5.3 ICONET INTEGRATION (G0 CAMPAIGN PRIORITY 1 + 2): ASSOCIATED MANAGEMENT
<PAGE>   1454
                        ICONET INTEGRATION (G0 CAMPAIGN)

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------------
                                                           G0 CAMPAIGN
--------------------------------------------------------------------------------------------------------------------------------
                                                                Man Months  Man Months    Amount   SA Clause   Reference of the
No.                     Description                     Q'ty     (Home)*3    (Away)*4      US$K       No.     Technical Proposal
--------------------------------------------------------------------------------------------------------------------------------
<S>   <C>                                              <C>      <C>         <C>         <C>        <C>        <C>
1.    Labour Fees - Man Days Estimated                                                              14.4 (b)
       - Priority 1+2                                  --          69.8        43.7        4,008       "

2     Associated Management - Man Days Estimated                                                    14.4 (g)
       - Priority 1+2                                  --          15.9         2.2          611       "

3.    Travel Cost                                      --           N/A         N/A       Actual    14.4 (c)  See Section 7.5 of
                                                                                            Cost                 B70096a6.doc

4.    Documentation                                    --           N/A         N/A          N/A    14.4 (e)

5.    Other Costs (Actual Cost Basis)                               N/A         N/A          332
      consisting of-:
5.1   Low Phase Noise Frequency Reference Source        2           N/A         N/A                            See Section 5 of
                                                                                                                 B70096a6.doc
5.2   L-S band Up Converter                             1           N/A         N/A                                   "
5.3   S-L band Down Converter                           1           N/A         N/A                                   "
5.4   Combiner                                          1           N/A         N/A                                   "
5.5   Splitter                                          1           N/A         N/A                                   "
5.6   TTCN Compiler w/training and Environment setup    2 sets      N/A         N/A                                   "
5.7   Miscellaneous Equipment (*1)                      1 set       N/A         N/A                                   "
5.8   BERTS (lease be HNS)                              1           N/A         N/A                                   "
5.9   Standard Test Equipment (lease by HNS)            1 set       N/A         N/A                                   "
5.10  Standard Test Equipment (lease by ETL/COMSAT)*2   1 set       N/A         N/A                           See Appendix B of
                                                                                                                 Doc.370191G

6.    Other Costs (Fixed))
6.1   HPN Subsystem Simulator                           1 set       N/A         N/A          413              See Appendix B of
                                                                                                                 Doc.370191G

--------------------------------------------------------------------------------------------------------------------------------
      GRAND TOTAL OF G0 PRIORITY 1+2                               85.7        45.9     US$5,363K
================================================================================================================================
</TABLE>

Note:    *1 : Individual Miscellaneous Equipment Purchases greater than $5,000
              requires ICO approval.

         *2 : Equipment rental based on 2 months rent at $10,150/month

         *3 : "Home" is calculated based on the 22 working days per one
              man-month.

         *4 : "Away" is calculated based on the 22 working days and 8
              non-working days per one man-month.

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------------
                                                      G0 OPTION1 / UT TYPE
--------------------------------------------------------------------------------------------------------------------------------
                                                                Man Months  Man Months    Amount   SA Clause
No.                     Description                     Q'ty     (Home)*3    (Away)*4      US$K       No.
--------------------------------------------------------------------------------------------------------------------------------
<S>   <C>                                              <C>      <C>         <C>         <C>        <C>        <C>
1.    Labour Fees - Man Months Estimated                              9        17.5          980    14.4 (b)

2.    Associated Management - Man Months Estimated                 6.25           0          206    14.4 (g)

3.    Travel Cost                                                   N/A         N/A       Actual    14.4 (c)
                                                                                            Cost

4.    Documentation                                                 N/A         N/A          N/A    14.4 (e)

5.    Other Costs (Estimated)                                       N/A         N/A           45

      GRAND TOTAL OF G0 OPTION 1                                  15.25        17.5     US$1,231K
</TABLE>

                                     Page 1
<PAGE>   1455
                  ICONET INTEGRATION (G0 CAMPAIGN)

                             LABOUR FEE AND EXPENSES

<TABLE>
<CAPTION>
====================================================================================================================================
      SA CLAUSE                  14.4 (a)                                               14.4 (b)
====================================================================================================================================
                                                                                                                    MIN. NUMBER OF
                                                    QUALIFICATIONS   NO. OF    MAN-MONTHS  MAN-MONTHS    TOTAL     MAN-MONTHS (MAX.
 CAMPAIGN #    COMPANY     DETAILED DEFINITIONS      OF PERSONNEL   PERSONNEL    (HOME)      (AWAY)    MAN-MONTHS  25% OF COLUMN I)
====================================================================================================================================
<S>            <C>      <C>                         <C>             <C>        <C>         <C>         <C>         <C>
                                                    Test Engineer       4           30          24           54           13.5

                                                    --------------------------------------------------------------------------------
                                                    Development
                                                    Engineer            2           14          13           27           6.75
                                                    --------------------------------------------------------------------------------
     G0          HNS       B70096a6.doc             Lab Manager         1            4                        4              1
                                                    --------------------------------------------------------------------------------
PRIORITY 1+2                                        Technical
                                                    Manager (See
                                                    Note2)              1            6           6           12              3
                                                                    ----------------------------------------------------------------
                                                    System
                                                    Engineering :
                                                    Technical
                                                    Director            1            7                        7           1.75
                           =========================================================================================================

               COMSAT      ETL-370191G              Scientist           2          8.3         0.7            9           2.25

                                                                    ----------------------------------------------------------------
                                                    MTS                 1          0.5                      0.5          0.125

====================================================================================================================================
                        TOTAL G0 PRIORITY 1+2                          12         69.8        43.7        113.5         28.375
====================================================================================================================================
</TABLE>

<TABLE>
<CAPTION>
=======================================================================================
      SA CLAUSE                    14.4 (c)                        14.4 (d)
=======================================================================================

 CAMPAIGN #    COMPANY   LOCATION OF II  TRAVEL COSTS          CAMPAIGN PERIOD
=======================================================================================
<S>            <C>       <C>             <C>           <C>
                            USA, MD       See Note 1   Refer to Section 10 of Technical
                                                       Proposal
                        ---------------

                            USA, MD
                        ---------------
     G0          HNS        USA, MD
                        ---------------
PRIORITY 1+2

                            USA, MD
                        ---------------

                            USA, MD
                        ===============                ================================

               COMSAT       USA, MD                    Refer to Section 10 of Technical
                                                       Proposal
                        ---------------
                            USA, MD

=======================================================================================

=======================================================================================
</TABLE>

                                   G0 OPTION 1

<TABLE>
<CAPTION>
====================================================================================================================================
      SA CLAUSE                  14.4 (a)                                               14.4 (b)
====================================================================================================================================
                                                                                                                    MIN. NUMBER OF
                                                    QUALIFICATIONS   NO. OF    MAN-MONTHS  MAN-MONTHS    TOTAL     MAN-MONTHS (MAX.
 CAMPAIGN #    COMPANY     DETAILED DEFINITIONS      OF PERSONNEL   PERSONNEL    (HOME)      (AWAY)    MAN-MONTHS  25% OF COLUMN I)
====================================================================================================================================
<S>            <C>      <C>                         <C>             <C>        <C>         <C>         <C>         <C>
                                                    Test Engineer       4            2        12.5         14.5          3.625

                                                    --------------------------------------------------------------------------------
G0 : OPTION 1    HNS       B70096a6.doc             Development
                                                    Engineer            2            3           3            6            1.5
                                                    --------------------------------------------------------------------------------
                                                    Lab Manager         1            2                        2            0.5
                                                    --------------------------------------------------------------------------------
(Per UT type)                                       Technical
                                                    Manager (See
                                                    Note2)              1            1           2            3           0.75
               =====================================================================================================================
               COMSAT      ETL-370191G              Scientist           1            1                        1           0.25

====================================================================================================================================
                        GRAND TOTAL OF G0 OPTION 1                      9            9        17.5         26.5          6.625
====================================================================================================================================
</TABLE>

<TABLE>
<CAPTION>
=======================================================================================
      SA CLAUSE                    14.4 (c)                        14.4 (d)
=======================================================================================

 CAMPAIGN #    COMPANY   LOCATION OF II  TRAVEL COSTS          CAMPAIGN PERIOD
=======================================================================================
<S>            <C>       <C>             <C>           <C>
                            USA, MD       See Note 1   Refer to Section 10 of Technical
                                                       Proposal
                        ---------------
G0 : OPTION 1    HNS
                            USA, MD
                        ---------------
                            USA, MD
                        ---------------
(Per UT type)

                            USA, MD
               ========================                ================================
               COMSAT       USA, MD                    Refer to Section 10 of
                                                       Technical Proposal
=======================================================================================

=======================================================================================
</TABLE>

Note 1 : Travel costs will be managed and invoiced in accordance with Clause 14
requirements.

Note 2 : This personnel is working for technical management - not program
management, which is covered in 14.4(g.)

                                     Page 1
<PAGE>   1456
ICONET INTEGRATION (G0 CAMPAIGN)

                              ASSOCIATED MANAGEMENT

<TABLE>
<CAPTION>
================================================================================================
            SA CLAUSE NO.                                      14.4 (g)
================================================================================================
 CAMPAIGN #          COMPANY               DESCRIPTION       MAN-MONTHS (HOME)  MAN-MONTHS(AWAY)
================================================================================================
<S>            <C>                    <C>                    <C>                <C>
                       HNS            Associated Management          12                 0
               ---------------------------------------------------------------------------------
     G0             COMSAT/ETL        Associated Management         1.2                 0
               ---------------------------------------------------------------------------------
PRIORITY 1+2          NEC PO          Associated Management         2.7               2.2
================================================================================================
               TOTAL G0 PRIORITY 1+2                               15.9               2.2
================================================================================================
</TABLE>

                                   G0 OPTION 1

<TABLE>
<CAPTION>
================================================================================================
            SA CLAUSE NO.                                      14.4 (g)
================================================================================================
 CAMPAIGN #          COMPANY               DESCRIPTION       MAN-MONTHS (HOME)  MAN-MONTHS(AWAY)
================================================================================================
<S>            <C>                    <C>                    <C>                <C>
G0 : OPTION 1          HNS            Associated Management           3                 0
               ---------------------------------------------------------------------------------
                      COMSAT          Associated Management        0.25                 0
               ---------------------------------------------------------------------------------
                      NEC PO          Associated Management           3                 0
================================================================================================
                 TOTAL G0 OPTION 1                                 6.25                 0
================================================================================================
</TABLE>

                                     Page 1

<PAGE>   1457
[Cover page graphic omitted]
<PAGE>   1458
-------------------------------------------------------------------------------
[ICO LOGO]                                                   CHANGE ORDER NO: 5

           IGF Supply Agreement
           Contract No ICOO97 - 1016/GW                Date: 20th November 1998
-------------------------------------------------------------------------------

In accordance with clause 9 of the Supply Agreement dated March 3rd 1997 between
NEC Corporation and ICO Global Communications Holdings BV, the Agreement is
hereby amended as follows:

<TABLE>
<S>                                    <C>

Amended Clauses                        See Attachment No 2 (Clause 15.1)

Amended Schedules                      See Attachment Nos 3.1 and 3.2 (Schedule 9 - Pricing Schedule Appendix 2)
                                       and Attachment Nos. 4.1 and 4.2 (Schedule 13 - IGFR Version 27.1)

Amended Annexes                        See Attachment Nos. 5.1 and 5.2 (Schedule 14  - Annex 1, Table 2)

Amended Price                          See Attachment No: 2

Other Amendments                       None

Reference Correspondence               ICO Change Request No. 10; IUKC-458;
                                       SA0763/WG7/19980407/GLT; Contractor Change Request No.87;
                                       SA1032/WG7/19980806/GLT; IUKC-711
                                       Contractor Change Request No. 81 (Version 2.0): IUKC-656; ICO
                                       Change Proposal No. 3 (4 August 1998); IUKC-710
</TABLE>

This Change Order No. 5 will now form part of the Supply Agreement dated March
3rd 1997 between the parties and shall be effective as at the date of this
Change Order No. 5 and shall be governed by and construed in accordance with the
laws of England.

Except for the changes set out above, this Change Order No. 5 makes no further
amendments or modifications to the Agreement.

Signed for and on behalf of              Signed for and on behalf of
ICO GLOBAL COMMUNICATIONS HOLDINGS BV    NEC CORPORATION

/s/  ****                                /s/  Takao Nishizawa
-------------------------------------    --------------------------------------
Supervising Officer                      Contractor's Authorised Representative
                                         Takao Nishizawa, General Manager
                                         Europe Division

19/11/98                                 20/11/98
Date                                     Date
<PAGE>   1459
                                              CONTRACT NUMBER: ICOO 97 - 1016/GW
                                                              CHANGE ORDER NO: 5

                               CHANGE ORDER NO: 5

                                     TO THE

                                SUPPLY AGREEMENT

                                     BETWEEN

                                 NEC CORPORATION

                                       and

                      ICO GLOBAL COMMUNICATIONS HOLDINGS BV
<PAGE>   1460
                                                            IGF Supply Agreement
                                                    Contract No ICOO97 - 1016/GW
                                              Attachment 1 to Change Order No. 5

1.   This Change Order No. 5 covers ICO Change Request No. 10, and Contractor
     Change Requests Nos. 81 and 87. The purpose of ICO Change Request No. 10 is
     to seek to avoid interference, which would otherwise have been experienced
     from Globalstar, as a consequence of the previously specified ICO pilot
     frequencies whilst the purpose of Contractor Change Request No.87 is to
     seek to avoid possible interference arising to the C to C pilot frequency
     when the SAN has been assigned for the same satellite. The purpose of
     Contractor Change Request No. 81, Version 2.0, is to provide a change from
     the CYLINK "CIDEC-HSi" encryption device to the CYLINK "Link Encryptor"

2.   As at the date hereof the parties agree to amend Schedule 9, Pricing
     Schedule Appendix-2 II.1 RFT PRICE LIST and Schedule 9, Pricing Schedule
     Appendix-2 III.1 DCN PRICE LIST. The amendments to the RFT Price List
     identify the cost increments referable to the following elements:-

     *

     The amendments to the DCN PRICE LIST identify the cost increments referable
     to the following elements:-

     *

     These increments are set out in detail in Attachments 3.1 and 3.2 to this
     Change Order. The parties recognise the need to duly reflect these agreed
     changes elsewhere within the Supply Agreement, as set out below:-

     * Confidential Treatment Requested and the Redacted Material has been
       separately filed with the Commission.
<PAGE>   1461
     -    Schedule 9 - Pricing Schedule

          -    2.1.1.1 Table 1          SA PRICE SUMMARY
          -    7. Table 24              SA PRICE CHANGE HISTORY

     -    Schedule 9 - Pricing Schedule Appendix 1

          -    Page 1      GRAND TOTAL SHEET
          -    Page 2-3    RFT
          -    Page 17     DCN

     -    Schedule 9 - Pricing Schedule Appendix 2

          -    I      PRICE SUMMARY
          -    II.1   PRICE SUMMARY (NRE)
          -    II.2   PRICE SUMMARY (HARDWARE)
          -    II.3   PRICE SUMMARY (SERVICES)
          -    II.6   PRICE SUMMARY (SERVICES BREAKDOWN)

     -    Schedule 11 - Payment Schedule and Payment Schedule Classification
          Summary

          -    I      PAYMENT SCHEDULE CLASSIFICATION SUMMARY
          -    III.1  PAYMENT SCHEDULE CLASSIFICATION SUMMARY RFT
          -           PAYMENT SCHEDULE CLASSIFICATION SUMMARY DCN

3.   The parties also recognise the need to duly reflect other agreed changes
     within the Supply Agreement as set out below:-

          -    Schedule 13 IGFR V 27.1 - Attachments 4.1 and 4.2 to this Change
               Order No. 5.

          -    Schedule 14 Statement of Work Annex 1 - Contractor's
               Deliverables, Table 2, Deliverable Equipment Attachment 5.1 (RFT
               Equipment List) and Attachment 5.2 (DCN Equipment List) to this
               Change Order No. 5.

4.       The parties undertake to ensure that the required changes specified
         within paragraphs 2 and 3 above, shall be completed within 3 months of
         the date of this Change Order or by such time as the parties shall
         otherwise agree. The parties agree that implementation of these changes
         shall be effective upon agreement without the need for the parties to
         formalise the incorporation of such agreed changes by way of further
         Change Order.
<PAGE>   1462
5.       The Parties agree that neither the Contractor nor any member of the NEC
         Team shall have any obligation to provide vendor financing to ICO
         pursuant to this Change Order.

6.       The installation and testing of Deliverables identified within
         Attachment 5.1 shall be undertaken by the Contractor, subject to mutual
         agreement as to the price and schedule for such activities which will
         be formalised by amendment to this Change Order. The delivery and
         installation of Deliverables, identified within Attachment 5.2, will be
         undertaken as part of the total DCN delivery and installation schedule
         contained within the applicable MLS.

7.       The Contractor agrees that it will commence and complete shipment of
         Document Deliverables, identified within Attachment 5.1, no later than
         three months following the date of signature of this Change Order.
         Shipment of the remaining Deliverables, identified within Attachment
         5.1, shall be commenced and completed no later than one month following
         the date of signature of this Change Order.
<PAGE>   1463
                         CHANGE ORDER NO: 5 ATTACHMENT 2

         Amended Clause 15.1
<PAGE>   1464
ATTACHMENT 2
AMENDED CLAUSE

The incremental amount agreed between the parties by way of this Change Order
No. 5 in respect of those items referred to within attachments 3.1 and 5.1 is
   *   and in respect of those items referred to within Attachments 3.2 and
5.2 is   *

Therefore, Clause 15.1 is amended to read as follows:

15.1     ICO shall pay an aggregate total price of US$ 706,497,925 for the
         complete performance by the Contractor of all of its obligations under
         this Agreement together with a further sum of US$ 21,537,600 (in
         respect of freight and insurance as referred to in the Pricing
         Schedule), which amounts shall be subject to adjustment only in respect
         of (i) changes agreed under clause 9 and (ii) the cost of any Option
         items upon exercise of the relevant Option or other items or services
         purchased under clause 46; (such aggregate amount, as so adjusted,
         being referred to as the "Price"). Any Instalment payment made shall
         discharge the relevant portion of the Price and shall not be
         reclaimable by ICO but without prejudice to ICO's right to claim
         damages and/or indemnity in accordance with the provisions of this
         Agreement in the event of any breach by the Contractor.

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   1465
                        CHANGE ORDER NO: 5 ATTACHMENT 3.1

          SCHEDULE 9 - PRICING SCHEDULE APPENDIX-2 II.1 RFT PRICE LIST
<PAGE>   1466
              III. 1 RFT INCREMENTAL PRICE LIST (IN THOUSAND US$)

                                        *

23/10/1998            Commercial in Confidence                      Page 1 of 2

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   1467
<TABLE>
<CAPTION>
<S>                         <C>

                                        *
</TABLE>

23/10/1998                  Commercial in Confidence                Page 2 of 2

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   1468
                        CHANGE ORDER NO: 5 ATTACHMENT 3.2

          SCHEDULE 9 - PRICING SCHEDULE APPENDIX-2 III.1 DCN PRICE LIST
<PAGE>   1469
                     III.10 DCN PRICE LIST (IN THOUSAND US$)

                                        *

28/10/1998                  Commercial in Confidence                Page 1 of 1

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

<PAGE>   1470
                        CHANGE ORDER NO: 5 ATTACHMENT 4.1

               SCHEDULE 13 - IGFR VERSION 27.1 (REPLACEMENT PAGES)
                          (ICR NO. 10 AND CCR NO. 87)
<PAGE>   1471
                            IGFR VERSION 27.1 CHANGES

6.57.3. C-band TX/RX Functional Requirements

6.57.3.1. C-band TX Functional Requirements

6.57.3.1.1. Nominal Transmit Frequency of C-band Carriers

           6.57.3.1.1.1. The nominal carrier frequency of the C-band carriers
                         shall be at:

<TABLE>
<S>                                         <C>
                  C-S Communications:       5187.100 MHz + n x 0.025 MHz
                                            (n = 1 to 1991)
                  HPN Messages              5186.40 MHz or 5237.60 MHz
                                            (switchable)
                  C-C pilots:               (Band)5,183.1-5,185.6 LHCP; (Pilot 1 to 7)
                                            5,239.1-5,241.6 RHCP. (Pilot 8 to 14)
                                                      Pilot 1 5184.2 MHz (F7)
                                                      Pilot 2 5184.9 MHz (F1)
                                                      Pilot 3 5185.0 MHz (F2)
                                                      Pilot 4 5185.1 MHz (F3)
                                                      Pilot 5 5185.2 MHz (F4)
                                                      Pilot 6 5185.4 MHz (F5)
                                                      Pilot 7 5185.5 MHz (F6)
                                                      Pilot 8 5240.7 MHz (F7)
                                                      Pilot 9 5241.0 MHz (F1)
                                                      Pilot 10 5241.1 MHz (F2)
                                                      Pilot 11 5241.2 MHz (F3)
                                                      Pilot 12 5241.3 MHz (F4)
                                                      Pilot 13 5241.4 MHz (F5)
                                                      Pilot 14 5241.5 MHz (F6)

                  SRMS Command:             5186.80 MHz or 5237.20 MHz
                                            (switchable)
                  HPN PCS Command:          5186.60 MHz or 5237.40 MHz
                                            (switchable)
                  TT&C:                     5180.0 MHz or 5244.0 MHz (switchable)
</TABLE>

6.57.3.2. C-band RX Functional Requirements

6.57.3.2.1. Nominal Receive Frequency of ICO Carriers

           6.57.3.2.1.1. The nominal carrier frequency of the C-band carriers
                         shall be at:

<TABLE>
<S>                                                  <C>
                  S-C Communications Carriers:       7018.100 MHz + n x 0.025 MHz
                                                     (n = 1 to 1991)
                  SRMS Telemetry:                    7017.40 MHz or 7068.40 MHz
                                                     (switchable)
                  C-C Pilots:                        (Band)  7,013.1-7,015.6 LHCP(Pilot 1 to 7)
                                                     7,069.1-7,071.6 RHCP (Pilot 8 to 14)

                                                      Pilot 1 7014.2 MHz (F7)
                                                      Pilot 2 7014.9 MHz (F1)
                                                      Pilot 3 7015.0 MHz (F2)
                                                      Pilot 4 7015.1 MHz (F3)
                                                      Pilot 5 7015.2 MHz (F4)
                                                      Pilot 6 7015.4 MHz (F5)
                                                      Pilot 7 7015.5 MHz (F6)
</TABLE>
<PAGE>   1472
<TABLE>
<S>                                                  <C>

                                                      Pilot 8 7070.7 MHz (F7)
                                                      Pilot 9 7071.0 MHz (F1)
                                                      Pilot 10 7071.1 MHz (F2)
                                                      Pilot 11 7071.2 MHz (F3)
                                                      Pilot 12 7071.3 MHz (F4)
                                                      Pilot 13 7071.4 MHz (F5)
                                                      Pilot 14 7071.5 MHz (F6)
                  TT&C Telemetry:                     7011.5/7012.5 MHz or
                                                      7072.5/7073.5 MHz
                                                      (switchable)
</TABLE>

<PAGE>   1473
                        CHANGE ORDER NO: 5 ATTACHMENT 4.2

               SCHEDULE 13 - IGFR VERSION 27.1 (REPLACEMENT PAGES)
                                  (CCR NO. 81)
<PAGE>   1474
                            IGFR VERSION 27.1 CHANGES

1.       CLAUSE 7.8.11.1.4

Each SAN/(B)NMC Link Encryptor device shall send SNMP traps to both the DCN NMS
and DCN BNMS for status monitoring only.

2.       CLAUSE 7.8.11.1.5

Not Used.

3.       CLAUSE 7.5.2.14

The DCN Link Encryptor keys shall be automatically generated between two Link
Encryptors at set up of the WAN link.
<PAGE>   1475
                        CHANGE ORDER NO: 5 ATTACHMENT 5.1

                 SCHEDULE 14 - ANNEX 1 CONTRACTOR'S DELIVERABLES
                          TABLE 2 - RFT EQUIPMENT LIST
<PAGE>   1476
RFT EQUIPMENT LIST

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------------
                                                                    SAN          SAN           SAN              SAN        SAN
ITEM NO.                   DESCRIPTION                          FOR ICO-NET    FOR USA     FOR AUSTRALIA      GERMANY   FOR SOUTH
                                                                               (TYPE 2)      (TYPE 1)        (TYPE 1)    (AFRICA)
                                                                                                                         (TYPE 1)
                                                                -----------------------------------------------------------------
                                                                   Q'TY          Q'TY          Q'TY             Q'TY       Q'TY
---------------------------------------------------------------------------------------------------------------------------------
<S>        <C>                                                  <C>            <C>          <C>               <C>        <C>
           HARDWARE

1.         7.6M C-BAND ANTENNA SUBSYSTEM
1.1        7.6m Antenna Structure                                                5               5              5           5
1.2        7.6m Reflector Panel                                                  5               5              5           5
1.3        Dual C. P. Feed (for Monopulse Track)                                 5               5              5           5
1.4        ACU and Tracking Receiver for Monopulse Track
1.4.1      Tracking Down Converter                                               5               5              5           5
1.4.2      Tracking Demodulator                                                  5               5              5           5
1.4.3      Antenna Control Equipment                                             5               5              5           5
1.5        Dual C. P. Feed (for Step Track)
1.6        ACU and Beacon Receiver for Step Track
1.6.1      Beacon Down Converter
1.6.2      Beacon Receiver
1.6.3      Antenna Control Equipment
1.7        Blower and Heater Unit                                                5                              5           5
1.8        A/C in Centre Hub(non-redundant)
1.9        Deicing Equipment                                                     5                              5
1.10       DCPA, DC Motor, Angle Det. and Dehydrator
1.10.1     DCPA                                                                  5               5              5           5
1.10.2     Transformer for DCPA                                                                  5              5           5
1.10.3     DC Motor                                                              20             20             20           20
1.10.4     Angle Detector                                                        10             10             10           10
1.10.5     Dehydrator                                                            5               5              5           5

2.         C-BAND LOW NOISE AMPLIFIER SUBSYSTEM
2.1        C-Band FET LNA Unit                                                   15             15             15           15
2.2        RF Plate Assembly for 2+1 config.                                     5               5              5           5
2.3        LNA Power Supply                                                      5               5              5           5
2.4        Test Panel                                                            5               5              5           5
2.5        40 dB Coupler (LNA Input)                                             5               5              5           5
2.6        Coupler for tracking                                                  10             10             10           10

3.         C-BAND HIGH POWER AMPLIFIER SUBSYSTEM
3.1        3kW TWT HPA Cabinet/Linearizer                                        15             15             15           15
3.2        WG  ASSY
3.2.1      Isolator                                                              10             10             10           10
3.2.2      WG Directional Coupler                                                15             15             15           15

<CAPTION>

------------------------------------------------------------------------------------------------------------------------------
                                                                   SAN          SAN         SAN           SAN          SAN
ITEM NO.                   DESCRIPTION                          FOR INDIA    FOR CHILE   FOR BRAZIL    FOR MEXICO    FOR UAE
                                                                 (TYPE 2)     (TYPE 2)    (TYPE 2)      (TYPE 2)     (TYPE 2)
                                                                --------------------------------------------------------------
                                                                   Q'TY         Q'TY        Q'TY          Q'TY         Q'TY
------------------------------------------------------------------------------------------------------------------------------
<S>        <C>                                                  <C>          <C>         <C>            <C>          <C>
           HARDWARE

1.         7.6M C-BAND ANTENNA SUBSYSTEM
1.1        7.6m Antenna Structure                                    5           5            5             5          5
1.2        7.6m Reflector Panel                                      5           5            5             5          5
1.3        Dual C. P. Feed (for Monopulse Track)                     5           5            5                        5
1.4        ACU and Tracking Receiver for Monopulse Track
1.4.1      Tracking Down Converter                                   5           5            5                        5
1.4.2      Tracking Demodulator                                      5           5            5                        5
1.4.3      Antenna Control Equipment                                 5           5            5                        5
1.5        Dual C. P. Feed (for Step Track)                                                                 5
1.6        ACU and Beacon Receiver for Step Track
1.6.1      Beacon Down Converter                                                                            5
1.6.2      Beacon Receiver                                                                                  5
1.6.3      Antenna Control Equipment                                                                        5
1.7        Blower and Heater Unit                                                5
1.8        A/C in Centre Hub(non-redundant)                          2
1.9        Deicing Equipment
1.10       DCPA, DC Motor, Angle Det. and Dehydrator
1.10.1     DCPA                                                      5           5            5             5          5
1.10.2     Transformer for DCPA                                      5           5                                     5
1.10.3     DC Motor                                                 20           20          20            20         20
1.10.4     Angle Detector                                           10           10          10            10         10
1.10.5     Dehydrator                                                5           5            5             5          5

2.         C-BAND LOW NOISE AMPLIFIER SUBSYSTEM
2.1        C-Band FET LNA Unit                                      15           15          15            15         15
2.2        RF Plate Assembly for 2+1 config.                         5           5            5             5          5
2.3        LNA Power Supply                                          5           5            5             5          5
2.4        Test Panel                                                5           5            5             5          5
2.5        40 dB Coupler (LNA Input)                                 5           5            5             5          5
2.6        Coupler for tracking                                     10           10          10            10         10

3.         C-BAND HIGH POWER AMPLIFIER SUBSYSTEM
3.1        3kW TWT HPA Cabinet/Linearizer                           15           15          15            15         15
3.2        WG  ASSY
3.2.1      Isolator                                                 10           10          10            10         10
3.2.2      WG Directional Coupler                                   15           15          15            15         15

<CAPTION>

---------------------------------------------------------------------------------------------------------------------------------
                                                                   SAN          SAN          SAN         NMC       NMC     TOTAL
ITEM NO.                   DESCRIPTION                             FOR       FOR CHINA    FOR KOREA    PRIMARY   BACK-UP
                                                                INDONESIA     (TYPE 2)     (TYPE 1)
                                                                 (TYPE 2)
                                                                -----------------------------------------------------------------
                                                                    Q'TY        Q'TY         Q'TY       Q'TY       Q'TY     Q'TY
---------------------------------------------------------------------------------------------------------------------------------
<S>        <C>                                                  <C>          <C>          <C>          <C>       <C>       <C>
           HARDWARE

1.         7.6M C-BAND ANTENNA SUBSYSTEM
1.1        7.6m Antenna Structure                                    5            5            5                             60
1.2        7.6m Reflector Panel                                      5            5            5                             60
1.3        Dual C. P. Feed (for Monopulse Track)                     5                                                       45
1.4        ACU and Tracking Receiver for Monopulse Track
1.4.1      Tracking Down Converter                                   5                                                       45
1.4.2      Tracking Demodulator                                      5                                                       45
1.4.3      Antenna Control Equipment                                 5                                                       45
1.5        Dual C. P. Feed (for Step Track)                                       5            5                             15
1.6        ACU and Beacon Receiver for Step Track
1.6.1      Beacon Down Converter                                                  5            5                             15
1.6.2      Beacon Receiver                                                        5            5                             15
1.6.3      Antenna Control Equipment                                              5            5                             15
1.7        Blower and Heater Unit                                                 5            5                             30
1.8        A/C in Centre Hub(non-redundant)                                                                                   2
1.9        Deicing Equipment                                                                                                 10
1.10       DCPA, DC Motor, Angle Det. and Dehydrator
1.10.1     DCPA                                                      5            5            5                             60
1.10.2     Transformer for DCPA                                      5            5            5                             45
1.10.3     DC Motor                                                  20           20          20                             240
1.10.4     Angle Detector                                            10           10          10                             120
1.10.5     Dehydrator                                                5            5            5                             60

2.         C-BAND LOW NOISE AMPLIFIER SUBSYSTEM
2.1        C-Band FET LNA Unit                                       15           15          15                             180
2.2        RF Plate Assembly for 2+1 config.                         5            5            5                             60
2.3        LNA Power Supply                                          5            5            5                             60
2.4        Test Panel                                                5            5            5                             60
2.5        40 dB Coupler (LNA Input)                                 5            5            5                             60
2.6        Coupler for tracking                                      10           10          10                             120

3.         C-BAND HIGH POWER AMPLIFIER SUBSYSTEM
3.1        3kW TWT HPA Cabinet/Linearizer                            15           15          15                             180
3.2        WG  ASSY
3.2.1      Isolator                                                  10           10          10                             120
3.2.2      WG Directional Coupler                                    15           15          15                             180
</TABLE>

30/10/1998                 Commercial-In-Confidence                    Page 1
<PAGE>   1477
RFT EQUIPMENT LIST

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------------
                                                       SAN           SAN            SAN            SAN          SAN         SAN
ITEM NO.                   DESCRIPTION             FOR ICO-NET     FOR USA     FOR AUSTRALIA     GERMANY     FOR SOUTH   FOR INDIA
                                                                   (TYPE 2)       (TYPE 1)       (TYPE 1)     (AFRICA)    (TYPE 2)
                                                                                                              (TYPE 1)
                                                   -------------------------------------------------------------------------------
                                                      Q'TY           Q'TY           Q'TY           Q'TY         Q'TY       Q'TY
----------------------------------------------------------------------------------------------------------------------------------
<S>        <C>                                     <C>             <C>         <C>               <C>         <C>         <C>
3.2.3      WG SWO                                                     10             10             10            10         10
3.2.4      High Power Dummy Load                                      5               5              5            5           5
3.2.5      Low Power Dummy Load                                       15             15             15            15         15
3.3        TX/RX Path Selector                                        5               5              5            5           5
3.4         Band Pass Filter                                          10             10             10            10         10

4.         C-BAND UP/DOWN CONVERTER SUBSYSTEM
4.1        C-band Up Converter                                        15             15             15            15         15
4.2        Pilot Generator                                            15             15             15            15         15
4.3        C-band Down Converter                                      15             15             15            15         15
4.4        AFC equipment                                              15             15             15            15         15
4.5        AFC D/C                                                    15             15             15            15         15

4.6        EIRP C&M
4.6.1      Selective Power Meter 6000I                                5               5              5            5           5
4.6.2      6-way Switch Model 6100I                                   5               5              5            5           5
4.6.3      Transmit Level Control Unit                                15             15             15            15         15
4.6.4      PC                                                         5               5              5            5           5
4.7        LINE AMP (C-BAND RX) (2+1 CONFIG)                          5               5              5            5           5
4.8        Others
4.8.1      7GHz SWO                                                   5               5              5            5           5
4.8.2      1GHz SWO                                                   20             20             20            20         20
4.8.3      Test Panel                                                 5               5              5            5           5
4.8.4      1GHz D.COUP                                                20             20             20            20         20
4.8.5      IF PATCH                                                   30             30             30            30         30
4.8.6      RF PATCH                                                   30             30             30            30         30
4.9        Traffic Carrier Termination
4.9.1      5GHz SWO                                                   5               5              5            5           5
4.10       TT&C Carrier EIRP Monitoring
4.10.1     C-band WG Coupler for SPM (for TTC
            only)                                                     5               5              5            5           5
4.11       S-band BCCH Carrier Monitoring
4.11.1     1 GHz D. Coupler                                           5               5              5            5           5

4.12       IOT Signal Monitoring
4.12.1     5 GHz RF SWO                                                                                                       2
4.12.2     5 GHz WG Coupler                                                                                                   4
4.12.3     7 GHz WG Coupler                                                                                                   2
4.12.4     7 GHz RF SWO for Hub SW                                                                                            4
4.12.5     2 GHz RF SWO for Hub SW                                                                                            2
4.12.6     7 GHz RF SWO                                                                                                       6
4.12.7     S-band Coupler for TX                                                                                              2
4.12.8     S-band RF SWO                                                                                                      4
4.12.9     1 GHz Patch                                                                                                        8
4.13       Signal Generator for S-band                                5               5              5            5           5
4.14       19 inch Rack (Up Converter rack)                           5               5              5            5           5

<CAPTION>

-----------------------------------------------------------------------------------------------------------------------------
                                                        SAN         SAN          SAN         SAN         SAN          SAN
ITEM NO.                   DESCRIPTION               FOR CHILE   FOR BRAZIL   FOR MEXICO   FOR UAE       FOR       FOR CHINA
                                                      (TYPE 2)    (TYPE 2)     (TYPE 2)    (TYPE 2)   INDONESIA     (TYPE 2)
                                                                                                       (TYPE 2)
                                                     ------------------------------------------------------------------------
                                                       Q'TY         Q'TY         Q'TY        Q'TY        Q'TY         Q'TY
-----------------------------------------------------------------------------------------------------------------------------
<S>        <C>                                       <C>         <C>          <C>          <C>        <C>          <C>
3.2.3      WG SWO                                        10          10           10          10          10           10
3.2.4      High Power Dummy Load                         5            5            5           5          5            5
3.2.5      Low Power Dummy Load                          15          15           15          15          15           15
3.3        TX/RX Path Selector                           5            5            5           5          5            5
3.4         Band Pass Filter                             10          10           10          10          10           10

4.         C-BAND UP/DOWN CONVERTER SUBSYSTEM
4.1        C-band Up Converter                           15          15           15          15          15           15
4.2        Pilot Generator                               15          15           15          15          15           15
4.3        C-band Down Converter                         15          15           15          15          15           15
4.4        AFC equipment                                 15          15           15          15          15           15
4.5        AFC D/C                                       15          15           15          15          15           15

4.6        EIRP C&M
4.6.1      Selective Power Meter 6000I                   5            5            5           5          5            5
4.6.2      6-way Switch Model 6100I                      5            5            5           5          5            5
4.6.3      Transmit Level Control Unit                   15          15           15          15          15           15
4.6.4      PC                                            5            5            5           5          5            5
4.7        LINE AMP (C-BAND RX) (2+1 CONFIG)             5            5            5           5          5            5
4.8        Others
4.8.1      7GHz SWO                                      5            5            5           5          5            5
4.8.2      1GHz SWO                                      20          20           20          20          20           20
4.8.3      Test Panel                                    5            5            5           5          5            5
4.8.4      1GHz D.COUP                                   20          20           20          20          20           20
4.8.5      IF PATCH                                      30          30           30          30          30           30
4.8.6      RF PATCH                                      30          30           30          30          30           30
4.9        Traffic Carrier Termination
4.9.1      5GHz SWO                                      5           15           15          15          15           15
4.10       TT&C Carrier EIRP Monitoring
4.10.1     C-band WG Coupler for SPM (for TTC
            only)                                        5
4.11       S-band BCCH Carrier Monitoring
4.11.1     1 GHz D. Coupler                              5            5            5           5          5            5

4.12       IOT Signal Monitoring
4.12.1     5 GHz RF SWO
4.12.2     5 GHz WG Coupler
4.12.3     7 GHz WG Coupler
4.12.4     7 GHz RF SWO for Hub SW
4.12.5     2 GHz RF SWO for Hub SW
4.12.6     7 GHz RF SWO
4.12.7     S-band Coupler for TX
4.12.8     S-band RF SWO
4.12.9     1 GHz Patch
4.13       Signal Generator for S-band                   5            5            5           5          5            5
4.14       19 inch Rack (Up Converter rack)              5            5            5           5          5            5

<CAPTION>

---------------------------------------------------------------------------------------------
                                                        SAN         NMC       NMC      TOTAL
ITEM NO.                   DESCRIPTION               FOR KOREA    PRIMARY   BACK-UP
                                                      (TYPE 1)

                                                     ----------------------------------------
                                                        Q'TY        Q'TY       Q'TY     Q'TY
---------------------------------------------------------------------------------------------
<S>        <C>                                        <C>         <C>       <C>        <C>
3.2.3      WG SWO                                        10                             120
3.2.4      High Power Dummy Load                          5                             60
3.2.5      Low Power Dummy Load                          15                             180
3.3        TX/RX Path Selector                            5                             60
3.4         Band Pass Filter                             10                             120

4.         C-BAND UP/DOWN CONVERTER SUBSYSTEM
4.1        C-band Up Converter                           15                             180
4.2        Pilot Generator                               15                             180
4.3        C-band Down Converter                         15                             180
4.4        AFC equipment                                 15                             180
4.5        AFC D/C                                       15                             180

4.6        EIRP C&M
4.6.1      Selective Power Meter 6000I                    5                             60
4.6.2      6-way Switch Model 6100I                       5                             60
4.6.3      Transmit Level Control Unit                   15                             180
4.6.4      PC                                             5                             60
4.7        LINE AMP (C-BAND RX) (2+1 CONFIG)              5                             60
4.8        Others
4.8.1      7GHz SWO                                       5                             60
4.8.2      1GHz SWO                                      20                             240
4.8.3      Test Panel                                     5                             60
4.8.4      1GHz D.COUP                                   20                             240
4.8.5      IF PATCH                                      30                             360
4.8.6      RF PATCH                                      30                             360
4.9        Traffic Carrier Termination
4.9.1      5GHz SWO                                      15                             120
4.10       TT&C Carrier EIRP Monitoring
4.10.1     C-band WG Coupler for SPM (for TTC
            only)                                                                       30
4.11       S-band BCCH Carrier Monitoring
4.11.1     1 GHz D. Coupler                               5                             60

4.12       IOT Signal Monitoring
4.12.1     5 GHz RF SWO                                                                  2
4.12.2     5 GHz WG Coupler                                                              4
4.12.3     7 GHz WG Coupler                                                              2
4.12.4     7 GHz RF SWO for Hub SW                                                       4
4.12.5     2 GHz RF SWO for Hub SW                                                       2
4.12.6     7 GHz RF SWO                                                                  6
4.12.7     S-band Coupler for TX                                                         2
4.12.8     S-band RF SWO                                                                 4
4.12.9     1 GHz Patch                                                                   8
4.13       Signal Generator for S-band                    5                             60
4.14       19 inch Rack (Up Converter rack)               5                             60
</TABLE>

30/10/1998                  Commercial-In-Confidence                      Page 2
<PAGE>   1478
RFT EQUIPMENT LIST

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
                                                             SAN          SAN            SAN            SAN           SAN
ITEM NO.                   DESCRIPTION                   FOR ICO-NET    FOR USA      FOR AUSTRALIA      FOR         FOR SOUTH
                                                                        (TYPE 2)        (TYPE 1)      GERMANY        AFRICA
                                                                                                      (TYPE 1)      (TYPE 1)
                                                         --------------------------------------------------------------------
                                                            Q'TY          Q'TY            Q'TY          Q'TY          Q'TY
-----------------------------------------------------------------------------------------------------------------------------
<S>        <C>                                           <C>            <C>          <C>              <C>          <C>
4.15       19 inch Rack (Down Converter rack)                              10              10            10             10
4.16       19 inch Rack in Hub Building                                    1                1             1             1
4.17       19 inch Rack (Misc. rack)                                       10              10            10             10
4.18       C-band RF Divider (HYB)                                         10              10            10             10
4.19       1GHz HYB (1:2)                                                  10              10            10             10
4.20       PLO for Pilot generator (CR10)                                  10              10            10             10

5.         TTC UP/DOWN CONVERTER SUBSYSTEM
5.1        TTC Up Converter                                                10              10            10             10
5.2        TTC Down Converter                                              10              10            10             10
5.3        Crystal Oscillator for TT&C Converters                          10              10            10             10
5.4        Others
5.4.1      RF DIV (HYB)                                                    15              15            15             15
5.4.2      70 MHz DIV (HYB)                                                5                5             5             5
5.4.3      C-band RF SWO                                                   5                5             5             5
5.4.4      5GHz SWO                                                        20              20            20             20
5.4.5      IF SWO                                                          5                5             5             5
5.4.6      IF PATCH                                                        10              10            10             10
5.4.7      RF PATCH                                                        15              15            15             15
5.4.8      19 inch Rack (TTC Converter rack)                               5                5             5             5

6.         S-BAND SUBSYSTEM
6.1        Antenna                                                         5                5             5             5
6.2        FET LNA                                                         5                5             5             5
6.3        20W SSPA                                                        5                5             5             5
6.4        Up Converter                                                    5                5             5             5
6.5        Down Converter                                                  5                5             5             5
6.6        Others
6.6.1      2G PATCH                                                        10              10            10             10
6.6.2      30 dB Coupler (LNA Input)                                       5                5             5             5
6.6.3      IF PATCH                                                        10              10            10             10

7.         RFT O&M SUBSYSTEM
7.1        VDU
7.1.1      Server
7.1.1.1    Model D370/1 SMP Server                                         2                2             2             2
7.1.1.2    128MB ECC Memory Module, D Class Servers                        2                2             2             2
7.1.1.3    2 GB FWD SCSI-2 Hot Swap disk Drive                             2                2             2             2
7.1.1.4    4GB DDS DAT Drive with data compression                         2                2             2             2
7.1.1.5    2.88 MB floppy drive                                            2                2             2             2
7.1.1.6    Quad Speed 600MB CD-ROM Drive                                   2                2             2             2
7.1.2      HMI

<CAPTION>

--------------------------------------------------------------------------------------------------------------------------------
                                                                SAN         SAN         SAN          SAN        SAN
ITEM NO.                   DESCRIPTION                       FOR INDIA   FOR CHILE   FOR BRAZIL  FOR MEXICO   FOR UAE
                                                              (TYPE 2)    (TYPE 2)    (TYPE 2)    (TYPE 2)    (TYPE 2)
                                                             ----------------------------------------------------------
                                                               Q'TY        Q'TY        Q'TY        Q'TY        Q'TY
-----------------------------------------------------------------------------------------------------------------------
<S>        <C>                                               <C>         <C>         <C>         <C>          <C>
4.15       19 inch Rack (Down Converter rack)                    10         10          10           10         10
4.16       19 inch Rack in Hub Building                           1         1            1            1          1
4.17       19 inch Rack (Misc. rack)                             10         10          10           10         10
4.18       C-band RF Divider (HYB)                               10         10          10           10         10
4.19       1GHz HYB (1:2)                                        10         10          10           10         10
4.20       PLO for Pilot generator (CR10)                        10         10

5.         TTC UP/DOWN CONVERTER SUBSYSTEM
5.1        TTC Up Converter                                      10         10
5.2        TTC Down Converter                                    10         10
5.3        Crystal Oscillator for TT&C Converters                10         10
5.4        Others
5.4.1      RF DIV (HYB)                                          15         15
5.4.2      70 MHz DIV (HYB)                                       5         5
5.4.3      C-band RF SWO                                          5         5
5.4.4      5GHz SWO                                              20         20
5.4.5      IF SWO                                                 5         5
5.4.6      IF PATCH                                              10         10
5.4.7      RF PATCH                                              15         15
5.4.8      19 inch Rack (TTC Converter rack)                      5         5

6.         S-BAND SUBSYSTEM
6.1        Antenna                                                5         5            5            5          5
6.2        FET LNA                                                5         5            5            5          5
6.3        20W SSPA                                               5         5            5            5          5
6.4        Up Converter                                           5         5            5            5          5
6.5        Down Converter                                         5         5            5            5          5
6.6        Others
6.6.1      2G PATCH                                              10         10          10           10         10
6.6.2      30 dB Coupler (LNA Input)                              5         5            5            5          5
6.6.3      IF PATCH                                              10         10          10           10         10

7.         RFT O&M SUBSYSTEM
7.1        VDU
7.1.1      Server
7.1.1.1    Model D370/1 SMP Server                                2         2            2            2          2
7.1.1.2    128MB ECC Memory Module, D Class Servers               2         2            2            2          2
7.1.1.3    2 GB FWD SCSI-2 Hot Swap disk Drive                    2         2            2            2          2
7.1.1.4    4GB DDS DAT Drive with data compression                2         2            2            2          2
7.1.1.5    2.88 MB floppy drive                                   2         2            2            2          2
7.1.1.6    Quad Speed 600MB CD-ROM Drive                          2         2            2            2          2
7.1.2      HMI

<CAPTION>

-------------------------------------------------------------------------------------------------------------------------
                                                            SAN         SAN          SAN         NMC       NMC     TOTAL
ITEM NO.                   DESCRIPTION                      FOR      FOR CHINA    FOR KOREA    PRIMARY   BACK-UP
                                                         INDONESIA    (TYPE 2)     (TYPE 1)
                                                          (TYPE 2)
                                                         ----------------------------------------------------------------
                                                           Q'TY        Q'TY         Q'TY        Q'TY       Q'TY     Q'TY
-------------------------------------------------------------------------------------------------------------------------
<S>        <C>                                           <C>         <C>          <C>          <C>       <C>       <C>
4.15       19 inch Rack (Down Converter rack)               10          10           10                             120
4.16       19 inch Rack in Hub Building                     1           1             1                             12
4.17       19 inch Rack (Misc. rack)                        10          10           10                             120
4.18       C-band RF Divider (HYB)                          10          10           10                             120
4.19       1GHz HYB (1:2)                                   10          10           10                             120
4.20       PLO for Pilot generator (CR10)                   6                         4                             70

5.         TTC UP/DOWN CONVERTER SUBSYSTEM
5.1        TTC Up Converter                                                                                         60
5.2        TTC Down Converter                                                                                       60
5.3        Crystal Oscillator for TT&C Converters                                                                   60
5.4        Others
5.4.1      RF DIV (HYB)                                                                                             90
5.4.2      70 MHz DIV (HYB)                                                                                         30
5.4.3      C-band RF SWO                                                                                            30
5.4.4      5GHz SWO                                                                                                 120
5.4.5      IF SWO                                                                                                   30
5.4.6      IF PATCH                                                                                                 60
5.4.7      RF PATCH                                                                                                 90
5.4.8      19 inch Rack (TTC Converter rack)                                                                        30

6.         S-BAND SUBSYSTEM
6.1        Antenna                                          5           5             5                             60
6.2        FET LNA                                          5           5             5                             60
6.3        20W SSPA                                         5           5             5                             60
6.4        Up Converter                                     5           5             5                             60
6.5        Down Converter                                   5           5             5                             60
6.6        Others
6.6.1      2G PATCH                                         10          10           10                             120
6.6.2      30 dB Coupler (LNA Input)                        5           5             5                             60
6.6.3      IF PATCH                                         10          10           10                             120

7.         RFT O&M SUBSYSTEM
7.1        VDU
7.1.1      Server
7.1.1.1    Model D370/1 SMP Server                          2           2             2                             24
7.1.1.2    128MB ECC Memory Module, D Class Servers         2           2             2                             24
7.1.1.3    2 GB FWD SCSI-2 Hot Swap disk Drive              2           2             2                             24
7.1.1.4    4GB DDS DAT Drive with data compression          2           2             2                             24
7.1.1.5    2.88 MB floppy drive                             2           2             2                             24
7.1.1.6    Quad Speed 600MB CD-ROM Drive                    2           2             2                             24
7.1.2      HMI
</TABLE>

30/10/1998                  Commercial-In-Confidence                      Page 3
<PAGE>   1479
RFT EQUIPMENT LIST

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

                                                          SAN         SAN          SAN            SAN         SAN         SAN
 ITEM NO.                  DESCRIPTION                FOR ICO-NET   FOR USA    FOR AUSTRALIA      FOR      FOR SOUTH   FOR INDIA
                                                                    (TYPE 2)      (TYPE 1)      GERMANY      AFRICA     (TYPE 2)
                                                                                                (TYPE 1)    (TYPE 1)
                                                      ---------------------------------------------------------------------------
                                                         Q'TY         Q'TY          Q'TY          Q'TY        Q'TY       Q'TY
---------------------------------------------------------------------------------------------------------------------------------
<S>        <C>                                        <C>           <C>        <C>              <C>        <C>         <C>
7.1.2.1    HP VISUALIZE Mdl B132L w/ EG graphics                       2            2              2           2           2
7.1.2.2    128MB ECC memory module                                     2            2              2           2           2
7.1.2.3    FWD SCSI-2 card for B-class systems                         2            2              2           2           2
7.1.2.4    2GB disk drive, FWD SCSI-2 for B-class                      2            2              2           2           2
7.1.2.5    Fast CD-ROM drive for B-class systems                       2            2              2           2           2
7.1.2.6    1.4 MB floppy disk drive for B-class                        2            2              2           2           2
7.2        DAU                                                         6            6              6           6           6
7.3        UIC                                                         6            6              6           6           6
7.4        CUIN                                                        5            5              5           5           5
7.5        UIC (No charge)                                             2            2

8.         OPTICAL FIBER IFL
8.1        Optical Fiber TX/RX Unit                                    1            1
           (1GHz and 70MHz  for signal IFL)
8.2        Optical LAN TX/RX Unit                                      1            1
8.3        Optical Fiber Modem                                         1            1
8.4        L-band AMP                                                  1            1
8.4.1      AMP for Optical Fiber IFL (2+1) for
            C-band Route                                              10          10
8.4.2      AMP for Optical fiber IFL (1+1) for
            S-band Route                                               2            2
8.5        IF Combiner/Divider Package                                 1            1
8.5.1      Rack                                                        2            2
8.5.2      1:6 IF COMB/DIV                                             6            6

9.         REFERENCE CLOCK DISTRIBUTION
9.1        10 MHz Reference Clock Distribution                         5            5              5           5           5
9.2        Time Code Generator                                         5            5              5           5           5

10.        TEST TRANSLATOR                                             5            5              5           5           5

11.        RFT SIMULATOR SUBSYSTEM
11.1        VDU                                            1
11.2        Simulator Function                             1

12.        TEST EQUIPMENT

12.1       RF Signal Generator                             6
12.2       IF Coaxial Hybrid                                           1            1              1           1           1
12.3       Wave Guide Circuit                              6
12.4       Low Loss Cables                                             1            1              1           1           1
12.5       Other miscellaneous equipment                               1            1              1           1           1

<CAPTION>

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

                                                         SAN          SAN            SAN        SAN         SAN          SAN
 ITEM NO.                  DESCRIPTION                FOR CHILE    FOR BRAZIL    FOR MEXICO   FOR UAE       FOR       FOR CHINA
                                                       (TYPE 2)     (TYPE 2)      (TYPE 2)    (TYPE 2)   INDONESIA     (TYPE 2)
                                                                                                          (TYPE 2)
                                                      -------------------------------------------------------------------------
                                                        Q'TY         Q'TY          Q'TY        Q'TY        Q'TY         Q'TY
-------------------------------------------------------------------------------------------------------------------------------
<S>        <C>                                        <C>          <C>           <C>          <C>        <C>          <C>
7.1.2.1    HP VISUALIZE Mdl B132L w/ EG graphics          2            2              2          2          2            2
7.1.2.2    128MB ECC memory module                        2            2              2          2          2            2
7.1.2.3    FWD SCSI-2 card for B-class systems            2            2              2          2          2            2
7.1.2.4    2GB disk drive, FWD SCSI-2 for B-class         2            2              2          2          2            2
7.1.2.5    Fast CD-ROM drive for B-class systems          2            2              2          2          2            2
7.1.2.6    1.4 MB floppy disk drive for B-class           2            2              2          2          2            2
7.2        DAU                                            6            6              6          6          6            6
7.3        UIC                                            6            6              6          6          6            6
7.4        CUIN                                           5            5              5          5          5            5
7.5        UIC (No charge)                                2

8.         OPTICAL FIBER IFL
8.1        Optical Fiber TX/RX Unit                       1
           (1GHz and 70MHz  for signal IFL)
8.2        Optical LAN TX/RX Unit                         1
8.3        Optical Fiber Modem                            1
8.4        L-band AMP                                     1
8.4.1      AMP for Optical Fiber IFL (2+1) for
            C-band Route                                 10
8.4.2      AMP for Optical fiber IFL (1+1) for
            S-band Route                                  2
8.5        IF Combiner/Divider Package                    1
8.5.1      Rack                                           2
8.5.2      1:6 IF COMB/DIV                                6

9.         REFERENCE CLOCK DISTRIBUTION
9.1        10 MHz Reference Clock Distribution            5            5              5          5          5            5
9.2        Time Code Generator                            5            5              5          5          5            5

10.        TEST TRANSLATOR                                5            5              5          5          5            5

11.        RFT SIMULATOR SUBSYSTEM
11.1        VDU
11.2        Simulator Function

12.        TEST EQUIPMENT

12.1       RF Signal Generator
12.2       IF Coaxial Hybrid                              1            1              1          1          1            1
12.3       Wave Guide Circuit
12.4       Low Loss Cables                                1            1              1          1          1            1
12.5       Other miscellaneous equipment                  1            1              1          1          1            1

<CAPTION>

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

                                                          SAN         NMC       NMC     TOTAL
 ITEM NO.                  DESCRIPTION                 FOR KOREA    PRIMARY   BACK-UP
                                                        (TYPE 1)

                                                      ----------------------------------------
                                                         Q'TY        Q'TY       Q'TY     Q'TY
----------------------------------------------------------------------------------------------
<S>        <C>                                         <C>          <C>       <C>       <C>
7.1.2.1    HP VISUALIZE Mdl B132L w/ EG graphics          2                               24
7.1.2.2    128MB ECC memory module                        2                               24
7.1.2.3    FWD SCSI-2 card for B-class systems            2                               24
7.1.2.4    2GB disk drive, FWD SCSI-2 for B-class         2                               24
7.1.2.5    Fast CD-ROM drive for B-class systems          2                               24
7.1.2.6    1.4 MB floppy disk drive for B-class           2                               24
7.2        DAU                                            6                               72
7.3        UIC                                            6                               72
7.4        CUIN                                           5                               60
7.5        UIC (No charge)                                                                 6

8.         OPTICAL FIBER IFL
8.1        Optical Fiber TX/RX Unit                                                        3
           (1GHz and 70MHz  for signal IFL)
8.2        Optical LAN TX/RX Unit                                                          3
8.3        Optical Fiber Modem                                                             3
8.4        L-band AMP                                                                      3
8.4.1      AMP for Optical Fiber IFL (2+1) for
            C-band Route                                                                 30
8.4.2      AMP for Optical fiber IFL (1+1) for
            S-band Route                                                                   6
8.5        IF Combiner/Divider Package                                                     3
8.5.1      Rack                                                                            6
8.5.2      1:6 IF COMB/DIV                                                                18

9.         REFERENCE CLOCK DISTRIBUTION
9.1        10 MHz Reference Clock Distribution            5                               60
9.2        Time Code Generator                            5                               60

10.        TEST TRANSLATOR                                5                               60

11.        RFT SIMULATOR SUBSYSTEM
11.1        VDU                                                                            1
11.2        Simulator Function                                                             1

12.        TEST EQUIPMENT

12.1       RF Signal Generator                                                             6
12.2       IF Coaxial Hybrid                              1                               12
12.3       Wave Guide Circuit                                                              6
12.4       Low Loss Cables                                1                               12
12.5       Other miscellaneous equipment                  1                               12
</TABLE>

30/10/1998                  Commercial-In-Confidence                      Page 4
<PAGE>   1480
RFT EQUIPMENT LIST

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------
                                                             SAN          SAN           SAN          SAN FOR        SAN
ITEM NO.                   DESCRIPTION                   FOR ICO-NET    FOR USA     FOR AUSTRALIA    GERMANY     FOR SOUTH
                                                                        (TYPE 2)       (TYPE 1)      (TYPE 1)     (AFRICA)
                                                                                                                  (TYPE 1)
                                                         ------------------------------------------------------------------
                                                            Q'TY          Q'TY           Q'TY          Q'TY         Q'TY

---------------------------------------------------------------------------------------------------------------------------
<S>        <C>                                           <C>            <C>         <C>              <C>         <C>
12.6       Directional Bridge                                              1              1              1            1
12.7       Power Sensor for Power Meter                                    1              1              1            1
12.8       Analogue Oscilloscope                                           1              1              1            1
12.9       Chart Recorder (4-pen)                                          1              1              1            1
12.10      Crystal Detector                                                1              1              1            1
12.11      Coaxial Coupler (960 - 1,900 MHz)                               1              1              1            1
12.12      Coaxial Coupler (1.7 - 12.4 GHz)                                1              1              1            1
12.13      HP-IB/ Centronics Bus Converter                                 1              1              1            1
12.14      HP-IB Cable                                                     1              1              1            1
12.15      HP IEEE-1284 A-B Parallel Cable                                 1              1              1            1

13.        INSTALLATION MATERIALS                                          1              1              1            1

14.        SHELTERS AND RELATED FACILITIES
14.1       Shelter                                                         5              5              5            5
14.2       Cooling Cabinet Shelter(for Mexico)
14.3       Expansion of A/C in Shelter(for Mexico)
14.4       Additional Ventilation(for USA, Germany
            & Korea)                                                       5                             5
14.5       Dust Proof facilities

15.        DOCUMENTATION
15.1       Documentation                                    1
15.2       Revision pages of Document for Pilot
            frequency Change                                1

16.        CE-MARKS
16.1       Hardware Modification                                                          1              1
16.2       License Registration Fee                                                       1              1

17         SPARE
17.1       Antenna Tracking Modules                                        1              1              1            1
17.2       Antenna Feed Horn Cover                                         1              1              1            1
17.3       C-Band FET LNA Unit                               2
17.4       LNA Power Supply                                  2
17.5       TWT Tube                                          4
17.6       HPA Spare Parts & Panels                          2
17.7       PS Module for TX/RX Path Selector                 2
17.8       PS Module for SWO                                 2
17.9       C-band Up Converter                               5

<CAPTION>

----------------------------------------------------------------------------------------------------------------------------------
                                                            SAN          SAN          SAN           SAN        SAN         SAN
ITEM NO.                   DESCRIPTION                   FOR INDIA    FOR CHILE    FOR BRAZIL   FOR MEXICO   FOR UAE       FOR
                                                          (TYPE 2)     (TYPE 2)     (TYPE 2)     (TYPE 2)    (TYPE 2)   INDONESIA
                                                                                                                         (TYPE 2)
                                                         -------------------------------------------------------------------------
                                                           Q'TY         Q'TY         Q'TY         Q'TY        Q'TY        Q'TY

----------------------------------------------------------------------------------------------------------------------------------
<S>        <C>                                           <C>          <C>          <C>          <C>          <C>        <C>
12.6       Directional Bridge                                1            1            1            1           1           1
12.7       Power Sensor for Power Meter                      1            1            1            1           1           1
12.8       Analogue Oscilloscope                             1            1            1            1           1           1
12.9       Chart Recorder (4-pen)                            1            1            1            1           1           1
12.10      Crystal Detector                                  1            1            1            1           1           1
12.11      Coaxial Coupler (960 - 1,900 MHz)                 1            1            1            1           1           1
12.12      Coaxial Coupler (1.7 - 12.4 GHz)                  1            1            1            1           1           1
12.13      HP-IB/ Centronics Bus Converter                   1            1            1            1           1           1
12.14      HP-IB Cable                                       1            1            1            1           1           1
12.15      HP IEEE-1284 A-B Parallel Cable                   1            1            1            1           1           1

13.        INSTALLATION MATERIALS                            1            1            1            1           1           1

14.        SHELTERS AND RELATED FACILITIES
14.1       Shelter                                           5            5            5            5           5           5
14.2       Cooling Cabinet Shelter(for Mexico)                                                      5
14.3       Expansion of A/C in Shelter(for Mexico)                                                  5
14.4       Additional Ventilation(for USA, Germany
            & Korea)
14.5       Dust Proof facilities                                                                                5

15.        DOCUMENTATION
15.1       Documentation
15.2       Revision pages of Document for Pilot
            frequency Change

16.        CE-MARKS
16.1       Hardware Modification
16.2       License Registration Fee

17         SPARE
17.1       Antenna Tracking Modules                          1            1            1            1           1           1
17.2       Antenna Feed Horn Cover                           1            1            1            1           1           1
17.3       C-Band FET LNA Unit
17.4       LNA Power Supply
17.5       TWT Tube
17.6       HPA Spare Parts & Panels
17.7       PS Module for TX/RX Path Selector
17.8       PS Module for SWO
17.9       C-band Up Converter

<CAPTION>

--------------------------------------------------------------------------------------------------------------
                                                            SAN          SAN         NMC       NMC      TOTAL
ITEM NO.                   DESCRIPTION                   FOR CHINA    FOR KOREA    PRIMARY   BACK-UP
                                                          (TYPE 2)     (TYPE 1)

                                                        ------------------------------------------------------
                                                           Q'TY         Q'TY        Q'TY       Q'TY      Q'TY

--------------------------------------------------------------------------------------------------------------
<S>        <C>                                           <C>          <C>          <C>       <C>        <C>
12.6       Directional Bridge                                1            1                               12
12.7       Power Sensor for Power Meter                      1            1                               12
12.8       Analogue Oscilloscope                             1            1                               12
12.9       Chart Recorder (4-pen)                            1            1                               12
12.10      Crystal Detector                                  1            1                               12
12.11      Coaxial Coupler (960 - 1,900 MHz)                 1            1                               12
12.12      Coaxial Coupler (1.7 - 12.4 GHz)                  1            1                               12
12.13      HP-IB/ Centronics Bus Converter                   1            1                               12
12.14      HP-IB Cable                                       1            1                               12
12.15      HP IEEE-1284 A-B Parallel Cable                   1            1                               12

13.        INSTALLATION MATERIALS                            1            1                               12

14.        SHELTERS AND RELATED FACILITIES
14.1       Shelter                                           5            5                               60
14.2       Cooling Cabinet Shelter(for Mexico)                                                             5
14.3       Expansion of A/C in Shelter(for Mexico)                                                         5
14.4       Additional Ventilation(for USA, Germany
            & Korea)                                                      5                               15
14.5       Dust Proof facilities                                                                           5

15.        DOCUMENTATION
15.1       Documentation                                                                                   1
15.2       Revision pages of Document for Pilot
            frequency Change                                                                               1

16.        CE-MARKS
16.1       Hardware Modification                                                                           2
16.2       License Registration Fee                                                                        2

17         SPARE
17.1       Antenna Tracking Modules                          1            1                               12
17.2       Antenna Feed Horn Cover                           1            1                               12
17.3       C-Band FET LNA Unit                                                                             2
17.4       LNA Power Supply                                                                                2
17.5       TWT Tube                                                                                        4
17.6       HPA Spare Parts & Panels                                                                        2
17.7       PS Module for TX/RX Path Selector                                                               2
17.8       PS Module for SWO                                                                               2
17.9       C-band Up Converter
</TABLE>

30/10/1998                 Commercial-In-Confidence                      Page 5

<PAGE>   1481
RFT EQUIPMENT LIST

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

                                                               SAN          SAN          SAN          SAN FOR       SAN
ITEM NO.                   DESCRIPTION                     FOR ICO-NET    FOR USA    FOR AUSTRALIA    GERMANY    FOR SOUTH
                                                                          (TYPE 2)      (TYPE 1)      (TYPE 1)    (AFRICA)
                                                                                                                  (TYPE 1)
                                                           ----------------------------------------------------------------
                                                              Q'TY          Q'TY          Q'TY          Q'TY        Q'TY
---------------------------------------------------------------------------------------------------------------------------
<S>        <C>                                             <C>            <C>        <C>              <C>        <C>
17.10      Pilot Generator                                      4
17.11      C-band Down Converter                                5
17.12      AFC equipment                                        2
17.13      7G/70MHz D/C                                         2
17.14      1G/70MHz U/C                                         5
17.15      1G/70MHz D/C                                         5
17.16       PC (CPU only)                                                    1            1              1           1
17.17       PS Module for LINE AMP                              2
17.18      Time Code Generator                                               1            1              1           1
17.19      TTC Up Converter with Crystal OSC.                   2
17.20      TTC Down Converter with Crystal OSC.                 2
17.21      S-band FET LNA                                       2
17.22      S-band 20W SSPA                                      2
17.23      S-band Up Converter                                  2
17.24      S-band Down Converter                                2
17.25      VDU                                                               1            1              1           1
17.26      DAU                                                               1            1              1           1
17.27      UIC                                                               1            1              1           1
17.28      AFC (CUIN) -PC                                                    1            1              1           1
17.29      10 MHz Reference Clock Distribution                               1            1              1           1
17.30      EIRP C&M                                                          1            1              1           1
17.31      Optical Fiber TX / RX Unit                           2
17.32      Module for Deicing Facility                          2

18         AXIAL RATIO IMPROVEMENT FOR
           IOT/ 2 RFT
19         REMOTE MAINTENANCE SYSTEM FROM JAPAN
           /SAN                                                 1
           (COMMUNICATION FEE CHARGED, SEPARATELY)
20         BAND PASS FILTER AT LNA INPUT                                     1            1              1           1
21         AIR CONDITIONER EXPANSION IN IOT CENTER HUB

           SOFTWARE LICENCE

1          ORACLE RDBMS FOR RFT O&M/SIMULATOR                   1            1            1              1           1

           OPTION

1.         SHELTER OPTION (180 DAYS OPTION)

<CAPTION>

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

                                                             SAN          SAN         SAN           SAN         SAN         SAN
ITEM NO.                   DESCRIPTION                    FOR INDIA    FOR CHILE   FOR BRAZIL   FOR MEXICO    FOR UAE       FOR
                                                           (TYPE 2)     (TYPE 2)    (TYPE 2)     (TYPE 2)     (TYPE 2)   INDONESIA
                                                                                                                          (TYPE 2)
                                                          ------------------------------------------------------------------------
                                                            Q'TY         Q'TY        Q'TY         Q'TY         Q'TY        Q'TY
----------------------------------------------------------------------------------------------------------------------------------
<S>        <C>                                            <C>          <C>         <C>          <C>           <C>        <C>
17.10      Pilot Generator
17.11      C-band Down Converter
17.12      AFC equipment
17.13      7G/70MHz D/C
17.14      1G/70MHz U/C
17.15      1G/70MHz D/C
17.16       PC (CPU only)                                     1            1           1             1           1           1
17.17       PS Module for LINE AMP
17.18      Time Code Generator                                1            1           1             1           1           1
17.19      TTC Up Converter with Crystal OSC.
17.20      TTC Down Converter with Crystal OSC.
17.21      S-band FET LNA
17.22      S-band 20W SSPA
17.23      S-band Up Converter
17.24      S-band Down Converter
17.25      VDU                                                1            1           1             1           1           1
17.26      DAU                                                1            1           1             1           1           1
17.27      UIC                                                1            1           1             1           1           1
17.28      AFC (CUIN) -PC                                     1            1           1             1           1           1
17.29      10 MHz Reference Clock Distribution                1            1           1             1           1           1
17.30      EIRP C&M                                           1            1           1             1           1           1
17.31      Optical Fiber TX / RX Unit
17.32      Module for Deicing Facility

18         AXIAL RATIO IMPROVEMENT FOR
           IOT/ 2 RFT                                         1
19         REMOTE MAINTENANCE SYSTEM FROM JAPAN
           /SAN
           (COMMUNICATION FEE CHARGED, SEPARATELY)
20         BAND PASS FILTER AT LNA INPUT                      1            1           1             1           1           1
21         AIR CONDITIONER EXPANSION IN IOT CENTER HUB        1

           SOFTWARE LICENCE

1          ORACLE RDBMS FOR RFT O&M/SIMULATOR                 1            1           1             1           1           1

           OPTION

1.         SHELTER OPTION (180 DAYS OPTION)

<CAPTION>

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

                                                               SAN          SAN         NMC       NMC       TOTAL
ITEM NO.                   DESCRIPTION                      FOR CHINA    FOR KOREA    PRIMARY   BACK-UP
                                                             (TYPE 2)     (TYPE 1)

                                                           -------------------------------------------------------
                                                              Q'TY         Q'TY        Q'TY       Q'TY       Q'TY
------------------------------------------------------------------------------------------------------------------
<S>        <C>                                              <C>          <C>          <C>       <C>         <C>
17.10      Pilot Generator                                                                                    4
17.11      C-band Down Converter                                                                              5
17.12      AFC equipment                                                                                      2
17.13      7G/70MHz D/C                                                                                       2
17.14      1G/70MHz U/C                                                                                       5
17.15      1G/70MHz D/C                                                                                       5
17.16       PC (CPU only)                                       1            1                               12
17.17       PS Module for LINE AMP                                                                            2
17.18      Time Code Generator                                  1            1                               12
17.19      TTC Up Converter with Crystal OSC.                                                                 2
17.20      TTC Down Converter with Crystal OSC.                                                               2
17.21      S-band FET LNA                                                                                     2
17.22      S-band 20W SSPA                                                                                    2
17.23      S-band Up Converter                                                                                2
17.24      S-band Down Converter                                                                              2
17.25      VDU                                                  1            1                               12
17.26      DAU                                                  1            1                               12
17.27      UIC                                                  1            1                               12
17.28      AFC (CUIN) -PC                                       1            1                               12
17.29      10 MHz Reference Clock Distribution                  1            1                               12
17.30      EIRP C&M                                             1            1                               12
17.31      Optical Fiber TX / RX Unit                                                                         2
17.32      Module for Deicing Facility                                                                        2

18         AXIAL RATIO IMPROVEMENT FOR
           IOT/ 2 RFT                                                                                         1
19         REMOTE MAINTENANCE SYSTEM FROM JAPAN
           /SAN                                                                                               1
           (COMMUNICATION FEE CHARGED, SEPARATELY)
20         BAND PASS FILTER AT LNA INPUT                        1            1                               12
21         AIR CONDITIONER EXPANSION IN IOT CENTER HUB                                                        1

           SOFTWARE LICENCE

1          ORACLE RDBMS FOR RFT O&M/SIMULATOR                   1            1                               13

           OPTION

1.         SHELTER OPTION (180 DAYS OPTION)
</TABLE>

28/10/1998                 Commercial-In-Confidence                      Page 6

<PAGE>   1482
RFT EQUIPMENT LIST

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

                                                           SAN          SAN          SAN          SAN FOR       SAN         SAN
ITEM NO.                  DESCRIPTION                  FOR ICO-NET    FOR USA    FOR AUSTRALIA    GERMANY    FOR SOUTH   FOR INDIA
                                                                      (TYPE 2)      (TYPE 1)      (TYPE 1)    (AFRICA)    (TYPE 2)
                                                                                                              (TYPE 1)
                                                       ---------------------------------------------------------------------------
                                                          Q'TY          Q'TY          Q'TY          Q'TY        Q'TY       Q'TY
----------------------------------------------------------------------------------------------------------------------------------
<S>       <C>                                          <C>            <C>        <C>              <C>        <C>         <C>
1.1       Salt Defense for Shelter (per Shelter)            1

<CAPTION>

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

                                                          SAN          SAN           SAN         SAN         SAN          SAN
ITEM NO.                  DESCRIPTION                  FOR CHILE    FOR BRAZIL   FOR MEXICO    FOR UAE       FOR       FOR CHINA
                                                        (TYPE 2)     (TYPE 2)     (TYPE 2)     (TYPE 2)   INDONESIA     (TYPE 2)
                                                                                                           (TYPE 2)
                                                       --------------------------------------------------------------------------
                                                         Q'TY         Q'TY         Q'TY         Q'TY        Q'TY         Q'TY
---------------------------------------------------------------------------------------------------------------------------------
<S>       <C>                                          <C>          <C>          <C>           <C>        <C>          <C>
1.1       Salt Defense for Shelter (per Shelter)

<CAPTION>

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

                                                          SAN         NMC       NMC       TOTAL
ITEM NO.                  DESCRIPTION                  FOR KOREA    PRIMARY   BACK-UP
                                                        (TYPE 1)

                                                       -----------------------------------------
                                                         Q'TY        Q'TY       Q'TY       Q'TY
------------------------------------------------------------------------------------------------
<S>       <C>                                          <C>          <C>       <C>         <C>
1.1       Salt Defense for Shelter (per Shelter)                                            1
</TABLE>

28/10/1998                  Commercial-In-Confidence                      Page 7

<PAGE>   1483
                        CHANGE ORDER NO: 5   ATTACHMENT 5.2

                 SCHEDULE 14 - ANNEX 1 CONTRACTOR'S DELIVERABLES
                          TABLE 2 - DCN EQUIPMENT LIST

<PAGE>   1484

                DCN EQUIPMENT LIST

<TABLE>
<CAPTION>
                                            SAN         SAN        SAN         SAN         SAN        SAN         SAN         SAN
Item               Description            For ICO-    For USA      For         For      For South  For India   For Chile  For Brazil
No.                                         NET      (Type 2)   Australia    Germany     Africa     (Type 2)   (Type 2)    (Type 2)
                                                                 (Type 1)   (Type 1)    (Type 1)
                                            Q'ty       Q'ty        Q'ty       Q'ty        Q'ty        Q'ty       Q'ty        Q'ty
<S>      <C>                              <C>        <C>        <C>         <C>         <C>        <C>         <C>        <C>
         HARDWARE

1.       Cisco Router
1.1      7507/4 7-Slot, 2 CyBus, 1                      2           2           2          2           2           2           2
         RSP4, Single Power Supply
1.2      SF75C-11.2.X IOS RSPx                          2           2           2          2           2           2           2
         Series IP Only
1.3      VIP2-40 Versatile Interface                    6           6           6          6           6           6           6
         Processor-2 Model 40
1.4      PA-FE-TX Fast Ethernet                         6           6           6          6           6           6           6
         Port Adapter (100Base-TX,
         1-port)
1.5      PA-4E Ethernet 10Base-T                        2           2           2          2           2           2           2
         Port Adapter (4-port)
1.6      PA-4T+ Enhanced                                4           4           4          4           4           4           4
         Syncronous Serial Port
         Adapter (4-port)
1.7      CAB-X21MT X.21 Cable,                          3           2           4          2           5           2           2
          DTE, Male, 10 Feet

2.       Cisco Eternet Switch
2.1      WS-C2926T Catalyst
         10/100 Switch, Fixed 24-
         10/100 RJ-45, 2-100BASE
         TX
2.2      WS-C2916M-XL 16-Port                           4           4           4          4           4           4           4
         10/100 FE Switch with 2
         Uplink Slots
2.3      WS-X2914-XL 4-Port                             8           8           8          8           8           8           8
         10/100 FE Switch Module
         for Catalyst 2916M-XL

3.       CYLINK Link Encryptor                           3          2           4           2          5           2           2

4.       DCN NMS
4.1      A4190A HP9000
         B132L(VISUALIZE-EG)
</TABLE>

<TABLE>
<CAPTION>
                                              SAN        SAN         SAN         SAN        SAN         NMC         NMC        TOTAL
Item               Description            For Mexico   For UAE       For      For China  For Korea    Primary     Back-up
No.                                        (Type 2)    (Type 2)   Indonesia   (Type 2)    (Type 1)
                                                                  (Type 2)
                                             Q'ty        Q'ty       Q'ty        Q'ty        Q'ty       Q'ty        Q'ty        Q'ty
<S>      <C>                              <C>           <C>       <C>         <C>        <C>           <C>        <C>          <C>
         HARDWARE

1.       Cisco Router
1.1      7507/4 7-Slot, 2 CyBus, 1            2           2           2          2           2           2          2          28
         RSP4, Single Power Supply
1.2      SF75C-11.2.X IOS RSPx                2           2           2          2           2           2          2          28
         Series IP Only
1.3      VIP2-40 Versatile Interface          6           6           6          6           6           6          6          84
         Processor-2 Model 40
1.4      PA-FE-TX Fast Ethernet               6           6           6          6           6           4          4          80
         Port Adapter (100Base-TX,
         1-port)
1.5      PA-4E Ethernet 10Base-T              2           2           2          2           2           2          2          28
         Port Adapter (4-port)
1.6      PA-4T+ Enhanced                      4           4           4          4           4           4          4          56
         Syncronous Serial Port
         Adapter (4-port)
1.7      CAB-X21MT X.21 Cable,                2           2           2          2           4           4          4          40
          DTE, Male, 10 Feet

2.       Cisco Eternet Switch
2.1      WS-C2926T Catalyst                                                                              2          2           4
         10/100 Switch, Fixed 24-
         10/100 RJ-45, 2-100BASE
         TX
2.2      WS-C2916M-XL 16-Port                 4           4           4          4           4                                 48
         10/100 FE Switch with 2
         Uplink Slots
2.3      WS-X2914-XL 4-Port                   8           8           8          8           8                                 96
         10/100 FE Switch Module
         for Catalyst 2916M-XL

3.       CYLINK Link Encryptor                 2          2           2           2          4           4           4          40

4.       DCN NMS
4.1      A4190A HP9000                                                                                   1          1           2
         B132L(VISUALIZE-EG)
</TABLE>

13/10/98                    Commercial in Confidence
<PAGE>   1485

<TABLE>
<CAPTION>
                                            SAN         SAN        SAN         SAN         SAN        SAN         SAN         SAN
Item               Description            For ICO-    For USA      For         For      For South  For India   For Chile  For Brazil
No.                                         NET      (Type 2)   Australia    Germany     Africa     (Type 2)   (Type 2)    (Type 2)
                                                                 (Type 1)   (Type 1)    (Type 1)
                                            Q'ty       Q'ty        Q'ty       Q'ty        Q'ty        Q'ty       Q'ty        Q'ty
<S>      <C>                              <C>        <C>        <C>         <C>         <C>        <C>         <C>        <C>
4.2      A4477A 4Gbyte FW Disk
4.3      A4953A CD-ROM Drive
4.4      A4331D 20inch Color
         Monitor
4.5      DAT Drive
4.6      HP-UX Execution
         Environment
4.7      Others (I/O Cards, Cable,
         Manual, etc.)

5.       DCN Equipment Rack                              2          2           2           2          2           2           2

6.       Installation Materials                          1          1           1           1          1           1           1

7.       Documentation                                   1          1           1           1          1           1           1

8.       Integration Support Facility
         at Factory
8.1      Cisco Router
8.1.1    7507/4 7-Slot, 2 CyBus, 1           1
         RSP4, Single Power Supply
8.1.2    SF75C-11.2.X IOS RSPx               1
         Series IP Only
8.1.3    VIP2-40 Versatile Interface         3
         Processor-2 Model 40
8.1.4    PA-FE-TX Fast Ethernet              3
         Port Adapter (100Base-TX,
         1-port)
8.1.5    PA-4E Ethernet 10Base-T             1
         Port Adapter (4-port)
8.1.6    PA-4T+ Enhanced                     2
         Syncronous Serial Port
         Adapter (4-port)
8.1.7    CAB-X21MT X.21 Cable,               1
         DTE, Male, 10 Feet

8.2      Cisco Eternet Switch
</TABLE>

<TABLE>
<CAPTION>
                                               SAN        SAN         SAN         SAN        SAN         NMC         NMC       TOTAL
Item               Description             For Mexico   For UAE       For      For China  For Korea    Primary     Back-up
No.                                         (Type 2)    (Type 2)   Indonesia   (Type 2)    (Type 1)
                                                                   (Type 2)
                                              Q'ty        Q'ty       Q'ty        Q'ty        Q'ty       Q'ty        Q'ty        Q'ty
<S>      <C>                               <C>           <C>       <C>         <C>        <C>           <C>        <C>         <C>
4.2      A4477A 4Gbyte FW Disk                                                                            1           1           2
4.3      A4953A CD-ROM Drive                                                                              1           1           2
4.4      A4331D 20inch Color                                                                              1           1           2
         Monitor
4.5      DAT Drive                                                                                        1           1           2
4.6      HP-UX Execution                                                                                  1           1           2
         Environment
4.7      Others (I/O Cards, Cable,                                                                        1           1           2
         Manual, etc.)

5.       DCN Equipment Rack                     2          2           2           2          2           2           2          28

6.       Installation Materials                 1          1           1           1          1           1           1          14

7.       Documentation                          1          1           1           1          1           1           1          14

8.       Integration Support Facility
         at Factory
8.1      Cisco Router
8.1.1    7507/4 7-Slot, 2 CyBus, 1                                                                                                1
         RSP4, Single Power Supply
8.1.2    SF75C-11.2.X IOS RSPx                                                                                                    1
         Series IP Only
8.1.3    VIP2-40 Versatile Interface                                                                                              3
         Processor-2 Model 40
8.1.4    PA-FE-TX Fast Ethernet                                                                                                   3
         Port Adapter (100Base-TX,
         1-port)
8.1.5    PA-4E Ethernet 10Base-T                                                                                                  1
         Port Adapter (4-port)
8.1.6    PA-4T+ Enhanced                                                                                                          2
         Syncronous Serial Port
         Adapter (4-port)
8.1.7    CAB-X21MT X.21 Cable,                                                                                                    1
         DTE, Male, 10 Feet

8.2      Cisco Eternet Switch
</TABLE>

13/10/98                    Commercial in Confidence
<PAGE>   1486

<TABLE>
<CAPTION>
                                            SAN         SAN        SAN         SAN         SAN        SAN         SAN         SAN
Item               Description            For ICO-    For USA      For         For      For South  For India   For Chile  For Brazil
No.                                         NET      (Type 2)   Australia    Germany     Africa     (Type 2)   (Type 2)    (Type 2)
                                                                 (Type 1)   (Type 1)    (Type 1)
                                            Q'ty       Q'ty        Q'ty       Q'ty        Q'ty        Q'ty       Q'ty        Q'ty
<S>      <C>                              <C>        <C>        <C>         <C>         <C>        <C>         <C>        <C>
8.2.1    WS-C2926T Catalyst                  2
         10/100 Switch, Fixed 24-
         10/100 RJ-45, 2-100BASE
         TX
8.2.2    WS-C2916M-XL 16-Port                2
         10/100 FE Switch with 2
         Uplink Slots
8.2.3    WS-X2914-XL 4-Port                  4
         10/100 FE Switch Module
         for Catalyst 2916M-XL

8.3      Cylink Link Encryptor               2

8.4      DCN NMS
8.4.1    A4190A HP9000                       1
         B132L(VISUALIZE-EG)
8.4.2    A4477A 4Gbyte FW Disk               1
8.4.3    A4953A CD-ROM Drive                 1
8.4.4    A4331D 20inch Color Monitor         1
8.4.5    DAT Drive                           1
8.4.6    HP-UX Execution                     1
         Environment
8.4.7    Others (I/O Cards, Cable,           1
         Manual, etc.)

9.       Spares (hardware)
9.1      Cisco Router
9.1.1    7507/4 7-Slot, 2 CyBus, 1                      1           1           1          1           1           1           1
         RSP4, Single Power Supply
9.1.2    SF75C-11.2.X IOS RSPx                          1           1           1           1          1           1           1
         Series IP Only
9.1.3    VIP2-40 Versatile Interface                    3           3           3          3           3           3           3
         Processor-2 Model 40
9.1.4    PA-FE-TX Fast Ethernet                         3           3           3          3           3           3           3
         Port Adapter (100Base-TX,
         1-port)
9.1.5    PA-4E Ethernet 10Base-T                        1           1           1          1           1           1           1
         Port Adapter (4-port)
</TABLE>

<TABLE>
<CAPTION>
                                               SAN        SAN         SAN         SAN        SAN         NMC         NMC       TOTAL
Item               Description             For Mexico   For UAE       For      For China  For Korea    Primary     Back-up
No.                                         (Type 2)    (Type 2)   Indonesia   (Type 2)    (Type 1)
                                                                   (Type 2)
                                              Q'ty        Q'ty       Q'ty        Q'ty        Q'ty       Q'ty        Q'ty        Q'ty
<S>      <C>                               <C>           <C>       <C>         <C>        <C>           <C>        <C>         <C>
8.2.1    WS-C2926T Catalyst                                                                                                       2
         10/100 Switch, Fixed 24- 10/100 RJ-45, 2-100BASE
         TX
8.2.2    WS-C2916M-XL 16-Port                                                                                                     2
         10/100 FE Switch with 2
         Uplink Slots
8.2.3    WS-X2914-XL 4-Port                                                                                                       4
         10/100 FE Switch Module
         for Catalyst 2916M-XL

8.3      Cylink Link Encryptor                                                                                                    2

8.4      DCN NMS
8.4.1    A4190A HP9000                                                                                                            1
         B132L(VISUALIZE-EG)
8.4.2    A4477A 4Gbyte FW Disk                                                                                                    1
8.4.3    A4953A CD-ROM Drive                                                                                                      1
8.4.4    A4331D 20inch Color Monitor                                                                                              1
8.4.5    DAT Drive                                                                                                                1
8.4.6    HP-UX Execution                                                                                                          1
         Environment
8.4.7    Others (I/O Cards, Cable,                                                                                                1
         Manual, etc.)

9.       Spares (hardware)
9.1      Cisco Router
9.1.1    7507/4 7-Slot, 2 CyBus, 1              1           1           1          1           1           1          1          14
         RSP4, Single Power Supply
9.1.2    SF75C-11.2.X IOS RSPx                  1           1           1          1           1           1          1          14
         Series IP Only
9.1.3    VIP2-40 Versatile Interface            3           3           3          3           3           3          3          42
         Processor-2 Model 40
9.1.4    PA-FE-TX Fast Ethernet                 3           3           3          3           3           3          3          42
         Port Adapter (100Base-TX,
         1-port)
9.1.5    PA-4E Ethernet 10Base-T                1           1           1          1           1           1          1          14
         Port Adapter (4-port)
</TABLE>

13/10/98                    Commercial in Confidence
<PAGE>   1487
DCN EQUIPMENT LIST

<TABLE>
<CAPTION>
                                            SAN         SAN        SAN         SAN         SAN        SAN         SAN         SAN
Item               Description            For ICO-    For USA      For         For      For South  For India   For Chile  For Brazil
No.                                         NET      (Type 2)   Australia    Germany     Africa     (Type 2)   (Type 2)    (Type 2)
                                                                 (Type 1)   (Type 1)    (Type 1)
                                            Q'ty       Q'ty        Q'ty       Q'ty        Q'ty        Q'ty       Q'ty        Q'ty
<S>      <C>                              <C>        <C>        <C>         <C>         <C>        <C>         <C>        <C>
9.1.6    PA-4T+ Enhanced                                2           2           2          2           2           2           2
         Syncronous Serial Port
         Adapter (4-port)
9.1.7    CAB-X21MT X.21 Cable,                          1           1           1          1           1           1           1
         DTE, Male, 10 Feet

9.2      Cisco Eternet Switch
9.2.1    WS-C2926T Catalyst
         10/100 Switch, Fixed 24-
         10/100 RJ-45, 2-100BASE
         TX
9.2.2    WS-C2916M-XL 16-Port                           1           1           1          1           1           1           1
         10/100 FE Switch with 2
         Uplink Slots
9.2.3    WS-X2914-XL 4-Port                             2           2           2          2           2           2           2
         10/100 FE Switch Module
         for Catalyst 2916M-XL

9.3      Cylink Link Encryptor                          1           1           1          1           1           1           1

9.4      DCN NMS
9.4.1    A4190A HP9000
         B132L(VISUALIZE-EG)
9.4.2    A4477A 4Gbyte FW Disk
9.4.3    A4953A CD-ROM Drive
9.4.4    A4331D 20inch Color Monitor
9.4.5    DAT Drive
9.4.6    HP-UX Execution
         Environment
9.4.7    Others (I/O Cards, Cable,
         Manual, etc.)

9.5      Spare Cables
9.5.1    100 Base T-X Straight                           1          1           1           1          1           1           1
9.5.2    100 Base T-X Cross                              1          1           1           1          1           1           1
9.5.3    10 Base T Cross
         (NMC/BNMC Site Only)
9.5.4    X.21 DTE                                        1          1           1           1          1           1           1
9.5.5    RS-232C (D-Sub)                                 1          1           1           1          1           1           1
</TABLE>

<TABLE>
<CAPTION>
                                            SAN        SAN         SAN         SAN        SAN         NMC         NMC        TOTAL
Item               Description          For Mexico   For UAE       For      For China  For Korea    Primary     Back-up
No.                                      (Type 2)    (Type 2)   Indonesia   (Type 2)    (Type 1)
                                                                 (Type 2)
                                           Q'ty        Q'ty       Q'ty        Q'ty        Q'ty       Q'ty        Q'ty        Q'ty
<S>      <C>                            <C>           <C>       <C>         <C>        <C>           <C>        <C>          <C>
9.1.6    PA-4T+ Enhanced                    2           2           2          2           2           2          2          28
         Syncronous Serial Port
         Adapter (4-port)
9.1.7    CAB-X21MT X.21 Cable,              1           1           1          1           1           1          1          14
         DTE, Male, 10 Feet

9.2      Cisco Eternet Switch
9.2.1    WS-C2926T Catalyst                                                                            1          1           2
         10/100 Switch, Fixed 24-
         10/100 RJ-45, 2-100BASE
         TX
9.2.2    WS-C2916M-XL 16-Port               1           1           1          1           1                                 12
         10/100 FE Switch with 2
         Uplink Slots
9.2.3    WS-X2914-XL 4-Port                 2           2           2          2           2                                 24
         10/100 FE Switch Module
         for Catalyst 2916M-XL

9.3      Cylink Link Encryptor               1          1           1           1          1           1           1          14

9.4      DCN NMS
9.4.1    A4190A HP9000                                                                                 1          1           2
         B132L(VISUALIZE-EG)
9.4.2    A4477A 4Gbyte FW Disk                                                                         1           1           2
9.4.3    A4953A CD-ROM Drive                                                                           1           1           2
9.4.4    A4331D 20inch Color
         Monitor                                                                                       1           1           2
9.4.5    DAT Drive                                                                                     1           1           2
9.4.6    HP-UX Execution
         Environment                                                                                   1           1           2
9.4.7    Others (I/O Cards, Cable,                                                                     1           1           2
         Manual, etc.)

9.5      Spare Cables
9.5.1    100 Base T-X Straight               1          1           1           1          1           1           1          14
9.5.2    100 Base T-X Cross                  1          1           1           1          1           1           1          14
9.5.3    10 Base T Cross                                                                               1          1           2
         (NMC/BNMC Site Only)
9.5.4    X.21 DTE                            1          1           1           1          1           1           1          14
9.5.5    RS-232C (D-Sub)                     1          1           1           1          1           1           1          14
</TABLE>

13/10/98                    Commercial in Confidence
<PAGE>   1488

DCN EQUIPMENT LIST
<TABLE>
<CAPTION>
                                            SAN         SAN        SAN         SAN         SAN        SAN         SAN         SAN
Item               Description            For ICO-    For USA      For         For      For South  For India   For Chile  For Brazil
No.                                         NET      (Type 2)   Australia    Germany     Africa     (Type 2)   (Type 2)    (Type 2)
                                                                 (Type 1)   (Type 1)    (Type 1)
                                            Q'ty       Q'ty        Q'ty       Q'ty        Q'ty        Q'ty       Q'ty        Q'ty
<S>      <C>                              <C>        <C>        <C>         <C>         <C>        <C>         <C>        <C>
9.5.6    RS-232C (Modular Jack)                          1          1           1           1          1           1           1

         SOFTWARE LICENCE

1.       Cisco FR-WPP75 RSP1,                           2           2           2          2           2           2           2
         RSP2, RSP7000, WAN
         Packet Protocol Licence

2.       HP Open View NNM 5.0
         Software Set

3        CISCO Works for HP Openview HP-UX
         (CW-4.0- OVH) and CWSI, HP-UX
         Openview, Standalone (CWSI-2.1-OVH)

4        Integration Support Facility
         at Factory
4.1      Cisco FR-WPP75 RSP1,                1
         RSP2, RSP7000, WAN
         Packet Protocol Licence
4.2      HP Open View NNM 5.0                1
         Software Set
4.3      CISCO Works for HP Openview         1
         HP-UX (CW-4.0-
         OVH) and   CWSI, HP-UX
         Openview, Standalone
         (CWSI-2.1-OVH)

5        Software Licence for Spares
5.1      Cisco FR-WPP75 RSP1,                            1          1           1           1          1           1           1
         RSP2, RSP7000, WAN
         Packet Protocol Licence
5.2      HP Open View NNM 5.0
         Software Set
</TABLE>

<TABLE>
<CAPTION>
                                            SAN        SAN         SAN         SAN        SAN         NMC         NMC        TOTAL
Item               Description          For Mexico   For UAE       For      For China  For Korea    Primary     Back-up
No.                                      (Type 2)    (Type 2)   Indonesia   (Type 2)    (Type 1)
                                                                 (Type 2)
                                           Q'ty        Q'ty       Q'ty        Q'ty        Q'ty       Q'ty        Q'ty        Q'ty
<S>      <C>                            <C>           <C>       <C>         <C>        <C>           <C>        <C>          <C>
9.5.6    RS-232C (Modular Jack)              1          1           1           1          1           1           1          14

         SOFTWARE LICENCE

1.       Cisco FR-WPP75 RSP1,               2           2           2          2           2           2          2          28
         RSP2, RSP7000, WAN
         Packet Protocol Licence

2.       HP Open View NNM 5.0                                                                          1           1           2
         Software Set

3        CISCO Works for HP                                                                            1          1           2
         Openview HP-UX (CW-4.0-
         OVH) and CWSI, HP-UX
         Openview, Standalone
         (CWSI-2.1-OVH)

4        Integration Support Facility
         at Factory
4.1      Cisco FR-WPP75 RSP1,                                                                                                  1
         RSP2, RSP7000, WAN
         Packet Protocol Licence
4.2      HP Open View NNM 5.0                                                                                                  1
         Software Set
4.3      CISCO Works for HP Openview
         HP-UX (CW-4.0-
         OVH) and   CWSI, HP-UX
         Openview, Standalone
         (CWSI-2.1-OVH)

5        Software Licence for Spares
5.1      Cisco FR-WPP75 RSP1,                1          1           1           1          1           1           1          14
         RSP2, RSP7000, WAN
         Packet Protocol Licence
5.2      HP Open View NNM 5.0                                                                          1           1           2
         Software Set
</TABLE>

13/10/98                    Commercial in Confidence
<PAGE>   1489

The equipment purchased under item No.8 for the Integration Support Facility at
Factory shall remain at NEC Yokohama until such a time when ICO/NEC mutually
agree that it no longer can be utilized effectively, after which it will be used
as ICO spares.

13/10/98                    Commercial in Confidence
<PAGE>   1490
--------------------------------------------------------------------------------
[ICO LOGO]                                                CHANGE ORDER
                                                          NO: 6
                  IGF SUPPLY AGREEMENT
              CONTRACT NO ICOO97 - 1016/GW
                                                          DATE: 12 NOVEMBER 1998
--------------------------------------------------------------------------------

In accordance with clause 9 of the Supply Agreement dated March 3rd 1997 between
NEC Corporation and ICO Global Communications Holdings BV, the Agreement is
hereby amended as follows:

<TABLE>
<S>                           <C>
Amended Clauses               None
Amended Schedules             Schedule 13: IGFR (version 27.1) - see "Addendum 1
                              (V3) - Agreed Changes to IGFR v27.1 Version 1.doc"
Amended Annexes               None
Amended Price                 None
Other Amendments              None
Reference Correspondence      SA0684 (04/03/98); SA0613 (26/01/98).
</TABLE>

This Change Order No 6 will now form part of the Supply Agreement dated March
3rd 1997 between the parties as from 25th June 1998 and shall be governed by and
construed in accordance with the laws of England.

Except for the changes set out above, this Change Order No 6 makes no further
amendments or modifications to the Agreement.

Signed for and on behalf of               Signed for and on behalf of
ICO GLOBAL COMMUNICATIONS HOLDINGS BV     NEC CORPORATION

/s/ G. L. TITZER                          /s/ TAKAO NISHIZAWA
---------------------------               --------------------------------------
Supervising Officer                       Contractor's Authorised Representative
                                          TAKAO NISHIZAWA
                                          GENERAL MANAGER, EUROPE DIV.

12 Nov. 1998                              30 Nov. 1998
------------------                        ------------------
Date                                      Date
<PAGE>   1491
         ADDENDUM 1 (v3): ACCEPTED CHANGE REQUESTS TO IGFR VERSION 27.1

<TABLE>
<CAPTION>
                                                                                DESCRIPTION OF PROPOSED       CHANGE        DATE OF
  SECTION NO.                           REVISED TEXT                                    SOLUTION            REQUEST NO.   ACCEPTANCE
------------------------------------------------------------------------------------------------------------------------------------
<S>               <C>                                                          <C>                          <C>           <C>

1.2.2.2.2.3       1.2.2.2.2.3 SBS Local SRMS                                   Remove Real time Resourse    CCR27           26/01/98
                                                                               Manager, replace with SBS
                                                                               Local SRMS

Figure 1.1        SBS LSRMS                                                    From SBS Subsystem,          CCR27           26/01/98
                                                                               replace RTRM with SBS
                                                                               LSRMS

2                 2.83a LSRMS Local Satellite Resource Management System       Add to list of definitions   CCR27           26/01/98
                                                                               & acronyms. NB. It is
                                                                               inserted as 2.83a to avoid
                                                                               all successive numbers to
                                                                               be adjusted.

2.128             2.128 DELETED                                                Delete                       CCR27           26/01/98

6.19.1.4          6.19.1.4  The accuracy estimate shall be stored with         Remove brackets              CCR28           26/01/98
                  resolution of 1 km for small accuracy estimates [and 20] km
                  for larger accuracy estimates depending on the magnitude
                  of location error.

6.25.1.1.1        3 The SBS shall meet time synchronization requirements for   Modify  Item 3 to state      CCR40           26/01/98
                  GPS service outages lasting up to 1 day in duration.         requirement for GPS
                                                                               service outages lasting up
                                                                               to 1 day in duration.

6.25.1.1.6        The ATN number sequence starts at [24:00:00 05 January       Remove brackets              CCR33           26/01/98
                  1980] GPS time.

6.25.1.3.4        The SBS shall use the ephemeris data to calculate the SAN    Remove brackets              CCR34           26/01/98
                  to satellite delay value to within [+ - 2.0] micro sec, 3
                  sigma error, at any given instant in time.

6.25.2.3.1.10     6.25.2.3.1.10. The RFT subsystem shall provide frequency     Remove brackets              CCR43           26/01/98
                  reference offsets(M) and Doppler offsets(Dc) with a
                  resolution of at least [1 Hz] and an accuracy of better
                  than [+ - 6 Hz].
</TABLE>

Accepted Changes to IGFR v27.1 (version 3.0).xls                 07/12/98  11:04
                                       1
<PAGE>   1492
         ADDENDUM 1 (v3): ACCEPTED CHANGE REQUESTS TO IGFR VERSION 27.1

<TABLE>
<S>               <C>                                                          <C>                          <C>           <C>
6.25.2.3.4        6.25.2.3.4 HPN FREQUENCY CONTROL                             Simplification of            CCR74           04/03/98
                  6.25.2.3.4.1 The forward channel frequency pre-correction    frequency in the HPN
                  shall be done at the HPN ChM by using the Doppler            subsystem and of
                  frequency-related information provided by the SAN-OSS for    requirement for real-time
                  the Spot Beam reference point.  +The feeder link Doppler      feeder-link Doppler
                  and master oscillator error reported by the RFT shall not    information.  This eases
                  be compensated.                                              testing requirements.  In
                  6.25.2.3.4.2 The bursts transmitted by the HPN Transmit      addition, the bracketed
                  ChU shall have the frequency pre-corrected such that they    frequency accuracy
                  are received on earth at their nominal values                parameter is now
                  corresponding to the intended Spot Beam reference point      finalized.
                  with an absolute accuracy of [183Hz].
                  6.25.2.3.4.3 The frequency correction associated with each
                  HPN forward channel burst is expected to be different,
                  since bursts are being continually sent to different
                  satellite beams.

6.25.2.3.5.1.4    The SBS shall transmit an initial frequency correction to    Remove brackets              CCR36           26/01/98
                  the UT in the IMMEDIATE ASSIGNMENT message as defined in
                  the Air Interface.  The maximum correction is [+- 2500] Hz,
                  and the granularity is [8] Hz.

6.25.3.5          6.25.3.5 The TNM shall derive it's timing reference, at      rewording                    CCR41           26/01/98
                  the terrestrial network interface (MSSC-TNM), from the
                  incoming E1 signals and pass this timing to the SBS via
                  the TNM-SBS interface.

6.25.3.9          6.25.3.9 DELETED.                                            Delete Requirement           CCR31           26/01/98

6.47.2.10         Up to [10] previous measurement reports shall be used to     Remove brackets              CCR39           26/01/98
                  determine the current SBS EIRP.

6.47.2.5.         The SBS shall be able to estimate expected forward link      Remove Brackets              CCR64           04/03/98
                  channel quality based on forward link channel quality
                  measurements [alone or, configurably, as a combination of
                  forward and return link channel quality measurements].

6.47.2.9          The SBS shall modify SAN EIRP to the required value within   Remove brackets              CCR38           26/01/98
                  a resolution of [0.5] dB.

6.47.4.4.8        A minimum of 1 and a maximum of [10] previous channel        Remove brackets              CCR18B          26/01/98
                  quality estimates shall be used to determine the current
                  UT EIRP.
</TABLE>
Accepted Changes to IGFR v27.1(version3.0) .xls                  07/12/98 11:04
                                       2
<PAGE>   1493
         ADDENDUM 1 (v3): ACCEPTED CHANGE REQUESTS TO IGFR VERSION 27.1

<TABLE>
<S>               <C>                                                          <C>                          <C>           <C>
6.50.2.10.1.19.   6.50.2.10.1.19. DELETED.                                     Delete                       CCR65           04/03/98

6.53.1.7          6.53.1.7. Multicarrier Intermodulation Products              NEC confirm the              CCR58           26/01/98
                                                                               specification to be
                                                                               complied. (TBR) will be
                                                                               deleted.

6.53.3.5          6.53.3.5  Transmitter Phase Noise                            Remove TBR                   CCR72           04/03/98

6.56.2.2          The IGF shall configure an unused control channel unit       Remove brackets              CCR19B          26/01/98
                  (if one is available) to replace the control channels that
                  were being provided by the failed channel unit.  This
                  shall be achieved within [60] seconds.

6.56.2.3          If no unused control channel unit is available, the IGF      Remove brackets              CCR20           26/01/98
                  shall re-configure a traffic channel unit to operate as a
                  control channel unit, and then configure it to replace the
                  control channels that were being provided by the failed
                  channel unit. This shall be achieved within [120] seconds.
                  By preference, a traffic channel that was not carrying any
                  traffic shall be used for this purpose.

6.56.24           If it is necessary to reconfigure a traffic channel unit     Remove brackets              CCR21           26/01/98
                  to a control channel unit, and that traffic channel unit
                  was carrying traffic, the IGF shall attempt to handover
                  all active calls to other channel units  prior to
                  reconfiguring the channel unit an extra [15] seconds will be
                  allocated to attempt this. Should it not be possible to
                  handover any of the calls, the IGF shall release those
                  traffic channels as defined in Section 6.56.1.

6.58.1.1.5.1      6.58.1.1.5.1. In all modes, the rms error of the antenna     The time stamping accuracy   CCR45           26/01/98
                  pointing direction shall be less than 0.05 degrees.  The     is changed to +/- 100ms
                  antenna angle data shall be time-stamped with an accuracy    instead of +/- 1sec.
                  better than +-[100] ms.

6.58.1.3.4.1      6.58.1.3.4.1. The transmit axial ratio and the receive       NEC confirm the specified    CCR46           26/01/98
                  axial ratio shall not exceed 1.3.                            axial ratio and to delete
                                                                               the (TBR).

6.58.1.3.6.1      6.58.1.3.6.1. The VSWR of the antenna feed subsystem at      NEC confirm S-band antenna   CCR47           26/01/98
                  the transmit and receive ports shall not exceed 1:1.4        shall not exceed 1:1.4
</TABLE>
Accepted Changes to IGFR c27.1(version3.0) .xls                  07/12/98 11:04

                                       3
<PAGE>   1494
         ADDENDUM 1 (v3): ACCEPTED CHANGE REQUESTS TO IGFR VERSION 27.1

<TABLE>
<S>               <C>                                                          <C>                          <C>           <C>
6.58.2.2.2.1      6.58.2.2.2.1. The maximum composite PFD from ICO             NEC confirm that             CCR48           26/01/98
                  satellites, corresponding to SAN at centre of coverage is    -125dBw/m2 as maximum
                  -125 dBw/m2 per polarisation, excluding noise and            composite power flux
                  intermodulation components generated by the satellite.       density from ICO
                                                                               satellite.

6.58.4.4.1        6.58.4.4.1 The AFC system shall meet the following           NEC confirm that +/- 6Hz     CCR49           26/01/98
                  requirements:                                                at center frequency as
                    1. Threshold C/N0 45 dBHz                                  specified in the latest
                    2. Input Signal characteristics:                           IGFR specifications,
                       Frequency variation range           less than +-72kHz   version 25.
                       Change Rate                       less than 38 Hz/sec
                       Satellite LO drift        less than 10(8) (long term)
                                           less than 10(10) (for 10 seconds)
                    3. Frequency compensation error
                       Transmit (SAN IF to Satellite S-band output):
                                         less than +-6Hz at centre frequency
                    4. Receive (Satellite S-band input to SAN IF):
                                         less than +-6Hz at centre frequency

6.58.7.2.2        6.58.7.2.2  The gain stability shall be within +/- 1 dB      NEC confirm that gain        CCR51           26/01/98
                  excluding the gain variation due to the IFL and the gain     variation of the IFL shall
                  variation across the passband shall be less than 1 dB.       be less than +/- 2.5 dB,
                  The gain variation of the IFL shall be less than +/- 2.5     as specified in the latest
                  dB.                                                          IGFR specifications,
                                                                               version 25.

6.58.7.5          6.58.7.5. Spurious Signals                                   NEC confirm the level of     CCR52           26/01/98
                                                                               spurious signal and
                                                                               thermal noise level.

6.58.8.2.2        6.58.8.2.2  The gain stability shall be better than +/-      NEC confirm that gain        CCR54           26/01/98
                  0.5 dB in any 3-hour period and better than +/-2.5 dB        variation of the IFL shall
                  overall.  The variation of the gain across the passband      be less than +/- 2.5 dB,
                  shall be less than 1 dB.                                     as specified in the latest
                                                                               IGFR specifications,
                                                                               version 25.

7.1.2.4(9)c       c. SBS LSRMS                                                 Remove Real time Resourse    CCR27           26/01/98
                                                                               Manager, replace with SBS
                                                                               LSRMS

7.8.8.2.4         7.8.8.2.4 The RFT OAM switchover shall not exceed 5          Remove brackets              CCR56           26/01/98
                  minutes.

</TABLE>

Accepted Changes to IGFR v27.1 (version 3.0) .xls                 07/12/98 11:04

                                       4
<PAGE>   1495
         ADDENDUM 1 (v3): ACCEPTED CHANGE REQUESTS TO IGFR VERSION 27.1

<TABLE>
<S>               <C>                                                          <C>                          <C>           <C>
7.8.8.4.21        7.8.8.4.21 Equipment alarms - TT&C RF equipment summary      RFT OAM report the summary   CCR57           26/01/98
                  alarm.                                                       alarm status of TTC system
                                                                               in RFT. The base band
                                                                               equipment alarm is
                                                                               reported from TTC baseband
                                                                               equipment.

9.2.1 item 5      8.10.5.                                                      Section 8.10.5 defines       CCR66           04/03/98
column 6                                                                       transaction delay. Remove
                                                                               brackets.

9.2.1 item 6      8.10.5.                                                      Section 8.10.5 defines       CCR66           04/03/98
column 6                                                                       transaction delay. Remove
                                                                               brackets.

9.3.4.1.2.1       In the initial purchase, the SBS shall support a traffic     Annex A of the SOW defines   CCR63           04/03/98
                  capacity of 320 holding time Erlang at the SBS-TNM           the SBS capacity
                  interface in each of the 12 SANs. The capacity of each SBS   requirements and the
                  shall be possible to be increased in steps of one or more    amount of channel
                  channel expansion blocks up to a maximum of 4800 Erlangs     expansion blocks necessary
                  in the largest SAN.                                          to support a specific
                                                                               Erlang rate. The formula
                                                                               is not linear.
</TABLE>

Accepted Changes to IGFR v27.1 (version 3.0) .xls                 07/12/98 11:04

                                       5
<PAGE>   1496
                         ICONET Integration GO Schedule

<TABLE>
<CAPTION>

ID  TASK NAME                                     DURATION  START         FINISH        PREDECESSORS  A     S      O    N     D
---------------------------------------------------------------------------------------------------------------------------------
<S> <C>                                           <C>       <C>           <C>           <C>           <C>   <C>   <C>   <C>   <C>
 1  HNS started work                                  0d    Wed 07/01/98  Wed 07/01/98

 2

 3  COORDINATION MEETINGS                           375d    WED 06/08/97  TUE 12/01/99

 4    Proposal coordination meeting (London)          1d    Wed 06/08/97  Wed 06/08/97                06/08

 5    Proposal review meeting (Haslemere)             1d    Wed 24/09/97  Wed 24/09/97                        04/09|24/09

 6   Proposal clarification meeting (London)          1d    Mon 17/11/97  Mon 17/11/97                                   17/11|17/11

 7   Kickoff meeting (Germantown)                     2d    Thu 29/01/98  Fri 30/01/98

 8   A1 test script initial review (Germantown)       2d    Mon 30/03/98  Tue 31/03/98

 9   A1/A2 test script review (Paris)                 2d    Mon 11/05/98  Tue 12/05/98

10   A2 test script review (Germantown)               2d    Mon 03/08/98  Tue 04/08/98

11   B test coordination meeting (Paris)              2d    Mon 12/10/98  Tue 13/10/98

12   B test script coordination meeting (Germantown)  2d    Mon 14/12/98  Tue 15/12/98

13   B test script coordination meeting (Germantown)  2d    Mon 11/01/99  Tue 12/01/99

14

15  A1 PHASE TESTING                                324d    TUE 23/09/97  FRI 18/12/98

16   DOCUMENTATION & PREPARATION                     89d    TUE 20/01/98  FRI 22/05/98

17     A1 L1 configuration data final (by ICO)        0d    Fri 27/02/98  Fri 27/02/98

18     A1 L2 configuration data final (by ICO)        0d    Tue 31/03/98  Tue 31/03/98

19     Prepare A1 Test Scripts Document              88d    Wed 21/01/98  Fri 22/05/98   1FS+10d

20     Deliver A1 TSD                                 0d    Fri 22/05/98  Fri 22/05/98   19,39SF-23d

21     Produce ICDs                                  19d    Tue 20/01/98  Fri 13/02/98   1FS+9d

22     ICDs ready for review                          0d    Fri 13/02/98  Fri 13/02/98   21

23     Comments on ICDs due to HNS                    0d    Fri 20/02/98  Fri 20/02/98   22FS+5d

24     Final ICDs released                            0d    Fri 27/02/98  Fri 27/02/98   23FS+5d
============================================================================================================================
</TABLE>

<TABLE>
<CAPTION>
                                                                                         1998
                                                       ---------------------------------------------------------------------------
ID  TASK NAME                                          J      F      M     A     M     J      J      A     S     O     N     D
----------------------------------------------------------------------------------------------------------------------------------
<S> <C>                                                <C>    <C>    <C>   <C>   <C>   <C>    <C>    <C>   <C>   <C>   <C>   <C>
 1  HNS started work                                   07/01

 2

 3  COORDINATION MEETINGS

 4    Proposal coordination meeting (London)

 5    Proposal review meeting (Haslemere)

 6   Proposal clarification meeting (London)

 7   Kickoff meeting (Germantown)                      29/01|30/01

 8   A1 test script initial review (Germantown)                  30/03|31/03

 9   A1/A2 test script review (Paris)                                            11/05|12/05

10   A2 test script review (Germantown)                                                              03/08|04/08

11   B test coordination meeting (Paris)                                                                         12/10|13/10

12   B test script coordination meeting (Germantown)                                                                     14/12|15/12

13   B test script coordination meeting (Germantown)   11/01/01

14

15  A1 PHASE TESTING

16   DOCUMENTATION & PREPARATION

17     A1 L1 configuration data final (by ICO)                27/02

18     A1 L2 configuration data final (by ICO)                       31/03

19     Prepare A1 Test Scripts Document                21/01                     22/05

20     Deliver A1 TSD                                                            22/05

21     Produce ICDs                                    21/01 13/02

22     ICDs ready for review                                 13/02

23     Comments on ICDs due to HNS                           20/02

24     Final ICDs released                                   27/02
==================================================================================================================================
</TABLE>

<TABLE>
<CAPTION>
                                                                                1999
                                                       -----------------------------------------------
ID  TASK NAME                                          J     F     M     A     M     J     J     A
------------------------------------------------------------------------------------------------------
<S> <C>                                                <C>   <C>   <C>   <C>   <C>   <C>   <C>   <C>
 1  HNS started work

 2

 3  COORDINATION MEETINGS

 4    Proposal coordination meeting (London)

 5    Proposal review meeting (Haslemere)

 6   Proposal clarification meeting (London)

 7   Kickoff meeting (Germantown)

 8   A1 test script initial review (Germantown)

 9   A1/A2 test script review (Paris)

10   A2 test script review (Germantown)

11   B test coordination meeting (Paris)

12   B test script coordination meeting (Germantown)

13   B test script coordination meeting (Germantown)   11/01|12/01

14

15  A1 PHASE TESTING

16   DOCUMENTATION & PREPARATION

17     A1 L1 configuration data final (by ICO)

18     A1 L2 configuration data final (by ICO)

19     Prepare A1 Test Scripts Document

20     Deliver A1 TSD

21     Produce ICDs

22     ICDs ready for review

23     Comments on ICDs due to HNS

24     Final ICDs released
======================================================================================================
</TABLE>

B70097a5.MPP                                                             Page 1
<PAGE>   1497
[ICO LOGO]                                               CHANGE ORDER
                                                         NO: 7
                       IGF SUPPLY AGREEMENT
                   CONTRACT NO ICOO97 - 1016/GW
                                                         DATE: 11 November, 1998

In accordance with clause 9 of the Supply Agreement dated March 3rd 1997 between
NEC Corporation and ICO Global Communications Holdings BV, the Agreement is
hereby amended as follows:

<TABLE>
<S>                         <C>
Amended Clauses             None
Amended Schedules           Schedule 13 - IGFR
Amended Annexes             None
Amended Price               None
Other Amendments            None
Reference Correspondence    CCR No: 22, 23, 24, 26, 29, 35, 32, 37, 62, 67, 77,
                            78, 25, 30, 71, SA1043, SA0982, SA0974, SA1057,
                            SA1243, SA1118, SA1286
</TABLE>

This Change Order No 7 will now form part of the Supply Agreement dated March
3rd 1997 between the parties as from the date of this Change Order and shall be
governed by and construed in accordance with the laws of England.

Except for the changes set out above, this Change Order No 7 makes no further
amendments or modifications to the Agreement.

Signed for and on behalf of               Signed for and on behalf of
ICO GLOBAL COMMUNICATIONS HOLDINGS BV     NEC CORPORATION

/s/ GARY S. TITZER                        /s/ TAKAO NISHIZAWA
-------------------------------------     --------------------------------------
Supervising Officer                       Contractor's Authorised Representative
                                          TAKAO NISHIZAWA
                                          GENERAL MANAGER, EUROPE DIV.

11 Nov 1998                               30 Nov. 1998
-----------------                         -----------------
Date                                      Date
<PAGE>   1498
<TABLE>
<CAPTION>
                                                                               DESCRIPTION OF PROPOSED     CHANGE         DATE OF
   SECTION NO.                      REVISED TEXT                                      SOLUTION           REQUEST NO.    ACCEPTANCE
------------------------------------------------------------------------------------------------------------------------------------
<S>                <C>                                                         <C>                       <C>           <C>

9.3.4.1.3.3 r2c2   <[2]%                                                       Remove Brackets in        CCR 22        28/07/98 - RW
                                                                               Table 9-4 Blocking
                                                                               Probability Allowance

9.3.4.1.3.3 r3c2   <[12]%                                                      Remove Brackets in        CCR 23        28/07/98 - RW
                                                                               Table 9-4 Blocking
                                                                               Probability Allowance

 9.3.4.3.1 r2c2    8 seconds                                                   Remove Brackets and       CCR 24        28/07/98 - RW
                                                                               change 4 to 8 seconds
                                                                               in Table 9-5 Traffic
                                                                               Model

    8.10.5.1       8.10.5.1. The SBS-transparent signalling messages transit   Addition of Full stop     CCR 26        28/07/98 - RW
                   time is defined as the last bit of the message into the     and the removal of the
                   SBS and the first bit of the corresponding message out of   end of the sentence in
                   the SBS and shall be no more than 110 ms for 95% of the     Signalling Transit Time
                   time.

    8.10.5.2       8.10.5.2. The SBS transit time in the transmit direction    New Paragraph entered     CCR 26        28/07/98 - RW
                   assumes no delay waiting for the next opportunity to        in Signalling Transit
                   transmit the message over the Air Interface. (Note: The     Time
                   possible Air Interface delay depends on the channel type
                   used for signalling; the worst case, SDCCH/2, could add
                   up to 960 ms delay).

    8.10.5.3       8.10.5.3. In the case of diversity operation, SBS transit   New Paragraph entered     CCR 26        28/07/98 - RW
                   time shall be no more than 40ms longer than the case        in Signalling Transit
                   without diversity.                                          Time

    8.10.8.6       8.10.8.6. The SBS layer 2 acknowledgement delay in the      New Paragraph entered     CCR 26        28/07/98 - RW
                   transmit direction assumes no delay waiting for the next    in Layer 2
                   opportunity to transmit the message over the Air            Acknowledgement Delay
                   Interface. (Note: The possible Air Interface delay
                   depends on the channel type used for signalling; the
                   worst case, SDCCH/2, could add up to 960 ms delay).

    8.10.8.7       8.10.8.7. In the case of diversity operation, SBS layer 2   New Paragraph entered     CCR 26        28/07/98 - RW
                   acknowledgement delay shall be no more than 40ms longer     in Layer 2
                   than the case without diversity.                            Acknowledgement Delay
</TABLE>

ICO SERVICES LTD CONFIDENTIAL                07/12/98                     Page 1
<PAGE>   1499
<TABLE>
<S>                <C>                                                         <C>                       <C>           <C>
   7.8.9.5.6 1     7.8.9.5.6 1 total call (radio session) holding time         Since, service type has   CCR 29        28/07/98 - RW
                   categorised by UT location, mobile-originated or mobile-    different meanings in
                   terminated, service mode (0=undefined, 1=voice,             the IGF depending on
                   2=data/fax, 3=signalling), class of diversity, time and     the context and network
                   date.                                                       element, we are
                                                                               suggesting to replace
                                                                               [service type] with
                                                                               "service mode" where
                                                                               service mode is one of
                                                                               the following:

                                                                               0 - Undefined
                                                                               1 - Voice
                                                                               2 - Data/Fax
                                                                               3 - Signalling

  7.8.9.5.6. 2     7.8.9.5.6  2 total call (radio session) count (attempts     Since, service type has   CCR 29        28/07/98 - RW
                   and completion) categorised by UT location, mobile-         different meanings in
                   originated or mobile-terminated, service mode               the IGF depending on
                   (0=undefined, 1=voice, 2=data/fax, 3=signalling), class     the context and network
                   of diversity, time and date                                 element, we are
                                                                               suggesting to replace
                                                                               [service type] with
                                                                               "service mode" where
                                                                               service mode is one of
                                                                               the following:

                                                                               0 - Undefined
                                                                               1 - Voice
                                                                               2 - Data/Fax
                                                                               3 - Signalling

    6.19.2.2       6.19.2.2  The error introduced by the SBS algorithm for     Removal of brackets in    CCR 32        03/07/98 - RW
                   conversion to geographic position shall be no greater       Conversion of Frequency
                   than that corresponding to 0.5 micro sec and 0.5 Hz.        and Time Measurement to
                                                                               Position

 6.25.2.3.5.1.1    The SBS shall detect the RACH transmission at frequency     Removal of brackets and   CCR 35        28/07/98 - RW
                   offsets of up to + 3000 Hz, at the SAN input.               frequency confirmed as
                                                                               +3000

 6.25.2.3.5.3.6    The SBS shall be able to provide these corrections at an    Removal of brackets in    CCR 37        03/07/98 - RW
                   average rate of once every 7 seconds (for all UTs), and     Return Measurement and
                   at a maximum rate of once per 1 seconds per UT.             Link Control
</TABLE>

ICO SERVICES LTD CONFIDENTIAL             07/12/98                        Page 2
<PAGE>   1500
<TABLE>
<S>                <C>                                                         <C>                       <C>           <C>
  6.58.2.2.2.2     6.58.2.2.2.2 The range of expected PFD of C-band down       Removal of brackets in    CCR 62        03/07/98 - RW
                   link communication carriers, assuming the EIRP of the UTs   Receiver Dynamic Range
                   as 6.8 dBW will be:
                   Minimum single carrier PFD:            -168 dBW/m(2) TCH.
                                              -178 dBW/m(2)  RACH and SDCCH.
                   Maximum single carrier PFD:                 -143 dBW/m(2)
                   The minimum value corresponding to the case of:
                                               10 degree UT elevation angle,
                                                   8 dB S-band fade for TCH.
                                       18 dB S-band fade for RACH and SDCCH.

     7.1.5.6       7.1.5.6. The NMS shall support an enhanced report           Addition of new           CCR 77        08/06/98 - LG
                   distribution function (RDF) at LINK-NMS and SAN-NMS to      sections based on the
                   enable reports to also be distributed via :                 agreement between
                   1. E-mail (SMTP compatible)                                 ICO-WG5 and NEC-WG5 at
                   2. Facsimile                                                the 1st Post-FDR
                   3. File Transfer (FTP)                                      Meeting (Apr.98).

     7.1.5.7       7.1.5.7 Using the RDF, the operator shall be able to        Addition of new           CCR 77        08/06/98 - LG
                   add/delete/modify address entries from the RDF              sections based on the
                   destination address list.                                   agreement between
                                                                               ICO-WG5 and NEC-WG5 at
                                                                               the 1st Post-FDR
                                                                               Meeting (Apr.98).

     7.1.5.8       7.1.5.8 It shall be possible via the RDF to activate the    Addition of new           CCR 77        08/06/98 - LG
                   distribution (to a pre-selected list - see 7.1.5.7) using   sections based on the
                   one of three mechanisms:                                    agreement between
                   1. Automatically, after completion of the report being      ICO-WG5 and NEC-WG5 at
                      generated                                                the 1st Post-FDR
                   2. On a scheduled basis to a target addressee list (i.e.    Meeting (Apr.98).
                      pre-set list of recipients from the address list)
                   3. On demand by the operator (see 7.1.5.9)

     7.1.5.9       7.1.5.9  Upon the invocation of the report generation       Addition of new           CCR 77        08/06/98 - LG
                   request or after the completion of the report generation    sections based on the
                   function, the operator shall be able to select the          agreement between
                   report, assign a list of addressees (see 7.1.5.7), and      ICO-WG5 and NEC-WG5 at
                   send it to the destination(s) using either of the           the 1st Post-FDR
                   techniques from 7.1.5.6                                     Meeting (Apr.98).

    7.1.5.10       7.1.5.10  The NMS shall log a record at the conclusion of   Addition of new           CCR 77        08/06/98 - LG
                   processing the report distribution request (success or      sections based on the
                   otherwise).                                                 agreement between
                                                                               ICO-WG5 and NEC-WG5 at
                                                                               the 1st Post-FDR
                                                                               Meeting (Apr.98).
</TABLE>

ICO SERVICES LTD CONFIDENTIAL                07/12/98                     Page 3
<PAGE>   1501
<TABLE>
<S>                <C>                                                         <C>                       <C>           <C>
    6.43.1.1       The SBS shall have capability to perform link monitoring    Change due to the fact    CCR 67        03/07/98 - RW
                   on each return path of each dedicated channel allocation    that the SBS does not
                   and to receive reports from the UT of link monitoring of    monitor forward path,
                   each forward path of each dedicated channel allocation.     this is the job of the
                                                                               UT.

    7.2.2.14       7.2.2.14 The NMS shall support scheduled configuration      Addition of the           CCR 78        08/06/98 - LG
                   change.                                                     function, Plan builder
                                                                               function for work Order
                                                                               management, to the
                                                                               LINK-NMS

   7.2.2.14.1      7.2.2.14.1 The NMC and SAN-OSS shall support scheduled      Addition of the           CCR 78        08/06/98 - LG
                   configuration changes where the change is deferred to a     function, Plan builder
                   selected time. The change process shall be as follows:      function for work Order
                                                                               management, to the
                                                                               LINK-NMS

   7.2.2.14.2      7.2.2.14.2  The NMS shall support a Plan Builder function   Addition of the           CCR 78        08/06/98 - LG
                   (PBF) at LINK-NMS and SAN-NMS, which enables Work Orders    function, Plan builder
                   (WO) to be grouped such that they are automatically         function for work Order
                   created for execution by the NMS. Instances of these        management, to the
                   grouped WO's shall be referred to as "Plans."               LINK-NMS

  7.2.2.14.2.1     7.2.2.14.2.1  The NMS operator shall be able to create      Addition of the           CCR 78        08/06/98 - LG
                   Plans using the pre-defined Plan templates off-line via a   function, Plan builder
                   PC (see 7.2.2.14.2.3).                                      function for work Order
                                                                               management, to the
                                                                               LINK-NMS

  7.2.2.14.2.2     7.2.2.14.2.2  The PBF shall be responsible for processing   Addition of the           CCR 78        08/06/98 - LG
                   the grouped WO instances with the related task data         function, Plan builder
                   contained in the Plan File after the Planner has            function for work Order
                   completed creation of the Plan.                             management, to the
                                                                               LINK-NMS
</TABLE>

ICO SERVICES LTD CONFIDENTIAL              07/12/98                       Page 4
<PAGE>   1502
<TABLE>
<S>                <C>                                                         <C>                       <C>           <C>
  7.2.2.14.2.3     7.2.2.14.2.3  The grouping of WOs via the PBF shall be as   Addition of the           CCR 78        08/06/98 - LG
                   follows                                                     function, Plan builder
                   1.Each Plan shall be captured as an EXCEL spreadsheet       function for work Order
                   using off-line PC. The spreadsheet shall list the           management, to the
                   associated WOs populated by the Planner required to         LINK-NMS
                   undertake a specific Plan (e.g. system-wide upgrade).
                   2. The format of the EXCEL Plan Template file shall be
                   determined by NEC
                   3. The PBF shall receive the EXCEL Plan file via an
                   option on the NMS GUI.
                   4. The PBF shall provide parsing in order to validate the
                   data into the "Plan file" and populate the relevant
                   Schedule, WO and Task data based on the WO defined by the
                   Plan.

    9.3.4.4.1      3 Satellite, 17 delay classes per satellite                 Removal of Brackets       CCR 25              PP

    6.11.1.4       If the system load exceeds a configurable percentage of     Removal of Brackets on    CCR 30              RW
                   the total capacity the SBS shall offer diversity based on   "configurable"
                   azimuth and elevation of satellites seen by the UT.

   6.53.2.2.1      The IGF shall meet the reference performance level as       IGFR change               CCR 71              RW
                   defined below.  The reference performance level is
                   defined as the C/No required at the SAN demodulator
                   interface, excluding interference, for a bit error, a
                   residual bit error or a frame erasure rate (whichever
                   appropriate) corresponding to the reference rate.  This
                   reference sensitivity is specified in Tables 6-10, 6-11
                   and 6-12, according to the type of channel and the
                   propagation condition.

   6.53.2.2.2      REPLACE TABLE 6-10 (REF CCR 71 Ver. 2)                      IGFR change               CCR 71              RW

   6.53.2.2.3      REPLACE TABLE 6-11 (REF CCR 71 Ver. 2)                      IGFR change               CCR 71              RW

  6.53.2.2.5.1     The performance values in Tables 6-10, 6-11 and 6-12 are    IGFR change               CCR 71              RW
                   equal to simulated performance of state of the art
                   demodulation algorithms which are implementable within
                   the constraints of the provided Channel Units, plus an
                   implementation margin of 0.6 dB.
</TABLE>

ICO SERVICES LTD CONFIDENTIAL                07/12/98                     Page 5
<PAGE>   1503
<TABLE>
<S>                <C>                                                         <C>                       <C>           <C>
   6.53.2.2.6      DELETED                                                     IGFR change               CCR 71              RW

   6.53.2.2.7      The performance values are to be achieved for all           IGFR change               CCR 71              RW
                   channels with 3-sigma, Gaussian distributed frequency
                   errors of up to +/- 43 Hz which are random timeslot-to-
                   timeslot, and with 3-sigma, Gaussian distributed input
                   signal timing errors of up to +/- 14 usec which are
                   random timeslot-to-timeslot.

   6.53.2.2.8      The RACH performance values are to be achieved with a       IGFR change               CCR 71              RW
                   maximum input frequency uncertainty of +/- 2500 Hz and a
                   maximum timing uncertainty of +/- 2 msec.

   6.53.2.2.9      All demodulators shall recover to steady state              IGFR change               CCR 71              RW
                   performance within 2 seconds after a step change of up to
                   125 Hz and 25 micro usec, in addition to the steady state
                   errors defined in 6.53.2.2.7.

   6.53.2.2.10     Referring to Tables 6-10, 6-11, and 6-12, Ricek_fd is a     IGFR change               CCR 71              RW
                   Ricean channel with rice factor k dB and Doppler
                   bandwidth +/- fd Hz and Class_fd is a classical
                   (Rayleigh) Doppler channel with Doppler bandwidth +/- fd
                   Hz, as specified in ICO 05.05.

   6.53.2.2.11     FER for RACH is derived from frame errors detected by the   IGFR change               CCR 71              RW
                   CRC plus frame errors not detected by CRC. FER for all
                   other channels is defined as CRC FER.

   6.53.2.2.12     The reference levels specified relates to the IF input of   IGFR change               CCR 71              RW
                   the IF distribution equipment.

   6.53.2.3.2      REPLACE TABLE 6-13 (REF CCR 71 Ver. 2)                      IGFR change               CCR 71              RW
</TABLE>

ICO SERVICES LTD CONFIDENTIAL              07/12/98                       Page 6
<PAGE>   1504
[ICO LOGO]                                                CHANGE ORDER
                          IGF SUPPLY AGREEMENT            NO: 8
                      CONTRACT NO ICOO97 - 1016/GW        DATE: 17 NOVEMBER 1998

In accordance with clause 9 of the Supply Agreement dated March 3rd 1997 between
NEC Corporation and ICO Global Communications Holdings BV, the Agreement is
hereby amended as follows:

________________________________________________________________________________
Amended Clauses                    None

________________________________________________________________________________
Amended Schedules                  Schedule 13 - IGFR

________________________________________________________________________________
Amended Annexes                    None

________________________________________________________________________________
Amended Price                      None

________________________________________________________________________________
Other Amendments                   None

________________________________________________________________________________
Reference  Correspondence          CCR No. 85: SA0974/WGB/19980713/GW

________________________________________________________________________________

This Change Order No 8 will now form part of the Supply Agreement dated March
3rd 1997 between the parties as from the date of this Change Order and shall
be governed by and construed in accordance with the laws of England.

Except for the changes set out above, this Change Order No 8 marks no further
amendments or modifications to the Agreement.

________________________________________________________________________________

Signed for and on behalf of               Signed for and on behalf of
ICO GLOBAL COMMUNICATIONS HOLDINGS BV     NEC CORPORATION

/s/ G.S. Titzer                           /s/ Takao Nishizawa
----------------------------------        --------------------------------------
Supervising Officer                       Contractor's Authorised Representative
                                          Takao Nishizawa
                                          General Manager, Europe Div.

17/11/98                                  30 Nov. 1998
------------                              ------------
Date                                      Date

<PAGE>   1505
                               NEC PROGRAM OFFICE
                                  ICO PROJECT

5th Floor, Horatio House
77-85 Fulham Palace Rd
LONDON
W6 8JC
UK
Tel: +44 (0) 181 600 4200
Admin Office Fax: +44 (0) 181 600 4290
Contract Office Fax: +44 (0) 181 600 4295

                                DOCUMENT HEADER

DOCUMENT TITLE/SUBJECT & INDEX REFERENCE

ICONET Ground Facilities Requirements Chapter 7 Review

________________________________________________________________________________
ISSUER INFORMATION              ICO PROJECT DOCUMENT NUMBER
ISSUED BY              DATE:       WORKGROUP        TYPE       YR   NUMBER   REV

Bertil Westberg       22/4/98         WG3            CR         8    0142     B
________________________________________________________________________________
________________________________________________________________________________
WORKGROUP                          DOCUMENT TYPE

WG3 - ETL (MSSC)                   CR = CHANGE REQUEST
________________________________________________________________________________

________________________________________________________________________________
                                                                 ISSUEING GROUP
PROJECT OFFICE USE        DATE        8.3 DOS FILENAME           DOCUMENT NUMBER

                                                 -.DOC
________________________________________________________________________________

________________________________________________________________________________
SECURITY LEVEL                   ADDITIONAL NOTES IF REQUIRED

/ / CONFIDENTIAL
/ / RESTRICTED
/ / NON-RESTRICTED
________________________________________________________________________________

/ /  Attached is a copy of a document, which is issued to you under the Data &
     Documentation Control procedure WG8-PL-60002-A1. You will receive all
     subsequent updates on this document. It is your responsibility to maintain
     the documentation to its latest status. Please advise the NEC Project
     Office Documentation Manager if you do not require further updates.

/ /  Attached is a copy of the updated document. Please update & destroy any
     previous issued copies, or advise the NEC Project Office Documentation
     Manager if you do not require any further updates.

<PAGE>   1506
                               NEC PROGRAM OFFICE
                                   ICO PROJECT

5th Floor, Horatio House
77-85 Fulham Palace Rd
LONDON
W6 8JC
UK
Tel : +44 (0) 181 600 4200
Admin Office Fax : +44 (0) 181 600 4290
Contract Office Fax : +44 (0) 181 600 4295

                                 DOCUMENT HEADER

DOCUMENT TITLE / SUBJECT & INDEX REFERENCE

PROPOSAL FOR ICO INTERWORKING  (II) G0 TEST  CAMPAIGN SUPPORT

<TABLE>
<CAPTION>
ISSUER INFORMATION                     ICO PROJECT DOCUMENT NUMBER
ISSUED BY             DATE:               WORKGROUP         TYPE       YR       NUMBER      REV
<S>                   <C>                 <C>               <C>       <C>       <C>         <C>
Adrian Streeter       30/4/98                WG3            Doc        97       370191       H
</TABLE>

WORKGROUP                                                        DOCUMENT TYPE
WG3 - ETL (MSSC)

<TABLE>
<CAPTION>

PROJECT OFFICE USE    DATE        8.3 DOS FILENAME      ISSUEING GROUP DOCUMENT
                                                             NUMBER
<S>                               <C>                   <C>
                                        .DOC
</TABLE>

SECURITY LEVEL                                    ADDITIONAL NOTES IF REQUIRED

/ / CONFIDENTIAL

/ / RESTRICTED

/ / NON - RESTRICTED

/X/ Attached is a copy of a document, which is issued to you under the Data &
Documentation Control procedure WG8-PL-60002-A1. You will receive all subsequent
updates on this document. It is your responsibility to maintain the
documentation to its latest status. Please advise the NEC Project Office
Documentation Manager if you do not require further updates.

/ / Attached is a copy of the updated document. Please update & destroy any
previous issued copies, or advise the NEC Project Office Documentation Manager
if you do not require any further updates.
<PAGE>   1507
[ERICSSON LOGO]

                                  PROPOSAL FOR
                              ICO INTERWORKING (II)
                            G0 TEST CAMPAIGN SUPPORT

<TABLE>
<CAPTION>
<S>                                                                     <C>
1.0 INTRODUCTION........................................................  2
2.0 PROPOSAL............................................................  2
3.0 SCOPE OF WORK.......................................................  2
4.0 APPLICABLE DOCUMENTS................................................  2
5.0 SERVICES AND DELIVERABLES...........................................  2
6.0  PROGRAM MANAGEMENT AND IMPLEMENTATION..............................  2
7.0 CHANGE PROCESS......................................................  3
8.0 ROLES AND RESPONSIBILITIES..........................................  3
   8.1 COMSAT Roles and Responsibilities................................  3
     8.1.1 Subcontractor to Ericsson....................................  3
     8.1.2  G0 Test Execution Team......................................  3
     8.1.3 Test Planning and Test review................................  3
   8.2 ETL Roles and Responsibilities...................................  3
9.0 GO TESTING SUPPORT..................................................  4
10.0 SCHEDULE...........................................................  4
APPENDIX A  SOW.........................................................  5
   A1  SAN/UT Interworking Campaign (G0)................................  5
     A1.1 G0 Program Management:........................................  5
     A1.2 G0 Test Script:...............................................  5
     A1.3 G0 Test Review:...............................................  5
     A1.4 G0 Technical Meetings.........................................  5
     A1.5 G0 On Site Test Support: Phase A..............................  5
     A1.7 G0 Post Test Support: Phase A.................................  6
     A1.8 G0 On Site Test Support: Phase B..............................  6
     A1.10  Option: Test with UT suppliers..............................  6
     A1.11 Shipping Installation........................................  6
APPENDIX B  Test Equipment..............................................  7
APPENDIX C  HPN G0 Test Compliance Matrix...............................  8
</TABLE>

                                     Page 1
<PAGE>   1508
[ERICSSON LOGO]

1.0      INTRODUCTION

         This Proposal defines the technical and management requirements for
         supporting the ICO Interworking (II) Test Campaign, referred to as G0,
         on a Time and Material basis. The main Deliverables of the HPN G0
         Supply Subcontract are Qualified Test Support Engineers to support
         planning, testing, TSD Documentation, and reporting associated with
         testing HPN between the SAN and UT Breadboard/Field Test UT.

2.0      PROPOSAL

         This proposal comprises this main text plus Annexes listed below:

<TABLE>
<CAPTION>
              ANNEX                        DESCRIPTION
              -----                        -----------
<S>                                        <C>
              A                            Statement of Work
              B                            Test Equipment
              C                            HPN Test Configuration
              D                            HPN G0 Test Compliance Matrix
</TABLE>

3.0      SCOPE OF WORK

         This work includes On Site Test Support for the G0 Test Campaigns. It
         includes On Site Engineering Support, travel and participation in
         various planning meetings and review boards, and report preparation. It
         includes developing test scripts for COMSAT developed HPN test
         equipment and for Shipping and Installation of HPN Test equipment at
         the G0 Test site. The WBS for this work is given in Annex A.

4.0      APPLICABLE DOCUMENTS

         The documents applicable to the effort in the SOW are as follows:

         -        ICO First Integration Phase: EN-II-ICO-TN/000085

         -        Test Requirements Documents for the SAN/UT Interworking
                  Campaign (G0.x)

         -        HPN Subsystem Simulator Requirements Document. No. 370187rev.
                  C

         -        HPN Subsystem Simulator Design Summary Document No. 370188
                  rev. C

         -        Also add the following document to list: Proposal for HPN
                  Subsystem Simulator to be used for the G0 and G0' test
                  campaigns No. 370193 rev. C

5.0      SERVICES AND DELIVERABLES Time and Materials test support.

         -        Test scripts for COMSAT Developed HPN equipment to HNS
                  (includes TSD documentation and executable scripts. Scripts
                  and TSD documentation will be updated as necessary to include
                  TRD/TPD changes).

         -        Test reports for COMSAT Developed HPN equipment to HNS.

         -        Deliver, install, and setup the HPN Simulator at HNS in
                  Germantown, Maryland

         -        Time and Materials for Meetings

6.0      PROGRAM MANAGEMENT AND IMPLEMENTATION

         HPN G0 testing will be managed by a G0 Test Manager reporting
         internally to the COMSAT HPN Project Manger. The HPN G0 Test Manager
         will be ETL/ICO's point of contact for all matters concerning G0
         testing.

                                     Page 2
<PAGE>   1509
[ERICSSON LOGO]

7.0      CHANGE PROCESS

         COMSAT will provide ETL with time and material estimates to changes in
         accordance with the change proposed by NEC Team/ICO for Test Case
         Changes, Re-Testing, Rescheduling Tests, or other changes pertaining to
         G0 testing.

8.0      ROLES AND RESPONSIBILITIES

         8.1      COMSAT ROLES AND RESPONSIBILITIES

                  8.1.1    Subcontractor to Ericsson

                           -        COMSAT is a Subcontractor to Ericsson

                  8.1.2     G0 Test Execution Team

                           -        Develop test scripts for COMSAT equipment
                                    and deliver them to HNS (Sub Documentor role
                                    for this specific task).

                           -        Technical Support to operate COMSAT
                                    equipment during the G0 Integration and
                                    Testing campaigns ( Phases A and B).

                           -        Propose and supply solutions as required to
                                    deal with anomalies, including both
                                    short-term fixes and long-term corrections
                                    as appropriate.

                           -        Review and supply comments as required to a
                                    G0 Test Facility ICD. HNS has the prime
                                    responsibility for this ICD.

                  8.1.3    Test Planning and Test review

                           -        Attend Pre and Post test meetings

                           -        Prepare HPN Test Report and deliver to HNS
                                    (Sub Documentor role for this specific task)

                           -        Review test documents

                           -        Review test results

         8.2      ETL ROLES AND RESPONSIBILITIES

         -        Obtain permission and authorization for the COMSAT's staff to
                  access the test site as needed.

         -        Ensure necessary furniture and test floor space for the HPN
                  test equipment

         -        Provide the name, address, telephone and fax numbers of ICO's
                  site co-ordinator.

         -        Provide cabling between the HPN subsystem and other
                  subsystems.

         -        Provide 120 VAC power and cabling to the HPN Test Equipment.
<PAGE>   1510
9.0      GO TESTING SUPPORT In accordance with Annex-A, SOW

10.0     SCHEDULE
         SAN- UT Interworking (G0) Test Program Milestones

<TABLE>
<CAPTION>

              MILESTONE                                  DATES
              ---------                                  -----
<S>                                                      <C>
              Kickoff and A1 Coordination Meeting        Jan  29/30 1998

              A1 Test Script Coordination Meeting        March 30, 1998
              (Germantown)

              A1/A2 Test Script (Paris)                  May 11, 1998

              A2 Test Script Coordination Meeting        July 13, 1998
              (Germantown)

              B Coordination Meeting (Paris)             Oct 12, 1998

              B Test Script Coordination Meeting         Dec 14, 1998
              (Germantown)

              B Test Script Coordination Meeting         Jan 11, 1999
              (Germantown)

              On Site Test Support:
              Phase A                                    Aug 3  - Sept 3 1998
              Phase B                                    May 17-31, 1999

              Option 1 Test Support Windows              June 1, 1999 - Open Date

              Post Test Support:
              Phase A                                    Sept 3-30, 1998
              Phase B                                    June 1-30, 1998
</TABLE>

Notes:

The above schedule has been coordinated with HNS. This schedule is contingent on
the Change Order (CO) being agreed by 15 May 1998 by all parties.

The HPN schedule reflects the base line schedule for Management and
Implementation of the project at the time of contract signature. It will be
revised, throughout the life of the project, to reflect changing schedule
requirements. The HPN Simulator is currently scheduled to be available for G0
testing on August 1, 1998.

                                     Page 4
<PAGE>   1511
[ERICSSON LOGO]

APPENDIX A  SOW

A1       SAN/UT INTERWORKING CAMPAIGN (G0)

         Purpose

         The purpose of the G0 Test Campaign for HPN is to validate the AI
         specification and verify the implementation in both the UT and HPN
         subsystem.. COMSAT Engineers will execute tests, diagnose problems and
         resolve issues regarding HPN. COMSAT will not act as or assume the
         responsibilities of the "Prime Integrator" or "Documentor" as defined
         in ICO document "EN -II-TN/000085 (except where noted). COMSAT will
         also participate as a Test Team Member by attending various technical
         meetings.

         COMSAT's proposal for G0 testing is based on the following two
         documents: ICO First Integration Phase: EN-II-ICO-TN/000085 Test
         Requirements Documents for the SAN/UT Interworking Campaign (G0.x)

         The following sections define the scope of work for COMSAT and list
         assumptions reflected in this cost proposal.

         A1.1 G0 Program Management:

         This task is for overall management of the HPN G0 Test campaign

         A1.2 G0 Test Script:

         This task is for the preparation of test scripts for the HPN equipment.
         These scripts will be delivered to HNS for integration into the
         combined G0 test scripts. This includes both documentation (TSD) and
         executable scripts.

         A1.3 G0 Test Review:

         This work includes Test Document Reviews, Test Coordination meetings
         and Test Control Board Meetings. It is assumed that each meeting will
         be attended by 2 COMSAT Engineers. The schedule for these meetings is
         given in the G0 proposal.

         A1.4 G0 Technical Meetings

         This work supports Technical Interchange Meetings. It is assumed that
         these meetings take place at HNS in Germantown, Maryland. One meeting
         will be held at Wavecom Facilities in Paris for each of the Phase A and
         Phase B Campaigns.

         A1.5 G0 On Site Test Support: Phase A

         This work supports actual G0 testing at HNS's facility in Germantown.
         It is assumed this testing requires two COMSAT Engineers for a 2 week
         period. It also includes fixing defects in the HPN Simulator that may
         occur during testing. COMSAT will try to recreate reported problems in
         its Clarksburg facility and will give top priority to fixing defects.

                                     Page 5
<PAGE>   1512
         A1.7 G0 Post Test Support: Phase A

         This work includes reviewing and commenting on the Phase A test report.

         A1.8 G0 On Site Test Support: Phase B

         This work supports actual G0 testing at HNS's facility in Germantown.
         It is assumed this testing requires two COMSAT Engineers for a 2 week
         period. It also includes fixing defects in the HPN Simulator that may
         occur during testing. COMSAT will try to recreate reported problems in
         its Clarksburg facility and will give top priority to fixing defects.

         A1.10 Option: Test with UT suppliers

         This work is for coordinating with UT Suppliers, preparing test
         documents, conducting tests, and preparing test reports.

         A1.11 Shipping Installation

         This work includes the shipping of the HPN Simulator from COMSAT's
         Clarksburg, Maryland facility to the HNS facility in Germantown,
         Maryland and Installation in the HNS Germantown facility.

                                     Page 6
<PAGE>   1513
[ERICSSON LOGO]

APPENDIX B  TEST EQUIPMENT

              STANDARD TEST EQUIPMENT REQUIRED AT G0 TEST FACILITY

COMSAT will rent or lease the following standard lab equipment:

1.       HP 436A Power Meter

2.       HP 8484A Power Sensor

3.       HP 8657B L-Band Signal Generator

4.       HP 8566B L-Band Spectrum Analyzer

5.       HP ThinkJet Plotter (GPIB)

6.       Tek TDS540 Digital Oscilliscope

7.       Micronetics NOD 5108 Noise Generator

8.       HP 54201D DIgitizing Oscilliscope

Note that the G0 test facility must incorporate a version of the SCS providing
sufficient white noise power to meet the HPN Testing requirements specified in
Issue 1.4 of the ICO/SAN Interworking Test Requirements Document.

               SPECIAL TEST EQUIPMENT TO BE PROVIDED BY ETL/COMSAT

HPN Subsystem Simulator

                                     Page 7
<PAGE>   1514
APPENDIX C  HPN G0 TEST COMPLIANCE MATRIX

The compliance matrix of tests to be conducted is shown below. Note that several
test subcases will be developed and performed for each test.

         PARTIES.

<TABLE>
<CAPTION>
TEST ID         TEST TITLE                              CLASS     COMPLIANT       COMMENTS
-------         ----------                              -----     ---------       --------
<S>             <C>                                     <C>       <C>             <C>
HPN_1_1         High Penetration Broadcast Burst         A1        Yes             HPNSS

HPN_1_2         High Penetration Burst                   A1        Yes             HPNSS

HPN_1_3         High Penetration Acknowledgment Burst    A1        Yes             HPNSS

HPN_2_1         Idle Mode HP Operation                   A1        Yes             HPNSS

HPN_3_1         Successful Transfer using single         A1        Yes             HPNSS
                dual-burst

HPN_3_2         Successful transfer using multiple       A1        Yes             HPNSS
                dual-bursts

HPN_3_3         Loss of HPN Acknowledge Frame            A1        Yes             HPNSS
</TABLE>

                                     Page 8
<PAGE>   1515
                                                            IGF SUPPLY AGREEMENT
                                                    CONTRACT NO ICOO97 - 1016/GW
                                                              CHANGE ORDER NO. 4
                                                                    ATTACHMENT 3

             NEC DOCUMENT B70097A5: ICONET INTEGRATION G0 SCHEDULE

<PAGE>   1516
                         ICONET Integration GO Schedule

<TABLE>
<CAPTION>

ID  TASK NAME                                           DURATION  START         FINISH        PREDECESSORS  A   S   O   N   D
---------------------------------------------------------------------------------------------------------------------------------
<S> <C>                                                 <C>       <C>           <C>           <C>           <C> <C> <C> <C> <C>
49     Prepare A2 Test Scripts Document                    88d    Thu 19/03/98  Mon 20/07/98  19FS-47d

50     Deliver A2 TSD                                       0d    Wed 19/08/98  Wed 19/08/98  49,58SF-23d

51

52  PRE-REQUISITES                                         35d    MON 15/06/98  MON 03/08/98

53     SAN Simulator rel. S2.0 available to AI v4.0         0d    Mon 03/08/98  Mon 03/08/98  27FS+225d

54     UTB release for A2 testing available (TBD)           0d    Mon 03/08/98  Mon 03/08/98

55     G0 scripts available for A2                          0d    Mon 15/06/98  Mon 15/06/98  33

56  TESTING                                               156d    TUE 16/06/98  TUE 19/01/99

57     Test A2 SANS-UTS scripts (HNS internal)             40d    TUE 16/06/98  Mon 10/08/98  55

58     TEST PHASE A2                                       22d    Mon 21/09/98  Tue 20/10/98  41,53,54,57

59     Prepare A2 Test Report                              22d    Wed 21/10/98  Thu 19/11/98  58

60     Deliver A2 Test Report (Preliminary)                 0d    Thu 19/11/98  Thu 19/11/98  59

61     Deliver A2 Test Report (Formal)                      0d    Tue 19/01/99  Tue 19/01/99  60FS+43d

62

63  HPN A PHASE TESTING                                    24d    THU 30/07/98  TUE 01/09/98

64     HPN installed & checked out in HNS lab for G0        2d    Thu 30/07/98  Fri 31/07/98

65     COMSAT & Wavecom test HPN                           22d    Mon 03/08/98  Tue 01/09/98   40,64

66

67  B PHASE TESTING                                       271d    MON 03/08/98  MON 16/08/99

68     DOCUMENTATION & PREPARATION                        130d    MON 03/08/98  MON 01/02/99

69        Prepare B TSD: initial (during HPN A1 phase)     22d    Mon 03/08/98  Tue 01/09/98   65SS

70        Prepare B TSD: complete                          73d    Wed 21/10/98  Fri 29/01/99   58

71        Deliver TSD                                       0d    Mon 01/02/99  Mon 01/02/99   70,79-SF-20d

72
==================================================================================================================================
</TABLE>

<TABLE>
<CAPTION>
                                                                                         1998
                                                       ---------------------------------------------------------------------------
ID  TASK NAME                                          J      F      M     A     M     J      J      A     S     O     N     D
----------------------------------------------------------------------------------------------------------------------------------
<S> <C>                                                <C>    <C>    <C>   <C>   <C>   <C>    <C>    <C>   <C>   <C>   <C>   <C>
49     Prepare A2 Test Scripts Document                              19/03                    20/07

50     Deliver A2 TSD                                                                                19/08

51

52  PRE-REQUISITES

53     SAN Simulator rel. S2.0 available to AI v4.0                                                  03/08

54     UTB release for A2 testing available (TBD)                                                    03/08

55     G0 scripts available for A2                                                     15/06

56  TESTING

57     Test A2 SANS-UTS scripts (HNS internal)                                         13/06         16/08

58     TEST PHASE A2                                                                                       21/09 20/10

59     Prepare A2 Test Report                                                                                    20/10 19/11

60     Deliver A2 Test Report (Preliminary)                                                                            19/11

61     Deliver A2 Test Report (Formal)

62

63  HPN A PHASE TESTING

64     HPN installed & checked out in HNS lab for G0                                          30/07-31/07

65     COMSAT & Wavecom test HPN                                                                    03/08 01/09

66

67  B PHASE TESTING

68     DOCUMENTATION & PREPARATION

69        Prepare B TSD: initial (during HPN A1 phase)                                              03/08 01/09

70        Prepare B TSD: complete                                                                               21/10

71        Deliver TSD

72
==================================================================================================================================
</TABLE>

<TABLE>
<CAPTION>
                                                                                1999
                                                       -----------------------------------------------
ID  TASK NAME                                          J     F     M     A     M     J     J     A
------------------------------------------------------------------------------------------------------
<S> <C>                                                <C>   <C>   <C>   <C>   <C>   <C>   <C>   <C>
49     Prepare A2 Test Scripts Document

50     Deliver A2 TSD

51

52  PRE-REQUISITES

53     SAN Simulator rel. S2.0 available to AI v4.0

54     UTB release for A2 testing available (TBD)

55     G0 scripts available for A2

56  TESTING

57     Test A2 SANS-UTS scripts (HNS internal)

58     TEST PHASE A2

59     Prepare A2 Test Report

60     Deliver A2 Test Report (Preliminary)

61     Deliver A2 Test Report (Formal)                  19/01

62

63  HPN A PHASE TESTING

64     HPN installed & checked out in HNS lab for G0

65     COMSAT & Wavecom test HPN

66

67  B PHASE TESTING

68     DOCUMENTATION & PREPARATION

69        Prepare B TSD: initial (during HPN A1 phase)  29/01

70        Prepare B TSD: complete                             01/02

71        Deliver TSD

72
======================================================================================================
</TABLE>

B70097a5.MPP                                                             Page 3
<PAGE>   1517
[ICO LOGO]                                                CHANGE ORDER
                                                          NO:  8

               IGF SUPPLY AGREEMENT
               CONTRACT NO ICOO97 - 1016/GW
                                                          DATE: 17 NOVEMBER 1998

In accordance with clause 9 of the Supply Agreement dated March 3rd 1997 between
NEC Corporation and ICO Global Communications Holdings BV, the Agreement is
hereby amended as follows:

<TABLE>
<S>                                    <C>
Amended Clauses                        None

Amended Schedules                      Schedule 13 - IGFR

Amended Annexes                        None

Amended Price                          None

Other Amendments                       None

Reference Correspondence               CCR No. 85; SA0974/WGB/19980713/GW
</TABLE>

This Change Order No 8 will now form part of the Supply Agreement dated March
3rd 1997 between the parties as from the date of this Change Order and shall be
governed by and construed in accordance with the laws of England.

Except for the changes set out above, this Change Order No 8 makes no further
amendments or modifications to the Agreement.

<TABLE>
<S>                                               <C>
Signed for and on behalf of                       Signed for and on behalf of
ICO GLOBAL COMMUNICATIONS HOLDINGS BV             NEC CORPORATION

GARY TITZER                                       TAKAO NISHIZAWA
--------------------------------------            --------------------------------------
Supervising Officer                               Contractor's Authorised Representative
                                                  Takao Nishizawa
                                                  General Manager, Europe Div.

17/11/98                                          30 Nov. 1998
------------------                                ----------------
Date                                              Date
</TABLE>
<PAGE>   1518
                               NEC PROGRAM OFFICE
                                   ICO PROJECT

5th Floor, Horatio House
77-85 Fulham Palace Rd
LONDON
W6 8JC
UK
Tel : +44 (0) 181 600 4200
Admin Office Fax : +44 (0) 181 600 4290
Contract Office Fax : +44 (0) 181 600 4295

                                 DOCUMENT HEADER

DOCUMENT TITLE / SUBJECT & INDEX REFERENCE

ICONET Ground Facilities Requirements Chapter 7 Review

<TABLE>
<CAPTION>
ISSUER INFORMATION                                               ICO PROJECT DOCUMENT NUMBER
ISSUED BY                                          DATE:            WORKGROUP        TYPE      YR     NUMBER       REV
<S>                                                <C>           <C>                 <C>      <C>     <C>          <C>
Bertil Westberg                                    22/4/98             WG3            CR       8       0142         B
</TABLE>

WORKGROUP                                          DOCUMENT TYPE
WG3 - ETL (MSSC)                                   CR = CHANGE REQUEST

<TABLE>
<S>                                       <C>             <C>                               <C>
PROJECT OFFICE USE                        DATE            8.3 DOS FILENAME                  ISSUING GROUP DOCUMENT
                                                                                            NUMBER
                                                            ---.DOC
</TABLE>

<TABLE>
<S>                                        <C>
SECURITY LEVEL                              ADDITIONAL NOTES IF REQUIRED
/ /  CONFIDENTIAL
/ /  RESTRICTED
/ /  NON - RESTRICTED
</TABLE>

/ /      Attached is a copy of a document, which is issued to you under the Data
& Documentation Control procedure WG8-PL-60002-A1. You will receive all
subsequent updates on this document. It is your responsibility to maintain the
documentation to its latest status. Please advise the NEC Project Office
Documentation Manager if you do not require further updates.

/ /      Attached is a copy of the updated document. Please update & destroy any
previous issued copies, or advise the NEC Project Office Documentation Manager
if you do not require any further updates.

<PAGE>   1519
                            ICO DELIVERABLE DOCUMENT

IGFR CHAPTER 7                                                   NEC CORPORATION

1.       1. DUMMY

2.       2. DUMMY

3.       3. DUMMY

4.       4. DUMMY

5.       5. DUMMY

6.       6. DUMMY

                          NEC Property - CONFIDENTIAL
<PAGE>   1520
                            ICO DELIVERABLE DOCUMENT

IGFR CHAPTER 7                                                   NEC CORPORATION

7. NETWORK MANAGEMENT SYSTEM AND LEGAL INTERCEPTION SYSTEM

7.1. GENERAL REQUIREMENTS

7.1.1. REQUIREMENTS FOR NEW ELEMENTS

         7.1.1.1. Section 7.1 covers general functionality to be located at the
         SAN-OSS and NMC. The functionality provided through the individual OAMs
         is described in Section 7.8. However, in the case of the development of
         new elements it is recommended that the requirements of this Section be
         taken into account.

7.1.2. NETWORK MANAGEMENT

         7.1.2.1. It is a general requirement that the Network Management System
         complies to GSM-12 Standards and refers to TMN Standards, whenever
         possible.

         7.1.2.2. The NMS consists of:

                  1.   Network Management Centre (NMC).

                  2.   Backup NMC.

                  3.   SAN Operations Support System (SAN-OSS) at each SAN,
                       including the Operational Test and Development Facility
                       (OT&DF) (refer to Section 12)

                  4.   Network Elements Operation and Maintenance (OAM).

         7.1.2.3. The NMS shall provide the following management services for
         the ICO network:

                  1.   Configuration Management.

                  2.   System Administration

                  3.   Fault Management.

                  4.   Performance Management.

                  5.   Security Management.

                  6.   Accounting Management.

                  7.   Trouble Ticket Management.

         7.1.2.4. The NMS shall provide management services for the following:

                  1.   The NMC equipment and Back-up NMC (namely the main NMS
                       platform including the Link-OS)

                  2.   Satellite Resource Management Centre (SRMC) and Back-up
                       SRMC.

                  3.   Node Operation System (Node-OS) which manages the
                       following network elements and associated services:

                       a.  Integrated Mobile Satellite Switching Centre and
                           Visitor Location Register (MSSC/VLR).

                       b.  Equipment Identity Register (EIR)

                       c.  IGF Messaging Platform.

                       d.  Home Location Register (HLR).

                       e.  Authentication Centre (AuC).

                       f.  Interworking Location Register.

                          NEC Property - CONFIDENTIAL
<PAGE>   1521
                            ICO DELIVERABLE DOCUMENT

IGFR CHAPTER 7                                                   NEC CORPORATION

                       g.  No.7 signalling functions supported by No. 7
                           signalling points (i.e. MSSC/VLR, HLR, AuC, EIR, ILR,
                           IGF Messaging Platform).

                       h.  Intelligent Network related network elements (e.g.
                           Service Control Point (SCP)) (F/R)

                  4.   Satellite Access Node-OSS.

                  5.   Administration Data Centre.

                  6.   High Power Notification.

                  7.   Payload Command System.

                  8.   Radio Frequency Terminal (this includes the shared
                       Telemetry, Tracking and Control equipment).

                  9.   Satellite Base Station.

                       a.  Channel Unit.

                       b.  Channel Manager.

                       c.  Real Time Resource Manager.

                       d.  GPS Receiver equipment

                       e.  Ethernet switch

                  10.  Terrestrial Network Manager.

                  11.  Digital Communication Network.

                  12.  Forced Call Routing. (F/R)

         7.1.2.5. The NMS shall support multiple MMIs which can be distributed
         in multiple locations.

         7.1.2.6. The NMS shall be able to retrieve events, alarms and
         configuration reports from network elements.

         7.1.2.7. The NMS shall provide a "reach through" capability e.g. via
         X-Windows, to allow management of network elements and/or element
         management systems remotely.

         7.1.2.8. The NMS shall use a client-server architecture.

         7.1.2.9. The operating systems and protocols used for the NMS shall
         have the following features:

                  1.   controlled by an industry standard.

                  2.   commercially available with product support.

                  3.   consistent with open systems concepts.

                  4.   multiprocessing.

                  5.   compatible between the client and server.

         7.1.2.10. The DBMS and all third party application software used for
         the NMS servers shall be commercially available with product support.

         7.1.2.11. The programming languages used to develop the NMS application
         code shall have the following features:

                  1.   controlled by an industry standard.

                  2.   commercially available with product support.

                  3.   support for major hardware and software platforms.

                  4.   support for object oriented programming.

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                  5.   supported with development and management tools which are
                       commercially available with product support

         7.1.2.12. The NMS monitoring capability shall support :

                  1.   event-driven philosophy

                  2.   polling

                  3.   event-driven and polling

                  4.   the monitoring strategy shall be user selectable, where
                       possible.

         7.1.2.13. The NMS architecture shall be such that future network
         elements can be harmonised for network management purposes through the
         application of standardised and recognised interfaces. For example,
         this requirement is needed to cater to two types of system
         interconnections :

                  1.   Interconnection with other network carrier management
                       systems for the exchange of network management data.

                  2.   Interconnection with new systems operated from the NMC.
                       Items which fit into this category are the Legal
                       Interception Management System, Fraud Management System,
                       Key Management System and future monitoring systems.

         7.1.2.14. Network Management related Operator actions shall be logged.

         7.1.2.15. (F/R) The NMS shall be designed to support:

                  1.   electronic documentation system;

                  2.   the EDS shall provide system diagrams, maps, etc.;

                  3.   on-line fault recovering procedure;

         EDS shall be complemented by hard-copies of all documents. Relevant
         user manuals, operator instructions, etc. shall be provided in
         electronic format to allow integration into a general EDS (e.g.:
         hypertext application).

         7.1.2.16. The NMS shall encompass a facility to enable offsite
         personnel and sites to be contacted and provided with relevant
         information (e.g. trouble tickets, maintenance instructions, etc.). It
         shall be possible to:

                  1.   support an independent e-mail/paging/alerting local and
                       geographical network provided by ICO and NEC;

                  2.   the e-mail/paging/alerting network shall be compliant
                       with industry standards for transport, encryption,
                       security, etc.;

                  3.   the e-mail/paging/alerting network shall connect all ICO
                       specified nodes;

                  4.   failure of e-mail/paging/alerting network shall not
                       impact any ICO node (e.g.: must be an independent LAN)

         7.1.2.17. The management of the ICO system is accomplished via the
         Network Management System (NMS) - elements of which exist at all ICO
         subsystems.

         7.1.2.18. The NMS is a hierarchical system with lower levels of
         management being performed by the elemental OAM.

         7.1.2.19. The information from the elemental OAMs is
         integrated/mediated where possible (e.g. the SAN-OSS) prior to being
         transported to the highest level in the NMS hierarchy - the NMC. The
         NMC also manages the communications, signalling and administrative
         links between the ICO elements.

         7.1.2.20. The NMC performs non real time functions of alarm and fault
         management, performance management, configuration management, security
         management and to a lesser degree accounting management.

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         7.1.2.21. The NMC is used to maximise ICO reliability, effectiveness,
         and responsiveness.

         7.1.2.22. The NMC provides services to the upper layers of TMN - the
         Business and Service Management layers.

         7.1.2.23. The NMC provides one major specific configuration management
         function via the Satellite Resource Management Centre (SRMC) for the
         management of ICO resources at the SANS and on the Satellite.

         7.1.2.24. The NMC incorporates SRMC elements responsible for the
         satellite channelisation.

         7.1.2.25. The NMC incorporates tools enabling operators to reconfigure
         and manage and fine tune the ICO system.

         7.1.2.26. The NMC monitors and responds to network traffic changes,
         alarms, faults etc.

         7.1.2.27. There are two NMC - the Primary NMC and a back-up NMC. NM
         data from the Network elements is transported concurrently to both NMCs
         (i.e. full functionality at both centres) the only exception being that
         the databases at the B-NMC may not be in full real-time synchronism
         with the Primary NMC databases.

         7.1.2.28. There may be a direct connection between the NMC and the
         B-NMC

         7.1.2.29. In the event of Primary NMC failure all NM operations
         (including SRMC/SRMS) are switched over to the back-up. The switchover
         is via operator command. The delay associated with the switchover is
         not to exceed [10] minutes.

         7.1.2.30. (F/R) The NMC also contains the management system for the
         ICONET (the Network Traffic Manager)

         7.1.2.31. Full NM functionality at the NMC is accessible via user
         friendly graphical user interfaces (GUIs)

         7.1.2.32. The NMC supports Application Programmable Interfaces (API's)
         which allows for system expansion.

         7.1.2.33. Subscriber tracing capability is also provided at the
         NMC/B-NMC.

         7.1.2.34. Fraud control based on monitored No.7 signalling messages
         transmitted in the ICO signalling network shall be provided at the
         NMC/B-NMC via the MSSC/VLRs and the HLRs.

         7.1.2.35. The NMC supports the NM requirements and interfaces to the
         SCC and the BDC.

7.1.3. DATA ARCHIVING

         7.1.3.1. The NMS shall support archiving of the following data:

                  1.   System performance statistics.

                  2.   Event logs.

                  3.   Alarm history.

                  4.   Trouble ticket data.

                  5.   Management Reports.

         7.1.3.2. The NMS shall provide the capability for managing long term
         archiving of data. The long-term archive shall hold a minimum of 90
         days of data storage.

         7.1.3.3. The NMS shall provide the capability to access archived data
         locally and remotely.

         7.1.3.4. Each site shall be able to maintain archiving procedures in
         isolation of other sites.

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7.1.4. APPLICATION PROGRAMMING INTERFACE

         7.1.4.1. The NMS shall supply libraries of open Application Programming
         Interfaces (APIs) for interfacing standard application programs (e.g.
         maintenance database, report generator, etc.).

7.1.5. REPORT MECHANISMS

         7.1.5.1. The NMS shall provide reports on the following:

                  1.   Performance data.

                  2.   Current status data.

                  3.   Diagnostic Tests.

                  4.   Trouble Ticket reports.

                  5.   Alarm data.

                  6.   Event log data.

         7.1.5.2. The NMS shall be able to produce custom reports with differing
         levels of detail suitable for management, technical and operational
         staff.

         7.1.5.3. The NMS shall be able to produce reports automatically or on
         an ad hoc basis.

         7.1.5.4. The NMS shall be able to provide reports in the following
         manner:

                  1.   MMI window.

                  2.   Printer.

                  3.   Disk File.

         7.1.5.5. It shall be possible to export the generated report file from
         the NMS platform into a universal PC based environment.

7.1.6. SOFTWARE UPGRADES

         7.1.6.1. The NMS shall provide operator facilities to support software
         download to network elements which are software configurable. This
         capability can be provided via the network element's OAM.

         7.1.6.2. The NMS shall provide the ability to store the following
         software:

                  1.   Current executable software.

                  2.   Replacement executable software.

                  3.   Fallback executable software.

         7.1.6.3. The NMS shall provide the ability to store the following
         information about each piece of software:

                  1.   version number.

                  2.   date installed.

                  3.   description.

                  4.   developer and contact number.

         7.1.6.4. The NMS shall provide the ability to perform a consistency
         check of software to check that the version number of the software in
         the network elements across SANs are consistent and in accordance with
         the overall NMS master plan (Software Inventory).

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         7.1.6.5. The NMS shall provide the ability to command a network element
         to change over to the replaceable executable software.

7.1.7. NETWORK MANAGEMENT CENTRE AND SAN-OSS

7.1.7.1. NETWORK MANAGEMENT CENTRE

         7.1.7.1.1. The NMC shall initially be the centralised command centre of
         the NMS. However, the architecture proposed shall not preclude the
         ability to distribute management services outwards into the network at
         a later date.

         7.1.7.1.2. The NMC shall provide a global view of the network status.

         7.1.7.1.3. The NMC shall be able to perform the functions of a SAN-OSS
         for a selected SAN.

         7.1.7.1.4. There shall be a backup NMC provided, that is functionally
         identical with the NMC.

         7.1.7.1.5. The backup NMC shall be kept synchronous with the primary
         NMC to allow manual switch-overs when authorised.

         7.1.7.1.6. The backup NMC shall be able to be used for routine
         monitoring operations in normal operational circumstances (i.e. when
         the main NMC is fully available).

         7.1.7.1.7. During failures between Management Levels, each level shall
         store messages for restoration purposes.

7.1.7.2. SAN-OSS

         7.1.7.2.1. Each SAN shall include a SAN Management System.

         7.1.7.2.2. The SAN Management System shall comprise of:

                  1.   Element Management System (referred to as the SAN-OSS)
                       for the network management of all the local elements
                       resident at the SAN site.

                  2.   SAN Satellite Resource Management System (SRMS) for the
                       distribution and co-ordination of satellite resource
                       data.

         7.1.7.2.3. The SAN-OSS shall form a part of the overall network
         management capability required to monitor and control the entire
         ICONET. As such it shall act as an agent and mediation function to the
         higher level NMC network management system and hence act as a gateway
         between the NMC and the site elements.

         7.1.7.2.4. The SAN-OSS shall be responsible as far as is possible for
         the management of the network elements resident at the site. The
         SAN-OSS shall also include provisions to allow for future expandability
         to cater for additional network elements which may prove necessary.

         7.1.7.2.5. The SAN-OSS shall have the capability to collect, filter
         alarms, action and/or distribute relevant network management
         information to the NMC, and the sub-system OAMs. Some of these tasks
         shall occur on a real-time basis.

         7.1.7.2.6. The SAN-OSS shall conform to internationally recognised
         network management standards and adopt industry recognised network
         management protocol(s) where possible. Interfacing to the NMC shall
         adopt an internationally recognised network management protocol.

         7.1.7.2.7. The SAN-OSS shall incorporate provisions for fault,
         configuration, performance and security management, compliant with
         industry recognised practises.

         7.1.7.2.8. In addition, it shall be possible for all the SAN-OSS to
         continually operate the SAN NEs in the event of an NMC failure.

         7.1.7.2.9. It shall be possible to operate the SAN-OSS from the NMC
         site.

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7.1.7.3. SAN SRMS

         7.1.7.3.1. The SAN SRMS shall be responsible for providing the
         satellite resource data such as the BTFP and the satellite
         channelisation plan for the other relevant sub-systems within the SAN
         in an appropriate format. The SAN SRMS shall receive the original of
         such satellite resource data from the NMC in advance and shall derive
         detailed data from the received information.

         7.1.7.3.2. Fault, performance, configuration and security management of
         the SAN SRMS shall be achieved via the SAN-OSS.

7.1.8. MAN MACHINE INTERFACE REQUIREMENTS

7.1.8.1. GENERAL

         7.1.8.1.1. The requirements of Section 7.1.8 are specific to the MMI at
         the NMC and SAN-OSS. However, they should also be considered at the
         network element level, where possible and practical (i.e. for new
         developments).

         7.1.8.1.2. For the purposes of network management then the NMS MMI
         shall be taken to encompass the totality of the MMI features available
         at each level in the system hierarchy (e.g. NMC, LINK-OS, NODE-OS,
         SAN-OSS and individual NE OAMs). Hence, as you move down from the top
         level MMI to the network elements then additional functionality and
         options will be uncovered, depending upon the set user privileges.

         7.1.8.1.3. Within the MMI it shall be possible to distinguish between
         different user types in order to dictate the MMI functionality that is
         to be made available. For example, an Operator within the NMC may be
         allocated a more reduced version of the SRMC MMI focused towards
         monitoring and control whereas the network planner will be given all
         the engineering rights to change the planning process or analyse the
         data.

         7.1.8.1.4. All MMIs shall provide system administration functions for
         the logical and/or physical area being managed.

         7.1.8.1.5. MMI code developed shall conform to recognised graphical
         user interface industry standards (e.g. Motif/X11, Windows, etc.). In
         general, standard windowing constructs such as multiple windows,
         tiling, icons, pop-ups, alerts, etc.
         shall be encompassed.

         7.1.8.1.6. The MMI shall encompass the WYSIWYG (What You See Is What
         You Get) approach and employ the point-and-click approach. However, the
         MMI shall be [fully] controllable from the keyboard to guard against a
         failure in the pointing device.

         7.1.8.1.7. Within the NMC it shall be possible to access the different
         systems required to fulfil the normal network management operations
         (e.g. SAN-OSS, NODE-OS, SRMC, etc.) from a single workstation and
         through a single, uniform top level MMI. This MMI level shall be
         referred to as the "Overall NMC MMI".

         7.1.8.1.8. The Overall NMC MMI shall distinguish between two key
         elements :

                  1.   The network status displays which shall present the real
                       time status of the network.

                  2.   The controller workstation which shall activate various
                       applications and be used for operator commanding.

         7.1.8.1.9. From the Overall NMC MMI the Controller shall be able to
         activate the following MMI levels :

                  1.   LINK-OSS

                  2.   SRMC

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                  3.   NODE-OSS

         7.1.8.1.10. The NMC MMI shall be produced in liaison with ICO during
         the requirements and design phases.

         7.1.8.1.11. An MMI Style Guide shall be developed and agreed with ICO.
         In addition, an NMC MMI Document shall be produced to define the actual
         screen layouts.

         7.1.8.1.12. All MMIs shall support operator features such as on-line
         help information, system administration functions, display settings,
         etc.

         7.1.8.1.13. The NMS MMI shall support a standard Graphical User
         Interface (GUI) such as X-Windows, Motif or Windows.

         7.1.8.1.14. The NMS MMI shall follow the concepts of the GUI style
         guidelines and in line with ICO Operational concepts. This style guide
         shall be agreed with ICO.

         7.1.8.1.15. The NMS MMI shall support multiple active windows.

         7.1.8.1.16. The NMS MMI shall supply on-line help for system functions.

         7.1.8.1.17. It shall be possible for authorised operators to modify the
         on-line help messages.

         7.1.8.1.18. The NMS MMI shall support user specified window manager
         preferences.

         7.1.8.1.19. English shall be the user interface language for the NMS
         MMI.

         7.1.8.1.20. The NMS MMI shall allow for the user configuration of
         window parameters.

         7.1.8.1.21. The NMS MMI shall provide graphical views of the network.
         These views shall be hierarchically linked to enable movement from one
         view to another.

         7.1.8.1.22. The NMS MMI top level view shall have a world map which can
         display a near real-time representation of the following user selected
         information:

                  1.   location and alarm status of the NMC sites.

                  2.   location and alarm status of the SAN sites, ADC, SCC
                       sites and [OT&DF]. This information may be transported by
                       means other than by the TNM or DCN.

                  3.   intersite links and their status.

         7.1.8.1.23. The NMS MMI shall support an Operator configuration
         facility during network expansion for the addition of new Network
         Elements.

         7.1.8.1.24. A change in the reporting status of a network element (e.g.
         normal to alarm condition) shall be visually communicated by changing
         the colour of the representative screen object, this colour will align
         with the current severity of the condition.

         7.1.8.1.25. The NMS MMI shall provide a graphical legend for map
         symbols and icons.

         7.1.8.1.26. The NMS MMI shall provide an alarm viewer for viewing
         current alarms and alarm history.

         7.1.8.1.27. The NMS MMI alarm viewer shall allow for displaying
         different alarm severities.

         7.1.8.1.28. The NMS MMI shall provide a current alarm summary window
         which provides a count of alarms for each alarm severity.

         7.1.8.1.29. The NMS MMI shall provide an alarm description lookup to
         provide additional information concerning each alarm and advice on
         recovery action

         7.1.8.1.30. The NMS MMI shall be designed with consideration for
         Operators' Health, Safety and comfort

         7.1.8.1.31. It shall be possible to login to any SAN MMI system from
         the NMC.

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         7.1.8.1.32. The MMI shall include features to enable an authorised user
         to efficiently set-up, halt and debug the system operation.

7.1.8.2. LINK-OS MMI

         7.1.8.2.1. The style of the LINK-OS MMI shall conform with that of the
         higher level Overall NMC MMI.

         7.1.8.2.2. The LINK-OS MMI shall be used to consolidate the operation
         and maintenance across all the SAN sites. Hence, the LINK-OSS system is
         fed from the individual SAN-OSSs.

         7.1.8.2.3. The LINK-OS shall be primarily operated by "front line"
         operators in the NMC. Hence, ease of use, simple operation activation
         and good human computer interaction shall be key features.

         7.1.8.2.4. The LINK-OS MMI shall support filtered monitoring and
         alarming concerning the attached network elements.

         7.1.8.2.5. The LINK-OS MMI shall enable control commands to be issued
         to  the attached network elements in a consistent manner.

7.1.8.3. SRMC MMI

         7.1.8.3.1. The SRMC MMI shall be designed bearing in mind two
         operational roles or user categories namely:

                  1.   Operator - Responsible for the monitoring and management
                       of the physical hardware and software elements making up
                       the SRMC and for the distribution of the various resource
                       plans produced. This task is on-line in nature.

                  2.   Network Engineer - Responsible for the detailed planning
                       and analysis of spectrum and resource management. This
                       task is off-line in nature.

         7.1.8.3.2. Bearing in mind the above user roles, the MMI shall:

                  1.   be designed so as to maximise the ease of use and
                       operation of the system bearing in mind the above roles.

                  2.   Permit error tracing, error logging and error recovery.

                  3.   Permit access to and the configuration of all SRMC
                       functionality.

                  4.   Display information in a concise and informative manner.

7.1.8.4. NODE-OS MMI

         7.1.8.4.1. The NODE-OS shall be used within the NMC to manage the
         switching network and the mobility management databases. Hence, two
         levels of operation are envisioned:

                  1.   Controller - Front line operator responsible for the real
                       time monitoring and controlling of the network.

                  2.   Switch Engineer - Responsible for the network planning,
                       analysis and investigations.

         7.1.8.4.2. The details presented shall be designed bearing in mind
         these two user groups.

         7.1.8.4.3. The NODE-OSS MMI shall:

                  1.   Alert the operator when alarm conditions occur.

                  2.   Give the operator access to further information in order
                       that operational decisions can be taken (e.g. network
                       re-configurations).

                  3.   Provide a facility to enable actions or commands to be
                       issued.

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7.1.9. BACKUP AND RESTORATION

         7.1.9.1. The NMS shall support the following automatic data backup
         procedures:

                  1.   Full backups of data and system software.

                  2.   Incremental backups between the full backups of data
                       changed since the last backup procedure where applicable.

         7.1.9.2. The timing of automatic data backup procedure initiation shall
         be configurable by the NMS operators.

         7.1.9.3. All backups and archives shall be transferred to media located
         at the same site as the system component containing the data. However,
         the architecture should not exclude the provision of eventual off-site
         storage for added security.

         7.1.9.4. The NMS shall provide initiation commands for restoration
         functionality for recovery of data from full and where provided
         incremental backups.

         7.1.9.5. The NMS shall allow restoration of backup data from storage
         media at the local and remote sites.

         7.1.9.6. Each site shall be able to maintain backup procedures in
         isolation of other sites.

7.1.10. RELIABILITY AND AVAILABILITY

         7.1.10.1. Each SAN-OSS shall have an availability of 99.99%.

         7.1.10.2. Each NMC shall have an availability of 99.99%.

         7.1.10.3. The MTTR shall be taken as 4 hours when on site spares are
         offered; this assumes that qualified personnel are already on site.

         7.1.10.4. The MTTR shall be taken as 168 hours when no on site spares
         are offered.

         7.1.10.5. From the initiation of take-over, the backup NMC device at
         the Backup NMC site shall assume the role of the NMC in 10 minutes or
         less.

7.1.11. PERFORMANCE

7.1.11.1. GENERAL

         7.1.11.1.1. The NMC NMS/SAN-OSS computing architecture shall be
         designed to allow for expansion of processing capabilities into the
         future.

         7.1.11.1.2. The NMC NMS/SAN-OSS system performance shall not be
         compromised by the addition of new SANs and new satellites in
         accordance with the ICO Traffic Model.

         7.1.11.1.3. A warning facility shall be available to inform the
         operator when spare disk capacity is low. It shall be possible to set
         the threshold for this type of reporting (e.g. disk 75% full).

7.1.11.2. SAN-OSS PERFORMANCE

         7.1.11.2.1. The transaction processing capability of the SAN-OSS is
         dependent upon the average event rates of the network elements. These
         rates shall be confirmed at PDR. However, at this point the SAN-OSS
         shall initially have a minimal processing capability of 2 events/second
         under normal working conditions.

         7.1.11.2.2. The SAN-OSS shall have the capability to queue excess event
         messages (awaiting processing)for a minimum period of 30 minutes, under
         normal working conditions.

         7.1.11.2.3. The time taken to report a detected tagged network element
         alarm (that affects network operations) to the network display at the
         SAN-OSS shall not exceed 20 seconds

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         7.1.11.2.4. A minimum of 30 days of event log information shall be
         stored [on-line] at the SAN-OSS.

         7.1.11.2.5. The SAN-OSS shall be able to serve a minimum of 8
         concurrent operator users.

         7.1.11.2.6. The system response time to the SAN operator on any
         operator request shall be less than 10 seconds excluding the following:

                  1.   network element execution time;

                  2.   intersite data transfer time;

                  3.   request for start-up/shutdown of devices;

                  4.   requests that require retrieval and/or processing of
                       large amounts of data.

         7.1.11.2.7. In the case of an exception then a response shall be
         provided back to the operator within 5 seconds with confirmation that
         the request has been received and is being actioned.

         7.1.11.2.8. SAN-OSS shutdown/start-up under normal working conditions
         shall not exceed 10 minutes.

         7.1.11.2.9. The SAN-OSS shall be able to run and store data in
         isolation from the NMC/BNMC for up to 48 hours.

7.1.11.3. NMC NMS PERFORMANCE

         7.1.11.3.1. The NODE-OS shall have the capability to process up to 1
         event/second under normal working conditions.

         7.1.11.3.2. The NODE-OS shall have the capability to process 5000
         alarms per day on average.

         7.1.11.3.3. The NMC NMS (Link-OS) shall have the capability of
         processing a minimum of [15] events/second under normal working
         conditions.

         7.1.11.3.4. The NMC NMS shall have a capability to queue excess event
         messages (awaiting processing) for a minimum of 30 minutes under normal
         working conditions.

         7.1.11.3.5. The time taken to report a detected tagged network element
         alarm (that affects network operations) to the network display at the
         NMC shall not exceed 30 seconds under normal conditions.

         7.1.11.3.6. A minimum of 90 days of event log information shall be
         stored [on-line] at the NMC.

         7.1.11.3.7. The NMC NMS shall be able to serve a minimum of 8
         concurrent operator users.

         7.1.11.3.8. The system response time to the NMC operator on any
         operator request shall be less than 10 seconds excluding the following:

                  1.   network element execution time;

                  2.   intersite data transfer time;

                  3.   request for shutdown/start-up of devices;

                  4.   requests that require retrieval and/or processing of
                       large amounts of data.

         7.1.11.3.9. In the case of an exception then a response shall be
         provided back to the operator within 5 seconds with confirmation that
         the request has been received and is being actioned.

         7.1.11.3.10. NMC-NMS shutdown/start-up shall not exceed 10 minutes
         under normal working conditions.

7.1.12. SIZING

         7.1.12.1. The NMS shall provide the required functions and be sized for
         all equipment and traffic capacity of the initial installation, and
         shall provide a capability for growth as detailed in the Sizing
         Requirements (Section 9.3).

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7.1.13. EXPANDABILITY

         7.1.13.1. The NMC and SAN-OSS shall support the addition of network
         elements for network expansion as specified in 6.23 and 7.8.

7.1.14. OPERATIONAL TESTING CAPABILITIES

         7.1.14.1. The NMS shall have the capability and necessary facilities
         and tools to undertake diagnostic tests on the detection of a failure
         or potential problem. [This shall encompass the ability to set up
         end-to-end test calls (as specified in ICO services requirements)
         between two or more parties and monitoring/logging all traces through
         the various subsystems.

         7.1.14.2. This feature shall use the logging data to provide an
         integrated view of the call trace and validate the functioning of the
         ICO System (a UT on the S-Band capability at the SAN shall be capable
         of being used for the test call). For testing purposes it shall be
         possible to initiate a handover from the NMS.]

7.1.15. NMC AND BACK-UP NMC PLATFORM

         7.1.15.1. Systems intended for the NMC (e.g. LINK-OS, SRMC, NODE-OS)
         shall adopt an open systems architecture in order to ensure later
         development, upgrades and re-configurations can be encompassed with
         minimal impact.

         7.1.15.2. The NMC hardware shall employ a distributed client-server
         architecture, such that additional clients can be added at a later
         date. It shall further be possible to add additional workstations to
         the system to cater for additional operators (minimum of 10) without
         any re-development work.

         7.1.15.3. Hardware sizing and performance rating shall be established
         taking into account the need for future expandability which are
         reflected in the ICO 10 year Traffic Model. This shall encompass the
         processors, disk system, ports, workstations and data networks.

         7.1.15.4. Maximum use shall be made of commercial off-the-shelf
         software provided that :

                  1.   The product fits within the network management approach
                       being adopted and is fit for purpose.

                  2.   The product is suitably documented

                  3.   The product is sufficiently supported.

         7.1.15.5. Should non-proprietary products be adopted then this shall
         require ICO approval before being used.

         7.1.15.6. When new software is to be developed then this shall adopt an
         object oriented methodology whenever possible. Tools and aids (e.g.
         programming languages, developer tool kits, etc.) shall be recognised
         and well supported.

7.2. CONFIGURATION MANAGEMENT

7.2.1. REQUIREMENTS FOR NEW ELEMENTS

         7.2.1.1. Section 7.2 covers general functionality to be located at the
         SAN-OSS and NMC. The functionality provided through the individual OAMs
         is described in Section 7.8. However, in the case of the development of
         new elements it is recommended that the requirements of this Section be
         taken into account.

7.2.2. GENERAL

         7.2.2.1. This section covers general configuration management
         functionality to be located at the SAN-OSS and NMC.

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         7.2.2.2. An event, as referenced in this section, is defined to be a
         message issued by a network element to the NMS as a result of a state
         change or action within the element. Events are used by the NMS as a
         method of obtaining real-time information from the network which
         supplements the periodic status messages. Alarms are also sent as a
         result of state changes but differ in that they:

                  1.   result from erroneous state changes.

                  2.   remain active until the corresponding clear alarm is
                       issued from the network element.

         7.2.2.3. Configuration data maybe divided into long and short term
         changes. The long term configurable items maybe file based and are
         defined at the time of equipment installation or during the expansion
         of existing facilities. This data is classified as dimensioning data.
         Shorter term configurable items have fields associated with them on MMI
         views which allows the operator to make changes to the system while it
         is operational. The requirements in this specification refer to non
         dimensioning configuration data unless dimensioning data has been
         specifically referred to.

         7.2.2.4. The status which is returned from network elements does not
         represent state changes as is the case with events and alarms, but
         provides the current state of the network element in terms of all of
         the parameters associated with that network element. This may include
         parameters such as mode or frequency.

         7.2.2.5. The NMS shall provide facilities for the operator to modify
         NMS dimensioning and non-dimensioning data.

         7.2.2.6. All Operator actions for Configuration Management shall be
         logged.

         7.2.2.7. It shall be possible to initiate NMS configuration management
         processes from both the NMC and SAN-OSS.

         7.2.2.8. The NMS shall use schematic representations of the ICO network
         to graphically reflect the current state of the network and network
         elements.

         7.2.2.9. The NMS shall provide views of the network at a number of
         levels, including:

                  1.   an overall view of the network showing network element
                       interconnections.

                  2.   views of specific network elements and connections.

         7.2.2.10. The state of network elements shall be determined from the
         following information:

                  1.   alarm state changes from network elements.

                  2.   status information from network elements.

                  3.   event messages from network elements.

                  4.   information gathered from periodic polling of network
                       elements.

         7.2.2.11. The configurable data available to the NMS shall include:

                  1.   NMS parameters such as alarm thresholds, reporting
                       periods.

                  2.   database maintenance functions.

                  3.   operating parameters for each network element.

                  4.   quality of service parameters.

         7.2.2.12. The status data available to the NMS shall include:

                  1.   versions of network element software.

                  2.   alarms.

                  3.   events.

                  4.   network status.

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         7.2.2.13. The NMC shall support a scheduler to plan and co-ordinate
         long-term network changes.

         7.2.2.14. The NMC and SAN-OSS shall support scheduled configuration
         changes where the change is deferred to a selected time. The change
         process shall be as follows :

                  1.   The NMC NMS shall centrally control the scheduling of
                       planned network configuration changes. Hence, the master
                       schedule shall be maintained and stored by the NMC.

                  2.   It shall be possible to submit a change to the NMC in
                       order that it can be scheduled via electronic or manual
                       means.

                  3.   The NMC NMS shall notify in advance, the relevant SAN-OS
                       of planned scheduling changes which are applicable to
                       that site. A record of this distribution shall be
                       maintained at the NMC.

                  4.   For each scheduled change, the following details shall be
                       logged at the NMC :

                       a.  Date/time when scheduled change was issued.

                       b.  Date/time when scheduled change is planned to take
                           place.

                       c.  Description of the change

                       d.  Network element(s) involved in the change

                       e.  Name of the authoriser

                       f.  Reason why a scheduled change cannot be performed

                       g.  Date/time when change was performed

                       h.  Confirmation/result of change

                       i.  Name of operator or software function initiating the
                           change

                  5.   The SAN-OS shall record receipt of the schedule
                       notification from the NMC.

                  6.   The SAN-OS shall be responsible for informing the NMC NMS
                       when scheduled changes cannot be satisfied within the
                       time scales set (i.e. due to equipment failure, higher
                       priority activities, etc.) such that re-scheduling can be
                       undertaken.

                  7.   The SAN-OS shall be responsible for instructing the
                       appropriate network element(s) to undertake the change
                       (this is likely to be a manual process).

                  8.   The network element should record each configuration
                       change made as per reqt. 7.2.2.19.

                  9.   The SAN-OS shall have the capability to request
                       configuration change event reports from the network
                       elements.

                  10.  The SAN-OS shall be responsible for informing the NMC NMS
                       of the outcome of each scheduled change.

         7.2.2.15. The NMS shall perform validation checks on configuration
         changes before making the change.

         7.2.2.16. The NMS (pre/post) validation of configuration requests shall
         include receiving information on :

                  1.   security checks.

                  2.   parameter range checks.

                  3.   checks to determine if the state change is possible given
                       the current state of the network element being
                       configured.

         7.2.2.17. The NMS shall handle any return status sent by the network
         element as a result of the configuration change.

         7.2.2.18. Each configuration change shall generate an event in the
         event log containing:

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                  1.   name of operator or software function initiating the
                       change.

                  2.   name of authoriser

                  3.   date and time of issuing the change.

                  4.   date and time of actioning the change.

                  5.   description of the change.

                  6.   confirmation / result of change.

         7.2.2.19. The NMS shall allow the operator to examine configuration
         changes within the event log based on:

                  1.   an interval of time.

                  2.   a set of network element(s).

                  3.   changes made by a specific operator.

         7.2.2.20. The NMS shall be able to assign priorities to each type of
         configuration change.

         7.2.2.21. The NMS shall allow additional installed, dimensioned and
         configured network elements to be added to the network without having
         to shutdown the system.

         7.2.2.22. The NMS shall provide a facility for maintaining time of day
         synchronism between network elements which require knowledge of system
         time of day.

7.3. FAULT MANAGEMENT

7.3.1. REQUIREMENTS FOR NEW ELEMENTS

         7.3.1.1. Section 7.3 covers general functionality to be located at the
         SAN-OSS and NMC. The functionality provided through the individual OAMs
         is described in Section 7.8. However, in the case of the development of
         new elements it is recommended that the requirements of this Section be
         taken into account.

7.3.2. GENERAL

         7.3.2.1. The NMS shall collect alarms generated by the network elements
         to determine device failures and/or service affecting conditions.

         7.3.2.2. The NMS shall be able to monitor and report miscellaneous
         alarm conditions at each site, such as temperature, humidity, building
         alarms.

         7.3.2.3. Alarms shall be categorised into four levels of severity;
         Critical, Major, Minor, Warning.

         7.3.2.4. The NMS shall be responsible for assigning alarm severities to
         alarms generated by network elements.

         7.3.2.5. Each alarm shall have the following states :

                  1.   raised.

                  2.   cleared.

                  3.   acknowledged by the operator.

         7.3.2.6. The NMS shall have a facility for acknowledging multiple
         alarms using a single operation.

         7.3.2.7. The following sets of alarms shall be highlighted to the
         operator:

                  1.   new alarms which have been present in the system for a
                       period of time as specified by the operator.

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                  2.   alarms which have been acknowledged, but not been cleared
                       for a minimum period of time as specified by the
                       operator.

         7.3.2.8. It shall be possible to bring alarms to the attention of the
         Operator via various means such as (flashing text/icons, audibly,
         etc.).

         7.3.2.9. It shall be possible for the NMS to automatically upgrade the
         severity of alarms (alarm escalation), depending on factors such as
         persistence. The operator shall also have the capability to manually
         mark alarms for escalation.

         7.3.2.10. All alarms shall contain the following information:

                  1.   unique object alarm identifier.

                  2.   date and time of when the alarm was
                       raised/cleared/acknowledged.

                  3.   alarm description.

                  4.   source of the alarm.

                  5.   fault location details.

         7.3.2.11. All alarm state changes shall be logged to an alarm history
         database.

         7.3.2.12. The NMS shall allow the operator to examine the alarm
         database using search criteria such as:

                  1.   range of times.

                  2.   source of alarms.

                  3.   specific alarm.

         7.3.2.13. To reduce the amount of traffic between sites the NMS shall
         allow the operator to specify alarm filters.

         7.3.2.14. The NMS shall provide a GUI style editor to allow the
         operator (with the necessary authorisation) to change:

                  1.   alarm threshold definitions.

                  2.   alarm filtering between sites.

                  3.   alarm attentional and reporting attributes (e.g.
                       enable/disable beeping, switch on/off flashing,
                       enable/disable reporting to event log, enable/disable
                       reporting to printer/file, etc.).

7.3.3. ALARM ANALYSIS

         7.3.3.1. The NMS shall be able to determine the fault location based on
         alarms raised, the fault location information contained within each
         alarm and from the diagnostics test processes in place.

         7.3.3.2. Fault location shall isolate the fault to a replaceable unit.

         7.3.3.3. The identified unit shall be linked to a physical location.

         7.3.3.4. The NMS shall support the establishment of alarm thresholds
         whereby the operator can configure the system to generate a higher
         level alarm based on a number of specified lower level alarms.

         7.3.3.5. The NMS shall perform alarm correlation at the NMC and SAN-OSS
         to identify faults and service affecting conditions within the system.

         7.3.3.6. The result of the alarm analysis shall be any or all of the
         following:

                  1.   an action to initiate automatic recovery.

                  2.   an audible alert at a specified location.

                  3.   an additional alarm which can initiate additional
                       actions.

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                  4.   generation of a trouble ticket.

7.3.4. TROUBLE TICKET MANAGEMENT

         7.3.4.1. The NMS shall provide a facility for the operator to generate
         Trouble Tickets for detected faults or Customer / Operator complaints.

         7.3.4.2. Each trouble ticket shall be tracked by recording details such
         as:

                  1.   Trouble Ticket number

                  2.   Day and time of alarm/reported fault

                  3.   Location of alarm/reported fault

                  4.   Equipment identification

                  5.   object name

                  6.   Probable cause

                  7.   Description

                  8.   severity

                  9.   Processing priority

                  10.  Issued by

                  11.  Assigned to

                  12.  Primary contact

                  13.  Secondary contact

                  14.  Opened date/time

                  15.  Dispatched date/time

                  16.  Resolved date/time

                  17.  Closed date/time

         7.3.4.3. Trouble ticket reports detailing all available information
         associated with that ticket shall be generated at the specified
         reporting period while the trouble ticket remains active or on an
         operators request. Trouble Tickets may be generated manually or
         automatically. Attachments may be added to Trouble Tickets.

7.4. PERFORMANCE MANAGEMENT

7.4.1. REQUIREMENTS FOR NEW ELEMENTS

         7.4.1.1. Section 7.4 covers general functionality to be located at the
         SAN-OSS and NMC. The functionality provided through the individual OAMs
         is described in Section 7.8. However, in the case of the development of
         new elements it is recommended that the requirements of this Section be
         taken into account.

7.4.2. GENERAL

         7.4.2.1. The NMS shall allow the operator to access performance
         management functions as defined in the OAM interface specifications in
         Sections 7.8.

         7.4.2.2. The NMS shall allow the operator to set thresholds for each
         performance criterion.

         7.4.2.3. The NMS shall raise an alarm whenever a performance threshold
         has been exceeded.

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         7.4.2.4. The NMS shall be able to support Trend Analysis.

         7.4.2.5. The NMS shall routinely produce a top level performance report
         summarising QoS performance and network criteria (e.g. equipment
         availability, trouble tickets processed etc.)

7.4.3. NETWORK TRAFFIC MANAGEMENT

         7.4.3.1. NMS shall support user traffic supervision (i.e. to have a
         clear overview of the network alarms status from a traffic management
         point of view), traffic analysis (i.e. to analyse the cause and origin
         of traffic disturbances detected by the traffic supervision function),
         traffic control (i.e. to re-route and to restrict traffic in the
         network) for the elements within the ICONET for which ICO has full
         control (e.g. switch, TNM, SBS, etc.).

7.5. SECURITY MANAGEMENT

7.5.1. REQUIREMENTS FOR NEW ELEMENTS

         7.5.1.1. Section 7.5 covers general functionality to be located at the
         SAN-OSS and NMC. The functionality provided through the individual OAMs
         is described in Section 7.8. However, in the case of the development of
         new elements it is recommended that the requirements of this Section be
         taken into account.

7.5.2. GENERAL

         7.5.2.1. NMS security shall encompass access control measures to be
         provided by the NMS to manage, control and monitor access to the DCN
         and to the ICONET via the NMS (namely the NMC, LINK-OS, NODE-OS, SAN-OS
         and individual network elements).

         7.5.2.2. Within the NMS facilities shall be provided at the respective
         MMIs to enable the creation, deletion and configuration of operator
         user groups, user names and individual passwords.

         7.5.2.3. Individual access to the NMS shall be user and password
         controlled.

         7.5.2.4. It shall be possible to establish user groups (e.g.
         administrator, supervisor, general operator, etc.) with specific
         privileges in order to control group and/or individual access to
         specific operations, functions, configurations and applications.

         7.5.2.5. It shall be possible for authorised personnel to delete
         individual user access (e.g. when a staff member leaves, etc.).

         7.5.2.6. The password mechanism shall incorporate a facility for the
         automatic ageing.

         7.5.2.7. The NMS shall raise an alarm to the appropriate management
         layer for failed log-in attempts which exceed a pre-set rate.

         7.5.2.8. All user accesses to the NMS shall be logged. Where possible,
         details recorded shall include the user identification and point of
         access.

         7.5.2.9. During a log-in session, the system shall record the start/end
         times and the elements accessed (in the case where user privileges
         allow immediate access to a number of network elements).

         7.5.2.10. If operators or the NMS detects an unauthorised access or
         attempt then the NMS system shall :

                  1.   Raise an alarm to the appropriate management layer.

                  2.   Attempt to lock out the work station. If lock-out is
                       possible then it shall be possible for an operator with
                       the necessary privilege to unlock it at a later time.

                  3.   Record all available information on the call/caller and
                       disconnect the call for dial-in connections.

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         7.5.2.11. At each NMS, computer routine security and system
         administration facilities shall be available. Typically, this shall
         include:

                  1.   Guarding against file and disk computer viruses which are
                       commercially recognised.

                  2.   Monitoring, re-formatting and repairing disk space (e.g.
                       due to file fragmentation, etc.).

                  3.   Protecting individual files and directories.

                  4.   Recording last directory and file accesses through the
                       applications program.

         7.5.2.12. It shall be possible for a User to undertake a NMS security
         audit trail for a specified:

                  1.   User Group

                  2.   User

                  3.   Time period.

         7.5.2.13. The NMS shall produce a routine report covering security
         aspects (e.g. number of log-ins, viruses detected, security alarms,
         etc.).

         7.5.2.14. The NMC shall provide key management, control and
         distribution for use in the DCN. The key management shall be provided
         by a highly secure portion of the NMC. (F/R)

7.6. ACCOUNTING MANAGEMENT

         7.6.1. There are no NMS requirements for Accounting Management except
         for the receipt of CDR files, when required, from the ADC.

7.7. SECTION NOT USED

7.8. OPERATIONS AND MAINTENANCE INTERFACE REQUIREMENTS

7.8.1. GENERAL

         7.8.1.1. This section describes the functionality which is to be made
         available to the NMS by the various network elements within the ICO
         system.

         7.8.1.2. Included for each OAM are the minimum acceptable parameters
         that will be collected from a Fault, Configuration and Performance
         Management perspective.

         7.8.1.3. In practice the functionality made available to the various
         NMS operator stations, through Security Management of the NMS, will
         vary depending on the operational requirements of each station. The
         NMC, for example, will require more of a global view of the system
         whereas at the SAN a more detailed view is required for the day to day
         maintenance and operations of network elements.

         7.8.1.4. The OAM interfaces in this section have been divided up based
         on the various network elements. This does not imply that each network
         element will have its own OAM interface. For example the TNM OAM
         interface may handle both the TNM and DCN.

         7.8.1.5. The ICO system is to be designed with both expandability and
         interoperability in mind. Therefore, the NMS architecture employed must
         be capable of allowing additional network elements to be added with the
         minimum of network interruption. For these reasons then individual
         network element OAMs shall adhere to the following general
         requirements:

         7.8.1.6. Any communication interfaces, protocols, man machine
         interfaces, operating systems, databases, programming languages or
         development/application tools required for the network element OAM
         shall have the following basic features (as appropriate):

                  1.   be controlled by an industry standard.

                  2.   be commercially available with product support.

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                  3.   be consistent with open systems concepts.

                  4.   be supported by major hardware and software platforms.

                  5.   be multiprocessing.

                  6.   be compatible between the client and server.

                  7.   be compatible with the NMC and SAN network management
                       structure as far as is practical.

         7.8.1.7. Any exceptions to these (e.g. due to the re-use of existing
         equipment, etc.) shall be highlighted to ICO. For new elements then any
         exceptions will need to be approved by ICO.

         7.8.1.8. In general, separate OAM MMIs should be minimised (i.e.
         integrated into the SAN MMI). However, if a separate MMI is produced,
         then it shall be possible to initiate from the main SAN-OSS
         workstations.

7.8.2. SATELLITE RESOURCE MANAGEMENT CENTRE

7.8.2.1. GENERAL REQUIREMENTS

         7.8.2.1.1. The NMS shall encompass:

                  1.   SRMC equipment, associated software, processing,
                       monitoring and control.

                  2.   Error free and confirmed resource management data
                       distribution.

         7.8.2.1.2. The SRMC OAM interface shall provide access to backup and
         restoration procedures associated with the SRMC equipment.

         7.8.2.1.3. The SRMC OAM interface shall provide the following software
         upgrade facilities:

                  1.   download new versions of software from the NMS.

                  2.   replace the current version of software with the new
                       version.

                  3.   replace the current version of software with the previous
                       version.

                  4.   extract existing software version information for the
                       three versions of software.

7.8.2.2. CONFIGURATION MANAGEMENT

         7.8.2.2.1. The SRMC OAM interface shall provide a facility for the SRMC
         to supply status to the NMS.

         7.8.2.2.2. The SRMC OAM interface shall forward SRMC events to the NMS.

         7.8.2.2.3. The SRMC OAM interface shall allow the NMS to:

                  1.   configure SRMC event parameters.

                  2.   initiate archiving of the SRMC event data.

                  3.   purge SRMC event data.

                  4.   access SRMC event data.

         7.8.2.2.4. The SRMC OAM interface shall provide access to parameters
         requiring configuration by the NMS.

7.8.2.3. FAULT MANAGEMENT

         7.8.2.3.1. The SRMC OAM interface shall forward the raising and
         clearing of SRMC alarms to the NMS, including the following:

                  1.   Communication alarms.

                  2.   Equipment alarms.

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                  3.   Processing error alarms.

         7.8.2.3.2. Each SRMC alarm forwarded to the NMS shall contain:

                  1.   an object identifier unique to the SRMC.

                  2.   date and time of when the alarm was raised or cleared.

                  3.   alarm description.

                  4.   alarm severity.

                  5.   source of the alarm for the purpose of fault location.

         7.8.2.3.3. The SRMC OAM interface shall allow the NMS to:

                  1.   configure SRMC alarm parameters.

                  2.   initiate archiving of the SRMC alarm data.

                  3.   purge SRMC alarm data.

                  4.   access SRMC alarm data using filters supplied by the NMS.

         7.8.2.3.4. In the event of single or multiple satellite and/or SAN
         failure, the NMS shall have the capability to, within a 2 to 3 hour
         time-frame :

                  1.   re-run SRMC software to regenerate Burst-time frequency
                       plans and channelisation plans for the available system.

                  2.   [distribute and configure the system with the updated
                       BTFPs and channelisation plans.]

7.8.2.4. PERFORMANCE MANAGEMENT

         7.8.2.4.1. The SRMC OAM interface shall allow the NMS to:

                  1.   configure SRMC performance parameters.

                  2.   initiate archiving of the SRMC performance data.

                  3.   purge SRMC performance data.

                  4.   access SRMC performance data using filters supplied by
                       the NMS.

                  5.   configure periodic transfer of SRMC performance data to
                       the NMS using filters.

7.8.2.5. SECURITY MANAGEMENT

         7.8.2.5.1. The SRMC OAM interface shall provide access control
         facilities to all SRMC OAM interface functionality. As a minimum, the
         SRMC shall distinguish between two level user categories :

                  1.   Network Engineer/Planners responsible for the
                       verification and management of the planning process

                  2.   Network Operators who require to monitor and distribute
                       data only.

7.8.3. SATELLITE CONTROL CENTRE

7.8.3.1. GENERAL REQUIREMENTS

         7.8.3.1.1. The NMC/SRMC shall receive satellite orbital data from the
         SCC for use in generating satellite resource management data.

         7.8.3.1.2. An interface between the SCC and NMC shall be provided for
         the forwarding of various SCC generated faults and alarm conditions.
         This interface shall also be used for the delivery of files containing
         information such as satellite orbital data to the NMS for subsequent
         distribution.

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         7.8.3.1.3. The interface and protocols shall follow the industry
         standards

7.8.3.2. CONFIGURATION MANAGEMENT

         7.8.3.2.1. The NMS shall store and record data files passed from the
         SCC from a version controlled perspective.

7.8.3.3. FAULT MANAGEMENT

         7.8.3.3.1. The SCC OAM interface shall forward the raising and clearing
         of communication SCC alarms to the NMS. Critical SCC (space segment)
         alarms shall also be forwarded to the NMC.

7.8.3.4. PERFORMANCE MANAGEMENT

         7.8.3.4.1. None.

7.8.3.5. SECURITY MANAGEMENT

         7.8.3.5.1. None.

7.8.4. NODE OPERATIONS SYSTEM

7.8.4.1. GENERAL REQUIREMENTS

         7.8.4.1.1. The NODE-OS (encompassing the TMOS system) shall handle all
         network management functionality relating to the network elements
         directly under its control. Only alarm information is forwarded from
         the NODE-OS (and its lower network elements) to the higher level NMS.

         7.8.4.1.2. The NODE-OS architecture shall support:

                  1.   centralised MSSC/MM OAM at the NMC and back-up NMC with
                       control at the NMC and the back-up NMC.

                  2.   monitoring information shall be transmitted to both OAM
                       systems in the centralised option.

                  3.   a semi-distributed architecture with MSSC/MM OAM at the
                       NMC, B-NMC and specified SANs.

                  4.   a fully distributed architecture with OAM at every SAN.

         7.8.4.1.3. There shall be no functionality impact when migrating away
         from the initial centralised architecture.

         7.8.4.1.4. For the purposes of this requirement specification, the
         NODE-OS shall encompass the management of the following network
         elements:

                  1.   MSSC which includes the VLR and SS7 switch based reported
                       faults

                  2.   Messaging Platform including voice/fax messaging and
                       Short Messaging Service Centre (SMSC)

                  3.   HLR

                  4.   AuC

                  5.   EIR

                  6.   ILR

                  7.   IN (F/R)

         The required management support, as specified in section 7.8.4, by the
         NODE-OS for each of the managed network element shall be fulfilled in a
         manner as stated in the document reference WG370169 "Node-OS System
         Functional Analysis (SFA)".

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         7.8.4.1.5. Management functions, functional entities and objects
         required for the VLR/HLR/MSSC/EIR/AUC shall comply with GSM 12.02 as
         far as is possible.

         7.8.4.1.6. The NODE-OS OAM shall provide access to backup and
         restoration procedures associated with the managed elements.

         7.8.4.1.7. The NODE-OS shall be able to support software management
         functions of its managed network elements. Software management
         functions shall include:

                  1.   The display of software properties for a selected network
                       element.

                  2.   Download and activation of selected versions of software
                       from the NODE-OS.

                  3.   Download of command files from the NODE-OS.

                  4.   Replace current version software with minor updates, if
                       needed (e.g. software patches for bug fixing).

                  5.   Extract existing software version information for the
                       three versions of software.

                  6.   The operator to search for specific software units,
                       software patches or command files among a selected set of
                       managed network elements.

                  7.   Comparison among software revisions of a selected set of
                       related managed network elements.

                  8.   The software management information stored in the NODE-OS
                       database to be updated with the applicable data of the
                       managed network elements.

                  9.   The setting of filters to restrict the scope of the
                       database retrieving operations for the managed network
                       elements.

                  10.  Importing of files from input media.

                  11.  Handling of a suitable file store.

                  12.  Files to be loaded into the managed network elements
                       before activation of software units.

         7.8.4.1.8. The GSM Series 12 shall be applied to the maximum extent
         possible for interoperability purposes. This shall include aspects such
         as managed object class definitions, class hierarchies and standard
         network management functionality.

         7.8.4.1.9. Relevant TMN standards as called up by the GSM Series 12
         standards shall be applied to the maximum extent possible.

         7.8.4.1.10. Relevant CCITT X.700 standards as called up by the GSM
         Series 12 standards shall be applied to the maximum extent possible.

         7.8.4.1.11. Objects shall be specified using standard GDMO definitions
         where possible for managed objects.

         7.8.4.1.12. The MMI shall follow recognised industry standards.

         7.8.4.1.13. The NODE-OS shall manage the satellite/cellular
         interworking function from a network management perspective as
         described in Section 4.8.

         7.8.4.1.14. The NODE-OS shall comprise of a management platform that
         supports the Cellular Management System for GSM.

         7.8.4.1.15. The NODE-OS shall support the following types of command
         scripts provided for managing the network elements under its control:

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                  1.   command scripts;

                  2.   command response scripts;

                  3.   file normalisation scripts;

                  4.   report scripts.

7.8.4.2. CONFIGURATION MANAGEMENT

         7.8.4.2.1. GSM 12.06 shall be adopted where possible for network and
         service configuration management.

         7.8.4.2.2. A command handling application at the NODE-OS shall be
         available to enable the operator to:

                  1.   open a command session window for sending commands to a
                       managed network element and for presentation from the
                       network element.

                  2.   display delayed responses from the managed network
                       elements in a separate window (i.e. responses to a
                       command that arrives at a later stage).

                  3.   receive and display in a separate window spontaneous
                       reports (i.e. events initiated by an network element).

                  4.   create a command file (i.e. sequence of commands used in
                       the communication with an network element).

                  5.   support shell scripts in a way similar to the command
                       files.

                  6.   activate command files and shell scripts at a specified
                       time.

                  7.   provide a command line interface in order that other
                       applications can be interfaced to the command handling
                       functions.

                  8.   log all commands sent and responses returned.

                  9.   set for a selected command a specific warning,
                       confirmation or guiding text that will then be displayed
                       to the user of the network element.

                  10.  interrupt reception of responses from a managed network
                       element.

         7.8.4.2.3. A file transfer and management facility shall be provided to
         enable:

                  1.   File transfer from a connected network element to the
                       NODE-OS.

                  2.   Various file transfer options to be supported (e.g.
                       spontaneous file output, requested file output,
                       notification-initiated requested file output).

                  3.   scheduling of file transfers

                  4.   The operator to define subscriptions to files on behalf
                       of external devices (i.e. to make sure that files are
                       sent from NODE-OS to the specific OS on a regular basis)

                  5.   Automatic post-processing of files received in the
                       NODE-OS file store

                  6.   The process of transferring a file independently of the
                       user interface.

                  7.   On-going file transfers to be restarted, in case of a
                       reboot of the NODE-OS.

                  8.   file transfers to remain after a system restart.

                  9.   A NODE-OS alarm to be issued for each file transfer that
                       is unsuccessful.

                  10.  A confirmation to be given for each file successfully
                       transferred.

         7.8.4.2.4. The NODE-OS shall encompass an application to create and
         manage the management information base. This application shall support
         the:

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                  1.   creation, deletion and the property change of a Managed
                       Object (MO).

                  2.   heartbeat supervision.

                  3.   alarm supervision.

7.8.4.3. FAULT MANAGEMENT

         7.8.4.3.1. The NODE-OS OAM interface shall forward alarm and event
         information from the network elements (hardware and software) to the
         higher level NMS.

         7.8.4.3.2. Alarm information shall include:

                  1.   MSSC/VLR alarms (including SS7 alarms from the switch).

                  2.   Messaging Platform alarms.

                  3.   HLR alarms.

                  4.   AuC alarms.

                  5.   EIR alarms.

                  6.   ILR alarms.

         7.8.4.3.3. Facilities shall be provided to allow the following from the
         NODE-OS OAM for fault information:

                  1.   collection and storage

                  2.   status monitoring

                  3.   viewing

                  4.   history handling

                  5.   definition

                  6.   correlation (F/R), filtering and re-classification

                  7.   threshold setting

                  8.   forwarding.

                  9.   diagnostics and testing

         7.8.4.3.4. Basic fault management facilities shall be provided at the
         NODE-OS to allow:

                  1.   reception of alarms from various alarm adaptation units

                  2.   alarm logging

                  3.   updating of the current alarm context for any managed
                       object affected by a received alarm.

                  4.   distribution of received alarms to a subscribing
                       presentation function.

                  5.   information access for presentational purposes.

                  6.   Routing of alarms to different destinations.
                       Specifically, routing to printers, files, mail and
                       automatic acknowledgement function shall be supported.

         7.8.4.3.5. The NODE-OS shall support a graphical presentation function
         which shall provide:

                  1.   A Network Status presentation: this shall provide the
                       status of the whole network or the status of a part of
                       the network.

                  2.   A display of the list of the new and active alarms.

                  3.   the ability to get all available information about any of
                       these alarms.

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                  4.   the ability to read and write comments on alarms.

                  5.   the ability to acknowledge observation of new alarms.

                  6.   the ability for the operator to find information about
                       active and old (cleared) alarms stored in the alarm log.

         7.8.4.3.6. The NODE-OS shall provide for alarm analysis. This shall
         support:

                  1.   Analysis of the alarms retrieved through a graphical user
                       interface.

                  2.   Alarm analysis from the command line (e.g. present the
                       alarm list).

                  3.   Input from either a file or standard input format for
                       routine program analysis.

                  4.   the extension of the analysis function.

                  5.   New analysis programs that perform new types of analysis

                  6.   New alarm attributes that can be used in the analysis.

                  7.   The ability for the operator to view operation and
                       maintenance documentation on a work station screen.

         7.8.4.3.7. The NODE-OS shall support the conversion from text file
         alarms. This shall encompass:

                  1.   The reception of alarms from regular files or named
                       pipes.

                  2.   The transformation of alarms into NODE-OS alarm records
                       and the forwarding of alarm records to the LINK-OS.

                  3.   The size of the file for incoming alarms.

                  4.   The real time update of the list of known alarms.

         7.8.4.3.8. The NODE-OS shall encompass:

                  1.   The automatic filtering and (correlation (F/R)) of
                       alarms.

                  2.   User expertise to be incorporated in the filtering and
                       (correlation (F/R)) of alarms (i.e. adding comments to
                       the alarms).

                  3.   The invoking of actions to automate routine correction
                       procedures and to collect more information from the
                       network (F/R).

                  4.   Suppression of secondary alarms upon confirmation of a
                       primary alarm (F/R).

         7.8.4.3.9. (F/R) The NODE-OS shall have online documentation to support
         the operations and maintenance of the switched network.

7.8.4.4. PERFORMANCE MANAGEMENT

         7.8.4.4.1. The NODE-OS shall collect performance measurement data from
         the managed network elements.

         7.8.4.4.2. It shall be possible to generate performance summary reports
         on a daily, weekly and monthly basis.

         7.8.4.4.3. The NODE-OS shall include an application that measures and
         analyses certain events in order to provide quality indicators related
         to the performance of the network.

         7.8.4.4.4. Performance management features shall include:

                  1.   performance data administration (e.g. list of
                       measurements, deletion of measurements).

                  2.   performance measurement data collection and storage (e.g.
                       Statistic and Traffic measurements).

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                  3.   performance data presentation (e.g. data presentation for
                       the traffic measurements on traffic routes, traffic types
                       and traffic dispersion shall be supported).

                  4.   the extended administration of measurements with creation
                       of measurements via the Graphic User Interface shall be
                       supported.

                  5.   performance measurement data analysis reports

                  6.   configurable thresholds for Measurement of performance
                       parameters

         7.8.4.4.5. It shall be possible to export performance reports and data
         into standard PC based applications for subsequent post-processing.

         7.8.4.4.6. The NODE-OS shall provide the following facilities for the
         management of data collected from its managed network elements:

                  1.   Data compaction;

                  2.   Data deletion;

                  3.   Data back-up handling;

                  4.   The generation of reports, once data has been collected
                       and inserted into the database.

7.8.4.5. SECURITY MANAGEMENT

         7.8.4.5.1. The NODE-OS shall include compatible access security
         measures as have been specified for the LINK-OSS.

         7.8.4.5.2. The security features, mechanisms, procedures and objects
         shall be in accordance with GSM 12.03 where possible.

         7.8.4.5.3. The NODE-OS shall encompass a security facility to:

                  1.   Allow authority support to be used for administration of
                       the authority database (i.e. that contains information on
                       who is allowed to do what and when).

                  2.   Provide log administration support in order to administer
                       command logs.

7.8.4.6. MOBILE SATELLITE SWITCHING CENTRE / VISITOR LOCATION REGISTER

7.8.4.6.1. GENERAL DESCRIPTION

         7.8.4.6.1.1. The MSSC is an exchange which performs all of the
         switching and signalling functions for mobile stations located in the
         geographical area designated as the SAN serving area. The switching
         element also encompasses the reporting of SS7 alarm messages as seen by
         the switch. The VLR is further co-located within the same switch as the
         MSSC.

         7.8.4.6.1.2. From a network management perspective the MSSC is managed
         via the NODE-OS.

7.8.4.6.2. GENERAL REQUIREMENTS

         7.8.4.6.2.1. EMPTY

         7.8.4.6.2.2. EMPTY

         7.8.4.6.2.3. The following functionalities shall be supported in the
         dialogue between the NODE-OS and the switch:

                  1.   connection and association handling;

                  2.   command and response communication to and from the
                       switch, including

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                  3.   spontaneous report reception;

                  4.   logging and authority control;

                  5.   file administration;

                  6.   file transfer;

                  7.   event logging;

                  8.   subscription handling, which is a general mechanism for
                       distribution of files,

                  9.   delayed responses, and spontaneous reports received from
                       the switch.

         7.8.4.6.2.4. The MSSC shall support call tracing facilities for an
         active call.

7.8.4.6.3. CONFIGURATION MANAGEMENT

         7.8.4.6.3.1. Through the NODE-OS it shall be possible to configure:

                  1.   MSSC/VLR equipment provisioning and assignment

                  2.   MSSC/VLR parameter selection

                  3.   MSSC/VLR equipment status selection (e.g., on-line or
                       standby)

                  4.   remote trunk assignment and service assignment and
                       restriction

                  5.   remote software overwrites and patches

                  6.   Remote configuration of signalling links terminating on
                       the switch

                  7.   Remote bulk downloading of traffic and signalling routing
                       information without disruption or degradation of service.

         7.8.4.6.3.2. It shall be possible to manage via the NODE-OS all the
         trunks that terminate at the ICO MSSC/VLRs.

         7.8.4.6.3.3. It shall be possible to manage via the NODE-OS all the
         No.7 signalling links which terminate at the ICO MSSC/VLRs.

         7.8.4.6.3.4. EMPTY

         7.8.4.6.3.5. It shall be possible to maintain routing configuration
         data for calls and signalling messages.

         7.8.4.6.3.6. It shall be possible to configure call routing data in the
         ICO MSSCs which support the following call routing capabilities:

                  1.   Ordered route choices by call type (e.g.
                       originating/terminating).

                  2.   Ordered route choices by class of service.

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                  3.   Overflow route choices.

                  4.   Selection of routes based on dynamic criteria (e.g. day
                       of week, time of day etc).

                  5.   Forced selection of an operator specified route/circuit
                       for call(s) originating/terminating at the ICO MSSC/VLRs
                       (e.g. test calls to be carried on a specified circuit for
                       tracing purposes).

         7.8.4.6.3.7. It shall be possible to configure applicable addressing,
         routing and signalling link load sharing data for No.7 signalling
         messages of the following protocol layers:

                  1.   Message Transfer Part (MTP).

                  2.   Signalling Connection and Control Part (SCCP).

                  3.   Transaction Capability Application Part (TCAP).

                  4.   Operations and Maintenance Application Part (OMAP).

                  5.   Other Applications User Part including MAP, ISUP and TUP.

         7.8.4.6.3.8. It shall be possible to configure ICO MSSCs to perform
         different numbering and routing analysis with a view to determining the
         destination of calls (e.g. B-number analysis).

         7.8.4.6.3.9. Configuration management data contained in the VLR shall
         include :

                  1.   MSRN tables

                  2.   TMSI tables

                  3.   Database sizes.

         7.8.4.6.3.10. EMPTY

<PAGE>   1549
7.8.4.6.4. FAULT MANAGEMENT

         7.8.4.6.4.1. The NODE-OS shall monitor the operational state of the
         MSSC/VLR.

         7.8.4.6.4.2. EMPTY

         7.8.4.6.4.3. Alarms managed include the following :

                  1.   MSSC/VLR Hardware fault alarms

                  2.   Signalling Link alarms

                  3.   Signalling Link Set alarms

                  4.   Trunk and Trunk group alarms

                  5.   PCM Circuit alarms

                  6.   Failure of interface links to the MSSC and other systems

                  7.   Signalling failures on interface links

                  8.   Excessive number of retries on interface links

                  9.   Automatic switchovers in response to hardware failure

                  10.  Equipment failures without automatic switchovers

                  11.  Database Update alarms

                  12.  Database threshold alarms

         7.8.4.6.4.4. The NODE-OS shall encompass an alarm adaptation facility.
         This shall encompass:

                  1.   The reception of the alarms from all MSSCs currently
                       specified to be supervised in the NODE-OS information
                       model.

                  2.   setting of mandatory attributes and several optional
                       attributes in the Alarm Records.

                  3.   the forwarding of created Alarm records to the Fault
                       Management Kernel.

                  4.   The conversion of an MSSC alarm printout to an Alarm
                       Record.

                  5.   A database consistency check. This shall be made to
                       update the MSSC alarm information in NODE-OS after error
                       situations.

                  6.   The enabling/disabling of the AXE heartbeat supervision.

                  7.   The setting of a heartbeat supervision interval.

                  8.   The modification of the default values for mapping MSSC
                       alarm class to perceived severity and to probable cause.

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                  9.   The modification of the default values for mapping MSSC
                       Alarm Category.

                  10.  The update of the Probable Cause value set for a specific
                       Alarm Slogan.

                  11.  The update of the MSSC specific problem list (Alarm
                       Slogans), of the MSSC Probable Cause List, and of the
                       MSSC Event Type list.

                  12.  The addition/removal of conversion rules for one or more
                       Alarm Slogans.

                  13.  The update of input parameters to conversion rules.

7.8.4.6.5. PERFORMANCE MANAGEMENT

         7.8.4.6.5.1. A variety of performance data will be generated by the
         MSSC for reporting purposes. The exact types and formats will depend on
         the switch chosen but reporting shall include:

                  1.   Traffic Reports

                  2.   Destination Measurements Reports

                  3.   Traffic Measurements for Mobile Calls

                  4.   Holding Times/Call Volumes

         7.8.4.6.5.2. A variety of performance counts shall be kept by the MSSC.
         The MSSC shall maintain data of the following categories at the
         minimum:

                  1.   TRAFFIC VOLUME DATA BY TRUNK GROUPS; traffic counts (call
                       attempts, call completions) on each operator specified
                       trunk group at operator configurable periodic time
                       intervals.

                  2.   SUBSCRIBER BEHAVIOUR RELATED CALL FAILURE; counts of call
                       disposition (Busy, No Answer, Subscriber Not Reachable,
                       etc.).

                  3.   TRAFFIC FAILURES DUE TO SWITCHING ; counts of call lost
                       events due to internal switching nodes failures.

                  4.   EMPTY

                  5.   TRAFFIC FAILURES DUE TO TRUNKING ; counts of call
                       failures due to trunk failure.

                  6.   BLOCKED CALLS ; counts of blocked calls due to circuit
                       unavailable.

                  7.   INTERRUPTED CALLS ; counts of call lost events other than
                       calls cleared by normal subscriber call clearing
                       procedures.

                  8.   COUNTS OF NON-CIRCUIT RELATED SIGNALLING TRANSACTIONS
                       (e.g. number of location updates during an operator
                       specified interval).

                  9.   COUNTS OF CIRCUIT RELATED SIGNALLING TRANSACTIONS (e.g.
                       counts and ratios of successful versus failed subscriber
                       authentication challenges).

                  10.  TRAFFIC VOLUME DATA BY GEOGRAPHICAL AREA ; traffic counts
                       (call attempts, call completions) for traffic
                       originated/terminated at a local subscription area ( e.g.
                       a set of one or more ICO Service Areas) at operator
                       configurable periodic time intervals.

                  11.  TRAFFIC VOLUME DATA BY SERVICE TYPE ; traffic counts (
                       call attempts, call completions) of each teleservice and
                       bearer service supported by the ICO MSSCs at operator
                       configurable periodic time intervals.

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                  12.  TRAFFIC VOLUME DATA BY CALL TYPES; call types shall
                       include, at the minimum, Mobile Originated Calls, Mobile
                       Terminated Calls, Forwarded Calls, Emergency Calls etc..
                       Traffic counts (call attempts, call completions) on each
                       operator specified call types at configurable periodic
                       time intervals.

         7.8.4.6.5.3. A variety of performance parameter measurements shall be
         recorded by the MSSC/VLR. Typical parameters shall include at the
         minimum:

                  1.   CALL SET-UP TIMES; (e.g. post-dial delay, time from
                       dialled digits received to alerting subscribers)

                  2.   CALL HOLDING TIMES; Call holding time by service type,
                       call type and trunk group.

                  3.   PROCESSOR LOAD LEVEL; (e.g. central processor occupancy
                       at the served traffic at the MSSC).

                  4.   NUMBER OF TRANSMITTED CHECK IMEI REQUESTS

                  5.   NUMBER OF IMEI CHECK "HITS" :

                       A)   BLACK LIST

                       B)   GREY LIST

                       C)   WHITE LIST

         7.8.4.6.5.4. EMPTY

         7.8.4.6.5.5. EMPTY

         7.8.4.6.5.6. EMPTY

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         7.8.4.6.5.7. EMPTY

         7.8.4.6.5.8. EMPTY

         7.8.4.6.5.9. EMPTY

         7.8.4.6.5.10. EMPTY

         7.8.4.6.5.11. The performance measurements measured by the MSSC and
         available through the NODE-OS OAM interface shall include the
         information to allow the calculation of:

                  1.   total call holding time categorised by (UT location,
                       F/R), mobile-originated or mobile-terminated, (service
                       type, F/R), time and day.

                  2.   total call counts (attempts and completion) categorised
                       by (UT location, F/R), mobile-originated,
                       mobile-terminated, (service type, F/R), time and day.

         7.8.4.6.5.12. The interval and resolution of measurements shall be
         configurable so that the measurements data can be efficiently utilised
         for traffic planning at the SRMC.

         7.8.4.6.5.13. Performance measurements recorded by the MSSC/VLR shall
         be made available through the NODE-OS OAM interface for the purpose of
         further analysis and predictions in Traffic Planning at the SRMC.

7.8.4.6.6. SECURITY MANAGEMENT

7.8.4.6.6.1. None

7.8.4.7.  IGF MESSAGING PLATFORM

7.8.4.7.1. GENERAL DESCRIPTION

         7.8.4.7.1.1. The IGF Messaging Platform is composed of a number of
         messaging nodes to be deployed in the ICONET to deliver the service
         requirements of Section 4.5 of the IGF Requirements.

7.8.4.7.2. GENERAL REQUIREMENTS

         7.8.4.7.2.1. The IGF Messaging Platform shall provide an OAM facility
         adhering to a recognised MMI standard.

         7.8.4.7.2.2. From the OAM facility it shall be possible to interrogate,
         monitor, control and modify the IGF Messaging Platform environment.

         7.8.4.7.2.3. The IGF Messaging Platform shall support multi-access for
         OAM operations.

         7.8.4.7.2.4. The IGF Messaging Platform shall support an interface to
         the NODE-OS at the NMC/B-NMC and (remote) SAN.

         7.8.4.7.2.5. The NODE-OS IGF Messaging Platform interface shall enable
         interaction via a standardised and recognised management protocol and
         interface.

         7.8.4.7.2.6. From the NODE-OS, it shall be possible to perform
         operations on multiple messaging nodes to ensure node consistency.

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         7.8.4.7.2.7. The NODE-OS shall support capacity enhancements to the IGF
         Messaging Platform in the future.

         7.8.4.7.2.8. It shall be possible to manage messaging services upgrade
         to the IGF Messaging Platform via the OAM facility.

         7.8.4.7.2.9. It shall be possible to obtain statistical and performance
         reports on the IGF Messaging Platform via the OAM. Typical these
         reports will cover traffic, subscriber and message activity.

7.8.4.7.3. CONFIGURATION MANAGEMENT

         7.8.4.7.3.1. It shall be possible to log into the IGF Messaging
         Platform for OAM operations :

                  1.   Locally from a dedicated OAM terminal at the messaging
                       node site.

                  2.   Remotely from the SAN (via the NODE-OS Terminal)

                  3.   Remotely from the NMC (if the IGF Messaging Platform is
                       not sited at the NMC), via the NODE-OS.

         7.8.4.7.3.2. The IGF Messaging Platform OAM interface shall provide a
         facility for the messaging nodes to supply status information to the
         NODE-OS. Typical status information is required of the current hardware
         and software configuration of each of the messaging nodes (namely,
         processing subsystem, storage subsystem, front-end subsystem, OAM
         subsystem, database management system).

         7.8.4.7.3.3. It shall be possible to configure specific failure event
         conditions for reporting to the NODE-OS.

         7.8.4.7.3.4. The IGF Messaging Platform shall support the following
         functions in relation to the interface to the NODE-OS:

                  1.   Conversion of the received IGF Messaging Platform alarms
                       to NODE-OS format

                  2.   Reconciliation of NODE-OS alarm information with the
                       Messaging Platform alarm information.

         7.8.4.7.3.5. It shall be possible to configure IGF Messaging Platform
         thresholds and settings (e.g. system database settings, parameters,
         etc.).

         7.8.4.7.3.6. It shall be possible to log configuration changes (e.g.
         database modification, parameter adjustments, etc.).

         7.8.4.7.3.7. It shall be possible for the IGF Messaging Platform to
         support remote installation of upgraded software for each Messaging
         Node.

7.8.4.7.4. FAULT MANAGEMENT

         7.8.4.7.4.1. The NODE-OS shall manage the alarms generated by the IGF
         Messaging Platform.

         7.8.4.7.4.2. Typical alarms reported shall include:

                  1.   Equipment alarms

                  2.   Software processing alarms

                  3.   Communication alarms

                  4.   Database alarms (e.g. update, recovery, threshold
                       violation, etc.)

                  5.   IGF Messaging Platform service failures (e.g. voice mail,
                       data, etc.)

                  6.   Message validation failures

                  7.   Signalling errors

                  8.   Excessive number of SMS retries (e.g. due to failed SMS
                       attempts)

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                  9.   Storage/Retrieval errors.

         7.8.4.7.4.3. The IGF Messaging Platform OAM shall maintain an event log
         for local error and event messages.

         7.8.4.7.4.4. It shall be possible to filter event log(s) using
         pre-defined and/or custom filters.

7.8.4.7.5. PERFORMANCE MANAGEMENT

         7.8.4.7.5.1. A variety of performance related parameters/statistical
         measurements shall be recorded concerning with the SMS-C function of
         the IGF Messaging Platform. Typical information shall include:

                  1.   Counts of incoming SMS messages received by the SMS-C.

                  2.   For mobile terminating short messages, performance
                       related statistics shall include:

                       a)   Counts of attempted/successful mobile terminating
                       short messages delivery.

                       b)   Short messages distributed per time period.

                       c)   No. of stored messages to be distributed.

                       d)   No. of short message delivery notification messages
                       received.

                       e)   Average Short Message lengths.

         7.8.4.7.5.2. A variety of performance related parameters/statistical
         measurements shall be recorded concerning with the messaging functions
         (i.e. voicemail, faxmail and email) of the IGF messaging platform.
         Typical parameters shall include at the minimum:

                  1.   Counts of incoming voicemail/faxmail/email calls at
                       operator configurable periodic time intervals at the IGF
                       Messaging Platform for depositing messages.

                  2.   Counts of incoming calls at operator configurable
                       periodic time intervals to retrieve deposited messages.

                  3.   Total length of deposited voice mail/fax mail/email
                       messages.

                  4.   Counts of attempted/successful out-dial calls at operator
                       configurable periodic time intervals to deliver fax mail
                       and email deposited in the IGF Messaging Platform.

7.8.4.7.6. SECURITY MANAGEMENT

         7.8.4.7.6.1. It shall be possible to limit access to the IGF Messaging
         Platform via a login/password control mechanism.

         7.8.4.7.6.2. This access control facility shall be configurable.

         7.8.4.7.6.3. It shall be possible to log all operator activities
         towards the IGF Messaging Platform exchange.

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7.8.4.8. HOME LOCATION REGISTER

7.8.4.8.1. GENERAL DESCRIPTION

         7.8.4.8.1.1. The HLR is a database where subscriptions are defined with
         the IMSI and MSISDN number(s) attached. Attributes belonging to each
         subscription (categories, supplementary services, basic
         telecommunications services, locations) are also identified here.
         Authentication triplets requested from the AuC are also stored here.

7.8.4.8.2. GENERAL REQUIREMENTS

         7.8.4.8.2.1. Management functions, functional entities and objects
         required from the HLR shall be as defined in GSM 12.02 as far as is
         possible.

         7.8.4.8.2.2. The following functionalities shall be supported in the
         dialogue between the NODE-OS and the HLR:

                  1.   connection and association handling;

                  2.   command and response communication to and from the
                       switch, including spontaneous report reception;

                  3.   logging and authority control;

                  4.   file administration;

                  5.   file transfer;

                  6.   event logging;

                  7.   subscription handling, which is a general mechanism for
                       distribution of files, delayed responses, and spontaneous
                       reports received from the switch.

7.8.4.8.3. CONFIGURATION MANAGEMENT

         7.8.4.8.3.1. The HLR shall contain the following (minimum) information
         related to a subscriber taking up a subscription:

                  1.   The International Mobile Subscriber Identity (IMSI),
                       which corresponds to that held in the subscriber's
                       Subscriber Identify Module (SIM).

                  2.   MSISDNs allocated against an IMSI.

                  3.   Supplementary services allocated to and/or taken up by a
                       subscriber.

                  4.   The address of the VLR at which a subscriber is
                       registered.

         7.8.4.8.3.2. EMPTY

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7.8.4.8.4. FAULT MANAGEMENT

         7.8.4.8.4.1. The NODE-OS shall monitor the operational state of the
         HLR.

         7.8.4.8.4.2. EMPTY

         7.8.4.8.4.3. Alarms to be managed shall include:

                  1.   HLR Hardware Fault alarms

                  2.   Signalling Link Set alarms

                  3.   Database Update alarms

                  4.   Automatic Database recovery initiated alarms

                  5.   Database threshold alarms

                  6.   Signalling failures on GSM interface links

                  7.   Excessive number of retries on GSM interface links

                  8.   Threshold Alarms

         7.8.4.8.4.4. The NODE-OS shall encompass an alarm adaptation facility.
         This shall include:

                  1.   The reception of the alarms from the HLR currently
                       specified to be supervised in the NODE-OS information
                       model.

                  2.   setting of mandatory attributes and several optional
                       attributes in the Alarm Records.

                  3.   the forwarding of created Alarm records to the Fault
                       Management Kernel.

                  4.   The conversion of an HLR alarm printout to an Alarm
                       Record.

                  5.   A database consistency check. This shall be made to
                       update the HLR alarm information in NODE-OS after error
                       situations.

                  6.   The enabling/disabling of the AXE heartbeat supervision.

                  7.   The setting of a heartbeat supervision interval.

                  8.   The modification of the default values for mapping HLR
                       alarm class to perceived severity and to probable cause.

                  9.   The modification of the default values for mapping HLR
                       Alarm Category.

                  10.  The update of the Probable Cause value set for a specific
                       Alarm Slogan.

                  11.  The update of the HLR specific problem list (Alarm
                       Slogans), of the HLR Probable Cause List, and of the HLR
                       Event Type list.

                  12.  The addition/removal of conversion rules for one or more
                       Alarm Slogans.

                  13.  The update of input parameters to conversion rules.

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7.8.4.8.5. PERFORMANCE MANAGEMENT

         7.8.4.8.5.1. The HLR shall report:

                  1.   Processor load level (e.g. central and regional processor
                       occupancy) and memory usage.

                  2.   Database size

                  3.   Signalling transactions failure rates (example of
                       signalling transactions: MAP-Update-Location,
                       MAP-Interrogation-SS).

                  4.   Provisioning subscriber profile activation timestamp.

         7.8.4.8.5.2. A variety of performance parameter measurements shall be
         recorded concerning with the HLR. Typical parameters shall include at
         the minimum:

                  1.   Subscription activity/profile measurements

                  2.   Number of Attempted/successful user location updates

                  3.   Attempted/successful request for MSRN

                  4.   Number of added subscribers by time period.

7.8.4.8.6. SECURITY MANAGEMENT

         7.8.4.8.6.1. None

7.8.4.9. AUTHENTICATION CENTRE

7.8.4.9.1. GENERAL DESCRIPTION

         7.8.4.9.1.1. The AuC network element stores data for each mobile
         subscriber to allow the international mobile subscriber identity to be
         authenticated and to allow communication over the radio path between
         the mobile station and the network to be ciphered. The AuC is
         responsible for providing the authenticating keys for authorising ICO
         subscribers access to the ICONET

         7.8.4.9.1.2. EMPTY

7.8.4.9.2. GENERAL REQUIREMENTS

         7.8.4.9.2.1. Management functions, functional entities and objects
         required from the AUC shall be as defined in the Ericsson SoC to GSM
         12.02.

7.8.4.9.3. CONFIGURATION MANAGEMENT

         7.8.4.9.3.1. EMPTY

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         7.8.4.9.3.2. It shall be possible to set up/release a data connection
         from the NODE-OS to the AuC.

         7.8.4.9.3.3. The NODE-OS shall support AuC OAM via its command handling
         function.

         7.8.4.9.3.4. AuC shall support software downloading, back-ups and bulk
         data loading.

         7.8.4.9.3.5. EMPTY

         7.8.4.9.3.6. EMPTY

         7.8.4.9.3.7. It shall be possible to configure AuC address(s),
         signalling point code(s), No.7 links, linksets and No.7 signalling
         configuration of the protocol layers including MTP, SCCP, TCAP and MAP.

7.8.4.9.4. FAULT MANAGEMENT

         7.8.4.9.4.1. The NODE-OS shall monitor the operational state of the
         AuC.

         7.8.4.9.4.2. EMPTY

         7.8.4.9.4.3. Alarms to be managed shall include:

                  1.   Local AuC Hardware Fault Alarms

                  2.   Database Update alarms

                  3.   Automatic Database recovery initiated alarms

                  4.   Database threshold alarms

                  5.   Signalling failures on GSM interface links

                  6.   Excessive number of retries on GSM interface links (F/R)

                  7.   Threshold Alarms.

         7.8.4.9.4.4. It shall be possible to receive at the NODE-OS all events
         originating from the AuC.

         7.8.4.9.4.5. The processing of the AuC events/alarms and the
         translation into NODE-OS event/alarm record format shall be supported.

         7.8.4.9.4.6. The setting of the mandatory attributes and of the
         optional attributes in the NODE-OS alarm record shall be supported.

         7.8.4.9.4.7. The connection to AuC shall be supervised.

7.8.4.9.5. PERFORMANCE MANAGEMENT

         7.8.4.9.5.1.

                  1. EMPTY

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         7.8.4.9.5.2.

                  1.   EMPTY

         7.8.4.9.5.3. The AuC shall report performance statistics and
         measurements including:

                  1.   Database size.

                  2.   Processors load level and memory usage.

                  3.   Count of authentication sets generated.

                  4.   Number of subscribers in the AuC database.

         7.8.4.9.5.4. A variety of performance parameter measurements shall be
         recorded concerning with the AuC. Typical AuC parameters shall include
         at the minimum:

                  1.   Total number of transactions per hour

                  2.   Database size and percent space utilisation

7.8.4.9.6. SECURITY MANAGEMENT

         7.8.4.9.6.1. None

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7.8.4.10. INTERWORKING LOCATION REGISTER

7.8.4.10.1. GENERAL DESCRIPTION

         7.8.4.10.1.1. The ILR forms part of the cellular/satellite interworking
         function which enables roaming of ICO subscribers between the ICONET
         and other cellular networks as described in Section 4. The ILR is a
         database which is based on the ICO HLR construct.

7.8.4.10.2. GENERAL REQUIREMENTS

         7.8.4.10.2.1. The following functionalities shall be supported in the
         dialogue between the NODE-OS and the ILR:

                  1.   connection and association handling;

                  2.   command and response communication to and from the ILR,
                       including spontaneous report reception;

                  3.   logging and authority control;

                  4.   file administration;

                  5.   file transfer;

                  6.   event logging;

                  7.   subscription handling, which is a general mechanism for
                       distribution of files, delayed responses, and spontaneous
                       reports received from the ILR.

7.8.4.10.3. CONFIGURATION MANAGEMENT

         7.8.4.10.3.1. EMPTY

7.8.4.10.4. FAULT MANAGEMENT

         7.8.4.10.4.1. The NODE-OS shall manage the alarms generated by the ILR
         subsystem.

         7.8.4.10.4.2. The NODE-OS shall monitor the operational state of the
         ILR.

         7.8.4.10.4.3. EMPTY

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         7.8.4.10.4.4. Alarms to be managed shall include:

                  1.   ILR Hardware Fault Alarms

                  2.   Database Update alarms

                  3.   System restarts.

                  4.   Database threshold alarms

                  5.   Signalling failures on interface links

                  6.   Excessive number of retries on interface links

                  7.   Threshold Alarms.

         7.8.4.10.4.5. The NODE-OS shall encompass an alarm adaptation facility.
         This shall include:

                  1.   The reception of the alarms from all ILRs currently
                       specified to be supervised in the NODE-OS information
                       model.

                  2.   setting of mandatory attributes and several optional
                       attributes in the Alarm Records.

                  3.   the forwarding of created Alarm records to the Fault
                       Management Kernel.

                  4.   The conversion of an ILR alarm printout to an Alarm
                       Record.

                  5.   A database consistency check. This shall be made to
                       update the ILR alarm information in NODE-OS after error
                       situations.

                  6.   The enabling/disabling of the ILR heartbeat supervision.

                  7.   The setting of a heartbeat supervision interval.

                  8.   The modification of the default values for mapping ILR
                       alarm class to perceived severity and to probable cause.

                  9.   The modification of the default values for mapping ILR
                       Alarm Category.

                  10.  The update of the Probable Cause value set for a specific
                       Alarm Slogan.

                  11.  The update of the ILR specific problem list (Alarm
                       Slogans), of the ILR Probable Cause List, and of the ILR
                       Event Type list.

                  12.  The addition/removal of conversion rules for one or more
                       Alarm Slogans.

                  13.  The update of input parameters to conversion rules.

7.8.4.10.5. PERFORMANCE MANAGEMENT

         7.8.4.10.5.1. The ILR shall report:

                  1.   Processor load level (e.g. central and regional processor
                       occupancy) and memory usage

                  2.   database size

                  3.   update and query failure rates

                  4.   Provisioning subscriber profile activation timestamp.

         7.8.4.10.5.2. A variety of performance parameter measurements shall be
         recorded concerning with the ILR. Typical parameters shall be as per
         the HLR.

7.8.4.10.6. SECURITY MANAGEMENT

         7.8.4.10.6.1. None.

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7.8.4.11. INTELLIGENT NETWORK SYSTEM  (F/R)

         7.8.4.11.1. The IN platform provides customised services for calls
         to/from both ICO subscribers and roamers within the ICONET.

         7.8.4.11.2. It consists of these network elements (in the following
         referred to as the IN systems): Service Switching Function (SSF),
         Intelligent Peripherals (IP), Service Control Point (SCP), Service
         Management Point (SMP), Service Creation Environment (SCE).

         7.8.4.11.3. Provisions shall be included for the operator to manage the
         IN systems adopted across the various ICONET elements. Such management
         shall encompass:

                  1.   Fault Management - monitoring of IN systems (including
                       SMAS, SCP) shall be provided including alarm
                       surveillance, alarm analysis. Fault detection, fault
                       location and fault correction is required.

                  2.   Alarm forwarding shall be supported from SMP/SCP to the
                       NODE-OS (F/R)

                  3.   Configuration Management - this shall encompass MSSC
                       (SSF) and SS#7, network change introduction and
                       maintenance support. It shall be possible to configure
                       event thresholds.

                  4.   Performance Management - the real-time collection,
                       reporting and presentation of measurement data from the
                       IN systems and counters shall be supported. The
                       capability to collect statistics (usage of all IN
                       services, errors when executing IN services, etc.).

7.8.4.12. SIGNALLING SYSTEM

         7.8.4.12.1. Common Channel Signalling System Number 7 (CCS#7) acts as
         the signalling backbone for the signalling between the IGF CCS#7
         signalling nodes of the ICONET. As such, its continual management is an
         important consideration.

         7.8.4.12.2. CCS#7 Management shall be compliant with the relevant
         industry standards (e.g. ITU-T, ANSI SS7).

         7.8.4.12.3. It shall be possible for the operators at the P-NMC/B-NMC
         to manage the CCS#7 signalling network implemented as part of the
         ICONET. The means to manage the CCS#7 signalling network shall be
         realised by a combination of LINK-NMS, NODE-OS, SAN-NMS and the
         available O&M functions of the managed network element concerned. Such
         management shall encompass:

                  1.   Fault Management - Signalling links/linksets failures
                       detected by a IGF CCS#7 signalling node shall be
                       escalated and communicated to the SAN-NMS or NODE-OS for
                       higher level attention. Management facilities shall also
                       be provided to network operators to diagnose the reported
                       faults/alarms and to treat real time signalling link
                       failures. For the avoidance of doubt, the fault
                       management facilities shall provide for the testing of
                       faults in order to confirm successful recovery action
                       (e.g. link failure clearance, etc.). In addition, the
                       SAN-NMS and LINK-NMS shall provided facilities to allow
                       for correlation of faults. Reporting shall also be
                       possible for potential failures such as congestion build
                       up and blocking.

                  2.   Configuration Management - this shall provide facilities
                       to allow for CCS#7 network change introduction and for
                       the operation and maintenance support of managed IGF
                       CCS#7 signalling nodes. In addition, CCS#7 network
                       planning facilities (F/R) (forecasting, routing, trunk
                       dimensioning) shall be supported.

                  3.   Performance Management - this shall provide facilities to
                       allow for the periodic collection (e.g. every 15
                       minutes), reporting and presentation of performance

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               related data (e.g. signalling traffic parameters, etc.) via using
               statistics and counters, from the managed IGF CCS#7 signalling
               nodes

         7.8.4.12.4. (It shall be possible to retain a network-wide display of
         the CCS7 operations and resources (e.g. network set-up, routing,
         trunks, etc.) (F/R)).

7.8.4.13. EQUIPMENT IDENTIFICATION REGISTER

         7.8.4.13.1. The EIR provides a global repository for the data required
         to validate the user terminal. It supports the detection of illegal or
         cloned equipment (white list), the detection of stolen equipment (black
         list) and the monitoring of faulty equipment (grey list).

7.8.4.13.1. GENERAL REQUIREMENTS

         7.8.4.13.1.1. Management functions, functional entities and objects
         required from the EIR shall be as defined in the Ericsson SoC to GSM
         12.02.

7.8.4.13.2. CONFIGURATION MANAGEMENT

         7.8.4.13.2.1. The EIR shall maintain the following lists of user
         terminal IMEIs:

                  1.   White List.      These are ranges of "normal" devices,
                       authorised to make calls on the network.

                  2.   Grey List.       These devices are "suspect" numbers.

                  3.   Black List.      IMEIs on the black list are either
                  stolen, suspended for non-payment or are faulty devices. They
                  are forbidden to make calls on the ICO network.

         7.8.4.13.2.2. It shall be possible to set up/release a data connection
         from the NODE-OS to the EIR.

         7.8.4.13.2.3. The NODE-OS shall support EIR OAM via its command
         handling function.

         7.8.4.13.2.4. EIR shall support software downloading, back-ups and bulk
         data loading.

         7.8.4.13.2.5. For the EIR, it shall be possible to configure the order
         in which the IMEI equipment lists are searched for the reported IMEI.

         7.8.4.13.2.6. For the EIR, it shall be possible to configure the
         response of the IMEI search returned from each defined IMEI equipment
         list.

         7.8.4.9.3.7. It shall be possible to configure EIR address(s),
         signalling point code(s), No.7 links, linksets and No.7 signalling
         configuration of the protocol layers including MTP, SCCP, TCAP and MAP.

7.8.4.13.3. FAULT MANAGEMENT

         7.8.4.13.3.1. The NODE-OS shall monitor the operational state of the
         EIR.

         7.8.4.13.3.2. Alarms to be managed shall include:

                  1.   Local EIR Hardware Fault Alarms

                  2.   Database Update alarms

                  3.   Automatic Database recovery initiated alarms

                  4.   Database threshold alarms

                  5.   Signalling failures on GSM interface links

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                  6.   Excessive number of retries on GSM interface links (F/R)

                  7.   Threshold Alarms.

         7.8.4.13.3.3. It shall be possible to receive at the NODE-OS all events
         originating from the EIR.

         7.8.4.13.3.4. The processing of the EIR events/alarms and the
         translation into NODE-OS event/alarm record format shall be supported.

         7.8.4.13.3.5. The setting of the mandatory attributes and of the
         optional attributes in the NODE-OS alarm record shall be supported.

         7.8.4.13.3.6. The connection to EIR shall be supervised.

7.8.4.13.4. PERFORMANCE MANAGEMENT

         7.8.4.13.4.1. The EIR shall report performance statistics and
         measurements including:

                  1.   Signalling transaction load level

                  2.   Database size

                  3.   Processor load level and memory usage.

                  4.   Count of IMEI accesses by response (black, grey, white,
                       unknown IMEI).

                  5.   Count of IMEI accesses by equipment list.

                  6.   Count of IMEI accesses by type (particular TAC/FAC
                       combination).

         7.8.4.13.4.2. A variety of performance parameter measurements shall be
         recorded concerning with the EIR. Typical EIR Parameters shall include
         at the minimum:

                  1.   Number of total requests

                  2.   Number of queries for unidentified equipment

                  3.   Database size and percent utilisation

                  4.   Number of received CHECK_IMEI requests

                  5.   Number of white answers in EIR

                  6.   Number of grey answers in EIR

                  7.   Number of black answers in EIR

                  8.   Number of unknown IMEI answers

7.8.4.13.5. SECURITY MANAGEMENT

         7.8.4.13.5.1. None

7.8.5. SATELLITE ACCESS NODE

7.8.5.1. GENERAL DESCRIPTION

         7.8.5.1.1. The SAN-OSS system is a single centralised point at the SAN
         where the complete functionality of the SAN can be monitored. The OSS
         also acts as a Mediation Device in support of the functionality
         required at the NMC.

         7.8.5.1.2. The objective of the SAN-OSS system is to maximise the
         availability and performance of the local SAN equipment.

         7.8.5.1.3. The OT&DF is to be treated as a SAN.

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7.8.5.2. GENERAL REQUIREMENTS

         7.8.5.2.1. The SAN-OSS OAM interface shall provide access to backup and
         restoration procedures associated with the SAN-OSS.

         7.8.5.2.2. The SAN-OSS OAM interface shall provide the following
         software upgrade facilities:

                  1.   download new versions of software from the NMC.

                  2.   replace the current version of software with the new
                       version.

                  3.   replace the current version of software with the previous
                       version.

                  4.   extract existing software version information for the
                       three versions of software.

         7.8.5.2.3. It shall be possible to integrate further elements into the
         SAN-OSS at a later date with the minimum disruption, for the purposes
         of network expansion.

7.8.5.3. CONFIGURATION MANAGEMENT

         7.8.5.3.1. The SAN-OSS OAM interface shall provide a facility for the
         SAN-OSS to supply status to the NMC.

         7.8.5.3.2. The SAN OAM interface shall forward SAN events to the NMS.

         7.8.5.3.3. The SAN OAM interface shall allow the NMS to:

                  1.   configure SAN event parameters.

                  2.   initiate archiving of the SAN event data.

                  3.   purge SAN event data.

                  4.   access SAN event data.

         7.8.5.3.4. The SAN-OSS OAM interface shall provide access to parameters
         requiring configuration by the NMC.

7.8.5.4. FAULT MANAGEMENT

         7.8.5.4.1. The SAN-OSS OAM interface shall forward the raising and
         clearing of SAN-OSS alarms to the NMC, including the following:

                  1.   Miscellaneous alarms.

                  2.   Communication alarms.

                  3.   Equipment alarms.

                  4.   Processing error alarms.

                  5.   Quality of service alarms.

                  6.   Alarm Severity.

         7.8.5.4.2. Each SAN-OSS alarm forwarded to the NMC shall contain:

                  1.   an object identifier unique to the SAN-OSS.

                  2.   date and time of when the alarm was raised or cleared.

                  3.   alarm description.

                  4.   source of the alarm for the purpose of fault location.

         7.8.5.4.3. The SAN OAM interface shall allow the NMS to:

                  1.   configure SAN alarm parameters.

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                  2.   initiate archiving of the SAN alarm data.

                  3.   purge SAN alarm data.

                  4.   access SAN alarm data using filters supplied by the NMS.

7.8.5.5. PERFORMANCE MANAGEMENT

         7.8.5.5.1. The SAN-OSS OAM interface shall allow the NMC to:

                  1.   configure SAN-OSS performance parameters.

                  2.   initiate archiving of the SAN-OSS performance data.

                  3.   purge SAN-OSS performance data.

                  4.   access SAN-OSS performance data using filters supplied by
                       the NMC.

                  5.   configure periodic transfer of SAN performance data to
                       NMS using filters.

7.8.5.6. SECURITY MANAGEMENT

         7.8.5.6.1. The SAN-OSS OAM interface shall provide access control
         facilities to all SAN-OSS OAM interface functionality.

7.8.6. HIGH POWER NOTIFICATION

7.8.6.1. GENERAL DESCRIPTION

         7.8.6.1.1. High Power Notification delivers a short paging message to a
         user who is out of reach of the normal ICO communication services which
         are supported through line-of-sight satellite paths. The HPN service is
         a supplementary service that is triggered by failed mobile terminated
         (MT) short message delivery, and failed MT call attempts.

7.8.6.2. GENERAL REQUIREMENTS

         7.8.6.2.1. The HPN OAM interface shall provide the following software
         upgrade facilities:

                  1.   download new versions of software from the NMS.

                  2.   replace the current version of software with the new
                       version.

                  3.   replace the current version of software with the previous
                       version.

                  4.   extract existing software version information for the
                       three versions of software.

         7.8.6.2.2. The HPN OAM interface shall encompass the management of the
         HPN hardware and software which implements the HPN-SC, the HPN Channel
         Manager, the HPN Local SRMS, HPN Channel Unit and HPN-PCS functions.

         7.8.6.2.3. The HPN OAM subsystem shall support an interface to the
         SAN-OSS, for receipt of global configuration parameters and providing
         fault and performance management information.

         7.8.6.2.4. The HPN OAM subsystem shall support an interface for an MMI
         to allow for local equipment control, and limited fault management.

         7.8.6.2.5. The HPN ChM shall be capable of uploading the event records
         to the NMC via the HPN OAM subsystem.

7.8.6.3. CONFIGURATION MANAGEMENT

         7.8.6.3.1. The HPN OAM interface shall:

                  1.   allow the SAN-OSS to configure HPN event logging.

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                  2.   be used to report events to the SAN-OSS for archiving of
                       the HPN event data.

                  3.   provide HPN request/delivery event logs for SAN-OSS
                       retrieval, via ftp

                  4.   maintain HPN request/delivery logs for [7] days.

         7.8.6.3.2. The HPN OAM interface shall forward low storage threshold
         alarms when the available event data storage reaches a level specified
         by the operator at the MMI

         7.8.6.3.3. The HPN event data available through the HPN OAM interface
         shall consist of the following:

                  1.   HPN request event records

                  2.   HPN delivery event records.

         7.8.6.3.4. The HPN OAM interface shall provide access to HPN subsystem
         parameters requiring configuration by the NMS, such as:

                  1.   number of micro-diversity retries for HPN messages.

                  2.   period between micro-diversity retries for HPN messages.

                  3.   number of macro-diversity retries for HPN messages.

                  4.   period between macro-diversity retries for HPN messages

                  5.   HPN satellite selection criteria

                  6.   H/V algorithm parameters.

                  7.   ICONET SAN administrative / operational status
                       parameters.

                  8.   satellite channelisation plan generated by the SRMC

                  9.   satellite HPN transponder switching delay characteristics
                       (time delay values for table swapping and index
                       selection).

         7.8.6.3.5. The HPN OAM interface shall allow an operator accessing
         remotely from the NMS to:

                  1.   monitor the HPN to determine if the HPN is visible to the
                       network.

                  2.   initiate start-up and shutdown procedures for elements
                       associated with the HPN.

                  3.   enable/remove links from service.

         7.8.6.3.6. Test Message Generation

                  1.   It shall be possible to instigate test messages across
                       the HPN service.

                  2.   Pre-defined routine test messages shall be available and
                       easily activated from the NMC and SAN.

                  3.   It shall be possible for authorised users to enter test
                       messages directly via the command line interface in
                       emergency situations.

7.8.6.4. FAULT MANAGEMENT

         7.8.6.4.1. The HPN OAM interface shall forward the raising and clearing
         of HPN alarms, associated with the five HPN functional subsystems
         (HPN-SC, HPN-ChM, HPN-Local SRMS, HPN OAM, HPN ChUs and HPN-PCS) to the
         NMS. This shall include alarms for the following:

                  1.   Miscellaneous alarms.

                  2.   Communication alarms.

                  3.   Equipment alarms.

                  4.   Processing error alarms.

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                  5.   Quality of service alarms.

                  6.   Database update alarms.

                  7.   Automatic database recovery initiated alarms.

                  8.   Database threshold alarms.

                  9.   Signalling failures on GSM interface links.

                  10.  Excessive number of retries on GSM interface links.

                  11.  Excessive number of failed HPN attempts (F/R)

         7.8.6.4.2. The HPN OAM interface shall forward the raising and clearing
         of Channel Manager alarms to the NMS, including the following:

                  1.   Miscellaneous alarms

                  2.   Communication alarms

                  3.   Equipment alarms

                  4.   Processing Error alarms

                  5.   Quality of Service alarms

                  6.   message arrival rate threshold exceeded

         7.8.6.4.3. The HPN OAM interface shall forward the raising and clearing
         of Channel Unit alarms to the NMS, including the following:

                  1.   Communication alarms

                  2.   Equipment alarms

                  3.   Processing error alarms

                  4.   Quality of Service alarms

         7.8.6.4.4. For each HPN alarm forwarded to SAN-OSS, the SAN-OSS shall
         save the following, and forward to the NMS:

                  1.   an alarm identifier unique to the HPN.

                  2.   date and time of when the alarm was raised or cleared.

                  3.   alarm description.

                  4.   source of the alarm for the purpose of fault location.

7.8.6.5. PERFORMANCE MANAGEMENT

         7.8.6.5.1. The HPN OAM interface shall allow the NMS to:

                  1.   retrieve event logs for HPN message request/delivery

                  2.   retrieve raw HPN statistics counters

         7.8.6.5.2. The HPN OAM interface shall forward low storage threshold
         alarms when the available performance data storage reaches a level
         specified by the NMS.

         7.8.6.5.3. The HPN performance data available through the HPN OAM
         interface shall include the following:

                  1.   HPN Request records.

                  2.   HPN Delivery records

                  3.   Performance Statistics including:

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                       a)   number of successfully acknowledged HPN messages

                       b)   number of failed short message delivery attempts
                       received

                       c)   number of failed incoming call attempts received

                       d)   number of macro-diversity attempts

                       e)   number of successful HPN attempts/satellite

                       f)   number of failed HPN attempts/satellite

                       g)   number of HPN messages redirected to other SANs

         7.8.6.5.4. It shall be possible to display key summary performance data
         either locally at the HPN when a terminal is directly attached or
         remotely via a standardised remote login mechanism.

         7.8.6.5.5. It shall be possible to access all performance data stored
         in the HPN MIB from the SAN-OSS and from the NMC.

7.8.6.6. SECURITY MANAGEMENT

         7.8.6.6.1. The HPN OAM interface shall provide access control
         facilities to HPN OAM interface functionality.

7.8.7. ICO PROVIDED PAYLOAD COMMAND SYSTEM

7.8.7.1. GENERAL DESCRIPTION

         7.8.7.1.1. In order to make the most effective use of satellite
         resources, the Satellite Resource Management Centre (SRMC) plans the
         frequency bandwidth, gain, etc. allocated to each spot beam as the
         satellite moves (the channelisation plan), taking into account expected
         traffic load. The payload configuration data is then delivered to the
         ICO provided PCS for uploading to the satellite.

7.8.7.2. GENERAL NETWORK MANAGEMENT REQUIREMENTS

         7.8.7.2.1. The interface between the Central PCS subsystem and the NMS
         shall be defined by a CPCS to NMS Interface Control Document (TBD).

         7.8.7.2.2. The interface between the Remote PCS subsystem and the SAN
         equipment shall be defined by a RPCS to SAN Interface Control Document
         (TBD).

         7.8.7.2.3 DELETED

         7.8.7.2.3. The NMC shall transfer spacecraft information collected by
         the CPCS to the SRMC for the purposes of improving the use of the
         communications satellite resource planning. Typically this information
         will consist of: [C and] S band power levels, power thresholds (TBD),
         Tropo and ALC alarms.

7.8.7.3. NETWORK CONSISTENCY AND MANAGEMENT

         7.8.7.3.1. The NMS shall send to the CPCS subsystem the time window
         within which the payload update is to be successfully loaded at the
         satellite, which is specified by the SRMC.

         7.8.7.3.2. The NMS shall receive and report alarms from the CPCS
         subsystem indicating payload update failure.

         7.8.7.3.3 DELETED

         7.8.7.3.3. The NMS shall receive and report an alarm from the CPCS that
         the payload configuration is not consistent with that planned.

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         7.8.7.3.4. The IGF shall assume that any deviations from the planned
         and actual payload configuration shall be made known to the NMC within
         [25] seconds.

         7.8.7.3.5. The IGF shall assume that restoration to the planned payload
         configuration shall be made known to the NMS.

         7.8.7.3.6. Upon receipt of an alarm from the CPCS of inability to
         configure the payload, or inconsistency of the payload configuration
         with that planned, the NMS shall:

                  1.   Log the event and alarm details.

                  2.   Report the incident to the NMC operator.

                  3.   Transfer the alarm information to the SCC if the operator
                       considered that the spacecraft is in error.

                  4.   Notify all SBS and HPN subsystems in the SANs sharing the
                       inconsistently configured satellite, within [20] seconds
                       after the reception of the alarm, in order to stop all
                       current and future planned transmissions to the affected
                       satellite.

                  5.   Determine a contingency plan, if the operator decides to
                       do so.

                  6.   Implement the contingency plan, if the operator decides
                       to do so.

         7.8.7.3.7. Upon receipt of a notification from the CPCS of restoration
         of the payload configuration, or upon successful implementation of the
         contingency plan, the NMS shall notify all SBS and HPN subsystems
         affected that they can resume the transmissions.

         7.8.7.3.8. Upon receipt of a notification from the NMS of inconsistency
         of the payload configuration, the SBS and HPN shall stop all current
         and future planned transmission to the affected satellite until receipt
         of the notification from the NMS that the payload configuration has
         been restored or the contingency plan is in effect.

         7.8.7.3.9. The NMC shall provide the ability to configure the CPCS as
         defined in the CPCS to NMS ICD (TBD)

         7.8.7.3.10. It shall be possible from the NMS to configure the interval
         that payload status information is transferred to the NMS.

7.8.7.4. PAYLOAD MANAGEMENT

         7.8.7.4.1. The NMS shall be able to periodically request from the CPCS
         archived data of Payload summary status information for subsequent
         storage at the NMS. This status information shall include:

                  1.   [satellite power ([C and] S band)]

                  2.   Tropo detector events and ALC onsets

         7.8.7.4.2. The NMS shall transfer the channelisation plan information
         needed to update the satellite payload generated by the SRMC to the
         CPCS subsystem.

7.8.7.5. GENERAL OAM REQUIREMENTS

         7.8.7.5.1. The IGF shall assume that the PCS shall provide its own
         backup and restoration procedures associated with the PCS.

         7.8.7.5.2. The IGF shall assume that the PCS shall provide its own
         software upgrade facilities:

         7.8.7.5.3. The IGF shall assume that the PCS shall encompass its own
         management of the PCS equipment and software. However, status
         information shall be transferred from the CPCS to the NMS as defined in
         the CPCS to NMs ICD (TBD).

         7.8.7.5.4. Configuration Management

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         7.8.7.6.1 [It shall be possible from the NMS to configure PCS event
         parameters, status controls and alarms as defined by the CPCS to NMS
         ICD (TBD) and the RPCS to SAN ICD (TBD).]

7.8.7.6. FAULT MANAGEMENT

         7.8.7.6.1. The CPCS and RPCS shall forward the raising and clearing of
         PCS alarms to the NMS, according to the CPCS to NMS ICD (TBD) and RPCS
         to SAN ICD (TBD). The IGF shall assume as a minimum that the alarms
         include the following:

                  1.   Communication alarms [TBD].

                  2.   Equipment alarms [TBD].

                  3.   Processing error alarms [TBD].

                  4.   ALC operation alarm.

                  5.   transmission channel overdrive protection alarm.

                  6.   satellite payload configuration mismatch.

                  7.   Payload Threshold Alarm [TBD].

         7.8.7.6.2. Each PCS alarm forwarded to the NMS shall contain:

                  1.   an object identifier unique to the PCS [TBD].

                  2.   date and time of when the alarm was raised or cleared
                       [TBD].

                  3.   alarm description [TBD].

                  4.   source of the alarm for the purpose of fault location
                       [TBD].

         7.8.7.6.3. [From the NMS it shall be possible to configure, purge,
         access, filter and transfer alarm data in accordance with the CPCS to
         NMS ICD (TBD) and RPCS to SAN ICD (TBD).]

7.8.7.7. PERFORMANCE MANAGEMENT

         7.8.7.8.1 [From the NMS it shall be possible to configure, purge,
         access, filter and transfer performance data from the PCS in accordance
         with the CPCS to NMS ICD (TBD) and RPCS to SAN ICD (TBD).]

7.8.7.8. DELETED.

7.8.8. RADIO FREQUENCY TERMINAL

7.8.8.1. GENERAL DESCRIPTION

         7.8.8.1.1. The RFT contains a local OAM. The RFT can also be monitored
         and operated via the SAN-OSS and via the NMC. In normal conditions the
         RFT is monitored by the NMC, and also by the SCC for TT&C. In the event
         of serious space segment failures, the SCC may take direct control of
         the RFT equipment.

         7.8.8.1.2. The RFT OAM allows the operator to monitor and control the
         earth station radio terminal including the five tracking antennas and
         their associated subsystems, and the uplink and downlink chains.

         7.8.8.1.3. For the purposes of network management, the RFT OAM monitors
         the equipment that is shared with the TT&C subsystem at the co-located
         SAN/TT&C sites.

         7.8.8.1.4. The RFT shall encompass the management of the RFT equipment
         and software comprising the ACU, De-ice, Tracking Down Converter,
         Tracking Demodulator, C-band-HPA, S-LNA, TX/RX Path Selector, etc.

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7.8.8.2. GENERAL REQUIREMENTS

         7.8.8.2.1. The RFT OAM interface shall provide access to backup and
         restoration procedures associated with the RFT.

         7.8.8.2.2. The RFT OAM interface shall provide the following software
         upgrade facilities:

                  1.   download new versions of software from the NMS.

                  2.   replace the current version of software with the new
                       version.

                  3.   replace the current version of software with the previous
                       version.

                  4.   extract existing software version information for the
                       three versions of software.

         7.8.8.2.3. The RFT OAM shall be provided in a [hot standby] redundancy
         configuration.

         7.8.8.2.4. [The RFT OAM switchover shall not exceed 5 minutes].

         7.8.8.2.5. A logical link shall exist between the RFT OAM and the
         SAN-OSS to support the relevant information exchange (this shall
         include ephemeris data, etc.).

         7.8.8.2.6. A direct logical interface shall be provided between the RFT
         OAM and the SCC (e.g. through the TT&C ground equipment) to exchange
         alarm, control and status information.

         7.8.8.2.7. In emergency operation of the TT&C, the RFT OAM shall accept
         commands from the SCC only, and shall reject control attempts from the
         SAN-OSS, until the TT&C returns the control back to the SRMS
         controller.

         7.8.8.2.8. The antenna shall be capable of Program Tracking where the
         antenna shall track the satellite autonomously based on the satellite
         ephemeris generated by the SCC and distributed via the NMC.

         7.8.8.2.9. The RFT OAM system shall consist of two MMIs as a primary/
         secondary configuration in the central building.

         7.8.8.2.10. The RFT OAM system shall provide a capability to connect
         another MMI in one of the RFT shelters.

         7.8.8.2.11. The RFT OAM shall have the capability to present a
         graphical view of the RFT configuration chains and to send a command to
         change the parameters of RFT equipment.

         7.8.8.2.12. It shall be possible to send RFT configuration commands
         from the NMC or SAN-OSS to the RFT system.

         7.8.8.2.13. The RFT OAM shall provide an event logging function.

7.8.8.3. CONFIGURATION MANAGEMENT

         7.8.8.3.1. The RFT OAM shall maintain the database as to which
         satellite each RFT Antenna is currently tracking or prepared to track
         at the moment.

         7.8.8.3.2. The RFT OAM interface shall provide a facility for the RFT
         to supply status to the NMS, including the following:

                  7.8.8.3.3. Antenna Control Unit:

                       1.   Control Mode.

                       2.   Drive Mode.

                       3.   Auto Transfer.

                       4.   Program transfer.

                       5.   Auto Enable.

                       6.   Program Enable.

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                       7.   AZ Drive.

                       8.   EL Drive.

                       9.   AZ Position.

                       10.  EL Position.

                       11.  Satellite Acquisition.

                       12.  Program Start Time.

                  7.8.8.3.4. De-ice:

                       1.   Operation Mode.

                       2.   Control Mode.

                       3.   Main REF.

                       4.   Sub REF.

                       5.   Feed Horn.

                       6.   Snow/ICE.

                       7.   Rain.

                  7.8.8.3.5. Tracking Down Converter:

                       1.   Operational Condition.

                       2.   Control Mode.

                       3.   Frequency.

                  7.8.8.3.6. Tracking Demodulator:

                       1.   Operational Condition.

                       2.   Beacon Level.

                       3.   PLL.

                  7.8.8.3.7. C-Band High Power Amplifier:

                       1.   Operational Condition.

                       2.   Control Mode.

                       3.   Output Power.

                       4.   LV.

                       5.   HV.

                       6.   Pre-Heat.

                  7.8.8.3.8. C-Band Low Noise Amplifier:

                       1.   Operational Condition.

                  7.8.8.3.9. Tx/Rx Path Selector:

                       1.   Control Mode.

                       2.   TX Path-A/B Selection.

                       3.   RX Path-A/B Selection.

                  7.8.8.3.10. TT&C Up Converter:

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                       1.   Operational Condition.

                       2.   Control Mode.

                       3.   Frequency.

                  7.8.8.3.11. TT&C Down Converter:

                       1.   Operational Condition.

                       2.   Control Mode.

                       3.   Frequency.

                  7.8.8.3.12. Switch:

                       1.   Control Mode.

                       2.   SW Status.

                  7.8.8.3.13. C-Band Up Converter:

                       1.   Operational condition.

                  7.8.8.3.14. C-Band Down Converter:

                       1.   Operational condition.

                  7.8.8.3.15. Automatic Frequency Compensation:

                       1.   Operational Condition.

                       2.   Control Mode.

                       3.   Pilot Frequency-1.

                       4.   Pilot Frequency-2.

                       5.   Pilot-1 Lock Status.

                       6.   Pilot-2 Lock Status.

                       7.   Hold Time.

                  7.8.8.3.16. 5/7GHz Translator:

                       1.   Operational Condition.

                       2.   Control Mode.

                       3.   Local Frequency.

                  7.8.8.3.17. RFT Summary:

                       1.   Operational Condition.

         7.8.8.3.18. The RFT OAM interface shall provide a facility for the TT&C
         to supply status to the NMS, including the following:

                  7.8.8.3.19. TT&C upconverters:

                       1.   Operational condition.

                       2.   Frequency.

                       3.   Upconverter number.

                  7.8.8.3.20. TT&C downconverters:

                       1.   Operational condition.

                       2.   Frequency.

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                       3.   Down converter number.

                  7.8.8.3.21. The RFT OAM interface shall forward RFT events to
                  the NMS.

                  7.8.8.3.22. The RFT OAM interface shall allow the NMS to:

                       1.   configure RFT event parameters.

                       2.   purge RFT event data.

                       3.   access RFT event data.

         7.8.8.3.23. The RFT OAM interface shall provide access to parameters
         requiring configuration by the NMS, including the following:

                  7.8.8.3.24. Antenna Control Unit:

                       1.   Drive Mode.

                       2.   Auto Transfer.

                       3.   Program transfer.

                       4.   AZ Position.

                       5.   EL Position.

                       6.   Program Start Time.

                       7.   Program parameter.

                  7.8.8.3.25. De-ice:

                       1.   Operation Mode.

                       2.   Main REF.

                       3.   Sub REF.

                       4.   Feed Horn.

                  7.8.8.3.26. Tracking Down Converter:

                       1.   Frequency.

                  7.8.8.3.27. C-Band High Power Amplifier:

                       1.   LV.

                       2.   HV.

                       3.   Alarm Reset.

                  7.8.8.3.28. Tx/Rx Path Selector:

                       1.   TX Path-A/B Selection.

                       2.   RX Path-A/B Selection.

                  7.8.8.3.29. TT&C Up Converter:

                       1.   Frequency.

                  7.8.8.3.30. TT&C Down Converter:

                       1.   Frequency.

                  7.8.8.3.31. Switch:

                       1.   SW Status.

                  7.8.8.3.32. 5/7GHz Translator:

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                       1.   Local Frequency.

         7.8.8.3.33. The RFT OAM interface shall provide access to TT&C
         parameters requiring configuration by the NMS.

7.8.8.4. FAULT MANAGEMENT

         7.8.8.4.1. The RFT OAM interface shall forward the raising and clearing
         of RFT alarms to the NMS, including the following:

         7.8.8.4.2. Communication alarms.

         7.8.8.4.3. Antenna Control Unit:

                  1.   Link.

                  2.   Operational Condition.

                  3.   Emergency Stop.

                  4.   AZ Drive Fault.

                  5.   EL Drive Fault.

                  6.   Angle Fault.

                  7.   Low EL.

                  8.   Up Limit.

                  9.   Down Limit.

                  10.  CW Limit.

                  11.  CCW Limit.

                  12.  Dehydrator Alarm.

         7.8.8.4.4. De-ice:

                  1.   Major ALM.

                  2.   Minor ALM.

         7.8.8.4.5. Tracking Down Converter:

                  1.   Operational Condition.

         7.8.8.4.6. Tracking Demodulator:

                  1.   Operational Condition.

                  2.   Beacon Level Alarm.

         7.8.8.4.7. C-Band High Power Amplifier:

                  1.   Link.

                  2.   Operational Condition.

                  3.   RF CCT Alarm.

                  4.   Cooling Alarm.

                  5.   INTLK Alarm.

                  6.   PS Alarm.

                  7.   Low RF.

         7.8.8.4.8. C-Band Low Noise Amplifier:

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                  1.   Operational Condition.

         7.8.8.4.9. Tx/Rx Path Selector:

                  1.   Link.

                  2.   Path SEL Alarm.

         7.8.8.4.10. TT&C Up Converter:

                  1.   Operational Condition.

         7.8.8.4.11. TT&C Down Converter:

                  1.   Operational Condition.

         7.8.8.4.12. C-Band Up Converter:

                  1.   Operational Condition.

         7.8.8.4.13. C-Band Down Converter:

                  1.   Operational Condition.

         7.8.8.4.14. Automatic Frequency Compensation:

                  1.   Operational Condition.

         7.8.8.4.15. 5/7Ghz Translator:

                  1.   Operational Condition.

         7.8.8.4.16. S-Band SSPA:

                  1.   Operational Condition.

         7.8.8.4.17. S-Band Low Noise Amplifier:

                  1.   Operational Condition.

         7.8.8.4.18. Miscellaneous Alarm:

                  1.   Air Conditioner.

                  2.   Fire Alarm.

         7.8.8.4.19. RFT Summary:

                  1.   Operational Condition.

         7.8.8.4.20. The RFT OAM interface shall forward the raising and
         clearing of TT&C alarms to the NMS, including the following:

         7.8.8.4.21. Equipment alarms [TT&C baseband equipment summary alarm].

         7.8.8.4.22. Each RFT alarm forwarded to the NMS shall contain:

                  1.   an object identifier unique to the RFT.

                  2.   date and time of when the alarm was raised or cleared.

                  3.   alarm description.

         7.8.8.4.23. The RFT OAM interface shall allow the NMS to configure RFT
         alarm parameters.

7.8.8.5. PERFORMANCE MANAGEMENT

         7.8.8.5.1. The RFT OAM interface shall allow the NMS to:

                  1.   configure RFT performance parameters.

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                  2.   purge RFT performance data.

                  3.   access RFT performance data using filters supplied by the
                       NMS.

                  4.   configure periodic transfer of RFT performance data to
                       NMS using filters.

         7.8.8.5.2. The RFT performance data available through the RFT OAM
         interface shall include threshold exceeding data statistics.

7.8.8.6. SECURITY MANAGEMENT

         7.8.8.6.1. The RFT OAM interface shall provide access control
         facilities to all RFT OAM interface functionality.

7.8.9. SATELLITE BASE STATION

7.8.9.1. GENERAL DESCRIPTION

         7.8.9.1.1. The Satellite Base Station is responsible for the monitoring
         and management of the Satellite Access Subsystem and the Satellite
         Processing Subsystem. The Satellite Access Subsystem consists of the
         channel units and their associated elements. The Satellite Processing
         Subsystem consists of the channel manager and it's associated elements.
         The SBS domain also includes the OAM systems for the internal SBS
         Ethernet switch and GPS Receiver systems.

         7.8.9.1.2. SBS OMC (Operations and Maintenance Centre) hosts the
         logical functions for SBS OAM, ChU OAM, CM OAM and RTRM OAM. The SBS
         OMC includes element management for CM, ChU, RTRM and SBS Ethernet
         Switch.

7.8.9.2. GENERAL REQUIREMENTS

         7.8.9.2.1. The SBS OAM interface shall provide access to backup and
         restoration procedures associated with the SBS.

         7.8.9.2.2. The SBS OAM interface shall provide the following software
         upgrade facilities:

                  1.   download new versions of software from the NMS.

                  2.   replace the current version of software with the new
                       version.

                  3.   replace the current version of software with the previous
                       version.

                  4.   extract existing software version information for the
                       three versions of software.

         7.8.9.2.3. The SBS OAM interface shall allow the NMS to:

                  1.   configure SBS resource usage parameters.

                  2.   initiate archiving of the SBS resource usage data.

                  3.   purge SBS resource usage data.

                  4.   access SBS resource usage data using filters supplied by
                       the NMS.

         7.8.9.2.4. The SBS OMC shall use an industry standard remote window
         protocol for displaying all SBS control and configuration applications
         on the SAN-OSS console.

         7.8.9.2.5. The SBS OMC shall use an industry standard network
         management protocol to forward events and alarms to the SAN-OSS.

         7.8.9.2.6. The SBS OMC shall transfer bulk statistics to the SAN-OSS
         via industry standard file transfer protocol. The transfer shall occur
         automatically on a timed schedule or via SBS OMC operator command.

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7.8.9.3. CONFIGURATION MANAGEMENT

         7.8.9.3.1. The SBS OAM interface shall provide a facility for the SBS
         to supply status to the NMS, including the following:

                  1.   Channel Units.

                  2.   Channel Manager.

                  3.   Call Processor.

                  4.   Channel Processor.

                  5.   Switching and Transcoding Module (STM).

                  6.   E1 Cards.

                  7.   T1 Cards.

                  8.   Ethernet Cards.

                  9.   RTRM

         7.8.9.3.2. The SBS OAM interface shall forward SBS events to the NMS.

         7.8.9.3.3. The SBS OAM interface shall allow the NMS to:

                  1.   configure SBS event parameters.

                  2.   initiate archiving of the SBS event data.

                  3.   purge SBS event data.

                  4.   access SBS event data.

         7.8.9.3.4. The SBS OAM interface shall provide access to parameters
         requiring configuration by the NMS.

         7.8.9.3.5. The SBS OAM interface shall provide access to Channel
         Manager parameters requiring configuration by the NMS, including the
         following:

                  1.   Traffic switching between air interface and MSSC.

                  2.   Ciphering control.

         7.8.9.3.6. The SBS OAM interface shall provide access to Channel Unit
         parameters requiring configuration by the NMS, including the following:

                  1.   Operational state.

                  2.   Software download.

         7.8.9.3.7. The SBS OAM interface shall provide access to RTRM
         parameters requiring configuration by the NMS, including the following:

                  1.   threshold for disk utilisation.

7.8.9.4. FAULT MANAGEMENT

         7.8.9.4.1. The SBS OAM interface shall forward the raising and clearing
         of SBS alarms to the NMS, including the following:

                  1.   Communication alarms.

                  2.   Equipment alarms.

                  3.   Processing error alarms.

                  4.   Quality of service alarms.

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         7.8.9.4.2. The SBS OAM interface shall forward the raising and clearing
         of Channel Manager alarms to the NMS, including the following:

                  1.   Communication alarms.

                  2.   Equipment alarms.

                  3.   Processing error alarms.

         7.8.9.4.3. The SBS OAM interface shall forward the raising and clearing
         of Channel Unit alarms to the NMS, including the following:

                  1.   Communication alarms.

                  2.   Equipment alarms.

                  3.   Processing error alarms.

         7.8.9.4.4. The SBS OAM interface shall forward the raising and clearing
         of RTRM alarms to the NMS, including the following:

                  1.   Communication alarms.

                  2.   Equipment alarms.

                  3.   Processing error alarms.

                  4.   Disk utilisation exceeds threshold.

         7.8.9.4.5. Each SBS alarm forwarded to the NMS shall contain:

                  1.   an object identifier unique to the SBS.

                  2.   date and time of when the alarm was raised or cleared.

                  3.   alarm description.

                  4.   source of the alarm for the purpose of fault location.

         7.8.9.4.6. The SBS OAM interface shall allow the NMS to:

                  1.   configure SBS alarm parameters.

                  2.   initiate archiving of the SBS alarm data.

                  3.   purge SBS alarm data.

                  4.   access SBS alarm data using filters supplied by the NMS.

7.8.9.5. PERFORMANCE MANAGEMENT

         7.8.9.5.1. The SBS OAM interface shall allow the NMS to:

                  1.   configure SBS performance parameters.

                  2.   initiate archiving of the SBS performance data.

                  3.   purge SBS performance data.

                  4.   access SBS performance data using filters supplied by the
                       NMS.

                  5.   configure periodic transfer of SBS performance data to
                       NMS.

         7.8.9.5.2. The SBS performance data available through the SBS OAM
         interface shall include the following:

                  1.   Channel Unit performance statistics.

                  2.   Channel Manager performance statistics.

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                  3.   Number of channel requests.

                  4.   Diversity allocation attempts.

                  5.   Page requests.

                  6.   Number of beam handovers.

                  7.   Number of satellite handovers.

                  8.   Number of channel units in use (traffic/control).

                  9.   Number of active calls.

                  10.  Number of failed calls due to hand-off failures.

         7.8.9.5.3. The Channel Manager performance data available through the
         SBS OAM interface shall include the following:

                  1.   Internal Handovers with successful re-establishment per
                       ChM.

                  2.   Internal Handovers without successful re-establishment
                       per ChM.

                  3.   Total requests for connections.

                  4.   Total paging messages per ChM.

         7.8.9.5.4. The Channel Unit performance data available through the SBS
         OAM interface shall include the following:

                  1.   Processor utilisation.

                  2.   Burst plans.

         7.8.9.5.5. The RTRM performance data available through the SBS OAM
         interface shall include the following:

                  1.   Number of channel units in use.

                  2.   Number of active channels.

                  3.   Number of channel handover attempts.

                  4.   Number of channel handover failures.

                  5.   Attempted handovers over beam, frequency, z-arc,
                       satellite.

                  6.   Failed handovers over beam, frequency, z-arc, satellite.

         7.8.9.5.6. The performance measurements recorded by the SBS and
         available through the SAN-OSS OAM interface shall include the
         information to allow the calculation of:

                  1.   total call (radio session) holding time categorised by UT
                       location, mobile-originated or mobile-terminated,
                       [service type], class of diversity, time and date.

                  2.   total call (radio session) count (attempts and
                       completion) categorised by UT location, mobile-originated
                       or mobile-terminated, [service type], class of diversity,
                       time and date.

         7.8.9.5.7. The call (radio session) attempt count shall include ones
         that are blocked by the lack of frequency resources. The interval and
         resolution of measurements shall be chosen so that the measurement data
         can be efficiently utilised for traffic planning at the SRMC.

         7.8.9.5.8. The performance measurements, identified above, recorded by
         the SBS shall be made available to the SRMC though the SAN-OSS.

         7.8.9.5.9. Any Radio Session statistics data will be collected and
         reported on a per SBS basis, and will not span a SAN-to-SAN handover.

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7.8.9.6. SECURITY MANAGEMENT

         7.8.9.6.1. Access through the SBS OAM interface shall be controlled
         using password-based logins and feature control lists for SBS
         applications.

7.8.10. TERRESTRIAL NETWORK MANAGER

7.8.10.1. GENERAL DESCRIPTION

         7.8.10.1.1. Each SAN has a Terrestrial Network Manager (TNM) to provide
         ICO-net routing, optimisation and vocoding functions. The TNM system
         interfaces between the MSSCs and the Channel Managers. The TNM routes
         calls to SANs, and invisibly to the MSSC and Channel Managers, and
         provides multiplexing for Inter-Site links and vocoding for Air
         Interface transmission via the Channel Managers.

         7.8.10.1.2. The TNM will also manage the DCN (refer to Section 7.8.11).

7.8.10.2. GENERAL REQUIREMENTS

         7.8.10.2.1. The TNM OAM interface shall provide access to backup and
         restoration procedures associated with the TNM.

         7.8.10.2.2. TNM OAM failure switchover shall be automatic.

         7.8.10.2.3. The TNM OAM interface shall provide the following software
         upgrade facilities:

                  1.   download new versions of software from the NMS.

                  2.   replace the current version of software with the new
                       version.

                  3.   replace the current version of software with the previous
                       version.

                  4.   extract existing software version information for the
                       above three versions of software.

7.8.10.3. CONFIGURATION MANAGEMENT

         7.8.10.3.1. The TNM OAM interface shall provide a facility for the TNM
         to supply status to the NMS, including the following:

                  1.   RPC.

                  2.   RPN.

                  3.   MUX/Vocoder.

                  4.   intersite route health status for the SAN.

         7.8.10.3.2. The TNM OAM interface shall forward TNM events to the NMS.

         7.8.10.3.3. The TNM OAM interface shall allow the NMS to:

                  1.   configure TNM event parameters.

                  2.   initiate archiving of the TNM event data.

                  3.   purge TNM event data.

                  4.   access TNM event data.

         7.8.10.3.4. The TNM OAM interface shall provide access to parameters
         requiring configuration by the NMS, including the following:

                  1.   RPC.

                  2.   RPN.

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                  3.   MUX/Vocoder.

                  4.   intersite routing tables.

7.8.10.4. FAULT MANAGEMENT

         7.8.10.4.1. The TNM OAM interface shall forward the raising and
         clearing of TNM alarms to the NMS, including the following:

                  1.   Communication alarms.

                  2.   Equipment alarms.

                  3.   Processing error alarms.

                  4.   Quality of service alarms.

         7.8.10.4.2. Each TNM alarm forwarded to the NMS shall contain:

                  1.   an object identifier unique to the TNM.

                  2.   date and time of when the alarm was raised or cleared.

                  3.   alarm description.

                  4.   source of the alarm for the purpose of fault location.

         7.8.10.4.3. The TNM OAM interface shall allow the NMS to:

                  1.   configure TNM alarm parameters.

                  2.   initiate archiving of the TNM alarm data.

                  3.   purge TNM alarm data.

                  4.   access TNM alarm data using filters supplied by the NMS.

         7.8.10.4.4.The TNM OAM shall support alarm filtering.

         7.8.10.4.5.The TNM OAM shall support the same number of alarm severity
         levels (critical, major, minor, warning as referred to in Section 7.3)
         as the SAN-OSS for the purpose of categorising alarms displayed at an
         MMI.

7.8.10.5. PERFORMANCE MANAGEMENT

         7.8.10.5.1. The TNM OAM interface shall allow the NMS to:

                  1.   configure TNM performance parameters.

                  2.   initiate archiving of the TNM performance data.

                  3.   purge TNM performance data.

                  4.   access TNM performance data using filters supplied by the
                       NMS.

         7.8.10.5.2. configure periodic transfer of TNM performance data to NMS
         using filters.

7.8.10.6. SECURITY MANAGEMENT

         7.8.10.6.1. The TNM OAM interface shall provide access control
         facilities to all TNM OAM interface functionality.

7.8.11. DIGITAL COMMUNICATION NETWORK

7.8.11.1. GENERAL

         7.8.11.1.1. The Digital Communication Network (DCN) is described in
         Section 6.5.

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         7.8.11.1.2. The DCN is integrated with the TNM OAM and forms part of
         the TNM OAM interface.

         7.8.11.1.3. The management of the DCN and DCN components shall be the
         responsibility of the local TNM. The TNM OAM interface to the SAN-OSS
         and NMC shall support the DCN management functions. The DCN management
         functions shall include the functionalities listed below and in
         Sections 7.8.11.2, 7.8.11.3 and 7.8.11.4:

                  1.   Each SAN DCN Encryption Device

                       a.  Normal/Fail

                       b.  I/O stream Normal/Fail

                       c.  [Bypass/Normal]

                       d.  [Configuration status]

                  2.   Each SAN DCN Router/Bridge

                       a.  Normal/Fail

                       b.  Link Fail Alarm (if provided by selected equipment)

                       c.  Router statistics (via text dump, information
                           provided will be vendor dependent)

                       d.  Router Table Display (via text dump)

                       e.  Router Table Load (via file download)

                  3.   Each SAN TNM DCN MUX

                       a.  Normal/Fail

                       b.  I/O stream Normal/Fail

                       c.  Configuration status

                       d.  Configuration change

                       e.  [Diagnostics]

                  4.   TNM OAM Aggregated Status

                       a.  DCN Direction/Route Normal/Fail (e.g. Dir A, Route B
                           Fail)

                       b.  TNM Communications Timeout (link health check).

7.8.11.2. CONFIGURATION MANAGEMENT

         7.8.11.2.1. The TNM OAM shall provide a facility for the TNM to supply
         status to the NMS, including the following:

                  1.   [DCN Encryption Device] at each SAN, at the NMCs and at
                       the OT&DF (if provided);

                  2.   TNM DCN MUX at each SAN, at the NMCs and at the OT&DF (if
                       provided);

                  3.   TNM Communications Timeout (link health check);

                  4.   DCN Direction/Route status

         7.8.11.2.2. The TNM OAM shall provide a facility for the DCN
         Router/Bridge at each SAN, at the NMCs and at the OT&DF (if provided)
         to display the Router Table.

         7.8.11.2.3. The TNM OAM interface shall provide the facility to
         download the Router Table (for the DCN Router/Bridge at each SAN, at
         the NMCs and at the OT&DF (if provided)) from the NMS.

         7.8.11.2.4. The TNM OAM interface shall provide a facility for the NMS
         to change the configuration of the DCN Router/Bridge at each SAN, at
         the NMCs and at the OT&DF (if provided) and [of the DCN Encryption
         Device at each SAN, at the NMCs and at the OT&DF (if provided)].

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         7.8.11.2.5. The TNM OAM interface shall provide a facility for the NMS
         to get/set the enabled/disabled status of the encryption on each link
         (DCN Encryption Device Bypass/Normal).

7.8.11.3. FAULT MANAGEMENT

         7.8.11.3.1. The TNM OAM interface shall forward to the NMS the raising
         and clearing of the alarms, including the following:

                  1.   DCN Encryption Device at each SAN, at the NMCs and at the
                       OT&DF (if provided);

                  2.   I/O stream for the DCN Encryption Device at each SAN, at
                       the NMCs and at the OT&DF (if provided);

                  3.   DCN Router/Bridge failure at each SAN, at the NMCs and at
                       the OT&DF (if provided);

                  4.   DCN Router Bridge Link Failure;

                  5.   TNM DCN MUX failure at each SAN, at the NMCs and at the
                       OT&DF (if provided);

                  6.   I/O stream for the TNM DCN Mux at each SAN, at the NMCs
                       and at the OT&DF (if provided);

                  7.   TNM Communication Timeout;

                  8.   DCN Direction/Route Alarm.

         7.8.11.3.2. [The TNM OAM interface shall provide diagnostics
         information for the TNM DCN MUX at each SAN, at the NMCs and at the
         OT&DF (if provided)].

7.8.11.4. PERFORMANCE MANAGEMENT

         7.8.11.4.1. The TNM OAM interface shall support access to router
         generated statistics for the DCN Router/Bridge at every SAN, at the
         NMCs and at the OT&DF (if provided).

         7.8.11.4.2. (F/R) Typical DCN performance data to be reported to the
         NMS shall include:

                  1.   network congestion;

                  2.   error rate;

                  3.   latency.

7.8.12. ICONET SYNCHRONISATION SYSTEM

7.8.12.1. GENERAL DESCRIPTION

         7.8.12.1.1. Accurate timing/frequency synchronisation between elements
         of the ground network, radio/satellite and interconnecting terrestrial
         networks needs to be accomplished in order to support the mobile
         services being provided. At the system level the NMC requires to be
         able to control, audit and manage the network synchronisation as
         identified in Section 6.25.1. For this purpose, the synchronisation
         system is to be treated as a logical network element.

         7.8.12.1.2. At the physical level, timing devices may well be
         integrated into the various network elements (e.g. SBS, TNM, etc.) and
         hence be monitored and managed by the controlling OAM. (SBS OAM, TNM
         OAM, etc.). However, this management needs to be pulled together and
         co-ordinated in order to provide a higher level view of the
         synchronisation subsystem at both the SAN-OSS and NMC. In addition,
         should additional external synchronisation devices be necessary then
         these will need to be managed through the synchronisation system OAM.

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7.8.12.2. GENERAL REQUIREMENTS

         7.8.12.2.1.From the NMC it shall be possible to graphically determine
         the hierarchical synchronisation network architecture being employed
         (e.g. active primary reference clock systems) and the real time status
         (e.g. GPS receiver device status, etc.).

         7.8.12.2.2. The NMC shall support an interface to the SCC for the
         receipt of ephemeris data to be transferred to the SAN SRMS for delay
         estimation purposes as outlined in Section 6.25.1.3

         7.8.12.2.3. The following management functions in 7.8.12.3 to 7.8.12.6
         shall be applicable where provided by the network elements

7.8.12.3. CONFIGURATION MANAGEMENT

         7.8.12.3.1. From the NMC it shall be possible to activate
         re-synchronisation procedures in the case of fault and alarm conditions
         (timing deviations) being reported across the system.

         7.8.12.3.2. From the NMC it shall be possible to introduce changes to
         the synchronisation mechanism with the minimal of disruption (i.e.
         switching to back-up or alternate timing sources, switching to another
         SAN timing mechanism, etc.). This configuration capability shall exist
         to the element level.

         7.8.12.3.3. Switchover to primary and/or secondary timing sources shall
         be co-ordinated with the NMC beforehand (normal operation) or the NMC
         shall be notified immediately afterwards (emergency operation).

         7.8.12.3.4. It shall be possible to undertake configuration audits
         concerning the synchronisation system from the NMC for tracing and
         investigative purposes.

         7.8.12.3.5. Procedures shall be in place to routinely test and check
         redundant and secondary synchronisation systems.

7.8.12.4. FAULT MANAGEMENT

         7.8.12.4.1. Devices making up the synchronisation system shall be
         continually monitored for fault and alarm conditions (e.g. device
         failures, etc.).

         7.8.12.4.2. It shall be possible to configure fault thresholds to
         report aspects such as timing deviation levels, update rates, etc. from
         the NMC (global) or SAN-OSS (local).

         7.8.12.4.3. The SAN-OSS shall filter and co-ordinate synchronisation
         data from the various timing devices and provide a summary of fault and
         alarm reporting to the NMC.

7.8.12.5. PERFORMANCE MANAGEMENT

         7.8.12.5.1.The SAN-OSS shall collate and conduct suitable trend
         analysis on performance data concerning the synchronisation elements.

         7.8.12.5.2.The NMC shall collate and conduct suitable trend analysis on
         reported synchronisation performance data across the ICONET and report
         conformance against the active network synchronisation plan.

         7.8.12.5.3.Measurement and reporting of conformance of the
         synchronisation system against the criteria set in Section 6.25 shall
         be available (e.g. timing accuracy measures, stability, etc.).

7.8.12.6. SECURITY MANAGEMENT

         7.8.12.6.1.Access control mechanisms shall be implemented concerning
         the synchronisation mechanism.

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         7.8.12.6.2.Access through the Synchronisation System OAM shall be
         controlled using password-based logins.

7.8.13. C-C SUBSYSTEM

         7.8.13.1. It shall be possible for the NMS to:

                  a)   Display C-C link assignments per site (e.g. frequency,
                       power)

                  b)   monitor status of C-C link

                  c)   [Control and] Manage C-C frequency/power allocation, as
                       the equipment allows.

7.8.14. ICO ADMINISTRATIVE DATA CENTRE

         7.8.14.1. The ICO Administrative Data Centre (ADC) is involved in the
         activities of provisioning, billing, partner care and legal
         interception.

         7.8.14.2. The ADC shall provide its status to the NMS at all times. Any
         fault in the ADC shall be notified to the NMS.

         7.8.14.3. NMS shall perform a Health Check to the ADC periodically. The
         time interval shall be operator configurable.

         7.8.14.4. Any CDR Log Alarm detected by the ADC shall be notified to
         the NMS.

         7.8.14.5. Billing related complaints which can not be resolved at the
         ADC shall be forwarded to the NMS for possible resolution via call
         tracing facility at the NMS.

         7.8.14.6. Relevant CDRs shall be sent from the ADC to the NMS.

         7.8.14.7. Service affecting alarms shall be notified from the NMS to
         the I-ADC.

7.9. LEGAL INTERCEPTION MANAGEMENT SYSTEM

7.9.1. GENERAL REQUIREMENTS

         7.9.1.1. The Legal Interception Management System (LIMS) shall provide
         OAM functionalities for the Legal Interception System (LIS). It shall
         encompass LIS equipment, associated software, processing, monitoring
         and control.

         7.9.1.2. The LIMS shall provide access to backup and restoration
         procedures associated with the LIS equipment.

         7.9.1.3. The LIMS shall provide the following software upgrade
         facilities:

                  1.   download new versions of software to the LIAS from the
                       LIMS.

                  2.   replace the current version of software with the new
                       version.

                  3.   replace the current version of software with the previous
                       version.

                  4.   extract existing software version information for the two
                       versions of software (i.e. the current version and the
                       previous version) stored in the LIAS.

7.9.2. CONFIGURATION MANAGEMENT

         7.9.2.1. A facility shall be provided for the LIAS to supply its status
         to the LIMS.

         7.9.2.2. The LIAS shall forward its events to the LIMS.

         7.9.2.3. The LIMS shall be able to:

                  1.   configure LIAS event parameters.

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                  2.   initiate/suppress logging of the LIAS event data.

                  3.   support logging of up to 3 days of LIAS event data in a
                       buffer.

                  4.   support saving of the logged LIAS event data in a file
                       for long term online archiving. The long-term archive
                       shall hold a minimum of 90 days of data storage.

                  5.   access LIAS event data.

         7.9.2.4. The LIAS shall provide access to parameters requiring
         configuration by the LIMS.

7.9.3. FAULT MANAGEMENT

         7.9.3.1.The raising and clearing of LIAS alarms shall be reported to
         the LIMS, including the following alarm types:

                  1.   Communication alarms.

                  2.   Equipment alarms.

                  3.   Software error alarms.

         7.9.3.2. Each LIAS alarm forwarded to the LIMS shall contain:

                  1.   an object identifier unique to the LIAS.

                  2.   date and time of when the alarm was raised or cleared.

                  3.   alarm description.

                  4.   alarm severity.

                  5.   source of the alarm for the purpose of fault location.

         7.9.3.3. The LIMS shall be able to:

                  1.   configure LIAS alarm parameters.

                  2.   initiate/suppress logging of the LIAS alarm data.

                  3.   support logging of up to 3 days of LIAS alarm data in a
                       buffer.

                  4.   support saving of the logged LIAS alarm data in a file
                       for long term online archiving. The long-term archive
                       shall hold a minimum of 90 days of data storage.

                  5.   access LIAS alarm data using filters supplied by the
                       LIMS.

7.9.4. PERFORMANCE MANAGEMENT

         7.9.4.1. The LIMS shall be able to:

                  1.   configure LIAS system performance parameters (e.g.
                       processor overload threshold, cache memory allocation).

                  2.   monitor LIAS system performance (e.g. processor overload
                       performance, memory resource usage).

                  3.   initiate/suppress logging of LIAS system performance
                       data.

                  4.   access LIAS system performance data using filters
                       supplied by the LIMS.

                  5.   configure periodic transfer of LIAS system performance
                       data to the LIMS using filters.

                  6.   generate operational statistical data (e.g. number of
                       intercepted calls per hour).

7.9.5. SECURITY MANAGEMENT

         7.9.5.1. At the LIMS it shall be possible to provide access control
         facilities.

                          NEC Property - CONFIDENTIAL

                                                                     Page 215 of

<PAGE>   1589
                            ICO DELIVERABLE DOCUMENT

IGFR CHAPTER 7                                                   NEC CORPORATION

         7.9.5.2.The LIMS shall provide strict isolation of warrants submitted
         by different agencies.

                          NEC Property - CONFIDENTIAL

                                                                     Page 216 of

<PAGE>   1590

--------------------------------------------------------------------------------
[ICO LOGO]                                                          CHANGE ORDER
                                                                       NO:  9
                          IGF SUPPLY AGREEMENT
                          CONTRACT NO ICOO97 - 1016/GW
                                                         DATE: 8th January, 1999
--------------------------------------------------------------------------------

In accordance with clause 9 of the Supply Agreement dated March 3rd 1997 between
NEC Corporation and ICO Global Communications Holdings BV, the Agreement is
hereby amended as follows:

Amended Clauses              None

Amended Schedules            Schedule 13: IGFR (version 27.1) - see "Addendum 3
                             (v2)  - Agreed Changes to IGFR v27.1 Version 1.doc"

Amended Annexes              None

Amended Price                None

Other Amendments             None

Reference Correspondence     IUKC-830, CCR95-104(v1): SA1253: IUKC-861,
                             CCR95-104(v2): SA1294

This Change Order No 9 will now form part of the Supply Agreement dated March
3rd 1997 between the parties as from 25th June 1998 and shall be governed by and
construed in accordance with the laws of England.

Except for the changes set out above, this Change Order No 9 makes no further
amendments or modifications to the Agreement.

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

Signed for and on behalf of               Signed for and on behalf of
ICO GLOBAL COMMUNICATIONS HOLDINGS BV     NEC CORPORATION

                                          /s/ Takao Nishizawa
-------------------------------------     --------------------------------------
Supervising Officer                       Contractor's Authorised Representative
                                          Takao Nishizawa
                                          General Manager, Europe Div.

                                            8th January, 1999
---------------------                     ---------------------
Date                                      Date

-------------------------------------------------------------------------------
<PAGE>   1591
                          ADDENDUM 3 v2 TO IGFR v27.1

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                                                          CHANGE
                                                                                                          REQUEST       DATE OF
  SECTION NO.                REVISED TEXT                        DESCRIPTION OF PROPOSED SOLUTION           NO.        ACCEPTANCE
------------------------------------------------------------------------------------------------------------------------------------
<S>           <C>                                           <C>                                           <C>        <C>
6.49.6.5      6.49.6.5 In the event of detection of         To clarify the TBD item for the Satellite RF  CCR95 v2   LG - 11/11/1998
              overload of any satellite, the NMS shall      Power Overload Management
              have the capability for the operator to
              reconfigure the SBS to perform one or more
              of the following:

7.1.11.3.3    7.1.11.3.3 The NMC NMS (LINK-OS) shall have   To clarify the TBD item for the LINK-NMS      CCR96 v2   LG - 11/11/1998
              the capability of processing a minimum of 15  performance
              events/second under normal working
              conditions, which consist of one
              event/second from each SAN (total 10 events)
              and five events from external systems.

7.1.14.1      7.1.14.1 The NMS shall have the capability    To clarify the TBD item for the Call Tracing  CCR97 v2   LG - 11/11/1998
              and necessary facilities and tools to         and testing capability of NMS
              undertake diagnostic tests on the detection
              of a failure or potential problem.

7.1.14.2      7.1.14.2 SAN-NMS shall have the capability    To clarify the TBD item for the Call Tracing  CCR97 v2   LG - 11/11/1998
              to collect SBS, HPN and TNM call related      and testing capability of NMS
              records. LINK-NMS shall have the capability
              to retrieve the call related records which
              SAN-NMS collects and to report the records
              based on time window provided by operator.

7.1.2.29      7.1.2.29 The delay associated with the        Clarification of the TBD item for the NMS     CCR98 v2   LG - 11/11/1998
              switchover is not to exceed 10 minutes under
              normal conditions

7.1.8.1.6     7.1.8.1.6 However, the MMI shall be           Clarification of the TBD item for the NMS     CCR98 v2   LG - 11/11/1998
              controllable from the keyboard to guard
              against a failure in the pointing device.
</TABLE>

ICO SERVICES LTD CONFIDENTIAL             17/12/98                   Page 1 of 3

<PAGE>   1592
                          ADDENDUM 3 v2 TO IGFR v27.1

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                                                          CHANGE
                                                                                                          REQUEST       DATE OF
  SECTION NO.                REVISED TEXT                        DESCRIPTION OF PROPOSED SOLUTION           NO.        ACCEPTANCE
------------------------------------------------------------------------------------------------------------------------------------
<S>           <C>                                           <C>                                           <C>        <C>
7.1.8.1.22.2  7.1.8.1.22.2 Location and alarm status of     Clarification of the TBD item for the NMS     CCR98 v2   LG - 11/11/1998
              the SAN sites, BDC, SCC sites.

7.1.11.2.4    7.1.11.2.4 A minimum of 30 days of event log  Clarification of the TBD item for the NMS     CCR98 v2   LG - 11/11/1998
              information shall be stored on-line at the
              SAN-OSS

7.1.11.3.6    7.1.11.3.6 A minimum of 90 days of event log  Clarification of the TBD item for the NMS     CCR98 v2   LG - 11/11/1998
              information shall be stored on-line at the
              NMC

7.8.12.4.2    7.8.12.4.2 Not used.                          To clarify the requirement for Performance    CCR99 v2   LG - 11/11/1998
                                                            Management with regard to Synchronization
                                                            System

7.8.12.5.1    7.8.12.5.1  Not used.                         To clarify the requirement for Performance    CCR99 v2   LG - 11/11/1998
                                                            Management with regard to Synchronization
                                                            System

7.8.12.5.2    7.8.12.5.2  Not used.                         To clarify the requirement for Performance    CCR99 v2   LG - 11/11/1998
                                                            Management with regard to Synchronization
                                                            System

7.8.12.5.3    7.8.12.5.3 Not used.                          To clarify the requirement for Performance    CCR99 v2   LG - 11/11/1998
                                                            Management with regard to Synchronization
                                                            System

7.8.13.1      7.8.13 C-C SUBSYSTEM                          NMS requirement of C-C Subsystem              CCR100 v2  LG - 11/11/1998
              7.8.13.1  Not used.
</TABLE>

ICO SERVICES LTD CONFIDENTIAL            17/12/98                    Page 2 of 3
<PAGE>   1593
                          ADDENDUM 3 v2 TO IGFR v27.1

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                                                          CHANGE
                                                                                                          REQUEST       DATE OF
 SECTION NO.                 REVISED TEXT                        DESCRIPTION OF PROPOSED SOLUTION           NO.        ACCEPTANCE
------------------------------------------------------------------------------------------------------------------------------------
<S>           <C>                                           <C>                                           <C>        <C>
7.8.2.3.4     7.8.2.3.4 In the event of single or multiple  To clarify the TBD item for the plan          CCR101 v2  LG - 11/11/1998
              satellite and/or SAN failure, the NMS shall   distribution capability of NMS
              have the capability to, within a 2 to 3 hour
              time-frame:

              2. distribute and configure the system with
              the updated BTFPs and channelisation plans
              under normal operational conditions.

7.8.7.4.1     7.8.7.4.1 The NMS shall be able to            Clarification of the TBD item for the         CCR102 v2  LG - 11/11/1998
              periodically request from the CPCS archived   Payload Management capability of NMS
              data of Payload summary status information
              for subsequent storage at the NMS. This
              status information shall include: 1. Not
              used.

6.49.5.1.3    6.49.5.1.3 The LINK-NMS shall calculate the   NMS requirement for satellite EIRP            CCR103 v2  LG - 11/11/1998
              total aggregate transmit EIRP of all SANs on  calculation
              the satellite by satellite basis from the
              aggregate SAN transmit EIRP calculated by
              SAN-OSS which is defined in 6.49.5.1.2.

7.8.7.3.6     7.8.7.3.6 Upon receipt of an alarm from the   To clarify the TBD item with regard to the    CCR104 v2  LG - 11/11/1998
              CPCS of inability to configure the payload,   process of NMS for inconsistency between
              or inconsistency of the payload               Satellite and Ground Facility.
              configuration with that planned, the NMS
              shall: 4. Notify NMC operators, within 30
              seconds after the reception of the alarm, in
              order for NMC operations to co-ordinate with
              SCC operations the correction of future
              planned transmissions to the affected
              satellite.

7.8.7.3.7     7.8.7.3.7 Upon receipt of a notification      To clarify the TBD item with regard to the    CCR104 v2  LG - 11/11/1998
              from the CPCS of restoration of the payload   process of NMS for inconsistency between
              configuration, the NMS shall notify NMC       Satellite and Ground Facility.
              operator in order for NMC operator to be
              able to resume the transmissions to the
              affected satellite.
</TABLE>

ICO SERVICES LTD CONFIDENTIAL          17/12/98                      Page 3 of 3

<PAGE>   1594

--------------------------------------------------------------------------------
[ICO LOGO]                                                   CHANGE ORDER NO: 10

                          IGF SUPPLY AGREEMENT
                          CONTRACT NO ICOO97 - 1016/GW
                                                        DATE: 23rd DECEMBER 1998
--------------------------------------------------------------------------------

In accordance with clause 9 of the Supply Agreement dated March 3rd 1997 between
NEC Corporation and ICO Global Communications Holdings BV, the Agreement is
hereby amended as follows:

Amended Clauses            See Attachment No 2 (Clause 15.1)

Amended Schedules          See Attachment No. 3  (Schedule 9 - Pricing Schedule
                           Appendices 1) and Attachment No. 4 (IGFR Change)

Amended Annexes            None

Amended Price              See Attachments

Other Amendments           None

Reference Correspondence   IUKC-544,(18 May 1998)
                           SA0899/WG5/19980608/LG (8 June 1998)
                           SA0974/WGB/19980713/GW(13 July 1998)

This Change Order No. 10 will now form part of the Supply Agreement dated March
3rd 1997 between the parties and shall be effective from the date of this Change
Order and shall be governed by and construed in accordance with the laws of
England. Except for the changes set out above, this Change Order No. 10 makes no
further amendments or modifications to the Agreement.

Signed for and on behalf of               Signed for and on behalf of
ICO GLOBAL COMMUNICATIONS HOLDINGS BV     NEC CORPORATION

/s/ ***                                   /s/ Takao Nishizawa
---------------------------------------   --------------------------------------
Supervising Officer                       Contractor's Authorised Representative
                                          Takao Nishizawa
                                          General Manager, Europe Div.

  23rd December 1998                        12th January, 1999
----------------------                    ----------------------
Date                                      Date
<PAGE>   1595
                                              CONTRACT NUMBER: ICOO 97 - 1016/GW
                                                             CHANGE ORDER NO: 10

                               23rd DECEMBER 1998

                               CHANGER ORDER NO:

                                     TO THE

                                SUPPLY AGREEMENT

                                    BETWEEN

                                NEC CORPORATION

                                      AND

                     ICO GLOBAL COMMUNICATIONS HOLDINGS BV
<PAGE>   1596
                      CHANGER ORDER NO: 10    ATTACHMENT 1
<PAGE>   1597
                                                            IGF SUPPLY AGREEMENT
                                                    CONTRACT NO ICOO97 - 1016/GW
                                             ATTACHMENT 1 TO CHANGE ORDER NO. 10

1.       The purpose of Contractor's Change Request No.77 NMS Report
         Distribution IGFR 7.1.5 and Contractor's Change Request No. 78 Plan
         Builder Function IGFR 7.2.2.14 are to propose change in the relevant
         part of the IGFR as a result of finalising the Scope of NMS
         Functionality.

2.       As at the date hereof the parties agree to amend Schedule 9, Pricing
         Schedule Appendix-2 III.6 NMC/SRMC/SAN-OSS PRICE LIST. The amendments
         to the NMC/SRMC/SAN-OSS PRICE LIST identify the cost increments
         referable to the following elements:-

         NRE -    *

         These increments are set out in detail in Attachments 3 to this Change
         Order. The parties recognise the need to duly reflect these agreed
         changes elsewhere within the Supply Agreement, as set out below:-

         -        Schedule 9 - Pricing Schedule Appendix 2
                  -    I        PRICE SUMMARY
                  -    II.1     PRICE SUMMARY (NRE)

         -        IGFR V 27.1 Change

                  See the Attachment 4 to this Change Order

         -        Statement of Work Annex 1 - Contractor's Deliverables

                  None

         -        Schedule 11 - Payment Schedule and Payment Schedule
                  Classification Summary

                  -    I        PAYMENT SCHEDULE CLASSIFICATION SUMMARY
                  -    III.6    PAYMENT SCHEDULE CLASSIFICATION SUMMARY
                                -NMC/SRMC/SAN-OSS

4.       The parties undertake to ensure that the required changes specified
         within paragraphs 2 and 3 above, shall be completed within 3 months of
         the date of this Change Order or by such time as the parties shall
         otherwise agree. The parties agree that implementation of these changes
         shall be effective upon agreement without the

         * Confidential Treatment Requested and the Redacted Material has been
           separately filed with the Commission.
<PAGE>   1598
         need for the parties to formalise the incorporation of such agreed
         changes by way of further Change Order.

5.       The Parties agree that neither the Contractor nor any member of the NEC
         Team shall have any obligation to provide vendor financing to ICO
         pursuant to this Change Order.
<PAGE>   1599
                    CHANGE ORDER NO: 10     ATTACHMENT 2

                              CLAUSE 15: AMENDMENT
<PAGE>   1600
ATTACHMENT 2
AMENDED CLAUSE

The incremental amount agreed between the parties under this Change Order No.10
is   *   .

Therefore, Clause 15.1 is amended to read as follows:

15.1     ICO shall pay an aggregate total price of US$ 706,747,925 for the
         complete performance by the Contractor of all of its obligations under
         this Agreement together with a further sum of US$ 21,537,600 (in
         respect of freight and insurance as referred to in the Pricing
         Schedule), which amounts shall be subject to adjustment only in respect
         of (i) changes agreed under clause 9 and (ii) the cost of any Option
         items upon exercise of the relevant Option or other items or services
         purchased under clause 46; (such aggregate amount, as so adjusted,
         being referred to as the "Price"). Any Instalment payment made shall
         discharge the relevant portion of the Price and shall not be
         reclaimable by ICO but without prejudice to ICO's right to claim
         damages and/or indemnity in accordance with the provisions of this
         Agreement in the event of any breach by the Contractor.

         * Confidential Treatment Requested and the Redacted Material has been
           separately filed with the Commission.
<PAGE>   1601
                    CHANGE ORDER NO: 10     ATTACHMENT 3

                    SCHEDULE 9 - PRICING SCHEDULE APPENDIX 1
<PAGE>   1602
              III.6 NMC/SRMC/SAN-OSS PRICE LIST (IN THOUSAND US$)

                                        *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

<PAGE>   1603
              III.6 NMC/SRMC/SAN-OSS PRICE LIST (IN THOUSAND US$)

                                        *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   1604

              111.6 NMC/SRMC/SAN-OSS PRICE LIST (IN THOUSAND US$)

                                        *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

<PAGE>   1605
              III.6 NMC/SRMC/SAN-OSS PRICE LIST (IN THOUSAND US$)

                                        *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

<PAGE>   1606
                    CHANGE ORDER NO: 10     ATTACHMENT 4

                         SCHEDULE 13 - IGFR VERSION 27.1
<PAGE>   1607
ATTACHMENT-4 IGFR CHANGES V27.1

1) As a result of ICO's acceptance to the Contractor's Change Request No. 77,
the following changes have been reflected to the IGFR V27.1 by way of Change
Order No. 7.

7.1.5.6.          The NMS shall support an enhanced report distribution function
                  (RDF) at LINK-NMS and SAN-NMS to enable reports to also be
                  distributed via :
                  1.       E-mail (SMTP compatible)
                  2.       Facsimile
                  3.       File Transfer (FTP)

7.1.5.7           Using the RDF, the operator shall be able to add/delete/modify
                  address entries from the RDF destination address list.

7.1.5.8           It shall be possible via the RDF to activate the distribution
                  (to a pre-selected list - see 7.1.5.7) using one of three
                  mechanisms :
                  1.       Automatically, after completion of the report being
                           generated
                  2.       On a scheduled basis to a target addressee list (i.e.
                           preset list of recipients from the address list)
                  3.       On demand by the operator (see 7.1.5.9)

7.1.5.9           Upon the invocation of the report generation request or after
                  the completion of the report generation function, the operator
                  shall be able to select the report, assign a list of
                  addressees (see 7.1.5.7), and send it to the destination(s)
                  using either of the techniques from 7.1.5.6.

7.1.5.10          The NMS shall log a record at the conclusion of processing the
                  report distribution request (success or otherwise).

2) As a result of ICO's acceptance of the Contractor's Change Request No. 78,
the following Changes have been reflected to the IGFR V27.1 by way of Change
Order No. 7.

CHANGE OF THE CURRENT TEXT FOR 7.2.2.14 AS FOLLOWS:

7.2.2.14 The NMS shall support scheduled configuration change.

7.2.2.14.1 The NMC and SAN-OSS shall support scheduled configuration changes
where the change is deferred to a selected time. The change process shall be as
follows :

ADDITION OF THE NEW SECTION 7.2.2.14.2 AS FOLLOWS:

7.2.2.14.2        The NMS shall support a Plan Builder function (PBF) at
                  LINK-NMS and SAN-NMS, which enables Work Orders (WO) to be
                  grouped such that they are automatically created for execution
                  by the NMS. Instances of these grouped WOs shall be referred
                  to as "Plans."

7.2.2.14.2.1      The NMS operator shall be able to create Plans using the
                  pre-defined Plan templates off-line via a PC (see
                  7.2.2.14.2.3).

7.2.2.14.2.2      The PBF shall be responsible for processing the grouped WO
                  instances with the related task data contained in the Plan
                  File after the Planner has completed creation of the Plan.

7.2.2.14.2.3      The grouping of WOs via the PBF shall be as follows:
                  1.       Each Plan shall be captured as an EXCEL spreadsheet
                       using an off-line PC. The spreadsheet shall list the
                       associated WOs populated by the Planner required to
                       undertake a specific Plan (e.g. system-wide upgrade).
<PAGE>   1608
2.       The format of the EXCEL Plan Template file shall be determined by NEC.

3.       The PBF shall receive the EXCEL Plan file via an option on the NMS GUI.

         The PBF shall provide parsing in order to validate the data into the
         "Plan file" and populate the relevant Schedule. WO and Task data based
         on the WO defined by the Plan.
<PAGE>   1609
                                                                Exhibit 4.6.30.9

--------------------------------------------------------------------------------
[ICO LOGO]                                                   CHANGE ORDER NO: 11
                          IGF SUPPLY AGREEMENT
                          CONTRACT NO ICOO97 - 1016/GW
                                                        DATE: 19th January, 1999
--------------------------------------------------------------------------------

In accordance with clause 9 of the Supply Agreement dated March 3rd 1997 between
NEC Corporation and ICO Global Communications Holdings BV, the Agreement is
hereby amended as follows:

Amended Clauses              See Attachment 1

Amended Schedules            See Attachment 1

Amended Annexes              None

Amended Price                See Attachment 1

Other Amendments             See Attachment 1

Reference Correspondence     None

This Change Order No. 11 will now form part of the Supply Agreement dated March
3rd 1997 between the parties as from the date shown above and shall be governed
by and construed in accordance with the laws of England.

Except for the changes set out above, this Change Order No. 11 makes no further
amendments or modifications to the Agreement.

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

Signed for and on behalf of               Signed for and on behalf of
ICO GLOBAL COMMUNICATIONS HOLDINGS BV     NEC CORPORATION

/s/ *************                         /s/ Takao Nishizawa
-------------------------------------     --------------------------------------
Supervising Officer                       Contractor's Authorised Representative
                                          Takao Nishizawa
                                          General Manager, Europe Div.

6th January 1999                          19th January, 1999
---------------------                     ---------------------
Date                                      Date

-------------------------------------------------------------------------------
<PAGE>   1610
                                                            IGF SUPPLY AGREEMENT
                                                    CONTRACT NO ICO097 - 1016/GW
                                                             CHANGE ORDER NO. 11

                               CHANGE ORDER NO: 11

                                     TO THE

                                SUPPLY AGREEMENT

                                     BETWEEN

                                 NEC CORPORATION

                                       AND

                      ICO GLOBAL COMMUNICATIONS HOLDINGS BV
<PAGE>   1611
                                                            IGF SUPPLY AGREEMENT
                                                    CONTRACT NO ICO097 - 1016/GW
                                                             CHANGE ORDER NO. 11
                                                                      ATTACHMENT

                    CHANGE ORDER NO. 11     ATTACHMENT 1
<PAGE>   1612
                                                            IGF SUPPLY AGREEMENT
                                                    CONTRACT NO ICOO97 - 1016/GW
                                                             CHANGE ORDER NO. 11
                                                                    ATTACHMENT 1

1.       This Change Order No. 11 is in respect of the ICONET Integration G2, G3
         and G4 Campaigns and is issued pursuant to, and shall be governed by,
         clause 14 of the Supply Agreement dated March 3rd 1997, except as
         otherwise specifically provided in this Change Order No. 11.

(a)      The Contractor's activities to be undertaken for the G2, G3 and G4
         Campaigns are established in "G2, G3 and G4 ICONET Integration
         Statement of Work" (Document No.EN-II-ICO-SW-000374, Version 2.4, dated
         27 November 1998) attached hereto as Attachment 2 to this Change Order
         No. 11.

(b)      The qualifications, numbers of personnel and the resultant maximum
         number of man-months for the Contractors II G2, G3 and G4 activities
         are specified in Attachments 3.1, 3.2 and 3.3 to this Change Order No.
         11. For the purposes of applying the relevant provisions of clause 14
         of the Supply Agreement, the minimum number of man months shall be 25%
         of the number of man months shown in Attachments 3.1, 3.2 and 3.3 for
         Labour Fees and Associated Management.

(c)      The travel costs shall be incurred and paid in accordance with clause
         14.10(b) of the Supply Agreement. The total estimated travel costs for
         the Contractor's G2, G3 and G4 activities are specified in Attachments
         3.1, 3.2 and 3.3 to this Change Order No. 11.

(d)      The duration and sequence for the performance, and completion, of the
         Contractor's provision of G2, G3 and G4 Campaign Support will be
         developed by the Contractor on an ongoing basis in accordance with the
         principles established in Section 2 of the G2, G3 and G4 ICONET
         Integration Statement of Work (Attachment 2).

(e)      The Contractor's Deliverables are specified in Section 9 of the G2, G3
         and G4 ICONET Integration Statement of Work (Attachment 2). The form
         and content of the Deliverables, unless already specified in clause 14
         of the Supply Agreement, shall be agreed between the Parties during the
         course of implementation of this Change Order No. 11.

(f)      Any Additional Resources which ICO will provide to the Contractor, or
         which the Contractor will provide, for the G2, G3 and G4 Campaigns
         shall be agreed between the Parties during the course of implementation
         of this Change Order No. 11.

(g)      Other Costs specified in Attachments 3.1, 3.2 and 3.3 are composed of
         two elements - Fixed Price Portion and Actual Cost Portion. The Fixed
         Price Portion is the number of APZ Test Hours and associated setting up
         and verification of the test plants that will be required to support
         the relevant G2, G3 and G4 Campaign testing, for which ICO agrees to
         pay. The Fixed Price Portion may be invoiced by the Contractor, to ICO,
         immediately prior to the commencement of test activities to be executed
         under the relevant G2, G3 and G4 Campaign.

         The cost of any additional APZ Test Hours required in excess of the
         number of the APZ Test Hours available within the Fixed Price Portion,
         shall be payable by ICO to the Contractor. The price for such Actual
         Cost portion shall be determined by multiplying the actual
<PAGE>   1613
         additional APZ test hours required to be used by ICO, by the relevant
         hourly rate as shown in the relevant Attachment 3.1, 3.2 or 3.3. The
         Contractor shall render its invoice referable to the Actual Cost
         Portion, to ICO, monthly in arrears.

2.       For the purposes of this Change Order No. 11 the provisions of the G2,
         G3 and G4 ICONET Integration Statement Of Work (Attachment 2) shall
         exclusively determine the additional responsibilities of the parties
         and the ICONET Integration services associated with the performance of
         this Change Order No. 11. Annex 9 of Schedule 14 of the Supply
         Agreement (ICONET Integration) shall not apply to the performance of
         this Change Order No. 11.

3.       At all times any:-

         (i) special test equipment;

         (ii) ICO provided Additional Resources, and;

         (iii) Contractor purchased Additional Resources

         (collectively identified as "ICO Materials"), that may be provided as a
         part of this Change Order No. 11, shall remain the property of ICO. The
         Contractor shall be responsible for the proper operation, maintenance
         and risk of loss of ICO Materials whilst in the possession, or under
         the control, of the Contractor. Upon ICO's written instruction, and at
         ICO's cost, the Contractor shall, within 30 days of the receipt of such
         written ICO instruction, arrange for the shipment and delivery of ICO
         Materials to such location(s) as ICO may specify. All ICO Materials
         shall be returned by the Contractor to ICO, in good and properly
         functioning condition save for normal wear and tear.

4.       The Parties agree that clause 15.1 and Tables 1 and 24 of Schedule 9
         (Pricing Schedule) of the Supply Agreement shall be amended by means of
         a future Change Order for the purpose of separately recording the
         values of all Change Orders agreed, inter alia, in accordance with
         clause 14 (hereinafter referred to as Non clause 15.1 Change Orders).
         The Parties undertake to ensure that such Change Order shall be
         completed no later than 31 December 1998, or by such time as the
         parties shall otherwise agree. The parties acknowledge and agree that
         the value of each such non Clause 15.1 Change Order shall not have the
         effect of adjusting the aggregate amount, as defined within clause
         15.1, and, specifically, that the value of each such Change Order shall
         not be considered as forming any part of the aggregate amount that
         would, otherwise, be applied for the purposes of clauses 18 and 51 of
         the Supply Agreement.

5.       For the purposes of this Change Order No. 11 the following clauses of
         the Supply Agreement shall be amended:-

5.1      Clause 51.2 of the Supply Agreement shall be amended as follows:-

         "If, and insofar as, any breach by the Contractor of this Change Order
         No. 11 (including the inadequate performance, or the non-performance of
         any of its obligations hereunder) shall result in any losses, damages,
         costs or liabilities for ICO (other than physical damage or loss of
         tangible property as described in clause 51.1) the Contractor shall,
         always subject to clause 51.3, indemnify ICO against any liabilities
         and costs of ICO resulting therefrom, providing that the total
         liabilities of the Contractor, to ICO, shall not exceed a sum
         equivalent to the amount paid or payable by ICO to the Contractor
         pursuant to this Change Order No. 11."
<PAGE>   1614
5.2      For the purposes of clause 52.3 and Schedule 1 of the Supply Agreement,
         and for the purposes of this Change Order No. 11, the term "Site
         Operator" shall be construed to include those parties and/or groups
         referred to, and identified as, test partners within Section 11 of
         Attachment 2 hereto ("Test Partners").

6.       The parties agree that nothing contained within this Change Order No.
         11 shall be construed as expressly, or impliedly, creating, or giving
         rise to, any contractual or other legal relationship as between the
         Contractor and any, or all, of the "Test Partners."
<PAGE>   1615
                                                            IGF Supply Agreement
                                                    CONTRACT NO ICO097 - 1016/GW
                                                             Change Order No. 11
                                                                      Attachment

                    CHANGE ORDER NO: 11    ATTACHMENT 2

G2, G3 & G4 ICONET Integration Statement of Work
<PAGE>   1616
[ICO LOGO]                                             ICO GLOBAL COMMUNICATIONS
                                                         1 QUEEN CAROLINE STREET
                                                                     HAMMERSMITH
                                                                   LONDON W6 9BN
                                                                  UNITED KINGDOM

                                                           TEL: +44 181 600 1000
                                                           FAX: +44 181 600 1199

                                                           I-CO SERVICES LIMITED
                                               REGISTERED IN ENGLAND: NO.3045294
                                         REGISTERED OFFICE: 1 QUEEN CAROLINE ST.
                                                                LONDON W6 9BN UK

                        G2, G3 AND G4 ICONET INTEGRATION
                                STATEMENT OF WORK

                             COMMERCIALLY SENSITIVE
                             REPRODUCTION PROHIBITED

CONFIDENTIALITY STATEMENT

ALL INFORMATION CONTAINED IN THIS DOCUMENT IS CONFIDENTIAL AND PROPRIETARY TO
ICO GLOBAL COMMUNICATIONS OR ANY OTHER MEMBER OF THE ICO GLOBAL COMMUNICATIONS
GROUP AND INTENDED ONLY FOR THE ADDRESSEE TO WHOM THIS COPY IS ADDRESSED. THE
RECIPIENT SHALL NEITHER COPY, DISTRIBUTE, DISCLOSE OR USE THE INFORMATION
CONTAINED IN IT FOR ANY PURPOSE OTHER THAN FOR WHICH THIS DOCUMENT HAS BEEN MADE
AVAILABLE NOR PERMIT ANYONE ELSE TO DO THE SAME. THE RECIPIENT SHALL BE HELD
FULLY LIABLE FOR ANY WRONGFUL DISCLOSURE OR USE OF ANY OF THE INFORMATION
CONTAINED IN THIS DOCUMENT BY HIM, OR HIS OFFICERS OR EMPLOYEES OR ANYONE ELSE
TO WHOM HE MAKES THE INFORMATION AVAILABLE.

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

    DOCUMENT NO.:           EN-II-ICO-SW-000374
    ----------------------------------------------------------------------------

    VERSION:                2.4
    ----------------------------------------------------------------------------

    DATE:                   27 November 1998
    ----------------------------------------------------------------------------

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

    PREPARED                APPROVED                   AUTHORISED
    ----------------------------------------------------------------------------

    Author:K.Taylor         T. Mizuno
    ----------------------------------------------------------------------------

    Signature:              /s/ T. Mizuno              /s/ **********
    ----------------------------------------------------------------------------
<PAGE>   1617
--------------------------------------------------------------------------------
[ICO LOGO]                                                   EN-II-ICO-SW-000374
                        G2 G3 and G4 Test Campaign -         Issue: 2.4
                             Statement of Work               27/11/98
--------------------------------------------------------------------------------

AMENDMENT RECORD

<TABLE>
<CAPTION>
=============================================================================================
REVISION        DATE           CN NO.     REASON FOR CHANGE
=============================================================================================
<S>             <C>            <C>        <C>
0.9             15/06/98                  First draft
---------------------------------------------------------------------------------------------
1               17/06/98                  Draft for team review
---------------------------------------------------------------------------------------------
1.5             25/06/98                  Update from team review comments
---------------------------------------------------------------------------------------------
 1.5.1          07/07/98                  NEC proposed revisions
---------------------------------------------------------------------------------------------
                14/08/98                  Further NEC revisions
---------------------------------------------------------------------------------------------
2.0             14/09/98                  Joint ICO/NEC revisions
---------------------------------------------------------------------------------------------
2.1             21/9/98                   NEC Team revisions
---------------------------------------------------------------------------------------------
2.2             24/9/98                   Final amendments on days.  [ ] shows items for
                                          discussion and agreement
---------------------------------------------------------------------------------------------
2.3             05/11/98                  NEC Team and ICO revisions
---------------------------------------------------------------------------------------------
2.4             27/11/98                  NEC Team revisions
---------------------------------------------------------------------------------------------

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

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

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

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

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

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

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

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

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

---------------------------------------------------------------------------------------------
</TABLE>

                                       2            Proprietary and Confidential
<PAGE>   1618
                                TABLE OF CONTENTS

<TABLE>
<S>   <C>                                                                       <C>
1.    INTRODUCTION............................................................   1

2.    RELATIONSHIP WITH THE IGF PROGRAMME.....................................   1

3.    OVERVIEW AND CURRENT POSITION...........................................   1

4.    CAMPAIGN REQUIREMENTS OVERVIEW..........................................   4

5.    G2, G3 AND G4 II SUPPORT SERVICE........................................   6

6.    NEC TEAM TEST CAMPAIGN MANAGER..........................................   6

7.    TECHNICAL SUPPORT SERVICE...............................................   7

8.    TEST PARTICIPANTS.......................................................   9

9.    CONTRACTOR DELIVERABLE DOCUMENTATION....................................  10

10.   ICO ROLES AND RESPONSIBILITIES..........................................  10

11.   PSTN/PLMN OPERATORS AND BOSS PROVIDER ROLES AND RESPONSIBILITIES........  12
</TABLE>
<PAGE>   1619
--------------------------------------------------------------------------------
[ICO LOGO]                                                   EN-II-ICO-SW-000374
                        G2 G3 and G4 Test Campaign -         Issue: 2.4
                             Statement of Work               27/11/98
--------------------------------------------------------------------------------

1.       INTRODUCTION

         The objective of this Statement of Work (SoW) is to define the roles,
         responsibilities, services and equipment provided by the Contractor,
         Interconnect Partners, Roaming Partners and the BOSS provider for the
         G2, G3 and G4 ICOnet Integration campaigns. This document is structured
         in the following sections:

         Section 2 describes the relationship between ICONET Integration and IGF

         Section 3 contains on overview of each campaign and the current status

         Section 4 is an overview on ICO's requirements to execute the campaigns

         Section 5 describes the services ICO require to support the campaigns

         Section 6, 7 and 8 outlines the roles of the Contractor

         Section 9 identifies Contractor deliverable documentation

         Section 10 details ICO's roles and responsibilities

         Section 11 details ICP, roaming partner and BOSS provider roles.

2.       RELATIONSHIP WITH THE IGF PROGRAMME

         The planning and scheduling of activities for the G2, G3 and G4 ICONET
         Integration campaigns shall be managed to achieve the objectives as
         defined in this document. The planning and execution of the campaigns
         shall however ensure that IGF schedules and progress are not adversely
         impacted. However, given that ICO must plan detailed schedules with
         third parties for the overall conclusion of the G2, G3 and G4 test
         campaigns, the IGF schedule must also be managed to endeavour to ensure
         the said third party schedule commitments are maintained.

         The commitment date is defined as the date when the schedule for
         execution of the tests is committed to by the NEC Team, ICO and all
         involved Third Parties. The commitment date is calculated as 45 days in
         advance of the scheduled date for the start of test within these
         campaigns. On this date NEC Team, ICO and any Third Party(ies) shall
         agree that relevant test campaigns can or cannot be executed as
         previously scheduled.

3.       OVERVIEW AND CURRENT POSITION

3.1.     G2 - SAN / PSTNS INTEGRATION CAMPAIGN.

         The campaign consists of the integration of 12 SAN sites with
         terrestrial networks, this campaign is the first time the ICOnet will
         be connected with external networks. Each SAN will be connected to the
         PSTN/ISDN via an International Switching Centre (ISC) located in that
         particular SAN country.

                                       1            Proprietary and Confidential
<PAGE>   1620
--------------------------------------------------------------------------------
[ICO LOGO]                                                   EN-II-ICO-SW-000374
                        G2 G3 and G4 Test Campaign -         Issue: 2.4
                             Statement of Work               27/11/98
--------------------------------------------------------------------------------

         The operator of the ISC forming a relationship with ICO which is known
         as an Interconnect Partner (ICP).

         ICO are currently in discussion with each of the ICPs to determine the
         exact requirements for the implementation/integration and operation of
         this Interconnect. The scope of these discussions has covered:

         - The technical specification of the interconnect

         - The processes for the management of the interconnect including
           forecasting and provisioning, testing and operation and maintenance

         It is planned that the Interconnect to each ISC will use ISUP as
         defined in ITU-T recommendation Q.767 1991.

         The ICO Interconnect Test Manual (document number IC-IG-ICO-PC-000330)
         will form the basis of G2 tests but exact test content is currently
         under negotiation with ICP's.

         The testing covers:

         - Physical/Electrical Testing

         - MTP Level 2 Tests

         - MTP Level 3 Tests

         - ISUP Basic Call Control Tests

         - Supplementary Services

         - Inter-Administration Accounting

         Currently it is planned to test at 3 SAN sites with release 7 of MSSC
         software followed by testing at all remaining sites with R8. This
         scheduling is subject to detailed planning.

3.2.     G3 - SAN /PLMNS INTEGRATION CAMPAIGN

         This campaign tests the integration between the ICOnet and terrestrial
         cellular networks, those networks being GSM and IS-41.

         The G3 campaign will verify the interworking with two GSM networks and
         two IS-41 networks.

         The contents of the G3 test campaign are summarised below.

3.2.1.   GSM PLMN

         For GSM PLMN Integration the campaign will use standard recommendations
         as detailed in IREG specifications stage 1 - 4(GSM MoU PRD CO.34 and
         GSM MoU PRD IR.21, 23, 24, 25, 26, 27)

                                       2            Proprietary and Confidential
<PAGE>   1621
--------------------------------------------------------------------------------
[ICO LOGO]                                                   EN-II-ICO-SW-000374
                        G2 G3 and G4 Test Campaign -         Issue: 2.4
                             Statement of Work               27/11/98
--------------------------------------------------------------------------------

3.2.2.   IS.41 PLMN

         For IS-4 ,unlike GSM, there are no international agreements on
         interworking. For IS-41 networks in North America, roaming tests will
         follow the existing approach i.e. inter-operability testing with the
         SS7 provider and equipment from each of the main switching vendors,
         followed by SCI testing (comparable to IREG stage 4). In regions where
         no standard approach to roaming testing exists, a similar approach to
         GSM will be adopted.

3.2.3.   G4 - IGF/BOSS INTEGRATION CAMPAIGN

         The G4 campaign is designed to ensure the inter-operability of the IGF
         network elements and the ICO Business Operations Support System (BOSS).

         The G4 campaign will test each of the following business processes:

         - Service Provisioning (including pre-personalisation)

         - Service Billing and Accounting (both fixed and inter-PLMN)

         - Management of mobile equipment (CEIR/EIR)

         The scope of the G4 campaign, together with the appropriate references
         to the IGFR, is illustrated in Figure 1.

                          [SCOPE OF G4 CAMPAIGN CHART]

         FIGURE 1 SCOPE OF G4 CAMPAIGN

         For the avoidance of doubt, the scope of G4 testing will include the
         processing of information by the BOSS system and the information
         produced at the interfaces to external network e.g. Service Partner
         records, TAP records etc and its

                                       3            Proprietary and Confidential
<PAGE>   1622
--------------------------------------------------------------------------------
[ICO LOGO]                                                   EN-II-ICO-SW-000374
                        G2 G3 and G4 Test Campaign -         Issue: 2.4
                             Statement of Work               27/11/98
--------------------------------------------------------------------------------

         comparison with data generated by the network elements to confirm both
         interface and billing function correctly.

         G4 testing will not include the participation of external entities such
         as ICPs, roaming partners etc.

         In order to ensure the success of the G4 campaign, close co-operation
         will be required between ICO and both IGF and BOSS providers.

         In order to minimise the technical risk of inter-operability, advance
         testing of the BOSS prototypes with captive network elements is also
         envisaged e.g. R7 HLR/MSSC, prior to the delivery of the final software
         versions to the SAN sites.

         It is planned that the transport between BOSS and the network elements
         will be via the DCN. (Subject to agreement of a Change Request)

         Currently it is planned that extensive testing during G4 is planned to
         be based at three SAN sites with minimal regression testing performed
         at the remainder, the extent of tests is subject to detailed planning
         to be undertaken as part of the SoW.

4.       CAMPAIGN REQUIREMENTS OVERVIEW

         The following key relationships have been identified as being critical
         to the success of the G2, G3 and G4 campaigns.

         - Interconnect Partners (PSTN Operators)

         - Roaming Partners (PLMN Operators)

         - BOSS provider

         These relationships involve commercial decisions which are key to the
         successful pursuit of ICO's business objectives and as such will be
         managed by ICO.

         ICO will assume overall management of all three campaigns (Prime
         Integrator) by assigning a Test Campaign Director for each campaign.
         The Contractor shall provide support services for the execution of the
         G2, G3 and G4 test campaigns in accordance with this SoW.

         Figure 2 shows the relationships between ICO staff, Contractors staff
         and ICO partners.

                                       4            Proprietary and Confidential
<PAGE>   1623
--------------------------------------------------------------------------------
[ICO LOGO]                                                   EN-II-ICO-SW-000374
                        G2 G3 and G4 Test Campaign -         Issue: 2.4
                             Statement of Work               27/11/98
--------------------------------------------------------------------------------

FIGURE 2: G2, G3 AND G4 TEST CAMPAIGN ORGANISATION

            [FLOW CHART OF G2, G3 AND G4 TEST CAMPAIGN ORGANISATION]

                                       5            Proprietary and Confidential
<PAGE>   1624
--------------------------------------------------------------------------------
[ICO LOGO]                                                   EN-II-ICO-SW-000374
                        G2 G3 and G4 Test Campaign -         Issue: 2.4
                             Statement of Work               27/11/98
--------------------------------------------------------------------------------

5.       G2, G3 AND G4 II SUPPORT SERVICE

         The following functions have been identified by ICO to support the G2,
         G3 and G4 test campaigns:

         - Program Management

         - Technical Support

         - Test Participants

         The specific roles that will be undertaken by the Contractor are:

         - NEC TEAM TEST CAMPAIGN MANAGER, the primary objective of the role is
           the management of Contractor resources, co-ordination of activities
           and responsibility of the timely delivery of and overall quality of
           work.

         - TECHNICAL SUPPORT, the primary objective of this role is to provide
           detailed technical support and expertise throughout the preparation
           and execution of the test campaigns.

         - TEST PARTICIPANTS, the primary objective is to execute tests on the
           Ericsson hardware.

6.       NEC TEAM TEST CAMPAIGN MANAGER

6.1.     THE ROLE:

         The Contractor, under the direction of ICO, will provide the following
         services:

         - Managing the Contractor's resources to achieve the objectives of the
           campaigns.

         - Planning, scheduling and co-ordination of the campaigns to ensure
           that at all times testing does not impact upon IGF testing.

         - Accounting for resources used and reporting

         - Prime interface to the ICO Test Campaign Director

         - Co-ordination of NEC Team members in meetings required for the
           campaigns

         - Progress reporting, in accordance with Clause 14. The format of
           reports being defined and agreed thirty days after the project kick
           off meeting.

         - Participation in ICO's risk management and mitigation planning

         - Compilation of Test Reports and Results

         - Trouble Report management

                                       6            Proprietary and Confidential
<PAGE>   1625
--------------------------------------------------------------------------------
[ICO LOGO]                                                   EN-II-ICO-SW-000374
                        G2 G3 and G4 Test Campaign -         Issue: 2.4
                             Statement of Work               27/11/98
--------------------------------------------------------------------------------

         - Matching skill sets of Test Teams with G campaigns test requirements

         - Support third party trouble shooting required, and assist in the
           identification of problems with the other elements of the ICO System.

6.2.     ANTICIPATED WORK

         - Management of resources and associated schedules

         - Weekly progress meetings with ICO

6.3.     KEY SKILLS REQUIRED

         - Project management skills.

         - Appropriate experience of both mobile and international networks and
           the relevant NEC Team members organisation and working practices.

6.4      TEST EQUIPMENT

         The parties acknowledge and agree that, dependent upon the precise
         scope of testing required, details of test equipment (to be provided by
         ICO) will need to be refined by the parties during the planning phase
         and that such details shall be agreed and particularised at that time.

7.       TECHNICAL SUPPORT SERVICE

7.1.     THE ROLE:

         The Contractor will provide expert technical support during the G2, G3
         and G4 campaigns covering (during various periods and to varying
         degrees) the following network elements:

         - MSSC/VLR

         - HLR

         - AuC

         - EIR

         - Messaging Platform

         - IS.41 Interworking Function

         The service provided shall cover:

         - Test documentation review, to review and be part of the approval
           process for test documentation for each of the test campaigns.

         - In conjunction with NEC Team Test Campaign manager review and sign
           off test documentation to confirm that testing will not compromise,
           interfere or damage individual network components or the system.

10/12/98                              7            Proprietary and Confidential
<PAGE>   1626
--------------------------------------------------------------------------------
[ICO LOGO]                                                   EN-II-ICO-SW-000374
                        G2 G3 and G4 Test Campaign -         Issue: 2.4
                             Statement of Work               27/11/98
--------------------------------------------------------------------------------

         - Participation in meetings with Interconnect/Roaming Partners or BOSS
           provider in preparation and execution of tests as required by ICO.

         - Test preparation, including pre test briefings and start of test kick
           off meetings.

         - Provide Trouble Report Guidelines showing the handling process used
           by the Contractor.

         - Test readiness review, to assist ICO in assessing Test Readiness
           criteria

         - Configuration checking, to ensure the relevant network elements
           supplied by the Contractor involved in the test campaigns are
           configured correctly in terms of data, software and hardware.

         - Technical support and trouble shooting as required during testing,
           the support should provide early resolution of problems in the
           relevant network elements supplied by the Contractor encountered
           during test execution.

         - Trouble Report Handling and Resolution, to provide prompt Trouble
           Report Handling and resolution in the relevant network elements
           supplied by the Contractor during each campaign including software
           updates if required.

         Reporting of progress and problems to NEC Team Test Campaign Manager

7.2.     ANTICIPATED WORK

         The technical support function will be involved with:

         - Interconnect, Roaming and BOSS kick off meetings

         - Review of ICO work done to date and provide input into the test
           campaigns

         - Support for test preparation with test partners

         - Second line support for trouble resolution during testing

         - Preparation and management of trouble reports through the Contractors
           trouble report handling process

         - Reporting of activities

7.3.     KEY SKILLS REQUIRED

         Practical experience of:

         - Interconnect testing of both mobile and international interconnects

         - Detailed expertise in AXE (CME20) and relevant subsystems CCS, TSS

         - ISUP, MAP, SCCP, MTP

         - Ericsson experience with a testing/trouble shooting background.

10/12/98                               8            Proprietary and Confidential
<PAGE>   1627
--------------------------------------------------------------------------------
[ICO LOGO]                                                   EN-II-ICO-SW-000374
                        G2 G3 and G4 Test Campaign -         Issue: 2.4
                             Statement of Work               27/11/98
--------------------------------------------------------------------------------

         - IREG Testing

         - Billing system integration

8.       TEST PARTICIPANTS

8.1.     THE ROLE:

         The Contractor shall provide suitably skilled and competent engineers
         to act as test participants during the G2, G3 and G4 test campaigns.

         Test participants would be required:

         - Execute tests as detailed in the Test Script Documents for each
           campaign.

         - Create or modify test scripts (as required) during testing

         - Investigate problems during testing

         - Escalate problems to technical support during testing

         - Enter MML commands into the network elements as directed by the Test
           Scripts.

         - Interface with third parties during testing (e.g. BOSS provider and
           PSTN/PLMN operators) as instructed by ICO.

         - Produce (in association with ICO) test reports

         - Participate in meetings and pre test briefings.

         - Create Test Trouble Reports

         Note: For the avoidance of doubt, all tests will be agreed in advance
         with the NEC Team and will be carried out on vendor's equipment by
         staff from only the relevant vendor.

8.2.     ANTICIPATED WORK

         - Attend pre-testing briefings and interconnect meetings

         - For G2- Participate in tests at 12 SAN sites

         - For G3- It is ICO's intent that for GSM the tests will be conducted
           at one SAN sites. For IS.41, tests will be executed at the SAN sites
           which have IS.41 IWF, that is USA, Brazil, Korea.

         - For G4- Participate in tests at the SAN and HLR sites

                                       9            Proprietary and Confidential
<PAGE>   1628
--------------------------------------------------------------------------------
[ICO LOGO]                                                   EN-II-ICO-SW-000374
                        G2 G3 and G4 Test Campaign -         Issue: 2.4
                             Statement of Work               27/11/98
--------------------------------------------------------------------------------

8.3.     KEY SKILLS REQUIRED

         - AXE (CME20) Testing experience

         - Familiar with ISUP, MAP, SCCP messaging and Protocol Analysers.

         - IS.41 and GSM knowledge

         - Billing integration experience

9.       CONTRACTOR DELIVERABLE DOCUMENTATION

         - Progress reports - in accordance with Clause 14.8

         - Trouble Report Guidelines - 6 weeks after G2,3 and 4 Change Order
           completion

         - Approve and confirm that the execution of the activities specified in
           accordance with the Test Documentation (consisting of Interconnect
           Test Manual, Roaming Test Instructions and Test Scripts) will not
           result in any adverse effects upon the IGF.

         In addition to the documentation listed above, the Contractor shall
         support ICO in reviewing, amending and developing the documents listed
         in 10.3

10.      ICO ROLES AND RESPONSIBILITIES

10.1.    CAMPAIGN DIRECTOR

         The ICO campaign director will provide high level management of the
         relevant test campaign, this should provide:

         - Review, acceptance and issue of test requirements with ICP, service
           providers the Contractor and vendors.

         - Risk management and mitigation planning

         - Management of documentation review and approval process

         - ICO internal progress reporting

         - Arbitration, escalation and acceptance of trouble resolution

         - Co-ordination of ICO test witnessing/participation

         - Responsibility for obtaining all interconnection licences and
           agreements to allow for ICONET Integration

         - Responsibility for providing all network numbering plan data and
           information to be supplied to external operators and the Contractor

                                      10            Proprietary and Confidential
<PAGE>   1629
--------------------------------------------------------------------------------
[ICO LOGO]                                                   EN-II-ICO-SW-000374
                        G2 G3 and G4 Test Campaign -         Issue: 2.4
                             Statement of Work               27/11/98
--------------------------------------------------------------------------------

         - Arranging with suppliers of other elements of the ICO System for
           their equipment to be installed or connected to the IGF where
           practical or possible to allow ICONET Integration to be carried out

         - Primary interface between vendors, service providers and the
           Contractor

         - Co-ordination of testing windows with ICPs and PLMN operators

10.2.    ICO TEST PARTICIPANTS

         The ICO test participants shall witness/ assist in the campaign testing
         where applicable, ICO participants will:

         - Develop Test requirements and Test Scripts in conjunction with
           Vendors, operators and service providers.

         - Interface between the Contractor and other vendors/ Interconnect
           Partners

         - Witness and observe testing on site, ensuring test requirements are
           adhered to and criteria met

         - Arbitrate where required

         - Generate Test Reports

         - Main Interface between ICO Test Campaign Director, Interconnect and
           Roaming Partners and BOSS vendor.

10.3.    ICO CONTROLLED DOCUMENTATION

         The documentation listed below will be managed by ICO, however, the
         Contractor shall support ICO in reviewing, amending and developing the
         following:

         - Interconnect Test Manual

         - Roaming Test Scripts

         - Test Requirements

         - Test Plan

         - Test Reports

         - Test Results

         - Test Scripts

         - Test Schedule

         For the avoidance of doubt it is intended that there will be one
         generic set of test scripts for G2 (with a sub set of these tests
         actually being carried out dependant upon ICP requirements)

                                      11            Proprietary and Confidential
<PAGE>   1630
--------------------------------------------------------------------------------
[ICO LOGO]                                                   EN-II-ICO-SW-000374
                        G2 G3 and G4 Test Campaign -         Issue: 2.4
                             Statement of Work               27/11/98
--------------------------------------------------------------------------------

         For G3, IREG Specifications stage 1-4 will form the basis of test
         documentation for GSM, while for IS-41 a generic test manual will be
         developed in association with our roaming partners.

         For G4, test documentation is to be developed in co-operation with the
         BOSS provider.

11.      PSTN/PLMN OPERATORS AND BOSS PROVIDER ROLES AND RESPONSIBILITIES

         In common with current business practice, ICO shall remain the only
         direct interface to ICPs , roaming partners and the BOSS provider,
         hereafter referred to collectively as test partners.

         The role of the test partner is:

         - To agree the test schedule in collaboration with ICO

         - To provide technical staff and support at their facilities at the
           appropriate time

         - To aid in the resolution of any problems occurring during testing

         - To report on test progress and to participate in test reviews

         - To formally sign-off in conjunction with ICO on test completion

                                      12            Proprietary and Confidential
<PAGE>   1631
                                                            IGF SUPPLY AGREEMENT
                                                    CONTRACT NO ICO097 - 1016/GW
                                                             CHANGE ORDER NO. 11
                                                                  ATTACHMENT 3.1

                  CHANGE ORDER NO: 11      ATTACHMENT 3.1

- ICONET Integration (G2 Campaign) - Price Summary

- ICONET Integration (G2 Campaign) - Labour Fee & Expenses

- ICONET Integration (G2 Campaign) - (OTHERS) Fixed Price Portion

- ICONET Integration (G2 Campaign) - Work Breakdown
<PAGE>   1632
                        ICONET INTEGRATION (G2 CAMPAIGN)

1.  G2 CAMPAIGN SUMMARY

                                        *

Note 1: The estimation is based on the test with 3 SANs at R7 software and all
9 SANs at R8 software, as per SOW.

Note 2: These costs and location of the campaign shall be subject to the
discussion and final agreement between NEC and ICO during the planning phase of
the campaign. The round trip travel cost between London and Germany are
estimated in the travel cost for Planning and Analysis phases.

Note 3: The price estimation of the deliverable documentation on the price list,
include only the material and admin costs such as papers, files, collating,
copying compiling, etc. The actual document scope such as reviewing and
developing support is priced into the man month tasks assuming an agreed generic
report format.

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

<PAGE>   1633
                        ICONET INTEGRATION (G2 CAMPAIGN)

2.  LABOUR FEE AND EXPENSES

                                        *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   1634
                        ICONET INTEGRATION (G2 CAMPAIGN)

3.  OTHERS (FIXED PRICE PORTION)

                                        *

Note:

The listed APZ test hours are fixed price element. The estimated test hours are
quoted according to the current SOW (EN-II-ICO-SW-000374, version 2.4) and the
fixed amount should be charged to ICO even the total usage is less than the
estimation. Should there be a need for additional APZ hours then these will be
charged to ICO at $167/hour in Change order.

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

<PAGE>   1635
                        ICONET INTEGRATION (G2 CAMPAIGN)

4.  WORK BREAK DOWN

                                        *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   1636
                                                            IGF Supply Agreement
                                                    Contract No ICOO97 - 1016/GW
                                                             Change Order No. 11
                                                                  Attachment 3.2

                   CHANGE ORDER NO: 11    ATTACHMENT 3.2

- ICONET Integration (G3 Campaign) - Price Summary
- ICONET Integration (G3 Campaign) - Labour Fee & Expenses
- ICONET Integration (G3 Campaign) - (OTHERS) Fixed Price Portion
- ICONET Integration (G3 Campaign) - Work Breakdown
<PAGE>   1637
                        ICONET INTEGRATION (G3 CAMPAIGN)

1.  G3 CAMPAIGN SUMMARY

                                        *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   1638
                        ICONET INTEGRATION (G3 CAMPAIGN)

2.  LABOUR FEE AND EXPENSES

                                        *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   1639
                        ICONET INTEGRATION (G3 CAMPAIGN)

3.  OTHERS (Fixed price portion)

                                        *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   1640
                        ICONET INTEGRATION (G3 CAMPAIGN)

4.  WORK BREAK DOWN

                                        *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   1641
                                                            IGF SUPPLY AGREEMENT
                                                    CONTRACT NO ICO097 - 1016/GW
                                                             CHANGE ORDER NO. 11
                                                                  ATTACHMENT 3.3

                       CHANGE ORDER NO: 11 ATTACHMENT 3.3

- ICONET Integration (G4 Campaign) - Price Summary
- ICONET Integration (G4 Campaign) - Labour Fee & Expenses
- ICONET Integration (G4 Campaign) - (OTHERS) Fixed Price Portion
- ICONET Integration (G4 Campaign) - Work Breakdown
<PAGE>   1642
                        ICONET INTEGRATION (G4 CAMPAIGN)

1.  G4 CAMPAIGN SUMMARY

                                        *

Note 1 : The estimation is based on SOW. There will be only one set of
interconnect activities per relevant subsystem of the IGF supply agreement as
shown in Figure 1 in the SOW.

Note 2 : These costs and location of the campaign shall be subject to the
discussion and final agreement between NEC and ICO during the planning phase of
the campaign. The round trip travel cost inside of Europe are estimated in the
travel cost for Planning and Analysis phases.

Note 3 : The price estimation of the deliverable documentation in the price
list, include only the material and admin costs such as papers, files,
collating, copying compiling, etc. The actual document scope such as reviewing
and developing support is priced into the man month tasks assuming an agreed
generic report format.

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

<PAGE>   1643
                        ICONET INTEGRATION (G4 CAMPAIGN)

2.  LABOUR FEE AND EXPENSES

                                        *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   1644
                        ICONET INTEGRATION (G4 CAMPAIGN)

3.  OTHERS (FIXED PRICE PORTION)

                                        *
Note:

The listed APZ test hours are fixed price element. The estimated test hours are
quoted according to the current SOW (EN-II-ICO-SW-000374, version 2.4) and the
fixed amount should be charged to ICO even the total usage is less than the
estimation. Should there be a need for additional APZ hours then these will be
charged to ICO at $167/hour in Change order.

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

<PAGE>   1645
                        ICONET INTEGRATION (G4 CAMPAIGN)

4.  WORK BREAK DOWN

                                        *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   1646
                                                               Exhibit 4.6.30.10

[ICO LOGO]           IGF SUPPLY AGREEMENT                    CHANGE ORDER NO: 12
                     CONTRACT NO ICOO97 - 1016/GW            Date: 22 March 1999

In accordance with clause 9 of the Supply Agreement dated March 3rd 1997 between
NEC Corporation and ICO Global Communications Holdings BV, the Agreement is
hereby amended as follows:

Amended Clauses              None

Amended Schedules            Schedule 13 - IGFR version 28.4

Amended Annexes              None

Amended Price                None

Other Amendments             None

Reference Correspondence     ICR01, 20, 31, CCR68, 80, 44
                             SA1118, SA0343, SA1072, SA1361, SA1258, SA1136,
                             SA1329

This Change Order No 12 will now form part of the Supply Agreement dated March
3rd 1997 between the parties as from the date of this Change Order and shall be
governed by and construed in accordance with the laws of England.

Except for the changes set out above, this Change Order No 12 makes no further
amendments or modifications to the Agreement.

Signed for and on behalf of               Signed for and on behalf of
ICO GLOBAL COMMUNICATIONS HOLDINGS BV     NEC CORPORATION

/s/ Gary S. Titzer
-------------------------------------     --------------------------------------
Supervising Officer                       Contractor's Authorised Representative

24 March 1999
-----------------------------             ---------------------------
Date                                      Date

<PAGE>   1647

                            ADDENUM 1 TO IGFR v28.4
<TABLE>
<CAPTION>

                                                                                               CHANGE
                                                                         DESCRIPTION OF        REQUEST         DATE OF
SECTION NO.                       REVISED TEXT                         PROPOSED SOLUTION         NO.          ACCEPTANCE       OWNER
------------------------------------------------------------------------------------------------------------------------------------
<S>           <C>                                                   <C>                        <C>            <C>              <C>
              Re-numbering of complete section due
4.4.1.1       to the below line insertions                          Re-numbering                ICR01                             PP
------------------------------------------------------------------------------------------------------------------------------------
              4.4.1.1.2. The IGF shall also support the
              default provisioning of HPN to all subscribers,       Clarification to the
              including GSM roamers, as an alternative to           usage of the HPN
4.4.1.1.2     individual subscription.                              service                     ICR01                             PP
------------------------------------------------------------------------------------------------------------------------------------
              4.4.1.1.3. The IGF shall provide a switchable
              "HPN provisioning parameter" to permit
              ICO to change between "individual HPN                 Clarification to the
              subscription" and "default HPN                        usage of the HPN
4.4.1.1.3     provisioning" modes of operation.                     service                     ICR01                             PP
------------------------------------------------------------------------------------------------------------------------------------
              4.4.1.1.12. In the case where an incoming
              call attempt has failed and the CLI is not
              present then there is no need to provide              Clarification to the
              an HPN notification and HPN shall not be              usage of the HPN
4.4.1.1.12    invoked.                                              service                     ICR01              24/09/98       PP
------------------------------------------------------------------------------------------------------------------------------------
              4.4.1.1.13. In the case where a mobile
              terminated SMS has failed, but the SMS
              was directed to the SIM rather than the
              end user then there is no need to                     Clarification to the
              generate an HPN notification and HPN                  usage of the HPN
4.4.1.1.13    shall not be invoked.                                 service                     ICR01              24/09/98       PP
------------------------------------------------------------------------------------------------------------------------------------

              8.7.4.2 The HPN receiver shall have the following characteristics
              for the ACK/HP channel.

              1. False Alarm Rate
                          < 0.001
              2. Detection Probability
                         > [92] %
              3. Receive Frequency Uncertainty
                        + 2.5 kHz
              4. Receive burst Timing Uncertainty
                       + 2.5 msec
              5. Channel Fading Bandwidth
                            30 Hz              AWGN
              6. Received Phase Noise
                           6(degree) rms            6(degree) rms
              7. Receiver Signal Level(single burst mode)
                           [41.5] dB Hz  [31.5]dB Hz
              8. Receiver Signal Level (dual burst mode)
                                        [38.6] dB Hz
8.7.4.2                                 [28.6]dB Hz                 IGFR Text Change           ICR 20              25/08/98       PP
------------------------------------------------------------------------------------------------------------------------------------

7.1.2.4.4     7.1.2.4.4. Satellite Access Node - OSS.               IGFR Text Change            ICR31              28/01/99       LG
</TABLE>

ICO SERVICES LTD CONFIDENTIAL       19/03/99                        PAGE 1 OF 10

<PAGE>   1648

                            ADDENUM 1 TO IGFR v28.4
<TABLE>
<CAPTION>

                                                                                               Change
                                                                         Description of        Request         Date of
Section No.                       Revised Text                         proposed Solution         No.          Acceptance       Owner
------------------------------------------------------------------------------------------------------------------------------------
<S>           <C>                                                   <C>                        <C>            <C>              <C>
7.1.8.1.9.1   7.1.8.1.9.1. LINK-OS                                  IGFR Text Change            ICR31              28/01/99       LG
------------------------------------------------------------------------------------------------------------------------------------

7.1.8.1.9.3   7.1.8.1.9.3. NODE-OS                                  IGFR Text Change            ICR31              28/01/99       LG
------------------------------------------------------------------------------------------------------------------------------------
              7.1.8.1.22.2.location and alarm status
              of the SAN sites, BDC, SCC sites. This
              information may be transported by
7.1.8.1.22.2  means other than by the TNM or DCN.                   IGFR Text Change            ICR31              28/01/99       LG
------------------------------------------------------------------------------------------------------------------------------------

7.1.8.4.3     7.1.8.4.3.The NODE-OS MMI shall:                      IGFR Text Change            ICR31              28/01/99       LG
------------------------------------------------------------------------------------------------------------------------------------
              7.2.2.14.1.3. The NMC NMS shall notify in
              advance, the relevant SAN-OSS of
              planned scheduling changes which are
              applicable to that site.  A record of this
              distribution shall be maintained at the
7.2.2.14.1.3  NMC.                                                  IGFR Text Change            ICR31              28/01/99       LG
------------------------------------------------------------------------------------------------------------------------------------
              7.2.2.14.1.5. The SAN-OSS shall record
              receipt of the schedule notification
7.2.2.14.1.5  from the NMC.                                         IGFR Text Change            ICR31              28/01/99       LG
------------------------------------------------------------------------------------------------------------------------------------
              7.2.2.14.1.6. The SAN-OSS shall be
              responsible for informing the NMC
              NMS when scheduled changes
              cannot be satisfied within the time
              scales set (i.e. due to equipment failure,
              higher priority activities, etc.) such that
7.2.2.14.1.6  re-scheduling can be undertaken.                      IGFR Text Change            ICR31              28/01/99       LG
------------------------------------------------------------------------------------------------------------------------------------
              7.2.2.14.1.7. The SAN-OSS shall be
              responsible for instructing the
              appropriate network element(s) to
              undertake the change (this is likely to
7.2.2.14.1.7  be a manual process).                                 IGFR Text Change            ICR31              28/01/99       LG
------------------------------------------------------------------------------------------------------------------------------------
              7.2.2.14.1.9. The SAN-OSS shall have the
              capability to request configuration
              change event reports from the network
7.2.2.14.1.9  elements.                                             IGFR Text Change            ICR31              28/01/99       LG
------------------------------------------------------------------------------------------------------------------------------------
              7.2.2.14.1.10. The SAN-OSS shall be
              responsible for informing the NMC NMS
              of the outcome of each scheduled
7.2.2.14.1.10 change                                                IGFR Text Change            ICR31              28/01/99       LG
------------------------------------------------------------------------------------------------------------------------------------
              7.6.1. There are no NMS requirements
              for Accounting Management except
              for the receipt of CDR files, when required,
7.6.1         from the BDC.                                         IGFR Text Change            ICR31              28/01/99       LG
------------------------------------------------------------------------------------------------------------------------------------
              7.8.4.5.1. The NODE-OS shall include
              compatible access security measures
7.8.4.5.1     as have been specified for the LINK-OS.               IGFR Text Change            ICR31              28/01/99       LG
</TABLE>

ICO SERVICES LTD CONFIDENTIAL       19/03/99                        PAGE 2 OF 10
<PAGE>   1649

                            ADDENUM 1 TO IGFR v28.4
<TABLE>
<CAPTION>
                                                                                               Change
                                                                         Description of        Request         Date of
Section No.                       Revised Text                         proposed Solution         No.          Acceptance       Owner
------------------------------------------------------------------------------------------------------------------------------------
<S>           <C>                                                   <C>                        <C>            <C>              <C>
              7.8.7.2.1. The interface between the
              Central PCS subsystem and the NMS
              shall be defined in the PCS Interface
7.8.7.2.1     Control Document.                                     IGFR Text Change            ICR31              28/01/99       LG
------------------------------------------------------------------------------------------------------------------------------------
              7.8.7.2.2. The interface between the
              Remote PCS subsystem and the SAN
              equipment shall be defined in the PCS
7.8.7.2.2.    Interface Control Document.                           IGFR Text Change            ICR31              28/01/99       LG
------------------------------------------------------------------------------------------------------------------------------------
              7.8.7.3.9. The NMC shall provide the ability
              to configure the CPCS as defined in the
7.8.7.3.9     PCS Interface Control Document.                       IGFR Text Change            ICR31              28/01/99       LG
------------------------------------------------------------------------------------------------------------------------------------
              7.8.7.5.3. The IGF shall assume that the PCS shall
              encompass its own management of the PCS equipment and
              software. However, status information shall be
              transferred from the CPCS to the NMS as
              defined in the PCS
7.8.7.5.3     Interface Control Document.                           IGFR Text Change            ICR31              28/01/99       LG
------------------------------------------------------------------------------------------------------------------------------------
              7.8.7.6.1 [It shall be possible from the NMS to
              configure PCS event parameters, status controls
              and alarms as defined
7.8.7.6.1     by the PCS Interface Control Document.]               IGFR Text Change            ICR31              28/01/99       LG
------------------------------------------------------------------------------------------------------------------------------------
              7.8.7.7.1. The CPCS and RPCS shall forward
              the raising and clearing of PCS alarms to the NMS,
              according to the PCS Interface Control Document.
              The IGF shall assume as a minimum that the
7.8.7.7.1     alarms include the following:                         IGFR Text Change            ICR31              28/01/99       LG
------------------------------------------------------------------------------------------------------------------------------------
              7.8.7.7.3.  [From the NMS it shall be
              possible to configure, purge, access,
              filter and transfer alarm data in accordance
7.8.7.7.3     with the PCS Interface Control Document.]             IGFR Text Change            ICR31              28/01/99       LG
------------------------------------------------------------------------------------------------------------------------------------
              7.8.7.8.1 [From the NMS it shall be possible to
              configure, purge, access, filter and transfer
              performance data in accordance
7.8.7.8.1     with the PCS Interface Control Document.]             IGFR Text Change            ICR31              28/01/99       LG
------------------------------------------------------------------------------------------------------------------------------------

7.8.14        7.8.14. ICO Business Data Centre                      IGFR Text Change            ICR31              28/01/99       LG
------------------------------------------------------------------------------------------------------------------------------------
              7.8.14.1. The ICO Business Data Centre
              (BDC) is involved in the activities of
7.8.14.1      provisioning, billing, partner care.                  IGFR Text Change            ICR31              28/01/99       LG
------------------------------------------------------------------------------------------------------------------------------------
              7.8.14.2. The BDC shall provide its status
              to the NMS at all times. Any fault in the
7.8.14.2      BDC shall be notified to the NMS.                     IGFR Text Change            ICR31              28/01/99       LG
</TABLE>

ICO SERVICES LTD CONFIDENTIAL       19/03/99                        PAGE 3 OF 10
<PAGE>   1650

                            ADDENUM 1 TO IGFR v28.4
<TABLE>
<CAPTION>
                                                                                               Change
     Section                                                             Description of        Request         Date of
       No.                        Revised Text                         proposed Solution         No.          Acceptance       Owner
------------------------------------------------------------------------------------------------------------------------------------
<S>           <C>                                                   <C>                        <C>            <C>              <C>
------------------------------------------------------------------------------------------------------------------------------------
              7.8.14.3. NMS shall perform a Health
              Check to the BDC periodically. The time
7.8.14.3      interval shall be operator configurable.              IGFR Text Change            ICR31               28/01/99      LG
------------------------------------------------------------------------------------------------------------------------------------
              7.8.14.4. Any CDR Log Alarm detected
7.8.14.4      by the BDC shall be notified to the NMS.              IGFR Text Change            ICR31               28/01/99      LG
------------------------------------------------------------------------------------------------------------------------------------
              7.8.14.5. Billing related complaints which can
              not be resolved at the BDC shall be forwarded to
              the NMS for possible resolution via call tracing
              facility at the NMS.
7.8.14.5                                                            IGFR Text Change            ICR31               28/01/99     LG
------------------------------------------------------------------------------------------------------------------------------------
              7.8.14.6. Relevant CDRs shall be sent from
7.8.14.6      the BDC to the NMS.                                   IGFR Text Change            ICR31               28/01/99     LG
------------------------------------------------------------------------------------------------------------------------------------
              7.8.14.7. Service affecting alarms shall be
7.8.14.7      notified from the NMS to the BDC.                     IGFR Text Change            ICR31               28/01/99     LG
------------------------------------------------------------------------------------------------------------------------------------
              3.3.3.2.1. The IGF shall provide an IF Interface
              to external Remote PCS equipment at selected SANs
              provided for PCS functions in accordance with PCS
              Interface Control Document EN-TC-ICO-IS-0003.
3.3.3.2.1                                                           IGFR Text Change            ICR31               28/01/99     LG
------------------------------------------------------------------------------------------------------------------------------------
              3.3.6.2.1. The IGF shall provide a data
              communications interface at the NMC and Backup
              NMC to external equipment at the Satellite Control
              Centre and Backup Satellite Control Centre for
              passing information between SCC and NMC in
              accordance with SCC to NMC ICD EN-TC-ICO-IS-0002.
3.3.6.2.1                                                           IGFR Text Change            ICR31               28/01/99     LG
------------------------------------------------------------------------------------------------------------------------------------
              3.3.6.3.1. The IGF shall provide a data
              communications interface at the NMC and Backup
              NMC to external Central PCS equipment for passing
              information between CPCS and NMC in accordance
              with PCS Interface Control Document
              EN-TC-ICO-IS-0003.
3.3.6.3.1                                                           IGFR Text Change            ICR31               28/01/99     LG
------------------------------------------------------------------------------------------------------------------------------------
              3.3.6.4.1. The IGF shall provide a data
              communication Interface to external Remote PCS
              equipment at selected SANs provided for PCS
              functions in accordance with PCS Interface
              Control Document EN-TC-ICO-IS-0003.
3.3.6.4.1                                                           IGFR Text Change            ICR31               28/01/99     LG
------------------------------------------------------------------------------------------------------------------------------------

2.1           2.1. DELETED                                          IGFR Text Change            ICR31               28/01/99     LG
------------------------------------------------------------------------------------------------------------------------------------
              2.10a. BDC Business Data Cenre.
2.10a                                                               IGFR Text Change            ICR31               28/01/99     LG
------------------------------------------------------------------------------------------------------------------------------------
              6.53.1.14. Total Phase Noise of the SAN
6.53.1.14     Transmit Carriers (Including Modulators)              IGFR Text Change            CCR68               24/09/98     PP
</TABLE>

ICO SERVICES LTD CONFIDENTIAL       19/03/99                        PAGE 4 OF 10

<PAGE>   1651

                            ADDENUM 1 TO IGFR v28.4
<TABLE>
<CAPTION>
                                                                                               Change
     Section                                                             Description of        Request         Date of
       No.                        Revised Text                         proposed Solution         No.          Acceptance       Owner
------------------------------------------------------------------------------------------------------------------------------------
<S>           <C>                                                   <C>                        <C>            <C>              <C>
------------------------------------------------------------------------------------------------------------------------------------
              6.53.1.14.1. The single sideband phase
              noise spectral density induced on any
              transmit carrier shall not exceed the
              values below with the AFC functions
              enabled:
              Frequency Offset (F)        SSB Phase Noise Limit
                                             (dBc/Hz; F in Hz)
              10 - 100 Hz                    -12 - 25 log(10) F
              100 - 800 Hz                 -22.2 - 19.9 log(10) F
              0.8 - 10 kHz                        -80 dBc
              10 - 20 kHz                   +52.8 -33.2 log(10) F
6.53.1.14.1   20 - 100 kHz                          -90dBc          IGFR Text Change            CCR68               24/09/98     PP
------------------------------------------------------------------------------------------------------------------------------------
              6.53.1.14.2. The integrated phase jitter
              including all random and discreate
              phase noise components when
              measured in a double sideband
              bandwidth from 10Hz to 12.5kHz shall
6.53.1.14.2   not exceed 3.1 (degrees) RMS.                         IGFR Text Change            CCR68               24/09/98     PP
------------------------------------------------------------------------------------------------------------------------------------
              6.53.1.14.3. The single sideband phase
              spectral density including all random
              and discrete phase noise components
              when measured from 12.5kHz to
6.53.1.14.3   37.5kHz shall not exceed -40dBc/25kHz.                IGFR Text Change            CCR68               24/09/98     PP
------------------------------------------------------------------------------------------------------------------------------------
              6.53.1.14.4. The single sideband phase
              spectral density including all random
              and discrete phase noise components
              when measured from 37.5kHz to
6.53.1.14.4   62.5kHz shall not exceed -43dBc/25kHz.                IGFR Text Change            CCR68               24/09/98     PP
------------------------------------------------------------------------------------------------------------------------------------
              6.53.1.14.5. In addition to the above, the
              following requirements shall be met:
              a) For offset frequencies from 10Hz to
              250 Hz, no discrete component shall
              exceed the limit mask by 10 dB.
              b) For offset frequencies from 250 Hz to
              100 kHz, no discrete component shall
6.53.1.14.5   exceed  -50 dBc.                                      IGFR Text Change            CCR68               24/09/98     PP
</TABLE>

ICO SERVICES LTD CONFIDENTIAL       19/03/99                        PAGE 5 OF 10

<PAGE>   1652

                            ADDENUM 1 TO IGFR v28.4
<TABLE>
<CAPTION>
                                                                                               Change
                                                                         Description of        Request         Date of
Section No.                      Revised Text                          proposed Solution         No.          Acceptance       Owner
------------------------------------------------------------------------------------------------------------------------------------
<S>           <C>                                                   <C>                        <C>            <C>              <C>

------------------------------------------------------------------------------------------------------------------------------------
              6.53.3.5.1. The single sideband phase noise
              spectral density induced on any transmit
              carrier shall not exceed the values given
              below:
              Frequency Offset (F)        SSB Phase Noise Limit
                                             (dBc/Hz; F in Hz)
              10 - 100 Hz                    -12 - 25 log(10) F
              100 - 800 Hz                 -22.2 - 19.9 log(10) F
              0.8 - 10 kHz                        -80 dBc
              10 - 20 kHz                   +52.8 -33.2 log(10) F
6.53.3.5.1    20 - 100 kHz                        -90 dBc           IGFR Text Change            CCR68              24/09/98       PP
------------------------------------------------------------------------------------------------------------------------------------
              6.53.3.5.2. The integrated phase jitter
              including all random and discrete
              phase noise components when
              measured in a double sideband
              bandwidth from 10Hz to 12.5 kHz shall
6.53.3.5.2.   not exceed 3.1(degree)RMS.                            IGFR Text Change            CCR68              24/09/98       PP
------------------------------------------------------------------------------------------------------------------------------------
              6.53.3.5.3. The single sideband phase
              spectral density including all random
              and discrete phase noise components
              when measured from 12.5 kHz to
6.53.3.5.3.   37.5 kHz shall not exceed - 40 dBc/25 kHz.            IGFR Text Change            CCR68              24/09/98       PP
------------------------------------------------------------------------------------------------------------------------------------
              6.53.3.5.4. The single sideband phase
              spectral density including all random
              and discrete phase noise components
              when measured from 37.5 kHz to 62.5 kHz
6.53.3.5.4    shall not exceed - 43 dBc/25 kHz.                     IGFR Text Change            CCR68              24/09/98       PP
------------------------------------------------------------------------------------------------------------------------------------
              6.53.3.5.5. In addition to the above, the
              following requirements shall be met:
              1. For offset frequencies from 10 Hz to
              250 Hz, no discrete component shall
              exceed the limit mask by 10 dB.
              2. For offset frequencies from 250 Hz to
              100 kHz, no discrete component shall
6.53.3.5.5.   exceed -50 dBc.                                       IGFR Text Change            CCR68              24/09/98       PP
</TABLE>

ICO SERVICES LTD CONFIDENTIAL       19/03/99                        PAGE 6 OF 10
<PAGE>   1653

                            ADDENUM 1 TO IGFR v28.4
<TABLE>
<CAPTION>
                                                                                               Change
                                                                         Description of        Request         Date of
Section No.                      Revised Text                         proposed Solution         No.          Acceptance       Owner
------------------------------------------------------------------------------------------------------------------------------------
<S>           <C>                                                   <C>                        <C>            <C>              <C>
------------------------------------------------------------------------------------------------------------------------------------
              6.58.2.2.7.1. The single sideband noise
              spectral density induced on any
              transmit carrier shall not exceed the
              values given below with the AFC
              function enabled:
              Frequency Offset (Hz)         SSB Phase Noise Limit.
                                              (dBc/Hz; F in Hz)
              10 - 100 Hz                     -12 - 25 log(10) F
              100 - 800 Hz                  -22.2 - 19.9 log(10) F
              0.8 - 10 kHz                         -80 dBc
              10 - 20 kHz                    +52.8 -33.2 log(10) F
6.58.2.2.7.1  20 - 100 kHz                         -90 dBc          IGFR Text Change            CCR68              24/09/98       PP
------------------------------------------------------------------------------------------------------------------------------------
              6.58.2.2.7.2. The integrated phase jitter
              including all random and discreate
              phase noise components when
              measured in a double sideband
              bandwidth from 10Hz to 12.5kHz shall not
6.58.2.2.7.2  exceed 3.1(degree) RMS.                               IGFR Text Change            CCR68              24/09/98       PP
------------------------------------------------------------------------------------------------------------------------------------
              6.58.2.2.7.3. The single sideband phase
              spectral density including all random
              and discrete phase noise components
              when measured from 12.5kHz to
6.58.2.2.7.3  37.5kHz shall not exceed -44.6 dBc/25kHz.             IGFR Text Change            CCR68              24/09/98       PP
------------------------------------------------------------------------------------------------------------------------------------
              6.58.2.2.7.4. The single sideband phase
              spectral density including all random
              and discrete phase noise components
              when measured from 37.5kHz to
6.58.2.2.7.4  62.5kHz shall not exceed -46dBc/25kHz.                IGFR Text Change            CCR68             24/09/98       PP
------------------------------------------------------------------------------------------------------------------------------------
              6.58.2.2.7.5. In addition to the above, the
              following requirements shall be met:
              1. For offset frequencies from 10 Hz to
              250 Hz, no discrete component shall
              exceed the limit mask by 10 dB.
              2. For offset frequencies from 250 Hz to
              100 kHz, no discrete component shall
6.58.2.2.7.5  exceed -50 dBc.                                       IGFR Text Change            CCR68             24/09/98       PP
</TABLE>

ICO SERVICES LTD CONFIDENTIAL       19/03/99                        PAGE 7 OF 10
<PAGE>   1654

                            ADDENUM 1 TO IGFR v28.4

<TABLE>
<CAPTION>
                                                                                               Change
                                                                         Description of        Request         Date of
Section No.                       Revised Text                         proposed Solution         No.          Acceptance       Owner
------------------------------------------------------------------------------------------------------------------------------------
<S>           <C>                                                   <C>                        <C>            <C>              <C>
------------------------------------------------------------------------------------------------------------------------------------
              6.58.3.1.7.1. The single sideband phase
              noise spectral density induced on any
              transmit carrier shall not exceed the
              values given below:
              Frequency Offset (F)         SSB Phase Noise Limit.
                                            (dBc/Hz; F in Hz)
              10 - 100 Hz                    -12 - 25 log(10) F
              100 - 800 Hz                 -22.2 - 19.9 log(10) F
              0.8 - 10 kHz                        -80 dBc
              10 - 20 kHz                   +52.8 -33.2 log(10) F
6.58.3.1.7.1  20 - 100 kHz                        -90 dBc           IGFR Text Change            CCR68             24/09/98        PP
------------------------------------------------------------------------------------------------------------------------------------
              6.58.3.1.7.2. The integrated phase jitter
              including all random and discreate
              phase noise components when
              measured in a double sideband
              bandwidth from 10Hz to 12.5kHz shall
6.58.3.1.7.2  not exceed 3.1(degree) RMS.                           IGFR Text Change            CCR68              24/09/98       PP
------------------------------------------------------------------------------------------------------------------------------------
              6.58.3.1.7.3..The single sideband phase
              spectral density including all random and
              discrete phase noise components when measured
              from 12.5kHz to 37.5kHz shall not exceed -44.6
6.58.3.1.7.3  dBc/25kHz.                                            IGFR Text Change            CCR68              24/09/98       PP
------------------------------------------------------------------------------------------------------------------------------------
              6.58.3.1.7.4. The single sideband phase
              spectral density including all random
              and discrete phase noise components
              when measured from 37.5kHz to 62.5kHz
6.58.3.1.7.4  shall not exceed -46dBc/25kHz.                        IGFR Text Change            CCR68              24/09/98       PP
------------------------------------------------------------------------------------------------------------------------------------
              6.58.3.1.7.5. In addition to the above, the
              following requirements shall be met:
              1. For offset frequencies from 10 Hz to
              250 Hz, no discrete component shall
              exceed the limit mask by 10 dB.
              2. For offset frequencies from 250 Hz to
              100 kHz, no discrete component shall
6.58.3.1.7.5  exceed -50 dBc.                                       IGFR Text Change            CCR68              24/09/98       PP
------------------------------------------------------------------------------------------------------------------------------------
              3.3.5.1. The IGF shall support interfaces to the
              BDC in accordance with the following documents:
              WG370083 "SSS Provisioning and Billing
              Interface" and IC-NM-ICO-IC-000131 "NMC-BDC
3.3.5.1       Interface Control Document".                          IGFR Text Change            CCR80              25/11/98      MCo
------------------------------------------------------------------------------------------------------------------------------------
              4.7.2.7. The HLR and MSSC/VLR shall support the
              subscription to the ICO specific services as
4.7.2.7       described in the previous sections.                   IGFR Text Change            CCR80              25/11/98      MCo
</TABLE>

ICO SERVICES LTD CONFIDENTIAL       19/03/99                        PAGE 8 OF 10
<PAGE>   1655

                            ADDENUM 1 TO IGFR v28.4

<TABLE>
<CAPTION>
                                                                                               Change
                                                                         Description of        Request         Date of
Section No.                       Revised Text                         proposed Solution         No.          Acceptance       Owner
------------------------------------------------------------------------------------------------------------------------------------
<S>           <C>                                                   <C>                        <C>            <C>              <C>
------------------------------------------------------------------------------------------------------------------------------------
              4.7.2.12. The IGF shall also support
              regional charging i.e. application of
              different tariff for different service areas
4.7.2.12      and /or service regions.                              IGFR Text Change            CCR80              25/11/98      MCo
------------------------------------------------------------------------------------------------------------------------------------
              4.8.5.3.3. To avoid unnecessary signalling traffic,
              the IGF shall be capable of handling subsequent
              location updates, within the same network, without
              passing them back to the home network. For the
              avoidance of doubt, this function is not applicable
4.8.5.3.3     for GSM anonymous roamers.                           IGFR Text Change            CCR80              25/11/98      MCo
------------------------------------------------------------------------------------------------------------------------------------
              5.2.5.4. The IGF shall support the encryption of
              subscriber authentication keys (ki) transmitted
5.2.5.4       on the interface between  the AuC and the BDC.        IGFR Text Change            CCR80              25/11/98      MCo
------------------------------------------------------------------------------------------------------------------------------------
              5.2.5.5. The IGF shall ensure that subscriber
              authentication keys (ki) held in the AuC
5.2.5.5       are stored in encrypted form.                         IGFR Text Change            CCR80              25/11/98      MCo
------------------------------------------------------------------------------------------------------------------------------------
              5.4.5.1. The IGF shall support call path tracing as
              defined in Total Function List "MSSC/VLR and HLR ICO"
5.4.5.1       (WG370116), Call Path Tracing Feature Description.    IGFR Text Change            CCR80              25/11/98      MCo
------------------------------------------------------------------------------------------------------------------------------------
              5.4.5.2. The IGFR shall support subscriber
5.4.5.2       tracing based on GSM TS 12.08. (F/R).                 IGFR Text Change            CCR80              25/11/98      MCo
------------------------------------------------------------------------------------------------------------------------------------
              5.5.2. The ability to detect the presence of long-
              hold calls and to provide information to the system
              operator indicating the presence of long held calls.
              The system shall also provide facilities for the
              system operator to manually clear a long held call.
              For the avoidance of doubt, the MSSC shall collect
              the required
5.5.2         information on a call by call basis.                  IGFR Text Change            CCR80              25/11/98      MCo
</TABLE>

ICO SERVICES LTD CONFIDENTIAL       19/03/99                        PAGE 9 OF 10
<PAGE>   1656

                            ADDENUM 1 TO IGFR v28.4

<TABLE>
<CAPTION>
                                                                                               Change
                                                                         Description of        Request         Date of
Section No.                       Revised Text                         proposed Solution         No.          Acceptance       Owner
------------------------------------------------------------------------------------------------------------------------------------
<S>           <C>                                                   <C>                        <C>            <C>              <C>
------------------------------------------------------------------------------------------------------------------------------------
              5.5.3. A mechanism to count the number of forwarded-
              to number registrations performed by the mobile
              subscriber within a certain time interval as defined
              in a Total Function List "MSSC/VLR and HLR ICO"
              (WG370116). Monitoring of Call Forwarding
5.5.3         Registration HLR Feature Description.                 IGFR Text Change            CCR80              25/11/98      MCo
------------------------------------------------------------------------------------------------------------------------------------
              5.5.4. Whenever the call forwarding registration
              counter for a subscriber reaches a threshold,
              during time supervision interval, an alarm shall
              be generated. The alarm data shall contain the
              MSISDN, date and time when the mobile subscriber has
5.5.4         reached the threshold                                 IGFR Text Change            CCR80              25/11/98      MCo
------------------------------------------------------------------------------------------------------------------------------------
              6.19.3.8. The MSSC shall support the use of service
6.19.3.8      area information to permit or to deny call set-up.    IGFR Text Change            CCR80              25/11/98      MCo
------------------------------------------------------------------------------------------------------------------------------------
              6.25.3.4. The MSSC synchronisation functions shall
              be supported in accordance with the Total Function
              List "MSSC/VLR and HLR ICO (WG370116) Network
6.25.3.4      Synchronisation Feature Description.                  IGFR Text Change            CCR80              25/11/98      MCo
------------------------------------------------------------------------------------------------------------------------------------
              Group delay variation shall be within 3ns/MHz at
              the TT&C frequencies and over the communication
              bands described above. Absolute delay stability at
              the TT&C frequencies shall be better than 3ns/6months
              and over the operating temperature range. The
              spectrum shall not be inverted. The loss of the
6.57.11.5.    translator shall be adjustable from 30 dB to 50 dB.   IGFR Text Change            CCR44              18/03/99      MCa
------------------------------------------------------------------------------------------------------------------------------------
              The absolute delay data at the TT&C
6.57.11.6.    frequencies is 9ns +/-3 ns.                           IGFR Text Change            CCR44              18/03/99      MCa
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

ICO SERVICES LTD CONFIDENTIAL       19/03/99                       PAGE 10 OF 10

<PAGE>   1657
                                                               Exhibit 4.6.30.11

[ICO LOGO]           IGF SUPPLY AGREEMENT                    CHANGE ORDER NO: 13
                     CONTRACT NO ICO097 - 1016/GW        DATE:  25 FEBRUARY 1999

In accordance with clause 9 of the Supply Agreement dated March 3rd 1997 between
NEC Corporation and ICO Global Communications Holdings BV, the Agreement is
hereby amended as follows:

Amended Clauses              See Attachment No. 1

Amended Schedules            None

Amended Annexes              None

Amended Price                See Attachment No. 1

Other Amendments             See Attachment No. 1

Reference Correspondence     SA1185/WG7/19981007/GKS dated 7 October 1998

This Change Order No. 13, effective from 7 October 1998, will now form part of
the Supply Agreement dated March 3rd 1997 between the parties and shall be
governed by and construed in accordance with the laws of England.
Except for the changes set out above, this Change Order No. 13 makes no further
amendments or modifications to the Agreement.

Signed for and on behalf of               Signed for and on behalf of
ICO GLOBAL COMMUNICATIONS HOLDINGS BV     NEC CORPORATION

/s/ illegible                             /s/ Takao Nishizawa
-------------------------------------     --------------------------------------
Supervising Officer                       Contractor's Authorised Representative
                                          Takao Nishizawa
                                          General Manager, Europe Div.

25 February 1999                          1 March 1999
-----------------------------             ---------------------------
Date                                      Date
<PAGE>   1658
                                              CONTRACT NUMBER: ICO 097 - 1016/GW
                                                             CHANGE ORDER NO: 13

                               CHANGE ORDER NO: 13

                                     TO THE

                                SUPPLY AGREEMENT

                                     BETWEEN

                                 NEC CORPORATION

                                       AND

                      ICO GLOBAL COMMUNICATIONS HOLDINGS BV
<PAGE>   1659
                                                             CHANGE ORDER NO. 13
                                                 TO THE SUPPLY AGREEMENT BETWEEN
                                                             NEC CORPORATION AND
                                           ICO GLOBAL COMMUNICATIONS HOLDINGS BV
                                                                    ATTACHMENT 1

By this Change Order No. 13, the Supply Agreement dated March 3, 1997, between
NEC Corporation ("the Contractor") and ICO Global Communications Holdings BV
("ICO") (hereinafter referred to as the "Supply Agreement") is amended as set
out below:

BACKGROUND TO CHANGE ORDER NO. 13

A)       Under the terms and conditions set forth in the Supply Agreement, ICO
         agreed to purchase from the Contractor certain equipment and services
         as are specified therein, and the Contractor and the other members of
         the NEC Team have agreed to provide the said equipment and services;

B)       ICO has agreed that the NEC Team shall carry out Works and produce
         Deliverables under Clause 9 of the Supply Agreement in accordance with
         the terms of the Statement of Work for the ICONET Integration Top Level
         Baseline Plan - Doc: WG7-80235-B comprising Attachment 2 to this Change
         Order.

C)       The principal objective of the Statement of Work (Doc: WG7-80235-B) is
         to define the actions and activities incumbent upon the parties
         necessary to enable the Contractor to prepare the Top Level Baseline
         Plan (TLBP) which is defined within the Statement of Work as the 4th
         Deliverable to be delivered by the Contractor to ICO. The production of
         the TLBP and other Deliverables under the Statement of Work is intended
         to provide the basis for a further Change Order to be agreed between
         ICO and the Contractor pursuant to clause 14 of the Supply Agreement
         for the detailed planning, implementation and execution of elements of
         the ICONET Integration G1, G5 and G6 Campaigns as agreed in such
         further Change Order.

D)       For the purposes of this Change Order ICO and the Contractor have
         agreed to amend the Supply Agreement to govern the terms of the Works
         and the Deliverables as specified in Attachment 2.

         In consideration of the foregoing and for other good and valuable
         consideration, acknowledged by the parties to have been given, it is
         agreed:-

1.       DEFINITIONS

         For the purposes of this Change Order the following words used herein
         or in the Supply Agreement shall have the following meanings:-

                                      -1-
<PAGE>   1660
         "Statement of Work" and "Works" shall mean Attachment 2 (Top Level
         Baseline Plan for ICONET Integration Campaigns (G1, G5, G6), Document
         No: WG7-80235-B dated 5 October 1998) and the works described therein.

         "Deliverables" shall mean those deliverables set out within sections
         5.1 to 5.1.4 of Attachment 2.

         "Schedule" shall mean the ICONET Integration Schedule for the TLBP
         Program, referred to in section 6 of Attachment 2, and which schedule
         is set out within Attachment 3 to this Change Order.

         For the avoidance of doubt, references in the Supply Agreement to Top
         Level Milestone Schedule and Master Level Schedule shall not apply to
         this Change Order.

2.       WORKS AND DELIVERABLES

         ICO hereby agrees to purchase, and the Contractor agrees to supply, the
         Deliverables and to carry out the Works set out in Attachment 2 in
         accordance with the time scales set out in Attachment 3 at the prices
         set forth in Clause 5 of this Change Order. ICO further agrees to
         provide to the Contractor those deliverables as specified in sections
         2.1.1 and 2.4.1 of Attachment 2.

3.       APPLICATION OF SUPPLY AGREEMENT TERMS AND CONDITIONS

3.1      The following clauses of the Supply Agreement shall not apply to this
         Change Order:

         4.1(a), 4.1(c) to (e) inclusive, 4.1(h) and 4.1(i), 4.1(n), 4.2 to 4.5
         inclusive, 4.7, 4.10, 5 to 8 inclusive, 12.2 to 12.4 inclusive, 13.2 to
         13.5 inclusive, 14, 15.1 to 15.4 inclusive, 16.1 to 16.3 inclusive,
         16.6 to 16.18 inclusive, 18, 19, 22, 23, 25 to 29 inclusive, 31 to 38
         inclusive, 40.1 to 40.11 inclusive, 40.12 (b) and (c), 40.13, 40.15,
         40.16, 44 to 48 inclusive, 52.2 to 52.4 inclusive, 54, 56, Schedules 6
         to 12 inclusive.

3.2      The following clauses of the Supply Agreement are amended for the
         purpose only of this Change Order and not further or otherwise.
         4.1 (b) is amended to read:

         "it will design, develop, create, deliver and provide (as the case may
         be) all of the Deliverables so as to fulfil the objectives and the
         requirements of the Statement of Work"

         4.1 (l) is amended to read:

         "it will provide and will ensure that its Sub-Contractors provide, a
         sufficient number of suitably skilled and appropriately experienced
         personnel to meet the

                                      -2-
<PAGE>   1661
         objectives of this Change Order and to ensure that delivery of the
         Deliverables is completed in accordance with the Schedule;"

         Clause 12.1 shall be amended to read:

         "Without prejudice to ICO's other obligations under this Change Order,
         ICO shall provide the Contractor with such information, services and
         equipment as shall be specified in the Statement of Work. To the extent
         that ICO's failure in any material respect to comply with its
         obligations under this clause 12.1 shall adversely and directly affect
         the ability of the Contractor to comply with the Schedule, then to the
         extent the Contractor and the other members of the NEC Team can
         demonstrate the same to be required, the Schedule shall be adjusted in
         an equitable manner and the Contractor may recover from ICO all direct
         costs reasonably incurred as a result of such adjustment".

         Clause 40.14 shall be amended to read:

         "The rights and remedies of ICO under this Clause 40 are in addition
         to, and do not limit, any other rights and remedies ICO may have. In
         particular, ICO's rights under this Change Order arising out of fraud
         or such gross mistakes as amount to fraud are not limited in point of
         time or by this clause".

         Clause 51.2 shall be amended as follows:-

         If and insofar as any breach by the Contractor of this Change Order
         (including the inadequate performance or the non-performance of any of
         its obligations hereunder) shall result in any losses, damages, costs
         or liabilities for ICO (other than any physical damage or loss of
         tangible property as described in clause 51.1) the Contractor shall,
         subject always to clause 51.3, indemnify ICO against any liabilities
         and costs of ICO provided that the total liabilities of the Contractor
         to ICO resulting therefrom (whether under this indemnity or for breach
         of this Change Order or for negligence or of whatsoever nature) shall
         not exceed the value of this Change Order.

4.       PRICE AND PAYMENT

4.1      ICO will purchase the Deliverables hereunder for the firm fixed price
         of   *   . Payment will become due by ICO on the following basis

         (i)     *   of the price to be invoiced by the Contractor to ICO ten
         days after the effective date of this Change Order;

         (ii)    *   of the price to be invoiced by the Contractor to ICO on the
              date of delivery to ICO of the 4th Deliverable due under this
              Change Order.

4.2      The Contractor shall invoice ICO for such payments on the due dates and
         ICO shall pay such valid invoices submitted in the form specified in
         Schedule 4 of the Supply Agreement within 30 days of receipt.

         * Confidential Treatment Requested and the Redacted Material has been
           separately filed with the Commission.

                                      -3-
<PAGE>   1662
4.3      The Parties agree that clause 15.1 and Tables 1 and 24 of Schedule 9
         (Pricing Schedule) of the Supply Agreement shall be amended by means of
         a future Change Order for the purpose of separately recording the
         values of all Change Orders agreed, inter alia, in accordance with
         clause 14 (hereinafter referred to as "Non clause 15.1 Change Orders").
         The parties acknowledge and agree that the value of each such Non
         clause 15.1 Change Order shall not have the effect of adjusting the
         Price, as defined within clause 15.1, and, specifically, that the value
         of each such Change Order shall not be considered as forming any part
         of the Price that would, otherwise, be applied for the purposes of
         clauses 18 and 51 of the Supply Agreement.

5.       ACCEPTANCE

         ICO shall have 28 days from the receipt of any Deliverable hereunder in
         which to accept such Deliverable. If ICO does not accept any
         Deliverable it will indicate its non acceptance within 28 days of
         receipt and provide the Contractor with written reasons for its non
         acceptance, which shall be on the basis that in ICO's reasonable view,
         the Deliverable fails in a material way to meet the requirements set
         out in Attachment 2. Should ICO fail to either accept or indicate its
         non acceptance of any Deliverable within 28 days of its delivery, the
         Deliverable will be deemed to be accepted by ICO.

6.       DELIVERY

         All Deliverables shall be provided in accordance with Annex 6 of the
         Supply Agreement.

         All deliverables shall be delivered to:-
         ICO Global Communications Holdings BV
         c/o ICO Services Limited
         1 Queen Caroline Street
         London W6 9BN
         England
         For the attention of: George Wiginton - Procurement Manager

7.       FINANCING

         The Parties agree that the NEC Team has no obligation to provide vendor
         financing to ICO pursuant to this Change Order.

8.       RATIFICATION OF ICO SUPPLY AGREEMENT

         Except as provided for herein, the terms and conditions of the Supply
         Agreement shall continue in full force and effect.

8.1      This Change Order sets forth the entire agreement between the Parties
         as to the subject matter hereof and supersedes all prior discussions
         between them, and neither of the Parties shall be bound by any
         conditions, definitions, warranties,

                                      -4-
<PAGE>   1663
         understandings, or representations with respect to such subject matter
         other than as expressly provided herein.

8.2      In the event of a conflict between the terms of this Change Order and
         the terms of the Supply Agreement, the terms of this Change Order shall
         prevail.

                                      -5-
<PAGE>   1664
                          CHANGE ORDER NO: 13 ATTACHMENT 2

Statement of Work for the ICONET Integration Top Level
Baseline Plan (Doc. WG7-80235-B)
<PAGE>   1665
            TOP LEVEL BASELINE PLAN FOR ICONET INTEGRATION CAMPAIGNS
                                  (G1, G5, G6)

                   --------------------------------
                   DOCUMENT NO.:    WG7 80235

                   --------------------------------
                   VERSION:         B

                   --------------------------------
                   DATE:            5 October, 1998

                   --------------------------------
<PAGE>   1666
AMENDMENT RECORD

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
REVISION       DATE      CN NO.   REASON FOR CHANGE

--------------------------------------------------------------------------------
<S>            <C>       <C>      <C>
A1             18/9/98            Original Draft
--------------------------------------------------------------------------------
A2             18/9/98            Revised in consultation with ICO
--------------------------------------------------------------------------------
A3             23/9/98            NEC Team's Proposed Revisions
--------------------------------------------------------------------------------
A4             23/9/98            J. Lunn/A. Fuji Proposed Revisions
--------------------------------------------------------------------------------
A5             24/9/98            A. Fuji Proposed Revisions
                                  B. Sample Template Attachment No 2 Added
--------------------------------------------------------------------------------
A6             24/9/98            A. Fuji Proposed Revisions
--------------------------------------------------------------------------------
A7             24/9/98            ICO Proposed Revisions
                                  Sample ICO Risk Register Deliverable Added
--------------------------------------------------------------------------------
A8             29/9/98            Sample ICO/NEC deliverable sorted out
--------------------------------------------------------------------------------
A9             2/10/98            Revisions from ICO/NEC Meeting 2/10/98
--------------------------------------------------------------------------------
B              5/10/98            Revisions from ICO/NEC Meeting 5/10/98
--------------------------------------------------------------------------------

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

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

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

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

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

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

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

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

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

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

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

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

--------------------------------------------------------------------------------
</TABLE>
<PAGE>   1667
ICONET INTEGRATION TOP LEVEL BASELINE PLAN                      DOC: WG7-80325-B
STATEMENT OF WORK

                                TABLE OF CONTENTS

1.    INTRODUCTION                                                             4

2.    PROCESS TO DEVELOP TLBP                                                  4

3.    RESPONSIBILITIES OF THE NEC TEAM                                         8

4.    RESPONSIBILITIES OF ICO                                                  8

5.    DELIVERABLE DOCUMENTS                                                    9

6.    SCHEDULE FOR THE TLBP PROGRAM                                           10

CREATED: 18/9/98                                                    PAGE 3 OF 22
REVISED: 17/02/99
<PAGE>   1668
ICONET INTEGRATION TOP LEVEL BASELINE PLAN                      DOC: WG7-80325-B
STATEMENT OF WORK

1.       INTRODUCTION

1.1      The objective of this Statement of Work (SOW) is to define the
         framework for preparation of the Top Level Baseline Plan (TLBP). The
         work will produce the necessary Deliverables to allow a formal Change
         Order to be agreed by ICO and the NEC team, in accordance with Clause
         14 of the Terms and Conditions of the Supply Agreement, for the
         detailed planning, implementation and execution of selected elements of
         the ICONET Integration campaigns.

1.2      This SOW applies only to those parts of the ICONET Integration (II)
         work designated as G1, G5 and G6 II Campaigns.

1.3      The Top Level Baseline Plan (TLBP) will provide the basis for the
         detailed planning, and execution of the selected sub-campaigns as
         defined in the G1/G5/G6 Requirement Document. Full details of the scope
         of the TLBP are in Section 2.5 of this Statement of Work.

1.4      In parallel, with the preparation of this TLBP, ICO and the NEC Team
         shall jointly prepare the SOW for the Change Order, covering the
         detailed management, report and review structure, for the ICONET
         Integration work in accordance with the Supply Agreement Clause 14.

1.5      This SOW sets out the processes, method of working, the schedule and
         the Deliverables to be provided by NEC and ICO in order to produce the
         TLBP.

2.       PROCESS TO DEVELOP TLBP

         The process for developing the Top Level Baseline Plan will involve
         four separate stages:

         -    Identification, prioritisation and selection of Risks to be
              retired by this part of the ICONET Integration program

         -    Determination of Sub-campaigns for retiring Selected Risks

         -    Estimation of Costs and Outline Schedule for Sub-campaigns

         -    Review and Re-Prioritisation of Risks to define the final scope of
              this part of the II campaign.

CREATED: 18/9/98                                                    PAGE 4 OF 22
REVISED: 17/02/99
<PAGE>   1669
ICONET INTEGRATION TOP LEVEL BASELINE PLAN                      DOC: WG7-80325-B
STATEMENT OF WORK

2.1      IDENTIFICATION, PRIORITISATION AND SELECTION OF RISKS

2.1.1    ICO shall prepare and deliver an initial Register of Risks to the NEC
         Team

         The ICO Register of Risks shall be the first ICO Deliverable of the
         TLBP Program submitted for the NEC Team's consideration.

2.1.2    The NEC Team and ICO shall review the initial Register of Risks to
         confirm, as far as possible, its completeness and priority ranking.

2.1.3    ICO with the support of the NEC Team shall then select those Risks,
         which require further detailed evaluation with a view to incorporating
         them in the final TLBP.

2.1.4    The final selected and agreed Register of Risks shall be the first NEC
         Deliverable of the TLBP program submitted for ICO's consideration

2.2      DETERMINATION OF SUB-CAMPAIGNS FOR RETIRING SELECTED RISKS

2.2.1    The NEC team, with ICO support, will propose a preferred method to
         retire each selected risk by considering tests previously proposed by
         NEC in their proposal to ICO for the II G1, G5 and G6 campaigns and
         considering alternative methods. These proposed preferred methods will
         take into account as far as possible the nature of the risk, the effort
         required, grouping of individual methods into a sub-campaign, and the
         ICO and IGF schedules.

2.2.2    The proposed methods will be grouped into a number of sub-campaigns (in
         the order of 10 - 20 sub-campaigns) within the framework defined in the
         Supply Agreement.

2.2.3    The NEC Team, with ICO support, will identify and propose the most
         appropriate time(s) and location(s) for the sub-campaigns with respect
         to the Master IGF Test Schedule and ICO dependencies.

2.2.4    The consolidated list of sub-campaigns for the Selected Risks shall be
         the second NEC Deliverable of the TLBP program submitted for ICO's
         consideration.

CREATED: 18/9/98                                                    PAGE 5 OF 22
REVISED: 17/02/99
<PAGE>   1670
ICONET INTEGRATION TOP LEVEL BASELINE PLAN                      DOC: WG7-80325-B
STATEMENT OF WORK

2.3      ESTIMATION OF COSTS AND SCHEDULE FOR THE SUB-CAMPAIGNS

2.3.1    The NEC Team will review the complete listing of Sub-campaigns, for
         mitigation of the agreed Risks, and will estimate the resources and any
         other associated costs required to develop detailed plans, scripts, and
         reports necessary to plan and execute each of the sub-campaigns.

2.3.2    The NEC team will estimate the man-months and associated costs covering
         test equipment, special test equipment, travel and additional resources
         needed for execution of the sub-campaigns at the selected location(s).

2.3.3    The schedule for execution of the sub-campaigns will be co-ordinated by
         NEC with the Master IGF Test Schedule to ensure that the IGF schedule
         and progress are not adversely impacted.

2.3.4    Key constraints and key dependencies on NEC and the IGF shall be
         identified by NEC at this stage of planning.

2.3.5    Key constraints and key dependencies on ICO and other elements of the
         ICONET System shall be identified by NEC.

2.3.6    Where there is a conflict between IGF schedule and resource
         requirements and the sub-campaign schedules and resource requirements,
         the NEC Team shall propose alternative resolutions for the situation
         with statements of their impact.

2.3.7    This consolidated listing of estimated costs for the sub-campaigns and
         an overall outline schedule for detailed planning and execution of
         these sub-campaigns shall be the third NEC Deliverable of the TLBP
         program submitted for ICO's consideration.

2.4      REVIEW AND RE-PRIORITISATION OF RISKS TO DEFINE FINAL SCOPE OF THE II
         CAMPAIGN

2.4.1    ICO shall review the NEC Team's consolidated listing of sub-campaigns
         for Selected Risks and its consolidated listing of estimated costs and
         outline schedule. ICO will re-prioritise the Register of Risks with the
         associated sub-campaigns for selected Risks and will produce the G1,
         5,6 Requirement Document (G1, 5,6 RD).

CREATED: 18/9/98                                                    PAGE 6 OF 22
REVISED: 17/02/99
<PAGE>   1671
ICONET INTEGRATION TOP LEVEL BASELINE PLAN                      DOC: WG7-80325-B
STATEMENT OF WORK

2.4.2    The G1, 5,6 RD will define the scope of sub-campaigns s to be covered
         in the TLBP. The G1, 5,6 Requirement Document shall be derived from and
         consistent with the NEC Team's consolidated listing of Sub-campaigns
         and its consolidated listing of estimated costs and outline schedule.

2.4.3    ICO's G1, 5,6,RD will be the second ICO Deliverable of the TLBP program
         submitted for further action as defined in Para 2.5.1 below.

2.4.4    For the avoidance of doubt ICO will be solely responsible for the final
         selection of the Risks and sub-campaigns to be planned and executed
         during the overall ICONET Integration Program.

2.5      TOP LEVEL BASELINE PLAN

2.5.1    The NEC team and ICO shall jointly review the ICO G1,5,6,RD to confirm
         the contents are technically and commercially consistent with the NEC
         Team's previously submitted 2nd and 3rd Deliverables.

2.5.2    The NEC Team, with ICO support, shall assemble the individual
         Deliverables that comprise the Top Level Baseline Plan.

2.5.3    The Top Level Baseline Plan will provide all the necessary instructions
         for completion of detailed planning and execution of the sub-campaigns
         s defined in the G1, 5,6 RD. The TLBP will, as a minimum, include :

         -    the Key Drivers and Goals for those parts of the ICONET
              Integration Program defined in the G1,5,6 RD.

         -    The sub-campaign objectives and scope of those parts of the ICONET
              Integration Program defined in the G1, 5,6 RD.

         -    The windows in the IGF schedule and preferred location(s) for
              execution of individual sub-campaigns defined in the G1, 5,6 RD.

         -    The estimated man-months and associated costs for the
              sub-campaigns defined in the G1, 5,6 RD.

         -    the resources and skill sets to be provided by NEC.

         -    the resources and skill sets required to be provided by ICO.

         -    the dependencies on NEC and the IGF, IGF facilities, test
              equipment and IGF software build state(s) required to perform the
              sub-campaigns defined in the TLBP.

CREATED: 18/9/98                                                    PAGE 7 OF 22
REVISED: 17/02/99
<PAGE>   1672
ICONET INTEGRATION TOP LEVEL BASELINE PLAN                      DOC: WG7-80325-B
STATEMENT OF WORK

         -    Identify the configuration required to perform the sub-campaigns
              set out in the G1, 5,6 RD.

         -    the dependencies on ICO and any other elements of the ICONET
              system, including test equipment to be supplied by ICO (e.g.
              prototype UTs), satellite coverage, frequencies, licences,
              interconnect requirements.

         -    The respective responsibilities of the NEC Team and ICO for the
              conduct of the sub-campaigns defined in the G1, 5, 6 RD.

2.5.4    The final agreed Top Level Baseline Plan shall be the fourth and final
         NEC Deliverable of the TLBP program.

3.       RESPONSIBILITIES OF THE NEC TEAM

3.1      The NEC Team shall perform the necessary work to produce the Top Level
         Baseline Plan and the associated defined Deliverables at the due dates.

3.2      Provision of the necessary resources to meet the requirements specified
         in this Statement of Work

3.3      Configuration control of the NEC Deliverable documentation

3.4      NEC Team shall use their knowledge of the IGF Schedule to plan the
         selected sub-campaigns

4.       RESPONSIBILITIES OF ICO

4.1      ICO shall provide to NEC the deliverables specified in this Statement
         of Work.

4.2      ICO shall provide support to NEC as specified in this Statement of
         Work.

4.3      ICO shall be responsible for identifying the Key drivers and goals,
         which will determine ICO's philosophy with regard to ICONET
         Integration. These Key drivers can then be used to further develop the
         ICONET Integration strategy, which is then used to identify and
         prioritise the risks, and campaigns that need to be performed.

CREATED: 18/9/98                                                    PAGE 8 OF 22
REVISED: 17/02/99
<PAGE>   1673
ICONET INTEGRATION TOP LEVEL BASELINE PLAN                      DOC: WG7-80325-B
STATEMENT OF WORK

4.4      Provision of the necessary resources to meet the requirements specified
         in this Statement of Work

4.5      ICO will, where such information is available, provide such information
         as to allow NEC Team to plan for the ICONET Integration work to go
         ahead at identified locations.

4.6      ICO will provide NEC Team with information on satellite deployment as
         required to be taken into account in the planning of the sub-campaigns
         in the G1, 5,6 RD.

4.7      Configuration control of the ICO Deliverable documentation

5.       DELIVERABLE DOCUMENTS

5.1      The NEC Team shall provide the following Deliverables to ICO

5.1.1    1ST NEC DELIVERABLE.

         Agreed Risk Register, which identifies Risk to be evaluated during the
         TLBP Program as specified in 2.1. An edited version of sample template
         for the Agreed Risk Register, shown in Attachment No 2, including NEC
         Team's comments.

5.1.2    2ND NEC DELIVERABLE.

         Listing of sub-campaigns for agreed Risks with an Outline Schedule
         identifying when the sub-campaigns can be executed and at which of the
         preferred location(s) as specified in 2.2. A sample template for a
         typical sub-campaign is shown in Attachment No 3.

5.1.3    3RD NEC DELIVERABLE.

         Listing of Estimated Man-Months, and associated costs for the detailed
         planning, implementation and execution of the selected sub-campaigns
         Listing, where known, of dependencies on ICO and any other elements of
         the ICONET system as specified in 2.3 A sample template for an
         estimated Man-Months and costing tables, still has to be discussed and
         agreed, before being shown in Attachment No.4

5.1.4    4TH NEC DELIVERABLE.

CREATED: 18/9/98                                                    PAGE 9 OF 22
REVISED: 17/02/99
<PAGE>   1674
ICONET INTEGRATION TOP LEVEL BASELINE PLAN                      DOC: WG7-80325-B
STATEMENT OF WORK

         Top Level Baseline Plan, which will include the NEC Team's 1st, 2nd and
         3rd Deliverables and ICO's 1st and 2nd Deliverables.

5.2      ICO will provide the following Deliverables to NEC.

5.2.1    1ST ICO DELIVERABLE.

         Initial Risk Register as specified in 2.1.

         A sample template for the initial Risk Register is shown in Attachment
         No 1.

5.2.2    2ND ICO DELIVERABLE.

         G1,5,6 Requirement Document (G1,5,6 RD) as specified in 2.4.

6.       SCHEDULE FOR THE TLBP PROGRAM

6.1      The schedule for preparing the Top Level baseline Plan is attached to
         this Statement of Work.

CREATED: 18/9/98                                                   PAGE 10 OF 22
REVISED: 07/02/99
<PAGE>   1675
ICONET INTEGRATION TOP LEVEL BASELINE PLAN                      DOC: WG7-80325-B
STATEMENT OF WORK

                                 ATTACHMENT NO 1

                               1ST ICO DELIVERABLE
                  SAMPLE TEMPLATE FOR ICO INITIAL RISK REGISTER
       ICO will provide information in this format, covering Risk ID, Risk
       Description, Probability and Calculated Severity. Mitigation Strategy
       details may be completed, but not as a pre-requisite.

                                                                   PAGE 11 OF 22

CREATED: 18/9/98
REVISED: 17/02/99
<PAGE>   1676
ICONET INTEGRATION TOP LEVEL BASELINE PLAN                      DOC: WG7-80325-B
STATEMENT OF WORK

(II RELATED) REGISTER OF TECHNICAL RISKS TO ICO SL1

              High 3    >50% = 3     15-50% = 2     <15% = 1         WHERE

              Med 2                                                  TESTED

              Low 1

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------
RISK           PERFORMANCE                        RISK                    IMPACTED   IMPACT  LIKELI-  SEVERITY  SP.  UT   BOSS
 ID            REQUIREMENT                                                 FUNCT./    LEVEL   HOOD
                                                                           SUBSYS
------------------------------------------------------------------------------------------------------------------------------
<S>          <C>                     <C>                                  <C>        <C>     <C>      <C>       <C>  <C>  <C>

------------------------------------------------------------------------------------------------------------------------------
RF.0         RF SIGNAL (LEVEL,
             FREQ, SYNCH AND
             TIMING)
------------------------------------------------------------------------------------------------------------------------------
RF.2                                 Freq/Bandwidth occupancy problems                  2       2     Moderate
                                     (alignment, re-use, co-
                                     channel I etc)
------------------------------------------------------------------------------------------------------------------------------
RF.3                                 RF Interference, (spurs, multipath,                2       2     Moderate
                                     fading problems) etc
------------------------------------------------------------------------------------------------------------------------------
RF.4                                 AFC system and Doppler correction/                 2       3     High
                                     tracking problems
------------------------------------------------------------------------------------------------------------------------------
                                     Power Control                                      2       3     High
------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------------
BCCH.1.1     SATELLITE ACQUISITION   BCCH Power Level Incorrect           Traffic &     2       1     V Minor
             & REGISTRATION                                                Billing
------------------------------------------------------------------------------------------------------------------------------
BCCH.1.3                             UT Receiver Acquisition Slow             UT        3       2     High

------------------------------------------------------------------------------------------------------------------------------
BCCH.1.4                             Synchronisation Errors (BCCH and     Traffic &     3       2     High
                                     Signal Complex Timing)                Billing
------------------------------------------------------------------------------------------------------------------------------
BCCH.1.5                             BCCH Frequency List Incorrect        Traffic &     3       2     High
                                                                           Billing
------------------------------------------------------------------------------------------------------------------------------
BCCH.1.6                             UT Receiver Acquisition Timeout       Traffic &     3       2     High
                                     (BCCH Frequency Known/Unknown)        Billing
------------------------------------------------------------------------------------------------------------------------------
POSITION.1                           UT position computation inaccurate   Traffic &     3       2     High
                                                                           Billing
------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------
RISK           SUB  OTH.  IOT  IGF  G0   G2/G3  G156  G4   POFT  MITIGATION TEST IDS IN G1
 ID            SYS

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

--------------------------------------------------------------------------------------------------
RF.0

--------------------------------------------------------------------------------------------------
RF.2                                                             G1.1.3 RF Signal
                                                                 (Level,Freq.,Burst Timing)

--------------------------------------------------------------------------------------------------
RF.3                           Y                                 G1.1.3 RF Signal
                                                                 (Level,Freq.,Burst Timing)
--------------------------------------------------------------------------------------------------
RF.4

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

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

--------------------------------------------------------------------------------------------------
BCCH.1.1                                                         G1.1.0: Calibration of SBS and UT
                                                                 Transmit Carriers
--------------------------------------------------------------------------------------------------
BCCH.1.3                                                         G1.1.1: Satellite Acquisition and
                                                                 Registration (BCCH Unknown)
--------------------------------------------------------------------------------------------------
BCCH.1.4                                                         G1.1.1: Sat.Acquisition &
                                                                 Registration (BCCH Unknown)
--------------------------------------------------------------------------------------------------
BCCH.1.5                                                         G1.1.1: Sat.Acquisition &
                                                                 Registration (BCCH Unknown)
--------------------------------------------------------------------------------------------------
BCCH.1.6                                                         G1.1.1/2: Sat.Acquisition &
                                                                 Registration (BCCH Known/Unknown)
--------------------------------------------------------------------------------------------------
POSITION.1                                                       G1.1.3 RF Signal
                                                                 (Level,Freq.,Burst Timing)
--------------------------------------------------------------------------------------------------
</TABLE>

                                                                   PAGE 12 OF 22

CREATED: 18/9/98
REVISED: 29/9/98
<PAGE>   1677
ICONET INTEGRATION TOP LEVEL BASELINE PLAN                 DOC: WG7-80325-A8
STATEMENT OF WORK

                                 ATTACHMENT NO 2

                               1ST NEC DELIVERABLE
                    SAMPLE TEMPLATE FOR AGREED RISK REGISTER

                                                                   PAGE 13 OF 22

CREATED: 18/9/98
REVISED: 29/9/98
<PAGE>   1678
ICONET INTEGRATION TOP LEVEL BASELINE PLAN                    DOC: WG7-80325-A-8
STATEMENT OF WORK

(II RELATED) REGISTER OF TECHNICAL RISKS TO ICO SL1

              High 3    >50% = 3     15-50% = 2     <15% = 1         WHERE

              Med 2                                                  TESTED

              Low 1

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------------------
RISK              PERFORMANCE                      RISK                    IMPACTED   IMPACT  LIKELI-  SEVERITY  SP.  UT   BOSS
 ID               REQUIREMENT                                               FUNCT./   LEVEL   HOOD
                                                                            SUBSYS
-------------------------------------------------------------------------------------------------------------------------------
<S>          <C>                     <C>                                   <C>        <C>     <C>      <C>       <C>  <C>  <C>

-------------------------------------------------------------------------------------------------------------------------------
RF.0         RF SIGNAL (LEVEL,
             FREQ, SYNCH AND
             TIMING)
-------------------------------------------------------------------------------------------------------------------------------
RF.2                                 Freq/Bandwidth occupancy problems                  2      2       Moderate
                                     (alignment, re-use, co-
                                     channel I etc)
-------------------------------------------------------------------------------------------------------------------------------
RF.3                                 RF Interference, (spurs, multipath,                2      2       Moderate
                                     fading problems) etc

-------------------------------------------------------------------------------------------------------------------------------
RF.4                                 AFC system and Doppler correction/                 2      3       High
                                     tracking problems
-------------------------------------------------------------------------------------------------------------------------------
                                     Power Control                                      2      3       High
-------------------------------------------------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------------------------------------------------
BCCH.1.1     SATELLITE ACQUISITION   BCCH Power Level Incorrect            Traffic &    2      1       V Minor
             & REGISTRATION                                                 Billing
-------------------------------------------------------------------------------------------------------------------------------
BCCH.1.3                             UT Receiver Acquisition Slow             UT        3      2       High

-------------------------------------------------------------------------------------------------------------------------------
BCCH.1.4                             Synchronisation Errors (BCCH and      Traffic &    3      2       High
                                     Signal Complex Timing)                 Billing

-------------------------------------------------------------------------------------------------------------------------------
BCCH.1.5                             BCCH Frequency List Incorrect         Traffic &    3      2       High
                                                                            Billing

-------------------------------------------------------------------------------------------------------------------------------
BCCH.1.6                             UT Receiver Acquisition Timeout       Traffic &    3      2       High
                                     (BCCH Frequency Known/Unknown)         Billing

-------------------------------------------------------------------------------------------------------------------------------
POSITION.1                           UT position computation inaccurate    Traffic &    3      2       High
                                                                            Billing
-------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------
RISK            SUB   OTH.  IOT  IGF  G0   G2/G3  G156  G4   POFT  MITIGATION TEST IDS IN G1   NEC PLAN
 ID             SYS

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

-------------------------------------------------------------------------------------------------------
RF.0

-------------------------------------------------------------------------------------------------------
RF.2                                                               G1.1.3 RF Signal
                                                                   (Level,Freq.,Burst
                                                                   Timing)
-------------------------------------------------------------------------------------------------------
RF.3                              Y                                G1.1.3 RF Signal
                                                                   (Level,Freq.,Burst
                                                                   Timing)
-------------------------------------------------------------------------------------------------------
RF.4

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

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

-------------------------------------------------------------------------------------------------------
BCCH.1.1                                                           G1.1.0: Calibration of SBS
                                                                   and UT Transmit Carriers
-------------------------------------------------------------------------------------------------------
BCCH.1.3                                                           G1.1.1: Satellite
                                                                   Acquisition
                                                                   and Registration (BCCH
                                                                   Unknown)
-------------------------------------------------------------------------------------------------------
BCCH.1.4                                                           G1.1.1:
                                                                   Sat.Acquisition&Registration
                                                                   (BCCH Unknown)
-------------------------------------------------------------------------------------------------------
BCCH.1.5                                                           G1.1.1:
                                                                   Sat.Acquisition&Registration
                                                                   (BCCH Unknown)
-------------------------------------------------------------------------------------------------------
BCCH.1.6                                                           G1.1.1/2:
                                                                   Sat.Acquisition&Registration
                                                                   (BCCH Known/Unknown)
-------------------------------------------------------------------------------------------------------
POSITION.1                                                         G1.1.3 RF Signal
                                                                   (Level,Freq.,Burst Timing)
-------------------------------------------------------------------------------------------------------
</TABLE>

                                                                   PAGE 14 OF 22

CREATED: 18/9/98
REVISED: 29/9/98
<PAGE>   1679
ICONET INTEGRATION TOP LEVEL BASELINE PLAN                     DOC: WG7-80325-A8
STATEMENT OF WORK

                                 ATTACHMENT NO 3

                               2ND NEC DELIVERABLE
                     SAMPLE TEMPLATE FOR A PREFERRED METHOD

                                                                   PAGE 15 OF 22

CREATED: 18/9/98
REVISED: 29/9/98
<PAGE>   1680
ICONET INTEGRATION TOP LEVEL BASELINE PLAN                     DOC: WG7-80325-A8
STATEMENT OF WORK

METHOD PLAN

METHOD ID:                        PCM-52

PRIORITY:                         1 (Critical)

PREVIOUS REFERENCE TEST IDS:      G1.1.1.1 (G1.1.0)

              RISKS TO BE MITIGATED

<TABLE>
<CAPTION>
RISK ID                  ASSUMPTION
--------------------------------------------------------------------------------
<S>                      <C>
X[1].Y[1].Z[1]           RFT can track satellites
--------------------------------------------------------------------------------
X[2].Y[2].Z[2]           SAN can compensate for residual Doppler
--------------------------------------------------------------------------------
 .......                  .......
--------------------------------------------------------------------------------
 .......                  .......
--------------------------------------------------------------------------------
X[n].Y[n].Z[n]           Power level of control channels at the UT interface is
                         correct
--------------------------------------------------------------------------------
</TABLE>

              OBJECTIVE

This group of Methods will verify the signalling and the continuity of the link
through a satellite as it passes overhead. It verifies that the SAN is able to
acquire the satellite when it comes over the horizon, track the satellite,
establish control channels in the appropriate beams and maintain those channels
while the satellite completes its pass. The SAN must be able to put multiple
channels up in different beams of the satellite at the same time.

              DEPENDENCIES

This group of methods is dependent on the following equipment with associated
software releases being installed and operational to begin testing:

<TABLE>
<CAPTION>
SUBSYSTEM     RESPONSIBILITY   SOFTWARE     HARDWARE           RESTRICTIONS
--------------------------------------------------------------------------------
<S>           <C>              <C>          <C>                <C>
IGF System    NEC PO           n/a
--------------------------------------------------------------------------------
  MSSC        ETL              no           no
--------------------------------------------------------------------------------
  TNM         NEC/A            no           no
--------------------------------------------------------------------------------
  SBS         HNS              R1.0         yes                AI v4 + CNs...
--------------------------------------------------------------------------------
  HPN         COMSAT           no           no
--------------------------------------------------------------------------------
  RFT         NEC/J            n/a          yes
--------------------------------------------------------------------------------
</TABLE>

                                                                   PAGE 16 OF 22

CREATED: 18/9/98
REVISED: 29/9/98
<PAGE>   1681
ICONET INTEGRATION TOP LEVEL BASELINE PLAN                     DOC: WG7-80325-A8
STATEMENT OF WORK

<TABLE>
<CAPTION>
SUBSYSTEM     RESPONSIBILITY   SOFTWARE     HARDWARE           RESTRICTIONS
--------------------------------------------------------------------------------
<S>           <C>              <C>          <C>                <C>
  CDS         HNS              R1           yes
--------------------------------------------------------------------------------
  IDS         HNS              n/a          yes
--------------------------------------------------------------------------------
  DCN         NEC/J            no           Intra-SAN
--------------------------------------------------------------------------------
  SAN-NMS     NEC/J            no           no
--------------------------------------------------------------------------------
  Link-NMS    NEC/J            no           no
--------------------------------------------------------------------------------
  SAN-SRMS    NEC/J            R2.0         yes
--------------------------------------------------------------------------------
  SRMC        NEC/J            R2.0         yes                ICD v...
--------------------------------------------------------------------------------
  Link-SRH    NEC/J            R2.0         no                 May use simulator
--------------------------------------------------------------------------------
C-PCS         HSC              TBD          at SCC             ICD v...
--------------------------------------------------------------------------------
Satellite     HSC              n/a          Minimum of one
                                            satellite in
                                            either plane
--------------------------------------------------------------------------------
FTUT          Wavecom          TBD          one                AI v4 + CNs...
--------------------------------------------------------------------------------
</TABLE>

And the following interfaces being operational:

<TABLE>
<CAPTION>
INTERFACE                    RESPONSIBILITY   REQUIREMENT       RESTRICTIONS
--------------------------------------------------------------------------------
<S>                          <C>              <C>               <C>
RFT license                  ICO              SAN licensed
--------------------------------------------------------------------------------
FTUT license                 ICO              License for all
                                              Australia
--------------------------------------------------------------------------------
PSTN connection              ICO              no
--------------------------------------------------------------------------------
SAN/TT&C                     NEC/J            yes
--------------------------------------------------------------------------------
Link-SRH/SCC                 NEC/J            yes               may use simulator
--------------------------------------------------------------------------------
Payload Command Interface    NEC/J            yes
--------------------------------------------------------------------------------
MSSC/BDC                     ETL              no
--------------------------------------------------------------------------------
Link-NMS/BDC                 NEC/J            no
--------------------------------------------------------------------------------
</TABLE>

CREATED: 18/9/98
REVISED: 29/9/98

                                                                   PAGE 17 OF 22

<PAGE>   1682
ICONET INTEGRATION TOP LEVEL BASELINE PLAN                     DOC: WG7-80325-A8
STATEMENT OF WORK

              DESCRIPTION OF METHOD

Expecting the UT to receive a BCCH sent from the SAN over the satellite at the
correct frequency, time and power without error the first time is risky. To
reduce the risk this set of physical layer tests verify Layer 1 aspects of the
SAN and UT communication links over the Satellite. This group of methods
calibrate and correct the timing, frequency and power of the SAN and the UT
transmissions. They are necessary to insure that subsequent methods can be
performed between the SAN and UT.

This group of methods does not duplicate IGF testing because testing will be
performed over the satellite with the FTUT. The group of methods will calibrate
and correct the timing, frequency and power of the BCCH, RACH, AGCH and the PCH
channels. Specifically the synchronisation and BCCH burst tests verify the
ability of the SBS to transmit Sync and BCCH carriers to the satellite on the
proper frequency. The antenna control system of the RFT must keep the SAN
antenna pointed towards the satellite, while the PCS will be configured to
support a simple frequency plan. The data necessary to configure the satellite
will be developed during the planning stage and remain constant for the duration
of the testing. Real Ephemeris data will be supplied to the SRMS simulator and
antenna control system to track the satellite. Only the presence of the carrier
at the right frequency and the right signal strength will be measured in the
beams. The SAN's ability to correct the frequency based on CUIN residual Doppler
corrections will be verified.

              METHOD CONFIGURATION

The figure below shows the configuration needed for this group of methods. The
group of methods does not require that the TMN and the MSSC be fully integrated
with the SBS. Further, this group of methods will be conducted with release R1.0
of the SBS software. This campaign can begin before the IGF Phase 2-2 tests are
completed. Several methods calibrating the SAN transmit carriers can be
performed without the FTUT.

CREATED: 18/9/98
REVISED: 29/9/98

                                                                   PAGE 18 OF 22
<PAGE>   1683
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STATEMENT OF WORK

                                  [FLOWCHART]

              LOCATION

Preferred SAN location is the Brisbane SAN for regulatory reasons (only the
Australian and New Zealand administrations are concerned).

              POTENTIAL CONFLICTS

Execution of these methods must not disrupt Phase 2-2 IGF testing taking place
at the Brisbane SAN. At the scheduled time, most IGF testing will be
concentrated at the System Integration Test facility at NEC/A's Mulgrave site so
there will be little, if any, disruption to the II sub-campaigns.

              SCHEDULE

This group of methods should start when the dependencies above are met. See TLBP
schedule for the currently predicted window.

Testing can begin with only one satellite present but the available test time
will be short. This test group's duration and cost could be reduced if two or
more satellites are available during its execution.

                                                                   PAGE 19 OF 22

CREATED: 18/9/98
REVISED: 29/9/98
<PAGE>   1684
ICONET INTEGRATION TOP LEVEL BASELINE PLAN                     DOC: WG7-80325-A8
STATEMENT OF WORK

ROM ESTIMATION OF RESOURCE REQUIREMENTS

In order to complete the execution of this group of methods the following
resources are expected to be required:

<TABLE>
<CAPTION>
--------------------------------------------------------
 RESOURCE          APPROXIMATE NUMBER        APPROXIMATE
  SOURCE               OF PEOPLE              DURATION
--------------------------------------------------------
<S>                <C>                       <C>
NEC team                  TBD                    TBD
--------------------------------------------------------
ICO                       TBD                    TBD
--------------------------------------------------------
PUT supplier              TBD                    TBD
--------------------------------------------------------
SAN Operator              TBD                    TBD
--------------------------------------------------------
Other?                    TBD?                   TBD?
--------------------------------------------------------
</TABLE>

Additional resources will be required for the planning and reporting phases of
the campaign. Economies can be achieved by combining this group of methods with
other methods.

                                                                   PAGE 20 OF 22

CREATED: 18/9/98
REVISED: 29/9/98
<PAGE>   1685
ICONET INTEGRATION TOP LEVEL BASELINE PLAN                     DOC: WG7-80325-A8
STATEMENT OF WORK

                                 ATTACHMENT NO 4

                               3RD NEC DELIVERABLE
                   Listing of Estimated Man-Months and costing

CREATED: 18/9/98                                                   PAGE 21 OF 22

REVISED: 29/9/98
<PAGE>   1686
ICONET INTEGRATION TOP LEVEL BASELINE PLAN                     DOC: WG7-80325-A8
STATEMENT OF WORK

          FORMAT & CONTENT of TEMPLATE STILL TO BE DISCUSSED AND AGREED

CREATED: 18/9/98                                                   PAGE 22 OF 22

REVISED: 29/9/98

<PAGE>   1687
                    CHANGE ORDER NO: 13    ATTACHMENT 3

ICONET Integration Top Level Baseline Plan Schedule
<PAGE>   1688
<TABLE>
<CAPTION>

   ID     TASK NAME                                 DURATION    START       FINISH         O   N   D   J   F    M  A

  <S>     <C>                                       <C>         <C>         <C>            <C> <C> <C> <C> <C> <C> <C>
____________________________________________________________________________________________________________________________________
   1      TOP LEVEL BASELINE PLAN SCHEDULE G1/5
          & G6 V2.2 3/12/98                         96d         Mon 10/5/98  Mon 2/15/99          [GRAPHIC]
   2      ICO Issues Letter of Intent                0d         Wed 10/7/98  Wed 10/7/98
   3      NEC Team Mobilization                      4d         Thu 10/1/98  Tue 10/6/98
   4      1st ICO Deliverable (Initial Risk
          Register)                                  0d         Tue 10/6/98  Tue 10/6/98
   5      ICO Issues Formal Change Order to NEC      0d         Mon 11/30/98 Mon 11/30/98
   6      Joint ICO/NEC review of Risk Register      7d         Wed 10/7/98  Thu 10/15/98
   7      1st NEC Deliverable (Agreed Risk register) 0d         Mon 10/19/98 Mon 10/19/98
   8      Develop G1/G5 Procedural Flow Chart        9d         Tue 10/20/98 Fri 10/30/98
   9      G6 ICO/NEC Develop Framework Document      9d         Tue 11/17/98 Fri 11/27/98
  10      G6 NEC ICO Agree Scope/Risks/Priorities/
          Procedural Flowchart                       7d         Mon 11/30/98 Tue 12/8/98
  11      Christmas Break                            6d         Fri 12/25/98 Fri 1/1/99
  12      G6 Prepare Test Methods (Incl Christmas
          Break)                                    25d         Wed 12/9/98  Tue 1/12/99
  13      G6 Joint NEC ICO Selection of Test
          Methods                                    3d         Wed 1/13/99  Fri 1/15/99
  14      G6 NEC Second Deliverable (Listing
          Preferred Test Methods)                    0d         Fri 1/15/99  Fri 1/15/99
  15      G1/5 ICO Prioritised Risk Register         5d         Fri 11/6/98  Thu 11/12/98
  16      G1/5 Preparation of Final Draft of Test
          Methods                                   26d         Mon 11/2/98  Mon 12/17/98
  17      G1/5 Joint NEC ICO Selection of Test
          Methods                                    5d         Tue 12/8/98  Mon 12/14/98
  18      G1/5 NEC Second Deliverable (Listing
          Preferred Campaigns)                       0d         Mon 12/14/98 Mon 12/14/98
  19      G1/5 Costing & Scheduling                  7d         Tue 12/15/98 Wed 12/23/98
  20      G1/5 Local Management Approval of ROM
          Resource Allocations (inc Christmas
          Break)                                    16d         Wed 12/23/98 Wed 1/13/99
  21      G1/5 NEC Third Deliverable (ROM Costs
          & Schedule)                                0d         Wed 1/13/99  Wed 1/13/99
  22      G6 Costing & Scheduling                    5d         Mon 1/18/99  Fri 1/22/99
____________________________________________________________________________________________________________________________________
  </TABLE>

Project: TLBP Schedule Combined G
Date: Wed 2/17/99                                        [LEGEND]
______________________________________________________________________________

                                     Page 1

<PAGE>   1689
<TABLE>
<CAPTION>

   ID     TASK NAME                                 DURATION    START       FINISH         O   N   D   J   F    M  A

  <S>     <C>                                       <C>         <C>         <C>            <C> <C> <C> <C> <C> <C> <C>
____________________________________________________________________________________________________________________________________
  23      G6 Local Management Approval of ROM
          Resource Allocations                       2d         Tue 1/26/99  Wed 1/27/99              [GRAPHIC]
  24      G6 NEC Third Deliverable (ROM Costs
          & Schedule)                                0d         Tue 1/26/99  Tue 1/26/99
  25      G1/5 ICO Review & Re-prioritise
          Selected Tests                            10d         Tue 1/26/99  Mon 2/8/99
  26      G1/5 ICO Second Deliverable (IIRD)         0d         Mon 2/8/99   Mon 2/8/99
  27      G6 ICO Review & Re-prioritise
          Selected Tests                            10d         Tue 1/26/99  Mon 2/8/99
  28      G6 ICO Second Deliverable (IIRD)           0d         Thu 2/4/99   Thu 2/4/99
  29      G6 Finalise TLBP                           5d         Tue 2/9/99   Mon 2/15/99
  30      G1/5 Finalise TLBP                         5d         Tue 2/9/99   Mon 2/15/99
  31      G1/5 & G6 NEC Fourth Deliverable
          (Completed TLBP)                           0d         Mon 2/15/99  Mon 2/15/99
  32
  33      Draft & Agree G1/5/6 SOW                  94d         Wed 10/7/98  Mon 2/15/99
  34
  35      Original Scheduled Completion of
          TLBP G1/5 & G6                             1d         Mon 12/21/98 Mon 12/21/98
____________________________________________________________________________________________________________________________________
</TABLE>

Project: TLBP Schedule Combined G
Date: Wed 2/17/99                                [LEGEND]

                                     Page 2

<PAGE>   1690
                                                               Exhibit 4.6.30.12

[ICO LOGO]           IGF SUPPLY AGREEMENT                    CHANGE ORDER NO: 14
                     CONTRACT NO ICO097 - 1016/GW           DATE:  22 MARCH 1999

In accordance with clause 9 of the Supply Agreement dated March 3rd 1997 between
NEC Corporation and ICO Global Communications Holdings BV, the Agreement is
hereby amended as follows:

Amended Clauses      See Attachment No. 1

Amended Schedules    None

Amended Annexes      None

Amended Price        See Attachment No. 1

Other Amendments     See Attachment No. 1

Reference            Correspondence ICO Change Request No.18-dated 28 May 1998;
                     SA1410/WG8/19990121/PB; IUKC-1004 dated 15 February 1999

This Change Order No. 14, effective from 1 March 1999, will now form part of the
Supply Agreement dated March 3rd 1997 between the parties and shall be governed
by, and construed in accordance with, the laws of England.

Except for the changes set out above, this Change Order No. 14 makes no further
amendments or modifications to the Agreement.

Signed for and on behalf of               Signed for and on behalf of
ICO GLOBAL COMMUNICATIONS HOLDINGS BV     NEC CORPORATION

/s/ G. S. Titzer
-------------------------------------     --------------------------------------
Supervising Officer                       Contractor's Authorised Representative

24 March 1999
-----------------------------             ---------------------------
Date                                      Date
<PAGE>   1691
                                                              CHANGE ORDER NO.14
                                                 TO THE SUPPLY AGREEMENT BETWEEN
                                                             NEC CORPORATION AND
                                           ICO GLOBAL COMMUNICATIONS HOLDINGS BV
                                                                    ATTACHMENT 1

By this Change Order No.14, the Supply Agreement dated March 3, 1997, between
NEC Corporation ("the Contractor") and ICO Global Communications Holdings BV
("ICO") (hereinafter referred to as the "Supply Agreement") is amended as set
out below:

BACKGROUND TO CHANGE ORDER NO. 14

A)       Under the terms and conditions set forth in the Supply Agreement, ICO
         agreed to purchase from the Contractor certain equipment and services
         as are specified therein, and the Contractor and the other members of
         the NEC Team have agreed to provide the said equipment and services;

B)       ICO has agreed that the Contractor shall carry out Works and produce
         Deliverables in accordance with the terms of the Statement of Work for
         the Phase 2 of the Air Interface Protocol Validation as set forth
         within Attachment 2 to this Change Order.

C)       ICO and the Contractor have agreed to amend the Supply Agreement to
         govern the terms of the Works and the Deliverables specified in
         Attachment 2.

         In consideration of the foregoing and for other good and valuable
         consideration, acknowledged by the parties to have been given, it is
         agreed:-

1.       DEFINITIONS

         For the purposes of this Change Order the following words used herein
         or in the Supply Agreement shall have the following meanings:-

         "Statement of Work" and "Works" shall mean Attachment 2 and the works
         described therein.

         "Deliverables" shall mean those deliverables identified within Section
         6.5 of Attachment 2.

         "Schedule" shall mean that schedule for the performance of tasks under
         this Change Order as set out within Section 6.2 of Attachment 2.

         "Deliverables Schedule" shall mean that schedule for the provision of
         Deliverables set out within Section 6.5.2 of Attachment 2.

                                      -1-
<PAGE>   1692
         For the avoidance of doubt, references in the Supply Agreement to Top
         Level Milestone Schedule and Master Level Schedule shall not apply to
         this Change Order.

2.       WORKS AND DELIVERABLES

         ICO hereby agrees to purchase, and the Contractor agrees to supply, the
         Deliverables and to carry out the Works set out in Attachment 2 in
         accordance with the time scales set out in the Schedule and the
         Deliverables Schedule at the price set forth in Clause 4 of this Change
         Order.

3.       APPLICATION OF SUPPLY AGREEMENT TERMS AND CONDITIONS

3.1      The following clauses of the Supply Agreement shall not apply to this
         Change Order:

         4.1(a), 4.1(c) to (e) inclusive, 4.1(h) and 4.1(i), 4.1(n), 4.2 to 4.7,
         4.10, 5 to 8 inclusive, 12.2 to 12.4 inclusive, 13.2 , 14, 15.1 to 15.4
         inclusive, 16.1 to 16.3 inclusive, 16.6 to 16.18 inclusive, 18, 19, 23,
         25 to 28 inclusive, 29.2, 29.4, 29.5, 31 to 38 inclusive, 40.1 to 40.11
         inclusive, 40.12 (c), 40.13, 40.15, 40.16, 44 to 48 inclusive, 52.2 to
         52.4 inclusive, 54, 56, Schedules 6 to 12 inclusive.

3.2      The following clauses of the Supply Agreement are amended for the
         purpose only of this Change Order and not further or otherwise.

         Clause 4.1 (b) is amended to read:

         "it will design, develop, create, deliver and provide (as the case may
         be) all of the Deliverables so as to fulfil the objectives and the
         requirements of the Statement of Work"

         Clause 4.1 (l) is amended to read:

         "it will provide and will ensure that its Sub-Contractors provide, a
         sufficient number of suitably skilled and appropriately experienced
         personnel to meet the objectives of this Change Order and to ensure
         that the Works and delivery of the Deliverables are completed in
         accordance with the Schedule and Deliverables Schedule;"

         Clause 12.1 is amended to read:

         "Without prejudice to ICO's other obligations under this Change Order,
         ICO shall provide the Contractor with such information, services and
         equipment as shall be specified in the Statement of Work. To the extent
         that ICO's failure in any material respect to comply with its
         obligations under this clause 12.1 shall adversely and directly affect
         the ability of the Contractor to comply with the Schedule and/or
         Deliverables Schedule, then to the extent the Contractor can
         demonstrate the same to be required, the Schedule and/or Deliverables
         Schedule shall be adjusted in an equitable manner and the Contractor
         may

                                      -2-
<PAGE>   1693
         recover from ICO all costs reasonably incurred as a direct result of
         such adjustment".

         Clause 22.1 is amended to read:

         "Subject to any applicable legal restrictions in effect in the country
         of manufacture, ICO has the right to inspect and verify the progress of
         all elements of the Works at all places and times, prior to to the date
         of delivery to ICO of the final Deliverable due under this Change
         Order, as specified in Section 6.5.2 of Attachment 2, and for such
         purposes shall be permitted access to the premises of the Contractor or
         any Sub-Contractor (excluding any Sub-Contractor who shall not have
         been required to enter into a direct undertaking with ICO pursuant to
         clause 11). ICO will give 14 days notice of its intended inspections to
         the Contractor. Such inspections shall be performed in a manner that
         will not unduly delay the Works. Any such inspections and verifications
         as are required shall be authorised by the Supervising Officer."

         Clause 22.5 is amended to read:

         Any inspection and/or test and/or examination made or attended by ICO
         Staff under this clause shall not relieve the Contractor of its
         responsibility to conform to the requirements of this Change Order.

         Clause 40.12, sub-paragraphs (a) and (b), are amended to read:

         "In the event of defects or faults in any content of the documentation,
         which are identified within a period of 3 months of either ICO's
         written acceptance of the final Deliverable due under this Change Order
         or, otherwise, following the expiry of 28 days from the date of
         delivery of the final Deliverable in accordance with clause 5 hereof,
         the Contractor will:

         (a)  unless otherwise agreed by ICO, correct and re-issue the affected
              documentation within one month of the Contractor first becoming
              aware of the same in the same formats, quantities and to the same
              places of delivery as the provision of the original documentation;

         (b)  make all necessary rectifications to any part of the ICONET Ground
              Facilities which has been affected adversely as a result of a
              defect or fault in the contents of the documentation.

         Clause 40.14 is amended to read:

         "The rights and remedies of ICO under this Clause 40 are in addition
         to, and do not limit, any other rights and remedies ICO may have. In
         particular, ICO's rights under this Change Order arising out of fraud
         or such gross mistakes as amount to fraud are not limited in point of
         time or by this clause".

         Clause 51.2 shall be amended to read:

                                      -3-
<PAGE>   1694
         If and insofar as any breach by the Contractor of this Change Order
         (including the inadequate performance or the non-performance of any of
         its obligations hereunder) shall result in any losses, damages, costs
         or liabilities for ICO (other than any physical damage or loss of
         tangible property as described in clause 51.1) the Contractor shall,
         subject always to clause 51.3, indemnify ICO against any liabilities
         and costs of ICO provided that the total liabilities of the Contractor
         to ICO resulting therefrom (whether under this indemnity or for breach
         of this Change Order or for negligence or of whatsoever nature) shall
         not exceed the value of this Change Order specified in clause 4 below.
         Any liability of the Contractor to ICO under this amended clause 51.2
         shall not, in any event, be treated as forming part of the aggregate
         total liability of the Contractor under the Supply Agreement.

4.       PRICE AND PAYMENT

4.1      ICO will purchase the Deliverables hereunder for the firm fixed price
         of   *   (Five Hundred and Thirty Four Thousand US Dollars).
         Payment will become due by ICO on the following basis:-

         (i)      *   of the price to be invoiced by the Contractor to ICO ten
               days after the effective date of this Change Order;

         (ii)     *   of the price to be invoiced by the Contractor to ICO on
               the date of delivery to ICO of the final Deliverable due under
               this Change Order specified as "ICO Air Interface Protocol
               Validation Final Report Revision 3" in Section 6.5.2 of
               Attachment 2;

         (iii)    *   of the price to be invoiced by the Contractor to ICO on
               ICO's written acceptance of the final Deliverable due under this
               Change Order or, otherwise, following the expiry of 28 days from
               the date of delivery of the final Deliverable in accordance with
               clause 5 hereof.

4.2      The Contractor shall invoice ICO for such payments on the due dates and
         ICO shall pay such valid invoices submitted in the form specified in
         Schedule 4 of the Supply Agreement within 30 days of receipt.

4.3      The parties agree that clause 15.1 and Tables 1 and 24 of Schedule 9
         (Pricing Schedule) of the Supply Agreement shall be amended by means of
         a future Change Order for the purpose of separately recording the
         values of all Change Orders agreed, inter alia, in accordance with
         clause 14 (hereinafter referred to as "Non clause 15.1 Change Orders").
         The parties acknowledge and agree that the value of each such Non
         clause 15.1 Change Order shall not have the effect of adjusting the
         Price, as defined within clause 15.1, and, specifically, that the value
         of each such Change Order shall not be considered as forming any part
         of the Price that would, otherwise, be applied for the purposes of
         clauses 18 and 51 of the Supply Agreement. Furthermore, the parties
         agree that this Change Order shall be categorised as a Non clause 15.1
         Change Order.

         * Confidential Treatment Requested and the Redacted Material has been
           separately filed with the Commission.

                                      -4-
<PAGE>   1695
5.       ACCEPTANCE

         ICO shall have 28 days from the receipt of any Deliverable hereunder in
         which to accept such Deliverable. If ICO does not accept any
         Deliverable it will indicate its non acceptance within 28 days of
         receipt and provide the Contractor with written reasons for its non
         acceptance, which shall be on the basis that in ICO's reasonable view,
         the Deliverable fails in a material way to meet the requirements set
         out in Attachment 2. Should ICO fail to either accept or indicate its
         non acceptance of any Deliverable within 28 days of its delivery, the
         Deliverable will be deemed to be accepted by ICO.

6.       DELIVERY

         All Deliverables shall be provided in accordance with Annex 6 of the
         Supply Agreement.

         All deliverables shall be delivered to:-
         ICO Global Communications Holdings BV
         c/o ICO Services Limited
         1 Queen Caroline Street
         London W6 9BN
         England
         For the attention of: George Wiginton - Contract Manager

7.       Nothing in this Change Order shall affect, in any way, the Contractor's
         obligations and liabilities in relation to the performance of the Works
         pursuant to Annex 11 of Schedule 14 to the Supply Agreement.

8.       FINANCING

         The parties agree that neither the Contractor nor any member of the NEC
         Team has any obligation to provide vendor financing to ICO pursuant to
         this Change Order.

9.       RATIFICATION OF ICO SUPPLY AGREEMENT

         Except as provided for herein, the terms and conditions of the Supply
         Agreement shall continue in full force and effect.

9.1      This Change Order sets forth the entire agreement between the parties
         as to the subject matter hereof and supersedes all prior discussions
         between them, and neither of the parties shall be bound by any
         conditions, definitions, warranties, understandings, or representations
         with respect to such subject matter other than as expressly provided
         herein.

9.2      In the event of a conflict between the terms of this Change Order and
         the terms of the Supply Agreement, the terms of this Change Order shall
         prevail.

                                      -5-
<PAGE>   1696
                   CHANGE ORDER NO:14            ATTACHMENT 2

                                STATEMENT OF WORK
<PAGE>   1697
1.   OBJECTIVES AND SCOPE

1.1      OBJECTIVES

The objectives of the AIPV are to:

1.   Validate the correctness and completeness of the Air-Interface signalling
     protocol specifications, such that the Air-Interface can deliver the
     required user services.

2.   Validate the robustness of the Air-Interface signalling protocol
     specifications against channel error conditions and improper operational
     conditions listed in agreed SDL Test Plan.

3.   Validate the integrity of the Air-Interface signalling protocol
     specifications, such that the specification shall be robust against race
     conditions, unhandling signals, dead locks, live locks, out-of-range
     variables, etc.

1.2      SCOPE

The scope of the AIPV work is listed as the following points:

1.       The ICO Air-Interface signalling protocol is defined in the following
         ICO Air Interface Specifications released on 27th November 1998:

         a)   ICO 03.22.A1

         b)   ICO 103.40.A1

         c)   ICO 05.xx series

         d)   ICO 04.06.A1

         e)   ICO 04.07.D1

         f)   ICO 04.08.A1

         g)   ICO 04.08.A2

         h)   ICO 04.08.A3 (out of scope)

         i)   ICO 04.08.A4 (CC Part - out of scope)

         j)   ICO 104.08.A1 (HPN-RR)

                                       1
<PAGE>   1698
         Additionally, GSM specifications, other than those superseded by the
         above documents, may also apply.

2.       ITU-T Z.100 (1992 or later) Specification and Description Language
         (SDL) shall be used to formally specify the ICO Air-Interface
         signalling protocol

3.       ITU-T Z.120 (1992 or later) Message Sequence Chart (MSC) is preferred
         to be used to define validation references.

4.       The latest version of SDT from TeleLOGIC shall be used as the main
         software tool for editing, simulating and validating the ICO
         Air-Interface signalling Protocol.

5.       The SDL implementation of Layer 2, the RR and MM sub-layers of Layer 3
         as well as HPN (layer 3-RR and HP-TL) Air-Interface protocols shall be
         updated to conform to the ICO Air Interface Signalling Protocol
         Specifications released on 27th November 1998. The CC sublayer will be
         outside the scope of this task.

6.       SDL implementations shall be done on the same layering architecture as
         the protocol specifications.

7.       SDL implementation shall be done for both the network as well as the
         mobile entities.

8.       Areas that are not suitable for SDL implementations (e.g. physical
         layer, user interface/man machine commands) will not be implemented in
         SDL but if any entity is as part of the test environment, it may be
         implemented as necessary via scripts or other means.

9.       Message encoding/decoding may be implemented using programming
         language(s) other than SDL.

10.      Test environment may be built by using the most convenient method and
         programming language(s) and/or SDL.

11.      SDL specification shall be in modular in order to facilitate phased
         implementation and incremental testing, peer-to-peer validation and
         parallel development. The distinction of network and mobile stacks
         should be clear. As an option, It may be possible to use SDL'92 object
         oriented features to create multiple network and/or mobile stacks for
         the purpose of simulation.

                                       2
<PAGE>   1699
12.      The aim of the validation/simulation is to cover realistic operational
         scenarios, such as simultaneous transactions(1) (e.g. SMS with voice
         call, voice call with in-call Supplementary Services, etc.),
         transaction race condition (e.g. mobile originated call and mobile
         terminated call happening at the same time), RACH contentions, channel
         error, channel delay, channel blockage, etc.

13.      Initially coverage analysis shall be done by using SDT tool for all
         test cases identified in Section 5.3.1 of Annex 11. The objective is to
         do coverage analysis by using SDT tool for each test case identified in
         agreed SDL Test Plan. The goal is to have minimum number of test case
         but maximum test coverage.

The scope of the validation task will be to take the specification developed by
the ICO Air Interface definition team and perform validation on it. Any problems
found by the validation task will be reported to ICO Air-Interface definition
team for correction action. The Contractor shall not modify the Air Interface
Definition. Any changes to the Air Interface definition by the ICO Air Interface
definition team may result in rework by the Contractor, which may include
changes in SDL/MSC and revalidation. Such changes shall be accommodated in
accordance with the procedures set out in Section 7.3 of Annex 11.

-------------------
(1) It is to demonstrated that MM, RR, L2 can support simultaneous transactions
at the CM sub-layer.

                                       3
<PAGE>   1700
2.       TASK ORGANISATION

The AIPV work is broken down into four top-level tasks, described in detail
later:

         - architectural design and partitioning for each signalling layer and
           its components,

         - produce and verify the SDL specification for each layer,

         - validation of the specifications using SDT simulator,

         - provide a final analysis of specification and test coverage.

The two main tasks of producing the SDL specifications and performing the
validation are in practice likely to be interleaved and run in parallel. This
will be the case for several reasons, including the fact that bugs may be found
during validation which require changes and/or amendments to the specification,
and the fact that a phased implementation approach will be requested for the SDL
specification work (see Section 2.1). The specification task will include formal
verification tasks, such as syntax and semantic analysis, consistency checking
etc.

2.1      METHODOLOGIES

Formal specification and verification/validation of the Air Interface needs to
be automated as far as possible to cope with the complexity and scale of the
specification. The real-time nature of the protocols requires automated
simulation to fully exercise all parallel functionality, including timers etc.
The large number of simulations (which becomes increasingly onerous when
considering the repeated running of tests for "what-if" investigations and
regression purposes after each software upgrade) also demands an automated
solution. Finally, automation provides benefits in terms of repeatability and
consistency of tests and reporting across all scenarios, and in eliminating
sources of human error.

                                       4
<PAGE>   1701
The use of the ITU-T Z.100 standard, SDL has gained wide-spread international
acceptance in the specification of telecommunication and other real-time
protocols, as it provides proven, comprehensive and well understood methods and
graphical representations to produce open, flexible, testable and
supportable/maintainable specifications. Furthermore, this language now has
extensive software tool support and design methodologies. Tools provide for
context-sensitive editing and formatting, automated conversions between SDL and
MSC (ITU-T Z.120) diagrams, automated static analysis checking, and performance
of validation simulations (using a single, integrated and consistent definition
of the protocols).

Associated standards that could be used with SDL for the encoding and decoding
formats and rules in the specification are: ISO/IEC8824 (ASN.1; aligned with
X.680-3), and ISO/IEC8825 (Basic Encoding Rules for ASN.1; aligned with X.690).

The work shall be performed in a phased manner to validate "core" functionality
first, before proceeding to filling out the specification and tests for the
remaining protocol functionality. Core functionality in general represents
nominal, "straight-line" (non-error case) transitions through the protocol
states. This approach will be key to risk mitigation and early validation of the
most important aspects of the protocols, and realises the known difficulties in
fully specifying and validating a specification in a formal way. Indeed,
findings from the validation work should be directed to feed back into the
protocol specification and drive some of the changes in the up-issues of the
documents. The further the work proceeds, the greater the confidence and
comprehensives that can be achieved, and it should be the case that the number
of problems found in the protocol definitions will fall off progressively.

                                       5
<PAGE>   1702
Modularity is an essential concept to aid with the phased implementation and
incremental testing, and can be achieved by a concept such as "sub-layering"
i.e. as each protocol layer in turn is worked on, it is defined in such a way
two sub-layers can be defined. One is the peer-to-peer communication sub-layer
which does not contain any element to interface to the lower layer. The other
sub-layer is the transmission sub-layer which can send and receive primitive to
the lower layer, such as establish a channel. In this way, the core function of
a protocol layer can be largely validated without relying on having lower
stacks. This concept is fully illustrated in EXAMPLE I.2-2 OF ITU-T Z.100 --
APPENDIX 1 "SDL METHODOLOGY GUIDELINE".

Full end-to-end validation must of course await availability of the full lower
layers, but partial results can be produced before this. This modularity also
helps in partitioning work and allows progressing of different layers in
parallel, but a prerequisite is a definition of all service interfaces between
layers. Component level testing shall be done before a component is integrated
with other components.

3.       SUPPORT MATERIAL

ICO shall provide the following critical input documents, at the indicated
baseline versions, for commencement of the work:

-    ICO System Definition document - Version 6,

-    ICO Air-Interface Specifications as listed in Section 2.2.

-    SDLs for existing GSM specifications (if available).

Other relevant GSM specifications shall be supplied by ICO to the
Contractor within 14 days of the Contractor's written request.

                                       6
<PAGE>   1703
The signalling protocol specifications will be in a natural-language format
(English), supplemented by informal Message Sequence Charts (MSCs), State
Transition Diagrams. Nominally, these will be based on ICO derivations of GSM
Phase 2 Recommendations in the 04 and 05 series. These reference documents will
define the physical layer, message formats, protocol interactions etc., to
enable detailed specification of the protocols in SDL.

Any significant changes to the work being performed according to this Statement
of Work shall be handled through change control procedures set out in clause 9
of the Supply Agreement. A change request may arise due to bug fix, change of
scope or functional change as a result of new version of Air-Interface
specifications. Section 6.3 gives more details of handling change control.

4.       TASKS

The work is organised into four tasks as follows:

4.1      TASK 1 : ARCHITECTURAL DESIGN AND PARTITIONING

This task produces the architectural design and partitioning for each signalling
layer and its components. The structure of the system shall be as modular and
well organised as possible for ease of readability and maintenance. Hierarchical
decomposition shall be used to mask details whilst providing an obvious path to
proceed with more detailed specification and an easy means to navigate through
the protocol interactions.

The task involves the following aspects:

-    functional and state partitioning of each layer of the network/mobile
     entities into (hierarchical) components. Modularity shall be built into the
     SDL specification to allow peer-to-peer as well as system level validation,

-    definition and specification of interfaces,

-    definition of structures for signal encoding and decoding,

-    modular design allowing component level testing (as well as system level
     testing).

                                       7
<PAGE>   1704
Components shall be arranged to identify the following interactions clearly and
easily:

-    peer-to-peer protocol messages,

-    inter-layer interfaces and primitives,

-    Description of test environment

-    usage of internal management functions to make the SDL executable,

-    ad-hoc entities as the means of component testing.

The methodology used for design shall aim to enhance readability. To achieve
this, there may be means to distinguish and hide implementation details that are
needed for running simulations but which are not part of the protocol
specification to be published. These may include calculation and communication
interface specifics, software for performing the actual message encoding and
decoding, and for the network entity, a form of "test harness" to simulate the
network infrastructure.

The distinction between the mobile and network stacks shall be clear, and it
shall be possible to create multiple mobile entities and/or network entities for
some simulation scenarios.

It shall be possible to analyse, monitor and control a peer-to-peer layer
independently of the others, for purposes of SDL validation, using transparent
or "null" lower layers in the stacks to transparently pass information between
peers. This concept is fully illustrated in EXAMPLE I.2-2 OF ITU-T Z.100 --
APPENDIX 1 "SDL METHODOLOGY GUIDELINE". As there will be dependencies and
interactions of all layers on the layers below, the SDL specification and
validation should nominally be performed from lower layers to higher layers. For
each layer under test then, it is assumed that all layers below are operating
correctly to specification.

                                       8
<PAGE>   1705
The output from this task shall be an ICO Air Interface SDL Architectural Design
Document (ADD), providing the main structure of the SDL processes, groups and
hierarchy in the mobile and network stacks. The document shall specify all
external interfaces for each functional group, including details of peer
messages, service primitives and protocol services required for running of
simulations, and shall be kept up-to-date until the end of the contract.

4.2      TASK 2 : SDL SPECIFICATION

This task is to produce the detailed SDL specification for each layer, taking
the structure defined in the ADD as a starting point in which to fill in the
detailed steps and events. The specification task shall include static
verification testing, such as syntax and semantic analysis, consistency checking
etc. Specifically this task involves:

-    SDL Editing - using SDT to create SDL diagrams for the components
     identified in the previous task.

-    SDL Analysis- using the tool to analyse (execute the syntax and semantic
     checks) the SDL diagrams. After the analysis phase passes, the SDL will be
     ready for simulation and protocol validation.

As previously stated, the ICO signalling protocols are based on GSM. The
deviations from GSM become more and more significant as we descend lower down
the OSI stack, from L3-MM, L3-RR to L2, with the maximum deviation being in the
data-link layer, L2. ICO also introduces a HPN service which has no equivalent
in GSM. Since ICO Air-Interface signalling protocols have their roots in GSM, it
would be advisable for the Contractor to utilise the knowledge on GSM UT, GSM
Switch and GSM BSS it already possesses.

The output from this task shall be a complete SDL specification for each
protocol layer, with all supporting SDL and other software and test-ware
infrastructure to perform simulations.

                                       9
<PAGE>   1706
The SDL and message (being inter-process, inter-layer service primitives or
inter-peer PDU's) encoding/decoding rules shall be available in electronic and
hard-copy form. All definitions and nomenclature to assist in interpreting and
understanding the SDL specifications shall also be made available in the same or
separate document(s).

To be executable for simulation or validation, SDL process management logic
shall also be included.

The Contractor shall provide an ICO Air Interface SDL Detailed Design Document
(DDD), describing the detailed units, procedures, timers etc. used in the
specification. This document is intended to be a developer's guide to assist in
future maintenance of the SDL specifications.

All SDL and other specifications, and all documentation, shall be kept
up-to-date until the end of the contract, incorporating any changes resulting
from the validation task.

4.3      TASK 3 : VALIDATION

This task validates the SDL specifications produced in the previous task. The
primary means to achieve this is by simulation, defining and running test
scenarios involving standalone protocol stacks and blocks, and also interaction
between peers, simulating major protocol exchanges under a selection of lower
layer and link conditions (such as missing or out of sequence messages). This
serves to validate both the SDL specifications and the air interface
specifications from which they are derived.

The three main aims of the validation task are to prove:

                                       10
<PAGE>   1707
1.   The protocol specifications meet the ICO service, user requirements (e.g.
     set-up of voice calls, HPN delivery, etc.), and operational requirements
     (e.g. registration and location update, handovers, diversity set-up and
     operation etc.) in accordance with the agreed SDL Test Plan (STP),

2.   The correctness, completeness, robustness and integrity of the protocol
     specifications (e.g. absence of dead-locks, live-locks, unhandled signals,
     race conditions, premature time-outs, mismatched message parameter values,
     data operation errors, inconsistent peer states, inconsistent primitive
     calls, etc.). This will be achieved by developing validation scenarios that
     result in a high transition coverage when executed using the SDT simulator
     tool.

3.   The robustness of the protocol specifications (e.g. missing messages due to
     channel errors, simultaneous transaction race conditions, multi-user
     environment, etc.). This will be achieved using SDT simulator.

In order to systematically validate the protocol, get a good test coverage as
well as to define the test environment, test suites shall be developed. Such
test suites shall consists of SDL's (Test-SDL's) or MSCs (Test-MSCs), or other
programming or script language(s), as required. Test suites shall be developed
and documented as part of the validation task. They shall form a part of the
deliverables at the end of the AIPV project.

Test coverage should at a minimum be sufficient to exercise all significant
nominal and error-case state transitions, in addition to all significant system
and user functional requirements, in order to gain confidence of correct
operation.

Test scenarios shall be documented in an ICO Air Interface SDL Test Plan (STP),
which shall contain the following information for each:

         -    test purpose,

         -    test configuration, environment and method,

                                       11
<PAGE>   1708
         -    test coverage,

         -    detailed test procedure,

         -    expected results and pass/fail criteria.

Although the focus here is validation not conformance testing, the method of
producing the test suite may use ISO Standard IS9646 Part1, Part2 and Part4 as
guidance.

The SDL specifications should clearly define what version of the Air Interface
Specification documents they are compliant with.

A full run of these validation tests shall be formally witnessed by ICO, and a
formal test report (ICO Air Interface SDL Test Report (STR)) shall be produced,
detailing actual vs. expected results, and any rectification/retest actions
taken.

4.3.1    Set of Test Cases

The set of test cases which shall be the basis for the SDL Test Plan would be
same as listed in Annex 11 of the Statement of Work to the Supply Agreement
(refer to section 5.3.1 of Annex 11 of the Statement of Work).

Test scenarios developed for protocol validation as part of the original
contract shall serve as a guideline for development of new test scenarios, i.e.
test scenarios for protocol validation shall be developed under the following
categories : Normal case scenarios, Simultaneous Execution of Higher/Lower
Procedures, Simultaneous Initiation of Peer End Procedures and Lower layer
failures.

4.4      TASK 4 : PROVIDE A FINAL ANALYSIS OF SPECIFICATION AND TEST COVERAGE

This task completes the AIPV work with the following analyses and documents:

-    Extent of SDL specification coverage.

                                       12
<PAGE>   1709
-    Extent of simulation test coverage - this may be available automatically
     from the chosen tool environment.

-    Suggestions for further enhancements to test scenarios to further study
     and/or characterise the air interface protocols.

-    Guide to use SDL specifications and simulation scenarios.

-    Guide to modify/upgrading the SDL specifications and simulation scenarios -
     to facilitate future maintenance as the air interface protocol
     specifications evolve.

-    Final report and executive summary.

                                       13
<PAGE>   1710
5.       DOCUMENTATION

This chapter defines and shows the structure of the documentation to be
developed for the ICO Air Interface Protocol Validation project. The documents
created as part of execution of Annex 11 to the Statement of Work in Schedule 14
of the Supply Agreement will be updated as part of the execution of this Change
Order.

<TABLE>
<S>                     <C>
 AIPV project           ICO Air Interface Protocol Validation AIPV project  Plan (PP)
 Management             ICO Air Interface Protocol Validation Monthly Progress Reports (PP RR)
 ----------------------------------------------------------------------------------------------
 Task 1 -               Not Applicable
 High level arch.
 Design
 ----------------------------------------------------------------------------------------------
 Task 2 -               ICO Air Interface SDL Detailed Design Document (DDD)
 Produce SDLs           ICO Air Interface SDL Detailed Design Document Review Report (DDD RR)

                        ICO Air Interface SDL implementation (these are the actual SDL
                        representation of the ICO Air Interface Specification within the scope
                        of this contract).
 ----------------------------------------------------------------------------------------------
 Task 3 -               ICO Air Interface SDL Test Plan (STP)
 Testing of SDL         ICO Air Interface SDL Test Plan Review Report (STP RR)
 models Validation      ICO Air Interface SDL Test Report (STR),
 of the Protocol        ICO Air Interface Signalling Problem Reports (SPR)
                        ICO Air Interface Change Request (CR)
 ----------------------------------------------------------------------------------------------
 Task 4  -              ICO Air Interface Protocol Validation Final Report and Executive
 Final Analysis         Summary
                        User Guide
                        Maintenance Guide
                        Enhancement suggestions
 ----------------------------------------------------------------------------------------------
</TABLE>

                                       14
<PAGE>   1711
Each of the above documents are described in greater detail below :

5.1      ICO AIR INTERFACE SIGNALLING PROTOCOL VALIDATION PROJECT MANAGEMENT
         PLAN (PP)

The project plan shall be created by the project manager of the Contractor. It
shall be created after the execution of this Agreement. The project plan shall
address at the minimum the following aspects: scope, objective, work breakdown
structure, development phases, define entry and exit criteria for each phase,
review milestones, detailed schedules, roles and responsibilities of key
personnel, project schedule, deliverable artifacts, risk management (including
overlap with air interface specification process).

The project plan will be a live document during the development phase of the
project. It will be owned by the project manager of the Contractor. This
document will be delivered to ICO for approval after contract approval and
periodically whenever there is a major change in the plan.

Review reports for joint reviews of the project plan shall be created by the
Contractor, and made available to the ICO management.

5.2      ICO AIR INTERFACE PROTOCOL VALIDATION MONTHLY PROGRESS REPORTS (PP RR)

During the course of the development, monthly progress review reports shall be
created and submitted to ICO. These reports shall address the progress achieved
during the last month, plans for the next month and any issues that need to be
brought to the notice of ICO management. These reports shall be incorporated
into the reporting procedures set out in section 3 of ANNEX 4.

                                       15
<PAGE>   1712
5.3      ICO AIR INTERFACE SDL ARCHITECTURAL DESIGN DOCUMENT (ADD)

This shall be the output of Task 1. It shall contain the overall architecture
design and decomposition of the SDLs. It shall address the following aspects:-

         a)   Overall architecture of the SDL system. It shall address the scope
              of the SDL implementation vis-a-vis the air interface
              specification, and how the Air interface specifications will be
              adapted to specification in SDLs.

         b)   Identify functional groups in the SDL system. Describe the
              functionality and the hierarchy (in terms of layers, components
              within layers, and the mobile and network stacks).

         c)   The interfaces to other functional groups. This shall include
              inter group messages including peer-to-peer messages, the service
              primitives used if applicable.

         d)   Identify any Test-SDL's that will be required for the purpose of
              protocol validation.

         e)   Identify and justify areas that will not be implemented in the SDL

This document shall serve as the framework for the subsequent task.

                                       16
<PAGE>   1713
5.4      ICO AIR INTERFACE SDL ARCHITECTURAL DESIGN DOCUMENT REVIEW REPORT
         (ADD RR)

Periodically, the architecture design document shall be submitted to ICO for
review. Reviews shall be held as per the project plan schedule. A review report
shall be created by the Contractor every time a review is done. The report shall
cover any comments/suggestions that may arise during the review and the action
to be taken on each item. Review reports will be kept as quality records.

5.5      ICO AIR INTERFACE SDL DETAILED DESIGN DOCUMENT (DDD)

A high level design document will be produced in task 2, along with the creation
of the SDL's. It will cover all the SDL's BLOCKS, PROCESSES and PROCEDURES. It
will cover the following aspects:

         a.   details of how each functional group has been decomposed into
              SDLs,

         b.   a cross reference between SDLs and functional groups,

         c.   description of the SDL's, including timers, signals and channels
              used,

         d.   details of the environment interfaces,

         e.   details of messages and associated parameters,

         f.   details of process management,

         g.   details of how SDL'92 object method is used (if applicable).

5.6      ICO AIR INTERFACE SDL DETAILED DESIGN DOCUMENT REVIEW REPORT (DDD RR)

Periodically, the detailed design document will be submitted to ICO for review.
Reviews will be held as per the project plan schedule. A review report will be
created by the Contractor every time a review is done. The report will cover any
comments/suggestions that may arise during the review and the action to be taken
on each item. Review reports will be kept as quality records.

                                       17
<PAGE>   1714
5.7      ICO AIR INTERFACE SDL IMPLEMENTATION

These will be the actual SDL's produced during the task. SDL's will be processed
to check for syntax and static as well as dynamic semantic errors before being
considered complete. A document on the actual storage structure on the host
computer will be available for ICO to be helpful in duplicating the environment.

5.8      ICO AIR INTERFACE SDL TEST PLAN (STP)

This will one of the deliverable document of task 3. The test plan document will
specify the test methodology to be used, e.g., peer-to-peer and/or system level
simulation. It will cover the following aspects:

         a)   Describe the testing methodology - this will describe an overview
              test methodology and how the intent of the protocol validation
              will be achieved. It will describe as to how the test environment
              and test scenarios, when executed in full and without errors help
              in the validation of the protocol against the set objectives.

         b)   Identify categories of test scenarios - there will be several
              categories of test scenarios, based on several factors like
              peer-to-peer/system level, nominal/error-case transition,
              conditions of the environment/lower layers etc.

         c)   Identify and document test suites, i.e., any SDLs/MSCs created
              only for defining the test environment.

         d)   Test cases - the ultimate unit will be individual test cases. A
              test case will have the following information:

              i)   Test Identification -- Each test case will be uniquely
                   identified in a given version of this document. This
                   identification may change among versions of the STP document,
                   but for a particular version of the STP, the identification
                   will be unique.

              ii)  Purpose of the test -- what this test is to achieve

              iii) Test environment/configuration - conditions of the
                   environment including any test suites, including dependency
                   on other test cases, if any.

                                       18
<PAGE>   1715
              iv)  Test  procedure -- detailed test procedure

              v)   Expected result -- the expected result of the test case,
                   including pass/fail criteria.

5.9      ICO AIR INTERFACE SDL TEST PLAN REVIEW REPORT (STP RR)

[Two weeks] before starting a detailed formal testing cycle, the corresponding
SDL test plan document will be submitted to ICO for review. Reviews will be held
as per the project plan schedule. A review report will be created by the
Contractor every time a review is done. When the review is done, the test plan
shall be reviewed to priorotize the test cases. The report will cover any
comments/suggestions that may arise during the review and the action to be taken
on each item. Review reports will be kept as quality records.

5.10     ICO AIR INTERFACE SDL  TEST REPORT (STR)

This document will be part of the deliverable of task 3. It will contain the
result of the test execution. It will be based on the test cases mentioned in
the STP document. Results of the test execution will be filed in into this
document. It will cover the following aspects:-

         a)   Test case identification - refer to a test case in the STP
              document.

         b)   Actual result - document the actual behavior of the test case.

         c)   Pass/Fail - indicate test verdict

         d)   Comments - Any comments. If the actual result was in deviation of
              the expected result, this section could ask for action items like
              retest/modify test/modify SDL.

         e)   Test result summary/comments - this would contain the overall
              consolidated test results, and comments on the testing iteration.

         f)   Extend of SDL coverage - after the testing iteration, a
              consolidated report will be generated that will indicate the
              extent of test coverage.

There may be several test report document per testing iteration.

                                       19
<PAGE>   1716
5.11     ICO AIR INTERFACE SIGNALLING PROBLEM REPORTS (SPR)

This document will be generated as part of protocol validation. It will convey
any problems discovered during the protocol validation phase that may require
changes in the air interface specification. This document will be forwarded to
ICO for appropriate action and feedback on course of corrective action. Any
defects found due to incorrect implementation of the MSCs taken from the Air
Interface definition team for the purpose of verification against SDLs will also
be reported in this document.

5.12     ICO AIR INTERFACE PROTOCOL VALIDATION FINAL REPORT

This document will mark the end of the validation work. An executive summary,
along with a final report will be generated. This report will carry the analysis
of the protocol validation work. It will cover the following aspects:

         a.   extent of SDL specification

         b.   extent of SDL validation test coverage

         c.   suggestions for areas for further work to study the air interface

In addition, the following will be delivered at the end of the project:-

         a)   SDLs system in electronic form,

         b)   A USER'S GUIDE to be helpful in using the SDLs

         c)   A MAINTENANCE GUIDE to be helpful in future maintenance of the
              SDLs

         d)   Latest updated versions of ADD, HLD, STP, STR documents.

         e)   A proposal for ongoing support of the product.

6.       AIPV PROJECT MANAGEMENT

                                       20
<PAGE>   1717
6.1      AIPV PROJECT MANAGEMENT

The Contractor shall appoint a Project Manager specifically charged with the
responsibility for accomplishing all of the Contractor's tasks as set out in
this Statement of Work, and who shall serve as the primary point of contact with
ICO on all technical matters.

Drafts of all documents shall be supplied in advance to ICO for review and
approval, prior to their formal release.

The following progress review mechanisms shall be supported: monthly progress
report, milestone/review meetings, and problem discussion meetings (whenever
required). Typed agendas and minutes shall be provided by the Contractor. Draft
minutes of meetings shall be provided at most one week after the meetings, for
comment by ICO. Formal copies shall then be available one week after ICO's
comments.

--------------------------------------------------------------------------------
              PROGRESS REPORT                               TYPE
--------------------------------------------------------------------------------
             Monthly Progress                              Report
--------------------------------------------------------------------------------
             Milestone/Review

         - Kick-off Meeting                            Meeting/Report

         - Technical Review Meeting                    Meeting/Report

         - Final Technical Review Meeting              Meeting/Report
--------------------------------------------------------------------------------
          Other Reports & Meeting                  As agreed by both sides
--------------------------------------------------------------------------------

Key principles in progressing the project shall be risk mitigation and early
communication of unforeseen problems and the possible means for resolving them.
ICO shall be kept informed of all major problems that might affect the schedule
or deliverables.

                                       21
<PAGE>   1718
A special requirement for this work is comprehensive feedback to ICO regarding
problems that have been found in the protocol specification as a result of
trying to formally specify it or by performing validation simulations. This
calls for close interaction, directed towards contributing to up-issues of the
protocol specification documents.

6.2      AIPV PROGRAM SCHEDULE

The Contractor shall propose a suitable schedule from the actual date of
execution of this Agreement with an aim to complete the AIPV project within 6
months. The following table shall be used as a guidance/example for update of
AIPV model to conform to Air Interface specifications released on 27th November
1998 as outlined in Item No. 1 of CR 18.

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------
TASK                                                  START DATE          END DATE
------------------------------------------------------------------------------------------
<S>                                                   <C>                 <C>
PROJECT START                                         1 March 1999        15 August 1999
------------------------------------------------------------------------------------------
KICK-OFF MEETING                                      3 March 1999        4 March 1999
------------------------------------------------------------------------------------------
LAYER 2
         Layer 2 Detailed Design                      18 February 1999    30 April 1999
         Layer 2  phase 1                                                 30 May 1999
         Layer 2  phase 2                                                 30 June 1999
------------------------------------------------------------------------------------------
LAYER 3  -RR
         Layer 3 RR Detailed Design                   18 February 1999    30 April 1999
         Layer 3  -RR phase 1                                             30 May 1999
         Layer 3  -RR phase 2                                             30 June 1999
------------------------------------------------------------------------------------------
LAYER 3  -MM
         Layer 3 MM Detailed Design                   18 February 1999    30 April 1999
         Layer 3 - MM phase 1                                             30 May 1999
         Layer 3 - MM phase 2                                             30 June 1999
------------------------------------------------------------------------------------------
HPN
------------------------------------------------------------------------------------------
</TABLE>

                                       22
<PAGE>   1719
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------
TASK                                                  START DATE          END DATE
------------------------------------------------------------------------------------------
<S>                                                   <C>                 <C>
         HPN Detailed Design                          18 February 1999    30 April 1999
         HPN Phase 1                                                      30 May 1999
         HPN Phase 2                                                      30 June 1999
------------------------------------------------------------------------------------------
SYSTEM LEVEL VALIDATION                               1 July 1999         30 July 1999
------------------------------------------------------------------------------------------
FIRST TECHNICAL REVIEW MEETING                        28 April 1999       30 April 1999
------------------------------------------------------------------------------------------
FINAL TECHNICAL REVIEW MEETING                        10 August 1999      13 August 1999
------------------------------------------------------------------------------------------
FINAL REPORT ON ANALYSIS OF PROTOCOL VALIDATION                           15 August 1999
------------------------------------------------------------------------------------------
PROJECT END                                                               15 August 1999
------------------------------------------------------------------------------------------
WARRANTY                                              15 August 1999      15 November 1999
------------------------------------------------------------------------------------------
</TABLE>

At commencement of the AIPV project, an AIPV project management plan including a
detailed program schedule with review milestone shall be submitted to ICO.

6.3      ALLOWANCE FOR CHANGE REQUESTS

For each Change Request the Contractor shall provide ICO the schedule and man
power estimates for approval before exercising such changes.

Major changes will be handled through the change control procedure set out in
clause 9 of the Supply Agreement.

6.4      PLATFORM

ICO prefers Sun Ultra-Sparc or equivalent Workstation running the latest version
of Solaris operating system or equivalent to be the SDL development platform.
The Contractor shall provide good justifications to ICO if a different platform
is chosen.

6.5      DELIVERABLES

The following sections detail the outputs from each activity.

                                       23
<PAGE>   1720
Where applicable, Deliverable documents shall be 5 hard copies and 1 electronic
copy in MS Word (using the Version currently in common use by the parties)
format to be transmitted via secure exchange.

The Contractor and ICO shall agree to the format and media for the delivery of
SDL implementations and testware.

6.5.1    Material for meetings and progress reporting

The following material shall be provided for meetings and progress reporting:

-    Agendas, presentation material and minutes for all meetings,

-    Monthly progress reports.

In cases where problems or discrepancies with the specifications are found which
require modifications or simply notification to ICO, and possibly the agreement
of ICO to make changes or other deviations, these shall be indicated in
Specification Performance Reports (SPRs) and forwarded to ICO for action.

6.5.2    Outputs from Tasks

The following table comprises those documents which shall be delivered to ICO
from the relevant tasks. The Contractor shall inform ICO the delivery date of
each document at the commencement of the AIPV project the documents delivered
under the original contract will be used as baseline for the new work to update
the AIPV model. The revision numbers of the deliverables will be based on the
last revision delivered under the original AIPV contract.

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------
TASK                    DELIVERABLES                                                 DELIVERY DATE
-----------------------------------------------------------------------------------------------------
<S>                     <C>                                                          <C>
AIPV PROJECT START      AIPV Project Management plan                                 1 March 1999
-----------------------------------------------------------------------------------------------------
LAYER 2
-----------------------------------------------------------------------------------------------------
</TABLE>

                                       24
<PAGE>   1721
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------
TASK                    DELIVERABLES                                                 DELIVERY DATE
-----------------------------------------------------------------------------------------------------
<S>                     <C>                                                          <C>
     General            Layer 2 SDL Detailed Design Document (DDD) Rev F             30 April 1999

                        Layer 2 SDL Detailed Design Document (DDD) Rev G             15 July 1999
                        (final)
-----------------------------------------------------------------------------------------------------
     phase 1            Updated version of the following documents for Layer 2-

                        SDL Implementation

                        -    Test Plan Document (Revision G)                         -  15 May 1999

                        -    SDL test report (Revision G)                            -  15 June 1999
-----------------------------------------------------------------------------------------------------
     phase 2            Updated version of the following documents for Layer 2-

                        SDL Implementation,

                        -    Test Plan Document (Revision H)                         -  15 June 1999

                        -    SDL test report (Revision H)                            -  15 July 1999
-----------------------------------------------------------------------------------------------------
LAYER 3  -RR
-----------------------------------------------------------------------------------------------------
     General            Layer 3 RR SDL Detailed Design Document (DDD) Rev F          -  30 April 1999

                        Layer 3 RR SDL Detailed Design Document (DDD) Rev G          -  15 July 1999
                        (final)
-----------------------------------------------------------------------------------------------------
     phase 1            Updated version of the following doc. for Layer 3_RR-
                        SDL

                        Implementation,                                              -  15 May 1999

                        -    Test Plan Document (Revision G)                         -  15 June 1999

                        -    SDL test report (Revision H)
-----------------------------------------------------------------------------------------------------
     phase 2            Updated version of the following doc. for Layer 3_RR-
                        SDL

                        Implementation,                                              -  15 June 1999

                        -    Test Plan Document (Revision H)                         -  15 July 1999

                        -    SDL test report (Revision H)
-----------------------------------------------------------------------------------------------------
</TABLE>

                                       25
<PAGE>   1722
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------
TASK                          DELIVERABLES                                                    DELIVERY DATE
---------------------------------------------------------------------------------------------------------------
<S>                           <C>                                                             <C>
LAYER 3  -MM
---------------------------------------------------------------------------------------------------------------
     General                  Layer 3 MM SDL Detailed Design Document (DDD) Rev F             -   30 April 1999
                              Layer 3 MM SDL Detailed Design Document (DDD) Rev G
                              (final)                                                         -   15 July 99
---------------------------------------------------------------------------------------------------------------
     phase 1                  Updated version of the following doc. for Layer 3-MM-
                              SDL Implementation,

                              -   Test Plan Document (Revision G)                             -   15 May 1999

                              -   SDL test report (Revision G)                                -   15 June 1999
---------------------------------------------------------------------------------------------------------------
     phase 2                  Updated version of the following doc. for Layer 3-MM-
                              SDL Implementation,

                              -   Test Plan Document (Revision H)                             -   15 June 1999

                              -   SDL test report  (Revision H)                               -   15 July 1999
---------------------------------------------------------------------------------------------------------------
HPN
---------------------------------------------------------------------------------------------------------------
     General                  HPN SDL Detailed Design Document (DDD) Rev F                    -   30 April 1999

                              HPN SDL Detailed Design Document (DDD) Rev G (final)            -   15 July 1999
---------------------------------------------------------------------------------------------------------------
     phase 1                  Updated version of the following doc. for HPN- SDL
                              Implementation,
                              -   Test Plan Document (Revision G)                             -   15 May 1999

                              -   SDL test report (Revision G)                                -   15 June 1999
---------------------------------------------------------------------------------------------------------------
     phase 2                  Updated version of the following doc. for HPN- SDL
                              Implementation,

                              -   Test Plan Document (Revision H)                             -   15 June 1999

                              -   SDL test report (Revision H)                                -   15 July 1999
---------------------------------------------------------------------------------------------------------------
SYSTEM LEVEL VALIDATION
---------------------------------------------------------------------------------------------------------------
     General                  Version I of the following doc. for the integrated protocol
                              system -

                              -   Test Plan Document (Revision I)                             -   15 July 1999

                              -   SDL Test report (Revision I)                                -   10 Aug 1999
---------------------------------------------------------------------------------------------------------------
KICK-OFF MEETING              -   Agenda for a meeting                                        -   2 weeks before
TECHNICAL REVIEW MEETINGS                                                                         the meeting

                              -   Report on a meeting                                         -   2 weeks after
                                                                                                  the meeting
---------------------------------------------------------------------------------------------------------------
</TABLE>

                                       26
<PAGE>   1723
<TABLE>
---------------------------------------------------------------------------------------------------------------
<S>                           <C>                                                             <C>
FINAL ANALYSIS OF PROTOCOL    The following will be delivered :
VALIDATION                    -   ICO Air Interface Protocol Validation Final Report          -   15 July'99
                                  Revision 3

                              -   User's Guide Revision 3                                     -   1 July '99

                              -   Maintenance Guide Revision 2                                -   1 July '99

                              -   Complete set of SDL source files Revision 2                 -   15 July '99
---------------------------------------------------------------------------------------------------------------
</TABLE>

6.5.3    FINAL DELIVERY

The following outputs will be produced:

-    Final report and executive summary,

-    Final versions of all documents,

6.6      WARRANTIES

The Contractor shall cover the new SDL's generated or the SDLs modified as
result of the new work performed under this Change Order, under warranty for a
period of 3 months after the completion of the new AIPV work to update the AIPV
model developed under the original contract to conform to Air Interface
specifications released on 27th November 1998.

6.7      CONTRACTOR QA REQUIREMENTS

-    The Contractor (and any sub-contractors where applicable) shall have in
     place a quality assurance system and standards in respect of the AIPV
     commensurate with the Contractor's quality assurance obligations as set out
     in Annex 4 to Schedule 14 of the IGF Supply Agreement

                                       27
<PAGE>   1724
6.8      INTELLECTUAL PROPERTY

The provisions concerning intellectual property rights contained within clause
41 of the IGF Supply Agreement shall apply, without variation, to this Statement
of Work.

                                       28
<PAGE>   1725
                             Change Order 15 and 16

                                     To the
                                Supply Agreement
                                    between
                                NEC Corporation
                                      and
                           ICO Global Communications
                                  Holdings BV

                                                              [ICO LOGO]
<PAGE>   1726

[ICO LOGO]                                                   CHANGE ORDER
                                                             NO:  15
                          IGF SUPPLY AGREEMENT
                          CONTRACT NO ICOO97 - 1016/GW
                                                             Date: 06 April 1999

In accordance with clause 9 of the Supply Agreement dated March 3rd 1997 between
NEC Corporation and ICO Global Communications Holdings BV, the Agreement is
hereby amended as follows:

<TABLE>
<CAPTION>
<S>                                    <C>
Amended Clauses                        None
Amended Schedules                      Schedule 14 - SOW v3.2
Amended Annexes                        None
Amended Price                          None
Other Amendments                       None
Reference Correspondence               ICR32, SA1279, IUKC-907
</TABLE>

This Change Order No 15 will now form part of the Supply Agreement dated March
3rd 1997 between the parties as from the date of this Change Order and shall be
governed by and construed in accordance with the laws of England.

Except for the changes set out above, this Change Order No 15 makes no further
amendments or modifications to the Agreement.

Signed for and on behalf of
ICO GLOBAL COMMUNICATIONS HOLDINGS BV

/s/ G.L. Titzer
Supervising Officer

7 April 1999
Date

Signed for and on behalf of
NEC CORPORATION

/s/ Takao Nishizawa
Contractor's Authorised Representative
Takao Nishizawa
General Manager, Europe Div.

Date
12/April/1999

<PAGE>   1727

                             ADDENDUM 1 TO SOW V3.2

<TABLE>
<CAPTION>
   SECTION NO.                                       REVISED TEXT                                   DESCRIPTION OF PROPOSED SOLUTION
------------------------------------------------------------------------------------------------------------------------------------
<S>                <C>                                                                              <C>
2.10.3.            2.10.3. The computer flooring shall employ 600mm square modular panels with       New requirement for Brasil
                   anti-static floor tiles to support electrostatic discharge (ESD) prevention
                   measures, with the exception of Brasil, where the computer flooring shall
                   employ 625mm square modular panels.
</TABLE>

<TABLE>
<CAPTION>
                                                 DATE OF
   SECTION NO.         CHANGE REQUEST NO.       ACCEPTANCE           OWNER
----------------------------------------------------------------------------
<S>                    <C>                      <C>               <C>
2.10.3.                         ICR32            30/11/1998        AdaS / GC

</TABLE>

ICO SERVICES LTD CONFIDENTIAL       06/04/00                         Page 1 of 1
<PAGE>   1728
[ICO LOGO]                                                   CHANGE ORDER NO: 16

                          IGF SUPPLY AGREEMENT
                          CONTRACT NO ICOO97 - 1016/GW
                                                             DATE: 17  MAY 1999

In accordance with clause 9 of the Supply Agreement dated March 3rd 1997 between
NEC Corporation and ICO Global Communications Holdings BV, the Agreement is
hereby amended as follows:

Amended Clauses                        See Attachment No 2 (Clause 15.1)

Amended Schedules                      See Attachment No. 3 and Attachment No. 4

Amended Annexes                        See Attachment No. 4

Amended Price                          See Attachment No.2 and 3

Other Amendments                       None

Reference Correspondence               IUKC-446 dated 26/2/98,
                                       IUKC-451 27/02/98, IUKC-517 dated
                                       28/4/98, IUKC-620 dated 3/7/98, IUKC-625
                                       dated 7/7/98 and SA0967/WG7/19980710/GW,
                                       dated 10/07/98

This Change Order No.16 will now form part of the Supply Agreement dated March
3rd 1997 between the parties and shall be effective from the date of this Change
Order and shall be governed by and construed in accordance with the laws of
England. Except for the changes set out above, this Change Order No. 16 makes no
further amendments or modifications to the Agreement.

Signed for and on behalf of                         Signed for and on behalf of
ICO GLOBAL COMMUNICATIONS HOLDINGS BV               NEC CORPORATION

/s/ G.L. Titzer                                     /s/ Minoru Usui
Supervising Officer                                 Contractor's Authorised
                                                    Representative
                                                    Minoru Usui
                                                    General Manager, Europe Div.

7 May 1999                                          17th May, 1999
Date                                                Date
<PAGE>   1729
                                              CONTRACT NUMBER: ICOO 97 - 1016/GW
                                                             CHANGE ORDER NO: 16

                                               MAY 1999

                                         CHANGE ORDER NO: 16

                                                TO THE

                                           SUPPLY AGREEMENT

                                               BETWEEN

                                ICO GLOBAL COMMUNICATIONS HOLDINGS BV

                                                 AND

                                           NEC CORPORATION
<PAGE>   1730
                        CHANGE ORDER NO: 16    ATTACHMENT 1
<PAGE>   1731
                                                            IGF SUPPLY AGREEMENT
                                                    CONTRACT NO ICOO97 - 1016/GW
                                              ATTACHMENT 1 TO CHANGE ORDER NO.16

1.   The purpose of ICO Change Request No.4 SAN to SAN Hand-over at Call set-up
     is to modify the IGFR to require the SBS to select the SBS which receives
     the initial message to determine the best 'radio connection' SAN and, if
     necessary, initiate a SAN to SAN hand-over to the radio connection SAN.

2.   As at the date hereof the parties agree to amend Schedule 9, Pricing
     Schedule Appendix-2 III.2 SBS PRICE LIST. The amendments to the SBS PRICE
     LIST identify the cost increments referable to the following elements:-

     NRE      -    *
     Hardware -    *
     TOTAL    -    *

     These increments are set out in detail in Attachment 3 to this Change
     Order. The parties recognise the need to duly reflect these agreed changes
     elsewhere within the Supply Agreement, as set out below:-

     -    Schedule 9 - Pricing Schedule Appendix 2
             -  I        PRICE SUMMARY
             -  II.1     PRICE SUMMARY (NRE)
             -  II.2     PRICE SUMMARY (Hardware)

     -    IGFR V 27.1 Change
             See the Attachment 4 to this Change Order

     -    Statement of Work Annex 1 - Contractor's Deliverables
             See the Attachment 4 to this Change Order

     -    Schedule 11 - Payment Schedule and Payment Schedule Classification
          Summary
              -   I        PAYMENT SCHEDULE CLASSIFICATION SUMMARY
              -   III.2    PAYMENT SCHEDULE CLASSIFICATION SUMMARY
                           -SBS

          * Confidential Treatment Requested and the Redacted Material has been
            separately filed with the Commission.
<PAGE>   1732
4.   The parties undertake to ensure that the required changes specified within
     paragraphs 2 and 3 above, shall be completed within 3 months of the date of
     this Change Order or by such time as the parties shall otherwise agree. The
     parties agree that implementation of these changes shall be effective upon
     agreement without the need for the parties to formalise the incorporation
     of such agreed changes by way of further Change Order.

5.   The Parties agree that neither the Contractor nor any member of the NEC
     Team shall have any obligation to provide vendor financing to ICO pursuant
     to this Change Order.
<PAGE>   1733
               CHANGE ORDER NO:16                      ATTACHMENT 2

                              CLAUSE 15: AMENDMENT
<PAGE>   1734
ATTACHMENT 2
AMENDED CLAUSE

The incremental amount agreed between the parties under this Change Order No.16
is  *  .

Therefore, Clause 15.1 is amended to read as follows:

15.1     ICO shall pay an aggregate total price of US$ 709,648,925 for the
         complete performance by the Contractor of all of its obligations under
         this Agreement together with a further sum of US$ 21,537,600 (in
         respect of freight and insurance as referred to in the Pricing
         Schedule), which amounts shall be subject to adjustment only in respect
         of (i) changes agreed under clause 9 and (ii) the cost of any Option
         items upon exercise of the relevant Option or other items or services
         purchased under clause 46; (such aggregate amount, as so adjusted,
         being referred to as the "Price"). Any Instalment payment made shall
         discharge the relevant portion of the Price and shall not be
         reclaimable by ICO but without prejudice to ICO's right to claim
         damages and/or indemnity in accordance with the provisions of this
         Agreement in the event of any breach by the Contractor.

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   1735
                 CHANGE ORDER NO:16               ATTACHMENT 3

                    SCHEDULE 9 - PRICING SCHEDULE APPENDIX 2

                   * [A TOTAL OF 21 PAGES HAVE BEEN REDACTED]

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   1736
                                        *
<PAGE>   1737
                                        *
<PAGE>   1738
                                        *
<PAGE>   1739
                                        *
<PAGE>   1740
                                        *
<PAGE>   1741
                                        *
<PAGE>   1742
                                        *
<PAGE>   1743
                        CHANGE ORDER NO: 16             ATTACHMENT 4

                                AMENDED SCHEDULES

                      4-1: SCHEDULE 13 - IGFR VERSION 27.1
    4-2: SCHEDULE 14 - STATEMENT OF WORK, ANNEX-1 CONTRACTOR'S DELIVERABLES
<PAGE>   1744
[ICO LOGO]

                                                       ICO GLOBAL COMMUNICATIONS
                                                         1 QUEEN CAROLINE STREET
                                                                     HAMMERSMITH
                                                                   LONDON W6 9BN
                                                                  UNITED KINGDOM

                                                           TEL: +44 181 600 1000
                                                           FAX: +44 181 600 1199

                                                           I-CO SERVICES LIMITED
                                               REGISTERED IN ENGLAND: NO.3045294
                                         REGISTERED OFFICE: 1 QUEEN CAROLINE ST.
                                                                LONDON W6 9BN UK

                IGFR CHANGE: SAN TO SAN HANDOVER AT CALL SET-UP

                             ICO CHANGE REQUEST NO 4

                             COMMERCIALLY SENSITIVE
                             REPRODUCTION PROHIBITED

CONFIDENTIALITY STATEMENT

ALL INFORMATION CONTAINED IN THIS DOCUMENT IS CONFIDENTIAL AND PROPRIETARY TO
ICO GLOBAL COMMUNICATIONS OR ANY OTHER MEMBER OF THE ICO GLOBAL COMMUNICATIONS
GROUP AND INTENDED ONLY FOR THE ADDRESSEE TO WHOM THIS COPY IS ADDRESSED. THE
RECIPIENT SHALL NEITHER COPY, DISTRIBUTE, DISCLOSE OR USE THE INFORMATION
CONTAINED IN IT FOR ANY PURPOSE OTHER THAN FOR WHICH THIS DOCUMENT HAS BEEN MADE
AVAILABLE NOR PERMIT ANYONE ELSE TO DO THE SAME. THE RECIPIENT SHALL BE HELD
FULLY LIABLE FOR ANY WRONGFUL DISCLOSURE OR USE OF ANY OF THE INFORMATION
CONTAINED IN THIS DOCUMENT BY HIM, OR HIS OFFICERS OR EMPLOYEES OR ANYONE ELSE
TO WHOM HE MAKES THE INFORMATION AVAILABLE.

  DOCUMENT NO.:                             EN-IG-ICO-CR-00200

  VERSION:                                  1.5

  DATE:                                     1st February 1999

<TABLE>
<CAPTION>
  PREPARED                         APPROVED                           AUTHORISED
<S>                                <C>                                <C>
  Author: D.R. Mullins

  Signature:
</TABLE>

CONFIDENTIAL AND PROPRIETARY                                         PAGE 1 OF 4
TO ICO GLOBAL COMMUNICATIONS
<PAGE>   1745
[ICO LOGO]

IGFR CHANGE:  SAN TO SAN HANDOVER AT CALL SET-UP              EN-IG-ICO-CR-00200
                                                              Version 1.5
              ICO CHANGE REQUEST NO 4

AMENDMENT RECORD

<TABLE>
<CAPTION>
REVISION          DATE          CN NO.          REASON FOR CHANGE
<S>               <C>           <C>             <C>
1.4                                             Revised from 1.31 following
                                                discussion between Mullins and
                                                Nomoto

1.5               1/Feb/99                      Typographical error correction
                                                on item 6.48.1.1.5a, b and
                                                6.48.1.2.1
</TABLE>

CONFIDENTIAL AND PROPRIETARY                                         PAGE 2 OF 4
TO ICO GLOBAL COMMUNICATIONS
<PAGE>   1746
[ICO LOGO]

IGFR CHANGE: SAN TO SAN HANDOVER AT CALL SET-UP              EN-IG-ICO-CR-00200
                                                             Version 1.5
             ICO CHANGE REQUEST NO 4

IGFR CHANGE: SAN TO SAN HANDOVER AT CALL SET-UP
ICO CHANGE REQUEST NO 4

6.48       SAN COVERAGE AND MANAGEMENT

6.48.1.    SAN COVERAGE ACCESS

6.48.1.1.  GENERAL

           6.48.1.1.1 The SBS shall be capable of sharing a satellite with other
           SANs.

           6.48.1.1.2 The SBS shall not share spot beam control channels (SCH,
           BCCH, RACH, PCH, or AGCH) simultaneously with other SANs.

           6.48.1.1.3 The SBS shall be capable of acquiring and relinquishing
           control of common channels, to sequentially share a spot beam with
           another SAN, following a plan provided by the SRMC.

           6.48.1.1.4 The SBS shall be able to use different traffic channels
           including those using the same frequency simultaneously with other
           SBSs in the same spot beam as configured by the SRMC.

           6.48.1.1.5 The SRMC shall supply the "Accessible SAN List" with
           Connectivity Levels for a part of BCCH contents by referring to an
           ICO provided static table which defines the Terrestrial Network
           Connectivity in terms of Traffic/Signalling/Paging capability.

           6.48.1.1.5a The SRMC shall plan and supply every CCCH control SAN
           (i.e. the SAN providing the control channels in a cell) with BCCH
           frequencies/timeslots and parameters needed for the SBS to derive
           Path Loss Criterion values from UT measurement reports, for every
           radio cell covering every position on the ground from which a UT can
           initiate radio access via radio cells controlled by the CCCH control
           SAN

           6.48.1.1.5b The SRMC shall plan and supply every CCCH control SAN
           with lists of Radio Connection SAN's (i.e. SAN's which have dedicated
           channels in a radio cell) and their corresponding priorities. The
           lists shall be provided for every radio cell covering every position
           on the ground from which a UT can initiate radio access via radio
           cells controlled by the CCCH control SAN. The priorities shall be
           derived from the predicted aggregate SBS loading in terms of channel
           unit usage.

           6.48.1.1.6 The SAN, when allocated traffic channels on a spot beam
           whose control channels are provided by another SAN, need not use
           those channels for the initial assignment, but shall be able to use
           them for subsequent diversity or handover.

6.48.1.2.  CALL SET-UP WHEN MULTIPLE SANS SHARE ACCESS TO A SPOT BEAM FOR
           TCH/DCCH

CONFIDENTIAL AND PROPRIETARY                                         PAGE 3 OF 4
TO ICO GLOBAL COMMUNICATIONS
<PAGE>   1747
[ICO LOGO]

IGFR CHANGE:  SAN TO SAN HANDOVER AT CALL SET-UP              EN-IG-ICO-CR-00200
                                                              Version 1.5
              ICO CHANGE REQUEST NO 4

         6.48.1.2.1 The SAN processing the control channels (CCCH control SAN)
         for the spot beam (radio cell) shall process the call setup as follows:

         1. [This item is no longer used]

         2. The CCCH control SAN shall assume that the UT will indicate its
            currently registered SAN via the Initial Message.

         3. The SBS at the CCCH control SAN shall, unless overridden by a UT
            selection (see bullet 4), determine the Radio Connection SAN based
            on the following parameters:

            -     measurement reports and derived Path Loss Criterion values of
                  all satellites providing an unblocked path to the UT made as
                  late as practicable prior to the Radio Connection SAN
                  selection.

            -     UT elevation angle and azimuth separation to all such
                  satellites

            -     the list of Radio Connection SAN's for the reported radio
                  cells of all such satellites, and the corresponding SAN
                  priorities (see section 6.48.1.1.5b)

            -     ability to provide diversity via the satellites visible to
                  each such Radio Connection SAN (derived using reference to the
                  SAN-to-satellite connection plan)

            -     the SAN at which the UT is registered

            -     the ability of the CCCH control SAN to provide the traffic
                  channels for the call where the selection algorithm utilises
                  configurable weightings of these parameters

         4. In special cases, the UT may indicate a Radio Connection SAN via the
            Initial Message (Not covered in Air Interface Version 4.0), in which
            case this will override the selection by the CCCH control SAN
            described above.

      6.48.1.2.2. Following determination of the Radio Connection SAN by the SBS
      at the CCCH control SAN, or following receipt of the Initial Message
      indicating a Radio Connection SAN selection by the UT, the CCCH control
      SAN shall

         1. Set up a signalling connection to the MSSC of the registered SAN.

         2. As soon as is practicable, perform a SAN-to-SAN handover to the
            Radio Connection SAN if this is not the same as the CCCH control
            SAN.

CONFIDENTIAL AND PROPRIETARY                                         PAGE 4 OF 4
TO ICO GLOBAL COMMUNICATIONS
<PAGE>   1748
SBS EQUIPMENT LIST

<TABLE>
<CAPTION>
                                                                               SAN           SAN           SAN              SAN
ITEM NO.                                  DESCRIPTION                      FOR ICO-NET     FOR USA    FOR AUSTRALIA     FOR GERMANY
                                                                                          (TYPE 2)       (TYPE 1)        (TYPE 1)

                                                                               Qty           Qty           Qty              Qty
                                                                              /MMs          /MMs           /MMs            /MMs
------------------------------------------------------------------------------------------------------------------------------------
<S>           <C>                                                          <C>            <C>         <C>               <C>
              HARDWARE

1             CHANNEL UNIT
1.1           Channel Unit Chassis (CUC)                                                     18             18              30
1.1.1         Slot Processor Module (SPM)                                                    90             90              150
1.1.2         Modulator Demodulator Module (MDM)                                             162           162              270
1.1.3         Burst Repeater Module   (BRM)                                                  20             20              20
1.1.4         Clock Distribution Unit (CDM)                                                  14             14              22
1.1.5         Common Functions Module (CFM)                                                  24             24              48
1.2           Channel Unit Rack Base Units                                                    7             7               11
1.2.1         T1 Cables                                                                      36             36              60
1.2.2         Software Licences                                                              18             18              30
1.2.3         Fan Tray                                                                       18             18              30

2             CHANNEL MANAGER
2.1           Channel Manager Chassis (ChM)                                                   3             3                6
2.1.1         G.703 Interface                                                                27             27              54
2.1.2         Control Processor Modules (CPM)                                                33             33              66
2.1.3         Switching Transcoder Module (STM)                                              63             63              126
2.1.4         EXM                                                                             9             9               18
2.1.5         10 Base2 Ethernet                                                               3             3                6
2.1.6         Fan                                                                             3             3                6
2.1.7         Channel Manager Rack (CMR)                                                      1             1                2
2.1.8         Software Licences                                                               3             3                6

3             DISTRIBUTION RACKS
3.1           IF Distribution Subsystem (IDS)                                                 1             1                1
3.1.1         SBS Distribution Racks, Tx and Rx                                               4             4                4
3.1.2         IDS Expansion Kits                                                              0             0                3
3.2           Clock Distribution Subsystem (CDS)                                              1             1                1
3.2.1         GPS Receiver w/ Rb Oscillator                                                   2             2                2
3.2.2         10 MHz Outputs (SBS)                                                        Multiple       Multiple        Multiple
3.2.3         GPS Time Code Outputs (SBS)                                                 Multiple       Multiple        Multiple
3.2.4         Network Time Server (NTS)                                                       2             2                2
3.2.5         CDS Expansion Kit                                                               0             0                3

4             INSTALLATION MATERIALS
              (INCLS POWER/SIGNAL CABLES)
4.1           Power Cables                                                                   42             42              42
4.2           I/F Cables                                                                     48             48              48
4.3           LAN Cables                                                                     28             28              28
4.4           Sync Cabling                                                                   60             60              60

5             SBS OMC
</TABLE>

<TABLE>
<CAPTION>
                                                                             SAN           SAN          SAN           SAN
ITEM NO.                                  DESCRIPTION                     FOR SOUTH     FOR INDIA    FOR CHILE     FOR BRAZIL
                                                                            AFRICA       (TYPE 2)     (TYPE 2)      (TYPE 2)
                                                                            (TYPE 1)
                                                                             Qty           Qty          Qty           Qty
                                                                             /MMs          /MMs         /MMs          /MMs
----------------------------------------------------------------------------------------------------------------------------------
<S>           <C>                                                         <C>           <C>          <C>           <C>
              HARDWARE

1             CHANNEL UNIT
1.1           Channel Unit Chassis (CUC)                                      26            30           22            30
1.1.1         Slot Processor Module (SPM)                                    130           150          110           150
1.1.2         Modulator Demodulator Module (MDM)                             234           270          198           270
1.1.3         Burst Repeater Module   (BRM)                                   20            20           20            20
1.1.4         Clock Distribution Unit (CDM)                                   22            22           18            22
1.1.5         Common Functions Module (CFM)                                   40            48           32            48
1.2           Channel Unit Rack Base Units                                    11            11           9             11
1.2.1         T1 Cables                                                       52            60           44            60
1.2.2         Software Licences                                               26            30           22            30
1.2.3         Fan Tray                                                        26            30           22            30

2             CHANNEL MANAGER
2.1           Channel Manager Chassis (ChM)                                   5             6            4             6
2.1.1         G.703 Interface                                                 45            54           36            54
2.1.2         Control Processor Modules (CPM)                                 55            66           44            66
2.1.3         Switching Transcoder Module (STM)                              105           126           84           126
2.1.4         EXM                                                             15            18           12            18
2.1.5         10 Base2 Ethernet                                               5             6            4             6
2.1.6         Fan                                                             5             6            4             6
2.1.7         Channel Manager Rack (CMR)                                      2             2            2             2
2.1.8         Software Licences                                               5             6            4             6

3             DISTRIBUTION RACKS
3.1           IF Distribution Subsystem (IDS)                                 1             1            1             1
3.1.1         SBS Distribution Racks, Tx and Rx                               4             4            4             4
3.1.2         IDS Expansion Kits                                              2             3            1             3
3.2           Clock Distribution Subsystem (CDS)                              1             1            1             1
3.2.1         GPS Receiver w/ Rb Oscillator                                   2             2            2             2
3.2.2         10 MHz Outputs (SBS)                                         Multiple      Multiple     Multiple      Multiple
3.2.3         GPS Time Code Outputs (SBS)                                  Multiple      Multiple     Multiple      Multiple
3.2.4         Network Time Server (NTS)                                       2             2            2             2
3.2.5         CDS Expansion Kit                                               2             3            1             3

4             INSTALLATION MATERIALS
              (INCLS POWER/SIGNAL CABLES)
4.1           Power Cables                                                    42            42           42            42
4.2           I/F Cables                                                      48            48           48            48
4.3           LAN Cables                                                      28            28           28            28
4.4           Sync Cabling                                                    60            60           60            60

5             SBS OMC
</TABLE>

<TABLE>
<CAPTION>
                                                                               SAN           SAN             SAN              SAN
ITEM NO.                                  DESCRIPTION                      FOR MEXICO      FOR UAE      FOR INDONESIA      FOR CHINA
                                                                            (TYPE 2)       (TYPE 2)        (TYPE 2)        (TYPE 2)

                                                                               Qty           Qty             Qty              Qty
                                                                              /MMs           /MMs            /MMs            /MMs
------------------------------------------------------------------------------------------------------------------------------------
<S>           <C>                                                           <C>            <C>           <C>               <C>
              HARDWARE

1             CHANNEL UNIT
1.1           Channel Unit Chassis (CUC)                                       26             30              26              22
1.1.1         Slot Processor Module (SPM)                                      130           150             130              110
1.1.2         Modulator Demodulator Module (MDM)                               234           270             234              198
1.1.3         Burst Repeater Module   (BRM)                                    20             20              20              20
1.1.4         Clock Distribution Unit (CDM)                                    22             22              22              18
1.1.5         Common Functions Module (CFM)                                    40             48              40              32
1.2           Channel Unit Rack Base Units                                     11             11              11               9
1.2.1         T1 Cables                                                        52             60              52              44
1.2.2         Software Licences                                                26             30              26              22
1.2.3         Fan Tray                                                         26             30              26              22

2             CHANNEL MANAGER
2.1           Channel Manager Chassis (ChM)                                     5             6               5                4
2.1.1         G.703 Interface                                                  45             54              45              36
2.1.2         Control Processor Modules (CPM)                                  55             66              55              44
2.1.3         Switching Transcoder Module (STM)                                105           126             105              84
2.1.4         EXM                                                              15             18              15              12
2.1.5         10 Base2 Ethernet                                                 5             6               5                4
2.1.6         Fan                                                               5             6               5                4
2.1.7         Channel Manager Rack (CMR)                                        2             2               2                2
2.1.8         Software Licences                                                 5             6               5                4

3             DISTRIBUTION RACKS
3.1           IF Distribution Subsystem (IDS)                                   1             1               1                1
3.1.1         SBS Distribution Racks, Tx and Rx                                 4             4               4                4
3.1.2         IDS Expansion Kits                                                2             3               2                1
3.2           Clock Distribution Subsystem (CDS)                                1             1               1                1
3.2.1         GPS Receiver w/ Rb Oscillator                                     2             2               2                2
3.2.2         10 MHz Outputs (SBS)                                          Multiple       Multiple        Multiple        Multiple
3.2.3         GPS Time Code Outputs (SBS)                                   Multiple       Multiple        Multiple        Multiple
3.2.4         Network Time Server (NTS)                                         2             2               2                2
3.2.5         CDS Expansion Kit                                                 2             3               2                1

4             INSTALLATION MATERIALS
              (INCLS POWER/SIGNAL CABLES)
4.1           Power Cables                                                     42             42              42              42
4.2           I/F Cables                                                       48             48              48              48
4.3           LAN Cables                                                       28             28              28              28
4.4           Sync Cabling                                                     60             60              60              60

5             SBS OMC
</TABLE>

<TABLE>
<CAPTION>
                                                                             SAN           NMC         NMC                TOTAL
ITEM NO.                                  DESCRIPTION                      FOR KOREA     PRIMARY     BACK-UP
                                                                            (TYPE 1)

                                                                             Qty           Qty         Qty              Qty /MMs
                                                                             /MMs         /MMs        /MMs
--------------------------------------------------------------------------------------------------------------------------------
<S>           <C>                                                           <C>          <C>         <C>                <C>
              HARDWARE

1             CHANNEL UNIT
1.1           Channel Unit Chassis (CUC)                                      22                                           300
1.1.1         Slot Processor Module (SPM)                                    110                                          1,500
1.1.2         Modulator Demodulator Module (MDM)                             198                                          2,700
1.1.3         Burst Repeater Module   (BRM)                                   20                                           240
1.1.4         Clock Distribution Unit (CDM)                                   18                                           236
1.1.5         Common Functions Module (CFM)                                   32                                           456
1.2           Channel Unit Rack Base Units                                    9                                            118
1.2.1         T1 Cables                                                       44                                           600
1.2.2         Software Licences                                               22                                           300
1.2.3         Fan Tray                                                        22                                           300

2             CHANNEL MANAGER
2.1           Channel Manager Chassis (ChM)                                   4                                            57
2.1.1         G.703 Interface                                                 36                                           513
2.1.2         Control Processor Modules (CPM)                                 44                                           627
2.1.3         Switching Transcoder Module (STM)                               84                                          1,197
2.1.4         EXM                                                             12                                           171
2.1.5         10 Base2 Ethernet                                               4                                            57
2.1.6         Fan                                                             4                                            57
2.1.7         Channel Manager Rack (CMR)                                      2                                            22
2.1.8         Software Licences                                               4                                            57

3             DISTRIBUTION RACKS
3.1           IF Distribution Subsystem (IDS)                                 1                                            12
3.1.1         SBS Distribution Racks, Tx and Rx                               4                                            48
3.1.2         IDS Expansion Kits                                              1                                            21
3.2           Clock Distribution Subsystem (CDS)                              1                                            12
3.2.1         GPS Receiver w/ Rb Oscillator                                   2                                            24
3.2.2         10 MHz Outputs (SBS)                                         Multiple                                     Multiple
3.2.3         GPS Time Code Outputs (SBS)                                  Multiple                                     Multiple
3.2.4         Network Time Server (NTS)                                       2                                            24
3.2.5         CDS Expansion Kit                                               1                                            21

4             INSTALLATION MATERIALS
              (INCLS POWER/SIGNAL CABLES)
4.1           Power Cables                                                    42                                           504
4.2           I/F Cables                                                      48                                           576
4.3           LAN Cables                                                      28                                           336
4.4           Sync Cabling                                                    60                                           720

5             SBS OMC
</TABLE>

29/JAN/99                   Commercial in Confidence                 Page 1 of 5
<PAGE>   1749
SBS EQUIPMENT LIST

<TABLE>
<CAPTION>
                                                                               SAN           SAN           SAN              SAN
ITEM NO.                                  DESCRIPTION                      FOR ICO-NET     FOR USA    FOR AUSTRALIA     FOR GERMANY
                                                                                          (TYPE 2)       (TYPE 1)        (TYPE 1)

                                                                               Qty           Qty           Qty              Qty
                                                                              /MMs          /MMs           /MMs            /MMs
------------------------------------------------------------------------------------------------------------------------------------
<S>           <C>                                                          <C>            <C>         <C>               <C>

5.1           SUN Ultra 2 Server                                                              1             1                1
5.2           LEX-OPTRA Printer                                                               1             1                1
5.3           SUN Ultra 1 workstation                                                         1             1                1
5.4           Oracle Relational DBMS                                                          1             1                1
5.5           SUN Solstice Enterprise Manager                                                 1             1                1

6             LOCAL SRMS
6.1           SUN File Server (E5000 Series)                                                  2             2                2
6.2           Mirror Disk Drives (included in E5000 Servers)
6.3           Rack (included in E5000 Servers)
6.4           Operating system software license for E5000 Server                              1             1                1
6.5           CPU/Memory                                                                      1             1                1

7             TEST FIXTURES / TEST EQUIPMENT                                                  *
              (* ; Equipment will be used during the test
              period at the HNS facilities in India &
              USA and not at the SAN sites.)
7.1           Channel Unit
7.1.1         CUBS                                                                           54
7.1.2         Channel Unit Chassis (CUC)                                                     12
7.1.3         Slot Processor Module (SPM)                                                    60
7.1.4         Modulator Distribution Module (MDM)                                            108
7.1.5         Clock Distriobution Unit (CDM)                                                 12
7.1.6         Common Functions Module (CFM)                                                  24
7.1.7         Channel Unit Rack Base Units                                                    4
7.1.8         T1 Cables                                                                      24
7.1.9         Base Components
7.1.10        Fan Trays
7.1.11        Misc pins, circuit breakers, connectors

7.2           Channel Manager
7.2.1         Channel Manager Chassis (ChM)                                                   2
7.2.2         G.703 Interface                                                                26
7.2.3         Control Processor Modules (CPM)                                                26
7.2.4         Channel Access Processor (CAP)                                                 10
7.2.5         Channel Control Processor (CCP)                                                 8
7.2.6         Global Resource Processor (GRP)                                                 4
7.2.7         Switching Transcoder Module (STM)                                              42
7.2.8         10 Base2 Ethernet                                                               2
7.2.9         Channel Manager Rack (CMR) w2 Chassis                                           1
7.2.10        Fan                                                                             2
7.2.11        E1 Cables                                                                      20
</TABLE>

<TABLE>
<CAPTION>
                                                                              SAN           SAN          SAN           SAN
ITEM NO.                                  DESCRIPTION                      FOR SOUTH     FOR INDIA    FOR CHILE     FOR BRAZIL
                                                                             AFRICA       (TYPE 2)     (TYPE 2)      (TYPE 2)
                                                                             (TYPE 1)
                                                                              Qty           Qty          Qty           Qty
                                                                              /MMs          /MMs         /MMs          /MMs
-----------------------------------------------------------------------------------------------------------------------------------
<S>           <C>                                                          <C>           <C>          <C>           <C>

5.1           SUN Ultra 2 Server                                               1             1            1             1
5.2           LEX-OPTRA Printer                                                1             1            1             1
5.3           SUN Ultra 1 workstation                                          1             1            1             1
5.4           Oracle Relational DBMS                                           1             1            1             1
5.5           SUN Solstice Enterprise Manager                                  1             1            1             1

6             LOCAL SRMS
6.1           SUN File Server (E5000 Series)                                   2             2            2             2
6.2           Mirror Disk Drives (included in E5000 Servers)
6.3           Rack (included in E5000 Servers)
6.4           Operating system software license for E5000 Server               1             1            1             1
6.5           CPU/Memory                                                       1             1            1             1

7             TEST FIXTURES / TEST EQUIPMENT                                                 *
              (* ; Equipment will be used during the test
              period at the HNS facilities in India &
              USA and not at the SAN sites.)
7.1           Channel Unit
7.1.1         CUBS                                                                           32
7.1.2         Channel Unit Chassis (CUC)                                                     7
7.1.3         Slot Processor Module (SPM)                                                    35
7.1.4         Modulator Distribution Module (MDM)                                            63
7.1.5         Clock Distriobution Unit (CDM)                                                 7
7.1.6         Common Functions Module (CFM)                                                  14
7.1.7         Channel Unit Rack Base Units                                                   3
7.1.8         T1 Cables                                                                      14
7.1.9         Base Components
7.1.10        Fan Trays
7.1.11        Misc pins, circuit breakers, connectors

7.2           Channel Manager
7.2.1         Channel Manager Chassis (ChM)                                                  2
7.2.2         G.703 Interface                                                                26
7.2.3         Control Processor Modules (CPM)                                                26
7.2.4         Channel Access Processor (CAP)                                                 10
7.2.5         Channel Control Processor (CCP)                                                8
7.2.6         Global Resource Processor (GRP)                                                4
7.2.7         Switching Transcoder Module (STM)                                              42
7.2.8         10 Base2 Ethernet                                                              2
7.2.9         Channel Manager Rack (CMR) w2 Chassis                                          1
7.2.10        Fan                                                                            2
7.2.11        E1 Cables                                                                      20
</TABLE>

<TABLE>
<CAPTION>
                                                                               SAN           SAN             SAN              SAN
ITEM NO.                                  DESCRIPTION                      FOR MEXICO      FOR UAE      FOR INDONESIA      FOR CHINA
                                                                            (TYPE 2)       (TYPE 2)        (TYPE 2)        (TYPE 2)

                                                                               Qty           Qty             Qty              Qty
                                                                              /MMs           /MMs            /MMs            /MMs
------------------------------------------------------------------------------------------------------------------------------------
<S>           <C>                                                           <C>            <C>           <C>               <C>

5.1           SUN Ultra 2 Server                                                1             1               1                1
5.2           LEX-OPTRA Printer                                                 1             1               1                1
5.3           SUN Ultra 1 workstation                                           1             1               1                1
5.4           Oracle Relational DBMS                                            1             1               1                1
5.5           SUN Solstice Enterprise Manager                                   1             1               1                1

6             LOCAL SRMS
6.1           SUN File Server (E5000 Series)                                    2             2               2                2
6.2           Mirror Disk Drives (included in E5000 Servers)
6.3           Rack (included in E5000 Servers)
6.4           Operating system software license for E5000 Server                1             1               1                1
6.5           CPU/Memory                                                        1             1               1                1

7             TEST FIXTURES / TEST EQUIPMENT
              (* ; Equipment will be used during the test
              period at the HNS facilities in India &
              USA and not at the SAN sites.)
7.1           Channel Unit
7.1.1         CUBS
7.1.2         Channel Unit Chassis (CUC)
7.1.3         Slot Processor Module (SPM)
7.1.4         Modulator Distribution Module (MDM)
7.1.5         Clock Distriobution Unit (CDM)
7.1.6         Common Functions Module (CFM)
7.1.7         Channel Unit Rack Base Units
7.1.8         T1 Cables
7.1.9         Base Components
7.1.10        Fan Trays
7.1.11        Misc pins, circuit breakers, connectors

7.2           Channel Manager
7.2.1         Channel Manager Chassis (ChM)
7.2.2         G.703 Interface
7.2.3         Control Processor Modules (CPM)
7.2.4         Channel Access Processor (CAP)
7.2.5         Channel Control Processor (CCP)
7.2.6         Global Resource Processor (GRP)
7.2.7         Switching Transcoder Module (STM)
7.2.8         10 Base2 Ethernet
7.2.9         Channel Manager Rack (CMR) w2 Chassis
7.2.10        Fan
7.2.11        E1 Cables
</TABLE>

<TABLE>
<CAPTION>
                                                                              SAN           NMC         NMC                TOTAL
ITEM NO.                                  DESCRIPTION                       FOR KOREA     PRIMARY     BACK-UP
                                                                             (TYPE 1)

                                                                              Qty           Qty         Qty              Qty /MMs
                                                                              /MMs         /MMs        /MMs
---------------------------------------------------------------------------------------------------------------------------------
<S>           <C>                                                            <C>          <C>         <C>                <C>

5.1           SUN Ultra 2 Server                                               1                                            12
5.2           LEX-OPTRA Printer                                                1                                            12
5.3           SUN Ultra 1 workstation                                          1                                            12
5.4           Oracle Relational DBMS                                           1                                            12
5.5           SUN Solstice Enterprise Manager                                  1                                            12

6             LOCAL SRMS
6.1           SUN File Server (E5000 Series)                                   2                                            24
6.2           Mirror Disk Drives (included in E5000 Servers)
6.3           Rack (included in E5000 Servers)
6.4           Operating system software license for E5000 Server               1                                            12
6.5           CPU/Memory                                                       1                                            12

7             TEST FIXTURES / TEST EQUIPMENT
              (* ; Equipment will be used during the test
              period at the HNS facilities in India &
              USA and not at the SAN sites.)
7.1           Channel Unit
7.1.1         CUBS                                                                                                          86
7.1.2         Channel Unit Chassis (CUC)                                                                                    19
7.1.3         Slot Processor Module (SPM)                                                                                   95
7.1.4         Modulator Distribution Module (MDM)                                                                           171
7.1.5         Clock Distriobution Unit (CDM)                                                                                19
7.1.6         Common Functions Module (CFM)                                                                                 38
7.1.7         Channel Unit Rack Base Units                                                                                   7
7.1.8         T1 Cables                                                                                                     38
7.1.9         Base Components
7.1.10        Fan Trays
7.1.11        Misc pins, circuit breakers, connectors

7.2           Channel Manager
7.2.1         Channel Manager Chassis (ChM)                                                                                  4
7.2.2         G.703 Interface                                                                                               52
7.2.3         Control Processor Modules (CPM)                                                                               52
7.2.4         Channel Access Processor (CAP)                                                                                20
7.2.5         Channel Control Processor (CCP)                                                                               16
7.2.6         Global Resource Processor (GRP)                                                                                8
7.2.7         Switching Transcoder Module (STM)                                                                             84
7.2.8         10 Base2 Ethernet                                                                                              4
7.2.9         Channel Manager Rack (CMR) w2 Chassis                                                                          2
7.2.10        Fan                                                                                                            4
7.2.11        E1 Cables                                                                                                     40
</TABLE>

29/JAN/99                   Commercial in Confidence                 Page 2 of 5
<PAGE>   1750
SBS EQUIPMENT LIST

<TABLE>
<CAPTION>
                                                                               SAN           SAN           SAN              SAN
ITEM NO.                                  DESCRIPTION                      FOR ICO-NET     FOR USA    FOR AUSTRALIA     FOR GERMANY
                                                                                          (TYPE 2)       (TYPE 1)        (TYPE 1)

                                                                               Qty           Qty           Qty              Qty
                                                                              /MMs          /MMs           /MMs            /MMs
------------------------------------------------------------------------------------------------------------------------------------
<S>           <C>                                                          <C>            <C>         <C>               <C>

7.3           Processing Equipment
7.3.1         SBS OMC                                                                         1
7.3.2         Local SRMS                                                                      1
7.3.3         OPS Console                                                                     1
7.3.4         Ethernet Switch                                                                 1

7.4           DISTRIBUTION RACKS
7.4.1         IF Distribution Subsystem (IDS)                                                 1
7.4.2         Clock Distribution Subsystem (CDS)                                              1

7.5           Installation Materials Including
              power/ signal cables
7.5.1         Power Cables                                                                   30
7.5.2         I/F cables                                                                     32
7.5.3         LAN Cables                                                                      2
7.5.4         Sync Cabling                                                                   40

7.6           Power System                                                                    1

7.7           Specialized Test Equipment
7.7.1         Traffic Burst Generator                                                         1
7.7.2         Signalling Burst Generator                                                      1
7.7.3         BER Analyzer                                                                    2
7.7.4         SCAT Test Bed                                                                   1
7.7.5         Lab Power Supplies                                                              6
7.7.6         RF Combiners / Splitters                                                       10
7.7.7         Misc Baseband Combiners / Splitters                                            20

8             CLOCK DISTRIBUTION SYSTEM
8.1           Engineering Development                                          71
8.2           Equipment - 12 SANs
8.2.1         10 MHz Fiber Optic Outputs                                                   5 Sets         5 Sets          5 Sets
8.2.2         GPS Time Code Fiber Optic Outputs                                            5 Sets         5 Sets          5 Sets
8.2.3         10 MHz Outputs                                                               3 Sets         3 Sets          3 Sets
8.2.4         IRIG-B Outputs                                                               6 Sets         6 Sets          6 Sets
8.2.5         1 PPS Outputs                                                                2 Sets         2 Sets          2 Sets
8.2.6         GPS Time Code Outputs                                                        2 Sets         2 Sets          2 Sets

9             SYSTEM INTEGRATION SUPPORT FACILITY                                                           **
              AT NEC AUSTRALIA
              (** ; Equipment will be used during the
              test period at NEC Australia facility and not
              at SAN site.)
9.1           Engineering Support                                                                           9
9.2           Lab Equipment
9.2.1         Channel Unit                                                                                  10
9.2.2         Channel Manager                                                                               2
9.2.3         E1/T1 Cabling                                                                              1 Group
9.2.4         LAN Cabling and TAPs                                                                       1 Group
</TABLE>

<TABLE>
<CAPTION>
                                                                              SAN           SAN          SAN           SAN
ITEM NO.                                  DESCRIPTION                      FOR SOUTH     FOR INDIA    FOR CHILE     FOR BRAZIL
                                                                             AFRICA       (TYPE 2)     (TYPE 2)      (TYPE 2)
                                                                             (TYPE 1)
                                                                              Qty           Qty          Qty           Qty
                                                                              /MMs          /MMs         /MMs          /MMs
-----------------------------------------------------------------------------------------------------------------------------------
<S>           <C>                                                          <C>           <C>          <C>           <C>

7.3           Processing Equipment
7.3.1         SBS OMC                                                                        1
7.3.2         Local SRMS                                                                     1
7.3.3         OPS Console                                                                    1
7.3.4         Ethernet Switch                                                                1

7.4           DISTRIBUTION RACKS
7.4.1         IF Distribution Subsystem (IDS)                                                1
7.4.2         Clock Distribution Subsystem (CDS)                                             1

7.5           Installation Materials Including
              power/ signal cables
7.5.1         Power Cables                                                                   20
7.5.2         I/F cables                                                                     24
7.5.3         LAN Cables                                                                     1
7.5.4         Sync Cabling                                                                   30

7.6           Power System                                                                   1

7.7           Specialized Test Equipment
7.7.1         Traffic Burst Generator                                                        1
7.7.2         Signalling Burst Generator                                                     1
7.7.3         BER Analyzer                                                                   2
7.7.4         SCAT Test Bed                                                                  0
7.7.5         Lab Power Supplies                                                             0
7.7.6         RF Combiners / Splitters                                                       5
7.7.7         Misc Baseband Combiners / Splitters                                            5

8             CLOCK DISTRIBUTION SYSTEM
8.1           Engineering Development
8.2           Equipment - 12 SANs
8.2.1         10 MHz Fiber Optic Outputs                                     5 Sets        5 Sets       5 Sets        5 Sets
8.2.2         GPS Time Code Fiber Optic Outputs                              5 Sets        5 Sets       5 Sets        5 Sets
8.2.3         10 MHz Outputs                                                 3 Sets        3 Sets       3 Sets        3 Sets
8.2.4         IRIG-B Outputs                                                 6 Sets        6 Sets       6 Sets        6 Sets
8.2.5         1 PPS Outputs                                                  2 Sets        2 Sets       2 Sets        2 Sets
8.2.6         GPS Time Code Outputs                                          2 Sets        2 Sets       2 Sets        2 Sets

9             SYSTEM INTEGRATION SUPPORT FACILITY
              AT NEC AUSTRALIA
              (** ; Equipment will be used during the
              test period at NEC Australia facility and not
              at SAN site.)
9.1           Engineering Support
9.2           Lab Equipment
9.2.1         Channel Unit
9.2.2         Channel Manager
9.2.3         E1/T1 Cabling
9.2.4         LAN Cabling and TAPs
</TABLE>

<TABLE>
<CAPTION>
                                                                              SAN           SAN             SAN              SAN
ITEM NO.                                  DESCRIPTION                     FOR MEXICO      FOR UAE      FOR INDONESIA      FOR CHINA
                                                                           (TYPE 2)       (TYPE 2)        (TYPE 2)        (TYPE 2)

                                                                              Qty           Qty             Qty              Qty
                                                                             /MMs           /MMs            /MMs            /MMs
------------------------------------------------------------------------------------------------------------------------------------
<S>           <C>                                                          <C>            <C>           <C>               <C>

7.3           Processing Equipment
7.3.1         SBS OMC
7.3.2         Local SRMS
7.3.3         OPS Console
7.3.4         Ethernet Switch

7.4           DISTRIBUTION RACKS
7.4.1         IF Distribution Subsystem (IDS)
7.4.2         Clock Distribution Subsystem (CDS)

7.5           Installation Materials Including
              power/ signal cables
7.5.1         Power Cables
7.5.2         I/F cables
7.5.3         LAN Cables
7.5.4         Sync Cabling

7.6           Power System

7.7           Specialized Test Equipment
7.7.1         Traffic Burst Generator
7.7.2         Signalling Burst Generator
7.7.3         BER Analyzer
7.7.4         SCAT Test Bed
7.7.5         Lab Power Supplies
7.7.6         RF Combiners / Splitters
7.7.7         Misc Baseband Combiners / Splitters

8             CLOCK DISTRIBUTION SYSTEM
8.1           Engineering Development
8.2           Equipment - 12 SANs
8.2.1         10 MHz Fiber Optic Outputs                                    5 Sets         5 Sets          5 Sets          5 Sets
8.2.2         GPS Time Code Fiber Optic Outputs                             5 Sets         5 Sets          5 Sets          5 Sets
8.2.3         10 MHz Outputs                                                3 Sets         3 Sets          3 Sets          3 Sets
8.2.4         IRIG-B Outputs                                                6 Sets         6 Sets          6 Sets          6 Sets
8.2.5         1 PPS Outputs                                                 2 Sets         2 Sets          2 Sets          2 Sets
8.2.6         GPS Time Code Outputs                                         2 Sets         2 Sets          2 Sets          2 Sets

9             SYSTEM INTEGRATION SUPPORT FACILITY
              AT NEC AUSTRALIA
              (** ; Equipment will be used during the
              test period at NEC Australia facility and not
              at SAN site.)
9.1           Engineering Support
9.2           Lab Equipment
9.2.1         Channel Unit
9.2.2         Channel Manager
9.2.3         E1/T1 Cabling
9.2.4         LAN Cabling and TAPs
</TABLE>

<TABLE>
<CAPTION>
                                                                             SAN           NMC         NMC                TOTAL
ITEM NO.                                  DESCRIPTION                      FOR KOREA     PRIMARY     BACK-UP
                                                                            (TYPE 1)

                                                                             Qty           Qty         Qty              Qty /MMs
                                                                             /MMs         /MMs        /MMs
--------------------------------------------------------------------------------------------------------------------------------
<S>           <C>                                                           <C>          <C>         <C>                <C>

7.3           Processing Equipment
7.3.1         SBS OMC                                                                                                       2
7.3.2         Local SRMS                                                                                                    2
7.3.3         OPS Console                                                                                                   2
7.3.4         Ethernet Switch                                                                                               2

7.4           DISTRIBUTION RACKS
7.4.1         IF Distribution Subsystem (IDS)                                                                               2
7.4.2         Clock Distribution Subsystem (CDS)                                                                            2

7.5           Installation Materials Including
              power/ signal cables
7.5.1         Power Cables                                                                                                 50
7.5.2         I/F cables                                                                                                   56
7.5.3         LAN Cables                                                                                                    3
7.5.4         Sync Cabling                                                                                                 70

7.6           Power System                                                                                                  2

7.7           Specialized Test Equipment
7.7.1         Traffic Burst Generator                                                                                       2
7.7.2         Signalling Burst Generator                                                                                    2
7.7.3         BER Analyzer                                                                                                  4
7.7.4         SCAT Test Bed                                                                                                 1
7.7.5         Lab Power Supplies                                                                                            6
7.7.6         RF Combiners / Splitters                                                                                     15
7.7.7         Misc Baseband Combiners / Splitters                                                                          25

8             CLOCK DISTRIBUTION SYSTEM
8.1           Engineering Development
8.2           Equipment - 12 SANs
8.2.1         10 MHz Fiber Optic Outputs                                    5 Sets                                       60 Sets
8.2.2         GPS Time Code Fiber Optic Outputs                             5 Sets                                       60 Sets
8.2.3         10 MHz Outputs                                                3 Sets                                       36 Sets
8.2.4         IRIG-B Outputs                                                6 Sets                                       72 Sets
8.2.5         1 PPS Outputs                                                 2 Sets                                       24 Sets
8.2.6         GPS Time Code Outputs                                         2 Sets                                       24 Sets

9             SYSTEM INTEGRATION SUPPORT FACILITY
              AT NEC AUSTRALIA
              (** ; Equipment will be used during the
              test period at NEC Australia facility and not
              at SAN site.)
9.1           Engineering Support                                                                                           9
9.2           Lab Equipment
9.2.1         Channel Unit                                                                                                 10
9.2.2         Channel Manager                                                                                               2
9.2.3         E1/T1 Cabling                                                                                              1 Group
9.2.4         LAN Cabling and TAPs                                                                                       1 Group
</TABLE>

29/JAN/99                   Commercial in Confidence                 Page 3 of 5

<PAGE>   1751
SBS EQUIPMENT LIST

<TABLE>
<CAPTION>
                                                                               SAN           SAN           SAN              SAN
ITEM NO.                                  DESCRIPTION                      FOR ICO-NET     FOR USA    FOR AUSTRALIA     FOR GERMANY
                                                                                          (TYPE 2)       (TYPE 1)        (TYPE 1)

                                                                               Qty           Qty           Qty              Qty
                                                                              /MMs          /MMs           /MMs            /MMs
------------------------------------------------------------------------------------------------------------------------------------
<S>           <C>                                                          <C>            <C>         <C>               <C>

9.2.5         Clock Distribution System                                                                     1
9.2.6         I/F Distribution System                                                                       1
9.2.7         Traffic Burst Generator                                                                       4
9.2.8         Signalling Burst Generator                                                                    1

10            SBS DC POWER SYSTEM (AC/DC CONVERTORS                                           1             1                1
              & 2 HR BATTERY BANK)
10.1          Battery Bank                                                                    1             1                1
10.2          Rectifier Rack                                                                  1             1                1
10.3          Power Distribution Rack                                                         1             1                1
10.4          Installation Materials                                                        1 Lot         1 Lot            1 Lot
10.5          Expansion DC Power                                                              0             0                3

11            CE MARK COMPLIANCE FOR SAN ChM, CU,
              IF DISTRIBUTION & CLOCK DISTRIBUTION
              NOTE:  One site qualified to meet CE
              per EN55022 Class A.
11.1          Engineering Development                                          139
11.2          Test & Certification                                                                          7                7
11.3          Equipment

12            SPARE PARTS
12.1          Channel Unit Chassis
12.1.1        Slot Processor Module (SPM)                                                     5             5                8
12.1.2        Modulator Demodulator Module (MDM)                                             10             10              17
12.1.3        Clock Distribution Unit (CDM)                                                   2             2                3
12.1.4        Common Functions Module (CFM)                                                   3             3                6
12.1.5        T1 Cables                                                                       1             1                1
12.1.6        Channel Unit Rack Base Components                                            3 Lots         3 Lots          3 Lots
12.1.7        Fan Trays                                                                       2             2                2
12.2          Channel Manager Chassis
12.2.1        G.703 Interface                                                                 3             3                6
12.2.2        Control Processor Modules used for CAPs,                                        3             3                6
              CCPs,& GRPs
12.2.3        Switching Transcoder Module (STM)                                               6             6               12
12.2.4        EXM                                                                             2             2                5
12.2.5        10 Base2 Ethernet                                                               1             1                1
12.2.6        Fan                                                                             1             1                1
12.2.7        E1 Cables                                                                       1             1                1
12.2.8        Power Disttribution Unit Components                                           1 Lot         1 Lot            1 Lot
12.3          Clock Distribution Subsystem
12.3.1        GPS  Receiver w/ Rb Oscillator                                                  1             1                1
12.3.2        10 Mhz Outputs (SBS)                                                          1 Set         1 Set            1 Set
12.3.3        GPS Time Code Outputs (SBS)                                                   1 Set         1 Set            1 Set
12.3.4        Network Time Server                                                             1             1                1
12.4          IF Distribution Subsystem
12.4.1        SBS Tx Distribution Modules                                                   1 Set         1 Set            1 Set
12.4.2        SBS Rx Distribution Modules                                                   1 Set         1 Set            1 Set
</TABLE>

<TABLE>
<CAPTION>
                                                                              SAN           SAN          SAN           SAN
ITEM NO.                                  DESCRIPTION                      FOR SOUTH     FOR INDIA    FOR CHILE     FOR BRAZIL
                                                                             AFRICA       (TYPE 2)     (TYPE 2)      (TYPE 2)
                                                                             (TYPE 1)
                                                                              Qty           Qty          Qty           Qty
                                                                              /MMs          /MMs         /MMs          /MMs
-----------------------------------------------------------------------------------------------------------------------------------
<S>           <C>                                                          <C>           <C>          <C>           <C>

9.2.5         Clock Distribution System
9.2.6         I/F Distribution System
9.2.7         Traffic Burst Generator
9.2.8         Signalling Burst Generator

10            SBS DC POWER SYSTEM (AC/DC CONVERTORS                            1             1            1             1
              & 2 HR BATTERY BANK)
10.1          Battery Bank                                                     1             1            1             1
10.2          Rectifier Rack                                                   1             1            1             1
10.3          Power Distribution Rack                                          1             1            1             1
10.4          Installation Materials                                         1 Lot         1 Lot        1 Lot         1 Lot
10.5          Expansion DC Power                                               2             3            1             3

11            CE MARK COMPLIANCE FOR SAN ChM, CU,
              IF DISTRIBUTION & CLOCK DISTRIBUTION
              NOTE:  One site qualified to meet CE
              per EN55022 Class A.
11.1          Engineering Development
11.2          Test & Certification
11.3          Equipment

12            SPARE PARTS
12.1          Channel Unit Chassis
12.1.1        Slot Processor Module (SPM)                                      7             8            6             8
12.1.2        Modulator Demodulator Module (MDM)                               15            17           13            17
12.1.3        Clock Distribution Unit (CDM)                                    3             3            2             3
12.1.4        Common Functions Module (CFM)                                    5             6            4             6
12.1.5        T1 Cables                                                        1             1            1             1
12.1.6        Channel Unit Rack Base Components                              3 Lots        3 Lots       3 Lots        3 Lots
12.1.7        Fan Trays                                                        2             2            2             2
12.2          Channel Manager Chassis
12.2.1        G.703 Interface                                                  5             6            4             6
12.2.2        Control Processor Modules used for CAPs,                         5             6            4             6
              CCPs,& GRPs
12.2.3        Switching Transcoder Module (STM)                                10            12           8             12
12.2.4        EXM                                                              4             5            3             5
12.2.5        10 Base2 Ethernet                                                1             1            1             1
12.2.6        Fan                                                              1             1            1             1
12.2.7        E1 Cables                                                        1             1            1             1
12.2.8        Power Disttribution Unit Components                            1 Lot         1 Lot        1 Lot         1 Lot
12.3          Clock Distribution Subsystem
12.3.1        GPS  Receiver w/ Rb Oscillator                                   1             1            1             1
12.3.2        10 Mhz Outputs (SBS)                                           1 Set         1 Set        1 Set         1 Set
12.3.3        GPS Time Code Outputs (SBS)                                    1 Set         1 Set        1 Set         1 Set
12.3.4        Network Time Server                                              1             1            1             1
12.4          IF Distribution Subsystem
12.4.1        SBS Tx Distribution Modules                                    1 Set         1 Set        1 Set         1 Set
12.4.2        SBS Rx Distribution Modules                                    1 Set         1 Set        1 Set         1 Set
</TABLE>

<TABLE>
<CAPTION>
                                                                               SAN           SAN             SAN              SAN
ITEM NO.                                  DESCRIPTION                      FOR MEXICO      FOR UAE      FOR INDONESIA      FOR CHINA
                                                                            (TYPE 2)       (TYPE 2)        (TYPE 2)        (TYPE 2)

                                                                               Qty           Qty             Qty              Qty
                                                                              /MMs           /MMs            /MMs            /MMs
------------------------------------------------------------------------------------------------------------------------------------
<S>           <C>                                                           <C>            <C>           <C>               <C>

9.2.5         Clock Distribution System
9.2.6         I/F Distribution System
9.2.7         Traffic Burst Generator
9.2.8         Signalling Burst Generator

10            SBS DC POWER SYSTEM (AC/DC CONVERTORS                             1             1               1                1
              & 2 HR BATTERY BANK)
10.1          Battery Bank                                                      1             1               1                1
10.2          Rectifier Rack                                                    1             1               1                1
10.3          Power Distribution Rack                                           1             1               1                1
10.4          Installation Materials                                          1 Lot         1 Lot           1 Lot            1 Lot
10.5          Expansion DC Power                                                2             3               2                1

11            CE MARK COMPLIANCE FOR SAN ChM, CU,
              IF DISTRIBUTION & CLOCK DISTRIBUTION
              NOTE:  One site qualified to meet CE
              per EN55022 Class A.
11.1          Engineering Development
11.2          Test & Certification
11.3          Equipment

12            SPARE PARTS
12.1          Channel Unit Chassis
12.1.1        Slot Processor Module (SPM)                                       7             8               7                6
12.1.2        Modulator Demodulator Module (MDM)                               15             17              15              13
12.1.3        Clock Distribution Unit (CDM)                                     3             3               3                2
12.1.4        Common Functions Module (CFM)                                     5             6               5                4
12.1.5        T1 Cables                                                         1             1               1                1
12.1.6        Channel Unit Rack Base Components                              3 Lots         3 Lots          3 Lots          3 Lots
12.1.7        Fan Trays                                                         2             2               2                2
12.2          Channel Manager Chassis
12.2.1        G.703 Interface                                                   5             6               5                4
12.2.2        Control Processor Modules used for CAPs,                          5             6               5                4
              CCPs,& GRPs
12.2.3        Switching Transcoder Module (STM)                                10             12              10               8
12.2.4        EXM                                                               4             5               4                3
12.2.5        10 Base2 Ethernet                                                 1             1               1                1
12.2.6        Fan                                                               1             1               1                1
12.2.7        E1 Cables                                                         1             1               1                1
12.2.8        Power Disttribution Unit Components                             1 Lot         1 Lot           1 Lot            1 Lot
12.3          Clock Distribution Subsystem
12.3.1        GPS  Receiver w/ Rb Oscillator                                    1             1               1                1
12.3.2        10 Mhz Outputs (SBS)                                            1 Set         1 Set           1 Set            1 Set
12.3.3        GPS Time Code Outputs (SBS)                                     1 Set         1 Set           1 Set            1 Set
12.3.4        Network Time Server                                               1             1               1                1
12.4          IF Distribution Subsystem
12.4.1        SBS Tx Distribution Modules                                     1 Set         1 Set           1 Set            1 Set
12.4.2        SBS Rx Distribution Modules                                     1 Set         1 Set           1 Set            1 Set
</TABLE>

<TABLE>
<CAPTION>
                                                                             SAN           NMC         NMC                TOTAL
ITEM NO.                                  DESCRIPTION                      FOR KOREA     PRIMARY     BACK-UP
                                                                            (TYPE 1)

                                                                             Qty           Qty         Qty              Qty /MMs
                                                                             /MMs         /MMs        /MMs
--------------------------------------------------------------------------------------------------------------------------------
<S>           <C>                                                           <C>          <C>         <C>                <C>

9.2.5         Clock Distribution System                                                                                     1
9.2.6         I/F Distribution System                                                                                       1
9.2.7         Traffic Burst Generator                                                                                       4
9.2.8         Signalling Burst Generator                                                                                    1

10            SBS DC POWER SYSTEM (AC/DC CONVERTORS                           1                                            12
              & 2 HR BATTERY BANK)
10.1          Battery Bank                                                    1                                            12
10.2          Rectifier Rack                                                  1                                            12
10.3          Power Distribution Rack                                         1                                            12
10.4          Installation Materials                                        1 Lot                                        12 Lots
10.5          Expansion DC Power                                              1                                            21

11            CE MARK COMPLIANCE FOR SAN ChM, CU,
              IF DISTRIBUTION & CLOCK DISTRIBUTION
              NOTE:  One site qualified to meet CE
              per EN55022 Class A.
11.1          Engineering Development                                                                                      139
11.2          Test & Certification                                                                                         14
11.3          Equipment

12            SPARE PARTS
12.1          Channel Unit Chassis
12.1.1        Slot Processor Module (SPM)                                     6                                            81
12.1.2        Modulator Demodulator Module (MDM)                              13                                           172
12.1.3        Clock Distribution Unit (CDM)                                   2                                            31
12.1.4        Common Functions Module (CFM)                                   4                                            57
12.1.5        T1 Cables                                                       1                                            12
12.1.6        Channel Unit Rack Base Components                             3 Lots                                       36 Lots
12.1.7        Fan Trays                                                       2                                            24
12.2          Channel Manager Chassis                                                                                       0
12.2.1        G.703 Interface                                                 4                                            57
12.2.2        Control Processor Modules used for CAPs,                        4                                            57
              CCPs,& GRPs
12.2.3        Switching Transcoder Module (STM)                               8                                            114
12.2.4        EXM                                                             3                                            45
12.2.5        10 Base2 Ethernet                                               1                                            12
12.2.6        Fan                                                             1                                            12
12.2.7        E1 Cables                                                       1                                            12
12.2.8        Power Disttribution Unit Components                           1 Lot                                        12 Lots
12.3          Clock Distribution Subsystem                                                                                  0
12.3.1        GPS  Receiver w/ Rb Oscillator                                  1                                            12
12.3.2        10 Mhz Outputs (SBS)                                          1 Set                                        12 Sets
12.3.3        GPS Time Code Outputs (SBS)                                   1 Set                                        12 Sets
12.3.4        Network Time Server                                             1                                            12
12.4          IF Distribution Subsystem
12.4.1        SBS Tx Distribution Modules                                   1 Set                                        12 Sets
12.4.2        SBS Rx Distribution Modules                                   1 Set                                        12 Sets
</TABLE>

29/JAN/99                   Commercial in Confidence                 Page 4 of 5
<PAGE>   1752
SBS EQUIPMENT LIST

<TABLE>
<CAPTION>
                                                                               SAN           SAN           SAN              SAN
ITEM NO.                                  DESCRIPTION                      FOR ICO-NET     FOR USA    FOR AUSTRALIA     FOR GERMANY
                                                                                          (TYPE 2)       (TYPE 1)        (TYPE 1)

                                                                               Qty           Qty           Qty              Qty
                                                                              /MMs          /MMs           /MMs            /MMs
------------------------------------------------------------------------------------------------------------------------------------
<S>           <C>                                                          <C>            <C>         <C>               <C>

12.5          Clock Distribution Equipment
12.5.1        10 MHz Fiber Optic Outputs                                                    1 Set         1 Set            1 Set
12.5.2        GPS Time Code Fiber Optic Outputs                                             1 Set         1 Set            1 Set
12.5.3        10 MHz Outputs                                                                1 Set         1 Set            1 Set
12.5.4        IRIG-B Outputs                                                                1 Set         1 Set            1 Set
12.5.5        1 PPS Outputs                                                                 1 Set         1 Set            1 Set
12.5.6        GPS Time Code Outputs                                                         1 Set         1 Set            1 Set

13            TESTER
13.1          AI Validation Tool (SDL)                                          1
              Engineering Development                                          96
              Materials                                                         1

14.           HARDWARE ITEM FOR 60/61DAYS OPTION
14.1          Implementation of Service Area in SBS                                           1             1                1
14.2          Service Area Based on Frequency Assignment                                      1             1                1
14.3          Service Area mapping using guard band                                           1             1                1
4.2           2 Satellite position determination
              using differential delay                                                       1             1                1

              SOFTWARE LICENCE

              SUBTOTAL
</TABLE>

<TABLE>
<CAPTION>
                                                                                  SAN           SAN          SAN           SAN
ITEM NO.                                  DESCRIPTION                          FOR SOUTH     FOR INDIA    FOR CHILE     FOR BRAZIL
                                                                                 AFRICA       (TYPE 2)     (TYPE 2)      (TYPE 2)
                                                                                 (TYPE 1)
                                                                                  Qty           Qty          Qty           Qty
                                                                                  /MMs          /MMs         /MMs          /MMs
------------------------------------------------------------------------------------------------------------------------------------
<S>           <C>                                                              <C>           <C>          <C>           <C>

12.5          Clock Distribution Equipment
12.5.1        10 MHz Fiber Optic Outputs                                         1 Set         1 Set        1 Set         1 Set
12.5.2        GPS Time Code Fiber Optic Outputs                                  1 Set         1 Set        1 Set         1 Set
12.5.3        10 MHz Outputs                                                     1 Set         1 Set        1 Set         1 Set
12.5.4        IRIG-B Outputs                                                     1 Set         1 Set        1 Set         1 Set
12.5.5        1 PPS Outputs                                                      1 Set         1 Set        1 Set         1 Set
12.5.6        GPS Time Code Outputs                                              1 Set         1 Set        1 Set         1 Set

13            TESTER
13.1          AI Validation Tool (SDL)
              Engineering Development
              Materials

14.           HARDWARE ITEM FOR 60/61DAYS OPTION
14.1          Implementation of Service Area in SBS                                1             1            1             1
14.2          Service Area Based on Frequency Assignment                           1             1            1             1
14.3          Service Area mapping using guard band                                1             1            1             1
4.2           2 Satellite position determination
              using differential delay                                            1             1            1             1

              SOFTWARE LICENCE

              SUBTOTAL
</TABLE>

<TABLE>
<CAPTION>
                                                                             SAN           SAN             SAN              SAN
ITEM NO.                                  DESCRIPTION                    FOR MEXICO      FOR UAE      FOR INDONESIA      FOR CHINA
                                                                          (TYPE 2)       (TYPE 2)        (TYPE 2)        (TYPE 2)

                                                                             Qty           Qty             Qty              Qty
                                                                            /MMs           /MMs            /MMs            /MMs
------------------------------------------------------------------------------------------------------------------------------------
<S>           <C>                                                         <C>            <C>           <C>               <C>

12.5          Clock Distribution Equipment
12.5.1        10 MHz Fiber Optic Outputs                                    1 Set         1 Set           1 Set            1 Set
12.5.2        GPS Time Code Fiber Optic Outputs                             1 Set         1 Set           1 Set            1 Set
12.5.3        10 MHz Outputs                                                1 Set         1 Set           1 Set            1 Set
12.5.4        IRIG-B Outputs                                                1 Set         1 Set           1 Set            1 Set
12.5.5        1 PPS Outputs                                                 1 Set         1 Set           1 Set            1 Set
12.5.6        GPS Time Code Outputs                                         1 Set         1 Set           1 Set            1 Set

13            TESTER
13.1          AI Validation Tool (SDL)
              Engineering Development
              Materials

14.           HARDWARE ITEM FOR 60/61DAYS OPTION
14.1          Implementation of Service Area in SBS                           1             1               1                1
14.2          Service Area Based on Frequency Assignment                      1             1               1                1
14.3          Service Area mapping using guard band                           1             1               1                1
4.2           2 Satellite position determination
              using differential delay                                       1             1               1                1

              SOFTWARE LICENCE

              SUBTOTAL
</TABLE>

<TABLE>
<CAPTION>
                                                                     SAN           NMC         NMC               TOTAL
ITEM NO.                                  DESCRIPTION              FOR KOREA     PRIMARY     BACK-UP
                                                                    (TYPE 1)

                                                                     Qty           Qty         Qty             Qty /MMs
                                                                     /MMs         /MMs        /MMs
-----------------------------------------------------------------------------------------------------------------------
<S>           <C>                                                   <C>          <C>         <C>               <C>

12.5          Clock Distribution Equipment
12.5.1        10 MHz Fiber Optic Outputs                            1 Set                                       12 Sets
12.5.2        GPS Time Code Fiber Optic Outputs                     1 Set                                       12 Sets
12.5.3        10 MHz Outputs                                        1 Set                                       12 Sets
12.5.4        IRIG-B Outputs                                        1 Set                                       12 Sets
12.5.5        1 PPS Outputs                                         1 Set                                       12 Sets
12.5.6        GPS Time Code Outputs                                 1 Set                                       12 Sets

13            TESTER
13.1          AI Validation Tool (SDL)                                                                             1
              Engineering Development                                                                             96
              Materials                                                                                            1

14.           HARDWARE ITEM FOR 60/61DAYS OPTION
14.1          Implementation of Service Area in SBS                   1                                           12
14.2          Service Area Based on Frequency Assignment              1                                           12
14.3          Service Area mapping using guard band                   1                                           12
4.2           2 Satellite position determination
              using differential delay                               1                                           12

              SOFTWARE LICENCE

              SUBTOTAL                                                                                          INCLUDED IN HARDWARE
</TABLE>

29/JAN/99                   Commercial in Confidence                 Page 5 of 5

<PAGE>   1753
[ICO LOGO]                                            CHANGE ORDER NO:
                                                             17
                IGF SUPPLY AGREEMENT
                CONTRACT NO ICOO97 - 1016/GW
                                                             DATE: 8th June 1999

In accordance with clause 9 of the Supply Agreement dated March 3rd 1997 between
NEC Corporation and ICO Global Communications Holdings BV, the Agreement is
hereby amended as follows:

<TABLE>
<S>                                    <C>
Change Order Summary                   Attached

Amended Clauses                        Amended text attached

Amended Schedules                      Amendments attached

Amended Annexes                        Amendments attached

Amended Price                          Amendments attached

</TABLE>

This Change Order No 17 will now form part of the Supply Agreement dated March
3rd 1997 between the parties and shall be effective as from 8th June 1999 and
shall be governed by and construed in accordance with the laws of England.

Except for the changes set out herein, this Change Order No 17 makes no further
amendments or modifications to the Agreement.

<TABLE>
<S>                                                         <C>
Signed for and on behalf of                                 Signed for and on behalf of
ICO GLOBAL COMMUNICATIONS HOLDINGS BV                       NEC CORPORATION

/s/   ***                                                    /s/       ***
-------------------------------------                       --------------------------------------
Supervising Officer                                         Contractor's Authorised Representative

8 June 1999                                                 8 June 1999
---------------                                             ---------------
Date                                                        Date
In Paris
</TABLE>
<PAGE>   1754
                                              CONTRACT NUMBER: ICOO 97 - 1016/GW
                                                             CHANGE ORDER NO: 17

                                    JUNE 1999

                               CHANGE ORDER NO: 17

                                     TO THE

                                SUPPLY AGREEMENT

                                     BETWEEN

                                 NEC CORPORATION

                                       AND

                      ICO GLOBAL COMMUNICATIONS HOLDINGS BV
<PAGE>   1755
                        CHANGE ORDER NO: 17 ATTACHMENT 1

                           SUMMARY OF THE CHANGE ORDER
<PAGE>   1756
                                                        CHANGE ORDER NO. 17
                                                 TO THE SUPPLY AGREEMENT BETWEEN
                                                             NEC CORPORATION AND
                                           ICO GLOBAL COMMUNICATIONS HOLDINGS BV
                                                                    ATTACHMENT 1

By this Change Order No.17, the Supply Agreement dated March 3, 1997, between
NEC Corporation ("the Contractor") and ICO Global Communications Holdings BV
("ICO") (hereinafter referred to as the "Supply Agreement") is amended as set
out herein.

BACKGROUND TO CHANGE ORDER NO. 17

    ICO and the Contractor have agreed to amend the Supply Agreement to
    formalise the objectives which are stated, principally, in Attachment 2
    (Part A) and Attachment 3 (Part B) to this Change Order. The Change Order is
    constituted in two distinct parts, namely Part A and Part B, as follows.

PART A: PHASED SAN HANDOVER

    ICO and the Contractor have agreed that the Supply Agreement shall be
    amended to enable the Phased Handover of Deliverables under the Supply
    Agreement and that the Contractor shall carry out Works and produce
    Deliverables in accordance with the amended Terms and Conditions, Annexes
    and Schedules attached hereto. Matters are more particularly described in
    ATTACHMENT-2 hereto.

PART B: PRICING CHANGE ORDER

    ICO and the Contractor have further agreed that certain provisions of the
    Supply Agreement shall, otherwise, be amended to enable the parties to
    separately record and distinguish the value of those Change Orders to the
    Supply Agreement which shall form part of the Price, as defined within the
    Supply Agreement, from those which shall not. Matters are more particularly
    described in ATTACHMENT-3-1, 3-2 AND 3-3 hereto.

This Change Order sets forth the entire agreement between the parties as to the
subject matter hereof and supersedes all prior discussions between them. Neither
of the parties shall be bound by any conditions, definitions, warranties,
understandings, or representations with respect to such subject matter other
than as expressly provided herein.

                                      -1-
<PAGE>   1757
           CHANGE ORDER NO: 17                         ATTACHMENT 2

                                     PART-A

                               PHASED SAN HANDOVER
<PAGE>   1758
                                                             CHANGE ORDER NO. 17
                                                 TO THE SUPPLY AGREEMENT BETWEEN
                                                             NEC CORPORATION AND
                                           ICO GLOBAL COMMUNICATIONS HOLDINGS BV

                                                                    ATTACHMENT 2

PART A: PHASED SAN HANDOVER

1.    The purpose of PART A to this Change Order 17 is to implement certain
      specified amendments to the Supply Agreement to enable the progressive
      Handover to ICO by the Contractor of the Contractor's Deliverables under
      the Supply Agreement to facilitate ICO's earlier preparations for
      operation of the ICO System.

2.    As at the Effective Date hereof the parties agree to amend specified parts
      of the Supply Agreement in accordance with Attachment hereto.

<TABLE>
<S>                                                                            <C>
      Terms and Conditions                                                     Amended

      Schedule 1: Definitions                                                  Amended

      Schedule 2: Precedence of Documents                                      Not Amended

      Schedule 3: Dispute Resolution Procedure                                 Amended

      Schedule 4: Agreed Form Invoice                                          Not Amended

      Schedule 5: Not used                                                     Not Amended

      Schedule 6: Key Features                                                 Not Amended

      Schedule 7: Top Level Milestones                                         Amended

      Schedule 8: Identification of Sites                                      Amended

      Schedule 9: Pricing Schedule                                             Amended

      Schedule 10: Vendor Financing Summary                                    Not Amended

      Schedule 11: Payment Schedule                                            Amended

      Schedule 12: Acceptance Certificate                                      Amended

      Schedule 13: IGFR                                                        Amended

      Schedule 14: Statement of Work                                           Amended

         Annex-1: Contractor's Deliverables                                    Amended

         Annex-2: Services & Equipment                                         Amended

         Annex-3: Installation Site Conditions                                 Not Amended

         Annex-4: Programme Management and Implementation                      Amended

         Annex-5: Training                                                     Amended

         Annex-6: Documentation                                                Amended

         Annex-7: Site Working Arrangements                                    Amended

         Annex-7A: Site Working Arrangements                                   Not Amended

         Annex 7B: Joint Working Arrangement                                   New Annex

         Annex 7C: Network Partitioning                                        New Annex

         Annex-8A: IGF Test Plan                                               Amended

         Annex-8B: Demonstration Plan                                          Amended

         Annex-9: ICONET Integration                                           Not Amended

         Annex-10: ICONET Ground Facilities Acceptance Criteria                Amended

         Annex-11: Air Interface Signalling Protocol Validation                Not Amended
</TABLE>

<PAGE>   1759
3.    The provision of the China SAN, by the Contractor, remains a part of the
      Supply Agreement. The implementation of the China SAN will be detailed in
      a separate Change Order to the Supply Agreement. (See Clause 2.2 of the
      amended Terms and Conditions).

4.    The parties also agree that the Air Interface specification version of 27
      November 1998 shall be the baseline for the ICONET Ground
      Facilities Requirements and the Air Interface Control Documents. The
      Contractor or other members of the NEC Team, or their respective
      Sub-Contractors, shall make no claim for delay or cost arising from Air
      Interface Change Proposals or Air Interface Change Notices issued by ICO
      prior to 27 November 1998.

5.    Without prejudice to the Contractor's obligations to deliver the
      Deliverables and to comply with its obligations under this Change Order,
      the parties understand and agree that the Network Partitioning provisions
      of Annex 7C of the Supply Agreement, which have been generated
      specifically as a consequence of this Change Order, shall not create
      expressly, or by implication, any additional IGFR obligations or
      requirements upon the Contractor and that such obligations as are
      specified within Annex 7c are not, themselves, subject to any pass/fail
      criteria.

6.    The Master Level Schedule and the Top Level Milestone Schedule attached
      hereto takes no account of consequences, if any, which may arise from the
      replacement flooring activities undertaken or to be undertaken by ICO at
      the Hub Building in the India SAN Site. As soon as reasonably practical,
      following the completion of such activity, the Contractor will advise ICO
      of any schedule or cost impact it considers has arisen as a consequence.
      To the extent that a schedule and cost impact which is not attributable
      to, or which could not have been mitigated by, the Contractor can be
      demonstrated by the Contractor, it shall be addressed and appropriate
      schedule adjustment shall be provided to the Contractor and cost impact
      shall be fully reimbursed to the Contractor by ICO.

7.    The quantity of inter-Site SAN and NMC digital communication links and the
      dates they are required by the Contractor have been documented by ICO in
      Doc. EN-NE-ICO-PL-000430 of 2nd June 1999 revised to reflect Phased SAN
      Handover requirements. This document will be updated from time to time,
      under Clause 9 Change
<PAGE>   1760
      Control Procedure and or Clause 19 Milestones and Progress Reporting.

8.    Both parties acknowledge and agree the need to update certain parts of the
      Supply Agreement to reflect previous Change Orders. The parties undertake
      that each will use its best efforts to ensure that all the necessary
      changes identified below will be accomplished with 1 month of this Change
      Order without the need for the parties to formalise this process by means
      of a further Change Order.

      Change Order No. 5, Clause 4, Attachment - 1
      Change Order No.10, Clause 4, Attachment - 1
      Change Order No.16, Clause 4, Attachment - 1

9.    The parties agree that neither the Contractor nor any member of the NEC
      Team shall have any obligation to provide vendor financing to ICO for
      additional amount pursuant to the Phased SAN Handover Engineering Portion
      (as set out in Appendix 4 of Schedule 9 herein) as agreed in this Change
      Order.
<PAGE>   1761
             CHANGE ORDER NO: 17                       ATTACHMENT 3

                                    PART - B
                              PRICING CHANGE ORDER
<PAGE>   1762
                                                              CHANGE ORDER NO.17
                                                     TO THE IGF SUPPLY AGREEMENT
                                                    CONTRACT NO ICO097 - 1016/GW

                                                                  ATTACHMENT 3-1

PART B PRICING CHANGE ORDER

1.       The purpose of this Part B to Change Order No. 17 is to enable the
         parties to separately record and distinguish, within the Supply
         Agreement, the value of those Change Orders to the Supply Agreement
         which it is intended by the parties should form part of the Price, as
         defined within clause 15.1 (hereinafter referred to as "Clause 15.1
         Change Orders") from those Change Orders which are agreed, inter alia,
         in accordance with clause 14 (hereinafter referred to as "Non-clause
         15.1 Change Orders") and which should not form part of the Price.

2.       As at the date hereof, the parties agree to introduce into the Terms
         and Conditions of the Supply Agreement a new clause 15.1.1 and a new
         clause 15.2.1 to effectively articulate this procedure within the
         Supply Agreement.

         2.1      The new clause 15.1.1 to be incorporated within the Supply
         Agreement shall read as follows:-

         "In addition to ICOs obligations to pay to the Contractor such sums as
         are described in clause 15.1 above, ICO shall also pay to the
         Contractor such further payments ("Other Payments") as the parties
         agree, from time to time, shall be payable pursuant to those Non-clause
         15.1 Change Orders whose respective total values shall not be treated
         as, nor constitute an accretion to, nor form part of the Price, as
         defined within clause 15.1.

         2.2      The new clause 15.2.1 to be incorporated within the Supply
         Agreement shall read as follows:-

         "Other Payments shall be payable in accordance with the terms of the
         relevant Non-clause 15.1 Change Order referred to in clause 15.1.1,
         above".

         2.3      For the purpose of identifying the values of all Clause 15.1
         Change Orders and Non-clause 15.1 Change Orders details of the same
         shall be particularised within Schedule 9, Tables 24, respectively.

3.       By means of this Change Order the parties agree that paragraph 5 of
         Attachment 1 to Change Order No. 4, dated 15 May 1998, shall
         retrospectively be amended and shall read as follows:-

         "5.      Upon completion of this Change Order No. 4, the Other Payments
         made, or to be made hereunder by ICO, pursuant to clause 15.1.1, shall
         be recorded within Part B) of the Table 24 of Schedule 9 (Pricing
         Schedule) of the Supply Agreement, without the need for the parties to
         formalise the amendment by way of further Change Order".

4.       As at the date hereof, the parties agree to retrospectively remove from
         Table 1 of Schedule 9 (Pricing Schedule) to the Supply Agreement, any,
         and all, reference to Item 11 - GPRS Study (Change Order No. 1) and the
         Item, described as ICONET Integration, together with their respective
         financial values. Table 1 of Attachment 3.1 to Change Order No. 3, as
<PAGE>   1763
         amended, is contained within Attachment No. 2 and shall from the basis
         of all future changes, if any, required to be made to Table 1 of
         Schedule 9.

         Consequent upon these changes, the parties agree to amend Attachments-1
         to Change Order Nos. 3, 5 10 and 16 in order to regularise the
         necessary corresponding reductions to the sums described as "aggregate
         total price", as follows:-

         4.1      The "aggregate total price" set out within Attachment 1 to
                  Change Order No. 3 dated 31 March 1998 shall be revised to
                  read   *   ;

         4.2      The "aggregate total price" set out within Attachment 1 to
                  Change Order No. 5 dated 20 November 1998 shall be revised to
                  read   *

         4.3      The "aggregate total price" set out within Attachment No. 1 to
                  Change Order No. 10 dated 23 December 1998 shall be revised to
                  read   *

         4.4      The "aggregate total price" set out within Attachment No. 1 to
                  Change Order No. 16 dated 17 May 1999 shall be revised to read
                     *   .

5.       By means of this Change Order the parties agree to introduce within
         Schedule 9 (Pricing Schedule) to the Supply Agreement a revised section
         7, Table 24 which shall provide summary details of all Clause 15.1
         Change Orders and all Non-clause 15.1 Change Orders. The form and
         content of Tables 24 shall be as set out within Attachment 3. Tables 24
         shall be amended, from time to time, by agreement between the parties.

         * Confidential Treatment Requested and the Redacted Material has been
           separately filed with the Commission.

<PAGE>   1764
                                                       CHANGE ORDER NO. 17
                                                 TO THE SUPPLY AGREEMENT BETWEEN
                                                             NEC CORPORATION AND
                                           ICO GLOBAL COMMUNICATIONS HOLDINGS BV

                                                                  ATTACHMENT 3-2

TABLE 1 OF ATTACHMENT 3.1 TO CHANGE ORDER NO. 3 REVISED PURSUANT TO THIS
CHANGE ORDER.

                         TABLE 1-SA PRICE SUMMARY (US$)

                                        *

NOTE: At the date of signing the original Supply Agreement ICONET Integration
was an option having a value of   *   .

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

<PAGE>   1765
                                                       CHANGE ORDER NO. 17
                                                 TO THE SUPPLY AGREEMENT BETWEEN
                                                             NEC CORPORATION AND
                                           ICO GLOBAL COMMUNICATIONS HOLDINGS BV

                                                                  ATTACHMENT 3-3

CHANGE ORDER HISTORY

The following provides summary Tables of the Change Order History

TABLE 24 - HISTORY OF CHANGE ORDERS - A) CLAUSE 15.1 CHANGE ORDERS / B)
NON-CLAUSE 15.1 CHANGE ORDERS (in US$)

                                        *

Note: Change Orders Nos. 4 and 11 are contracted on time and material basis and
the Maximum value stated above may vary subject to further Change Order between
the parties.

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

<PAGE>   1766
                                        *

Note: Change Orders Nos. 4 and 11 are contracted on time and material basis and
the Maximum value stated above may vary subject to further Change Order between
the parties.

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   1767
CONTRACT NUMBER:  ICO0 97-1016/GW

                                 MARCH 3RD 1997

                                SUPPLY AGREEMENT

                                     BETWEEN

                                 NEC CORPORATION

                                       AND

                      ICO GLOBAL COMMUNICATIONS HOLDINGS BV
<PAGE>   1768
TABLE OF CONTENTS

<TABLE>
<CAPTION>
CLAUSE                                                                                           PAGE
<S>           <C>                                                                                <C>
A             INTERPRETATION                                                                         5
1             Definitions and Interpretation                                                         5
2             Scope of Agreement                                                                     6
3             Precedence and Interpretation                                                          6

B             PRIMARY OBLIGATIONS                                                                    6
4             Primary Obligations Of The Contractor And Warranties                                   6
5             Contractor to Inform Itself Fully                                                     10
6             Standard of the Works                                                                 10
7             Uniform Standards                                                                     11
8             Unilateral Changes                                                                    11
9             Change Control                                                                        12
10            [Not used]                                                                            13
11            Contractor's Ability to Appoint and Liability for Sub-Contractors                     14
12            ICO Obligations                                                                       15
13            Quality Assurance                                                                     15
14            ICONET Integration                                                                    16

C             PRICE AND PAYMENT                                                                     21
15            Price                                                                                 21
16            Payment and Payment Terms                                                             23
17            Payment of Reimbursable Costs                                                         26
18            Liquidated Damages                                                                    27

D             PROGRESS REPORTING                                                                    29
19            Milestones and Progress Reporting                                                     29
20            [Not used]                                                                            30
21            [Not used]                                                                            30
22            Progress Inspection                                                                   30
23            Intermediate Progress Review                                                          30
24            [Not used]                                                                            31

E             DELIVERY AND INSTALLATION                                                             31
25            Site Access                                                                           31
26            Transportation to Site                                                                31
27            Packaging                                                                             32
28            Customs Clearance                                                                     32
29            Insurance                                                                             34
30            Ownership                                                                             35
31            Delivery                                                                              35
32            Installation                                                                          35
33            Testing                                                                               36
34            RFT Handover                                                                          36
35            Acceptance                                                                            38
36            Risk                                                                                  39
37            Interchangeability                                                                    39
38            Delivery Delays                                                                       40
</TABLE>
<PAGE>   1769
<TABLE>
<S>           <C>                                                                                <C>
39            [Not used]                                                                            40
40            Warranty                                                                              40

F             INTELLECTUAL PROPERTY RIGHTS                                                          46
41            Intellectual Property Rights and Confidentiality                                      46
42            [Not used]                                                                            52
43            [Not used]                                                                            52

G             CONTINUOUS SUPPORT AND OPTIONS                                                        53
44            Manuals and Technical Diagrams                                                        53
45            Training                                                                              53
46            Options, Support Services and Future Supplies                                         53
47            Consumable Supplies                                                                   55
48            Attachments to Equipment and Software                                                 55
49            [Not used]                                                                            56

H             GENERAL                                                                               56
50            Survival of Certain Provisions                                                        56
51            Contractor's Liability for Damages or Breach                                          56
52            ICO's Liability for Damages or Breach                                                 57
53            Ethical Standards                                                                     58
54            Consequences of Termination                                                           58
55            Force Majeure                                                                         62
56            Termination                                                                           63
57            Waiver                                                                                65
58            Amendments                                                                            65
59            Communication and Notices                                                             65
60            Publicity                                                                             68
61            Information Recording                                                                 68
62            Law and Jurisdiction                                                                  68
63            Change of Law                                                                         69
64            Export Control Regulation                                                             70
65            Disputes Resolution Procedure                                                         70
66            Agent for Service                                                                     70
67            Supervising Officer and
              Contractor's Authorised Representative                                                70
68            No Partnership                                                                        70
69            Successors                                                                            70
70            Assignment                                                                            70
71            Language                                                                              71
72            Entire Agreement                                                                      71
73            Severability                                                                          71
74            Costs                                                                                 71
75            Counterparts                                                                          71
</TABLE>
<PAGE>   1770
<TABLE>
<S>           <C>                                                                                <C>
SCHEDULES

1             Definitions                                                                           73
2             Precedence of Documents                                                               79
3             Dispute Resolution Procedure                                                          80
4             Agreed Form Invoices
5             [Not used]
6             Key Features
7             Top Level Milestones
8             Identification of Sites Not Inspected by the Contractor
9             Pricing Schedule
10            Vendor Financing Summary
11            Payment Schedule
12            Final Acceptance Certificate
13            IGFR
14            Statement of Work
</TABLE>
<PAGE>   1771
THIS SUPPLY AGREEMENT is made on                    1997

BETWEEN

1.       ICO GLOBAL COMMUNICATIONS HOLDINGS BV, incorporated in the Netherlands
         with its registered office at Drentestraat 20, 1083 HK, Amsterdam,
         Netherlands ("ICO"); and

2.       NEC CORPORATION, incorporated in Japan, with its head office at 7-1,
         Shiba 5-Chome, Minato-ku, Tokyo 108-8001, Japan (the "Contractor").

WHEREAS

1.       ICO is establishing a global mobile satellite telecommunications
         network and wishes to appoint the Contractor, working with the other
         members of the NEC Team, to provide the systems and services for use in
         the ICONET Ground Facilities which, when operating in conjunction with
         the other properly functioning parts of the ICO System, will support
         (in the absence of the Excluded Circumstances) the full range of end to
         end services to the extent set out in this Agreement.

2.       The Contractor is the leader of a team comprising itself, Hughes
         Network Systems, Inc. and Ericsson Limited which is willing to commit
         the resources required to perform successfully the tasks set out in
         this Agreement and, if so required by ICO and on terms to be agreed
         between the parties, has confirmed its willingness to assist ICO in
         solving problems with elements of the ICO System other than the ICONET
         Ground Facilities by making modifications to the ICONET Ground
         Facilities so as to enable ICO to realise the desired functionality of
         a fully functioning ICO System.

3.       The Contractor (as leader of the NEC Team) and ICO entered into an
         Initial Phase Contract on 5 July 1996 (the "IPC"). The NEC Team have
         delivered to ICO certain of the materials required under Annex 8 of the
         IPC.

4.       The parties are entering into this Agreement under which the Contractor
         will be responsible, inter alia, for the design, manufacture,
         construction, delivery, installation, integration and testing of the
         ICONET Ground Facilities together with the demonstration of the
         functioning of the ICO System as a whole, all as set out in this
         Agreement.

5.       This Agreement also contains options for ICO to request the
         manufacture, construction, delivery, installation, integration and
         testing of additional equipment, facilities and software together with
         such additional services as will enable ICO to update, expand and
         enhance the ICONET Ground Facilities, all at additional cost to ICO on
         a price basis which has been established.

6.       ICO Global Communications (Holdings) Limited has agreed by separate
         letter to support the financial obligations of ICO under this
         Agreement.

NOW IT IS AGREED AS FOLLOWS:

PART A - INTERPRETATION

1        DEFINITIONS AND INTERPRETATION

1.1      The words and expressions set out in Schedule 1 shall, when used in
this Agreement including its schedules, annexes and attachments, unless the
contrary intention appears, have the meanings set against them in Schedule 1.
Any acronyms which are not defined in Schedule 1 shall have the meaning ascribed
to them in section 2 of the IGFR.

1.2      Except where the context otherwise requires, the masculine gender shall
include the feminine and neuter and the singular shall include the plural and
vice versa and references to persons shall

                                       5
<PAGE>   1772
include bodies corporate and incorporate. References to a party to this
Agreement shall include the permitted successors and assigns of such party.

1.3      The clause and schedule headings and any table of contents are for
convenience of reference only and shall not be taken into account in construing
this Agreement.

1.4      Subject to clause 3, references in this Agreement to clauses, sub
clauses, schedules and annexes are to clauses, sub clauses, schedules and
annexes of this Agreement and the schedules and annexes form part of this
Agreement and shall have the same force and effect as if expressly set out in
the body of this Agreement.

2        SCOPE OF AGREEMENT

2.1      Subject to the provisions of Clause 2.2, below, the Contractor's
acceptance of this Agreement shall be confirmation that the NEC Team has
reviewed and fully understands the IGFR and the Statement of Work and the
Contractor confirms that the Works will be undertaken on the basis of this
Agreement. The Contractor also agrees that it is responsible for the definition,
management and execution by the NEC Team of all tasks necessary to fulfil the
IGFR.

2.2      The SAN to be located in China (China San) remains a part of the ICONET
Ground Facilities and the Supply Agreement. As at the date of this Change Order,
the Ready For Access date for the China SAN has yet to be confirmed by ICO to
the Contractor and the parties acknowledge and agree, therefore, that all
planning, scheduling and implementation activities and responsibilities of, or
concerning, the China SAN under the Supply Agreement shall be defined and
regulated within the terms of a separate Change Order to be agreed by the
parties. Pending execution of such Change Order all references herein concerning
the timing and schedule of the ICONET Ground Facilities shall be deemed to
exclude the China SAN.

3        PRECEDENCE AND INTERPRETATION

3.1      In the event of any conflict between the main body of this Agreement
and any document referred to herein, then the wording of the main body of this
Agreement shall prevail.

3.2      Clause 3.1 shall not apply to any document relating to the proposed
Vendor Financing referred to in Schedule 10.

3.3      ICO and the Contractor acknowledge the hierarchical nature of the
documents as set out in Schedule 2.

PART B - PRIMARY OBLIGATIONS

4        PRIMARY OBLIGATIONS OF THE CONTRACTOR AND WARRANTIES

4.1      The Contractor warrants and undertakes that:

         (a)      it will, no later than the Acceptance Set 4 Completion Date
                  provide to ICO the functionalities described in the IGFR
                  across the complete ICONET Ground Facilities; except in
                  respect of those functions as described as Function Set 5 in
                  Annex 1 of the Statement of Work which shall be provided to
                  ICO no later than the Acceptance Set 5 Completion Date and the
                  China SAN which is addressed in Clause 2.2

         (b)      it will design, develop, create, deliver, install and provide
                  (as the case may be) all of the Deliverables (including those
                  which have at the date of this Agreement been specified by the
                  Contractor) necessary for the ICONET Ground Facilities so as
                  to fulfil the functional objectives and the requirements of
                  the IGFR and the Statement of Work;

                                       6
<PAGE>   1773
         (c)      the Works comprising the ICONET Ground Facilities will be
                  carried out and delivered in accordance with and to the
                  standards stipulated in the IGFR and the Statement of Work;

         (d)      it will complete the Works which are scheduled to be completed
                  by the RFT Availability Dates and date of completion testing
                  of Function Set 5 to Acceptance Criteria 5 as set out in Annex
                  10, on or before Acceptance Set 5 Completion Date and those
                  Works which are scheduled to be completed after Acceptance Set
                  5 Completion Date by the relevant dates specified in the
                  Master Level Schedule;

         (e)      it will provide all the documentation, services and
                  Deliverables by the times specified in the Top Level Milestone
                  Schedule generally, and will ensure that the progress of the
                  development, delivery and installation of each of the
                  Deliverables will be achieved in accordance with the Top Level
                  Milestones set out in the Top Level Milestone Schedule and
                  that the requirements set out in the Statement of Work will,
                  (except where otherwise agreed) be delivered no later than
                  Acceptance Set 5 Completion Date;

         (f)      the ICONET Ground Facilities will fully support the
                  requirements of the IGFR and in particular the end-to-end
                  services described in Section 4 of the IGFR except where
                  marked "Option" or "F/R" (unless such "Option" has been
                  exercised or the "F/R" item has subsequently been made a
                  Deliverable pursuant to a Change Order, in which event such
                  items shall be deemed to have been a service included in the
                  IGFR) except where, and to the extent that, the Excluded
                  Circumstances prevent the ICONET Ground Facilities from doing
                  so in which case the Contractor shall to the maximum extent
                  feasible make such modifications to the ICONET Ground
                  Facilities as are required fully to support the requirements
                  of the IGFR and such end-to-end services in accordance with
                  clause 4.10;

         (g)      without prejudice to clause 41, the Deliverables may lawfully
                  be used for the purposes of the ICONET Ground Facilities in
                  accordance with laws and regulations in force as at the date
                  hereof in each of the countries where the Sites are located;

         (h)      any Deliverables which are or shall be specified by the
                  Contractor for the purposes of this Agreement may, on the date
                  when the obligation to supply first arises or, if later, the
                  date on which the Contractor specifies the same, lawfully be
                  used for the purposes of the ICONET Ground Facilities in
                  accordance with laws and regulations in force as at such date
                  in each of the countries where the Sites are located;

                  Provided that for the purposes of clause 4.1(h), where any
                  specific piece of equipment or component has been or is
                  specified as a Deliverable and the same is not available at
                  the time it is required, the Contractor shall, having given
                  written notice to the Supervising Officer, be permitted to
                  substitute a reasonable alternative piece of equipment or
                  component so long as this has no adverse effect on the quality
                  or functionality of the relevant Deliverable and so long as
                  ICO shall not, within 21 days of receipt of the Contractor's
                  notice, have notified the Contractor in writing that it
                  objects to the proposed substitution, and ICO undertakes that
                  it will not exercise such right of objection unreasonably;

         (i)      the ICONET Ground Facilities shall be designed in such a way
                  as to facilitate updates, additional functionalities or
                  enhancements to them in the future and that it will, as set
                  out in this Agreement, provide or procure the provision of
                  such updates, additional functionalities, or enhancements to
                  the ICONET Ground Facilities;

         (j)      at all times the Contractor and all its Sub-Contractors will
                  provide their services in a workmanlike and professional
                  manner and exercise reasonable skill and care;

                                       7
<PAGE>   1774
         (k)      it will ensure that all of the Deliverables supplied are
                  suitable for the purposes for which they are supplied and for
                  use at the intended place of operation and are of a standard
                  satisfactory to enable them to fulfil the requirements set out
                  in this Agreement;

         (l)      it will provide, and will ensure that its Sub-Contractors
                  provide, a sufficient number of suitably skilled and
                  appropriately experienced personnel to meet the objectives of
                  this Agreement and to ensure that delivery, installation and
                  testing of the Deliverables at each of the Sites is completed
                  by the Acceptance Set 4 Completion Date and that equivalent
                  personnel are available for the development, testing and
                  support for the installation of Acceptance Set 5.

         (m)      it will work in a constructive manner with ICO Staff and the
                  Site Operators to the extent necessary for the effective
                  performance of the Works; and

         (n)      each of the Deliverables and each item of the Equipment,
                  Software or other equipment which is or shall be specified for
                  the purposes of the ICONET Ground Facilities will be available
                  for use or incorporation into the ICONET Ground Facilities by
                  ICO and, with the exception of those Deliverables which ICO
                  has committed to purchase at the date of this Agreement
                  (including those where the price and scope are fixed at the
                  date of this Agreement), that the same will be provided by the
                  Contractor at a reasonable cost and on reasonable terms

4.2      If the Contractor becomes aware of any internal inconsistencies in or
between the IGFR or the Statement of Work, or any incompleteness or lack of
sufficient detail in the IGFR or the Statement of Work, then the Contractor
shall immediately notify ICO of the same in writing and promptly thereafter
inform ICO of the measures which it proposes to take in order to make the same
consistent, complete or sufficiently detailed and the Contractor undertakes to
procure that any details or means or measures which the Contractor notifies to
ICO under this clause 4.2 will, if agreed to by ICO, not result in any of the
warranties or undertakings in this clause 4 ceasing to be correct or met.

4.3      If ICO does not consider that any matter proposed to it under clause
4.2 is either satisfactory or appropriate, ICO shall promptly notify the
Contractor of this in writing and the Contractor shall then promptly notify ICO
of a reasonable alternative.

4.4      Any variation to the IGFR or the Statement of Work to which ICO agrees
under the terms of clause 4.2 or 4.3 shall be recorded in accordance with clause
58.

4.5      The Contractor undertakes that to the best of its knowledge,
information and belief it is not, at the date hereof, aware of anything in the
IGFR or the Statement of Work which is likely to result in any of the Top Level
Milestones not being met or which will affect the likelihood of its ability to
satisfy all of the functionalities of the IGFR or to deliver all of the ICONET
Ground Facilities which in either case the Contractor is agreeing under this
Agreement to fulfil or deliver by the Acceptance Set 5 Completion Date.

4.6      Where the Contractor shall be in breach of any aspect of any of the
warranties and undertakings set out in clauses 4 or 40 or any of its other
obligations relating to the provision of the ICONET Ground Facilities, the
Contractor shall be responsible, at its own cost   *   , for redesigning the
relevant aspect of and making any modifications to the ICONET Ground Facilities
required to remedy any such breach and for procuring the provision of a suitable
alternative to such Deliverables for ICO having functionality which is no less
than that which was specified in the IGFR and/or the Statement of Work. The
Contractor shall carry out such work, and procure that its Sub-Contractors carry
out such work, expeditiously and use its best endeavours to ensure that the
impact of such breach is minimised, especially as the same affects the time
schedule for the implementation of service through the ICO System.

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

                                       8
<PAGE>   1775
4.7      The warranties set out in this clause shall be deemed repeated on the
first day of each calendar quarter by reference to such date and the facts and
circumstances then in existence, save that in the case of the warranties
contained in clauses 4.1 (g) and (h), with the addition at the beginning thereof
of a qualification "save as has been notified in accordance with clause 63.3,".

4.8      If the Contractor or any Sub-Contractor makes a statement or provides
ICO with information, ICO, acting by the Supervising Officer, shall be entitled
by a written notice to the Contractor to require that the Contractor confirms
the accuracy of such statement or information. Such notice shall refer to this
clause 4.8 and, wherever possible, identify where and when the statement was
made and the person who made the statement which ICO wishes the Contractor to
confirm. The Contractor shall, acting by the Contractor's Authorised
Representative, within fourteen days of ICO's notice (or in any case where ICO
shall have identified that confirmation of such statement is a matter of extreme
commercial urgency, by return) either confirm the accuracy of such statement or
information, or where the same is incorrect or inaccurate, shall provide a
qualified, corrected or accurate statement addressing the relevant
subject-matter in sufficient detail to enable ICO to obtain a proper
understanding of the position (any such statement or information so confirmed or
deemed confirmed and any qualified, corrected statement or information being
referred to in this clause 4.8 as a "Representation"). If the Contractor does
not give a substantive reply to ICO's request within the relevant timescale as
set out in this clause, the Contractor shall be deemed to have confirmed such
Representation. The Contractor shall be deemed to warrant the accuracy of each
Representation and ICO shall be entitled to rely for all the purposes of this
Agreement (and in particular for the purposes of determining its course of
action) upon the accuracy of any Representation.

4.9      Without prejudice to any rights which ICO may have as are provided for
pursuant to the terms of this Agreement, the Contractor gives no warranties
other than as are set out in this Agreement, whether, express, implied or
statutory, on or with respect to the goods and services to be provided
hereunder.

4.10     Where, and to the extent that, the Excluded Circumstances prevent the
ICONET Ground Facilities from fully supporting the requirements of the IGFR and
the end-to-end services referred to in clause 4.1(f), the Contractor shall to
the maximum extent feasible make such modifications to the ICONET Ground
Facilities as are required fully to support such requirements and such
end-to-end services on terms to be agreed between the parties.

4.11     ICO shall not be entitled to bring a claim in respect of either any
breach of any of the warranties set out in clause 4.1 nor for any breach of the
undertakings set out in clause 6.1 unless ICO shall have notified the Contractor
thereof in writing within six years following the Acceptance Set 5 Completion
Date, except:

       (a)        where the claim arises from a breach of any of such warranties
                  relating to Further Works and/or Further Deliverables, in
                  which event such claim may be brought only if ICO shall have
                  notified the Contractor thereof in writing within six years
                  following the Handover Date of the relevant Deliverable or the
                  date of completion of the relevant Works; or

       (b)        where the claim arises as a consequence of any Further Works
                  and/or Further Deliverables which adversely affect any of the
                  Deliverables delivered or Works completed before the Handover
                  Date or date of completion of such Further Works, in which
                  event such claim may be brought only if ICO shall have
                  notified the Contractor thereof in writing within six years
                  following the Handover Date of the relevant Further
                  Deliverable or the date of completion of the Further Works
                  which have caused such adverse effect,

provided that in any of the foregoing circumstances, if the event giving rise to
the claim for breach of warranty shall occur less than 12 months prior to the
last day of any such six year period, in respect

                                       9
<PAGE>   1776
of that claim only, the period for notification of the claim shall be extended
to end 12 months after the date of the relevant event.

4.12     Any claim made by ICO for breach of warranty under clause 4 or for
breach of undertaking under clause 6.1 shall be deemed withdrawn, and the breach
(if any) shall be deemed to have been irrevocably waived by ICO, unless
proceedings in respect of such claim shall have been issued and served by ICO on
the Contractor within twelve months of such claim being notified by ICO to the
Contractor.

5.       CONTRACTOR TO INFORM ITSELF FULLY

5.1      The Contractor shall be deemed to have examined all the Sites (other
than those Sites specifically identified in Schedule 8 as not having been
examined as of the date of this Agreement). No claim from the Contractor for
additional payment will be allowed on the grounds of misinterpretation of any
matter relating to those Sites which have been examined, unless ICO shall make
any material change (other than in response to, or as may be made to meet, any
of the requirements of the Contractor) to the relative positioning of the RFTs
and the main hub building located at any such Site from those as shown by the
latest plans of such Sites provided by ICO to the Contractor prior to the date
of this Agreement. This clause 5.1 shall not affect ICO's obligations under
clause 12.3.

5.2      ICO and the Contractor acknowledge that as at the date hereof the
locations of certain intended Sites are not yet determined by ICO and that
forthwith after the location of such Sites has been determined by ICO, ICO shall
inform the Contractor of such location(s) and provide equivalent information to
that provided in respect of the other Sites previously specifically identified
and arrange for the Contractor to have the opportunity to examine such Sites. To
the extent that any Site specific conditions or requirements could not
reasonably have been anticipated by the Contractor at any of such Sites, clause
9 shall apply.

6.       STANDARD OF THE WORKS

6.1      To the extent that the standard of the Works has not been specified in
this Agreement, the Contractor shall use good quality materials, techniques and
standards, and shall procure that the Works are at all times carried out:

         (a)      in an efficient, effective and safe manner and in accordance
                  with Good Industry Practice;

         (b)      in a way which is not likely to be injurious to health or
                  cause damage to property;

         (c)      in compliance with all relevant construction, environmental or
                  other regulations of any kind which relate to the Works to be
                  carried out on each Site; and

         (d)      without prejudice to paragraph (c) but subject always to the
                  provisions of clause 7, so far as relates to any of the
                  Deliverables, to a single standard which shall in a uniform
                  manner satisfy all of the qualifications and requirements
                  which are applicable in each of the countries, and/or any
                  other relevant regulatory requirements of any of the
                  countries, in which any of the Sites is located unless the
                  compliance with such uniform standard would, in any particular
                  country, conflict with the mandatory requirements in such
                  country in which event the latter standard shall prevail in
                  that country,

provided that in the event that any new regulation, qualification or requirement
which relates to the Works as described in paragraph (c) or (d) above shall be
issued and come into effect after the date hereof and compliance with such
regulation, qualification or requirement results in an obligation to introduce a
more onerous standard for the relevant Deliverable which as a consequence causes
an increase in the costs of the Contractor, clause 9 shall apply.

                                       10
<PAGE>   1777
6.2      ICO may, notwithstanding the foregoing provisions of this clause 6,
advise the Contractor that ICO does not require the Contractor to produce all or
any of the Deliverables or any aspect of them to any particular standard which
may be called for under clause 6.1(d) in relation to all or any of the Sites.
Any such notification shall not relieve the Contractor from the requirements of
clause 4.1.

7.       UNIFORM STANDARDS

7.1      If the Contractor shall reasonably consider that the provisions of
clause 6.1(d) shall impose a standard in relation to any particular Site which
is significantly more onerous than that imposed in relation to any other Site
and where compliance with such standard at the other Sites would not offer any
material benefits to ICO, the Contractor may by notice in writing request that
ICO waives compliance with such standard at those Sites at which such standard
is not a mandatory requirement. At the date of this Agreement the only such
instance identified by the Contractor which has been notified to ICO is the
requirement in Germany for certain emission control which it has been agreed may
be satisfied by an additional shielding box around the relevant equipment.

7.2      ICO shall consider any request made by the Contractor as referred to in
clause 7.1 in good faith and may at its discretion waive any particular
requirement in whole or in part and ICO may have regard in particular to the
anticipated consequences for its ability to use Spares of common design or
functionality at any of the Sites if the Deliverables are to be produced to
differing standards.

7.3      If ICO shall in any particular instance waive such a requirement as
shall be referred to in clause 7.1 and subsequently the standards shall change
in any other country to introduce a more onerous standard for the relevant
Deliverable which, as a consequence, causes an increase in the costs of the
Contractor, then to the extent that such revised standard is the same as or no
more onerous than that applicable at the Site referred to in clause 7.1, the
Contractor shall not be entitled to a cost adjustment as referred to in the
proviso to clause 6.1.

8        UNILATERAL CHANGES

8.1      ICO, acting by the Supervising Officer, may unilaterally at any time by
written notice to the Contractor make changes to the IGFR and/or the Statement
of Work in any one or more of the following:

         (a)      method of shipment or packing; and

         (b)      other than in the circumstances referred to in clause 63, the
                  time or the place of inspection or delivery of the
                  Deliverables or Works to be provided under this Agreement;

provided that ICO shall endeavour to avoid unreasonable or impractical changes.

8.2      If any such change in clause 8.1 affects the cost of, or the time
required for, performance of any part of this Agreement, an equitable adjustment
shall be agreed to all or any of the Price (including, for the avoidance of
doubt, a reduction in the Price), the Top Level Milestone Schedule, the payment
terms, the IGFR and/or the Statement of Work (as the case may be). If necessary,
the relevant clause(s) in this Agreement shall also be amended in accordance
with clause 58.

8.3      The Contractor shall notify ICO in writing within thirty days from the
date of ICO's written notification of the required change if it considers that
an equitable adjustment under clause 8.2 should be made.

8.4      Where any materials or services are made obsolete or excess or cannot
be used as a result of a change pursuant to clause 8.1, ICO shall have the right
to prescribe the manner of disposal of such materials or services and the
Contractor shall account to ICO accordingly for any net proceeds

                                       11
<PAGE>   1778
realised as a consequence of the disposal (howsoever achieved) of such materials
or services. If the Contractor is unable to dispose of such materials or
services in the manner prescribed by ICO within a reasonable period (to be
determined by reference to the particular materials or services and the
circumstances) in spite of the Contractor's commercially reasonable efforts, the
Contractor shall be free to dispose of such materials or services using the best
method available with a view to maximising ICO's receipts in respect thereof.

Any such proceeds realised by the Contractor shall be accounted for to ICO in
cash within 30 days of receipt by the Contractor on a separate invoice basis.
Clause 17.5 shall be applicable to any such payment due to ICO. Subject to such
payment being made in accordance with this clause 8.4, no deduction from any
payment due from ICO to the Contractor pursuant to clause 16 shall be made on
account of the same. For the avoidance of doubt, any change under clause 8.1
shall not, except as specified in clause 8.2, affect any obligation of ICO to
the Contractor under clause 15.

8.5      Notwithstanding that ICO and the Contractor may not have agreed upon an
appropriate equitable adjustment under clause 8.2, the Contractor shall
implement the relevant change(s) required by ICO under clause 8.1 without delay.

8.6      For the purpose of this clause 8, any communication between the parties
shall be enforceable and binding upon the parties only if signed by the
Supervising Officer and the Contractor's Authorised Representative.

9        CHANGE CONTROL

9.1      Either party may at any time formally request in writing changes or
additions to this Agreement, the IGFR or the Statement of Work (in this clause
9, a "change"). The procedures set out in this clause 9 shall apply to any such
change whether it is ICO or the Contractor which shall propose the same. For the
avoidance of doubt, these procedures shall not apply where clause 8 applies.

9.2      If ICO shall propose a change to the scope of this Agreement or the
IGFR or the Statement of Work (other than those set out in clause 8), it shall
notify the Contractor thereof in writing specifying in as much detail as ICO
believes is practicable the nature of the relevant change including any
parameters which ICO considers desirable. Such a notice will only be effective
if signed by the Supervising Officer.

9.3      The Contractor shall respond promptly and in any event not more than 28
days after receiving notification from ICO under clause 9.2 (or as soon as
possible thereafter if the Contractor shall show a longer period is reasonably
required for such purpose) and state:

         (a)      any information known by any member of the NEC Team or any
                  relevant Sub-Contractor relating to the implications of such
                  change and the work required to be performed by the NEC Team
                  or any relevant Sub-Contractor; and

         (b)      any other information known by any member of the NEC Team or
                  any relevant Sub-Contractor which is likely to be material to
                  ICO's decision to pursue such addition or change or which ICO
                  reasonably requests for such purposes; and

         (c)      the estimated cost and time required to prepare a Detailed
                  Report as defined in clause 9.5.

9.4      If any member of the NEC Team or any relevant Sub-Contractor shall
consider that a change or addition to the IGFR and/or the Statement of Work is
in the interests of ICO and should be considered by ICO, the Contractor shall
notify ICO of such proposal in writing. Such notification shall specify in as
much detail as is practicable the nature of the change or addition that is being
proposed for ICO's consideration and shall state all information known by any
member of the NEC Team or any Sub-Contractor and any information (including but
not limited to the implications of any such change

                                       12
<PAGE>   1779
on the work required to be performed by any member of the NEC Team or any
relevant Sub-Contractor) which ICO might reasonably consider to be material to
its decision whether or not to ask the Contractor to pursue such addition or
change.

9.5      Following receipt of information under clauses 9.3 or 9.4, ICO shall
within a reasonable period give notice to the Contractor in writing whether or
not it wishes to consider the matter further whereupon the Contractor shall
provide promptly and in any event within not more than 90 days after the date of
such notice (or as soon as possible thereafter if the Contractor shall show a
longer period is reasonably required for such purpose) a detailed report to ICO
on the technical feasibility of such change or addition to the IGFR and/or the
Statement of Work and all consequential changes and effects for and upon the
ICONET Ground Facilities or the ICO System as a whole (including the timetable
and cost structure) which can reasonably be anticipated to flow therefrom (the
"Detailed Report").

If such Detailed Report is prepared as a result of a request made under clause
9.2, the Contractor shall be entitled to claim and receive a reasonable cost to
be agreed in advance with ICO for the preparation of such Detailed Report.

If such Detailed Report is prepared as a result of a request in response to a
proposal made pursuant to clause 9.4, the Contractor shall as a general
principle not be entitled to claim or receive any costs for the preparation of
the Detailed Report, though ICO recognises that the complexities of the relevant
circumstances may be such that an equitable cost sharing would be appropriate

9.6      The Detailed Report shall contain in addition to the information
supplied under clause 9.5:

         (a)      a full description of the work proposed to be performed;

         (b)      a firm fixed price;

         (c)      a schedule for the implementation of the work including the
                  effect (if any) upon the Master Level Schedule; and

         (d)      the required modifications to the IGFR and/or the Statement of
                  Work and (if any) to this Agreement in order to effect the
                  change.

9.7      ICO shall consider such Detailed Report referred to in clause 9.5 and
shall promptly and in any event within not more than 60 days after the date of
receipt of such Detailed Report (or as soon as possible thereafter if ICO shall
show a longer period is reasonably required for such purpose) request such
further information from the Contractor as ICO may reasonably require in
connection with the proposals and/or request the Contractor to make
modifications to the proposals contained in such Detailed Report as ICO may
reasonably require.

The Contractor shall promptly thereafter supply such information to ICO and/or
make such modifications as the Contractor considers appropriate.

9.8      If ICO considers that the proposed changes should be made, ICO shall so
notify the Contractor in writing and, following agreement by the parties as to
any required changes to this Agreement including any consequential changes in
all or any of the Price (including, for the avoidance of doubt, a reduction in
the Price), the Top Level Milestone Schedule, the payment terms, the IGFR and/or
the Statement of Work (as the case may be), the parties shall then record such
agreement in writing (a "Change Order").

9.9      For the purpose of this clause 9, any communication between the parties
and any Change Order shall be enforceable and binding upon the parties only if
signed by the Supervising Officer and the Contractor's Authorised
Representative.

[10]     Not used

                                       13
<PAGE>   1780
11       CONTRACTOR'S ABILITY TO APPOINT AND LIABILITY FOR SUB-CONTRACTORS

11.1     The Contractor will ensure that the Works are carried out in such a
manner as will fulfil the IGFR and the Statement of Work as amended from time to
time in accordance with the terms of this Agreement using the other members of
the NEC Team as the Principal Sub-Contractors to carry out the Works. In
accordance with the terms of this clause, the Contractor and its Sub-Contractors
may sub-contract such elements of the Works as they consider to be appropriate
but the Contractor shall remain fully responsible for the performance of this
Agreement, the preparation and delivery of the Deliverables and the completion
of the Works which are scheduled to be completed by the relevant Top Level
Milestones notwithstanding any default or failure to perform by any
Sub-Contractors.

11.2     Before any Sub-Contractor is appointed (whether directly by the
Contractor or indirectly by any other person who is a sub-contractor) to carry
out any part of the Works (other than the supply of commodity or stock items
which does not involve the disclosure to such Sub-Contractor of Confidential
Information of or relating to ICO or any aspect of the ICO System), the
Contractor shall notify ICO in writing of the name and intended scope of work of
each sub-contractor proposed to be engaged to carry out any Works. ICO may, on
reasonable grounds, reject any proposed sub-contractor (but shall not be
required to set out in detail its reasons for any such rejection) and any such
rejection shall not give the Contractor the right for any claim for delay in the
Master Level Schedule. If ICO does not notify the Contractor of its rejection of
a proposed sub-contractor within 15 days (or such longer period as the parties
may agree) of receipt of the Contractor's notice of intention to engage such
proposed sub-contractor (together with the scope of work referred to above), the
proposed sub-contracting arrangement may, subject to clause 11.3, be entered
into.

11.3     Prior to concluding any sub-contracting arrangements as referred to in
clauses 11.1 and 11.2 the Contractor shall, unless ICO otherwise specifically
requires, submit the following:

         (a)      a detailed statement of the works to be sub-contracted, if
                  this should vary materially from that supplied under clause
                  11.2; and

         (b)      satisfactory directly enforceable confidentiality and other
                  undertakings between the prospective Sub-Contractor and ICO in
                  a reasonable form provided by ICO within 30 days of the date
                  of this Agreement.

11.4     If ICO reasonably requests the Contractor to procure the change of any
personnel allocated by the Contractor or any Sub-Contractor to work in
connection with the provision of the Deliverables, then the Contractor shall
ensure that such personnel cease to be actively engaged in any Works.

The Contractor shall ensure that, when on the premises of ICO, any of its agents
or sub-contractors or the Site Operators, the personnel of the Contractor and
its Sub-Contractors comply with any rules and regulations which are applicable
generally to staff or visitors on such premises.

11.5     In performing its obligations under or in connection with this
Agreement (other than as provided in the Statement of Work as at the date of
this Agreement) the Contractor shall, and shall procure that Sub-Contractors
shall, use its/their best endeavours to ensure that it does/they do not:

         (a)      create or impose any requirements in relation to the Works
                  which are incapable of being fulfilled at reasonable cost by
                  any third parties; and/or

         (b)      develop its/their own components if satisfactory components
                  are available from any third parties at a lower cost,

unless such requirements or development can be justified on an objective basis.

11.6     The Contractor will, and will ensure that the Sub-Contractors will,
provide work space to a standard commensurate with efficient work practices for
any ICO Staff whose attendance at the

                                       14
<PAGE>   1781
Contractor's or such Sub-Contractor's places of work as is needed to advise or
test or otherwise participate in the achievement of the terms of this Agreement.

12       ICO OBLIGATIONS

12.1     Without prejudice to ICO's other obligations under this Agreement, ICO
shall provide the Contractor with such information, services and equipment as
specified in the Statement of Work. ICO shall also provide to the Contractor
access to SANs and/or NMCs in accordance with Section 4.1.5 of Annex 7B of the
Statement of Work. In the event that ICO shall fail to provide such access, the
procedures and processes described in Section 4.1.6 of Annex 7B shall be
applied. To the extent that ICO's failure in any material respect to, otherwise,
comply with its obligations under this clause 12.1 shall adversely and directly
affect the ability of the Contractor to comply with the Top Level Milestone
Schedule and any applicable Top Level Milestones, to the extent the Contractor
can demonstrate the same to be required, the Top Level Milestone Schedule and
Top Level Milestones shall be adjusted in an equitable manner.

12.2     ICO shall be responsible for securing any applicable official operating
licenses or authorisations required by central government authorities relating
to the civil works at the Sites, and for the operation or testing, of the ICONET
Ground Facilities or any part of the ICO System (excluding any equipment
certifications), and ICO shall pay any necessary taxes or licence fees imposed
as a condition for obtaining the same and use its reasonable endeavours to
ensure that the Contractor will not be materially delayed in fulfilling any of
its responsibilities hereunder.

12.3     Subject to clause 25.2, ICO shall ensure that such preparations and
provisions are made at each of the Sites to meet the requirements specified in
Annex 3 of the Statement of Work. If such preparations and provisions are
inadequately carried out by ICO, other than by reason of such preparations and
provisions having been inadequately or incorrectly specified by the Contractor,
then any reasonable costs thereby incurred by the Contractor shall be
reimbursable in accordance with clause 17 to the Contractor and, to the extent
that it can demonstrate the same to be required, the Top Level Milestone
Schedule and Top Level Milestones shall be adjusted in an equitable manner. In
any other case the Contractor shall be responsible for carrying out, and for all
costs and expenses incurred in carrying out, any works required to correct
and/or supplement any inadequate or incorrect specifications and the Contractor
shall not be entitled to any adjustment in the Top Level Milestone Schedule.

12.4     In order to assist the Contractor in its Site installation activities
ICO shall, upon the request of the Contractor, provide reasonable assistance to
the Contractor in the co-ordination of the Contractor's activities with those of
the Site Operators and other ICO Staff.

13       QUALITY ASSURANCE

13.1     The Contractor shall operate a system of quality management and control
which satisfies the requirements set out in Annex 4 of the Statement of Work.

13.2     The Contractor shall satisfy ICO that all relevant manufacturing
processes are controlled and are defined adequately by process specifications
and drawings, work instructions and procedures. Quality controls to be operated
by the Contractor shall include but not be limited to:

         (a)      satisfactory control of sources of supply and materials, piece
                  parts and components;

         (b)      conformance to manufacturing specifications, drawings,
                  documented procedures and work instructions;

         (c)      adequate documentary evidence including certification of
                  completion of state inspection and test routines;

         (d)      investigation of defects and control of corrective action;

                                       15
<PAGE>   1782
         (e)      satisfactory storage, handling and delivery of material; and

         (f)      control and calibration of inspection, measuring and test
                  equipment.

13.3     Subject to applicable legal restrictions in the country of manufacture,
ICO reserves the right at its discretion for ICO Staff to inspect visually all
of the Deliverables and to witness any or all quality assurance tests and
inspection procedures and examine quality assurance records relating thereto at
any of the Sites or any of the locations where the NEC Team or any
Sub-Contractors (excluding any Sub-Contractor who shall not have been required
to enter into a direct undertaking with ICO pursuant to clause 11) carries out
the Works. ICO shall give the Contractor 7 days written notice of its intention
to make any inspection or to witness any quality assurance tests or to examine
any quality assurance records.

13.4     The Contractor shall promptly upon ICO's request make available to ICO
at the relevant place of inspection or at such other locations as may be
mutually agreed all quality assurance records and other pertinent manufacturing
data, including any drawings, inspection and test data, which are reasonably
necessary to enable ICO to satisfy itself as to the Contractor's compliance with
the quality assurance standards called for under the Statement of Work.

13.5     Any inspection and/or test and/or examination made or attended by ICO
Staff under this clause shall not relieve the Contractor of its responsibility
to conform to the requirements of this Agreement.

14       ICONET INTEGRATION

14.1     The Master ICONET Integration Plan Document which is referred to in
Annex 9 of the Statement of Work (the "MIIPD") describes the range of ICO System
integration tests and services which the Contractor has granted ICO the option
to request the Contractor to carry out (the "ICONET Integration"). Table 1 of
Annex 9 lists the various campaigns which are more fully described in the MIIPD
(the "ICONET Integration Campaigns") and the associated management that may be
required of the Contractor (the "Associated Management"). Table 1 of Annex 9
also sets out the number of man-months which the Contractor has offered to
provide, all of which may be adjusted in accordance with clause 14.6. The
schedule for the completion of such services is set out in Table 2 of Annex 9
(the "ICONET Integration Schedule"). Annex 9 also establishes the additional
responsibilities associated with the performance of ICONET Integration which the
parties agree to assume if ICO elects to exercise its option.

14.2     ICONET Integration shall be carried out in two phases. The first phase
shall commence in 1998 (the "First Integration Phase") and the second phase
shall commence in 1999 (the "Second Integration Phase"). During the period from
the execution of this Agreement until, in the case of the First Integration
Phase, 15 July 1997 and, in the case of the Second Integration Phase, 30
November 1997, ICO and the Contractor shall consult regarding the detailed
definition of the respective ICONET Integration Campaigns. The Contractor will
provide all reasonable assistance to ICO to enable ICO to make an informed
judgement as to whether or not to exercise the option in accordance with clause
14.3.

14.3     ICO may exercise the option contained in clause 14.1 for the First
Integration Phase by notifying the Contractor in writing by no later than 15
July 1997. ICO may subsequently exercise the option contained in clause 14.1 for
the Second Integration Phase by notifying the Contractor in writing by no later
than 30 November 1997.

14.4     The Contractor shall, within 2 months of the receipt of each of ICO's
notifications pursuant to clause 14.3, submit specific proposals to ICO which
will include:

         (a)      the detailed definition of the ICONET Integration Campaigns
                  which ICO has elected to be performed by the Contractor in
                  accordance with clause 14.3;

                                       16
<PAGE>   1783
         (b)      the qualifications and numbers of personnel and the resultant
                  man-months which the Contractor proposes for each ICONET
                  Integration Campaign and, for the purpose of clause 14.16, the
                  minimum number of man-months for each ICONET Integration
                  Campaign (which shall never exceed 25% of the total proposed
                  man-months for each ICONET Integration Campaign);

         (c)      the location(s) at which each ICONET Integration Campaign is
                  proposed to be performed and the resultant travel costs;

         (d)      the duration and sequence for the performance and completion
                  of each ICONET Integration Campaign together with an amended
                  ICONET Integration Schedule;

         (e)      the content and price of the documents specified to be
                  provided by the Contractor in accordance with Section 9 of
                  Annex 9 which shall constitute the Deliverables for the
                  purpose of this clause 14 but, for the avoidance of doubt, not
                  for the purpose of the Acceptance Criteria set out in Annex 10
                  of this Agreement;

         (f)      the special test equipment required for each ICONET
                  Integration Campaign identifying those items of special test
                  equipment to be provided by ICO which are set out in Table 3
                  of Annex 9, together with the dates by which, and the
                  locations to which ICO supplied test equipment is to be
                  provided for each ICONET Integration Campaign;

         (g)      the relevant Associated Management man-months required by the
                  Contractor for the management of the ICONET Integration
                  Campaigns; and

         (h)      the additional resources described in Section 3.8 of Annex 9
                  (the "Additional Resources") and the Contractor's best
                  estimate of its price for providing such Additional Resources.
                  The extent and price of such Additional Resources will be
                  subject to reduction to the extent that ICO elects to provide
                  some or all of such Additional Resources.

14.5     The Contractor will, if requested by ICO, amend its proposals submitted
pursuant to clause 14.4 to meet the reasonable requirements of ICO.

14.6     ICO may, after receipt of each of the Contractor's proposals pursuant
to clause 14.4, issue a Change Order to the Contractor. For the First
Integration Phase, ICO may issue such Change Order in a timely manner and in any
event no later than 31 January 1998. For the Second Integration Phase, ICO may
issue a further Change Order in a timely manner and in any event no later than
31 May 1998. Such Change Orders shall specify:

         (a)      the ICONET Integration Campaigns to be undertaken by the
                  Contractor;

         (b)      the qualifications and numbers of personnel and the resultant
                  man-months for each ICONET Integration Campaign, including for
                  the purposes of clause 14.16 the minimum number of man-months
                  for each ICONET Integration Campaign to be paid for by ICO;

         (c)      the location(s) at which each ICONET Integration Campaign is
                  to be performed and the total resultant travel costs;

         (d)      the duration and sequence for the performance and completion
                  of each ICONET Integration Campaign together with the amended
                  ICONET Integration Schedule;

         (e)      the content and price of the Deliverables;

                                       17
<PAGE>   1784
         (f)      the special test equipment required for each ICONET
                  Integration Campaign which ICO will make available for use by
                  the Contractor;

         (g)      the Associated Management man-months;

         (h)      the Additional Resources (if any), and the times by which and
                  the locations at which ICO will provide such Additional
                  Resources to the Contractor for each ICONET Integration
                  Campaign at its own cost; and

         (i)      the Additional Resources which the Contractor will provide for
                  each ICONET Integration Campaign and the associated cost (if
                  any).

The Contractor shall accept such Change Orders provided that in each case (a),
(b), (d), (e), (f), (g) and (i) are generally consistent with, and do not exceed
the Contractor's proposals pursuant to clause 14.4. In any other event, ICO and
the Contractor shall mutually agree the Change Orders in accordance with clause
9.

14.7     The ICONET Integration services shall be carried out in accordance with
Annex 9 and any Change Orders agreed in accordance with clause 14.6. Such
services shall constitute the Works for the purposes of this clause 14 but, for
the avoidance of doubt, shall not be Works for the purposes of the Acceptance
Criteria set out in Annex 10 of this Agreement.

14.8     Within 6 months of the date of this Agreement the parties shall agree a
reporting procedure for all Works. Such procedures shall include weekly written
reports by the Contractor concerning the man-months expended, expenses incurred
by the Contractor, and the progress of each ICONET Integration Campaign.

14.9     The Contractor shall, in a timely manner, inform ICO if the Contractor
anticipates that the remaining man-months for an individual ICONET Integration
Campaign will be insufficient to permit the completion of such ICONET
Integration Campaign. ICO may direct the Contractor in writing to reallocate
man-months from other ICONET Integration Campaigns so as to permit the
Contractor to complete such ICONET Integration Campaign. If ICO shall instruct
the Contractor to modify the scope of, or not to complete an ICONET Integration
Campaign, the Contractor shall be responsible for performing such ICONET
Integration Campaign only to the extent so instructed by ICO. If ICO gives no
directions to the Contractor, then the Contractor shall be entitled to cease
carrying out the relevant ICONET Integration Campaign once all the remaining
applicable man-months have been expended. In the event that ICO directs that
man-months are to be reallocated to any ICONET Integration Campaign from other
ICONET Integration Campaign(s), the Contractor shall advise ICO immediately in
writing as to the anticipated effects upon the Contractor's performance and
completion of the remaining ICONET Integration Campaigns. If ICO does not
provide instructions as to how to proceed within 5 days (or such other time as
may be mutually agreed) of being informed by the Contractor of the effect upon
the remaining ICONET Integration Campaigns the Contractor shall be obliged to
expend only the remaining available man-months. The total number of man-months
specified in the Change Orders agreed in accordance with clause 14.6 shall not
be exceeded. If either party wishes to apply further effort beyond the total
number of man-months specified in the Change Order agreed in accordance with
clause 14.6, then the requesting party shall propose a further Change Order for
consideration and agreement by the other party in accordance with clause 9.

14.10    The Contractor will submit invoices to ICO, and ICO shall pay the same
in United States Dollars, subject to clauses 14.11 and 14.12, payable within 30
days after receipt of valid invoices in accordance with clause 17 as follows:

         (a)      man-months - monthly in arrears for the man-months that have
                  been expended by the Contractor using the rate specified in
                  Appendix 3 to Schedule 9;

                                       18
<PAGE>   1785
         (b)      travel costs - monthly in arrears for the actual travel costs
                  incurred by the Contractor (all travel shall be by economy or
                  equivalent class);

         (c)      Additional Resources - monthly in arrears for the actual costs
                  incurred by the Contractor; and

         (d)      Deliverables -

                  (i)      ICONET Integration Requirements (Final) - after
                           approval by ICO, 40% of the price of the
                           Deliverables;

                  (ii)     ICONET Integration Plan (Final) - after approval by
                           ICO, 30% of the price of the Deliverables; and

                  (iii)    ICONET Integration Report (Formal) - after approval
                           by ICO, 30% of the price of the Deliverables.

14.11    All invoices for man-months shall identify the ICONET Integration
Campaign to which they relate the names of the relevant personnel deployed by
the Contractor together with the total time, rate, and the relevant locations
where the ICONET Integration activities were performed. All invoices for travel
shall be accompanied by actual tickets (or copies thereof). All invoices for
Additional Resources provided by the Contractor shall be accompanied by a
summary of the Additional Resources used and total actual amount paid by the
Contractor for such Additional Resources.

14.12    In substantiation of its invoices the Contractor will keep accurate
records of the number of personnel and the man-months which it has devoted to
each of the ICONET Integration Campaigns and Associated Management. Such records
shall be submitted to ICO on a monthly basis for ICO's review. ICO may require
the Contractor to provide additional information if, in ICO's reasonable
opinion, the information provided by the Contractor is incomplete or is
insufficient for the purpose of substantiating the associated invoice. No
invoices for any Works shall be payable by ICO unless such records have been
submitted to ICO in accordance with this clause and the relevant invoice shall
not be due and payable by ICO unless such records have been submitted at least
15 days before the date such invoice is due and payable.

14.13    If the Contractor should exceed the total number of man-months for any
or all of the ICONET Integration Campaigns or the Associated Management, the
travel costs, or the costs for Additional Resources which are specified in the
Change Orders agreed in accordance with clause 14.6 (except as may have been
agreed by ICO in accordance with clause 14.9 or subsequent Change Order(s)),
then ICO shall not be obliged to make any increase in the price payable for the
ICONET Integration.

14.14    In the event that ICO provides the Additional Resources in accordance
with clause 14.6(h) and the Contractor delays or cancels the activities for
which such Additional Resources were provided (unless the delay or cancellation
was the result of an event outside the reasonable control of the Contractor),
ICO shall be entitled to recover any actual costs which result from such delay
or cancellation by the Contractor in accordance with clause 17.

14.15    The Contractor will maintain and update the MIIPD and the ICONET
Integration Schedule. Either party may propose changes to the MIIPD or the
ICONET Integration Schedule. The ICONET Integration Schedule shall be adjusted
to reflect changes to activities or events within the Master Level Schedule
which directly affect the performance or completion of ICONET Integration
activities. All changes to the MIIPD and the ICONET Integration Schedule shall
be subject to the approval of ICO.

14.16    ICO shall be entitled, at any time during the Contractor's performance
of the Works, to direct the Contractor by written notice to cease all or any
part of such Works. The Contractor and all relevant Sub-Contractors shall,
within 15 days after the date of the notice (or such later date as may be
specified by

                                       19
<PAGE>   1786
ICO in such notice), cease such Works in an orderly manner (or in such manner as
may reasonably be specified by ICO) so as to minimise disruption to any other
integration activities being carried out and so as to preserve the results of
the Works agreed to be performed in accordance with Annex 9 and any Change
Orders pursuant to clause 14.6. The Contractor shall be entitled to:

         (a)      reimbursement of all costs incurred up to the date specified
                  by ICO to cease activities provided that such costs do not
                  exceed the amount associated with the ICONET Integration
                  Campaign(s) so terminated; and

         (b)      if such notice results in the Contractor receiving for each
                  ICONET Integration Campaign terminated by such notice less
                  than the amount payable for the minimum man-months agreed in
                  accordance with the relevant Change Order pursuant to clause
                  14.6, then the Contractor will be entitled to claim the
                  difference between the actual man-months expended by the
                  Contractor and the amount payable for the minimum man-months
                  for each such terminated ICONET Integration Campaign.

Other than the sums referred to in (a) and (b) above, the Contractor shall have
no other claims of any nature arising from the termination by ICO of such
activities. For the avoidance of doubt, all amounts payable by ICO in accordance
with this clause 14.16 (except for any difference between the actual man-months
expended by the Contractor and the minimum man-months agreed in accordance with
the relevant Change Order pursuant to clause 14.6) shall be substantiated by
such evidence as is to be provided for monthly invoices in accordance with
clause 14.12.

14.17    If any invoice submitted to ICO pursuant to clause 14.10 shall be
overdue for payment by ICO for 60 days or more, unless ICO has disputed such
invoice on reasonable grounds and has notified the Contractor in writing of such
dispute, the Contractor shall be entitled to stop performing all or any of the
Works.

14.18    The Contractor will co-operate with ICO Staff in the performance of
ICONET Integration activities pursuant to this clause 14 or any additional
integration activities which ICO may choose to carry out.

14.19    For the avoidance of doubt, ICO shall not be responsible, for the
purposes of this clause 14, for the importation by the Contractor or any
Sub-Contractor of any installation and test tools, equipment, materials or other
effects (including personal) in connection with this clause 14.

14.20    The following clauses of this Agreement shall not apply to the Works
provided in accordance with this clause 14 and Annex 9 of the Statement of Work:
4.1 (a) to (f) inclusive; 4.1 (h), (i) and (n); 4.2 to 4.5 inclusive, 4.7, 4.10,
5, 6.1 (d), 6.2, 7, 8, 11.5, 12.3, 13.2 to 13.5 inclusive, 15, 16.2 to 16.17
inclusive, 18, 19, 22, 25 to 40 inclusive, 44 to 50 inclusive, 54, 55.4 and 56.

14.21    For the purposes of this clause 14, the following clauses of this
Agreement are amended as follows;

         (a)      clause 4.1 (l): "it will provide, and will ensure that its
                  Sub-Contractors provide, suitably skilled and appropriately
                  experienced personnel required to fulfil the objectives of
                  Annex 9 of the Statement of Work agreed in accordance with the
                  relevant Change Order pursuant to clause 14.6 and clause 14";

         (b)      clause 4.6: "Where the Contractor shall be in breach of any
                  aspect of its warranties and undertakings set out in clause 4
                  relating to ICONET Integration, except for those parts of
                  clause 4 specifically excluded in clause 14.20 or as amended
                  by clause 14.21, the Contractor shall be responsible, at its
                  own cost, for rectifying the consequences of any such breach";
                  and

         (c)      clause 11.1: "The Contractor will ensure that the Works are
                  carried out in such a manner as will fulfil Annex 9 of the
                  Statement of Work as amended from time to time in

                                       20
<PAGE>   1787
                  accordance with the terms of this Agreement, using the other
                  members of the NEC Team as the Principal Sub-Contractors to
                  carry out the Works. In accordance with the terms of this
                  clause, the Contractor may sub-contract such elements of the
                  Works as they consider to be appropriate but the Contractor
                  shall remain fully responsible for the performance of the
                  Works, the preparation and delivery of the Deliverables and
                  the completion of the Works which are scheduled to be
                  completed in accordance with the ICONET Integration Schedule
                  notwithstanding any default or failure to perform by any
                  Sub-Contractors."

PART C - PRICE AND PAYMENT

15       PRICE

15.1     ICO shall pay an aggregate total price of US$xxx for the complete
performance by the Contractor of all of its obligations under this Agreement
together with a further sum of US$xxx (in respect of freight and insurance as
referred to in the Pricing Schedule), which amounts shall be subject to
adjustment only in respect of (i) changes agreed under clause 9 and (ii) the
cost of any Option items upon exercise of the relevant Option or other items or
services purchased under clause 46; (such aggregate amount, as so adjusted,
being referred to as the "Price"). Any Instalment payment made shall discharge
the relevant portion of the Price and shall not be reclaimable by ICO but
without prejudice to ICO's right to claim damages and/or indemnity in accordance
with the provisions of this Agreement in the event of any breach by the
Contractor.

15.2     The Price shall be payable in Instalments as set out in the Payment
Schedule, but the obligation of ICO to pay any Cash Invoice (other than any Cash
Invoices relating to the initial Instalment) shall be subject to clauses 15.3
and 16.

15.3     If the Contractor fails to achieve a Top Level Milestone by or within
the period of 21 days commencing on the Milestone Date, then ICO may defer
payment of any Cash Invoice which shall as a consequence become a Deferred Cash
Invoice.

ICO must notify the Contractor if it considers on any reasonable grounds that
any Top Level Milestone has not been achieved by the relevant Milestone Date
and, having done so, shall, subject to the provisions of this clause 15.3 and in
particular to the Contractor's entitlement to contest ICO's entitlement to
impose the deferral, be entitled to treat all Cash Invoices which would, but for
this clause 15.3, have a Relevant Payment Date more than 21 days after the
relevant Milestone Date as Deferred Cash Invoices under this clause 15.3. Until
the relevant Top Level Milestone shall have been achieved, Cash Invoices shall
continue to be issued by the Contractor, but shall automatically become Deferred
Cash Invoices and shall not be payable so long as they remain Deferred Cash
Invoices.

The Contractor must notify ICO by facsimile within 10 days of receiving such
notification from ICO of whether it disputes ICO's entitlement to impose the
deferral. If the Contractor does not so notify ICO, then it shall be deemed to
accept that the deferral is being properly imposed by ICO in accordance with the
terms of this Agreement and the due date for payment of each of the Deferred
Cash Invoices shall be 21 days following the date upon which the deferral ends
(or, if later, the date 30 days after the receipt of the relevant Deferred Cash
Invoice).

If the Contractor notifies ICO that the imposition of the deferral is disputed
by the Contractor on reasonable grounds, then ICO shall upon the day falling 30
days after the date of receipt of each Cash Invoice being treated by ICO as a
Deferred Cash Invoice pay the amount of the same into the Escrow Account. The
due date for payment of each such invoice shall (if there is a Determination
that the deferral was properly imposed in accordance with the terms of this
Agreement) be 21 days following the date upon which the deferral ends (or, if
later, the date 30 days after the receipt of the invoice) or (if there is a
Determination that the deferral was not properly imposed in accordance with the
terms of this Agreement) the original Relevant Payment Date for such invoice
(and ICO shall have an obligation to pay interest to the Contractor pursuant to
clause 16.10 accordingly).

                                       21
<PAGE>   1788
Any deferral pursuant to this clause 15.3 shall end as soon as the relevant Top
Level Milestone shall have been achieved and any Deferred Cash Invoices shall
thereupon cease to be Deferred Cash Invoices.

15.4     For the avoidance of doubt, all references in this clause 15 to a
Milestone Date shall refer to the adjusted timing of such Milestone Date as
Determined pursuant to any of the provisions in this Agreement which require or
permit an alteration to the timing of achievement of Top Level Milestones.

15.5     For the avoidance of doubt, the Price is fixed, including, without
limitation the following:

         (a)      all place of origin taxes; except that if the place of origin
                  is in the same country as the Site at which the relevant
                  Deliverable is to be installed or the relevant service forming
                  part of the Works is to be supplied, then the Net Cost shall
                  be calculated and the Additional Amount shall be added the
                  price as set out below. The "Net Cost" means:

                  (i)      the part of the Price attributable to such
                           Deliverable or service; less

                  (ii)     in the amount of any export duties that the
                           Contractor would have incurred on the export from the
                           place of origin of such Deliverable or service if it
                           had been exported.

                  The "Additional Amount" means:

                  (i)      the amount of any Value Added Tax or other similar
                           tax which would have been imposed by the laws of that
                           country on a supply of that Deliverable or service to
                           ICO for a price equal (on a tax exclusive basis) to
                           the Net Cost less

                  (ii)     the amount (if any) of such export duties taken into
                           account in determining the Net Cost.

         (b)      any charges relating to export licences, certificates of
                  origin, export document preparation, and export packaging;

         (c)      insurance (including transit through to Sites, storage on
                  Site, installation and testing);

         (d)      shipping and transportation costs;

         (e)      employee and employee-related costs of the Contractor and
                  Sub-Contractors;

         (f)      all necessary licences, fees or other charges necessary for
                  the performance of the Works except:

                  (i)      licences (and their associated costs) that the Site
                           Operator requires for its operation of the ICONET
                           Ground Facilities; and

                  (ii)     any local and/or central or other governmental
                           approvals and permits for any civil work,

                  (which licences, approvals and permits referred to in
                  paragraphs (i) and (ii) above shall be at the cost of ICO);

         (g)      all taxes on the goods originally sold or provided by the
                  Contractor to ICO under this Agreement (EXCEPT import duty and
                  customs duties, including Value Added Tax or any similar sales
                  tax (which excluded taxes shall be paid in accordance with
                  clause 28) and ALL VALUE ADDED TAX AND ANY SIMILAR SALES TAX
                  ON SERVICES WHICH ARE NOT RECOVERABLE BY THE CONTRACTOR OR ANY
                  SUB-CONTRACTOR OR ANY OF THEIR RESPECTIVE

                                       22
<PAGE>   1789
                  AFFILIATES) incurred by the Contractor and Sub-Contractors and
                  their employees associated with performing any part of the
                  Works in the country where the relevant Deliverables are to be
                  installed or where the services are to be provided; and

         (h)      any penalties or fines incurred by the Contractor and
                  Sub-Contractors or their employees.

16       PAYMENT AND PAYMENT TERMS

16.1     The payment by ICO of any moneys to the Contractor in respect of this
Agreement shall not be deemed to be acceptance by ICO of any Works or
Deliverables in respect of which such moneys are paid.

16.2     The Contractor shall submit a Cash Invoice (and a copy invoice) to ICO
for the Cash Portion of each Instalment of the Price payable in accordance with
the Payment Schedule or clause 14 as appropriate. Each Cash Invoice shall be
accompanied by appropriate supporting paperwork. In any case where the
Instalment becomes due on shipment of any Equipment, this paperwork shall
include a copy of the bill of lading (or other equivalent document).

16.3     All of the Contractor's Cash Invoices, other than any Deferred Cash
Invoices during the period of the relevant deferral pursuant to clause 15.3,
shall, provided that the same shall be in accordance with the requirements of
this Agreement, be due and payable in United States Dollars by ICO within 30
days of the date of receipt by ICO of the Cash Invoice (the "Relevant Payment
Date").

16.4     Any invoices which are to be submitted to ICO pursuant to this
Agreement shall be addressed to ICO Global Communications Holdings BV,
Drentestraat 20, 1083 HK, Amsterdam, Netherlands with a copy to ICO Services
Limited, 1 Queen Caroline Street, London W6 9BN.

16.5     In the event that ICO disputes its liability to pay the whole or any
part of a Cash Invoice or a Deferred Cash Invoice, ICO will advise the
Contractor of its dispute and (in reasonable detail) the grounds therefor
(including the Instalment(s) to which the dispute relates and the Disputed
Percentages of it or them) by no later than nine days before the Relevant
Payment Date (or, the date which would, if the invoice were not a Deferred Cash
Invoice, have been its Relevant Payment Date). For the avoidance of doubt, in
the case of a dispute relating to an invoice only the Disputed Percentage of the
Cash Portion shall be treated as disputed in relation to the relevant Cash
Invoice or Deferred Cash Invoice.

For the avoidance of doubt ICO shall by the Relevant Payment Date pay to the
Contractor those portions of any Cash Invoice which shall not be the subject of
a deferral pursuant to clause 15.3 and which are not in dispute and the parties
shall use reasonable efforts to resolve any dispute concerning the Disputed
Percentage of any Instalment.

16.6.    This clause 16.6 applies if at any time:

         (a)      ICO disputes its liability to pay an amount invoiced in good
                  faith by the Contractor in a Cash Invoice which appears on its
                  face to have been calculated and to be payable in accordance
                  with the Payment Schedule or clause 14, including without
                  limitation any Cash Invoice which ICO claims that it has the
                  right to defer pursuant to clause 15.3 unless the Contractor
                  accepts that claim; and

         (b)      that would result in the aggregate of all amounts so invoiced
                  which are then in dispute (each a "Disputed Amount" and
                  collectively "the Disputed Amounts", which expression shall
                  for the avoidance of doubt in relation to any Instalment
                  include only the Disputed Percentage of the Cash Portion and
                  not the Disputed Percentage of the Financed Portion, if any)
                  equalling or exceeding any Escrow

                                       23
<PAGE>   1790
                  Trigger Amount(s). If it would equal or exceed more than one
                  Escrow Trigger Amount, then the higher or highest shall be the
                  relevant one.

For the avoidance of doubt, any Cash Invoice issued by the Contractor being for
an amount not invoiced in good faith or which does not appear on its face to
have been calculated and to be payable in accordance with the Payment Schedule
or clause 14, as appropriate, shall not be payable by ICO unless and until ICO
agrees that the same shall have been properly issued and the requirement to pay
a Disputed Amount into the Escrow Account shall not apply in relation thereto.

If this clause 16.6 applies, then ICO shall (on the Relevant Payment Date for
the Cash Invoice or, in the case of a Deferred Cash Invoice, the due date for
payment of it) pay into the Escrow Account an amount sufficient to ensure that
the balance on the Escrow Account relating to Disputed Amounts under this Clause
16 (after deduction of any amounts which either ICO or the Contractor is then
entitled to have paid to it pursuant to clause 16.7) equals or exceeds the
relevant Escrow Trigger Amount.

16.7     The parties shall in the Escrow Agreement jointly instruct the Escrow
Agent to hold the balance on the Escrow Account in accordance with the relevant
provisions of this Agreement.

If there is a Determination, that any Disputed Amount or any part thereof is
payable to the Contractor (either because any deferral under clause 15.3 was not
in accordance with the terms of this Agreement, the dispute was otherwise
ill-founded, relevant outstanding Works giving rise to a disputed deferral have
been completed as referred to in clause 15.3 or the cause of the dispute has
been remedied), then ICO shall join within 5 days of the date of the
Determination with the Contractor in instructing the Escrow Agent to make a
payment out of the Escrow Account to the Contractor of any amount held in the
Escrow Account in respect of that Disputed Amount (or the appropriate part
thereof), together with any interest earned on that amount. This payment shall
be applied in or towards satisfaction of any liability of ICO in respect of the
relevant Disputed Amount (and interest accrued pursuant to clause 16.10 upon it)
pursuant to clause 16.8 or, as the case may be, clause 16.9.

If there is a Determination that any Disputed Amount or any part thereof is not
payable by ICO to the Contractor or that ICO was entitled to make a deferral
pursuant to clause 15.3 which the Contractor has challenged, then the Contractor
shall join within 5 days of the date of the Determination with ICO in
instructing the Escrow Agent to make a payment out of the Escrow Account to ICO
of any amount held in the Escrow Account in respect of that Disputed Amount (or
the appropriate part thereof) or, as the case may be, that deferral, together in
either case with any interest earned on that amount in the Escrow Account.

16.8     If there is a Determination that any dispute raised by ICO against all
or part of an invoice was ill-founded or that a deferral pursuant to clause 15.3
was not in accordance with the terms of this Agreement, then ICO shall within 9
days of the date of the Determination pay to the Contractor any balance of the
Disputed Amount found by the Determination to be payable to the Contractor
together with interest thereon calculated in accordance with clause 16.10, after
taking account of any payment to be made to the Contractor out of the Escrow
Account pursuant to clause 16.7 as a result of that Determination and the
Relevant Payment Date of the Disputed Amount in this case shall be the date 30
days after the date of ICO's receipt of the original Cash Invoice.

16.9     If there is a Determination that payment be made to the Contractor for
any reason other than as is referred to in clause 16.8, then ICO shall within 9
days of the date of the Determination pay to the Contractor any balance of the
Disputed Amount found by the Determination to be payable to the Contractor
together with interest thereon calculated in accordance with clause 16.10, after
taking account of any payment to be made to the Contractor out of the Escrow
Account pursuant to clause 16.7 as a result of that Determination. Interest
shall run pursuant to clause 16.10 as if the Relevant Payment Date were the date
of the Determination. A payment by ICO pursuant to this clause 16.9 shall not
prevent the Contractor from continuing to seek a Determination as referred to in
clause 16.8 that the dispute was ill-founded or that the deferral was not
properly imposed under clause 15.3

                                       24
<PAGE>   1791
(which Determination would entitle it to the payment of interest pursuant to
clause 16.10 from the original Relevant Payment Date).

16.10    Any sums not paid by one party when due shall bear interest from the
Relevant Payment Date, or if different or if there is no Relevant Payment Date
the due date for payment, until the other party receives payment (whether before
or after judgement) at the Agreed Rate. Such interest shall accrue from day to
day on the basis of a 360 day year and shall be payable with the sum to which it
relates and, if that sum is overdue, on demand.

16.11    All payments to be made under this Agreement to the Contractor shall be
made:

         (a)      for value on the Relevant Payment Date (or such other date as
                  may apply pursuant to this Agreement) from ICO to such account
                  at such bank in Tokyo as the Contractor may specify from time
                  to time; and

         (b)      in full without any set-off, withholding, deduction or
                  counterclaim of any kind, but for the avoidance of doubt, this
                  is without prejudice to clause 16.12.

16.12    If at any time ICO considers that the Contractor is in default of its
obligations under this Agreement and as a result an amount is due to be paid by
the Contractor to ICO, then if the amount involved exceeds $1 million and if ICO
has given the Contractor no less than 9 days' notice of its intention to do so,
ICO may deduct the amount claimed from any payment that it is making to the
Contractor of any one or more Cash Invoice(s) then or subsequently falling due
for payment and instead pay the whole of that amount into the Escrow Account.

If there is a Determination that all or part of the amount claimed by ICO, in
respect of which the payment into the Escrow Account was made, was due to ICO by
the Contractor, then the Contractor shall within 5 days of the Determination
join with ICO in instructing the Escrow Agent to pay out of the Escrow Account
to ICO the amount so due, together with interest earned on that amount in the
Escrow Account; and upon the Contractor joining in that instruction the
liability which led to the payment into the Escrow Account being made by ICO
shall be discharged in an amount equal to the amount in respect of which that
instruction is given, whether or not the Escrow Agent actually makes the
payment.

If there is a Determination that all or part of the amount claimed by ICO and
paid into the Escrow Account was not due to ICO, then ICO shall within 5 days of
the Determination join with the Contractor in instructing the Escrow Agent to
pay out of the Escrow Account the amount which was not so due, together with
interest earned on that amount in the Escrow Account and ICO shall pay to the
Contractor an additional amount such that the Contractor receives in total the
amount which it should have been paid on the Relevant Payment Date for the Cash
Invoice(s) against which ICO made such deductions when paying monies into the
Escrow Account together with interest on such amount at the Agreed Rate from the
Relevant Payment Date up to the date of actual payment.

16.13    The parties have agreed in principle, subject to contract, that part of
the aggregate total price payable under this Agreement (excluding any adjustment
to such price whether referred to in clause 15.1 or not) shall be financed by
the Contractor. A summary of the terms and conditions reflecting this in
principle agreement ("the Vendor Financing Summary") is set out as Schedule 10.

Clause 16.14 shall apply if, but only if, and from the time that the parties
enter into a legally binding agreement ("the Vendor Financing Agreement")
reflecting (with such amendments as may be agreed) that Vendor Financing
Summary. The parties agree to negotiate in good faith the terms and conditions
of the Vendor Financing Agreement with a view to completing the anticipated
vendor financing within the spirit of the Vendor Financing Summary by the end of
1997.

16.14    Each Financed Invoice issued by the Contractor shall relate to the
Financed Portion of one or more Instalments in respect of which a Cash Invoice
has been issued. The Contractor shall not issue a Financed Invoice in respect of
an Instalment where ICO shall, in relation to the corresponding Cash

                                       25
<PAGE>   1792
Invoice, have disputed its liability to pay 100% of the relevant Instalment
until Determination of such dispute. The Contractor shall not include in any
Financed Invoice any Disputed Percentage of the Financed Portion of an
Instalment until, and then only to the extent that there is a Determination that
the relevant amount of the Instalment was due.

ICO shall only be entitled to challenge the amount of a Financed Invoice or the
Contractor's entitlement to issue it on the ground that it is not issued in good
faith, it is inconsistent with a Cash Invoice which relates to one or more of
the same Instalments or that it appears on its face to be inconsistent with the
Payment Schedule. A Financed Invoice shall fall due for payment at the time
stated in, shall bear interest which shall be payable in accordance with and
shall otherwise be subject to the Vendor Financing Agreement.

Clauses 15.2 and 15.3 shall not apply to the Financed Portion of any Instalment
with the intention that the Financed Invoices to be issued at the end of each
quarter pursuant to the Vendor Financing Agreement shall include the Financed
Portion of any Instalment in respect of which a Cash Invoice would, but for
clauses 15.2 and 15.3, have been issued in that quarter.

The first two sentences of clause 16.2 and clause 16.4 shall apply to Financed
Invoices as if they were Cash Invoices except to the extent specifically
referred to in this clause 16.14. The other provisions of clauses 16.1 to 16.12
inclusive shall not apply to Financed Invoices (although the Vendor Financing
Agreement may include analogous provisions). For the avoidance of doubt, nothing
in this Agreement shall result in a Financed Invoice which is payable in
accordance with the terms of the Vendor Financing Agreement not being payable.

16.15    The Vendor Financing Summary provides for ICO to pay a
management/commitment fee to the Contractor in respect of the proposed vendor
financing, such fee to be payable in two instalments, the second one together
with interest. ICO confirms that the obligations as to payment of that fee are
legally binding on it, notwithstanding that the Vendor Financing Summary is
expressed to be subject to contract.

16.16    The parties shall immediately upon the choice of the Escrow Agent and
the settlement of the terms of the Escrow Agreement enter into the Escrow
Agreement with the Escrow Agent. Neither party shall upon or after joining in an
instruction to the Escrow Agent to make a payment to the other party out of the
Escrow Account take any action directly or indirectly to prevent payment being
made to the recipient party pursuant to such instructions.

16.17    To the extent that any payment made by ICO out of the Escrow Account is
made because there has been a Determination that ICO was correct in disputing a
Cash Invoice in whole or in part or was entitled to impose a deferral pursuant
to clause 15.3, then such payment shall not be deemed for any purpose to be a
payment made by the Contractor to ICO.

16.18    For the avoidance of doubt, the provisions of clauses 15.2, 15.3 and 16
shall apply in relation to payments due under clause 14.

17       PAYMENT OF REIMBURSABLE COSTS

17.1     The Contractor shall submit (substantially in the relevant approved
form set out in Schedule 4 and containing the same information) monthly invoices
for costs which are agreed to be reimbursable by ICO to the Contractor under
this Agreement. Such invoices shall have attached the original documents (or
copies of the documents certified by the Contractor) evidencing the amounts
claimed by the Contractor for reimbursement.

17.2     Amounts claimed by the Contractor for reimbursement pursuant to this
clause 17 shall be net of any amounts (including, for the avoidance of doubt,
offsetable amounts such as VAT or other sales taxes) which the Contractor or any
of its Sub-Contractors have the right to reclaim from parties other than ICO,
whether or not such claim has been made or received provided that if, subject to
the Contractor or its Sub-Contractors following its or their usual collection
procedures, any amount

                                       26
<PAGE>   1793
reclaimed by the Contractor or its Sub-Contractors which has not been received
from such third party within 90 days of the date of the Contractor's invoice to
ICO in which the right to such reclaim was taken into account, the Contractor
shall be entitled to include such reclaimed amount in its next monthly invoice
to ICO. If subsequently the Contractor or any of its Sub-Contractors receive
such reclaim from the third party, the Contractor shall account to ICO for any
sums so recovered without delay.

17.3     ICO shall submit invoices for costs which are agreed to be reimbursable
by the Contractor. Such invoices shall have attached the original documents (or
copy documents certified by ICO) evidencing the amounts claimed by ICO for
reimbursement.

17.4     Amounts claimed by ICO for reimbursement pursuant to this clause 17
shall be net of any amounts (including, for the avoidance of doubt, offsetable
amounts such as VAT or other sales taxes) which ICO has the right to reclaim
from parties other than the Contractor, whether or not such claim has been made
or received provided that if, subject to ICO following its usual collection
procedures, any amount reclaimed by ICO has not been received from such third
party within 90 days of the date of ICO's invoice to the Contractor in which the
right to such reclaim was taken into account, ICO shall be entitled to invoice
the Contractor for such reclaimed amount. If subsequently ICO receives such
reclaim from the third party, it shall account to the Contractor for any sums so
recovered without delay.

17.5     The provisions of clauses 16.3 to 16.11 inclusive and 16.17 shall apply
to this clause 17 mutatis mutandis, and for the avoidance of doubt for these
purposes payments by the Contractor to ICO shall be treated in the same way as
payments by ICO to the Contractor.

18       LIQUIDATED DAMAGES

18.1     The Contractor shall be liable to pay, upon ICO's demand in writing, to
ICO (without deduction or withholding) liquidated damages in the event;

         (a)      that the Contractor shall fail to hand over any SAN(s) or
                  NMC(s), to ICO, by any scheduled Handover Date (which date,
                  for the purpose of this clause, shall mean any extension or
                  adjustment to any such Handover Date as agreed by the
                  parties); or

         (b)      that the Contractor shall fail to achieve Acceptance Set 5
                  Completion by the scheduled date (which date, for the purpose
                  of this clause, shall mean any extension or adjustment to such
                  date as agreed by the parties);or

         (c)      that the Contractor shall fail to achieve Acceptance Set 1, 2,
                  3 or 4 Completion by the scheduled dates (which date, for the
                  purpose of this clause, shall mean any extension or adjustment
                  to any such date as agreed by the parties.).

18.2     In case of 18.1 (a) and (b) above, liquidated damages shall be
calculated in accordance with the formulae and conditions set out in clause 18.4
below and shall, in relation to Acceptance Sets 1 to 4 Completion, never exceed
a sum equivalent to   *   of the amount of the SAN(s)or NMC(s) to be handed over
by the Contractor to ICO and shall, in relation to Acceptance Set 5 Completion,
never exceed   *   of (A-B).

18.3     In case of 18.1(c) above, liquidated damages shall be calculated in
accordance with the formulae and conditions set out in clause 18.5 below and
shall, never exceed a sum equivalent to   *   of the amount of the Engineering
portion payable on each Acceptance Set 1, 2, 3 or 4 Completion date respectively
as set forth in Appendix 1 to Schedule 11.

18.4     Liquidated damages payable by the Contractor to ICO pursuant to Clause
18.1(a) and (b) shall be calculated in accordance with the following formula.

                                       27
<PAGE>   1794
         (i)      The Price per SAN/NMC shall be calculated as follows;

                  *

         (ii)     The price in respect of each AS1-4 ("n") shall be calculated
                  as follows with 'n' representing the number of SANs or NMCs in
                  each function set;

                  *

         (iii)    The liquidated damages for each Handover in relation to AS 1-4
                  shall be calculated as follows;

                  *

         (iv)     The liquidated damages for AS 5 Completion shall be calculated
                  as follows:

                  *

              A:  shall mean the Price set out in clause 15.1 of the Supply
                  Agreement.

              B:  shall mean that portion of the Price referable to the
                  Equipment Portion and Engineering Portion (except for NRE and
                  Program Management) applicable for SAN for China as specified
                  in Schedule 11 of the Supply Agreement.

              C:  shall mean the Price per SAN/NMC for the purpose of
                  calculating liquidated damages.

              D:  shall mean the number of days immediately following the date
                  30 days after the scheduled Handover Date or the Acceptance
                  Set 5 Completion Date as the case may be, as set out in the
                  Master Level Schedule in Annex 4 Schedule 14 (or any extension
                  or adjustment to any such Handover Date or Acceptance Set 5
                  Completion Date in accordance with Clause 9 of this Agreement)
                  and the actual Handover Date or actual date of Acceptance Set
                  5 Completion as the case may be.

              E:  shall mean the total amount of the Engineering Portion
                  associated with the Phased SAN Handover as set out in Appendix
                  4 to Schedule 9 of this Agreement.

18.5     Liquidated damages payable by the Contractor to ICO pursuant to Clause
         18.1(c) shall be calculated in accordance with the following formula.

         (i)      The liquidated damages for Acceptance Set 1, 2 or 3 Completion
                  shall be calculated as follows:

                  *

         (ii)     The liquidated damages for Acceptance Set 4 Completion shall
                  be calculated as follows:

                  *

                  * Confidential Treatment Requested and the Redacted Material
                    has been separately filed with the Commission.

                                       28
<PAGE>   1795
              E:  shall mean the total amount of the Engineering Portion
                  associated with the Phased SAN Handover as set out in Appendix
                  4 to Schedule 9 of this Agreement.

              F:  shall mean the number of days immediately following the date
                  30 days after the scheduled date of Acceptance Set 1, 2, 3 or
                  4 Completion as set out in the Master Level Schedule in Annex
                  4, Schedule 14 (or any extension or adjustment to such dates
                  in accordance with Clause 9 of this Agreement) and the actual
                  date of Acceptance Set 1, 2, 3 or 4 Completion as the case may
                  be.

18.6     Liquidated damages payable by the Contractor to ICO under this
         Agreement shall never exceed in aggregate of 10% of the Price.

PART D - PROGRESS REPORTING

19       MILESTONES AND PROGRESS REPORTING

19.1     ICO and the Contractor have agreed the Top Level Milestone Schedule
(being Schedule 7), which designates particular Milestones as Top Level
Milestones and specifies the date for the achievement by the Contractor of such
Top Level Milestones.

19.2     In accordance with the progress monitoring procedure established in
Annex 4 of the Statement of Work, the Contractor shall report regularly on, and
produce such other evidence as ICO may reasonably request to demonstrate, the
actual progress of the Works as compared with the Master Level Schedule and
Schedule 7.

19.3     Schedule 7 also contains other Milestones which, if not achieved by the
specified dates, may affect the Contractor's ability to achieve the Top Level
Milestones in accordance with Schedule 7. If ICO's failure to achieve any
Milestone, which is identified in Schedule 7 as being the responsibility of ICO,
has a direct effect upon the ability of the Contractor to achieve any Top Level
Milestone, then to the extent that the Contractor can demonstrate the same to be
required, Schedule 7 shall be adjusted in an equitable manner.

19.4     Any changes required to Schedule 7 shall be agreed in accordance with
clause 58.

19.5     If in ICO's reasonable opinion actual progress of the Works does not
conform generally with the Master Level Schedule or achievement of a Top Level
Milestone has been or may be delayed, and if delayed, ICO has notified the
Contractor in accordance with clause 15.3, then ICO may require the Contractor:

         (a)      to submit a report to ICO identifying the reasons for the
                  delay and the Contractors proposal for catching up with that
                  delay; and/or

         (b)      to produce and submit a revised Master Level Schedule to ICO
                  showing how the Contractor proposes to ensure completion of
                  the relevant Works by the relevant Milestone Date or, where a
                  relevant Top Level Milestone has not or will not be achieved,
                  how the Contractor proposes to ensure completion of the
                  relevant Works without adversely affecting the Master Level
                  Schedule and the achievement of the remaining Top Level
                  Milestones by the relevant Milestone Dates.

19.6     If the Contractor is unable to satisfy ICO that it is able to complete
the relevant Works by the relevant Milestone Date or, as the case may be, that
it is able to complete all or any of the relevant Works without adversely
affecting the Master Level Schedule and the achievement of the remaining Top
Level Milestones by the relevant Milestone Dates, ICO shall have the right, with
no corresponding adjustment being made to the Price, to require the Contractor
to commit such extra resources (including any resources required to supplement
the NEC Team's own and then committed resources and expertise) as are necessary
to complete the relevant Works by the relevant Milestone

                                       29
<PAGE>   1796
Date or, as the case may be, to complete all or any of the relevant Works
without adversely affecting the Master Level Schedule and the achievement of the
remaining Top Level Milestones by the relevant Milestone Dates.

19.7     If in extreme circumstances ICO considers that the Contractor is or
will be unable to complete all or any substantial aspect of the Works in
accordance with the Master Level Schedule and the achievement of the remaining
Top Level Milestones by the relevant Milestone Dates and the Contractor has
failed to take all appropriate actions called for by ICO under clause 19.6,
then, if supported by the opinion or recommendation of an independent expert
appointed in accordance with this clause 19.8, ICO may require the Contractor to
(and the Contractor shall be obliged to):

         (a)      replace any of the Sub-Contractors (including the other
                  members of the NEC Team); and

         (b)      take such other actions as ICO may reasonably determine to be
                  necessary in the circumstances.

19.8     Any independent expert required to be appointed for the purposes of
clause 19.7 shall be appointed either by agreement between the parties within 21
days of a request by ICO or, in the absence of such agreement within such
period, shall consist of a committee of three experts to be selected by lot from
amongst up to six nominees of whom up to three shall have been put forward
within seven days of the expiry of such 21 day period by each of ICO and the
Contractor. Any person nominated as an expert shall be entirely independent of
the parties, the other members of the NEC Team of any Sub-Contractors and any
Site Operators.

[20]     NOT USED.

[21]     NOT USED.

22       PROGRESS INSPECTION

22.1     Subject to any applicable legal restrictions in effect in the country
of manufacture, ICO has the right to inspect and verify the progress of all
elements of the Works at all places and times prior to the completion of Phase 3
Testing of the relevant item or component and its handover to, and receipt by,
ICO and for such purposes shall be permitted access to the premises of the
Contractor and its Sub-Contractors (excluding any Sub-Contractor who shall not
have been required to enter into a direct undertaking with ICO pursuant to
clause 11). ICO will give 14 days notice of its intended inspections to the
Contractor. Such inspections shall be performed in a manner that will not unduly
delay the Works. Any such inspections and verifications as are required shall be
authorised by the Supervising Officer.

22.2     If any such inspections and verifications are to be made on the
premises of the Contractor or any Sub-Contractor (excluding any Sub-Contractor
who shall not have been required to enter into a direct undertaking with ICO
pursuant to clause 11), the Contractor shall furnish, and shall require such
Sub-Contractors to furnish, without additional charge, all reasonable facilities
and assistance for the safe and convenient performance of these inspections and
verifications.

22.3     The Contractor shall furnish or procure to be furnished to ICO such
copies of orders, specifications, drawings, any technical information and
documents as ICO may reasonably require to perform progress supervision.

22.4     When any elements of the Works which ICO has, in accordance with clause
22.1 notified the Contractor of its wish to inspect are not, at the relevant
time specified by ICO, ready for inspection, review or evaluation, ICO may
charge to the Contractor the reasonable costs incurred by ICO Staff in attending
at the relevant premises for the purposes of such inspection, review or
evaluation and such costs shall be reimbursed to ICO in accordance with clause
17.

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<PAGE>   1797
22.5     Any inspection and/or test and/or examination made or attended by ICO
Staff under this clause shall not relieve the Contractor of its responsibility
to conform to the requirements of this Agreement.

23       INTERMEDIATE PROGRESS REVIEW

23.1     In relation to each of the sub-systems referred to in Schedule 11
(Payment Schedule) comprising part of the Deliverables, the Contractor shall not
despatch any of such Deliverables from their respective places of origin to the
Sites until such time as the relevant sub-system shall have successfully
completed all of the Phase 1 Tests referred to in Section 5.1 of Annex 8A to the
Statement of Work.

23.2     Handover of an Acceptance Set shall not occur until such time as
Acceptance Set Completion has been achieved for the immediately preceding
Acceptance Set. Further, the Contractor shall not commence the upgrade and
integration of a preceding Acceptance Set until Handover of the current
Acceptance Set has been achieved. Nothing in this clause 23.2 shall preclude the
Contractor from undertaking activities (including Phase 3 IGF Tests) preparatory
to commencing the next, or subsequent, Acceptance Sets notwithstanding that the
immediately preceding Acceptance Set Completion may not have been achieved. For
the avoidance of doubt, the undertaking of activities preparatory to commencing
the next, or subsequent, Acceptance Sets shall not include the making available
by ICO, to the Contractor, of any SANs and the NMCs previously handed over to
ICO, unless specifically agreed by ICO.

23.3     ICO shall, in its absolute discretion, be entitled to waive compliance
with the timing requirements of clauses 23.1 and 23.2 in whole or in part and
subject to such terms and conditions as it may think fit, but any such waiver
shall not excuse or relieve the Contractor in any way from the requirement to
ensure that the relevant Deliverables satisfy the relevant Phase 1 or Phase 3
Tests.

[24]     NOT USED.

PART E - DELIVERY AND INSTALLATION

25       SITE ACCESS

25.1     ICO Shall, no later than 4 weeks before the Ready for Installation Date
for each Site established in the Master Level Schedule, advise the Contractor of
the anticipated availability of the Site on the scheduled Ready for Installation
Date.

25.2     If ICO can reasonably foresee that the actual availability of a Site
will be later than the scheduled Ready for Installation Date, the parties shall
meet to determine the consequences to the Contractor's delivery and installation
programme and the action that can be taken to mitigate such consequences shall
be agreed in a Change Order in accordance with clause 9.

26       TRANSPORTATION TO SITE

26.1     The Contractor shall have sole responsibility for the shipment and
transportation of the Deliverables from the place of manufacture to, and
unloading and placing into suitable and secure storage at, a port of destination
in, and as selected by the Contractor, the country of the relevant Site. The
Contractor shall promptly upon arrival of the Deliverables at the port of
destination notify ICO in writing, and any agents designated by ICO, of the
storage location of the Deliverables.

26.2     ICO shall promptly arrange for customs clearance of the Deliverables at
such port of destination in accordance with clause 28.

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<PAGE>   1798
26.3     Following customs clearance in accordance with clause 28, the
Contractor shall have sole responsibility for, and shall arrange promptly,
inland transportation from an ICO designated location at the relevant port of
destination to the relevant Site.

26.4     The Contractor shall arrange shipment and transportation for the
Deliverables to each of the Sites with reliable shipping and transportation
contractors experienced in carrying products of the type of the relevant
Deliverables.

26.5     The Contractor shall, 30 days before despatch of any of the
Deliverables to the relevant port of destination as referred to in clause 26.1,
notify ICO of the intended date of despatch, the mode(s) of transport and the
destination of the relevant Deliverables together with such other information as
ICO may reasonably require to assist ICO in arranging for customs clearance.

26.6     The Contractor shall not, without informing ICO, arrange for any of the
Deliverables to be shipped to Sites via third countries. The Contractor shall
not arrange for any Deliverables to be shipped via a third country if by doing
so any delays or adverse treatment in importation or customs clearance will
result or may reasonably be anticipated. Notwithstanding having informed ICO of
any shipment via third countries, the Contractor will be liable for any
penalties imposed upon ICO by virtue of the shipment via such third countries.

27       PACKAGING

27.1     The Contractor shall be responsible for packing all the Deliverables in
a manner which, taking into account all hazards which may reasonably be
anticipated, will enable them to be transported from their point of origin to
the Site and stored at the Site without suffering any accidental damage,
environmental damage or deterioration. The Contractor shall be responsible for
replacing at its own cost, without impact to the Top Level Milestone Schedule,
any of the Deliverables which are damaged in transit and for reimbursing ICO for
any expenses it incurs as a consequence of improper packing, marking or method
of shipment.

27.2     The Contractor shall pack, mark and ship all items and components of
the Deliverables in accordance with the requirements of this Agreement and so as
to be in compliance with best commercial practice for protection and shipment
and for meeting transportation regulations. A packing list shall be included
with each shipment and a copy thereof transmitted to ICO by fax at the time of
despatch from the point of origin (or where the despatch is made by a
Sub-Contractor, the Contractor shall transmit such copy within 48 hours of the
time of despatch) and each delivery package shall be marked and cross referenced
to such packing list.

27.3     The Contractor shall, following delivery, remove from each Site all
packing materials and dispose of, reuse or recycle the same in a manner lawful
in the relevant country. No separate or additional charges are payable by ICO
for safe packing, handling or storage in transit except as provided in clause
28.

28       CUSTOMS CLEARANCE

28.1     ICO shall be responsible for all customs clearances and other
importation formalities which relate to any of the Deliverables in the country
in which the Site at which the same are to be installed is situated.

28.2     ICO shall pay all import and custom duties (including VAT or any
similar sales tax), customs clearance charges and fees (including any storage
costs incurred during the import and customs clearing process), incurred in
connection with the importation of the relevant Deliverables in the country in
which the Site at which the same are to be installed is situated. The Contractor
shall, when requested by ICO and subject to clause 28.5, use its reasonable
efforts to assist ICO in obtaining customs clearance of, and in satisfying any
other importation formalities relating to, the Deliverables at the port of
destination.

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<PAGE>   1799
28.3     The Contractor shall on a timely basis provide ICO with originals, or
where appropriate copies, of:

         (a)      all relevant shipping documents;

         (b)      manufacturing certificates;

         (c)      fully completed applications for import clearances; and

         (d)      if required, other usual customs clearance and importation
                  documentation if required for the importation of goods into
                  the relevant country,

relating to the Deliverables for signature and submission by ICO (where
appropriate).

28.4     No later than 60 days prior to the scheduled shipment to the relevant
country of the Deliverables as shown in the Master Level Schedule, ICO shall
inform the Contractor of any special requirements to be applied or followed in
respect of the importation of such Deliverables to the relevant country and the
Contractor shall meet such special requirements.

28.5     If the Contractor shall in providing the additional assistance
requested by ICO under clause 28.2 or in fulfilling any special requirements
notified under clause 28.4 incur additional cost then, subject to supplying to
ICO reasonable evidence of such additional costs incurred, ICO shall reimburse
the same to the Contractor in accordance with clause 17.

28.6     In the event that any objections or difficulties are anticipated or
encountered in any country which might result in the customs clearance or
importation procedures of the relevant Deliverables being delayed beyond 15 days
after arrival for customs clearance of the relevant Deliverables in the relevant
country (commencing with the first working day in that country after that on
which the Contractor shall have provided notification in accordance with clause
26.1 and the documentation referred to in clause 28.3), ICO shall promptly
notify the Contractor of the nature and cause of the delay (if known).

28.7     The Contractor shall identify and assess as soon as possible after
receiving any notification under clause 28.6 any negative effects upon the
Master Level Schedule and the parties shall discuss the appropriate and
necessary action to minimise such effects.

28.8     If customs clearance or the importation of any of the Deliverables into
the country in which the Site at which the same are to be installed is situated
is delayed beyond the period specified in clause 28.6 and the Contractor shall
have fully complied with its obligations under clauses 26 to 28 inclusive in
relation to such Deliverables then, subject to the Contractor demonstrating to
the reasonable satisfaction of ICO that the delay in the importation or customs
clearance of the relevant Deliverable was the direct cause of an actual delaying
the Top Level Milestone Schedule (as it relates to the Site for which such
Deliverables were intended and to any consequential effect on the relationship
between that Site and any other Sites) shall be adjusted for a period not to
exceed the lesser of:

         (a)      the actual period of delay in the Top Level Milestone Schedule
                  resulting directly from the delay in importation or customs
                  clearance of the relevant Deliverables; or

         (b)      the number of days in excess of the period referred to in
                  clause 28.6 which were required for actual importation or
                  customs clearance of the relevant Deliverables to be achieved.

28.9     For the avoidance of doubt, ICO shall not be responsible for and
clauses 28.1 to 28.8 shall not apply to:

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<PAGE>   1800
         (a)      the importation by the Contractor or any Sub-Contractor of any
                  installation and test tools, equipment, materials or other
                  effects (including personal) in connection with this
                  Agreement; or

         (b)      any Deliverables which are imported more than once into any
                  country in which a Site at which the same are intended to be
                  installed is situated, whether the second or subsequent
                  importation is into the same or any other country to the
                  initial importation, otherwise than as a result of a direction
                  by ICO.

28.10        In the event that any of the circumstances in clause 28.9(b) apply:

         (a)      ICO shall at the Contractor's request assist the Contractor
                  in, and in appropriate circumstances handle on behalf of and
                  at the expense of the Contractor, the importation and customs
                  clearance of the relevant Deliverables; and

         (b)      the Top Level Milestone Schedule shall not be extended even if
                  delays or difficulties are encountered in the customs
                  clearance or importation procedures.

29       INSURANCE

29.1     The obligations in this clause 29 shall apply until such time as risk
in the relevant Deliverable shall pass to ICO. The Contractor shall as from the
time of creation of all or any part, including components, of the Deliverables
maintain insurance against loss, damage or destruction for all of the
Deliverables then in existence for their full replacement cost, including costs
associated with expedited repair or replacement and delivery to, and
installation at, the location where the affected Works are being, or are to be,
performed.

29.2     The Contractor shall, in the event of the loss, damage or destruction
of any of the Deliverables at any time before the Handover Dates for Acceptance
Sets 1 to 4 of the relevant Deliverable, use its best efforts to procure the
provision of any repair or replacement for any of the Deliverables or any
component thereof and to take such other actions as the Contractor deems
appropriate in order to avoid or to minimise all adverse effects on the Master
Level Schedule and the Top Level Milestones as a consequence of the loss, damage
or destruction of any Deliverables.

29.3     ICO shall be nominated as joint insured in respect of all of such
Deliverables and their components and shall be loss payee. Within three months
of the date of this Agreement ICO shall grant to the Contractor an appropriate
power of attorney enabling the contractor to negotiate with, settle and collect
any claims from the insurers of any of the Deliverables or any carriers, bailees
and/or other parties responsible for loss or damage to any part or component of
the Deliverables. The Contractor shall hold any amount so received in trust on
behalf of ICO until the same shall be applied in payment for any repair or
replacement Deliverables or shall be paid to ICO.

29.4     ICO at its sole discretion may direct that the Contractor not proceed
with the repair or replacement and delivery as provided in clause 29.2 and
instead require that the Contractor and ICO co-operate to procure that the
proceeds of insurance be paid directly to ICO and the Contractor will not be
required to proceed with any such repair or replacement or delivery.

29.5     To the extent that ICO's direction under clause 29.4 shall adversely
affect the ability of the Contractor to comply with the Top Level Milestone
Schedule and any applicable Top Level Milestones, to the extent that either
party can demonstrate the same to be required, the provisions of this Agreement
(including if necessary the Payment Schedule, the Top Level Milestone Schedule
and Top Level Milestones) shall be adjusted in an equitable manner.

29.6     The Contractor shall produce evidence (and an English translation) to
ICO of its compliance with clauses 29.1 and 29.3 from time to time upon request
and no less frequently then once a year within one month following the renewal
date of the Contractor's policy.

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<PAGE>   1801
30       OWNERSHIP

Ownership of the Deliverables shall pass to ICO upon the relevant Deliverable
being loaded on board a ship, aircraft or other means of transport bound for
export from the country of origin provided that where any Site is located in the
country of origin, ownership shall pass upon the relevant Deliverable arriving
at the relevant Site.

31       DELIVERY

31.1     The Contractor shall be responsible for the delivery of the
Deliverables to the Sites in accordance with the Statement of Work and the
Master Level Schedule. The Contractor shall provide all materials, plant,
equipment and labour required to receive, off-load and place the Deliverables in
position at the Sites.

31.2     Upon arrival of each consignment or shipment of the Deliverables at
each Site, the Contractor shall examine and confirm to ICO the identity of the
Deliverables which have been delivered and that they are in good condition and
ready for installation or, if this is not the case, what the position then is.
The Contractor shall also identify to ICO any Deliverables which have been
scheduled for delivery at that Site by that time but which have not then been
delivered (or which have been delivered but are either defective or damaged and
in need of replacement or repair) and, promptly, the Contractor shall deliver to
ICO a report setting out the impact on the Master Level Schedule and for
completing the Works and all applicable testing requirements at that Site on or
before the scheduled date for completion of the same and any remedial actions
which the Contractor intends to implement.

32       INSTALLATION

32.1     The Contractor shall at each Site carry out the Works in accordance
with the Statement of Work and the IGFR, using a safe system of working and in
compliance with all local laws.

32.2     The Contractor shall (within a reasonable time taking into account the
nature of the damage), in a good and workmanlike fashion, repair or replace any
damage to the Site (including any of the buildings, fixtures, fittings or other
equipment on the Site) or to any of the Deliverables in the course of any aspect
of the installation of any of the Deliverables which has been caused by the
Contractor or any Sub-Contractors.

32.3     Save for those items specified in Annexes 2, 3 and 9 of the Statement
of Work, the Contractor shall be responsible for providing, or procuring the
provision, of all equipment, tools, consumables, spares and all other materials
and services required for the carrying out of the Works and the installation of
the Deliverables at all Sites. With respect to those items of equipment, tools,
materials, and services required for the installation of the Equipment and
Software which ICO is responsible for providing to, or procuring to be made
available for use by, the Contractor as specified in Annexes 2, 3 and 9 of the
Statement of Work, the Contractor shall be responsible for the proper care and
maintenance (including any losses or damages) of all such items and shall,
following the completion of the Works for which they are required, return all
such items to ICO at such location(s) as ICO may reasonably specify in the same
condition as they were provided (save where consumed in the case of consumables
or for normal wear and tear) and recalibrated if appropriate. The Contractor
shall be responsible for the costs of all transportation and insurance
associated with the provision by ICO to, and use and return to ICO of such items
by, the Contractor.

32.4     The Contractor shall ensure that its employees, its Sub-Contractors and
their employees observe all relevant laws regulations and practices relating to
the Sites and shall remove forthwith from the relevant Site, with or without the
request of ICO, any such persons failing to abide by any of these requirements.

32.5     The Contractor acknowledges that the Sites on which the Works will
occur and adjoining land may have other existing equipment and operations which
may be carried out concurrently by third parties. The Contractor shall take all
reasonable and necessary actions (including the co-ordination of

                                       35
<PAGE>   1802
its activities on any Site with any other activities of others affecting the
same Site or any adjoining land) so as to prevent such other existing equipment
and concurrent operations from suffering any damage or adverse effects as a
result of the Contractor's activities. In the event that the Contractor's
activities cause any damage to existing equipment or adversely affect other
concurrent operations, the Contractor shall immediately stop the activities
giving rise to any such damage or adverse effect and, in consultation with ICO
or such other person as ICO may direct, implement such remedial action as may be
necessary to repair, replace or rectify the damaged equipment or to prevent the
adverse effect upon concurrent operations.

32.6     The Contractor shall throughout the process of installation keep the
Sites in a clean and tidy condition and shall be responsible for keeping the
Sites free from rubbish and contamination arising as a consequence of its
activities. Following completion of the installation of the relevant
Deliverables at each Site, the Contractor shall promptly remove its effects,
personnel (other than those with a role continuing after installation), spare
materials, plant, machinery and any rubbish or other debris. The Contractor
shall leave the Site in a clean condition, ready to commence operations.

33       TESTING

33.1     The Contractor acknowledges that it must and undertakes that it will
within the timescales contemplated by this Agreement deliver to ICO fully
integrated and tested ICONET Ground Facilities capable of fulfilling the IGFR
and the Statement of Work,

33.2     In order to establish that the Works and the Deliverables are capable
of providing a fully functioning service, testing and retesting of each element
is required. The Contractor must ensure that the testing procedure set out in
the Statement of Work is fulfilled and ICO Staff shall be permitted to observe
and review any and all of the formal and informal tests referred to in Annex 8A
of the Statement of Work.

33.3     In the event that any part of the Deliverables shall fail any formal
test (as described in Annex 8A of the Statement of Work) as is referred to in
clause 33.2 for any reason, the test procedures shall, after a reasonable
opportunity for the Contractor to remedy the cause of such failure, be restarted
at the discretion of ICO to a reasonable point to demonstrate the functionality
and/or the reliability of the Deliverables concerned.

33.4     The Contractor shall inform or confirm to ICO in writing (as
appropriate) at least 14 days in advance the date, time and location of all
formal tests (as described in Annex 8A of the Statement of Work).

33.5     In the event that any of the formal tests specified above:

         (a)      do not occur within 48 hours of the time scheduled for such
                  test;

         (b)      is cancelled by the Contractor or Sub-Contractor with less
                  than 48 hours notice to ICO; or

         (c)      is carried out and the relevant Deliverable shall fail the
                  such test and the same cannot be reperformed within 48 hours
                  of the time it failed and ICO requests that it be retested
                  pursuant to clause 33.3,

then the Contractor will reimburse ICO for any reasonable costs and expenses
incurred in attending the tests or inspection.

34       RFT HANDOVER

34.1     In relation to such part of the Deliverables as comprise RFTs for use
in the six TT&C Sites which ICO has designated as the TT&C Sites as set out in
the Statement of Work, the provisions of this clause shall apply.

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<PAGE>   1803
34.2     On or before the RFT Availability Date applicable to each TT&C Site,
the Contractor shall ensure that (i) at such Site, two (or at the Contractor's
discretion any greater number) of the RFTs will be installed; (ii) all of those
RFTs that have been installed have successfully completed their Phase 2-1
testing (as referred to in Annex 8A of the Statement of Work); (iii) all of the
required training at such Site shall have been provided to ICO Staff necessary
to train them to operate such RFTs competently; (iv) the required documentation
relating thereto as specified pursuant to the Statement of Work has been
supplied to ICO; and (v) the provisions set out in the IGFR and the Statement of
Work relating to such RFTs shall have been complied with.

34.3     The Contractor shall for a continuous period of three weeks following
the RFT Availability Date applicable at each of the Sites (other than the first
Site to be made available and at the IOT Site, where such continuous period
shall be six weeks) provide engineering support and assistance to ICO Staff at
such time as may be established by ICO at anytime falling within the period of
three months following the RFT Availability Date (provided that if such time
shall not be immediately following the RFT Availability Date applicable to the
relevant Site, ICO shall give the Contractor at least two weeks prior written
notice of the time at which such support and assistance is required), for the
integration of all of the installed RFTs with ICO's satellite TT&C and IOT
systems so that the same can, by the end of such integration period, be made
ready for operation and use by ICO as a satellite telemetry, tracking and
control site assuming that the TT&C and IOT systems meet their respective
Interface Control Documents.

34.4     On the relevant RFT Availability Date, the Contractor shall make
available for use by ICO at the relevant TT&C Site two of the RFTs and shall
procure that at all times between the relevant RFT Availability Date and
Handover Date relevant to each Acceptance Set 1 to 4 ICO has at each TT&C Site a
minimum of two RFTs continuously available for use and operation in a fully
functional mode, in connection with ICO's TT&C and IOT activities.

34.5     Without affecting the requirements of clause 34.4, following the RFT
Availability Date and the installation and successful Phase 2-1 testing of any
of the remaining RFTs at any TT&C Site, the Contractor shall make such other
RFTs available for use by ICO in connection with ICO's TT&C and IOT operations
at a single time of the Contractor's choosing and shall, at each TT&C Site,
provide for a continuous period of three weeks engineering support and
assistance to ICO Staff for integration of the RFTs with ICO's satellite TT&C
systems. Any such RFT shall not, for the remaining provisions of this clause, be
regarded as available to ICO until the provision of such engineering support and
assistance has been completed.

34.6     ICO acknowledges that at certain times the Contractor will need to
carry out testing at the Site of the Deliverables comprising the entire SAN or
major aspects thereof and accordingly it may be necessary for ICO to switch its
TT&C and IOT operations at the Site to use another of the available RFTs.

34.7     The Contractor shall, in circumstances where its testing procedures
require the use of RFTs at a particular Site, ensure that its use of those RFTs
does not interfere with ICO's TT&C and IOT operations at the Site and it will
liaise with ICO to ensure that there are no interruptions which cause any risk
to necessary TT&C and IOT operations.

34.8     ICO undertakes that it will, under the supervision of properly trained
personnel, operate and maintain all of the RFTs made available to ICO by the
Contractor under this clause 34 only for ICO's TT&C and IOT operations at the
Site and in accordance with the operation and maintenance manuals provided by
the Contractor and will otherwise take all reasonable steps to keep the relevant
RFTs secure and free from interference and abuse.

34.9     During the period between the RFT Availability Date and the Handover
Dates for the relevant RFTs, all such RFTs which the Contractor has made
available for use by ICO under this clause 34, but which have not been handed
over to ICO, shall nevertheless remain at the risk and under the ultimate
control and responsibility of the Contractor.

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<PAGE>   1804
34.10    If in the period referred to in clause 34.9, ICO shall determine that
there is any defect or deficiency in any of the Equipment or Software or Works
relating to the RFTs which have been made available for its use, it shall
promptly notify the Contractor of this, in writing. The Contractor shall,
wherever practicable, immediately make another RFT at that Site available for
use by ICO. Where that is not practicable (including by reason of such other
RFTs not yet having been integrated with ICO's TT&C equipment), then the
Contractor shall implement such repairs, replacements or alterations as shall be
required to ensure that there is no interruption in ICO's TT&C and IOT
operations.

35       ACCEPTANCE

35.1     Upon Handover of any SANs and/or NMCs comprised within each of
Acceptance Sets 1 to 4, the Contractor shall, in an orderly manner, at the
relevant Sites hand over to ICO Staff all such Deliverables (save and except for
Training which shall be handed over in accordance with a training schedule to be
developed, by the parties, in accordance with the principles and procedures set
out in Annex 5) located at such Sites as are due to be handed over by such
dates.

35.1.1   Upon any Handover, ICO shall issue and deliver to the Contractor a
Handover Certificate in the form set out in Schedule 12. The purpose of the
Handover Certificate shall be to record the fact that Handover has occurred and
also ICO's formal receipt of the Deliverables. Until such time as the relevant
Handover Certificate has been provided by ICO in accordance with this clause,
neither ICO nor any SAN Operator, or their respective servants, agents or
representatives, shall use such Deliverables (or any part thereof) for the
purposes of ICO's activities or operations (save where otherwise specifically
provided in this Agreement).

35.1.1.2 Upon completion, by the Contractor, of each of Acceptance Sets 1 to 4
ICO shall, no later than 14 days of the date of Acceptance Set Completion, issue
and deliver to the Contractor an Acceptance Set Completion Certificate in the
form set out in Schedule 12.

35.1.2   Upon satisfactory completion of the testing of the Function Set 5 which
satisfies Acceptance Set 5 and the criteria set out in Annex 10, ICO shall issue
and deliver to the Contractor an Acceptance Set Completion Certificate in the
form set out in Schedule 12.

35.1.3   In respect of any Deliverables (other than Function Set 5) which are to
be handed over or in respect of any Works which are to be completed by the
Contractor after the Acceptance Set 4 Completion Date, upon the relevant
Deliverable having fulfilled its specification and any other applicable
requirements laid down pursuant to this Agreement or the relevant Works having
been completed to ICO's satisfaction, including the satisfaction of any test
criteria relevant to such Works, ICO will confirm formal receipt of the relevant
Deliverable or Works by issuing and delivering to the Contractor a Completion
Certificate (which shall be in the same form as the Acceptance Set Completion
Certificate, but modified as appropriate). Such certificate shall be signed by
the Supervising Officer on behalf of ICO and shall be sent to the Contractor by
facsimile.

35.1.4 The issue of a Handover or Acceptance Set Completion Certificate shall
not affect the obligations of the Contractor to deliver any other Deliverables
and/or to complete the Works and/or to remedy or to rectify any faults which may
affect the ICONET Ground Facilities or other Deliverables or Works at that time.

35.2.1   Notwithstanding the provisions in clause 35.1.1, and without prejudice
to the Contractor's rights under this Agreement, in the event ICO or any SAN
Operator or their respective servants, agents or representatives shall use
Deliverables which comprise only part of the Hardware and Function Set referable
to a given Acceptance Set for the purposes of ICO's operations or activities,
such use shall be deemed to be a Handover for the purposes of this Agreement.
ICO shall promptly,

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<PAGE>   1805
thereafter, issue and deliver to the Contractor the requisite Handover
Certificate.

35.2.2   For the purpose of clause 35.2.1 reference to ICO's "operations" or
"activities" shall not include those activities which ICO shall undertake
pursuant to clause 34.8, Annex 7B of the Statement of Work, save and except for
Section 2.3.1 thereof in respect of SANs and NMCs not yet handed over to ICO,
any activities it is agreed in writing shall be undertaken by ICO (including
ICONET Integration activities or any maintenance activities it is agreed between
the parties shall be undertaken by ICO) or other activities or operations as the
parties may agree, from time to time, shall be undertaken by ICO pursuant to
this Agreement.

35.2.3   If any Handover occurs in circumstances described in clause 35.2.1 and
the Contractor shall not have completed its activities on all elements comprised
within the relevant Acceptance Set, including Handover and Acceptance Set
Completion, and the Contractor considers that it is not reasonably practicable
to complete its outstanding testing activities within the existing Schedule
then, to the extent the Contractor can demonstrate the same to be required, the
Schedule shall be adjusted in an equitable manner. The Contractor shall be
entitled, also, to claim, and ICO shall be obliged to pay, any direct costs
incurred by the Contractor associated with any re-allocation of, or addition to,
the Contractor's resources necessary to complete its activities.

35.2.4   If any adjustment to the schedule is required in accordance with clause
35.2.3, above, the parties shall mutually agree a date upon which ICO shall make
the Deliverables located at any relevant SAN(s) or NMC site(s) available to the
Contractor, to enable the Contractor to complete its activities. The
availability date to be agreed shall, in any event, occur within a reasonable
time following any event of Handover described within clause 35.2.1.

35.2.5   Following Handover, if ICO does not make available to the Contractor
any Deliverables in accordance with the date established by the parties under
clause 35.2.4, ICO shall agree with the Contractor the earliest alternative date
by which Deliverables can be made available to the Contractor and, in this
event, the procedures and processes described in section 4.1.6 of Annex 7B shall
be applied, provided always that ICO's agreement shall not be unreasonably
withheld or delayed.

36       RISK

36.1     The Deliverables shall be at the risk of the Contractor until 00.01
hours GMT on the day immediately following the Handover Date referable to each
of Acceptance Sets 1 to 4 or, in relation to Deliverables comprised within
Acceptance Set 5, following Acceptance Set 5 Completion, at which time risk in
the same shall pass to ICO.

36.2     The Contractor shall, from the point in time at which ICO makes the
Deliverables available pursuant to Section 4.1.5 of Annex 7B of the Statement of
Work, until such time as the Contractor completes its activities, assume
responsibility to take due care of such Deliverables. To the extent the
Contractor shall fail to take due care of the Deliverables and insofar as such
failure shall cause or result in direct physical damage to, or loss of, tangible
property of ICO then the Contractor shall use its best efforts to procure the
provision of any repair or replacement for any of such Deliverables or any
component thereof and to take such other actions as the Contractor deems
appropriate in order to avoid or minimise all adverse effects on the Master
Level Schedule and the Top Level Milestones as a consequence of the loss or
damage to such Deliverables.

37       INTERCHANGEABILITY

37.1     The Contractor shall ensure that at each of the Sites the items
comprising any part of the Deliverables, and in particular the Equipment and
Software supplied to fulfil any particular functional requirement shall, to the
maximum extent practicable and where lawful, be of identical design and shall
carry the same component reference as and be interchangeable with the equivalent
items supplied for use at any other of the Sites or by way of Spares, provided
always that ICO acknowledges that as a consequence of the Contractor's or the
Principal Sub-Contractors' policy of continuous improvement, in

                                       39
<PAGE>   1806
view of the time between design and manufacture and the manufacturing timetable,
certain items intended to fulfil the same functional requirement, may differ
from earlier items supplied.

37.2     The Contractor shall at all times maintain a complete record of any
changes in specification of any such items and of any differences between the
Sites in the items installed by the Contractor in a format reasonably to be
specified by ICO. The Contractor shall within 30 days of each anniversary of
this Agreement (ending with the tenth such anniversary) provide an up to date
and complete copy of such record to ICO.

38       DELIVERY DELAYS

If and whenever it becomes apparent that progress of any of the Works is being
or is likely to be delayed, the Contractor shall forthwith give written notice
to ICO of the material circumstances including the cause or causes of the delay.
If practicable, such notice shall give particulars of the expected effects
thereof and estimate the extent of the expected delay in delivery or performance
beyond the date or dates set out in the Master Level Schedule. The Contractor
must specify what actions it is taking or intends to take to minimise and
recover such delay. The Contractor shall give such further written notices to
ICO, as may be necessary or as ICO may reasonably require for keeping up to date
the particulars and estimate referred to above including any material change in
such particulars or estimate.

[39]     NOT USED.

40       WARRANTY

40.1     Notwithstanding inspection, testing and the issue of a Handover
Certificate by ICO in respect of any of the Works or the Deliverables or any
other provision of this Agreement which purports to make acceptance by ICO
conclusive, the Contractor guarantees that:

         (i)      throughout the period commencing with the Handover Dates for
                  each of the Acceptance sets 1 to 4 up until 12 August 2002
                  (unless this date is extended as result of delays to such
                  Handover Dates which are not attributable to ICO).

         (ii)     solely in respect of Function Set 5 to be provided at
                  Acceptance Set 5, throughout the period for 2 years commencing
                  from the Acceptance Set 5 Completion Date.

         (iii)    solely in request of Works and Deliverables with a Handover
                  Date later than the Handover Date for Acceptance Set 4,
                  throughout the period for 2 years commencing from the Handover
                  Date for such Works or Deliverables.

         (a)      all the Deliverables are designed and manufactured so as to
                  conform to the design, performance and manufacturing
                  requirements of this Agreement as from time to time modified
                  by the parties, and will perform in accordance with and
                  deliver the functionality specified in those requirements;

         (b)      the Works generally, and the Deliverables in particular, and
                  each component of either of them, is free from all defects in
                  material or workmanship, latent defects or other defects which
                  may cause the same to fail to conform to the specified
                  functional and/or performance requirements of this Agreement
                  as from time to time modified by the parties;

         (c)      each Deliverable functions in such a way that, in conjunction
                  with others of the Deliverables, it fulfils the IGFR;

                                       40
<PAGE>   1807
         (d)      the contents of the documentation comprised within the
                  Deliverables are correct and free from defects or faults
                  (failing which clause 40.12 shall apply); and

         (e)      the contents of the Training courses and materials comprised
                  within the Deliverables are correct and free from defects
                  (failing which clause 40.13 shall apply).

40.2     In the event of a failure of any item of the Works or Deliverables or
any component or part of any such item to meet the conditions specified in
clause 40.1, the Contractor shall at its own cost take such actions and carry
out such additional Works promptly to repair or replace or correct such affected
items or components or parts as are necessary to retain and/or restore the
specified functional and/or performance requirements and without any adverse
impact on the Contractor's compliance with the Master Level Schedule. The
Contractor shall prepare and furnish to ICO data and reports applicable to any
corrective action required as set out in this clause 40, including but not
limited to revision and updating of all affected data called for under this
Agreement and the Contractor shall bear the cost thereof.

40.3     If the Contractor fails to repair or replace such items or parts
promptly in accordance with this clause 40 then the Contractor shall pay the
costs incurred by ICO in procuring such items or parts from another supplier and
accomplishing the repair or in modifying such items or parts or other parts of
the Works and/or Deliverables in order to achieve the specified functional
and/or performance requirements. Any action taken by ICO pursuant to this clause
40.3 shall not affect the Contractor's warranty. ICO shall use reasonable
efforts to notify the Contractor of its intention to exercise its rights under
this clause 40.3 a reasonable period in advance of so doing.

40.4     Any item of the Works or Deliverables or any component or part of any
such item corrected or furnished in replacement shall be guaranteed on the terms
of this clause to the same extent as would have applied if the item or part
concerned had initially formed a Deliverable. Where the corrected or replacement
item or part of a Deliverable (not being a printed circuit board or an item of a
similar nature) is brought into operation as a part of the ICONET Ground
Facilities more than twelve months after the commencement of the warranty period
referred to in clause 40.1 applicable to such item or part, this guarantee shall
continue for the period of twelve months from the date of the installation and
bringing into operation at a Site of that replacement item or part. In addition,
the period of warranty relating to any item or part supplied as a Spare shall
run for a period of 24 months after the date referred to in clause 40.1 as the
date of commencement of the warranty in respect of the Deliverables originally
supplied or if later until the expiry of the period of twelve months from the
date of the installation and bringing into operation at a Site of that Spare as
a replacement item or part.

40.5     Upon ICO becoming aware of the occurrence of any defect in or fault
affecting any of the Works or any other item which is subject to the
Contractor's guarantee:

         (a)      ICO shall submit to the Contractor a written fault report in
                  the agreed form (the form and content of which is to be agreed
                  between the parties within 9 months of the date of this
                  Agreement) describing, so far as it is able, the symptoms of
                  the failure and, to the extent possible, identifying the
                  item(s) or part(s) causing such failure or having a defect;

         (b)      if ICO reasonably considers immediate rectification of the
                  defect or fault is required to prevent or minimise the risk of
                  damage or injury or performance degradation to:

                           (i)      the operators of the Equipment or Software;
                                    or

                           (ii)     the Equipment or Software itself; or

                           (iii)    the location in which the Equipment or
                                    Software is installed; or

                                       41
<PAGE>   1808
                           (iv)     other equipment or software located with or
                                    connected to the Equipment or Software,

                  ICO shall include this information in its report and may
                  (without in any way affecting its rights under this clause 40)
                  proceed with rectification of the defect or fault to the
                  extent reasonably considered necessary in the circumstances;

         (c)      the parties shall (other than in relation to Software), within
                  5 days of the Contractor's receipt of such report, agree the
                  manner and time in which such defect or fault is to be
                  rectified;

         (d)      ICO shall pack for shipment and arrange the shipment of any
                  defective or faulty item(s) or part(s) that the Contractor
                  directs be shipped to the NEC Team member premises as
                  designated by the Contractor and in the case that the
                  Contractor directs the travelling wave tubes (TWTs) be
                  shipped, ICO shall use a TWT shipping container for returning
                  the TWT if such a shipping container is available at the Site
                  from which the shipment is to be made; and

         (e)      ICO shall arrange for the exportation of the defective or
                  faulty item(s) or part(s), and, subject to clause 28.9, the
                  re-importation for any repaired or replacement item(s) or
                  part(s).

40.6     The Contractor shall provide the necessary information and documents
for the re-importation of any repaired or replacement items or parts (such
information and documents to be of a nature similar to those required for the
purposes of clauses 26 and 28) and reimburse ICO, in accordance with clause
17.3, for all costs and expenses that ICO incurs:

         (a)      in complying with the requirements of this clause 40,
                  including any packaging, transportation, shipping charges,
                  customs duties, customs bonds, sales taxes, VAT or charges of
                  a similar nature which ICO incurs for the exportation or
                  re-importation of item(s) or part(s), or for performing any
                  rectification work;

         (b)      associated with disassembly and/or re-assembly of larger items
                  or parts where their disassembly is required for the purpose
                  of enabling fault diagnosis to take place and/or removal
                  and/or replacement of any other affected item or part.

40.7     In the case of an Equipment defect or fault, the Contractor will, at
its discretion, repair or replace at its own cost the defective or faulty
Equipment in a timely manner so as to minimise any interruption or risk of
interruption to the functioning of the ICO System and the Contractor shall take
all such actions as are reasonably required to restore functionality to the ICO
System to the same level as it was immediately prior to, or should have been in
the absence of (but without imposing any obligation on the Contractor in respect
of unconnected defects or faults in the elements of the ICO System other than
the ICONET Ground Facilities), such defect or fault and use its best efforts to
avoid and minimise any interruption or risk of interruption to the functioning
of the ICO System.

If, at the relevant Site, ICO shall have an appropriate Spare, in order to avoid
and minimise any interruption or risk of interruption to the functioning of the
ICO System, ICO shall use the same to replace the defective or faulty Equipment
but without prejudice to the obligations of the Contractor, at no cost to ICO,
to supply a replacement for such Spare and to attend the Site to make any
necessary repair to the item or part of the Equipment suffering the defect or
fault.

In the absence of ICO holding an appropriate Spare at the relevant Site or where
the Contractor is not able to implement an immediate repair or replacement of
the defective or faulty Equipment, ICO may, if possible and where it urgently
requires the availability of the relevant Equipment, make immediate repairs to
any defective or faulty Equipment without affecting any of its rights under this
clause 40.

40.8     In the event of any Software defect or failure:

                                       42
<PAGE>   1809
         (a)      ICO shall inform the Contractor of the nature of the Software
                  defect or fault (so far as it is able to identify the same) in
                  the agreed manner, following the reporting, fault escalation
                  and required response processes to be agreed between the
                  parties (which process shall be agreed not less than 6 months
                  before the scheduled commencement of the Warranty period
                  specified in clause 40.1);

         (b)      the Contractor will analyse the reported Software defect or
                  fault and the Contractor shall, at no cost to ICO, supply a
                  temporary fix to rectify the Software defect or fault without
                  avoidable delay and in a timely manner so as to minimise or
                  avoid any interruption or risk of interruption to the
                  functioning of the ICO System and minimises the effects of the
                  defect or fault;

         (c)      the Contractor, at no cost to ICO, will notify ICO by
                  telephone, facsimile or e-mail how to fix the defect or fault
                  using Site personnel, or make and supply the "bug" fix,
                  maintenance release or update; and

         (d)      the Contractor shall, at no cost to ICO, take all such actions
                  as are reasonably required to restore on a permanent basis
                  functionality to the ICO System to the same level as it was
                  immediately prior to, or should have been in the absence of
                  (but without imposing any obligation on the Contractor in
                  respect of unconnected defects or faults in the elements of
                  the ICO System other than the ICONET Ground Facilities), such
                  defect or fault and will use its best efforts to avoid and
                  minimise any interruption or risk of interruption to the
                  functioning of the ICO System and will as rapidly as is
                  possible, using the best efforts of the NEC Team, and in any
                  event within three (3) months (or such longer time as may be
                  agreed by ICO) of the occurrence of the Software defect or
                  fault, prepare and issue a permanent fix to the Software for
                  installation at all Sites where the Software is installed.

40.9     the Contractor will, where any defect or fault cannot for any reason be
repaired or rectified in accordance with clauses 40.7 or 40.8, at its own cost,
dispatch appropriately qualified engineer(s) to the Site to identify and repair
or rectify any defective or faulty Equipment or Software without avoidable delay
and within a time period which minimises the effects of such defect or fault.
ICO shall use reasonable efforts in the period ending on 12 August 2002, or such
later date as shall be determined by reference to clause 40.1, to hold a Spare
of such items at such Sites as has been recommended on a reasonable basis by the
Contractor prior to the date of this Agreement. save where the recommended Spare
has been used already at a Site for an Equipment defect or fault (and it has not
been replaced or returned to the relevant Site by the Contractor), to reinstate
any Spares which are used. The Contractor will have no obligation under the
terms of this clause 40 in respect of damage arising solely from a failure by
ICO to maintain Spares in accordance with this clause 40.9.

40.10    The Contractor will, during the period of three years from Acceptance
Set 5 Completion Date, submit a written report quarterly within one month after
the end of the relevant quarter summarising:

         (a)      for each of the Sites, all Equipment defects or faults which
                  were notified by each NEC Team member during the previous
                  quarter and identifying how they were processed for repair or
                  replacement;

         (b)      for each of the Sites, all Software defects or faults which
                  were reported to each NEC Team member during the previous
                  quarter and identifying how they were rectified;

         (c)      an analysis of the trend of Equipment and Software defects or
                  faults of which members of the NEC Team have become aware
                  (both as a consequence of paragraphs (a) and (b) above and,
                  separately, from other sources), including re-occurring
                  defects and faults and proposed remedial actions and the
                  periods taken to implement the same, by Equipment and Software
                  type and source;

                                       43
<PAGE>   1810
         (d)      for Equipment repairs or replacements, the average turnaround
                  time, the longest turnaround time with the reason and the
                  number and description of those remaining to be implemented
                  with the predicted date for completion and time period since
                  the defective or faulty item or part was first reported as
                  faulty or defective and returned, for each NEC Team member;

         (e)      for Software temporary fixes, the average turnaround time, the
                  longest turnaround time with the reason and the number and
                  description of those remaining to be implemented with a
                  predicted date for completion and total elapsed time from the
                  date that any member of the NEC Team first received
                  notification of the original fault or defect to its predicted
                  date for implementation, for each NEC Team member;

         (f)      for Software permanent fixes, the number and description of
                  those implemented during the period, the number and
                  description of those remaining to be implemented and the
                  number and description of those remaining to be implemented
                  with a predicted date for completion and total elapsed time
                  from the date any member of the NEC Team first became aware of
                  the original fault or defect to its predicted date for
                  implementation, for each NEC Team member; and

         (g)      such other information as ICO may reasonably require to assess
                  the reliability of the Equipment and Software (including any
                  individual parts, components, sub-systems and programs) and
                  the efficiency and performance of the Contractor and its
                  compliance with its warranty obligations, and in particular
                  the means by which it is ensuring that there is no avoidable
                  interruption to services provided through the ICO System as a
                  consequence of any Equipment or Software defect or fault.

40.11    If requested by ICO, the Contractor will provide ICO with a written
report describing the results of the analysis of any specific Equipment or
Software defect or fault notified to the Contractor in respect of any Equipment
or Software whilst the same is under warranty pursuant to this clause for which
ICO has requested a separate report. Any such report shall be provided promptly
following ICO's request and shall address all those matters which ICO shall have
prescribed in its request.

                                       44
<PAGE>   1811
40.12    In the event of defects or faults in any of the content of the
documentation, the Contractor will:

         (a)      unless otherwise agreed by ICO, correct and re-issue the
                  affected documentation within one month of the Contractor
                  first becoming aware of the same in the same formats,
                  quantities and to the same places of delivery as the provision
                  of the original documentation;

         (b)      will make all necessary rectifications to any part of the
                  ICONET Ground Facilities which has been affected adversely as
                  a result of a defect or fault in the contents of the
                  documentation; and

         (c)      if the functionality of the ICO System shall have been
                  affected in any way by such defect or fault, at its own cost,
                  take all such actions as are reasonably required to restore
                  functionality to the ICO System to the same level as it was
                  immediately prior to, or should have been in the absence of
                  (but without imposing any obligation on the Contractor in
                  respect of unconnected defects or faults in the elements of
                  the ICO System other than the ICONET Ground Facilities), such
                  defect or fault and use its best efforts to avoid or minimise
                  any interruption or risk of interruption to the functioning of
                  the ICO System.

40.13    In the event of incorrect or defective content of Training courses or
materials the Contractor shall:

         (a)      unless the parties agree otherwise, without delay and in each
                  of the locations at which the incorrect or defective Training
                  shall have been given, provide remedial Training in the same
                  manner as the provision of the original Training;

         (b)      make all necessary rectifications to any part of the ICONET
                  Ground Facilities which has been affected adversely as a
                  result of incorrect or defective content of Training courses
                  or materials; and

         (c)      if ICO shall demonstrate to the reasonable satisfaction of the
                  Contractor that the functionality of the ICO System shall have
                  been affected in any way by such defect or fault, at its own
                  cost, take all such actions as are reasonably required to
                  restore functionality to the ICO System to the same level as
                  it was immediately prior to, or should have been in the
                  absence of (but without imposing any obligation on the
                  Contractor in respect of unconnected defects or faults in the
                  elements of the ICO System other than the ICONET Ground
                  Facilities), such defect or fault and use its best efforts to
                  avoid or minimise any interruption or risk of interruption to
                  the functioning of the ICO System.

40.14    The rights and remedies of ICO under this clause 40 are in addition to,
and do not limit, any other rights and remedies ICO may have. In particular,
ICO's rights under this Agreement arising out of fraud or such gross mistakes as
amount to fraud are not limited in point of time or by this clause.
Notwithstanding the time limits specified in clause 40.1, if ICO shall notify
the Contractor of a claim for breach of warranty under this clause 40 relating
to any latent defect in any of the Deliverables or other Works at any time
within five years after Acceptance Set 4 Completion Date for Acceptance Set 4
Deliverables and within five years after Acceptance Set 5 Completion Date for
Acceptance Set 5 Deliverables such claim shall be regarded as a claim properly
made under this clause.

40.15    The warranty provisions of this clause will not apply to the following:

         (a)      operations or maintenance of the Equipment or Software by any
                  person who has not been properly trained (except any
                  representatives nominated or authorised by the Contractor or
                  Sub-Contractors) or operations, maintenance, repair and
                  inspection of the Equipment or Software carried out by any
                  person other than in accordance with manuals, documents and
                  information provided to ICO by the

                                       45
<PAGE>   1812
                  Contractor or any Sub-Contractor or any representatives
                  nominated or authorised by the Contractor or Sub-Contractors;

         (b)      normal wear and tear;

         (c)      consumption of consumables (not earlier than the usual time
                  periods or usage patterns during which those consumables may
                  be expected to continue to perform);

         (d)      Equipment or Software that has been subject to alterations or
                  modifications not authorised by the Contractor or any
                  Sub-Contractor or any maintenance representatives nominated or
                  authorised by the Contractor or Sub-Contractors;

         (e)      Equipment or Software failures that are associated directly
                  with ICO's failure to maintain the operational environment
                  specified by the Contractor; and

         (f)      the Deliverables required to be delivered under Annex 11 to
                  the Statement of Work to which this clause 40 shall apply save
                  to the extent specifically modified as set out therein.

40.16    The travelling wave tubes (TWTs) shall be free from defects in material
and workmanship under normal operating conditions within published ratings and
under normal use in accordance with the Contractor's operating instructions for
* hours of heater operation or 18 months from the date of shipment from the
Contractor, whichever occurs first. If any defect in material or workmanship is
found in the TWT under said conditions within said period, the Contractor will,
at ICO's discretion, either replace the TWT at the price to be calculated
according to the formula (1) below or refund to ICO the amount to be calculated
according to the formula (2) below (Pro-Rate Adjustment), provided that notice
of any such alleged defect shall be given in accordance with this clause 40.

         (1)      Replacement Price = Applicable Selling Price of the TWT when
                  the Order for the Replacement is Placed

                           x       Hours of Heater Operation
                                   -------------------------
                                   Warranted Hours

         (If the hours of TWT operation is less than five percent (5%) of the
         Warranted Hours, the Replacement Price shall be deemed zero (0)).

         (2)      Amount of Refund = Price of the TWT Paid by ICO

                           x       (Warranted Hours - Hours of Heater Operation)
                                   ---------------------------------------------
                                   Warranted Hours

         (If the hours of TWT operation is less than five percent (5%) of the
         Warranted Hours, the Amount of Refund shall be deemed equal to the
         Price of the TWT paid by ICO).

PART F - INTELLECTUAL PROPERTY RIGHTS

41       INTELLECTUAL PROPERTY RIGHTS AND CONFIDENTIALITY

41.1     ICO and the Contractor acknowledge that:

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

                                      46
<PAGE>   1813
         (a)      NEC Team Intellectual Property is owned by the NEC Team
                  member(s) generating such Intellectual Property Rights;

         (b)      ICO Intellectual Property is owned by ICO.

41.2     The Contractor hereby grants and shall procure the grant by the other
members of the NEC Team to ICO irrevocable worldwide non-exclusive paid-up
licences (with right to sub-licence) to use NEC Team Intellectual Property
(except for NEC Team Intellectual Property incorporated in Software, as provided
for in clause 41.3) incorporated by the NEC Team into the Deliverables delivered
by the Contractor solely for the purposes of operating or having operated in
accordance with the provisions of this Agreement the Deliverables in the ICO
System.

41.3.1   The Contractor hereby grants and shall procure the grant by the other
members of the NEC Team to ICO irrevocable worldwide non-exclusive paid up
licences (with right to sub-licence) to run the object code versions of Software
solely for the purposes of operating or having operated in accordance with the
provisions of this Agreement the Deliverables delivered by the Contractor in the
ICO System.

41.3.2   The licences granted in or pursuant to clause 41.3.1 do not include any
right to translate, amend, modify or adapt such Software in source code form or
in object code form. Upon request the Contractor will, and will procure that the
other members of the NEC Team will, provide such interface information as ICO
may reasonably request in order to make other computer programs interoperable
with any of the Software. Compliance with this obligation shall also be deemed
to be compliance in respect of that Software with clause 4.1.(i).

41.3.3   ICO shall not make any copies of the Software except for the purpose of
operating the Deliverables in the ICO System or for archive or back up purposes.

41.3.4   The Software licensed under this Agreement may be delivered in an
inseparable package also containing other computer programs. In order to avoid
doubt ICO is not granted any licence to use such other computer programs.

41.3.5   ICO shall treat all Software and other computer programs included in
any inseparable package as confidential and subject to the provisions of clause
41.6.

41.3.6   For the avoidance of any doubt ICO receives no ownership interest in
any of the Software or other computer programs included in any inseparable
package or in each case in any of the Intellectual Property Rights thereto.

41.4.1   ICO hereby grants to the Contractor and agrees to grant to each of the
other members of the NEC Team irrevocable worldwide, non-exclusive licences with
right to sub-licence to use the ICO Intellectual Property for the purposes of
developing, supplying, manufacturing, installing, operating, upgrading and
expanding the Deliverables for ICO.

41.4.2   Without prejudice to the provisions of clause 41.6, ICO further agrees
not to assert any ICO Intellectual Property comprised in the Deliverables
against:

         (a)      the members of the NEC Team in respect of the development,
                  manufacture or sale of equipment or software incorporating any
                  ICO Intellectual Property comprised in the Deliverables; or

         (b)      the use by the members of the NEC Team or their third party
                  customers of equipment or software acquired directly or
                  indirectly from the members of the NEC Team incorporating any
                  ICO Intellectual Property comprised in the Deliverables other
                  than in or in conjunction with Satellite Based Communications
                  Systems; or

                                       47
<PAGE>   1814
         (c)      the use by the members of the NEC Team or their third party
                  customers of equipment or software acquired directly or
                  indirectly from the members of the NEC Team incorporating any
                  ICO Intellectual Property (other than ICO Intellectual
                  Property the subject of a patent or patent application)
                  comprised in the Deliverables in or in conjunction with
                  Satellite Based Communications Systems:

                  (i)      where such ICO Intellectual Property is comprised in
                           the system areas not identified as Key Features,
                           after the Acceptance Set 4 Completion Date; and

                  (ii)     where such ICO Intellectual Property is comprised in
                           the system areas identified as Key Features after 1st
                           January 2002,

                  provided that:

                  (i)      if any third party not being a member of the NEC Team
                           receiving the benefit of the provisions of this
                           clause 41.4.2 asserts any Intellectual Property
                           Rights against ICO, then ICO reserves the right to
                           assert ICO Intellectual Property against that party;
                           and

                  (ii)     if any NEC Team member asserts any Intellectual
                           Property Rights other than in respect of a breach of
                           clause 41, then ICO reserves the right to assert ICO
                           Intellectual Property against that NEC Team member.

41.4.3   For the avoidance of doubt, nothing in clauses 41.4.1 and 41.4.2 shall
be construed as granting any licence under ICO patents to any third party
customers of any NEC Team member(s) to use such equipment.

41.5.1   The Contractor hereby undertakes that it will not and agrees to procure
that the other members of the NEC Team will not either alone or acting together
make available directly or indirectly for commercial use features which are new
and developed by or at the direction of the members of the NEC Team under this
Agreement in the system areas identified as Key Features to any other operator
of Satellite Based Communications Systems until 1st January 2002 without the
express written consent of ICO provided always that nothing shall restrict the
members of the NEC Team either alone or acting together from making available
directly or indirectly for commercial use at any time by any person features
which are the same as or substantially similar to the features which are new and
developed by or at the direction of the members of the NEC Team under this
Agreement in the system areas identified as Key Features where such features are
the result of work done independently of the work done under this Agreement or
from exploiting NEC Team Intellectual Property generated prior to the date of
this Agreement and without otherwise breaching the terms of this Agreement.

41.5.2   For the avoidance of doubt the fact that work done independently of the
work done under this Agreement results in a notification under clause 9.4 to ICO
and a related change under clause 9 does not bring such work within the scope of
the restrictions on making available directly or indirectly for commercial use
features which are new and developed by or at the direction of the members of
the NEC Team under this Agreement set out in clause 41.5.1.

41.6.1   ICO on the one hand and the Contractor on the other hand may provide
Confidential Information to each other during the course of this Agreement and
all such disclosures of such information will be treated as confidential by the
party receiving the disclosure and subject to the provisions of clause 41.6.3,
the receiving party shall maintain such information in confidence and shall not
use or disclose such information except as expressly authorised in this
Agreement. Notwithstanding the foregoing, where any information is disclosed
orally or is visually displayed, then

                                       48
<PAGE>   1815
such information shall be regarded as Confidential Information if identified as
Confidential at the time of disclosure and the disclosing party within thirty
days from initial disclosure specifically identifies in writing to the receiving
party such oral or visually displayed information as being "Confidential
Information".

41.6.2   Each party agrees to use the same care and discretion to avoid
unauthorised disclosure, publication or dissemination of Confidential
Information supplied by the other party and the unauthorised use thereof as the
receiving party uses with respect to similar information of its own, but in no
event, less than reasonable care. Each party further agrees that commercial
information designated as Confidential Information shall not be disclosed to any
third party without the express prior written consent of the disclosing party.
Should it become legally necessary for the receiving party to disclose to a
third party certain of the Confidential Information supplied by the other party,
it shall be disclosed only to the extent required by law or court of competent
jurisdiction and to the extent permitted by law after prior written notification
to the other party of the requirement for disclosure.

41.6.3   The obligations of confidentiality and restrictions on use specified in
this clause 41.6 shall not apply to any information that:

         (a)      is already in the possession of the receiving party without
                  obligation of confidentiality at the time of disclosure;

         (b)      is independently developed by the receiving party or any of
                  its affiliates or subcontractors without access to or any use
                  of any of the Confidential Information as evidenced by
                  appropriate documents;

         (c)      is or becomes publicly available without breach of this
                  Agreement and without the fault of the receiving party or any
                  of the affiliates or subcontractors; or

         (d)      is lawfully received by the receiving party from a third
                  party.

Specific information shall not be deemed to be in the possession of the
receiving party merely because it is embraced by more general information in the
receiving party's possession.

41.6.4   Each party shall use all reasonable endeavours, including inserting and
enforcing the appropriate contractual provisions in any agreements with any
subcontractors and by requiring the compliance by its employees with appropriate
obligations, to ensure the confidentiality of all Confidential Information
provided to it by the other party but so that nothing in this clause 41.6 shall
preclude any party from disclosing such information on such basis only for the
performance of and for the purposes contemplated by this Agreement to a third
party which has prior to receiving such information executed a confidentiality
agreement in favour of the receiving party and under which the receiving party
holds the benefit of such third party's undertakings on behalf of itself and the
party whose Confidential Information is so disclosed.

41.6.5   The confidentiality obligations in this clause 41.6 shall survive the
expiration or termination of this Agreement for whatever cause.

41.7     Subject to clause 41.9 if any member of the NEC Team is not the legal
and beneficial owner of any part of the Intellectual Property Rights which it
incorporates into the Deliverables but only has a right to use the same pursuant
to a licence then ICO's right to use the same shall be such as is permitted by
the licence granted by the owners thereof to the relevant member of the NEC Team
and in the event that such licence prevents or restricts ICO's use of any
functionality of the Deliverables in connection with the ICO System the
Contractor shall use, and shall procure that the relevant member of the NEC Team
shall use all reasonable endeavours so as to obtain at minimal cost from such
third party as owns such part of the Intellectual Property Rights the right for
ICO to use the same without prevention or restriction as to any functionality of
the Deliverables. Any costs reasonably incurred by

                                       49
<PAGE>   1816
the relevant member of the NEC Team in this connection shall be borne by that
member of the NEC Team. If it shall not, or it appears likely that it will not,
prove possible to secure appropriate rights for ICO to use or incorporate any
such third party rights in the Deliverables in connection with the ICO System,
the Contractor shall at its own cost, procure that a suitable alternative method
of meeting the requirements of the Deliverables shall be produced.

41.8     For the avoidance of doubt the parties hereby agree that the provisions
of clause 8 of the IPC continue to apply to Intellectual Property Rights
comprised in the deliverables supplied under the IPC or reduced into practice in
the work done under the IPC and that notwithstanding any of the provisions of
clause 8 of the IPC the provisions of this clause 41 shall apply to all work
done pursuant to this Agreement in the development and supply of the
Deliverables.

41.9.1.1 ICO will indemnify each of the members of the NEC Team (including
Sub-Contractors or permitted sub-licensees of any member of the NEC Team)
against all claims, demands, actions, costs, expenses (including but not limited
to legal costs on a solicitor and client basis) and damages rising from or
incurred by reason of:

         (a)      any infringement or alleged infringement of US Patent Nos.
                  5,415,368; 5,439,190; 5,433,726 and 5,554,624 together with
                  any continuations, divisions, re-issues, re-examinations and
                  foreign counterparts thereof arising out of the manufacture,
                  use, sale, exportation or importation of the Deliverables; or

         (b)      any infringement or alleged infringement of any other
                  Intellectual Property Rights arising out of the manufacture,
                  use, sale, exportation or importation of those features of the
                  Deliverables specified by ICO in the functional objectives and
                  requirements of the IGFR and the Statement of Work.

41.9.1.2 The Contractor shall promptly notify ICO if any claim or demand is made
or action brought against any of the members of the NEC Team (or any
Sub-Contractor or permitted sub-licensee of any member of the NEC Team) to which
clause 41.9.1.1 may apply. ICO shall at its own expense conduct any litigation
arising therefrom and all negotiations in association therewith and the members
of the NEC Team hereby agree to grant to ICO exclusive control of any such
litigation and negotiations.

41.9.1.3 The NEC Team shall at the request of ICO afford to ICO all reasonable
assistance for the purpose of contesting any claim or demand made or action
brought against any of the members of the NEC Team (or any Sub-Contractors or
permitted sub-licensees of any member of the NEC Team) to which clause 41.9.1.1
may apply. ICO shall reimburse any of the members of the NEC Team for all costs
and expenses (including legal expenses) incurred in so doing.

41.9.1.4 The Contractor shall not make any admissions which may be prejudicial
to the defence or settlement of any claim, demand or action for infringement or
alleged infringement of any Intellectual Property Rights to which clause
41.9.1.1 may apply.

41.9.1.5 If a claim or demand is made or action to which clause 41.9.1.1 may
apply or demand is made or brought ICO may at its own expense:

         (a)      procure a licence to use the relevant Intellectual Property
                  Rights on terms which are approved by the Contractor (such
                  approval not to be unreasonably withheld or delayed); or

         (b)      take such other action as the Contractor may agree (such
                  agreement not to be unreasonably withheld or delayed) as
                  appropriate to avoid or settle such claim, demand or action,

                                       50
<PAGE>   1817
provided in each case, that ICO provides evidence reasonably satisfactory to the
Contractor that it has sufficient financial resources to meet any commitment
which it makes pursuant to this clause 41.9.1.5 on behalf of itself or any
member of the NEC Team.

41.9.2.1 The Contractor will indemnify ICO (including sub-contractors or
permitted sub-licensees of any member of ICO) against all claims, demands,
actions, costs, expenses (including but not limited to legal costs on a
solicitor and client basis) and damages arising from or incurred by reason of
any infringement or alleged infringement of any Intellectual Property Rights
relating to the use, possession, importation or exportation of the Deliverables
in connection with the ICO System by ICO or its sub-licensees save where such
claims, demands, actions, costs, expenses, losses or damages are the subject of
ICO's indemnity to the members of the NEC Team (and any Sub-Contractors or
permitted sub-licensees of the NEC Team) under clause 41.9.1.

41.9.2.2 ICO shall promptly notify the Contractor if any claim or demand is made
or action brought against ICO to which clause 41.9.2.1 may apply. The relevant
member of the NEC Team shall at its own expense conduct any litigation arising
therefrom and all negotiations in association therewith and ICO hereby agrees to
grant to the NEC Team exclusive control of any such litigation and negotiations.

41.9.2.3 ICO shall at the request of the relevant member of the NEC Team afford
to the NEC Team member all reasonable assistance for the purpose of contesting
any claim or demand made or action brought against ICO to which clause 41.9.2.1
may apply. The Contractor shall reimburse ICO for all costs and expenses
(including legal expenses) incurred in so doing.

41.9.2.4 ICO shall not make any admissions which may be prejudicial to the
defence or settlement of any claim, demand or action for infringement or alleged
infringement of any Intellectual Property Rights to which clause 41.9.2.1 may
apply.

41.9.2.5 If a claim or demand is made or action to which clause 41.9.2.1 may
apply or demand is made or brought, the relevant NEC Team member may at its own
expense:

         (a)      procure a licence to use the relevant Intellectual Property
                  Rights on terms which are approved by ICO (such approval not
                  to be unreasonably withheld or delayed); or

         (b)      take such other action as ICO may agree (such agreement not to
                  be unreasonably withheld or delayed) as appropriate to avoid
                  or settle such claim, demand or action,

provided in each case that the NEC Team member provides evidence reasonably
satisfactory to ICO that it has sufficient financial resources to meet any
commitment which it makes pursuant to this clause 41.9.2.5 on behalf of itself.

41.9.2.6 The foregoing provisions of clause 41.9.2 shall not apply insofar as
any such claim demand or action is in respect of:

         (a)      the use by or on behalf of ICO or its sub-licensees of the
                  Deliverables in combination with products services software or
                  data not described in IGFR, the Statement of Work and the High
                  Level System Description and not supplied by the NEC Team
                  under this Agreement; or

         (b)      the alteration of any of the Deliverables otherwise than by a
                  member of the NEC Team under this Agreement.

41.9.2.7 The members of the NEC Team shall notify ICO in writing should any of
them become aware of reasonable grounds to believe that the use of any of the
Deliverables with other products or services (not being Deliverables) with which
the NEC Team is aware that ICO will use the Deliverables may infringe the
Intellectual Property Rights of any third party.

                                       51
<PAGE>   1818
41.9.3.1 Save as provided in clause 49.1.3.2, in no event shall:

         (a)      the NEC Team's entire liability to ICO (or any permitted
                  sub-licensees) under clause 41.9; or

         (b)      ICO's entire liability to the members of the NEC Team (or any
                  Sub-Contractor or permitted sub-licensee of any NEC Team
                  member) under clause 41.9,

exceed $75,000,000 and the existence of one or more claims or lawsuits within
this clause 41.9 shall not extend this amount, and in no event shall the NEC
Team or ICO be liable for incidental, special or consequential damages incurred
by the other save and insofar as they are included in any claim by a third party
for which ICO or the NEC Team is indemnified under this clause 41.9.

41.9.3.2 The liability of ICO to the members of the NEC Team (or any
Sub-Contractors or permitted sub-licensees of any member of the NEC Team) under
clause 41.9.1.1(a) in respect of any claim against such party based upon US
Patent Nos. 5,415,368; 5,439,190; 5,433,726 and 5,554,624 or any continuations,
divisions, re-issues, re-examinations and foreign counterparts thereof shall be
unlimited.

41.9.3.3 Notwithstanding any other provisions in this Agreement, this clause
41.9 states the entire liability between ICO on the one hand and the Contractor
and the other members of the NEC Team on the other with regard to the
infringement of any Intellectual Property Rights in connection with the use of
the Deliverables in connection with the ICO System. For the avoidance of doubt
therefore wording appearing elsewhere in this Agreement relating to compliance
with laws, regulations and all similar terms shall not apply in respect of any
infringement or alleged infringement by the NEC Team of Intellectual Property
Rights of a third party or any related matters (including, without limitation,
clauses 4.1(g), 4.1(h), 4.1(n), 6.1(c), 6.1(d) and 64).

41.10    The provisions of this clause 41 shall (save in respect of clause 54)
prevail over any other provisions relating to Intellectual Property Rights
appearing elsewhere in this Agreement.

[42]     NOT USED.

[43]     NOT USED.

                                       52
<PAGE>   1819

PART G - CONTINUOUS SUPPORT AND OPTIONS

44       MANUALS AND TECHNICAL DIAGRAMS

The Contractor is required to produce and submit to ICO those operations and
maintenance manuals, instruction manuals, technical diagrams, technical drawings
and all other documents set out in Annex 6 of the Statement of Work.

45       TRAINING

The Works shall include training and instruction for ICO Staff in accordance
with Annex 5 of the Statement of Work so as to enable ICO Staff to operate all
functions of, and to maintain, the ICONET Ground Facilities The completion of
the Works by the Contractor in respect of this clause 45 is, for all purposes of
this Agreement, dependent upon the parties jointly establishing an effective
means to enable the Contractor to implement this element of the Works, based
upon the provisions of Annex 5 of the Statement of Work.

46       OPTIONS, SUPPORT SERVICES AND FUTURE SUPPLIES

46.1     The Contractor shall, and shall ensure that Sub-Contractors shall,
provide to ICO at ICO's option, at the specified prices (or where none has been
fixed, at fair and reasonable prices which in no event exceed the prices paid
for comparable items and services to be delivered under this Agreement) as
determined in accordance with Schedule 9 under this Agreement:

         (a)      the items of Equipment and the related Works described as the
                  Options specified in Annex 1 of the Statement of Work;

         (b)      further supplies of the Equipment for a period to the end of
                  2010 with extended availability subject to clause 46.4 and
                  46.5, at ICO's option, for an additional period of 5 years
                  commencing on 1 January 2011;

         (c)      further supplies of Spares for a period to the end of 2015
                  with extended availability subject to clauses 46.4 and 46.5,
                  at ICO's option, for an additional period of 5 years
                  commencing on 1 January 2016;

         (d)      maintenance and support for the Software for a period to the
                  end of 2015 with extended availability, at ICO's option, for
                  an additional period of 5 years commencing on 1 January 2016;

         (e)      the availability of skills and resources for a period to the
                  end of 2010 with extended availability, at ICO's option, for
                  an additional period of 5 years commencing on 1 January 2011
                  for the provision of services to support further capacity
                  and/or functional enhancements to the ICONET Ground Facilities
                  or the ICO System, including the provision of system
                  integration and programme management services;

         (f)      the availability of skills and resources for a period to the
                  end of 2015 with extended availability, at ICO's option, for
                  an additional period of 5 years commencing on 1st January 2016
                  for the ongoing operations and maintenance support, including
                  consultative technical advice in relation to the Deliverables
                  furnished under this Agreement;

         (g)      the availability of functional enhancements to the ICONET
                  Ground Facilities or for the ICO System to deliver
                  functionalities similar to those available in cellular
                  communications systems, within timeframes to enable ICO to be
                  competitive with such cellular communications systems;

                                       53
<PAGE>   1820
         (h)      assistance and co-operation in the identification, development
                  and implementation of future ICO System specific
                  functionalities; and

         (i)      the Contractor should use its reasonable endeavours to obtain
                  similar guarantees from its suppliers and Sub-Contractors for
                  Equipment and Spares as have been supplied to the Contractor.

The options to extend the availability periods referred to in clauses 46.1(c),
(d), (e) and (f) may be exercised only if the option to extend the availability
period referred to in clause 46.1 (b) is exercised by ICO. ICO shall notify the
Contractor in writing of its exercise of the options to extend the availability
periods referred to in clauses 46.1 (b) to (f) at least one year prior to the
expiry of the original period.

46.2     This clause shall in no way bind ICO to order any particular quantity
of Equipment, Spares or services from the Contractor. The Contractor
acknowledges and agrees that ICO may, if ICO and a Sub Contractor so agree,
enter into separate contracts for the provision of operations and maintenance
support and advice.

46.3     The Contractor shall within 24 months of the date of this Agreement
provide ICO with a list of alternate manufacturers and suppliers, insofar as
they exist, for the Equipment, Software and Spares (detailing as a minimum the
name and address of the alternate source and the model or part numbers of the
Equipment, Software and Spares and the alternate source to which they refer)
supplied by each Sub-Contractor. The Contractor shall update this list once
every 12 months. The use of Equipment, Software or Spares from any supplier or
manufacturer, provided that they comply with the information provided by the
Contractor, shall not affect any warranties given by the Contractor under this
Agreement.

46.4     If during the extended availability periods specified in clauses
46.1(b) or (c) any member of the NEC Team, the affiliates of any member of the
NEC Team, or their direct sub-contractors intend to discontinue the manufacture
of Equipment or Spares the Contractor shall forthwith give 9 months' written
notice to ICO of such intention and afford ICO the opportunity (which shall be
exercised within 6 months of receiving such notification) of ordering such
quantities of Equipment or Spares at prices determined in accordance with 46.1,
as ICO shall reasonably require and the Contractor shall procure the supply of
such quantities at the prices so determined. Alternatively, the parties may
agree within the said period of 6 months that the Contractor will sell or
license to ICO, or procure the sale and licence of, such drawings, patterns,
specifications and other information as ICO shall require to enable it to make
or have made such Equipment or Spares.

46.5     The Contractor shall take all reasonable efforts to ensure the
continued availability throughout the extended availability periods specified in
clause 46.1(b) and (c) of Equipment and Spares from the NEC Team members, the
affiliates of any member of the NEC Team, and their direct Sub-Contractors. In
addition to the notification required under clause 46.4, the Contractor shall
inform ICO, as soon as it can reasonably be established, that Equipment and
Spares provided by the NEC Team members, the affiliates of any member of the NEC
Team, or its direct Sub-Contractors are becoming obsolescent and shall work with
ICO to minimise the input of such obsolescence on the ICONET Ground Facilities
and the ICO System, including proposals for the migration to newer or alternate
technologies.

46.6     If during the period specified in clauses 46.1(b), (c) and (d), the
Contractor or any Sub-Contractor (in the absence of agreement as aforesaid)
either:

         (a)      fails to make available to ICO with reasonable despatch all
                  such Equipment, Spares or Software as ICO shall require; or

         (b)      shall suspend payment of its debts generally, seek protection
                  from its creditors or otherwise enter into any form of
                  insolvency or bankruptcy proceeding (however described) or any
                  of its creditors shall seize any of its assets (whether under
                  any security interest or otherwise) or any moneys owned by it
                  shall

                                       54
<PAGE>   1821
                  become due for payment by reason of acceleration or default on
                  its part or its shareholders shall take steps or pass any
                  resolutions to wind up (otherwise than in connection with a
                  solvent reconstruction or amalgamation previously approved by
                  ICO or any analogous thing by whatever name it is known, shall
                  happen in any jurisdiction.

then the Contractor shall so far as he is legally entitled so to do and, if so
required by ICO as soon as reasonably practicable, deliver to ICO free of charge
such drawings, patterns, specifications and other information as are referred to
in clause 46.4 (to the extent that the same are derived from the person to whom
the circumstances referred to in (a) or (b) above apply, or where the
circumstances apply to the Contractor, all such items of the ContraCtor and all
of the Sub-Contractors) and which ICO shall be entitled to retain for such time
only as is necessary for the exercise by ICO of its rights under this clause and
which if the Contractor so requires shall be returned by ICO to the Contractor
in good order and condition (fair wear and tear excepted) and at ICO's costs and
expense.

46.7     If ICO shall exercise its right under clause 46.6 the Contractor shall
also grant or procure the grant to ICO without payment of any royalty or charge
full right and liberty to make or have made Equipment or Spares as aforesaid and
for such purposes only to use, make and have made copies of all drawings,
patterns, specifications and other information supplied by the Contractor to ICO
pursuant to this Agreement.

46.8     ICO undertakes for itself and on behalf of ICO Staff that all drawings,
patterns, specifications and other information obtained from the Contractor
under this clause shall be kept confidential and will not be divulged except to
such persons as it may be necessary to divulge the same to, for the purpose of
making or having made Equipment or Spares.

46.9     If the Contractor does not provide Equipment or Spares, ICO shall have
the right to obtain such Equipment or Spares directly from Sub-Contractors or
any other supplier and any additional cost incurred by ICO shall be recoverable
from the Contractor.

47       CONSUMABLE SUPPLIES

47.1     The Contractor shall before shipment of any of the Deliverables or any
components used therein supply a list of specifications for consumables required
in the operation of the ICONET Ground Facilities. This list shall be updated no
later than 3 months before the Acceptance Set 1 Handover Date.

47.2     ICO reserves the right to procure consumables to be used in and
suitable for the Deliverables that are in accordance with the specifications
that have been provided by the Contractor from such sources as ICO may deem
appropriate. Such procurement from a source other than the Contractor shall not
invalidate any rights of ICO under this Agreement.

47.3     If the Contractor fails to supply or update the specification list
referred to in clause 47.1, and the consumables procured by ICO for use in the
operation of the ICONET Ground Facilities causes a degradation or interruption
in all or any part of its operation the Contractor shall not be relieved of its
warranty obligations. In addition the Contractor shall reimburse ICO for the
costs incurred by ICO in ascertaining the appropriate specification to be
applied for any consumable.

48       ATTACHMENTS TO THE EQUIPMENT

48.1     Without prejudice to clause 47, ICO shall have the right to attach to
the Equipment any equipment not supplied by the Contractor (the "Attachment").

48.2     If ICO notifies the Contractor in writing at least thirty days before
it proposes to make an Attachment the Contractor shall within thirty days of the
receipt of ICO's notice, respond to ICO with

                                       55
<PAGE>   1822
its consent to or rejection of the proposed Attachment. If the Contractor
notifies ICO of its consent to such Attachment, then clause 48.4 will apply.

48.3     If the Contractor receives a notification under clause 48.2 it may give
a notice of rejection. Any notice of rejection shall be in writing and set out,
in the Contractor's reasonable judgement in all the circumstances, the possible
effects of the Attachments on the Deliverables and why the making of the
Attachment to the Equipment would or can reasonably be expected adversely to
affect the ICO System. A failure by the Contractor to respond to ICO within such
thirty day period shall be deemed to be consent.

48.4     Clauses 4 and 40 shall continue to apply to the Equipment (but not to
the Attachment) if the criteria in either of clause 48.2 or clause 48.3 are met.

48.5     If the criteria in either of clause 48.2 or clause 48.3 are not met,
then the Contractor shall be relieved of its obligations under clauses 4 and 40
to the extent that it can demonstrate that such Deliverables are adversely
affected by the Attachment.

[49]     NOT USED.

PART H - GENERAL

50       SURVIVAL OF CERTAIN PROVISIONS

50.1     Following the termination of this Agreement for any reason whatsoever,
the following clauses shall survive in full force and effect, without limit in
point of time:

<TABLE>
<S>                        <C>
           clause 4        (Primary Obligation of Contractor and Warranties)
           clause 15.1     (Price)
           clause 17       (Payment of Reimbursable Costs)
           clause 18       (Liquidated Damages)
           clause 30       (Ownership)
           clause 40       (Warranty)
           clause 41       (Intellectual Property Rights  and Confidentiality)
           clause 51       (Contractor's Liability for Damages or Breach)
           clause 52       (ICO's Liability for Damages or Breach)
           clause 54       (Consequences of Termination)
           clause 62       (Law and Jurisdiction)
           clause 66       (Agent for Service)
           clause 72       (Entire Agreement)
</TABLE>

51       CONTRACTOR'S LIABILITY FOR DAMAGES OR BREACH

51.1     In the event that any breach of this Agreement or act or omission by
the Contractor or any of its Sub-Contractors or any of their respective
affiliated undertakings or the employees or agents of any of them in the
performance of their duties in connection with this Agreement:

         (a)      causes or results in physical damage to or loss of any
                  tangible property of ICO or of any ICO Staff or third parties;
                  and/or

         (b)      causes or results in death or bodily injury to any ICO Staff
                  or to third parties,

the Contractor shall indemnify ICO against all ICO's liabilities and costs
resulting therefrom or arising in connection with the same.

51.2     If and insofar as any breach by the Contractor of this Agreement
(including the inadequate performance or the non-performance of any of its
obligations hereunder) shall result in any losses, damages, costs or liabilities
for ICO (other than any physical damage or loss of tangible property as

                                       56
<PAGE>   1823
described in clause 51.1), the Contractor shall, subject always to clause 51.3,
indemnify ICO against any liabilities and costs of ICO resulting therefrom,
provided that the total liabilities of the Contractor to ICO in respect of the
design, development, creation, delivery, installation or provision of any of the
Deliverables or arising from or in relation to any aspect of the ICO System
(whether under this indemnity or for breach of this Agreement or for negligence
or of whatsoever nature), including any liquidated damages paid or payable under
clause 18.1 but excluding any liabilities indemnified or to be indemnified under
clauses 41 or 51.1, shall not exceed in the aggregate 31% of the Price as the
same shall from time to time be adjusted in accordance with this Agreement.

51.3     Except in the circumstances described in clause 51.1(b), the Contractor
shall have no liability whatsoever to ICO for indirect, consequential, revenue
or other financial losses whether arising from breach of this Agreement or
negligence or otherwise (including for the avoidance of doubt any liability
which ICO may have to any Site Operators)

52       ICO'S LIABILITY FOR DAMAGES OR BREACH

52.1     In the event that any breach of this Agreement or act or omission by
ICO or any member of ICO Staff in the performance of their duties in connection
with this Agreement:

         (a)      causes physical damage to or loss of any tangible property of
                  the Contractor or any of its Sub-Contractors or any of their
                  respective affiliated undertakings or the employees or agents
                  or any of them or of their staff or third parties; and/or

         (b)      causes death or bodily injury to any member of their staff or
                  to third parties,

ICO shall indemnify the Contractor against all the Contractor's liabilities and
costs resulting therefrom or arising in connection with the same excluding any
indirect, consequential, revenue or other financial losses.

52.2     ICO will ensure that each of its agreements with Site Operators
excludes or limits, to the fullest extent permitted by the applicable law, any
liability which the Contractor or any other member of the NEC Team might
otherwise have to any Site Operator as a result of the incomplete performance or
the non-performance by the Contractor or any other member of the NEC Team of any
obligation assumed hereunder, except if and insofar as such liability may be in
relation to physical damage to or loss of tangible property, or death of or
bodily injury to any person.

52.3     In the event that a Site Operator shall bring a claim against the
Contractor or any other member of the NEC Team as a result of the incomplete
performance or non-performance by the Contractor or any other member of the NEC
Team of any of the obligations hereunder (the "claim"), ICO shall indemnify the
Contractor (for its own benefit or on behalf of the relevant member of the NEC
Team as the case may be) for any liabilities and costs directly resulting
therefrom, provided that:-

         (a)      ICO shall not be liable to indemnify the Contractor or any
                  other member of the NEC Team under this Clause 52.3 in respect
                  of any claim for physical damage to or loss of tangible
                  property, or death or bodily injury to any person; and

         (b)      the Contractor shall procure that in respect of all claims
                  made by any of the Site Operators against the Contractor or
                  any other member of the NEC Team as referred to in this
                  clause, the relevant member of the NEC Team against whom the
                  claim is made shall bear in aggregate   *   in each
                  period of 12 months commencing on the 3rd March in each year,
                  or in the case of Ericsson Limited   *   in aggregate in
                  each such period, of claims arising during the relevant period
                  (other than any amounts claimed in respect of any indirect,
                  consequential, revenue or other financial loss or expense);
                  and

         (c)      the Contractor shall procure that in respect of all those
                  claims which are in respect of any indirect, consequential,
                  revenue or other financial loss or expense made by any of

         * Confidential Treatment Requested and the Redacted Material has been
           separately filed with the Commission.

                                       57
<PAGE>   1824
                  the Site Operators against the Contractor or any other member
                  of the NEC Team as referred to in this clause, the relevant
                  member of the NEC Team against whom the claim is made shall in
                  the period of six months after the date of execution of this
                  Agreement bear the first   *   in aggregate for all
                  such claims arising during the relevant period without
                  recourse to ICO and, in each period of 12 months commencing on
                  the 3rd September thereafter, bear the first   *   in
                  aggregate for all such claims arising during the relevant
                  period.

         (d)      ICO shall not be required to pay any amount by way of
                  indemnity under this clause in respect of any particular claim
                  in the event that the Contractor or any Sub-Contractor shall
                  have, in respect of the events or circumstances giving rise to
                  that claim, acted unlawfully, fraudulently, wilfully in breach
                  of any of the obligations undertaken by the Contractor in this
                  Agreement (whether or not binding on such Sub-Contractor) or
                  negligently (as such expressions would be interpreted in the
                  courts of England under English law)

ICO's indemnification of the Contractor or any other member of the NEC Team in
respect of any claim under this clause 52.3 shall be without prejudice to such
rights as ICO may have against the Contractor under this Agreement. The parties
shall use reasonable efforts to replace ICO's responsibility to indemnify the
Contractor and any other member of the NEC Team with mutually satisfactory
insurance arrangements as soon as possible.

52.4     ICO shall have sole conduct of the defence of any such claim as is
referred to in clause 52.3 on behalf of the Contractor unless either ICO shall
fail reasonably and diligently to defend the same or the Contractor shall
reasonably apprehend that one of the events referred to in clause 56.1 is about
to arise in relation to ICO. neither ICO nor the Contractor shall admit
liability or otherwise settle or compromise any such claim without the prior
consent of the other (such consent not to be unreasonably withheld). If the
Contractor wishes any claim which is the subject of this clause to be settled or
compromised on terms which ICO is not willing to settle or compromise on
(including where ICO is prepared to settle or compromise on terms which the
Contractor finds unsatisfactory), then if ICO shall pay to the Contractor the
sum which it was willing to pay to the Site Operator to settle or compromise the
claim ICO shall be released and discharged from all further liability in respect
of such claim. The Contractor shall notify ICO promptly in the event of such
claim being made against it. ICO shall keep the Contractor informed of its
progress on a timely basis and, subject to the provisions of this sub-clause,
keep the Contractor indemnified against the consequences of its conduct of the
claim.

53       ETHICAL STANDARDS

The Contractor undertakes to act, and to procure that its Sub-Contractors and
its or their employees or agents act in any business dealings in any way
relating to its arrangements with ICO, including the provision or procurement of
the provision of any services or goods pursuant to this Agreement, in an honest
and ethical manner and without resort to any unethical business practices,
including but not limited to bribery, corruption, extortion or the exertion of
improper or undue influence.

54       CONSEQUENCES OF TERMINATION

54.1     Upon termination of this Agreement, the Contractor shall, and shall
procure that each of the Sub-Contractors shall, deliver up to ICO all property
of whatsoever nature belonging to ICO or any ICO Staff which may be in its
possession or under its control or the control of any of their respective group
companies and affiliates and, so far as the same are employed in connection with
this Agreement, any of their Sub-Contractors, agents or advisers. The preceding
provisions shall apply mutatis mutandis to the Contractor and the
Sub-Contractors.

54.2     If this Agreement shall be terminated at any time ICO and any ICO Staff
are hereby and shall remain, notwithstanding such termination, fully authorised
upon reasonable prior notice to enter on to

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

                                       58
<PAGE>   1825
the Contractor's and its Sub-Contractor's premises in order to dismantle and
remove all property belonging to ICO or any of its affiliates or any ICO Staff
and the Contractor shall co-operate with and assist such persons in such task
and shall procure access (on reasonable prior notice and at reasonable times)
for such ICO Staff from, and place a parallel obligation upon, its
Sub-Contractors. ICO shall use all reasonable endeavours to ensure that no
unnecessary disruption is caused to the Contractor or such Sub-Contractor by
reason of the removal of ICO's property. The preceding provisions shall apply
mutatis mutandis to the Contractor and the Sub-Contractors in relation to the
Sites and the Site Operators.

54.3     If this Agreement shall be terminated by ICO pursuant to clauses 56.1,
56.2(a) or (b) the Contractor shall, and shall procure that all the
Sub-Contractors shall:

         (a)      deliver up to ICO all the Deliverables in their then current
                  state and all materials which have been purchased for
                  inclusion in the Deliverables;

         (b)      make available to ICO without cost all designs, drawings and
                  plans which have been prepared in connection with or intended
                  for use in relation to the Works;

         (c)      in relation to computer programs which are not new and have
                  not been developed by or for the Contractor or the relevant
                  Sub-Contractor under this or in connection with this
                  Agreement, the necessary interfaces and licences to use such
                  computer programs on the basis referred to in clause 54.4; and

         (d)      in relation to any other computer programs (including any
                  which are new and/or developed by or for the Contractor or the
                  relevant Sub-Contractor under or in connection with this
                  Agreement) all source codes and object code versions thereof,

provided that if the Contractor shall be subject to any contractual restriction
preventing it from making the items referred to in (c) and (d) available to ICO,
the Contractor shall procure for ICO free access to the same for the purposes
referred to in clause 54.4. ICO shall treat all materials delivered up pursuant
to this clause as Confidential Information in accordance with the provisions of
clause 41.6.

For the avoidance of doubt any incomplete equipment, designs, drawings, computer
programs or plans prepared under or in connection with this Agreement shall be a
Deliverable.

54.4     In the circumstances referred to in clause 54.3, the Contractor shall
grant, and shall procure that each of the other members of the NEC Team and its
and their Sub-Contractors shall grant, to ICO sufficient worldwide, perpetual,
irrevocable, royalty free licences (including rights for ICO to grant
sub-licenses) under any NEC Team Intellectual Property Rights which are
comprised in or which have been selected and identified for inclusion in any of
the Deliverables acquired by ICO pursuant to clause 54.3 to enable ICO to
complete the development, implementation and construction of the ICONET Ground
Facilities and such licences shall permit ICO, either itself or through any
third parties, to make any modifications thereto as are considered desirable in
order to enable ICO to complete the ICO System and bring the same into use. ICO
shall treat any Confidential Information included in any such Intellectual
Property Rights in accordance with this Agreement.

54.5     If this Agreement shall be terminated by ICO pursuant to clauses
56.2(c) or (d), the provisions of clauses 54.3 and 54.4 shall apply save that:

         (a)      ICO shall, to the extent that the total sums paid by it in
                  respect of Instalments of the Price (for the purpose of which
                  calculation of all Financed Invoices shall be deemed to have
                  been paid in full by ICO) are less than the total cost of
                  those of the Deliverables which ICO has either received
                  delivery of prior to the date of termination or which it shall
                  take delivery of following such date, pay to the Contractor
                  the amount of any shortfall (and where any Deliverable which
                  ICO shall receive as a consequence is incomplete, the cost of
                  the same shall be agreed between the parties);

                                       59
<PAGE>   1826
         (b)      the Contractor shall, to the extent that the total sums paid
                  to it in respect of Instalments of the Price (for the purpose
                  of which calculation all Financed Invoices shall be deemed to
                  have been paid in full by ICO) are greater than the total cost
                  of those of the Deliverables which ICO has either received
                  delivery of prior to the date of termination or which it shall
                  take delivery of following such date, pay to ICO the amount of
                  any surplus;

         (c)      the licences referred to in clause 54.4 shall be limited to
                  the extent required to permit ICO to complete the development,
                  implementation and construction of the ICONET Ground
                  Facilities and such licences shall permit ICO, either itself
                  or through any third parties, to make any modifications
                  thereto as are required in order to enable ICO to complete the
                  ICO System and bring the same into use,

but if ICO shall not require to take delivery of any of the incomplete
Deliverables or the materials purchased therefor, it may by notice to the
Contractor exclude the same in which case the foregoing provisions of this
clause 54.5 shall only apply to those Deliverables which ICO shall elect to
receive.

54.6     If ICO shall terminate this Agreement for convenience in accordance
with clause 56.3, the Contractor shall following receipt of such notice of
termination take the following actions:

         (a)      to the extent specified in the notice of termination, stop
                  work under this Agreement on or as soon as reasonable
                  practicable after the date of receipt of such notice and
                  without delay take all necessary steps to wind down production
                  and avoid incurring unnecessary further expense, except to the
                  extent required to continue or complete those aspects of the
                  Works which the notice of termination shall require to be
                  continued or completed;

         (b)      place no further orders or sub-contracts for materials,
                  services or facilities except as may be necessary for
                  completion of those aspects of the Works which the notice of
                  termination shall require to be continued or completed;

         (c)      terminate orders and sub-contracts to the extent that they
                  relate to the performance of Works which the notice of
                  termination shall not require to be continued or completed;

         (d)      settle all outstanding liabilities and

         (e)      take such action as may be necessary, or as ICO may reasonably
                  direct, for the protection and preservation of the property
                  related to this Agreement which is in the possession of the
                  Contractor or any Sub-Contractor and in which ICO has or may
                  acquire an interest pursuant to the provisions of clause 54;
                  and

         (f)      to the extent specified in the notice of termination, continue
                  work under this Agreement.

54.7     The Contractor shall promptly following receipt of a notice of
termination given under clause 56.3 take all reasonable steps to minimise, limit
and quantify the costs and expenses incurred by the Contractor in connection
with the performance of its obligations under this Agreement and shall terminate
any sub-contracts, in so far as possible, on normal commercial terms (which may
include an allowance for the sub-contractors' proper commercial profit
determined in accordance with common practice in the industry concerned).

54.8     Within 60 days after determination of the cost of all Works terminated,
the Contractor shall submit to ICO its invoice in respect of the termination
Payment, and within 60 days after delivery by the Contractor of an invoice in
respect of the termination Payment, ICO shall pay the outstanding amount
thereof, subject always to compliance by the Contractor with clauses 54.10 and
54.11. The Termination Payment shall be the aggregate sum consisting of the
Direct Costs of all work done to the date of actual termination of the Works,
whether or not completed, together with pre-payments which are non-refundable to
the Contractor, and the settlement and other costs connected with the

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<PAGE>   1827
termination of orders and sub-contracts pursuant to clause 54.7 less the total
of all amounts already paid by ICO to the Contractor in respect of the Works for
the purpose of which calculation all Financed Invoices shall be deemed to have
been paid in full by ICO, including for the avoidance of doubt all costs which
have been paid pursuant to clause 15, adjusted by agreement between the parties
(failing which as may be determined in accordance with clauses 65 and 62) where
required to take account of any failure of the Contractor to comply with clause
54.6.

The term "Direct costs" as used herein includes only those costs set out in
clause 54.9 which have been posted to the Contractor's books of account in
accordance with its standard accounting practice for commercial contracts,
consistently applied. To the extent that the Direct Costs relate to the internal
labour costs and expenses (other than tax and social security or similar costs)
of the members of the NEC Team and their respective affiliated companies such
sum shall be subject to a mark-up not exceeding 22% of such costs and
expenses.

In no event shall the Termination Payment, when aggregated with the amounts
already paid or deemed to have been paid by ICO to the Contractor in respect of
the Works, exceed the Price.

54.9     For the purposes of this clause 54, "Direct Costs" comprise:

         (a)      the full salary, payroll taxes and standard benefits and other
                  direct employment costs of those personnel employed by any
                  member of the NEC Team or by any of their respective
                  affiliated undertakings for that period during which they can
                  demonstrate that they have been actively engaged in the Works;

         (b)      the reasonable cost of all materials purchased by the NEC Team
                  reasonably necessarily and wholly and exclusively for the
                  purposes of fulfilling the requirements of this Agreement;

         (c)      the reasonable and proper costs of Sub-Contractors employed by
                  the NEC Team, where applicable, with the consent of ICO,
                  necessarily for the purposes of fulfilling their obligations
                  under this Agreement save to the extent such costs are taken
                  into account pursuant to clause 54.7;

         (d)      the reasonable travelling and lodging costs of those members
                  of the NEC Team's personnel who are assigned to work on a full
                  time basis under this Agreement at locations outside the
                  country of their usual employment and of those personnel whose
                  travel is reasonably necessarily required for the purposes of
                  implementing this Agreement;

         (e)      the office rental costs (apportioned by reference to the
                  proportion of the floor area used by the Contractor
                  exclusively for the purposes of this Agreement) associated
                  with the Contractor maintaining a project office in the
                  Hammersmith area or any replacement therefor during the
                  currency of this Agreement; and

         (f)      the costs of delivering any items required to be delivered to
                  ICO as referred to in clause 54.11.

but, for the avoidance of doubt, the following to the extent that they might
otherwise fall within any of the foregoing are excluded:

         (g)      all central overhead expenses including the costs of all
                  support or liaison staff or staff whose principal activities
                  are on matters other than this Agreement;

         (h)      office and equipment costs, depreciation, leasing and hire
                  charges, any goods or materials of general application or for
                  which there is use after the period of the Agreement, interest
                  and like charges;

                                       61
<PAGE>   1828
         (i)      licence fees, communications costs, other costs associated
                  with the organisation and/or co-ordination of the NEC Team.

54.10    Payment of the Termination Payment shall be subject to the Contractor
justifying to ICO's reasonable satisfaction the amount of the costs and expenses
and any other adjustments so claimed and producing such evidence of such costs
and expenses as ICO may reasonably require. If ICO so requests, the Contractor
shall provide, and shall procure that any Sub-Contractors provide, sufficient
evidence to the external auditors of the Contractor (being a firm of independent
certified public accountants (or equivalent)) or, where such accountants are
unwilling to act in the capacity contemplated by this clause 54.10, another firm
of certified public accountants of international repute agreed between the
parties, to enable such accountants to certify to ICO that any and all costs and
expenses claimed by the Contractor from ICO in connection with the Termination
Payment have been properly incurred for the purposes of this Agreement and have
been properly computed. In the absence of such certification if so requested by
ICO, ICO shall not be obliged to pay any such amount claimed and, where such
accountants certify a lesser sum than that claimed by the Contractor, ICO shall
be obliged to pay only such lesser sum The accountants' fees for carrying out
such certification shall be borne by ICO.

If ICO disagrees with the amount of the Termination Payment claimed by the
Contractor, ICO shall pay so much of the amount claimed as is undisputed to the
Contractor within 30 days of receipt of the Contractor's invoice and the balance
shall be payable with 30 days after determination of the final amount due,
provided that if the amount in dispute shall exceed 25% of the Contractor's
claim ICO shall pay the disputed amount into the Escrow Account pending final
resolution of the amount of the Termination Payment.

54.11    Title to all complete Deliverables not previously delivered, any
incomplete Deliverable and any materials purchased for the purposes of and any
components which would have been incorporated into a Deliverable which is
incomplete at the date of a termination notice given under clause 56.3, shall,
upon payment in full of all amounts due hereunder, vest in ICO and the
Contractor shall deliver, and procure that any Sub-Contractor delivers, all such
items to ICO (who shall accept delivery). All such items of the Works which are
under the custody or control of the Contractor shall until delivery to ICO be
insured by the Contractor at its cost.

54.12    The Contractor shall, and shall procure that each of the members of the
NEC Team and its and their Sub-Contractors shall deliver up forthwith to ICO
upon payment by ICO of the Termination Payment payable to the Contractor under
this Agreement all the documentation, drawings, plans, and specifications
produced for the performance of this Agreement to the extent not previously
delivered. The Contractor shall, and shall procure that each of the members of
the NEC Team and their Sub-Contractors shall, upon written request of ICO, grant
to ICO and such persons as ICO shall nominate, those rights as referred to in
clause 54.4.

54.13    If it is reasonably feasible for the Contractor to utilise elsewhere
and within a reasonable period for their intended purposes any materials
purchased for the purposes of and any components which were to be incorporated
into the Deliverables which are incomplete at the date of termination under
clause 56.3, ICO shall have the right to reject delivery of such components and
the inclusion of the cost of the same in the Termination Payment.

54.14    The Contractor shall use reasonable efforts to place sub-contracts on
terms that will enable the Contractor to terminate the same in a manner
consistent with this clause.

55       FORCE MAJEURE

55.1     Force majeure refers to events extrinsic to this Agreement that are
beyond the reasonable control of, and not attributable to negligence or other
fault of, the party relying on such events to excuse its failure to perform. The
term:

                                       62
<PAGE>   1829
         (a)      excludes strikes or other events caused by labour disputes
                  between any member of the NEC Team (which for this purpose
                  includes all corporate bodies under the control of the body
                  corporate which ultimately directly or indirectly has control
                  of the relevant member of the NEC Team) and their employees;

         (b)      excludes any event giving rise to the party which would
                  otherwise seek to rely on such event being actually or
                  prospectively unable to perform any financial obligation under
                  this Agreement; but

         (c)      (subject to paragraph (b) above), includes changes in the laws
                  and regulations as referred to in clauses 63.5 and 63.6.

55.2     Any party whose ability to perform is affected by a force majeure event
shall take all reasonable steps to mitigate the impact of such event.

55.3     If the effect of a force majeure event is temporary, the party affected
shall, to the extent that the event of force majeure shall affect its ability to
perform its obligations under this Agreement, not be responsible for any
consequent delay, and any affected Top Level Milestone shall be extended
accordingly, if and only if notice of the event is given to the other party,
specifying in such notice that the affected party is treating the circumstances
as an event of force majeure, within ten (10) days after the event has come, or
should reasonably have come, to the affected party's attention.

Upon or following receipt of such a notice, the non-affected party shall, to the
extent that the event of force majeure affecting the other party shall affect
its own ability to perform its obligations under this Agreement, be entitled to
treat such circumstances as an event of force majeure of its own.

At the time of the notice of the occurrence of the event or as soon thereafter
as possible, the party affected shall inform the other party of the extent of
the delay expected as a result of the event and propose possible measures which
could be taken in order to minimise such delay. As soon as the circumstances
constituting force majeure shall have ceased to have effect, the obligations of
the affected party shall continue.

55.4     An event of force majeure shall not excuse the obligation to make
payment of any invoice which was properly issued by the other party prior to the
commencement of the event of force majeure.

56       TERMINATION

56.1     Without prejudice to any other rights or remedies which the relevant
party may possess, either party ("the terminating party") shall be entitled to
terminate this Agreement in its entirety in the event that the other party ("the
non-terminating party") shall suspend payment of its debts generally, seek
protection from its creditors or otherwise enter into any form of insolvency or
bankruptcy proceedings (howsoever described) or any of its creditors shall seize
any of its assets (whether under any security interest or otherwise) or any
moneys owed by it shall become due for payment by reason of acceleration or
default on the part of the non-terminating party or its shareholders shall take
steps or pass any resolutions to wind up (otherwise than in connection with a
solvent reconstruction or amalgamation previously approved by the
non-terminating party) or any analogous thing by whatever name it is known,
shall happen in any jurisdiction.

56.2     Without prejudice to any other rights or remedies which ICO may
possess, ICO shall be entitled, without liability to the Contractor in respect
of such termination (but without prejudice to any obligations or rights under
this Agreement expressed to survive termination) to terminate this Agreement in
whole at any time by service upon the Contractor of a written notice in
accordance with clause 59 if:

         (a)      the Contractor, the Principal Sub-Contractors, or any of their
                  respective Sub-Contractors to whom any material aspects of the
                  Works shall have been subcontracted shall without reasonable
                  cause, suspend the carrying out of the Works before Acceptance
                  Set 5

                                       63
<PAGE>   1830
                  Completion Date in any material respect or to any material
                  extent and the Contractor is unable to satisfy ICO that it is
                  or will be able to complete all or any substantial aspect of
                  the Works in accordance with the Top Level Milestone Schedule;
                  or

         (b)      the Contractor shall be in breach of any of its material
                  obligations under this Agreement; or

         (c)      a force majeure event (as defined in this Agreement) has or
                  might reasonably be expected to have a permanent or
                  unavoidable effect on the ability of the Contractor to provide
                  to ICO by Acceptance Set 5 Completion Date (but without taking
                  into account any adjustment which may be made to such date by
                  reason of the force majeure event) the functionalities
                  described in the IGFR across the complete ICONET Ground
                  Facilities; or

         (d)      a force majeure event (as defined in this Agreement) either
                  has the effect of severely constraining ICO from complying
                  with the terms of this Agreement (save insofar as this
                  Agreement creates any financial obligation on ICO) or clauses
                  63.5 or 63.6 apply,

and in any case falling under clauses 56.2(a) or 56.2(b) the Contractor (or, as
the case may be, the Principal Sub-Contractors, or any of their respective
Sub-Contractors to whom any material aspects of the Works shall have been
subcontracted) fails to remedy or procure the remedy of the same within a period
of 30 days (or such longer period as may have been specified in the notice)
after receipt of written notice from ICO to the Contractor, requiring such event
to be remedied and in any case falling under clauses 56.2(c) or 56.2(d) the
relevant force majeure event continues on the date the notice of termination
would take effect in accordance with clause 59 provided that ICO undertakes that
it will not exercise its right to terminate this Agreement if ICO shall not have
issued its Acceptance Set 5 Completion Certificate to the Contractor within 135
days after the Acceptance Set 5 Completion Date so long as there shall be no
other circumstances in existence at any time during that period permitting ICO
to terminate this Agreement.

56.3     ICO shall be entitled, without liability to the Contractor in respect
of such termination other than to make such Termination Payment as may be
payable under clause 54 (and without prejudice to any obligations or rights
under this Agreement expressed to survive termination) to terminate this
Agreement in whole at any time for convenience by service upon the Contractor of
a written notice in accordance with clause 59 and may in its notice of
termination require the Contractor to continue or complete any aspect of the
Works which shall then have been commenced.

56.4     The Contractor shall be entitled to terminate this Agreement in whole
at any time by service upon ICO of a written notice in accordance with clause 59
if:

         (a)      the Contractor is owed any sum by ICO in excess of
                  US$5,000,000 which shall have fallen due for payment and be
                  payable in accordance with the terms of this Agreement and ICO
                  shall have acknowledged in writing by the Supervising Officer
                  or any of its other officers or directors that any such sum is
                  due and payable to the Contractor; or

         (b)      ICO shall have failed to pay into the Escrow Account any
                  Disputed Amount (other than any disputed amount not exceeding
                  US$1,000,000),

and in either case

                  (i)      the Contractor shall not itself be in any material
                           respect in breach of its obligations under this
                           Agreement, (such breach (if any) to have been
                           notified by ICO to the Contractor in writing in
                           sufficient detail to provide a proper understanding
                           of ICO's reasons why it considers the Contractor to
                           be in breach before the notice of termination would
                           take effect in accordance with clause 59); and

                                       64
<PAGE>   1831
                  (ii)     ICO shall have failed before the notice of
                           termination would take effect in accordance with
                           clause 59 either to pay to the Contractor all overdue
                           sums together with interest thereon calculated in
                           accordance with clause 16 or to pay any Disputed
                           Amounts into the Escrow Account.

56.5     Save as set out in clauses 56.1 and 56.4, the Contractor shall not be
entitled to terminate this Agreement for any reason and for so long as this
Agreement continues in effect (and notwithstanding that ICO may be permitted to
exercise rights of termination) the Contractor shall continue (for so long as
all of its obligations hereunder have not been suspended pursuant to clause 55)
diligently to perform its obligations hereunder.

56.6     Termination of this Agreement shall be without prejudice to any
antecedent or accrued rights and liabilities of the parties. ICO shall have no
responsibility for the division amongst the members of the NEC Team of any sums
payable under this Agreement, including any sum paid in consequence of
termination of this Agreement, which shall be entirely a matter for the
Contractor.

57       WAIVER

A waiver of any breach of any provision hereof shall not be binding upon either
party unless made in writing but once so made shall, unless it is expressed to
be revocable, be irrevocable. No such waiver shall affect the rights of the
party not in breach with respect to any other or future breach of this
Agreement. No delay or failure by a party to exercise any of its rights, or time
or indulgence given by it before exercising any right or remedy under this
Agreement shall operate as a waiver of the same nor shall any single or partial
exercise of a right or remedy preclude any further exercise of the same or the
exercise of any other right or remedy.

58       AMENDMENTS

58.1     This Agreement (other than with respect to its scope pursuant to clause
9) may not be modified except by written amendment signed by both the
Supervising Officer and the Contractor's Authorised Representative save that the
address for notices and the responsible authorised representatives of the
parties may be added to or changed from time to time by written notice to the
other party.

58.2     Where in the course of the administration of this Agreement (otherwise
than under clauses 8 and 9) any communication is given or received which, if
implemented, would modify or affect the rights, responsibilities or obligations
of any party, then if such communication is given by ICO, the Contractor shall
ensure that such communication is approved in writing by the Supervising Officer
and if such communication is given by the Contractor, ICO shall ensure that such
communication is approved in writing by the Contractor's Authorised
Representative. In the absence of such approval the receiving party shall not be
entitled to rely on such communication as being binding on, and such
communication may not be binding on, the party giving the same.

59       COMMUNICATIONS AND NOTICES

59.1     All notices or other communications (except Deliverables delivered in
accordance with the Statement of Work), required to be given or served under or
in connection with this Agreement shall be in writing and shall be delivered in
the manner prescribed in clause 59.4 to the address of the party concerned given
in clause 59.2 and as the same may from time to time be amended in accordance
with clause 59.3.

59.2     For the purposes of clause 59.1:

ICO's details are:

In the case of a formal notice (including any notices of demand for payment or
termination) or any legal proceedings to be given to or served on ICO, the
original shall be sent to:

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<PAGE>   1832
                      [This page left intentionally blank]

                                       66

<PAGE>   1833
ICO Global Communications Holdings BV
Drentestraat 20
1083 HK
Amsterdam
Netherlands

Facsimile: (+31) 20661 0654
Marked for the attention of the Company Secretary

and a copy thereof shall be sent at the same time to ICO Services Limited at the
address set out below.

ICO Global Communications Holdings BV
c/o ICO Services Limited
1 Queen Caroline Street
London W6 9BN
England

Facsimile: (+44) 0181 600 1199
Marked for the attention of Gary Titzer

In the case of a formal notice (including any notices of demand for payment or
termination) or any legal proceedings to be given to or served on the
Contractor, the original shall be sent to:

NEC Corporation
7-1, Shiba 5-Chome,
Minato-Ku, Tokyo 108-8001
Japan

Facsimile: (+81) 3 3798 6782
Marked for the attention of the General Manager

and a copy thereof shall be sent at the same time to:

NEC Program Office
5th Floor Horatio House
77-85 Fulham Palace Road
Hammersmith
London W6 8JC

Facsimile: (+44) 0181 600 4290
Marked for the attention of Tadao Furukawa

All other communications to ICO referred to in this clause 59.1 shall be sent
to:

ICO Global Communications Holdings BV
c/o ICO Services Limited
1 Queen Caroline Street
London W6 9BN
England

Facsimile: (+44) 0181 600 1199
Marked for the attention of Gary Titzer

                                       67
<PAGE>   1834
All other communications to NEC referred to in this clause 59.1 shall be sent
to:

NEC  Program Office
5th Floor Horatio House
77-85 Fulham Palace Road
Hammersmith
London W6 8JC
England

Facsimile: (+44) 0181 600 4290
Marked for the attention of Tadao Furukawa

59.3     Either party may from time to time amend its address and/or facsimile
number and/or the persons to whose attention notices or other communications or
copies thereof are to be given for the purposes of this clause 59 by giving
notice in writing to the other party.

59.4     For the purposes of clause 59.1 a notice or other communication shall
be either delivered personally or sent by registered or recorded delivery
prepaid first class post (or airmail if overseas), or by facsimile addressed to
the intended recipient thereof and any such notice or other communication shall
take effect:

         (a)      if delivered personally, at the time of its delivery; or

         (b)      if sent by registered or recorded delivery prepaid first class
                  post (or airmail if overseas), at 10.00 am on the fifth
                  working day following the time of posting (or in the case of
                  airmail post, at 10.00 am on the seventh working day following
                  the time of posting), and in proving such service it shall be
                  sufficient to prove that the envelope containing the notice or
                  other communication was properly addressed, stamped and
                  posted; and

         (c)      if transmitted by facsimile, (and provided that the
                  transmission record of the sender indicated delivery of all
                  pages of the same to the relevant facsimile number), at 10.00
                  am falling on the first working day following the time of
                  dispatch (which may, for the avoidance of doubt, be on the
                  same working day as that on which it is despatched) subject to
                  a copy of the notice or other communication being dispatched
                  by post within 24 hours of the time of despatch of the
                  facsimile.

For the purposes of this clause 59.4, a "working day" is a day on which
commercial banks are generally open for business in the location of the
recipient and reference to local time in such place. References to "time of
posting" and "time of despatch" are to the local time in the place where the
sender is located. In order to calculate elapsed time, the local time and day in
the intended place of receipt shall be determined from and by reference to the
time difference between that place and the actual time of posting or time of
despatch in the sender's location.

59.5     Notices under clause 56 shall take effect as follows:

         (a)      if given under clause 56.1, 14 days after the relevant notice
                  is received or deemed to have been received in accordance with
                  clause 59.4 unless at the expiry of such period of 14 days the
                  relevant condition, event or circumstances shall have ceased
                  to apply;

         (b)      if given under clause 56.2 (a) or (b), upon expiry a period of
                  not less than 30 days (or such longer period as may be
                  specified in the notice) after the relevant notice is received
                  or deemed to have been received in accordance with clause 59.4
                  unless at the expiry of such period of 30 days (or longer
                  period as may have been specified) the relevant condition,
                  event or circumstances shall have ceased to apply;

         (c)      if given under clause 56.1(c) or (d), 14 days (or such longer
                  period as may be specified in the notice) after the relevant
                  notice is received or deemed to have been received in

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<PAGE>   1835
                  accordance with clause 59.4 unless at the expiry of such
                  period of 14 days (or longer period as may have been
                  specified) the relevant force majeure event shall have ceased
                  to apply;

         (d)      if given under clause 56.3, on the day the relevant notice is
                  received or deemed to have been received in accordance with
                  clause 59.4 (or such later date as may be specified in the
                  notice or upon the satisfaction of such conditions as may be
                  specified in the notice); or

         (e)      if given under clause 56.4(a) or (b), upon expiry of a period
                  of not less than 60 days (or such longer period as may be
                  specified in the notice) after the relevant notice is received
                  or deemed to have been received in accordance with clause 59.4
                  unless at the expiry of such period of 60 days (or longer
                  period as may have been specified) the relevant payment shall
                  have been made either to the Contractor or into the Escrow
                  Account (as the case may be), and such notice shall not be
                  valid unless it shall prominently specify that it is a
                  termination notice given under clause 56.4 and state the
                  amount of money which the Contractor claims is overdue for
                  payment and, in sufficient detail to enable ICO to investigate
                  the same, the circumstances which the Contractor alleges gives
                  rise to such sums becoming due for payment.

60       PUBLICITY

Neither party, and the Contractor shall procure that none of its
Sub-Contractors, nor any of the group companies, affiliates or Sub-Contractors
or any of their respective agents, advisers, employees or consultants of the
Contractor or its Sub-Contractors shall make any announcements, news releases or
other public statements regarding this Agreement or its subject matter without
the prior written approval of both the Contractor and ICO, such approval not be
unreasonably withheld or delayed.

61       INFORMATION RECORDING

The Contractor shall record, update and maintain all documents to be delivered
under this Agreement up to the Acceptance Set 5 Completion Date in accordance
with the documentation configuration control process to be established as a part
of the Programme Management Plan referred to in the Statement of Work.

62       LAW AND JURISDICTION

62.1     This Agreement shall be governed by, and construed in accordance with,
English law.

62.2     Subject to clause 62.3, the Courts of England shall have exclusive
jurisdiction in relation to all disputes or matters which may arise as between
the parties out of or in connection with this Agreement.

62.3     Neither ICO nor the Contractor shall commence or pursue any proceedings
against the other in relation to any dispute or matter which may arise between
them out of or in connection with this Agreement other than in the Courts of
England, except for the purpose of enforcing a judgement or order of the Courts
of England.

62.4     Each of ICO and the Contractor waives for the exclusive benefit of the
other of them any objection on the ground of inconvenient forum to any
proceedings which relate to this Agreement being brought in the Courts of
England or, for the purposes only of enforcement of any judgement or order as is
referred to in clause 62.3, in any other court.

62.5     In clause 62, "proceedings" means proceedings of any kind, including an
application for a provisional or protective measure.

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<PAGE>   1836
63       CHANGE OF LAW

63.1     If at any time as a consequence of either any change of law (whether
effected through constitutional means or otherwise) or any actions or
restrictions or other interference imposed by any governmental body (or any body
or persons claiming governmental authority) or any international trade or
similar embargo affecting any of the countries in which the Sites are located or
the commencement of hostilities (whether formally declared or not) against any
nation or any state, province or other political subdivision of any nation
(including for this purpose against any separatist movement claiming an
entitlement to be a separate nation, state, province or other political
subdivision) affecting any of the countries in which the Sites are located it
shall become impossible or impracticable to give effect to this Agreement or any
part of it or otherwise to perform the Work on the relevant Site(s), then this
clause 63 shall apply.

63.2     If any changes in the laws and regulations referred to in clauses
4.1(g) or (h) which may inhibit or prevent the Equipment, Software or other
Deliverables which is or shall be specified in or is to be supplied under this
Agreement being lawfully used for the purposes of the ICONET Ground Facilities
in any of the countries where the Sites are located then this clause 63 shall
apply.

63.3     As soon as either party becomes aware of any such circumstances as are
referred to in clauses 63.1 or 63.2 it will notify the other party and the
parties shall discuss how to overcome the effects of such changes and shall work
together so as to mitigate the effects of such circumstances. Where practicable,
they shall make such amendments to this Agreement or any part of it in
accordance with the procedures set out in clause 9 so as to enable the impact of
such occurrence to be minimised.

63.4     If any of the circumstances referred to in clause 63.1 shall come into
existence and continue for a continuous period of at least 30 days in relation
to any particular Site and it shall not be reasonably practicable in the
reasonable opinion of ICO to make amendments as contemplated by clause 63.3,
then upon service of a written notice by ICO to the Contractor under this
clause, the Contractor shall assist ICO in establishing and equipping an
alternative site that ICO designates for use as a satellite land earth station
or network management centre with all necessary connections. Such assistance
shall be at ICO's cost but on substantially the same basis and terms as those
contained elsewhere in this Agreement.

63.5     If any of the circumstances referred to in clause 63.1 shall come into
existence and continue for a continuous period of at least 30 days in a manner
which either immediately or prospectively will affect a number of the Sites such
that the ICONET Ground Facilities and other elements of the ICO System can not
or will not be able to deliver the desired functionalities specified in the IGFR
without significant modification and it shall not be reasonably practicable in
the reasonable opinion of ICO to make amendments as contemplated by clause 63.3,
then upon service of a written notice by ICO to the Contractor under this
clause, ICO shall be entitled to treat such circumstances as an event of force
majeure.

63.6     In any of the circumstances referred to in clauses 63.3 or 63.4 and
where there is a reasonably practicable method to overcome the changes in law or
regulation giving rise to such circumstances, the Contractor undertakes that it
will offer to provide such changes to the scope of the Works or the location of
the Deliverables at fair prices and on reasonable terms and shall, upon ICO's
request, promptly provide such evidence as ICO may reasonably require to
establish that the prices and terms offered are fair and reasonable.

If ICO considers that the Contractor is unable to offer to provide such changes
to the scope of the Works or the location of the Deliverables in a manner such
that it is reasonably practicable to overcome the changes in law or regulation
giving rise to such circumstances on a basis which is consistent with this
Agreement (whether or not the Contractor shall have proposed fair and reasonable
terms for implementing the same), then ICO shall be entitled to treat such
circumstances as an event of force majeure.

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<PAGE>   1837
64       EXPORT CONTROL REGULATION

64.1     It is expressly agreed by the parties that the execution of this
Agreement and the subsequent performance of the Works will be subject to all
applicable export control laws and regulations imposed or administered by
whichever government has competent jurisdiction.

64.2     The Contractor warrants that at the time of execution of this Agreement
there are no applicable export control laws and regulations under clause 64.1
which will prevent performance of this Agreement.

65       DISPUTES RESOLUTION PROCEDURE

If a dispute arises, whether before or after Acceptance Set 5 Completion Date,
the procedure set out in Schedule 3 shall apply.

66       AGENT FOR SERVICE

66.1     In relation to any dispute arising out of or in connection with this
Agreement, each of the Contractor and ICO shall at all times until six years
after the termination of this Agreement maintain an agent for service of process
in England and agrees that service on such agent (or any replacement agent
appointed hereunder) shall be deemed to be due service for the purposes of such
proceedings.

66.2     For the purposes of clause 66.1 the Contractor hereby irrevocably
appoints NEC Europe Limited at its registered office for the time being as its
agent for service of process and ICO hereby irrevocably appoints ICO Services
Limited at its registered office for the time being as its agent for service of
process.

66.3     If for any reason an agent appointed under this clause 66 ceases to act
as such, the Contractor or ICO (as appropriate) shall promptly appoint another
such agent and notify the other party of the appointment and the name and
address of the new agent.

67       SUPERVISING OFFICER AND CONTRACTOR'S AUTHORISED REPRESENTATIVE

67.1     ICO's Supervising Officer may be changed from time to time by notice in
writing to the Contractor. Until further notice the Supervising Officer shall be
Gary Titzer.

67.2     The Contractor's Authorised Representative may be changed from time to
time by notice in writing to ICO. Until further notice the Contractor's
Authorised Representative shall be Tadao Furukawa.

67.3     Either party may rely upon notices from the other party without being
obliged to validate the signature of the Supervising Officer or the Contractor's
Authorised Representative.

68       NO PARTNERSHIP

Nothing herein shall create a joint venture or partnership between the parties
nor, save as specifically provided in this Agreement, constitute one party the
agent of the other party.

69       SUCCESSORS

This Agreement shall be binding upon the parties hereto and their successors and
permitted assigns.

70       ASSIGNMENT

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<PAGE>   1838
70.1     Upon giving prior written notice to the Contractor, the benefit of this
Agreement may be assigned by ICO to any subsidiaries of ICO or other companies
within the ICO Group (being companies under the control of the ultimate holding
company of ICO from time to time) any such company being referred to as a
"member of the ICO Group", provided that prior to any company to which the
benefit of this Agreement has been assigned ceasing to be a member of the ICO
Group, ICO shall procure that such company assigns this Agreement to any company
which will remain a member of the ICO Group. No other assignment shall be
permitted by ICO without the prior written consent of the Contractor.

70.2     This Agreement shall not be assignable by the Contractor. The
Contractor shall ensure that the Principal Sub-Contractors will not be allowed
to assign (other than to their subsidiaries or other companies within the same
group of companies of which they are a member) any contracts which they enter
into with the Contractor pursuant to this Agreement.

71       LANGUAGE

All correspondence, notices, documentation and communications concerning this
Agreement shall be in the English language. ICO may require, subject to
agreement of any required adjustment to the Price, where appropriate, that
operating and maintenance instructions, name and rating plates, identification
labels, safety warnings and other written and printed matter required in
connection with the Equipment and all instructions or notices to the public
and/or ICO Staff shall be written in English and one or more principal languages
of the country in which the same are to be installed or used.

72       ENTIRE AGREEMENT

This Agreement together with all the Schedules and Annexes hereto and any side
letters entered into contemporaneously herewith contains the entire agreement
and understanding between the parties relating to or thereto the subject matter
hereof. All prior understandings, representations and warranties by and between
the parties, written or oral, which may be related to the subject matter hereof
in any way, are superseded by this Agreement, but this provision shall not
affect any rights which ICO may have in relation to the IPC.

73       SEVERABILITY

In the event any one or more of the provisions of this Agreement shall, for any
reason, be held to be invalid or unenforceable, the remaining provisions of this
Agreement shall be unimpaired, and the invalid or unenforceable provision shall
be replaced by a mutually acceptable provision which, being valid and
enforceable, comes closest to the intention of the parties underlying the
invalid or unenforceable provision and, where necessary, satisfies the concerns
of the regulatory authorities concerned.

74       COSTS

All costs and expenses incurred by the parties in connection with the
negotiation and entry into of this Agreement shall be borne by the party
incurring the same.

75       COUNTERPARTS

This Agreement or any agreement expressed to be supplemental hereto may be
executed in two or more counterparts and by different parties on separate
counterparts, each of which when so executed and delivered shall be an original,
but all such counterparts shall constitute one and the same instrument.

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<PAGE>   1839
SCHEDULE 1: DEFINITIONS

The words and expressions used in this Agreement including its schedules,
annexures and attachments shall, when written using capital letters in the
manner below, unless the contrary intention appears, have the meanings set
against them in this Schedule:

         "Acceptance Criteria" shall mean the acceptance criteria referred to in
         Annex 10 of the Statement of Work

         "Acceptance Set" shall mean those matters described in Section 1 and
         Table 1 of Annex 10 of the Statement of Work.

         "Acceptance Set Completion" shall mean:

         (i)      the point in time at which Handover of all SANs and NMCs
                  within a relevant Acceptance Set has been accomplished, and

         (ii)     the software functionality of Equipment comprised within SANs
                  and NMCs previously handed over is upgraded and integrated
                  with the Equipment comprised within the SANs and NMCs
                  identified in (i), above, and

         (iii)   subject to the parties having expressly agreed some specific
                 contrary arrangement in relation to any relevant Acceptance
                 Set, all criteria of any relevant Acceptance Set, as set out in
                 Annex 10, shall have been accomplished.

         "Acceptance Set Completion Certificate" shall mean an Acceptance Set
         Completion Certificate in the form set out in Schedule 12.

         "Acceptance Set Completion Date" shall mean the date upon which any
         relevant Acceptance Set Completion occurs.

         "ADC" shall mean an Administration and Data Centre which can provide
         off line processing of all call records, customer data registrations
         and operator workstations for the provision of help and other services.

         "Agreed Rate" shall mean in relation to any amount for any period:

                  (a)      LIBOR plus 3%, if and for so long as such amount is
                           due and payable under the terms of this Agreement and
                           either:

                           (i)      the party owing the obligation is not
                                    disputing the same pursuant to clause 16.5
                                    or, in the case of ICO, claiming to be
                                    entitled to defer payment pursuant to clause
                                    15.3; or

                           (ii)     the party owing the obligation is in default
                                    of an obligation to pay the amount into the
                                    Escrow Account; and

                  (b)      LIBOR plus 2% in any other case.

                           For these purposes "LIBOR" in relation to any period
                  means the 3 months US$ LIBOR rate as at 11.00am London time on
                  the first day of such period (or, if that is not a business
                  day, on the immediately preceding business day) as quoted (on
                  a per annum basis) in the Financial Times, London edition
                  under the heading "Interbank Fixing", on the next business day
                  following such first day (or, if for any reason such

                                       73
<PAGE>   1840
                  quotation ceases to exist or be appropriate such equivalent
                  alternative US$ LIBOR rate as the parties may agree, such
                  agreement not to be unreasonably withheld by either party)
                  provided that if a period lasts for more than 3 months, then
                  interest shall be calculated by reference to successive
                  periods of 3 months with the LIBOR rate being re-set as above
                  at the start of each such period.

         "Availability Date" shall mean such date upon which ICO shall permit
         the Contractor access to any SAN or NMC in accordance with Annex 7B of
         the Statement of Work, for the purposes of the Contractor's integration
         or testing activities

         "Cash Invoice" shall mean an invoice (substantially in the relevant
         approved form set out in Schedule 4 and containing all the information
         referred to in that form) issued by the Contractor to ICO for the Cash
         Portion of one or more Instalments.

         "Cash Portion" in relation to any Instalment shall mean the whole of
         that Instalment less any Financed Portion.

         "Confidential Information" shall mean any confidential, technical or
         commercial information provided by one of the parties (including for
         this purpose any member of the NEC Team) whether in oral or written
         form, which may include (but shall not be limited to) specifications,
         drawings, sketches, models, samples, reports, data, techniques,
         designs, know-how, documentation, trade secrets or other technical or
         commercial information designated as "Confidential" under the terms of
         this Agreement.

         "Deferred Cash Invoice" in relation to any failure by the Contractor to
         achieve a Top Level Milestone by the date 21 days after its Milestone
         Date shall mean any Cash Invoice which was issued prior to that
         Milestone Date and would, but for clauses 15.2 and 15.3, have a
         Relevant Payment Date more than 21 days after the relevant Milestone
         Date and any Cash Invoice which was issued in the period commencing
         with the Milestone Date and ending on the actual date of the
         achievement by the Contractor of the relevant Top Level Milestone.

         "Deliverables" shall mean the items required to be delivered by the
         Contractor to ICO under this Agreement as more particularly specified
         and/or defined in the Statement of Work.

         "Determination" shall mean an agreement between the parties or a
         determination by the Disputes Resolution Procedure established pursuant
         to clause 65 or by a court of competent jurisdiction and "Determined"
         shall be construed accordingly.

         "Disputed Percentage" in relation to any Instalment in respect of which
         the Contractor has issued an invoice which is disputed in whole or part
         by ICO shall mean the percentage of such claimed Instalment which is
         disputed by ICO.

         "Equipment" shall mean all materials, plants and hardware supplied or
         to be supplied by the Contractor, for inclusion in the Works.

         "Escrow Account" shall mean an account to be established by the Escrow
         Agent with a bank agreed between the parties in London or such other
         jurisdiction as the parties may agree in the name of the Escrow Agent,
         which shall be operated in accordance with clause 16 and the other
         relevant provisions of this Agreement.

         "Escrow Agent" shall mean such bank or other person as the parties may
         agree.

         "Escrow Agreement" shall mean an agreement between ICO, the Contractor
         and the Escrow Agent in terms to be agreed between the parties
         reflecting the provisions of this Agreement relating to the Escrow
         Agent and the Escrow Account (with such modifications as the parties

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<PAGE>   1841
         may agree with the Escrow Agent, such agreement not to be unreasonably
         withheld by either of the parties).

         "Escrow Trigger Amount" shall mean US$ 1 million or any higher multiple
         of US$500,000.

         "Excluded Circumstances"  shall mean:

                  (i)      any force majeure event as set out in clause 55;

                  (ii)     radio frequency interference or unplanned propagation
                           impairment (C-band or S-band) in excess of the limits
                           specified in the IGFR;

                  (iii)    unavailability of spectrum;

                  (iv)     unavailability of ICO satellites, or inappropriate
                           spacing between the available satellites;

                  (v)      non-conformance of ICO satellites to the ICO
                           satellite specifications and its applicable Interface
                           Control Documents;

                  (vi)     unavailability of ICO user terminals which conform to
                           the ICO Air Interface as set out in the applicable
                           Interface Control Document;

                  (vii)    non-conformance of ICO user terminals to the ICO Air
                           Interface as set out in the applicable Interface
                           Control Document;

                  (viii)   unavailability of terrestrial network
                           interconnections which meet telecommunication
                           industry standards;

                  (ix)     unavailability of the ICO Satellite Control Centre or
                           its non-conformance to the applicable Interface
                           Control Document;

                  (x)      unavailability of Telemetry, Tracking & Control
                           facilities to the extent not comprising RFTs at the
                           designated Sites or the non-conformance of the same
                           to the applicable Interface Control Document;

                  (xi)     unavailability of ICO Administration and Data Centre
                           facilities or the non-conformance of the same to the
                           applicable Interface Control Document; and

                  (xii)    errors or omissions in information supplied by ICO or
                           the vendors of other elements of the ICO System in
                           the applicable documents which affect support of the
                           requirements of the IGFR and end-to-end services and
                           which could not reasonably have been discovered by
                           the Contractor by the time of the manufacture of the
                           Deliverable to which such information relates.

         "Financed Invoice" shall mean an invoice (substantially in the relevant
         approved form set out in Schedule 4 and containing all the information
         referred to in that form) issued by the Contractor for the Financed
         Portion of one or more Instalments.

         "Financed Portion" in relation to any Instalment shall mean the
         percentage of it, if any, which is required to be financed by the
         Contractor pursuant to the Vendor Financing Agreement.

         "Further Deliverables" shall mean Deliverables (save and except for
         those to be provided by the Contractor at Acceptance Set 5 Completion
         Date) to be handed over after the Acceptance Set 4 Handover Date.

         "Further Works" shall mean Works (save and except for those of, or
         concerning, those Deliverables to be provided, or made available, by
         the Contractor at Acceptance Set 5 Completion Date and the Contractor's
         support of ICO's implementation of Acceptance Set 5) to be carried out
         after the Acceptance Set 4 Handover Date.

         "Good Industry Practice" shall mean the exercise of that degree of
         skill, diligence, prudence and foresight which would reasonably and
         ordinarily be expected from a skilled and experienced contractor
         engaged in the same type of activities and under the same or similar
         conditions and circumstances who is seeking in good faith to comply
         with its obligations under this Agreement.

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<PAGE>   1842
(i.)     "Handover" shall mean when all SANs and NMCs comprised within an
         Acceptance Set have successfully completed their Phase 3 IGF Testing in
         accordance with Annex 8A and have met the criteria established in Annex
         10 at which time the Contractor shall hand over such SANs and NMCs to
         ICO, who shall receive the same. Furthermore any event of Handover
         shall mean:

         (i)      the risk in Deliverables referable to any SAN or group of SANs
                  or NMCs which are handed over shall pass to ICO.

         (ii)     all payments referable to such SAN or group of SANs or NMCs
                  shall be invoiced by the Contractor in accordance with
                  Schedule 11 of this Agreement and shall be payable by ICO;

         (iii)    in respect of such SAN or group of SANs or NMCs the
                  Contractor's liability to pay to ICO liquidated damages
                  pursuant to clause 18 or this Agreement shall cease
                  absolutely;

         (iv)     in respect of such SAN or group of SANs or NMCs the
                  Contractor's warranty obligations under clause 40 of this
                  Agreement shall commence.

         "Handover Certificate" shall mean a Handover Certificate in the form
         set out in Schedule 12.

         "Handover Date" shall mean the date on which a Handover occurs.

         "High Level System Description" shall mean the high level system
         description to be provided in accordance with the Statement of Work.

         "ICO Intellectual Property" shall mean the Intellectual Property Rights
         generated by ICO comprised in the Deliverables.

         "ICONET Ground Facilities" shall mean 12 SANs, an NMC and a backup NMC
         as more particularly described in the Statement of Work and the IGFR
         subject to the provisions of clause 2.2.

         "ICO Staff" shall mean all of the directors and employees of ICO Global
         Communications (Holdings) Limited or any of its subsidiary or affiliate
         undertakings and any consultants, sub-Contractors or other persons
         nominated as "ICO Staff" by or on behalf of ICO for the purposes of
         this Agreement.

         "ICO System" shall mean a global mobile satellite telecommunications
         network capable of delivering the end to end services set out in the
         IGFR and which will, when completed, comprise (a) the ICONET Ground
         Facilities, (b) the ICO space segment, (c) user terminals, (d) the ADC
         systems and (e) any other functional entities.

         "IGFR" shall mean the ICONET Ground Facilities Requirement document
         contained in Schedule 13 as amended from time to time in accordance
         with this Agreement.

         "Instalment" shall mean an instalment of the Price calculated as set
         out in the Payment Schedule; and shall where the context allows include
         any such instalment claimed by the Contractor in circumstances where
         ICO disputes the Contractor's entitlement to some or all of the amount
         claimed.

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<PAGE>   1843
         "Intellectual Property Rights" shall mean patents, registered design
         rights and applications for any of the foregoing, copyright,
         unregistered design rights, topography rights and all forms of
         protection of any similar nature (including all such rights in
         software) which may subsist in any part of the world for the full term
         of such rights including any extension to the term of such rights and
         Confidential Information.

         "IOT" shall mean the ground control equipment to be supplied to ICO by
         a third party which, when functioning correctly with the RFT, provides
         satellite in-orbit test capability.

         "Key Features" means the features of the Deliverables set out in
         Schedule 6.

         "Master Level Schedule" shall mean the schedule of activities and dates
         attached to Annex 4 of the Statement of Work as adjusted from time to
         time under this Agreement.

         "Milestone Date" shall mean the due date for the achievement of a Top
         Level Milestone as shown in the Top Level Milestone Schedule.

         "NEC Team Intellectual Property" shall mean the Intellectual Property
         Rights generated by the members of the NEC Team acting alone or
         together.

         "NEC Team" shall mean the Contractor, NEC Corporation, (as leader and
         main Contractor), and its Principal Sub-Contractors, working together
         as a team for the purposes of the design, specification, supply and
         testing of the ICONET Ground Facilities.

         "NMC" shall mean a Network Management Centre which provides both the
         central part of a network management system ("NMS"), the central part
         of a Satellite Resource Management Centre ("SRMC") and any other
         centralised functions required for the purposes of fulfilling the
         relevant functions specified in the Statement of Work and/or the IGFR,
         together with all of the interfaces necessary to perform these
         functions.

         "ODTF" shall mean the facility at which ICO, without risk to customer
         traffic, can train operational staff, test new and updated software
         releases, take advantage of a skills base and facilities to support new
         development and provide a showcase of the ICO System.

         "Options" shall mean those options set out in Annex 1 of the Statement
         of Work.

         "Payment Schedule"  shall mean Schedule 11.

         "Phase 1, Phase 2-1 and Phase 3 Testing or Tests" shall mean,
         respectively, that testing or those tests which is/are referred to in
         Annex 8A of the Statement of Work.

         "Price" shall have the meaning specified in clause 15.1.

         "Principal Sub-Contractors" shall mean Hughes Network Systems. and
         Ericsson Limited.

         "Ready for Installation Date" means the date on which the relevant Site
         is first made available to the Contractor for delivery and installation
         of any part of the Works.

         "RFT" shall mean the equipment supplied to ICO by the Contractor
         including an antenna and its associated ancillary equipment,
         transmission and receiver equipment including IF (intermediate
         frequency) distribution and IFL (inter facility link) connections,
         dedicated up and down converters and the associated couplers and
         switches which are compatible with the telemetry, tracking and control
         equipment to be supplied to ICO by a third party, IOT signal monitoring
         package which is compatible with the in-orbit test equipment to be
         supplied to ICO by a third party and an O&M system for the monitor and
         control of the other parts of the RFT.

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<PAGE>   1844
         "RFT Availability Dates" shall mean the dates designated as such in the
         Top Level Milestone Schedule as such for each of the Sites which ICO
         has designated as TT&C or IOT capable.

         "SAN" shall mean a Satellite Access Node being a fixed installation of
         all the equipment required to access the ICO satellites as more
         particularly described in the Statement of Work and/or the IGFR.

         "Satellite Based Communications Systems" shall mean mobile
         communications systems characterised by direct links between a mobile
         user terminal and a satellite enabling transmission of voice and data
         (either data, telephony, facsimile or otherwise) including but not
         limited to those systems intended to be capable of offering services to
         mobile users which also offer fixed or semi-fixed services but for the
         avoidance of doubt excluding V-SAT systems, Broadband systems for
         multi-media services and systems with fixed high gain directional
         antennae.

         "Site" shall mean the places to which the Deliverables are to be
         delivered or where Works are to be carried out as set out in Annex 3 of
         the Statement of Work or as provided in this Agreement.

         "Site Operator" shall mean, in respect of each Site, the person making,
         or who has made, the Site available to ICO and appointed by ICO to
         operate and maintain the Equipment and Software upon the Site on behalf
         of ICO following installation, delivery, testing and acceptance of the
         same by ICO.

         "Software" shall mean all operating systems, compilers, utilities and
         other programs in any form and associated documentation provided or to
         be provided by the Contractor for inclusion in the Works.

         "Spares" shall mean spare and replacement parts for the Equipment.

         "Statement of Work" shall mean those documents set out in Schedule 14.

         "Sub-Contractor" shall mean any person, firm or company (including the
         Principal Sub-Contractors) to whom any of the Contractor's obligations
         under this Agreement have been sub-contracted (whether by the
         Contractor, the Principal Sub-Contractors or any other person to whom
         any of the Works have been subcontracted directly or indirectly) and
         its legal representatives, successors and permitted assigns.

         "Top Level Milestones" shall mean those tasks and events designated by
         a (T) in the Top Level Milestone Schedule.

         "Top Level Milestone Schedule" shall mean Schedule 7 of this Agreement.

         "Training" shall mean the training to be provided by the Contractor
         under clause 45.

         "Ts &Cs" shall mean the main body of this Agreement.

         "TT&C" shall mean the ground communication equipment to be supplied to
         ICO by a third party for satellite telemetry, tracking and control
         capability.

         "TWT" shall mean travelling wave tube.

         "US$" shall mean United States Dollars, the lawful currency of the
         United States of America.

                                       78
<PAGE>   1845
         "Works" shall mean and include the supply, delivery, installation,
         integration, testing and setting to work of the Deliverables and all
         other work required to be carried out by the Contractor under this
         Agreement.

                                       79
<PAGE>   1846
SCHEDULE 3: DISPUTE RESOLUTION PROCEDURE

1        Each party shall use all reasonable endeavours to resolve any disputes
arising out of or in relation to this Agreement, including as to its
interpretation.

2        In the event that such a dispute arises then the escalation procedures
set out in the remaining paragraphs of this Schedule shall apply and either
party may invoke these procedures by giving notice in writing to the other
specifying the subject matter of the dispute and its proposal for its
resolution.

3        ICO and the Contractor shall respectively procure that the dispute is
considered by the Supervising Officer and the Contractor's Authorised
Representative and that such parties attempt, in good faith, to resolve the
dispute. If such persons reach agreement on the matter in dispute within 15 days
of the dispute procedure having been invoked, which period shall commence upon
the receipt of the notice referred to in paragraph 2, (or such other period as
the parties may mutually agree in writing) the parties shall procure that their
respective representatives shall sign a joint memorandum to that effect
recording the resolution and procure that such agreement is fully and promptly
carried into effect.

4        If the Supervising Officer and the Contractor's Authorised
Representative fail to reach agreement on the matter in dispute within the
period specified in paragraph 3 or together conclude that resolution is
unlikely, then either of them may within 10 days of the expiry of such period
refer the matter in dispute to, in the case of ICO, Dr G.K.Smith or another
Senior Vice President of ICO for the time being and in the case of the
Contractor, Hiromi Hayashi or any other Associate Senior Vice President (or, in
either case, if such person is not available, a senior manager of equivalent or
nearest equivalent standing in the organisation of the party concerned)
(together the "Senior Officers") for consideration by such persons. ICO and the
Contractor shall respectively procure that such dispute is considered by the
Senior Officers and that they attempt, in good faith, to resolve the dispute. If
the Senior Officers reach agreement on the matter in dispute within 15 days of
the dispute being referred to them under this paragraph, (or such other period
as the parties may mutually agree in writing) the parties shall procure that
their respective representative shall sign a joint memorandum to that effect
recording the resolution and procure that such agreement is fully and promptly
carried into effect.

5        the dispute resolution procedure shall, as regards the matter in
dispute, have been exhausted if the matter in dispute:

         (a)      has not been resolved in accordance with paragraph 3 within
                  the relevant period and is not referred to the Senior Officers
                  within the relevant period; or

         (b)      where it is so referred, has not been resolved in accordance
                  with paragraph 4 within the relevant period.

For the avoidance of doubt, the fact that the dispute resolution procedure has
been exhausted without resolution of the matter in dispute shall not prevent the
parties from agreeing that the matter in question should be referred to an
independent form of alternative dispute resolution agreed between them and/or to
arbitration.

6        The foregoing provisions of this shall, subject always to clause 62,
not prevent either party from commencing legal proceedings or applying to the
court for injunctive or other interim relief at any time.

                                       80
<PAGE>   1847
SCHEDULE 7: TOP LEVEL MILESTONES

<PAGE>   1848
                          for Phased SAN Handover Plan

<TABLE>
<CAPTION>
                                                                                                                      1997
                                                                                                             -----------------------
ID    [ICON] TASK NAME                                           RESP           DURATION  START     FINISH   QTR 1 QTR 2 QTR 3 QTR 4
<S>   <C>    <C>                                                 <C>            <C>       <C>       <C>       <C>   <C>   <C>  <C>
             PHASED SAN HANDOVERS                                               608 days  05/11/98  01/03/01

33(T) [ICON]  1 SAN DEU (FS1 & AS1)                              Contractor       0 days  01/03/00  01/03/00

34    [ICON]  CALL DEMONSTRATIONS                                               262 days  01/03/00  01/03/00
35(T) [ICON]   Demonstration A: Voice, Mobile Terminated &
                Mobile Originated Call                           Contractor       0 days  01/03/00  01/03/00
36(T) [ICON]   Demonstrations C: Voice with Diversity/ D:GSM
                 Data at 2.4kbps                                 Contractor       0 days  01/08/00  01/08/00
37    [ICON]    Demonstration B: Inband Fax at 2.4 kbps &
                  Inband Data at 2.4 kbps                        Contractor       0 days  01/05/00  01/05/00
38    [ICON]   Demonstration E: GSM Data at 9.6/2.4 kbps         Contractor       0 days  01/10/00  01/10/00
39(T) [ICON]   Demonstration F: GSM Fax and Data at 4.8 kbps     Contractor       0 days  01/03/01  01/03/01
      [ICON]     NB: TLM if E is NOT achieved by 1/10/00

40             SATELLITE LAUNCH DATES                                           304 days  05/11/98  01/01/00
41    [ICON]      F1                                                  ICO         0 days  05/11/98  05/11/98
42    [ICON]      F2                                                  ICO         0 days  05/02/99  05/02/99
43    [ICON]      F3                                                  ICO         0 days  06/05/99  06/05/99
44    [ICON]      UT's Available                                      ICO         0 days  01/08/99  01/08/99
45    [ICON]      Regulatory Licence for Transmission                 ICO         0 days  01/01/00  01/01/00

47(T) [ICON] FS5 & AS5                                                            0 days  01/03/01  01/03/01

48           ICO SUPPLIED INTER SAN-SAN COMMUNICATIONS LINKS:         ICO       515 days  12/12/97  01/12/99
49    [ICON]  NEC to confirm quantity of SAN-SAN Links required  Contractor       0 days  12/12/97  12/12/97
50            ICO SUPPLIED E1 LINKS                                             183 days  22/03/99  01/12/99
51    [ICON]        Link NMC - IND                                    ICO         0 days  22/03/99  22/03/99
52    [ICON]        Link IND - IDN                                    ICO         0 days  27/08/99  27/08/99
53    [ICON]        Link IDN - AUS                                    ICO         0 days  12/04/99  12/04/99
54    [ICON]        Link NMC - USA                                    ICO         0 days  30/06/99  30/06/99
55    [ICON]        Link AUS - KOR                                    ICO         0 days  07/07/99  07/07/99
56    [ICON]        Link KOR - NMC                                    ICO         0 days  22/03/99  22/03/99
57    [ICON]        Link USA - MEX                                    ICO         0 days  05/07/99  05/07/99
58    [ICON]        Link MEX - CHL                                    ICO         0 days  19/07/99  19/07/99
59    [ICON]        Link IND - ARE                                    ICO         0 days  23/08/99  23/08/99
60    [ICON]        Link ARE - DEU                                    ICO         0 days  23/08/99  23/08/99
61    [ICON]        Link CHL - BRA                                    ICO         0 days  16/07/99  16/07/99
62    [ICON]        Link DEU - ZAF                                    ICO         0 days  13/09/99  13/09/99
63    [ICON]        Link USA - DEU                                    ICO         0 days  08/07/99  08/07/99
64    [ICON]        Link BMC - USA                                    ICO         0 days  12/07/99  12/07/99
65    [ICON]        Link BMC - DEU                                    ICO         0 days  12/07/99  12/07/99
66    [ICON]        Link IND - KOR                                    ICO         0 days  01/12/99  01/12/99
67    [ICON]        Link BRA - DEU                                    ICO         0 days  23/08/99  23/08/99
68    [ICON]        Link ZAF - IND                                    ICO         0 days  08/09/99  08/09/99
69    [ICON]        Link USA - KOR                                    ICO         0 days  09/08/99  09/08/99
70    [ICON]        Link KOR - BMC                                    ICO         0 days  08/11/99  08/11/99
71    [ICON]        Link BMC - NMC                                    ICO         0 days  08/11/99  08/11/99
</TABLE>

<TABLE>
<CAPTION>
                                                                           1998                          1999
                                                                 --------------------------    --------------------------
ID    [ICON] TASK NAME                                           QTR 1  QTR 2  QTR 3  QTR 4    QTR 1  QTR 2  QTR 3  QTR 4
<S>   <C>    <C>                                                 <C>    <C>    <C>    <C>      <C>    <C>    <C>    <C>
             PHASED SAN HANDOVER

33(T) [ICON]  1 SAN DEU (FS1 & AS1)

34    [ICON]  CALL DEMONSTRATIONS
35(T) [ICON]   Demonstration A: Voice, Mobile Terminated &
                Mobile Originated Call
36(T) [ICON]   Demonstration C: Voice with Diversity/ D:GSM
                 Data at 2.4 kbps
37    [ICON]    Demonstration B: Inband Fax at 2.4 kbps &
                  Inband Data at 2.4 kbps
38    [ICON]   Demonstration E: GSM Data at 9.6/2.4 kbps
39(T) [ICON]   Demonstration F: GSM Fax and Data at 4.8 kbps
      [ICON]     NB: TLM if E is NOT achieved by 1/10/00

40    [ICON]   SATELLITE LAUNCH DATES
41    [ICON]      F1                                                                  05/11
42    [ICON]      F2                                                                           06/02
43    [ICON]      F3                                                                                  06/05
44    [ICON]      UT's Available                                                                             01/08
45    [ICON]      Regulatory Licence for Transmission

47(T) [ICON] FS5 & AS5

48           ICO SUPPLIED INTER SAN-SAN COMMUNICATIONS LINKS:
49    [ICON]  NEC to confirm quantity of SAN-SAN Links require   12/12
50            ICO SUPPLIED E1 LINKS
51    [ICON]        Link NMC - IND                                                             22/03
52    [ICON]        Link IND - IDN                                                                           27/08
53    [ICON]        Link IDN - AUS                                                                    12/04
54    [ICON]        Link NMC - USA                                                                           30/06
55    [ICON]        Link AUS - KOR                                                                           07/07
56    [ICON]        Link KOR - NMC                                                             22/03
57    [ICON]        Link USA - MEX                                                                    05/07
58    [ICON]        Link MEX - CHL                                                                    19/07
59    [ICON]        Link IND - ARE                                                                    23/08
60    [ICON]        Link ARE - DEU                                                                    23/08
61    [ICON]        Link CHL - BRA                                                                    16/07
62    [ICON]        Link DEU - ZAF                                                                    13/09
63    [ICON]        Link USA - DEU                                                                    08/07
64    [ICON]        Link BMC - USA                                                                    12/07
65    [ICON]        Link BMC - DEU                                                                    12/07
66    [ICON]        Link IND - KOR                                                                                  01/12
67    [ICON]        Link BRA - DEU                                                                    23/08
68    [ICON]        Link ZAF - IND                                                                    08/08
69    [ICON]        Link USA - KOR                                                                    09/08
70    [ICON]        Link KOR - BMC                                                                                  08/11
71    [ICON]        Link BMC - NMC                                                                                  08/11
</TABLE>

<TABLE>
<CAPTION>
                                                                           2000                  2001
                                                                 --------------------------     ------
ID    [ICON] TASK NAME                                           QTR 1  QTR 2  QTR 3  QTR 4     QTR 1
<S>   <C>    <C>                                                 <C>    <C>    <C>    <C>       <C>
             PHASED SAN HANDOVER

33(T) [ICON]  1 SAN DEU (FS1 & AS1)                              01/03

34    [ICON]  CALL DEMONSTRATIONS
35(T) [ICON]   Demonstration A: Voice, Mobile Terminated &
                Mobile Originated Call                           01/03
36(T) [ICON]   Demonstration C: Voice with Diversity/ D:GSM
                 Data at 2.4 kbps                                              01/08
37    [ICON]    Demonstration B: Inband Fax at 2.4 kbps &
                  Inband Data at 2.4 kbps                               01/05
38    [ICON]   Demonstration E: GSM Data at 9.6/2.4 kbps                              01/10
39(T) [ICON]   Demonstration F: GSM Fax and Data at 4.8 kbps                                    01/03
      [ICON]     NB: TLM if E is NOT achieved by 1/10/00

40    [ICON]   SATELLITE LAUNCH DATES
41    [ICON]      F1
42    [ICON]      F2
43    [ICON]      F3
44    [ICON]      UT's Available
45    [ICON]      Regulatory Licence for Transmission            01/01

47(T) [ICON] FS5 & AS5                                                                          01/03

48           ICO SUPPLIED INTER SAN-SAN COMMUNICATIONS LINKS:
49    [ICON]  NEC to confirm quantity of SAN-SAN Links require
50            ICO SUPPLIED E1 LINKS
51    [ICON]        Link NMC - IND
52    [ICON]        Link IND - IDN
53    [ICON]        Link IDN - AUS
54    [ICON]        Link NMC - USA
55    [ICON]        Link AUS - KOR
56    [ICON]        Link KOR - NMC
57    [ICON]        Link USA - MEX
58    [ICON]        Link MEX - CHL
59    [ICON]        Link IND - ARE
60    [ICON]        Link ARE - DEU
61    [ICON]        Link CHL - BRA
62    [ICON]        Link DEU - ZAF
63    [ICON]        Link USA - DEU
64    [ICON]        Link BMC - USA
65    [ICON]        Link BMC - DEU
66    [ICON]        Link IND - KOR
67    [ICON]        Link BRA - DEU
68    [ICON]        Link ZAF - IND
69    [ICON]        Link USA - KOR
70    [ICON]        Link KOR - BMC
71    [ICON]        Link BMC - NMC
</TABLE>

DOC: 77003A5                     Page 2             Created: 27TH FEBRUARY, 1997
                                                            Revised 3 June, 1999
<PAGE>   1849
[Project flow graph pg 2]

                            FOR PHASED SAN HANDOVER PLAN
<TABLE>
<CAPTION>
ID   TASK NAME                                                                 RESP              DURATION    START        FINISH
<S>                                                                           <S>              <S>          <S>          <S>
1(T)      SYSTEM PDR                                                           CONTRACTOR        0 days      15/09/97     15/09/97
2          Draft AMBE Voice Codec Software Interface                           ICO               0 days      04/03/97     04/03/97
3          Voice Codec High Level Functional Description                       ICO               0 days      07/04/97     07/04/97

4(T)      SYSTEM FDR                                                           CONTRACTOR        0 days      15/01/98     15/01/98
5          Voice Codec Floating Point-C Source Code                            ICO               0 days      15/08/97     15/08/97
6          Voice Codec Low Level Functional Description                        ICO               0 days      22/09/97     22/09/97
7          Air Interface ICD Final Version 4                                   ICO               0 days      30/09/97     30/09/97

8(T)      NMC (LINK-OS) & SRMC/SAN-SRMS FDR                                    CONTRACTOR        0 days      15/01/98     15/01/98
9          Preliminary NMS/SCC ICD including Definition of Ephemeris Data      ICO               0 days      12/05/97     12/05/97
10         Final NMS/SCC ICD including Definition of Ephemeris Data            ICO               0 days      15/09/97     15/09/97

11(T)     CME20 R8 PLM REVIEW-FDR (TG2)                                        CONTRACTOR        0 days      31/01/98     31/01/98

12(T)     12 RFT READY FOR TTC                                                 CONTRACTOR        0 days      31/03/98     31/03/98
13         Access to SAN Sites by following dates-:                            ICO             154 days      12/05/97     15/12/97
14         Brewste, USA                                                        ICO               0 days      08/10/97     08/10/97
15         Chatanapar, India                                                   ICO               0 days      08/10/97     08/10/97
16         Brisbane, Australia                                                 ICO               0 days      01/11/97     01/11/97
17         Usingen, Germany                                                    ICO               0 days      01/11/97     01/11/97
18         Longvilo, Chile                                                     ICO               0 days      15/11/97     15/11/97
19         Hartebeeshoake, South Africa                                        ICO               0 days      15/12/97     15/12/97
20         Final SAN/TTC ICD                                                                     0 days      12/05/97     12/05/97

21(T)     SB #1 MANUFACTURE COMPLETE                                           CONTRACTOR        0 days      31/08/98     31/08/98
22         Air Interface Final Version 4                                       ICO               0 days      30/09/97     30/09/97

23(T)     MSSC #12 FOB                                                         CONTRACTOR        0 days      28/02/99     28/02/99

24(T)     TNM #1 MANUFACTURE & PHASE 1 TESTING                                 CONTRACTOR        0 days      16/04/99     16/04/99
25         Draft AMBE Voice Codec Software Interface                           ICO               0 days      04/03/97     04/03/97
26         Voice Codec High Level Functional Description                       ICO               0 days      07/04/97     07/04/97
27         Voice Codec Floating Point-C Source Code                            ICO               0 days      15/08/97     15/08/97
28         Voice Codec Low Level Functional Description                        ICO               0 days      22/09/97     22/09/97

29(T)     TNM #1 INSTALLATION & P2-1 TEST COMPLETE                             CONTRACTOR        0 days      31/08/99     31/08/99

30(T)     SBS #12 P 2-1 COMPLETE                                               CONTRACTOR        0 days      01/10/99     01/10/99

32(T)     VERSION 2 SOFTWARE RELEASE FOR NMC/SRMC ON SITE TESTING              CONTRACTOR        0 days      30/04/00     30/04/00
</TABLE>

                                     Page 1
DOC:77003A5                                     Created: 27th February, 1997
                                                        Revised 3 June, 1999
<PAGE>   1850
SCHEDULE 8:       IDENTIFICATION OF SITES

The following Sites have not been examined by the Contractor as of the date of
this Agreement (3 March 1997):

Brazil
[Chile]
China
[Indonesia]
Korea
UAE
Primary NMC
Back-up NMC

The following Sites have been visited but not examined in detail:

Chile; and
Indonesia

The following Site has not been examined by the Contractor as of the date of
this Change Order No. 17

China
<PAGE>   1851
SCHEDULE 9: PRICING SCHEDULE

<PAGE>   1852
                                                            Schedule 9. PSH V1.0

                                PRICING SCHEDULE

                                                                    Page 1 of 35
<PAGE>   1853
                                                            Schedule 9. PSH V1.0

<TABLE>
<CAPTION>
                        DATE            CN NO.                       REASON FOR CHANGE

<S>               <C>                   <C>          <C>
1                 24 OCTOBER 1997       N/A          Final draft of pricing schedule including editorial
                                                     changes to document.  Acceptance of original of
                                                     revisions that were included in SA 3 March 1997.
                                                     Addition of paragraph numbers and removal of typos.
                                                     MCo.

2                 30TH MARCH 1998       N/A          Final revisions reflecting change order No. 3.

3                 12TH MAY 1999                      Draft revisions for PSH Change Order
4                 3 JUNE 1999                        NEC Comment
5                 7 JUNE 1999                        All amendment for PSH Change Order agreed
</TABLE>

                                                                    Page 2 of 35
<PAGE>   1854
                                                            Schedule 9, PSH V1.0

                                                                    Page 3 of 35
<PAGE>   1855
                                                            Schedule 9. PSH V1.0

1.       GENERAL

This Section describes:

-        in Section 2, the SA price schedule for the deliverables and services
         that the Contractor(s) will provide within the scope of this Supply
         Agreement

-        in Section 3, the future equipment(1) pricing

-        in Section 4 the future equipment order process

-        in Section 5, the pricing of future basic package software releases

-        in Section 6, the process and pricing of the development of ICO
         specific functionality.

2.       SA PRICE SCHEDULE

2.1.     PRICE OF THE SA

2.1.1.1. Table 1 summarises the price of the SA. Appendix 1 to this schedule
         describes the individual prices which are summarised in Items 1 to 10
         inclusive of Table 1. Appendix 2 to this schedule provides a detailed
         price list including individual equipment components. Appendix 3 to
         this Schedule provides the detailed price list including average hourly
         rates for the ICONET Integration Testing. Table 24 in Section 7 shows
         the history of the price change. Appendix 4 to this Schedule provides
         the detailed price list for the Phased SAN Handover Additional Costs --
         Engineering Portion

                      TABLE 1 - SA PRICE SUMMARY (US$)

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
        ITEM                              PURCHASE
--------------------------------------------------------------------------------
<S>     <C>                               <C>
1       RFT
2       SBS                                  *
3       PCS
</TABLE>

-----------------
1    For purposes of this Schedule, the term 'equipment'
     throughout means hardware and the associated operating software.

     * Confidential Treatment Requested and the Redacted Material has been
       separately filed with the Commission.

                                                                    Page 4 of 35
<PAGE>   1856
                                                            Schedule 9. PSH V1.0

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
                     ITEM                                        PURCHASE
--------------------------------------------------------------------------------
 <S>    <C>                                                   <C>
  4       Switch

  5       TNM

  6       NMS SRMC

  7       S.T.E

  8       SI & PM
                                                                        *
  9       Ax & B

  10      DCN

  11      PHASED SAN HANDOVER ADDITIONAL COST-
          ENTINEERING PORTION

          TOTAL OF ITEMS 1 TO 11 (EXCLUDING FREIGHT &
          INSURANCE) = "PRICE" (CLAUSE 15.1)

          FREIGHT AND INSURANCE
--------------------------------------------------------------------------------
</TABLE>

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

                                                                    Page 5 of 35

<PAGE>   1857
                                                            Schedule 9. PSH V1.0

2.1.1.2. In the event that ICO does not elect to purchase from the Contractor
         Freight and Insurance as set out in Table 1 within 30 days of the date
         of this Agreement, ICO may make alternate arrangements. In the event
         that ICO opts to make such arrangements, the parties shall meet to
         arrange any necessary modifications to the Agreement.

2.1.1.3. For the avoidance of doubt, the Price specified in clause 15.1 of this
         Agreement shall remain unchanged unless and until ICO opts for
         alternate arrangements and the initial payment shall be calculated and
         paid by ICO as if Freight and Insurance were included. In the event
         that ICO does opt out of the Freight and Insurance arrangements, the
         related proportion of the initial payment by ICO to NEC shall not be
         repaid to ICO but shall be set off against future payments by ICO under
         this Agreement.

2.1.1.4. In addition to the prices described in Paragraph 2.1.1.1 the Contractor
         will recharge ICO for:

         i.       Inter-Site telecommunication charges. These charges are for
                  the purposes of telephone and fax between SAN, NMC, BCC sites.

         ii.      Inter-Site testing telecommunications charges. These charges
                  are for the purposes of providing telecommunication links
                  between the development sites; NEC/A in Melbourne, NEC/J in
                  Yokohama, and HNS in Germantown, to enable the Contractor to
                  undertake factory integration testing of the IGF.

2.1.1.5. The Contractor will re-charge ICO the costs of Inter-Site
         telecommunications charges as incurred plus a handling fee. The total
         charge to ICO will be no more   *   for the whole of the SA.
         ICO will reimburse the Contractor on the basis of the invoice plus
         supporting detail.

2.1.1.6. The Contractor will re-charge ICO the costs of Inter-Site testing
         telecommunications charges as incurred plus a handling fee. The total
         charge to ICO will be no more   *   for the whole of the SA.
         ICO will reimburse the Contractor on the basis of the invoice plus
         supporting detail.

3.       FUTURE EQUIPMENT PRICING

3.1.     INTRODUCTION

3.1.1.1. This Section describes the future pricing for:

         i.       traffic capacity and subscriber expansion and the associated
                  hardware and software

         ii.      the installation and testing

         iii.     Systems Integration and Project Management.

3.1.1.2. The price adjustments that shall be applied for future orders are
         defined in Section 3.5 of this Schedule.

3.1.1.3. The future prices computed according to the indices and processes are
         quoted as `not to exceed' prices.

3.1.1.4. ICO is being, and will continue to be offered reasonable future pricing
         consistent with ICO volumes and functionality.

3.1.1.5. The price is quoted on FOB place of shipment basis. The interpretation
         of FOB is in accordance with the SA.

3.1.1.6. The following items will be quoted separately at the time of order for
         individual element capacity increases:

         * Confidential Treatment Requested and the Redacted Material has been
           separately filed with the Commission.

                                                                    Page 6 of 35
<PAGE>   1858
                                                            Schedule 9. PSH V1.0

           i.       Training

           ii.      Spares

3.1.1.7. Freight and Insurance will be quoted separately at the time of order in
         consideration to the number of blocks to be ordered and the place of
         the SAN sites where these blocks will be delivered.

3.2.     UNIT EQUIPMENT

The following sections describe the expansion block price for each subsystem.
RFTs

3.2.1.1. The IGF RFT is designed to transmit and receive the maximum C-band
         feeder link capacity of 750 traffic carriers assuming that up to 473
         carriers can be transmitted by one HPA with a total maximum EIRP of 77
         dBW. It is also designed to transmit one TT&C carrier at the maximum
         EIRP of 81 dBW in an emergency case.

3.2.1.2. The Contractor will negotiate with ICO, as and when requested by ICO,
         for the supply of additional RFT systems.

3.2.2.   SBS and DC Uninterruptable Power Supply System for SBS

3.2.2.1. The number of SBS Expansion Blocks required to support the traffic
         capacity of a SBS subsystem shall be computed with the formulae shown
         in Table 2. N is number of additional expansion blocks beyond the
         Initial Size (320 Erlangs) required to make an SBS capable of
         supporting the traffic for a given "Erlang size". The Erlang size to be
         used in this calculation is that based on the resource holding time in
         the SBS.

                    TABLE 2 - SBS TRAFFIC/BLOCK RELATIONSHIP

<TABLE>
<CAPTION>
---------------------------------------------- ----------------------------------
              SBS RATED TRAFFIC                      NUMBER OF BLOCKS (N)
---------------------------------------------- ----------------------------------
<S>                                            <C>

                                        *

---------------------------------------------- ----------------------------------
</TABLE>

3.2.2.2. The traffic supported by each expansion block/SBS size are target
         throughputs under presently known conditions. The Contractor shall
         endeavour to exceed the target throughputs. However, unforeseen
         circumstances may change these formula, in which case the Contractor
         and the Purchaser agree to inform each other of such circumstances and
         agree to work together to minimise the impact of unforeseen conditions.

3.2.2.3. The SBS Expansion Block also requires an expansion of the DC
         Uninterruptable Power Supply System (DC UPS) over and above that
         provided in an SBS capable of supporting 320 Erlangs. For every
         expansion block an additional block of DC UPS will be required with a
         minimum expansion of 2 DC UPS blocks for the first SBS expansion block
         beyond the Initial Size (320 Erlangs) of the SBS.

3.2.2.4. The unit price, inclusive of installation and testing, and the
         equipment that comprises an SBS Expansion Block and DC UPS, is shown in
         Table 3. Table 3 also shows the price for providing CE Mark compliance
         for an SBS Expansion Block for a country where it may be required.

         * Confidential Treatment Requested and the Redacted Material has been
           separately filed with the Commission.

                                                                    Page 7 of 35
<PAGE>   1859
                                                            Schedule 9. PSH V1.0

                 TABLE 3 - SBS EXPANSION BLOCK AND DC UPS PRICE

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------
    NOS.                    DESCRIPTION                   QUANTITY        PRICE (US$'000S)
-----------------------------------------------------------------------------------------------
<S>                                                       <C>        <C>
I             SBS EXPANSION BLOCK (CHANNEL UNIT AND
              CHANNEL MANAGER)

1             CHANNEL UNIT

1.1           Channel Unit Chassis (CUC)                          4

1.1.1         CUBs                                               18

1.1.2         Slot Processor Module (SPM)                        20

1.1.3         Modulator Demodulator Module (MDM)                 36

1.1.4         Clock Distribution Unit (CDM)                       4

1.1.5         Common Functions Module (CFM)                       8

1.1.6         Channel Unit Rack Base Units                        2

2             CHANNEL MANAGER

2.1           Channel Manager Chassis (ChM)                       1                     *

2.1.1         G.703 Interface                                    13

2.1.2         Control Processor Modules (CPM)                    11

2.1.2.1       Channel Access Processor (CAP)                      5

2.1.2.2       Channel Control Processor (CCP)                     4

2.1.2.3       Global Resource Process (GRP)                       2

2.1.3         Switching Transcoder Module (STM)                  21

2.1.4         10 Base2 Ethernet                                   1

2.2           Channel Manager Rack (CMR) w 2 Chassis              1

2.2.1         Fan                                                 2

2.2.2         Power Distribution Unit                             1

3             IF and Frequency Distribution Expansion      Included

4             INSTALLATION MATERIALS (Includes
              power/signal cables)

4.1           Power Cables                                       14

4.2           I/F Cables                                         16

4.3           LAN Cables                                   Included

4.4           Sync Cabling                                       20
5             Installation and Test                               1
-----------------------------------------------------------------------------------------------
II            SBS DC UPS (AC/DC CONVERTERS &                      1                *
              BATTERIES FOR 2 HOURS OPERATION)                                     *
-----------------------------------------------------------------------------------------------
III           CE MARK COMPLIANCE PER BLOCK                        1                *
-----------------------------------------------------------------------------------------------
</TABLE>

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

                                                                    Page 8 of 35
<PAGE>   1860
                                                            Schedule 9. PSH V1.0

3.2.3.   TNM

3.2.3.1. The TNM capacity expansion equipment comprises four parts:

         i.       Vocoder/mux (Voc/Mux) traffic expansion. Each Voc/Mux block
                  shall be provided for each SBS expansion block and support up
                  to 200 Erlangs.

         ii.      C&C rack (19 inch). One rack is required for Voc/Mux capacity
                  expansion of 1 and1/4blocks.

         iii.     Voice Codec Royalty per Voc/Mux Block.

         iv.      TNM(RPC) computer expansion. A TNM(RPC) may be required when a
                  TNM rated throughput exceeds   *   or BHCA exceeds
                     *   including inter-SAN traffic. The additional capacity
                  provided by a TNM (RPC) is   *   and   *   BHCA.

         v.       If BHCA per Voc/Mux block exceeds 8,800, including inter-SAN
                  traffic, upgrade of the Control Cards will be necessary.

         vi.      The Erlang size to be used in this calculation is that based
                  on the resource holding time in the TNM.

3.2.3.2. The Contractor shall endeavour to exceed the target throughputs.
         However, unforeseen circumstances may change these formula, in which
         case the Contractor and the Purchaser agree to inform each other of
         such circumstances and agree to work together to minimise the impact of
         unforeseen conditions.

3.2.3.3. The Voc/Mux Block, the C&C rack, the voice Codec Royalty, TNM (RPC) and
         Control Card price and associated equipment are shown in Table 4.

         The BHCA capacity of a Voc/Mux block can be upgraded from the standard
         capacity indicated in paragraph 3.2.3.1 (v) by the replacement of the
         Control Cards. Where a NEW Voc/Mux block is being ordered to expand the
         capacity of a TNM, the block can be supplied with the upgraded Control
         Cards at an ADDITIONAL cost of   *   per Control Card. Four Control
         Cards are required for each Voc/Mux block. The total price for a
         Voc/Mux block with the upgraded Control Cards would therefore be US$
            *   . Where ICO wishes to upgrade the BHCA capacity
         of an EXISTING Voc/Mux block, the Control Cards in the block must be
         replaced with upgraded cards. The price for EACH replacement upgraded
         Control Card is *.

                 TABLE 4 - TNM TRAFFIC AND COMPUTER BLOCK PRICE

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------
    NOS.                    DESCRIPTION                    QUANTITY        PRICE (US$'000S)
-----------------------------------------------------------------------------------------------
<S>                                                        <C>             <C>
I             VOC/MUX BLOCK                                                          *
1             VOCODER/MUX Unit
1.1           Vocoder/Mux Card                                     *
1.2           Control Card                                         *
1.3           I/O Card                                             *
1.4           19 inch 6RU Shelf                                    *
1.5           Power Supply Shelf                                   *
1.6           Fan Unit                                             *
2             Installation Materials                               *
-----------------------------------------------------------------------------------------------
II            C&C RACK (19 INCH).                                  *                  *
-----------------------------------------------------------------------------------------------
</TABLE>

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

                                                                    Page 9 of 35
<PAGE>   1861
                                                            Schedule 9. PSH V1.0

<TABLE>
<S>                                                           <C>             <C>
-----------------------------------------------------------------------------------------------
III           VOICE CODEC ROYALTY                                         *
              (SUBJECT TO PARAGRAPH 3.2.3.4.)
-----------------------------------------------------------------------------------------------
IV            TNM (RPC)

1.1           TNM Computer (RPC)

1.1.1         Sparc 1000 with 2 processors, 512MB MM,
              5GB HD, Ethernet Interfaces, 8mm Tape
              Drive and CD ROM Drive

1.2           Ethernet Hubs/Routers and Accessories
                                                                           *
1.3           TNM O&M Software Licence

1.4           Software Licences

1.4.1         Solaris Operating System with Media

1.4.2         Solstice -Runtime

1.4.3         An additional TNM O&M Software licence
              for management of 2 sets of 1:1 PRC.

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

V             RPN CPU UP GRADED CONTROL CARD

1.1           Future replacement of Control Card
                                                                             *

1.2           Additional price of each Control Card,
              supplied as part of an order for a new
              Voc/Mux block with upgraded Control
              Cards (this price is in addition to the
              price shown in Item I above)
-----------------------------------------------------------------------------------------------
</TABLE>

3.2.3.4. The limit to the Contractors liability for the Voice Codec Royalty is
            *   for the licence and   *   per channel. Should the
         charges for the Voice Codec exceed these limits, NEC will recharge ICO
         at cost the excess over and above   *   and   *   per channel.

3.2.3.5. The Volume discount rates that apply to purchases of I) TNM Voc/Mux
         blocks and II) C&C Rack capacity are shown in Table 5.1 and Table 5.2,
         respectively.

                    TABLE 5.1 - TNM VOC/MUX VOLUME DISCOUNTS

<TABLE>
<CAPTION>
---------------------------------------------------------------
     NUMBER OF VOC/MUX BLOCKS            DISCOUNT FACTOR
---------------------------------------------------------------
<S>               <C>                    <C>
     from 1            to 2

     from 3            to 5

     from 6            to 10                       *

    from 11            to 17

    from 18            to 29

    from 30          and above
---------------------------------------------------------------
</TABLE>

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

                                                                   Page 10 of 35
<PAGE>   1862
                                                            Schedule 9. PSH V1.0

                    TABLE 5.2 - TNM C&C RACK VOLUME DISCOUNTS

<TABLE>
<CAPTION>
---------------------------------------------------------------
        NUMBER OF C&C RACK               DISCOUNT FACTOR
---------------------------------------------------------------
<S>               <C>                    <C>
     from 1            to 2

     from 3            to 4

     from 5            to 8                        *

     from 9            to 14

    from 15            to 23

    from 24          and above
---------------------------------------------------------------
</TABLE>

3.2.3.6. The installation charges for the expansion of Voc/Mux and TNM (RPC)
         capacity of a TNM are shown in Table 6.

                   TABLE 6 - TNM EXPANSION INSTALLATION PRICES

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------
    NOS.                  DESCRIPTION                   QUANTITY          PRICE (US$'000S)
-----------------------------------------------------------------------------------------------
<S>                                                  <C>                  <C>
1             VOC/MUX BLOCK EXPANSION

1.1           First Voc/Mux block per SAN              per block                    *

1.2           Each Voc/Mux block in addition to        per block
              first block per SAN
-----------------------------------------------------------------------------------------------
2             TNM (RPC)

2.1           Per TNM (RPC) if as a separate         per TNM (RPC)
              installation                                                          *

2.2           Per TNM (RPC) if installed at same     per TNM (RPC)
              time as capacity expansion
-----------------------------------------------------------------------------------------------
</TABLE>

3.2.3.7. The discount rates that apply to the first Voc/Mux block installation
         charges are shown in Table 7. The number of SANs shows the number of
         SANs installed in the upgrade program.

                 TABLE 7 - FIRST EXPANSION BLOCK DISCOUNT RATES

<TABLE>
<CAPTION>
         -------------------------------------------------------
             NUMBER OF SANS             DISCOUNT FACTOR
         -------------------------------------------------------
<S>          <C>                        <C>
                 1 to 3

                 4 to 5

                 6 to 7                         *

                 8 to 9

                   10

                11 to 12
         ------------------------ ------------------------------
</TABLE>

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

                                                                   Page 11 of 35
<PAGE>   1863
                                                            Schedule 9. PSH V1.0

3.2.3.8. The volume discount rates that apply to the installation charges for
         the additional Voc/Mux blocks per SAN are shown in Table 8.

                    TABLE 8 - ADDITIONAL BLOCK DISCOUNT RATES

<TABLE>
<CAPTION>
         -------------------------------------------------------
            NUMBER OF VOC/MUX           DISCOUNT FACTOR
                 BLOCKS
         -------------------------------------------------------
<S>       <C>                         <C>
                    1

                    2

                    3                             *

                    4

                    5

               6 and above
         ------------------------ ------------------------------
</TABLE>

3.2.4.   MSSC/VLR

3.2.4.1. The MSSC/VLR reference price is shown in Table 9. The reference price
         includes:

         i.       the equipment including the hardware and the software licence
                  fee

         ii.      installation and test charge.

                       TABLE 9 - MSSC/VLR REFERENCE PRICE

                                  [LINE GRAPH]

3.2.4.2. The pricing curve is intended to give ICO sound guidance to estimate
         prices for future switch growth. The curve has been developed using the
         current SA dimensioning assumptions as defined in Section 9.2 of the
         IGFR. Changes in these assumptions may lead to some adjustment in the
         price for any given switch capacity.

         * Confidential Treatment Requested and the Redacted Material has been
           separately filed with the Commission.

                                                                   Page 12 of 35
<PAGE>   1864
                                                            Schedule 9. PSH V1.0

3.2.4.3. The Contractor will provide ICO with a price for each upgrade based on
         the actual traffic and network configuration at the time of order.

3.2.4.4. Table 10 illustrates how the price for incremental growth is
         calculated. In this example, the cost of growing a switch with an
         initial capacity of   *   to a new capacity of   *   would be
         approximately   *

     TABLE 10 - REFERENCE ILLUSTRATION OF PRICE FOR INCREMENTAL GROWTH OF AN
                                    MSSC/VLR

                                  [LINE GRAPH]

3.2.4.5. Table 11 shows in tabular form the points for computing the graph shown
         in Table 9.

                    TABLE 11 - MSSC/VLR PRICING GRAPH POINTS

<TABLE>
<CAPTION>
<S>             <C>

                                       *

</TABLE>

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

                                                                   Page 13 of 35
<PAGE>   1865
                                                            Schedule 9. PSH V1.0

<TABLE>
<CAPTION>
<S>                                  <C>                       <C>

                                        *

</TABLE>

3.2.4.6. The project management fee for MSSC/VLR expansion shall be an
         additional fee of 7% of the agreed final MSSC/VLR upgrade price as per
         Paragraphs 3.2.4.1 and 3.2.4.3 of this Schedule.

3.2.5.   HLR

3.2.5.1. The price for an additional HLR platform, excluding DC UPS, with an
         initial   *   subscribers capacity is shown in Table 12-1.

                    TABLE 12-1 - HLR PLATFORM EXPANSION PRICE

<TABLE>
<CAPTION>
     NO.                                   DESCRIPTION                                 QUANTITY     PRICE (US$'000s)

<S>            <C>                                                                     <C>                 <C>
      1        HLR Platform hardware for maximum   *  subscriber except DC Power
               Supply
                                                                                                     *
      2        HLR Software for   *   subscriber
</TABLE>

3.2.5.2. The additional software licence fee for the growth in the installed HLR
         subscriber capacity over and above   *   subscribers per HLR is shown
         in Table 12-2.

                    TABLE 12-2 - HLR CAPACITY EXPANSION PRICE

<TABLE>
<CAPTION>
                                                                                                         PRICE
     NO.                                  DESCRIPTION                                 QUANTITY         (US$'000s)
<S>           <C>                                                                     <C>               <C>
      1       additional   *   subscribers, i.e.  *   subscriber total
              capacity

      2       additional   *   subscribers i.e.   *   subscriber total
              capacity
                                                                                                   *
      3       additional   *   subscribers i.e.   *   subscriber total
              capacity

      4       additional   *   subscribers i.e.   *   subscriber total
              capacity
</TABLE>

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

                                                                   Page 14 of 35
<PAGE>   1866
                                                            Schedule 9. PSH V1.0

3.2.5.3. The offered HLR hardware has been dimensioned to support   *
         subscribers as per the parameters defined in Section 9.2 of the IGFR.
         The hardware may be able to support   *   subscribers, however, this
         is subject to confirmation.

3.2.5.4. The Contractor shall provide software licence fees for total capacity
         of greater than   *   subscribers subject to confirmation that the
         hardware can support total capacities greater than   *   subscribers.

3.2.6.   AuC/EIR

3.2.6.1. The price for an additional AuC/EIR platform, excluding DC UPS, with an
         initial   *   subscribers capacity is shown in Table 13-1.

                  TABLE 13-1 - AuC/EIR PLATFORM EXPANSION PRICE

<TABLE>
<CAPTION>
                                                                                                             PRICE
     NO.                                   DESCRIPTION                                 QUANTITY            (US$'000s)
<S>            <C>                                                                     <C>          <C>
      1        AuC/EIR Platform hardware for maximum 500k subscriber except DC
               Power Supply
                                                                                                    *
      2        AuC/EIR Software for   *   subscriber
</TABLE>

3.2.6.2  The additional software licence fee for the growth in the installed
         AuC/EIR subscriber capacity over and above   *   subscribers per
         AuC/EIR is shown in Table 13-2.

                  TABLE 13-2 - AuC/EIR CAPACITY EXPANSION PRICE

<TABLE>
<CAPTION>
                                                                                                        PRICE
     NO.                                  DESCRIPTION                                 QUANTITY        (US$'000s)
<S>           <C>                                                                     <C>             <C>
      1       additional   *   subscribers, i.e.  *   subscriber total
              capacity

      2       additional   *   subscribers i.e.   *   subscriber total
              capacity
                                                                                                  *
      3       additional   *   subscribers i.e.   *   subscriber total
              capacity

      4       additional   *   subscribers i.e.   *   subscriber total
              capacity
</TABLE>

3.2.6.3. The offered AuC/EIR hardware has a rated total capacity of   *
         subscribers based on the values of Authentication and IMEI checking
         parameters as stated in the IGFR Section 9.2.

3.2.6.4. The Contractor shall provide software licence fees for total capacity
         of greater than   *   subscribers in increments of   *   subscribers
         subject to confirmation that the hardware can support total capacities
         greater than   *   subscribers.

         * Confidential Treatment Requested and the Redacted Material has been
           separately filed with the Commission.

                                                                   Page 15 of 35
<PAGE>   1867
                                                            Schedule 9. PSH V1.0

3.2.7    Messaging system (Comverse Trilogue INfinity)

3.2.7.1. The hardware and software are sold together as a complete Messaging
         system--separation of the hardware and software licensing structure is
         not possible.

3.2.7.2  The detailed pricing for the messaging system is given in Tables 14-1,
         14-2 and 14-3. The solution provides support for Voicemail, Faxmail,
         SMS and Email notification. The price for the   *   subscribers
         centralised solution is fixed and firm and includes hardware and
         software, installation, commissioning and testing, warranty and spares.

3.2.7.3  Training, additional redundancy equipment and distribution equipment
         are excluded from the pricing.

3.2.7.4  Prices other than the   *   subscribers centralised solution are also
         fixed and firm and include hardware and software, installation,
         commissioning and testing, warranty and spares. The quoted prices will
         remain in force unadjusted until 31st March 1998. Thereafter, prices
         for additional orders will be negotiated within the NTE ceiling set in
         the Supply Agreement Contract and will take account of prevailing
         market conditions at the time of order.

3.2.7.5  The price for incremental growth of the messaging solution may be taken
         as the difference between the prices quoted below, plus the cost of any
         installation, commissioning and testing services that may be
         additionally required beyond those included below.

   TABLE 14-1 MESSAGING SYSTEM CAPACITY EXPANSION PRICE (SINGLE SITE SOLUTION)

<TABLE>
<S>                     <C>
Single Site Solution

Scenario

Subscribers
                                          *
Pricing

Nec price to
ICO (US$)

Price per sub.(US$)
</TABLE>

The above prices also include the necessary Exchange Terminating Circuit (ETC)
equipment on the MSSC to support the   *   subscriber centralised messaging
requirement as defined in the document "Messaging Solution Proposal for ICO
Global Communications (reference WG3-IT7 0068C)". Prices quoted for systems with
capacity larger than   *   subscribers are exclusive of any necessary MSSC
hardware or software, which must be dimensioned and priced as agreed in the
Supply Agreement.

   TABLE 14-2 MESSAGING SYSTEM CAPACITY EXPANSION PRICE (THREE SITE SOLUTION)

<TABLE>
<S>                <C>
Three Site

Scenario

Site 1/3                                *
Subscribers

Site 2/3
Subscribers

Site 3/3
Subscribers
</TABLE>

<TABLE>
<S>                <C>
Three Site
Solution

Scenario

                                               *

Site 1/3
Subscribers

Site 2/3
Subscribers

Site 3/3
Subscribers
</TABLE>

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

                                                                   Page 16 of 35
<PAGE>   1868
                                                            Schedule 9. PSH V1.0

                                        *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

                                                                   Page 17 of 35
<PAGE>   1869

                                                            Schedule 9. PSH V1.0

     TABLE 14-3 MESSAGING SYSTEM CAPACITY EXPANSION PRICE (12 SITE SOLUTION)

                                        *

* Confidential Treatment Requested and the Redacted Material has been
          separately filed with the Commission.

                                                                   Page 18 of 35
<PAGE>   1870
                                                            Schedule 9. PSH V1.0

3.2.8.2  The software licence fees for installed ICO-IS.41 and IS.41-ICO ILR
         subscriber capacities per platform are shown in table 15-2 and table
         15-3.

              TABLE 15-2 - SUBSCRIBER CAPACITY PRICE, PER PLATFORM

                                        *

         * Confidential Treatment Requested and the Redacted Material has been
           separately filed with the Commission.

                                                                   Page 19 of 35
<PAGE>   1871
                                                            Schedule 9. PSH V1.0

              TABLE 15-3 - SUBSCRIBER CAPACITY PRICE, PER PLATFORM

<TABLE>
<CAPTION>
<S>          <C>

                                        *

</TABLE>

         Upgrade price is the sum of all upgrade prices from the existing
         subscriber capacity to the new subscriber capacity. For example
         upgrading from * subscribers to * subscribers for Standard Products
         (only), would be   *   .

3.2.8.3  A discount will be applied to the total subscriber capacity according
         to Table 15-4 below. This discount is applicable to a 3 Platform
         solution only and will be applied as follows:

         For the initial procurement of 3 Platforms the discount will apply to
         the total capacity procured. For example if a total subscriber capacity
         of   *   across 3 Platforms is procured then a discount of   *   on
         Standard software and   *   on ICO Modifications and TMOS-Lite Agent
         will apply.

         Where an expansion in capacity is procured then the discount applicable
         to the new total subscriber capacity will apply to the additional
         capacity procured only. For example if the total subscriber capacity
         was   *   and a further increase of   *   was procured, giving a
         total subscriber capacity of   *   then a discount of   *   on
         Standard software and   *   on ICO Modifications and TMOS-Lite Agent
         would apply to the Upgrade price only, i.e. it would not be
         retrospectively calculated on the total subscriber capacity previously
         procured.

         * Confidential Treatment Requested and the Redacted Material has been
           separately filed with the Commission.

                                                                   Page 20 of 35
<PAGE>   1872
                                                            Schedule 9. PSH V1.0

  TABLE 15-4 - DISCOUNT ON TOTAL SUBSCRIBER CAPACITY FOR A 3 PLATFORM SOLUTION

                                        *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

                                                                   Page 21 of 35
<PAGE>   1873
                                                            Schedule 9. PSH V1.0

3.2.9.   DC Uninterruptable Power Supply System For Switch Systems

3.2.9.1. The purchase and installation prices for DC UPS (2 hour battery
         back-up) for the MSSC/VLR, HPN/PCS, HLR, AUC/EIR, Messaging Platform
         and ILR are provided in Table 16.

          TABLE 16 - DC UPS POWER CAPACITY EXPANSION PRICE PER SAN SITE

<TABLE>
<CAPTION>
                      POWER CAPACITY kW              GROWTH ITEM        PRICE THOUSAND US$
<S>                   <C>                            <C>                <C>

                                        *

</TABLE>

3.2.9.2  The installation price for the first installation and each subsequent
         expansion is   *   for the first 6.3kW and then   *   for each
         additional 6.3kW.

         One spares set ( Price   *   ) is sufficient to support a DC UPS up to
         50.4kW.

         Growth Item 1 = 1 Battery Rack plus 1 Rectifier Unit

         Growth Item 2 = 1 Battery Rack plus 1 Rectifier Unit plus 1 Cabinet

         Growth Item 3 = 1 Battery Rack plus 1 Rectifier Unit plus 1
         Distribution Unit

         Note: The actual hardware delivered may vary as a consequence of the
mix of platforms for which power is being supplied at any SAN site but the price
for expansion will be as per the table.

3.2.9.3  NEC will provide details of the power consumptions of individual
         units/platforms as and when requested in order to facilitate ICO's
         planning of capacity expansions.

         * Confidential Treatment Requested and the Redacted Material has been
           separately filed with the Commission.

                                                                   Page 22 of 35

<PAGE>   1874
                                                            Schedule 9. PSH V1.0

3.2.10   OSS (TMOS)

3.2.10.1 For the purpose of the OSS Software Licence fee, a Network Element
         shall be taken to mean a MSSC/VLR, an HLR, an AuC/EIR, a Messaging
         Platform, or an IS.41 ILR or any other equipment which may be connected
         into the ICO network for which connection to the OSS is required.

3.2.10.2 OSS is provided as hardware and software to the NMC and the back-up NMC
         and it should be noted that this is conditional on the back-up NMC
         being used as a cold standby ONLY.

3.2.10.3 A Software Licence fee of   *   shall be charged for each and every
         connection to a Network Element that is required by the OSS.

3.2.10.4 The Software Licence fee shall apply to every Network Element
         connection that is made above the initial connection of 22 Network
         elements. The initial 22 Network elements shall be charged at the firm
         fixed price as given in Change Order 3.

3.2.11.  System Integration and Programme Management

3.2.11.1 The Systems Integration and Programme Management (SI&PM) fee for the
         future expansion of traffic and subscriber capacity is:

         i.          *   thousand per annum

         ii.      SI&PM services will be provided at London

         iii.     the SI&PM fee will be charged for the calendar year starting
                  from 12 August 2000 or handover whichever is latest.

3.2.11.2. ICO may terminate the SI&PM services on 6 months notice.

3.2.12.  Legal Interception

3.2.12.1 System capacity can be expanded to handle more "targets" and more
         simultaneous intercepted calls. The system can also be expanded to
         increase delivery capacity of intercepted calls toward the Monitoring
         Centres (MCs).

3.2.12.2 The pricing for each element of expansion is given in Table 18.

              TABLE 18 LEGAL INTERCEPTION CAPACITY EXPANSION PRICE

<TABLE>
<CAPTION>
           Item                                                            Quantity              Firm Fixed Price

<S>                                                                        <C>                   <C>
           Increase size of "target" list (LIAS & LIMS)

           Price for each additional module for E1 trunk handling the X3
           interface (30 channels) per LIAS
                                                                                           *
           Price for upgrade of LIAS, Router and LIMS to accept fixed
           connections
</TABLE>

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

                                                                   Page 23 of 35

<PAGE>   1875
                                                            Schedule 9. PSH V1.0

<TABLE>
<S>                                                                               <C>                <C>
           Price for each additional connection of E0 (64Kbps) per LIAS(3)

           Price for each additional group of 4 simultaneous switched
           connections (ISUP) per LIAS

           Price for X.25 router for connection to Monitoring Centers
           (via PDPSN) per LIAS                                                             *

           LIMS support for the above

           Installation for any of the above options
</TABLE>

3.2.12.3 Notes to Table 18:

         i.       Note 1: The "No Charge" options are provide Free of Charge
                  provided that the system is covered by warranty (initial or
                  extended).

         ii.      Note 2: Exclusive of all expenses which will be charged at
                  cost.

         iii.     Note 3: If fixed connections are not currently provided then
                  the upgrade of LIAS, Router and LIMS to accept fixed
                  connections will be required.

3.2.12.4 Please note that any necessary MSSC/VLR expansion is priced in
         accordance with the section 3.2.4.

3.3.     SPARES

3.3.1.1. The prices for the on-going supply of Spares to ICO for the purposes of
         maintaining ICO's stock of Spares to enable ICO to achieve the
         availability standards as defined in Section 8.11 is included within
         the Warranty prices.

3.3.1.2. The recommended expansion of spares over and above the packages offered
         in the SA to support the growth of the IGF and to exceed the levels of
         availability defined in Section 8.11 of the IGFR will be quoted at the
         time ICO orders additional capacity.

3.4.     EXTENDED WARRANTY (ICO OPTION AS DEFINED IN ANNEX 1 OF THE SOW)

3.4.1.   SBS Deluxe Support Service

3.4.1.1. The price for the SBS Deluxe Support Service option as specified in
         Section 5.3 of Annex 1 of the SOW is * for each two year
         period.

3.4.2.   MSSC Deluxe Support Service

3.4.2.1. The price for the MSSC Deluxe Support Service option specified in
         Section 5.4 in SOW Annex 1, excluding general purpose workstation
         hardware and operating systems, are as follows:

         i.       during Year 1 and 2 (i.e. in the warranty period)
                     *   for a 2 year period covering 12 MSSCs, 2 HLRs,
                  2 AuC/EIRs, 3 Messaging Platforms, 3 ILR platforms, Legal
                  Interception and 2 OSSs.

         ii.      during Year 3 and 4,   *   for each 1 year period,
                  covering 12 MSSCs, 2 HLRs, 2 AuC/EIRs and 2 OSSs.

         iii.     during Year 3 and 4,   *   for each 1 year period,
                  covering 3 Messaging

         * Confidential Treatment Requested and the Redacted Material has been
           separately filed with the Commission.

                                                                   Page 24 of 35
<PAGE>   1876
                                                            Schedule 9. PSH V1.0

                  Platforms,3 ILR platforms, and Legal Interceptions. The break
                  down of the amount is shown below:

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

                                        *

</TABLE>

         iv.      Note that new MSSC software releases incorporating new
                  functionality are not included within this service.

         v.       After year 4, pricing shall be based upon prevailing market
                  rates but limited by the NTE future price derived from the
                  prices quoted in paragraphs 3.4.2.1 and 3.4.2.3, adjusted by
                  the Price Adjustment factor as per Paragraph 3.5.2 for
                  Services.

3.4.2.2. The price of the MSSC Deluxe Support Service will be revised should ICO
         change the number of nodes in the IGF.

3.4.2.3. The options as defined in Annex 1 of the SOW also have a charge
         associated with Deluxe support as follows:

         i.       ILRs, for the 1st to 3rd ILR,   *   per ILR per annum
                  and for the 4th and thereafter   *   per ILR per Year

3.4.2.4. The price for the MSSC Deluxe Support Service II option specified in
         Section 5.5 of Annex 1 of the SOW is as specified in Paragraphs
         3.4.2.1, 3.4.2.2 and 3.4.2.3. of this Schedule.

3.4.2.5. Deluxe Support of HPN is priced at   *   per Year. This price
         provides one year of depot maintenance for the HPN hardware and
         software. Depot maintenance support does not include travel which if
         required will be charged in addition to the basic annual price. General
         purpose workstation hardware and operating systems are not included in
         this service.

3.4.3.   Extended Basic Warranty

3.4.3.1. The price for the Extended Basic Warranty options specified in Section
         5.2.1 of Annex 1 are:

         I.       RFT:   *   of FOB equipment price excluding NRE and general
                  purpose workstation per annum. The warranty for the TWTs shall
                  be the same as that in clause 40.[16] of the SA.

         II.      SBS: first year after completion of the warranty period
                  specific to clause 40 of the SA,   *   per annum for
                  12 SANs and thereafter   *   per annum for 12 SAN.

         III.     MSSC:   *   of FOB equipment price, excluding NRE and general
                  purpose workstation, per annum.

         IV.      TNM EXCLUDING DCN*:   *   of FOB equipment price, excluding
                  NRE and general purpose workstation hardware, per annum. This
                  does not cover general purpose workstation hardware and OS
                  maintenance.

         V.       *: Because DCN equipment is provided from 3rd party resources,
                  no extended basic warranty is offered.

         VI.      NMC/SAN OSS:   *   of FOB Equipment price, excluding NRE and
                  general purpose workstation hardware, per annum. This does not
                  cover general purpose workstation hardware and OS maintenance.

                  * Confidential Treatment Requested and the Redacted Material
                    has been separately filed with the Commission.

                                                                   Page 25 of 35

<PAGE>   1877
                                                            Schedule 9. PSH V1.0

3.5.     PRICE ADJUSTMENT

3.5.1.   Equipment Price Adjustment Formula

3.5.1.1. This Price Adjustment Formula shall be applied to the equipment
         described in Sections 3.2.1 to 3.2.10 inclusive and 3.2.12 and Section
         3.3.

3.5.1.2. Application of this price adjustment formula is subject to Section
         3.5.3.

3.5.1.3. The Contractor and ICO will negotiate in good faith to finalise the
         indices; As and Bs and ratios X, Y and Z, within three months of the
         SA. The Contractor will propose to ICO several options for the
         indices-- shown below in Paragraphs 3.5.1.4,3.5.1.5, 3.5.1.6, 3.5.1.7,
         3.5.1.8, 3.5.1.10, 3.5.1.11, 3.5.1.12, 3.5.1.13 and 3.5.2-- and will
         also provide detail of at least the last three years recorded indices
         and their sources.

3.5.1.4. Price in year of purchase

<TABLE>
<CAPTION>
<S>          <C>

                                        *

</TABLE>

3.5.1.5. NEC - J Indices: Antenna Subsystem:

         i.       "X" =   *

         ii.      "Y" =   *

         iii.     "Z" =   *

         iv.      Index A = Monthly wholesale price index of metals & related
                  products, Japan

         v.       Index B = Monthly cash earning index (nominal) of regular
                  workers in Manufacturing Industries (Contract Cash Earning),
                  Japan

3.5.1.6. NEC - J Indices: Other Equipment

         i.       "X" =   *

         ii.      "Y" =   *

         iii.     "Z" =   *

         iv.      Index A = Monthly whole sale price index of Electrical
                  Machinery, Japan

         v.       Index B = Monthly cash earning index (nominal) of regular
                  workers in Manufacturing Industries (Contract Cash Earning),
                  Japan

3.5.1.7. The NEC - J indices shall be extracted from "Economics Statistics
         Monthly" published monthly by the Bank of Japan and be applied to the
         above formula. Should the indices for the months of new order not be
         available, then the latest indices obtainable shall be applied.

3.5.1.8. HNS Indices

         i.       "X" =   *

         ii.      "Y1" =    *   (Note that factor "Y" as shown in the formula
                  has, for HNS, been split into two components, "Y1" and "Y2".
                  "B" has also been split into two respectively "B1" and "B2".)

         iii.     "Y2" =    *

         * Confidential Treatment Requested and the Redacted Material has been
           separately filed with the Commission.

                                                                   Page 26 of 35
<PAGE>   1878
                                                            Schedule 9. PSH V1.0

         iv.      "Z" =   *

         v.       Index A = US PPI for Electrical and Electronic Machinery
                  Equipment and Supplies, not seasonally adjusted

         vi.      Index B1 = USA Employment cost index for total compensation,
                  durable goods manufacturing, not seasonally adjusted

         vii.     Index B2 = Electrical / Electronics Industry Wages Index,
                  India

3.5.1.9. The Producer Price Index (PPI) is calculated by US Bureau of Labor, and
         is widely recognized among business people, economists, statisticians,
         and accountants for price adjustment clauses in contracts.

3.5.1.10. Index A and B1 will be as published by the US Department of Labor
         Bureau of labor statistics.

3.5.1.11. Index B2 will be as defined as described in Paragraph 3.5.1.3.

3.5.1.12. ETL Indices:

         i.       "X" =   *

         ii.      "Y" =   *

         iii.     "Z" =   *

         iv.      Index A = Telephone Equipment Capital Goods Index, World

         v.       Index B = Electrical / Electronics Industry Wages Index,
                  Sweden

3.5.1.13. NEC/A Indices:

         i.       "X" =   *

         ii.      "Y" =   *

         iii.     "Z" =   *

         iv.      Index A = Price index of material as published by Australian
                  Bureau of Statistics Cat. No. 6412.0 group 33

         v.       Index B = Electrical/Electronics Industry Wages Index,
                  Australia

3.5.2.   Basic Price Adjustment Formula for Services

3.5.2.1. This Price Adjustment formula shall be applied to the installation,
         integration and project management services listed in Sections 3.2.1 to
         3.2.11.

3.5.2.2. Application of this price adjustment formula is subject to Section
         3.5.3.

3.5.2.3. The Basic Price adjustment formula for services is:

                                        *

3.5.2.4. Each member of the Contractor's team price adjustment for services
         shall use the same wages Indices ("B"s, "B1"s and "B2"s) given in
         Section 3.5.1 and with the same proportion of B1 and B2 as given in
         Section 3.5 to make up the 0.8 coefficient.

         * Confidential Treatment Requested and the Redacted Material has been
            separately filed with the Commission.

                                                                   Page 27 of 35
<PAGE>   1879
                                                            Schedule 9. PSH V1.0

3.5.3.   Application of Pricing Adjustment Formulae

3.5.3.1. For equipment orders placed by ICO on, or before, 31 March 1998 for a)
         delivery, installation and integration with the initial purchase in the
         year 2000 and b) where the capacities do not exceed ICO's projected
         year 2002 requirements, the Not To Exceed price of the equipment,
         installation and integration shall be determined in accordance with the
         prices described in Section 3.2.1 to 3.2.10 inclusive without
         application of the Price Adjustment formula described in Section 3.5.1
         and 3.5.2. The actual price of the equipment, installation and
         integration shall be agreed at the date ICO places the order and shall
         take into account the then prevailing market conditions and not
         exceeding the prices charged to other customers ordering similar
         quantities of similar types of equipment.

3.5.3.2. For equipment orders placed by ICO:

         i.       on, or after, 1 April 1998, or

         ii.      for delivery, installation and integration after year 2000 or

         iii.     in excess of ICO's projected year 2002 requirements.

         The Price Adjustment formulae in Section 3.5.1 and 3.5.2 shall apply
         unless the actual price adjustment on or after 1 April 1998 exceeds
         three times or more the average annual adjustment rate during the
         period March 1995 to March 1997, determined using the Price Adjustment
         formulae in Section 3.5.1 and 3.5.2. In such event the actual price
         shall be determined taking into account the then prevailing market
         conditions and not exceeding the prices charged to other customers
         ordering similar quantities of similar types of equipment

3.6.     PAYMENT SCHEDULE

3.6.1.1. The equipment payment terms shall be:

         i.          *   of value on order

         ii.         *   of value on shipment

         iii.        *   of value on acceptance

3.6.1.2. The installation and SI&PM charges payment terms shall be:

         i.          *   of value on order

         ii.         *   of the value in equal monthly instalments, in arrears,
                  during the duration of the programme

         iii.        *   of the value upon acceptance.

3.6.1.3. The spares payment terms shall be:

         i.          *   of the value on order

         ii.         *   on delivery to the specified site.

         * Confidential Treatment Requested and the Redacted Material has been
           separately filed with the Commission.

                                                                   Page 28 of 35
<PAGE>   1880
                                                            Schedule 9. PSH V1.0

4.       EQUIPMENT ORDER PROCESS

4.1.     NORMAL PROCESS

4.1.1.1. The Contractor and the Purchaser agree to develop a process for
         handling the ordering and delivery of equipment. The main principles of
         the process are detailed in the following paragraphs. Items in [] are
         subject to review during the development of the process.

4.1.1.2. ICO will provide the Contractor(s) with a rolling forecast of future
         demand estimates [the format for this is as per Table 1 of Annex 1 of
         the SOW]. The forecast will be revised on an [annual] basis and
         supplied to the Contractor(s) on [Specific date].

4.1.1.3. ICO will place specific orders for equipment on Contractor(s)] in the
         [format specified in Table 1 of Annex 1, showing separately the total
         installed capacity, the incremental capacity and the final installed
         capacity after the purchase.] The total incremental capacity to be
         supplied under the order for all sites shall be used for the
         calculation of the price as defined in Section 3.

4.1.1.4. The FOB date shall be within nine months of receipt of order from ICO.

4.1.1.5. Contractor(s) shall be responsible for the management and co-ordination
         of all contractor staff and the successful installation, testing and
         bringing into service of the new tranche of equipment at each site.

4.1.1.6. The installation and test schedule will be agreed at the time of the
         placement of the order. The installation and acceptance shall be
         completed no more than 6 months after the delivery of equipment to the
         site unless agreed by ICO.

4.1.1.7. Contractor(s) shall plan in advance with ICO to minimise any downtime
         required for installation of expansion blocks. The Contractor shall
         work with ICO/Operator to schedule the downtime in appropriate time of
         day for ICO's business purposes.

4.2.     EXPEDITED PROCESS

4.2.1.1. ICO may request at any time an expedited order, delivery and bringing
         into service capacity expansion.

4.2.1.2. The Contractor will make all reasonable efforts to provide shortened
         delivery lead times for all, or part, of the order, as requested.

4.2.1.3. ICO can negotiate and give contractor incentives to shorten the lead
         time from receipt of order to bringing into shipment(FOB) and
         installation and bringing into service.

4.2.1.4. The expedited process may apply to partial shipments of a normal order
         or to a special purpose order which ICO may raise.

5.       PRICING OF SOFTWARE RELEASES

5.1.     GENERAL PRINCIPLES

5.1.1.1. Contractor(s) will provide ICO with releases of operating software on
         "as need be" basis or upon new feature release that has been purchased
         by ICO except switch(MSSC) subsystem software.

5.1.1.2. Contractor will provide regular releases of operating software for
         Switch(MSSC) subsystem which will provide new functionality in
         accordance with Supply Agreement.

5.1.1.3. The software releases will include fixes to faults, a basic package of
         new functionality and a range of

                                                                   Page 29 of 35
<PAGE>   1881
                                                            Schedule 9. PSH V1.0

         optional features.

5.1.1.4. The price schedule of the new software releases will be submitted
         separately 90 days in advance of the new releases.

5.2.     MSSC SOFTWARE UPGRADE PRICING

5.2.1.1. The pricing per annum for subscription to the standard CME 20 (MSSC)
         Software release programme for the period 1 January 2001 until December
         2003 is as shown in Table 19. The price for the upgrade depends upon
         the size of network.

                    TABLE 19 - MSSC SOFTWARE UPGRADE PRICING
<TABLE>
<CAPTION>
<S>          <C>

                                        *

</TABLE>

5.2.1.2. The above pricing is firm fixed price for the three year term.
         Subsequent pricing will be negotiated at the end of the three year term
         and will be linked to an index to be agreed.

5.2.1.3. The above software subscription provides ICO with the right to all
         basic software upgrades for the MSSC and HLR nodes which are made
         available within the subscription period. ICO may also choose to
         purchase optional features in addition.

5.2.1.4. Note that the above prices exclude any installation and materials costs
         which may be charged and which will be quoted at the time of upgrade.

5.2.1.5. The annual MSSC software subscription is subject to the discount
         structure shown in Table 20 based on the total number of installed
         Exchange Terminating Circuits (ETCs) in the ICO network at the start of
         the subscription year.

                   TABLE 20 - MSSC SOFTWARE DISCOUNT STRUCTURE

<TABLE>
<CAPTION>
<S>          <C>

                                        *

</TABLE>

5.2.1.6. The annual HLR software subscription is subject to the discount
         structure per HLR as shown in Table 21, based on the number of
         registered subscribers in the ICO network at the start of the
         subscription year.

         * Confidential Treatment Requested and the Redacted Material has been
           separately filed with the Commission.

                                                                   Page 30 of 35
<PAGE>   1882
                                                            Schedule 9. PSH V1.0

                   TABLE 21 - HLR SOFTWARE DISCOUNT STRUCTURE
<TABLE>
<CAPTION>
<S>          <C>

                                        *

</TABLE>

5.2.1.7  The feature, non-transparent data greater than 9.6kbit/s, will form a
         part of R9 as per the price detailed in paragraph 5.2.1.1. R9 will be
         made available for integration and testing before 31st December 2000.
         The decisions to integrate and test R9 before 31st December 2000 shall
         be at the sole discretion of ICO. NEC will be responsible for the
         testing and integration of this feature within the IGF, if ICO decides
         to proceed with the R9 implementation.

5.3      LEGAL INTERCEPTION SOFTWARE UPGRADE PRICING

5.3.1.1. The pricing per annum for subscription to the standard Legal
         Interception Software release programme for the period 1 January 2001
         until 31 December 2003 is given in Table 22. The prices below are for
         the LIAS and LIMS for the Legal Interception solution as specified in
         Change Order No. 3. Software upgrades for the MSSC/VLR are covered by
         the existing Supply Agreement.

          TABLE 22 - LEGAL INTERCEPTION SYSTEM SOFTWARE UPGRADE PRICING

<TABLE>
<CAPTION>
<S>          <C>

                                        *

</TABLE>

5.3.1.2. The above pricing is fixed for the three-year term. Subsequent pricing
         will be negotiated at the end of the three-year term. The above
         software subscription provides ICO with the right to all basic software
         upgrades for the LIAS and LIMS nodes which are made available within
         the subscription period. Software upgrades are issued approximately
         once every six months. Software upgrades include fault corrections,
         module enhancements and new features.

5.3.1.3. Please note that the above prices exclude any installation and
         materials costs which may be charged in addition.

5.4      ETC SOFTWARE UTILISATION PRICING

5.4.1.1  Due to the way in which NEC supplies ETC's by magazine/cabinet there
         will be, from time to time and from site to site, an excess of ETC's
         supplied to that required to support the traffic capacities requested
         by ICO.

5.4.1.2  Should ICO wish to increase the capacity of MSSC's where there are
         unused magazines of ETC's these may be brought into service subject to
         payment of the Software Licence fee of   *   per magazine (of 14
         ETC's) brought into service.

         * Confidential Treatment Requested and the Redacted Material has been
           separately filed with the Commission.

                                                                   Page 31 of 35
<PAGE>   1883
                                                            Schedule 9. PSH V1.0

5.5      NATURAL LANGUAGE SUPPORT

5.5.1.1  A Software Licence fee for Natural Language Support is payable
         according to a) the number of subscribers on the HLR's, and b) the
         number of ETC's in use within the SAN's.

5.5.1.2  For increases in the number of subscribers on the HLR's or number of
         ETC's in the SAN's there will be a software licence fee as given in
         Table 23.

         TABLE 23 - NATURAL LANGUAGE SUPPORT SOFTWARE EXPANSION PRICING

<TABLE>
<CAPTION>
<S>               <C>

                                        *

</TABLE>

6.       PRICING AND PROCESS FOR DEVELOPMENT OF ICO SPECIFIC FUNCTIONALITY

6.1.     INTRODUCTION

6.1.1.1. The Contractor recognises that ICO will require the on-going
         development of ICO specific functionality and agrees to develop a
         process to support ICO's continued development

6.1.1.2. The process and costs of development and integration of Future
         Requirements will be developed using the concepts as described in
         Section 6.2, 6.3, 6.4 and 6.5.

6.2.     FEASIBILITY STUDY

6.2.1.1. ICO will request the Contractor(s) to undertake a feasibility study for
         a particular element of functionality. The process that shall be
         followed is:

         i.       ICO and the Contractor(s) will hold functionality development
                  meetings on as need be basis either initiated by ICO or by the
                  Contractor., ICO will provide a forecast, short and long term,
                  of the ICO specific functionality that may be required.

         ii.      ICO will request the Contractor to provide `rough order of
                  magnitude' costs (ROM) and the development and installation
                  schedule for ICO selected functions.

6.2.1.2. The Contractor shall either:

         i.       deliver a rough order of magnitude cost, including a program
                  for the development of the functionality including the
                  detailed specification, and the program for installation and
                  integration of the functionality,

         ii.      or provide a commitment to delivering a Firm Fixed Price,
                  including development, testing and installation schedule on an
                  agreed upon schedule between ICO and contractor.

                  * Confidential Treatment Requested and the Redacted Material
                    has been separately filed with the Commission.

                                                                   Page 32 of 35
<PAGE>   1884
                                                            Schedule 9, PSH V1.0

6.3.     DELIVERY

6.3.1.1. The delivery of the additional functionality shall be completed on an
         agreed upon schedule between ICO and the contractor.

6.3.1.2. The programme for delivery shall include milestones as appropriate to
         the needs of each development and may include, but are not limited to:

         i.       design review meeting

         ii.      critical design review meeting

         iii.     test plan review

         iv.      rollout plan review

         v.       installation plan

         vi.      acceptance and handover plan

6.4.     ICO SPECIFIC FUNCTIONALITY PRICING

6.4.1.1. The Contractor shall provide ICO firm fixed price information that
         includes:

         i.       Non-recurring expenditure where appropriate

         ii.      equipment prices

         iii.     spares

         iv.      software licences

         v.       installation and testing

         vi.      project management and systems integration

         vii.     warranty

         viii.    payment schedule.

6.5.     PRICE METHODOLOGY

6.5.1.1. In order to establish the firm fixed price for ICO specific
         functionality, the price level shall be agreed in the following manner.

         i.       Normal commercial negotiations following submission of
                  technical and commercial proposals

         ii.      Price justification initially based on the prices included in
                  the Contractor's Supply Agreement and taking into
                  consideration any changes in exchange rates and agreed
                  escalation formulae

         iii.     If agreement cannot be reached on the above basis further
                  price justification will be provided based on world-wide
                  market price comparisons.

                                                                   Page 33 of 35
<PAGE>   1885
                                                            Schedule 9, PSH V1.0

         iv.      If agreement cannot be reached the Contractor will provide
                  detailed estimates of the work to be performed with
                  corresponding hardware, software and manpower costings.

                                                                   Page 34 of 35
<PAGE>   1886
                                                            Schedule 9, PSH V1.0

         New schedule to be attached.

                                                                   Page 35 of 35
<PAGE>   1887
                                                    Sch. 9, App. 4, PSH CO
                                                     Rev. 2, 3 June 1999

                                   APPENDIX 4
<PAGE>   1888
                                                   Summary of Sch 9 App 4(1).xls

Phased SAN Handover Additional Price

                                        *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

<PAGE>   1889
                                        *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   1890

WG2                                                    WG2 of Sch 9 App 4(l).xls

                                        *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

<PAGE>   1891
                                                      WG39 of Sch 9 App 4(f).xls

WG3 AND WG9

                                        *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   1892
                                                      WG39 of Sch 9 App 4(f).xls

WG3 and WG9

                                        *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

<PAGE>   1893
                                                      WG4 of Sch 9 App 4(f).x1s

WG4

                                        *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

<PAGE>   1894
                                                     WG56D of Sch 9 App 4(f).x1s

WG5, WG6 and WGD

                                        *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   1895
                                                      WG7A of Sch 9 App 4(f).x1s

WG7 and WGA

                                        *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   1896
                                                      SITG of Sch 9 App 4(f).xls

SITG

                                        *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   1897
                                  SCHEDULE 11

                                PAYMENT SCHEDULE

                                        *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   1898
                                        *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   1899
                                        *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   1900
                                        *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   1901
                                        *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   1902
                                        *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   1903
                                        *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   1904
                                        *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

<PAGE>   1905
                                        *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   1906

                                   APPENDIX 1

SCH 11, App 1 PSH V3,0 28/5/99
<PAGE>   1907
PHASED SAN HANDOVER - ENGINEERING PORTION
PAYMENT SCHEDULE

                                        *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   1908
SCHEDULE 12: CERTIFICATES

         12.1 HANDOVER CERTIFICATE FOR ACCEPTANCE SET [ ]

         12.2 ACCEPTANCE SET CERTIFICATE FOR ACCEPTANCE SET [ ]
<PAGE>   1909
SCHEDULE 12

HANDOVER CERTIFICATE FOR ACCEPTANCE SET [  ]

                                              DATE:                       2000

NEC Corporation
7-1,  Shiba 5-Chome,
Minato-ku
Tokyo 108-8001
Japan

Supply Agreement Between NEC Corporation and ICO Global Communications Holdings
BV (Contract Number ICOO/97 - 10161GW) dated 3rd March 1997

This Handover Certificate is issued to NEC Corporation (the Contractor) by ICO
Global Communications Holdings BV (ICO) to record ICO's receipt of Hardware Set
[ ] and Function Set [ ] Deliverables, comprised within Acceptance Set [ ],
which have successfully completed their Phase 3 IGF Testing , in accordance with
Annex 10 and clause 35 of the Supply Agreement. The Handover Date for such
Deliverables is                              [ICO to insert actual date
Deliverables comprised within Hardware Set [ ] and Function Set [ ] completed
Phase 3 IGF Testing]

The issue of this Handover Certificate by ICO to the Contractor does not relieve
the Contractor of its obligations to rectify the faults and temporary fixes in
the Deliverables covered by this Handover Certificate including any which are
identified in the attached schedule [and as may be identified in the relevant On
Site Phase 3 Test Data Reports] and which are to be rectified in accordance with
the times specified therein. Further, the issue of this Acceptance Certificate
does not relieve or modify the obligations and responsibilities of the
Contractor under the Supply Agreement, save as expressly set out herein.

The risk of loss and damage to the Deliverables which ICO is receiving hereunder
shall pass from the Contractor to ICO at 00.01 GMT on [date to be ascertained in
accordance with clause 36] 2000.

Supervising Officer
ICO Global Holdings BV
<PAGE>   1910
SCHEDULE 12

ACCEPTANCE SET COMPLETION CERTIFICATE FOR ACCEPTANCE SET [  ]

                                               DATE:                       2000

NEC Corporation
7-1,  Shiba 5-Chome,
Minato-ku
Tokyo 108-8001
Japan

Supply Agreement Between NEC Corporation and ICO Global Communications Holdings
BV (Contract Number ICOO/97 - 10161GW) dated 3rd March 1997

This Acceptance Set Completion Certificate is issued to NEC Corporation (the
Contractor) by ICO Global Communications Holdings BV (ICO) to record that the
Contractor has satisfied the requirements of Acceptance Set [ ], in accordance
with Annex 10 and clause 35 of the Supply Agreement. The Acceptance Set
Completion Date for such Deliverables is                              [ICO to
insert actual completion date for Acceptance Set [ ]

The issue of this Acceptance Set Completion Certificate by ICO to the Contractor
does not relieve the Contractor of its obligations to rectify the faults and
temporary fixes in the Deliverables covered by this Certificate, including any
which are identified in the attached schedule [and as may be identified in the
relevant Integration Effort Test Report] and which are to be rectified in
accordance with the times specified therein. Further, the issue of this
Certificate does not relieve or modify the obligations and responsibilities of
the Contractor under the Supply Agreement, save as expressly set out herein.

Supervising Officer
ICO Global Holdings BV
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                        CONTRACT NUMBER: ICO0 97-1016/GW

                                 MARCH      1997

                                SUPPLY AGREEMENT

                                     BETWEEN

                                 NEC CORPORATION

                                       AND

                      ICO GLOBAL COMMUNICATIONS HOLDINGS BV
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                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
CLAUSE                                                                     PAGE

<S>                                                                       <C>
A      INTERPRETATION                                                        5
1      Definitions and Interpretation                                        5
2      Scope of Agreement                                                    6
3      Precedence and Interpretation                                         6

B      PRIMARY OBLIGATIONS                                                   6
4      Primary Obligations Of The Contractor And Warranties                  6
5      Contractor to Inform Itself Fully                                     9
6      Standard of the Works                                                10
7      Uniform Standards                                                    10
8      Unilateral Changes                                                   11
9      Change Control                                                       12
10     [Not used]                                                           13
11     Contractor's Ability to Appoint and Liability for Sub-Contractors    13
12     ICO Obligations                                                      14
13     Quality Assurance                                                    15
14     ICONET Integration                                                   16

C      PRICE AND PAYMENT                                                    21
15     Price                                                                21
16     Payment and Payment Terms                                            23
17     Payment of Reimbursable Costs                                        27
18     Liquidated Damages                                                   27

D      PROGRESS REPORTING                                                   28
19     Milestones and Progress Reporting                                    28
20     [Not used]                                                           29
21     [Not used]                                                           29
22     Progress Inspection                                                  29
23     Intermediate Progress Review                                         29
24     [Not used]                                                           30

E      DELIVERY AND INSTALLATION                                            30
25     Site Access                                                          30
26     Transportation to Site                                               30
27     Packaging                                                            31
28     Customs Clearance                                                    31
29     Insurance                                                            33
30     Ownership                                                            33
31     Delivery                                                             34
32     Installation                                                         34
33     Testing                                                              35
34     RFT Handover                                                         35
</TABLE>
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<TABLE>

<S>                                                                       <C>
35     Acceptance                                                           37
36     Risk                                                                 37
37     Interchangeability                                                   37
38     Delivery Delays                                                      38
39     [Not used]                                                           38
40     Warranty                                                             38

F      INTELLECTUAL PROPERTY RIGHTS                                         44
41     Intellectual Property Rights and Confidentiality                     44
42     [Not used]                                                           49
43     [Not used]                                                           49

G      CONTINUOUS SUPPORT AND OPTIONS                                       50
44     Manuals and Technical Diagrams                                       50
45     Training                                                             50
46     Options, Support Services and Future Supplies                        50
47     Consumable Supplies                                                  52
48     Attachments to Equipment and Software                                52
49     [Not used]                                                           53

H      GENERAL                                                              53
50     Survival of Certain Provisions                                       53
51     Contractor's Liability for Damages or Breach                         53
52     ICO's Liability for Damages or Breach                                54
53     Ethical Standards                                                    55
54     Consequences of Termination                                          55
55     Force Majeure                                                        60
56     Termination                                                          60
57     Waiver                                                               62
58     Amendments                                                           62
59     Communication and Notices                                            62
60     Publicity                                                            65
61     Information Recording                                                65
62     Law and Jurisdiction                                                 65
63     Change of Law                                                        65
64     Export Control Regulation                                            66
65     Disputes Resolution Procedure                                        66
66     Agent for Service                                                    67
67     Supervising Officer and
       Contractor's Authorised Representative                               67
68     No Partnership                                                       67
69     Successors                                                           67
70     Assignment                                                           67
71     Language                                                             68
72     Entire Agreement                                                     68
73     Severability                                                         68
74     Costs                                                                68
75     Counterparts                                                         68
</TABLE>
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SCHEDULES
<TABLE>
<S>                                                                 <C>
1       Definitions                                                   70
2       Precedence of Documents                                       76
3       Dispute Resolution Procedure                                  77
4       Agreed Form Invoices
5       [Not used]
6       Key Features
7       Top Level Milestones
8       Identification of Sites Not Inspected by the Contractor
9       Pricing Schedule
10      Vendor Financing Summary
11      Payment Schedule
12      Final Acceptance Certificate
13      IGFR
14      Statement of Work
</TABLE>
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THIS SUPPLY AGREEMENT is made on                    1997

BETWEEN

1.       ICO GLOBAL COMMUNICATIONS HOLDINGS BV, INCORPORATED IN THE NETHERLANDS
         WITH ITS REGISTERED OFFICE AT DRENTESTRAAT 20, 1083 HK, AMSTERDAM,
         NETHERLANDS ("ICO"); and

2.       NEC CORPORATION, incorporated in Japan, with its head office at 7-1,
         Shiba 5-Chome, Minato-ku, Tokyo 108-8001, Japan (the "Contractor").

WHEREAS

1.       ICO is establishing a global mobile satellite telecommunications
         network and wishes to appoint the Contractor, working with the other
         members of the NEC Team, to provide the systems and services for use in
         the ICONET Ground Facilities which, when operating in conjunction with
         the other properly functioning parts of the ICO System, will support
         (in the absence of the Excluded Circumstances) the full range of end to
         end services to the extent set out in this Agreement.

2.       The Contractor is the leader of a team comprising itself, Hughes
         Network Systems, Inc. and Ericsson Limited which is willing to commit
         the resources required to perform successfully the tasks set out in
         this Agreement and, if so required by ICO and on terms to be agreed
         between the parties, has confirmed its willingness to assist ICO in
         solving problems with elements of the ICO System other than the ICONET
         Ground Facilities by making modifications to the ICONET Ground
         Facilities so as to enable ICO to realise the desired functionality of
         a fully functioning ICO System.

3.       The Contractor (as leader of the NEC Team) and ICO entered into an
         Initial Phase Contract on 5 July 1996 (the "IPC"). The NEC Team have
         delivered to ICO certain of the materials required under Annex 8 of the
         IPC.

4.       The parties are entering into this Agreement under which the Contractor
         will be responsible, inter alia, for the design, manufacture,
         construction, delivery, installation, integration and testing of the
         ICONET Ground Facilities together with the demonstration of the
         functioning of the ICO System as a whole, all as set out in this
         Agreement.

5.       This Agreement also contains options for ICO to request the
         manufacture, construction, delivery, installation, integration and
         testing of additional equipment, facilities and software together with
         such additional services as will enable ICO to update, expand and
         enhance the ICONET Ground Facilities, all at additional cost to ICO on
         a price basis which has been established.

6.       ICO Global Communications (Holdings) Limited has agreed by separate
         letter to support the financial obligations of ICO under this
         Agreement.

NOW IT IS AGREED AS FOLLOWS:

PART A - INTERPRETATION

1        DEFINITIONS AND INTERPRETATION

1.1      The words and expressions set out in Schedule 1 shall, when used in
this Agreement including its schedules, annexes and attachments, unless the
contrary intention appears, have the

                                       5
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meanings set against them in Schedule 1. Any acronyms which are not defined in
Schedule 1 shall have the meaning ascribed to them in section 2 of the IGFR.

1.2      Except where the context otherwise requires, the masculine gender shall
include the feminine and neuter and the singular shall include the plural and
vice versa and references to persons shall include bodies corporate and
incorporate. References to a party to this Agreement shall include the permitted
successors and assigns of such party.

1.3      The clause and schedule headings and any table of contents are for
convenience of reference only and shall not be taken into account in construing
this Agreement.

1.4      Subject to clause 3, references in this Agreement to clauses, sub
clauses, schedules and annexes are to clauses, sub clauses, schedules and
annexes of this Agreement and the schedules and annexes form part of this
Agreement and shall have the same force and effect as if expressly set out in
the body of this Agreement.

2        SCOPE OF AGREEMENT

2.1      Subject to the provisions of Clause 2.2, below, the Contractor's
         acceptance of this Agreement shall be confirmation that the NEC Team
         has reviewed and fully understands the IGFR and the Statement of Work
         and the Contractor confirms that the Works will be undertaken on the
         basis of this Agreement. The Contractor also agrees that it is
         responsible for the definition, management and execution by the NEC
         Team of all tasks necessary to fulfil the IGFR.

2.2      The SAN to be located in China (China San) remains a part of the ICONET
         Ground Facilities and the Supply Agreement. As at the date of this
         Change Order, the Ready For Access date for the China SAN has yet to be
         confirmed by ICO to the Contractor and the parties acknowledge and
         agree, therefore, that all planning, scheduling and implementation
         activities and responsibilities of, or concerning, the China SAN under
         the Supply Agreement shall be defined and regulated within the terms of
         a separate Change Order to be agreed by the parties. Pending execution
         of such Change Order all references herein concerning the timing and
         schedule of the ICONET Ground Facilities shall be deemed to exclude the
         China SAN.

3        PRECEDENCE AND INTERPRETATION

3.1      In the event of any conflict between the main body of this Agreement
and any document referred to herein, then the wording of the main body of this
Agreement shall prevail.

3.2      Clause 3.1 shall not apply to any document relating to the proposed
Vendor Financing referred to in Schedule 10.

3.3      ICO and the Contractor acknowledge the hierarchical nature of the
documents as set out in Schedule 2.

                                       6
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PART B - PRIMARY OBLIGATIONS

4        PRIMARY OBLIGATIONS OF THE CONTRACTOR AND WARRANTIES

4.1      The Contractor warrants and undertakes that:

         (a)      it will, no later than the Acceptance Set 4 Completion Date
                  provide to ICO the functionalities described in the IGFR
                  across the complete ICONET Ground Facilities; except in
                  respect of those functions as described as Function Set 5 in
                  Annex 1 of the Statement of Work which shall be provided to
                  ICO no later than the Acceptance Set 5 Completion Date and the
                  China SAN which is addressed in Clause 2.2

         (b)      it will design, develop, create, deliver, install and provide
                  (as the case may be) all of the Deliverables (including those
                  which have at the date of this Agreement been specified by the
                  Contractor) necessary for the ICONET Ground Facilities so as
                  to fulfil the functional objectives and the requirements of
                  the IGFR and the Statement of Work;

         (c)      the Works comprising the ICONET Ground Facilities will be
                  carried out and delivered in accordance with and to the
                  standards stipulated in the IGFR and the Statement of Work;

         (d)      it will complete the Works which are scheduled to be completed
                  by the RFT Availability Dates and date of completion testing
                  of Function Set 5 to Acceptance Criteria 5 as set out in Annex
                  10, on or before Acceptance Set 5 Completion Date and those
                  Works which are scheduled to be completed after Acceptance Set
                  5 Completion Date by the relevant dates specified in the
                  Master Level Schedule;

         (e)      it will provide all the documentation, services and
                  Deliverables by the times specified in the Top Level Milestone
                  Schedule generally, and will ensure that the progress of the
                  development, delivery and installation of each of the
                  Deliverables will be achieved in accordance with the Top Level
                  Milestones set out in the Top Level Milestone Schedule and
                  that the requirements set out in the Statement of Work will,
                  (except where otherwise agreed) be delivered no later than
                  Acceptance Set 5 Completion Date;

         (f)      the ICONET Ground Facilities will fully support the
                  requirements of the IGFR and in particular the end-to-end
                  services described in Section 4 of the IGFR except where
                  marked "Option" or "F/R" (unless such "Option" has been
                  exercised or the "F/R" item has subsequently been made a
                  Deliverable pursuant to a Change Order, in which event such
                  items shall be deemed to have been a service included in the
                  IGFR) except where, and to the extent that, the Excluded
                  Circumstances prevent the ICONET Ground Facilities from doing
                  so in which case the Contractor shall to the maximum

                                       7
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                  extent feasible make such modifications to the ICONET Ground
                  Facilities as are required fully to support the requirements
                  of the IGFR and such end-to-end services in accordance with
                  clause 4.10;

         (g)      without prejudice to clause 41, the Deliverables may lawfully
                  be used for the purposes of the ICONET Ground Facilities in
                  accordance with laws and regulations in force as at the date
                  hereof in each of the countries where the Sites are located;

         (h)      any Deliverables which are or shall be specified by the
                  Contractor for the purposes of this Agreement may, on the date
                  when the obligation to supply first arises or, if later, the
                  date on which the Contractor specifies the same, lawfully be
                  used for the purposes of the ICONET Ground Facilities in
                  accordance with laws and regulations in force as at such date
                  in each of the countries where the Sites are located;

                  Provided that for the purposes of clause 4.1(h), where any
                  specific piece of equipment or component has been or is
                  specified as a Deliverable and the same is not available at
                  the time it is required, the Contractor shall, having given
                  written notice to the Supervising Officer, be permitted to
                  substitute a reasonable alternative piece of equipment or
                  component so long as this has no adverse effect on the quality
                  or functionality of the relevant Deliverable and so long as
                  ICO shall not, within 21 days of receipt of the Contractor's
                  notice, have notified the Contractor in writing that it
                  objects to the proposed substitution, and ICO undertakes that
                  it will not exercise such right of objection unreasonably;

         (i)      the ICONET Ground Facilities shall be designed in such a way
                  as to facilitate updates, additional functionalities or
                  enhancements to them in the future and that it will, as set
                  out in this Agreement, provide or procure the provision of
                  such updates, additional functionalities, or enhancements to
                  the ICONET Ground Facilities;

         (j)      at all times the Contractor and all its Sub-Contractors will
                  provide their services in a workmanlike and professional
                  manner and exercise reasonable skill and care;

         (k)      it will ensure that all of the Deliverables supplied are
                  suitable for the purposes for which they are supplied and for
                  use at the intended place of operation and are of a standard
                  satisfactory to enable them to fulfil the requirements set out
                  in this Agreement;

         (l)      it will provide, and will ensure that its Sub-Contractors
                  provide, a sufficient number of suitably skilled and
                  appropriately experienced personnel to meet the objectives of
                  this Agreement and to ensure that delivery, installation and
                  testing of the Deliverables at each of the Sites is completed
                  by the Acceptance Set 4 Completion Date and that equivalent
                  personnel are available for the development, testing and
                  support for the installation of Acceptance Set 5.

         (m)      it will work in a constructive manner with ICO Staff and the
                  Site Operators to the extent necessary for the effective
                  performance of the Works; and

         (n)      each of the Deliverables and each item of the Equipment,
                  Software or other equipment which is or shall be specified for
                  the purposes of the ICONET Ground Facilities will be available
                  for use or incorporation into the ICONET Ground Facilities by
                  ICO and, with the exception of those Deliverables which ICO
                  has committed to purchase at the date of this Agreement
                  (including those where the price and scope are fixed at the
                  date of this Agreement), that the same will be provided by the
                  Contractor at a reasonable cost and on reasonable terms

                                       8
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4.2      If the Contractor becomes aware of any internal inconsistencies in or
between the IGFR or the Statement of Work, or any incompleteness or lack of
sufficient detail in the IGFR or the Statement of Work, then the Contractor
shall immediately notify ICO of the same in writing and promptly thereafter
inform ICO of the measures which it proposes to take in order to make the same
consistent, complete or sufficiently detailed and the Contractor undertakes to
procure that any details or means or measures which the Contractor notifies to
ICO under this clause 4.2 will, if agreed to by ICO, not result in any of the
warranties or undertakings in this clause 4 ceasing to be correct or met.

4.3      If ICO does not consider that any matter proposed to it under clause
4.2 is either satisfactory or appropriate, ICO shall promptly notify the
Contractor of this in writing and the Contractor shall then promptly notify ICO
of a reasonable alternative.

4.4      Any variation to the IGFR or the Statement of Work to which ICO agrees
under the terms of clause 4.2 or 4.3 shall be recorded in accordance with clause
58.

4.5      The Contractor undertakes that to the best of its knowledge,
information and belief it is not, at the date hereof, aware of anything in the
IGFR or the Statement of Work which is likely to result in any of the Top Level
Milestones not being met or which will affect the likelihood of its ability to
satisfy all of the functionalities of the IGFR or to deliver all of the ICONET
Ground Facilities which in either case the Contractor is agreeing under this
Agreement to fulfil or deliver by the Acceptance Set 5 Completion Date.

4.6      Where the Contractor shall be in breach of any aspect of any of the
warranties and undertakings set out in clauses 4 or 40 or any of its other
obligations relating to the provision of the ICONET Ground Facilities, the
Contractor shall be responsible, at its own cost   *   , for redesigning the
relevant aspect of and making any modifications to the ICONET Ground Facilities
required to remedy any such breach and for procuring the provision of a suitable
alternative to such Deliverables for ICO having functionality which is no less
than that which was specified in the IGFR and/or the Statement of Work. The
Contractor shall carry out such work, and procure that its Sub-Contractors carry
out such work, expeditiously and use its best endeavours to ensure that the
impact of such breach is minimised, especially as the same affects the time
schedule for the implementation of service through the ICO System.

4.7      The warranties set out in this clause shall be deemed repeated on the
first day of each calendar quarter by reference to such date and the facts and
circumstances then in existence, save that in the case of the warranties
contained in clauses 4.1 (g) and (h), with the addition at the beginning thereof
of a qualification "save as has been notified in accordance with clause 63.3,".

4.8      If the Contractor or any Sub-Contractor makes a statement or provides
ICO with information, ICO, acting by the Supervising Officer, shall be entitled
by a written notice to the Contractor to require that the Contractor confirms
the accuracy of such statement or information. Such notice shall refer to this
clause 4.8 and, wherever possible, identify where and when the statement was
made and the person who made the statement which ICO wishes the Contractor to
confirm. The Contractor shall, acting by the Contractor's Authorised
Representative, within fourteen days of ICO's notice (or in any case where ICO
shall have identified that confirmation of such statement is a matter of extreme
commercial urgency, by return) either confirm the accuracy of such statement or
information, or where the same is incorrect or inaccurate, shall provide a
qualified, corrected or accurate statement addressing the relevant
subject-matter in sufficient detail to enable ICO to obtain a proper
understanding of the position (any such statement or information so confirmed or
deemed confirmed and any qualified, corrected statement or information being
referred to in this clause 4.8 as a "Representation"). If the Contractor does
not give a substantive reply to ICO's request within the

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

                                       9
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relevant timescale as set out in this clause, the Contractor shall be deemed to
have confirmed such Representation. The Contractor shall be deemed to warrant
the accuracy of each Representation and ICO shall be entitled to rely for all
the purposes of this Agreement (and in particular for the purposes of
determining its course of action) upon the accuracy of any Representation.

4.9      Without prejudice to any rights which ICO may have as are provided for
pursuant to the terms of this Agreement, the Contractor gives no warranties
other than as are set out in this Agreement, whether, express, implied or
statutory, on or with respect to the goods and services to be provided
hereunder.

4.10     Where, and to the extent that, the Excluded Circumstances prevent the
ICONET Ground Facilities from fully supporting the requirements of the IGFR and
the end-to-end services referred to in clause 4.1(f), the Contractor shall to
the maximum extent feasible make such modifications to the ICONET Ground
Facilities as are required fully to support such requirements and such
end-to-end services on terms to be agreed between the parties.

4.11     ICO shall not be entitled to bring a claim in respect of either any
breach of any of the warranties set out in clause 4.1 nor for any breach of the
undertakings set out in clause 6.1 unless ICO shall have notified the Contractor
thereof in writing within six years following the ACCEPTANCE SET 5 Completion
Date except:

       (a)        where the claim arises from a breach of any of such warranties
                  relating to Further Works and/or Further Deliverables, in
                  which event such claim may be brought only if ICO shall have
                  notified the Contractor thereof in writing within six years
                  following the Handover Date of the relevant Deliverable or the
                  date of completion of the relevant Works; or

       (b)        where the claim arises as a consequence of any Further Works
                  and/or Further Deliverables which adversely affect any of the
                  Deliverables delivered or Works completed before the Handover
                  Date or date of completion of such Further Works, in which
                  event such claim may be brought only if ICO shall have
                  notified the Contractor thereof in writing within six years
                  following the Handover Date of the relevant Further
                  Deliverable or the date of completion of the Further Works
                  which have caused such adverse effect,

provided that in any of the foregoing circumstances, if the event giving rise to
the claim for breach of warranty shall occur less than 12 months prior to the
last day of any such six year period, in respect of that claim only, the period
for notification of the claim shall be extended to end 12 months after the date
of the relevant event.

4.12     Any claim made by ICO for breach of warranty under clause 4 or for
breach of undertaking under clause 6.1 shall be deemed withdrawn, and the breach
(if any) shall be deemed to have been irrevocably waived by ICO, unless
proceedings in respect of such claim shall have been issued and served by ICO on
the Contractor within twelve months of such claim being notified by ICO to the
Contractor.

5.       CONTRACTOR TO INFORM ITSELF FULLY

5.1      The Contractor shall be deemed to have examined all the Sites (other
than those Sites specifically identified in Schedule 8 as not having been
examined as of the date of this Agreement). No claim from the Contractor for
additional payment will be allowed on the grounds of misinterpretation of any
matter relating to those Sites which have been examined, unless ICO shall make
any material change (other than in response to, or as may be made to meet, any
of the requirements of the

                                       10
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Contractor) to the relative positioning of the RFTs and the main hub building
located at any such Site from those as shown by the latest plans of such Sites
provided by ICO to the Contractor prior to the date of this Agreement. This
clause 5.1 shall not affect ICO's obligations under clause 12.3.

5.2      ICO and the Contractor acknowledge that as at the date hereof the
locations of certain intended Sites are not yet determined by ICO and that
forthwith after the location of such Sites has been determined by ICO, ICO shall
inform the Contractor of such location(s) and provide equivalent information to
that provided in respect of the other Sites previously specifically identified
and arrange for the Contractor to have the opportunity to examine such Sites. To
the extent that any Site specific conditions or requirements could not
reasonably have been anticipated by the Contractor at any of such Sites, clause
9 shall apply.

6.       STANDARD OF THE WORKS

6.1      To the extent that the standard of the Works has not been specified in
this Agreement, the Contractor shall use good quality materials, techniques and
standards, and shall procure that the Works are at all times carried out:

                  (a) in an efficient, effective and safe manner and in
                  accordance with Good Industry Practice;

                  (b) in a way which is not likely to be injurious to health or
                  cause damage to property;

                  (c) in compliance with all relevant construction,
                  environmental or other regulations of any kind which relate to
                  the Works to be carried out on each Site; and

                  (d) without prejudice to paragraph (c) but subject always to
                  the provisions of clause 7, so far as relates to any of the
                  Deliverables, to a single standard which shall in a uniform
                  manner satisfy all of the qualifications and requirements
                  which are applicable in each of the countries, and/or any
                  other relevant regulatory requirements of any of the
                  countries, in which any of the Sites is located unless the
                  compliance with such uniform standard would, in any particular
                  country, conflict with the mandatory requirements in such
                  country in which event the latter standard shall prevail in
                  that country,

provided that in the event that any new regulation, qualification or requirement
which relates to the Works as described in paragraph (c) or (d) above shall be
issued and come into effect after the date hereof and compliance with such
regulation, qualification or requirement results in an obligation to introduce a
more onerous standard for the relevant Deliverable which as a consequence causes
an increase in the costs of the Contractor, clause 9 shall apply.

6.2      ICO may, notwithstanding the foregoing provisions of this clause 6,
advise the Contractor that ICO does not require the Contractor to produce all or
any of the Deliverables or any aspect of them to any particular standard which
may be called for under clause 6.1(d) in relation to all or any of the Sites.
Any such notification shall not relieve the Contractor from the requirements of
clause 4.1.

7.       UNIFORM STANDARDS

7.1      If the Contractor shall reasonably consider that the provisions of
clause 6.1(d) shall impose a standard in relation to any particular Site which
is significantly more onerous than that imposed in relation to any other Site
and where compliance with such standard at the other Sites would not offer any
material benefits to ICO, the Contractor may by notice in writing request that
ICO waives compliance with such standard at those Sites at which such standard
is not a mandatory requirement.

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At the date of this Agreement the only such instance identified by the
Contractor which has been notified to ICO is the requirement in Germany for
certain emission control which it has been agreed may be satisfied by an
additional shielding box around the relevant equipment.

7.2      ICO shall consider any request made by the Contractor as referred to in
clause 7.1 in good faith and may at its discretion waive any particular
requirement in whole or in part and ICO may have regard in particular to the
anticipated consequences for its ability to use Spares of common design or
functionality at any of the Sites if the Deliverables are to be produced to
differing standards.

7.3      If ICO shall in any particular instance waive such a requirement as
shall be referred to in clause 7.1 and subsequently the standards shall change
in any other country to introduce a more onerous standard for the relevant
Deliverable which, as a consequence, causes an increase in the costs of the
Contractor, then to the extent that such revised standard is the same as or no
more onerous than that applicable at the Site referred to in clause 7.1, the
Contractor shall not be entitled to a cost adjustment as referred to in the
proviso to clause 6.1.

8        UNILATERAL CHANGES

8.1      ICO, acting by the Supervising Officer, may unilaterally at any time by
written notice to the Contractor make changes to the IGFR and/or the Statement
of Work in any one or more of the following:

         (a)      method of shipment or packing; and

         (b)      other than in the circumstances referred to in clause 63, the
                  time or the place of inspection or delivery of the
                  Deliverables or Works to be provided under this Agreement;

provided that ICO shall endeavour to avoid unreasonable or impractical changes.

8.2      If any such change in clause 8.1 affects the cost of, or the time
required for, performance of any part of this Agreement, an equitable adjustment
shall be agreed to all or any of the Price (including, for the avoidance of
doubt, a reduction in the Price), the Top Level Milestone Schedule, the payment
terms, the IGFR and/or the Statement of Work (as the case may be). If necessary,
the relevant clause(s) in this Agreement shall also be amended in accordance
with clause 58.

8.3      The Contractor shall notify ICO in writing within thirty days from the
date of ICO's written notification of the required change if it considers that
an equitable adjustment under clause 8.2 should be made.

8.4      Where any materials or services are made obsolete or excess or cannot
be used as a result of a change pursuant to clause 8.1, ICO shall have the right
to prescribe the manner of disposal of such materials or services and the
Contractor shall account to ICO accordingly for any net proceeds realised as a
consequence of the disposal (howsoever achieved) of such materials or services.
If the Contractor is unable to dispose of such materials or services in the
manner prescribed by ICO within a reasonable period (to be determined by
reference to the particular materials or services and the circumstances) in
spite of the Contractor's commercially reasonable efforts, the Contractor shall
be free to dispose of such materials or services using the best method available
with a view to maximising ICO's receipts in respect thereof.

Any such proceeds realised by the Contractor shall be accounted for to ICO in
cash within 30 days of receipt by the Contractor on a separate invoice basis.
Clause 17.5 shall be applicable to any such payment due to ICO. Subject to such
payment being made in accordance with this clause 8.4, no deduction from any
payment due from ICO to the Contractor pursuant to clause 16 shall be made on

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account of the same. For the avoidance of doubt, any change under clause 8.1
shall not, except as specified in clause 8.2, affect any obligation of ICO to
the Contractor under clause 15.

8.5      Notwithstanding that ICO and the Contractor may not have agreed upon an
appropriate equitable adjustment under clause 8.2, the Contractor shall
implement the relevant change(s) required by ICO under clause 8.1 without delay.

8.6      For the purpose of this clause 8, any communication between the parties
shall be enforceable and binding upon the parties only if signed by the
Supervising Officer and the Contractor's Authorised Representative.

9        CHANGE CONTROL

9.1      Either party may at any time formally request in writing changes or
additions to this Agreement, the IGFR or the Statement of Work (in this clause
9, a "change"). The procedures set out in this clause 9 shall apply to any such
change whether it is ICO or the Contractor which shall propose the same. For the
avoidance of doubt, these procedures shall not apply where clause 8 applies.

9.2      If ICO shall propose a change to the scope of this Agreement or the
IGFR or the Statement of Work (other than those set out in clause 8), it shall
notify the Contractor thereof in writing specifying in as much detail as ICO
believes is practicable the nature of the relevant change including any
parameters which ICO considers desirable. Such a notice will only be effective
if signed by the Supervising Officer.

9.3      The Contractor shall respond promptly and in any event not more than 28
days after receiving notification from ICO under clause 9.2 (or as soon as
possible thereafter if the Contractor shall show a longer period is reasonably
required for such purpose) and state:

         (a)      any information known by any member of the NEC Team or any
                  relevant Sub-Contractor relating to the implications of such
                  change and the work required to be performed by the NEC Team
                  or any relevant Sub-Contractor; and

         (b)      any other information known by any member of the NEC Team or
                  any relevant Sub-Contractor which is likely to be material to
                  ICO's decision to pursue such addition or change or which ICO
                  reasonably requests for such purposes; and

         (c)      the estimated cost and time required to prepare a Detailed
                  Report as defined in clause 9.5.

9.4      If any member of the NEC Team or any relevant Sub-Contractor shall
consider that a change or addition to the IGFR and/or the Statement of Work is
in the interests of ICO and should be considered by ICO, the Contractor shall
notify ICO of such proposal in writing. Such notification shall specify in as
much detail as is practicable the nature of the change or addition that is being
proposed for ICO's consideration and shall state all information known by any
member of the NEC Team or any Sub-Contractor and any information (including but
not limited to the implications of any such change on the work required to be
performed by any member of the NEC Team or any relevant Sub-Contractor) which
ICO might reasonably consider to be material to its decision whether or not to
ask the Contractor to pursue such addition or change.

9.5      Following receipt of information under clauses 9.3 or 9.4, ICO shall
within a reasonable period give notice to the Contractor in writing whether or
not it wishes to consider the matter further whereupon the Contractor shall
provide promptly and in any event within not more than 90 days after the date of
such notice (or as soon as possible thereafter if the Contractor shall show a
longer period is reasonably required for such purpose) a detailed report to ICO
on the technical feasibility of such

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change or addition to the IGFR and/or the Statement of Work and all
consequential changes and effects for and upon the ICONET Ground Facilities or
the ICO System as a whole (including the timetable and cost structure) which can
reasonably be anticipated to flow therefrom (the "Detailed Report").

If such Detailed Report is prepared as a result of a request made under clause
9.2, the Contractor shall be entitled to claim and receive a reasonable cost to
be agreed in advance with ICO for the preparation of such Detailed Report.

If such Detailed Report is prepared as a result of a request in response to a
proposal made pursuant to clause 9.4, the Contractor shall as a general
principle not be entitled to claim or receive any costs for the preparation of
the Detailed Report, though ICO recognises that the complexities of the relevant
circumstances may be such that an equitable cost sharing would be appropriate

9.6      The Detailed Report shall contain in addition to the information
supplied under clause 9.5:

         (a)      a full description of the work proposed to be performed;

         (b)      a firm fixed price;

         (c)      a schedule for the implementation of the work including the
                  effect (if any) upon the Master Level Schedule; and

         (d)      the required modifications to the IGFR and/or the Statement of
                  Work and (if any) to this Agreement in order to effect the
                  change.

9.7      ICO shall consider such Detailed Report referred to in clause 9.5 and
shall promptly and in any event within not more than 60 days after the date of
receipt of such Detailed Report (or as soon as possible thereafter if ICO shall
show a longer period is reasonably required for such purpose) request such
further information from the Contractor as ICO may reasonably require in
connection with the proposals and/or request the Contractor to make
modifications to the proposals contained in such Detailed Report as ICO may
reasonably require.

The Contractor shall promptly thereafter supply such information to ICO and/or
make such modifications as the Contractor considers appropriate.

9.8      If ICO considers that the proposed changes should be made, ICO shall so
notify the Contractor in writing and, following agreement by the parties as to
any required changes to this Agreement including any consequential changes in
all or any of the Price (including, for the avoidance of doubt, a reduction in
the Price), the Top Level Milestone Schedule, the payment terms, the IGFR and/or
the Statement of Work (as the case may be), the parties shall then record such
agreement in writing (a "Change Order").

9.9      For the purpose of this clause 9, any communication between the parties
and any Change Order shall be enforceable and binding upon the parties only if
signed by the Supervising Officer and the Contractor's Authorised
Representative.

[10]     Not used

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11       CONTRACTOR'S ABILITY TO APPOINT AND LIABILITY FOR SUB-CONTRACTORS

11.1     The Contractor will ensure that the Works are carried out in such a
manner as will fulfil the IGFR and the Statement of Work as amended from time to
time in accordance with the terms of this Agreement using the other members of
the NEC Team as the Principal Sub-Contractors to carry out the Works. In
accordance with the terms of this clause, the Contractor and its Sub-Contractors
may sub-contract such elements of the Works as they consider to be appropriate
but the Contractor shall remain fully responsible for the performance of this
Agreement, the preparation and delivery of the Deliverables and the completion
of the Works which are scheduled to be completed by the relevant Top Level
Milestones notwithstanding any default or failure to perform by any
Sub-Contractors.

11.2     Before any Sub-Contractor is appointed (whether directly by the
Contractor or indirectly by any other person who is a sub-contractor) to carry
out any part of the Works (other than the supply of commodity or stock items
which does not involve the disclosure to such Sub-Contractor of Confidential
Information of or relating to ICO or any aspect of the ICO System), the
Contractor shall notify ICO in writing of the name and intended scope of work of
each sub-contractor proposed to be engaged to carry out any Works. ICO may, on
reasonable grounds, reject any proposed sub-contractor (but shall not be
required to set out in detail its reasons for any such rejection) and any such
rejection shall not give the Contractor the right for any claim for delay in the
Master Level Schedule. If ICO does not notify the Contractor of its rejection of
a proposed sub-contractor within 15 days (or such longer period as the parties
may agree) of receipt of the Contractor's notice of intention to engage such
proposed sub-contractor (together with the scope of work referred to above), the
proposed sub-contracting arrangement may, subject to clause 11.3, be entered
into.

11.3     Prior to concluding any sub-contracting arrangements as referred to in
clauses 11.1 and 11.2 the Contractor shall, unless ICO otherwise specifically
requires, submit the following:

                  (a) a detailed statement of the works to be sub-contracted, if
                  this should vary materially from that supplied under clause
                  11.2; and

                  (b) satisfactory directly enforceable confidentiality and
                  other undertakings between the prospective Sub-Contractor and
                  ICO in a reasonable form provided by ICO within 30 days of the
                  date of this Agreement.

11.4     If ICO reasonably requests the Contractor to procure the change of any
personnel allocated by the Contractor or any Sub-Contractor to work in
connection with the provision of the Deliverables, then the Contractor shall
ensure that such personnel cease to be actively engaged in any Works.

The Contractor shall ensure that, when on the premises of ICO, any of its agents
or sub-contractors or the Site Operators, the personnel of the Contractor and
its Sub-Contractors comply with any rules and regulations which are applicable
generally to staff or visitors on such premises.

11.5     In performing its obligations under or in connection with this
Agreement (other than as provided in the Statement of Work as at the date of
this Agreement) the Contractor shall, and shall procure that Sub-Contractors
shall, use its/their best endeavours to ensure that it does/they do not:

         (a)      create or impose any requirements in relation to the Works
                  which are incapable of being fulfilled at reasonable cost by
                  any third parties; and/or

         (b)      develop its/their own components if satisfactory components
                  are available from any third parties at a lower cost,

unless such requirements or development can be justified on an objective basis.

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11.6     The Contractor will, and will ensure that the Sub-Contractors will,
provide work space to a standard commensurate with efficient work practices for
any ICO Staff whose attendance at the Contractor's or such Sub-Contractor's
places of work as is needed to advise or test or otherwise participate in the
achievement of the terms of this Agreement.

12       ICO OBLIGATIONS

12.1     Without prejudice to ICO's other obligations under this Agreement, ICO
shall provide the Contractor with such information, services and equipment as
specified in the Statement of Work. ICO shall also provide to the Contractor
access to SANs and/or NMCs in accordance with Section 4.1.5 of Annex 7B of the
Statement of Work. In the event that ICO shall fail to provide such access, the
procedures and processes described in Section 4.1.6 of Annex 7B shall be
applied. To the extent that ICO's failure in any material respect to, otherwise,
comply with its obligations under this clause 12.1 shall adversely and directly
affect the ability of the Contractor to comply with the Top Level Milestone
Schedule and any applicable Top Level Milestones, to the extent the Contractor
can demonstrate the same to be required, the Top Level Milestone Schedule and
Top Level Milestones shall be adjusted in an equitable manner.

12.2     ICO shall be responsible for securing any applicable official operating
licenses or authorisations required by central government authorities relating
to the civil works at the Sites, and for the operation or testing, of the ICONET
Ground Facilities or any part of the ICO System (excluding any equipment
certifications), and ICO shall pay any necessary taxes or licence fees imposed
as a condition for obtaining the same and use its reasonable endeavours to
ensure that the Contractor will not be materially delayed in fulfilling any of
its responsibilities hereunder.

12.3     Subject to clause 25.2, ICO shall ensure that such preparations and
provisions are made at each of the Sites to meet the requirements specified in
Annex 3 of the Statement of Work. If such preparations and provisions are
inadequately carried out by ICO, other than by reason of such preparations and
provisions having been inadequately or incorrectly specified by the Contractor,
then any reasonable costs thereby incurred by the Contractor shall be
reimbursable in accordance with clause 17 to the Contractor and, to the extent
that it can demonstrate the same to be required, the Top Level Milestone
Schedule and Top Level Milestones shall be adjusted in an equitable manner. In
any other case the Contractor shall be responsible for carrying out, and for all
costs and expenses incurred in carrying out, any works required to correct
and/or supplement any inadequate or incorrect specifications and the Contractor
shall not be entitled to any adjustment in the Top Level Milestone Schedule.

12.4     In order to assist the Contractor in its Site installation activities
ICO shall, upon the request of the Contractor, provide reasonable assistance to
the Contractor in the co-ordination of the Contractor's activities with those of
the Site Operators and other ICO Staff.

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13       QUALITY ASSURANCE

13.1     The Contractor shall operate a system of quality management and control
which satisfies the requirements set out in Annex 4 of the Statement of Work.

13.2     The Contractor shall satisfy ICO that all relevant manufacturing
processes are controlled and are defined adequately by process specifications
and drawings, work instructions and procedures. Quality controls to be operated
by the Contractor shall include but not be limited to:

         (a)      satisfactory control of sources of supply and materials, piece
                  parts and components;

         (b)      conformance to manufacturing specifications, drawings,
                  documented procedures and work instructions;

         (c)      adequate documentary evidence including certification of
                  completion of state inspection and test routines;

         (d)      investigation of defects and control of corrective action;

         (e)      satisfactory storage, handling and delivery of material; and

         (f)      control and calibration of inspection, measuring and test
                  equipment.

13.3     Subject to applicable legal restrictions in the country of manufacture,
ICO reserves the right at its discretion for ICO Staff to inspect visually all
of the Deliverables and to witness any or all quality assurance tests and
inspection procedures and examine quality assurance records relating thereto at
any of the Sites or any of the locations where the NEC Team or any
Sub-Contractors (excluding any Sub-Contractor who shall not have been required
to enter into a direct undertaking with ICO pursuant to clause 11) carries out
the Works. ICO shall give the Contractor 7 days written notice of its intention
to make any inspection or to witness any quality assurance tests or to examine
any quality assurance records.

13.4     The Contractor shall promptly upon ICO's request make available to ICO
at the relevant place of inspection or at such other locations as may be
mutually agreed all quality assurance records and other pertinent manufacturing
data, including any drawings, inspection and test data, which are reasonably
necessary to enable ICO to satisfy itself as to the Contractor's compliance with
the quality assurance standards called for under the Statement of Work.

13.5     Any inspection and/or test and/or examination made or attended by ICO
Staff under this clause shall not relieve the Contractor of its responsibility
to conform to the requirements of this Agreement.

14       ICONET INTEGRATION

14.1     The Master ICONET Integration Plan Document which is referred to in
Annex 9 of the Statement of Work (the "MIIPD") describes the range of ICO System
integration tests and services which the Contractor has granted ICO the option
to request the Contractor to carry out (the "ICONET Integration"). Table 1 of
Annex 9 lists the various campaigns which are more fully described in the MIIPD
(the "ICONET Integration Campaigns") and the associated management that may be
required of the Contractor (the "Associated Management"). Table 1 of Annex 9
also sets out the number of man-months which the Contractor has offered to
provide, all of which may be adjusted in accordance with clause 14.6. The
schedule for the completion of such services is set out in Table 2 of Annex 9
(the "ICONET Integration Schedule"). Annex 9 also establishes the additional
responsibilities

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associated with the performance of ICONET Integration which the parties agree to
assume if ICO elects to exercise its option.

14.2     ICONET Integration shall be carried out in two phases. The first phase
shall commence in 1998 (the "First Integration Phase") and the second phase
shall commence in 1999 (the "Second Integration Phase"). During the period from
the execution of this Agreement until, in the case of the First Integration
Phase, 15 July 1997 and, in the case of the Second Integration Phase, 30
November 1997, ICO and the Contractor shall consult regarding the detailed
definition of the respective ICONET Integration Campaigns. The Contractor will
provide all reasonable assistance to ICO to enable ICO to make an informed
judgement as to whether or not to exercise the option in accordance with clause
14.3.

14.3     ICO may exercise the option contained in clause 14.1 for the First
Integration Phase by notifying the Contractor in writing by no later than 15
July 1997. ICO may subsequently exercise the option contained in clause 14.1 for
the Second Integration Phase by notifying the Contractor in writing by no later
than 30 November 1997.

14.4     The Contractor shall, within 2 months of the receipt of each of ICO's
notifications pursuant to clause 14.3, submit specific proposals to ICO which
will include:

         (a)      the detailed definition of the ICONET Integration Campaigns
                  which ICO has elected to be performed by the Contractor in
                  accordance with clause 14.3;

         (b)      the qualifications and numbers of personnel and the resultant
                  man-months which the Contractor proposes for each ICONET
                  Integration Campaign and, for the purpose of clause 14.16, the
                  minimum number of man-months for each ICONET Integration
                  Campaign (which shall never exceed 25% of the total proposed
                  man-months for each ICONET Integration Campaign);

         (c)      the location(s) at which each ICONET Integration Campaign is
                  proposed to be performed and the resultant travel costs;

         (d)      the duration and sequence for the performance and completion
                  of each ICONET Integration Campaign together with an amended
                  ICONET Integration Schedule;

         (e)      the content and price of the documents specified to be
                  provided by the Contractor in accordance with Section 9 of
                  Annex 9 which shall constitute the Deliverables for the
                  purpose of this clause 14 but, for the avoidance of doubt, not
                  for the purpose of the Acceptance Criteria set out in Annex 10
                  of this Agreement;

         (f)      the special test equipment required for each ICONET
                  Integration Campaign identifying those items of special test
                  equipment to be provided by ICO which are set out in Table 3
                  of Annex 9, together with the dates by which, and the
                  locations to which ICO supplied test equipment is to be
                  provided for each ICONET Integration Campaign;

         (g)      the relevant Associated Management man-months required by the
                  Contractor for the management of the ICONET Integration
                  Campaigns; and

         (h)      the additional resources described in Section 3.8 of Annex 9
                  (the "Additional Resources") and the Contractor's best
                  estimate of its price for providing such Additional Resources.
                  The extent and price of such Additional Resources will be
                  subject to reduction to the extent that ICO elects to provide
                  some or all of such Additional Resources.

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14.5     The Contractor will, if requested by ICO, amend its proposals submitted
pursuant to clause 14.4 to meet the reasonable requirements of ICO.

14.6     ICO may, after receipt of each of the Contractor's proposals pursuant
to clause 14.4, issue a Change Order to the Contractor. For the First
Integration Phase, ICO may issue such Change Order in a timely manner and in any
event no later than 31 January 1998. For the Second Integration Phase, ICO may
issue a further Change Order in a timely manner and in any event no later than
31 May 1998. Such Change Orders shall specify:

         (a)      the ICONET Integration Campaigns to be undertaken by the
                  Contractor;

         (b)      the qualifications and numbers of personnel and the resultant
                  man-months for each ICONET Integration Campaign, including for
                  the purposes of clause 14.16 the minimum number of man-months
                  for each ICONET Integration Campaign to be paid for by ICO;

         (c)      the location(s) at which each ICONET Integration Campaign is
                  to be performed and the total resultant travel costs;

         (d)      the duration and sequence for the performance and completion
                  of each ICONET Integration Campaign together with the amended
                  ICONET Integration Schedule;

         (e)      the content and price of the Deliverables;

         (f)      the special test equipment required for each ICONET
                  Integration Campaign which ICO will make available for use by
                  the Contractor;

         (g)      the Associated Management man-months;

         (h)      the Additional Resources (if any), and the times by which and
                  the locations at which ICO will provide such Additional
                  Resources to the Contractor for each ICONET Integration
                  Campaign at its own cost; and

         (i)      the Additional Resources which the Contractor will provide for
                  each ICONET Integration Campaign and the associated cost (if
                  any).

The Contractor shall accept such Change Orders provided that in each case (a),
(b), (d), (e), (f), (g) and (i) are generally consistent with, and do not exceed
the Contractor's proposals pursuant to clause 14.4. In any other event, ICO and
the Contractor shall mutually agree the Change Orders in accordance with clause
9.

14.7     The ICONET Integration services shall be carried out in accordance with
Annex 9 and any Change Orders agreed in accordance with clause 14.6. Such
services shall constitute the Works for the purposes of this clause 14 but, for
the avoidance of doubt, shall not be Works for the purposes of the Acceptance
Criteria set out in Annex 10 of this Agreement.

14.8     Within 6 months of the date of this Agreement the parties shall agree a
reporting procedure for all Works. Such procedures shall include weekly written
reports by the Contractor concerning the man-months expended, expenses incurred
by the Contractor, and the progress of each ICONET Integration Campaign.

14.9     The Contractor shall, in a timely manner, inform ICO if the Contractor
anticipates that the remaining man-months for an individual ICONET Integration
Campaign will be insufficient to permit the completion of such ICONET
Integration Campaign. ICO may direct the Contractor in writing to

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reallocate man-months from other ICONET Integration Campaigns so as to permit
the Contractor to complete such ICONET Integration Campaign. If ICO shall
instruct the Contractor to modify the scope of, or not to complete an ICONET
Integration Campaign, the Contractor shall be responsible for performing such
ICONET Integration Campaign only to the extent so instructed by ICO. If ICO
gives no directions to the Contractor, then the Contractor shall be entitled to
cease carrying out the relevant ICONET Integration Campaign once all the
remaining applicable man-months have been expended. In the event that ICO
directs that man-months are to be reallocated to any ICONET Integration Campaign
from other ICONET Integration Campaign(s), the Contractor shall advise ICO
immediately in writing as to the anticipated effects upon the Contractor's
performance and completion of the remaining ICONET Integration Campaigns. If ICO
does not provide instructions as to how to proceed within 5 days (or such other
time as may be mutually agreed) of being informed by the Contractor of the
effect upon the remaining ICONET Integration Campaigns the Contractor shall be
obliged to expend only the remaining available man-months. The total number of
man-months specified in the Change Orders agreed in accordance with clause 14.6
shall not be exceeded. If either party wishes to apply further effort beyond the
total number of man-months specified in the Change Order agreed in accordance
with clause 14.6, then the requesting party shall propose a further Change Order
for consideration and agreement by the other party in accordance with clause 9.

14.10    The Contractor will submit invoices to ICO, and ICO shall pay the same
in United States Dollars, subject to clauses 14.11 and 14.12, payable within 30
days after receipt of valid invoices in accordance with clause 17 as follows:

         (a)      man-months - monthly in arrears for the man-months that have
                  been expended by the Contractor using the rate specified in
                  Appendix 3 to Schedule 9;

         (b)      travel costs - monthly in arrears for the actual travel costs
                  incurred by the Contractor (all travel shall be by economy or
                  equivalent class);

         (c)      Additional Resources - monthly in arrears for the actual costs
                  incurred by the Contractor; and

         (d)      Deliverables -

                  (i)      ICONET Integration Requirements (Final) - after
                           approval by ICO, 40% of the price of the
                           Deliverables;

                  (ii)     ICONET Integration Plan (Final) - after approval by
                           ICO, 30% of the price of the Deliverables; and

                  (iii)    ICONET Integration Report (Formal) - after approval
                           by ICO, 30% of the price of the Deliverables.

14.11    All invoices for man-months shall identify the ICONET Integration
Campaign to which they relate the names of the relevant personnel deployed by
the Contractor together with the total time, rate, and the relevant locations
where the ICONET Integration activities were performed. All invoices for travel
shall be accompanied by actual tickets (or copies thereof). All invoices for
Additional Resources provided by the Contractor shall be accompanied by a
summary of the Additional Resources used and total actual amount paid by the
Contractor for such Additional Resources.

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14.12    In substantiation of its invoices the Contractor will keep accurate
records of the number of personnel and the man-months which it has devoted to
each of the ICONET Integration Campaigns and Associated Management. Such records
shall be submitted to ICO on a monthly basis for ICO's review. ICO may require
the Contractor to provide additional information if, in ICO's reasonable
opinion, the information provided by the Contractor is incomplete or is
insufficient for the purpose of substantiating the associated invoice. No
invoices for any Works shall be payable by ICO unless such records have been
submitted to ICO in accordance with this clause and the relevant invoice shall
not be due and payable by ICO unless such records have been submitted at least
15 days before the date such invoice is due and payable.

14.13    If the Contractor should exceed the total number of man-months for any
or all of the ICONET Integration Campaigns or the Associated Management, the
travel costs, or the costs for Additional Resources which are specified in the
Change Orders agreed in accordance with clause 14.6 (except as may have been
agreed by ICO in accordance with clause 14.9 or subsequent Change Order(s)),
then ICO shall not be obliged to make any increase in the price payable for the
ICONET Integration.

14.14    In the event that ICO provides the Additional Resources in accordance
with clause 14.6(h) and the Contractor delays or cancels the activities for
which such Additional Resources were provided (unless the delay or cancellation
was the result of an event outside the reasonable control of the Contractor),
ICO shall be entitled to recover any actual costs which result from such delay
or cancellation by the Contractor in accordance with clause 17.

14.15    The Contractor will maintain and update the MIIPD and the ICONET
Integration Schedule. Either party may propose changes to the MIIPD or the
ICONET Integration Schedule. The ICONET Integration Schedule shall be adjusted
to reflect changes to activities or events within the Master Level Schedule
which directly affect the performance or completion of ICONET Integration
activities. All changes to the MIIPD and the ICONET Integration Schedule shall
be subject to the approval of ICO.

14.16    ICO shall be entitled, at any time during the Contractor's performance
of the Works, to direct the Contractor by written notice to cease all or any
part of such Works. The Contractor and all relevant Sub-Contractors shall,
within 15 days after the date of the notice (or such later date as may be
specified by ICO in such notice), cease such Works in an orderly manner (or in
such manner as may reasonably be specified by ICO) so as to minimise disruption
to any other integration activities being carried out and so as to preserve the
results of the Works agreed to be performed in accordance with Annex 9 and any
Change Orders pursuant to clause 14.6. The Contractor shall be entitled to:

         (a)      reimbursement of all costs incurred up to the date specified
                  by ICO to cease activities provided that such costs do not
                  exceed the amount associated with the ICONET Integration
                  Campaign(s) so terminated; and

         (b)      if such notice results in the Contractor receiving for each
                  ICONET Integration Campaign terminated by such notice less
                  than the amount payable for the minimum man-months agreed in
                  accordance with the relevant Change Order pursuant to clause
                  14.6, then the Contractor will be entitled to claim the
                  difference between the actual man-months expended by the
                  Contractor and the amount payable for the minimum man-months
                  for each such terminated ICONET Integration Campaign.

Other than the sums referred to in (a) and (b) above, the Contractor shall have
no other claims of any nature arising from the termination by ICO of such
activities. For the avoidance of doubt, all amounts payable by ICO in accordance
with this clause 14.16 (except for any difference between the actual man-months
expended by the Contractor and the minimum man-months agreed in accordance with
the relevant Change Order pursuant to clause 14.6) shall be substantiated by
such evidence as is to be provided for monthly invoices in accordance with
clause 14.12.

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14.17    If any invoice submitted to ICO pursuant to clause 14.10 shall be
overdue for payment by ICO for 60 days or more, unless ICO has disputed such
invoice on reasonable grounds and has notified the Contractor in writing of such
dispute, the Contractor shall be entitled to stop performing all or any of the
Works.

14.18    The Contractor will co-operate with ICO Staff in the performance of
ICONET Integration activities pursuant to this clause 14 or any additional
integration activities which ICO may choose to carry out.

14.19    For the avoidance of doubt, ICO shall not be responsible, for the
purposes of this clause 14, for the importation by the Contractor or any
Sub-Contractor of any installation and test tools, equipment, materials or other
effects (including personal) in connection with this clause 14.

14.20    The following clauses of this Agreement shall not apply to the Works
provided in accordance with this clause 14 and Annex 9 of the Statement of Work:
4.1 (a) to (f) inclusive; 4.1 (h), (i) and (n); 4.2 to 4.5 inclusive, 4.7, 4.10,
5, 6.1 (d), 6.2, 7, 8, 11.5, 12.3, 13.2 to 13.5 inclusive, 15, 16.2 to 16.17
inclusive, 18, 19, 22, 25 to 40 inclusive, 44 to 50 inclusive, 54, 55.4 and 56.

14.21    For the purposes of this clause 14, the following clauses of this
Agreement are amended as follows;

         (a)      clause 4.1 (l): "it will provide, and will ensure that its
                  Sub-Contractors provide, suitably skilled and appropriately
                  experienced personnel required to fulfil the objectives of
                  Annex 9 of the Statement of Work agreed in accordance with the
                  relevant Change Order pursuant to clause 14.6 and clause 14";

         (b)      clause 4.6: "Where the Contractor shall be in breach of any
                  aspect of its warranties and undertakings set out in clause 4
                  relating to ICONET Integration, except for those parts of
                  clause 4 specifically excluded in clause 14.20 or as amended
                  by clause 14.21, the Contractor shall be responsible, at its
                  own cost, for rectifying the consequences of any such breach";
                  and

         (c)      clause 11.1: "The Contractor will ensure that the Works are
                  carried out in such a manner as will fulfil Annex 9 of the
                  Statement of Work as amended from time to time in accordance
                  with the terms of this Agreement, using the other members of
                  the NEC Team as the Principal Sub-Contractors to carry out the
                  Works. In accordance with the terms of this clause, the
                  Contractor may sub-contract such elements of the Works as they
                  consider to be appropriate but the Contractor shall remain
                  fully responsible for the performance of the Works, the
                  preparation and delivery of the Deliverables and the
                  completion of the Works which are scheduled to be completed in
                  accordance with the ICONET Integration Schedule
                  notwithstanding any default or failure to perform by any
                  Sub-Contractors."

PART C - PRICE AND PAYMENT

15       PRICE

15.1     ICO shall pay an aggregate total price of US$xxx for the complete
performance by the Contractor of all of its obligations under this Agreement
together with a further sum of US$xxx (in respect of freight and insurance as
referred to in the Pricing Schedule), which amounts shall be subject to
adjustment only in respect of (i) changes agreed under clause 9 and (ii) the
cost of any Option items upon exercise of the relevant Option or other items or
services

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purchased under clause 46; (such aggregate amount, as so adjusted, being
referred to as the "Price"). Any Instalment payment made shall discharge the
relevant portion of the Price and shall not be reclaimable by ICO but without
prejudice to ICO's right to claim damages and/or indemnity in accordance with
the provisions of this Agreement in the event of any breach by the Contractor.

15.2     The Price shall be payable in Instalments as set out in the Payment
Schedule, but the obligation of ICO to pay any Cash Invoice (other than any Cash
Invoices relating to the initial Instalment) shall be subject to clauses 15.3
and 16.

15.3     If the Contractor fails to achieve a Top Level Milestone by or within
the period of 21 days commencing on the Milestone Date, then ICO may defer
payment of any Cash Invoice which shall as a consequence become a Deferred Cash
Invoice.

ICO must notify the Contractor if it considers on any reasonable grounds that
any Top Level Milestone has not been achieved by the relevant Milestone Date
and, having done so, shall, subject to the provisions of this clause 15.3 and in
particular to the Contractor's entitlement to contest ICO's entitlement to
impose the deferral, be entitled to treat all Cash Invoices which would, but for
this clause 15.3, have a Relevant Payment Date more than 21 days after the
relevant Milestone Date as Deferred Cash Invoices under this clause 15.3. Until
the relevant Top Level Milestone shall have been achieved, Cash Invoices shall
continue to be issued by the Contractor, but shall automatically become Deferred
Cash Invoices and shall not be payable so long as they remain Deferred Cash
Invoices.

The Contractor must notify ICO by facsimile within 10 days of receiving such
notification from ICO of whether it disputes ICO's entitlement to impose the
deferral. If the Contractor does not so notify ICO, then it shall be deemed to
accept that the deferral is being properly imposed by ICO in accordance with the
terms of this Agreement and the due date for payment of each of the Deferred
Cash Invoices shall be 21 days following the date upon which the deferral ends
(or, if later, the date 30 days after the receipt of the relevant Deferred Cash
Invoice).

If the Contractor notifies ICO that the imposition of the deferral is disputed
by the Contractor on reasonable grounds, then ICO shall upon the day falling 30
days after the date of receipt of each Cash Invoice being treated by ICO as a
Deferred Cash Invoice pay the amount of the same into the Escrow Account. The
due date for payment of each such invoice shall (if there is a Determination
that the deferral was properly imposed in accordance with the terms of this
Agreement) be 21 days following the date upon which the deferral ends (or, if
later, the date 30 days after the receipt of the invoice) or (if there is a
Determination that the deferral was not properly imposed in accordance with the
terms of this Agreement) the original Relevant Payment Date for such invoice
(and ICO shall have an obligation to pay interest to the Contractor pursuant to
clause 16.10 accordingly).

Any deferral pursuant to this clause 15.3 shall end as soon as the relevant Top
Level Milestone shall have been achieved and any Deferred Cash Invoices shall
thereupon cease to be Deferred Cash Invoices.

15.4     For the avoidance of doubt, all references in this clause 15 to a
Milestone Date shall refer to the adjusted timing of such Milestone Date as
Determined pursuant to any of the provisions in this Agreement which require or
permit an alteration to the timing of achievement of Top Level Milestones.

15.5     For the avoidance of doubt, the Price is fixed, including, without
limitation the following:

         (a)      all place of origin taxes; except that if the place of origin
                  is in the same country as the Site at which the relevant
                  Deliverable is to be installed or the relevant service forming
                  part of the Works is to be supplied, then the Net Cost shall
                  be calculated and the Additional Amount shall be added the
                  price as set out below. The "Net Cost" means:

                  (i)      the part of the Price attributable to such
                           Deliverable or service; less

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                         (ii)       in the amount of any export duties that the
                                    Contractor would have incurred on the export
                                    from the place of origin of such Deliverable
                                    or service if it had been exported.

                  The "Additional Amount" means:

                          (i)       the amount of any Value Added Tax or other
                                    similar tax which would have been imposed by
                                    the laws of that country on a supply of that
                                    Deliverable or service to ICO for a price
                                    equal (on a tax exclusive basis) to the Net
                                    Cost less

                          (ii)      the amount (if any) of such export duties
                                    taken into account in determining the Net
                                    Cost.

         (b)      any charges relating to export licences, certificates of
                  origin, export document preparation, and export packaging;

         (c)      insurance (including transit through to Sites, storage on
                  Site, installation and testing);

         (d)      shipping and transportation costs;

         (e)      employee and employee-related costs of the Contractor and
                  Sub-Contractors;

         (f)      all necessary licences, fees or other charges necessary for
                  the performance of the Works except:

                         (i)       licences (and their associated costs) that
                                   the Site Operator requires for its operation
                                   of the ICONET Ground Facilities; and

                         (ii)      any local and/or central or other
                                   governmental approvals and permits for any
                                   civil work,

                  (which licences, approvals and permits referred to in
                  paragraphs (i) and (ii) above shall be at the cost of ICO);

         (g)      all taxes on the goods originally sold or provided by the
                  Contractor to ICO under this Agreement (except import duty and
                  customs duties, including Value Added Tax or any similar sales
                  tax (which excluded taxes shall be paid in accordance with
                  clause 28) and all Value Added Tax and any similar sales tax
                  on services which are not recoverable by the Contractor or any
                  Sub-Contractor or any of their respective affiliates) incurred
                  by the Contractor and Sub-Contractors and their employees
                  associated with performing any part of the Works in the
                  country where the relevant Deliverables are to be installed or
                  where the services are to be provided; and

         (h)      any penalties or fines incurred by the Contractor and
                  Sub-Contractors or their employees.

16       PAYMENT AND PAYMENT TERMS

16.1     The payment by ICO of any moneys to the Contractor in respect of this
Agreement shall not be deemed to be acceptance by ICO of any Works or
Deliverables in respect of which such moneys are paid.

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16.2     The Contractor shall submit a Cash Invoice (and a copy invoice) to ICO
for the Cash Portion of each Instalment of the Price payable in accordance with
the Payment Schedule or clause 14 as appropriate. Each Cash Invoice shall be
accompanied by appropriate supporting paperwork. In any case where the
Instalment becomes due on shipment of any Equipment, this paperwork shall
include a copy of the bill of lading (or other equivalent document).

16.3     All of the Contractor's Cash Invoices, other than any Deferred Cash
Invoices during the period of the relevant deferral pursuant to clause 15.3,
shall, provided that the same shall be in accordance with the requirements of
this Agreement, be due and payable in United States Dollars by ICO within 30
days of the date of receipt by ICO of the Cash Invoice (the "Relevant Payment
Date").

16.4     Any invoices which are to be submitted to ICO pursuant to this
Agreement shall be addressed to ICO Global Communications Holdings BV,
Drentestraat 20, 1083 HK, Amsterdam, Netherlands with a copy to ICO Services
Limited, 1 Queen Caroline Street, London W6 9BN.

16.5     In the event that ICO disputes its liability to pay the whole or any
part of a Cash Invoice or a Deferred Cash Invoice, ICO will advise the
Contractor of its dispute and (in reasonable detail) the grounds therefor
(including the Instalment(s) to which the dispute relates and the Disputed
Percentages of it or them) by no later than nine days before the Relevant
Payment Date (or, the date which would, if the invoice were not a Deferred Cash
Invoice, have been its Relevant Payment Date). For the avoidance of doubt, in
the case of a dispute relating to an invoice only the Disputed Percentage of the
Cash Portion shall be treated as disputed in relation to the relevant Cash
Invoice or Deferred Cash Invoice.

For the avoidance of doubt ICO shall by the Relevant Payment Date pay to the
Contractor those portions of any Cash Invoice which shall not be the subject of
a deferral pursuant to clause 15.3 and which are not in dispute and the parties
shall use reasonable efforts to resolve any dispute concerning the Disputed
Percentage of any Instalment.

16.6. This clause 16.6 applies if at any time:

                  (a) ICO disputes its liability to pay an amount invoiced in
                  good faith by the Contractor in a Cash Invoice which appears
                  on its face to have been calculated and to be payable in
                  accordance with the Payment Schedule or clause 14, including
                  without limitation any Cash Invoice which ICO claims that it
                  has the right to defer pursuant to clause 15.3 unless the
                  Contractor accepts that claim; and

                  (b) that would result in the aggregate of all amounts so
                  invoiced which are then in dispute (each a "Disputed Amount"
                  and collectively "the Disputed Amounts", which expression
                  shall for the avoidance of doubt in relation to any Instalment
                  include only the Disputed Percentage of the Cash Portion and
                  not the Disputed Percentage of the Financed Portion, if any)
                  equalling or exceeding any Escrow Trigger Amount(s). If it
                  would equal or exceed more than one Escrow Trigger Amount,
                  then the higher or highest shall be the relevant one.

For the avoidance of doubt, any Cash Invoice issued by the Contractor being for
an amount not invoiced in good faith or which does not appear on its face to
have been calculated and to be payable in accordance with the Payment Schedule
or clause 14, as appropriate, shall not be payable by ICO unless and until ICO
agrees that the same shall have been properly issued and the requirement to pay
a Disputed Amount into the Escrow Account shall not apply in relation thereto.

If this clause 16.6 applies, then ICO shall (on the Relevant Payment Date for
the Cash Invoice or, in the case of a Deferred Cash Invoice, the due date for
payment of it) pay into the Escrow Account an

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amount sufficient to ensure that the balance on the Escrow Account relating to
Disputed Amounts under this Clause 16 (after deduction of any amounts which
either ICO or the Contractor is then entitled to have paid to it pursuant to
clause 16.7) equals or exceeds the relevant Escrow Trigger Amount.

16.7     The parties shall in the Escrow Agreement jointly instruct the Escrow
Agent to hold the balance on the Escrow Account in accordance with the relevant
provisions of this Agreement.

If there is a Determination, that any Disputed Amount or any part thereof is
payable to the Contractor (either because any deferral under clause 15.3 was not
in accordance with the terms of this Agreement, the dispute was otherwise
ill-founded, relevant outstanding Works giving rise to a disputed deferral have
been completed as referred to in clause 15.3 or the cause of the dispute has
been remedied), then ICO shall join within 5 days of the date of the
Determination with the Contractor in instructing the Escrow Agent to make a
payment out of the Escrow Account to the Contractor of any amount held in the
Escrow Account in respect of that Disputed Amount (or the appropriate part
thereof), together with any interest earned on that amount. This payment shall
be applied in or towards satisfaction of any liability of ICO in respect of the
relevant Disputed Amount (and interest accrued pursuant to clause 16.10 upon it)
pursuant to clause 16.8 or, as the case may be, clause 16.9.

If there is a Determination that any Disputed Amount or any part thereof is not
payable by ICO to the Contractor or that ICO was entitled to make a deferral
pursuant to clause 15.3 which the Contractor has challenged, then the Contractor
shall join within 5 days of the date of the Determination with ICO in
instructing the Escrow Agent to make a payment out of the Escrow Account to ICO
of any amount held in the Escrow Account in respect of that Disputed Amount (or
the appropriate part thereof) or, as the case may be, that deferral, together in
either case with any interest earned on that amount in the Escrow Account.

16.8     If there is a Determination that any dispute raised by ICO against all
or part of an invoice was ill-founded or that a deferral pursuant to clause 15.3
was not in accordance with the terms of this Agreement, then ICO shall within 9
days of the date of the Determination pay to the Contractor any balance of the
Disputed Amount found by the Determination to be payable to the Contractor
together with interest thereon calculated in accordance with clause 16.10, after
taking account of any payment to be made to the Contractor out of the Escrow
Account pursuant to clause 16.7 as a result of that Determination and the
Relevant Payment Date of the Disputed Amount in this case shall be the date 30
days after the date of ICO's receipt of the original Cash Invoice.

16.9     If there is a Determination that payment be made to the Contractor for
any reason other than as is referred to in clause 16.8, then ICO shall within 9
days of the date of the Determination pay to the Contractor any balance of the
Disputed Amount found by the Determination to be payable to the Contractor
together with interest thereon calculated in accordance with clause 16.10, after
taking account of any payment to be made to the Contractor out of the Escrow
Account pursuant to clause 16.7 as a result of that Determination. Interest
shall run pursuant to clause 16.10 as if the Relevant Payment Date were the date
of the Determination. A payment by ICO pursuant to this clause 16.9 shall not
prevent the Contractor from continuing to seek a Determination as referred to in
clause 16.8 that the dispute was ill-founded or that the deferral was not
properly imposed under clause 15.3 (which Determination would entitle it to the
payment of interest pursuant to clause 16.10 from the original Relevant Payment
Date).

16.10    Any sums not paid by one party when due shall bear interest from the
Relevant Payment Date, or if different or if there is no Relevant Payment Date
the due date for payment, until the other party receives payment (whether before
or after judgement) at the Agreed Rate. Such interest shall accrue from day to
day on the basis of a 360 day year and shall be payable with the sum to which it
relates and, if that sum is overdue, on demand.

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16.11    All payments to be made under this Agreement to the Contractor shall be
made:

         (a)      for value on the Relevant Payment Date (or such other date as
                  may apply pursuant to this Agreement) from ICO to such account
                  at such bank in Tokyo as the Contractor may specify from time
                  to time; and

         (b)      in full without any set-off, withholding, deduction or
                  counterclaim of any kind, but for the avoidance of doubt, this
                  is without prejudice to clause 16.12.

16.12    If at any time ICO considers that the Contractor is in default of its
obligations under this Agreement and as a result an amount is due to be paid by
the Contractor to ICO, then if the amount involved exceeds $1 million and if ICO
has given the Contractor no less than 9 days' notice of its intention to do so,
ICO may deduct the amount claimed from any payment that it is making to the
Contractor of any one or more Cash Invoice(s) then or subsequently falling due
for payment and instead pay the whole of that amount into the Escrow Account.

If there is a Determination that all or part of the amount claimed by ICO, in
respect of which the payment into the Escrow Account was made, was due to ICO by
the Contractor, then the Contractor shall within 5 days of the Determination
join with ICO in instructing the Escrow Agent to pay out of the Escrow Account
to ICO the amount so due, together with interest earned on that amount in the
Escrow Account; and upon the Contractor joining in that instruction the
liability which led to the payment into the Escrow Account being made by ICO
shall be discharged in an amount equal to the amount in respect of which that
instruction is given, whether or not the Escrow Agent actually makes the
payment.

If there is a Determination that all or part of the amount claimed by ICO and
paid into the Escrow Account was not due to ICO, then ICO shall within 5 days of
the Determination join with the Contractor in instructing the Escrow Agent to
pay out of the Escrow Account the amount which was not so due, together with
interest earned on that amount in the Escrow Account and ICO shall pay to the
Contractor an additional amount such that the Contractor receives in total the
amount which it should have been paid on the Relevant Payment Date for the Cash
Invoice(s) against which ICO made such deductions when paying monies into the
Escrow Account together with interest on such amount at the Agreed Rate from the
Relevant Payment Date up to the date of actual payment.

16.13    The parties have agreed in principle, subject to contract, that part of
the aggregate total price payable under this Agreement (excluding any adjustment
to such price whether referred to in clause 15.1 or not) shall be financed by
the Contractor. A summary of the terms and conditions reflecting this in
principle agreement ("the Vendor Financing Summary") is set out as Schedule 10.

Clause 16.14 shall apply if, but only if, and from the time that the parties
enter into a legally binding agreement ("the Vendor Financing Agreement")
reflecting (with such amendments as may be agreed) that Vendor Financing
Summary. The parties agree to negotiate in good faith the terms and

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conditions of the Vendor Financing Agreement with a view to completing the
anticipated vendor financing within the spirit of the Vendor Financing Summary
by the end of 1997.

16.14    Each Financed Invoice issued by the Contractor shall relate to the
Financed Portion of one or more Instalments in respect of which a Cash Invoice
has been issued. The Contractor shall not issue a Financed Invoice in respect of
an Instalment where ICO shall, in relation to the corresponding Cash Invoice,
have disputed its liability to pay 100% of the relevant Instalment until
Determination of such dispute. The Contractor shall not include in any Financed
Invoice any Disputed Percentage of the Financed Portion of an Instalment until,
and then only to the extent that there is a Determination that the relevant
amount of the Instalment was due.

ICO shall only be entitled to challenge the amount of a Financed Invoice or the
Contractor's entitlement to issue it on the ground that it is not issued in good
faith, it is inconsistent with a Cash Invoice which relates to one or more of
the same Instalments or that it appears on its face to be inconsistent with the
Payment Schedule. A Financed Invoice shall fall due for payment at the time
stated in, shall bear interest which shall be payable in accordance with and
shall otherwise be subject to the Vendor Financing Agreement.

Clauses 15.2 and 15.3 shall not apply to the Financed Portion of any Instalment
with the intention that the Financed Invoices to be issued at the end of each
quarter pursuant to the Vendor Financing Agreement shall include the Financed
Portion of any Instalment in respect of which a Cash Invoice would, but for
clauses 15.2 and 15.3, have been issued in that quarter.

The first two sentences of clause 16.2 and clause 16.4 shall apply to Financed
Invoices as if they were Cash Invoices except to the extent specifically
referred to in this clause 16.14. The other provisions of clauses 16.1 to 16.12
inclusive shall not apply to Financed Invoices (although the Vendor Financing
Agreement may include analogous provisions). For the avoidance of doubt, nothing
in this Agreement shall result in a Financed Invoice which is payable in
accordance with the terms of the Vendor Financing Agreement not being payable.

16.15    The Vendor Financing Summary provides for ICO to pay a
management/commitment fee to the Contractor in respect of the proposed vendor
financing, such fee to be payable in two instalments, the second one together
with interest. ICO confirms that the obligations as to payment of that fee are
legally binding on it, notwithstanding that the Vendor Financing Summary is
expressed to be subject to contract.

16.16    The parties shall immediately upon the choice of the Escrow Agent and
the settlement of the terms of the Escrow Agreement enter into the Escrow
Agreement with the Escrow Agent. Neither party shall upon or after joining in an
instruction to the Escrow Agent to make a payment to the other party out of the
Escrow Account take any action directly or indirectly to prevent payment being
made to the recipient party pursuant to such instructions.

16.17    To the extent that any payment made by ICO out of the Escrow Account is
made because there has been a Determination that ICO was correct in disputing a
Cash Invoice in whole or in part or was entitled to impose a deferral pursuant
to clause 15.3, then such payment shall not be deemed for any purpose to be a
payment made by the Contractor to ICO.

16.18    For the avoidance of doubt, the provisions of clauses 15.2, 15.3 and 16
shall apply in relation to payments due under clause 14.

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17       PAYMENT OF REIMBURSABLE COSTS

17.1     The Contractor shall submit (substantially in the relevant approved
form set out in Schedule 4 and containing the same information) monthly invoices
for costs which are agreed to be reimbursable by ICO to the Contractor under
this Agreement. Such invoices shall have attached the original documents (or
copies of the documents certified by the Contractor) evidencing the amounts
claimed by the Contractor for reimbursement.

17.2     Amounts claimed by the Contractor for reimbursement pursuant to this
clause 17 shall be net of any amounts (including, for the avoidance of doubt,
offsetable amounts such as VAT or other sales taxes) which the Contractor or any
of its Sub-Contractors have the right to reclaim from parties other than ICO,
whether or not such claim has been made or received provided that if, subject to
the Contractor or its Sub-Contractors following its or their usual collection
procedures, any amount reclaimed by the Contractor or its Sub-Contractors which
has not been received from such third party within 90 days of the date of the
Contractor's invoice to ICO in which the right to such reclaim was taken into
account, the Contractor shall be entitled to include such reclaimed amount in
its next monthly invoice to ICO. If subsequently the Contractor or any of its
Sub-Contractors receive such reclaim from the third party, the Contractor shall
account to ICO for any sums so recovered without delay.

17.3     ICO shall submit invoices for costs which are agreed to be reimbursable
by the Contractor. Such invoices shall have attached the original documents (or
copy documents certified by ICO) evidencing the amounts claimed by ICO for
reimbursement.

17.4     Amounts claimed by ICO for reimbursement pursuant to this clause 17
shall be net of any amounts (including, for the avoidance of doubt, offsetable
amounts such as VAT or other sales taxes) which ICO has the right to reclaim
from parties other than the Contractor, whether or not such claim has been made
or received provided that if, subject to ICO following its usual collection
procedures, any amount reclaimed by ICO has not been received from such third
party within 90 days of the date of ICO's invoice to the Contractor in which the
right to such reclaim was taken into account, ICO shall be entitled to invoice
the Contractor for such reclaimed amount. If subsequently ICO receives such
reclaim from the third party, it shall account to the Contractor for any sums so
recovered without delay.

17.5     The provisions of clauses 16.3 to 16.11 inclusive and 16.17 shall apply
to this clause 17 mutatis mutandis, and for the avoidance of doubt for these
purposes payments by the Contractor to ICO shall be treated in the same way as
payments by ICO to the Contractor.

18.      LIQUIDATED DAMAGES

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18.1     The Contractor shall be liable to pay, upon ICO's demand in writing, to
         ICO (without deduction or withholding) liquidated damages in the event;

         (a)      that the Contractor shall fail to hand over any SAN(s) or
                  NMC(s), to ICO, by any scheduled Handover Date (which date,
                  for the purpose of this clause, shall mean any extension or
                  adjustment to any such Handover Date as agreed by the
                  parties); or

         (b)      that the Contractor shall fail to achieve Acceptance Set 5
                  Completion by the scheduled date (which date, for the purpose
                  of this clause, shall mean any extension or adjustment to such
                  date as agreed by the parties); or

         (c)      that the Contractor shall fail to achieve Acceptance Set 2, 3
                  or 4 Completion by the scheduled dates (which date, for the
                  purpose of this clause, shall mean any extension or adjustment
                  to any such date as agreed by the parties.).

18.2     In case of 18.1 (a) and (b) above, liquidated damages shall be
         calculated in accordance with the formulae and conditions set out in
         clause 18.4 below and shall, in relation to Acceptance Sets 1 to 4
         Completion, never exceed a sum equivalent to   *   of the amount of the
         SAN(s)or NMC(s) to be handed over by the Contractor to ICO and shall,
         in relation to Acceptance Set 5 Completion, never exceed   *   .

18.3     In case of 18.1(c) above, liquidated damages shall be calculated in
         accordance with the formulae and conditions set out in clause 18.5
         below and shall, never exceed a sum equivalent to   *   of the amount
         of the Engineering portion payable on each Acceptance Set 2,3 or 4
         Completion date respectively as set forth in Appendix 1 to Schedule 11.

18.4     Liquidated damages payable by the Contractor to ICO pursuant to Clause
         18.1(a) and (b) shall be calculated in accordance with the following
         formula.

         * Confidential Treatment Requested and the Redacted Material has been
           separately filed with the Commission.

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         (i)      The Price per SAN/NMC shall be calculated as follows;

                  *

         (ii)     The price in respect of each AS1-4 ("n") shall be calculated
                  as follows with 'n' representing the number of SANs or NMCs in
                  each function set;

                  *

                  *

                  *

                  *

         (iii)    The liquidated damages for each Handover in relation to AS 1-4
                  shall be calculated as follows;

                  *

         (iv)     The liquidated damages for AS 5 Completion shall be calculated
                  as follows:

                  *

         A:       shall mean the Price set out in clause 15.1 of the Supply
                  Agreement.

         B:       shall mean that portion of the Price referable to the
                  Equipment Portion and Engineering Portion (except for NRE and
                  Program Management) applicable for SAN for China as specified
                  in Schedule 11 of the Supply Agreement.

         C:       shall mean the Price per SAN/NMC for the purpose of
                  calculating liquidated damages.

         D:       shall mean the number of days immediately following the date
                  30 days after the scheduled Handover Date or the Acceptance
                  Set 5 Completion Date as the case may be, as set out in the
                  Master Level Schedule in Annex 4 Schedule 14 (or any extension
                  or adjustment to any such Handover Date or Acceptance Set 5
                  Completion Date in accordance with Clause 9 of this Agreement)
                  and the actual Handover Date or actual date of Acceptance Set
                  5 Completion as the case may be.

         E:       shall mean the total amount of the Engineering Portion
                  associated with the Phased SAN Handover as set out in Appendix
                  4 to Schedule 9 of this Agreement.

18.5     Liquidated damages payable by the Contractor to ICO pursuant to Clause
         18.1(c) shall be calculated in accordance with the following formula.

         (i)      The liquidated damages for Acceptance Set 1, 2 or 3 Completion
                  shall be calculated as follows:

         * Confidential Treatment Requested and the Redacted Material has been
           separately filed with the Commission.

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                  *

         (ii)     The liquidated damages for Acceptance Set 4 Completion shall
                  be calculated as follows:

                  *

                  E:       shall mean the total amount of the Engineering
                           Portion associated with the Phased SAN Handover as
                           set out in Appendix 4 to Schedule 9 of this
                           Agreement.

                  F:       shall mean the number of days immediately following
                           the date 30 days after the scheduled date of
                           Acceptance Set 1, 2, 3 or 4 Completion as set out in
                           the Master Level Schedule in Annex 4, Schedule 14 (or
                           any extension or adjustment to such dates in
                           accordance with Clause 9 of this Agreement) and the
                           actual date of Acceptance Set 1, 2, 3 or 4 Completion
                           as the case may be.

18.6     Liquidated damages payable by the Contractor to ICO under this
         Agreement shall never exceed in aggregate of 10% of the Price.

PART D - PROGRESS REPORTING

19       MILESTONES AND PROGRESS REPORTING

19.1     ICO and the Contractor have agreed the Top Level Milestone Schedule
(being Schedule 7), which designates particular Milestones as Top Level
Milestones and specifies the date for the achievement by the Contractor of such
Top Level Milestones.

19.2     In accordance with the progress monitoring procedure established in
Annex 4 of the Statement of Work, the Contractor shall report regularly on, and
produce such other evidence as ICO may reasonably request to demonstrate, the
actual progress of the Works as compared with the Master Level Schedule and
Schedule 7.

19.3     Schedule 7 also contains other Milestones which, if not achieved by the
specified dates, may affect the Contractor's ability to achieve the Top Level
Milestones in accordance with Schedule 7. If ICO's failure to achieve any
Milestone, which is identified in Schedule 7 as being the responsibility of ICO,
has a direct effect upon the ability of the Contractor to achieve any Top Level
Milestone, then to the extent that the Contractor can demonstrate the same to be
required, Schedule 7 shall be adjusted in an equitable manner.

19.4     Any changes required to Schedule 7 shall be agreed in accordance with
clause 58.

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

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19.5     If in ICO's reasonable opinion actual progress of the Works does not
conform generally with the Master Level Schedule or achievement of a Top Level
Milestone has been or may be delayed, and if delayed, ICO has notified the
Contractor in accordance with clause 15.3, then ICO may require the Contractor:

         (a)      to submit a report to ICO identifying the reasons for the
                  delay and the Contractors proposal for catching up with that
                  delay; and/or

         (b)      to produce and submit a revised Master Level Schedule to ICO
                  showing how the Contractor proposes to ensure completion of
                  the relevant Works by the relevant Milestone Date or, where a
                  relevant Top Level Milestone has not or will not be achieved,
                  how the Contractor proposes to ensure completion of the
                  relevant Works without adversely affecting the Master Level
                  Schedule and the achievement of the remaining Top Level
                  Milestones by the relevant Milestone Dates.

19.6     If the Contractor is unable to satisfy ICO that it is able to complete
the relevant Works by the relevant Milestone Date or, as the case may be, that
it is able to complete all or any of the relevant Works without adversely
affecting the Master Level Schedule and the achievement of the remaining Top
Level Milestones by the relevant Milestone Dates, ICO shall have the right, with
no corresponding adjustment being made to the Price, to require the Contractor
to commit such extra resources (including any resources required to supplement
the NEC Team's own and then committed resources and expertise) as are necessary
to complete the relevant Works by the relevant Milestone Date or, as the case
may be, to complete all or any of the relevant Works without adversely affecting
the Master Level Schedule and the achievement of the remaining Top Level
Milestones by the relevant Milestone Dates.

19.7     If in extreme circumstances ICO considers that the Contractor is or
will be unable to complete all or any substantial aspect of the Works in
accordance with the Master Level Schedule and the achievement of the remaining
Top Level Milestones by the relevant Milestone Dates and the Contractor has
failed to take all appropriate actions called for by ICO under clause 19.6,
then, if supported by the opinion or recommendation of an independent expert
appointed in accordance with this clause 19.8, ICO may require the Contractor to
(and the Contractor shall be obliged to):

         (a)      replace any of the Sub-Contractors (including the other
                  members of the NEC Team); and

         (b)      take such other actions as ICO may reasonably determine to be
                  necessary in the circumstances.

         19.8     Any independent expert required to be appointed for the
purposes of clause 19.7 shall be appointed either by agreement between the
parties within 21 days of a request by ICO or, in the absence of such agreement
within such period, shall consist of a committee of three experts to be selected
by lot from amongst up to six nominees of whom up to three shall have been put
forward within seven days of the expiry of such 21 day period by each of ICO and
the Contractor. Any person nominated as an expert shall be entirely independent
of the parties, the other members of the NEC Team of any Sub-Contractors and any
Site Operators.

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[20]     NOT USED.

[21]     NOT USED.

22       PROGRESS INSPECTION

22.1     Subject to any applicable legal restrictions in effect in the country
of manufacture, ICO has the right to inspect and verify the progress of all
elements of the Works at all places and times prior to the completion of Phase 3
Testing of the relevant item or component and its handover to, and receipt by,
ICO and for such purposes shall be permitted access to the premises of the
Contractor and its Sub-Contractors (excluding any Sub-Contractor who shall not
have been required to enter into a direct undertaking with ICO pursuant to
clause 11). ICO will give 14 days notice of its intended inspections to the
Contractor. Such inspections shall be performed in a manner that will not unduly
delay the Works. Any such inspections and verifications as are required shall be
authorised by the Supervising Officer.

22.2     If any such inspections and verifications are to be made on the
premises of the Contractor or any Sub-Contractor (excluding any Sub-Contractor
who shall not have been required to enter into a direct undertaking with ICO
pursuant to clause 11), the Contractor shall furnish, and shall require such
Sub-Contractors to furnish, without additional charge, all reasonable facilities
and assistance for the safe and convenient performance of these inspections and
verifications.

22.3     The Contractor shall furnish or procure to be furnished to ICO such
copies of orders, specifications, drawings, any technical information and
documents as ICO may reasonably require to perform progress supervision.

22.4     When any elements of the Works which ICO has, in accordance with clause
22.1 notified the Contractor of its wish to inspect are not, at the relevant
time specified by ICO, ready for inspection, review or evaluation, ICO may
charge to the Contractor the reasonable costs incurred by ICO Staff in attending
at the relevant premises for the purposes of such inspection, review or
evaluation and such costs shall be reimbursed to ICO in accordance with clause
17.

22.5     Any inspection and/or test and/or examination made or attended by ICO
Staff under this clause shall not relieve the Contractor of its responsibility
to conform to the requirements of this Agreement.

23       INTERMEDIATE PROGRESS REVIEW

23.1     In relation to each of the sub-systems referred to in Schedule 11
(Payment Schedule) comprising part of the Deliverables, the Contractor shall not
despatch any of such Deliverables from their respective places of origin to the
Sites until such time as the relevant sub-system shall have successfully
completed all of the Phase 1 Tests referred to in Section 5.1 of Annex 8A to the
Statement of Work.

23.2     Handover of an Acceptance Set shall not occur until such time as
Acceptance Set Completion has been achieved for the immediately preceding
Acceptance Set. Further, the Contractor shall not commence the upgrade and
integration of a preceding Acceptance Set until Handover of the current
Acceptance Set has been achieved. Nothing in this clause 23.2 shall preclude the
Contractor from undertaking activities (including Phase 3 IGF Tests) preparatory
to commencing the next, or subsequent, Acceptance Sets notwithstanding that the
immediately preceding Acceptance Set Completion may not have been achieved. For
the avoidance of doubt, the undertaking of activities preparatory to commencing
the next, or subsequent, Acceptance Sets shall not include the making available
by ICO, to the Contractor, of any SANs and the NMCs

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previously handed over to ICO, unless specifically agreed by ICO.

23.3     ICO shall, in its absolute discretion, be entitled to waive compliance
with the timing requirements of clauses 23.1 and 23.2 in whole or in part and
subject to such terms and conditions as it may think fit, but any such waiver
shall not excuse or relieve the Contractor in any way from the requirement to
ensure that the relevant Deliverables satisfy the relevant Phase 1 or Phase 3
Tests.

[24]     NOT USED.

PART E - DELIVERY AND INSTALLATION

25.      SITE ACCESS

25.1     ICO Shall, no later than 4 weeks before the Ready for Installation Date
for each Site established in the Master Level Schedule, advise the Contractor of
the anticipated availability of the Site on the scheduled Ready for Installation
Date.

25.2     If ICO can reasonably foresee that the actual availability of a Site
will be later than the scheduled Ready for Installation Date, the parties shall
meet to determine the consequences to the Contractor's delivery and installation
programme and the action that can be taken to mitigate such consequences shall
be agreed in a Change Order in accordance with clause 9.

26       TRANSPORTATION TO SITE

26.1     The Contractor shall have sole responsibility for the shipment and
transportation of the Deliverables from the place of manufacture to, and
unloading and placing into suitable and secure storage at, a port of destination
in, and as selected by the Contractor, the country of the relevant Site. The
Contractor shall promptly upon arrival of the Deliverables at the port of
destination notify ICO in writing, and any agents designated by ICO, of the
storage location of the Deliverables.

26.2     ICO shall promptly arrange for customs clearance of the Deliverables at
such port of destination in accordance with clause 28.

26.3     Following customs clearance in accordance with clause 28, the
Contractor shall have sole responsibility for, and shall arrange promptly,
inland transportation from an ICO designated location at the relevant port of
destination to the relevant Site.

26.4     The Contractor shall arrange shipment and transportation for the
Deliverables to each of the Sites with reliable shipping and transportation
contractors experienced in carrying products of the type of the relevant
Deliverables.

26.5     The Contractor shall, 30 days before despatch of any of the
Deliverables to the relevant port of destination as referred to in clause 26.1,
notify ICO of the intended date of despatch, the mode(s) of transport and the
destination of the relevant Deliverables together with such other information as
ICO may reasonably require to assist ICO in arranging for customs clearance.

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26.6     The Contractor shall not, without informing ICO, arrange for any of the
Deliverables to be shipped to Sites via third countries. The Contractor shall
not arrange for any Deliverables to be shipped via a third country if by doing
so any delays or adverse treatment in importation or customs clearance will
result or may reasonably be anticipated. Notwithstanding having informed ICO of
any shipment via third countries, the Contractor will be liable for any
penalties imposed upon ICO by virtue of the shipment via such third countries.

27       PACKAGING

27.1     The Contractor shall be responsible for packing all the Deliverables in
a manner which, taking into account all hazards which may reasonably be
anticipated, will enable them to be transported from their point of origin to
the Site and stored at the Site without suffering any accidental damage,
environmental damage or deterioration. The Contractor shall be responsible for
replacing at its own cost, without impact to the Top Level Milestone Schedule,
any of the Deliverables which are damaged in transit and for reimbursing ICO for
any expenses it incurs as a consequence of improper packing, marking or method
of shipment.

27.2     The Contractor shall pack, mark and ship all items and components of
the Deliverables in accordance with the requirements of this Agreement and so as
to be in compliance with best commercial practice for protection and shipment
and for meeting transportation regulations. A packing list shall be included
with each shipment and a copy thereof transmitted to ICO by fax at the time of
despatch from the point of origin (or where the despatch is made by a
Sub-Contractor, the Contractor shall transmit such copy within 48 hours of the
time of despatch) and each delivery package shall be marked and cross referenced
to such packing list.

27.3     The Contractor shall, following delivery, remove from each Site all
packing materials and dispose of, reuse or recycle the same in a manner lawful
in the relevant country. No separate or additional charges are payable by ICO
for safe packing, handling or storage in transit except as provided in clause
28.

28       CUSTOMS CLEARANCE

28.1     ICO shall be responsible for all customs clearances and other
importation formalities which relate to any of the Deliverables in the country
in which the Site at which the same are to be installed is situated.

28.2     ICO shall pay all import and custom duties (including VAT or any
similar sales tax), customs clearance charges and fees (including any storage
costs incurred during the import and customs clearing process), incurred in
connection with the importation of the relevant Deliverables in the country in
which the Site at which the same are to be installed is situated. The Contractor
shall, when requested by ICO and subject to clause 28.5, use its reasonable
efforts to assist ICO in obtaining customs clearance of, and in satisfying any
other importation formalities relating to, the Deliverables at the port of
destination.

28.3     The Contractor shall on a timely basis provide ICO with originals, or
where appropriate copies, of:

         (a)      all relevant shipping documents;

         (b)      manufacturing certificates;

         (c)      fully completed applications for import clearances; and

         (d)      if required, other usual customs clearance and importation
                  documentation if required for the importation of goods into
                  the relevant country,

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relating to the Deliverables for signature and submission by ICO (where
appropriate).

28.4     No later than 60 days prior to the scheduled shipment to the relevant
country of the Deliverables as shown in the Master Level Schedule, ICO shall
inform the Contractor of any special requirements to be applied or followed in
respect of the importation of such Deliverables to the relevant country and the
Contractor shall meet such special requirements.

28.5     If the Contractor shall in providing the additional assistance
requested by ICO under clause 28.2 or in fulfilling any special requirements
notified under clause 28.4 incur additional cost then, subject to supplying to
ICO reasonable evidence of such additional costs incurred, ICO shall reimburse
the same to the Contractor in accordance with clause 17.

28.6     In the event that any objections or difficulties are anticipated or
encountered in any country which might result in the customs clearance or
importation procedures of the relevant Deliverables being delayed beyond 15 days
after arrival for customs clearance of the relevant Deliverables in the relevant
country (commencing with the first working day in that country after that on
which the Contractor shall have provided notification in accordance with clause
26.1 and the documentation referred to in clause 28.3), ICO shall promptly
notify the Contractor of the nature and cause of the delay (if known).

28.7     The Contractor shall identify and assess as soon as possible after
receiving any notification under clause 28.6 any negative effects upon the
Master Level Schedule and the parties shall discuss the appropriate and
necessary action to minimise such effects.

28.8     If customs clearance or the importation of any of the Deliverables into
the country in which the Site at which the same are to be installed is situated
is delayed beyond the period specified in clause 28.6 and the Contractor shall
have fully complied with its obligations under clauses 26 to 28 inclusive in
relation to such Deliverables then, subject to the Contractor demonstrating to
the reasonable satisfaction of ICO that the delay in the importation or customs
clearance of the relevant Deliverable was the direct cause of an actual delaying
the Top Level Milestone Schedule (as it relates to the Site for which such
Deliverables were intended and to any consequential effect on the relationship
between that Site and any other Sites) shall be adjusted for a period not to
exceed the lesser of:

         (a)      the actual period of delay in the Top Level Milestone Schedule
                  resulting directly from the delay in importation or customs
                  clearance of the relevant Deliverables; or

         (b)      the number of days in excess of the period referred to in
                  clause 28.6 which were required for actual importation or
                  customs clearance of the relevant Deliverables to be achieved.

28.9     For the avoidance of doubt, ICO shall not be responsible for and
clauses 28.1 to 28.8 shall not apply to:

         (a)      the importation by the Contractor or any Sub-Contractor of any
                  installation and test tools, equipment, materials or other
                  effects (including personal) in connection with this
                  Agreement; or

         (b)      any Deliverables which are imported more than once into any
                  country in which a Site at which the same are intended to be
                  installed is situated, whether the second or subsequent
                  importation is into the same or any other country to the
                  initial importation, otherwise than as a result of a direction
                  by ICO.

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28.10    In the event that any of the circumstances in clause 28.9(b) apply:

         (a)      ICO shall at the Contractor's request assist the Contractor
                  in, and in appropriate circumstances handle on behalf of and
                  at the expense of the Contractor, the importation and customs
                  clearance of the relevant Deliverables; and

         (b)      the Top Level Milestone Schedule shall not be extended even if
                  delays or difficulties are encountered in the customs
                  clearance or importation procedures.

29       INSURANCE

29.1     The obligations in this clause 29 shall apply until such time as risk
in the relevant Deliverable shall pass to ICO. The Contractor shall as from the
time of creation of all or any part, including components, of the Deliverables
maintain insurance against loss, damage or destruction for all of the
Deliverables then in existence for their full replacement cost, including costs
associated with expedited repair or replacement and delivery to, and
installation at, the location where the affected Works are being, or are to be,
performed.

29.2     The Contractor shall, in the event of the loss, damage or destruction
of any of the Deliverables at any time before the Handover Dates for Acceptance
Sets 1 to 4 of the relevant Deliverable, use its best efforts to procure the
provision of any repair or replacement for any of the Deliverables or any
component thereof and to take such other actions as the Contractor deems
appropriate in order to avoid or to minimise all adverse effects on the Master
Level Schedule and the Top Level Milestones as a consequence of the loss, damage
or destruction of any Deliverables.

29.3     ICO shall be nominated as joint insured in respect of all of such
Deliverables and their components and shall be loss payee. Within three months
of the date of this Agreement ICO shall grant to the Contractor an appropriate
power of attorney enabling the contractor to negotiate with, settle and collect
any claims from the insurers of any of the Deliverables or any carriers, bailees
and/or other parties responsible for loss or damage to any part or component of
the Deliverables. The Contractor shall hold any amount so received in trust on
behalf of ICO until the same shall be applied in payment for any repair or
replacement Deliverables or shall be paid to ICO.

29.4     ICO at its sole discretion may direct that the Contractor not proceed
with the repair or replacement and delivery as provided in clause 29.2 and
instead require that the Contractor and ICO co-operate to procure that the
proceeds of insurance be paid directly to ICO and the Contractor will not be
required to proceed with any such repair or replacement or delivery.

29.5     To the extent that ICO's direction under clause 29.4 shall adversely
affect the ability of the Contractor to comply with the Top Level Milestone
Schedule and any applicable Top Level Milestones, to the extent that either
party can demonstrate the same to be required, the provisions of this Agreement
(including if necessary the Payment Schedule, the Top Level Milestone Schedule
and Top Level Milestones) shall be adjusted in an equitable manner.

29.6     The Contractor shall produce evidence (and an English translation) to
ICO of its compliance with clauses 29.1 and 29.3 from time to time upon request
and no less frequently then once a year within one month following the renewal
date of the Contractor's policy.

30       OWNERSHIP

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Ownership of the Deliverables shall pass to ICO upon the relevant Deliverable
being loaded on board a ship, aircraft or other means of transport bound for
export from the country of origin provided that where any Site is located in the
country of origin, ownership shall pass upon the relevant Deliverable arriving
at the relevant Site.

31   DELIVERY

31.1 The Contractor shall be responsible for the delivery of the Deliverables to
the Sites in accordance with the Statement of Work and the Master Level
Schedule. The Contractor shall provide all materials, plant, equipment and
labour required to receive, off-load and place the Deliverables in position at
the Sites.

31.2 Upon arrival of each consignment or shipment of the Deliverables at each
Site, the Contractor shall examine and confirm to ICO the identity of the
Deliverables which have been delivered and that they are in good condition and
ready for installation or, if this is not the case, what the position then is.
The Contractor shall also identify to ICO any Deliverables which have been
scheduled for delivery at that Site by that time but which have not then been
delivered (or which have been delivered but are either defective or damaged and
in need of replacement or repair) and, promptly, the Contractor shall deliver to
ICO a report setting out the impact on the Master Level Schedule and for
completing the Works and all applicable testing requirements at that Site on or
before the scheduled date for completion of the same and any remedial actions
which the Contractor intends to implement.

32   INSTALLATION

32.1 The Contractor shall at each Site carry out the Works in accordance with
the Statement of Work and the IGFR, using a safe system of working and in
compliance with all local laws.

32.2 The Contractor shall (within a reasonable time taking into account the
nature of the damage), in a good and workmanlike fashion, repair or replace any
damage to the Site (including any of the buildings, fixtures, fittings or other
equipment on the Site) or to any of the Deliverables in the course of any aspect
of the installation of any of the Deliverables which has been caused by the
Contractor or any Sub-Contractors.

32.3 Save for those items specified in Annexes 2, 3 and 9 of the Statement of
Work, the Contractor shall be responsible for providing, or procuring the
provision, of all equipment, tools, consumables, spares and all other materials
and services required for the carrying out of the Works and the installation of
the Deliverables at all Sites. With respect to those items of equipment, tools,
materials, and services required for the installation of the Equipment and
Software which ICO is responsible for providing to, or procuring to be made
available for use by, the Contractor as specified in Annexes 2, 3 and 9 of the
Statement of Work, the Contractor shall be responsible for the proper care and
maintenance (including any losses or damages) of all such items and shall,
following the completion of the Works for which they are required, return all
such items to ICO at such location(s) as ICO may reasonably specify in the same
condition as they were provided (save where consumed in the case of consumables
or for normal wear and tear) and recalibrated if appropriate. The Contractor
shall be responsible for the costs of all transportation and insurance
associated with the provision by ICO to, and use and return to ICO of such items
by, the Contractor.

32.4 The Contractor shall ensure that its employees, its Sub-Contractors and
their employees observe all relevant laws regulations and practices relating to
the Sites and shall remove forthwith from the relevant Site, with or without the
request of ICO, any such persons failing to abide by any of these requirements.

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32.5 The Contractor acknowledges that the Sites on which the Works will occur
and adjoining land may have other existing equipment and operations which may be
carried out concurrently by third parties. The Contractor shall take all
reasonable and necessary actions (including the co-ordination of its activities
on any Site with any other activities of others affecting the same Site or any
adjoining land) so as to prevent such other existing equipment and concurrent
operations from suffering any damage or adverse effects as a result of the
Contractor's activities. In the event that the Contractor's activities cause any
damage to existing equipment or adversely affect other concurrent operations,
the Contractor shall immediately stop the activities giving rise to any such
damage or adverse effect and, in consultation with ICO or such other person as
ICO may direct, implement such remedial action as may be necessary to repair,
replace or rectify the damaged equipment or to prevent the adverse effect upon
concurrent operations.

32.6 The Contractor shall throughout the process of installation keep the Sites
in a clean and tidy condition and shall be responsible for keeping the Sites
free from rubbish and contamination arising as a consequence of its activities.
Following completion of the installation of the relevant Deliverables at each
Site, the Contractor shall promptly remove its effects, personnel (other than
those with a role continuing after installation), spare materials, plant,
machinery and any rubbish or other debris. The Contractor shall leave the Site
in a clean condition, ready to commence operations.

33   TESTING

33.1 The Contractor acknowledges that it must and undertakes that it will within
the timescales contemplated by this Agreement deliver to ICO fully integrated
and tested ICONET Ground Facilities capable of fulfilling the IGFR and the
Statement of Work.

33.2 In order to establish that the Works and the Deliverables are capable of
providing a fully functioning service, testing and retesting of each element is
required. The Contractor must ensure that the testing procedure set out in the
Statement of Work is fulfilled and ICO Staff shall be permitted to observe and
review any and all of the formal and informal tests referred to in Annex 8A of
the Statement of Work.

33.3 In the event that any part of the Deliverables shall fail any formal test
(as described in Annex 8A of the Statement of Work) as is referred to in clause
33.2 for any reason, the test procedures shall, after a reasonable opportunity
for the Contractor to remedy the cause of such failure, be restarted at the
discretion of ICO to a reasonable point to demonstrate the functionality and/or
the reliability of the Deliverables concerned.

33.4 The Contractor shall inform or confirm to ICO in writing (as appropriate)
at least 14 days in advance the date, time and location of all formal tests (as
described in Annex 8A of the Statement of Work).

33.5 In the event that any of the formal tests specified above:

     (a)  do not occur within 48 hours of the time scheduled for such test;

     (b)  is cancelled by the Contractor or Sub-Contractor with less than 48
          hours notice to ICO; or

     (c)  is carried out and the relevant Deliverable shall fail the such test
          and the same cannot be reperformed within 48 hours of the time it
          failed and ICO requests that it be retested pursuant to clause 33.3,

then the Contractor will reimburse ICO for any reasonable costs and expenses
incurred in attending the tests or inspection.

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34   RFT HANDOVER

34.1 In relation to such part of the Deliverables as comprise RFTs for use in
Other six TT&C Sites which ICO has designated as the TT&C Sites as set out in
the Statement of Work, the provisions of this clause shall apply.

34.2 On or before the RFT Availability Date applicable to each TT&C Site, the
Contractor shall ensure that (i) at such Site, two (or at the Contractor's
discretion any greater number) of the RFTs will be installed; (ii) all of those
RFTs that have been installed have successfully completed their Phase 2-1
Testing (as referred to in Annex 8A of the Statement of Work); (iii) all of the
required training at such Site shall have been provided to ICO Staff necessary
to train them to operate such RFTs competently; (iv) the required documentation
relating thereto as specified pursuant to the Statement of Work has been
supplied to ICO; and (v) the provisions set out in the IGFR and the Statement of
Work relating to such RFTs shall have been complied with.

34.3 The Contractor shall for a continuous period of three weeks following the
RFT Availability Date applicable at each of the Sites (other than the first Site
to be made available and at the IOT Site, where such continuous period shall be
six weeks) provide engineering support and assistance to ICO Staff at such time
as may be established by ICO at anytime falling within the period of three
months following the RFT Availability Date (provided that if such time shall not
be immediately following the RFT Availability Date applicable to the relevant
Site, ICO shall give the Contractor at least two weeks prior written notice of
the time at which such support and assistance is required), for the integration
of all of the installed RFTs with ICO's satellite TT&C and IOT systems so that
the same can, by the end of such integration period, be made ready for operation
and use by ICO as a satellite telemetry, tracking and control site assuming that
the TT&C and IOT systems meet their respective Interface Control Documents.

34.4 On the relevant RFT Availability Date, the Contractor shall make available
for use by ICO at the relevant TT&C Site two of the RFTs and shall procure that
at all times between the relevant RFT Availability Date and Handover Date
relevant to each Acceptance Set 1 to 4 ICO has at each TT&C Site a minimum of
two RFTs continuously available for use and operation in a fully functional
mode, in connection with ICO's TT&C and IOT activities.

34.5 Without affecting the requirements of clause 34.4, following the RFT
Availability Date and the installation and successful Phase 2-1 testing of any
of the remaining RFTs at any TT&C Site, the Contractor shall make such other
RFTs available for use by ICO in connection with ICO's TT&C and IOT operations
at a single time of the Contractor's choosing and shall, at each TT&C Site,
provide for a continuous period of three weeks engineering support and
assistance to ICO Staff for integration of the RFTs with ICO's satellite TT&C
systems. Any such RFT shall not, for the remaining provisions of this clause, be
regarded as available to ICO until the provision of such engineering support and
assistance has been completed.

34.6 ICO acknowledges that at certain times the Contractor will need to carry
out testing at the Site of the Deliverables comprising the entire SAN or major
aspects thereof and accordingly it may be necessary for ICO to switch its TT&C
and IOT operations at the Site to use another of the available RFTs.

34.7 The Contractor shall, in circumstances where its testing procedures require
the use of RFTs at a particular Site, ensure that its use of those RFTs does not
interfere with ICO's TT&C and IOT

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operations at the Site and it will liaise with ICO to ensure that there are no
interruptions which cause any risk to necessary TT&C and IOT operations.

34.8 ICO undertakes that it will, under the supervision of properly trained
personnel, operate and maintain all of the RFTs made available to ICO by the
Contractor under this clause 34 only for ICO's TT&C and IOT operations at the
Site and in accordance with the operation and maintenance manuals provided by
the Contractor and will otherwise take all reasonable steps to keep the relevant
RFTs secure and free from interference and abuse.

34.9 During the period between the RFT Availability Date and the Handover Dates
for the relevant RFTs, all such RFTs which the Contractor has made available for
use by ICO under this clause 34, but which have not been handed over to ICO,
shall nevertheless remain at the risk and under the ultimate control and
responsibility of the Contractor.

34.10 If in the period referred to in clause 34.9, ICO shall determine that
there is any defect or deficiency in any of the Equipment or Software or Works
relating to the RFTs which have been made available for its use, it shall
promptly notify the Contractor of this, in writing. The Contractor shall,
wherever practicable, immediately make another RFT at that Site available for
use by ICO. Where that is not practicable (including by reason of such other
RFTs not yet having been integrated with ICO's TT&C equipment), then the
Contractor shall implement such repairs, replacements or alterations as shall be
required to ensure that there is no interruption in ICO's TT&C and IOT
operations.

35   ACCEPTANCE

35.1 Upon Handover of any SANs and/or NMCs comprised within each of Acceptance
Sets 1 to 4, the Contractor shall, in an orderly manner, at the relevant Sites
hand over to ICO Staff all such Deliverables (save and except for Training which
shall be handed over in accordance with a training schedule to be developed, by
the parties, in accordance with the principles and procedures set out in Annex
5) located at such Sites as are due to be handed over by such dates

35.1.1 Upon any Handover, ICO shall issue and deliver to the Contractor a
Handover Certificate in the form set out in Schedule 12. The purpose of the
Handover Certificate shall be to record the fact that Handover has occurred and
also ICO's formal receipt of the Deliverables. Until such time as the relevant
Handover Certificate has been provided by ICO in accordance with this clause,
neither ICO nor any SAN Operator, or their respective servants, agents or
representatives, shall use such Deliverables (or any part thereof) for the
purposes of ICO's activities or operations (save where otherwise specifically
provided in this Agreement).

35.1.1.2

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Upon completion, by the Contractor, of each of Acceptance Sets 1 to 4 ICO shall,
no later than 14 days of the date of Acceptance Set Completion, issue and
deliver to the Contractor an Acceptance Set Completion Certificate in the form
set out in Schedule 12.

35.1.2 Upon satisfactory completion of the testing of the Function Set 5 which
satisfies Acceptance Set 5 and the criteria set out in Annex 10, ICO shall issue
and deliver to the Contractor an Acceptance Set Completion Certificate in the
form set out in Schedule 12.

35.1.3 In respect of any Deliverables (other than Function Set 5) which are to
be handed over or in respect of any Works which are to be completed by the
Contractor after the Acceptance Set 4 Completion Date, upon the relevant
Deliverable having fulfilled its specification and any other applicable
requirements laid down pursuant to this Agreement or the relevant Works having
been completed to ICO's satisfaction, including the satisfaction of any test
criteria relevant to such Works, ICO will confirm formal receipt of the relevant
Deliverable or Works by issuing and delivering to the Contractor a Completion
Certificate (which shall be in the same form as the Acceptance Set Completion
Certificate, but modified as appropriate). Such certificate shall be signed by
the Supervising Officer on behalf of ICO and shall be sent to the Contractor by
facsimile.

35.1.4 The issue of a Handover or Acceptance Set Completion Certificate shall
not affect the obligations of the Contractor to deliver any other Deliverables
and/or to complete the Works and/or to remedy or to rectify any faults which may
affect the ICONET Ground Facilities or other Deliverables or Works at that time.

35.2.1 Notwithstanding the provisions in clause 35.1.1, and without prejudice to
the Contractor's rights under this Agreement, in the event ICO or any SAN
Operator or their respective servants, agents or representatives shall use
Deliverables which comprise only part of the Hardware and Function Set referable
to a given Acceptance Set for the purposes of ICO's operations or activities,
such use shall be deemed to be a Handover for the purposes of this Agreement.
ICO shall promptly, thereafter, issue and deliver to the Contractor the
requisite Handover Certificate.

35.2.2 For the purpose of clause 35.2.1 reference to ICO's "operations" or
"activities" shall not include those activities which ICO shall undertake
pursuant to clause 34.8, Annex 7B of the Statement of Work, save and except for
Section 2.3.1 thereof in respect of SANs and NMCs not yet handed over to ICO,
any activities it is agreed in writing shall be undertaken by ICO (including
ICONET Integration activities or any maintenance activities it is agreed between
the parties shall be undertaken by ICO) or other activities or operations as the
parties may agree, from time to time, shall be undertaken by ICO pursuant to
this Agreement.

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35.2.3 If any Handover occurs in circumstances described in clause 35.2.1 and
the Contractor shall not have completed its activities on all elements comprised
within the relevant Acceptance Set, including Handover and Acceptance Set
Completion, and the Contractor considers that it is not reasonably practicable
to complete its outstanding testing activities within the existing Schedule
then, to the extent the Contractor can demonstrate the same to be required, the
Schedule shall be adjusted in an equitable manner. The Contractor shall be
entitled, also, to claim, and ICO shall be obliged to pay, any direct costs
incurred by the Contractor associated with any re-allocation of, or addition to,
the Contractor's resources necessary to complete its activities.

35.2.4 If any adjustment to the schedule is required in accordance with clause
35.2.3, above, the parties shall mutually agree a date upon which ICO shall make
the Deliverables located at any relevant SAN(s) or NMC site(s) available to the
Contractor, to enable the Contractor to complete its activities. The
availability date to be agreed shall, in any event, occur within a reasonable
time following any event of Handover described within clause 35.2.1.

35.2.5 Following Handover, if ICO does not make available to the Contractor any
Deliverables in accordance with the date established by the parties under clause
35.2.4, ICO shall agree with the Contractor the earliest alternative date by
which Deliverables can be made available to the Contractor and, in this event,
the procedures and processes described in section 4.1.6 of Annex 7B shall be
applied, provided always that ICO's agreement shall not be unreasonably withheld
or delayed.

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36   RISK

36.1 The Deliverables shall be at the risk of the Contractor until 00.01 hours
GMT on the day immediately following the Handover Date referable to each of
Acceptance Sets 1 to 4 or, in relation to Deliverables comprised within
Acceptance Set 5, following Acceptance Set 5 Completion, at which time risk in
the same shall pass to ICO.

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36.2 The Contractor shall, from the point in time at which ICO makes the
Deliverables available pursuant to Section 4.1.5 of Annex 7B of the Statement of
Work, until such time as the Contractor completes its activities, assume
responsibility to take due care of such Deliverables. To the extent the
Contractor shall fail to take due care of the Deliverables and insofar as such
failure shall cause or result in direct physical damage to, or loss of, tangible
property of ICO then the Contractor shall use its best efforts to procure the
provision of any repair or replacement for any of such Deliverables or any
component thereof and to take such other actions as the Contractor deems
appropriate in order to avoid or minimise all adverse effects on the Master
Level Schedule and the Top Level Milestones as a consequence of the loss or
damage to such Deliverables.

37   INTERCHANGEABILITY

37.1 The Contractor shall ensure that at each of the Sites the items comprising
any part of the Deliverables, and in particular the Equipment and Software
supplied to fulfil any particular functional requirement shall, to the maximum
extent practicable and where lawful, be of identical design and shall carry the
same component reference as and be interchangeable with the equivalent items
supplied for use at any other of the Sites or by way of Spares, provided always
that ICO acknowledges that as a consequence of the Contractor's or the Principal
Sub-Contractors' policy of continuous improvement, in view of the time between
design and manufacture and the manufacturing timetable, certain items intended
to fulfil the same functional requirement, may differ from earlier items
supplied.

37.2 The Contractor shall at all times maintain a complete record of any changes
in specification of any such items and of any differences between the Sites in
the items installed by the Contractor in a format reasonably to be specified by
ICO. The Contractor shall within 30 days of each anniversary of this Agreement
(ending with the tenth such anniversary) provide an up to date and complete copy
of such record to ICO.

38   DELIVERY DELAYS

If and whenever it becomes apparent that progress of any of the Works is being
or is likely to be delayed, the Contractor shall forthwith give written notice
to ICO of the material circumstances including the cause or causes of the delay.
If practicable, such notice shall give particulars of the expected effects
thereof and estimate the extent of the expected delay in delivery or performance
beyond the date or dates set out in the Master Level Schedule. The Contractor
must specify what actions it is taking or intends to take to minimise and
recover such delay. The Contractor shall give such further written notices to
ICO, as may be necessary or as ICO may reasonably require for keeping up to date
the particulars and estimate referred to above including any material change in
such particulars or estimate.

[39] NOT USED.

40   WARRANTY

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40.1 Notwithstanding inspection, testing and the issue of a Handover Certificate
     by ICO in respect of any of the Works or the Deliverables or any other
     provision of this Agreement which purports to make acceptance by ICO
     conclusive, the Contractor guarantees that:

     (i)   throughout the period commencing with the Handover Dates for each of
           the Acceptance sets 1 to 4 up until 12 August 2002 (unless this date
           is extended as result of delays to such Handover Dates which are not
           attributable to ICO).

     (ii)  solely in respect of Function Set 5 to be provided at Acceptance Set
           5, throughout the period for 2 years commencing from the Acceptance
           Set 5 Completion Date.

     (iii) solely in request of Works and Deliverables with a Handover Date
           later than the Handover Date for Acceptance Set 4, throughout the
           period for 2 years commencing from the Handover Date for such Works
           or Deliverables.

     (a)   all the Deliverables are designed and manufactured so as to conform
           to the design, performance and manufacturing requirements of this
           Agreement as from time to time modified by the parties, and will
           perform in accordance with and deliver the functionality specified in
           those requirements;

     (b)   the Works generally, and the Deliverables in particular, and each
           component of either of them, is free from all defects in material or
           workmanship, latent defects or other defects which may cause the same
           to fail to conform to the specified functional and/or performance
           requirements of this Agreement as from time to time modified by the
           parties;

     (c)   each Deliverable functions in such a way that, in conjunction with
           others of the Deliverables, it fulfils the IGFR;

     (d)   the contents of the documentation comprised within the Deliverables
           are correct and free from defects or faults (failing which clause
           40.12 shall apply); and

     (e)   the contents of the Training courses and materials comprised within
           the Deliverables are correct and free from defects (failing which
           clause 40.13 shall apply).

40.2 In the event of a failure of any item of the Works or Deliverables or any
component or part of any such item to meet the conditions specified in clause
40.1, the Contractor shall at its own cost take such actions and carry out such
additional Works promptly to repair or replace or correct such affected items or
components or parts as are necessary to retain and/or restore the specified
functional and/or performance requirements and without any adverse impact on the
Contractor's compliance with the Master Level Schedule. The Contractor shall
prepare and furnish to ICO data and reports applicable to any corrective action
required as set out in this clause 40, including but not limited to revision and
updating of all affected data called for under this Agreement and the Contractor
shall bear the cost thereof.

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40.3 If the Contractor fails to repair or replace such items or parts promptly
in accordance with this clause 40 then the Contractor shall pay the costs
incurred by ICO in procuring such items or parts from another supplier and
accomplishing the repair or in modifying such items or parts or other parts of
the Works and/or Deliverables in order to achieve the specified functional
and/or performance requirements. Any action taken by ICO pursuant to this clause
40.3 shall not affect the Contractor's warranty. ICO shall use reasonable
efforts to notify the Contractor of its intention to exercise its rights under
this clause 40.3 a reasonable period in advance of so doing.

40.4 Any item of the Works or Deliverables or any component or part of any such
item corrected or furnished in replacement shall be guaranteed on the terms of
this clause to the same extent as would have applied if the item or part
concerned had initially formed a Deliverable. Where the corrected or replacement
item or part of a Deliverable (not being a printed circuit board or an item of a
similar nature) is brought into operation as a part of the ICONET Ground
Facilities more than twelve months after the commencement of the warranty period
referred to in clause 40.1 applicable to such item or part, this guarantee shall
continue for the period of twelve months from the date of the installation and
bringing into operation at a Site of that replacement item or part. In addition,
the period of warranty relating to any item or part supplied as a Spare shall
run for a period of 24 months after the date referred to in clause 40.1 as the
date of commencement of the warranty in respect of the Deliverables originally
supplied or if later until the expiry of the period of twelve

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months from the date of the installation and bringing into operation at a Site
of that Spare as a replacement item or part.

40.5 Upon ICO becoming aware of the occurrence of any defect in or fault
affecting any of the Works or any other item which is subject to the
Contractor's guarantee:

     (a)  ICO shall submit to the Contractor a written fault report in the
          agreed form (the form and content of which is to be agreed between the
          parties within 9 months of the date of this Agreement) describing, so
          far as it is able, the symptoms of the failure and, to the extent
          possible, identifying the item(s) or part(s) causing such failure or
          having a defect;

     (b)  if ICO reasonably considers immediate rectification of the defect or
          fault is required to prevent or minimise the risk of damage or injury
          or performance degradation to :

          (i)  the operators of the Equipment or Software; or

          (ii) the Equipment or Software itself; or

          (iii) the location in which the Equipment or Software is installed; or

          (iv) other equipment or software located with or connected to the
               Equipment or Software,

          ICO shall include this information in its report and may (without in
          any way affecting its rights under this clause 40) proceed with
          rectification of the defect or fault to the extent reasonably
          considered necessary in the circumstances;

     (c)  the parties shall (other than in relation to Software), within 5 days
          of the Contractor's receipt of such report, agree the manner and time
          in which such defect or fault is to be rectified;

     (d)  ICO shall pack for shipment and arrange the shipment of any defective
          or faulty item(s) or part(s) that the Contractor directs be shipped to
          the NEC Team member premises as designated by the Contractor and in
          the case that the Contractor directs the travelling wave tubes (TWTs)
          be shipped, ICO shall use a TWT shipping container for returning the
          TWT if such a shipping container is available at the Site from which
          the shipment is to be made; and

     (e)  ICO shall arrange for the exportation of the defective or faulty
          item(s) or part(s), and, subject to clause 28.9, the re-importation
          for any repaired or replacement item(s) or part(s).

40.6 The Contractor shall provide the necessary information and documents for
the re-importation of any repaired or replacement items or parts (such
information and documents to be of a nature similar to those required for the
purposes of clauses 26 and 28) and reimburse ICO, in accordance with clause
17.3, for all costs and expenses that ICO incurs:

     (a)  in complying with the requirements of this clause 40, including any
          packaging, transportation, shipping charges, customs duties, customs
          bonds, sales taxes, VAT or charges of a similar nature which ICO
          incurs for the exportation or re-importation of item(s) or part(s), or
          for performing any rectification work;

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     (b)  associated with disassembly and/or re-assembly of larger items or
          parts where their disassembly is required for the purpose of enabling
          fault diagnosis to take place and/or removal and/or replacement of any
          other affected item or part.

40.7 In the case of an Equipment defect or fault, the Contractor will, at its
discretion, repair or replace at its own cost the defective or faulty Equipment
in a timely manner so as to minimise any interruption or risk of interruption to
the functioning of the ICO System and the Contractor shall take all such actions
as are reasonably required to restore functionality to the ICO System to the
same level as it was immediately prior to, or should have been in the absence of
(but without imposing any obligation on the Contractor in respect of unconnected
defects or faults in the elements of the ICO System other than the ICONET Ground
Facilities), such defect or fault and use its best efforts to avoid and minimise
any interruption or risk of interruption to the functioning of the ICO System.

If, at the relevant Site, ICO shall have an appropriate Spare, in order to avoid
and minimise any interruption or risk of interruption to the functioning of the
ICO System, ICO shall use the same to replace the defective or faulty Equipment
but without prejudice to the obligations of the Contractor, at no cost to ICO,
to supply a replacement for such Spare and to attend the Site to make any
necessary repair to the item or part of the Equipment suffering the defect or
fault.

In the absence of ICO holding an appropriate Spare at the relevant Site or where
the Contractor is not able to implement an immediate repair or replacement of
the defective or faulty Equipment, ICO may, if possible and where it urgently
requires the availability of the relevant Equipment, make immediate repairs to
any defective or faulty Equipment without affecting any of its rights under this
clause 40.

40.8 In the event of any Software defect or failure:

     (a)  ICO shall inform the Contractor of the nature of the Software defect
          or fault (so far as it is able to identify the same) in the agreed
          manner, following the reporting, fault escalation and required
          response processes to be agreed between the parties (which process
          shall be agreed not less than 6 months before the scheduled
          commencement of the Warranty period specified in clause 40.1);

     (b)  the Contractor will analyse the reported Software defect or fault and
          the Contractor shall, at no cost to ICO, supply a temporary fix to
          rectify the Software defect or fault without avoidable delay and in a
          timely manner so as to minimise or avoid any interruption or risk of
          interruption to the functioning of the ICO System and minimises the
          effects of the defect or fault;

     (c)  the Contractor, at no cost to ICO, will notify ICO by telephone,
          facsimile or e-mail how to fix the defect or fault using Site
          personnel, or make and supply the "bug" fix, maintenance release or
          update; and

     (d)  the Contractor shall, at no cost to ICO, take all such actions as are
          reasonably required to restore on a permanent basis functionality to
          the ICO System to the same level as it was immediately prior to, or
          should have been in the absence of (but without imposing any
          obligation on the Contractor in respect of unconnected defects or
          faults in the elements of the ICO System other than the ICONET Ground
          Facilities), such defect or fault and will use its best efforts to
          avoid and minimise any interruption or risk of interruption to the
          functioning of the ICO System and will as rapidly as is possible,
          using the best efforts of the NEC Team, and in any event within three
          (3) months (or such longer time as may be agreed by ICO) of the
          occurrence of the Software defect or fault, prepare and issue a
          permanent fix to the Software for installation at all Sites where the
          Software is installed.

40.9 The Contractor will, where any defect or fault cannot for any reason be
repaired or rectified in accordance with clauses 40.7 or 40.8, at its own cost,
dispatch appropriately qualified engineer(s) to

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the Site to identify and repair or rectify any defective or faulty Equipment or
Software without avoidable delay and within a time period which minimises the
effects of such defect or fault. ICO shall use reasonable efforts in the period
ending on 12 August 2002 or such later date as shall be determined by reference
to clause 40.1 to hold a Spare of such items at such Sites as has been
recommended on a reasonable basis by the Contractor prior to the date of this
Agreement. save where the recommended Spare has been used already at a Site for
an Equipment defect or fault (and it has not been replaced or returned to the
relevant Site by the Contractor), to reinstate any Spares which are used. The
Contractor will have no obligation under the terms of this clause 40 in respect
of damage arising solely from a failure by ICO to maintain Spares in accordance
with this clause 40.9.

40.10 The Contractor will, during the period of three years from Acceptance Set
5 Completion Date, submit a written report quarterly within one month after the
end of the relevant quarter summarising:

     (a)  for each of the Sites, all Equipment defects or faults which were
          notified by each NEC Team member during the previous quarter and
          identifying how they were processed for repair or replacement;

     (b)  for each of the Sites, all Software defects or faults which were
          reported to each NEC Team member during the previous quarter and
          identifying how they were rectified;

     (c)  an analysis of the trend of Equipment and Software defects or faults
          of which members of the NEC Team have become aware (both as a
          consequence of paragraphs (a) and (b) above and, separately, from
          other sources), including re-occurring defects and faults and proposed
          remedial actions and the periods taken to implement the same, by
          Equipment and Software type and source;

     (d)  for Equipment repairs or replacements, the average turnaround time,
          the longest turnaround time with the reason and the number and
          description of those remaining to be implemented with the predicted
          date for completion and time period since the defective or faulty item
          or part was first reported as faulty or defective and returned, for
          each NEC Team member;

     (e)  for Software temporary fixes, the average turnaround time, the longest
          turnaround time with the reason and the number and description of
          those remaining to be implemented with a predicted date for completion
          and total elapsed time from the date that any member of the NEC Team
          first received notification of the original fault or defect to its
          predicted date for implementation, for each NEC Team member;

     (f)  for Software permanent fixes, the number and description of those
          implemented during the period, the number and description of those
          remaining to be implemented and the number and description of those
          remaining to be implemented with a predicted date for completion and
          total elapsed time from the date any member of the NEC Team first
          became aware of the original fault or defect to its predicted date for
          implementation, for each NEC Team member; and

     (g)  such other information as ICO may reasonably require to assess the
          reliability of the Equipment and Software (including any individual
          parts, components, sub-systems and programs) and the efficiency and
          performance of the Contractor and its compliance with its warranty
          obligations, and in particular the means by which it is ensuring that
          there is no avoidable interruption to services provided through the
          ICO System as a consequence of any Equipment or Software defect or
          fault.

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40.11 If requested by ICO, the Contractor will provide ICO with a written report
describing the results of the analysis of any specific Equipment or Software
defect or fault notified to the Contractor in respect of any Equipment or
Software whilst the same is under warranty pursuant to this clause for which ICO
has requested a separate report. Any such report shall be provided promptly
following ICO's request and shall address all those matters which ICO shall have
prescribed in its request.

40.12 In the event of defects or faults in any of the content of the
documentation, the Contractor will:

     (a)  unless otherwise agreed by ICO, correct and re-issue the affected
          documentation within one month of the Contractor first becoming aware
          of the same in the same formats, quantities and to the same places of
          delivery as the provision of the original documentation;

     (b)  will make all necessary rectifications to any part of the ICONET
          Ground Facilities which has been affected adversely as a result of a
          defect or fault in the contents of the documentation; and

     (c)  if the functionality of the ICO System shall have been affected in any
          way by such defect or fault, at its own cost, take all such actions as
          are reasonably required to restore functionality to the ICO System to
          the same level as it was immediately prior to, or should have been in
          the absence of (but without imposing any obligation on the Contractor
          in respect of unconnected defects or faults in the elements of the ICO
          System other than the ICONET Ground Facilities), such defect or fault
          and use its best efforts to avoid or minimise any interruption or risk
          of interruption to the functioning of the ICO System.

40.13 In the event of incorrect or defective content of Training courses or
materials the Contractor shall:

     (a)  unless the parties agree otherwise, without delay and in each of the
          locations at which the incorrect or defective Training shall have been
          given, provide remedial Training in the same manner as the provision
          of the original Training;

     (b)  make all necessary rectifications to any part of the ICONET Ground
          Facilities which has been affected adversely as a result of incorrect
          or defective content of Training courses or materials; and

     (c)  if ICO shall demonstrate to the reasonable satisfaction of the
          Contractor that the functionality of the ICO System shall have been
          affected in any way by such defect or fault, at its own cost, take all
          such actions as are reasonably required to restore functionality to
          the ICO System to the same level as it was immediately prior to, or
          should have been in the absence of (but without imposing any
          obligation on the Contractor in respect of unconnected defects or
          faults in the elements of the ICO System other than the ICONET Ground
          Facilities), such defect or fault and use its best efforts to avoid or
          minimise any interruption or risk of interruption to the functioning
          of the ICO System.

40.14 The rights and remedies of ICO under this clause 40 are in addition to,
and do not limit, any other rights and remedies ICO may have. In particular,
ICO's rights under this Agreement arising out of fraud or such gross mistakes as
amount to fraud are not limited in point of time or by this clause.
Notwithstanding the time limits specified in clause 40.1, if ICO shall notify
the Contractor of a claim for breach of warranty under this clause 40 relating
to any latent defect in any of the Deliverables or other Works at any time
within five years after Acceptance Set 4 Completion Date for Acceptance Set 4
Deliverables and within five years after Acceptance Set 5 Completion Date for
Acceptance Set 5 Deliverables

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such claim shall be regarded as a claim properly made under this clause.

40.15 The warranty provisions of this clause will not apply to the following:

     (a)  operations or maintenance of the Equipment or Software by any person
          who has not been properly trained (except any representatives
          nominated or authorised by the Contractor or Sub-Contractors) or
          operations, maintenance, repair and inspection of the Equipment or
          Software carried out by any person other than in accordance with
          manuals, documents and information provided to ICO by the Contractor
          or any Sub-Contractor or any representatives nominated or authorised
          by the Contractor or Sub-Contractors;

     (b)  normal wear and tear;

     (c)  consumption of consumables (not earlier than the usual time periods or
          usage patterns during which those consumables may be expected to
          continue to perform);

     (d)  Equipment or Software that has been subject to alterations or
          modifications not authorised by the Contractor or any Sub-Contractor
          or any maintenance representatives nominated or authorised by the
          Contractor or Sub-Contractors;

     (e)  Equipment or Software failures that are associated directly with ICO's
          failure to maintain the operational environment specified by the
          Contractor; and

     (f)  the Deliverables required to be delivered under Annex 11 to the
          Statement of Work to which this clause 40 shall apply save to the
          extent specifically modified as set out therein.

40.16 The travelling wave tubes (TWTs) shall be free from defects in material
and workmanship under normal operating conditions within published ratings and
under normal use in accordance with the Contractor's operating instructions for
6,000 hours of heater operation or 18 months from the date of shipment from the
Contractor, whichever occurs first. If any defect in material or workmanship is
found in the TWT under said conditions within said period, the Contractor will,
at ICO's discretion, either replace the TWT at the price to be calculated
according to the formula (1) below or refund to ICO the amount to be calculated
according to the formula (2) below (Pro-Rate Adjustment), provided that notice
of any such alleged defect shall be given in accordance with this clause 40.

          (1)  Replacement Price = Applicable Selling Price of the TWT when the
               Order for the Replacement is Placed

                    x    Hours of Heater Operation
                         -------------------------
                             Warranted Hours

          (If the hours of TWT operation is less than five percent (5%) of the
          Warranted Hours, the Replacement Price shall be deemed zero (0)).

          (2)  Amount of Refund = Price of the TWT Paid by ICO

                    x    (Warranted Hours - Hours of Heater Operation)
                         ---------------------------------------------
                                       Warranted Hours

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          (If the hours of TWT operation is less than five percent (5%) of the
          Warranted Hours, the Amount of Refund shall be deemed equal to the
          Price of the TWT paid by ICO).

PART F - INTELLECTUAL PROPERTY RIGHTS

41   INTELLECTUAL PROPERTY RIGHTS AND CONFIDENTIALITY

41.1 ICO and the Contractor acknowledge that:

     (a)  NEC Team Intellectual Property is owned by the NEC Team member(s)
          generating such Intellectual Property Rights;

     (b)  ICO Intellectual Property is owned by ICO.

41.2 The Contractor hereby grants and shall procure the grant by the other
members of the NEC Team to ICO irrevocable worldwide non-exclusive paid-up
licences (with right to sub-licence) to use NEC Team Intellectual Property
(except for NEC Team Intellectual Property incorporated in Software, as provided
for in clause 41.3) incorporated by the NEC Team into the Deliverables delivered
by the Contractor solely for the purposes of operating or having operated in
accordance with the provisions of this Agreement the Deliverables in the ICO
System.

41.3.1 The Contractor hereby grants and shall procure the grant by the other
members of the NEC Team to ICO irrevocable worldwide non-exclusive paid up
licences (with right to sub-licence) to run the object code versions of Software
solely for the purposes of operating or having operated in accordance with the
provisions of this Agreement the Deliverables delivered by the Contractor in the
ICO System.

41.3.2 The licences granted in or pursuant to clause 41.3.1 do not include any
right to translate, amend, modify or adapt such Software in source code form or
in object code form. Upon request the Contractor will, and will procure that the
other members of the NEC Team will, provide such interface information as ICO
may reasonably request in order to make other computer programs interoperable
with any of the Software. Compliance with this obligation shall also be deemed
to be compliance in respect of that Software with clause 4.1.(i).

41.3.3 ICO shall not make any copies of the Software except for the purpose of
operating the Deliverables in the ICO System or for archive or back up purposes.

41.3.4 The Software licensed under this Agreement may be delivered in an
inseparable package also containing other computer programs. In order to avoid
doubt ICO is not granted any licence to use such other computer programs.

41.3.5 ICO shall treat all Software and other computer programs included in any
inseparable package as confidential and subject to the provisions of clause
41.6.

41.3.6 For the avoidance of any doubt ICO receives no ownership interest in any
of the Software or other computer programs included in any inseparable package
or in each case in any of the Intellectual Property Rights thereto.

41.4.1 ICO hereby grants to the Contractor and agrees to grant to each of the
other members of the NEC Team irrevocable worldwide, non-exclusive licences with
right to sub-licence to use the ICO Intellectual Property for the purposes of
developing, supplying, manufacturing, installing, operating, upgrading and
expanding the Deliverables for ICO.

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41.4.2 Without prejudice to the provisions of clause 41.6, ICO further agrees
not to assert any ICO Intellectual Property comprised in the Deliverables
against:

          (a)  the members of the NEC Team in respect of the development,
          manufacture or sale of equipment or software incorporating any ICO
          Intellectual Property comprised in the Deliverables; or

          (b)  the use by the members of the NEC Team or their third party
          customers of equipment or software acquired directly or indirectly
          from the members of the NEC Team incorporating any ICO Intellectual
          Property comprised in the Deliverables other than in or in conjunction
          with Satellite Based Communications Systems; or

          (c)  the use by the members of the NEC Team or their third party
          customers of equipment or software acquired directly or indirectly
          from the members of the NEC Team incorporating any ICO Intellectual
          Property (other than ICO Intellectual Property the subject of a patent
          or patent application) comprised in the Deliverables in or in
          conjunction with Satellite Based Communications Systems:

          (i)  where such ICO Intellectual Property is comprised in the system
               areas not identified as Key Features, after the Acceptance Set 4
               Completion Date; and

          (ii) where such ICO Intellectual Property is comprised in the system
               areas identified as Key Features after 1st January 2002,

          provided that:

               (i)  if any third party not being a member of the NEC Team
               receiving the benefit of the provisions of this clause 41.4.2
               asserts any Intellectual Property Rights against ICO, then ICO
               reserves the right to assert ICO Intellectual Property against
               that party; and

               (ii) if any NEC Team member asserts any Intellectual Property
               Rights other than in respect of a breach of clause 41, then ICO
               reserves the right to assert ICO Intellectual Property against
               that NEC Team member.

41.4.3 For the avoidance of doubt, nothing in clauses 41.4.1 and 41.4.2 shall be
construed as granting any licence under ICO patents to any third party customers
of any NEC Team member(s) to use such equipment.

41.5.1 The Contractor hereby undertakes that it will not and agrees to procure
that the other members of the NEC Team will not either alone or acting together
make available directly or indirectly for commercial use features which are new
and developed by or at the direction of the members of the NEC Team under this
Agreement in the system areas identified as Key Features to any other operator
of Satellite Based Communications Systems until 1st January 2002 without the
express written consent of ICO provided always that nothing shall restrict the
members of the NEC Team either alone or acting together from making available
directly or indirectly for commercial use at any time by any person features
which are the same as or substantially similar to the features which are new and
developed by or at the direction of the members of the NEC Team under this
Agreement in the system areas identified as Key Features where such features are
the result of work done independently of the work done under this Agreement or
from exploiting NEC Team Intellectual Property generated prior to the date of
this Agreement and without otherwise breaching the terms of this Agreement.

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41.5.2 For the avoidance of doubt the fact that work done independently of the
work done under this Agreement results in a notification under clause 9.4 to ICO
and a related change under clause 9 does not bring such work within the scope of
the restrictions on making available directly or indirectly for commercial use
features which are new and developed by or at the direction of the members of
the NEC Team under this Agreement set out in clause 41.5.1.

41.6.1 ICO on the one hand and the Contractor on the other hand may provide
Confidential Information to each other during the course of this Agreement and
all such disclosures of such information will be treated as confidential by the
party receiving the disclosure and subject to the provisions of clause 41.6.3,
the receiving party shall maintain such information in confidence and shall not
use or disclose such information except as expressly authorised in this
Agreement. Notwithstanding the foregoing, where any information is disclosed
orally or is visually displayed, then such information shall be regarded as
Confidential Information if identified as Confidential at the time of disclosure
and the disclosing party within thirty days from initial disclosure specifically
identifies in writing to the receiving party such oral or visually displayed
information as being "Confidential Information".

41.6.2 Each party agrees to use the same care and discretion to avoid
unauthorised disclosure, publication or dissemination of Confidential
Information supplied by the other party and the unauthorised use thereof as the
receiving party uses with respect to similar information of its own, but in no
event, less than reasonable care. Each party further agrees that commercial
information designated as Confidential Information shall not be disclosed to any
third party without the express prior written consent of the disclosing party.
Should it become legally necessary for the receiving party to disclose to a
third party certain of the Confidential Information supplied by the other party,
it shall be disclosed only to the extent required by law or court of competent
jurisdiction and to the extent permitted by law after prior written notification
to the other party of the requirement for disclosure.

41.6.3 The obligations of confidentiality and restrictions on use specified in
this clause 41.6 shall not apply to any information that:

     (a)  is already in the possession of the receiving party without obligation
          of confidentiality at the time of disclosure;

     (b)  is independently developed by the receiving party or any of its
          affiliates or subcontractors without access to or any use of any of
          the Confidential Information as evidenced by appropriate documents;

     (c)  is or becomes publicly available without breach of this Agreement and
          without the fault of the receiving party or any of the affiliates or
          subcontractors; or

     (d)  is lawfully received by the receiving party from a third party.

Specific information shall not be deemed to be in the possession of the
receiving party merely because it is embraced by more general information in the
receiving party's possession.

41.6.4 Each party shall use all reasonable endeavours, including inserting and
enforcing the appropriate contractual provisions in any agreements with any
subcontractors and by requiring the compliance by its employees with appropriate
obligations, to ensure the confidentiality of all Confidential Information
provided to it by the other party but so that nothing in this clause 41.6 shall
preclude any party from disclosing such information on such basis only for the
performance of and for the purposes contemplated by this Agreement to a third
party which has prior to receiving such information executed a confidentiality
agreement in favour of the receiving party and under which the receiving party
holds the benefit of such third party's undertakings on behalf of itself and the
party whose Confidential Information is so disclosed.

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41.6.5 The confidentiality obligations in this clause 41.6 shall survive the
expiration or termination of this Agreement for whatever cause.

41.7 Subject to clause 41.9 if any member of the NEC Team is not the legal and
beneficial owner of any part of the Intellectual Property Rights which it
incorporates into the Deliverables but only has a right to use the same pursuant
to a licence then ICO's right to use the same shall be such as is permitted by
the licence granted by the owners thereof to the relevant member of the NEC Team
and in the event that such licence prevents or restricts ICO's use of any
functionality of the Deliverables in connection with the ICO System the
Contractor shall use, and shall procure that the relevant member of the NEC Team
shall use all reasonable endeavours so as to obtain at minimal cost from such
third party as owns such part of the Intellectual Property Rights the right for
ICO to use the same without prevention or restriction as to any functionality of
the Deliverables. Any costs reasonably incurred by the relevant member of the
NEC Team in this connection shall be borne by that member of the NEC Team. If it
shall not, or it appears likely that it will not, prove possible to secure
appropriate rights for ICO to use or incorporate any such third party rights in
the Deliverables in connection with the ICO System, the Contractor shall at its
own cost, procure that a suitable alternative method of meeting the requirements
of the Deliverables shall be produced.

41.8 For the avoidance of doubt the parties hereby agree that the provisions of
clause 8 of the IPC continue to apply to Intellectual Property Rights comprised
in the deliverables supplied under the IPC or reduced into practice in the work
done under the IPC and that notwithstanding any of the provisions of clause 8 of
the IPC the provisions of this clause 41 shall apply to all work done pursuant
to this Agreement in the development and supply of the Deliverables.

41.9.1.1 ICO will indemnify each of the members of the NEC Team (including
Sub-Contractors or permitted sub-licensees of any member of the NEC Team)
against all claims, demands, actions, costs, expenses (including but not limited
to legal costs on a solicitor and client basis) and damages rising from or
incurred by reason of:

     (a)  any infringement or alleged infringement of US Patent Nos. 5,415,368;
          5,439,190; 5,433,726 and 5,554,624 together with any continuations,
          divisions, re-issues, re-examinations and foreign counterparts thereof
          arising out of the manufacture, use, sale, exportation or importation
          of the Deliverables; or

     (b)  any infringement or alleged infringement of any other Intellectual
          Property Rights arising out of the manufacture, use, sale, exportation
          or importation of those features of the Deliverables specified by ICO
          in the functional objectives and requirements of the IGFR and the
          Statement of Work.

41.9.1.2 The Contractor shall promptly notify ICO if any claim or demand is made
or action brought against any of the members of the NEC Team (or any
Sub-Contractor or permitted sub-licensee of any member of the NEC Team) to which
clause 41.9.1.1 may apply. ICO shall at its own expense conduct any litigation
arising therefrom and all negotiations in association therewith and the members
of the NEC Team hereby agree to grant to ICO exclusive control of any such
litigation and negotiations.

41.9.1.3 The NEC Team shall at the request of ICO afford to ICO all reasonable
assistance for the purpose of contesting any claim or demand made or action
brought against any of the members of the NEC Team (or any Sub-Contractors or
permitted sub-licensees of any member of the NEC Team) to which clause 41.9.1.1
may apply. ICO shall reimburse any of the members of the NEC Team for all costs
and expenses (including legal expenses) incurred in so doing.

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41.9.1.4 The Contractor shall not make any admissions which may be prejudicial
to the defence or settlement of any claim, demand or action for infringement or
alleged infringement of any Intellectual Property Rights to which clause
41.9.1.1 may apply.

41.9.1.5 If a claim or demand is made or action to which clause 41.9.1.1 may
apply or demand is made or brought ICO may at its own expense:

     (a)  procure a licence to use the relevant Intellectual Property Rights on
          terms which are approved by the Contractor (such approval not to be
          unreasonably withheld or delayed); or

     (b)  take such other action as the Contractor may agree (such agreement not
          to be unreasonably withheld or delayed) as appropriate to avoid or
          settle such claim, demand or action,

provided in each case, that ICO provides evidence reasonably satisfactory to the
Contractor that it has sufficient financial resources to meet any commitment
which it makes pursuant to this clause 41.9.1.5 on behalf of itself or any
member of the NEC Team.

41.9.2.1 The Contractor will indemnify ICO (including sub-contractors or
permitted sub-licensees of any member of ICO) against all claims, demands,
actions, costs, expenses (including but not limited to legal costs on a
solicitor and client basis) and damages arising from or incurred by reason of
any infringement or alleged infringement of any Intellectual Property Rights
relating to the use, possession, importation or exportation of the Deliverables
in connection with the ICO System by ICO or its sub-licensees save where such
claims, demands, actions, costs, expenses, losses or damages are the subject of
ICO's indemnity to the members of the NEC Team (and any Sub-Contractors or
permitted sub-licensees of the NEC Team) under clause 41.9.1.

41.9.2.2 ICO shall promptly notify the Contractor if any claim or demand is made
or action brought against ICO to which clause 41.9.2.1 may apply. The relevant
member of the NEC Team shall at its own expense conduct any litigation arising
therefrom and all negotiations in association therewith and ICO hereby agrees to
grant to the NEC Team exclusive control of any such litigation and negotiations.

41.9.2.3 ICO shall at the request of the relevant member of the NEC Team afford
to the NEC Team member all reasonable assistance for the purpose of contesting
any claim or demand made or action brought against ICO to which clause 41.9.2.1
may apply. The Contractor shall reimburse ICO for all costs and expenses
(including legal expenses) incurred in so doing.

41.9.2.4 ICO shall not make any admissions which may be prejudicial to the
defence or settlement of any claim, demand or action for infringement or alleged
infringement of any Intellectual Property Rights to which clause 41.9.2.1 may
apply.

41.9.2.5 If a claim or demand is made or action to which clause 41.9.2.1 may
apply or demand is made or brought, the relevant NEC Team member may at its own
expense:

     (a)  procure a licence to use the relevant Intellectual Property Rights on
          terms which are approved by ICO (such approval not to be unreasonably
          withheld or delayed); or

     (b)  take such other action as ICO may agree (such agreement not to be
          unreasonably withheld or delayed) as appropriate to avoid or settle
          such claim, demand or action,

provided in each case that the NEC Team member provides evidence reasonably
satisfactory to ICO that it has sufficient financial resources to meet any
commitment which it makes pursuant to this clause 41.9.2.5 on behalf of itself.

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41.9.2.6 The foregoing provisions of clause 41.9.2 shall not apply insofar as
any such claim demand or action is in respect of:

     (a)  the use by or on behalf of ICO or its sub-licensees of the
          Deliverables in combination with products services software or data
          not described in IGFR, the Statement of Work and the High Level System
          Description and not supplied by the NEC Team under this Agreement; or

     (b)  the alteration of any of the Deliverables otherwise than by a member
          of the NEC Team under this Agreement.

41.9.2.7 The members of the NEC Team shall notify ICO in writing should any of
them become aware of reasonable grounds to believe that the use of any of the
Deliverables with other products or services (not being Deliverables) with which
the NEC Team is aware that ICO will use the Deliverables may infringe the
Intellectual Property Rights of any third party.

41.9.3.1 Save as provided in clause 49.1.3.2, in no event shall:

     (a)  the NEC Team's entire liability to ICO (or any permitted
          sub-licensees) under clause 41.9; or

     (b)  ICO's entire liability to the members of the NEC Team (or any
          Sub-Contractor or permitted sub-licensee of any NEC Team member) under
          clause 41.9,

exceed $75,000,000 and the existence of one or more claims or lawsuits within
this clause 41.9 shall not extend this amount, and in no event shall the NEC
Team or ICO be liable for incidental, special or consequential damages incurred
by the other save and insofar as they are included in any claim by a third party
for which ICO or the NEC Team is indemnified under this clause 41.9.

41.9.3.2 The liability of ICO to the members of the NEC Team (or any
Sub-Contractors or permitted sub-licensees of any member of the NEC Team) under
clause 41.9.1.1(a) in respect of any claim against such party based upon US
Patent Nos. 5,415,368; 5,439,190; 5,433,726 and 5,554,624 or any continuations,
divisions, re-issues, re-examinations and foreign counterparts thereof shall be
unlimited.

41.9.3.3 Notwithstanding any other provisions in this Agreement, this clause
41.9 states the entire liability between ICO on the one hand and the Contractor
and the other members of the NEC Team on the other with regard to the
infringement of any Intellectual Property Rights in connection with the use of
the Deliverables in connection with the ICO System. For the avoidance of doubt
therefore wording appearing elsewhere in this Agreement relating to compliance
with laws, regulations and all similar terms shall not apply in respect of any
infringement or alleged infringement by the NEC Team of Intellectual Property
Rights of a third party or any related matters (including, without limitation,
clauses 4.1(g), 4.1(h), 4.1(n), 6.1(c), 6.1(d) and 64).

41.10 The provisions of this clause 41 shall (save in respect of clause 54)
prevail over any other provisions relating to Intellectual Property Rights
appearing elsewhere in this Agreement.

[42] NOT USED.

[43] NOT USED.

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PART G - CONTINUOUS SUPPORT AND OPTIONS

44   MANUALS AND TECHNICAL DIAGRAMS

The Contractor is required to produce and submit to ICO those operations and
maintenance manuals, instruction manuals, technical diagrams, technical drawings
and all other documents set out in Annex 6 of the Statement of Work.

45   TRAINING

The Works shall include training and instruction for ICO Staff in accordance
with Annex 5 of the Statement of Work so as to enable ICO Staff to operate all
functions of, and to maintain, the ICONET Ground Facilities.

The completion of the Works by the Contractor in respect of this clause 45 is,
for all purposes of this Agreement, dependent upon the parties jointly
establishing an effective means to enable the Contractor to implement this
element of the Works, based upon the provisions of Annex 5 of the Statement of
Work.

46   OPTIONS, SUPPORT SERVICES AND FUTURE SUPPLIES

46.1 The Contractor shall, and shall ensure that Sub-Contractors shall, provide
to ICO at ICO's option, at the specified prices (or where none has been fixed,
at fair and reasonable prices which in no event exceed the prices paid for
comparable items and services to be delivered under this Agreement) as
determined in accordance with Schedule 9 under this Agreement:

          (a)  the items of Equipment and the related Works described as the
               Options specified in Annex 1 of the Statement of Work;

          (b)  further supplies of the Equipment for a period to the end of 2010
               with extended availability subject to clause 46.4 and 46.5, at
               ICO's option, for an additional period of 5 years commencing on 1
               January 2011;

          (c)  further supplies of Spares for a period to the end of 2015 with
               extended availability subject to clauses 46.4 and 46.5, at ICO's
               option, for an additional period of 5 years commencing on 1
               January 2016;

          (d)  maintenance and support for the Software for a period to the end
               of 2015 with extended availability, at ICO's option, for an
               additional period of 5 years commencing on 1 January 2016;

          (e)  the availability of skills and resources for a period to the end
               of 2010 with extended availability, at ICO's option, for an
               additional period of 5 years commencing on 1 January 2011 for the
               provision of services to support further capacity and/or
               functional enhancements to the ICONET Ground Facilities or the
               ICO System, including the provision of system integration and
               programme management services;

          (f)  the availability of skills and resources for a period to the end
               of 2015 with extended availability, at ICO's option, for an
               additional period of 5 years commencing on

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               1st January 2016 for the ongoing operations and maintenance
               support, including consultative technical advice in relation to
               the Deliverables furnished under this Agreement;

          (g)  the availability of functional enhancements to the ICONET Ground
               Facilities or for the ICO System to deliver functionalities
               similar to those available in cellular communications systems,
               within timeframes to enable ICO to be competitive with such
               cellular communications systems;

          (h)  assistance and co-operation in the identification, development
               and implementation of future ICO System specific functionalities;
               and

          (i)  the Contractor should use its reasonable endeavours to obtain
               similar guarantees from its suppliers and Sub-Contractors for
               Equipment and Spares as have been supplied to the Contractor.

The options to extend the availability periods referred to in clauses 46.1(c),
(d), (e) and (f) may be exercised only if the option to extend the availability
period referred to in clause 46.1 (b) is exercised by ICO. ICO shall notify the
Contractor in writing of its exercise of the options to extend the availability
periods referred to in clauses 46.1 (b) to (f) at least one year prior to the
expiry of the original period.

46.2 This clause shall in no way bind ICO to order any particular quantity of
Equipment, Spares or services from the Contractor. The Contractor acknowledges
and agrees that ICO may, if ICO and a Sub Contractor so agree, enter into
separate contracts for the provision of operations and maintenance support and
advice.

46.3 The Contractor shall within 24 months of the date of this Agreement provide
ICO with a list of alternate manufacturers and suppliers, insofar as they exist,
for the Equipment, Software and Spares (detailing as a minimum the name and
address of the alternate source and the model or part numbers of the Equipment,
Software and Spares and the alternate source to which they refer) supplied by
each Sub-Contractor. The Contractor shall update this list once every 12 months.
The use of Equipment, Software or Spares from any supplier or manufacturer,
provided that they comply with the information provided by the Contractor, shall
not affect any warranties given by the Contractor under this Agreement.

46.4 If during the extended availability periods specified in clauses 46.1(b) or
(c) any member of the NEC Team, the affiliates of any member of the NEC Team, or
their direct sub-contractors intend to discontinue the manufacture of Equipment
or Spares the Contractor shall forthwith give 9 months' written notice to ICO of
such intention and afford ICO the opportunity (which shall be exercised within 6
months of receiving such notification) of ordering such quantities of Equipment
or Spares at prices determined in accordance with 46.1, as ICO shall reasonably
require and the Contractor shall procure the supply of such quantities at the
prices so determined. Alternatively, the parties may agree within the said
period of 6 months that the Contractor will sell or license to ICO, or procure
the sale and licence of, such drawings, patterns, specifications and other
information as ICO shall require to enable it to make or have made such
Equipment or Spares.

46.5 The Contractor shall take all reasonable efforts to ensure the continued
availability throughout the extended availability periods specified in clause
46.1(b) and (c) of Equipment and Spares from the NEC Team members, the
affiliates of any member of the NEC Team, and their direct Sub-Contractors. In
addition to the notification required under clause 46.4, the Contractor shall
inform ICO, as soon as it can reasonably be established, that Equipment and
Spares provided by the NEC Team members, the affiliates of any member of the NEC
Team, or its direct Sub-Contractors are becoming obsolescent and shall work with
ICO to minimise the input of such obsolescence on the ICONET Ground Facilities
and the ICO System, including proposals for the migration to newer or alternate
technologies.

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46.6 If during the period specified in clauses 46.1(b), (c) and (d), the
Contractor or any Sub-Contractor (in the absence of agreement as aforesaid)
either:

          (a)  fails to make available to ICO with reasonable despatch all such
               Equipment, Spares or Software as ICO shall require; or

          (b)  shall suspend payment of its debts generally, seek protection
               from its creditors or otherwise enter into any form of insolvency
               or bankruptcy proceeding (however described) or any of its
               creditors shall seize any of its assets (whether under any
               security interest or otherwise) or any moneys owned by it shall
               become due for payment by reason of acceleration or default on
               its part or its shareholders shall take steps or pass any
               resolutions to wind up (otherwise than in connection with a
               solvent reconstruction or amalgamation previously approved by ICO
               or any analogous thing by whatever name it is known, shall happen
               in any jurisdiction.

then the Contractor shall so far as he is legally entitled so to do and, if so
required by ICO as soon as reasonably practicable, deliver to ICO free of charge
such drawings, patterns, specifications and other information as are referred to
in clause 46.4 (to the extent that the same are derived from the person to whom
the circumstances referred to in (a) or (b) above apply, or where the
circumstances apply to the Contractor, all such items of the ContraCtor and all
of the Sub-Contractors) and which ICO shall be entitled to retain for such time
only as is necessary for the exercise by ICO of its rights under this clause and
which if the Contractor so requires shall be returned by ICO to the Contractor
in good order and condition (fair wear and tear excepted) and at ICO's costs and
expense.

46.7 If ICO shall exercise its right under clause 46.6 the Contractor shall also
grant or procure the grant to ICO without payment of any royalty or charge full
right and liberty to make or have made Equipment or Spares as aforesaid and for
such purposes only to use, make and have made copies of all drawings, patterns,
specifications and other information supplied by the Contractor to ICO pursuant
to this Agreement.

46.8 ICO undertakes for itself and on behalf of ICO Staff that all drawings,
patterns, specifications and other information obtained from the Contractor
under this clause shall be kept confidential and will not be divulged except to
such persons as it may be necessary to divulge the same to, for the purpose of
making or having made Equipment or Spares.

46.9 If the Contractor does not provide Equipment or Spares, ICO shall have the
right to obtain such Equipment or Spares directly from Sub-Contractors or any
other supplier and any additional cost incurred by ICO shall be recoverable from
the Contractor.

47   CONSUMABLE SUPPLIES

47.1 The Contractor shall before shipment of any of the Deliverables or any
components used therein supply a list of specifications for consumables required
in the operation of the ICONET Ground Facilities. This list shall be updated no
later than 3 months before the ACCEPTANCE Set 1 Handover Date.

47.2 ICO reserves the right to procure consumables to be used in and suitable
for the Deliverables that are in accordance with the specifications that have
been provided by the Contractor from such sources as ICO may deem appropriate.
Such procurement from a source other than the Contractor shall not invalidate
any rights of ICO under this Agreement.

47.3 If the Contractor fails to supply or update the specification list referred
to in clause 47.1, and the consumables procured by ICO for use in the operation
of the ICONET Ground Facilities causes a degradation or interruption in all or
any part of its operation the Contractor shall not be relieved of its warranty
obligations. In addition the Contractor shall reimburse ICO for the costs
incurred by ICO in ascertaining the appropriate specification to be applied for
any consumable.

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48   ATTACHMENTS TO THE EQUIPMENT

48.1 Without prejudice to clause 47, ICO shall have the right to attach to the
Equipment any equipment not supplied by the Contractor (the "Attachment").

48.2 If ICO notifies the Contractor in writing at least thirty days before it
proposes to make an Attachment the Contractor shall within thirty days of the
receipt of ICO's notice, respond to ICO with its consent to or rejection of the
proposed Attachment. If the Contractor notifies ICO of its consent to such
Attachment, then clause 48.4 will apply.

48.3 If the Contractor receives a notification under clause 48.2 it may give a
notice of rejection. Any notice of rejection shall be in writing and set out, in
the Contractor's reasonable judgement in all the circumstances, the possible
effects of the Attachments on the Deliverables and why the making of the
Attachment to the Equipment would or can reasonably be expected adversely to
affect the ICO System. A failure by the Contractor to respond to ICO within such
thirty day period shall be deemed to be consent.

48.4 Clauses 4 and 40 shall continue to apply to the Equipment (but not to the
Attachment) if the criteria in either of clause 48.2 or clause 48.3 are met.

48.5 If the criteria in either of clause 48.2 or clause 48.3 are not met, then
the Contractor shall be relieved of its obligations under clauses 4 and 40 to
the extent that it can demonstrate that such Deliverables are adversely affected
by the Attachment.

[49] NOT USED.

PART H - GENERAL

50   SURVIVAL OF CERTAIN PROVISIONS

50.1 Following the termination of this Agreement for any reason whatsoever, the
following clauses shall survive in full force and effect, without limit in point
of time:

     clause 4        (Primary Obligation of Contractor and Warranties)
     clause 15.1     (Price)
     clause 17       (Payment of Reimbursable Costs)
     clause 18       (Liquidated Damages)
     clause 30       (Ownership)
     clause 40       (Warranty)
     clause 41       (Intellectual Property Rights  and Confidentiality)
     clause 51       (Contractor's Liability for Damages or Breach)
     clause 52       (ICo's Liability for Damages or Breach)
     clause 54       (Consequences of Termination)
     clause 62       (Law and Jurisdiction)
     clause 66       (Agent for Service)
     clause 72       (Entire Agreement)

51   CONTRACTOR'S LIABILITY FOR DAMAGES OR BREACH

51.1 In the event that any breach of this Agreement or act or omission by the
Contractor or any of its Sub-Contractors or any of their respective affiliated
undertakings or the employees or agents of any of them in the performance of
their duties in connection with this Agreement:

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     (a)  causes or results in physical damage to or loss of any tangible
          property of ICO or of any ICO Staff or third parties; and/or

     (b)  causes or results in death or bodily injury to any ICO Staff or to
          third parties,

the Contractor shall indemnify ICO against all ICO's liabilities and costs
resulting therefrom or arising in connection with the same.

51.2 If and insofar as any breach by the Contractor of this Agreement (including
the inadequate performance or the non-performance of any of its obligations
hereunder) shall result in any losses, damages, costs or liabilities for ICO
(other than any physical damage or loss of tangible property as described in
clause 51.1), the Contractor shall, subject always to clause 51.3, indemnify ICO
against any liabilities and costs of ICO resulting therefrom, provided that the
total liabilities of the Contractor to ICO in respect of the design,
development, creation, delivery, installation or provision of any of the
Deliverables or arising from or in relation to any aspect of the ICO System
(whether under this indemnity or for breach of this Agreement or for negligence
or of whatsoever nature), including any liquidated damages paid or payable under
clause 18.1 but excluding any liabilities indemnified or to be indemnified under
clauses 41 or 51.1, shall not exceed in the aggregate 31% of the Price as the
same shall from time to time be adjusted in accordance with this Agreement.

51.3 Except in the circumstances described in clause 51.1(b), the Contractor
shall have no liability whatsoever to ICO for indirect, consequential, revenue
or other financial losses whether arising from breach of this Agreement or
negligence or otherwise (including for the avoidance of doubt any liability
which ICO may have to any Site Operators):

52   ICO'S LIABILITY FOR DAMAGES OR BREACH

52.1 In the event that any breach of this Agreement or act or omission by ICO or
any member of ICO Staff in the performance of their duties in connection with
this Agreement:

     (a)  causes physical damage to or loss of any tangible property of the
          Contractor or any of its Sub-Contractors or any of their respective
          affiliated undertakings or the employees or agents or any of them or
          of their staff or third parties; and/or

     (b)  causes death or bodily injury to any member of their staff or to third
          parties,

ICO shall indemnify the Contractor against all the Contractor's liabilities and
costs resulting therefrom or arising in connection with the same excluding any
indirect, consequential, revenue or other financial losses.

52.2 ICO will ensure that each of its agreements with Site Operators excludes or
limits, to the fullest extent permitted by the applicable law, any liability
which the Contractor or any other member of the NEC Team might otherwise have to
any Site Operator as a result of the incomplete performance or the
non-performance by the Contractor or any other member of the NEC Team of any
obligation assumed hereunder, except if and insofar as such liability may be in
relation to physical damage to or loss of tangible property, or death of or
bodily injury to any person.

52.3 In the event that a Site Operator shall bring a claim against the
Contractor or any other member of the NEC Team as a result of the incomplete
performance or non-performance by the Contractor or any other member of the NEC
Team of any of the obligations hereunder (the "claim"), ICO shall indemnify the
Contractor (for its own benefit or on behalf of the relevant member of the NEC
Team as the case may be) for any liabilities and costs directly resulting
therefrom, provided that:

     (a)  ICO shall not be liable to indemnify the Contractor or any other
          member of the NEC Team under this Clause 52.3 in respect of any claim
          for physical damage to or loss of tangible property, or death or
          bodily injury to any person; and

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     (b)  the Contractor shall procure that in respect of all claims made by any
          of the Site Operators against the Contractor or any other member of
          the NEC Team as referred to in this clause, the relevant member of the
          NEC Team against whom the claim is made shall bear in aggregate   *
          in each period of 12 months commencing on the 3rd March in
          each year, or in the case of Ericsson Limited   *   in aggregate
          in each such period, of claims arising during the relevant period
          (other than any amounts claimed in respect of any indirect,
          consequential, revenue or other financial loss or expense); and

     (c)  the Contractor shall procure that in respect of all those claims which
          are in respect of any indirect, consequential, revenue or other
          financial loss or expense made by any of the Site Operators against
          the Contractor or any other member of the NEC Team as referred to in
          this clause, the relevant member of the NEC Team against whom the
          claim is made shall in the period of six months after the date of
          execution of this Agreement bear the first   *   in aggregate
          for all such claims arising during the relevant period without
          recourse to ICO and, in each period of 12 months commencing on the 3rd
          September thereafter, bear the first   *   in aggregate for
          all such claims arising during the relevant period.

     (d)  ICO shall not be required to pay any amount by way of indemnity under
          this clause in respect of any particular claim in the event that the
          Contractor or any Sub-Contractor shall have, in respect of the events
          or circumstances giving rise to that claim, acted unlawfully,
          fraudulently, wilfully in breach of any of the obligations undertaken
          by the Contractor in this Agreement (whether or not binding on such
          Sub-Contractor) or negligently (as such expressions would be
          interpreted in the courts of England under English law)

ICO's indemnification of the Contractor or any other member of the NEC Team in
respect of any claim under this clause 52.3 shall be without prejudice to such
rights as ICO may have against the Contractor under this Agreement. The parties
shall use reasonable efforts to replace ICO's responsibility to indemnify the
Contractor and any other member of the NEC Team with mutually satisfactory
insurance arrangements as soon as possible.

52.4 ICO shall have sole conduct of the defence of any such claim as is referred
to in clause 52.3 on behalf of the Contractor unless either ICO shall fail
reasonably and diligently to defend the same or the Contractor shall reasonably
apprehend that one of the events referred to in clause 56.1 is about to arise in
relation to ICO. neither ICO nor the Contractor shall admit liability or
otherwise settle or compromise any such claim without the prior consent of the
other (such consent not to be unreasonably withheld). If the Contractor wishes
any claim which is the subject of this clause to be settled or compromised on
terms which ICO is not willing to settle or compromise on (including where ICO
is prepared to settle or compromise on terms which the Contractor finds
unsatisfactory), then if ICO shall pay to the Contractor the sum which it was
willing to pay to the Site Operator to settle or compromise the claim ICO shall
be released and discharged from all further liability in respect of such

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

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claim. The Contractor shall notify ICO promptly in the event of such claim being
made against it. ICO shall keep the Contractor informed of its progress on a
timely basis and, subject to the provisions of this sub-clause, keep the
Contractor indemnified against the consequences of its conduct of the claim.

53   ETHICAL STANDARDS

The Contractor undertakes to act, and to procure that its Sub-Contractors and
its or their employees or agents act in any business dealings in any way
relating to its arrangements with ICO, including the provision or procurement of
the provision of any services or goods pursuant to this Agreement, in an honest
and ethical manner and without resort to any unethical business practices,
including but not limited to bribery, corruption, extortion or the exertion of
improper or undue influence.

54   CONSEQUENCES OF TERMINATION

54.1 Upon termination of this Agreement, the Contractor shall, and shall procure
that each of the Sub-Contractors shall, deliver up to ICO all property of
whatsoever nature belonging to ICO or any ICO Staff which may be in its
possession or under its control or the control of any of their respective group
companies and affiliates and, so far as the same are employed in connection with
this Agreement, any of their Sub-Contractors, agents or advisers. The preceding
provisions shall apply mutatis mutandis to the Contractor and the
Sub-Contractors.

54.2 If this Agreement shall be terminated at any time ICO and any ICO Staff are
hereby and shall remain, notwithstanding such termination, fully authorised upon
reasonable prior notice to enter on to the Contractor's and its Sub-Contractor's
premises in order to dismantle and remove all property belonging to ICO or any
of its affiliates or any ICO Staff and the Contractor shall co-operate with and
assist such persons in such task and shall procure access (on reasonable prior
notice and at reasonable times) for such ICO Staff from, and place a parallel
obligation upon, its Sub-Contractors. ICO shall use all reasonable endeavours to
ensure that no unnecessary disruption is caused to the Contractor or such
Sub-Contractor by reason of the removal of ICO's property. The preceding
provisions shall apply mutatis mutandis to the Contractor and the
Sub-Contractors in relation to the Sites and the Site Operators.

54.3 If this Agreement shall be terminated by ICO pursuant to clauses 56.1,
56.2(a) or (b) the Contractor shall, and shall procure that all the
Sub-Contractors shall:

     (a)  deliver up to ICO all the Deliverables in their then current state and
          all materials which have been purchased for inclusion in the
          Deliverables;

     (b)  make available to ICO without cost all designs, drawings and plans
          which have been prepared in connection with or intended for use in
          relation to the Works;

     (c)  in relation to computer programs which are not new and have not been
          developed by or for the Contractor or the relevant Sub-Contractor
          under this or in connection with this Agreement, the necessary
          interfaces and licences to use such computer programs on the basis
          referred to in clause 54.4; and

     (d)  in relation to any other computer programs (including any which are
          new and/or developed by or for the Contractor or the relevant
          Sub-Contractor under or in connection with this Agreement) all source
          codes and object code versions thereof,

provided that if the Contractor shall be subject to any contractual restriction
preventing it from making the items referred to in (c) and (d) available to ICO,
the Contractor shall procure for ICO free access to the same for the purposes
referred to in clause 54.4. ICO shall treat all materials delivered up pursuant
to this clause as Confidential Information in accordance with the provisions of
clause 41.6.

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For the avoidance of doubt any incomplete equipment, designs, drawings, computer
programs or plans prepared under or in connection with this Agreement shall be a
Deliverable.

54.4 In the circumstances referred to in clause 54.3, the Contractor shall
grant, and shall procure that each of the other members of the NEC Team and its
and their Sub-Contractors shall grant, to ICO sufficient worldwide, perpetual,
irrevocable, royalty free licences (including rights for ICO to grant
sub-licenses) under any NEC Team Intellectual Property Rights which are
comprised in or which have been selected and identified for inclusion in any of
the Deliverables acquired by ICO pursuant to clause 54.3 to enable ICO to
complete the development, implementation and construction of the ICONET Ground
Facilities and such licences shall permit ICO, either itself or through any
third parties, to make any modifications thereto as are considered desirable in
order to enable ICO to complete the ICO System and bring the same into use. ICO
shall treat any Confidential Information included in any such Intellectual
Property Rights in accordance with this Agreement.

54.5 If this Agreement shall be terminated by ICO pursuant to clauses 56.2(c) or
(d), the provisions of clauses 54.3 and 54.4 shall apply save that:

     (a)  ICO shall, to the extent that the total sums paid by it in respect of
          Instalments of the Price (for the purpose of which calculation of all
          Financed Invoices shall be deemed to have been paid in full by ICO)
          are less than the total cost of those of the Deliverables which ICO
          has either received delivery of prior to the date of termination or
          which it shall take delivery of following such date, pay to the
          Contractor the amount of any shortfall (and where any Deliverable
          which ICO shall receive as a consequence is incomplete, the cost of
          the same shall be agreed between the parties);

     (b)  the Contractor shall, to the extent that the total sums paid to it in
          respect of Instalments of the Price (for the purpose of which
          calculation all Financed Invoices shall be deemed to have been paid in
          full by ICO) are greater than the total cost of those of the
          Deliverables which ICO has either received delivery of prior to the
          date of termination or which it shall take delivery of following such
          date, pay to ICO the amount of any surplus;

     (c)  the licences referred to in clause 54.4 shall be limited to the extent
          required to permit ICO to complete the development, implementation and
          construction of the ICONET Ground Facilities and such licences shall
          permit ICO, either itself or through any third parties, to make any
          modifications thereto as are required in order to enable ICO to
          complete the ICO System and bring the same into use,

but if ICO shall not require to take delivery of any of the incomplete
Deliverables or the materials purchased therefor, it may by notice to the
Contractor exclude the same in which case the foregoing provisions of this
clause 54.5 shall only apply to those Deliverables which ICO shall elect to
receive.

54.6 If ICO shall terminate this Agreement for convenience in accordance with
clause 56.3, the Contractor shall following receipt of such notice of
termination take the following actions:

     (a)  to the extent specified in the notice of termination, stop work under
          this Agreement on or as soon as reasonable practicable after the date
          of receipt of such notice and without delay take all necessary steps
          to wind down production and avoid incurring unnecessary further
          expense, except to the extent required to continue or complete those
          aspects of the Works which the notice of termination shall require to
          be continued or completed;

     (b)  place no further orders or sub-contracts for materials, services or
          facilities except as may be necessary for completion of those aspects
          of the Works which the notice of termination shall require to be
          continued or completed;

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     (c)  terminate orders and sub-contracts to the extent that they relate to
          the performance of Works which the notice of termination shall not
          require to be continued or completed;

     (d)  settle all outstanding liabilities and

     (e)  take such action as may be necessary, or as ICO may reasonably direct,
          for the protection and preservation of the property related to this
          Agreement which is in the possession of the Contractor or any
          Sub-Contractor and in which ICO has or may acquire an interest
          pursuant to the provisions of clause 54; and

     (f)  to the extent specified in the notice of termination, continue work
          under this Agreement.

54.7 The Contractor shall promptly following receipt of a notice of termination
given under clause 56.3 take all reasonable steps to minimise, limit and
quantify the costs and expenses incurred by the Contractor in connection with
the performance of its obligations under this Agreement and shall terminate any
sub-contracts, in so far as possible, on normal commercial terms (which may
include an allowance for the sub-contractors' proper commercial profit
determined in accordance with common practice in the industry concerned).

54.8 Within 60 days after determination of the cost of all Works terminated, the
Contractor shall submit to ICO its invoice in respect of the termination
Payment, and within 60 days after delivery by the Contractor of an invoice in
respect of the termination Payment, ICO shall pay the outstanding amount
thereof, subject always to compliance by the Contractor with clauses 54.10 and
54.11. The Termination Payment shall be the aggregate sum consisting of the
Direct Costs of all work done to the date of actual termination of the Works,
whether or not completed, together with pre-payments which are non-refundable to
the Contractor, and the settlement and other costs connected with the
termination of orders and sub-contracts pursuant to clause 54.7 less the total
of all amounts already paid by ICO to the Contractor in respect of the Works for
the purpose of which calculation all Financed Invoices shall be deemed to have
been paid in full by ICO, including for the avoidance of doubt all costs which
have been paid pursuant to clause 15, adjusted by agreement between the parties
(failing which as may be determined in accordance with clauses 65 and 62) where
required to take account of any failure of the Contractor to comply with clause
54.6.

The term "Direct costs" as used herein includes only those costs set out in
clause 54.9 which have been posted to the Contractor's books of account in
accordance with its standard accounting practice for commercial contracts,
consistently applied. To the extent that the Direct Costs relate to the internal
labour costs and expenses (other than tax and social security or similar costs)
of the members of the NEC Team and their respective affiliated companies such
sum shall be subject to a mark-up not exceeding   *   of such costs and
expenses.

In no event shall the Termination Payment, when aggregated with the amounts
already paid or deemed to have been paid by ICO to the Contractor in respect of
the Works, exceed the Price.

54.9 For the purposes of this clause 54, "Direct Costs" comprise:

     (a)  the full salary, payroll taxes and standard benefits and other direct
          employment costs of those personnel employed by any member of the NEC
          Team or by any of their respective affiliated undertakings for that
          period during which they can demonstrate that they have been actively
          engaged in the Works;

     (b)  the reasonable cost of all materials purchased by the NEC Team
          reasonably necessarily and wholly and exclusively for the purposes of
          fulfilling the requirements of this Agreement;

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     (c)  the reasonable and proper costs of Sub-Contractors employed by the NEC
          Team, where applicable, with the consent of ICO, necessarily for the
          purposes of fulfilling their obligations under this Agreement save to
          the extent such costs are taken into account pursuant to clause 54.7;

     (d)  the reasonable travelling and lodging costs of those members of the
          NEC Team's personnel who are assigned to work on a full time basis
          under this Agreement at locations outside the country of their usual
          employment and of those personnel whose travel is reasonably
          necessarily required for the purposes of implementing this Agreement;

     (e)  the office rental costs (apportioned by reference to the proportion of
          the floor area used by the Contractor exclusively for the purposes of
          this Agreement) associated with the Contractor maintaining a project
          office in the Hammersmith area or any replacement therefor during the
          currency of this Agreement; and

     (f)  the costs of delivering any items required to be delivered to ICO as
          referred to in clause 54.11.

but, for the avoidance of doubt, the following to the extent that they might
otherwise fall within any of the foregoing are excluded:

     (g)  all central overhead expenses including the costs of all support or
          liaison staff or staff whose principal activities are on matters other
          than this Agreement;

     (h)  office and equipment costs, depreciation, leasing and hire charges,
          any goods or materials of general application or for which there is
          use after the period of the Agreement, interest and like charges;

     (i)  licence fees, communications costs, other costs associated with the
          organisation and/or co-ordination of the NEC Team.

54.10 Payment of the Termination Payment shall be subject to the Contractor
justifying to ICO's reasonable satisfaction the amount of the costs and expenses
and any other adjustments so claimed and producing such evidence of such costs
and expenses as ICO may reasonably require. If ICO so requests, the Contractor
shall provide, and shall procure that any Sub-Contractors provide, sufficient
evidence to the external auditors of the Contractor (being a firm of independent
certified public accountants (or equivalent)) or, where such accountants are
unwilling to act in the capacity contemplated by this clause 54.10, another firm
of certified public accountants of international repute agreed between the
parties, to enable such accountants to certify to ICO that any and all costs and
expenses claimed by the Contractor from ICO in connection with the Termination
Payment have been properly incurred for the purposes of this Agreement and have
been properly computed. In the absence of such certification if so requested by
ICO, ICO shall not be obliged to pay any such amount claimed and, where such
accountants certify a lesser sum than that claimed by the Contractor, ICO shall
be obliged to pay only such lesser sum The accountants' fees for carrying out
such certification shall be borne by ICO.

If ICO disagrees with the amount of the Termination Payment claimed by the
Contractor, ICO shall pay so much of the amount claimed as is undisputed to the
Contractor within 30 days of receipt of the Contractor's invoice and the balance
shall be payable with 30 days after determination of the final amount due,
provided that if the amount in dispute shall exceed 25% of the Contractor's
claim ICO shall pay the disputed amount into the Escrow Account pending final
resolution of the amount of the Termination Payment.

54.11 Title to all complete Deliverables not previously delivered, any
incomplete Deliverable and any materials purchased for the purposes of and any
components which would have been incorporated

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into a Deliverable which is incomplete at the date of a termination notice given
under clause 56.3, shall, upon payment in full of all amounts due hereunder,
vest in ICO and the Contractor shall deliver, and procure that any
Sub-Contractor delivers, all such items to ICO (who shall accept delivery). All
such items of the Works which are under the custody or control of the Contractor
shall until delivery to ICO be insured by the Contractor at its cost.

54.12 The Contractor shall, and shall procure that each of the members of the
NEC Team and its and their Sub-Contractors shall deliver up forthwith to ICO
upon payment by ICO of the Termination Payment payable to the Contractor under
this Agreement all the documentation, drawings, plans, and specifications
produced for the performance of this Agreement to the extent not previously
delivered. The Contractor shall, and shall procure that each of the members of
the NEC Team and their Sub-Contractors shall, upon written request of ICO, grant
to ICO and such persons as ICO shall nominate, those rights as referred to in
clause 54.4.

54.13 If it is reasonably feasible for the Contractor to utilise elsewhere and
within a reasonable period for their intended purposes any materials purchased
for the purposes of and any components which were to be incorporated into the
Deliverables which are incomplete at the date of termination under clause 56.3,
ICO shall have the right to reject delivery of such components and the inclusion
of the cost of the same in the Termination Payment.

54.14 The Contractor shall use reasonable efforts to place sub-contracts on
terms that will enable the Contractor to terminate the same in a manner
consistent with this clause.

55.  FORCE MAJEURE

55.1 Force majeure refers to events extrinsic to this Agreement that are beyond
the reasonable control of, and not attributable to negligence or other fault of,
the party relying on such events to excuse its failure to perform. The term:

     (a)  excludes strikes or other events caused by labour disputes between any
          member of the NEC Team (which for this purpose includes all corporate
          bodies under the control of the body corporate which ultimately
          directly or indirectly has control of the relevant member of the NEC
          Team) and their employees;

     (b)  excludes any event giving rise to the party which would otherwise seek
          to rely on such event being actually or prospectively unable to
          perform any financial obligation under this Agreement; but

     (c)  (subject to paragraph (b) above), includes changes in the laws and
          regulations as referred to in clauses 63.5 and 63.6.

55.2 Any party whose ability to perform is affected by a force majeure event
shall take all reasonable steps to mitigate the impact of such event.

55.3 If the effect of a force majeure event is temporary, the party affected
shall, to the extent that the event of force majeure shall affect its ability to
perform its obligations under this Agreement, not be responsible for any
consequent delay, and any affected Top Level Milestone shall be extended
accordingly, if and only if notice of the event is given to the other party,
specifying in such notice that the affected party is treating the circumstances
as an event of force majeure, within ten (10) days after the event has come, or
should reasonably have come, to the affected party's attention.

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Upon or following receipt of such a notice, the non-affected party shall, to the
extent that the event of force majeure affecting the other party shall affect
its own ability to perform its obligations under this Agreement, be entitled to
treat such circumstances as an event of force majeure of its own.

At the time of the notice of the occurrence of the event or as soon thereafter
as possible, the party affected shall inform the other party of the extent of
the delay expected as a result of the event and propose possible measures which
could be taken in order to minimise such delay. As soon as the circumstances
constituting force majeure shall have ceased to have effect, the obligations of
the affected party shall continue.

55.4 An event of force majeure shall not excuse the obligation to make payment
of any invoice which was properly issued by the other party prior to the
commencement of the event of force majeure.

56   TERMINATION

56.1 Without prejudice to any other rights or remedies which the relevant party
may possess, either party ("the terminating party") shall be entitled to
terminate this Agreement in its entirety in the event that the other party ("the
non-terminating party") shall suspend payment of its debts generally, seek
protection from its creditors or otherwise enter into any form of insolvency or
bankruptcy proceedings (howsoever described) or any of its creditors shall seize
any of its assets (whether under any security interest or otherwise) or any
moneys owed by it shall become due for payment by reason of acceleration or
default on the part of the non-terminating party or its shareholders shall take
steps or pass any resolutions to wind up (otherwise than in connection with a
solvent reconstruction or amalgamation previously approved by the
non-terminating party) or any analogous thing by whatever name it is known,
shall happen in any jurisdiction.

56.2 Without prejudice to any other rights or remedies which ICO may possess,
ICO shall be entitled, without liability to the Contractor in respect of such
termination (but without prejudice to any obligations or rights under this
Agreement expressed to survive termination) to terminate this Agreement in whole
at any time by service upon the Contractor of a written notice in accordance
with clause 59 if:

     (a)  the Contractor, the Principal Sub-Contractors, or any of their
          respective Sub-Contractors to whom any material aspects of the Works
          shall have been subcontracted shall without reasonable cause, suspend
          the carrying out of the Works before Acceptance Set 5 Completion Date
          in any material respect or to any material extent and the Contractor
          is unable to satisfy ICO that it is or will be able to complete all or
          any substantial aspect of the Works in accordance with the Top Level
          Milestone Schedule; or

     (b)  the Contractor shall be in breach of any of its material obligations
          under this Agreement; or

     (c)  a force majeure event (as defined in this Agreement) has or might
          reasonably be expected to have a permanent or unavoidable effect on
          the ability of the Contractor to provide to ICO by Acceptance Set 5
          Completion Date (but without taking into account any adjustment which
          may be made to such date by reason of the force majeure event) the
          functionalities described in the IGFR across the complete ICONET
          Ground Facilities; or

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     (d)  a force majeure event (as defined in this Agreement) either has the
          effect of severely constraining ICO from complying with the terms of
          this Agreement (save insofar as this Agreement creates any financial
          obligation on ICO) or clauses 63.5 or 63.6 apply,

and in any case falling under clauses 56.2(a) or 56.2(b) the Contractor (or, as
the case may be, the Principal Sub-Contractors, or any of their respective
Sub-Contractors to whom any material aspects of the Works shall have been
subcontracted) fails to remedy or procure the remedy of the same within a period
of 30 days (or such longer period as may have been specified in the notice)
after receipt of written notice from ICO to the Contractor, requiring such event
to be remedied and in any case falling under clauses 56.2(c) or 56.2(d) the
relevant force majeure event continues on the date the notice of termination
would take effect in accordance with clause 59 provided that ICO undertakes that
it will not exercise its right to terminate this Agreement if ICO shall not have
issued its Acceptance Set 5 Completion Certificate to the Contractor within 135
days after the Acceptance Set 5 Completion Date so long as there shall be no
other circumstances in existence at any time during that period permitting ICO
to terminate this Agreement.

56.3 ICO shall be entitled, without liability to the Contractor in respect of
such termination other than to make such Termination Payment as may be payable
under clause 54 (and without prejudice to any obligations or rights under this
Agreement expressed to survive termination) to terminate this Agreement in whole
at any time for convenience by service upon the Contractor of a written notice
in accordance with clause 59 and may in its notice of termination require the
Contractor to continue or complete any aspect of the Works which shall then have
been commenced.

56.4 The Contractor shall be entitled to terminate this Agreement in whole at
any time by service upon ICO of a written notice in accordance with clause 59
if:

     (a)  the Contractor is owed any sum by ICO in excess of US$5,000,000 which
          shall have fallen due for payment and be payable in accordance with
          the terms of this Agreement and ICO shall have acknowledged in writing
          by the Supervising Officer or any of its other officers or directors
          that any such sum is due and payable to the Contractor; or

     (b)  ICO shall have failed to pay into the Escrow Account any Disputed
          Amount (other than any disputed amount not exceeding US$1,000,000),

     and in either case

         (i)      the Contractor shall not itself be in any material respect in
                  breach of its obligations under this Agreement, (such breach
                  (if any) to have been notified by ICO to the Contractor in
                  writing in sufficient detail to provide a proper understanding
                  of ICO's reasons why it considers the Contractor to be in
                  breach before the notice of termination would take effect in
                  accordance with clause 59); and

         (ii)     ICO shall have failed before the notice of termination would
                  take effect in accordance with clause 59 either to pay to the
                  Contractor all overdue sums together with interest thereon
                  calculated in accordance with clause 16 or to pay any Disputed
                  Amounts into the Escrow account.

56.5 Save as set out in clauses 56.1 and 56.4, the Contractor shall not be
entitled to terminate this Agreement for any reason and for so long as this
Agreement continues in effect (and notwithstanding that ICO may be permitted to
exercise rights of termination) the Contractor shall continue (for so long as
all of its obligations hereunder have not been suspended pursuant to clause 55)
diligently to perform its obligations hereunder.

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56.6 Termination of this Agreement shall be without prejudice to any antecedent
or accrued rights and liabilities of the parties. ICO shall have no
responsibility for the division amongst the members of the NEC Team of any sums
payable under this Agreement, including any sum paid in consequence of
termination of this Agreement, which shall be entirely a matter for the
Contractor.

57   WAIVER

A waiver of any breach of any provision hereof shall not be binding upon either
party unless made in writing but once so made shall, unless it is expressed to
be revocable, be irrevocable. No such waiver shall affect the rights of the
party not in breach with respect to any other or future breach of this
Agreement. No delay or failure by a party to exercise any of its rights, or time
or indulgence given by it before exercising any right or remedy under this
Agreement shall operate as a waiver of the same nor shall any single or partial
exercise of a right or remedy preclude any further exercise of the same or the
exercise of any other right or remedy.

58   AMENDMENTS

58.1 This Agreement (other than with respect to its scope pursuant to clause 9)
may not be modified except by written amendment signed by both the Supervising
Officer and the Contractor's Authorised Representative save that the address for
notices and the responsible authorised representatives of the parties may be
added to or changed from time to time by written notice to the other party.

58.2 Where in the course of the administration of this Agreement (otherwise than
under clauses 8 and 9) any communication is given or received which, if
implemented, would modify or affect the rights, responsibilities or obligations
of any party, then if such communication is given by ICO, the Contractor shall
ensure that such communication is approved in writing by the Supervising Officer
and if such communication is given by the Contractor, ICO shall ensure that such
communication is approved in writing by the Contractor's Authorised
Representative. In the absence of such approval the receiving party shall not be
entitled to rely on such communication as being binding on, and such
communication may not be binding on, the party giving the same.

59   COMMUNICATIONS AND NOTICES

59.1 All notices or other communications (except Deliverables delivered in
accordance with the Statement of Work), required to be given or served under or
in connection with this Agreement shall be in writing and shall be delivered in
the manner prescribed in clause 59.4 to the address of the party concerned given
in clause 59.2 and as the same may from time to time be amended in accordance
with clause 59.3.

59.2 For the purposes of clause 59.1:

ICO's details are:

In the case of a formal notice (including any notices of demand for payment or
termination) or any legal proceedings to be given to or served on ICO, the
original shall be sent to:

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     ICO Global Communications Holdings BV
     Drentestraat 20
     1083 HK
     Amsterdam
     Netherlands
     Facsimile: (+31) 20661 0654
     Marked for the attention of the Company Secretary

and a copy thereof shall be sent at the same time to ICO Services Limited at the
address set out below.

     ICO Global Communications Holdings BV
     c/o ICO Services Limited
     1 Queen Caroline Street
     London W6 9BN
     England
     Facsimile: (+44) 0181 600 1199
     Marked for the attention of Gary Titzer

In the case of a formal notice (including any notices of demand for payment or
termination) or any legal proceedings to be given to or served on the
Contractor, the original shall be sent to:

     NEC Corporation
     7-1, Shiba 5-Chome,
     Minato-Ku, Tokyo 108-8001
     Japan

     Facsimile: (+81) 3 3798 6782
     Marked for the attention of the General Manager

and a copy thereof shall be sent at the same time to:

     NEC Program Office
     5th Floor Horatio House
     77-85 Fulham Palace Road
     Hammersmith
     London W6 8JC

     Facsimile: (+44) 0181 600 4290
     Marked for the attention of Tadao Furukawa

All other communications to ICO referred to in this clause 59.1 shall be sent
to:

     ICO Global Communications Holdings BV
     c/o ICO Services Limited
     1 Queen Caroline Street
     London W6 9BN
     England

     Facsimile: (+44) 0181 600 1199
     Marked for the attention of Gary Titzer

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All other communications to NEC referred to in this clause 59.1 shall be sent
to:

     NEC  Program Office
     5th Floor Horatio House
     77-85 Fulham Palace Road
     Hammersmith
     London W6 8JC
     England

     Facsimile: (+44) 0181 600 4290
     Marked for the attention of Tadao Furukawa

59.3 Either party may from time to time amend its address and/or facsimile
number and/or the persons to whose attention notices or other communications or
copies thereof are to be given for the purposes of this clause 59 by giving
notice in writing to the other party.

59.4 For the purposes of clause 59.1 a notice or other communication shall be
either delivered personally or sent by registered or recorded delivery prepaid
first class post (or airmail if overseas), or by facsimile addressed to the
intended recipient thereof and any such notice or other communication shall take
effect:

     (a)  if delivered personally, at the time of its delivery; or

     (b)  if sent by registered or recorded delivery prepaid first class post
          (or airmail if overseas), at 10.00 am on the fifth working day
          following the time of posting (or in the case of airmail post, at
          10.00 am on the seventh working day following the time of posting),
          and in proving such service it shall be sufficient to prove that the
          envelope containing the notice or other communication was properly
          addressed, stamped and posted; and

     (c)  if transmitted by facsimile, (and provided that the transmission
          record of the sender indicated delivery of all pages of the same to
          the relevant facsimile number), at 10.00 am falling on the first
          working day following the time of dispatch (which may, for the
          avoidance of doubt, be on the same working day as that on which it is
          despatched) subject to a copy of the notice or other communication
          being dispatched by post within 24 hours of the time of despatch of
          the facsimile.

For the purposes of this clause 59.4, a "working day" is a day on which
commercial banks are generally open for business in the location of the
recipient and reference to local time in such place. References

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to "time of posting" and "time of despatch" are to the local time in the place
where the sender is located. In order to calculate elapsed time, the local time
and day in the intended place of receipt shall be determined from and by
reference to the time difference between that place and the actual time of
posting or time of despatch in the sender's location.

59.5 Notices under clause 56 shall take effect as follows:

     (a)  if given under clause 56.1, 14 days after the relevant notice is
          received or deemed to have been received in accordance with clause
          59.4 unless at the expiry of such period of 14 days the relevant
          condition, event or circumstances shall have ceased to apply;

     (b)  if given under clause 56.2 (a) or (b), upon expiry a period of not
          less than 30 days (or such longer period as may be specified in the
          notice) after the relevant notice is received or deemed to have been
          received in accordance with clause 59.4 unless at the expiry of such
          period of 30 days (or longer period as may have been specified) the
          relevant condition, event or circumstances shall have ceased to apply;

     (c)  if given under clause 56.1(c) or (d), 14 days (or such longer period
          as may be specified in the notice) after the relevant notice is
          received or deemed to have been received in accordance with clause
          59.4 unless at the expiry of such period of 14 days (or longer period
          as may have been specified) the relevant force majeure event shall
          have ceased to apply;

     (d)  if given under clause 56.3, on the day the relevant notice is received
          or deemed to have been received in accordance with clause 59.4 (or
          such later date as may be specified in the notice or upon the
          satisfaction of such conditions as may be specified in the notice); or

     (e)  if given under clause 56.4(a) or (b), upon expiry of a period of not
          less than 60 days (or such longer period as may be specified in the
          notice) after the relevant notice is received or deemed to have been
          received in accordance with clause 59.4 unless at the expiry of such
          period of 60 days (or longer period as may have been specified) the
          relevant payment shall have been made either to the Contractor or into
          the Escrow Account (as the case may be), and such notice shall not be
          valid unless it shall prominently specify that it is a termination
          notice given under clause 56.4 and state the amount of money which the
          Contractor claims is overdue for payment and, in sufficient detail to
          enable ICO to investigate the same, the circumstances which the
          Contractor alleges gives rise to such sums becoming due for payment.

60   PUBLICITY

Neither party, and the Contractor shall procure that none of its
Sub-Contractors, nor any of the group companies, affiliates or Sub-Contractors
or any of their respective agents, advisers, employees or consultants of the
Contractor or its Sub-Contractors shall make any announcements, news releases or
other public statements regarding this Agreement or its subject matter without
the prior written approval of both the Contractor and ICO, such approval not be
unreasonably withheld or delayed.

61   INFORMATION RECORDING

The Contractor shall record, update and maintain all documents to be delivered
under this Agreement up to the Acceptance Set 5 Completion Date

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in accordance with the documentation configuration control process to be
established as a part of the Programme Management Plan referred to in the
Statement of Work.

62   LAW AND JURISDICTION

62.1 This Agreement shall be governed by, and construed in accordance with,
English law.

62.2 Subject to clause 62.3, the Courts of England shall have exclusive
jurisdiction in relation to all disputes or matters which may arise as between
the parties out of or in connection with this Agreement.

62.3 Neither ICO nor the Contractor shall commence or pursue any proceedings
against the other in relation to any dispute or matter which may arise between
them out of or in connection with this Agreement other than in the Courts of
England, except for the purpose of enforcing a judgement or order of the Courts
of England.

62.4 Each of ICO and the Contractor waives for the exclusive benefit of the
other of them any objection on the ground of inconvenient forum to any
proceedings which relate to this Agreement being brought in the Courts of
England or, for the purposes only of enforcement of any judgement or order as is
referred to in clause 62.3, in any other court.

62.5 In clause 62, "proceedings" means proceedings of any kind, including an
application for a provisional or protective measure.

63   CHANGE OF LAW

63.1 If at any time as a consequence of either any change of law (whether
effected through constitutional means or otherwise) or any actions or
restrictions or other interference imposed by any governmental body (or any body
or persons claiming governmental authority) or any international trade or
similar embargo affecting any of the countries in which the Sites are located or
the commencement of hostilities (whether formally declared or not) against any
nation or any state, province or other political subdivision of any nation
(including for this purpose against any separatist movement claiming an
entitlement to be a separate nation, state, province or other political
subdivision) affecting any of the countries in which the Sites are located it
shall become impossible or impracticable to give effect to this Agreement or any
part of it or otherwise to perform the Work on the relevant Site(s), then this
clause 63 shall apply.

63.2 If any changes in the laws and regulations referred to in clauses 4.1(g) or
(h) which may inhibit or prevent the Equipment, Software or other Deliverables
which is or shall be specified in or is to be supplied under this Agreement
being lawfully used for the purposes of the ICONET Ground Facilities in any of
the countries where the Sites are located then this clause 63 shall apply.

63.3 As soon as either party becomes aware of any such circumstances as are
referred to in clauses 63.1 or 63.2 it will notify the other party and the
parties shall discuss how to overcome the effects of such changes and shall work
together so as to mitigate the effects of such circumstances. Where practicable,
they shall make such amendments to this Agreement or any part of it in
accordance with the procedures set out in clause 9 so as to enable the impact of
such occurrence to be minimised.

63.4 If any of the circumstances referred to in clause 63.1 shall come into
existence and continue for a continuous period of at least 30 days in relation
to any particular Site and it shall not be reasonably practicable in the
reasonable opinion of ICO to make amendments as contemplated by clause 63.3,
then upon service of a written notice by ICO to the Contractor under this
clause, the Contractor shall assist ICO in establishing and equipping an
alternative site that ICO designates for use as a satellite land earth station
or network management centre with all necessary connections. Such assistance

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shall be at ICO's cost but on substantially the same basis and terms as those
contained elsewhere in this Agreement.

63.5 If any of the circumstances referred to in clause 63.1 shall come into
existence and continue for a continuous period of at least 30 days in a manner
which either immediately or prospectively will affect a number of the Sites such
that the ICONET Ground Facilities and other elements of the ICO System can not
or will not be able to deliver the desired functionalities specified in the IGFR
without significant modification and it shall not be reasonably practicable in
the reasonable opinion of ICO to make amendments as contemplated by clause 63.3,
then upon service of a written notice by ICO to the Contractor under this
clause, ICO shall be entitled to treat such circumstances as an event of force
majeure.

63.6 In any of the circumstances referred to in clauses 63.3 or 63.4 and where
there is a reasonably practicable method to overcome the changes in law or
regulation giving rise to such circumstances, the Contractor undertakes that it
will offer to provide such changes to the scope of the Works or the location of
the Deliverables at fair prices and on reasonable terms and shall, upon ICO's
request, promptly provide such evidence as ICO may reasonably require to
establish that the prices and terms offered are fair and reasonable.

If ICO considers that the Contractor is unable to offer to provide such changes
to the scope of the Works or the location of the Deliverables in a manner such
that it is reasonably practicable to overcome the changes in law or regulation
giving rise to such circumstances on a basis which is consistent with this
Agreement (whether or not the Contractor shall have proposed fair and reasonable
terms for implementing the same), then ICO shall be entitled to treat such
circumstances as an event of force majeure.

64   EXPORT CONTROL REGULATION

64.1 It is expressly agreed by the parties that the execution of this Agreement
and the subsequent performance of the Works will be subject to all applicable
export control laws and regulations imposed or administered by whichever
government has competent jurisdiction.

64.2 The Contractor warrants that at the time of execution of this Agreement
there are no applicable export control laws and regulations under clause 64.1
which will prevent performance of this Agreement.

65   DISPUTES RESOLUTION PROCEDURE

If a dispute arises, whether before or after Acceptance Set 5 Completion Date,
the procedure set out in Schedule 3 shall apply.

66   AGENT FOR SERVICE

66.1 In relation to any dispute arising out of or in connection with this
Agreement, each of the Contractor and ICO shall at all times until six years
after the termination of this Agreement maintain an agent for service of process
in England and agrees that service on such agent (or any replacement agent
appointed hereunder) shall be deemed to be due service for the purposes of such
proceedings.

66.2 For the purposes of clause 66.1 the Contractor hereby irrevocably appoints
NEC Europe Limited at its registered office for the time being as its agent for
service of process and ICO hereby irrevocably appoints ICO Services Limited at
its registered office for the time being as its agent for service of process.

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66.3 If for any reason an agent appointed under this clause 66 ceases to act as
such, the Contractor or ICO (as appropriate) shall promptly appoint another such
agent and notify the other party of the appointment and the name and address of
the new agent.

67   SUPERVISING OFFICER AND CONTRACTOR'S AUTHORISED REPRESENTATIVE

67.1 ICO's Supervising Officer may be changed from time to time by notice in
writing to the Contractor. Until further notice the Supervising Officer shall be
Gary Titzer.

67.2 The Contractor's Authorised Representative may be changed from time to time
by notice in writing to ICO. Until further notice the Contractor's Authorised
Representative shall be Tadao Furukawa.

67.3 Either party may rely upon notices from the other party without being
obliged to validate the signature of the Supervising Officer or the Contractor's
Authorised Representative.

68   NO PARTNERSHIP

Nothing herein shall create a joint venture or partnership between the parties
nor, save as specifically provided in this Agreement, constitute one party the
agent of the other party.

69   SUCCESSORS

This Agreement shall be binding upon the parties hereto and their successors and
permitted assigns.

70   ASSIGNMENT

70.1 upon giving prior written notice to the Contractor, the benefit of this
Agreement may be assigned by ICO to any subsidiaries of ICO or other companies
within the ICO Group (being companies under the control of the ultimate holding
company of ICO from time to time) any such company being referred to as a
"member of the ICO Group", provided that prior to any company to which the
benefit of this Agreement has been assigned ceasing to be a member of the ICO
Group, ICO shall procure that such company assigns this Agreement to any company
which will remain a member of the ICO Group. No other assignment shall be
permitted by ICO without the prior written consent of the Contractor.

70.2 This Agreement shall not be assignable by the Contractor. The Contractor
shall ensure that the Principal Sub-Contractors will not be allowed to assign
(other than to their subsidiaries or other companies within the same group of
companies of which they are a member) any contracts which they enter into with
the Contractor pursuant to this Agreement.

71   LANGUAGE

All correspondence, notices, documentation and communications concerning this
Agreement shall be in the English language. ICO may require, subject to
agreement of any required adjustment to the Price, where appropriate, that
operating and maintenance instructions, name and rating plates, identification
labels, safety warnings and other written and printed matter required in
connection with the Equipment and all instructions or notices to the public
and/or ICO Staff shall be written in English and one or more principal languages
of the country in which the same are to be installed or used.

72   ENTIRE AGREEMENT

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This Agreement together with all the Schedules and Annexes hereto and any side
letters entered into contemporaneously herewith contains the entire agreement
and understanding between the parties relating to or thereto the subject matter
hereof. All prior understandings, representations and warranties by and between
the parties, written or oral, which may be related to the subject matter hereof
in any way, are superseded by this Agreement, but this provision shall not
affect any rights which ICO may have in relation to the IPC.

73   SEVERABILITY

In the event any one or more of the provisions of this Agreement shall, for any
reason, be held to be invalid or unenforceable, the remaining provisions of this
Agreement shall be unimpaired, and the invalid or unenforceable provision shall
be replaced by a mutually acceptable provision which, being valid and
enforceable, comes closest to the intention of the parties underlying the
invalid or unenforceable provision and, where necessary, satisfies the concerns
of the regulatory authorities concerned.

74   COSTS

All costs and expenses incurred by the parties in connection with the
negotiation and entry into of this Agreement shall be borne by the party
incurring the same.

75   COUNTERPARTS

This Agreement or any agreement expressed to be supplemental hereto may be
executed in two or more counterparts and by different parties on separate
counterparts, each of which when so executed and delivered shall be an original,
but all such counterparts shall constitute one and the same instrument.

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IN WITNESS whereof this Agreement has been duly executed by the parties on the
date stated above.

SIGNED by                             ____________________________
for and on behalf of
ICO GLOBAL COMMUNICATIONS
Holdings BV
in the presence of:

SIGNED by                             ____________________________
for and on behalf of NEC CORPORATION
in the presence of:

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SCHEDULE 1: DEFINITIONS

The words and expressions used in this Agreement including its schedules,
annexures and attachments shall, when written using capital letters in the
manner below, unless the contrary intention appears, have the meanings set
against them in this Schedule:

     "Acceptance Set" shall mean those matters described in Section 1 and Table
     1 of Annex 10 of the Statement of Work.

     "Acceptance Set Completion" shall mean:-

     (i)   the point in time at which Handover of all SANs and NMCs within a
           relevant Acceptance Set has been accomplished, and

     (ii)  the software functionality of Equipment comprised within SANs and
           NMCs previously handed over is upgraded and integrated with the
           Equipment comprised within the SANs and NMCs identified in (i),
           above, and

     (iii) subject to the parties having expressly agreed some specific
           contrary arrangement in relation to any relevant Acceptance Set, all
           criteria of any relevant Acceptance Set, as set out in Annex 10,
           shall have been accomplished.

     "Acceptance Set Completion Date" shall mean the date upon which any
     relevant Acceptance Set Completion occurs.

     "Acceptance Set Completion Certificate" shall mean an Acceptance Set
     Completion Certificate in the form set out in Schedule 12.

     "ADC" shall mean an Administration and Data Centre which can provide off
     line processing of all call records, customer data registrations and
     operator workstations for the provision of help and other services.

     " Agreed Rate" shall mean in relation to any amount for any period:

     (a)  LIBOR plus 3%, if and for so long as such amount is due and payable
          under the terms of this Agreement and either:

               (i)  the party owing the obligation is not disputing the same
                    pursuant to clause 16.5 or, in the case of ICO, claiming to
                    be entitled to defer payment pursuant to clause 15.3; or

               (ii) the party owing the obligation is in default of an
                    obligation to pay the amount into the Escrow Account; and

     (b)  LIBOR plus 2% in any other case.

     For these purposes "LIBOR" in relation to any period means the 3 months US$
     LIBOR rate as at 11.00am London time on the first day of such period (or,
     if that is not a business day, on the immediately preceding business day)
     as quoted (on a per annum basis) in the Financial Times, London edition
     under the heading "Interbank Fixing", on the next business day following
     such first day (or, if for any reason such quotation ceases to exist or be
     appropriate such equivalent alternative US$ LIBOR rate as the parties may
     agree, such agreement not to be unreasonably withheld by either party)
     provided that if a period lasts for more than 3 months, then interest shall
     be calculated by reference to successive periods of 3 months with the LIBOR
     rate being re-set as above at the start of each such period.

                                       34
<PAGE>   1995
Phased SAN Handover - Proposed Amendments to SA Terms and Conditions
(Version 8.0)

7/6/99

     "Availability Date" shall mean such date upon which ICO shall permit the
     Contractor access to any SAN or NMC in accordance with Annex 7B of the
     Statement of Work, for the purposes of the Contractor's integration or
     testing activities

     "Cash Invoice" shall mean an invoice (substantially in the relevant
     approved form set out in Schedule 4 and containing all the information
     referred to in that form) issued by the Contractor to ICO for the Cash
     Portion of one or more Instalments.

     "Cash Portion" in relation to any Instalment shall mean the whole of that
     Instalment less any Financed Portion.

     "Confidential Information" shall mean any confidential, technical or
     commercial information provided by one of the parties (including for this
     purpose any member of the NEC Team) whether in oral or written form, which
     may include (but shall not be limited to) specifications, drawings,
     sketches, models, samples, reports, data, techniques, designs, know-how,
     documentation, trade secrets or other technical or commercial information
     designated as "Confidential" under the terms of this Agreement.

     "Deferred Cash Invoice" in relation to any failure by the Contractor to
     achieve a Top Level Milestone by the date 21 days after its Milestone Date
     shall mean any Cash Invoice which was issued prior to that Milestone Date
     and would, but for clauses 15.2 and 15.3, have a Relevant Payment Date more
     than 21 days after the relevant Milestone Date and any Cash Invoice which
     was issued in the period commencing with the Milestone Date and ending on
     the actual date of the achievement by the Contractor of the relevant Top
     Level Milestone.

     "Deliverables" shall mean the items required to be delivered by the
     Contractor to ICO under this Agreement as more particularly specified
     and/or defined in the Statement of Work.

                                       35
<PAGE>   1996
Phased SAN Handover - Proposed Amendments to SA Terms and Conditions (Version
8.0)

7/6/99

     "Determination" shall mean an agreement between the parties or a
     determination by the Disputes Resolution Procedure established pursuant to
     clause 65 or by a court of competent jurisdiction and "Determined" shall be
     construed accordingly.

     "Disputed Percentage" in relation to any Instalment in respect of which the
     Contractor has issued an invoice which is disputed in whole or part by ICO
     shall mean the percentage of such claimed Instalment which is disputed by
     ICO.

     "Equipment" shall mean all materials, plants and hardware supplied or to be
     supplied by the Contractor, for inclusion in the Works.

     "Escrow Account" shall mean an account to be established by the Escrow
     Agent with a bank agreed between the parties in London or such other
     jurisdiction as the parties may agree in the name of the Escrow Agent,
     which shall be operated in accordance with clause 16 and the other relevant
     provisions of this Agreement.

     "Escrow Agent" shall mean such bank or other person as the parties may
     agree.

     "Escrow Agreement" shall mean an agreement between ICO, the Contractor and
     the Escrow Agent in terms to be agreed between the parties reflecting the
     provisions of this Agreement relating to the Escrow Agent and the Escrow
     Account (with such modifications as the parties may agree with the Escrow
     Agent, such agreement not to be unreasonably withheld by either of the
     parties).

     "Escrow Trigger Amount" shall mean US$ 1 million or any higher multiple of
     US$500,000.

     "Excluded Circumstances" shall mean:

          (i)     any force majeure event as set out in clause 55;
          (ii)    radio frequency interference or unplanned propagation
                  impairment (C-band or S-band) in excess of the limits
                  specified in the IGFR;
          (iii)   unavailability of spectrum;
          (iv)    unavailability of ICO satellites, or inappropriate spacing
                  between the available satellites;
          (v)     non-conformance of ICO satellites to the ICO satellite
                  specifications and its applicable Interface Control
                  Documents;
          (vi)    unavailability of ICO user terminals which conform to the
                  ICO Air Interface as set out in the applicable Interface
                  Control Document;
          (vii)   non-conformance of ICO user terminals to the ICO Air
                  Interface as set out in the applicable Interface Control
                  Document;
          (viii)  unavailability of terrestrial network interconnections
                  which meet telecommunication industry standards;
          (ix)    unavailability of the ICO Satellite Control Centre or its
                  non-conformance to the applicable Interface Control
                  Document;
          (x)     unavailability of Telemetry, Tracking & Control facilities
                  to the extent not comprising RFTs at the designated Sites
                  or the non-conformance of the same to the applicable
                  Interface Control Document;
          (xi)    unavailability of ICO Administration and Data Centre
                  facilities or the non- conformance of the same to the
                  applicable Interface Control Document; and
          (xii)   errors or omissions in information supplied by ICO or the
                  vendors of other elements of the ICO System in the
                  applicable documents which affect support of the
                  requirements of the IGFR and end-to-end services and which
                  could not reasonably have been discovered by the Contractor
                  by the time of the manufacture of the Deliverable to which
                  such information relates.

                                       36
<PAGE>   1997
Phased SAN Handover - Proposed Amendments to SA Terms and Conditions
(Version 8.0)

     7/6/99

     "Financed Invoice" shall mean an invoice (substantially in the relevant
     approved form set out in Schedule 4 and containing all the information
     referred to in that form) issued by the Contractor for the Financed Portion
     of one or more Instalments.

     "Financed Portion" in relation to any Instalment shall mean the percentage
     of it, if any, which is required to be financed by the Contractor pursuant
     to the Vendor Financing Agreement.

     "Further Deliverables" shall mean Deliverables (save and except for those
     to be provided by the Contractor at Acceptance Set 5 Completion Date) to be
     handed over after the Acceptance Set 4 Handover Date.

     "Further Works" shall mean Works (save and except for those of, or
     concerning, those Deliverables to be provided, or made available, by the
     Contractor at Acceptance Set 5 Completion Date and the Contractor's support
     of ICO's implementation of Acceptance Set 5) to be carried out after the
     Acceptance Set 4 Handover Date.

     "Good Industry Practice" shall mean the exercise of that degree of skill,
     diligence, prudence and foresight which would reasonably and ordinarily be
     expected from a skilled and experienced contractor engaged in the same type
     of activities and under the same or similar conditions and circumstances
     who is seeking in good faith to comply with its obligations under this
     Agreement.

     "Handover" shall mean when all SANs and NMCs comprised within an Acceptance
     Set have successfully completed their Phase 3 IGF Testing in accordance
     with Annex 8A and have met the criteria established in Annex 10 at which
     time the Contractor shall hand over such SANs and NMCs to ICO, who shall
     receive the same. Furthermore any event of Handover shall mean:-

(i)   the risk in Deliverables referable to any SAN or group of SANs or NMCs
      which are handed over shall pass to ICO.

(ii)  all payments referable to such SAN or group of SANs or NMCs shall be
      invoiced by the Contractor in accordance with Schedule 11 of this
      Agreement and shall be payable by ICO;

(iii) in respect of such SAN or group of SANs or NMCs the Contractor's liability
      to pay to ICO liquidated damages pursuant to clause 18 or this Agreement
      shall cease absolutely;

(iv)  in respect of such SAN or group of SANs or NMCs the Contractor's warranty
      obligations under clause 40 of this Agreement shall commence.

                                       37
<PAGE>   1998
Phased SAN Handover - Proposed Amendments to SA Terms and Conditions
(Version 8.0)

     7/6/99
     "Handover Certificate" shall mean a Handover Certificate in the form set
     out in Schedule 12.

     "Handover Date" shall mean the date on which a Handover occurs.

     "Acceptance Set Completion" shall mean:-

     "High Level System Description" shall mean the high level system
     description to be provided in accordance with the Statement of Work.

     "ICO Intellectual Property" shall mean the Intellectual Property Rights
     generated by ICO comprised in the Deliverables.

     "ICONET Ground Facilities" shall mean 12 SANs, an NMC and a backup NMC as
     more particularly described in the Statement of Work and the IGFR subject
     to the provisions of clause 2.2.

     "ICO Staff" shall mean all of the directors and employees of ICO Global
     Communications (Holdings) Limited or any of its subsidiary or affiliate
     undertakings and any consultants, sub-Contractors or other persons
     nominated as "ICO Staff" by or on behalf of ICO for the purposes of this
     Agreement.

     "ICO System" shall mean a global mobile satellite telecommunications
     network capable of delivering the end to end services set out in the IGFR
     and which will, when completed, comprise (a) the ICONET Ground Facilities,
     (b) the ICO space segment, (c) user terminals, (d) the ADC systems and (e)
     any other functional entities.

     "IGFR" shall mean the ICONET Ground Facilities Requirement document
     contained in Schedule 13 as amended from time to time in accordance with
     this Agreement.

     "Instalment" shall mean an instalment of the Price calculated as set out in
     the Payment Schedule; and shall where the context allows include any such
     instalment claimed by the Contractor in circumstances where ICO disputes
     the Contractor's entitlement to some or all of the amount claimed.

     "Intellectual Property Rights" shall mean patents, registered design rights
     and applications for any of the foregoing, copyright, unregistered design
     rights, topography rights and all forms of

                                       38
<PAGE>   1999
Phased SAN Handover--Proposed Amendments to SA Terms and Conditions
(Version 8.0)

     7/6/99

     protection of any similar nature (including all such rights in software)
     which may subsist in any part of the world for the full term of such rights
     including any extension to the term of such rights and Confidential
     Information.

     "IOT" shall mean the ground control equipment to be supplied to ICO by a
     third party which, when functioning correctly with the RFT, provides
     satellite in-orbit test capability.

     "Key Features" means the features of the Deliverables set out in Schedule
     6.

     "Acceptance Criteria" shall mean the acceptance criteria referred to in
     Annex 10 of the Statement of Work.

     "Master Level Schedule" shall mean the schedule of activities and dates
     attached to Annex 4 of the Statement of Work as adjusted from time to time
     under this Agreement.

     "Milestone Date" shall mean the due date for the achievement of a Top Level
     Milestone as shown in the Top Level Milestone Schedule.

     "NEC Team Intellectual Property" shall mean the Intellectual Property
     Rights generated by the members of the NEC Team acting alone or together.

     "NEC Team" shall mean the Contractor, NEC Corporation, (as leader and main
     Contractor), and its Principal Sub-Contractors, working together as a team
     for the purposes of the design, specification, supply and testing of the
     ICONET Ground Facilities.

     "NMC" shall mean a Network Management Centre which provides both the
     central part of a network management system ("NMS"), the central part of a
     Satellite Resource Management Centre ("SRMC") and any other centralised
     functions required for the purposes of fulfilling the relevant functions
     specified in the Statement of Work and/or the IGFR, together with all of
     the interfaces necessary to perform these functions.

     "ODTF" shall mean the facility at which ICO, without risk to customer
     traffic, can train operational staff, test new and updated software
     releases, take advantage of a skills base and facilities to support new
     development and provide a showcase of the ICO System.

     "Options" shall mean those options set out in Annex 1 of the Statement of
     Work.

     "Payment Schedule" shall mean Schedule 11.

     "Phase 1, Phase 2-1 and Phase 3 Testing or Tests" shall mean, respectively,
     that testing or those tests which is/are referred to in Annex 8A of the
     Statement of Work.

     "Price" shall have the meaning specified in clause 15.1.

     "Principal Sub-Contractors" shall mean Hughes Network Systems. and Ericsson
     Limited.

                                       39
<PAGE>   2000
Phased SAN Handover--Proposed Amendments to SA Terms and Conditions
(Version 8.0)
     7/6/99
     "Ready for Installation Date" means the date on which the relevant Site is
     first made available to the Contractor for delivery and installation of any
     part of the Works.

     "RFT" shall mean the equipment supplied to ICO by the Contractor including
     an antenna and its associated ancillary equipment, transmission and
     receiver equipment including IF (intermediate frequency) distribution and
     IFL (inter facility link) connections, dedicated up and down converters and
     the associated couplers and switches which are compatible with the
     telemetry, tracking and control equipment to be supplied to ICO by a third
     party, IOT signal monitoring package which is compatible with the in-orbit
     test equipment to be supplied to ICO by a third party and an O&M system for
     the monitor and control of the other parts of the RFT.

     "RFT Availability Dates" shall mean the dates designated as such in the Top
     Level Milestone Schedule as such for each of the Sites which ICO has
     designated as TT&C or IOT capable.

     "SAN" shall mean a Satellite Access Node being a fixed installation of all
     the equipment required to access the ICO satellites as more particularly
     described in the Statement of Work and/or the IGFR.

     "Satellite Based Communications Systems" shall mean mobile communications
     systems characterised by direct links between a mobile user terminal and a
     satellite enabling transmission of voice and data (either data, telephony,
     facsimile or otherwise) including but not limited to those systems intended
     to be capable of offering services to mobile users which also offer fixed
     or semi-fixed services but for the avoidance of doubt excluding V-SAT
     systems, Broadband systems for multi-media services and systems with fixed
     high gain directional antennae.

     "Site" shall mean the places to which the Deliverables are to be delivered
     or where Works are to be carried out as set out in Annex 3 of the Statement
     of Work or as provided in this Agreement.

     "Site Operator" shall mean, in respect of each Site, the person making, or
     who has made, the Site available to ICO and appointed by ICO to operate and
     maintain the Equipment and Software upon the Site on behalf of ICO
     following installation, delivery, testing and acceptance of the same by
     ICO.

     "Software" shall mean all operating systems, compilers, utilities and other
     programs in any form and associated documentation provided or to be
     provided by the Contractor for inclusion in the Works.

     "Spares" shall mean spare and replacement parts for the Equipment.

     "Statement of Work" shall mean those documents set out in Schedule 14.

     "Sub-Contractor" shall mean any person, firm or company (including the
     Principal Sub-Contractors) to whom any of the Contractor's obligations
     under this Agreement have been sub-contracted (whether by the Contractor,
     the Principal Sub-Contractors or any other person to whom any of the Works
     have been subcontracted directly or indirectly) and its legal
     representatives, successors and permitted assigns.

     "Top Level Milestones" shall mean those tasks and events designated by a
     (T) in the Top Level Milestone Schedule.

                                       40
<PAGE>   2001
Phased SAN Handover - Proposed Amendments to SA Terms and Conditions
(Version 8.0)
7/6/99

     "Top Level Milestone Schedule" shall mean Schedule 7 of this Agreement.

     "Training" shall mean the training to be provided by the Contractor under
     clause 45.

     "Ts &Cs" shall mean the main body of this Agreement.

     "TT&C" shall mean the ground communication equipment to be supplied to ICO
     by a third party for satellite telemetry, tracking and control capability.

     "TWT" shall mean travelling wave tube.

     "US$" shall mean United States Dollars, the lawful currency of the United
     States of America.

     "Works" shall mean and include the supply, delivery, installation,
     integration, testing and setting to work of the Deliverables and all other
     work required to be carried out by the Contractor under this Agreement.

                                       41
<PAGE>   2002
Phased SAN Handover - Proposed Amendments to SA Terms and Conditions
(Version 8.0)
7/6/99

SCHEDULE 3: DISPUTE RESOLUTION PROCEDURE

1 Each party shall use all reasonable endeavours to resolve any disputes arising
out of or in relation to this Agreement, including as to its interpretation.

2 In the event that such a dispute arises then the escalation procedures set out
in the remaining paragraphs of this Schedule shall apply and either party may
invoke these procedures by giving notice in writing to the other specifying the
subject matter of the dispute and its proposal for its resolution.

3 ICO and the Contractor shall respectively procure that the dispute is
considered by the Supervising Officer and the Contractor's Authorised
Representative and that such parties attempt, in good faith, to resolve the
dispute. If such persons reach agreement on the matter in dispute within 15 days
of the dispute procedure having been invoked, which period shall commence upon
the receipt of the notice referred to in paragraph 2, (or such other period as
the parties may mutually agree in writing) the parties shall procure that their
respective representatives shall sign a joint memorandum to that effect
recording the resolution and procure that such agreement is fully and promptly
carried into effect.

4 If the Supervising Officer and the Contractor's Authorised Representative fail
to reach agreement on the matter in dispute within the period specified in
paragraph 3 or together conclude that resolution is unlikely, then either of
them may within 10 days of the expiry of such period refer the matter in dispute
to, in the case of ICO, Dr G.K.Smith or another Senior Vice President of ICO for
the time being and in the case of the Contractor, Hiromi Hayashi or any other
Associate Senior Vice President (or, in either case, if such person is not
available, a senior manager of equivalent or nearest equivalent standing in the
organisation of the party concerned) (together the "Senior Officers") for
consideration by such persons. ICO and the Contractor shall respectively procure
that such dispute is considered by the Senior Officers and that they attempt, in
good faith, to resolve the dispute. If the Senior Officers reach agreement on
the matter in dispute within 15 days of the dispute being referred to them under
this paragraph, (or such other period as the parties may mutually agree in
writing) the parties shall procure that their respective representative shall
sign a joint memorandum to that effect recording the resolution and procure that
such agreement is fully and promptly carried into effect.

5 The dispute resolution procedure shall, as regards the matter in dispute, have
          been exhausted if the matter in dispute:

     (a)  has not been resolved in accordance with paragraph 3 within the
          relevant period and is not referred to the Senior Officers within the
          relevant period; or

     (b)  where it is so referred, has not been resolved in accordance with
          paragraph 4 within the relevant period.

For the avoidance of doubt, the fact that the dispute resolution procedure has
been exhausted without resolution of the matter in dispute shall not prevent the
parties from agreeing that the matter in question should be referred to an
independent form of alternative dispute resolution agreed between them and/or to
arbitration.

6 The foregoing provisions of this shall, subject always to clause 62, not
prevent either party from commencing legal proceedings or applying to the court
for injunctive or other interim relief at any time.

                                       42
<PAGE>   2003
                                                            EN-IG-ICO-SW-000874
[ICO LOGO]               Addendum 2 to Schedule 13-IGFR              Version 2.4
                                                                        3 Jun 99

                                                       ICO GLOBAL COMMUNICATIONS
                                                         1 QUEEN CAROLINE STREET
                                                                     HAMMERSMITH
                                                                   LONDON W6 9BN
                                                                  UNITED KINGDOM

                                                          TEL: +44 181 600 10000
[ICO LOGO]                                                FAX: +44 181 600 1199

                                                           I-CO SERVICES LIMITED
                                               REGISTERED IN ENGLAND: NO.3045294
                                         REGISTERED OFFICE: 1 QUEEN CAROLINE ST.
                                                                LONDON W6 9BN UK

                           ADDENDUM 2 TO SCHEDULE 13 -
                      ICONET GROUND FACILITIES REQUIREMENTS

                             COMMERCIALLY SENSITIVE
                             REPRODUCTION PROHIBITED

CONFIDENTIALITY STATEMENT

ALL INFORMATION CONTAINED IN THIS DOCUMENT IS CONFIDENTIAL AND PROPRIETY TO ICO
GLOBAL COMMUNICATIONS OR ANY OTHER MEMBER OF THE ICO GLOBAL COMMUNICATIONS GROUP
AND INTENDED ONLY FOR THE ADDRESSEE TO WHOM THIS COPY IS ADDRESSED. THE
RECIPIENT SHALL NEITHER COPY, DISTRIBUTE, DISCLOSE OR USE THE INFORMATION
CONTAINED IN IT FOR ANY PURPOSE OTHER THAN FOR WHICH THIS DOCUMENT HAS BEEN MADE
AVAILABLE NOR PERMIT ANYONE ELSE TO DO THE SAME. THE RECIPIENT SHALL BE HELD
FULLY LIABLE FOR ANY WRONGFUL DISCLOSURE OR USE OF ANY OF THE INFORMATION
CONTAINED IN THIS DOCUMENT BY HIM, OR HIS OFFICERS OR EMPLOYEES OR ANYONE ELSE
TO WHOM HE MAKES THE INFORMATION AVAILABLE.

                 DOCUMENT NO.:              EN-IG-ICO-SW-000874

                 VERSION:                   2.4

                 DATE:                      3 Jun 1999

       PREPARED                             AUTHORISED         APPROVED

       AUTHOR: P POSKETT/A FUJII/R SKAIFE   MANAGER:           SENIOR MANAGER:

Confidential and Proprietary to ICO Global Communications
                                                                               1

<PAGE>   2004
AMENDMENT RECORD

<TABLE>
<CAPTION>

REVISION           DATE          CN NO.        REASON FOR CHANGE
--------           ----          ------        -----------------
<S>                <C>           <C>           <C>
1.0                21/5/99                     None

2.0                26/5/99                     Included new para 1.3.5 for ICD version control

2.1                27/5/99                     Editorial change to 2.1

2.2                2/6/99                      Deleted changes 2.0 and 2.1; incorporated ICD version
                                               number in body of IGFR.

2.3                3/6/99                      Editorial changes:
                                               1.       Title p3 changed to Addendum 2 to IGFR Version 28.4
                                               2.       Amendments on pp7,8 changed to show original as in
                                                        Addendum 2.

2.4                3/6/99                      Editorial Changes to v 2.3; header corrected and para
                                               3.3.3.2.1 change marks corrected.
</TABLE>

Confidential and Proprietary to ICO Global Communications
                                                                               2
<PAGE>   2005
                                                             EN-IG-ICO-SW-000874
[ICO LOGO]             Addendum 2 to Schedule 13-IGFR                Version 2.4
                                                                        3 Jun 99

               ADDENDUM 2 TO ICONET GROUND FACILITIES REQUIREMENTS
                                  VERSION 28.4

1.3.4    LIST OF AIR INTERFACE DOCUMENTS.

         1.3.4.1 The following documents are incorporated into the contract to
         the extent necessary to support the requirements specifically
         identified in the IGF Requirements document.

         1.3.4.2 ICO Air Interface documents (Air Interface Specifications
         Released 27th November 1998).

         Below is a list of Air Interface Specifications along with version
         numbers released on 27th November 1998:

<TABLE>
<CAPTION>

Specification             Version     Title
-------------             -------     -----
<S>                       <C>         <C>
      03.14.A1              4.0       Support of Dual Tone Multi-Frequency signalling (DTMF)

      03.20.A2              4.1       External Specifications of Security Related Algorithms

      03.20.D1              4.1       Security Related Network Functions

      03.22.A1              4.5       Operation Of An ICO User Terminal In Idle-Mode

      03.45.D1              4.0       Technical Realisation of Facsimile Group 3 transparent

      03.50.D1              4.0       ICO Speech Services: Transmission planning aspects of the speech service
                                      in the ICO system

      04.03.D1              4.0       User Terminal - Satellite Base Station System Interface; Channel
                                      Structures and Access Capabilities.

      04.04.D1              4.0       Layer 1 : General Requirements

      04.06.A1              4.2       ICO Link Access Procedures on Satellite Channel (LAPSat) ICO Data Link
                                      Layer Specification
</TABLE>

Confidential and Proprietary to ICO Global Communications
                                                                               3
<PAGE>   2006
<TABLE>
<CAPTION>

Specification             Version     Title
-------------             -------     -----
<S>                       <C>         <C>
      05.10.A1              4.5       Radio Subsystem Synchronization

      06.10.A1              4.0       ICO Speech Services: Speech Transcoding.

      06.11.A1              4.0       ICO Speech Services: Substitution and Muting of Lost Frames

      06.12.A1              4.0       ICO Speech Services: Comfort Noise Aspects

      06.31.A1              4.0       ICO Speech Services: Discontinuous Transmission (DTX)

      06.32.A1              4.0       ICO Speech Services: Voice Activity Detector (VAD)

      07.01.D1              4.1       General on Terminal Adaptation Functions (TAF) for User Terminals (UT)

      07.02.D1              4.1       Terminal Adaptation Functions (TAF) for Services Using Asynchronous Bearer
                                      Capabilities

      07.03.D1              4.1       Terminal Adaptation Functions (TAF) for Services Using Synchronous Bearer
                                      Capabilities

      103.40.A1             4.1       Technical Realization of the High Penetration Notification (HPN) Service

      104.08.A1             4.3       HPN Radio Interface, Layer 3 (HPN-RR) Specification

      106.01.A1             4.0       ICO Speech Services High Level Functional Description

      106.02.A1             4.0       ICO Speech Services Low Level Functional Description

      106.03.A1             4.0       ICO Speech Services Software Interface Specification

      106.04.A1             4.0       ICO Speech Services: Implementation and Performance of the ICO Voice Codec

      106.05.A1             4.0       ICO Speech Services: External Interfaces and Control
</TABLE>

1.3.4.3 Any changes to Air Interface specificaitons shall be handled in
accordance with Section 4.8 of the Statement of Work.

Confidential and Proprietary to ICO Global Communications
                                                                               4
<PAGE>   2007
                                                             EN-IG-ICO-SW-000874
[ICO LOGO]             Addendum 2 to Schedule 13-IGFR                Version 2.4
                                                                        3 Jun 99

         1.3.4.3 Any changes to Air Interface specifications shall be handled in
         accordance with Section 4.8 of the Statement of Work.

Confidential and Proprietary to ICO Global Communications
                                                                               5
<PAGE>   2008
                                                            EN-IG-ICO-SW-000874
[ICO LOGO]            Addendum 2 to Schedule 13-IGFR                Version 2.4
                                                                        3 Jun 99

3.3      EXTERNAL INTERFACES

3.3.1. GENERAL

3.3.1.1. The external interfaces present in the IGF are listed below.

3.3.2. RF INTERFACE

3.3.2.1. AIR INTERFACE (UT)

3.3.2.1.1. The air interface describes the communication protocol between the
IGF and the UTs. The details of the air interface can be found in the ICO Air
Interface document and in supporting GSM Technical Specifications.

3.3.2.2. SATELLITE RF INTERFACE

3.3.2.2.1. The IGF provides RF signals for TT&C in accordance with TT&C to SAN
ICD EN-TC-ICO-IS-0001 Version 2.1 dated 18 Dec 97.

3.3.2.2.2. The IGF shall provide RF signals for HPN real time payload command
(HPN PCS) functions in accordance with Payload to Ground ICD [TBD].

3.3.3. IF INTERFACES

3.3.3.1. TT&C

3.3.3.1.1. The IGF shall provide an IF Interface to external TT&C equipment at
selected SANs provided for TT&C functions in accordance with TT&C to SAN ICD
EN-TC-ICO-IS-0001 Version 2.1 dated 18 Dec 97..

3.3.3.2. REMOTE PCS (RPCS)

3.3.3.2.1. The IGF shall provide an IF Interface to external Remote PCS
equipment at selected SANs provided for PCS functions in accordance with PCS
Interface Control Document EN-TC-ICO-IS-0003 Version 3.1 dated 18 Dec 98.

3.3.4. TERRESTRIAL NETWORK INTERFACE

3.3.4.1. The IGF shall provide interfaces to terrestrial public networks, such
as Public Switched Telephone Network (PSTN), Integrated Services Digital
Networks (ISDN), Public Land Mobile Networks (PLMN), and Packet Switched Public
Data Networks (PSPDN) in accordance with Section 6.3 of this document.

3.3.4.2. The interfaces to external transmission lines shall comply with ITU-T
Recommendation G.703/G.704 for A-law PCM and DS1 for (mu)-law systems.

3.3.5. ADC INTERFACE

3.3.5.1. The IGF shall support interfaces to the BDC in accordance with the
following documents: WG370083 "SSS Provisioning and Billing Interface" and
IC-NM-ICO-IC-000131 "NMC-BDC Interface Control Document" Version 17 dated 23 Apr
99.

Confidential and Proprietary to ICO Global Communications

                                                                               6
<PAGE>   2009
                                                            EN-IG-ICO-SW-000874
[ICO LOGO]            Addendum 2 to Schedule 13-IGFR                Version 2.4
                                                                        3 Jun 99

3.3.6. DATA COMMUNICATIONS INTERFACE

3.3.6.1. TT&C

3.3.6.1.1.The IGF shall provide a data communications interface to external TT&C
equipment at selected SANs provided for TT&C functions in accordance with TT&C
to SAN ICD EN-TC-ICO-IS-0001 Version 2.1 dated 18 Dec 97.

3.3.6.2. SCC

3.3.6.2.1. The IGF shall provide a data communications interface at the NMC and
Backup NMC to external equipment at the Satellite Control Centre and Backup
Satellite Control Centre for passing information between SCC and NMC in
accordance with SCC to NMC ICD EN-TC-ICO-IS-0002 Version 4.1 dated 26 Nov 98.

3.3.6.3. CENTRAL PCS (CPCS)

3.3.6.3.1. The IGF shall provide a data communications interface at the NMC and
Backup NMC to external Central PCS equipment for passing information between
CPCS and NMC in accordance with PCS Interface Control Document EN-TC-ICO-IS-0003
Version 3.1 dated 18 Dec 98.

3.3.6.4. REMOTE PCS

3.3.6.4.1. The IGF shall provide a data communication Interface to external
Remote PCS equipment at selected SANs provided for PCS functions in accordance
PCS Interface Control Document EN-TC-ICO-IS-0003 Version 3.1 dated 18 Dec 98.

Confidential and Proprietary to ICO Global Communications
                                                                               7
<PAGE>   2010
                                                       ICO GLOBAL COMMUNICATIONS
                                                         1 QUEEN CAROLINE STREET
                                                                     HAMMERSMITH
                                                                   LONDON W6 9BN
                                                                  UNITED KINGDOM
[ICO LOGO]
                                                           TEL: +44 181 600 1000
                                                           FAX: +44 181 600 1199

                                                           I-CO SERVICES LIMITED
                                               REGISTERED IN ENGLAND: NO.3045294
                                         REGISTERED OFFICE: 1 QUEEN CAROLINE ST.
                                                                LONDON W6 9BN UK

                                STATEMENT OF WORK

                             REPRODUCTION PROHIBITED

                            CONFIDENTIALITY STATEMENT

ALL INFORMATION CONTAINED IN THIS DOCUMENT IS CONFIDENTIAL AND PROPRIETY TO ICO
GLOBAL COMMUNICATIONS OR ANY OTHER MEMBER OF THE ICO GLOBAL COMMUNICATIONS GROUP
AND INTENDED ONLY FOR THE ADDRESSEE TO WHOM THIS COPY IS ADDRESSED. THE
RECIPIENT SHALL NEITHER COPY, DISTRIBUTE, DISCLOSE OR USE THE INFORMATION
CONTAINED IN IT FOR ANY PURPOSE OTHER THAN FOR WHICH THIS DOCUMENT HAS BEEN MADE
AVAILABLE NOR PERMIT ANYONE ELSE TO DO THE SAME. THE RECIPIENT SHALL BE HELD
FULLY LIABLE FOR ANY WRONGFUL DISCLOSURE OR USE OF ANY OF THE INFORMATION
CONTAINED IN THIS DOCUMENT BY HIM, OR HIS OFFICERS OR EMPLOYEES OR ANYONE ELSE
TO WHOM HE MAKES THE INFORMATION AVAILABLE.

                 DOCUMENT NO.:              EN-IG-ICO-SW/ 000001

                 VERSION:                   3.6

                 DATE:                       2 June 1999

       PREPARED          ICO                                NEC

       AUTHOR:           TITLE:                             TITLE:

                         SIGNATURE:                         SIGNATURE:
<PAGE>   2011
                                                            EN.IG-ICO-SW/ 000001
   [ICO LOGO]               STATEMENT OF WORK               ISSUE:  3.6
                                                            2 June 1999

Amendment Record
<TABLE>
<CAPTION>

Version           Date          CN No.        Reason for Change
-------           ----          ------        -----------------
<S>               <C>           <C>           <S>
1.0               14/2/97                     NEC Contract Issue

2.0               17/2/97                     To incorporate Final NEC comments

2.1               19/2/97                     Changes to paragraph 9.3, LIMF para 4.11.5 added

2.2               26/2/97                     Minor editorial changes

3.0               13/08/97                    Changes to reflect 60/61/120 Days and PCS Options

3.1               07/10/97                    Changes agreed Coggin/Jenkins 24 September 1997

3.2               25/03/98                    Changes to reflect CR#6

3.3               11/5/99                     Changes to reflect Phased SAN Handover

3.3 Rev 1         13/5/99                     Reflects comments from NEC WGs

3.4               25/5/99                     ICO comments to V 3.3Rev2

3.5               26/5/99                     Incorporate comments from joint ICO/NEC review 26 May 1999.

3.6               2/6/99                      Editorial change - para "demonstration" to "demonstrations"
                                              to align with Annex 8B.
</TABLE>

2                   Confidential and Proprietary to    ICO Global Communications

Created: 29/09/97

Revised 02/06/99

<PAGE>   2012
                                                            EN.IG-ICO-SW/ 000001
   [ICO LOGO]               STATEMENT OF WORK               ISSUE:  3.6
                                                            2 June 1999

TABLE OF CONTENTS
<TABLE>
<S>                                                                   <C>
1.    INTRODUCTION                                                     4
2.    STATEMENT OF WORK CONTENTS                                       5
3.    APPLICABLE DOCUMENTS                                             6
4.    SCOPE OF WORK                                                    6
5.    CONTRACTOR'S DELIVERABLES                                        11
6.    INFORMATION, SERVICES & EQUIPMENT                                11
7.    INSTALLATION SITE CONDITIONS                                     12
8.    PROGRAM MANAGEMENT AND IMPLEMENTATION                            12
9.    TRAINING                                                         13
10.   DOCUMENTATION                                                    13
11.   SITE WORKING ARRANGEMENT                                         14
12.   IGF TEST PLAN                                                    14
13.   END-TO-END CALL DEMONSTRATION                                    14
14.   ICONET  INTEGRATION                                              14
15.   IGF ACCEPTANCE CRITERIA                                          15
16.   AIR INTERFACE SIGNALLING PROTOCOL VALIDATION                     15
17.   IGF SYSTEM  SUPPORT                                              15
</TABLE>

3                   Confidential and Proprietary to    ICO Global Communications

Created: 29/09/97

Revised 02/06/99

<PAGE>   2013
                                                            EN.IG-ICO-SW/ 000001
   [ICO LOGO]               STATEMENT OF WORK               ISSUE:  3.6
                                                            2 June 1999

1.       INTRODUCTION

1.1      This Statement of Work (SOW) defines the technical and management
         requirements for the design, construction, installation, integration
         and testing of the ICONET Ground Facilities (IGF). The SOW also defines
         the information, services and equipment to be provided by ICO.

1.2      The main Deliverables of this Supply Agreement are the ICONET Ground
         Facilities comprising twelve (12) SANs, NMC, and Back-up NMC, installed
         and tested within itself and integrated into the ICO System which can
         be enlarged and enhanced as set out in this Agreement.

1.3      The intention is to be able to demonstrate basic voice, low rate fax
         and data calls as defined in Annex 8B.

1.4      It may be possible to demonstrate calls on additional standalone SANs,
         however there is no contractual commitment to this and it is subject to
         progress of the integration of the IGF being provided under the terms
         of the Supply Agreement.

1.5      If the number of standalone SANs made available for these call
         demonstrations is increased then the Handover Milestone may be delayed,
         and the Master Level Schedule, included in Annex 4, will be subject to
         review.

1.6      The warranty provisions relevant to this SOW are set out in clause 40
         of the Terms and Conditions.

1.7      The Phased SAN Handover Plan is to provide ICO access to the ICONET
         Ground Facilities at the earliest practical opportunity in order that
         ICO may undertake necessary preparatory activities for commercial
         operations.

4                      Confidential and Proprietary to ICO Global Communications

Created:29/09/97
Revised 02/06/99

<PAGE>   2014
                                                            EN.IG-ICO-SW/ 000001
   [ICO LOGO]               STATEMENT OF WORK               ISSUE:  3.6
                                                            2 June 1999

         The SANs and NMC will be progressively completed and handed over to
         ICO, both individually and in sets, in accordance with the schedule
         provided in Annex 4.

1.8      All planning, scheduling and implementation activity of, or relating
         to, the China SAN shall be regulated by the terms of a separate Change
         Order to be agreed by the parties in accordance with clause 2.2 of the
         Terms and Conditions.

2        STATEMENT OF WORK CONTENTS

2.1      The SOW comprises this main text plus Annexes listed below:

                                 TABLE SOW-1
                     SUMMARY OF STATEMENT OF WORK ANNEXES
<TABLE>
<CAPTION>

  Annex               Document                Description of Task
  -----               --------                -------------------
<S>                   <C>                     <C>
  1                   000002                  Contractor's Deliverables

  2                   000003                  ICO Services and Equipment

  3                   000004                  Installation Site Conditions

  4                   000005                  Program Management & Implementation

  5                   000006                  Training

  6                   000007                  Documentation

  7A                  000008                  Site Working Arrangements

  7B                  000873                  Joint Working Arrangements for Phased SAN Handover

  7C                  000870                  Network Partitioning

  8 A                 000009                  IGF Test Plan

  8 B                 0000010                 Call Demonstration Plan

  9                   000011                  ICONET Integration

  10                  000012                  IGF Acceptance Criteria

  11                  000013                  Air Interface Signalling Protocol Validation
</TABLE>

5                      Confidential and Proprietary to ICO Global Communications

Created:29/09/97
Revised 02/06/99

<PAGE>   2015
                                                            EN.IG-ICO-SW/ 000001
   [ICO LOGO]               STATEMENT OF WORK               ISSUE:  3.6
                                                            2 June 1999

3.       APPLICABLE DOCUMENTS

         Applicable documents of this SOW are listed in the ICONET Ground
         Facilities Requirements ( IGFR) Section 1.3.

4.       SCOPE OF WORK

4.1      The Works shall include the design, manufacture, factory testing, and
         delivery of the ICONET Ground Facilities (IGF) including installation,
         integration, and site testing in accordance with Annexes 7 and 8A.

4.2      The Works shall include end-to-end call demonstrations of basic voice,
         low rate fax and data services from a single standalone SAN, via the
         satellite and the terrestrial network, provided that the other ICO
         System elements, supplied by ICO, are available and functioning
         correctly in accordance with Annex 8B.

4.3      The Works shall also include, at ICO's selection, provision of
         engineering support and materials for the ICONET Integration of the IGF
         with ICO's space segment, terrestrial telecommunications networks and
         ICO User Terminals (UTs) in accordance with Annex 9.

4.4      The IGF will include:

         -        SAN equipment for 12 SAN sites located in twelve (12)
                  different countries.

         -        NMC and Back Up NMC equipment located in two (2) different
                  countries.

         -        Interface provisions for interconnecting SANs and for
                  connecting SANs to terrestrial networks.

         -        Documentation.

4.5      The IGF will implement all the requirements set out in the ICONET
         Ground Facilities Requirements Document ("IGFR") except for those
         marked therein as "F/R" or "Option".

6                      Confidential and Proprietary to ICO Global Communications

Created:29/09/97
Revised 02/06/99

<PAGE>   2016
                                                            EN.IG-ICO-SW/ 000001
   [ICO LOGO]               STATEMENT OF WORK               ISSUE:  3.6
                                                            2 June 1999

         Compliance of the IGF with the IGFR shall be demonstrated by the
         Contractor as described in Annexes 8A, and 8B.

4.6      HIGH LEVEL SYSTEM DESCRIPTION

4.6.1    The Contractor shall prepare and maintain a High Level System
         Description (HLSD) for the IGF consistent with the IGFR.

4.6.2    The Contractor shall maintain an adequately staffed System Team to
         support the HLSD so that at all times the HLSD is internally consistent
         and complete.

4.6.3    The Contractor shall issue -:

         The Draft Contents List of the HLSD for ICO review and approval, 2
         weeks after the date of the Supply Agreement;

         The first draft of the HLSD 2 weeks prior to the Preliminary System
         Design Review.

4.6.4    The first version of the HLSD will be subject to review and approval by
         ICO and issued formally by the Contractor within one month after the
         Preliminary System Design Review (PDR-1).

         A second version of the HLSD will also be subject to review and
         approval by ICO and issued formally by the Contractor within one month
         after the Preliminary System Design Review (PDR-2)

         The final version of the HLSD will be subject to review and approval by
         ICO and issued formally by the Contractor in accordance with Annex 6.

4.6.5    The Contractor shall maintain the HLSD in line with the IGF Design,
         with a revised Version being issued within one month after any System
         Design Review.

7                      Confidential and Proprietary to ICO Global Communications

Created:29/09/97
Revised 02/06/99

<PAGE>   2017
                                                            EN.IG-ICO-SW/ 000001
   [ICO LOGO]               STATEMENT OF WORK               ISSUE:  3.6
                                                            2 June 1999

4.6.6    The HLSD shall contain the following:

         1) A System Reference Model Description that defines the major
         sub-system functional groups of the IGFR, the functionality of each
         major sub-system and the interfaces between the sub-systems;

         2) An IGFR System Analysis showing the processes and procedures of how
         the major IGF sub-systems interact between themselves to provide IGFR
         system functions and performance; including end user services and
         administrative and support services;

         3) An End-to End System Analysis showing how the IGF interacts with
         external elements (e.g. UT and satellite) and the resultant end-to-end
         capabilities, performance budgets and resource budgets.

         To enable this to be done, ICO will provide initial performance budgets
         and resource budgets, for external elements, to be used for this End to
         End System Analysis. The End to End System Analysis will be developed
         and finalised during the course of the Supply Agreement.

4.7      FUNCTIONAL DEFINITION DOCUMENTS

4.7.1    All documentation derived from any of the Applicable Documents,
         referenced in the IGFR, shall be under configuration control, and full
         traceability shall be provided. All new and updated documentation shall
         be provided to ICO.

4.8      EXTERNAL INTERFACE CONTROL DOCUMENTS

4.8.1.   ICO will control the evolution of all Interface Control Documents
         (ICDs) for external IGF interfaces including the Air Interface
         document. ICO will ensure that any modification made to an ICD has been
         co-ordinated with the Contractor and

8                      Confidential and Proprietary to ICO Global Communications

Created:29/09/97
Revised 02/06/99

<PAGE>   2018
                                                            EN.IG-ICO-SW/ 000001
   [ICO LOGO]               STATEMENT OF WORK               ISSUE:  3.6
                                                            2 June 1999

         with the supplier(s) of the corresponding external systems before they
         are adopted into the relevant document.

4.8.2    The Contractor shall support ICO in developing the ICDs with which the
         IGF is concerned and in particular the Air Interface. In so doing, the
         Contractor shall perform analyses and prepare draft material for the
         ICDs in a timely manner to the extent necessary to enable completion of
         the IGF in accordance with the programme schedule.

4.8.3    ICO will receive ICD Change Requests from the concerned parties. ICO
         will, for each ICD change proposed, perform an initial assessment of
         the change. For each ICD Change Request that passes the initial
         assessment, ICO will generate an ICD Change Proposal and distribute it
         to all concerned parties. The ICD Change Proposal will indicate the
         required response date. ICO will resolve responses to the changes
         proposed either through one to one meetings, joint meetings or through
         correspondence as considered necessary by ICO.

4.8.4    After an agreement has been reached regarding an ICD Change proposal,
         an ICD Change Notice will be issued. The ICD Change Notice once
         approved and issued by ICO is a binding document, which all concerned
         parties have to adhere to.

4.8.5    Whenever any proposed changes of an ICD are considered by either party
         to affect the terms of this contract, the change shall be handled in
         accordance with Clause 9 of the Terms and Conditions.

9                     Confidential and Proprietary to ICO Global Communications

Created:29/09/97
Revised 02/06/99

<PAGE>   2019
                                                            EN.IG-ICO-SW/ 000001
   [ICO LOGO]               STATEMENT OF WORK               ISSUE:  3.6
                                                            2 June 1999

4.9      REVIEWS

4.9.1    The Contractor shall conduct Reviews at both system level and subsystem
         level and for progress, according to Annex 4.

4.9.2    The Contractor shall provide all necessary materials for Reviews, and
         will conduct the Reviews. ICO will be represented at all Reviews.

4.10     SYSTEM SIZING

4.10.1   The Contractor shall provide and install the Equipment listed in Annex
         1.

4.10.2   The System sizing rules given in the IGFR section 9 shall apply. These
         shall be augmented, as appropriate, to account for multi-time slot
         services such as high speed data.

4.11     OVERALL SYSTEM SUPPORT AND INTERFACE CONTROL

4.11.1   The Contractor shall, to the extent necessary, support the overall
         development of the ICO System by participating in technical interface
         meetings relevant to the IGF and by working with UT vendors,
         terrestrial network operators, SAN operators, and the spacecraft vendor
         under ICO's guidance and direction.

4.11.2   In providing this support, the Contractor shall endeavour to ensure the
         integrity and satisfactory operation of the integrated ICO System,
         recognising that the requirements of the IGF are stated in the IGFR and
         that the Contractor is not responsible for implementation of other
         elements of the ICO System.

10                     Confidential and Proprietary to ICO Global Communications

Created:29/09/97
Revised 02/06/99

<PAGE>   2020
                                                            EN.IG-ICO-SW/ 000001
   [ICO LOGO]               STATEMENT OF WORK               ISSUE:  3.6
                                                            2 June 1999

4.11.3   The schedule for the production of the ICDs will be as shown in the
         Master Level Schedule.

4.11.4   The Contractor shall support ICO in examining ways of optimising the
         use of terrestrial network resources used in the ICO System, including
         maximising the extension of ICO Air Interface voice coding through ICO
         System to the point of interconnect with external networks, to jointly
         maximise service quality and resource efficiency.

5        CONTRACTOR'S DELIVERABLES

5.1      Annex 1 provides a detailed breakdown of the Equipment and services to
         be provided by the Contractor.

5.2      Any revision to the quantities or services shall be subject to the
         formal Contract Change procedures set out in Clause 9 of the Terms and
         Conditions.

5.3      The Contractor shall be responsible for the packaging, transportation
         and delivery of the Deliverables in accordance with clauses 27 and 31
         of the Terms and Conditions.

6.       INFORMATION, SERVICES & EQUIPMENT

6.1      Annex 2 provides a detailed breakdown of the information, services and
         equipment to be provided by ICO except for installation site conditions
         which are included in Annex 3.

11                     Confidential and Proprietary to ICO Global Communications

Created:29/09/97
Revised 02/06/99

<PAGE>   2021
                                                            EN.IG-ICO-SW/ 000001
   [ICO LOGO]               STATEMENT OF WORK               ISSUE:  3.6
                                                            2 June 1999

6.2      Annex 2 also identifies the milestone dates that such information,
         services and equipment are to be made available to the Contractor.

7.       INSTALLATION SITE CONDITIONS

7.1      Annex 3 identifies the installation site conditions, including services
         and equipment to be provided by ICO.

7.2      Access to each Site shall be made available for the specific purpose of
         allowing the Contractor to inspect the Site conditions, and buildings
         and verify the installation design before the formal Ready for Access
         date.

8.       PROGRAM MANAGEMENT AND IMPLEMENTATION

8.1      Annex 4 identifies the Contractor's obligations for Program Management
         tasks including Quality Assurance and the Master Level Schedule, which
         the Contractor shall follow and work to.

8.2      The Contractor shall establish and implement a Program Management
         Organisation and system that ensures effective management of the Supply
         Agreement.

8.3      The Contractor shall establish an Office which shall be the prime
         interface with ICO and responsible for ensuring that the programme is
         executed on time to the requirements of the Supply Agreement and that
         all Deliverables to ICO are to the required technical and quality
         standard.

8.4      The Contractor shall implement a Documentation Control Procedure
         including configuration control for all documentation of this
         Agreement.

12                     Confidential and Proprietary to ICO Global Communications

Created:29/09/97
Revised 02/06/99

<PAGE>   2022
                                                            EN.IG-ICO-SW/ 000001
   [ICO LOGO]               STATEMENT OF WORK               ISSUE:  3.6
                                                            2 June 1999

8.5      Full traceability shall be provided for all documentation derived from
         any of the Applicable Documents, referenced in the IGFR. All new and
         updated documentation shall be provided to ICO.

9.       TRAINING

9.1      Annex 5 sets out the scope of the training courses that the Contractor
         shall provide.

9.2      The training shall be conducted in the English Language.

9.3      ICO and the Contractor shall work closely together to develop a
         training program that does not impact on the Master Level Schedule and
         which ensures availability of trained ICO staff at the time when O & M
         services are required.

9.4      Any Changes in the training syllabus, numbers of staff to be trained
         and training locations shall be subject to the formal Contract Change
         Control procedures set out in clause 9 of the Terms and Conditions.

10.      DOCUMENTATION

10.1     Annex 6 sets out all the Documentation to be provided, under the terms
         of the Supply Agreement.

10.2     Annex 6 identifies the number of copies of documentation to be provided
         to ICO who shall be responsible for distribution of documentation to
         the individual SAN Operators.

10.3     The documents shall be written in the English Language.

13                     Confidential and Proprietary to ICO Global Communications

Created:29/09/97
Revised 02/06/99

<PAGE>   2023
                                                            EN.IG-ICO-SW/ 000001
   [ICO LOGO]               STATEMENT OF WORK               ISSUE:  3.6
                                                            2 June 1999

11.      SITE WORKING ARRANGEMENT

11.1     Annex 7A sets out the scope of the Site Working Arrangements and the
         safe working practices, which the Contractor shall follow.

11.2     Annex 7B sets out the Joint Working Arrangements for Phased SAN
         Handover and includes the basic principles for software upgrades and
         Multi-SAN integration and the responsibilities for management of the
         operational and test networks.

11.3     Annex 7C sets out the implementation objectives and work plan for Radio
         Network Partitioning and Ground Network Partitioning.

12.      IGF TEST PLAN

12.1 Annex 8A sets out the Tests which the Contractor shall execute in order to
demonstrate and verify the functionality of the IGF.

13.      END-TO-END CALL DEMONSTRATIONS

13.1     Annex 8B sets out the End-to-End call Demonstrations for the IGF
         through which the Contractor shall demonstrate the functionality of the
         IGF equipment with satellite(s), User Terminals and the connection to
         the terrestrial network. 2

14.      ICONET INTEGRATION

14.1     Annex 9 sets out the ICONET Integration campaigns, maximum available
         resources and the mechanism for determining the final scope of the
         Contractor's obligation for providing ICONET Integration work, to be
         selected by ICO, integrating the IGF with the other elements of the ICO
         System.

14                     Confidential and Proprietary to ICO Global Communications

Created: 29/09/97

Revised: 2/6/99
<PAGE>   2024
                                                            EN.IG-ICO-SW/ 000001
   [ICO LOGO]               STATEMENT OF WORK               ISSUE:  3.6
                                                            2 June 1999

15.      IGF ACCEPTANCE CRITERIA

15.1     Annex 10 identifies the criteria to be used for the Acceptance of the
         IGF.

16.      AIR INTERFACE SIGNALLING PROTOCOL VALIDATION

16.1     The Contractor shall perform the scope of work set out in Annex 11 for
         the provision of Air Interface Signalling Protocol Validation.

17.      IGF SYSTEM SUPPORT

         The following shall be made available upon the request of ICO, as set
         out in the Agreement.

17.1     Options identified in Annex 1 of this Statement of Work.

17.2     Delivery of Equipment, Software and Services to increase the system
         capacity to meet demand as specifically ordered by ICO under the terms
         of the Agreement.

15                     Confidential and Proprietary to ICO Global Communications

Created: 29/09/97

Revised: 2/6/99
<PAGE>   2025
                                                       ICO GLOBAL COMMUNICATIONS
                                                         1 QUEEN CAROLINE STREET
                                                                     HAMMERSMITH
                                                                   LONDON W6 9BN
                                                                  UNITED KINGDOM
[ICO LOGO]
                                                           TEL: +44 181 600 1000
                                                           FAX: +44 181 600 1199

                                                           I-CO SERVICES LIMITED
                                               REGISTERED IN ENGLAND: NO.3045294
                                         REGISTERED OFFICE: 1 QUEEN CAROLINE ST.
                                                                LONDON W6 9BN UK

COMMERCIALLY SENSITIVE

                       ANNEX 1: CONTRACTOR'S DELIVERABLES

                             REPRODUCTION PROHIBITED

CONFIDENTIALITY STATEMENT

ALL INFORMATION CONTAINED IN THIS DOCUMENT IS CONFIDENTIAL AND PROPRIETY TO
         ICO GLOBAL COMMUNICATIONS OR ANY OTHER MEMBER OF THE ICO GLOBAL
         COMMUNICATIONS GROUP AND INTENDED ONLY FOR THE ADDRESSEE TO WHOM THIS
         COPY IS ADDRESSED. THE RECIPIENT SHALL NEITHER COPY, DISTRIBUTE,
         DISCLOSE OR USE THE INFORMATION CONTAINED IN IT FOR ANY PURPOSE OTHER
         THAN FOR WHICH THIS DOCUMENT HAS BEEN MADE AVAILABLE NOR PERMIT ANYONE
         ELSE TO DO THE SAME. THE RECIPIENT SHALL BE HELD FULLY LIABLE FOR ANY
         WRONGFUL DISCLOSURE OR USE OF ANY OF THE INFORMATION CONTAINED IN THIS
         DOCUMENT BY HIM, OR HIS OFFICERS OR EMPLOYEES OR ANYONE ELSE TO WHOM HE
         MAKES THE INFORMATION AVAILABLE.

                  DOCUMENT NO.:         EN-IG-ICO-SW-000002

                  VERSION:              3.12

                   DATE:                3 June 1999

       PREPARED            ICO                  NEC

       AUTHOR:             TITLE:               TITLE:

                           SIGNATURE:           SIGNATURE:
<PAGE>   2026
                                                            EN-IG-ICO-SW-000002
   [ICO LOGO]     Annex 1 Contractor's Deliverables         Version 3.12
                                                            3 June 1999

AMENDMENT RECORD
<TABLE>
<CAPTION>

REVISION          DATE             CN NO.     REASON FOR CHANGE
--------          ----             ------     -----------------
<S>               <C>              <C>        <C>
1.0               14/2/97                     NEC Contract Issue

2.0               17/2/97                     To incorporate final NEC comments

2.1                                           18/2/97 To incorporate revision to
                                              para 9.3 and delete para 9.4 plus
                                              renumbering from para 9.3 onwards
                                              - change to new 9.4

2.2               18/2/97                     Add specific IGFR references to options

3.0               26/2/97                     Addition of  warranty services.

3.1               26/2/97                     Minor edits.  All agreed.

3.2               13/08/97                    Changes to cover 60/61 & 120 Days Options and PCS/HPN option.

3.3               07/10/97                    Changes agreed Coggin/Jenkins 24/09/97. Plus editorial edits
                                              as per Woodhouse email of re: SA0424

3.4               25/02/98                    Changes to reflect CR#6 with revisions accepted

3.5               20/3/98                     Exclusion of DCN from optional extended warranty

3.6               25/3/98                     Incorporating additional ICO revisions

3.7               23/4/99                     MCo/KH draft for Phased Handover

3.7X              26/4/99                     NEC PO  comments

3.8               28/4/99                     WG3 & WG5 comments 27/4

                                              WG5/6/D comments 29/4
                                              - Delete 4. "Option"
                                              - Modify 5.2.1.1
                                              - Add the statements to Table B

3.9               30/4/99                     Table A change to include GMSSC & delete VLR & changes to
                                              FS4 & 5 based on Teleconf 29/4/99 Re-inserted NECPO re IGF
                                              is now only 11 SANs clause 3.1.1.  Para 3.2.1 and Table A
                                              re-wording.

3.10              14 May 1999                 Incorporation of discussions between MCo TK on 14 May 1999.
                                              Note the document will need re-numbering and reformatting.

3.10 R1           18 May 1999                 NEC Comments

3.11              26 May 1999                 Final draft changes after discussion of 26 May 1999.

3.11 R1           27 May 1999                 NEC Comments

3.11 R2           28 May 1999                 Incorporation of ICO & NEC meeting on 28 May 1999

3.11.R3           2 June 1999                 Minor edits.

3.12              3 June 1999                 Edits as discussed on 3 June 199 NEC/ICO.
</TABLE>

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                                TABLE OF CONTENTS
<TABLE>

<S>                                                                       <C>
1.    GENERAL                                                               1
2.    DELIVERABLE DOCUMENTATION                                             1

3.    MAJOR SUBSYSTEMS OF THE IGF                                           1

4.    (NOT USED)                                                            4

5.    OPTIONAL SUPPORT SERVICES AND EXTENDED WARRANTY                       4

6.    PERFORMANCE AND CAPACITY REQUIREMENTS OF DELIVERABLE EQUIPMENT        7

7.    DELIVERABLE FUNCTIONS AND FEATURES                                    7

8.    DELIVERABLE EQUIPMENT                                                 7

9.    DELIVERABLE SERVICES                                                  7

10.   SITE INSTALLATION DELIVERABLES                                        7

11.   SYSTEM CONFIGURATION INFORMATION                                      7
</TABLE>

                                      III
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1.       GENERAL

1.1      This Annex describes the Deliverables that the Contractor will deliver
         to ICO. The structure of this Annex is as follows:

1.2      Section 2 describes the deliverable documentation

1.3      Section 3 describes the deliverable major sub systems of the IGF

1.4      Section 5 describes the optional support and warranty services

1.5      Section 6 describes the performance and capacity requirements of the
         Deliverables

1.6      Section 7 describes the deliverable Functions and Features

1.7      Section 8 describes the detailed equipment list

1.8      Section 9 describes the Services that shall be delivered

1.9      Section 10 describes information to be provided by the Contractor
         regarding the Site installation conditions

1.10     Section 11 describes the IGF configuration data to be provided by the
         Contractor.

2.       DELIVERABLE DOCUMENTATION

2.1      The Contractor will deliver all documentation set out in Annex 6.

3.       MAJOR SUBSYSTEMS OF THE IGF

3.1      The Contractor's deliverables shall together provide the functionality
         required by the IGFR and shall include but not be limited to the major
         subsystems detailed in Paragraph 3.1. The progressive handover and
         access to the full IGF is detailed in:

         -        Section 3.2 with regard to the hardware sets

         -        Section 7 with regard to the progressive handover of services
                  and functions.

3.2      The Full IGF comprises:

3.2.1    Twelve (12) SANs each comprising:

         i.       An RFT (Radio Frequency Terminal) sub-system of 5 RFTs (a
                  total of 60 RFTs). including early delivery of 2 RFTs at 6 SAN
                  Sites (a total of 12 RFTs) for the purposes of TT&C

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         ii.      SBS sub-system including its associated :

                  -        DC UPS

                  -        Local SRMS

                  -        clock, reception and distribution sub -system

                  -        IF Distribution subsystem

         iii.     TNM sub-system

         iv.      MSSC/VLR sub-system and its associated DC UPS

         v.       HPN sub-system

         vi.      SAN Management System :

                  -        TMOS WS

                  -        SAN OSS including SRMC functions

         vii.     (Not used)

         viii.    Intra SAN sub system connection cabling and Intermediate
                  Distribution Frame

         ix.      Interconnection cabling to the ICO provided DDF for
                  telecommunications networks as defined in the IGFR.

         x.       Legal Interception Activation sub-system (LIAS)

3.2.2    One EIR

3.2.3    Two HLR/AuCs and their associated DC UPS

3.2.4    Three integrated messaging sub-systems

3.2.5    Three IWFs supporting IS.41-to-ICO and ICO -to- IS.41 interworking
         including the early delivery of the USA IWF, Subject to CR#24.

3.2.6    One DCN sub-system

3.2.7    One Network Management Centre comprising:

         i.       Link-OS (integrating all SAN-OSS)

         ii.      Node-OS / TMOS (management of switching and mobility
                  management elements in the IGF)

         iii.     SRMC sub-system

3.2.8    One Back-up Network Management Centre comprising :

         i.       Link-OS (integrating all SAN-OSS)

         ii.      Node-OS / TMOS (management of switching and mobility
                  management elements in the IGF)

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         iii.     SRMC sub-system

3.2.9    SBS Test Fixtures/Test Equipment (Item 7 in SBS Equipment list, in
         Table 2 in this section to be installed at HNS India and HNS USA until
         ICO decides to move the equipment elsewhere)

3.2.10   System Integration support facility (Item 9 in SBS Equipment list, in
         Table 2 in this section, to be installed at NEC/A. The remaining SBS
         equipment will stay at NEC/A until ICO decides to move the equipment
         elsewhere.)

3.2.11   Set of Spares as specified in Table 2, Section 8 of this Annex.

3.2.12   Special purpose test equipment as defined in Annex 2 and Annex 9 of the
         SOW

3.2.13   Legal Interception Management Sub-system

3.2.14   Dust protection for the RFT Shelters at the UAE SAN site.

3.2.15   All planning, scheduling and implementation activity of, or relating
         to, the China SAN shall be regulated by the terms of a separate Change
         Order to be agreed by the parties in accordance with clause 2.2 of the
         Terms and Conditions.

3.3      DEFINITION OF HARDWARE SETS

3.3.1    The contractor shall handover to ICO the equipment progressively as
         shown in Table A in the column "Hardware Set contents". In addition the
         Contractor shall also provide ICO with access to the equipment
         identified in the column "NEC Hardware with ICO Access" for the purpose
         as defined in Annex 7B Section 4.1.

                           Table A Hardware Sets (HS)
<TABLE>
<CAPTION>
    IGF HARDWARE SET     HARDWARE SET CONTENTS        NEC HARDWARE WITH ICO ACCESS
    ----------------     ---------------------        ----------------------------
<S>                      <C>                          <C>
    HS-1                 1 SAN (DEU)                  Nil

    HS-2                 2 SANs (ARE, ZAF),           MSSC/GMSSC at 8 locations and
                         Backup NMC (BMC) and their   9 DCN nodes at USA, MEX CHL, BRA,
                         interconnection with the     IND, IDN, AUS, KOR, NMC
                         intersite the ICO supplied   (DCN only) including their interconnection
                         links.                       via ICO supplied intersite links.

    HS-3                 3 SANs (MEX, KOR, BRA) and   MSSC/GMSSC at 5 locations, the HLR in NMC 6
                         their interconnection with   DCN nodes at USA, CHL, IND, IDN, AUS, NMC
                         the ICO supplied             (DCN only) including their interconnection with
                         intersite the links.         ICO supplied intersite links.
</TABLE>

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<TABLE>
<CAPTION>

    IGF HARDWARE SET     HARDWARE SET CONTENTS        NEC HARDWARE WITH ICO ACCESS
    ----------------     ---------------------        ----------------------------
<S>                      <C>                          <C>
    HS-4                 5 SANs (USA, CHL, IND AUS,   Nil
                         IDN), Primary NMC (NMC)
                         and their interconnection
                         with the ICO supplied
                         intersite links.
</TABLE>

3.3.2    The facilities provided to ICO with respect to the equipment defined in
         the column 'NEC Hardware with ICO Access' and the level of associated
         support given by the Contractor will be such that ICO and the
         contractor are able to perform the activities as defined in Annex 7B,
         Joint Working Arrangements for Phased SAN Handover.

3.3.3    The hardware at each site listed in the Hardware Sets shall include all
         items specified for that site as defined in Table 3 Contractors
         Deliverables of Section 8.

4.       (NOT USED)

5.       OPTIONAL SUPPORT SERVICES AND EXTENDED WARRANTY

5.1      ADDITIONAL SUPPORT SERVICES DURING THE WARRANTY PERIOD

5.1.1    Upon election by ICO not later than 6 months before planned start date
         of Delux Support, the Contractor will provide SBS Deluxe Support
         Services as described in Section 5.3.

5.1.2    Upon election by ICO not later than 6 months before planned start date
         of Delux Support, the Contractor will provide MSSC Deluxe Support as
         described in Section 5.4.

5.1.3    Upon election by ICO not later than 6 months before planned start date
         of Delux Support, the Contractor will provide HPN Deluxe Support as
         described in Section 5.6.

5.2      ADDITIONAL SUPPORT SERVICES DURING THE POST WARRANTY PERIOD.

5.2.1    EXTENDED BASIC WARRANTY

5.2.1.1  After completion of the Warranty Period specified in clause 40 of the
         Agreement, the warranty condition of clause 40 of the Agreement may be
         extended on an annual basis, for any or all of the RFT, SBS, MSSC,
         LIAS, LIMS, IWF, Messaging, HLR/AuC, EIR, HPN, TNM, DCN or NMC/SAN OSS
         sub-systems.

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5.2.1.2  ICO may elect to receive extended basic warranty services upon written
         notice to the Contractor -- not later than 3 months prior to the
         completion of the warranty period specified in clause 40 of the
         Agreement, or in any subsequent period of extended basic warranty
         services.

5.2.1.3  The ICO election(s) to receive basic warranty services shall be
         continuous, without break in the periods of election.

5.2.2    EXTENDED SBS DELUXE SUPPORT SERVICES

5.2.2.1  Provided ICO has elected to receive SBS Deluxe Support Service in
         accordance with Paragraph 5.1.1. above, ICO may elect to continue to
         receive SBS Deluxe Services upon written notice to the Contractor or
         the provider of the Deluxe Support Services, gives not later than 3
         months prior to the completion of the initial service period, or any
         subsequent renewals thereof. Such SBS Deluxe Support Service shall be
         provided in 2 year periods of service. The ICO election(s) to receive
         SBS Deluxe Support Services shall be continuous without interruptions
         in the periods of election.

5.2.2.2  The SBS Deluxe Support Services to be provided are as described in
         Section 5.3.

5.2.3    EXTENDED MSSC DELUXE SUPPORT SERVICES

5.2.3.1  Provided that ICO has elected to receive MSSC Deluxe Support Services
         in accordance with Paragraph 5.1.2. above, ICO may elect to continue to
         receive MSSC Deluxe Support Services upon written notice to the
         Contractor, or the provider of the MSSC Deluxe Support Services, not
         later than 3 months prior to the completion of the initial or any
         subsequent renewal(s) of the MSSC Deluxe Support Services. The MSSC
         Deluxe Support Services shall be provided in periods of 1 year.

5.2.3.2  The ICO election(s) to receive MSSC Deluxe Support Services shall be
         continuous, without interruptions in the periods of election.

5.2.3.3  The MSSC Deluxe Support Services to be provided are as described in
         Section 5.5.

5.2.4    EXTENDED HPN DELUXE SUPPORT SERVICES

5.2.4.1  Provided that ICO has elected to receive HPN Deluxe Support Services in
         accordance with Paragraph 5.1.3. above, ICO may elect to continue to
         receive HPN Deluxe Support Services upon written notice to the
         Contractor, or the provider of the HPN Deluxe Support Services, not
         later than 3 months prior to the completion of the initial or any
         subsequent renewal(s) of the HPN Deluxe Support Services. The HPN
         Deluxe Support Services shall be provided in periods of 1 year.

5.2.4.2  The ICO election(s) to receive HPN Deluxe Support Services shall be
         continuous, without interruptions in the periods of election.

5.2.4.3  The HPN Deluxe Support Services to be provided are as described in
         Section 5.6.

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5.3      SBS DELUXE SUPPORT SERVICES

5.3.1.1  The DELUXE Support for SBS provides a full period Customer Assistance
         Centre (CAC) on 24 hours per day, 7 days a week for all SAN locations.
         Additionally, manufacturer will maintain a team of experts dedicated to
         ICO for trouble shooting and support services of all SBS manufacturer
         supplied equipment. Under the DELUXE support maintenance agreement, SBS
         manufacturer technical staff at the manufacturer's engineering centre,
         dispatched to ICO locations as required or temporarily placed at
         selected locations will maintain capability of the SBS manufacturer
         supplied equipment, including:

            i. fault isolation and service restoration, in co-operation with the
               ICO technical staff,

           ii. problem investigation and problem resolution in co-operation
               with the SBS manufacturer support team at the manufacturer's
               engineering centre

          iii. creation and reporting on trouble ticket system for SBS equipment

           iv. system engineering for planning system extensions, and traffic
               sizing.

5.3.1.2  If ICO elects to exercise this option, the parties will agree a
         definitive scope of work consistent with the basis set out above which
         may include resident SBS support staff at ICO selected locations.

5.4      MSSC DELUXE SUPPORT SERVICES

5.4.1    Introduction

5.4.1.1  The contractor shall provide MSSC Deluxe Support Services which
         comprises Systems Services the content of which includes:

         i.       System Maintenance

         ii.      Spares Replenishment.

5.4.2    System Maintenance

5.4.2.1  System Maintenance comprises the following services.

5.4.2.2  Emergency Services

         The Contractor shall at any time in an Emergency situation, when
         requested by ICO, provide ICO with the Emergency Services consisting of
         telephone support and on-site support.

5.4.2.3  Trouble Report Handling Services / Trouble Report Guideline

         The Contractor shall provide ICO with Trouble Report Handling Services
         relating to MSSC.

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5.4.2.4  Software Update Service

         Any part of the Software found to cause a measurable deviation from the
         Software functionality, and which is not of an Emergency character
         shall be corrected by supplying Software Updates to ICO in accordance
         with the schedule supplied by the Contractor in its Trouble Report
         Answer.

         New or updated documentation on Software Updates will be furnished to
         ICO free of charge.

5.4.2.5  Implement and/or install, free of charge, the corrected Software,
         supplied in accordance with the Software Update Services, on one SAN
         Site. ICO shall perform and be responsible for the implementation
         and/or installation on the rest of the SAN or NMC Sites.

5.4.2.6  Consultation services

         During Normal Working Hours perform Consultation Services, mainly
         consisting of answers and recommendations due to general System
         operation and maintenance routine inquiries identified by ICO's support
         personnel.

5.4.3    Spares Replenishment

5.4.3.1  Replenishment of Spares acquired with the initial or subsequent MSSC
         equipment procurement.

5.4.4    Excluded Hardware and Software

5.4.4.1  The System Services do not cover Hardware or Software which is damaged
         due to ICO's or any third parties misuse or mishandling, packing,
         repairs or attempted modifications.

5.4.4.2  The System Services shall not apply to any failure caused by
         modification of the Hardware or Software without the Contractor's
         written approval and failures caused by interworking equipment not
         supplied under the Agreement.

5.4.4.3  Consumable parts such as lamps, fuses, batteries, are excluded from the
         System Services.

5.4.5    Scope of the MSSC Support Services

5.4.5.1  The MSSC Support Services cover the following:

         i.       12 MSSC

         ii.      2 HLR/AuCs

         iii.     1EIR

         iv.      2 OSS (1 as an on-line system)

         v.       3 combined messaging and SMSC platforms.

         vi.      3 IWFs supporting ICO-to-IS.41 and IS.41-to-ICO interworking

         vii.     12 Legal Interception Activation Sub-System (LIAS) and 1 Legal
                  Interception Management Sub-system (LIMS).

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5.5      MSSC DELUXE SUPPORT SERVICES II

5.5.1    The services described in Section 5.4 shall be included in MSSC DELUXE
         SUPPORT SERVICES II, in addition to the Repair and Replacement Service
         described in Paragraph 5.5.2.

5.5.2    Repair and Replacement Services 5.5.2.1 Repair or replace any Hardware
         found by ICO to be faulty by reason of defective material, design or
         workmanship which results in the Hardware not conforming to and
         functioning and operating in accordance with the criteria and
         specification set forth in the Agreement. 5.5.2.2 New or update
         Documentation or Hardware due to repair or modifications will be
         furnished to ICO free of additional charge.

5.6      HPN DELUXE SUPPORT SERVICES

5.6.1.1  HPN Deluxe Support Service provides one year depot maintenance for the
         HPN hardware and software. Depot maintenance support does not include
         travel which if required will be charged in addition.

5.6.1.2  The HPN Support Service cover the following:

         i.       12 HPN

         ii.      12 HPN PCS

6.       PERFORMANCE AND CAPACITY REQUIREMENTS OF DELIVERABLE EQUIPMENT

         The equipment delivered by the Contractor, including its major
         subsystems and including all other associated equipment and facilities
         including software necessary for its correct operation, shall when
         integrated to form the IGF, shall satisfy the requirements set forth in
         Table 1 of this Section of this Annex.

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                                     ANNEX 1

                 TABLE 1 - PERFORMANCE AND CAPACITY REQUIREMENTS

                                       9

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7.       DELIVERABLE FUNCTIONS AND FEATURES

7.1      The Contractor shall deliver the IGF with all of the associated
         equipment and facilities including necessary software so that the
         functions and features as described in the IGFR will operate as
         specified. The incremental delivery of Functions and Features and their
         relationship to Hardware Sets are described in this section.

7.2      The Service Capabilities, Functions and Features (referred as a
         Function Set (FS)) shall be handed over progressively to ICO within the
         handed over equipment and the equipment that ICO has access to as
         detailed in Section 3.2 Definition of Hardware Sets. The definition of
         the FSs are provided in Tables B to F inclusive. Each FS is
         incremental, for the avoidance of doubt each FS shall include the
         functions and features that were included in the previous FS. For
         example FS-2 provides In-Band Data it also includes MO and MT Telephony
         which was included in FS-1.

7.3      The definition of terms for the Network Management System as described
         in Tables B to F are detailed in this Annex.

7.4      The handover of FSs is linked with the handover of HS and is given in
         Annex 10 - Acceptance Criteria.

7.5      The schedule for delivery, installation, commissioning, integration and
         testing of the equipment and its integration into the total IGF is set
         forth in Annex 4 of this SOW.

7.6      Functions and features marked F/R and Options in the IGFR shall be
         excluded from delivery within the timetable laid out in Annex 4 of this
         SOW.

7.7      The IGFR 4.10.2 Semi-fixed terminals, specifies that the IGF shall
         support the use of Semi-fixed terminals. Each FS shall provide services
         and functions as defined in Tables B to F in this Annex. Semi-fixed
         terminals (as per IGFR 4.10.2) shall be supported by the IGF from FS1.
         However, the services and functions that a Semi-fixed terminal will be
         able to use are limited to the functions and services delivered in each
         FS.

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                            Table B - Function Set 1

                                      FS-1

SERVICES

1.       Mobile Originated Voice Call (No Diversity) (IGFR 4.1.1.1)

2.       Mobile Terminated Voice Call (No Diversity) (IGFR 4.1.1.1)

3.       Emergency Calls (IGFR 4.1.1.2)

4.       Mail and Messaging Platform Services (platform functions only of IGFR
         4.5.1, IGFR 4.5.6, IGFR 4.5.7 and IGFR 4.5.8)

5.       Voice mail (IGFR 4.5.2)

6.       Fax mail (IGFR 4.5.3. Note subject to limitation that Faxes may be
         deposited or delivered from the mail system via the terrestrial network
         connections and not via the air interface).

7.       Email (IGFR 4.5.4. Note, subject to limitation that transport via the
         air interface is not supported)

8.       SMS (No HPN Escalation) (IGFR 4.1.2.1, 4.5.5)

9.       Supplementary Services (including General functions as IGFR 4.3.1

9.1      Line Identification (IGFR 4.3.2)

9.2      Call Forwarding (IGFR 4.3.3)

9.3      Call Waiting/Hold (IGFR 4.3.4)

9.4      Closed User Group (IGFR 4.3.6)

9.5      Call Restriction (IGFR 4.3.7)

9.6      Multi-Party (IGFR 4.3.5)

9.7      Advice of Charge (IGFR 4.3.8)

10.      Subscription to ICO Services (HLR, AuC, Messaging Platform) (IGFR 4.7)

ADMINISTRATION AND SUPPORT SERVICES

1.       MSSC CDR generation (no HPN) (IGFR 5.1.1)

2.       Messaging Platform CDR generation (IGFR 5.1.2)

3.       Subscriber Administration (HLR, AuC, Messaging Platform) (IGFR 5.2.1,
         5.2.3, 5.2.5)

4.       Mobile Equipment Monitoring (IGFR 5.3)

5.       Customer Care and Operator Support (IGFR 5.4)

6.       Fraud management (IGFR 5.5)

FUNCTIONS

1.       Registration (IGFR 6.6)

2.       Intra ChM Handover (using channel re-assignment) (part of IGFR 6.12)

2.1      Intra- spot beam (Zarc)

2.2      Intra-satellite (beam)

2.3      Inter-satellite

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3.       MP paging (IGFR 6.8)

4.       Single satellite UT Position determination (part of IGFR 6.19)

5.       Classmark handling (IGFR 6.30)

6.       Access Class Handling (IGFR 6.28)

7.       Legal Intercept (LIAS only) (part of IGFR 6.20)

8.       SAN-SRMS Satellite Resource planning file delivery to relevant
         subsystems (part of IGFR 6.19, 6.23, 6.25, 6.28, 6.40, 6.47, 6.48,
         6.49, 6.50, 6.51, 7.1, 7.2, 7.8) 9.

SAN-NMS functionality including:

         -        General NMS features (IGFR 7.1, 7.2, 7.3, 7.4, 7.5, 7.8, 6.5,
                  6.6, 6.47, 6.52 except for the exclusions listed below)

         -        Configuration management (IGFR 7.1, 7.2, 7.8, 6.5, 6.50 except
                  for the exclusions listed below)

         -        Fault management (IGFR 7.1, 7.2, 7.3, 7.8, 6.56 except for the
                  exclusions listed below)

         -        Performance management (IGFR 7.1, 7.2, 7.4, 7.8, 6.49, 6.55,
                  6.58 except for the exclusions listed below)

         -        Security management (IGFR 7.1, 7.5, 7.8 except for the
                  exclusions listed below)

         The following exclusions from 9. above:

         -        Functions dependant on Link-NMS (such as Master Work Order,
                  NMC Status Views and Network Display),

         -        Dimensioning data configuration i.e. Application S/W
                  Management incorporating download of software releases from
                  the NMC

         -        Non-dimensioning Data Configuration, i.e. Network element
                  parameter changes from the NMC)

         -        Performance Management (i.e. performance management data
                  management & distribution from a global perspective)

         -        Fault Management correlation (IGFR 7.3.3.4, 7.3.3.5,
                  7.3.3.6-1,3,4, 7.8.4.12.3-1, 7.8.12.4.3)

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                            Table C - Function Set 2

                                      FS-2

SAME AS FS-1 WITH THE FOLLOWING ADDITIONAL SERVICES AND FUNCTIONS:

SERVICES

1.       HPN service (Single SAN only) (IGFR 4.4.1)

2.       In-band Data (IGFR 4.2.3)

3.       In-band Fax (IGFR 4.1.3.4)

4        Cellular Satellite Roaming Bothway GSM/ICO (IGFR 4.8.4 and relevant
         sections of IGFR 4.8.1 (for GSM/ICO variants) IGFR 4.8.5 IGFR 4.8.6
         IGFR 4.8.7 IGFR 4.8.8. for bothway ICO/GSM Roaming)

5        Natural Language Support (IGFR 4.4.3)

FUNCTIONS

1.       Inter ChM Handover (using channel re-assignment) to include 1.1 Intra
         SAN Handover

2.       MP paging (2 SANs) (part of IGFR 6.8)

3.       Inter-SAN call routing 3.1 User traffic may be routed across full ICO
         terrestrial network using transit switching capabilities of MSSC (IGFR
         6.7.1, 6.7.2)

4.       HPN message forwarding limited to 2 SANs under test (part of IGFR
         6.52).

5.       Legal Intercept (LIAS and LIMS) (IGFR 6.20)

6.       NODE-OS management of MSSC (IGFR 7.8.4)

7.       SRMS functionality at BNMC (Relevant sections of IGFR 6.19, 6.23, 6.25,
         6.28, 6.40, 6.47, 6.48, 6.49, 6.50, 6.51, 6.52, 6.59, 7.1, 7.2, 7.8),
         except data synchronisation between PNMC and BNMC, and site switch-over
         between PNMC and BNMC (Relevant sections of IGFR 7.1.2, 7.1.7)

8.       LINK-NMS at BNMC and SAN-NMS functionality including (relevant sections
         of IGFR 7.1, 7.2, 7.3, 7.4, 7.5, 7.8, 6.5, 6.6, 6.47, 6.49, 6.50, 6.52,
         6.55, 6.56, 6.58):

         -        Functions dependant on Link-NMS (Master Work Order, NMC Status
                  Views and Network Display),

         -        Dimensioning data configuration i.e. Application S/W
                  Management incorporating download of software releases from
                  NMC

         -        Non-Dimensioning Data Configuration (i.e. Network element
                  parameter changes from NMC)

         -        Performance Management (i.e. performance management data
                  management & distribution from a global perspective)

         -        Fault management correlation

         The following exclusions from item 8) in the above:

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                                      FS-2

         -        Accounting Management (IGFR 7.1.2.26, 7.1.14.2, 7.1.14.5,
                  7.6.1, 7.8.14.6)

         -        Data synchronisation between PNMC and BNMC, and site
                  switch-over between PNMC and BNMC (IGFR 7.1.2.4, 7.1.2.27,
                  7.1.2.29, 7.1.7.1.5, 7.1.7.1.6, 7.1.10.5, 6.5.1.21, 6.5.1.22)

9.                DCN NMS functionality from BNMC  (part of IGFR 6.5)

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                            Table D - Function Set 3

                                      FS-3

SAME AS FS-2 WITH THE FOLLOWING ADDITIONAL SERVICES AND FUNCTIONS:

SERVICES

1.       GSM Data (IGFR 4.2.1 but restricted to speeds up to 2400 bit/s)

2.       Cellular Satellite Roaming Bothway IS41/ICO (IGFR 4.8.2) that is all
         elements of IGFR 4.8.

3.       ICO dual numbering (IGFR 4.4.2)

ADMINISTRATION AND SUPPORT SERVICES

1.       Subscriber Administration (ILR) (IGFR 5.2.2, 5.2.6)

FUNCTIONS

1.       Inter ChM Handover (using channel re-assignment) to include 1.1 Inter
         SAN Handover (part of IGFR 6.12)

2.       Diversity (IGFR 6.11)

3.       Diversity Handover (IGFR 6.12)

4.       Dual satellite UT Position determination (IGFR 6.19)

5.       Dynamic link power control (IGFR 6.47)

6.       HPN message forwarding limited to 3 additional SANs (IGFR 6.52)

7.       Integrated LINK-NMS with NODE-OS (The second sentence of IGFR
         7.8.4.1.1)

8.       LINK-NMS and SAN including

         -        Accounting Management (IGFR 7.1.2.26, 7.1.14.2, 7.1.14.5,
                  7.6.1, 7.8.14.6)

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                            Table E - Function Set 4

                                      FS-4

ALL IGFR SPECIFIED SERVICES AND FUNCTIONS, EXCEPT THOSE ADDED IN FS-5:

SERVICES

1        Asymmetric Data 9600/2400 bit/s and 4800/2400 bit/s (IGFR 4.2.2.11)

2        Other value added services (IGFR 4.9)

Functions

1.       LINK-NMS and SAN including

         -        Data synchronisation between PNMC and BNMC, and site
                  switch-over between PNMC and BNMC (IGFR 7.1.2.4, 7.1.2.27,
                  7.1.2.29, 7.1.7.1.5, 7.1.7.1.6, 7.1.10.5, 6.5.1.21, 6.5.1.22)

2.       SRMS functionality including

         -        Data synchronisation between PNMC and BNMC, and site
                  switch-over between PNMC and BNMC (Relevant sections of IGFR
                  7.1.2, 7.1.7)

                            Table F - Function Set 5
                                      FS-5

SAME AS FS-4 WITH THE FOLLOWING ADDITIONAL SERVICES

1.       GSM Fax - up to 9600 bit/s (IGFR 4.1.3.1)

2.       GSM Fax - up to 14.4 kbit/s (IGFR 4.1.3.2)

3.       Alt Voice GSM Fax - 4800 bit/s (IGFR 4.1.3.3)

4.       GSM Data - up to 38.4 kbit/s (IGFR 4.2.2)

(Note 1: 4.2.2.3 Synchronous non-transparent service feature for data rates
above 9600 bit/s shall be available no later than by the release date of CME20
R8 Main. IGFR 4.2.2.11 Asymmetric data service is provided as part of FS4.)

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8.       DELIVERABLE EQUIPMENT

8.1      Deliverable Equipment

The deliverable equipment is set out in Table 2 of this Annex.

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                                     ANNEX 1
                       TABLE 2 - CONTRACTORS DELIVERABLES

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8.2           Notes To Ax & B Items

8.2.1.1       General Comments:

              1) Any O&M functions for selected items are not included.

8.2.1.2       Note 1 : "SAN TO SAN HANDOVER."
              Refer to Section 6.12 in the IGFR. The hardware required to
              implement and test SAN-SAN handovers, is test equipment. This
              includes the purchase of specific test instrument protocol suites
              to test the added functions.

8.2.1.3       Note 2 : "Language Character Sets"

              Refer to Section 4.4.3 in the IGFR.

8.2.1.4       Note 3 : "Geographic Location"

              Refer to Section 6.19.5 in the IGFR.

8.2.1.5       Note 4 : "Multiple Language Announcement".

              Refer to Section 4.4.3 in the IGFR. The 2 recorded announcement
              machines mentioned in the following note are included in the
              equipment list for the MSSC (AST-DR, Equipment item 1.2.3.2)

8.2.1.6       The following technique is proposed as a way to support a language
              indicator per subscriber.

              i.            The indicator shall be stored as part of the
                            subscriber profile within the HLR. This involves
                            support in the operation and maintenance interface
                            for entering the language preference, changing it,
                            and printing it back out again. This data is reload
                            marked as is the rest of the subscriber profile.
                            Number range and mapping to national strings (e.g.
                            1=U.S.A.) should be defined. Administrative
                            functions outside the HLR (e.g. SOG) are also
                            influenced in a minor way.

              ii.           The indicator shall be downloaded to VLR along with
                            the rest of the subscriber data.

              iii.          Transportation is via the extension area in MAP. The
                            impact here is on the MAP handling blocks on the HLR
                            end and on the VLR end (two blocks). The data
                            storage block in VLR is impacted to store the new
                            value.

              iv.           The support for character sets (e.g. for SMS) is
                            limited to that offered in current GSM systems. As
                            other operators are already requiring additional
                            alphabets and characters, this is unlikely to remain
                            a problem in future.

8.2.1.7       NOTE 5 : "EMERGENCY CALL"

              Refer to Section 4.1.1.2. The hardware required to implement and
              test Emergency Call expansion, is test equipment. This include the
              purchase of specific test instrument protocol suites to test the
              added functions.

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8.2.1.8       NOTE 6 : "FAX GROUP 3 OVER 9.6KBIT/S"

              Refer to Section 4.1.3.2 in the IGFR. Channel base quotation in
              the MSSC is needed and provided in Item 16. The hardware quoted in
              this item means test equipment for implementing and testing FAX
              over 9600bit/s functionality. This include the purchase of
              specific test instrument protocol suites to test the added
              functions.

8.2.1.9       NOTE 7 : "SPEECH FOLLOWED BY/ALTERNATIVE WITH DATA"

              Refer to Section 4.2.3 in the IGFR. The hardware required to
              implement and test Alternate speech/data, is test equipment. This
              include the purchase of specific test instrument protocol suites
              to test the added functions.

8.2.1.10      NOTE 8 : "CIRCUIT MODE DATA (9.6 KBPS - 38.4 KBPS)

              Refer to Section 4.2.2 in the IGFR. Channel base quotation in the
              MSSC is needed and provided in Item 16. The hardware required to
              implement and test DATA over 9600bit/s, is test equipment. This
              include the purchase of specific test instrument protocol suites
              to test the added functions.

8.2.1.11      NOTE 9 : "HPN PRIVACY USING ENCRYPTION"

              Refer to Section 4.4.1.2 in the IGFR.

8.2.1.12      NOTE 10 : "ALTERNATIVE SATELLITE CONSTELLATION"

              This item is not bided. Refer to Section 6.23 in the IGFR.

8.2.1.13      NOTE 11 : "NETWORK ACCESS AVAILABILITY"

              Refer to Section 6.8 in the IGFR. The hardware required to
              implement and test multi SAN paging, is test equipment. This
              includes the purchase of specific test instrument protocol suites
              to test the added functions.

8.2.1.14      NOTE 12 : "DIVERSITY ALLOCATION CAPACITY"

              Refer to Section 6.11.1 in the IGFR.

8.2.1.15      NOTE 13 : "ADDITION/REMOVAL OF DIVERSITY"

              Refer to Section 6.11.2 in the IGFR.

8.2.1.16      NOTE 14 : "SOFT DECISION DECODE"

              Soft Decision will be performed in the SBS.

8.2.1.17      NOTE 15 : "INCOMING CALL DETAILS/CALL-BACK FUNCTION "

              Tentative release date is 1Q2000.

                                       10

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8.2.1.18      NOTE 16 : "SOFTWARE FOR HIGH SPEED CIRCUIT SWITCHED DATA AND GROUP
              FAX SERVICES" (PER CHANNEL BASIS)

              What we propose will provide support for data at rates in the
              range of 9.6 - 38.4 kbit/s. Circuit Switched Data at these rates
              will be supported from release R8 of CME20. Fax Group 3 (over 9.6
              kbit/s) is similarly supported.

8.2.1.19      The critical dimensioning parameter in calculating the price is
              the number of GIWU channels necessary to support the required data
              and fax total traffic. THIS QUOTATION IN SUBJECT TO FINALISATION
              OF THE AIR INTERFACE SPECIFICATION

9.            DELIVERABLE SERVICES

9.1           The Contractor shall install, integrate, test, and hand over to
              ICO all individual SANs and the NMC and backup NMC that make up
              the integrated IGF.

9.2           ICONET Integration programme as defined in Annex 9 and selectable
              by ICO. Some Iconet Integration campaigns may be competed after
              handover according to the Iconet Integration campaign schedule.

9.3           Training programme as defined in Annex 5.

10.           SITE INSTALLATION DELIVERABLES

              The Contractor shall provide:

10.1          confirmation that the information and services being provided by
              ICO in accordance with Annex 2 and 3, present no impediment to the
              SAN implementation program

10.2          antenna foundation design drawings (SIC-STD-017, 017-1, 018 ) for
              typical wind loading, based on NEC supplied drawings
              SIC-STD-017,017-1,018, within one month of contract signature

10.3          the anchor bolts, templates and anchor bolt setting up procedures
              for the antenna foundations three months prior to commencement of
              NEC installation

10.4          the detailed specification for the supporting rod and cable ducts
              for the GPS systems during the SBS FDR

10.5          the RFT shelter foundation specification, including, but not
              limited to physical dimensions and weight, based on NEC supplied
              drawings SIC-STD-006, within one month of contract signature

10.6          the AC power distribution board inside all RFT shelters

10.7          specifications defining all of the interface points and the
              associated interface conditions for all Equipment supplied, in
              accordance with a schedule to be agreed at the DRM

10.8          the Equipment floor layout plans for all Sites for all Equipment
              to be supplied by the Contractor, based on NEC supplied drawings
              SIC-STD-003/003-1 for RFT shelters, and SIC-STD-004 for Hub
              Buildings, within one month of contract signature

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10.9          the specification of the power consumption, including, but not
              limited to start-up and normal operating loads and required
              no-fuse breaker capacities and quantities for all of the equipment
              that will be supplied by the Contractor and for future expansion
              of the Equipment, in accordance with the NEC provided Equipment
              List, within one month of contract signature

10.10         the specification of Equipment heat dissipation for all items of
              Equipment that will be supplied by the Contractor and for future
              expansion of the Equipment, in accordance with the NEC provided
              Equipment List, within one month of contract signature

10.11         the environmental conditions that shall apply for all items of
              Equipment that will be supplied by the Contractor, have been
              specified in the IGFR Section 8.11.3

10.12         Certificates, where required, to confirm that all the equipment,
              supplied for use in the country, meets all local and federal
              regulations and or standards applicable in that country.

11.           SYSTEM CONFIGURATION INFORMATION

              ICO shall provide the configuration information in the format
              defined by the Contractor. The Contractor shall configure the
              equipment as per the supplied configuration information and shall
              provide ICO at each handover the details of the configuration in a
              form to be agreed.

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<PAGE>   2050
                                                       ICO GLOBAL COMMUNICATIONS
                                                         1 QUEEN CAROLINE STREET
                                                                     HAMMERSMITH
                                                                   LONDON W6 9BN
                                                                  UNITED KINGDOM
[ICO LOGO]
                                                           TEL: +44 181 600 1000
                                                           FAX: +44 181 600 1199

                                                           I-CO SERVICES LIMITED
                                               REGISTERED IN ENGLAND: NO.3045294
                                         REGISTERED OFFICE: 1 QUEEN CAROLINE ST.
                                                                LONDON W6 9BN UK

                          ANNEX 2: SERVICES & EQUIPMENT

                             COMMERCIALLY SENSITIVE
                             REPRODUCTION PROHIBITED

CONFIDENTIALITY STATEMENT
ALL INFORMATION CONTAINED IN THIS DOCUMENT IS CONFIDENTIAL AND PROPRIETY TO ICO
GLOBAL COMMUNICATIONS OR ANY OTHER MEMBER OF THE ICO GLOBAL COMMUNICATIONS GROUP
AND INTENDED ONLY FOR THE ADDRESSEE TO WHOM THIS COPY IS ADDRESSED. THE
RECIPIENT SHALL NEITHER COPY, DISTRIBUTE, DISCLOSE OR USE THE INFORMATION
CONTAINED IN IT FOR ANY PURPOSE OTHER THAN FOR WHICH THIS DOCUMENT HAS BEEN MADE
AVAILABLE NOR PERMIT ANYONE ELSE TO DO THE SAME. THE RECIPIENT SHALL BE HELD
FULLY LIABLE FOR ANY WRONGFUL DISCLOSURE OR USE OF ANY OF THE INFORMATION
CONTAINED IN THIS DOCUMENT BY HIM, OR HIS OFFICERS OR EMPLOYEES OR ANYONE ELSE
TO WHOM HE MAKES THE INFORMATION AVAILABLE.

                 DOCUMENT NO.:     EN-IG-ICO-SW/000003
                 -------------------------------------
                 VERSION:          2.8
                 -------------------------------------
                 DATE:             7 June 1999
                 -------------------------------------

        PREPARED           ICO                      NEC
        -------------------------------------------------------
        AUTHOR:            TITLE:                   TITLE:
        -------------------------------------------------------
                           SIGNATURE:               SIGNATURE:
        -------------------------------------------------------

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AMENDMENT RECORD

<TABLE>
<CAPTION>
REVISION           DATE        CN NO.     REASON FOR CHANGE
---------------------------------------------------------------------------------------------
<S>             <C>            <C>        <C>
1.0               14/2/97                 Contract Issue
2.0               17/2/97                 Final NEC Comments
2.1               18/2/97                 Amendments to Table 2-1
2.2               26/2/97                 Minor editorial changes
2.3               19/3/99                 Editorial Changes to V2.3 and Incorporation of
                                          CCR83+86 and CCR105
2.4               24/3/99                 Modified to reflect Mods for  Phased SAN Handover
2.5               14/5/99                 Incorporates results of discussions with TK of NEC.
2.5 R1            18/5/99                 NEC Comments
2.6             16 May 1999               Revised after NEC ICO meeting of 26 May 1999.
2.6 R1.0        27 May 1999               NEC Comments
2.6 R2.0        28 May 1999               Incorporates  results of discussions with ICO and
                                          NEC on 28th May 1999
2.6 R3          2 June 1999               Minor edits.
2.7             3 June 1999               Minor edits as per NEC/ICO meeting o 3 June.
2.8             7 June 1999               Minor edits to Annex 1
</TABLE>

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                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
<S>                                                                                         <C>
1.   GENERAL                                                                                1

2.   INFORMATION TO BE PROVIDED BY ICO                                                      1

4.   EQUIPMENT  TO BE PROVIDED BY ICO                                                       2

MODEL TEST EQUIPMENT WILL BE                                                                4

INSTALLED.                                                                                  4

TABLE 2-2 - SPECIAL TEST EQUIPMENT FOR IGF FACTORY PRE-INTEGRATION TEST                     5

NO.                                                                                         5

TEST EQUIPMENT                                                                              5

MODEL NO.                                                                                   5

Q'TY                                                                                        5

REMARKS                                                                                     5

5.  EQUIPMENT FOR END-TO-END CALL DEMONSTRATION                                             5
</TABLE>

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1.     GENERAL

1.1    ICO shall be responsible for the provision of the following information,
       Services and Equipment, by the specified dates shown in Appendix 1.

2.     INFORMATION TO BE PROVIDED BY ICO

2.1    ICO shall be responsible for providing the following in accordance with
       the Terms and Conditions and the Master Level Schedule

2.2    ICO to advise the Site Access Date for the SAN Site in China.

2.3    ICO shall provide the configuration information in a format (to be
       defined by the Contractor, as per SOW Annex 1) that will be used by the
       Contractor to build the databases and physical configurations for all sub
       systems of the IGF in order to meet the performance and capacity
       requirements set out in Annex 1, Table 1.

2.4    ICO shall provide initial performance and resource budgets, for external
       elements, to be used for End-to-End System Analysis in the HLSD.

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3.     COMMUNICATIONS SERVICES TO BE PROVIDED BY ICO ICO shall be responsible
       for providing the following:

3.1    Inter-Site SAN and NMC digital communication links, terminated on a DDF,
       prior to the commencement of testing at each SAN Site. The quantity of
       inter-Site SAN and NMC digital communication links required by the
       Contractor will be confirmed no later than the Final System Design.

       Review for testing and the dates they are required by the Contractor have
       been documented by ICO in Doc EN-NE-ICO-PL-000430 of 2 June 1999 revised
       to reflect PSH requirements. This document will be updated from time to
       time, under Clause 9 Change Control Procedure and or Clause 19 Milestones
       and Progress Reporting.

3.2    Digital communication links from SAN to Point of Interconnect (i.e. to
       PSTN and other networks), terminated on a DDF, prior to the commencement
       of operational testing and as required to support IGF testing and
       demonstration at each SAN Site. The quantity of digital communication
       links, required by the Contractor, will be confirmed no later than the
       Final System Design Review.

3.3    Free assignment and use of SAN and ICO satellite air time and inter-Site
       circuits, as necessary and relevant to the work, for the duration of the
       ICONET set up and testing, by the Contractor.

4.     EQUIPMENT TO BE PROVIDED BY ICO

       ICO shall be responsible for providing the following -:

4.1    Test equipment as listed in Table 2-1 at each SAN and Table 2-1-1 at the
       NMC and BMC, for the duration of the installation and Test period in
       accordance with the Master Level Schedule, Annex 4.

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4.2    Test equipment as listed in Tables 2-2 at IGF Factory Pre-Integration
       sites, for the duration of the IGF Factory Pre-Integration period in
       accordance with the Master Level Schedule, Annex 4.

4.3    A Test SRMC is required. The sourcing and finalisation of the TEST SRMC
       functions will be agreed by the Contractor and ICO within the G156(E)
       Change Order. The Test SRMC will be used to produce the radio
       configuration data that will be required to configure the SANs used for
       theICONET Integration G156 activities and also to configure the DEU SAN
       prior to AS-2. The Test SRMC will then be made available to the
       Contractor post AS2 for the purposes of IGF testing and integration.

4.4    The Test Equipment that ICO has made available to NEC as described in
       Tables 2-1, 2-1-1 and 2-2 shall be left at the sites.

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TABLE 2-1. TEST EQUIPMENT FOR EACH SAN

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
NO.     TEST EQUIPMENT                      MODEL NO.                       Q'TY           REMARKS
-----------------------------------------------------------------------------------------------------------------------
STANDARD TEST EQUIPMENT
<S>     <C>                                 <C>                             <C>            <C>
    1   Spectrum Analyzer                   HP 8563E Option 006             1  Set
    2   Microwave Counter                   HP 5350B                        1  Set
    3   Power Meter                         HP 437B                         1  Set
    4   Power Sensor for Power Meter        HP 8481A                        1  Set
    5   Scalar Network Analyzer             HP 8757D                        1  Set
                                            HP 85025A                       2  Sets
    6   RF Sweep Generator                  HP 8350B                        1  Set
                                            HP 83595C                       1  Set
    7   Digital Multimeter                  HP 34401A                       1  Set
    8   RF Step Attenuator 10 dB Step       HP 8494B                        1  Set
    9   RF Step Attenuator 1 dB Step        HP 8495B                        1  Set
   10   Microwave Link Analyzer             ME 4501B                        1  Set
   11   Printer                             YS-11841H                       1  Set
   12   Coaxial Attenuator Set              HP 11582A                       1  Set
   13   Coaxial Coupler (2dB)               HP 773D                         1  Set
   14   RF Coaxial Hybrid                   HP 11667A                       1  Set
   15   IF Coaxial Hybrid                   TBA                             1  Set
   16   Digital Storage Oscilloscope        HP54520A                        2  Sets
        (50 MHz)
   17   Logic Analyser (100 MHz, 32         HP16500B                        1  Set
        Channels)
   18   LAN Analyser                        TBA                             1  Set
   19   Protocol Analyser                   Siemens K1103                   1  Set
   20   E1/T1 Test Set                      TTC T Berd  209A                1  Set
   21   PC                                  TBA                             1  Set
   22   Ethernet Sniffer                    PT - 85EN/TJ                    1  Set
   23   ISDN Tester                         TBA                             1  Set
   24   Data Logger                         TBA                             1  Set
   25   Power Analyser                      TBA                             1  Set

-----------------------------------------------------------------------------------------------------------------------
SPECIAL TEST EQUIPMENT

1       UT Load Simulator                   N/A                             1  Set
2       Satellite Channel Simulator         N/A                             1  Set
3       PCS Checker                         N/A                             1  Set
-----------------------------------------------------------------------------------------------------------------------
</TABLE>

Note
1.     The model number specified above is a reference model number. Therefore
       the same of the equivalent model test equipment will be installed.

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Table 2-1-1 TEST EQUIPMENT FOR THE NMC AND BNMC

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------
NO.     TEST EQUIPMENT                                  MODEL NO.           QTY     REMARKS
----------------------------------------------------------------------------------------------------
<S>     <C>                                             <C>                 <C>     <C>
1       HP Internet Advisor - WAN                       HP J2300C            1      At each site
        Upgrade display to Active Matrix for Item  1.   #221                 1      At each site
2       HP Internet Advisor LAN - Fast Ethernet U/C     HP J3444A            1      At each site
3       CD ROM Player - 8X PCMCIA Portable              HP J2927A            1      At each site
4       Ethernet Sniffer                                Network General      1      At each site
                                                        Fast Ethernet
                                                        Sniffer Analyser

        Hardware Platform                               Note PC
</TABLE>

TABLE 2-2 - SPECIAL TEST EQUIPMENT FOR IGF FACTORY PRE-INTEGRATION TEST

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------
NO.      TEST EQUIPMENT             MODEL NO.          Q'TY             REMARKS
----------------------------------------------------------------------------------------------------
<S>      <C>                        <C>                <C>              <C>
1        UT Load Simulator          N/A                3 Sets           1 for NEC Australia
                                                                        1 for HNS
                                                                        1 for Comsat

2        GSM Tester                 UPSIM              2 Sets           1 for NEC Australia
                                                                        1 for HNS
</TABLE>

Note
1.     The UT Load Simulator, which is used at Comsat facility, will be moved to
       one of 12 SANs for IGF testing from Phase 2-1.
2.     Real UTs and SIM cards are also required for each SAN.
3.     All PCs will need a fax modem and serial port.

5.     EQUIPMENT FOR END-TO-END CALL DEMONSTRATION

5.1    The following equipment, required for the End-to-End Call Demonstration,
       shall be provided by ICO:

-      Two fully functional (or prototype) ICO UTs with appropriate fax and data
       interfaces

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

-      Two fully functional (or prototype) ICO SIM cards
-      PSTN/ISDN Telephone, low rate FAX and low rate data
-      PLMN mobile station with fax and data capabilities
-      Two personal computers (or laptops) with fax and data interfaces for the
       ICO System, PSTN/ISDN, and PLMN
-      Two In-Orbit ICO Satellites

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

                                   Appendix 1

                            Schedule For Provision of
                       Information, Services and Equipment

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

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------
ITEM              INFORMATION, SERVICE & EQUIPMENT TO BE PROVIDED BY ICO           DATE REQUIRED
--------------------------------------------------------------------------------------------------
<S>               <C>                                                              <C>
1                 VOICE CODEC DESIGN INFORMATION
                                                                                   4th March 97
                  DRAFT AMBE VOICE CODEC SOFTWARE INTERFACE FOR ICO:
                                                                                   7th April 97
                  High Level Functional Description:
                                                                                   22nd Sept 97
                  Low Level Functional Description:
                                                                                   15th August 97
                  Voice Codec Floating Point -C Source Code:
                  (to be able to run on platform in ICO voice codec
                  specification)

2                 DEFINITION  OF PREDICTED  EPHEMERIS  DATA TO BE USED WITHIN      [PDR]
                  THE IGF

3                 ICO CONFIRM LOCATION OF NMC SITES                                SYSTEM PDR

4                 INPUT INTO SOFTWARE BUILD AND DATA TRANSCRIPT BUILD              AS  PER  MASTER  LEVEL
                                                                                   SCHEDULE

5                 AIR  INTERFACE  BASELINED  27TH  NOVEMBER  1998 AS  DEFINED  IN  27TH NOVEMBER 1998
                  ADDENDUM 2 TO SCHEDULE 13 - IGFR (EN-IG-ICO-SW-000874 VERSION
                  2.4 - 3RD JUNE 1999
</TABLE>

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<PAGE>   2061
ANNEX 4: ATTACHMENT 1

          OVERALL PHASED SAN HANDOVER SCHEDULE
<PAGE>   2062
                      OVERALL PHASED SAN HANDOVER SCHEDULE
<TABLE>
<CAPTION>
                                                                                               Qtr 2, 1998         Qtr 3, 1998
ID  [ICON]   Task Name                                           Start          Finish         Ma      Jun       Jul   Aug   Sep
------------------------------------------------------------------------------------------------------------------------------------
<S> <C>      <C>                                                 <C>            <C>            <C>     <C>       <C>   <C>   <C>

151          MEXICO                                              Fri 10/2/98    Fri 9/29/00
152 [ICON]    ICO Supplied MUX/DCN (to Chile) for WGD            Mon 4/19/99    Mon 7/19/99
153 [ICON]    ICO Supplied DCN/E1 Link (to Chile) for SITG       Mon 7/19/99    Mon 7/19/99
154 [ICON]    RFT Installation Phase 2-1 Complete                Fri 10/2/98    Thu 4/1/99
155 [ICON]    SBS Installation & Phase 2-1 Complete              Wed 6/30/99    Fri 8/13/99
158 [ICON]    MSSC Installation & Phase 2-1 Complete & Training  Mon 5/10/99    Tue 7/6/99
162 [ICON]    TNM Installation & Phase 2-1 Complete              Mon 5/24/99    Fri 7/9/99
166 [ICON]    SAN OSS/DCN Phase 2-1 Complete                     Mon 6/7/99     Wed 6/30/99
167           Phase 2-2/1 Network Connectivity Checkout          Thu 8/19/99    Wed 9/15/99
168 [ICON]    Phase 2-2/1                                        Thu 9/2/99     Wed 10/13/99
169 [ICON]    Phase 2-2/2                                        Tue 4/25/00    Fri 6/16/00
170           Phase 3 (AC3, FS3)                                 Mon 6/19/00    Fri 7/14/00
171 [ICON]    Integration with DEU/ARE/ZAF/BMC                   Mon 9/25/00    Fri 9/29/00
173           SAN Handover to ICO (HO3)                          Fri 7/14/00    Fri 7/14/00
174           Training Window                                    Thu 10/14/99   Fri 4/7/00
175 [ICON]    ICO Planned G2 ICONET Integration                  Mon 7/26/99    Tue 8/3/99
176
177          KOREA                                               Thu 5/21/98    Fri 9/22/00
178 [ICON]    ICO Supplied MUX/DCN (to NMC) for WGD              Thu 5/27/99    Thu 5/27/99
179 [ICON]    ICO Supplied DCN/E1 Link (to NMC) for SITG         Mon 3/22/99    Mon 3/22/99
180 [ICON]    ICO Supplied MUX/DCN (to BMC) for WGD              Mon 11/8/99    Mon 11/8/99
181 [ICON]    ICO Supplied DCN/E1 Link (to BMC) for SITG         Mon 11/7/99    Mon 11/8/99
182 [ICON]    RFT Installation & Phase 2-1 Complete              Thu 5/21/98    Fri 12/11/98
183 [ICON]    SBS Installation & Phase 2-1 Complete              Mon 8/16/99    Fri 9/24/99
186 [ICON]    MSSC Installation & Phase 2-1 Complete Training    Tue 2/23/99    Fri 8/20/99
190 [ICON]    TNM Installation & Phase 2-1 Complete              Tue 3/9/99     Wed 8/25/99
194 [ICON]    SAN OSS/DCN Phase 2-1 Complete                     Fri 4/9/99     Sat 5/8/99
195 [ICON]    Phase 2-2/1 Network Connectivity Checkout          Mon 7/12/99    Mon 8/9/99
196 [ICON]    Phase 2-2/1                                        Mon 9/27/99    Fri 11/5/99
197           SIT R2                                             Mon 11/8/99    Fri 12/10/99
198 [ICON]    Phase 2-2/2                                        Tue 4/25/00    Fri 6/16/00
199           Phase 3 (AC3, FS3)                                 Mon 6/19/00    Fri 7/14/00
200 [ICON]    Integration with DEU/ARE/ZAF/BMC                   Mon 9/18/00    Fri 9/22/00
202           SAN Handover to ICO (HO3)                          Fri 7/14/00    Fri 7/14/00
203           Training Window                                    Mon 11/8/99    Mon 5/8/00
204 [ICON]    ICO Planned G2 ICONET Integration                  Mon 5/17/99    Wed 5/26/99
205
206          BRAZIL                                              Mon 3/15/99    Wed 10/11/00
207 [ICON]    ICO Supplied MUX/DCN (to Germany) for WGD          Mon 8/23/99    Mon 8/23/99
208 [ICON]    ICO Supplied DCN/E1 Link (to Germany) for SITG     Mon 8/23/99    Mon 8/23/99
209 [ICON]    RFT Installation Phase 2-1 Complete                Mon 3/15/99    Thu 9/30/99
210 [ICON]    SBS Installation & Phase 2-1 Complete              Mon 7/26/99    Fri 9/10/99
213 [ICON]    MSSC Installation & Phase 2-1 Complete & Training  Tue 6/1/99     Mon 9/6/99
217 [ICON]    TNM Installation & Phase 2-1 Complete              Mon 7/12/99    Wed 8/25/99
221 [ICON]    SAN OSS/DCN Phase 2-1 Complete                     Fri 7/16/99    Wed 8/11/99
222 [ICON]    Phase 2-2/1 Network Connectivity Checkout          Mon 10/11/99   Fri 11/5/99
223 [ICON]    Phase 2-2/1                                        Mon 11/8/99    Fri 12/17/99
224 [ICON]    Phase 2-2/2                                        Tue 4/25/00    Fri 6/16/00
225           Phase 3 (AC3, FS3)                                 Mon 6/19/00    Fri 7/14/00
226 [ICON]    Integration with DEU/ARE/ZAF/BMC                   Mon 10/2/00    Wed 10/11/00
228           SAN Handover to ICO (HO3)                          Fri 7/14/00    Fri 7/14/00
229           Training Window                                    Mon 12/20/99   Thu 4/20/00
230 [ICON]    ICO Planned G2 ICONET Integration                  Fri 9/10/99    Fri 9/24/99
231
232          HANDOVERS TO ICO (HO3)                              Fri 7/14/00    Fri 7/14/00
233           MEX/KOR/BRA                                        Fri 7/14/00    Fri 7/14/00
234
235          AVAILABLE TO ICO                                    Fri 7/14/00    Fri 7/14/00
236           5 MSSC                                             Fri 7/14/00    Fri 7/14/00
237           5 LIAS                                             Fri 7/14/00    Fri 7/14/00
238           5 HPN                                              Fri 7/14/00    Fri 7/14/00
239           1 MESSAGING                                        Fri 7/14/00    Fri 7/14/00
240           EIR/AUC                                            Fri 7/14/00    Fri 7/14/00
241           1 HLR                                              Fri 7/14/00    Fri 7/14/00
242           1 NODE-OS                                          Fri 7/14/00    Fri 7/14/00
243

</TABLE>
<TABLE>
<CAPTION>
                                                                                                Qtr 4, 1998            Qtr 1, 1999
ID  [ICON]   Task Name                                          Start          Finish       Oct    Nov   Dec       Jan   Feb   Mar
------------------------------------------------------------------------------------------------------------------------------------
<S> <C>      <C>                                                <C>            <C>          <C>    <C>   <C>       <C>   <C>   <C>
151          MEXICO                                              Fri 10/2/98    Fri 9/29/00
152 [ICON]    ICO Supplied MUX/DCN (to Chile) for WGD            Mon 4/19/99    Mon 7/19/99
153 [ICON]    ICO Supplied DCN/E1 Link (to Chile) for SITG       Mon 7/19/99    Mon 7/19/99
154 [ICON]    RFT Installation Phase 2-1 Complete                Fri 10/2/98    Thu 4/1/99   10/2
155 [ICON]    SBS Installation & Phase 2-1 Complete              Wed 6/30/99    Fri 8/13/99
158 [ICON]    MSSC Installation & Phase 2-1 Complete & Training  Mon 5/10/99    Tue 7/6/99
162 [ICON]    TNM Installation & Phase 2-1 Complete              Mon 5/24/99    Fri 7/9/99
166 [ICON]    SAN OSS/DCN Phase 2-1 Complete                     Mon 6/7/99     Wed 6/30/99
167           Phase 2-2/1 Network Connectivity Checkout          Thu 8/19/99    Wed 9/15/99
168 [ICON]    Phase 2-2/1                                        Thu 9/2/99     Wed 10/13/99
169 [ICON]    Phase 2-2/2                                        Tue 4/25/00    Fri 6/16/00
170           Phase 3 (AC3, FS3)                                 Mon 6/19/00    Fri 7/14/00
171 [ICON]    Integration with DEU/ARE/ZAF/BMC                   Mon 9/25/00    Fri 9/29/00
173           SAN Handover to ICO (HO3)                          Fri 7/14/00    Fri 7/14/00
174           Training Window                                    Thu 10/14/99   Fri 4/7/00
175 [ICON]    ICO Planned G2 ICONET Integration                  Mon 7/26/99    Tue 8/3/99
176
177          KOREA                                               Thu 5/21/98    Fri 9/22/00
178 [ICON]    ICO Supplied MUX/DCN (to NMC) for WGD              Thu 5/27/99    Thu 5/27/99
179 [ICON]    ICO Supplied DCN/E1 Link (to NMC) for SITG         Mon 3/22/99    Mon 3/22/99                                    3/22
180 [ICON]    ICO Supplied MUX/DCN (to BMC) for WGD              Mon 11/8/99    Mon 11/8/99
181 [ICON]    ICO Supplied DCN/E1 Link (to BMC) for SITG         Mon 11/7/99    Mon 11/8/99
182 [ICON]    RFT Installation & Phase 2-1 Complete              Thu 5/21/98    Fri 12/11/98             12/11
183 [ICON]    SBS Installation & Phase 2-1 Complete              Mon 8/16/99    Fri 9/24/99
186 [ICON]    MSSC Installation & Phase 2-1 Complete Training    Mon 9/18/00    Fri 9/22/00
202           SAN Handover to ICO (HO3)                          Fri 7/14/00    Fri 7/14/00
203           Training Window                                    Mon 11/8/99    Mon 5/8/00
204 [ICON]    ICO Planned G2 ICONET Integration                  Mon 5/17/99    Wed 5/26/99
205
206          BRAZIL                                              Mon 3/15/99    Wed 10/11/00
207 [ICON]    ICO Supplied MUX/DCN (to Germany) for WGD          Mon 8/23/99    Mon 8/23/99
208 [ICON]    ICO Supplied DCN/E1 Link (to Germany) for SITG     Mon 8/23/99    Mon 8/23/99
209 [ICON]    RFT Installation Phase 2-1 Complete                Mon 3/15/99    Thu 9/30/99                                    3/15
210 [ICON]    SBS Installation & Phase 2-1 Complete              Mon 7/26/99    Fri 9/10/99
213 [ICON]    MSSC Installation & Phase 2-1 Complete & Training  Tue 6/1/99     Mon 9/6/99
217 [ICON]    TNM Installation & Phase 2-1 Complete              Mon 7/12/99    Wed 8/25/99
221 [ICON]    SAN OSS/DCN Phase 2-1 Complete                     Fri 7/16/99    Wed 8/11/99
222 [ICON]    Phase 2-2/1 Network Connectivity Checkout          Mon 10/11/99   Fri 11/5/99
223 [ICON]    Phase 2-2/1                                        Mon 11/8/99    Fri 12/17/99
224 [ICON]    Phase 2-2/2                                        Tue 4/25/00    Fri 6/16/00
225           Phase 3 (AC3, FS3)                                 Mon 6/19/00    Fri 7/14/00
226 [ICON]    Integration with DEU/ARE/ZAF/BMC                   Mon 10/2/00    Wed 10/11/00
228           SAN Handover to ICO (HO3)                          Fri 7/14/00    Fri 7/14/00
229           Training Window                                    Mon 12/20/99   Thu 4/20/00
230 [ICON]    ICO Planned G2 ICONET Integration                  Fri 9/10/99    Fri 9/24/99
231
232          HANDOVERS TO ICO (HO3)                              Fri 7/14/00    Fri 7/14/00
233           MEX/KOR/BRA                                        Fri 7/14/00    Fri 7/14/00
234
235          AVAILABLE TO ICO                                    Fri 7/14/00    Fri 7/14/00
236           5 MSSC                                             Fri 7/14/00    Fri 7/14/00
237           5 LIAS                                             Fri 7/14/00    Fri 7/14/00
238           5 HPN                                              Fri 7/14/00    Fri 7/14/00
239           1 MESSAGING                                        Fri 7/14/00    Fri 7/14/00
240           EIR/AUC                                            Fri 7/14/00    Fri 7/14/00
241           1 HLR                                              Fri 7/14/00    Fri 7/14/00
242           1 NODE-OS                                          Fri 7/14/00    Fri 7/14/00
243

</TABLE>
<TABLE>
<CAPTION>
                                                                                               Qtr 2, 1999            Qtr 3, 1999
ID  [ICON]   Task Name                                           Start          Finish       Apr    Ma    Jun       Jul   Aug   Sep
------------------------------------------------------------------------------------------------------------------------------------
<S> <C>      <C>                                                 <C>            <C>          <C>    <C>   <C>       <C>   <C>   <C>
151          MEXICO                                              Fri 10/2/98    Fri 9/29/00
152 [ICON]    ICO Supplied MUX/DCN (to Chile) for WGD            Mon 4/19/99    Mon 7/19/99                        7/19
153 [ICON]    ICO Supplied DCN/E1 Link (to Chile) for SITG       Mon 7/19/99    Mon 7/19/99                        7/19
154 [ICON]    RFT Installation Phase 2-1 Complete                Fri 10/2/98    Thu 4/1/99   4/1
155 [ICON]    SBS Installation & Phase 2-1 Complete              Wed 6/30/99    Fri 8/13/99              6/30            8/13
158 [ICON]    MSSC Installation & Phase 2-1 Complete & Training  Mon 5/10/99    Tue 7/6/99         5/10  6/11
162 [ICON]    TNM Installation & Phase 2-1 Complete              Mon 5/24/99    Fri 7/9/99               6/21      7/9
166 [ICON]    SAN OSS/DCN Phase 2-1 Complete                     Mon 6/7/99     Wed 6/30/99              6/7|6/30
167           Phase 2-2/1 Network Connectivity Checkout          Thu 8/19/99    Wed 9/15/99                              8/19  9/15
168 [ICON]    Phase 2-2/1                                        Thu 9/2/99     Wed 10/13/99                                   9/2
169 [ICON]    Phase 2-2/2                                        Tue 4/25/00    Fri 6/16/00
170           Phase 3 (AC3, FS3)                                 Mon 6/19/00    Fri 7/14/00
171 [ICON]    Integration with DEU/ARE/ZAF/BMC                   Mon 9/25/00    Fri 9/29/00
173           SAN Handover to ICO (HO3)                          Fri 7/14/00    Fri 7/14/00
174           Training Window                                    Thu 10/14/99   Fri 4/7/00
175 [ICON]    ICO Planned G2 ICONET Integration                  Mon 7/26/99    Tue 8/3/99                         7/26  8/3
176
177          KOREA                                               Thu 5/21/98    Fri 9/22/00
178 [ICON]    ICO Supplied MUX/DCN (to NMC) for WGD              Thu 5/27/99    Thu 5/27/99        5/27
179 [ICON]    ICO Supplied DCN/E1 Link (to NMC) for SITG         Mon 3/22/99    Mon 3/22/99
180 [ICON]    ICO Supplied MUX/DCN (to BMC) for WGD              Mon 11/8/99    Mon 11/8/99
181 [ICON]    ICO Supplied DCN/E1 Link (to BMC) for SITG         Mon 11/7/99    Mon 11/8/99
182 [ICON]    RFT Installation & Phase 2-1 Complete              Thu 5/21/98    Fri 12/11/98
183 [ICON]    SBS Installation & Phase 2-1 Complete              Mon 8/16/99    Fri 9/24/99                              8/16  9/24
186 [ICON]    MSSC Installation & Phase 2-1 Complete Training    Mon 9/18/00    Fri 9/22/00
202           SAN Handover to ICO (HO3)                          Fri 7/14/00    Fri 7/14/00
203           Training Window                                    Mon 11/8/99    Mon 5/8/00
204 [ICON]    ICO Planned G2 ICONET Integration                  Mon 5/17/99    Wed 5/26/99      5/17|5/26
205
206          BRAZIL                                              Mon 3/15/99    Wed 10/11/00
207 [ICON]    ICO Supplied MUX/DCN (to Germany) for WGD          Mon 8/23/99    Mon 8/23/99                              8/23
208 [ICON]    ICO Supplied DCN/E1 Link (to Germany) for SITG     Mon 8/23/99    Mon 8/23/99                              8/23
209 [ICON]    RFT Installation Phase 2-1 Complete                Mon 3/15/99    Thu 9/30/99                                    9/30
210 [ICON]    SBS Installation & Phase 2-1 Complete              Mon 7/26/99    Fri 9/10/99                        7/26        9/10
213 [ICON]    MSSC Installation & Phase 2-1 Complete & Training  Tue 6/1/99     Mon 9/6/99               6/1|6/25              9/5
217 [ICON]    TNM Installation & Phase 2-1 Complete              Mon 7/12/99    Wed 8/25/99                      7/726|7/16|8/25
221 [ICON]    SAN OSS/DCN Phase 2-1 Complete                     Fri 7/16/99    Wed 8/11/99                        7/16  8/11
222 [ICON]    Phase 2-2/1 Network Connectivity Checkout          Mon 10/11/99   Fri 11/5/99
223 [ICON]    Phase 2-2/1                                        Mon 11/8/99    Fri 12/17/99
224 [ICON]    Phase 2-2/2                                        Tue 4/25/00    Fri 6/16/00
225           Phase 3 (AC3, FS3)                                 Mon 6/19/00    Fri 7/14/00
226 [ICON]    Integration with DEU/ARE/ZAF/BMC                   Mon 10/2/00    Wed 10/11/00
228           SAN Handover to ICO (HO3)                          Fri 7/14/00    Fri 7/14/00
229           Training Window                                    Mon 12/20/99   Thu 4/20/00
230 [ICON]    ICO Planned G2 ICONET Integration                  Fri 9/10/99    Fri 9/24/99                                9/10|9/24
231
232          HANDOVERS TO ICO (HO3)                              Fri 7/14/00    Fri 7/14/00
233           MEX/KOR/BRA                                        Fri 7/14/00    Fri 7/14/00
234
235          AVAILABLE TO ICO                                    Fri 7/14/00    Fri 7/14/00
236           5 MSSC                                             Fri 7/14/00    Fri 7/14/00
237           5 LIAS                                             Fri 7/14/00    Fri 7/14/00
238           5 HPN                                              Fri 7/14/00    Fri 7/14/00
239           1 MESSAGING                                        Fri 7/14/00    Fri 7/14/00
240           EIR/AUC                                            Fri 7/14/00    Fri 7/14/00
241           1 HLR                                              Fri 7/14/00    Fri 7/14/00
242           1 NODE-OS                                          Fri 7/14/00    Fri 7/14/00
243

</TABLE>

<TABLE>
<CAPTION>
                                                                                               Qtr 4, 1999            Qtr 1, 2000
ID  [ICON]   Task Name                                           Start          Finish       Oct    Nov   Dec       Jan   Feb   Mar
------------------------------------------------------------------------------------------------------------------------------------
<S> <C>      <C>                                                 <C>            <C>          <C>    <C>   <C>       <C>   <C>   <C>
151          MEXICO                                              Fri 10/2/98    Fri 9/29/00
152 [ICON]    ICO Supplied MUX/DCN (to Chile) for WGD            Mon 4/19/99    Mon 7/19/99
153 [ICON]    ICO Supplied DCN/E1 Link (to Chile) for SITG       Mon 7/19/99    Mon 7/19/99
154 [ICON]    RFT Installation Phase 2-1 Complete                Fri 10/2/98    Thu 4/1/99
155 [ICON]    SBS Installation & Phase 2-1 Complete              Wed 6/30/99    Fri 8/13/99
158 [ICON]    MSSC Installation & Phase 2-1 Complete & Training  Mon 5/10/99    Tue 7/6/99
162 [ICON]    TNM Installation & Phase 2-1 Complete              Mon 5/24/99    Fri 7/9/99
166 [ICON]    SAN OSS/DCN Phase 2-1 Complete                     Mon 6/7/99     Wed 6/30/99
167           Phase 2-2/1 Network Connectivity Checkout          Thu 8/19/99    Wed 9/15/99
168 [ICON]    Phase 2-2/1                                        Thu 9/2/99     Wed 10/13/99 10/13
169 [ICON]    Phase 2-2/2                                        Tue 4/25/00    Fri 6/16/00
170           Phase 3 (AC3, FS3)                                 Mon 6/19/00    Fri 7/14/00
171 [ICON]    Integration with DEU/ARE/ZAF/BMC                   Mon 9/25/00    Fri 9/29/00
173           SAN Handover to ICO (HO3)                          Fri 7/14/00    Fri 7/14/00
174           Training Window                                    Thu 10/14/99   Fri 4/7/00   10/14
175 [ICON]    ICO Planned G2 ICONET Integration                  Mon 7/26/99    Tue 8/3/99
176
177          KOREA                                               Thu 5/21/98    Fri 9/22/00
178 [ICON]    ICO Supplied MUX/DCN (to NMC) for WGD              Thu 5/27/99    Thu 5/27/99
179 [ICON]    ICO Supplied DCN/E1 Link (to NMC) for SITG         Mon 3/22/99    Mon 3/22/99
180 [ICON]    ICO Supplied MUX/DCN (to BMC) for WGD              Mon 11/8/99    Mon 11/8/99        11/8
181 [ICON]    ICO Supplied DCN/E1 Link (to BMC) for SITG         Mon 11/7/99    Mon 11/8/99        11/8
182 [ICON]    RFT Installation & Phase 2-1 Complete              Thu 5/21/98    Fri 12/11/98
183 [ICON]    SBS Installation & Phase 2-1 Complete              Mon 8/16/99    Fri 9/24/99
186 [ICON]    MSSC Installation & Phase 2-1 Complete Training    Mon 9/18/00    Fri 9/22/00
202           SAN Handover to ICO (HO3)                          Fri 7/14/00    Fri 7/14/00
203           Training Window                                    Mon 11/8/99    Mon 5/8/00         11/8
204 [ICON]    ICO Planned G2 ICONET Integration                  Mon 5/17/99    Wed 5/26/99
205
206          BRAZIL                                              Mon 3/15/99    Wed 10/11/00
207 [ICON]    ICO Supplied MUX/DCN (to Germany) for WGD          Mon 8/23/99    Mon 8/23/99
208 [ICON]    ICO Supplied DCN/E1 Link (to Germany) for SITG     Mon 8/23/99    Mon 8/23/99
209 [ICON]    RFT Installation Phase 2-1 Complete                Mon 3/15/99    Thu 9/30/99
210 [ICON]    SBS Installation & Phase 2-1 Complete              Mon 7/26/99    Fri 9/10/99
213 [ICON]    MSSC Installation & Phase 2-1 Complete & Training  Tue 6/1/99     Mon 9/6/99
217 [ICON]    TNM Installation & Phase 2-1 Complete              Mon 7/12/99    Wed 8/25/99
221 [ICON]    SAN OSS/DCN Phase 2-1 Complete                     Fri 7/16/99    Wed 8/11/99
222 [ICON]    Phase 2-2/1 Network Connectivity Checkout          Mon 10/11/99   Fri 11/5/99        11/5
223 [ICON]    Phase 2-2/1                                        Mon 11/8/99    Fri 12/17/99       11/8  12/17
224 [ICON]    Phase 2-2/2                                        Tue 4/25/00    Fri 6/16/00
225           Phase 3 (AC3, FS3)                                 Mon 6/19/00    Fri 7/14/00
226 [ICON]    Integration with DEU/ARE/ZAF/BMC                   Mon 10/2/00    Wed 10/11/00
228           SAN Handover to ICO (HO3)                          Fri 7/14/00    Fri 7/14/00
229           Training Window                                    Mon 12/20/99   Thu 4/20/00              12/20
230 [ICON]    ICO Planned G2 ICONET Integration                  Fri 9/10/99    Fri 9/24/99
231
232          HANDOVERS TO ICO (HO3)                              Fri 7/14/00    Fri 7/14/00
233           MEX/KOR/BRA                                        Fri 7/14/00    Fri 7/14/00
234
235          AVAILABLE TO ICO                                    Fri 7/14/00    Fri 7/14/00
236           5 MSSC                                             Fri 7/14/00    Fri 7/14/00
237           5 LIAS                                             Fri 7/14/00    Fri 7/14/00
238           5 HPN                                              Fri 7/14/00    Fri 7/14/00
239           1 MESSAGING                                        Fri 7/14/00    Fri 7/14/00
240           EIR/AUC                                            Fri 7/14/00    Fri 7/14/00
241           1 HLR                                              Fri 7/14/00    Fri 7/14/00
242           1 NODE-OS                                          Fri 7/14/00    Fri 7/14/00
243

</TABLE>

<TABLE>
<CAPTION>
                                                                                               Qtr 2, 2000            Qtr 3, 2000
ID  [ICON]   Task Name                                           Start          Finish       Apr    Ma    Jun       Jul   Aug   Sep
------------------------------------------------------------------------------------------------------------------------------------
<S> <C>      <C>                                                 <C>            <C>          <C>    <C>   <C>       <C>   <C>   <C>
151          MEXICO                                              Fri 10/2/98    Fri 9/29/00
152 [ICON]    ICO Supplied MUX/DCN (to Chile) for WGD            Mon 4/19/99    Mon 7/19/99
153 [ICON]    ICO Supplied DCN/E1 Link (to Chile) for SITG       Mon 7/19/99    Mon 7/19/99
154 [ICON]    RFT Installation Phase 2-1 Complete                Fri 10/2/98    Thu 4/1/99
155 [ICON]    SBS Installation & Phase 2-1 Complete              Wed 6/30/99    Fri 8/13/99
158 [ICON]    MSSC Installation & Phase 2-1 Complete & Training  Mon 5/10/99    Tue 7/6/99
162 [ICON]    TNM Installation & Phase 2-1 Complete              Mon 5/24/99    Fri 7/9/99
166 [ICON]    SAN OSS/DCN Phase 2-1 Complete                     Mon 6/7/99     Wed 6/30/99
167           Phase 2-2/1 Network Connectivity Checkout          Thu 8/19/99    Wed 9/15/99
168 [ICON]    Phase 2-2/1                                        Thu 9/2/99     Wed 10/13/99
169 [ICON]    Phase 2-2/2                                        Tue 4/25/00    Fri 6/16/00  4/25        6/16
170           Phase 3 (AC3, FS3)                                 Mon 6/19/00    Fri 7/14/00              6/19      7/14
171 [ICON]    Integration with DEU/ARE/ZAF/BMC                   Mon 9/25/00    Fri 9/29/00                                    9/29
173           SAN Handover to ICO (HO3)                          Fri 7/14/00    Fri 7/14/00                        7/14
174           Training Window                                    Thu 10/14/99   Fri 4/7/00
175 [ICON]    ICO Planned G2 ICONET Integration                  Mon 7/26/99    Tue 8/3/99
176
177          KOREA                                               Thu 5/21/98    Fri 9/22/00
178 [ICON]    ICO Supplied MUX/DCN (to NMC) for WGD              Thu 5/27/99    Thu 5/27/99
179 [ICON]    ICO Supplied DCN/E1 Link (to NMC) for SITG         Mon 3/22/99    Mon 3/22/99
180 [ICON]    ICO Supplied MUX/DCN (to BMC) for WGD              Mon 11/8/99    Mon 11/8/99
181 [ICON]    ICO Supplied DCN/E1 Link (to BMC) for SITG         Mon 11/7/99    Mon 11/8/99
182 [ICON]    RFT Installation & Phase 2-1 Complete              Thu 5/21/98    Fri 12/11/98
183 [ICON]    SBS Installation & Phase 2-1 Complete              Mon 8/16/99    Fri 9/24/99
186 [ICON]    MSSC Installation & Phase 2-1 Complete Training    Mon 9/18/00    Fri 9/22/00                                    9/22
202           SAN Handover to ICO (HO3)                          Fri 7/14/00    Fri 7/14/00                        7/14
203           Training Window                                    Mon 11/8/99    Mon 5/8/00         5/8
204 [ICON]    ICO Planned G2 ICONET Integration                  Mon 5/17/99    Wed 5/26/99
205
206          BRAZIL                                              Mon 3/15/99    Wed 10/11/00
207 [ICON]    ICO Supplied MUX/DCN (to Germany) for WGD          Mon 8/23/99    Mon 8/23/99
208 [ICON]    ICO Supplied DCN/E1 Link (to Germany) for SITG     Mon 8/23/99    Mon 8/23/99
209 [ICON]    RFT Installation Phase 2-1 Complete                Mon 3/15/99    Thu 9/30/99
210 [ICON]    SBS Installation & Phase 2-1 Complete              Mon 7/26/99    Fri 9/10/99
213 [ICON]    MSSC Installation & Phase 2-1 Complete & Training  Tue 6/1/99     Mon 9/6/99
217 [ICON]    TNM Installation & Phase 2-1 Complete              Mon 7/12/99    Wed 8/25/99
221 [ICON]    SAN OSS/DCN Phase 2-1 Complete                     Fri 7/16/99    Wed 8/11/99
222 [ICON]    Phase 2-2/1 Network Connectivity Checkout          Mon 10/11/99   Fri 11/5/99
223 [ICON]    Phase 2-2/1                                        Mon 11/8/99    Fri 12/17/99
224 [ICON]    Phase 2-2/2                                        Tue 4/25/00    Fri 6/16/00  4/25        6/16
225           Phase 3 (AC3, FS3)                                 Mon 6/19/00    Fri 7/14/00              6/19      7/14
226 [ICON]    Integration with DEU/ARE/ZAF/BMC                   Mon 10/2/00    Wed 10/11/00
228           SAN Handover to ICO (HO3)                          Fri 7/14/00    Fri 7/14/00                        7/14
229           Training Window                                    Mon 12/20/99   Thu 4/20/00  4/20
230 [ICON]    ICO Planned G2 ICONET Integration                  Fri 9/10/99    Fri 9/24/99
231
232          HANDOVERS TO ICO (HO3)                              Fri 7/14/00    Fri 7/14/00
233           MEX/KOR/BRA                                        Fri 7/14/00    Fri 7/14/00                        7/14
234
235          AVAILABLE TO ICO                                    Fri 7/14/00    Fri 7/14/00
236           5 MSSC                                             Fri 7/14/00    Fri 7/14/00                        7/14
237           5 LIAS                                             Fri 7/14/00    Fri 7/14/00                        7/14
238           5 HPN                                              Fri 7/14/00    Fri 7/14/00                        7/14
239           1 MESSAGING                                        Fri 7/14/00    Fri 7/14/00                        7/14
240           EIR/AUC                                            Fri 7/14/00    Fri 7/14/00                        7/14
241           1 HLR                                              Fri 7/14/00    Fri 7/14/00                        7/14
242           1 NODE-OS                                          Fri 7/14/00    Fri 7/14/00                        7/14
243

</TABLE>

<TABLE>
<CAPTION>
                                                                                            Qtr 4, 2000      Qtr 1, 2001    Qtr 2,
ID  [ICON]   Task Name                                          Start          Finish     Oct  Nov  Dec    Jan  e   Mar   Apr   Ma
------------------------------------------------------------------------------------------------------------------------------------
<S> <C>      <C>                                                <C>            <C>        <C>  <C>  <C>    <C> <C>  <C>   <C>   <C>
151          MEXICO                                              Fri 10/2/98    Fri 9/29/00
152 [ICON]    ICO Supplied MUX/DCN (to Chile) for WGD            Mon 4/19/99    Mon 7/19/99
153 [ICON]    ICO Supplied DCN/E1 Link (to Chile) for SITG       Mon 7/19/99    Mon 7/19/99
154 [ICON]    RFT Installation Phase 2-1 Complete                Fri 10/2/98    Thu 4/1/99
155 [ICON]    SBS Installation & Phase 2-1 Complete              Wed 6/30/99    Fri 8/13/99
158 [ICON]    MSSC Installation & Phase 2-1 Complete & Training  Mon 5/10/99    Tue 7/6/99
162 [ICON]    TNM Installation & Phase 2-1 Complete              Mon 5/24/99    Fri 7/9/99
166 [ICON]    SAN OSS/DCN Phase 2-1 Complete                     Mon 6/7/99     Wed 6/30/99
167           Phase 2-2/1 Network Connectivity Checkout          Thu 8/19/99    Wed 9/15/99
168 [ICON]    Phase 2-2/1                                        Thu 9/2/99     Wed 10/13/99
169 [ICON]    Phase 2-2/2                                        Tue 4/25/00    Fri 6/16/00
170           Phase 3 (AC3, FS3)                                 Mon 6/19/00    Fri 7/14/00
171 [ICON]    Integration with DEU/ARE/ZAF/BMC                   Mon 9/25/00    Fri 9/29/00
173           SAN Handover to ICO (HO3)                          Fri 7/14/00    Fri 7/14/00
174           Training Window                                    Thu 10/14/99   Fri 4/7/00
175 [ICON]    ICO Planned G2 ICONET Integration                  Mon 7/26/99    Tue 8/3/99
176
177          KOREA                                               Thu 5/21/98    Fri 9/22/00
178 [ICON]    ICO Supplied MUX/DCN (to NMC) for WGD              Thu 5/27/99    Thu 5/27/99
179 [ICON]    ICO Supplied DCN/E1 Link (to NMC) for SITG         Mon 3/22/99    Mon 3/22/99
180 [ICON]    ICO Supplied MUX/DCN (to BMC) for WGD              Mon 11/8/99    Mon 11/8/99
181 [ICON]    ICO Supplied DCN/E1 Link (to BMC) for SITG         Mon 11/7/99    Mon 11/8/99
182 [ICON]    RFT Installation & Phase 2-1 Complete              Thu 5/21/98    Fri 12/11/98
183 [ICON]    SBS Installation & Phase 2-1 Complete              Mon 8/16/99    Fri 9/24/99
186 [ICON]    MSSC Installation & Phase 2-1 Complete Training    Mon 9/18/00    Fri 9/22/00
202           SAN Handover to ICO (HO3)                          Fri 7/14/00    Fri 7/14/00
203           Training Window                                    Mon 11/8/99    Mon 5/8/00
204 [ICON]    ICO Planned G2 ICONET Integration                  Mon 5/17/99    Wed 5/26/99
205
206          BRAZIL                                              Mon 3/15/99    Wed 10/11/00
207 [ICON]    ICO Supplied MUX/DCN (to Germany) for WGD          Mon 8/23/99    Mon 8/23/99
208 [ICON]    ICO Supplied DCN/E1 Link (to Germany) for SITG     Mon 8/23/99    Mon 8/23/99
209 [ICON]    RFT Installation Phase 2-1 Complete                Mon 3/15/99    Thu 9/30/99
210 [ICON]    SBS Installation & Phase 2-1 Complete              Mon 7/26/99    Fri 9/10/99
213 [ICON]    MSSC Installation & Phase 2-1 Complete & Training  Tue 6/1/99     Mon 9/6/99
217 [ICON]    TNM Installation & Phase 2-1 Complete              Mon 7/12/99    Wed 8/25/99
221 [ICON]    SAN OSS/DCN Phase 2-1 Complete                     Fri 7/16/99    Wed 8/11/99
222 [ICON]    Phase 2-2/1 Network Connectivity Checkout          Mon 10/11/99   Fri 11/5/99
223 [ICON]    Phase 2-2/1                                        Mon 11/8/99    Fri 12/17/99
224 [ICON]    Phase 2-2/2                                        Tue 4/25/00    Fri 6/16/00
225           Phase 3 (AC3, FS3)                                 Mon 6/19/00    Fri 7/14/00
226 [ICON]    Integration with DEU/ARE/ZAF/BMC                   Mon 10/2/00    Wed 10/11/00 10/11
228           SAN Handover to ICO (HO3)                          Fri 7/14/00    Fri 7/14/00
229           Training Window                                    Mon 12/20/99   Thu 4/20/00
230 [ICON]    ICO Planned G2 ICONET Integration                  Fri 9/10/99    Fri 9/24/99
231
232          HANDOVERS TO ICO (HO3)                              Fri 7/14/00    Fri 7/14/00
233           MEX/KOR/BRA                                        Fri 7/14/00    Fri 7/14/00
234
235          AVAILABLE TO ICO                                    Fri 7/14/00    Fri 7/14/00
236           5 MSSC                                             Fri 7/14/00    Fri 7/14/00
237           5 LIAS                                             Fri 7/14/00    Fri 7/14/00
238           5 HPN                                              Fri 7/14/00    Fri 7/14/00
239           1 MESSAGING                                        Fri 7/14/00    Fri 7/14/00
240           EIR/AUC                                            Fri 7/14/00    Fri 7/14/00
241           1 HLR                                              Fri 7/14/00    Fri 7/14/00
242           1 NODE-OS                                          Fri 7/14/00    Fri 7/14/00
243

</TABLE>
<PAGE>   2063
                      OVERALL PHASED SAN HANDOVER SCHEDULE
<TABLE>
<CAPTION>

ID   [ICON]    Task Name                                              Start          Finish
--------------------------------------------------------------------------------------------------
<S>  <C>       <C>                                                    <C>            <C>
1    [ICON]    IGF OVERALL SCHEDULE
8    [ICON]    **Notes: Please read, last updated: 4/6/99**
9              IGF Release                                            Mon  5/10/99   Fri  2/25/00
10   [ICON]       SIT Testing Pre-R1.5 Software                       Mon  5/10/99   Fri  5/28/99
11   [ICON]       IGF S/W RELEASE Pre-R1.5                            Mon  5/31/00   Mon  5/31/99
12   [ICON]       SIT Testing R1.5 Software                           Wed  6/30/99   Tue  9/21/99
13   [ICON]       IGF S/W RELEASE R1.5                                Tue  9/21/99   Tue  9/21/99
14   [ICON]       SIT Testing R2 Software                             Thu  9/30/99   Wed 11/24/99
15   [ICON]       IGF S/W RELEASE R2.0                                Wed 11/24/99   Wed 11/24/99
16   [ICON]       SIT Testing R2.5 Software                           Mon  1/30/00   Fri  2/25/00
17   [ICON]       IGE S/W RELEASE R2.5                                Fri  2/25/00   Fri  2/25/00
18
19   [ICON]    Function Sets                                          Wed   3/1/00   Thu   3/1/01
25
26             BMC                                                    Mon   6/7/99   Mon   5/1/00
27   [ICON]       ICO Supplied MUX/DCN (to USA) for WGD               Mon  7/12/99   Mon  7/12/99
28   [ICON]       ICO Supplied DCN/E1 Link (to USA) for SITG          Mon  7/12/99   Mon  7/12/99
29   [ICON]       ICO Supplied MUX/DCN (to Germany) for WGD           Mon  7/12/99   Mon  7/12/99
30   [ICON]       ICO Supplied DCN/E 1 Link (to Germany) for SITG     Mon  7/12/99   Mon  7/12/99
31   [ICON]       ICO Supplied MUX/DCN (to NMC) for WGD               Wed  12/1/99   Wed  12/1/99
32   [ICON]       ICO Supplied DCN/E 1 Link (to NMC) for SITG         Mon  11/8/99   Mon  11/8/99
33   [ICON]       DCN                                                 Mon   6/7/99   Mon  6/28/99
34   [ICON]       NODE OS                                             Thu  8/19/99   Tue  9/21/99
35   [ICON]       SRMC & LINK-OS                                      Mon 11/15/99   Fri 12/17/99
36   [ICON]       Phase 2-2/2 with All SANs                           Thu  1/13/00   Fri  3/31/00
37                Phase 3 (AC2, FS2)                                  Mon  4/30/00   Fri  4/14/00
38                SAN Available to NEC for Upgrade & Integration      Mon  4/17/00   Mon   5/1/00
39                BMC Handover (AS2)                                  Fri  4/14/00   Fri  4/14/00
40
41             Germany                                                Wed   7/1/98   Wed  11/1/00
42   [ICON]       ICO Supplied MUX/DCN (to South Africa) for WGD      Mon  9/13/99   Mon  9/13/99
43   [ICON]       ICO Supplied DCN/E1 Link (to South Africa) for SITG Mon  9/13/99   Mon  9/13/99
44   [ICON]       HLR Installation and Phase 2-1                      Mon   3/1/99   Fri   5/7/99
47   [ICON]       RFT Installation & Phase 2-1 Complete               Wed   7/1/98   Fri  10/9/98
48   [ICON]       SBS Installation & Phase 2-1 Complete               Wed  4/28/99   Wed  7/14/99
51   [ICON]       MSSC Installation & Phase 2-1 Complete & Training   Tue  1/12/99   Wed  5/12/99
55   [ICON]       TNM Installation & Phase 2-1 Complete               Mon  1/11/99   Fri  7/23/99
60   [ICON]       SAN OSS/DCN Phase 2-1 Complete                      Mon   5/3/99   Wed  5/26/99
61   [ICON]       Phase 2-2/1 Network Connectivity Checkout           Mon   7/5/99   Tue  9/14/99
62   [ICON]       Phase 2-2/1                                         Mon  7/26/99   Tue  9/14/99
63   [ICON]       Phase 2-2/2                                         Thu   1/6/00   Fri   2/4/00
64   [ICON]       Phase 3 (ACI, FS1)                                  Mon   2/7/00   Wed   3/1/00
65   [ICON]       Pre-ORT                                             Thu   3/2/00   Fri  4/14/00
66   [ICON]       SAN Available to NEC for Upgrade & Integration      Mon  4/17/00   Wed  11/1/00
70                Training Window for Germany                         Wed  9/15/99   Wed   1/5/00
71   [ICON]       ICO Planned G2 ICONET Integration                   Wed  2/17/99   Fri  2/26/99
72
73             Handover to ICO (HO1)                                  Wed   3/1/00   Wed   3/1/00
74   [ICON]       DEU                                                 Wed   3/1/00   Wed   3/1/00                 [GRAPH]
75
76             ARE                                                    Fri   9/4/98   Fri 10/27/00
77   [ICON]       ICO Supplied MUX/DCN (to Germany) for WGD           Mon  8/23/99   Mon  8/23/99
78   [ICON]       ICO Supplied DCN/E1 Link (to Germany) for SITG      Mon  8/23/99   Mon  8/23/99
79   [ICON]       RFT Installation & Phase 2-1 Complete               Fri   9/4/98   Thu  5/13/99
80   [ICON]       SBS Installation & Phase 2-1 Complete               Tue  8/31/99   Fri 10/15/99
83   [ICON]       MSSC Installation & Phase 2-1 Complete & Training   Fri   3/5/99   Fri  7/30/99
87   [ICON]       TNM Installation & Phase 2-1 Complete               Mon  4/19/99   Fri 10/15/99
91   [ICON]       SAN OSS/DCN Phase 2-1 Complete                      Fri   8/2/99   Wed  9/15/99
92   [ICON]       Phase 2-2/1 Network Connectivity Checkout           Mon 10/11/99   Fri  11/5/99
93   [ICON]       Phase 2-2/1                                         Mon  11/8/99   Fri 12/17/99
94   [ICON]       Phase 2-2/2                                         Mon  1/10/00   Fri  3/10/00
95                Phase 3 (AC2, FS2)                                  Mon  3/13/00   Fri  4/14/00
96   [ICON]       SAN Available to NEC for Integration with
                    DEU/ZAF/BMC                                       Tue  7/25/00   Wed 10/25/00
99                SAN Handover to ICO (HO2)                           Fri  4/14/00   Fri  4/14/00
100               Training Window (TBD)                               Mon  4/17/00   Fri 10/27/00
101  [ICON]       ICO Planned G2 ICONET Integration                   Thu   7/8/99   Mon  8/16/99
102
103  [ICON]    South Africa                                           Wed   7/1/98   Fri 10/27/00
104  [ICON]       ICO Supplied MUX/DCN (to India) for WGD             Wed   9/8/99   Wed   9/8/99
105  [ICON]       ICO Supplied DCN/E1 Link (to India) for SITG        Wed   9/8/99   Wed   9/8/99
106  [ICON]       RFT Installation Phase 2-1 Complete                 Wed   7/1/98   Fri 10/30/98
107  [ICON]       SBS Installation & Phase 2-1 Complete               Tue  9/14/99   Fri 10/22/99
110  [ICON]       MSSC Installation & Phase 2-1 Complete & Training   Tue  1/12/99   Fri 10/22/99
114  [ICON]       TNM Installation & Phase 2-1 Complete               Thu  1/21/99   Wed 10/13/99
119  [ICON]       SAN OSS/DCN Phase 2-1 Complete                      Mon  9/13/99   Wed  10/6/99
120  [ICON]       Phase 2-2/1 Network Connectivity Checkout           Mon 10/11/99   Fri  11/5/99
121  [ICON]       Phase 2-2/1                                         Mon  11/8/99   Fri 12/17/99
122  [ICON]       Phase 2-2/2                                         Mon  1/10/00   Fri  3/10/00
123               Phase 3 (AC2, FS2)                                  Mon  3/13/00   Fri  4/14/00
124  [ICON]       SAN Available to NEC for Integration with
                    DEU/ZAF/ARE/BMC                                   Mon  7/17/00   Wed 10/18/00
127               SAN Handover to ICO (HO2)                           Fri  4/14/00   Fri  4/14/00
128               Training Window                                     Mon  4/17/00   Fri 10/27/00
129  [ICON]       ICO Planned G2 ICONET Integration                   Tue  3/16/99   Thu  3/25/99
130
131            Handover to ICO (HO2)                                  Fri  4/14/00   Fri  4/14/00
132               ZAF/ARE & BMC                                       Fri  4/14/00   Fri  4/14/00
133
134            Available to ICO                                       Fri  4/14/00   Fri  4/14/00
135               8 MSSC                                              Fri  4/14/00   Fri  4/14/00
136               8 LIAS                                              Fri  4/14/00   Fri  4/14/00
137               8 HPN                                               Fri  4/14/00   Fri  4/14/00
138               1 ILR                                               Fri  4/14/00   Fri  4/14/00
139               1 MESSAGING                                         Fri  4/14/00   Fri  4/14/00
140               1 HLR                                               Fri  4/14/00   Fri  4/14/00
141               1 NODE-OS                                           Fri  4/14/00   Fri  4/14/00
142
143            Call Demonstrations                                    Wed   3/1/00   Thu   3/1/01
144               Demonstration A: Voice, Mobile Terminated &
                     Mobile Originated Calls                          Wed   3/1/00   Wed   3/1/00
145               Demonstration B: In Bank Fax and Data
                     at 2.4kbps                                       Mon   5/1/00   Mon   5/1/00
146               Demonstration C: Voice with Diversity               Tue   8/1/00   Tue   8/1/00
147               Demonstration D: GSM Data at 2.4kbps                Tue   8/1/00   Tue   8/1/00
148               Demonstration E: GSM Data at 9.6/2.4kbps            Sun  10/1/00   Sun  10/1/00
149               Demonstration F: GSM Fax and Data at 4.8kbps        Thu   3/1/01   Thu   3/1/01
</TABLE>

<PAGE>   2064
                      OVERALL PHASED SAN HANDOVER SCHEDULE
<TABLE>
<CAPTION>
                                                                                                  Qtr 2, 1998         Qtr 3, 1998
ID   [ICON]    Task Name                                            Start          Finish         Ma      Jun       Jul   Aug   Sep
------------------------------------------------------------------------------------------------------------------------------------
<S>  <C>       <C>                                                  <C>            <C>            <C>     <C>       <C>   <C>   <C>
244            USA                                                  Wed   7/1/98   Fri  9/15/00
245  [ICON]      ICO Supplied MUX/DCN (to Mexico) for WGD           Mon   7/5/99   Mon   7/5/99
246  [ICON]      ICO Supplied DCN/E 1 Link (to Mexico) for SITG     Mon   7/5/99   Mon   7/5/99
247  [ICON]      ICO Supplied MUX/DCN (to Germany) for WGD          Thu   7/8/99   Thu   7/8/99
248  [ICON]      ICO Supplied MUX/E 1 (to Germany) for SITG         Thu   7/8/99   Thu   7/8/99
249  [ICON]      ICO Supplied MUX/DCN (to Korea) for WGD            Mon   8/9/99   Mon   8/9/99
250  [ICON]      ICO Supplied MUX/E1 (to Korea) for SITG            Mon   8/9/99   Mon   8/9/99
251  [ICON]      RFT Installation & Phase 2-1 Complete              Wed   7/1/98   Fri  8/28/98
252  [ICON]      SBS Installation & Phase 2-1 Complete              Wed  1/27/99   Wed  7/21/99
255  [ICON]      MSSC Installation & Phase 2-1 Complete & Training  Tue  12/1/98   Fri   6/4/99
259  [ICON]      TNM Installation & Phase 2-1 Complete              Mon 12/14/98   Fri  7/23/99
264  [ICON]      SAN OSS/DCN Phase 2-1 Complete                     Mon  5/10/99   Wed   6/9/99
265              Phase 2-2/1 Network Connectivity Checkout          Thu   8/6/99   Wed   9/1/99
266              Phase 2-2/1                                        Thu  8/19/99   Wed  9/29/99
267  [ICON]      Phase 2-2/2                                        Mon  7/17/00   Fri  8/25/00
268              Phase 3 (AC4, FS4)                                 Mon  8/28/00   Fri  9/15/00
269              SAN Handover to ICO (HO4)                          Fri  9/15/00   Fri  9/15/00
270  [ICON]      II Window                                          Thu  8/12/99   Wed  7/19/00
273  [ICON]      ICO Planned G2 ICONET Integration                  Mon  7/12/99   Mon  7/26/99
274
275            CHILE                                                Wed   7/1/98   Fri  9/15/00
276  [ICON]      ICO Supplied MUX/DCN (to Brazil) for WGD           Fri  7/16/99   Fri  7/16/99
277  [ICON]      ICO Supplied DCN/E 1 Link (to Brazil) for SITG     Fri  7/16/99   Fri  7/16/99
278  [ICON]      RFT Installation & Phase 2-1 Complete              Wed   7/1/98   Fri  10/2/98
279  [ICON]      SBS Installation & Phase 2-1 Complete              Tue  4/13/99   Tue  9/14/99
282  [ICON]      MSSC Installation & Phase 2-1 Complete & Training  Tue  1/12/99   Mon   8/9/99
286  [ICON]      TNM Installation & Phase 2-1 Complete              Tue   2/2/99   Fri  7/30/99
291  [ICON]      SAN OSS/DCN Phase 2-1 Complete                     Mon  6/28/99   Wed  7/21/99
292              Phase 2-2/1 Network Connectivity Checkout          Thu   9/2/99   Wed  9/29/99
293  [ICON]      Phase 2-2/1                                        Mon  9/20/99   Fri 10/29/99
294  [ICON]      Phase 2-2/2                                        Mon  7/17/00   Fri  8/25/00
295              Phase 3 (AC4, FS4)                                 Mon  8/28/00   Fri  9/15/00
296              SAN Handover to ICO (HO4)                          Fri  9/15/00   Fri  9/15/00
297              Training Window                                    Mon  11/1/99   Fri  7/14/00
298  [ICON]      ICO Planned G2 ICONET Integration                  Tue   6/8/99   Tue  6/22/99
299
300            INDONESIA                                            Fri  8/28/98   Fri  9/15/00
301  [ICON]      ICO Supplied MUX/DCN (to Australia) for WGD        Tue   8/3/99   Tue   8/3/99
302  [ICON]      ICO Supplied DCN/E 1 Link (to Australia) for SITG  Mon  4/12/99   Mon  4/12/99
303  [ICON]      RFT Installation & Phase 2-1 Complete              Fri  8/28/98   Wed  3/31/99
304  [ICON]      SBS Installation & Phase 2-1 Complete              Wed  7/14/99   Fri  8/27/99
307  [ICON]      MSSC Installation & Phase 2-1 Complete & Training  Thu  3/18/99   Fri   6/4/99
311  [ICON]      TNM Installation & Phase 2-1 Complete              Thu   4/8/99   Fri  8/13/99
315  [ICON]      SAN OSS/DCN Phase 2-1 Complete                     Wed  3/17/99   Tue  5/11/99
316              Phase 2-2/1 Network Connectivity Checkout          Wed  8/18/99   Tue  9/14/99
317              Phase 2-2/1                                        Wed   9/1/99   Tue 10/12/99
318  [ICON]      SIT R2                                             Thu 10/28/99   Wed  12/1/99
319              SIT R2.5                                           Mon  3/27/00   Fri  4/28/00
320  [ICON]      Phase 2-2/2 (on R2.5)                              Mon  7/17/00   Fri  8/25/00
321              Phase 3 (on R2.5) (AC4, FS4)                       Mon  8/28/00   Fri  9/15/00
322              SAN Handover to ICO (HO4)                          Fri  9/15/00   Fri  9/15/00
323              Training Window                                    Thu  12/2/99   Fri  3/24/00
324  [ICON]      ICO Planned G2 ICONET Integration                  Tue  6/29/99   Mon  7/12/99                   [GRAPH]
325
326            AUSTRALIA                                            Wed   7/1/98   Fri  9/15/00
327  [ICON]      ICO Supplied MUX/DCN (to Korea) for WGD            Wed   7/7/99   Wed   7/7/99
328  [ICON]      ICO Supplied DCN/E1 Link (to Korea) for SITG       Wed   7/7/99   Wed   7/7/99
329  [ICON]      RFT Installation & Phase 2-1 Complete              Wed   7/1/98   Fri  8/14/98
330  [ICON]      SBS Installation & Phase 2-1 Complete              Tue   2/9/99   Fri  4/23/99
333  [ICON]      SBS & RFT Pre-Integration                          Thu   3/4/99   Wed  4/14/99
334  [ICON]      MSSC Installation & Phase 2-1 Testing & Training   Fri 11/20/98   Wed  7/28/99
338  [ICON]      TNM Installation & Phase 2-1 Complete              Tue   5/4/99   Fri  6/18/99
342  [ICON]      SAN OSS/DCN Phase 2-1 Complete                     Mon  1/18/99   Tue  2/16/99
343  [ICON]      Phase 2-2/1                                        Tue  6/15/99   Mon   8/2/99
344              Phase 2-2/1 Network Connectivity Checkout          Wed   8/4/99   Tue  8/31/99
345  [ICON]      SIT R1.5                                           Tue   8/3/99   Mon 10/11/99
346              SIT R2.0                                           Thu 10/28/99   Wed  12/1/99
347  [ICON]      Phase 2-2/2 (on R2.0)                              Fri  12/3/99   Fri  1/21/00
348              Phase 3 (on R2.0)                                  Mon  1/24/00   Fri  3/24/00
349              SIT R2.5                                           Mon  3/27/00   Fri  4/28/00
350              Phase 2-2/2 (on R2.5)                              Mon   5/1/00   Fri  5/26/00
351              Phase 3 (on R2.5) (AC4, FS4)                       Mon  5/29/00   Fri  9/15/00
352              SAN Handover to ICO (HO4)                          Fri  9/15/00   Fri  9/15/00
353  [ICON]      Training Window                                    Fri  8/27/99   Wed  12/1/99
354  [ICON]      ICO Planned G2 ICONET Integration                  Mon  3/22/99   Thu   4/1/99
355
356            INDIA (TBC)                                          Wed   7/1/98   Fri  9/15/00
357  [ICON]      ICO Supplied MUX/DCN (to Korea - bypass China)
                   for WGD                                          Tue  6/15/99   Tue  6/15/99
358  [ICON]      ICO Supplied DCN/E1 Link (to Korea) for SITG       Tue  6/15/99   Wed  12/1/99
361  [ICON]      ICO Supplied MUX/DCN (to Indonesia) for WGD        Mon  4/12/99   Mon  4/12/99
362  [ICON]      ICO Supplied DCN/E1 Link (to Indonesia) for SITG   Fri  8/27/99   Fri  8/27/99
363  [ICON]      ICO Supplied MUX/DCN (to ARE) for WGD              Mon  8/23/99   Mon  8/23/99
364  [ICON]      ICO Supplied DCN/E1 Link (to ARE) for SITG         Mon  8/23/99   Mon  8/23/99
365  [ICON]      Computer Floor                                     Thu   7/1/99   Thu   7/1/99
366  [ICON]      Window of Inst & PH2-1                             Fri   7/2/99   Wed  9/15/99
367  [ICON]      RFT Installation & Phase 2-1 Complete              Wed   7/1/98   Fri  8/28/98
368  [ICON]      SBS Installation & Phase 2-1 Complete (TBC)        Mon   7/5/99   Mon   8/9/99
371  [ICON]      MSSC Installation & Phase 2-1 Complete & Training
                   (TBC)                                            Thu 11/19/98   Thu  8/19/99
376  [ICON]      TNM Installation & Phase 2-1 Complete (TBC)        Mon   1/4/99   Fri  8/13/99
381  [ICON]      SAN OSS/DCN Phase 2-1 Complete (TBC)               Fri   7/2/99   Tue  7/27/99
382  [ICON]      Phase 2-2/1 Network Connectivity Checkout (TBC)    Mon  9/27/99   Fri 10/22/99
383  [ICON]      Phase 2-2/1 (TBC)                                  Mon 10/18/99   Fri 11/26/99
384  [ICON]      Phase 2-2/2 (on R2.5) (TBC)                        Mon  7/17/00   Fri  8/25/00
385              Phase 3 (on R2.5) (AC4, FS4) (TBC)                 Mon  8/28/00   Fri  9/15/00
386              SAN Handover to ICO (HO4)                          Fri  9/15/00   Fri  9/15/00
387  [ICON]      Training Window                                    Mon 11/29/99   Fri  7/14/00
388  [ICON]      ICO Planned G2 ICONET Integration                  Fri  8/13/99   Fri  8/27/99
389
390            HANDOVERS TO ICO (HO4)                               Sun  9/17/00   Sun  9/17/00
391              USA/CHL/IDN/AUS/IND/NMC                            Sun  9/17/00   Sun  9/17/00
392
393            FS5 COMPLETION                                       Thu  2/15/01   Thu   3/1/01
394  [ICON]      Phase 3 (AC5, FS5)                                 Thu  2/15/01   Thu  2/15/01
395  [ICON]      Completion of FS5                                  Thu   3/1/01   Thu   3/1/01
396
397            NMC                                                  Wed 10/28/98   Sun  9/17/00
398  [ICON]      ICO Supplied MUX/DCN (to India) for WGD            Wed   6/2/99   Wed   6/2/99
399  [ICON]      ICO Supplied DCN/E1 Link (to India) for SITG       Mon  3/22/99   Mon  3/22/99
400  [ICON]      ICO Supplied MUX/DCN (to USA) for WGD              Wed  6/30/99   Wed  6/30/99
401  [ICON]      ICO Supplied DCN/E1 Link (to USA) for SITG         Wed  6/30/99   Wed  6/30/99
402  [ICON]      HLR Installation and Phase 2-1                     Thu  3/25/99   Fri  4/16/99
405  [ICON]      Phase 2-2/1 Network Connectivity Checkout          Mon  6/28/99   Fri  7/23/99
406  [ICON]      NODE OS                                            Mon  8/23/99   Thu  9/23/99
407  [ICON]      SRMC/DCN/LINK-OS                                   Wed 10/28/98   Tue  8/31/99
411  [ICON]      Phase 2-2/1 with Australia                         Tue  9/14/99   Mon  11/1/99
412  [ICON]      Phase 2-2/2 with AII SANS                          Wed  11/3/99   Sat   4/1/00
413  [ICON]      Phase 3 (AC4, FS4)                                 Mon   4/3/00   Sun  9/17/00
414              NMC Handover to ICO (HO4)                          Sun  9/17/00   Sun  9/17/00
</TABLE>

790141B1                             Page 3            Date Created: 18 March 99
                                                         Date Amended: 4 June 99
                                              Date Printed: Mon 8/7/00 @ 7:33 AM

<PAGE>   2065

                                                       ICO GLOBAL COMMUNICATIONS
                                                         1 QUEEN CAROLINE STREET
                                                                     HAMMERSMITH
                                                                   LONDON W6 9BN
[ICO LOGO]                                                        UNITED KINGDOM

                                                           TEL: +44 181 600 1000
                                                           FAX: +44 181 600 1199

                                                           I-CO SERVICES LIMITED
                                               REGISTERED IN ENGLAND: NO.3045294
                                         REGISTERED OFFICE: 1 QUEEN CAROLINE ST.
                                                                LONDON W6 9BN UK

                               ANNEX 5 - TRAINING

                             COMMERCIALLY SENSITIVE
                             REPRODUCTION PROHIBITED

CONFIDENTIALITY STATEMENT
ALL INFORMATION CONTAINED IN THIS DOCUMENT IS CONFIDENTIAL AND PROPRIETY TO ICO
GLOBAL COMMUNICATIONS OR ANY OTHER MEMBER OF THE ICO GLOBAL COMMUNICATIONS GROUP
AND INTENDED ONLY FOR THE ADDRESSEE TO WHOM THIS COPY IS ADDRESSED. THE
RECIPIENT SHALL NEITHER COPY, DISTRIBUTE, DISCLOSE OR USE THE INFORMATION
CONTAINED IN IT FOR ANY PURPOSE OTHER THAN FOR WHICH THIS DOCUMENT HAS BEEN MADE
AVAILABLE NOR PERMIT ANYONE ELSE TO DO THE SAME. THE RECIPIENT SHALL BE HELD
FULLY LIABLE FOR ANY WRONGFUL DISCLOSURE OR USE OF ANY OF THE INFORMATION
CONTAINED IN THIS DOCUMENT BY HIM, OR HIS OFFICERS OR EMPLOYEES OR ANYONE ELSE
TO WHOM HE MAKES THE INFORMATION AVAILABLE.

           DOCUMENT NO.:        EN-IG-ICO-SW/ 000006

           VERSION:             2.11

           DATE:                26 May 1999

PREPARED                        ICO                       NEC

AUTHOR:                         TITLE:                    TITLE:

                                SIGNATURE:                SIGNATURE:

<PAGE>   2066

                                                           EN.IG-ICO-SW/ 000006
[ICO LOGO]                Annex 5 - Training               ISSUE:   2.10

                                                           26 May 1999

AMENDMENT RECORD

<TABLE>
<CAPTION>
REVISIONS         DATE          CN NO.        REASON FOR CHANGE
---------         ----          ------        -----------------
<S>               <C>           <C>           <C>
1.0               14/02/97                    NEC Contract Issue
2.0               17/2/97                     To incorporate final NEC comments.
2.1               19/2/97                     Incorporate new para 1.4
2.2               26/2/97                     Changes to table para 4.3 new para 4.5
2.3               26/2/97                     Minor editorial changes
2.4               25/2/98                     Addition of new 'options' training
2.5               9/3/98                      Addition of DCN Training
                  30/3/98                     Corrected Header Version Number
2.6               23/3/99                     To incorporate amendments for Phased SAN Handover
2.7               28/4/99                     To incorporate amendments from WGs.
2.8               29/4/99                     To reflect changes to UAE and South Africa Training as per
                                              discussions with NEC on 29/4/99
2.9               13/5/99                     Reflects comments from NEC Work Groups
2.10              19/5/99                     PSH updates and move of "accreditation" to new section 6.2
 Rev 1            21/5/99                     Reflect NEC comments
2.11              26/5/99                     To reflect the discussions/comments of the final meeting
</TABLE>

                                        1

Confidential and Proprietary to ICO Global Communications Created : 26/2/97
Revised 26/5/99

<PAGE>   2067

                                                           EN.IG-ICO-SW/ 000006
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                                                           26 May 1999

TABLE OF CONTENTS

        1. GENERAL                                                         3

        2. COURSE 1 - OPERATION & MAINTENANCE                              3

        3.COURSE 2 - ICO'S INSTRUCTOR'S TRAINING                           6

        4. COURSE 3 - SYSTEM ARCHITECTURE AND OPERATION & MAINTENANCE      8

        5. ADDITIONAL OPTIONS TRAINING                                     9

        6. GENERAL TRAINING CONDITIONS                                     11

                                        2

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1.       GENERAL

1.1.     This Annex sets out the scope of the training courses, for the ICO
         staff.

1.2.     The training courses are summarised below-:

1.2.1.   On Site Operation and Maintenance Course at each SAN Site

1.2.2.   ICO Training Instructor Course at one SAN Site and one NMC Site

1.2.3.   System Architecture and Operation and Maintenance Course at an NMC

1.3.     The Contractor in conjunction with ICO will develop a detailed training
         plan within 6 months of execution of this Agreement

1.4.     ICO and the Contractor shall work closely together to develop a
         training program that does not impact on the Master Level Schedule and
         which ensures availability of trained ICO staff at a time when O & M
         services are required.

2.       COURSE 1 - OPERATION & MAINTENANCE

2.1.     An On-Site Operation and Maintenance (O&M) course shall be carried out
         for each of the twelve SAN Sites.

2.2.     Training windows have been identified between the end of the Phase
         2-2/1 and the start of the Phase 2-2/2 activities for all SAN Sites
         with the exception of UAE and South Africa SAN sites.

         The Contractor, in consultation with ICO, will ensure that full
         training is provided for staff from the UAE and South Africa SANs
         before their respective handover dates. This will be achieved by
         running a second set of training courses for the staff from UAE and
         South Africa at alternative SAN sites.

         Training at the USA SAN will have to be co-ordinated with the G1/5/6 II
         Campaigns. This Training will initially be classroom based theory
         training, (on site) in the normal fashion with the remaining practical
         training being co-ordinated with the G1/5/6 ICONET Integration work.

                                        3

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         NEC will perform classroom based theory training, at the Australia SAN
         site, in the normal fashion and practical training will be undertaken
         as part of the 'hands-on' training which will take place during the
         ongoing development, integration and test activity.

         NEC and ICO to agree a solution for carrying out training for the NMC
         Staff, at a SAN Site and at the PNMC/BNMC Site.

         NEC will ensure that the latest available software builds are used
         during the training courses and that they will contain sufficient O&M
         functionality to conduct meaningful training.

2.3.     The purpose of this course is to provide the SAN Operator's operation
         and maintenance staff with an understanding of the operation and
         maintenance of the relevant system and sub-systems.

         The duration of the O&M Course, for each of the twelve (12) SAN Sites
         shall be as shown below -:

<TABLE>
<CAPTION>
          Item      Description                            Duration (Days)
          ----      -----------                            ---------------
<S>                 <C>                                    <C>
           1        Overall SAN and NMC System                   10
           2        RFT,                                         10
           3        MSSC/VLR and related equipment               45
                    -   AXE 10 System Survey
                    -   AXE 10 Cellular O&M,
                        basics
                    -   OSS Operation
                    -   HPN
           4        SBS                                          15
           5        TNM                                           5
           7        SAN OSS                                       5
           8        DCN System                                    2
</TABLE>

                                        4

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                                                           26 May 1999

         The courses shall include the following elements for each subsystems:

            a)  Principles and functional design

            b)  Interfaces and interaction with other subsystems

            c)  Safety aspects

            d)  Operation (local and remote)

            e)  Emergency operation

            f)  Routine maintenance

            g)  Troubleshooting

2.4      The number of SAN Operator's students, participating in each of the
         above courses, shall be a maximum of 10 students.

2.5.     Because the RFT sub-systems, particularly at the first six TT&C SAN
         Sites, shall be completed earlier than the SBS/MSSC/TNM systems the RFT
         On Site Operation and Maintenance training courses at the TT&C SAN
         Sites shall be held, after completion of the Installation Phase 2-1
         Test of the 2 RFT Sub-systems committed for early availability for TT&C
         Integration testing at each of six TT&C SAN Sites.

2.6      The Contractor shall provide background material and any other training
         course notes to supplement the operation and maintenance handbook.

2.7.     The Contractor shall allow "over the shoulder" observation, during the
         Equipment installation and testing.

                                        5

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                                                           26 May 1999

3.       COURSE 2 - ICO'S INSTRUCTOR'S TRAINING

3.1.     A training course shall be held for ICO's own Training Instructors.

3.2.     The purpose of this course is to train ICO's Training instructors so
         that they shall be able to carry out their own training courses on the
         SAN system architecture, as well as the operation and maintenance of
         the SAN and NMC systems.

3.3.     The duration of the On Site ICO Instructor's Training course shall be
         as shown in the table below. The starting date is to be mutually agreed
         during the course of the Phased SAN Handover program.

<TABLE>
<CAPTION>
        Item    Description                                    Duration (Days)
        ----    -----------                                    ---------------
<S>             <C>                                            <C>
         1      Overall SAN and NMC System                            10
         2      RFT                                                   10
         3      MSSC/VLR and related equipment                        65
                -    AXE 10 System Survey
                -    AXE 10 Cellular O&M, basics
                -    MSC/VLR/HLR O&M
                -    OSS Operation
                -    AXE 10 IOG O&M Advanced
                -    AXE Extended Software Maintenance
                -    HPN
         4      SBS                                                   25
         5      TNM                                                   5
         7      NMS/SRMC/SAN OSS                                      20
</TABLE>

3.4.     The number of ICO Training Instructors, participating in each of the
         above courses, shall be a maximum of 15 students.

3.5.     ICO have the option of converting the MSSC aspect of the instructor's
         training course (65 days) into an additional MSSC course for NMC
         engineers without impact on the schedule or additional cost to either
         party.

                                        6

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                                                           26 May 1999

         If ICO takes up this option, it is on the understanding that there is
         no MSSC equipment at the NMC, and that practical training cannot be
         provided at the NMC site. NEC and ICO have to agree where this MSSC
         course will be held in order to satisfy the training needs. If it is
         determined that the NMC staff should be sent to a SAN site for MSSC
         training then all such costs shall be covered by ICO.

3.6.     The ICO Training Instructors training course shall be held at one of
         the twelve (12) SAN Sites, to be elected by ICO, for the RFT, SBS ,HPN,
         MSSC, TNM, and SAN-OSS sub-systems and at one of the two (2) NMC Sites
         for the NMS/SRMC sub-system. Alternatively, this course may be held at
         the Contractor's facilities subject to prior agreement by ICO.

3.7.     Because the RFT sub-systems, particularly at the first six TT&C SAN
         Sites, shall be completed earlier than the SBS/HPN/MSSC/TNM systems the
         RFT training course for the ICO Training Instructors may be held
         correspondingly earlier than the remaining training courses.

3.8.     The Contractor shall provide background material and any other training
         course notes to supplement the operation and maintenance handbook.

                                        7

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Revised 26/5/99

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                                                           26 May 1999

4.       COURSE 3 - SYSTEM ARCHITECTURE AND OPERATION & MAINTENANCE

4.1.     A training course shall be held for training ICO's engineering staff at
         one of the NMC Sites, to be elected by ICO.

4.2.     The purpose of this course is to provide the ICO engineers with an
         understanding of the system architecture and overview of the operation
         and maintenance of all the SAN's from the NMC.

         NEC and ICO to review the proposed individual Training Plans for Course
         3 to ensure that NMC staff receives the appropriate sub-system training
         at the SAN Sites.

         NEC and ICO shall work together to find a solution for carrying out
         training to facilitate the NMC training above by considering:

         -   Running an additional Sub-System course at one SAN Site (to be
             determined by NEC & ICO)

         -   Sending a maximum of 2 NMC Staff to join the individual Sub-System
             O&M courses on up to 6 SAN Sites (to be determined by NEC & ICO

         Training window at the BNMC/PNMC site also still needs to be
         identified.

4.3.     The duration of the System Architecture and Operation and Maintenance
         training course shall be as shown below -:.

<TABLE>
<CAPTION>
         Item      Description                              Duration (Days)
         ----      -----------                              ---------------
<S>                <C>                                      <C>
          1        Overall SAN and NMC System                     10
          2        RFT                                            10
          3        MSSC/VLR and related equipment                 40
                   -   Telecom Network & AXE 10 -
                       Introduction
                   -   AXE 10 System Survey
                   -   MSC/VLR/HLR O&M
                   -   OSS Operation
                   -   AUC/EIR Training
                   -   HPN
          4        SBS                                            15
          5        TNM                                             5
          6        NMS/SRMC/SAN OSS                               10
          7        DCN System                                     15
</TABLE>

                                        8

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Revised 26/5/99
<PAGE>   2074

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                                                           26 May 1999

4.4.     The number of ICO engineers, participating in each of the above
         courses, shall be a maximum of 10 students.

5.       ADDITIONAL TRAINING

5.1      The following additional training courses shall be held for ICO SAN
         site staff.

5.2      The messaging and & ILR O&M courses will be taught only at the SAN
         Sites where this equipment will be installed. The duration of the
         courses are shown below.

<TABLE>
<CAPTION>
         Item      Description                  SAN Site          Duration
                                                                   (Days)
<S>                <C>                          <C>               <C>
          1        LIAS                         All SANs             5
          2        Messaging                     Germany             7
                                                Indonesia
                                                 Mexico
          3        ILR                             USA               5
                                                  Korea
                                                 Brazil
</TABLE>

5.3      The number of ICO Engineers, participating in each of the above
         courses, shall be a maximum of 10 people.

5.4      The following training courses will be held for ICO's NMC staff at the
         PNMC or the BNMC at ICO's discretion

5.5      The duration of these courses are as shown below:

<TABLE>
<CAPTION>
           Item      Description                              Duration (Days)
<S>                  <C>                                      <C>
            1        LIMS Operator Administration                    5
            2        Messaging Administration                        7
            3        ILR Administration Management                   5
</TABLE>

5.6      The number of ICO engineers, participating in each of the above
         courses, shall be a maximum of 10 people.

                                        9

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5.7      NEC to propose syllabus & schedule for the above courses in
         consultation with ICO.

5.8      Appropriate training courses on the additional options, i.e. Legal
         Interception, Messaging and ILR systems, for ICO's 15 instructors will
         be agreed with ICO.

                                       10

Confidential and Proprietary to ICO Global Communications

Created: 26/2/97

Revised 26/5/99
<PAGE>   2076

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                                                           26 May 1999

6.       GENERAL TRAINING CONDITIONS

6.1.     Training shall consist of a combination of lecture style training and
         hands-on training. The style of training shall be dependant on the
         particular training course, and convenience of the training syllabus.

6.2.     NEC and ICO shall work together to agree and configure a policy for
         accreditation of ICO SAN/NMC engineers within three months of the
         execution of this agreement. The purpose of such accreditation is to
         allow the appropriate ICO SAN/NMC engineers to maintain the IGF
         equipment, prior to Handover, when NEC staff are not available at the
         SAN site.

         The accreditation will indicate the level of the maintenance that ICO
         SAN/NMC engineers are permitted to perform until Handover of the
         individual SANs and NMCs. NEC shall retain full responsibility for the
         equipment until handover of the individual SAN or NMC.

         ICO shall make the relevant system and sub-systems available as
         required, for the purposes of hands-on training.

6.3.     The students shall, as a minimum, have background knowledge and
         understanding of one or more of the following technologies -:

         -        Satellite Communications
         -        Cellular mobile switching
         -        Installation of electronic systems
         -        Familiarity with PCs and Work Station operator consoles

                                       11

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Created: 26/2/97

Revised 26/5/99
<PAGE>   2077

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                                                           26 May 1999

6.4.     The students shall, as a minimum, have a good working knowledge and
         understanding of the English language.

6.5.     Training shall be carried out during normal local working hours
         nominally from 9:00am - 5:00pm 5 days a week.

6.6.     ICO shall make the required staff available during these hours for the
         training course.

6.7.     Training courses shall be conducted in the English Language by
         technical training experts from the Contractor. The trainers shall be
         experienced in training staff whose mother tongue is not English.

6.8.     One Copy of training notes shall be provided for each student, in the
         English language. All the training documentation shall be provided in
         the English language and shall preferably use SI units. A copy of the
         training material shall be supplied to both ICO and the SAN operator
         one month before the commencement of the training session.

6.9.     ICO shall supply the following training facilities at each SAN/NMC
         training Site for the duration of the training:

         -        Training room with seating and lighting for at least 10
                  students and one instructor.
         -        Overhead Projector Facilities for transparency presentation.
         -        Video Recorder and Television facilities
         -        White Board Facilities
         -        PC Overhead Projector Facilities
         -        Photocopy Machine
         -        Printer

                                       12

Confidential and Proprietary to ICO Global Communications

Created: 26/2/97

Revised 26/5/99
<PAGE>   2078

                                                       ICO GLOBAL COMMUNICATIONS
                                                         1 QUEEN CAROLINE STREET
                                                                     HAMMERSMITH
[ICO LOGO]                                                         LONDON W6 9BN
                                                                  UNITED KINGDOM

                                                           TEL: +44 181 600 1000
                                                           FAX: +44 181 600 1199

                                                           I-CO SERVICES LIMITED
                                               REGISTERED IN ENGLAND: NO.3045294
                                         REGISTERED OFFICE: 1 QUEEN CAROLINE ST.
                                                                LONDON W6 9BN UK

                             ANNEX 6: DOCUMENTATION

                             COMMERCIALLY SENSITIVE
                             REPRODUCTION PROHIBITED

CONFIDENTIALITY STATEMENT

ALL INFORMATION CONTAINED IN THIS DOCUMENT IS CONFIDENTIAL AND PROPRIETY TO ICO
GLOBAL COMMUNICATIONS OR ANY OTHER MEMBER OF THE ICO GLOBAL COMMUNICATIONS GROUP
AND INTENDED ONLY FOR THE ADDRESSEE TO WHOM THIS COPY IS ADDRESSED. THE
RECIPIENT SHALL NEITHER COPY, DISTRIBUTE, DISCLOSE OR USE THE INFORMATION
CONTAINED IN IT FOR ANY PURPOSE OTHER THAN FOR WHICH THIS DOCUMENT HAS BEEN MADE
AVAILABLE NOR PERMIT ANYONE ELSE TO DO THE SAME. THE RECIPIENT SHALL BE HELD
FULLY LIABLE FOR ANY WRONGFUL DISCLOSURE OR USE OF ANY OF THE INFORMATION
CONTAINED IN THIS DOCUMENT BY HIM, OR HIS OFFICERS OR EMPLOYEES OR ANYONE ELSE
TO WHOM HE MAKES THE INFORMATION AVAILABLE.

                 DOCUMENT NO.:        EN-IG-ICO-SW/000007

                 VERSION:             2.6

                 DATE:                2 June, 1999

       PREPARED                       ICO                   NEC

       AUTHOR:                        TITLE:                TITLE:

                                      SIGNATURE:            SIGNATURE:

<PAGE>   2079

                                                             EN-IG-ICO-SW/000007
[ICO LOGO]              Annex 6   -  Documentation           Version 2.6
                                                             2 June, 1999

AMENDMENT RECORD

<TABLE>
<CAPTION>
REVISION          DATE          CN NO.        REASON FOR CHANGE
--------          ----          ------        -----------------
<S>               <C>           <C>           <C>
1.0               14/2/97                     NEC Contract Issue
2.0               17/2/97                     To incorporate final NEC comments.
2.1               18/2/97                     Incorporate minor comments to  para's 1.2, 4.1 and Table 1
2.2               26/2/97                     Minor editorial changes
2.3               11/5/99                     Changes  to  accommodate  amendments  related  to Phased  SAN
                                              Handover
2.3 Draft 2       13/5/99                     Reflect comments  re 'As Built'
2.3 Draft 3       19/5/99                     ICO proposed changes added
2.4               20/5/99                     After first round discussion ICO - NEC PO
2.5               26/5/99                     Changes agreed ICO - NEC PO: 1.4, delete II row; editorials
2.5.1             1/6/99                      Amend VCRM timing
2.6               2/6/99                      Remove VCRM
</TABLE>

                                     Page i

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                                                             EN-IG-ICO-SW/000007
[ICO LOGO]              Annex 6   -  Documentation           Version 2.6
                                                             2 June, 1999

                                TABLE OF CONTENTS

1.   GENERAL                                                   1

2.   DOCUMENTATION  MANAGEMENT AND CONTROL                     1

3.   EQUIPMENT HANDBOOK                                        1

4.   AS-BUILT INFORMATION                                      2

5.   IOT CALIBRATION DATA                                      2

                                     Page ii

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<PAGE>   2081

                                                             EN-IG-ICO-SW/000007
[ICO LOGO]              Annex 6   -  Documentation           Version 2.6
                                                             2 June, 1999

1.       GENERAL

1.1      This Annex sets out the documentation that shall be provided by the
         Contractor in accordance with the requirements of this SOW.

1.2      The Contractor shall provide all documentation to ICO Global
         Communications in accordance with Table 1 of this Annex and shall be
         responsible for maintaining the currency of the documentation
         distribution of all copies and revisions to ICO.

1.3      The language used in all documentation submitted shall be English.
         Consistency of nomenclature shall be maintained between documents and
         each document shall contain a list of all abbreviations used. The SI
         system of units shall be used wherever possible throughout all
         documents. Common document standards shall be followed and the title
         page of all documents shall clearly identify;

              a)   document reference number

              b)   revision status

              c)   date of Issue

              d)   title of document

              e)   approval status

              f)    classification

              g)    author

              h)   distribution

1.4      In addition to hard copy, all documents shall also be submitted as
         electronic file(s) in MS Office (TM) or compatible format, or where
         appropriate, CD-ROM disk medium. Some documentation may be provided via
         electronic mail by agreement with ICO.

         The Switching O&M libraries will only be provided on CD ROM Disk
         medium.

2.       DOCUMENTATION MANAGEMENT AND CONTROL

         The documentation management and control process will be performed by
         the Contractor in accordance with the requirements contained in the
         Program Management Plan referred to in Table 1 of this Annex.

3.       EQUIPMENT HANDBOOK

3.1      The Equipment Handbook shall contain as a minimum:

                                     Page 1

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                                                             EN-IG-ICO-SW/000007
[ICO LOGO]              Annex 6   -  Documentation           Version 2.6
                                                             2 June, 1999

                  -        Detailed description of the sub-system addressed in
                           the relevant section including top-level functional
                           block diagrams, electrical, and technical performance
                           characteristics

                  -        All relevant interfaces and characteristics of
                           signals and data messages across those.

                  -        Conditions to be observed during normal operation of
                           the system

                  -        Anomalies, which may occur during normal operations
                           and how to rectify those.

                  -        Procedures for periodic maintenance and calibration
                           if applicable and their recommended schedules.

                  -        Corrective maintenance and fault-finding methods at
                           system level.

4.       AS-BUILT INFORMATION

4.1      The 'As-Built' Information data will be provided for the management
         centre sites and on a per SAN and NMC Site basis covering all the
         equipment and antenna areas and shall include-:

         -        Civil drawings as applicable
         -        Rack layout
         -        Elevation Drawings
         -        Interconnection and Cabling Diagrams
         -        Hardware Inventory
         -        Data Transcript files for the Switching elements

5.       IOT CALIBRATION DATA

         -        Test results from on-site tests shall be provided for the
                  purpose of calibrating the antennas used for IOT. The
                  characteristics to be measured are indicated in the section of
                  IOT of the ICD 'TT&C to SAN'.

                                     Page 2

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                                                             EN-IG-ICO-SW/000007
[ICO LOGO]              Annex 6   -  Documentation           Version 2.6
                                                             2 June, 1999

                       TABLE 1 - DOCUMENTATION SUBMISSION

<TABLE>
<CAPTION>
ITEM                                     SUBMISSION                                NO. OF COPIES
----                                     ----------                                -------------
                                                                                   (REF. TO NOTES BELOW)
                                                                                   ---------------------
<S>                                      <C>                                       <C>
Programme Mgt Plan (WG-PL-60041)         2 months after SA                                  2
The Contractor's standard QA Plans       SA Date                                            2
ICO-Specific Contractor's QA Plans       2 months after SA Date                             2
HLSD Draft contents List                 2 weeks after SA Date
Preliminary HLSD First Draft             2 weeks before System PDR
Issue 1st Draft of HLSD                  1 month after System PDR                           2
Complete First Version HLSD              1 Month after System FDR                           2
Final Version of HLSD                    At AS-5
Programme Review Meeting (PRM)
Reports                                  At ICO 3 working days before PRM
                                         meeting.                                           2 + Internet
Preliminary Design Reviews               1 clear week before PDR meeting                    5
Documentation Pack (system and
Subsystem)
Final Design Reviews Documentation       before FDR meeting 10 working days.                5
Pack (System and Subsystem)
In-Plant Ph.1 Test  Requirements         Draft 7 months prior to start of                   2
                                         tests Final 5 months  prior to
                                         start of Tests
In-Plant Ph.1  Test Plan                 Draft 3 months prior to start of                   2
                                         tests. Final 2 months prior to
                                         start of tests
In Plant Ph. 1 Script                    1 month prior to start of tests                    2
TT&C/IOT Calibration Procedures          2 months before the start of the                   2
                                         tests
In-Plant Ph.1 Test Data Report           Draft within 1 month after                         2 (+ 1 to each relevant
                                         completion of tests. Final 3                       install. site)
                                         months after completion of tests
</TABLE>

Note:

1. SA = Supply Agreement

2. For determining the due dates for documents, start of tests and training
shall be according to the baseline schedule in Annex 4.

                                     Page 3

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                                                             EN-IG-ICO-SW/000007
[ICO LOGO]              Annex 6   -  Documentation           Version 2.6
                                                             2 June, 1999

<TABLE>
<CAPTION>
ITEM                                     SUBMISSION                             NO. OF COPIES
----                                     ----------                             -------------
                                                                                (REF. TO NOTES BELOW)
                                                                                ---------------------
<S>                                      <C>                                    <C>
Shipping Information for all Shipments   on shipment                            2 (+ 1 to each install.
to Site and ICO                                                                 site)
On-Site Ph.2-1 Test  Requirements        Draft 7 months prior to start of       2
                                         tests.
                                         Final 5 months prior to start of
                                         Tests

On-Site Ph.2-1 Test Plan                 Draft 3 months prior to start of       2 (+ 1 to each test site)
                                         tests.
                                         Final 2 months prior to start of
                                         tests

On Site Ph 2-1 Script                    1 month prior to start of tests        2 (+ 1 to each test site)

On-Site Ph.2-1 Test Data Report          Draft within 1 month after             2 (+ 1 to each test site)
                                         completion of tests.
                                         Final 3 months after completion of
                                         tests

TT&C/IOT Calibration Data                2 weeks after the tests                2 (+ 1 at IOT site)

On Site Ph 3 Test Requirements           Draft 7 months prior to start of       2
(for each Acceptance Set)                each Acceptance Set tests.

                                         Final 5 months prior to start of
                                         each Acceptance Set Tests

Ph.3 Test Plan Overview                  Draft 3 months prior to start of       2
                                         Acceptance Set 1 tests.
                                         Final 2 months prior to start of
                                         Acceptance Set 1 tests

On-Site Ph.3 Test Plan                   Draft 3 months prior to start of       2
(for each Acceptance Set)                each Acceptance Set tests.

                                         Final 2 months prior to start of
                                         each Acceptance Set tests

 On Site Ph 3 Test Script                1 month prior to start of each         2 (+ 1 to each test site)
(for each Acceptance Set)                Acceptance Set tests

On-Site Ph.3 Test Data Report            Draft within 1 month after             2 (+ 1 to each test site)
(for each Acceptance Set)                completion of each Acceptance Set
                                         tests.

                                         Final for FS-4 3 months after
                                         completion of the AS-4 tests
                                         Final for FS-5 3 months after
                                         completion of the AS-5 tests

Training Syllabus                        3 months before start of training      2
                                         sessions

Training Manuals and Documentation       1 month before start of training       2 (+ 10 to each training
(inc notes)                              sessions                               site)

O & M Equipment Handbooks                At equipment delivery                  2 (+ 1 to each install. site)

As Built Drawings (2 RFT's TT &C sites)  1 month after completion of site work

As-Built for SAN and NMC Sites           Marked up version at each handover     2 (+ 1 to each install.
                                         Final 1 month after each handover      site)

Air Interface Protocol Validation        as detailed in Annex 11                5 Copies
(AIPV)

LIMF Requirements                        as detailed in SOW                     2
</TABLE>

                                     Page 4

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                                                             EN-IG-ICO-SW/000007
[ICO LOGO]              Annex 6   -  Documentation           Version 2.6
                                                             2 June, 1999

<TABLE>
<CAPTION>
                                                                                 NO. OF COPIES
ITEM                                     SUBMISSION                             (REF. TO NOTES BELOW)
----                                     ----------                             ---------------------
<S>                                      <C>                                    <C>
Integration Effort Test                  Draft 7 months prior to start of       2
Requirements                             each Acceptance Set tests.
(for AS-2 to AS-4)

                                         Final 5 months prior to start of
                                         each Acceptance Set Tests

Integration Effort Test Plan             Draft 3 months prior to start of       2
(for AS-2 to AS-4)                       each Acceptance Set tests.

                                         Final 2 months prior to start of
                                         each Acceptance Set tests

Integration Effort Test Script           1 month prior to start of each         2 (+ 1 to each test site)
                                         Acceptance Set tests

Integration Effort Test Report           Draft within 1 month after             2 (+ 1 to each test site)
(for AS-2 to AS-4)                       completion of each Acceptance Set
                                         tests.

                                         Final for AS-4 3 months after
                                         completion of the AS-4 tests
</TABLE>

                                     Page 5

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<PAGE>   2086

                                                             EN-IG-ICO-SW-000873
[ICO LOGO]       Annex 7B Joint Working Arrangements for     Issue 2.2
                 Phased SAN Handover                         3 June 1999

                                                       ICO GLOBAL COMMUNICATIONS
                                                         1 QUEEN CAROLINE STREET
                                                                     HAMMERSMITH
                                                                   LONDON W6 9BN
                                                                  UNITED KINGDOM
[ICO LOGO]
                                                          TEL: +44 181 600 10000
                                                           FAX: +44 181 600 1199

                                                           I-CO SERVICES LIMITED
                                              REGISTERED IN ENGLAND: NO. 3045294
                                         REGISTERED OFFICE: 1 QUEEN CAROLINE ST.
                                                                LONDON W6 9BN UK

           ANNEX 7B JOINT WORKING ARRANGEMENTS FOR PHASED SAN HANDOVER

                             COMMERCIALLY SENSITIVE
                             REPRODUCTION PROHIBITED

CONFIDENTIALITY STATEMENT
ALL INFORMATION CONTAINED IN THIS DOCUMENT IS CONFIDENTIAL AND PROPRIETY TO ICO
GLOBAL COMMUNICATIONS OR ANY OTHER MEMBER OF THE ICO GLOBAL COMMUNICATIONS GROUP
AND INTENDED ONLY FOR THE ADDRESSEE TO WHOM THIS COPY IS ADDRESSED. THE
RECIPIENT SHALL NEITHER COPY, DISTRIBUTE, DISCLOSE OR USE THE INFORMATION
CONTAINED IN IT FOR ANY PURPOSE OTHER THAN FOR WHICH THIS DOCUMENT HAS BEEN MADE
AVAILABLE NOR PERMIT ANYONE ELSE TO DO THE SAME. THE RECIPIENT SHALL BE HELD
FULLY LIABLE FOR ANY WRONGFUL DISCLOSURE OR USE OF ANY OF THE INFORMATION
CONTAINED IN THIS DOCUMENT BY HIM, OR HIS OFFICERS OR EMPLOYEES OR ANYONE ELSE
TO WHOM HE MAKES THE INFORMATION AVAILABLE.

                 DOCUMENT NO.:       EN-IG-ICO-SW-000873

                 VERSION:            2.2

                 DATE:               3 June 1999

       PREPARED                      AUTHORISED            APPROVED

       AUTHOR:                       MANAGER:              SENIOR MANAGER:

Confidential and Proprietary to ICO Global Communications

<PAGE>   2087

                                                             EN-IG-ICO-SW-000873
[ICO LOGO]       Annex 7B Joint Working Arrangements for     Issue 2.2
                 Phased SAN Handover                         3 June 1999

AMENDMENT RECORD

<TABLE>
<CAPTION>
REVISION           DATE               CN NO.   REASON FOR CHANGE
--------           ----               ------   -----------------
<S>                <C>                <C>      <C>
1.0                23/4/99                     Phased SAN Handover Agreements
Draft 2            23/4/99                     To reflect ICO Doc 'Joint Working Arrangement' & NEC/ICO
                                               Responsibilities for Upgrades and  Integration at the SANs
                                               &  NMCs
Draft 3            27/4/99                     To reflect responsibilities for Configuration Management of
                                               MSSC and HLR- as discussed and agreed at NEC PO/ICO Meeting
                                               on 27/4/99
Draft 4            28/4/99                     To reflect Final comments collated from within ICO by CW
Draft 5            29/4/99                     Based on discussion KH/IM 29/4/99
Draft 6            13 May 99                   Proposed revisions incorporating proposals for resolution
                                               of issues and also for minor text updates.
Draft 7            14 May 1999                 Incorporating revisions as result of discussion with TK of
                                               NEC and GW.
Draft 8            18 May 1999                 NEC Comment
Version 2.0        25 May 1999                 Re-write after NEC ICO discussions of 24 and 25 May 1999.
Version 2.1        26 May 1999                 Revisions as per meeting NEC/ICO 26 May 1999.
Ver 2.1 R1         27 May 1999                 NEC Comments
Ver 2.1 R2         28 May 1999                 Incorporating revisions as results of discussion with ICO
                                               and NEC on 28th May 1999
Ver 2.1 R3         2 June 1999                 Minor edits
Ver 2.2            3 June 1999                 Final edits after NEC/ICO meet.
</TABLE>

Confidential and Proprietary to ICO Global Communications

<PAGE>   2088

                                                             EN-IG-ICO-SW-000873
[ICO LOGO]       Annex 7B Joint Working Arrangements for     Issue 2.2
                 Phased SAN Handover                         3 June 1999

                                TABLE OF CONTENTS

1.    INTRODUCTION                                                           1

2.    OVERALL PHASED HANDOVER PHILOSOPHY                                     1

3.    ICONET INTEGRATION                                                     4

4.    SOFTWARE UPGRADES AND MULTI-SAN INTEGRATION                            4

5.    RESPONSIBILITIES FOR MANAGEMENT OF OPERATIONAL AND TEST NETWORKS       6

5.1   GENERAL MANAGEMENT RESPONSIBILITIES                                    6

5.2   FAULT MANAGEMENT                                                       8

5.3   CONFIGURATION MANAGEMENT                                               8

5.4   SRMS                                                                  10

5.5   GROUND NETWORK                                                        10
   5.5.1       General Principles                                           10
   5.5.2       Control                                                      11
   5.5.3       Process                                                      11

5.6   DCN                                                                   11

6.    PERFORMANCE MANAGEMENT                                                12

Confidential and Proprietary to ICO Global Communications

<PAGE>   2089

                                                             EN-IG-ICO-SW-000873
[ICO LOGO]       Annex 7B Joint Working Arrangements for     Issue 2.2
                 Phased SAN Handover                         3 June 1999

1.       INTRODUCTION

         This Annex describes the scope of the Joint Working Arrangements which
         covers:

         -        Overall Phased Handover Philosophy
         -        Principles for Software Upgrades and Multi-SAN Integration
         -        Responsibilities for Management of Operational and Test
                  Networks

2.       OVERALL PHASED HANDOVER PHILOSOPHY

2.1      The IGF shall be handed over in a phased sequence as shown in Figure 1.
         The Acceptance Criteria for each part of the IGF that is handed over
         are defined in Annex 10, Section 2. All references to Acceptance
         Criteria and Acceptance Sets in this Section 2 mean the corresponding
         parts of Annex 10, Section 2.

                                       1

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<PAGE>   2090

                                                             EN-IG-ICO-SW-000873
[ICO LOGO]       Annex 7B Joint Working Arrangements for     Issue 2.2
                 Phased SAN Handover                         3 June 1999

                                [FLOW CHART]

                  Fig. 1 Overall Phased SAN Handover Philosophy

                                       2

Confidential and Proprietary to ICO Global Communications

<PAGE>   2091

                                                             EN-IG-ICO-SW-000873
[ICO LOGO]       Annex 7B Joint Working Arrangements for     Issue 2.2
                 Phased SAN Handover                         3 June 1999

2.2      PHASED HANDOVER SEQUENCE

         i.       The German SAN, with Function Set 1 (FS-1), shall be handed
                  over to ICO in accordance with Acceptance Set 1 (AS-1).

         ii.      UAE, South Africa SANs and the Backup NMC (BMC) shall be
                  tested for achievement of the acceptance criteria defined for
                  Acceptance Set 2 (AS-2). On completion of the test the UAE and
                  South Africa SANs and the BMC shall be handed over to ICO.

         iii.     The Contractor will permit ICO access (the functions that ICO
                  may use in the equipment that ICO can access are defined in
                  Sections 4 and 5) to the MSSCs (including GMSSC functionality)
                  that have not been handed over at Acceptance Set 2 (AS-2) and
                  HLRs at the NMC at Acceptance Set 3 (AS-3).

         iv.      The Contractor shall install the software required for
                  Function Set 2 (FS-2) to the German SAN and integrate it with
                  the UAE and South Africa SANs, and the BMC, that have been
                  already handed over to ICO.

         v.       The procedures in step ii to iv, above, are repeated for
                  Mexico, Korea and Brazil SANs with Function Set 3 (FS-3) and
                  Acceptance Set 3 (AS-3), and for USA, Chile, India, Australia
                  and Indonesia SANs and Primary NMC, with Function Set 4 (FS-4)
                  and Acceptance Set 4 (AS-4).

         vi.      The integration of the USA ILR shall be carried out by, or on
                  behalf of, ICO no sooner than completion of Acceptance Set 4
                  (AS-4).

         vii.     FS-5 shall be tested in accordance with Acceptance Set 5
                  (AS-5).

         viii.    The Contractor shall make available to ICO the FS-5 software
                  and the new configuration data associated with FS-5 for
                  download to the 11 SANs and 2 Network Management Centres
                  handed over in AS4. The place and medium of software delivery
                  will be determined by ICO to be compatible with equipment
                  requirements and operational needs.

2.3      OPERATION OF THE GON

2.3.1    The Contractor will make best efforts, consistent with the priorities
         described in paragraph 5.5.2 iii), to avoid unscheduled impacts to the
         operation of the GON after POFT commences. ICO currently plans POFT to
         commence between AS-3 and AS-4.

                                        3

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<PAGE>   2092

                                                             EN-IG-ICO-SW-000873
[ICO LOGO]       Annex 7B Joint Working Arrangements for     Issue 2.2
                 Phased SAN Handover                         3 June 1999

3.       ICONET INTEGRATION

3.1      One SAN (the USA SAN) will be used for both the Contractor's IGF
         testing and to commence ICONET Integration G156(E).

3.2      The Contractor and ICO shall make best efforts to optimise planning and
         execution of IGF testing and ICONET Integration testing to ensure that
         ICONET Integration can proceed as expeditiously as is reasonably
         possible within the window shown in the SOW Annex 4 Schedule (MLS) for
         the USA SAN.

3.3      IGF Integration and Testing shall be top priority during the scheduled
         periods, however, ICONET Integration needs should also be accommodated
         at the USA SAN (and other SANs involved in ICONET Integration) during
         these periods. Where ICO's priorities change such that II testing or
         other activities need to take priority over IGF Testing and
         Integration, ICO and the Contractor shall agree a change in schedule,
         including reasonable IGF schedule relief where appropriate.

4.       SOFTWARE UPGRADES AND MULTI-SAN INTEGRATION

4.1      ROLES

4.1.1    ICO shall be responsible for the Operation and Maintenance of the SAN
         and NMC sites after their Handover and shall be the sole point of
         contact for the Contractor to request access to a SAN / NMC after it
         has been handed over to ICO.

4.1.2    After hand over of an Acceptance Set, that is SAN/NMC and software,the
         Contractor shall continue IGF System Integration and Testing activities
         at the SANs that have not been handed over, including multi-SAN
         testing.

4.1.3    The Contractor shall be responsible, for the FS-2, FS-3, FS-4 Software
         corrections and upgrades at the SANs and BMC that have already been
         handed over to ICO. ICO shall support the Contractor with operations
         and maintenance staff at each SAN site during these correction and
         upgrade activities.

                                        4

Confidential and Proprietary to ICO Global Communications
<PAGE>   2093

                                                             EN-IG-ICO-SW-000873
[ICO LOGO]       Annex 7B Joint Working Arrangements for     Issue 2.2
                 Phased SAN Handover                         3 June 1999

4.1.4    The Contractor shall be responsible, with the support of ICO operation
         & maintenance staff, for the integration of the new SANs and NMC with
         the SANs and BMC that have already been handed over to ICO.
         Configuration data for new SANs being integrated by the Contractor into
         the SANs already handed over to ICO will match or be consistent with
         the configuration data at the SANs already handed over to ICO.

4.1.5    For the purposes of software upgrade (FS-2 to FS-4 inclusive) and
         integration ICO shall make any SANs and the Backup NMC, that have
         already been handed over to ICO, available to the Contractor according
         to a detailed programme.

4.1.6    If these SANs and the Backup NMC, that have already been handed over,
         can not be made available by ICO by the scheduled date, ICO shall
         notify the Contractor, in writing, 2 weeks before the scheduled date,
         with the estimated schedule. All schedules following this event will be
         changed accordingly. In case the change in scheduled date of access is
         more than 2 weeks, the associated impact will be dealt with by the
         Change Request Procedure in Clause 9 of the Supply Agreement. In this
         case ICO shall issue a Change Request with the above written
         notification to the Contractor.

4.1.7    For the FS-3 to FS-4 upgrade the Software Upgrade and SAN Integration
         Transitions shall be as unobtrusive as reasonably possible. Operation
         of the SANs, already handed over to ICO, shall be maintained with the
         minimum of interruption. The detailed programme for upgrade of SANs
         shall be agreed by ICO and the Contractor. SAN upgrades will be phased
         so that not all SANs will be taken out of operation for upgrade at the
         same time. That is, specified SANs, or blocks of SANs will be
         sequentially upgraded and integrated. In particular, the German SAN and
         UAE SAN will not be simultaneously taken out of operation for software
         up-grade and integration, so that ICO can provide continuous services
         in the common geographic area covered by the German and UAE SANs.

                                        5

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                                                             EN-IG-ICO-SW-000873
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                 Phased SAN Handover                         3 June 1999

4.1.8    ICO shall permit the Contractor access to the Australian SAN and NMC as
         appropriate, after they have been handed over, for the Contractor's
         continued testing and verification of Function Set FS-5. The procedures
         for testing and verifying FS-5 shall be developed such that FS-5
         testing is as unobtrusive as reasonably possible and minimises
         un-necessary interference with ICO operations at the Australian SAN
         site and the NMC.

4.1.9    ICO shall be responsible for the FS-5 Software Upgrade. The Contractor
         shall support ICO in the installation of the FS-5 software upgrade. The
         procedures used for upgrading the SANs from FS-4 to FS-5 shall be
         developed by the Contractor based on the experience of the three
         previous upgrades. The level of support provided by the Contractor,
         shall be appropriate to support ICO's execution of the developed
         procedures.

4.2      OPERATIONS DURING SOFTWARE UPGRADES

4.2.1    During the phase when the SANs are being upgraded, there will be a
         period when the handed over SANs will operate with different FSs.

4.2.2    ICO will be able to use the handed over SANs so that the ICO system
         will operate at the lowest FS and, simultaneously, will operate in some
         smaller geographic area defined by the SANs and the IGF configuration
         at the higher FS. That is the new SANs equipped at the higher FS are
         compatible with the SANs equipped at the lower FS.

5.       RESPONSIBILITIES FOR MANAGEMENT OF OPERATIONAL AND TEST NETWORKS

5.1      GENERAL MANAGEMENT RESPONSIBILITIES

5.1.1    The definitions of the Networks, Operational and Test, are as per SOW
         Annex 7C Network Partitioning. The structuring of Management
         Responsibilities is based around the practicalities of the individual
         entities in the IGF. The Contractor and ICO agree that the following
         systems shall be managed as a single entity because it is not possible
         to separate these platforms:

         -        SRMS

                                        6

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<PAGE>   2095

                                                             EN-IG-ICO-SW-000873
[ICO LOGO]       Annex 7B Joint Working Arrangements for     Issue 2.2
                 Phased SAN Handover                         3 June 1999

         -        Ground Network

         -        DCN

5.1.2    One SRMC shall be used to provide the Radio Resource Allocation Plan
         for both the RON and the RTN.

5.1.3    The Ground Network shall be configured in a manner that creates the
         logical GON and the GTN.

5.1.4    The DCN shall be used to support Network  Management information
         transport for both the ON and TN and shall also  be used for
         downloading software to the SANs and NMCs.

5.1.5    The Management of the Operational Network (ON) shall be undertaken by
         ICO.

5.1.6    The Management of the Radio Test Network (RTN) shall be undertaken by
         the Contractor.

5.1.7    The Management of the Ground Test Network (GTN) shall be undertaken by
         the Contractor

5.1.8    Management for the purposes of this agreement involves:

         -        Fault Management

         -        Configuration Management

         -        Performance Management

5.1.9    The joint working arrangements for each of these activities are
         detailed in the following sections.

5.1.10   ICO and the Contractor shall agree single points of contact between the
         Contractor and ICO for managing the joint working arrangements as
         detailed in this Annex. The authorised individuals are:

         -        ICO: Director of ICONet Operations

                                        7

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<PAGE>   2096

                                                             EN-IG-ICO-SW-000873
[ICO LOGO]       Annex 7B Joint Working Arrangements for     Issue 2.2
                 Phased SAN Handover                         3 June 1999

         -        The Contractor: The Contractor's Test Controller.

         The authorised individuals will work within the management structure of
         the IGF Supply Agreement.

5.2      FAULT MANAGEMENT

5.2.1    The Contractor shall be responsible for fault management of the SANs
         and NMCs until completion of handover of each Acceptance Set (AS-1 to
         AS-4)

5.2.2    Upon completion of handover of each Acceptance Set (AS-1 to AS-4
         inclusive) ICO shall be responsible for fault management of the
         equipment that has been handed over. The Contractor shall retain
         responsibility for resolution of faults and problems for the handed
         over equipment. The process for management of the resolution of
         problems is as defined in Annex 8A.

5.2.3    The Contractor shall make its Problem Tracking BugBase Database and its
         Fault Reporting Access Database available to ICO for use by ICO at SANs
         that have already been handed over to ICO.

5.2.4    For shared resources, i.e. SRMS, GN and DCN, where ICO has taken on
         responsibility for management of shared resources at the stages defined
         in Section 5.4, 5.5 and 5.6, ICO shall provide the Contractor with
         details of the status and faults on this equipment using procedures to
         be agreed. The Contractor will report faults to ICO discovered during
         their use of these systems for purposes of testing the IGF.

5.3      CONFIGURATION MANAGEMENT

5.3.1    The Contractor shall be responsible for Configuration Management of the
         SANs and NMCs prior to each Acceptance Set handover, that is AS 1, 2, 3
         and 4.

                                        8

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<PAGE>   2097

                                                             EN-IG-ICO-SW-000873
[ICO LOGO]       Annex 7B Joint Working Arrangements for     Issue 2.2
                 Phased SAN Handover                         3 June 1999

5.3.2    ICO shall be responsible for Configuration Management of the SAN and
         NMC equipment after handover.

5.3.3    Configuration Management includes:

         -        Defining, implementing and maintaining the documentation
                  defining the physical build of the IGF, that is the equipment
                  installed and its interconnection

         -        Defining, implementing and maintaining the documentation
                  defining the software that is built into the IGF, including
                  software releases and subsequent software patches.

         -        Defining, implementing and maintaining the documentation
                  defining the configuration information that is used for the
                  proper functioning of the IGF.

         -        Ensuring that the equipment as configured and the
                  documentation defining the configuration are consistent.

5.3.4         The Contractor shall provide Software configuration data on an
              Access Database, which ICO will import into its planned
              Configuration Management tool.

5.3.5         ICO shall be responsible for the configuration management of
              shared resources as defined in Sections 5.4, 5.5 and 5.6. As part
              of these responsibilities ICO will implement the configurations
              that the Contractor requires for the purposes of IGF Integration
              and Testing and also ICONet Integration. The Contractor will be
              responsible for defining the configuration that they require ICO
              to implement for the TN.

5.3.6         The Contractor and ICO shall use the Computerized Inventory
              Management System (CIMS) for handling hardware inventory.

                                        9

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<PAGE>   2098

                                                             EN-IG-ICO-SW-000873
[ICO LOGO]       Annex 7B Joint Working Arrangements for     Issue 2.2
                 Phased SAN Handover                         3 June 1999

5.4      SRMS

5.4.1    ICO shall, after AS-2 operate the SRMS at the Backup NMC to generate
         the appropriate SRM Data needed by the RON and the RTN. The process for
         management of the SRM Data after AS-2 handover shall include Input
         Files to SRMS and Data Generation and Distribution by SRMS:

         -        The Contractor shall provide ICO with the RTN configuration
                  they require for the purposes of build, integration testing of
                  the IGF and for II testing (where the contractor is required
                  to execute a relevant II campaign). The details of the
                  information and its format will be agreed by ICO and the
                  Contractor.

         -        ICO shall be responsible for modification of input files to
                  SRMS as well as creating and delivering the configuration data
                  that will be used by the RON and RTN by utilising SRMS. In the
                  event of inconsistencies between ICO requirements and the
                  Contractor requirements ICO will resolve the inconsistencies
                  using a process that will be agreed by ICO and the Contractor.

         -        ICO shall be responsible for the distribution of the RON and
                  RTN configuration data (generated by the SRMS) using the data
                  distribution scheduling as defined in the SRMS SDD 670027.

5.5      GROUND NETWORK

5.5.1    General Principles

         The following basic principles apply to the management of configuration
         data for the MSSCs and HLRs:

         -        The MSSC Data Transcript is based on the ICO Network
                  Information Binder (NIB).

                                       10

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<PAGE>   2099

                                                             EN-IG-ICO-SW-000873
[ICO LOGO]       Annex 7B Joint Working Arrangements for     Issue 2.2
                 Phased SAN Handover                         3 June 1999

         -        Within the Ground Test Network, the Contractor shall be able
                  to apply test configurations and restore the original
                  configuration based on the NIB.

         -        Perceived discrepancies in the Data Transcript will be
                  resolved against the NIB.

         -        Changes to the Data Transcript will be performed through a
                  centrally controlled process that will be agreed by ICO and
                  the Contractor.

5.5.2    Control

         (i)      The Contractor shall be responsible for management of
                  configuration data prior to AS-3 Handover at which point the
                  responsibility will be transferred to ICO.

         (ii)     ICO and the Contractor will jointly resource a central team
                  that will execute the changes to configuration data.

         (iii)    Until AS-4 handover the order of priorities to be applied for
                  management decisions will be:

                  Priority 1          IGF
                  Priority 2          II
                  Priority 3          ORT/POFT

                  From the beginning of POFT the underlying approach to all
                  activities will be to cause the minimum impact to the
                  operation of the GON

5.5.3    Process

         The Process for management of the configuration data for the MSSC and
         HLRs during the phased SAN handover will be based on the above
         principles. The details of the Process will be formulated and agreed by
         ICO and the Contractor.

5.6      DCN

5.6.1    ICO shall be responsible for operating and maintaining the DCN network
         from AS-2 handover.

5.6.2    The following process shall be followed after AS-2 handover.

                                        11

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<PAGE>   2100

                                                             EN-IG-ICO-SW-000873
[ICO LOGO]       Annex 7B Joint Working Arrangements for     Issue 2.2
                 Phased SAN Handover                         3 June 1999

         -        The DCN is as defined in the IGF. It is anticipated that the
                  DCN will be configured as planned for the IGF and that there
                  will be no configuration changes for the DCN to support
                  implementation and testing of either the IGF or for II.

         -        It is anticipated that the normal operational configuration of
                  the DCN shall be as defined in IGF DCN SAN & NMC LAN SDD
                  A70428 and A Study Report on the Design of DCN WAN A70252 so
                  as to support the planned traffic level as defined in WGA
                  TN704271.

         -        The DCN configuration includes emergency condition
                  configurations and in the event of such an emergency event the
                  fault reporting process will be used and ICO will execute its
                  planned contingency configuration.

5.6.3    Until AS-4 handover the order priorities to be applied for management
         decisions will be:

         Priority 1                   IGF
         Priority 2                   II
         Priority 3                   ORT/POFT

         From the beginning of POFT the underlying approach to all activities
         will be to cause the minimum impact to the operation of the GON.

6.       PERFORMANCE MANAGEMENT

6.1      ICO shall be responsible for the performance management of the ON. The
         Contractor shall be responsible for performance management of the
         shared resources prior to handover to ICO. ICO shall be responsible for
         performance management of the shared resources and procedures as
         follows:

         -        SRMS after AS-2 handover

         -        GN after AS-3 handover

         -        DCN after AS-2 handover.

                                        12

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<PAGE>   2101

                                                             EN-IG-ICO-SW-000873
[ICO LOGO]       Annex 7B Joint Working Arrangements for     Issue 2.2
                 Phased SAN Handover                         3 June 1999

6.2      The Contractor and ICO shall jointly develop and implement a set of Key
         Performance Indicators that will cover:

         -        Network performance, for example, network availability
                  including DCN network availability as derived from the IGFR,
                  Inter-MSSC link availability and MSSC transit and gateway
                  availability.

         -        Performance of the process that has been jointly agreed by the
                  Contractor and ICO, for example, number of faults and their
                  average clearance time.

6.3      The authorised individuals shall regularly meet to review actual
         performance against the agreed Key Performance Indicators. In the event
         of failure by ICO to achieve the Key Performance Indicators and where
         it can be demonstrated that failure to achieve the Key Performance
         Indicators has impacted on IGF activities, reasonable IGF schedule
         relief may be granted.

                                        13

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                                                             EN-IG-ICO-SW-000870
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                                                             3 June 1999

[ICO LOGO]                                             ICO GLOBAL COMMUNICATIONS
                                                         1 QUEEN CAROLINE STREET
                                                                     HAMMERSMITH
                                                                   LONDON W6 9BN
                                                                  UNITED KINGDOM

                                                          TEL: +44 181 600 10000
                                                           FAX: +44 181 600 1199

                                                           I-CO SERVICES LIMITED
                                               REGISTERED IN ENGLAND: NO.3045294
                                         REGISTERED OFFICE: 1 QUEEN CAROLINE ST.
                                                                LONDON W6 9BN UK

                          ANNEX 7C NETWORK PARTITIONING

                             COMMERCIALLY SENSITIVE
                             REPRODUCTION PROHIBITED

CONFIDENTIALITY STATEMENT

ALL INFORMATION CONTAINED IN THIS DOCUMENT IS CONFIDENTIAL AND PROPRIETY TO ICO
GLOBAL COMMUNICATIONS OR ANY OTHER MEMBER OF THE ICO GLOBAL COMMUNICATIONS GROUP
AND INTENDED ONLY FOR THE ADDRESSEE TO WHOM THIS COPY IS ADDRESSED. THE
RECIPIENT SHALL NEITHER COPY, DISTRIBUTE, DISCLOSE OR USE THE INFORMATION
CONTAINED IN IT FOR ANY PURPOSE OTHER THAN FOR WHICH THIS DOCUMENT HAS BEEN MADE
AVAILABLE NOR PERMIT ANYONE ELSE TO DO THE SAME. THE RECIPIENT SHALL BE HELD
FULLY LIABLE FOR ANY WRONGFUL DISCLOSURE OR USE OF ANY OF THE INFORMATION
CONTAINED IN THIS DOCUMENT BY HIM, OR HIS OFFICERS OR EMPLOYEES OR ANYONE ELSE
TO WHOM HE MAKES THE INFORMATION AVAILABLE.

                 DOCUMENT NO.:              EN-IG-ICO-SW-000870

                 VERSION:                    1.0

                 DATE:                      3 June 1999

PREPARED                         AUTHORISED                   APPROVED

AUTHOR: P POSKETT/A FUJII        MANAGER:                     SENIOR MANAGER:

                                       1         Confidential and Proprietary to
                                                 ICO Global Communications
<PAGE>   2103
                                                             EN-IG-ICO-SW-000870
   [ICO LOGO]      Annex 7C Network Partitioning             Issue 1.0
                                                             3 June 1999

AMENDMENT RECORD

<TABLE>
<CAPTION>
REVISION           DATE          CN NO.        REASON FOR CHANGE
--------           ----          ------        -----------------
<S>                <C>           <C>           <C>
0.1                29/4/99                     First draft based on Annex 7B

0.2                30/4/99                     Second draft

0.3                11/05/99                    Revised by NEC

0.4                12/05/99                    ICO and NEC re-work

0.5                12 &                        ICO Modifications
                   13/05/99

0.5.1              14/05/99                    ICO glt modifications

0.5.2              14/5/99                     Further ICO Modifications

0.5.3              17/5/99                     More ICO comments

0.5.4              18/5/99                     NEC counter modification

0.6                19/5/99                     Final

0.7                3/6/99                      Work Plan Dates referenced to signing PSH C.O.

1.0                3/6/99                      Reflect agreements of NEC/ICO Meeting 3/6/99
</TABLE>

                                       2         Confidential and Proprietary to
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Revised 3/6/99
<PAGE>   2104
                                                             EN-IG-ICO-SW-000870
   [ICO LOGO]      Annex 7C Network Partitioning             Issue 1.0
                                                             3 June 1999

1        INTRODUCTION

1.1     This Annex sets out the implementation objectives, and work plan for
        Radio Network Partitioning and Ground Network Partitioning. The
        objective of Network Partitioning is to split the total ICO Network into
        two parts which can operate simultaneously, one part which will be used
        to carry user traffic, the other to carry test traffic.

1.2     Section 4 sets out the objectives of the Radio Network Partitioning and
        Ground Network Partitioning. The objectives should be achieved with a
        minimum of changes to equipment used in the Network, including IGF and
        UTs.

1.3     The Network Partitioning, which achieves the objectives set out in
        Section 4 below, will be implemented to support the Phased SAN Handover
        Schedule

2        WORKPLAN FOR NETWORK PARTITIONING

2.1     The Contractor shall develop and document the detailed Radio Network
        Partitioning design one month after signing C.O 17.

2.2     The Contractor shall provide the Work Plan for implementation of the
        Radio Network Partitioning two months after signing C.O. 17 which shall
        be consistent with the Phased SAN Handover Schedule.

2.3     The Radio Network Partitioning design shall be developed and factory
        tested by the Contractor ten months after signing C.O. 17

2.4     The Ground Network Partitioning shall be implemented and managed as set
        forth in SOW ANNEX 7B.

2.5     The DCN shall be managed as set forth in SOW ANNEX 7B.

3        DEFINITIONS

3.1     The Network comprises all of the SANs, NMC and BMC and their
        interconnection.

3.2     The Network comprises the Radio Network, the Ground Network and the DCN
        (as currently defined in the IGF).

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3.3     The Radio Network comprises: the subsystems used at the SANs to provide
        radio communications, that is the RFTs, IDS, CDS, SBS, TNM, HPN, SAN
        SRMS, and the SRMC at the NMCs.

3.4     The Ground Network (GN) comprises the Switching Systems (as defined in
        the IGF) and their interconnection and the A and ISUP interface
        connections with the TNM.

3.5     The Operational Network (ON) is defined as those parts of the Network
        that are in use for operational traffic. That is all other traffic than
        that used to test the network. The ON comprises the Radio Operational
        Network (RON) and the Ground Operational Network (GON).

3.6     The Test Network (TN) comprises the Radio Test Network (RTN) and the
        Ground Test Network (GTN).

3.7     ICO's use of the non-handed over MSSCs and HLRs comprises: transit
        traffic within the IGF and for MO calls to the PSTN and also for MT
        calls from the PSTN. See Figure 1 -ICO Traffic - Illustrative MO Calls
        and Figure 2 ICO Traffic - Illustrative MT Calls which illustrates the
        supported traffic. ICO's traffic will not use the TNM or SBS at the
        non-handed over SAN sites, that is ICO will not generate MO or MT test
        calls and will not register ICO test users on the MSSCs at the
        non-handed over SANs.

4       OBJECTIVES OF NETWORK PARTITIONING

The agreed Objectives for Network Partitioning of the ICO system into a Test
Network and Operational network are set out below.

NOTE: The primary objective is to allow concurrent operation of operational and
test networks in such a way that the traffic on the Operational Network has zero
or at least minimal degradation from the traffic and other activities on the
Test Network and vice versa.

ICO is willing to consider modifications to these objectives if they can be
shown to support the primary objectives and particularly if they can support:

        -       minimal or zero changes to UTs
        -       upgrade of SAN software and functionality SAN-by-SAN with
                minimum loss of service
        -       addition and removal of SANs to the Network with minimum loss of
                service.

4.1     The Network Partitioning shall provide for simultaneous operation of a
        Test Network (TN) with an Operational Network (ON).

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                                                             3 June 1999

4.2     The Radio Test Network (RTN) shall provide communications services
        between 'test' UT/SIMs and the GN via the RFT/SBS/TNMs of a configurable
        group of 'test' SANs. The Radio Operational Network (RON) shall provide
        communications services between 'operational' UT/SIMs and the GN via the
        RFT/SBS/TNMs of a separate and distinct configurable group of
        'operational' SANs.

4.3     The RTN and the RON shall share simultaneous access to all accessible
        operational satellites.

4.4     The RTN shall provide radio communications with Test UT/SIMs and shall
        prevent Operational UT/SIMs from attempting radio communications with
        the RTN. The RON shall provide radio communications with Operational
        UT/SIMs (as already defined in the IGFR) and shall prevent Test UT/SIMs
        from attempting radio communications with the RON. (Both Operational and
        Test UT/SIMs would be able to listen for and receive BCCH from either
        the RTN or the RON. The Cell Bar flag or different ICO MNC/MCC codes in
        the BCCH may need to be used for this purpose.

4.5     The Network Partitioning Design shall not require any changes to the Air
        Interface. The Network Partitioning design shall assume minimum
        differences between the mobile equipment used in the Test UT and the
        Operational UT. The SIM of the Test UT may have different data from the
        Operational UT.

4.6     The ON shall provide the Functional Sets as defined in Annex 1.

4.7     The RN shall generate separate sets of Common Control Channels for the
        RTN and RON, including their information contents. The RN shall generate
        BTFPs which support simultaneous operation of the RTN and the RON.

4.8     The RN shall generate satellite channelisation plans that define
        satellite resources corresponding to the combined RTN and RON BTFPs.

4.9     The RTN shall provide radio coverage of designated areas of the ground
        (RTN ground areas) via all satellites and RTN SANs which can provide
        coverage to those RTN ground areas. The RON shall provide radio coverage
        of designated areas of the ground (RON ground areas ) via all satellites
        and RON SANs which can provide coverage to those RON ground areas.

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                                                             3 June 1999

4.10    The CCCH BTFP for the RTN shall consist of one CCCH set (BCCH, RACH,
        PAGCH) in each beam providing coverage of RTN ground areas. The CCCH
        BTFP for the RON shall be as defined in the IGFR. The DCH BTFP for the
        combined RTN and RON shall be as defined in the IGFR with the following
        changes; the DCH BTFP shall provide an additional common configurable
        number of 25kHz frequency slots for every spot beam covering the RTN
        ground areas.

4.11    The RTN and RON coverage may overlap, i.e. ground areas shall be able to
        be designated as simultaneously part of the RTN and of the RON. In such
        overlap areas the IGF shall be able to provide multiple sets of
        resources (CCCH and DCH) in a spot beam; one set for SANs of the RON and
        one set for SANs of the RTN.

4.12    The GN shall provide a GTN and GON by creating logically distinct 'test'
        and 'operational' partitions. Each partition shall provide services as
        delivered by the IGF to the respective UT/SIMs. That is the Test UT/SIM
        shall access services in the GTN and operational UT/SIMs shall access
        services in GON.

4.13    For HPN, the Radio Network shall provide simultaneous coverage of a
        single combined TN and ON; the GN shall be configurable to provide
        escalation to either operational or test UTs on an individual subscriber
        basis consistent with the current IGF.

4.14    The GN shall provide the means to control, according to the definition
        of the type of user (either test or operational), access to the
        networks, teleservices, bearer services, supplementary services and ICO
        specific services.

4.15    The GN (both GTN and GON) shall be configurable to allow and separately
        control the routing of traffic to/from 'operational' UT/SIMs and to/from
        'test' UT/SIMs, including teleservices, bearer services, supplementary
        services and ICO specific services and their associated signalling
        traffic to:

                -       IGF terrestrial network elements

                -       IGF terrestrial routes, including but not limited to,
                        MSSC-to-TNM, MSSC-to-MSSC and MSC-to-ISC

4.16    The GN shall provide the means to create multiple logical networks
        (defined as services and user groups) that can operate on physically
        separate, and overlapping subsets, or the full GN.

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4.17    The Digital Communication Network (DCN) is required to reliably transmit
        network management communications between:

                -       the NMC/BMC and the network management systems at the
                        SAN sites

                -       the BOSS and the MSSCs, and other equipment that
                        provides billing information and requires provisioning
                        data. (Note the connection of the BOSS into the DCN will
                        be the subject of a separate ICO Change Request)

                -       the NMC/BMC and the BOSS for the exchange of fault
                        information.

4.18    The physical separation of operational traffic and test traffic on the
        DCN is unrealistic and therefore the DCN will be managed by the
        Contractor prior to AS-2. Post handover of AS-2 ICO will be responsible
        for operating the DCN. The Contractor and ICO agree to provide
        communication services over the DCN to a given set of service levels
        which will be based on the performance standards as defined in the IGFR.
        Both ICO and the Contractor agree that the traffic loads that will
        placed on the DCN are as planned in the definition of traffic loads as
        defined in WGD document WGA TN 70427 B1 A Study Report on DCN Traffic
        Models.

5.       IMPLEMENTATION

5.1      The Contractor shall implement the Network Partitioning in accordance
         with the Work Plan referred to in Section 2. above.

                                       7         Confidential and Proprietary to
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                                                             EN-IG-ICO-SW-000870
   [ICO LOGO]      Annex 7C Network Partitioning             Issue 1.0
                                                             3 June 1999

                [FIGURE 1- ICO TRAFFIC - ILLUSTRATIVE MO CALLS]

                              [ICO TRAFFIC CHART]

---------------------------------------------
Key

     Inter MSSC and A interface ISUP traffic

     A' interface traffic

     Inter TNM ISUP traffic
---------------------------------------------

                                       1         Confidential and Proprietary to
                                                 ICO Global Communications
<PAGE>   2110
                                                             EN-IG-ICO-SW-000870
   [ICO LOGO]      Annex 7C Network Partitioning             Issue 1.0
                                                             3 June 1999

                [FIGURE 2 - ICO TRAFFIC - ILLUSTRATIVE MT CALLS]

                              [ICO TRAFFIC CHART]

--------------------------------------------
Key

     Inter MSSC, A interface ISUP traffic, #7
     traffic including MAP

     A' interface traffic

     Inter TNM ISUP traffic
--------------------------------------------

                                       2         Confidential and Proprietary to
                                                 ICO Global Communications
<PAGE>   2111
[ICO LOGO]                           ICO GLOBAL COMMUNICATIONS
                                     1 QUEEN CAROLINE STREET
                                     HAMMERSMITH
                                     LONDON W6 9BN
                                     UNITED KINGDOM

                                     TEL: +44 181 600 1000
                                     FAX: +44 181 600 1199

                                     I-CO SERVICES LIMITED
                                     REGISTERED IN ENGLAND: NO.3045294
                                     REGISTERED OFFICE: 1 QUEEN CAROLINE ST.
                                     LONDON W6 9BN UK

                            ANNEX 8A - IGF TEST PLAN

                             COMMERCIALLY SENSITIVE
                             REPRODUCTION PROHIBITED

CONFIDENTIALITY STATEMENT

ALL INFORMATION CONTAINED IN THIS DOCUMENT IS CONFIDENTIAL AND PROPRIETY TO ICO
GLOBAL COMMUNICATIONS OR ANY OTHER MEMBER OF THE ICO GLOBAL COMMUNICATIONS GROUP
AND INTENDED ONLY FOR THE ADDRESSEE TO WHOM THIS COPY IS ADDRESSED. THE
RECIPIENT SHALL NEITHER COPY, DISTRIBUTE, DISCLOSE OR USE THE INFORMATION
CONTAINED IN IT FOR ANY PURPOSE OTHER THAN FOR WHICH THIS DOCUMENT HAS BEEN MADE
AVAILABLE NOR PERMIT ANYONE ELSE TO DO THE SAME. THE RECIPIENT SHALL BE HELD
FULLY LIABLE FOR ANY WRONGFUL DISCLOSURE OR USE OF ANY OF THE INFORMATION
CONTAINED IN THIS DOCUMENT BY HIM, OR HIS OFFICERS OR EMPLOYEES OR ANYONE ELSE
TO WHOM HE MAKES THE INFORMATION AVAILABLE.

                 DOCUMENT NO.:              EN-IG-ICO-SW/000009

                 VERSION:                   2.10

                 DATE:                      3 June, 1999

PREPARED                         ICO                           NEC

AUTHOR: TOSHIO MIZUNO,           TITLE:                        TITLE:
KEITH HUNGERFORD

                                 SIGNATURE:                    SIGNATURE:
<PAGE>   2112
AMENDMENT RECORD

<TABLE>
<CAPTION>
REVISION          DATE          CN NO.        REASON FOR CHANGE
<S>               <C>           <C>           <C>
1.0               14/2/97                     NEC Contract Issue

2.0               17/2/97                     To incorporate final NEC comments

2.1               18/2/97                     Further final NEC comments incorporated

2.2               18/2/97                     Further final NEC comments incorporated

2.3               26/2/97                     Minor editorial changes

2.4               11/5/99                     Changes to incorporate amendments related to Phased SAN
                                              Handover

 2.4. Draft 1     13/5/99                     Para 5.1.9, 5.1.10 deleted, 4.7 bullet added, 5.1.6 & 6.2.4
                                              & 5.4.5 change wording delete Table 1

2.4 Draft 2, 3    19/5/99                     ICO proposed changes

2.5               20/5/99                     After first round discussion ICO - NEC PO

2.6               25/05/99                    Additional ICO proposed changes

2.6.1             25/05/99                    Add 5.4.11 and amend 5.4.2

2.7               26/5/99                     Changes agreed ICO - NEC PO: 1.1, 1.5, 4.7, 5.3, 5.4, 5.5,
                                              6.2

2.8               27/5/99                     Changes to 5.4.2,

2.8.1             1/6/99                      Define test documents

2.8.2             2/6/99                      Amend definition of test documents

2.8.3             2/6/99                      Amend definition of test documents based on KH - RS
                                              discussion

2.9               3/6/99                      Further amend test documents definition

2.10              3/6/99                      Amend reference to Phase 2 to Phase 2-1 in section 1.7
</TABLE>

                                     Page i         Proprietary and Confidential
                                                    to ICO Global Communications
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                                TABLE OF CONTENTS

1.   INTRODUCTION                                                            1

2.   SCOPE                                                                   3

3.   TEST HIERARCHY AND OBJECTIVES                                           3

4.   FACTORY PRE-INTEGRATION TEST FACILITIES                                 4

5.   ICONET GROUND FACILITIES TEST PHASES                                    7

6.   ROLES & RESPONSIBILITIES                                               13

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1.            INTRODUCTION

1.1           This Annex describes the Test Plan for the IGF. The Master IGF
              Test Plan Document (WGB-700056) shall be further developed during
              the course of the Supply Agreement. The aim of testing is to
              verify the functionality and performance of the Equipment in
              accordance with the IGFR.

1.2           Test requirements are defined for individual IGF components,
              meaningful integrated configurations, and the overall IGF system,
              forming a hierarchy of test campaigns to achieve final
              satisfactory operation of the IGF system.

1.3           This Annex covers both in-factory and in field testing, and formal
              and informal test campaigns. The detailed test requirements,
              plans, acceptance criteria, scripts and VCRMs (Verification
              Cross-Reference Matrixes) for each section of the testing shall be
              developed during the course of the Supply Agreement.

1.4           The purpose of this Annex is to:

              -        define general test methodologies, and standards to be
                       followed in testing the Equipment

              -        provide the high level objectives and pre-requisites of
                       each set of tests

              -        act as a "master" document at the top of a test document
                       hierarchy, which shall be generated to cover the detailed
                       test requirements for each of the individual test
                       campaigns required

              -        provide a framework, tying together the individual
                       campaign test plans

1.5           The Contractor shall provide documentation for formal IGF testing
              for ICO's review and approval. The details of the documentation
              and the timing for supply of draft and final versions shall be as
              defined in Annex 6 - Documentation.

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1.6           The requirements of this section 1.6 shall apply to TRDs for Phase
              3 testing. The Test Requirements Documents (TRD) may at the
              Contractor's discretion be delivered as a separate document for
              each test campaign or combination of campaigns. Each TRD shall
              identify the applicable test campaign. Each TRD shall list the
              tests to be conducted. Each test shall have a unique test
              identifier, which can be used in the VCRM for tracing. For each
              test, the TRD shall provide the following:

              -        Unique identifier

              -        Test objective

              -        General test description - test target, initial
                       conditions, test scope or limitations (may be analysis or
                       inspection or demonstration if appropriate)

              -        Pass/Fail criteria

              -        Requirement(s) addressed (eg IGFR reference)

1.7           The VCRM (Verification Cross Reference Matrix) is to be used as a
              tool for tracing between tests and the IGFR, and thus to
              facilitate agreement between ICO and the Contractor on Test
              Requirements Documents for Phase 1, Phase 2-1 and Phase 3 tests.
              Once all the TRDs are agreed the use of the VCRM will end. The
              VCRM shall list for each IGFR the unique identifier(s) of the
              verification method(s) (including tests, analyses, inspections and
              demonstrations) which contribute to the evidence that the
              requirement is met. In order to further facilitate the agreement
              of the TRDs, the VCRM shall also show which IGFRs will be
              addressed in a future issue of the VCRM.

1.8           The VCRM may at the Contractor's discretion be delivered as an
              initial issue, followed by updated versions associated with each
              TRD as it is delivered. If this procedure is used, Draft and Final
              versions shall be provided at the same time as or before the
              corresponding Draft and Final TRDs. The initial issue and updated
              versions shall be complete with respect to IGFR coverage, the
              missing information being limited to the test identities which are
              to be defined in a future version.

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2.       SCOPE

2.1           This Annex describes both informal and formal testing of IGF
              Equipment.

2.2           The Contractor shall ensure that informal testing of IGF units and
              sub-systems shall be carried out by the manufacturer of the
              Equipment as part of its internal design verification and may be
              observed by ICO Staff.

2.3           Formal testing shall be carried out by the Contractor and shall be
              witnessed by ICO Staff.

2.4           Formal Testing shall be limited to Phase 1 Subsystem Testing,
              Phase 2-1 Installation Testing and Phase 3 IGF System Testing for
              each Acceptance Set (including testing for integration with
              previously handed over Equipment).

2.5           This Annex does not include conformance, verification or
              integration testing of other elements of the ICO system not
              procured by the Contractor such as UTs, Satellites, SCC, PCS,
              PLMN, ADC, Administration Systems and Inter SAN/NMC links.

3.            TEST HIERARCHY AND OBJECTIVES

3.1           Test requirements shall be defined for individual units and
              subsystems of Equipment as well as the overall IGF system.

3.2           The IGF Unit and Sub-system Testing shall cover testing as
              specified in the Master IGF Test Plan Document, to verify and/or
              validate that all requirements of the IGFR have been met.

3.3           All tests shall be uniquely identified and traceable from the IGFR
              via VCRMs.

3.4           All tests shall have clear, comprehensive and unambiguous
              pass/fail criteria that may be demonstrated during testing.

3.5           All tests shall have clear, comprehensive and unambiguous test
              conditions, so that test results may be obtained in a controlled
              and repeatable way.

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4.            FACTORY PRE-INTEGRATION TEST FACILITIES

4.1           These informal tests combine subsystems incrementally to provide
              confidence of operation of completed SANs and NMC, prior to
              delivery of Equipment to Site.

4.2           The Contractor shall provide Factory Pre-Integration Test
              Facilities for use in the integration and development testing.
              Testing carried out on the test facilities shall be informal. The
              Factory Pre-Integration Test Facility shall be implemented in 3
              stages:

              -        Stage 1 Intra SAN Simulation

              -        Stage 2 Inter SAN Simulation

              -        Stage 3 Inter SAN Network Simulation

4.3           Special Test Equipment (STE) as set out in Annex 2 Section 4.2
              shall be supplied by ICO for use by the Contractor as required.

4.4            Stage 1 - Intra SAN Simulation

4.4.1         The Stage 1 Test Facility shall be located in Australia and shall
              be used for IGF pre-integration testing of but not be limited to:

              -        TNM/MSSC all protocol validation including Teleservices,
                       Bearer Service, and Supplementary GSM Services protocol

              -        Some agreed ICO Specific Services

              -        Operation and Maintenance Functions

              -        Call Connectivity

              -        Terrestrial Network Manager Functions and

              -        Vocoder

              to ensure that those subsystems relevant to services/functions
              above interwork with each other. Major subsystems to be tested are
              TNM and MSSC and related peripheral.

4.4.2         ETL shall deliver a combined MSSC/VLR/HLR to the Australian Test
              Facility as detailed in Annex 4.

4.4.3         NEC/A shall deliver the TNM and the TNM-OAM to the Australian Test
              Facility as detailed in Annex 4.

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4.4.4         The test facility at Australia shall be used to integrate the
              following subsystems: -

              -        MSSC

              -        Terrestrial Network Manager (TNM)

              -        Home Location Register (HLR)

              -        GSM Tester

4.4.5         ICO shall deliver a GSM tester which shall be capable of being
              used for simulating the GSM Base Stations and UTs, to the
              Australian Test Facility as detailed in Annex 4.

4.5           Stage 2 - Inter SAN (with Channel Manager) Simulation

4.5.1         The Stage 2 Facility shall incorporate Test Facilities located in
              the USA and Australia, and shall be used for IGF pre-integration
              testing between the Australian and USA Test Facilities for
              development testing of:

              -        Inter-working between two MSSCs, as per Stage 1 but with
                       two physically separated MSSCs.

              -        MSSC and SBS interfaces with the TNM

              -        MSSC and High Penetration Notification Controller
                       (HPN-Controller) interfacing

              -        Terrestrial Network Management Functions

              Major subsystems to be tested in this stage are interworking among
              SBS, TNM and MSSC.

4.5.2         The Stage 1 Test Facility equipment shall be used during Stage 2
              testing. The following additional equipment shall be supplied as
              defined in Annex 4 for Stage 2 testing.

4.5.3         ETL shall deliver a combined MSSC/VLR/HLR to the USA Test Facility
              as detailed in Annex 4.

4.5.4         ETL shall deliver an HPN-Controller to the USA Test Facility as
              detailed in Annex 4.

4.5.5         NEC/A shall deliver TNM to the USA Test Facility as detailed in
              Annex 4.

4.5.6         HNS shall deliver an SBS, including Channel units, to the USA Test
              Facility as detailed in Annex 4.

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4.5.7         HNS shall deliver an SBS, including Channel Units, to the
              Australian Test Facility as detailed in Annex 4.

4.5.8         ICO shall deliver a GSM tester which shall be capable of being
              used for simulating the GSM Base Stations and UTs to the USA Test
              Facility as detailed in Annex 4.

4.6           Stage 3 - Inter SAN Network Simulation

4.6.1         The Stage 3 Facility shall incorporate a Test Facility, located in
              Japan, and shall be used for IGF pre-integration testing between
              the Australian, USA and NEC Yokohama Test facilities for
              development testing of:

              -        DCN

              -        Functional Tests on TNM

              -        Interface Test on, - NMC/SRMC and SAN

              -        Operation and Maintenance Interfaces between MSSC/OSS and
                       NMC

              At this stage, interworking among all subsystems in the IGF is to
              be tested.

4.6.2         The Stage 2 Test Facility equipment shall be used during Stage 3
              testing.

4.6.3         The following additional equipment shall be supplied as per Annex
              4 for Stage 3 testing.

4.6.4         ETL shall deliver HPN-Controller to the Australian Test Facility
              as detailed in Annex 4.

4.6.5         NEC shall deliver NMC and IF Equipment to the NEC Yokohama
              facility as detailed in Annex 4, and use the SAN-OSS, to carry out
              pre-integration testing with the NMC in Japan.

4.6.6         The NMC shall be operating with basic functionality for the
              interface testing and shall include the Satellite Resource
              Management Centre (SRMC) and Local SRMS involved in SBS.

4.6.7         The NMC shall also be capable of control and monitor of basic
              alarm and status of all types of network elements.

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5.            ICONET GROUND FACILITIES TEST PHASES

5.1           Phase 1, Unit and Subsystem Testing

5.1.1         These are performed on named subsystems, concentrating primarily
              on the "first-off" on-Site Equipment, with a reduced set of tests
              on subsequent on-Site Equipment.

5.1.2         Phase 1 Testing shall be performed in-factory and consist of Unit
              and Subsystem testing for Equipment manufactured by the Contractor
              and shall not include third party vendors' proprietary Equipment
              such as PCs or work stations.

5.1.3         Units shall be defined as separable pieces of Hardware or Software
              on which requirement testing may be performed. Unit testing shall
              be carried out by the Equipment manufacturer in accordance with
              the manufacturers internal testing standards. Unit testing shall
              be informal.

5.1.4         Subsystems, for the purpose of this Annex, shall be defined as
              multiple interconnected units common to a manufacturer which form
              a separate testable subsystem. The Phase 1 Subsystem testing which
              shall be performed by the Equipment manufacturer is formal
              testing. The "first-off" of every single subsystem shall be tested
              by the Contractor and witnessed by ICO.

5.1.5         Approval of the "first off" subsystem test results, in accordance
              with the agreed criteria, shall be required before the subsystem
              leaves the factory for on-Site installation.

5.1.6         Subsystem tests shall concentrate on the following:

              -        testing of the applicable functional and performance
                       requirements of individual subsystems

              -        validation of significant or "system-level" internals
                       that have not been explicitly or adequately covered in
                       unit testing

              -        correct operation of the subsystem component interfaces
                       to the appropriate Interface specifications

              -        correct operation of man-machine interfaces, to the
                       appropriate specifications

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5.2           Phase 2-1 Installation Testing

5.2.1         The Contractor shall ensure that Phase 2-1 Installation Testing
              shall be performed in-field on the Equipment upon completion of
              the Equipment installation. The first installation of every single
              subsystem of the IGF shall be on-Site tested by the Contractor and
              witnessed by ICO.

5.2.2         Installation testing shall be performed in-field as a form of
              "build checkout". The Phase 2-1 "build checkout" shall ensure that
              all Site dependent configurations are correct, and that all
              interfaces for other sub-systems are operating correctly in a
              'Stand Alone' mode including signalling, traffic and management
              paths.

5.2.3         Installation tests shall assess that Equipment has not been
              damaged in transit, that all components are properly configured
              and connected, local communications links are satisfactorily
              in-service, and that local Site factors do not affect operation
              (e.g. power supplies, local radiation sources, temperature and
              humidity).

5.2.4         All on-Site installation and calibration (and commissioning as
              appropriate for the RFT TT&C) procedures shall have been completed
              prior to this phase of formal "build checkout" testing.

5.2.5         These tests shall be formal, and shall be completed before
              delivered Equipment is released for further phases of testing or
              use.

5.2.6         These tests shall be conducted at each SAN and NMC, with the same
              degree of completeness, specifically paying attention to Site
              specific requirements.

5.3           PHASE 2-2 ON-SITE INTEGRATION TESTING

5.3.1         Phase 2-2 on-Site integration testing shall be performed in-field
              upon completion of the Phase 2-1 Installation Testing and shall
              expand on the Phase 2-1 sub system "build checkout".

5.3.2         The Phase 2-2 on-Site integration testing shall be informal.

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5.3.3         The purpose of Phase 2-2 on-Site integration testing shall be to
              ensure the IGF subsystems are correctly integrated, before Phase 3
              system testing begins. It shall be performed by a test team made
              up of representatives from each Equipment manufacturer.

5.3.4         Components shall be integrated in an incremental fashion, with
              each configuration involving meaningful combinations of
              functionality. The final configuration is a completely integrated
              SAN and NMC.

5.3.5         Tests shall concentrate on a subset of the overall IGF functional
              and performance requirements for each of the configurations, and
              on interworking of the Equipment as each is integrated.

5.3.6         Phase 2-2 Testing shall include those Phase 2-1 aspects that can
              only be fully tested when integrated with Equipment.

5.3.7         The Phase 2-2 Testing shall include informal 'Dry Run' testing
              prior to the formal Phase 3 witness testing. Phase 2-2 testing
              shall if necessary be followed by a Software Rebuild/Reload and a
              'Re-Test', with the updated versions of de-bugged software.

5.3.8         The Air Interface shall be further validated with the use of a UT
              Simulator.

5.3.9         These tests are performed on all Sites, concentrating primarily on
              the "first-off" SAN and NMC, with a reduced set of tests on
              subsequent Sites.

5.3.10        Phase 2-2 shall verify the connectivity of all the switch network
              components in the IGF. This includes both traffic and signalling
              routes to switch nodes co-located at the SAN as well as to nodes
              remote from the SAN e.g. HLR. It requires that ICO supplied SAN to
              SAN E1 links be in place.

5.3.11        Inter SAN testing shall take place between two or three available
              SANs. It may utilise SANs 03, 02 & 07 (Australia, India and
              Indonesia) or suitable agreed alternatives. These SANs have been
              selected to minimise the spread of time zone differences with the
              Australian SAN. Inter SAN Tests shall encompass the range of tests
              specific to more than one SAN.

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5.3.12        SAN to SAN Handover shall be tested utilising the NECA test beds
              where it shall be possible to configure two notional SANs at the
              one site.

5.4           PHASE 3  IGF SYSTEM TESTING

5.4.1         Phase 3 IGF System Testing shall be performed in-field by the
              system test team upon completion of the Phase 2-2 On-Site
              Integration testing.

5.4.2         Phase 3 tests shall be performed so as to address the Function
              Sets defined in Annex 1, as follows:

              -        Phase 3-1: Testing of the services, functions,
                       performance and capacity of Function Set 1 on a single
                       SAN.

              -        Phase 3-2: Incremental testing of the services,
                       functions, performance and capacity of Function Set 2 on
                       two SANs and one NMC (the BMC).

              -        Phase 3-3: Incremental testing of the services,
                       functions, performance and capacity of Function Set 3 on
                       three SANs. In addition, these tests shall include
                       incremental NMC and SAN-NMC interworking tests as
                       required for FS-3.

              -        Phase 3-4: Incremental testing of the services,
                       functions, performance and capacity of Function Set 4 on
                       five SANs and one NMC (the NMC). In addition, these tests
                       shall include incremental NMC-BMC interworking tests as
                       required for FS-4.

              -        Phase 3-5: Incremental testing of the services,
                       functions, performance and capacity of Function Set 5 on
                       one SAN and on an environment representative of multiple
                       SANs and NMCs as required for specific functions. This
                       testing shall provide tests for services and functions
                       not tested in earlier Acceptance Sets, and for services
                       and functions whose tests did not pass earlier tests.
                       Regression testing shall address a sample of services and
                       functions previously tested and passed, but which are
                       supported by Equipment (hardware and software combined)
                       which has been modified for the final delivered
                       configuration.

5.4.3         The IGF System testing shall be performed with the use of
              simulator equipment for the UT and Satellite.

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5.4.4         The system integration testing shall ensure that the Equipment
              supplied is operating according to the specified requirements and
              shall be formal.

5.4.5         The Phase 3 testing shall include the requirements described in
              this section. The order and structure of the tests shall be in
              accordance with section 5.4.2, not the order and structure of this
              section.

5.4.5.1       The Phase 3 testing, in conjunction with Phase 1 and Phase 2-1
              testing, shall fully test all the specified functionality in the
              IGFR for the number of SANs and NMCs appropriate to each function.

5.4.5.2       One SAN testing shall be extensive and shall encompass the range
              of tests that can be performed on one SAN. This shall include IGF
              call processing, configuration, control, monitoring, capacity and
              performance related tests.

5.4.5.3       One NMC testing shall be extensive and shall encompass

              a)       testing of the network management functions and SRMC
                       functions specified in the IGFR but not covered in
                       Phases 1&2 tests, and

              b)       interconnection testing with a complete SAN in
                       stand-alone mode.

5.4.5.4       Two SAN testing shall be incremental and shall encompass the range
              of tests specific to two SANs. This shall include call handover
              between SANs and UT movement related tests such as re-registration
              and call delivery to remote SANs. IGF configuration, control,
              monitoring and performance related tests specific to two SAN
              operation shall also be tested.

5.4.5.5       Three SAN testing shall be incremental and shall encompass the
              range of tests specific to three SANs. This shall include testing
              of intermediate SAN operation in call handover between SANs via an
              intermediate SAN and UT movement related tests such as
              re-registration and call delivery to remote SANs via intermediate
              SANs. IGF configuration, control, monitoring and performance
              related tests specific to three SAN and NMC operation shall also
              be tested.

5.4.5.6       Five SAN and NMC testing shall be incremental and shall encompass
              the range of tests specific to 5 SANs and the NMC. This shall
              include testing of network configuration, functions and
              performance, as specified, and NMC operation. NMC-BMC test shall
              be also conducted.

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5.4.6         IGFR testing will be concentrated at SAN 3 to verify the operation
              of each FS. InterSAN tests will be performed using the Australian,
              Indonesia and India SANs, or at suitable agreed alternatives. At
              all other SANs a limited number of call traces and O&M functions
              will be used to demonstrate that the site hardware and software
              are operational and are configured correctly. Networking tests
              will be performed on SANs being handed over at AS-2, 3 and 4 to
              verify that SAN sites can operate as a network.

5.4.7         Prior to commencing a Phase 3 test, the Contractor shall hold a
              Test Readiness Review at which the following will be presented to
              ICO:

              -        a list of the tests performed during the dry run for that
                       test, with the result of each one,

              -        a list of the problem reports currently outstanding,

              -        analysis of the above problems showing that the
                       applicable Acceptance Set criteria are met;

              -        Completed test documentation (VCRM, TRD, TPD, TSD)
                       updated or marked up to resolve any issues which arose
                       during the dry run;

              -        Final Phase 2-1 test report for all Equipment involved in
                       the Phase 3 test.

5.5           INTEGRATION EFFORTS

5.5.1         After each stage of Phase 3 testing, there are integration efforts
              designed to integrate the Function Sets with the hardware already
              delivered to ICO. These integration efforts at AS-2, AS-3 and AS-4
              are defined as follows:

              -        IE2: 3 SAN AND BMC INTEGRATION: The integration of the
                       two SANs and BMC provided at AS-2 with the first SAN
                       already handed over to ICO.

              -        IE3: 6 SAN AND BMC INTEGRATION: The integration of the
                       three additional SANs provided at AS-3 with the 3 SANs
                       and the BMC already handed over to ICO.

              -        IE4: 11 SAN, NMC, AND BMC INTEGRATION: The integration of
                       5 additional SANs and the NMC provided at AS-4 with the
                       previous 6 SANs and the BMC already handed over to ICO.

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5.5.2         Before each integration effort can begin the Contractor shall
              demonstrate that the added Equipment meets the applicable
              acceptance criteria defined in Annex 10.

5.5.3         Each integration effort shall consist of regression tests (that
              is, tests which have already been passed on the added Equipment as
              part of the entry criteria). The regression testing for the new AS
              shall include interworking of functions and services within the
              hardware of the previous Equipment, and between hardware of the
              previous and added Equipment. The extent of such regression
              testing will be determined by the following principles:

              -        the regression testing shall not extend the requirements
                       on the AS;

              -        the regression testing shall be sufficiently extensive to
                       exercise all hardware in the previous AS which has had
                       little or no exercise in the previous AS;

              -        the regression testing shall validate a significant
                       sample, but not a majority, of the new services and
                       functions added by the AS.

              ICO shall have the right to selectively reduce the regression
              testing previously agreed, by deleting individual tests at its
              sole discretion. Other changes to the plan may be made by mutual
              agreement.

6.            ROLES & RESPONSIBILITIES

6.1.          Test Planning and Execution

6.1.1          Performance of IGF units and sub-system testing, including
               planning, documenting, co-ordinating, execution and problem
               identification/isolation and, within the IGF, problem solving
               shall be the sole responsibility of the Contractor.

6.1.2          The Contractor shall provide and maintain a problem tracking
               database in which all problems shall be entered. The database
               shall provide for problem ID code, status, responsible person,
               classification, planned correction date, temporary fix ID, and
               action plan reference or summary. The database shall provide
               facilities for problems to be sorted and presented or printed in
               a variety of formats and orders, to facilitate management and
               reporting on the problems.

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6.1.3         Following completion of each Phase of testing for any part of the
              IGF, the Contractor shall provide weekly reports relating to that
              part, providing a summary of the current problem statistics,
              expected clearance date for all problems, and a full listing of
              the database contents. Such reports shall continue until all of
              the problems have been corrected.

6.2           Communications Links

6.2.1.        The Contractor shall be responsible for all the communications
              links charges during the Pre-Integration testing at the NECA, HNS
              and NECJ test facilities.

6.2.2.        The Contractor shall invoice ICO and ICO shall re-imburse all such
              communications charges on an actual cost basis.

6.2.3         ICO shall provide and maintain all necessary communications links
              between ICO Sites for Equipment on-Site testing.

6.2.4         The capacity, routing and availability dates of the E1 links are
              as specified in SOW Annex 2.

6.3.          Test Equipment

6.3.1         Aside from the test equipment provided by ICO as given in Annex 2,
              all test equipment required for Phase 1 to Phase 3 shall be
              provided by the Contractor.

6.3.2         The Special Test Equipment, being provided by ICO, for Phase 1 to
              Phase 3 are shown in Annex 2.

6.3.3         The Contractor shall develop a comprehensive requirements document
              for each of UT Load Simulator and Satellite Channel Simulator and
              shall submit them to ICO for its approval within 3 months after
              the execution of the Supply Agreement.

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                                                       ICO GLOBAL COMMUNICATIONS
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                                                                LONDON W6 9BN UK

                          ANNEX 8B - DEMONSTRATION PLAN

                             COMMERCIALLY SENSITIVE
                             REPRODUCTION PROHIBITED

CONFIDENTIALITY STATEMENT
ALL INFORMATION CONTAINED IN THIS DOCUMENT IS CONFIDENTIAL AND PROPRIETY TO ICO
GLOBAL COMMUNICATIONS OR ANY OTHER MEMBER OF THE ICO GLOBAL COMMUNICATIONS GROUP
AND INTENDED ONLY FOR THE ADDRESSEE TO WHOM THIS COPY IS ADDRESSED. THE
RECIPIENT SHALL NEITHER COPY, DISTRIBUTE, DISCLOSE OR USE THE INFORMATION
CONTAINED IN IT FOR ANY PURPOSE OTHER THAN FOR WHICH THIS DOCUMENT HAS BEEN MADE
AVAILABLE NOR PERMIT ANYONE ELSE TO DO THE SAME. THE RECIPIENT SHALL BE HELD
FULLY LIABLE FOR ANY WRONGFUL DISCLOSURE OR USE OF ANY OF THE INFORMATION
CONTAINED IN THIS DOCUMENT BY HIM, OR HIS OFFICERS OR EMPLOYEES OR ANYONE ELSE
TO WHOM HE MAKES THE INFORMATION AVAILABLE.

                 DOCUMENT NO.:          EN-IG-ICO-SW/000010
                 ----------------------------------------------
                 VERSION:               2.6
                 ----------------------------------------------
                 DATE:                  27 May 1999
                 ----------------------------------------------

       PREPARED               ICO                   NEC
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AMENDMENT RECORD

<TABLE>
<CAPTION>
REVISION      DATE        CN NO.    REASON FOR CHANGE
---------------------------------------------------------------------------
<S>           <C>         <C>       <C>
1.0           14/2/97               NEC Contract Issue
2.0           17/2/97               Final Issue
2.1           18/2/97               Incorporate minor comments to para's,1.1, 1.2 and 5.1.2
2.2           25/2/97               Delete para 5.3 to correct erroneous description
2.3           26/2/97               Minor editorial changes
2.4           24/3/99               Updated to accommodate plan for Phased SAN Handover
2.5           26/5/99               ICO response to version 2.4, new para 3.5 specifying
                                    demonstrations before AS1,2,3,4,5.
2.6           27/5/99               Updated after NEC/ICO review 27 May 1999. Paras 3.2 and 3.5
                                    revised. New para 4.3
</TABLE>

                                                Confidential and Proprietary to
Created: 14/2/97                                      ICO Global Communications
Modified: 27/5/99
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                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
<S>    <C>                                                                             <C>
1.     INTRODUCTION                                                                    2

2.     SCOPE                                                                           2

3.     END-TO-END CALL DEMONSTRATIONS                                                  3

4.     SAN SITE                                                                        3

5.     PRE-REQUISITES FOR END-TO-END CALL DEMONSTRATION                                4

6.     EQUIPMENT FOR END-TO-END CALL DEMONSTRATION                                     5
</TABLE>

                                       1        Confidential and Proprietary to
Created: 14/2/97                                      ICO Global Communications
Modified: 27/5/99
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1.     INTRODUCTION

1.1    The Contractor shall perform End-to-End Call Demonstrations of the IGF in
       accordance with the End-to-End Call Demonstration Plan (the
       "Demonstrations") as described in this Annex. The Demonstrations shall
       demonstrate the functionality of the Equipment together with the other
       elements of the ICO system; e.g. satellite(s), User Terminals (UT), and
       the actual connections to the public switched networks.

1.2    The scope and procedures of the Demonstrations shall be developed within
       7 months prior to the Demonstrations.

1.3    This Annex provides a high-level description of the Demonstrations.

2.     SCOPE

2.1    Each Demonstration shall be performed at a selected SAN Site Different
       SAN sites may be used for different demonstrations.

2.2    The Demonstrations shall be performed during the period specified on the
       Master Level Schedule.

2.3    Demonstration procedures shall be prepared by the Contractor and
       submitted to ICO for approval prior to the commencement of the
       Demonstrations.

2.4    The Demonstrations shall be conducted by the Contractor and be witnessed
       by ICO.

2.5    ICO's co-operation shall be a mandatory requirement for preparation of
       the SAN Site and performing the Demonstrations. Specifically, all
       external components, being supplied by ICO and integrated into the
       ICONET, shall either already be satisfactorily in-service, or shall have
       undergone prior acceptance testing as a part of their individual supply
       agreements.

2.6    There shall be no PASS/FAIL criteria for the Demonstrations.

2.7    The Contractor , with ICO's assistance, shall be responsible for
       isolation of any problems identified during the Demonstrations.

2.8    The Demonstrations shall not be part of the Integration and Testing of
       the IGF, nor acceptance of the IGF nor acceptance of part of the IGF.

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3.     END-TO-END CALL DEMONSTRATIONS

3.1    The Contractor , with ICO assistance, shall demonstrate the establishment
       of end-to-end connections, transmission and reception of voice/fax/data
       traffic under specific conditions, and connection cleardowns.

3.2    The demonstrations (Demonstration A to Demonstration F) listed below
       shall take place as early as possible, but no later than the dates shown
       in the Schedule at Annex 4 to the Statement of Work:

       A. Demonstration A  Voice, mobile terminated and mobile originated calls.

       B. Demonstration B  In Band fax 2.4 kbps and In Band data 2.4 kbps.

       C. Demonstration C  Voice with diversity.

       D. Demonstration D  GSM data at 2.4 kbps

       E. Demonstration E  GSM data at 9.6/2.4 kbps

       F. Demonstration F  GSM fax at 4.8 kbps and GSM data at 4.8 kbps.

3.3    The Demonstrations shall show connections between an ICO UT and

       - a PSTN/ISDN terminal
       - a PLMN mobile station
       - another ICO UT (registered
         at the same MSSC/VLR).

3.4    Depending upon the availability of a second satellite, call diversity and
       satellite-to-satellite handover shall be demonstrated.

3.5    Demonstrations may be combined at the Contractors option. Notice of any
       such combining of demonstrations shall be provided by the Contractor to
       ICO [1 month] in advance of the due date of the demonstration.

4.     SAN SITE

4.1    The selection of the SAN Site, to be used for the Demonstrations shall be
       mutually agreed by the Contractor and ICO during the course of the Supply
       Agreement.

4.2    The selection of the SAN Site shall be based upon availability and the
       fulfilment of the pre-requisites as outlined in Section 5.

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4.3    If the selected SAN site has already been handed over to ICO, ICO will
       provide the necessary access and support for the purposes of the
       demonstration.

5.     PRE-REQUISITES FOR END-TO-END CALL DEMONSTRATION

5.1    The following basic pre-requisites shall be complied with by ICO, in
       order for the Demonstrations to be performed -:

5.1.1  ICO shall provide the interconnection between the selected SAN and
       exchange gateway or International Switching Centre (ISC) which shall
       include-:

       -      making any necessary agreements with the gateway or ISC operator
              for interconnection

       -      ordering, installing, and activating communication lines between
              the MSSC of the selected SAN and the exchange gateway or ISC

       -      defining B number (routing) exchange data in all telecommunication
              nodes between the A subscriber of a local exchange and the MSSC of
              the selected SAN to ensure correct routing of calls

5.1.2  To facilitate the testing of an ICO Mobile subscriber to a fixed PLMN
       operator, ICO shall arrange for the configuration of a Terrestrial Mobile
       Switching Center (MSC) and, as appropriate, a Gateway Mobile Switching
       Center, (GMSC), of the appropriate terrestrial PLMN, and any other
       intermediary network nodes between the PLMN and MSSC at the selected SAN
       with the appropriate exchange data to ensure the correct routing of calls
       to include:

       -      Means of signalling communication shall exist between the selected
              SAN and ICO's service provisioning databases (e.g., HLR, EIR,
              AuC), where necessary.

       -      Appropriate service profile parameters and identification for at
              least two ICO subscriber accounts and at least two ICO UT's shall
              be available in the service provisioning databases.

       -      A satellite shall be available for use during the Demonstrations.
              Integration testing of the satellite by ICO shall have progressed
              to at least to such a degree that makes the satellite useful for
              the Demonstrations. If a second satellite is available and if its
              integration testing progress is such that it can be

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              used, then it shall be used for demonstrations where two
              satellites are required.

       -      Satellite resource management data for the orbiting satellites
              shall be generated and downloaded into the selected SAN's, SAN
              OSS, and the SBS's LSRMS.

5.2    The following list outlines the basic pre-requisites that shall be met,
       by the Contractor, for the Demonstrations to be performed -:

       -      The Contractor shall have completed the Phase 2-1 and 2-2 Testing
              at the selected SAN Site.

6.     EQUIPMENT FOR END-TO-END CALL DEMONSTRATION

6.1    The equipment to be provided by ICO for the Demonstrations is described
       in Section 4 of Annex 2.

                                       5        Confidential and Proprietary to
Created: 14/2/97                                      ICO Global Communications
Modified: 27/5/99
<PAGE>   2135
                                                       ICO GLOBAL COMMUNICATIONS
                                                         1 QUEEN CAROLINE STREET
                                                                     HAMMERSMITH
                                                                   LONDON W6 9BN
                                                                  UNITED KINGDOM
[ICO LOGO]
                                                           TEL: +44 181 600 1000
                                                           FAX: +44 181 600 1199

                                                           I-CO SERVICES LIMITED
                                               REGISTERED IN ENGLAND: NO.3045294
                                         REGISTERED OFFICE: 1 QUEEN CAROLINE ST.
                                                                LONDON W6 9BN UK

             ANNEX 10 - ICONET GROUND FACILITIES ACCEPTANCE CRITERIA

                             COMMERCIALLY SENSITIVE
                             REPRODUCTION PROHIBITED

CONFIDENTIALITY STATEMENT
ALL INFORMATION CONTAINED IN THIS DOCUMENT IS CONFIDENTIAL AND PROPRIETY TO ICO
GLOBAL COMMUNICATIONS OR ANY OTHER MEMBER OF THE ICO GLOBAL COMMUNICATIONS GROUP
AND INTENDED ONLY FOR THE ADDRESSEE TO WHOM THIS COPY IS ADDRESSED. THE
RECIPIENT SHALL NEITHER COPY, DISTRIBUTE, DISCLOSE OR USE THE INFORMATION
CONTAINED IN IT FOR ANY PURPOSE OTHER THAN FOR WHICH THIS DOCUMENT HAS BEEN MADE
AVAILABLE NOR PERMIT ANYONE ELSE TO DO THE SAME. THE RECIPIENT SHALL BE HELD
FULLY LIABLE FOR ANY WRONGFUL DISCLOSURE OR USE OF ANY OF THE INFORMATION
CONTAINED IN THIS DOCUMENT BY HIM, OR HIS OFFICERS OR EMPLOYEES OR ANYONE ELSE
TO WHOM HE MAKES THE INFORMATION AVAILABLE.

                 DOCUMENT NO.:         EN-IG-ICO-SW/000012
                 ----------------------------------------------
                 VERSION:              Issue: 2.10
                 ----------------------------------------------
                 DATE:                 27 May 1999
                 ----------------------------------------------

      PREPARED                  ICO                  NEC
      --------------------------------------------------------------------
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      --------------------------------------------------------------------
      Keith Hungerford          SIGNATURE:           SIGNATURE:
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------------------------- -----------------------------------------------------

AMENDMENT RECORD

<TABLE>
<CAPTION>
REVIEW        DATE       CN NO.     REASON FOR CHANGE
-----------------------------------------------------------------------------------------
<S>          <C>         <C>       <C>
1.0          14/2/97               NEC Contract Issue
2.0          17/2/97               Final Issue
2.1          18/2/97               Removal of brackets around Note 1 para's 5.2 and 6.2.1
2.2          26/2/97               Minor editorial changes
2.3          24/3/99               Draft proposed by NEC for Phased Handover
2.4           6/4/99               Counter-proposal by ICO for Phased Handover
2.5           9/4/99               ICO proposal further developed
2.6          15/4/99               Following discussion KH & IMarks
2.7          30/4/99               Following further discussion KH & IMarks
2.8          20/5/99               Further ICO inputs
2.8.1        25/5/99               Amend 2.4.2, adjust paragraph numbers
2.9          26/5/99               Changes agreed ICO - NEC PO: 1.1, 2.1.2, 2.5.4, 4
2.10         27/5/99               Changes agreed ICO - NECA: 2.1.2, 2.2.2, 2.3.2
</TABLE>

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                                TABLE OF CONTENTS

1.     GENERAL                                                                1

2.     ACCEPTANCE CRITERIA                                                    1

     2.1    GENERAL                                                           1

     2.2    ACCEPTANCE SETS 1 TO 3                                            3

     2.3    ACCEPTANCE SET 4                                                  5

     2.4    ACCEPTANCE SET 5                                                  7

     2.5    INDEPENDENT SAN ACCEPTANCE                                        8

3.     FAULT CLEARANCE                                                        8

     3.1.   REPRODUCIBLE FAULT CLEARANCE                                      9

     3.2.   NON-REPRODUCIBLE FAULT CLEARANCE                                  9

4.     FAULT AND TEMPORARY FIX TRACKING AND REPORTING                        10

5.     DEFERRED FUNCTIONALITY ACCEPTANCE CRITERIA                            10

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1.     GENERAL

1.1     This Annex sets out the Acceptance Criteria for the IGF. The Acceptance
        Criteria are organised as a) a progression of acceptance criteria for
        the whole IGF with the exception of one SAN (China); and b) acceptance
        criteria for one SAN separate from and in addition to the other SANs
        (eg China SAN and any additional SANs).

1.2     For progressive handover, there are 5 Levels of Acceptance, which are
        identified as Acceptance Sets. For each Acceptance Set, there is an
        applicable set of IGF hardware, defined by site and equipment type, and
        an applicable set of Services and Functions (Function Sets). The
        definitions of the Hardware Sets and Function Sets are in Annex 1 of
        the SOW - Contractors Deliverables.

1.3.    The Acceptance Sets are as shown in Table 1.

             Table 1- Acceptance Set, IGF Hardware and Function Sets

<TABLE>
<CAPTION>
      Acceptance Set            IGF Hardware Set            Function Set
     --------------------------------------------------------------------
<S>                             <C>                         <C>
          AS-1                        HS-1                      FS-1
          AS-2                        HS-2                      FS-2
          AS-3                        HS-3                      FS-3
          AS-4                        HS-4                      FS-4
          AS-5                        None                      FS-5
</TABLE>

1.4.    Any SAN not included in the initial set of 11 SANs shall be accepted in
        accordance with criteria defined for Independent SAN Acceptance.

2.      ACCEPTANCE CRITERIA

2.1     GENERAL

2.1.1.  This section defines the acceptance criteria for the phased handover of
        the IGF. The overall acceptance criteria are broken down into a series
        of Acceptance Sets, namely Acceptance Set 1 to 5 inclusive.

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2.1.2.   The criteria for each Acceptance Set shall be applied to the following
         events:

         a)       Handover of the hardware identified in the Acceptance Set
                  (HS-1 to HS-4 inclusive) together with the software
                  functionality identified in the Function Set (FS-1 to FS-5
                  inclusive);

         b)       Upgrade of software functionality of Equipment already handed
                  over together with its integration with the Equipment in a)
                  above.

         The operational procedures for the above events are defined in Annex
         7b.

2.1.3.   Any dispute which may arise out of the classification of problems, or
         about whether a problem has been fixed to the satisfaction of both
         parties, shall be dealt with by the Dispute Resolution procedures set
         out in Schedule 2 to the Terms and Conditions.

2.1.4.   Where a problem is identified which does not explicitly fit within the
         problem definitions found in the Acceptance Criteria, the problem will
         be classified by analogy to existing definitions.

2.1.5.   Where the same or similar problem is experienced in multiple SANs, it
         shall be counted as only a single problem for the purpose of these
         Acceptance Criteria if the fix is to be obtained by new software in
         each of the SANs. Otherwise it shall be counted once at each instance
         (eg hardware failure or deficiency requiring upgrade or replacement).

2.1.6.   Where a single problem results in impacts on multiple services or
         functions, it shall be counted as a single problem for the purpose of
         these Acceptance Criteria, but the most stringent severity grading
         shall be used.

2.1.7.   For determining whether a problem should be counted as impacting an end
         user service, or not, the criterion is whether there is an impact on
         one of the services defined in Section 4 of the IGFR.

2.1.8.   For Acceptance Sets 1 to 4 inclusive, the criteria which relate to
         Capacity to carry services shall be applied to the demonstrated or
         tested capacity of the SAN, relative to the contracted installed
         capacity. No account shall be taken of the potential for future
         expansion.

2.1.9.   For Acceptance Set 5, the criteria which relate to Capacity to carry
         services shall be applied to both a) the demonstrated or tested
         capacity of the SAN, relative to the

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         contracted installed capacity; and b) the ability of the equipment to
         be expanded to meet the maximum capacity requirement in the IGFR.

2.2      ACCEPTANCE SETS 1 TO 3

2.2.1.   For the purpose of Acceptance Sets 1 to 3, the following definitions
         are guidelines for the classification of problems.

<TABLE>
<CAPTION>
TYPE OF EFFECT OF PROBLEM (AS-1 TO 3)                               CRITICAL                 MAJOR                  MINOR
------------------------------------------------------------------------------------------------------------------------------
<S>                                                            <C>                    <C>                    <C>
Ability to carry the voice communication service as defined       Capacity <30%          Capacity <50%         Capacity <100%
in the applicable Function Set description

Ability to carry end user services defined in the                                        Capacity <50%         Capacity <100%
applicable Function Set description other than voice
communication service

Ability to charge accurately for end user services defined        <95% accuracy           Any impact
in the applicable Function Set description

Performance of voice communications service as defined in       Setup and In-call      Setup and In-call      Setup and In-call
the applicable Function Set description not including          failure rate > 20%     failure rate > 10%      failure rate > 2%
handovers

Performance of voice communications service as defined in       Setup and In-call      Setup and In-call      Setup and In-call
the applicable Function Set description, for calls which       failure rate > 40%     failure rate > 20%      failure rate > 4%
involve a handover (only if the FS description includes
handover)

Performance of end user services defined in the applicable                             Setup and In-call      Setup and In-call
Function Set description other than voice communication                               failure rate > 10%      failure rate > 2%
service, using commercially available terminal equipment
selected by NEC

Connectivity of end user services defined in the applicable           <40%                   <70%                   <90%
Function Set description (to % of user population)

Provision of function or service feature or supplementary                             Does not work or is      Any degradation
service defined in the applicable Function Set description                               not available

Reproducible or non-reproducible service disruption to             > 3 per day            > 1 per day           > 1 per week
multiple previously established calls simultaneously (such     affecting the whole    affecting the whole    affecting the whole
as may be caused by processor restart)                          SAN capacity, or       SAN capacity, or       SAN capacity, or
                                                                equivalent impact      equivalent impact      equivalent impact
</TABLE>

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<TABLE>
<CAPTION>
Type of Effect of problem (AS-1 to 3)                               Critical                 Major                  Minor
------------------------------------------------------------------------------------------------------------------------------
<S>                                                            <C>                   <C>                     <C>
Reproducible or non-reproducible service disruption which          > 6 per day            > 2 per day           > 2 per week
prevents establishment of new calls or clearing of             affecting the whole    affecting the whole    affecting the whole
previously established calls (such as may be caused by          SAN capacity, or       SAN capacity, or       SAN capacity, or
processor restart)                                              equivalent impact      equivalent impact      equivalent impact

Call failure of individual call, with non-reproducible                               Affect more than 10%    Affect more than 2%
characteristics                                                                        of an identified       of an identified
                                                                                           call type              call type

Additional attention by operational staff                      Constant (more than    Frequent (more than     Occasional (more
                                                                 once per hour)       once per day, OR on    than once per week)
                                                                                       average more than
                                                                                       one hour per day)

Faults impacting ICO Operations or Planning, but not                                      Substantial         Inconvenience or
Services (screen formats, file transfer faults, etc.)                                    impediment to       confusion directly
                                                                                         operations or       attributable to the
                                                                                          substantial               fault
                                                                                       additional labour
</TABLE>

2.2.2.   During the period following handover of HS-2 or HS-3 at the HS-2 or
         HS-3 sites respectively, or following upgrade and integration of
         Equipment at a previously handed over site, and prior to Acceptance Set
         Completion, and when the Contractor's testing staff are not present at
         the site, the contribution of that site to the number of
         non-reproducible service disruptions or call failures, for the purpose
         of classification of problems for that Acceptance Set, shall be half
         the actual number of such events at that site.

2.2.3.   Acceptance Set 1 to 3 shall be determined for the Equipment handed over
         as defined for the applicable Hardware Set HS-1, HS-2 or HS-3 based on
         the results of the Phase 3 Tests on the additional hardware handed over
         to make up that Hardware Set, taking account of Phase 1 and Phase 2.1
         test results as appropriate.

2.2.4.   Acceptance Set 1, 2 or 3 as applicable shall be granted when the
         following criteria are met:

2.2.4.1. The applicable Function Set has no more than the following numbers of
         faults:

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<TABLE>
<CAPTION>
   Fault class                       Number of faults        Number of faults with temporary fixes
   -----------------------------------------------------------------------------------------------
<S>                                  <C>                     <C>
   Critical                          0                       No limit
   Major: End User Services          2                       No limit
   Major: Others                     5                       No limit
   Minor: End User Services          20                      No limit
   Minor: Others                     No limit                No limit
</TABLE>

2.3      ACCEPTANCE SET 4

2.3.1.   For the purpose of Acceptance Set 4, the following definitions are
         guidelines for the classification of problems.

<TABLE>
<CAPTION>
Type of Effect of problem (AS-4)                                    Critical                 Major                  Minor
-----------------------------------------------------------------------------------------------------------------------------
<S>                                                            <C>                    <C>                    <C>
Ability to carry the voice communication service as defined       Capacity <50%          Capacity <80%         Capacity <100%
in the Function Set 4 description

Ability to carry end user services defined in the                                        Capacity <80%         Capacity <100%
Function Set 4 description, other than voice
communication service

Ability to charge accurately for end user services defined         Any impact
in the Function Set 4 description

Performance of voice communications service as defined in        Service unusable      Setup and In-call      Setup and In-call
the Function Set 4 description not including                                           failure rate >5%       failure rate >1%
handovers

Performance of voice communications service as defined in        Service unusable      Setup and In-call      Setup and In-call
the Function Set 4 description, for calls which                                        failure rate >10%      failure rate >4%
involve a handover.

Performance of end user services defined in the                                            Significant         Minor degradation
Function Set 4 description, other than voice communication                                 degradation
service, using a range of commercially available terminal
equipment selected by NEC and ICO

Connectivity of end user services defined in the                      <60%                   <85%                   <100%
Function Set 4 description (to % of user population)

Provision of function or service feature or supplementary                             Does not work or is      Any degradation
service defined in the Function Set 4 description                                        not available

Reproducible or non-reproducible service disruption to             > 1 per week          > 1 per month
multiple previously established calls simultaneously (such     affecting the whole    affecting the whole
as may be caused by processor restart)                          SAN capacity, or       SAN capacity, or
                                                                equivalent impact      equivalent impact
</TABLE>

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<TABLE>
<CAPTION>
Type of Effect of problem (AS-4)                                    Critical                 Major                  Minor
-----------------------------------------------------------------------------------------------------------------------------
<S>                                                            <C>                   <C>                     <C>
Reproducible or non-reproducible service disruption which          >2 per week            >2 per month
prevents establishment of new calls or clearing of             affecting the whole    affecting the whole
previously established calls (such as may be caused by          SAN capacity, or       SAN capacity, or
processor restart)                                              equivalent impact      equivalent impact

Call failure of individual call, with non-reproducible                               Affect more than 5%     Affect more than 1%
characteristics                                                                        of an identified       of an identified
                                                                                           call type              call type

Additional attention by operational staff                      Constant (more than    Frequent (more than     Occasional (more
                                                                 once per hour)       once per day, OR on    than once per week)
                                                                                       average more than
                                                                                       one hour per day)

Faults impacting ICO Operations or Planning, but not                                      Substantial         Inconvenience or
Services (screen formats, file transfer faults, etc.)                                    impediment to       confusion directly
                                                                                         operations or       attributable to the
                                                                                          substantial               fault
                                                                                       additional labour
</TABLE>

2.3.2.   During the period following handover of HS-4 at the HS-4 sites, or
         following upgrade and integration of Equipment at a previously handed
         over site, and prior to Acceptance Set 4 Completion, and when the
         Contractor's testing staff are not present at the site, the
         contribution of that site to the number of non-reproducible service
         disruptions or call failures, for the purpose of classification of
         problems for Acceptance Set 4, shall be half the actual number of such
         events at that site.

2.3.3.   Acceptance Set 4 shall be determined for the Equipment handed over as
         defined for the applicable Hardware Set HS-4 based on the results of
         the Phase 3 Tests on the additional hardware handed over to make up
         that Hardware Set taking account of Phase 1 and Phase 2.1 test results
         as appropriate.

2.3.4.   Acceptance Set 4 shall be granted when the following criteria are met:

2.3.4.1. Function Set 4 has no more than the following numbers of faults:

                                                Confidential and Proprietary to
Created: 26/2/97                       6              ICO Global Communications
<PAGE>   2144
-------------------------------------------------------------------------------
                                                            EN-IG-ICO-SW/000012
[ICO LOGO]       ANNEX 10 - ICONET GROUND FACILITIES        Issue: 2.10
                       ACCEPTANCE  CRITERIA                 27 May 1999
-------------------------------------------------------------------------------

<TABLE>
<CAPTION>
      Fault class                       Number of faults          Number of  temporary fixes
      -------------------------------------------------------------------------------------------------
<S>                                     <C>                       <C>
      Critical                          0                         No limit
      Major:                            1                         No limit
      End User Services
      Major: Others                     5                         No limit
      Minor: End User Services          20                        No limit
      Minor: Others                     No limit                  No limit
</TABLE>

2.3.4.2. All Deliverables defined in this Statement of Work have been delivered,
         in accordance with the Statement of Work, except for any deliverables
         specifically associated with FS-5.

2.4      ACCEPTANCE SET 5

2.4.1.   For the purpose of Acceptance Set 5, the following definitions are
         guidelines for the classification of problems.

<TABLE>
<CAPTION>
TYPE OF EFFECT OF PROBLEM (AS-5)                                   CRITICAL                MAJOR                MINOR
--------------------------------------------------------------------------------------------------------------------------
<S>                                                            <C>                  <C>                   <C>
Ability to carry services defined in IGFR                       Capacity <50%         Capacity <80%        Capacity <100%
4.1.1.1, 4.1.1.2, 4.1.2.1, 4.1.3.1, 4.1.3.2,
4.1.3.3, 4.1.3.4, 4.2.1, 4.2.2, 4.2.3 and 4.4.1.

Ability to charge accurately for services                       Any impact
defined in IGFR 4.1.1.1, 4.1.1.2, 4.1.2.1,
4.1.3.1, 4.1.3.2, 4.1.3.3, 4.1.3.4, 4.2.1,
4.2.2, 4.2.3 and 4.4.1.

Performance of end user services                               Service unusable         Significant       Minor degradation
                                                                                        degradation

Performance of administration and support services                                   Service unusable      Any degradation

Provision of service features or supplementary services                               Not work or not      Any degradation
                                                                                         available

Reproducible or non-reproducible service disruption to           > 1 per week          > 1 per week
multiple calls simultaneously (such as may be caused by
processor restart)

Call failure of individual call, with non-reproducible                              Affect more than 1%   Affect less than
characteristics                                                                      of an identified         1% of an
                                                                                         call type         identified call
                                                                                                                type

Additional attention by operational staff                          Constant         Frequent (less than   Occasional (less
                                                                                      once per hour)      than once per day)
</TABLE>

2.4.2.   Acceptance Set 5 shall be determined for the IGF as a whole based on
         the results of all Phase 3 Tests, including test results used in
         earlier Acceptance Sets, applicable Phase 1 and Phase 2.1 test results,
         appropriate regression testing and additional testing as

                                                Confidential and Proprietary to
                                       7              ICO Global Communications
<PAGE>   2145
-------------------------------------------------------------------------------
                                                            EN-IG-ICO-SW/000012
[ICO LOGO]       ANNEX 10 - ICONET GROUND FACILITIES        Issue: 2.10
                       ACCEPTANCE  CRITERIA                 27 May 1999
-------------------------------------------------------------------------------

         necessary to give full IGFR coverage. The Contractor shall present a
         consolidated assembly (eg binder) of the completed test results
         consisting of results from the incremental testing of FS-5 for services
         and functions not tested or not passed in earlier Acceptance Sets,
         together with the results from the earlier testing.

2.4.3.   Acceptance Set 5 shall be granted when the following criteria are met:

2.4.3.1. The IGF as a whole has no more than the following numbers of faults:

<TABLE>
<CAPTION>
Fault class                    Number of faults        Number of temporary fixes
--------------------------------------------------------------------------------------------
<S>                          <C>                     <C>
Critical                       0                       5
Major: End User Services       0                       20
Major: Others                  5                       20
Minor: End User Services       20                      100
Minor: Others                  See Note 1              See Note 1
</TABLE>

Note 1 : All minor other problems shall be recorded and reviewed at the time of
Acceptance Set 5 and prioritised with target date of 6 months to clear.

2.4.3.2. All Deliverables defined in this Statement of Work have been delivered,
         in accordance with the Statement of Work.

2.4.3.3. All Works required in this Statement of Work have been completed.

2.4.4.   Sections 2.4.3.2 and 2.4.3.3 shall not apply to the Deliverables and
         items of the Works which are shown in the Master Level Schedule to be
         provided by the Contractor after the date of FS-5 Phase 3 Test
         completion.

2.5      INDEPENDENT SAN ACCEPTANCE

2.5.1    Independent SAN Acceptance shall be granted when the following criteria
         are met:

2.5.2    The subject SAN has passed its Phase 3 tests

2.5.3    The subject SAN software has been updated to match the other SANs in
         the IGF.

2.5.4    All associated Deliverables have been delivered.

3.       FAULT CLEARANCE

3.0.1    This section specifies the timeframes for clearance of faults following
         completion of Acceptance Set 5. For Acceptance Sets 1 to 4, subsequent
         releases to update the Function Set for the following Acceptance will
         incorporate fixes needed to pass the criteria for that Acceptance. Thus
         separate timeframes for correction of problems do not need to be
         specified.

                                                Confidential and Proprietary to
Created: 26/2/97                       8              ICO Global Communications
<PAGE>   2146
-------------------------------------------------------------------------------
                                                            EN-IG-ICO-SW/000012
[ICO LOGO]       ANNEX 10 - ICONET GROUND FACILITIES        Issue: 2.10
                       ACCEPTANCE  CRITERIA                 27 May 1999
-------------------------------------------------------------------------------

3.1.     REPRODUCIBLE FAULT CLEARANCE

3.1.1.   CRITICAL PROBLEMS

3.1.1.1. Any temporary fix for previously occurring critical problems shall be
         replaced with the corresponding permanent fix within 3 months.

3.1.2.   MAJOR PROBLEMS

3.1.2.1. Any temporary fix for previously occurring major problems shall be
         replaced with a corresponding permanent fix within 3 months unless
         otherwise mutually agreed.

3.1.2.1. The fix for all other major problems, which do not have a temporary
         fix, shall be implemented and demonstrated no later than 3 months after
         Acceptance unless otherwise mutually agreed.

3.1.3.   MINOR PROBLEMS

3.1.3.1. Any temporary fix for previously occurring minor problems shall be
         replaced with a corresponding permanent fix within 6 months unless
         otherwise mutually agreed.

3.1.3.1. The fix for all minor problems, which do not have a temporary fix,
         shall be implemented and demonstrated no later than 6 months after
         Acceptance unless otherwise mutually agreed.

3.2.     NON-REPRODUCIBLE FAULT CLEARANCE

3.2.0.1. These are faults that occur rarely or which cannot be reproduced in the
         test environment.

3.2.1.   CRITICAL PROBLEMS

3.2.1.1. Any temporary fix for previously occurring non-reproducible critical
         problem shall be replaced with a corresponding permanent fix within a
         target period of 3 months.

3.2.2.   MAJOR PROBLEMS

3.2.2.1. Any temporary fix for previously occurring non-reproducible major
         problems shall be replaced with a corresponding permanent fix within a
         target period of 3 months unless otherwise mutually agreed.

3.2.2.2. All non-reproducible major problems shall be investigated by the
         addition of a diagnostic change or development of an agreed procedure
         to provide more detailed information so that progress can be made
         towards fixing the fault. The situation shall be reviewed within one
         month of the first recurrence.

                                                Confidential and Proprietary to
Created: 26/2/97                       9              ICO Global Communications
<PAGE>   2147
-------------------------------------------------------------------------------
                                                            EN-IG-ICO-SW/000012
[ICO LOGO]       ANNEX 10 - ICONET GROUND FACILITIES        Issue: 2.10
                       ACCEPTANCE  CRITERIA                 27 May 1999
-------------------------------------------------------------------------------

3.2.3.   MINOR PROBLEMS

3.2.3.1. Any temporary fix for previously occurring non-reproducible minor
         problems shall be replaced with a corresponding permanent fix within a
         target period of 6 months unless otherwise mutually agreed.

3.2.3.2. All non-reproducible minor problems shall be investigated by the
         addition of a diagnostic change or development of an agreed procedure
         to provide more detailed information so that progress can be made
         towards fixing the fault. The situation shall reviewed within two
         months of the first recurrence.

4.       FAULT AND TEMPORARY FIX TRACKING AND REPORTING

Section not used, refer to Annex 7B section 5.2 and Annex 8A section 6.1.2 and
6.1.3.

5.       DEFERRED FUNCTIONALITY ACCEPTANCE CRITERIA

5.1.     Deferred Functionality acceptance shall apply to each element of
         functionality that is defined as to be delivered later than the IGF as
         a whole.

5.2.     Deferred Functionality acceptance shall be granted when the following
         criteria are met:

         1.       The functionality has passed all formal tests using the
                  operational ICO System.

         2.       The associated Training, which is agreed to be required and
                  purchased, has been completed.

         3.       The associated Documentation has been delivered.

                                                Confidential and Proprietary to
Created: 26/2/97                      10              ICO Global Communications
<PAGE>   2148
[ICO LETTERHEAD]                                  CHANGE ORDER
                                                  NO:  18
                    IGF SUPPLY AGREEMENT
                    CONTRACT NO ICOO97 - 1016/GW
                                                  Date: December 1999

In accordance with clause 9 of the Supply Agreement dated March 3rd 1997 between
NEC Corporation and ICO Global Communications Holdings BV, the Agreement is
hereby amended as follows:

<TABLE>
<S>                                    <C>
Amended Clauses                        None
Amended Schedules                      Schedule 13 - IGFR version 28.4
Amended Annexes                        None
Amended Price                          None
Other Amendments                       None
Reference Correspondence               CCR 50, 53, 113, 114, 116, 79, 69, 70, 90, 117 & 118
                                       SA1483, SA1584, SA1585, SA1615, SA1580, SA1780, SA1860, SA1867, SA1861
</TABLE>

This Change Order No 18 will now form part of the Supply Agreement dated March
3rd 1997 between the parties as from the date of this Change Order and shall be
governed by and construed in accordance with the laws of England. Except for the
changes set out above, this Change Order No 18 makes no further amendments or
modifications to the Agreement.

Signed for and on behalf of               Signed for and on behalf of
ICO GLOBAL COMMUNICATIONS HOLDINGS BV     NEC CORPORATION

/s/ G.S Titzer                            /s/ T. Furukawa
-------------------------------------     --------------------------------------
Supervising Officer                       Contractor's Authorised Representative

14 Dec 1999                               20 Dec, 1999
-----------------                         -----------------
Date                                      Date
<PAGE>   2149
                       ADDENDUM 3 TO IGFR V28.4 VERSION 3

<TABLE>
<CAPTION>
====================================================================================================================================
                                                                                                    CHANGE
                                                                                                    REQUEST   DATE OF
  SECTION NO.                    REVISED TEXT                   DESCRIPTION OF PROPOSED SOLUTION      NO.    ACCEPTANCE     OWNER
====================================================================================================================================
<S>              <C>                                           <C>                                  <C>      <C>         <C>
6.58.7.2.1       6.58.7.2.1. The 10 dB bandwidth shall be      To keep the flat frequency response     50    04/03/1999      MC
                 greater than +/-3 MHz and not greater         and delay frequency response in
                 than +/-35 MHz.                               passband, +/- 35 MHz is required
                                                               for 10dB bandwidth
------------------------------------------------------------------------------------------------------------------------------------
6.58.8.2.1       6.58.8.2.1. The 10 dB bandwidth shall be      To keep the flat frequency response     53    04/03/1999      MC
                 greater than +/-3 MHz and less than           and delay frequency response in
                 +/-35 MHz.                                    passband, +/- 35 MHz is required
                                                               for 10dB bandwidth
------------------------------------------------------------------------------------------------------------------------------------
6.25.2.3.1.6     6.25.2.3.1.6 The SRMS shall provide Dbn       Removals of TBD's and []'s in IGFR     113    28/04/1999      LG
                 parameters within an accuracy of +/-1 Hz      v28.4
                 excluding errors in the ephemeris data.
------------------------------------------------------------------------------------------------------------------------------------
6.49.1.2         6.49.1.2 Forward Direction TCH/DCCH Channels  Removals of TBD's and []'s in IGFR     113    28/04/1999      LG
                 1. Maximum User Link Margin versus Elevation  v28.4
                 profile
                 2. Initial User Link Margin versus elevation
                 profile
                 3. Satellite Load Management Criteria
                 (according to the Operator configurable
                 threshold table for off-loading criteria)
------------------------------------------------------------------------------------------------------------------------------------
6.49.4.3.1       6.49.4.3.1 The SRMC shall determine the       Removals of TBD's and []'s in IGFR     113    28/04/1999      LG
                 reference SAN EIRP values with a maximum      v28.4
                 calculation error of +/-0.1dB from the value
                 needed for the planned link margin excluding
                 the errors due to source data accuracy.
------------------------------------------------------------------------------------------------------------------------------------
6.50.2.12.1      6.50.2.12.1 The SRMC shall implement, in the  Removals of TBD's and []'s in IGFR     113    28/04/1999     LG
                 frequency planning algorithms, capability to  v28.4
                 take account of the following constraints on
                 the use of the mobile link and feeder link
                 bands :
                 4. allocations which are exclusive to ICO or
                 shared and can produce potential
                 interference to or from ICO in certain
                 azimuth/elevation ranges;
------------------------------------------------------------------------------------------------------------------------------------
6.52.8.2         6.52.8.2 The SRMC shall develop location      Removals of TBD's and []'s in IGFR     113    28/04/1999     LG
                 phase time plans that allows, for the         v28.4
                 reference ICO constellation, transmission of
                 BCCH/HP to every point on the Earth at the
                 appropriate BCCH/HP time slot nominally
                 every 10 HPN frames using maximum satellite
                 diversity.
------------------------------------------------------------------------------------------------------------------------------------
6.59.9.2.3.4     6.59.9.2.3.4 The NMC shall plan the           Removals of TBD's and []'s in IGFR     113    28/04/1999     LG
                 execution of stored payload control commands  v28.4
                 intended as the back-up for real-time HPN
                 index table swapping commands. This shall
                 occur approximately 5 seconds after the
                 real-time swapping command execution time.
------------------------------------------------------------------------------------------------------------------------------------
Clause 9.2.1     Clause 9.2.1 Table 9-1 Item 68.2              Typographical Error in IGFR v28.4      114    28/04/1999     LG
Table 9-1 Item   "Dimensioning Driver" as follows:
68.2             1) Number of LAN ports on the DCN Router
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

ICO SERVICES LTD CONFIDENTIAL                                        PAGE 1 OF 4
<PAGE>   2150
                       ADDENDUM 3 TO IGFR V28.4 VERSION 3

<TABLE>
<CAPTION>
====================================================================================================================================
                                                                                                    CHANGE
                                                                                                    REQUEST   DATE OF
  SECTION NO.                    REVISED TEXT                   DESCRIPTION OF PROPOSED SOLUTION      NO.    ACCEPTANCE     OWNER
====================================================================================================================================
<S>              <C>                                           <C>                                  <C>      <C>         <C>
6.53.1.14.1      6.53.1.14.1. The single sideband phase noise  To better address the measurement      116    17/05/1999     MC
                 spectral density induced on any transmit      of phase noise power spectral
                 carrier shall not exceed the values below     density on production SBS channel
                 with the AFC functions enabled:               unit modem equipment at L-band
                 Frequency Offset (F)  SSB Phase Noise Limit   carrier frequencies
                                       (dBc/Hz; F in Hz)
                 10 - 100 Hz          -12 - 25 log(10) F
                 100 - 800 Hz         -24.2 - 189.9 log(10) F
                 0.8 - 10 kHz         -79 dBc
                 10 - 20 kHz          +41.0 -30.0 log(10) F
                 20 - 100 kHz         -8890 dBc
------------------------------------------------------------------------------------------------------------------------------------
6.53.1.14.2.     6.53.1.14.2. The integrated phase jitter      To better address the measurement      116    17/05/1999     MC
                 including all random and discrete phase       of phase noise power spectral
                 noise components when measured in a double    density on production SBS channel
                 sideband bandwidth from 10 Hz to 12.5 kHz     unit modem equipment at L-band
                 shall not exceed 2.6 RMS.                     carrier frequencies
------------------------------------------------------------------------------------------------------------------------------------
6.53.2.2.1.      6.53.2.2.1. The IGF shall meet the reference  It is confusing to list the ACK/HP      79    26/04/1999     PP
                 performance level as defined below. The       receiver characteristics in Section
                 reference performance level is defined as     6.53.2.2, treating it to all the
                 the C/No required at the SAN demodulator      constraints normally subjected to
                 interface, excluding interference, for a bit  all the modulated traffic and
                 error, a residual bit error or a frame        control channels.
                 erasure rate (whichever appropriate)
                 corresponding to the reference rate. This
                 reference sensitivity is specified in Tables
                 6-10 and 6-11, according to the type of
                 channel and the propagation condition.
------------------------------------------------------------------------------------------------------------------------------------
6.53.2.2.4       6.53.2.2.4 - DELETED                          The ACK/HP channel receiver             79    26/04/1999     PP
                                                               performance specifications are
                                                               given in IGFR Section 8.7.4.2. The
                                                               inclusion of Section 6.53.2.2.4 is
                                                               redundant.
------------------------------------------------------------------------------------------------------------------------------------
8.7.4.2          8.7.4.2 The HPN receiver shall have the       The ACK/HP channel receiver             79    26/04/1999     PP
                 following characteristics for the ACK/HP      performance specifications are
                 channel.                                      given in IGFR Section 8.7.4.2. The
                 1. False                                      inclusion of Section 6.53.2.2.4 is
                 Alarm Rate     < 0.001                        redundant.
                 2. Detection
                 Probability    > 95 %
                 3. Receive
                 Frequency
                 Uncertainty    +/- 3.0 kHz
                 4. Receive
                 burst
                 Timing
                 Uncertainty    +/- 2.5 msec
                 5. Channel
                 Fading
                 Bandwidth    30 Hz      200 Hz     AWGN
                 6. Received  6(degree)  6(degree)  6(degree)
                 Phase Noise  rms        rms        rms
                 7. Receiver
                 Signal Level 32.0       33.5       29.0
                 C/No (single dB-Hz      dB-Hz      dB-Hz
                 burst mode)
                 8. Receiver
                 Signal Level 29.5       31.5       28.5
                 C/No (dual   dB-Hz      dB-Hz      dB-Hz
                 burst mode)
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

ICO SERVICES LTD CONFIDENTIAL                                        PAGE 2 OF 4
<PAGE>   2151
                       ADDENDUM 3 TO IGFR V28.4 VERSION 3

<TABLE>
<CAPTION>
====================================================================================================================================
                                                                                                    CHANGE
                                                                                                    REQUEST   DATE OF
  SECTION NO.                    REVISED TEXT                   DESCRIPTION OF PROPOSED SOLUTION      NO.    ACCEPTANCE     OWNER
====================================================================================================================================
<S>              <C>                                           <C>                                  <C>      <C>         <C>
6.25.2.3.5.3.1   The SBS shall measure the medium penetration  Remove Bracketed, TBD items             69    06/08/1999     PP
                 SDCCH/2 frequency offset relative to its      Clarification for number of bursts
                 frequency at the demodulator input to an      in each logical channel Added 20%
                 accuracy of +/- 24  Hz 1 sigma with a C/N of  margin on top of simulation results
                 -2.5 dB and +/- 12 Hz 1 sigma at a C/N of
                 5.4 dB. (SDCCH/2 has six bursts)
------------------------------------------------------------------------------------------------------------------------------------
6.25.2.3.5.3.4.  The SBS shall be able to acquire the return   Remove Bracketed, TBD items             69    06/08/1999     PP
                 direction of the dedicated channels with an   Clarification for number of bursts
                 initial frequency error of up to +/-          in each logical channel Added 20%
                 170 Hz relative to their nominal frequency.   margin on top of simulation results
------------------------------------------------------------------------------------------------------------------------------------
6.25.1.2.5.3.    The accuracy of the time delay measurement    Remove Bracketed, TBD items             70    06/08/1999     PP
                 in the demodulator relative to the signal at  Clarification for number of bursts
                 the demodulator input shall be better than    in each logical channel Added 20%
                 +/- 17 micro sec 1sigma in an AWGN channel    margin on top of simulation results
                 with a C/N = -2.5 dB (DCCH/2 only), and +/-
                 6 micro sec 1 sigma with C/N = +5.4dB (all
                 TCH and DCCH channels).
------------------------------------------------------------------------------------------------------------------------------------
6.20.22.         In addition to the technical requirements     Textual change of IGFR to clarify       90    05/11/1999     LG
                 stated in section 6.20. of this IGF           requirement, no affect of
                 requirements specification, the LIS shall     subsystems.
                 comply with the technical proposals for
                 Legal Interception as referenced in the
                 ICO-Ericsson Control Document number 360497.
------------------------------------------------------------------------------------------------------------------------------------
8.11.2.10.       Availability of each Legal Interception       Textual change of IGFR to clarify       90    05/11/1999     LG
                 Activation system (LIAS) and each Legal       requirement, no affect of
                 Interception Management System (LIMS) shall   subsystems.
                 be greater than 0.9999.
------------------------------------------------------------------------------------------------------------------------------------
6.53.1.14.2.     The integrated phase jitter including all     CCR 68 (already included in IGFR       117    08/11/1999   MCa/LG/DM
                 random and discrete phase noise components    28.4 Addendum 1) and CCR116
                 when measured in a double sideband bandwidth  (accepted on 17/05/99)
                 from 10 Hz to 12.5 kHz shall not exceed       inadvertently affected the
                 2.6(degree) RMS for the carriers generated    performance of the HPN carriers and
                 by the SBS subsystem and 3.1 (degree)         non-IGF carriers
                 RMS for the carriers generated by the
                 HPN subsystem.
------------------------------------------------------------------------------------------------------------------------------------
6.53.1.14.7.     For the TT&C carrier and the SRMS command     CCR 68 (already included in IGFR       117    08/11/1999   MCa/LG/DM
                 carrier generated by the external equipment,  28.4 Addendum 1) and CCR116
                 the above specifications shall be applied     (accepted on 17/05/99)
                 from the RFT IF input to the RF output.       inadvertently affected the
                                                               performance of the HPN carriers and
                                                               non-IGF carriers
------------------------------------------------------------------------------------------------------------------------------------
4.4.3.6          For voice messaging services, the IGF shall   Changes to the IGFR Messaging Text     118    05/11/1999     AS
                 support the use of a language preference.
                 Each messaging system shall support a
                 maximum of 8 languages.
------------------------------------------------------------------------------------------------------------------------------------
4.5.1.2          The IGF messaging platform shall support a    Changes to the IGFR Messaging Text     118    05/11/1999     AS
                 centralised configuration for the provision
                 of messaging services. A centralised
                 configuration means that each messaging
                 platform is a discrete entity that does not
                 interact with other messaging platforms in
                 the ICO network.
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

ICO SERVICES LTD CONFIDENTIAL                                        PAGE 3 OF 4
<PAGE>   2152
                       ADDENDUM 3 TO IGFR V28.4 VERSION 3

<TABLE>
<CAPTION>
====================================================================================================================================
                                                                                                    CHANGE
                                                                                                    REQUEST   DATE OF
  SECTION NO.                    REVISED TEXT                   DESCRIPTION OF PROPOSED SOLUTION      NO.    ACCEPTANCE     OWNER
====================================================================================================================================
<S>              <C>                                           <C>                                  <C>      <C>         <C>
4.5.1.5          The IGF shall provide a flexible script/form  Changes to the IGFR Messaging Text     118    05/11/1999     AS
                 based menu system for dialogue with the end
                 user. Interaction with the end-user shall be
                 by means of DTMF
------------------------------------------------------------------------------------------------------------------------------------
4.5.1.7          Where ICO requests changes to the existing    Changes to the IGFR Messaging Text     118    05/11/1999     AS
                 user interface, ICO will not be charged for
                 the development work required to implement
                 the following changes: current user
                 interface changes to improve service,
                 current Feature changes to improve service,
                 addition of Service Provider Identity
                 Greetings as specified in section
                 4.5.6.11.14 . Such changes shall not require
                 more than five (5) development days per
                 month or more than 15 development days per
                 year in the aggregate. ICO shall give notice
                 of requested changes no less then 2 months
                 prior to the requested delivery date.
------------------------------------------------------------------------------------------------------------------------------------
4.5.1.10         The IGF messaging platform shall permit the   Changes to the IGFR Messaging Text     118    05/11/1999     AS
                 mailbox owner to record and install
                 personalised greetings for all answer cases
                 such as no-answer or busy, and a greeting
                 that will be played in all cases.
------------------------------------------------------------------------------------------------------------------------------------
4.5.6.2          The IGF shall also support a common access    Changes to the IGFR Messaging Text     118    05/11/1999     AS
                 number for access to the messaging system
                 (one for each system) from outside the ICO
                 network i.e. from the PSTN/ISDN.
------------------------------------------------------------------------------------------------------------------------------------
4.5.6.10.4       Language selection as subscribed to by the    Changes to the IGFR Messaging Text     118    05/11/1999     AS
                 mailbox owner.
------------------------------------------------------------------------------------------------------------------------------------
4.5.7.2          It shall be also possible to send a           Changes to the IGFR Messaging Text     118    05/11/1999     AS
                 notification via the Internet. This requires
                 the end user to be an ICO Unified Messaging
                 subscriber.
------------------------------------------------------------------------------------------------------------------------------------
4.5.8.1.5        External user client/ system via TNPP and     Changes to the IGFR Messaging Text     118    05/11/1999     AS
                 V.32/ Modem Pool
------------------------------------------------------------------------------------------------------------------------------------
4.5.8.1.6        External user client/ system via TNPP and     Changes to the IGFR Messaging Text     118    05/11/1999     AS
                 TCP/IP
------------------------------------------------------------------------------------------------------------------------------------
5.1.2.1.1.1.1    deposit of voice/fax/email                    Changes to the IGFR Messaging Text     118    05/11/1999     AS
------------------------------------------------------------------------------------------------------------------------------------
5.1.2.1.1.1.2    retrieval of voice/fax/email                  Changes to the IGFR Messaging Text     118    05/11/1999     AS
------------------------------------------------------------------------------------------------------------------------------------
5.1.2.1.1.1.3    forwarding of voice/fax/email                 Changes to the IGFR Messaging Text     118    05/11/1999     AS
------------------------------------------------------------------------------------------------------------------------------------
5.1.2.1.1.1.4    distribution of voice/fax/email               Changes to the IGFR Messaging Text     118    05/11/1999     AS
------------------------------------------------------------------------------------------------------------------------------------
5.1.2.1.1.3      The IGF shall support the suppression of      Changes to the IGFR Messaging Text     118    05/11/1999     AS
                 individual CDR types via network management
                 command, (F/R).
------------------------------------------------------------------------------------------------------------------------------------
5.1.2.3.5.       In case of immediate record transfer, the     Changes to the IGFR Messaging Text     118    05/11/1999     AS
                 Messaging Platform shall transfer the
                 individual call records immediately after
                 the event being recorded, or the release of
                 a connection that is being recorded. (F/R).
------------------------------------------------------------------------------------------------------------------------------------
5.1.2.3.6.       The transfer by the Messaging Platform of     Changes to the IGFR Messaging Text     118    05/11/1999     AS
                 individual CDRs to the ADC shall be
                 completed in less than 1 minute, excluding
                 transmission time, when immediate record
                 transfer is used, (F/R).
------------------------------------------------------------------------------------------------------------------------------------
7.8.4.7.5.1.2e   Average Short Message lengths, (F/R).         Changes to the IGFR Messaging Text     118    05/11/1999     AS
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

ICO SERVICES LTD CONFIDENTIAL                                        PAGE 4 OF 4
<PAGE>   2153

                                                            CHANGE ORDER NO: 19

[ICO LOGO]                IGF SUPPLY AGREEMENT
                          CONTRACT NO ICOO97 - 1016/GW

                                                            DATE: FEBRUARY 2000

In accordance with clause 9 of the Supply Agreement dated March 3rd 1997 between
NEC Corporation and ICO Global Communications Holdings BV, the Agreement is
hereby amended as follows:

Amended Clauses                        See Attachment 1, 2, 3, 4
Amended Schedules                      See Attachment Nos. 1, 2, 3, 4
Amended Annexes                        See Attachment 1, 2, 3, 4
Amended Price                          None
Other Amendments                       None
Reference Correspondence               See Attachment No. 1, 2, 3, 4

This Change Order No. 19 will now form part of the Supply Agreement dated March
3rd 1997 between the parties and shall be effective from the date of this Change
Order and shall be governed by and construed in accordance with the laws of
England. Except for the changes set out above, this Change Order No. 19 makes no
further amendments or modifications to the Agreement.

Signed for and on behalf of                     Signed for and on behalf of
ICO GLOBAL COMMUNICATIONS HOLDINGS BV           NEC CORPORATION

/s/ ***
---------------------------------               -------------------------------
Supervising Officer                             Contractor's Authorised
                                                Representative

23 Feb 2000
---------------------------------               -------------------------------
Date                                            Date

<PAGE>   2154

                                              CONTRACT NUMBER: ICOO 97 - 1016/GW
                                                             CHANGE ORDER NO: 19

                               CHANGE ORDER NO: 19

                                     TO THE

                                SUPPLY AGREEMENT

                                     BETWEEN

                                 NEC CORPORATION

                                       AND

                      ICO GLOBAL COMMUNICATIONS HOLDINGS BV

<PAGE>   2155

                                                             CHANGE ORDER NO. 19
                                                 TO THE SUPPLY AGREEMENT BETWEEN
                                                             NEC CORPORATION AND
                                           ICO GLOBAL COMMUNICATIONS HOLDINGS BV

INDEX:

Attachment           1: CCR83 - Annex 2 Table 2-1 SAN Test Equipment
                                (Additional)
                        CCR86 - Annex 2 Table 2-1 SAN Test Equipment
                                (Change to existing)
                        CCR89 - OSS "Hot" Standby

Attachment 2:        TNM Equipment Description (CCR115)

Attachment 3:        Annex 1 Contractors Deliverables SBS Equipment List (CCR82)

Attachment 4:        Handover for High Velocity Terminals (ICR09)

<PAGE>   2156

                               CHANGE ORDER NO: 19
                                  ATTACHMENT 1

                  CCR83 - ANNEX 2 TABLE 2-1 SAN TEST EQUIPMENT
                          (ADDITIONAL)
                  CCR86 - ANNEX 2 TABLE 2-1 SAN TEST EQUIPMENT (CHANGE
                          TO EXISTING)
                  CCR89 - OSS "HOT" STANDBY

<PAGE>   2157

                               CHANGE ORDER NO: 19
                                 ATTACHMENT 1.a

<PAGE>   2158

                                                             CHANGE ORDER NO. 19
                                                 TO THE SUPPLY AGREEMENT BETWEEN
                                                             NEC CORPORATION AND
                                           ICO GLOBAL COMMUNICATIONS HOLDINGS BV
                                                                  ATTACHMENT 1.a

1.    The purpose of Contractor Change Request No.83 is to revise the original
      Test Equipment List referred to as TABLE 2-1 in the Statement of Work
      Annex 2 (EN-IG-ICO-SW/000003, Issue 2.8, 7 June 1999) required for
      Operation and Maintenance of the SAN and also for the purposes of System
      and Sub-System Testing.

      The purpose of the Contractor's Change Request No.86 is to revise certain
      of the RFT Test Equipment in respect of Table 2-1 Test Equipment for Each
      SAN within Annex 2 Service & Equipment to update specifications to take
      account of continuous product development and a wider availability of such
      items in the global market offering superior performance at lower cost.

      The purpose of Contractor Change Request No.89 is to clarify the confusing
      terminology used within the Node-OS SFA and within Schedule 9 Pricing
      Schedule, Appendix-1.

2.    As a result of CCR Nos.83 and 86, the parties hereby agree to amend Table
      2-1 in Annex 2 as per Attachment-1.b-1 to this Change Order.

3.    As a result of CCR 89 the parties hereby agree to amend Schedule 9,
      Pricing Schedule, Appendix 1, Section 3.2.10.2 as per Attachment 1.b-2 of
      this Change Order.

4.    The reference correspondence referable to CCR Nos. 83, 86 and 89 is listed
      below.

      CCR NO.83
      (NEC correspondence)
      IUKC-526 (dated 30/04/98), IUKC-601 (dated 23/6/98), IUKC-740 (dated
      02/09/98) and IUKC-797 (dated 07/10/98),

      (ICO correspondence)
      SA0881/WG719980602/GW (dated 2/6/98), SA/1029/WGC/19980805/AdS (dated
      5/8/98), SA1111/WGC/19980907/AdS (dated 5/8/98), SA1178/WGC/19981005/AeS
      (dated 5/10/98), and SA1432/WG8/19990203/GLT (dated 3/2/99)

<PAGE>   2159

      CCR NO. 86
      (NEC correspondence)
      IUKC-596 (dated 17/6/98), IUKC-600 (dated 17/6/98), IUKC-630 (dated
      14/7/98), and IUKC-881 (dated 24/11/98),

      (ICO correspondence)
      SA1432/WG8/19980203/GLT (dated 3/2/98)

      CCR NO. 89
      (NEC correspondence)
      IUKC-667 (dated 29/07/98), IUKC-706 (dated 17/08/98)
      (ICO correspondence)
      SA1044/WG8/19980812/GLT (dated 12/08/98), SA1109/WG7/19980907/GLT (dated
      07/09/98)

5.    The parties undertake to ensure that the required changes specified within
      paragraphs 2 and 3 above, shall be completed within 3 months of the date
      of this Change Order or by such time as the parties shall otherwise agree.
      The parties agree that implementation of these changes shall be effective
      upon agreement without the need for the parties to formalise the
      incorporation of such agreed changes by way of further Change Order.

6.    The Parties agree that neither the Contractor nor any member of the NEC
      Team shall have any obligation to provide vendor financing to ICO pursuant
      to this Change Order.

7.    The Parties agree that this Change Order shall be categorised as a
      Non-clause 15.1 Change Order and further agree to amend Schedule 9
      (Pricing Schedule), Table 24 of the Supply Agreement to record the
      position.

<PAGE>   2160

CHANGE ORDER NO:19                                               ATTACHMENT 1.b

                                AMENDED SCHEDULES
                          ATTACHMENT 1.b-1: SCHEDULE 9
                ATTACHMENT 1.b-2: SCHEDULE 14, ANNEX-2, TABLE 2-1

<PAGE>   2161

                                                             CHANGE ORDER NO. 19
                                                 TO THE SUPPLY AGREEMENT BETWEEN
                                                             NEC CORPORATION AND
                                           ICO GLOBAL COMMUNICATIONS HOLDINGS BV
                                                                ATTACHMENT 1.b-1

TABLE 2-1. TEST EQUIPMENT FOR EACH SAN

<TABLE>
<CAPTION>
NO.     TEST EQUIPMENT                      MODEL NO.                    Q'TY        REMARKS
---     --------------                      ---------                    ----        -------
<S>                                         <C>                           <C>        <C>
STANDARD TEST EQUIPMENT
      1 Spectrum Analyzer                   HP 8563E Option 006           1    Set
      2 Microwave Counter                   HP 5350B                      1    Set
      3 Power Meter                         HP 437B                       1    Set
      4 Power Sensor for Power Meter        HP 8481A                      1    Set
      5 Scalar Network Analyzer             HP 8757D                      1    Set
        Detectors                           HP 85025A                     2    Sets
      6 RF Sweep Generator                  HP 83752A                     1    Set
      7 Digital Multimeter                  HP 34401A                     1    Set
      8 RF Step Attenuator 10 dB Step       HP 8494B                      1    Set
      9 RF Step Attenuator 1 dB Step        HP 8495B                      1    Set
     10 Microwave Link Analyzer             ME 4510B                      1    Set
     11 Printer                             HP 694C                       1    Set
     12 Coaxial Attenuator Set              HP 11582A option UK6          1    Set
     13 Coaxial Coupler (2dB)               HP 773D                       5    Sets
     14 RF/IF Coaxial Hybrid                HP 11667A                     5    Sets
     15 Digital Storage Oscilloscope (50    HP54520A                      2    Sets
        MHz)
     16 WAN Protocol Analyser               HP J2300C Internet Adviser    1    Set
                                            WAN                           1    Set
                                            HP Internet Reporter
                                            LAN/WAN
     17 Protocol Analyser                   Siemens K1103*                1    Set   ICO  to provide the MGTS 2000,
                                                                                     procured from Tekelec which has
                                                                                     the same functionality as the
                                                                                     Siemens K1103.
     18 E1 Test Set                         Electrodata E1 Watcher        1    Set
        T1 Test Set                         Electrodata T1 Watcher        1    Set
     19 PC                                  Pentium 300MHz                1    Set   Or higher specification
     20 Ethernet Sniffer                    Network Associates Fast       1    Set
        Hardware Platform                   Sniffer                       1    Set
                                            Dolch PAC 64
     21 Power Analyser                      Dranetz-BMI                   1    Set
     22 FAX Machine simulator               Genoa FaxLab                  *          * 2 Sets of Genoa FaxLab and 1
                                            FaxProbe v3.0                 *          Set of FaxProbe v3.0 at selected
                                                                                     SAN sites, NMC and BNMC
     23 GPS Time and Frequency Reference    HP58503A                      1    Set
        Receiver                                   + opt. 001,            1    Set
                                                   + opt. 1CM             1    Set
        GPS Antenna                         HP58532A                      1    Set
        Antenna cable                       HP58520A                      1    Set
     24 Handheld Multimeter                 HP973A                        1    Set
     25 Adapters and connectors             Huber and Suhner
                          Straight Adapters 31N-50-0-1                    1    Set
                          Straight Adapters 32N-50-0-1                    1    Set
                                 T adapters 43N-50-0-1                    1    Set
                                 T adapters 46N-50-0-1                    1    Set
                       Right angle adapters 53N-50-0-4                    1    Set
                          Straight Adapters 31 BNC-75-0-1                 1    Set
                          Straight Adapters 31 BNC-50-0-1                 1    Set
                          Straight Adapters 32BNC-75-0-1                  1    Set
                          Straight Adapters 32BNC-50-0-1                  1    Set
                     Fixed Attenuators, 3dB 6903.02.A                     1    Set
                     Fixed Attenuators, 6dB 6906.02.A                     1    Set
                    Fixed Attenuators, 10dB 6910.02.A                     1    Set
                    Fixed Attenuators, 20dB 6920.02.A                     1    Set
                     Fixed Attenuators, 3dB 6903.01.A                     1    Set
                     Fixed Attenuators, 6dB 6906.01.A                     1    Set
                    Fixed Attenuators, 10dB 6910.01.A                     1    Set
                    Fixed Attenuators, 20dB 6920.01.A                     1    Set
                     Fixed Attenuators, 3dB 6803.17.A                     1    Set
</TABLE>

<PAGE>   2162

<TABLE>
<S>                                         <C>                           <C>
                     Fixed Attenuators, 6dB 6806.17.A                     1    Set
                    Fixed Attenuators, 10dB 6810.17.A                     1    Set
                    Fixed Attenuators, 20dB 6820.17.A                     1    Set
</TABLE>

<PAGE>   2163

<TABLE>
<S>                                         <C>                           <C>
     26 Precision calibrated cables and     Huber and Suhner
        connectors                                                        1    Set
                           SF104A cable, 1m SF104A                        1    Set
                           SF104A cable, 2m SF104A                        1    Set
          Sucoflex 104 Q-system Interchange                               1    Set
                            Connectors Kit.

SPECIAL TEST EQUIPMENT
1      UT Load Simulator                    N/A                           1    Set
2      Satellite Channel Simulator          N/A                           1    Set
</TABLE>

Note 1. The model numbers specified above are reference model numbers.
        Therefore the same or the equivalent model test equipment will be
        installed.

Note 2. These changes to Schedule 9 (Pricing Schedule) do not change the price.

<PAGE>   2164

                                                             CHANGE ORDER NO. 19
                                                 TO THE SUPPLY AGREEMENT BETWEEN
                                                             NEC CORPORATION AND
                                           ICO GLOBAL COMMUNICATIONS HOLDINGS BV
                             ATTACHMENT 1.b-2 (CHANGE AS A RESULT OF CCR NO. 89)

As at the date hereof, the parties agree to amend Schedule 9, Pricing Schedule,
Appendix 1, Section 3.2.10.2 as follows.

      3.2.10.2

      OSS is provided as hardware and software to the NMC and the back-up NMC
      and it should be noted that this is conditional on the back-up NMC being
      used as HOT standby ONLY.

      The OSS system at the Back-up NMC shall be maintained in a state such that
      it is synchronised with the Node OS at the Primary NMC. One Node OS (i.e.
      Primary) shall be maintained in a Monitoring and Control Mode and the
      other (i.e. Backup) in a Standby Mode. In case operations have to be
      switched to the Back-up Node OS, then the switch-over time from the
      Primary Node OS to the Back-up Node OS shall meet the IGFR requirements
      and the OAM operations on the SSS can be commenced from the Backup Node OS
      within IGFR stated requirements.

      The standby system runs the complete set of OSS platform software so as to
      permit the data to be kept in synchronisation. It is therefore an active
      system, actually running the platform software and applications.

      To access the application features from a backup NMC site the Node-OS
      terminals are connected to the Primary Node-OS via the DCN. This will give
      all operations staff access to a consistent picture of the SSS network."

<PAGE>   2165

                               CHANGE ORDER NO: 19
                                  ATTACHMENT 2

                       TNM EQUIPMENT DESCRIPTION (CCR115)

<PAGE>   2166

                               CHANGE ORDER NO: 19
                                 ATTACHMENT 2.a

<PAGE>   2167

                                                             CHANGE ORDER NO. 19
                                                 TO THE SUPPLY AGREEMENT BETWEEN
                                                             NEC CORPORATION AND
                                           ICO GLOBAL COMMUNICATIONS HOLDINGS BV
                                                                  ATTACHMENT 2.a

1.       The purpose of Contractor's Change Request No.115 is to modify the TNM
         Equipment Description to reflect the obsolescence of certain TNM
         hardware.

2.       As a result of CCR No. 115 the parties agree to amend:

         (a) Schedule 9, (Pricing Schedule) Appendix-2 III.5 TNM PRICE LIST. The
         amendments to the TNM PRICE LIST do not affect the current TNM
         Subsystem Price. The amendments to the TNM PRICE LIST are set out in
         Attachment 3.b to this Change Order.

         (b) Schedule 9 (Pricing Schedule) Section 3.2.3. These amendments are
         set out in Attachment 3.c to this Change Order.

3.       The parties recognise the need to duly reflect these agreed changes
         elsewhere within the Supply Agreement, as set out below:-

         -        IGFR Version 28.4. These amendments are set out in Attachment
                  3.d-1 to this Change Order

         -        Statement of Work Annex 1, Table 2 - Contractor's
                  Deliverables. These amendments are set out in Attachment 3.d-2
                  to this Change Order.

4.       The reference correspondence referable to CCR No. 115 is listed below.

         NEC correspondence:
         IUKC-1083 - 12/04/99; IUKC-1096 - 20/04/99.

         ICO correspondence:
         SA1606/WG8/19990510/PB - 10/05/99.

5.       The parties undertake to ensure that the required changes specified
         within paragraph 2 and 3 above, shall be completed within 3 months of
         the date of this Change Order or by such time as the parties shall
         otherwise agree. The parties agree that implementation of these changes
         shall be effective upon agreement without the need for the parties to
         formalise the incorporation of such agreed changes by way of further
         Change Order.

<PAGE>   2168

6.       The Parties agree that neither the Contractor nor any member of the NEC
         Team shall have any obligation to provide vendor financing to ICO
         pursuant to this Change Order.

7.       The parties agree that this Change Order shall be categorised as a
         Non-clause 15.1 Change Order and further agree to amend Schedule 9
         (Pricing Schedule), Table 24 of the Supply Agreement to record the
         position.

<PAGE>   2169

                               CHANGE ORDER NO: 19
                                 ATTACHMENT 2.b

               Amended Schedules - Schedule 9 (Pricing Schedule) -
                                   Appendix 2

<PAGE>   2170
                     III.5 TNM PRICE LIST (IN THOUSAND US$)

                   * [A TOTAL OF 12 PAGES HAVE BEEN REDACTED]

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   2171
                                        *
<PAGE>   2172
                                        *
<PAGE>   2173
                                        *
<PAGE>   2174
                               CHANGE ORDER NO: 19
                                 ATTACHMENT 2.c

                Amended Schedules - Schedule 9 (Pricing Schedule)
<PAGE>   2175
                                                              CHANGE ORDER NO.19
                                                 TO THE SUPPLY AGREEMENT BETWEEN
                                                             NEC CORPORATION AND
                                           ICO GLOBAL COMMUNICATIONS HOLDINGS BV
                                                                  ATTACHMENT 2.c

            REVISION OF SCHEDULE 9 (PRICING SCHEDULE) - SECTION 3.2.3
<PAGE>   2176
3.2.3. TNM

3.2.3.1. The TNM capacity expansion equipment comprises four parts:

         i.       Vocoder/mux (Voc/Mux) traffic expansion. Each Voc/Mux block
                  shall be provided for each SBS expansion block and support up
                  to 200 Erlangs.

         ii.      C&C rack (19 inch). One rack is required for Voc/Mux capacity
                  expansion of 1 and 1/4 blocks.

         iii.     Voice Codec Royalty per Voc/Mux Block.

         iv.      TNM(RPC) computer expansion. A TNM(RPC) may be required when a
                  TNM rated throughput exceeds   *   or BHCA exceeds
                     *   including inter-SAN traffic. The additional capacity
                  provided by a TNM (RPC) is   *   and   *   BHCA.

         v.       If BHCA per Voc/Mux block exceeds 8,800, including inter-SAN
                  traffic, upgrade of the Control Cards will be necessary.

         vi.      The Erlang size to be used in this calculation is that based
                  on the resource holding time in the TNM.

3.2.3.2.   The Contractor shall endeavour to exceed the target throughputs.
           However, unforeseen circumstances may change these formula, in which
           case the Contractor and the Purchaser agree to inform each other of
           such circumstances and agree to work together to minimise the impact
           of unforeseen conditions.

3.2.3.3.   The Voc/Mux Block, the C&C rack, the voice Codec Royalty, TNM (RPC)
           and Control Card price and associated equipment are shown in Table 4.

           The BHCA capacity of a Voc/Mux block can be upgraded from the
           standard capacity indicated in paragraph 3.2.3.1 (v) by the
           replacement of the Control Cards. Where a NEW Voc/Mux block is being
           ordered to expand the capacity of a TNM, the block can be supplied
           with the upgraded Control Cards at an ADDITIONAL cost of US$13,000
           per Control Card. Four Control Cards are required for each Voc/Mux
           block. The total price for a Voc/Mux block with the upgraded Control
           Cards would therefore be   *   . Where ICO wishes to upgrade the BHCA
           capacity of an EXISTING Voc/Mux block, the Control Cards in the block
           must be replaced with upgraded cards. The price for EACH replacement
           upgraded Control Card is US$   *   .

                 TABLE 4 - TNM TRAFFIC AND COMPUTER BLOCK PRICE

<TABLE>
<CAPTION>
    NOS.                    DESCRIPTION                    QUANTITY             PRICE (US$'000S)
    ----                    -----------                    --------             ----------------
<S>           <C>                                          <C>                 <C>
I             VOC/MUX BLOCK                                                          605.8

1             VOCODER/MUX Unit

1.1           Vocoder/Mux Card

1.2           Control Card
                                                                 *
1.3           I/O Card

1.4           19 inch 6RU Shelf

1.5           Power Supply Shelf
</TABLE>

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

<PAGE>   2177
<TABLE>
<S>           <C>                                          <C>             <C>
1.6           Fan Unit

2             Installation Materials

II            C&C RACK (19 INCH).

III           VOICE CODEC ROYALTY
              (SUBJECT TO PARAGRAPH 3.2.3.4.)

IV            TNM (RPC)

1.1           TNM Computer (RPC)

1.1.1         Sparc Processor
              RAM HDD, Ethernet Interfaces, 8mm Tape
              Drive and CD ROM Drive

1.2           Ethernet Hubs/Routers and Accessories

1.3           TNM O&M Software Licence                               *

1.4           Software Licences

1.4.1         Solaris Operating System with Media

1.4.2         SNMP-Runtime

1.4.3         An additional TNM O&M Software licence
              for management of 2 sets of 1:1 PRC.

V             RPN CPU UP GRADED CONTROL CARD

1.1           Future replacement of Control Card

1.2           Additional price of each Control Card,
              supplied as part of an order for a new
              Voc/Mux block with upgraded Control Cards
              (this price is in addition to the price
              shown in Item I above)
</TABLE>

3.2.3.4.   The limit to the Contractors liability for the Voice Codec Royalty is
              *   for the licence and   *   per channel. Should the
           charges for the Voice Codec exceed these limits, NEC will recharge
           ICO at cost the excess over and above   *   and   *   per
           channel.

3.2.3.5.   The Volume discount rates that apply to purchases of I) TNM Voc/Mux
           blocks and II) C&C Rack capacity are shown in Table 5.1 and Table
           5.2, respectively.

                    TABLE 5.1 - TNM VOC/MUX VOLUME DISCOUNTS

<TABLE>
<CAPTION>
     NUMBER OF VOC/MUX BLOCKS             DISCOUNT FACTOR
     ------------------------             ---------------
<S>                                       <C>
</TABLE>

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   2178
<TABLE>
<S>                                       <C>
     from 1            to 2

     from 3            to 5

     from 6            to 10
                                                *
    from 11            to 17

    from 18            to 29

    from 30          and above
</TABLE>

                    TABLE 5.2 - TNM C&C RACK VOLUME DISCOUNTS

<TABLE>
<CAPTION>

        NUMBER OF C&C RACK               DISCOUNT FACTOR
        ------------------               ---------------
<S>                                      <C>
     from 1            to 2

     from 3            to 4

     from 5            to 8                      *

     from 9            to 14

    from 15            to 23

    from 24          and above

</TABLE>

3.2.3.6.   The installation charges for the expansion of Voc/Mux and TNM (RPC)
           capacity of a TNM are shown in Table 6.

                   TABLE 6 - TNM EXPANSION INSTALLATION PRICES

<TABLE>
<CAPTION>

    NOS.                  DESCRIPTION                  QUANTITY               PRICE (US$'000S)
    ----                  -----------                  --------               ----------------
<S>           <C>                                    <C>                      <C>
1             VOC/MUX BLOCK EXPANSION

1.1           First Voc/Mux block per SAN              per block

1.2           Each Voc/Mux block in addition to        per block
              first block per SAN
                                                                                        *
2             TNM (RPC)

2.1           Per TNM (RPC) if as a separate         per TNM (RPC)
              installation

2.2           Per TNM (RPC) if installed at same     per TNM (RPC)
              time as capacity expansion

</TABLE>

3.2.3.7.   The discount rates that apply to the first Voc/Mux block installation
           charges are shown in Table 7. The number of SANs shows the number of
           SANs installed in the upgrade program.

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

<PAGE>   2179
                 TABLE 7 - FIRST EXPANSION BLOCK DISCOUNT RATES

<TABLE>
<CAPTION>
             NUMBER OF SANS                DISCOUNT FACTOR
             --------------                ---------------
<S>                                         <C>
                 1 to 3

                 4 to 5

                 6 to 7                            *

                 8 to 9

                   10

                11 to 12
</TABLE>

3.2.3.8.   The volume discount rates that apply to the installation charges for
           the additional Voc/Mux blocks per SAN are shown in Table 8.

                    TABLE 8 - ADDITIONAL BLOCK DISCOUNT RATES

<TABLE>
<CAPTION>
            NUMBER OF VOC/MUX             DISCOUNT FACTOR
                 BLOCKS
            -----------------             ---------------
<S>                                       <C>
                    1

                    2

                    3                             *

                    4

                    5

               6 and above
</TABLE>

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

<PAGE>   2180
                               CHANGE ORDER NO: 19
                                ATTACHMENT 2.d-1

               Amended Schedules - Schedule 13 - IGFR Version 28.4
<PAGE>   2181
                                                             CHANGE ORDER NO. 19
                                                 TO THE SUPPLY AGREEMENT BETWEEN
                                                             NEC CORPORATION AND
                                           ICO GLOBAL COMMUNICATIONS HOLDINGS BV
                                                                ATTACHMENT 2.d-1

9.3.5. TNM EQUIPMENT
                        9.3.5.1. TABLE 9-6 TNM EQUIPMENT

<TABLE>
<CAPTION>
ITEM                      DESCRIPTION                                SIZING RULE
----                      -----------                                -----------
<S>        <C>                                             <C>
1.         TNM

1.1        RPC

1.1.1      Each RPC consists of Sparc Processor, RAM,      13 calls/sec full performance
           HDD, Ethernet Interfaces, 8mm Tape Drive        17 calls/sec peak
           and CD ROM Drive                                (1+1 Redundancy)
                                                           1. Max. 2000 Erlangs per RPC redundant pair.

1.1.2      MMI with  2 x 10/100Bt  Ethernet ports          1 per RPC

1.1.3      Not Used

1.1.4      RPN Ethernet Hubs  10/100Bt                     4 per SAN for first 8RPN's. 2 per  16 RPNs
                                                           thereafter

1.1.5      Power Switchover                                1 Per Rack

1.1.6      19" C&C Rack                                    1 Per RPC

1.2        TNM Software License                            1 per TNM

1.3        Software Licences

1.3.1      Solaris Operating System with Media             1 per RPC for first 2 SANs

1.3.2      Solaris Operating System without Media          1 per RPC subsequent SANs

1.3.3      SNMP - Runtime                                  1 per SAN site (2 for ITC)
</TABLE>

<TABLE>
<S>       <C>                                    <C>
2         RPN SUBSYSTEM

2.1       FOR SAN

                                                 Required MUX/VOC channels

                                                 Traffic Channels +

                                                 Blocking +

                                                 Inter-site Traffic Channels +

                                                 Inefficiencies +

                                                 Signalling Channels +

                                                 Traffic Channels

                                                 PSTN Traffic in Erlangs converted to Ch

                                                 (@ 0.3% blocking)

                                                 Inter-site Traffic Channels

                                                 SBS Terminated Traffic in Erlangs converted to Ch
</TABLE>

                                                                      Page - 1/2
<PAGE>   2182
<TABLE>
<S>       <C>                                    <C>
                                                 (Based on 10% of PSTN traffic)

                                                 Plus quantity if required to maintain availability ratio. (0 in this case given
                                                 30% failure rate)

                                                 Inefficiencies

                                                 For channel manager handover, internal inefficiency is 1% per ChM.

                                                 Signalling Channels

                                                 Typically 1 per RPN No additional MUX/VOC channels required

                                                     TOTAL VOC/MUX CHANNELS REQUIRED

2.1.1      Vocoder/Mux Card                      Max 8 channels per card

2.1.2      RPN Processor                         Max 60 channels

2.1.3      19" 6RU Shelf                         1 per RPN

2.1.4      Power Unit

2.1.4.1    RPN Power Supply                      1 per RPN

2.1.4.2

2.1.5      Fan Unit                              1 per RPN

2.1.6      19" C&C Rack                          1 per 300 channels (min 4 initially)

                                                 E1'S SIZING

                                                 PSTN Traffic

                                                 PSTN traffic channels/30 +

                                                 (N+E+W+S traffic ch)/30 * (packing factor-1)*2

                                                 Note: (packing factor -1) >=1 (min 2 each N,S,E,W direction for redund)

                                                 SBS Traffic

                                                 2 Per ChM (each supports 160E)

                                                 TOTAL E1'S REQUIRED

2.2        NOT USED

2.3        NOT USED

2.4        INSTALLATION MATERIALS                1 per SAN
</TABLE>

                                                                      Page - 2/2
<PAGE>   2183
                               CHANGE ORDER NO: 19
                                ATTACHMENT 2.d-2

              Amended Schedules - Schedule 14 - Statement of Work,
                                Annex 1, Table 2

<PAGE>   2184
                               TNM EQUIPMENT LIST

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                FOR ICO-NET            SAN              SAN               SAN               SAN
ITEM      DESCRIPTION                                                FOR USA       FOR AUSTRALIA      FOR GERMANY        FOR SOUTH
 NO.                                                                 (TYPE 2)         (TYPE 1)         (TYPE 1)            AFRICA
                                                                                                                          (TYPE 1)
                                              --------------------------------------------------------------------------------------
                                                    Q'TY              Q'TY              Q'TY             Q'TY              Q'TY
------------------------------------------------------------------------------------------------------------------------------------
<S>       <C>                                   <C>                  <C>           <C>                <C>                <C>
          HARDWARE

1         TERRESTRIAL NETWORK
          MANAGEMENT (TNM)

1.1       TNM COMPUTER (RPC)                                            1                1                 1                 1
1.1.1     MMI with 2 x 10/100BT
          Ethernet ports                                                2                2                 2                 2
1.1.2     Each RPC consist of a
          Sparc Processor, RAM,
          HDD, Ethernet Interfaces,
          8mm Tape Drive and CD
          ROM Drive                                                     2                2                 2                 2
1.1.3     E1 Interface                                                  2                2                 2                 2

1.2       HI SPEED PRINTER -HP LASERJET 4MV                             1                1                 1                 1

1.3       ETHERNET HUBS/ROUTERS AND
          ACCESSORIES                                                   1                1                 1                 1

2         VOCODER/MUX

2.1       VOCODER/MUX UNIT (INITIAL
          SYSTEM)
2.1.1     Vocoder/Mux Card                                             55                56               56                56
2.1.2     Control Card                                                  7                7                 7                 7
2.1.3     19" 6RU Shelf                                                 7                7                 7                 7
2.1.4     Power Supply Shelf                                            7                7                 7                 7
2.1.5     Fan Unit                                                      7                7                 7                 7
2.1.6     19" C&C Rack                                                  4                4                 4                 4
2.1.7     Royality                                                      1                1                 1                 1

2.2       VOCODER/MUX UNIT (INITIAL
          SYSTEM UPGRADE)
2.2.1     Vocoder/Mux Card                                              9                8                 8                 8
2.2.2     Control Card                                                  1                1                 1                 1
2.2.3     19" 6RU Shelf                                                 1                1                 1                 1
2.2.4     Power Supply Shelf                                            1                1                 1                 1
2.2.5     Fan Unit                                                      1                1                 1                 1
2.2.6     Royality                                                      9                8                 8                 8

2.3       VOCODER/MUX UNIT
          (EXPANSION)
2.3.1     Vocoder/Mux Card                                                                                96                64
2.3.2     Control Card                                                                                    12                 8
2.3.3     19" 6RU Shelf                                                                                   12                 8
2.3.4     Power Supply Shelf                                                                              12                 8
2.3.5     Fan Unit                                                                                        12                 8
2.3.6     Royality                                                                                        96                64
2.3.7     Additional I/O card                                                                              3                 2

2.4       VOCODER/MUX UNIT (TEST
          BED)
2.4.1     Vocoder/Mux Card                                                               24
2.4.2     Control Card                                                                   3
2.4.3     19" 6RU Shelf                                                                  3
2.4.4     Power Supply Shelf                                                             3
2.4.5     Fan Unit                                                                       3
2.4.6     Royality                                                                       24

2.5       INSTALLATION MATERIALS                                        1                1                 1                 1

3         (NOT USED)

4         DOCUMENTATION                              1                  1                1                 1                 1

5         SPARES
5.1       Vocoder/Mux
5.1.1     Vocoder/Mux Card                                              2                2                 2                 2
5.1.2     Control Card                                                  2                2                 2                 2
5.1.3     Power Supply Shelf                                            2                2                 2                 2
5.1.4     Fan Unit                                                      2                2                 2                 2
5.1.5     I/O card                                                      2                2                 2                 2
5.1.6     LAN switch                                                    2                2                 2                 2
5.2       (not used)
</TABLE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                  SAN               SAN               SAN               SAN              SAN
ITEM      DESCRIPTION                          FOR INDIA         FOR CHILE        FOR BRAZIL        FOR MEXICO         FOR UAE
 NO.                                            (TYPE 2)          (TYPE 2)         (TYPE 2)           (TYPE 2)         (TYPE 2)

                                              --------------------------------------------------------------------------------------
                                                 Q'TY              Q'TY              Q'TY              Q'TY              Q'TY
------------------------------------------------------------------------------------------------------------------------------------
<S>       <C>                                  <C>               <C>              <C>               <C>                <C>
          HARDWARE

1         TERRESTRIAL NETWORK
          MANAGEMENT (TNM)

1.1       TNM COMPUTER (RPC)                       1                 1                 1                 1                1
1.1.1     MMI with 2 x 10/100BT
          Ethernet ports                           2                 2                 2                 2                2
1.1.2     Each RPC consist of a
          Sparc Processor, RAM,
          HDD, Ethernet Interfaces,
          8mm Tape Drive and CD
          ROM Drive                                2                 2                 2                 2                2
1.1.3     E1 Interface                             2                 2                 2                 2                2

1.2       HI SPEED PRINTER -HP LASERJET 4MV        1                 1                 1                 1                1

1.3       ETHERNET HUBS/ROUTERS AND
          ACCESSORIES                              1                 1                 1                 1                1

2         VOCODER/MUX

2.1       VOCODER/MUX UNIT (INITIAL
          SYSTEM)
2.1.1     Vocoder/Mux Card                        55                55                55                55                55
2.1.2     Control Card                             7                 7                 7                 7                7
2.1.3     19" 6RU Shelf                            7                 7                 7                 7                7
2.1.4     Power Supply Shelf                       7                 7                 7                 7                7
2.1.5     Fan Unit                                 7                 7                 7                 7                7
2.1.6     19" C&C Rack                             4                 4                 4                 4                4
2.1.7     Royality                                 1                 1                 1                 1                1

2.2       VOCODER/MUX UNIT (INITIAL
          SYSTEM UPGRADE)
2.2.1     Vocoder/Mux Card                         9                 9                 9                 9                9
2.2.2     Control Card                             1                 1                 1                 1                1
2.2.3     19" 6RU Shelf                            1                 1                 1                 1                1
2.2.4     Power Supply Shelf                       1                 1                 1                 1                1
2.2.5     Fan Unit                                 1                 1                 1                 1                1
2.2.6     Royality                                 9                 9                 9                 9                9

2.3       VOCODER/MUX UNIT
          (EXPANSION)
2.3.1     Vocoder/Mux Card                        96                32                96                64                96
2.3.2     Control Card                            12                 4                12                 8                12
2.3.3     19" 6RU Shelf                           12                 4                12                 8                12
2.3.4     Power Supply Shelf                      12                 4                12                 8                12
2.3.5     Fan Unit                                12                 4                12                 8                12
2.3.6     Royality                                96                32                96                64                96
2.3.7     Additional I/O card                      3                 1                 3                 2                3

2.4       VOCODER/MUX UNIT (TEST
          BED)
2.4.1     Vocoder/Mux Card
2.4.2     Control Card
2.4.3     19" 6RU Shelf
2.4.4     Power Supply Shelf
2.4.5     Fan Unit
2.4.6     Royality

2.5       INSTALLATION MATERIALS                   1                 1                 1                 1                1

3         (NOT USED)

4         DOCUMENTATION                            1                 1                 1                 1                1

5         SPARES
5.1       Vocoder/Mux
5.1.1     Vocoder/Mux Card                         2                 2                 2                 2                2
5.1.2     Control Card                             2                 2                 2                 2                2
5.1.3     Power Supply Shelf                       2                 2                 2                 2                2
5.1.4     Fan Unit                                 2                 2                 2                 2                2
5.1.5     I/O card                                 2                 2                 2                 2                2
5.1.6     LAN switch                               2                 2                 2                 2                2
5.2       (not used)
</TABLE>

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------------
                                                   SAN            SAN          SAN          NMC         NMC         TOTAL
ITEM      DESCRIPTION                         FOR INDONESIA    FOR CHINA    FOR KOREA     PRIMARY     BACK-UP
 NO.                                             (TYPE 2)       (TYPE 2)     (TYPE 1)

                                              ----------------------------------------------------------------------------------
                                                  Q'TY           Q'TY         Q'TY         Q'TY        Q'TY         Q'TY
--------------------------------------------------------------------------------------------------------------------------------
<S>       <C>                                 <C>              <C>          <C>           <C>         <C>           <C>
          HARDWARE

1         TERRESTRIAL NETWORK
          MANAGEMENT (TNM)

1.1       TNM COMPUTER (RPC)                        1              1            1                                    12
1.1.1     MMI with 2 x 10/100BT
          Ethernet ports                            2              2            2                                    24
1.1.2     Each RPC consist of a
          Sparc Processor, RAM,
          HDD, Ethernet Interfaces,
          8mm Tape Drive and CD
          ROM Drive                                 2              2            2                                    24
1.1.3     E1 Interface                              2              2            2                                    24

1.2       HI SPEED PRINTER -HP LASERJET 4MV         1              1            1                                    12

1.3       ETHERNET HUBS/ROUTERS AND
          ACCESSORIES                               1              1            1                                    12

2         VOCODER/MUX

2.1       VOCODER/MUX UNIT (INITIAL
          SYSTEM)
2.1.1     Vocoder/Mux Card                         55             55           56                                   664
2.1.2     Control Card                              7              7            7                                    84
2.1.3     19" 6RU Shelf                             7              7            7                                    84
2.1.4     Power Supply Shelf                        7              7            7                                    84
2.1.5     Fan Unit                                  7              7            7                                    84
2.1.6     19" C&C Rack                              4              4            4                                    48
2.1.7     Royality                                  1              1            1                                    12

2.2       VOCODER/MUX UNIT (INITIAL
          SYSTEM UPGRADE)
2.2.1     Vocoder/Mux Card                          9              9            8                                   104
2.2.2     Control Card                              1              1            1                                    12
2.2.3     19" 6RU Shelf                             1              1            1                                    12
2.2.4     Power Supply Shelf                        1              1            1                                    12
2.2.5     Fan Unit                                  1              1            1                                    12
2.2.6     Royality                                  9              9            8                                   104

2.3       VOCODER/MUX UNIT
          (EXPANSION)
2.3.1     Vocoder/Mux Card                         64             32           32                                   672
2.3.2     Control Card                              8              4            4                                    84
2.3.3     19" 6RU Shelf                             8              4            4                                    84
2.3.4     Power Supply Shelf                        8              4            4                                    84
2.3.5     Fan Unit                                  8              4            4                                    84
2.3.6     Royality                                 64             32           32                                   672
2.3.7     Additional I/O card                       2              1            1                                    21

2.4       VOCODER/MUX UNIT (TEST
          BED)
2.4.1     Vocoder/Mux Card                                                                                           24
2.4.2     Control Card                                                                                                3
2.4.3     19" 6RU Shelf                                                                                               3
2.4.4     Power Supply Shelf                                                                                          3
2.4.5     Fan Unit                                                                                                    3
2.4.6     Royality                                                                                                   24

2.5       INSTALLATION MATERIALS                    1              1            1                                    12

3         (NOT USED)

4         DOCUMENTATION                             1              1            1            1           1           15

5         SPARES
5.1       Vocoder/Mux
5.1.1     Vocoder/Mux Card                          2              2            2                                    24
5.1.2     Control Card                              2              2            2                                    24
5.1.3     Power Supply Shelf                        2              2            2                                    24
5.1.4     Fan Unit                                  2              2            2                                    24
5.1.5     I/O card                                  2              2            2                                    24
5.1.6     LAN switch                                2              2            2                                    24
5.2       (not used)
</TABLE>

                            Commercial in Confidence                Page 1 of 2
<PAGE>   2185
                               TNM EQUIPMENT LIST

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                 FOR ICO-NET            SAN              SAN               SAN               SAN
ITEM      DESCRIPTION                                                 FOR USA       FOR AUSTRALIA      FOR GERMANY        FOR SOUTH
 NO.                                                                  (TYPE 2)         (TYPE 1)         (TYPE 1)            AFRICA
                                                                                                                           (TYPE 1)
                                              --------------------------------------------------------------------------------------
                                                     Q'TY              Q'TY              Q'TY             Q'TY              Q'TY
------------------------------------------------------------------------------------------------------------------------------------
<S>       <C>                                    <C>                  <C>           <C>                <C>                <C>
6         INTERMEDIATE DISTRIBUTION
          FRAME                                                          1                1                 1                 1

          SOFTWARE LICENCE

1         TNM SOFTWARE LICENCE                                           1                1                 1                 1

2         SOLARIS SOFTWARE LICENCES FOR TNM                              1                1                 1                 1
2.1       Solaris Operating System
          with Media                                                                      1
2.2       Solaris Operating System
          without Media                                                  1                                  1                 1
2.3       SNMP - Runtime                                                 1                1                 1                 1

------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                 SAN               SAN               SAN               SAN              SAN
ITEM      DESCRIPTION                         FOR INDIA         FOR CHILE        FOR BRAZIL        FOR MEXICO         FOR UAE
 NO.                                           (TYPE 2)          (TYPE 2)         (TYPE 2)           (TYPE 2)         (TYPE 2)

                                              --------------------------------------------------------------------------------------
                                                Q'TY              Q'TY              Q'TY              Q'TY              Q'TY
------------------------------------------------------------------------------------------------------------------------------------
<S>       <C>                                 <C>               <C>              <C>               <C>                <C>
6         INTERMEDIATE DISTRIBUTION
          FRAME                                   1                 1                 1                 1                1

          SOFTWARE LICENCE

1         TNM SOFTWARE LICENCE                    1                 1                 1                 1                1

2         SOLARIS SOFTWARE LICENCES FOR TNM       1                 1                 1                 1                1
2.1       Solaris Operating System
          with Media
2.2       Solaris Operating System
          without Media                           1                 1                 1                 1                1
2.3       SNMP - Runtime                          1                 1                 1                 1                1

------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------
                                                   SAN            SAN          SAN         NMC        NMC      TOTAL
ITEM      DESCRIPTION                         FOR INDONESIA    FOR CHINA    FOR KOREA    PRIMARY    BACK-UP
 NO.                                             (TYPE 2)       (TYPE 2)     (TYPE 1)

                                              -----------------------------------------------------------------------------
                                                  Q'TY           Q'TY         Q'TY        Q'TY       Q'TY      Q'TY
---------------------------------------------------------------------------------------------------------------------------
<S>       <C>                                 <C>              <C>          <C>          <C>        <C>        <C>
6         INTERMEDIATE DISTRIBUTION
          FRAME                                     1              1            1                               12

          SOFTWARE LICENCE

1         TNM SOFTWARE LICENCE                      1              1            1                               12

2         SOLARIS SOFTWARE LICENCES FOR TNM         1              1            1           0          0
2.1       Solaris Operating System
          with Media                                                            1                                2
2.2       Solaris Operating System
          without Media                             1              1                                            10
2.3       SNMP - Runtime                            1              1            1           0          0        12

---------------------------------------------------------------------------------------------------------------------------
</TABLE>

                            Commercial in Confidence                Page 2 of 2
<PAGE>   2186
                               CHANGE ORDER NO: 19
                                  ATTACHMENT 3

               ANNEX 1 CONTRACTORS DELIVERABLES SBS EQUIPMENT LIST
                                    (CCR82)
<PAGE>   2187
                               CHANGE ORDER NO: 19
                                 ATTACHMENT 3.a
<PAGE>   2188
                                                             CHANGE ORDER NO. 19
                                                 TO THE SUPPLY AGREEMENT BETWEEN
                                                             NEC CORPORATION AND
                                           ICO GLOBAL COMMUNICATIONS HOLDINGS BV
                                                                  ATTACHMENT 3.a

1.    The purpose of Contractor Change Request No.82 is to revise the
      description of an item of SBS Equipment as detailed below.

2.    As a result of CCR No.82, the parties hereby agree to amend the SBS
      Equipment List in Annex 1 Schedule 14, Statement Of Work, as per
      Attachment - 4.b-1 to this Change Order.

3.    As a result of CCR No. 82, the parties hereby agree to amend the III.2 SBS
      PRICE LIST in Schedule 9, APPENDIX-2 as per Attachment - 4.b-2 to this
      Change Order.

4.    The reference correspondence referable to CCR Nos. 82 is listed below.

      (NEC correspondence)
      IUKC-523 (dated 30/04/98): IUKC-631 (dated 14/07/98)
      (ICO correspondence)
      SA0828/WG8119980507/PR (dated 07/05/98): SA0982/WG7/19980717/GW
      (dated 17/07/98)

5.    The parties undertake to ensure that the required changes specified within
      paragraphs 2 and 3 above, shall be completed within 3 months of the date
      of this Change Order or by such time as the parties shall otherwise agree.
      The parties agree that implementation of these changes shall be effective
      upon agreement without the need for the parties to formalise the
      incorporation of such agreed changes by way of further Change Order.

6.    The parties agree that this Change Order shall be categorised as a
      Non-clause 15.1 Change Order and further agree to amend Schedule 9
      (Pricing Schedule), Table 24 of the Supply Agreement to record the
      position.
<PAGE>   2189
                               CHANGE ORDER NO: 19
                                 ATTACHMENT 3.b

                           AMENDED SCHEDULES AND ANNEX

                     ATTACHMENT 3.b-1: SCHEDULE 14, ANNEX-1

                          ATTACHMENT 3.b-2: SCHEDULE 9

<PAGE>   2190
                                                             Change Order No. 19
                                                                Attachment 3.b-1

SBS EQUIPMENT LIST

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------------
                                                                SAN           SAN            SAN           SAN           SAN
ITEM NO.                     DESCRIPTION                    FOR ICO-NET     FOR USA          FOR           FOR        FOR SOUTH
                                                                                          AUSTRALIA      GERMANY        AFRICA
                                                                           (TYPE 2)        (TYPE 1)     (TYPE 1)       (TYPE 1)
                                                            --------------------------------------------------------------------
                                                             QTY /MMS       QTY /MMS      QTY /MMS      QTY /MMS       QTY /MMS
--------------------------------------------------------------------------------------------------------------------------------
<S>         <C>                                             <C>            <C>            <C>           <C>           <C>
            HARDWARE

1           CHANNEL UNIT
1.1         Channel Unit Chassis (CUC)                                        18             18            30             26
1.1.1       Slot Processor Module (SPM)                                       90             90            150            130
1.1.2       Modulator Demodulator Module (MDM)                                162            162           270            234
1.1.3       Burst Repeater Module   (BRM)                                     20             20            20             20
1.1.4       Clock Distribution Unit (CDM)                                     14             14            22             22
1.1.5       Common Functions Module (CFM)                                     24             24            48             40
1.2         Channel Unit Rack Base Units                                       7              7            11             11
1.2.1       T1 Cables                                                         36             36            60             52
1.2.2       Software Licences                                                 18             18            30             26
1.2.3       Fan Tray                                                          18             18            30             26

2           CHANNEL MANAGER
2.1         Channel Manager Chassis (ChM)                                      3              3             6              5
2.1.1       G.703 Interface                                                   27             27            54             45
2.1.2       Control Processor Modules (CPM)                                   33             33            66             55
2.1.3       Switching Transcoder Module (STM)                                 63             63            126            105
2.1.4       EXM                                                                9              9            18             15
2.1.5       10 Base2 Ethernet                                                  3              3             6              5
2.1.6       Fan                                                                3              3             6              5
2.1.7       Channel Manager Rack (CMR)                                         1              1             2              2
2.1.8       Software Licences                                                  3              3             6              5

3           DISTRIBUTION RACKS
3.1         IF Distribution Subsystem (IDS)                                    1              1             1              1
3.1.1       SBS Distribution Racks, Tx and Rx                                  4              4             4              4
3.1.2       IDS Expansion Kits                                                 0              0             3              2
3.2         Clock Distribution Subsystem (CDS)                                 1              1             1              1
3.2.1       GPS Receiver w/ Rb Oscillator                                      2              2             2              2
3.2.2       10 MHz Outputs (SBS)                                           Multiple       Multiple      Multiple       Multiple
3.2.3       GPS Time Code Outputs (SBS)                                    Multiple       Multiple      Multiple       Multiple
3.2.4       Network Time Server (NTS)                                          2              2             2              2
3.2.5       CDS Expansion Kit                                                  0              0             3              2

<CAPTION>

------------------------------------------------------------------------------------------------------------------------------
                                                             SAN            SAN            SAN           SAN           SAN
ITEM NO.                     DESCRIPTION                   FOR INDIA     FOR CHILE      FOR BRAZIL       FOR         FOR UAE
                                                           (TYPE 2)       (TYPE 2)       (TYPE 2)       MEXICO      (TYPE 2)
                                                                                                       (TYPE 2)
                                                           -------------------------------------------------------------------
                                                           QTY /MMS       QTY /MMS       QTY /MMS      QTY /MMS      QTY /MMS
------------------------------------------------------------------------------------------------------------------------------
<S>         <C>                                            <C>           <C>            <C>            <C>          <C>
            HARDWARE

1           CHANNEL UNIT
1.1         Channel Unit Chassis (CUC)                        30             22             30            26            30
1.1.1       Slot Processor Module (SPM)                       150            110            150           130           150
1.1.2       Modulator Demodulator Module (MDM)                270            198            270           234           270
1.1.3       Burst Repeater Module   (BRM)                     20             20             20            20            20
1.1.4       Clock Distribution Unit (CDM)                     22             18             22            22            22
1.1.5       Common Functions Module (CFM)                     48             32             48            40            48
1.2         Channel Unit Rack Base Units                      11              9             11            11            11
1.2.1       T1 Cables                                         60             44             60            52            60
1.2.2       Software Licences                                 30             22             30            26            30
1.2.3       Fan Tray                                          30             22             30            26            30

2           CHANNEL MANAGER
2.1         Channel Manager Chassis (ChM)                      6              4              6             5             6
2.1.1       G.703 Interface                                   54             36             54            45            54
2.1.2       Control Processor Modules (CPM)                   66             44             66            55            66
2.1.3       Switching Transcoder Module (STM)                 126            84             126           105           126
2.1.4       EXM                                               18             12             18            15            18
2.1.5       10 Base2 Ethernet                                  6              4              6             5             6
2.1.6       Fan                                                6              4              6             5             6
2.1.7       Channel Manager Rack (CMR)                         2              2              2             2             2
2.1.8       Software Licences                                  6              4              6             5             6

3           DISTRIBUTION RACKS
3.1         IF Distribution Subsystem (IDS)                    1              1              1             1             1
3.1.1       SBS Distribution Racks, Tx and Rx                  4              4              4             4             4
3.1.2       IDS Expansion Kits                                 3              1              3             2             3
3.2         Clock Distribution Subsystem (CDS)                 1              1              1             1             1
3.2.1       GPS Receiver w/ Rb Oscillator                      2              2              2             2             2
3.2.2       10 MHz Outputs (SBS)                           Multiple       Multiple       Multiple      Multiple      Multiple
3.2.3       GPS Time Code Outputs (SBS)                    Multiple       Multiple       Multiple      Multiple      Multiple
3.2.4       Network Time Server (NTS)                          2              2              2             2             2
3.2.5       CDS Expansion Kit                                  3              1              3             2             3

<CAPTION>

----------------------------------------------------------------------------------------------------------------------------------
                                                      SAN           SAN           SAN           NMC          NMC          TOTAL
ITEM                     DESCRIPTION                  FOR        FOR CHINA     FOR KOREA      PRIMARY      BACK-UP
NO.                                                INDONESIA     (TYPE 2)      (TYPE 1)
                                                    (TYPE 2)
                                                   -------------------------------------------------------------------------------
                                                    QTY /MMS      QTY /MMS      QTY /MMS      QTY /MMS      QTY /MMS     QTY /MMS
----------------------------------------------------------------------------------------------------------------------------------
<S>     <C>                                        <C>           <C>           <C>            <C>          <C>           <C>
        HARDWARE

1       CHANNEL UNIT
1.1     Channel Unit Chassis (CUC)                     26            22            22                                       300
1.1.1   Slot Processor Module (SPM)                    130           110           110                                     1,500
1.1.2   Modulator Demodulator Module (MDM)             234           198           198                                     2,700
1.1.3   Burst Repeater Module   (BRM)                  20            20            20                                       240
1.1.4   Clock Distribution Unit (CDM)                  22            18            18                                       236
1.1.5   Common Functions Module (CFM)                  40            32            32                                       456
1.2     Channel Unit Rack Base Units                   11             9             9                                       118
1.2.1   T1 Cables                                      52            44            44                                       600
1.2.2   Software Licences                              26            22            22                                       300
1.2.3   Fan Tray                                       26            22            22                                       300

2       CHANNEL MANAGER
2.1     Channel Manager Chassis (ChM)                   5             4             4                                       57
2.1.1   G.703 Interface                                45            36            36                                       513
2.1.2   Control Processor Modules (CPM)                55            44            44                                       627
2.1.3   Switching Transcoder Module (STM)              105           84            84                                      1,197
2.1.4   EXM                                            15            12            12                                       171
2.1.5   10 Base2 Ethernet                               5             4             4                                       57
2.1.6   Fan                                             5             4             4                                       57
2.1.7   Channel Manager Rack (CMR)                      2             2             2                                       22
2.1.8   Software Licences                               5             4             4                                       57

3       DISTRIBUTION RACKS
3.1     IF Distribution Subsystem (IDS)                 1             1             1                                       12
3.1.1   SBS Distribution Racks, Tx and Rx               4             4             4                                       48
3.1.2   IDS Expansion Kits                              2             1             1                                       21
3.2     Clock Distribution Subsystem (CDS)              1             1             1                                       12
3.2.1   GPS Receiver w/ Rb Oscillator                   2             2             2                                       24
3.2.2   10 MHz Outputs (SBS)                        Multiple      Multiple      Multiple                                 Multiple
3.2.3   GPS Time Code Outputs (SBS)                 Multiple      Multiple      Multiple                                 Multiple
3.2.4   Network Time Server (NTS)                       2             2             2                                       24
3.2.5   CDS Expansion Kit                               2             1             1                                       21
</TABLE>

                            Commercial In Confidence
<PAGE>   2191
                                                             Change Order No. 19
                                                                Attachment 3.b-1

SBS EQUIPMENT LIST

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------------
                                                                SAN           SAN            SAN           SAN           SAN
ITEM                         DESCRIPTION                    FOR ICO-NET     FOR USA          FOR           FOR        FOR SOUTH
NO.                                                                                       AUSTRALIA      GERMANY        AFRICA
                                                                           (TYPE 2)        (TYPE 1)     (TYPE 1)       (TYPE 1)
                                                            --------------------------------------------------------------------
                                                             QTY /MMS       QTY /MMS      QTY /MMS      QTY /MMS       QTY /MMS
--------------------------------------------------------------------------------------------------------------------------------
<S>         <C>                                             <C>             <C>           <C>           <C>           <C>
            INSTALLATION MATERIALS (INCLS
            POWER/SIGNAL CABLES)
4.1         Power Cables                                                       42            42            42             42
4.2         I/F Cables                                                         48            48            48             48
4.3         LAN Cables                                                         28            28            28             28
4.4         Sync Cabling                                                       60            60            60             60

5           SBS OMC
5.1         SUN Ultra 2 Server                                                  1             1             1              1
5.2         LEX-OPTRA Printer                                                   1             1             1              1
5.3         SUN Ultra 1 workstation                                             1             1             1              1
5.4         Oracle Relational DBMS                                              1             1             1              1
5.5         SUN Solstice Enterprise Manager                                     1             1             1              1

6           LOCAL SRMS
6.1         SUN File Server (E5000 Series)                                      2             2             2              2
6.2         Mirror Disk Drives (included in
            E5000 Servers)
6.3         Rack (included in E5000 Servers)
6.4         Operating system software license for
            E5000 Server                                                        1             1             1              1

7           TEST FIXTURES / TEST EQUIPMENT                                      *
            (* ; Equipment will be used during the
            test period at the HNS facilities in
            India & USA and not at the SAN sites.)
7.1         Channel Unit
7.1.1       CUBS                                                               54
7.1.2       Channel Unit Chassis (CUC)                                         12
7.1.3       Slot Processor Module (SPM)                                        60
7.1.4       Modulator Distribution Module (MDM)                                108
7.1.5       Clock Distribution Unit (CDM)                                      12
7.1.6       Common Functions Module (CFM)                                      24
7.1.7       Channel Unit Rack Base Units                                        4
7.1.8       T1 Cables                                                          24
7.1.9       Base Components
7.1.10      Fan Trays
7.1.11      Misc pins, circuit breakers, connectors

7.2         Channel Manager
7.2.1       Channel Manager Chassis (ChM)                                       2

<CAPTION>

-------------------------------------------------------------------------------------------------------------------------------
                                                              SAN            SAN            SAN           SAN           SAN
ITEM                         DESCRIPTION                    FOR INDIA     FOR CHILE      FOR BRAZIL       FOR         FOR UAE
NO.                                                         (TYPE 2)       (TYPE 2)       (TYPE 2)       MEXICO      (TYPE 2)
                                                                                                        (TYPE 2)
                                                            -------------------------------------------------------------------
                                                            QTY /MMS       QTY /MMS       QTY /MMS      QTY /MMS      QTY /MMS
-------------------------------------------------------------------------------------------------------------------------------
<S>         <C>                                             <C>           <C>            <C>            <C>          <C>
            INSTALLATION MATERIALS (INCLS
            POWER/SIGNAL CABLES)
4.1         Power Cables                                       42            42             42             42            42
4.2         I/F Cables                                         48            48             48             48            48
4.3         LAN Cables                                         28            28             28             28            28
4.4         Sync Cabling                                       60            60             60             60            60

5           SBS OMC
5.1         SUN Ultra 2 Server                                  1             1              1              1             1
5.2         LEX-OPTRA Printer                                   1             1              1              1             1
5.3         SUN Ultra 1 workstation                             1             1              1              1             1
5.4         Oracle Relational DBMS                              1             1              1              1             1
5.5         SUN Solstice Enterprise Manager                     1             1              1              1             1

6           LOCAL SRMS
6.1         SUN File Server (E5000 Series)                      2             2              2              2             2
6.2         Mirror Disk Drives (included in
            E5000 Servers)
6.3         Rack (included in E5000 Servers)
6.4         Operating system software license for
            E5000 Server                                        1             1              1              1             1

7           TEST FIXTURES / TEST EQUIPMENT                      *
            (* ; Equipment will be used during the
            test period at the HNS facilities in
            India & USA and not at the SAN sites.)
7.1         Channel Unit
7.1.1       CUBS                                               32
7.1.2       Channel Unit Chassis (CUC)                          7
7.1.3       Slot Processor Module (SPM)                        35
7.1.4       Modulator Distribution Module (MDM)                63
7.1.5       Clock Distribution Unit (CDM)                       7
7.1.6       Common Functions Module (CFM)                      14
7.1.7       Channel Unit Rack Base Units                        3
7.1.8       T1 Cables                                          14
7.1.9       Base Components
7.1.10      Fan Trays
7.1.11      Misc pins, circuit breakers, connectors

7.2         Channel Manager
7.2.1       Channel Manager Chassis (ChM)                       2

<CAPTION>

----------------------------------------------------------------------------------------------------------------------------------
                                                      SAN           SAN           SAN           NMC          NMC          TOTAL
ITEM                    DESCRIPTION                   FOR        FOR CHINA     FOR KOREA      PRIMARY      BACK-UP
NO.                                                INDONESIA     (TYPE 2)      (TYPE 1)
                                                    (TYPE 2)
                                                   -------------------------------------------------------------------------------
                                                    QTY /MMS      QTY /MMS      QTY /MMS      QTY /MMS      QTY /MMS     QTY /MMS
----------------------------------------------------------------------------------------------------------------------------------
<S>    <C>                                         <C>           <C>           <C>            <C>          <C>           <C>
       INSTALLATION MATERIALS (INCLS
       POWER/SIGNAL CABLES)
4.1    Power Cables                                    42            42            42                                       504
4.2    I/F Cables                                      48            48            48                                       576
4.3    LAN Cables                                      28            28            28                                       336
4.4    Sync Cabling                                    60            60            60                                       720

5      SBS OMC
5.1    SUN Ultra 2 Server                               1             1             1                                       12
5.2    LEX-OPTRA Printer                                1             1             1                                       12
5.3    SUN Ultra 1 workstation                          1             1             1                                       12
5.4    Oracle Relational DBMS                           1             1             1                                       12
5.5    SUN Solstice Enterprise Manager                  1             1             1                                       12

6      LOCAL SRMS
6.1    SUN File Server (E5000 Series)                   2             2             2                                       24
6.2    Mirror Disk Drives (included in
       E5000 Servers)
6.3    Rack (included in E5000 Servers)
6.4    Operating system software license for
       E5000 Server                                     1             1             1                                       12

7      TEST FIXTURES / TEST EQUIPMENT
       (* ; Equipment will be used during the
       test period at the HNS facilities in
       India & USA and not at the SAN sites.)
7.1    Channel Unit
7.1.1  CUBS                                                                                                                 86
7.1.2  Channel Unit Chassis (CUC)                                                                                           19
7.1.3  Slot Processor Module (SPM)                                                                                          95
7.1.4  Modulator Distribution Module (MDM)                                                                                  171
7.1.5  Clock Distribution Unit (CDM)                                                                                        19
7.1.6  Common Functions Module (CFM)                                                                                        38
7.1.7  Channel Unit Rack Base Units                                                                                          7
7.1.8  T1 Cables                                                                                                            38
7.1.9  Base Components
7.1.10 Fan Trays
7.1.11 Misc pins, circuit breakers, connectors

7.2    Channel Manager
7.2.1  Channel Manager Chassis (ChM)                                                                                         4
</TABLE>

                            Commercial In Confidence
<PAGE>   2192
                                                             Change Order No. 19
                                                                Attachment 3.b-1

SBS EQUIPMENT LIST

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------------
                                                                SAN           SAN            SAN           SAN           SAN
ITEM                         DESCRIPTION                    FOR ICO-NET     FOR USA          FOR           FOR        FOR SOUTH
NO.                                                                                       AUSTRALIA      GERMANY        AFRICA
                                                                           (TYPE 2)        (TYPE 1)     (TYPE 1)       (TYPE 1)
                                                            --------------------------------------------------------------------
                                                             QTY /MMS       QTY /MMS      QTY /MMS      QTY /MMS       QTY /MMS
--------------------------------------------------------------------------------------------------------------------------------
<S>         <C>                                             <C>            <C>            <C>           <C>           <C>
7.2.2       G.703 Interface                                                    26
7.2.3       Control Processor Modules (CPM)                                    26
7.2.4       Channel Access Processor (CAP)                                     10
7.2.5       Channel Control Processor (CCP)                                     8
7.2.6       Global Resource Processor (GRP)                                     4
7.2.7       Switching Transcoder Module (STM)                                  42
7.2.8       10 Base2 Ethernet                                                   2
7.2.9       Channel Manager Rack (CMR) w2 Chassis                               1
7.2.10      Fan                                                                 2
7.2.11      E1 Cables                                                          20

7.3         Processing Equipment
7.3.1       SBS OMC                                                             1
7.3.2       Local SRMS                                                          1
7.3.3       OPS Console                                                         1
7.3.4       Ethernet Switch                                                     1

7.4         DISTRIBUTION RACKS
7.4.1       IF Distribution Subsystem (IDS)                                     1
7.4.2       Clock Distribution Subsystem (CDS)                                  1

7.5         Installation Materials Including
             power/ signal cables
7.5.1       Power Cables                                                       30
7.5.2       I/F cables                                                         32
7.5.3       LAN Cables                                                          2
7.5.4       Sync Cabling                                                       40

7.6         Power System                                                        1

7.7         Specialized Test Equipment
7.7.1       Traffic Burst Generator                                             1
7.7.2       Signalling Burst Generator                                          1
7.7.3       BER Analyzer                                                        2
7.7.4       SCAT Test Bed                                                       1
7.7.5       Lab Power Supplies                                                  6
7.7.6       RF Combiners / Splitters                                           10
7.7.7       Misc Baseband Combiners / Splitters                                20

8           CLOCK DISTRIBUTION SYSTEM
8.1         Engineering Development                              71

<CAPTION>

-------------------------------------------------------------------------------------------------------------------------------
                                                              SAN            SAN            SAN           SAN           SAN
ITEM                         DESCRIPTION                    FOR INDIA     FOR CHILE      FOR BRAZIL       FOR         FOR UAE
NO.                                                         (TYPE 2)       (TYPE 2)       (TYPE 2)       MEXICO      (TYPE 2)
                                                                                                        (TYPE 2)
                                                            -------------------------------------------------------------------
                                                            QTY /MMS       QTY /MMS       QTY /MMS      QTY /MMS      QTY /MMS
-------------------------------------------------------------------------------------------------------------------------------
<S>         <C>                                             <C>           <C>            <C>            <C>          <C>
7.2.2       G.703 Interface                                    26
7.2.3       Control Processor Modules (CPM)                    26
7.2.4       Channel Access Processor (CAP)                     10
7.2.5       Channel Control Processor (CCP)                     8
7.2.6       Global Resource Processor (GRP)                     4
7.2.7       Switching Transcoder Module (STM)                  42
7.2.8       10 Base2 Ethernet                                   2
7.2.9       Channel Manager Rack (CMR) w2 Chassis               1
7.2.10      Fan                                                 2
7.2.11      E1 Cables                                          20

7.3         Processing Equipment
7.3.1       SBS OMC                                             1
7.3.2       Local SRMS                                          1
7.3.3       OPS Console                                         1
7.3.4       Ethernet Switch                                     1

7.4         DISTRIBUTION RACKS
7.4.1       IF Distribution Subsystem (IDS)                     1
7.4.2       Clock Distribution Subsystem (CDS)                  1

7.5         Installation Materials Including
             power/ signal cables
7.5.1       Power Cables                                       20
7.5.2       I/F cables                                         24
7.5.3       LAN Cables                                          1
7.5.4       Sync Cabling                                       30

7.6         Power System                                        1

7.7         Specialized Test Equipment
7.7.1       Traffic Burst Generator                             1
7.7.2       Signalling Burst Generator                          1
7.7.3       BER Analyzer                                        2
7.7.4       SCAT Test Bed                                       0
7.7.5       Lab Power Supplies                                  0
7.7.6       RF Combiners / Splitters                            5
7.7.7       Misc Baseband Combiners / Splitters                 5

8           CLOCK DISTRIBUTION SYSTEM
8.1         Engineering Development

<CAPTION>

----------------------------------------------------------------------------------------------------------------------------------
                                                      SAN           SAN           SAN           NMC          NMC          TOTAL
ITEM                      DESCRIPTION                 FOR        FOR CHINA     FOR KOREA      PRIMARY      BACK-UP
NO.                                                INDONESIA     (TYPE 2)      (TYPE 1)
                                                    (TYPE 2)
                                                   -------------------------------------------------------------------------------
                                                    QTY /MMS      QTY /MMS      QTY /MMS      QTY /MMS      QTY /MMS     QTY /MMS
----------------------------------------------------------------------------------------------------------------------------------
<S>      <C>                                       <C>           <C>           <C>            <C>          <C>           <C>
7.2.2    G.703 Interface                                                                                                    52
7.2.3    Control Processor Modules (CPM)                                                                                    52
7.2.4    Channel Access Processor (CAP)                                                                                     20
7.2.5    Channel Control Processor (CCP)                                                                                    16
7.2.6    Global Resource Processor (GRP)                                                                                     8
7.2.7    Switching Transcoder Module (STM)                                                                                  84
7.2.8    10 Base2 Ethernet                                                                                                   4
7.2.9    Channel Manager Rack (CMR) w2 Chassis                                                                               2
7.2.10   Fan                                                                                                                 4
7.2.11   E1 Cables                                                                                                          40

7.3      Processing Equipment
7.3.1    SBS OMC                                                                                                             2
7.3.2    Local SRMS                                                                                                          2
7.3.3    OPS Console                                                                                                         2
7.3.4    Ethernet Switch                                                                                                     2

7.4      DISTRIBUTION RACKS
7.4.1    IF Distribution Subsystem (IDS)                                                                                     2
7.4.2    Clock Distribution Subsystem (CDS)                                                                                  2

7.5      Installation Materials Including
          power/ signal cables
7.5.1    Power Cables                                                                                                       50
7.5.2    I/F cables                                                                                                         56
7.5.3    LAN Cables                                                                                                          3
7.5.4    Sync Cabling                                                                                                       70

7.6      Power System                                                                                                        2

7.7      Specialized Test Equipment
7.7.1    Traffic Burst Generator                                                                                             2
7.7.2    Signalling Burst Generator                                                                                          2
7.7.3    BER Analyzer                                                                                                        4
7.7.4    SCAT Test Bed                                                                                                       1
7.7.5    Lab Power Supplies                                                                                                  6
7.7.6    RF Combiners / Splitters                                                                                           15
7.7.7    Misc Baseband Combiners / Splitters                                                                                25

8        CLOCK DISTRIBUTION SYSTEM
8.1      Engineering Development
</TABLE>

                            Commercial In Confidence
<PAGE>   2193
                                                             Change Order No. 19
                                                                Attachment 3.b-1

SBS EQUIPMENT LIST

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------------
                                                                SAN           SAN            SAN           SAN           SAN
ITEM                         DESCRIPTION                    FOR ICO-NET     FOR USA          FOR           FOR        FOR SOUTH
NO.                                                                                       AUSTRALIA      GERMANY        AFRICA
                                                                           (TYPE 2)        (TYPE 1)     (TYPE 1)       (TYPE 1)
                                                            ---------------------------------------------------------------------
                                                             QTY /MMS       QTY /MMS      QTY /MMS      QTY /MMS       QTY /MMS
---------------------------------------------------------------------------------------------------------------------------------
<S>         <C>                                             <C>            <C>            <C>           <C>           <C>
8.2         Equipment - 12 SANs
8.2.1       10 MHz Fiber Optic Outputs                                       5 Sets         5 Sets        5 Sets        5 Sets
8.2.2       GPS Time Code Fiber Optic Outputs                                5 Sets         5 Sets        5 Sets        5 Sets
8.2.3       10 MHz Outputs                                                   3 Sets         3 Sets        3 Sets        3 Sets
8.2.4       IRIG-B Outputs                                                   6 Sets         6 Sets        6 Sets        6 Sets
8.2.5       1 PPS Outputs                                                    2 Sets         2 Sets        2 Sets        2 Sets
8.2.6       GPS Time Code Outputs                                            2 Sets         2 Sets        2 Sets        2 Sets

9           SYSTEM INTEGRATION SUPPORT FACILITY AT
            NEC AUSTRALIA                                                                     **
            (** ; Equipment will be used during the
            test period at NEC Australia facility
            and not at SAN site.)
9.1         Engineering Support                                                                9
9.2         Lab Equipment
9.2.1       Channel Unit w/modules                                                             3
9.2.2       Channel Unit Base                                                                  1
9.2.3       Channel Manager (1 chassis modules)                                                1
9.2.4       Mini CDS                                                                           1
9.2.5       Mini IDS                                                                           1
9.2.6       Power Supply (-48V and 24V)                                                        1
9.2.7       Lan Hub and Cabling                                                                1
9.2.8       LSRMS (non-redundant)                                                              1
9.2.8       OMC (non-redundant)                                                                1

10          SBS DC POWER SYSTEM (AC/DC CONVERTORS
            & 2 HR BATTERY BANK)                                                1              1             1             1
10.1        Battery Bank                                                        1              1             1             1
10.2        Rectifier Rack                                                      1              1             1             1
10.3        Power Distribution Rack                                             1              1             1             1
10.4        Installation Materials                                            1 Lot          1 Lot         1 Lot         1 Lot
10.5        Expansion DC Power                                                  0              0             3             2

11          CE MARK COMPLIANCE FOR SAN CHM, CU,
            IF DISTRIBUTION & CLOCK DISTRIBUTION
            NOTE: One site qualified to meet CE
            per EN55022 Class A.
11.1        Engineering Development                             139
11.2        Test & Certification                                                               7             7
11.3        Equipment

12          SPARE PARTS

<CAPTION>

--------------------------------------------------------------------------------------------------------------------------------
                                                              SAN            SAN            SAN           SAN           SAN
ITEM                         DESCRIPTION                    FOR INDIA     FOR CHILE      FOR BRAZIL       FOR         FOR UAE
NO.                                                         (TYPE 2)       (TYPE 2)       (TYPE 2)       MEXICO      (TYPE 2)
                                                                                                        (TYPE 2)
                                                            --------------------------------------------------------------------
                                                            QTY /MMS       QTY /MMS       QTY /MMS      QTY /MMS      QTY /MMS
--------------------------------------------------------------------------------------------------------------------------------
<S>         <C>                                             <C>           <C>            <C>            <C>          <C>
8.2         Equipment - 12 SANs
8.2.1       10 MHz Fiber Optic Outputs                       5 Sets         5 Sets         5 Sets        5 Sets        5 Sets
8.2.2       GPS Time Code Fiber Optic Outputs                5 Sets         5 Sets         5 Sets        5 Sets        5 Sets
8.2.3       10 MHz Outputs                                   3 Sets         3 Sets         3 Sets        3 Sets        3 Sets
8.2.4       IRIG-B Outputs                                   6 Sets         6 Sets         6 Sets        6 Sets        6 Sets
8.2.5       1 PPS Outputs                                    2 Sets         2 Sets         2 Sets        2 Sets        2 Sets
8.2.6       GPS Time Code Outputs                            2 Sets         2 Sets         2 Sets        2 Sets        2 Sets

9           SYSTEM INTEGRATION SUPPORT FACILITY AT
            NEC AUSTRALIA
            (** ; Equipment will be used during the
            test period at NEC Australia facility
            and not at SAN site.)
9.1         Engineering Support
9.2         Lab Equipment
9.2.1       Channel Unit w/modules
9.2.2       Channel Unit Base
9.2.3       Channel Manager (1 chassis modules)
9.2.4       Mini CDS
9.2.5       Mini IDS
9.2.6       Power Supply (-48V and 24V)
9.2.7       Lan Hub and Cabling
9.2.8       LSRMS (non-redundant)
9.2.8       OMC (non-redundant)

10          SBS DC POWER SYSTEM (AC/DC CONVERTORS
            & 2 HR BATTERY BANK)                                1              1              1             1             1
10.1        Battery Bank                                        1              1              1             1             1
10.2        Rectifier Rack                                      1              1              1             1             1
10.3        Power Distribution Rack                             1              1              1             1             1
10.4        Installation Materials                            1 Lot          1 Lot          1 Lot         1 Lot         1 Lot
10.5        Expansion DC Power                                  3              1              3             2             3

11          CE MARK COMPLIANCE FOR SAN CHM, CU,
            IF DISTRIBUTION & CLOCK DISTRIBUTION
            NOTE: One site qualified to meet CE
            per EN55022 Class A.
11.1        Engineering Development
11.2        Test & Certification
11.3        Equipment

12          SPARE PARTS

<CAPTION>

----------------------------------------------------------------------------------------------------------------------------------
                                                        SAN           SAN           SAN          NMC         NMC          TOTAL
ITEM                      DESCRIPTION                   FOR        FOR CHINA     FOR KOREA     PRIMARY     BACK-UP
NO.                                                  INDONESIA     (TYPE 2)      (TYPE 1)
                                                      (TYPE 2)
                                                     -----------------------------------------------------------------------------
                                                      QTY /MMS      QTY /MMS      QTY /MMS     QTY /MMS     QTY /MMS     QTY /MMS
----------------------------------------------------------------------------------------------------------------------------------
<S>      <C>                                         <C>           <C>           <C>           <C>         <C>           <C>
8.2      Equipment - 12 SANs
8.2.1    10 MHz Fiber Optic Outputs                    5 Sets        5 Sets        5 Sets                                 60 Sets
8.2.2    GPS Time Code Fiber Optic Outputs             5 Sets        5 Sets        5 Sets                                 60 Sets
8.2.3    10 MHz Outputs                                3 Sets        3 Sets        3 Sets                                 36 Sets
8.2.4    IRIG-B Outputs                                6 Sets        6 Sets        6 Sets                                 72 Sets
8.2.5    1 PPS Outputs                                 2 Sets        2 Sets        2 Sets                                 24 Sets
8.2.6    GPS Time Code Outputs                         2 Sets        2 Sets        2 Sets                                 24 Sets

9        SYSTEM INTEGRATION SUPPORT FACILITY AT
         NEC AUSTRALIA
         (** ; Equipment will be used during the
         test period at NEC Australia facility
         and not at SAN site.)
9.1      Engineering Support                                                                                                 9
9.2      Lab Equipment
9.2.1    Channel Unit w/modules                                                                                              3
9.2.2    Channel Unit Base                                                                                                   1
9.2.3    Channel Manager (1 chassis modules)                                                                                 1
9.2.4    Mini CDS                                                                                                            1
9.2.5    Mini IDS                                                                                                            1
9.2.6    Power Supply (-48V and 24V)                                                                                         1
9.2.7    Lan Hub and Cabling                                                                                                 1
9.2.8    LSRMS (non-redundant)                                                                                               1
9.2.8    OMC (non-redundant)                                                                                                 1

10       SBS DC POWER SYSTEM (AC/DC CONVERTORS
         & 2 HR BATTERY BANK)                             1             1             1                                     12
10.1     Battery Bank                                     1             1             1                                     12
10.2     Rectifier Rack                                   1             1             1                                     12
10.3     Power Distribution Rack                          1             1             1                                     12
10.4     Installation Materials                         1 Lot         1 Lot         1 Lot                                 12 Lots
10.5     Expansion DC Power                               2             1             1                                     21

11       CE MARK COMPLIANCE FOR SAN CHM, CU,
         IF DISTRIBUTION & CLOCK DISTRIBUTION
         NOTE: One site qualified to meet CE
         per EN55022 Class A.
11.1     Engineering Development                                                                                            139
11.2     Test & Certification                                                                                               14
11.3     Equipment

12       SPARE PARTS
</TABLE>

                            Commercial In Confidence
<PAGE>   2194
                                                             Change Order No. 19
                                                                Attachment 3.b-1

SBS EQUIPMENT LIST

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------------
                                                                SAN           SAN            SAN           SAN           SAN
ITEM                         DESCRIPTION                    FOR ICO-NET     FOR USA          FOR           FOR        FOR SOUTH
NO.                                                                                       AUSTRALIA      GERMANY        AFRICA
                                                                           (TYPE 2)        (TYPE 1)     (TYPE 1)       (TYPE 1)
                                                            --------------------------------------------------------------------
                                                             QTY /MMS       QTY /MMS      QTY /MMS      QTY /MMS       QTY /MMS
--------------------------------------------------------------------------------------------------------------------------------
<S>         <C>                                             <C>            <C>            <C>           <C>           <C>
12.1        Channel Unit Chassis
12.1.1      Slot Processor Module (SPM)                                        5              5             8              7
12.1.2      Modulator Demodulator Module (MDM)                                10             10            17             15
12.1.3      Clock Distribution Unit (CDM)                                      2              2             3              3
12.1.4      Common Functions Module (CFM)                                      3              3             6              5
12.1.5      T1 Cables                                                          1              1             1              1
12.1.6      Channel Unit Rack Base Components                               3 Lots         3 Lots        3 Lots         3 Lots
12.1.7      Fan Trays                                                          2              2             2              2
12.2        Channel Manager Chassis
12.2.1      G.703 Interface                                                    3              3             6              5
12.2.2      Control Processor Modules used for
             CAPs, CCPs,& GRPs                                                 3              3             6              5
12.2.3      Switching Transcoder Module (STM)                                  6              6            12             10
12.2.4      EXM                                                                2              2             5              4
12.2.5      10 Base2 Ethernet                                                  1              1             1              1
12.2.6      Fan                                                                1              1             1              1
12.2.7      E1 Cables                                                          1              1             1              1
12.2.8      Power Distribution Unit Components                               1 Lot          1 Lot         1 Lot          1 Lot
12.3        Clock Distribution Subsystem
12.3.1      GPS  Receiver w/ Rb Oscillator                                     1              1             1              1
12.3.2      10 Mhz Outputs (SBS)                                             1 Set          1 Set         1 Set          1 Set
12.3.3      GPS Time Code Outputs (SBS)                                      1 Set          1 Set         1 Set          1 Set
12.3.4      Network Time Server                                                1              1             1              1
12.4        IF Distribution Subsystem
12.4.1      SBS Tx Distribution Modules                                      1 Set          1 Set         1 Set          1 Set
12.4.2      SBS Rx Distribution Modules                                      1 Set          1 Set         1 Set          1 Set
12.5        Clock Distribution Equipment
12.5.1      10 MHz Fiber Optic Outputs                                       1 Set          1 Set         1 Set          1 Set
12.5.2      GPS Time Code Fiber Optic Outputs                                1 Set          1 Set         1 Set          1 Set
12.5.3      10 MHz Outputs                                                   1 Set          1 Set         1 Set          1 Set
12.5.4      IRIG-B Outputs                                                   1 Set          1 Set         1 Set          1 Set
12.5.5      1 PPS Outputs                                                    1 Set          1 Set         1 Set          1 Set
12.5.6      GPS Time Code Outputs                                            1 Set          1 Set         1 Set          1 Set

13          TESTER
13.1        AI Validation Tool (SDL)                             1
            Engineering Development                             96
            Materials                                            1

14.         HARDWARE ITEM FOR 60/61DAYS OPTION
14.1        Implementation of Service Area in SBS                              1              1             1              1

<CAPTION>

------------------------------------------------------------------------------------------------------------------------------
                                                             SAN            SAN            SAN           SAN           SAN
ITEM                         DESCRIPTION                   FOR INDIA     FOR CHILE      FOR BRAZIL       FOR         FOR UAE
NO.                                                        (TYPE 2)       (TYPE 2)       (TYPE 2)       MEXICO      (TYPE 2)
                                                                                                       (TYPE 2)
                                                           -------------------------------------------------------------------
                                                           QTY /MMS       QTY /MMS       QTY /MMS      QTY /MMS      QTY /MMS
------------------------------------------------------------------------------------------------------------------------------
<S>         <C>                                            <C>           <C>            <C>            <C>          <C>
12.1        Channel Unit Chassis
12.1.1      Slot Processor Module (SPM)                        8             6              8              7             8
12.1.2      Modulator Demodulator Module (MDM)                17            13             17             15            17
12.1.3      Clock Distribution Unit (CDM)                      3             2              3              3             3
12.1.4      Common Functions Module (CFM)                      6             4              6              5             6
12.1.5      T1 Cables                                          1             1              1              1             1
12.1.6      Channel Unit Rack Base Components               3 Lots        3 Lots         3 Lots         3 Lots        3 Lots
12.1.7      Fan Trays                                          2             2              2              2             2
12.2        Channel Manager Chassis
12.2.1      G.703 Interface                                    6             4              6              5             6
12.2.2      Control Processor Modules used for
             CAPs, CCPs,& GRPs                                 6             4              6              5             6
12.2.3      Switching Transcoder Module (STM)                 12             8             12             10            12
12.2.4      EXM                                                5             3              5              4             5
12.2.5      10 Base2 Ethernet                                  1             1              1              1             1
12.2.6      Fan                                                1             1              1              1             1
12.2.7      E1 Cables                                          1             1              1              1             1
12.2.8      Power Disttribution Unit Components              1 Lot         1 Lot          1 Lot          1 Lot         1 Lot
12.3        Clock Distribution Subsystem
12.3.1      GPS  Receiver w/ Rb Oscillator                     1             1              1              1             1
12.3.2      10 Mhz Outputs (SBS)                             1 Set         1 Set          1 Set          1 Set         1 Set
12.3.3      GPS Time Code Outputs (SBS)                      1 Set         1 Set          1 Set          1 Set         1 Set
12.3.4      Network Time Server                                1             1              1              1             1
12.4        IF Distribution Subsystem
12.4.1      SBS Tx Distribution Modules                      1 Set         1 Set          1 Set          1 Set         1 Set
12.4.2      SBS Rx Distribution Modules                      1 Set         1 Set          1 Set          1 Set         1 Set
12.5        Clock Distribution Equipment
12.5.1      10 MHz Fiber Optic Outputs                       1 Set         1 Set          1 Set          1 Set         1 Set
12.5.2      GPS Time Code Fiber Optic Outputs                1 Set         1 Set          1 Set          1 Set         1 Set
12.5.3      10 MHz Outputs                                   1 Set         1 Set          1 Set          1 Set         1 Set
12.5.4      IRIG-B Outputs                                   1 Set         1 Set          1 Set          1 Set         1 Set
12.5.5      1 PPS Outputs                                    1 Set         1 Set          1 Set          1 Set         1 Set
12.5.6      GPS Time Code Outputs                            1 Set         1 Set          1 Set          1 Set         1 Set

13          TESTER
13.1        AI Validation Tool (SDL)
            Engineering Development
            Materials

14.         HARDWARE ITEM FOR 60/61DAYS OPTION
14.1        Implementation of Service Area in SBS              1             1              1              1             1

<CAPTION>

----------------------------------------------------------------------------------------------------------------------------------
                                                      SAN           SAN           SAN           NMC          NMC          TOTAL
ITEM                     DESCRIPTION                  FOR        FOR CHINA     FOR KOREA      PRIMARY      BACK-UP
NO.                                                INDONESIA     (TYPE 2)      (TYPE 1)
                                                    (TYPE 2)
                                                   -------------------------------------------------------------------------------
                                                    QTY /MMS      QTY /MMS      QTY /MMS      QTY /MMS      QTY /MMS     QTY /MMS
----------------------------------------------------------------------------------------------------------------------------------
<S>     <C>                                        <C>           <C>           <C>            <C>          <C>          <C>
12.1    Channel Unit Chassis
12.1.1  Slot Processor Module (SPM)                     7             6             6                                       81
12.1.2  Modulator Demodulator Module (MDM)             15            13            13                                       172
12.1.3  Clock Distribution Unit (CDM)                   3             2             2                                       31
12.1.4  Common Functions Module (CFM)                   5             4             4                                       57
12.1.5  T1 Cables                                       1             1             1                                       12
12.1.6  Channel Unit Rack Base Components            3 Lots        3 Lots        3 Lots                                   36 Lots
12.1.7  Fan Trays                                       2             2             2                                       24
12.2    Channel Manager Chassis                                                                                              0
12.2.1  G.703 Interface                                 5             4             4                                       57
12.2.2  Control Processor Modules used for
         CAPs, CCPs,& GRPs                              5             4             4                                       57
12.2.3  Switching Transcoder Module (STM)              10             8             8                                       114
12.2.4  EXM                                             4             3             3                                       45
12.2.5  10 Base2 Ethernet                               1             1             1                                       12
12.2.6  Fan                                             1             1             1                                       12
12.2.7  E1 Cables                                       1             1             1                                       12
12.2.8  Power Disttribution Unit Components           1 Lot         1 Lot         1 Lot                                   12 Lots
12.3    Clock Distribution Subsystem                                                                                         0
12.3.1  GPS  Receiver w/ Rb Oscillator                  1             1             1                                       12
12.3.2  10 Mhz Outputs (SBS)                          1 Set         1 Set         1 Set                                   12 Sets
12.3.3  GPS Time Code Outputs (SBS)                   1 Set         1 Set         1 Set                                   12 Sets
12.3.4  Network Time Server                             1             1             1                                       12
12.4    IF Distribution Subsystem
12.4.1  SBS Tx Distribution Modules                   1 Set         1 Set         1 Set                                   12 Sets
12.4.2  SBS Rx Distribution Modules                   1 Set         1 Set         1 Set                                   12 Sets
12.5    Clock Distribution Equipment
12.5.1  10 MHz Fiber Optic Outputs                    1 Set         1 Set         1 Set                                   12 Sets
12.5.2  GPS Time Code Fiber Optic Outputs             1 Set         1 Set         1 Set                                   12 Sets
12.5.3  10 MHz Outputs                                1 Set         1 Set         1 Set                                   12 Sets
12.5.4  IRIG-B Outputs                                1 Set         1 Set         1 Set                                   12 Sets
12.5.5  1 PPS Outputs                                 1 Set         1 Set         1 Set                                   12 Sets
12.5.6  GPS Time Code Outputs                         1 Set         1 Set         1 Set                                   12 Sets

13      TESTER
13.1    AI Validation Tool (SDL)                                                                                             1
        Engineering Development                                                                                             96
        Materials                                                                                                            1

14.     HARDWARE ITEM FOR 60/61DAYS OPTION
14.1    Implementation of Service Area in SBS           1             1             1                                       12
</TABLE>

                            Commercial In Confidence
<PAGE>   2195
                                                             Change Order No. 19
                                                                Attachment 3.b-1

SBS EQUIPMENT LIST

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------------
                                                     SAN           SAN           SAN           SAN           SAN           SAN
ITEM                       DESCRIPTION           FOR ICO-NET     FOR USA         FOR           FOR        FOR SOUTH      FOR INDIA
NO.                                                                           AUSTRALIA      GERMANY        AFRICA       (TYPE 2)
                                                                (TYPE 2)       (TYPE 1)     (TYPE 1)       (TYPE 1)
                                                 ---------------------------------------------------------------------------------
                                                  QTY /MMS       QTY /MMS     QTY /MMS      QTY /MMS       QTY /MMS      QTY /MMS
----------------------------------------------------------------------------------------------------------------------------------
<S>       <C>                                    <C>            <C>           <C>           <C>           <C>            <C>
14.2      Service Area Based on Frequency
           Assignment                                               1             1             1              1             1
14.3      Service Area mapping using guard
           band                                                     1             1             1              1             1
4.2       2 Satellite position determination
           using differential delay                                 1             1             1              1             1

          SOFTWARE LICENSE

<CAPTION>

----------------------------------------------------------------------------------------------------------------------------------
                                                   SAN            SAN           SAN           SAN           SAN           SAN
ITEM                      DESCRIPTION           FOR CHILE      FOR BRAZIL       FOR         FOR UAE         FOR        FOR CHINA
NO.                                              (TYPE 2)       (TYPE 2)       MEXICO      (TYPE 2)      INDONESIA     (TYPE 2)
                                                                              (TYPE 2)                    (TYPE 2)
                                                ----------------------------------------------------------------------------------
                                                 QTY /MMS       QTY /MMS      QTY /MMS      QTY /MMS      QTY /MMS      QTY /MMS
----------------------------------------------------------------------------------------------------------------------------------
<S>      <C>                                    <C>            <C>            <C>          <C>           <C>           <C>
14.2     Service Area Based on Frequency
          Assignment                                1              1             1             1             1              1
14.3     Service Area mapping using guard
          band                                      1              1             1             1             1              1
4.2      2 Satellite position determination
          using differential delay                  1              1             1             1             1              1

         SOFTWARE LICENSE

<CAPTION>

---------------------------------------------------------------------------------------------------------
                                                     SAN           NMC          NMC          TOTAL
ITEM                         DESCRIPTION          FOR KOREA      PRIMARY      BACK-UP
NO.                                               (TYPE 1)

                                                  -------------------------------------------------------
                                                   QTY /MMS      QTY /MMS      QTY /MMS     QTY /MMS
---------------------------------------------------------------------------------------------------------
<S>         <C>                                   <C>            <C>          <C>          <C>
14.2        Service Area Based on Frequency
             Assignment                                1                                       12
14.3        Service Area mapping using guard
             band                                      1                                       12
4.2         2 Satellite position determination
             using differential delay                                                          12

            SOFTWARE LICENSE
                                                                                             Included
                                                                                            in Hardware
</TABLE>

                            Commercial In Confidence
<PAGE>   2196
                              Change Order No. 19
                                Attachment 3.b-2
                     III.2 SBS PRICE LIST (IN THOUSAND US$)

                         * [11 PAGES HAVE BEEN REDACTED]

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   2197
                                        *
<PAGE>   2198
                                        *
<PAGE>   2199
                                        *
<PAGE>   2200
                                        *
<PAGE>   2201
                                        *
<PAGE>   2202
                               CHANGE ORDER NO: 19
                                  ATTACHMENT 4

                  HANDOVER FOR HIGH VELOCITY TERMINALS (ICR09)
<PAGE>   2203
                               CHANGE ORDER NO: 19
                                 ATTACHMENT 4.a
<PAGE>   2204
                                                             CHANGE ORDER NO. 19
                                                 TO THE SUPPLY AGREEMENT BETWEEN
                                                             NEC CORPORATION AND
                                           ICO GLOBAL COMMUNICATIONS HOLDINGS BV
                                                                  ATTACHMENT 4.a

1.       The purpose of ICO Change Request No. 09 is to enable handover for high
         velocity user terminals as detailed below.

2.       As a result of ICR No.09, the parties hereby agree to amend Schedule
         13, IGFR version 28.4, as per Attachment - 4.b to this Change Order.

3.       As a result of ICR No. 09, the parties hereby agree to Schedule 14 -
         Statement of Work, Annex 1, Contractor Deliverables as per Attachment -
         4.c to this Change Order.

4.       The reference correspondence referable to ICR Nos. 09 is listed below.

         (NEC correspondence)

         IUKC-414 (dated 30/01/98): IUKC-1045 (dated 25/03/99)

         (ICO correspondence)

         SA0515/WG7/19971125/PP (dated 17/12/97): SA1450/WG8/19980217/GT (dated
         17/02/98): SA1578/WG8/19990423/PB (dated 23/04/99)

5.       The parties undertake to ensure that the required changes specified
         within paragraphs 2 and 3 above, shall be completed within 3 months of
         the date of this Change Order or by such time as the parties shall
         otherwise agree. The parties agree that implementation of these changes
         shall be effective upon agreement without the need for the parties to
         formalise the incorporation of such agreed changes by way of further
         Change Order.

6.       The Parties agree that neither the Contractor nor any member of the NEC
         Team shall have any obligation to provide vendor financing to ICO
         pursuant to this Change Order.

7.       The parties agree that this Change Order shall be categorised as a
         Non-clause 15.1 Change Order and further agree to amend Schedule 9
         (Pricing Schedule), Table 24 of the Supply Agreement to record the
         position.
<PAGE>   2205
                               CHANGE ORDER NO: 19
                                 ATTACHMENT 4.b

               Amended Schedules - Schedule 13 - IGFR Version 28.4
<PAGE>   2206
CHANGE ORDER NO: 19
ATTACHMENT 4.b

<TABLE>
<CAPTION>
====================================================================================================================================
                                                                                                          CHANGE
SECTION                                                                          DESCRIPTION OF PROPOSED  REQUEST   DATE OF
  NO.                           REVISED TEXT                                             SOLUTION           NO.    ACCEPTANCE  OWNER
====================================================================================================================================
<S>      <C>                                                                     <C>                      <C>      <C>         <C>
6.60     Support of High Velocity User Terminals (HVUT)                          Addition of new section   ICR09   23/04/1999   PP
------------------------------------------------------------------------------------------------------------------------------------
6.60.1   All IGF Requirements specifically to support high velocity UTs are      Addition of new section   ICR09   23/04/1999   PP
         presented in 6.60.
------------------------------------------------------------------------------------------------------------------------------------
6.60.2   The IGF may assume that the HVUTs have the following characteristics:   Addition of new section   ICR09   23/04/1999   PP

         1. The HVUT shall indicate that it is a HVUT in the UT classmark
         provided in the Initial Message.

         2. The HVUT shall automatically pre-compensate its frequency to appear
         exactly as if on the frequency reference arc with an accuracy better
         than+/-40 Hz (one sigma). This shall be done for the RACH burst as
         well as dedicated channel bursts.

         3. The HVUT shall always sends a UT supplied position information in
         the Initial Message in accordance with the ICO Air-Interface.

         4. The HVUT shall send HVUT POSITION UPDATE messages at a rate no more
         frequently than one message every 40 seconds.

         5. A HVUT POSITION UPDATE message shall consist of the Earth Centred
         Earth Fixed (ECEF) co-ordinates (not defined in ICO AI version 4.0),
         of the UT, accurate to within 1km on x, y and z axes.

         6. The HVUT will make sufficient Location Updates to remain pageable
         by the IGF.

         7. The HVUT shall accept but ignore Air-Interface elements adjusting
         the UT frequency (for example, in CHANNEL RE-ASSIGNMENT messages).
------------------------------------------------------------------------------------------------------------------------------------
6.60.3   The IGF shall recognise the HVUT from the UT classmark (not defined in  Addition of new section   ICR09   23/04/1999   PP
         ICO AI version 4.0).
------------------------------------------------------------------------------------------------------------------------------------
6.60.4   The SBS shall not calculate the position of a HVUT. The SBS shall not   Addition of new section   ICR09   23/04/1999   PP
         verify the HVUT supplied position.
------------------------------------------------------------------------------------------------------------------------------------
6.60.5   For a HVUT, the SBS may or may not perform frequency link control, and  Addition of new section   ICR09   23/04/1999   PP
         may or may not send frequency updates.
------------------------------------------------------------------------------------------------------------------------------------
6.60.6   The SBS shall provide timing corrections to the HVUT, just as for any   Addition of new section   ICR09   23/04/1999   PP
         UT. The SBS shall be able to track and compensate for timing changes
         up to 6 microseconds per second.
------------------------------------------------------------------------------------------------------------------------------------
6.60.7   The SBS shall accept HVUT POSITION UPDATE messages (not defined in ICO  Addition of new section   ICR09   23/04/1999   PP
         AI version 4.0) at a rate no more frequently than one message every 40
         seconds. These position updates shall be used by the SBS only, and may
         not be passed to the MSSC.
------------------------------------------------------------------------------------------------------------------------------------
6.60.8   When the SBS receives a HVUT POSITION UPDATE message, it shall          Addition of new section   ICR09   23/04/1999   PP
         determine whether the locations of the UT and satellites indicate that
         a handover is required. If it is so determines, then handover shall be
         performed using the same procedures as for any other UT types. The SBS
         shall use the position from the HVUT POSITION UPDATE message for
         diversity decisions when applicable. The SBS may not use the HVUT
         POSITION UPDATE message for any purposes other than these.
------------------------------------------------------------------------------------------------------------------------------------
6.60.9   The SBS shall be sized so that up to 2% of all calls can be with HVUTs  Addition of new section   ICR09   23/04/1999   PP
         in the busy hour.
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>   2207
                                                             CHANGE ORDER NO. 19
                                                 TO THE SUPPLY AGREEMENT BETWEEN
                                                             NEC CORPORATION AND
                                           ICO GLOBAL COMMUNICATIONS HOLDINGS BV
                                                                  ATTACHMENT 4.c

                         Changes to SOW Annex 1 Table F

                            Table F - Function Set 5

                                      FS-5

SAME AS FS-4 WITH THE FOLLOWING ADDITIONAL SERVICES

1.       GSM Fax - up to 9600 bit/s (IGFR 4.1.3.1)

2.       GSM Fax - up to 14.4 kbit/s (IGFR 4.1.3.2)

3.       Alt Voice GSM Fax - 4800 bit/s (IGFR 4.1.3.3)

4.       GSM Data  - up to 38.4 kbit/s (IGFR 4.2.2)

(Note 1: 4.2.2.3 Synchronous non-transparent service feature for data rates
above 9600 bit/s shall be available no later than by the release date of CME20
R8 Main. IGFR 4.2.2.11 Asymmetric data service is provided as part of FS4.)

5.       Support of HVUT (IGFR 6.60)

<PAGE>   2208
[ICO LETTERHEAD]                                         CHANGE ORDER NO: 20

                  IGF SUPPLY AGREEMENT
                  CONTRACT NO ICOO97 - 1016/GW           DATE: 11th JANUARY 2000

In accordance with clause 9 of the Supply Agreement dated March 3rd 1997 between
NEC Corporation and ICO Global Communications Holdings BV, the Agreement is
hereby amended as follows:

Amended Clauses               See Attachment No. 3 (Clause 15.1)

Amended Schedules             See Attachment No.1

Amended Annexes               None

Amended Price                 See Attachment Nos: 1 and 3

Other Amendments              None

Reference Correspondence      All relevant formal communications and exchanges,
                              appertaining to matters contained within this
                              Change Order, which have passed between the
                              parties prior to the date hereof.

This Change Order No. 20 will now form part of the Supply Agreement dated March
3rd 1997 between the parties and shall be effective as at the date of this
Change Order No. 20 and shall be governed by and construed in accordance with
the laws of England.

Except for the changes set out above, this Change Order No. 20 makes no further
amendments or modifications to the Agreement.

Signed for and on behalf of             Signed for and on behalf of
ICO GLOBAL COMMUNICATIONS HOLDINGS BV   NEC CORPORATION

/s/ ***                                 /s/ Minoru Usui
--------------------------------------  --------------------------------------
Supervising Officer                     Contractor's Authorised Representative
                                        Minoru Usui
                                        General Manager, Europe Div.

11th January, 2000                      11th January, 2000
------------------                      ------------------
Date                                    Date
<PAGE>   2209
                                                             CHANGE ORDER NO. 20
                                                 TO THE SUPPLY AGREEMENT BETWEEN
                                                             NEC CORPORATION AND
                                           ICO GLOBAL COMMUNICATIONS HOLDINGS BV
                                                                    ATTACHMENT 1

By this Change Order No. 20, the Supply Agreement dated March 3, 1997, between
NEC Corporation ("the Contractor") and ICO Global Communications Holdings BV
("ICO") (hereinafter referred to as the "Supply Agreement") is amended as set
out below:

BACKGROUND TO CHANGE ORDER NO. 20

A)       Under the terms and conditions set forth in the Supply Agreement, ICO
         agreed to purchase from the Contractor certain equipment and services
         as are specified therein, and the Contractor has agreed to provide the
         said services;

B)       ICO has agreed that the Contractor shall carry out Works and provide
         services in accordance with the terms of the Scope of Work for the
         provision of certain Satellite Launch Support Services to support ICO
         in its TT&C Operations. Further, ICO has agreed that the Contractor
         shall carry out Works and provide services in accordance with the terms
         of the Scope of Work, for the provision of services for Pilot Generator
         replacement and ICO's USA IOT Modification Support Service during Pilot
         Generator replacement Work, as set forth within Attachment 2.2 to this
         Change Order.

C)       Notwithstanding the formalities prescribed by clause 6 to Attachment 1
         of Change Order No.5 dated 20 November 1998 ICO and the Contractor have
         agreed to amend the Supply Agreement to govern the terms of the Works
         and the Services specified in Attachment 2.2, which shall include the
         installation and testing of the Deliverables identified within
         Attachment 5.1 to that Change Order.

         In consideration of the foregoing and for other good and valuable
         consideration, acknowledged by the parties to have been given, it is
         agreed: -

1.       DEFINITIONS

         For the purposes of this Change Order the following words used herein
         or in the Supply Agreement shall have the following meanings: -

         "Scope of Work" and "Works" shall mean those works and services which
         are identified within Attachment 2.2.

         "Schedule" shall mean that schedule for the performance of tasks of or
         relating to the provision of the works and services under this Change
         Order, as set out within Annex 1 to Attachment 2.2.

         For the avoidance of doubt, references in the Supply Agreement to Top
         Level Milestone Schedule and Master Level Schedule shall not apply to
         this Change Order.

                                      -1-
<PAGE>   2210
2.       WORKS AND SERVICES

         ICO hereby agrees to purchase, and the Contractor agrees to supply, the
         Works and Services set out in Attachment 2.2 in accordance with the
         time scales set out in the Schedule at the price set forth in Clause 4
         of this Change Order.

3.       APPLICATION OF SUPPLY AGREEMENT TERMS AND CONDITIONS

3.1      Except in relation to those activities comprising the Pilot Generator
         Replacement Work, defined in Attachment 2.2, the following clauses of
         the Supply Agreement shall not apply to this Change Order. It is,
         however, acknowledged and agreed by the parties that, notwithstanding
         the list featured below, in respect of the Pilot Generator Replacement
         Work, clauses 16.2, 16.3, and 16.6 to 16.18 (inclusive) shall, also,
         NOT apply to this Change Order:

         4.1(a), 4.1(c) to (e) inclusive, 4.1(h) and 4.1(i), 4.1 (k), 4.1(n),
         4.2 to 4.7, 4.10, 5, 6.1(d), 6.2, 7, 8, 12.2 to 12.4 inclusive, 13, 14,
         15.2 (except 15.2.1) to 15.4 inclusive, 15.5(b), (c), (d) 16.2, 16.3,
         16.6 to 16.18 inclusive, 18, 19, 22, 23, 25 to 29 inclusive, 31 to 38
         inclusive, 40, 44 to 48 inclusive, 52.2 to 52.4 inclusive, 54, 56,
         Schedules 6 to 12 inclusive.

3.2      Save in relation to those activities comprising the Pilot Generator
         Replacement Work, defined in Attachment 2.2, the following clauses of
         the Supply Agreement are amended for the purpose only of this Change
         Order and not further or otherwise.

         Clause 4.1 (b) is amended to read:

         "it will provide all of the Services so as to fulfil the objectives and
         the requirements of the Scope of Work"

         Clause 4.1 (l) is amended to read:

         "it will provide and will ensure that its Sub-Contractors provide, the
         agreed number of suitably skilled and appropriately experienced
         personnel to meet the objectives of this Change Order;"

         Clause 12.1 is amended to read:

         "Without prejudice to ICO's other obligations under this Change Order,
         ICO shall provide the Contractor with such information, services and
         information as shall be specified in the Scope of Work. To the extent
         that ICO's failure in any material respect to comply with its
         obligations under this clause 12.1 shall adversely and directly affect
         the ability of the Contractor to fulfil its obligations under this
         Change Order, then to the extent the Contractor can demonstrate the
         same to be required, the Schedule shall be adjusted in an equitable
         manner and the Contractor may recover from ICO all costs reasonably
         incurred as a direct result of such adjustment.

         Clause 51.2 is amended to read:

                                      -2-
<PAGE>   2211
         If and insofar as any breach by the Contractor of this Change Order
         (including the inadequate performance or the non-performance of any of
         its obligations hereunder) shall result in any losses, damages, costs
         or liabilities for ICO (other than any physical damage or loss of
         tangible property as described in clause 51.1) the Contractor shall,
         subject always to clause 51.3, indemnify ICO against any such losses,
         damages, costs or liabilities of ICO provided that the total
         liabilities of the Contractor to ICO shall not exceed a sum equivalent
         to the value of this Change Order No. 20. Any liability of the
         Contractor to ICO under this amended clause 51.2 shall not, in any
         event, be treated as forming part of the aggregate total liability of
         the Contractor under the Supply Agreement.

4.       PRICE AND PAYMENT

4.1      ICO will purchase the Works hereunder for the firm fixed price of   *
         . Such price shall be subject to adjustment in the event the parties
         agree that the Schedule shall subsequently be extended consequent upon
         any requirement to adjust the Satellite Launch Schedule. The Contractor
         shall render invoices to ICO which shall become due and payable by ICO
         as follows:-

         CLAUSE 15.1

         (i)   *   of the price for Pilot Generator Replacement and USA IOT
         engineering Support   *   shall be invoiced by the Contractor upon the
         date of signature of this Change Order. Such invoice shall be paid by
         ICO no later than 12 January 2000 provided this Change Order shall have
         been signed prior to this date.

         (ii)   *   of the price for Pilot Generator Replacement and USA IOT
         engineering Support   *   to be paid by ICO to the Contractor no later
         than 7 calendar days following the date of submission, to ICO, of the
         Contractor's invoice which invoice shall be rendered by the Contractor,
         to ICO, upon completion of last SAN site for Pilot Generator
         Replacement and/or USA IOT engineering support;

         NON-CLAUSE 15.1

         (iii)   *   of the price for Satellite Launch Support Service (59,700
         US$ = 199,000 US$ x 0.3) shall be invoiced by the Contractor and shall
         be paid by ICO to the Contractor no later than 7 calendar days
         following ICO's notification of the start date in accordance with the
         Scope of Work. Upon confirmation that payment has been duly received
         the Contractor will undertake mobilisation of the SLSS team;

         (iv)   *   of the price for Retention portion of Satellite Launch
         Support Service   *   shall be invoiced by the Contractor and shall be
         paid by ICO to the Contractor no later than 7 calendar days

         * Confidential Treatment Requested and the Redacted Material has been
           separately filed with the Commission.

                                      -3-
<PAGE>   2212
         prior to the departure of the Contractor's engineer to the SLSS SAN
         sites whereupon the Contractor will despatch its engineers;

         (v)   *   of the price for Retention portion of Satellite Launch
         Support Service   *   and   *   of the balance of the adjusted price
         which remains due in the event it is agreed the Schedule shall
         subsequently be extended, to be paid by ICO to the Contractor no later
         than 7 calendar days following the date of submission of the
         Contractor's invoice, which invoice shall be rendered by the
         Contractor, to ICO, upon completion of the SLSS Works under this Change
         Order.

4.1.1    Details of the price are set out in Attachment 2.1 to this Change
         Order.

4.1.2    In addition to the sums payable by ICO as described in clause 4.1,
         above, ICO shall pay to the Contractor the other cost elements
         attributable to round trip air fares and local transportation fees as
         provided by Attachment 2.1 to this Change Order. All such sums shall be
         reimbursed by ICO, to the Contractor, pursuant to clause 17 of the
         Supply Agreement.

4.2      Save in relation to the those activities comprising the Pilot Generator
         Replacement activities, defined in Attachment 2.2, the parties agree
         that this Change Order shall, otherwise, be categorised as a Non-clause
         15.1 Change Order and further agree to amend Schedule 9 (Pricing
         Schedule), Table 24 of the Supply Agreement to record the position.

4.2.1    The increment referable to the Pilot Generator Replacement activities,
         to be undertaken hereunder, shall form part of the Price, as defined in
         clause 15.1 of the Supply Agreement. Such increment is included in the
         figure set forth in Attachment 3 to this Change Order.

4.3      In the event the Work is aborted following payment, the methodology
         ("Compensation Methodology") regulating payments to be made by ICO, to
         the Contractor, as set out in Attachment 2.1 to this Change Order,
         shall be applied.

5.       FINANCING

         The parties agree that neither the Contractor nor any member of the NEC
         Team has any obligation to provide vendor financing to ICO pursuant to
         this Change Order.

6.       RATIFICATION OF ICO SUPPLY AGREEMENT

         Except as provided for herein, the terms and conditions of the Supply
         Agreement shall continue in full force and effect.

         * Confidential Treatment Requested and the Redacted Material has been
           separately filed with the Commission.

                                      -4-
<PAGE>   2213
6.1      This Change Order sets forth the entire agreement between the parties
         as to the subject matter hereof and supersedes all prior discussions
         between them, and neither of the parties shall be bound by any
         conditions, definitions, warranties, understandings, or representations
         with respect to such subject matter other than as expressly provided
         herein.

6.2      In the event of a conflict between the terms of this Change Order and
         the terms of the Supply Agreement, the terms of this Change Order shall
         prevail.

6.3      The parties agree that neither shall rely upon the execution and
         performance of this Change Order as comprising assumption or rejection
         of the Supply Agreement, in whole or in part.

6.4      ICO has informed the Joint Provisional Liquidator and counsel for the
         Creditors' Committee of this agreement and has confirmed that neither
         has issued any objection thereto.

                                      -5-
<PAGE>   2214
CHANGE ORDER NO: 20                                               ATTACHMENT 2.1

                                 Price for Works
<PAGE>   2215
                                                             CHANGE ORDER NO. 20
                                                 TO THE SUPPLY AGREEMENT BETWEEN
                                                             NEC CORPORATION AND
                                           ICO GLOBAL COMMUNICATIONS HOLDINGS BV
                                                                  ATTACHMENT 2.1

ATTACHMENT 2.1: PRICE
PRICE FOR THE WORKS

<TABLE>
<CAPTION>
====================================================================================================================================
                                                                                                           Amount
No.                                       Description                                          Man-months  (kUS$)       Remarks
====================================================================================================================================
<S>   <C>                                                                                      <C>         <C>     <C>
1.    SATELLITE LAUNCH SUPPORT SERVICE (NON-CLAUSE 15.1)
------------------------------------------------------------------------------------------------------------------------------------
      Labour Fees - Man-months Basis
------------------------------------------------------------------------------------------------------------------------------------
      Total Labour Fees for First Satellite Launch Support Service                                           *
------------------------------------------------------------------------------------------------------------------------------------
      NON-CLAUSE 15.1 TOTAL                                                                                  *
------------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------------------
2.    PILOT GENERATOR REPLACEMENT AND TEST WITH 2ND PHASE IOT SUPPORT (CLAUSE 15.1)
------------------------------------------------------------------------------------------------------------------------------------
      Pilot Generator Replacement and Test for Australia, Germany, India and U.S.A.                          *
      (Including 2nd Phase IOT support for U.S.A.)
------------------------------------------------------------------------------------------------------------------------------------
      CLAUSE 15.1 TOTAL                                                                                      *
------------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------------------
3     TRANSPORTATION COST (CLAUSE 17, ESTIMATE ONLY)
------------------------------------------------------------------------------------------------------------------------------------
3.1.  Maximum sum allowable for Round Trip Air Fare and Local Transportation Fee for First                   *
      Satellite Launch Support Service. This sum may only be exceeded with the prior consent
      of ICO.
------------------------------------------------------------------------------------------------------------------------------------
3.2.  Maximum sum allowable for Round trip Air Fare and Local Transportation Fee for                         *
      Australia,  Germany,  India and U.S.A. This sum may only be exceeded with the prior
      consent of ICO.
------------------------------------------------------------------------------------------------------------------------------------
      CLAUSE 17 TOTAL                                                                                        *
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

Note 1: The estimated working hours, resulted as Man Months in the above price
table are

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

<PAGE>   2216
calculated according to the assumption within Annex 1 in the Scope of Work for
SLSS.

Note 2: Round trip airfare and local transportation fees to be incurred by the
Contractor in relation to the Works are not included in the price. The price for
transportation assumes the following conditions. The allowable sum indicated
will be adjusted, by agreement with ICO, according to the numbers of trips
during the period. The actual cost of flights in economy class plus local
transportation, as adjusted, will be invoiced to ICO, in accordance with clause
17 of the Supply Agreement, together with a   *   overhead (handling fee).

         -        A total of two engineers will be dispatched to the total four
                  SAN sites. One engineer will perform the Pilot Generator
                  replacement at two SAN sites. A total of seven engineers will
                  be dispatched to the total five SAN sites. The Schedule is set
                  out in Attachment 2-2

Note 3: Pilot Generator modification for the U.S.A. SAN site will be performed
at the same time as the 2nd phase IOT support work, which modification
activities it is assumed shall commence on 17 January 2000 . The 2nd phase IOT
support work will be carried out during the period of Pilot Generator
replacement work, and the Contractor has assumed this period will amount to 1 to
2 days in reliance upon ICO's notification.

Note 4: A total of 30 man-days, including travel loss man-days are required for
the Pilot Generator Replacement Works, for 5RFTs (10 Pilot Generators) at the 4
SAN sites, U.S.A., India, Germany and Australia. The Contractor has quoted for
the Pilot Generator Replacement on the basis that the Replacement Works will be
carried out as a separately scheduled activity to the SLSS Works, in accordance
with ICO's request.

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

<PAGE>   2217
CONDITIONS OF THE PRICE:

The above price contains the provision of the following Works:

-        RFT Engineering Support Works for First ICO Satellite Launch at
         Germany, U.S.A., Chile, South Africa and Australia SAN sites. The
         support Works for the India SAN site can be performed at an additional
         charge up on ICO's request, which request shall be notified 4 weeks
         prior to the commencement of the Works.

-        Pilot Generator replacement and test Works will be performed for
         Germany, India, U.S.A. and Australia SAN sites before the SLSS Works.

-        2nd Phase IOT support work at U.S.A. SAN site will be carried out at
         the same time as the U.S.A. Pilot Generator replacement.

-        Accommodations Fee

The following price elements are not included in the price and shall be borne by
ICO directly. In the event the Contractor shall have been invoiced directly for
such costs, subject to ICO's prior confirmation to fully meet such cost , the
Contractor may arrange payment for ICO and invoice such cost to ICO in
accordance with Clause 17.

-        Telephone and Fax communications Fee

The following elements are not included in the Price and shall be reimbursed by
ICO, to the Contractor, in accordance with clause 17 of the Supply Agreement
<PAGE>   2218
-        Round trip air fare for the Works.

-        Local transportation fee.

-        Rental costs of a mobile phone at each SAN site during the SLSS period
         which shall be maintained for emergency communication and back-up
         purposes

The following optional services are also proposed:

-        Service Period Extension.

-        On Call Basis Service outside of the Working time as specified in Annex
         1 in SOW for SLSS.

SCHEDULE AND DURATION OF THE SERVICE:

-        The schedule and duration of the Satellite Launch Support Service is in
         accordance with the launch mission schedule which was verbally
         confirmed by Mr. M. Caruso and Mr. D. Roberts of ICO at the meeting
         held on 31 March 1999 with Mr. T. Kawauchi of the Contractor. The
         Contractor will dispatch seven engineers for the First ICO Satellite
         Launch: one antenna expert to each of the 5 designated TT&C sites, and
         two RFT O&M experts, one at Longovilo, Chile and the other at
         Hartebeesthoeck, South Africa. The schedule at Annex 1 of Attachment
         2.2 defines the base schedule of this price quotation which the
         Contractor's engineers will follow. The Contractor's engineers will
         stay on site at least 14 hours during the Critical Deployment Phase.
         This Schedule is subject to change dependent upon the progress of ICO's
         Satellite Launch Deployment. Any other works or services beyond those
         contemplated by this Schedule, insofar as ICO may request the same to
         be undertaken, shall be agreed with the Contractor and all attendant
         costs of such Work or services shall be payable by ICO
<PAGE>   2219
         as additional cost.

-        All SLSS Works (including On-call basis service undertaken) shall be
         time recorded on an hourly basis. ICO will pay for the actual time
         spent from the date of departure from the Contractor engineer's home
         locations to the date of arrival of the Contractor's engineer's home
         locations after completion of SLSS Works. Actual working hours will be
         recorded during the SLSS Works. A minimum of 8 hours of working time
         shall be recorded per day, regardless of any specific or emergency work
         during this period.

-        ICO shall provide a minimum of 4-weeks notice to the Contractor as to
         when scheduled Satellite Launch Support Service shall commence and as
         to whether it requires the Contractor to provide support at the India
         SAN site. Notice shall be given in writing.

-        The same procedure for recording Works as applied for Change Order No.
         10 to the Supply Agreement (ICONET Integration G2, 3, 4 Campaign) shall
         be applicable for the purpose of recording the Works and services to be
         provided by the Contractor under this Change Order. After completion of
         the SLSS Works by the Contractor under this Change Order, the price of
         this Change Order shall be re-calculated and appropriately adjusted as
         follows, in respect of days in excess of those specified in Attachment
         2.2: -

         Total actual MM (labour) = Total actual Work hours (minimum 8 hours
         during period) / (8 x 22)

         Total amount (labour fee) = Total actual MM (labour)   *

COMPENSATION METHODOLOGY:

         * Confidential Treatment Requested and the Redacted Material has been
           separately filed with the Commission.

<PAGE>   2220
-        In respect of matters described in clause 4.1(i) of Attachment 1 to
         this Change Order ICO shall pay to the Contractor a sum, by way of
         compensation, which shall be equivalent to the actual expense incurred
         by the Contractor, together with a 22% handling charge for actual days
         of Work, including preparation, shall be paid by ICO provided that such
         sum shall not exceed the price payable, as specified in clause 4.1(i)
         of Attachment 1 of this Change Order. The remaining portion of the
         amount paid over will be held by the Contractor and credited against
         future resumption.

-        In respect of matters described in clause 4.1(iii) of Attachment 1 to
         this Change Order ICO shall pay to the Contractor a sum, by way of
         compensation, which sum shall be determined in accordance with the
         formula set out immediately below, provided that such sum shall not
         exceed the price payable, as specified in clause 4.1(iii) of this
         Change Order. The amount of work for actual days is mechanically
         calculated in accordance with the formula . The remaining portion of
         the amount paid over will be held by the Contractor and credited
         against future resumption.

Amount for
Work for                               *
actual days

Note: The Notice day is whichever comes later, the date notified by ICO as the
start date for SLSS or the date of payment of sums due under 4.1(iii) of
Attachment 1 to this Change Order. For the avoidance of any doubt, this day rate
does not correspond with the engineer's man-day rate. The purpose of this
mechanical calculation is just so as to avoid any future delay in settlement of
payment by both parties.

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

<PAGE>   2221
Example:

Noticed date of SLSS start date:                     28 January 2000

Date of payment under 4.1(iii):                      30 January 2000

Date of notice that Works are to be discontinued (i.e. date such notification is
actually received in written form by NEC): 10 February 2000

Amount for Work for actual days:   *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

<PAGE>   2222
-     In respect of matters described in clause 4.1(iv) of Attachment 1 to this
      Change Order ICO shall pay to the Contractor a sum, by way of
      compensation, which sum shall be determined in accordance with the formula
      set out immediately below. Such sum shall not exceed the price payable, as
      specified in 4.1(iv) of this Change Order, provided the period of Work
      shall not have been extended. The amount of work for actual days is
      mechanically calculated in accordance with the formula. The remaining
      portion of amount paid over will be held by the Contractor and credited
      against future resumption.

Amount for
Work for             *
actual days

Note: For avoidance of any doubt, this day rate does not correspond with
engineer's man-day rate. The purpose of this mechanical calculation is just so
as to avoid any future delay in settlement of payment by both parties.

Example:

Date of Engineer's departure:            25 February 2000

Date of notice that Works to be aborted (i.e. date such notification is actually
received in written form by NEC) : 3 March 2000

Amount for Work for actual days:   *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

<PAGE>   2223
SERVICE PERIOD EXTENSION AND ON CALL BASIS SERVICE (OPTION):

-        Any extension of the duration (per day basis) of the scheduled SLSS
         Works can be provided on-site if requested in writing by ICO or ICO's
         leader of the Tiger Team. Any cost incurred as a result of such
         extension shall be payable to the Contractor after completion of such
         extended of services. Any loss or waiting time charge for the
         Contractor's engineers incurred by the re-scheduling of return flight,
         if required, shall also be paid by ICO. After completion of the
         extended Work for SLSS by the Contractor under this Change Order, the
         price of this Change Order shall be re-calculated and appropriately
         adjusted in the following manner.

<TABLE>
<S>                                          <C>
Extended Engineering support Service   *
</TABLE>

-        In cases of emergency, ICO may seek the support of the Contractor's
         engineers at Yokohama. All attendant costs of such additional
         engineering support service which shall be provided, remotely, by the
         Contractor's engineers shall also be payable by ICO to the Contractor.
         After the completion of such Emergency Support Work by the Contractor
         under this Change Order, the price of this Change Order shall be
         re-calculated and appropriately adjusted in the following manner.

<TABLE>
<S>                                          <C>
Emergency Engineering support Service   *
</TABLE>

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

<PAGE>   2224
CHANGE ORDER NO: 20                                               ATTACHMENT 2.2

                                  Scope of Work
<PAGE>   2225
                                                             CHANGE ORDER NO. 20
                                                 TO THE SUPPLY AGREEMENT BETWEEN
                                                             NEC CORPORATION AND
                                           ICO GLOBAL COMMUNICATIONS HOLDINGS BV
                                                                  ATTACHMENT 2.2

               SCOPE OF WORK FOR SATELLITE LAUNCH SUPPORT SERVICE
                        (PARTICIPATION IN TIGER TEAM) BY
                                 THE CONTRACTOR

This document defines the Scope of Work ("SOW") between ICO and the Contractor
for the provision of Satellite Launch Support Service ("SLSS"), Pilot Generator
Replacement works and 2nd Phase USA IOT support work, hereinafter referred to as
"Works".

INTRODUCTION

-        This SOW defines the information, services, equipment and facilities to
         be provided by ICO and the Contractor.

-        There are no deliverables, such as equipment, documentation or
         information, to be provided by the Contractor under this Change Order.

-        The Works insofar as they relate to SLSS and IOT Support, will be
         conducted under ICO's responsibility and lead. The Contractor's
         engineers will provide engineering support services to ICO to seek to
         rectify problems which may be encountered by or within the RFT
         subsystem.

-        Any Works or Services to be performed by the Contractor's engineers
         under this Scope of Work shall be limited to that range of activities
         properly referable to the RFT subsystem function and performance of the
         RFT subsystem as specified in the applicable versions of the IGFR
         (Version 28.4) and TT&C to SAN Interface Control Document (Version 2.4)
         only. The related description concerning India TTC/IOT will be omitted
         in the ICD, if USA SAN will be applied to IOT station. In the event
         that any Works or services are reasonably required, beyond the RFT
         subsystem requirements in the IGFR or in the related ICD, during the
         Works, the Contractor's engineer(s) shall use its (their) best efforts
         to comply with such request. ICO shall bear full responsibility for all
         such additional Works and any and all risk associated with the
<PAGE>   2226
         same.

SCOPE OF WORK

ICO

-        During the Works, most especially in relation to the SLSS Works, ICO
         shall direct and instruct the Contractor's engineers so that NEC's
         engineers can provide the appropriate Satellite Launch Support Service
         to ICO. ICO shall confer upon its designated ICO leader at each SAN
         site the authority to determine, on behalf of ICO, the duration of the
         Working time and extension of the Working period at his/her discretion.

-        In respect of SLSS activities ICO shall provide to the Contractor 4
         weeks prior written notice of the start date.

-        The ICO leader or representatives shall issue the certification to
         record completion of the Works.

-        ICO shall ensure that all test equipment, to be provided under the
         Supply Agreement, Annex 2, is made available to the Contractor's
         engineers at each SAN site during the Works.

-        ICO shall provide appropriate facilities to enable the Contractor's
         engineers to work efficiently and in reasonable comfort at relevant
         sites during the Works. As a minimum ICO shall ensure provision of the
         following:-

         -        Desk and Chair

         -        Permanent Telephone (FAX) Line (with capability of
                  international call)

         -        Place (Room) to take a nap (If available)

         Communications charge shall be born by ICO.

-        ICO shall be solely responsible for maintaining the TT&C WAN/LAN for
         the purpose of Inter SAN access and for monitoring the RFT O&M
         equipment during the Works.

-        ICO shall support the Contractor's engineers in gaining access to each
         SAN site, such as providing assistance in securing entry permits from
         SAN operators and providing invitation letters to the relevant
         countries (if required) to support visa applications.
<PAGE>   2227
THE CONTRACTOR

1.       SLSS WORKS

-        The Contractor shall conduct the SLSS Works at the following 5 TT&C SAN
         sites:

           -USA

           -Australia

           -Chile

           -Germany

           -South Africa

7 (seven) of the Contractor's engineers will participate in the First ICO
Satellite launch Tiger Team:

           Two RFT O&M Expert engineers

           Five Antenna Expert engineers

The total commitment is summarized in the schedule contained in Annex 1 hereto.

The Contractor will allocate engineers to the designated five TT&C sites upon
reception of Satellite Launch schedule from ICO. The support plan shall include:

(1)      Pre-launch support (2 days, prior satellite launch)

(2)      Launch extended support (2 days at Critical Deployment phase,
         comprising the launch date and the day immediately following the
         satellite launch date)

(3)      Post-launch support (12 days following Launch extended support, during
         the Manoeuvre and Bus IOT phase).

The Contractor's engineers will be available in accordance with the Annex 1 -
Schedule.
<PAGE>   2228
-        In the Annex 1 - Schedule, the following criteria are applied for the
         purposes of calculating the total man-months to be expended under the
         SLSS contract.

(1)      Man-hour for Travel and Normal Support:

"Man-hour" shall mean 8 Hours.

"Travel" shall mean any day spent by the Contractor's engineers to move from
their home location to the sites (DAY - 3) and vice versa (DAY -10 or DAY-15).

"Normal" shall mean the pre-launch support (DAY - 2 and - 1) before satellite
launch and the 12 days immediately following the Critical Deployment Phase (DAY
3 to 9 or DAY 3 to 14).

Working hours for the "Normal" day shall be 8 hours, which is nominally 8:00 to
17:00 (Lunch time 12:00 - 13:00) but depends on the physical and/or social
environment of the each site.

(2) Man-hour for 14 Hours Support:

"Man-hours" shall mean 14 Hours

The Contractor's engineers will stay at site at least 14 hours during the
Critical Deployment Phase (DAY 1 and 2). The Working time of the engineers shall
depend on the physical and/or social environment of the each site.

-        The Contractor's expert antenna engineers will be responsible for
         setting the satellite beacon acquisition threshold level on all five
         RFTs at their respective SAN sites. They will also be responsible for
         Phase adjustment fine-tuning of the Monopulse tracking system for all 5
         RFTs at their respective SAN sites. During the SLSS the Contractor's
         engineers shall monitor the status of RFT equipment by using the RFT
         O&M equipment. In case of emergency, at those sites where an expert RFT
         O&M engineer is not present, the Contractor's engineers shall ask
         remote support from the RFT O&M expert engineers. If requested by ICO
         or ICO's Tiger Team Leader to do so, the
<PAGE>   2229
         Contractor's engineer(s) shall provide engineering support services or
         provide appropriate advice to ICO.

-        In cases of emergency, or whenever requested by ICO or ICO's Tiger Team
         Leader to do so, the Contractor's RFT O&M expert engineers A or/and B
         shall, remotely, support the activities of the TT&C sites. Whilst this
         support can be provided as far as reasonably possible by using remote
         monitoring and the control function of RFT O&M subsystem via TT&C WAN,
         the particular nature of such support is NOT specified in the IGFR.

-        The support service to be performed by the Contractor's engineers under
         the SLSS shall be limited to that range of activities properly
         referable to the RFT subsystem function and performance. Except that in
         cases of emergency, other services, related to RFT subsystem, such as
         interface checks with the TT&C, IOT subsystems, shall be provided, if
         required, by the Contractor's engineers under ICO's guidance and
         direction.

2.       PILOT GENERATOR REPLACEMENT

The Contractor shall conduct the Pilot Generator Replacement Works at the
following 4 TT&C SAN sites:

         -USA

         -Australia

         -Germany

         -India

         One (1) of the Contractor's engineers will perform the Pilot Generator
         Replacement and test Works.

-        In USA SAN site, Pilot Generator Replacement Works shall be carried out
         at the same time of 2nd Phase IOT support Works.

3.       2ND PHASE USA IOT ENGINEERING SUPPORT WORKS

-        This work will be undertaken at the same time as USA Pilot Generator
         Replacement. Total estimated duration for USA IOT engineering support
         Work and Pilot Generator Replacement is
<PAGE>   2230
         five calendar days.

-        The Contractor shall make available one RFT engineer (hereinafter
         referred to as "Supervisor") at the Brewster SAN site to support the
         installation and test of IOT equipment for the requested five (5) days
         and not on a full time basis from the requested date. (The start date
         of the Work will be 17 January 2000).

-        This five (5) days support period can be extended by mutual agreement
         upon formal written request from ICO under the same terms and
         conditions. The price adjustment will be done using the man-day rate
         1,700US$ per extended day.

-        ICO will nominate at least one representative (hereinafter referred to
         as "ICO representative") for all necessary communications with the
         Contractor's Supervisor, for the whole period of the Work.

-        ICO or its subcontractor of IOT equipment (hereinafter referred to as
         "its subcontractor") will perform the installation and test works.

-        The Contractor's Supervisor shall support ICO or its subcontractor's
         on-site work. This support only covers the operation of RFT subsystem
         at the request of ICO or its subcontractor and technical instruction of
         the RFT equipment to allow ICO or its subcontractor to perform
         installation and test works.

-        All necessary hardware and software will be provided by ICO or its
         subcontractor.

-        The Contractor shall not make any modification or addition to the RFT
         subsystem hardware or software.

-        ICO will clearly indicate the completion of the IOT engineering support
         Works and issue certification confirming completion.
<PAGE>   2231
         Annex 1 - SLSS schedule

Schedule for First ICO Satellite Launch

<TABLE>
<CAPTION>
==================================================================================================================================
DAY                        -3   -2   -1      1      2    3    4    5    6    7    8    9   10   11   12   13   14  15  Total Hours
==================================================================================================================================
<S>                        <C> <C>  <C>  <C>    <C>    <C>  <C>  <C>  <C>  <C>  <C>  <C>  <C>  <C>  <C>  <C>  <C>  <C> <C>
Satellite Launch                           L
-----------------------------------------======================-------------------------------------------------------------------
Critical Deployment Phase                Critical Deployment***
-----------------------------------------===============================================------------------------------------------
Manoeuvre Phase                                          ****      Manoeuvre      ****
-------------------------------------------------------==========================================================-----------------
Bus IOT Phase                                                                **           Bus IOT            **
---------------------------------------------------------------------------======================================-----------------

----------------------------------------------------------------------------------------------------------------------------------
RFT O&M Expert A           8*  8**  8**  14***  14***  8**  8**  8**  8**  8**  8**  8**  8**  8**  8**  8**  8**  8*          156
----------------------------------------------------------------------------------------------------------------------------------
RFT O&M Expert B           8*  8**  8**  14***  14***  8**  8**  8**  8**  8**  8**  8**  8**  8**  8**  8**  8**  8*          156
----------------------------------------------------------------------------------------------------------------------------------
Antenna Expert A           8*  8**  8**  14***  14***  8**  8**  8**  8**  8**  8**  8**  8*                                   116
----------------------------------------------------------------------------------------------------------------------------------
Antenna Expert B           8*  8**  8**  14***  14***  8**  8**  8**  8**  8**  8**  8**  8*                                   116
----------------------------------------------------------------------------------------------------------------------------------
Antenna Expert C           8*  8**  8**  14***  14***  8**  8**  8**  8**  8**  8**  8**  8*                                   116
----------------------------------------------------------------------------------------------------------------------------------
Antenna Expert D           8*  8**  8**  14***  14***  8**  8**  8**  8**  8**  8**  8**  8*                                   116
----------------------------------------------------------------------------------------------------------------------------------
Antenna Expert E           8*  8**  8**  14***  14***  8**  8**  8**  8**  8**  8**  8**  8*                                   116
----------------------------------------------------------------------------------------------------------------------------------

==================================================================================================================================
</TABLE>

         L        Satellite Launch Date

         *        Travel

         **       Normal (8 Hours)

         ***      Full (14 Hours)

         ****     Manoeuvre
<PAGE>   2232
CHANGE ORDER NO: 20                                                 ATTACHMENT 3

                              Clause 15: Amendment
<PAGE>   2233
ATTACHMENT 3
AMENDED CLAUSE

Clause 15.1 is amended to read as follows:

15.1     ICO shall pay an aggregate total price of   *   for the
         complete performance by the Contractor of all of its obligations under
         this Agreement together with a further sum of   *   (in
         respect of freight and insurance as referred to in the Pricing
         Schedule), which amounts shall be subject to adjustment only in respect
         of (i) changes agreed under clause 9 and (ii) the cost of any Option
         items upon exercise of the relevant Option or other items or services
         purchased under clause 46; (such aggregate amount, as so adjusted,
         being referred to as the "Price"). Any Instalment payment made shall
         discharge the relevant portion of the Price and shall not be
         reclaimable by ICO but without prejudice to ICO's right to claim
         damages and/or indemnity in accordance with the provisions of this
         Agreement in the event of any breach by the Contractor.

         * Confidential Treatment Requested and the Redacted Material has been
           separately filed with the Commission.

<PAGE>   2234
[GRAPHIC OMITTED]                                       CHANGE ORDER NO: 21

                IGF SUPPLY AGREEMENT
                CONTRACT NO ICOO97 - 1016/GW            DATE:      FEBRUARY 2000

In accordance with clause 9 of the Supply Agreement dated March 3rd 1997 between
NEC Corporation and ICO Global Communications Holdings BV, the Agreement is
hereby amended as follows:

<TABLE>
<S>                                 <C>
Amended Clauses                     None

Amended Schedules                   See Attachment No. 2 (Schedule 9 - Pricing
                                    Schedule), Attachment No. 2 (Schedule 9 -
                                    Pricing Schedule, Appendix 2), Attachment
                                    No. 3 (Schedule 13 - IGFR Version 28.4,
                                    Replacement Pages)

Amended Annexes                     See Attachment No. 4 (Schedule 14  - Annex
                                    1, Table 2)

Amended Price                       None

Other Amendments                    None

Reference Correspondence            IUKC-567 dated 3rd June 1998, CCR No. 84;
                                    IUKC-807 dated 14th October 1998;
                                    SA1292/WG3/19981111/GLT dated 17th November
                                    1998.
</TABLE>

This Change Order No. 21 will now form part of the Supply Agreement dated March
3rd 1997 between the parties and shall be effective as at the date of this
Change Order No. and shall be governed by and construed in accordance with the
laws of England.

Except for the changes set out above, this Change Order No. 21 makes no further
amendments or modifications to the Agreement.

<TABLE>
<S>                                             <C>
Signed for and on behalf of                     Signed for and on behalf of
ICO GLOBAL COMMUNICATIONS HOLDINGS BV           NEC CORPORATION

/s/ G.S. Titzer
--------------------------------------          --------------------------------------
Supervising Officer                             Contractor's Authorised Representative

23-Feb-2000
--------------                                  ----------------
Date                                            Date
</TABLE>
<PAGE>   2235
                                                            IGF SUPPLY AGREEMENT
                                                    CONTRACT NO ICO097 - 1016/GW
                                                             CHANGE ORDER NO. 21

                               CHANGE ORDER NO: 21

                                     TO THE

                                SUPPLY AGREEMENT

                                     BETWEEN

                                 NEC CORPORATION

                                       AND

                      ICO GLOBAL COMMUNICATIONS HOLDINGS BV
<PAGE>   2236
                                                            IGF SUPPLY AGREEMENT
                                                    CONTRACT NO ICO097 - 1016/GW
                                                             CHANGE ORDER NO. 21

                 CHANGE ORDER NO: 21              ATTACHMENT 1
<PAGE>   2237
                                                            IGF SUPPLY AGREEMENT
                                                    CONTRACT NO ICO097 - 1016/GW
                                                             CHANGE ORDER NO. 21
                                                                    ATTACHMENT 1

1.       This Change Order No. 21 covers Contractor Change Request No. 84. The
         purpose of ICO Change Request No. 84 is to re-configure the AUC EIR and
         HLR.

2.       As at the date hereof the parties agree to amend the following parts of
         the Supply Agreement

         o    Schedule 9, Pricing Schedule 9, sections 3.2.5 to 3.2.6.4
              (inclusive) and Appendix-2 III.4 SWITCH PRICE LIST, as set out
              within Attachment 2 to this Change Order.

         o    Schedule 13 IGFR V 28.4,as set out in Attachment No. 3 to this
              Change Order.

         o    Schedule 14 Statement of Work Annex 1 - Contractor's Deliverables,
              Table 2, Deliverable Equipment - as set out in Attachment 4 to
              this Change Order.

3.       The parties undertake to ensure that the required changes specified
         within paragraph 2 above, shall be completed within 3 months of the
         date of this Change Order, or by such time as the parties shall
         otherwise agree. The parties agree that implementation of these changes
         shall be effective upon agreement without the need for the parties to
         formalise the incorporation of such agreed changes by way of further
         Change Order.

4.       The Parties agree that neither the Contractor nor any member of the NEC
         Team shall have any obligation to provide vendor financing to ICO
         pursuant to this Change Order.

5.       The Parties agree that this Change Order shall be categorised as a
         Non-clause 15.1 Change Order and further agree to amend Schedule 9
         (Pricing Schedule), Table 24 of the Supply Agreement to record the
         position.
<PAGE>   2238
                                                            IGF SUPPLY AGREEMENT
                                                    CONTRACT NO ICO097 - 1016/GW
                                                             CHANGE ORDER NO. 21

                  CHANGE ORDER NO: 21            ATTACHMENT 2

                          Schedule 9 - Pricing Schedule
                       Appendix-2 III.4 SWITCH PRICE LIST
<PAGE>   2239
                           -Commercial in Confidence-

                   * [A TOTAL OF 15 PAGES HAVE BEEN REDACTED]

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

<PAGE>   2240
                                        *
<PAGE>   2241
                                        *
<PAGE>   2242
                                        *
<PAGE>   2243
                                                            IGF SUPPLY AGREEMENT
                                                    CONTRACT NO ICO097 - 1016/GW
                                                             CHANGE ORDER NO. 21
                                                                ATTACHMENT NO. 2

                       AMENDED SCHEDULE 9 PRICING SCHEDULE
<PAGE>   2244
3.2.5.   HLR/AuC

3.2.5.1.   The price for an additional HLR platform, excluding DC UPS, with an
           initial   *   subscribers capacity is shown in Table 12-1.

                    TABLE 12-1 - HLR PLATFORM EXPANSION PRICE

<TABLE>
<CAPTION>
                                                                                                            PRICE
     NO.                                   DESCRIPTION                                 QUANTITY           (US$'000S)
<S>            <C>                                                                     <C>          <C>
      1        HLR Platform hardware for maximum 500k subscriber except DC Power
               Supply

      2        HLR Software for   *   subscriber                                                     *
</TABLE>

3.2.5.2.   The additional software licence fee for the growth in the installed
           HLR subscriber capacity over and above   *   subscribers per HLR is
           shown in Table 12-2.

                    TABLE 12-2 - HLR CAPACITY EXPANSION PRICE

<TABLE>
<CAPTION>
                                                                                                          PRICE
     NO.                                  DESCRIPTION                                 QUANTITY          (US$'000S)
<S>           <C>                                                                     <C>         <C>
      1       additional   *   subscribers, i.e.  *   subscriber total
              capacity

      2       additional   *   subscribers i.e.   *   subscriber total
              capacity
                                                                                                   *
      3       additional   *   subscribers i.e.   *   subscriber total
              capacity

      4       additional   *   subscribers i.e.   *   subscriber total
              capacity
</TABLE>

3.2.5.3.   The offered HLR hardware has been dimensioned to support   *
           subscribers as per the parameters defined in Section 9.2 of the IGFR.
           The hardware may be able to support   *   subscribers, however,
           this is subject to confirmation.

3.2.5.4.   The Contractor shall provide software licence fees for total capacity
           of greater than   *   subscribers subject to confirmation that the
           hardware can support total capacities greater than   *
           subscribers.

3.2.2.5    The additional hardware and software licence fee for the growth of
           the installed AuC subscriber capacity over and above   *
           subscribers is shown in Table 12-3.

                     TABLE 12-3 AUC CAPACITY EXPANSION PRICE

<TABLE>
<CAPTION>
    NO.                          DESCRIPTION                          QUANTITY            PRICE
                                                                                        (US$'000)
<S>          <C>                                                  <C>               <C>
     1

     2

     3

                                                        *
     4

     5

     6
</TABLE>

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   2245
<TABLE>
<S>          <C>                                                  <C>               <C>

     7

     8

                                                     *
     9

    10

    11

    12

</TABLE>

3.2.2.6  The AuC hardware and software for capacity expansion is offered on the
         basis that the hardware can be incorporated into the HLR Platform.

 3.2.6.    EIR

3.2.6.1. The price for an additional EIR platform, excluding DC UPS, with an
         initial 500,000 subscribers capacity is shown in Table 13-1.

                    TABLE 13-1 - EIR PLATFORM EXPANSION PRICE

<TABLE>
<CAPTION>
                                                                                                            PRICE
     NO.                                   DESCRIPTION                                 QUANTITY           (US$'000S)
<S>            <C>                                                                     <C>          <C>
      1        EIR Platform hardware for maximum   *   subscriber except DC
               Power Supply
                                                                                                     *
      2        EIR Software for   *   subscriber
</TABLE>

3.2.6.2    The additional software licence fee for the growth in the installed
           EIR subscriber capacity over and above    *   subscribers per EIR is
           shown in Table 13-2.

                     TABLE 13-2 EIR CAPACITY EXPANSION PRICE

<TABLE>
<CAPTION>
    NO.                          DESCRIPTION                          QUANTITY            PRICE
                                                                                        (US$'000)
<S>          <C>                                                      <C>               <C>
     1       Additional  *  subscribers, i.e.  *
             subscriber total capacity

     2       Additional  *  subscribers, i.e.  *
             subscriber total capacity

     3       Additional  *  subscribers, i.e.  *
             subscriber total capacity                                               *

     4       Additional  *  subscribers, i.e.  *
             subscriber total capacity

     5       Additional  *  subscribers, i.e.  *
             subscriber total capacity

     6       Additional  *  subscribers, i.e.  *
             subscriber total capacity
</TABLE>

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

<PAGE>   2246
<TABLE>
<S>          <C>                                                      <C>               <C>
     7

     8

     9
                                                    *

    10

    11

</TABLE>

3.2.6.3. The offered EIR hardware has a rated total capacity of  *
         subscribers based on the following values of Authentication and IMEI
         checking parameters: Triplets needed per sub per busy hour is 0.09,
         Number of Busy Hours per day is 10, Quantity of triplets in response
         per request is 3, Busy Hour IMEI checks per subscriber is 0.04.

         * Confidential Treatment Requested and the Redacted Material has been
           separately filed with the Commission.
<PAGE>   2247
                                                            IGF SUPPLY AGREEMENT
                                                    CONTRACT NO ICO097 - 1016/GW
                                                             CHANGE ORDER NO. 21

                  CHANGE ORDER NO: 21              ATTACHMENT 3

               Schedule 13 - IGFR Version 28.4 (Replacement Pages)
<PAGE>   2248
                                                            IGF SUPPLY AGREEMENT
                                                    CONTRACT NO ICO097 - 1016/GW
                                                             CHANGE ORDER NO. 21
                                                                    ATTACHMENT 3

                           IGFR CHANGES (VERSION 28.4)

7.8.4.9.4. FAULT MANAGEMENT

         7.8.4.9.4.1. The NODE-OS shall monitor the operational state of the
         AuC.

         7.8.4.9.4.2. EMPTY.

         7.8.4.9.4.3. Alarms to be managed shall include:

                  1.   Local AuC Hardware Fault Alarms

                  2.   Database Update alarms

                  3.   Automatic Database recovery initiated alarms (F/R)

                  4.   Database threshold alarms

                  5.   Signalling failures on GSM interface links (F/R)

                  7.   Threshold Alarms.
<PAGE>   2249
                                                            IGF SUPPLY AGREEMENT
                                                    CONTRACT NO ICO097 - 1016/GW
                                                             CHANGE ORDER NO. 21

                  CHANGE ORDER NO: 21             ATTACHMENT 4

                 Schedule 14 - Annex 1 Contractor's Deliverables
                         TABLE 2 - SWITCH Equipment List

<PAGE>   2250
SWITCH EQUIPMENT LIST

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------------
                                                                SAN       SAN         SAN        SAN         SAN         SAN
                                                                                      For        For      For South
                                                              For ICO-   For USA   Australia   Germany      Africa    For India
                                                                NET      (Type 2)   (Type 1)   (Type 1)    (Type 1)    (Type 2)
                                                           ----------------------------------------------------------------------
Item No.                          Description                  Q'ty       Q'ty        Q'ty       Q'ty        Q'ty        Q'ty
---------------------------------------------------------------------------------------------------------------------------------
<S>                                                           <C>        <C>       <C>         <C>        <C>         <C>
II.        HARDWARE

1.         MSSC HARDWARE                                                    1           1          1           1           1

1.1        CPS CABINET                                                      1           1          1           1           1
           Compact APZ 212 20 cabinet incl.
           cabling and mag. incl. 64 MW PS, 512 MW DS,
           8 RP-bus interfaces (1 parallell, 7 serial).
           Standard cables and cabinets.

1.2        IOG20 / PDSPL2 / CLM CABINET                                     1           1          1           1           1
           IOG20-M (two shelves), one GDM-H magazine
           equipped with 5 PDSPL2 (3 for CCD func., 1 for
           CSK-D func., 1 for KRD-D func.), 1 ETC5  and
           one Test Telephone connection, CLM and
           RCM, fan, internal cabling and cabinet.

1.3        DTI / C7 CABINET
           2 DTI in conversion box equipped with 4 TR-
           boards (16 channels) in each magazine, one
           GDM-H magazine with 14 ETC5, two GDM-H
           magazines with 8 RPG2 each for C7 signalling,
           one GDM-H magazine equipped with 5 PDSPL2
           (3 for CCD func., 1 for CSK-D func., 1 for CANS
           func.), fan, internal cabling and cabinet

1.4        DTI / C7 CABINET                                                 1           1          2           2           2
           2 DTI in conversion box equipped with 8 TR-
           boards (32 channels) in each magazine, one
           GDM-H magazine with 14 ETC5, two GDM-H
           magazines with 8 RPG2 each for C7 signalling,
           one GDM-H magazine equipped with 5 PDSPL2
           (3 for CCD func., 1 for CSK-D func., 1 for CANS
           func.), fan, internal cabling and cabinet

1.5        SS7 CABINET                                                      1
           This cabinet contains unrationalized DSOA
           signaling terminals and RP boards housed
           together in a 202 magazine. Each shelf
           supports 4 signaling links (2 per Magazine)
           which gives a total of 16 signaling Links in the
           cabinet.

1.6        GS 16K CABINET                                                   1           1                      1           1
           16k GS 10.0, internal cabling, GS magazines
           and cabinet

1.7        GS 32K CABINET                                                                          1
           32k GS 10.0, internal cabling, GS magazines
           and cabinet

1.8        AST1 CABINET                                                     1           1          1           1           1
           1 AST V3 (64 ch.), one GDM-H magazine
           equipped with 16 IO2B for DL2/DL3

1.9        TRAFFIC CABINET                                                  2           2          4           2           2
           One ASMECP404 magazine with 16 EC4,
           three GDM-H magazines with 14 ETC5, and one
           GDM-H magazine with 4 PDSPL2 (for CSR-D
           functionality), internal cabling and cabinet.
</TABLE>

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------------------
                                                                   SAN         SAN           SAN          SAN        SAN
                                                                                                                     For
                                                                 For Chile   For Brazil   For Mexico    For UAE   Indonesia
                                                                 (Type 2)     (Type 2)     (Type 2)     (Type 2)   (Type 2)
                                                           --------------------------------------------------------------------
Item No.                          Description                     Q'ty         Q'ty          Q'ty         Q'ty       Q'ty
-------------------------------------------------------------------------------------------------------------------------------
<S>                                                              <C>         <C>          <C>           <C>       <C>
II.        HARDWARE

1.         MSSC HARDWARE                                            1            1             1            1          1

1.1        CPS CABINET                                              1            1             1            1          1
           Compact APZ 212 20 cabinet incl.
           cabling and mag. incl. 64 MW PS, 512 MW DS,
           8 RP-bus interfaces (1 parallell, 7 serial).
           Standard cables and cabinets.

1.2        IOG20 / PDSPL2 / CLM CABINET                             1            1             1            1          1
           IOG20-M (two shelves), one GDM-H magazine
           equipped with 5 PDSPL2 (3 for CCD func., 1 for
           CSK-D func., 1 for KRD-D func.), 1 ETC5  and
           one Test Telephone connection, CLM and
           RCM, fan, internal cabling and cabinet.

1.3        DTI / C7 CABINET                                         1                          1
           2 DTI in conversion box equipped with 4 TR-
           boards (16 channels) in each magazine, one
           GDM-H magazine with 14 ETC5, two GDM-H
           magazines with 8 RPG2 each for C7 signalling,
           one GDM-H magazine equipped with 5 PDSPL2
           (3 for CCD func., 1 for CSK-D func., 1 for CANS
           func.), fan, internal cabling and cabinet

1.4        DTI / C7 CABINET                                         1            2             1            2          2
           2 DTI in conversion box equipped with 8 TR-
           boards (32 channels) in each magazine, one
           GDM-H magazine with 14 ETC5, two GDM-H
           magazines with 8 RPG2 each for C7 signalling,
           one GDM-H magazine equipped with 5 PDSPL2
           (3 for CCD func., 1 for CSK-D func., 1 for CANS
           func.), fan, internal cabling and cabinet

1.5        SS7 CABINET
           This cabinet contains unrationalized DSOA
           signaling terminals and RP boards housed
           together in a 202 magazine. Each shelf
           supports 4 signaling links(2 per Magzine)
           which gives a total of 16 signaling Links in the
           cabinet.

1.6        GS 16K CABINET                                           1            1             1            1          1
           16k GS 10.0, internal cabling, GS magazines
           and cabinet

1.7        GS 32K CABINET
           32k GS 10.0, internal cabling, GS magazines
           and cabinet

1.8        AST1 CABINET                                             1            1             1            1          1
           1 AST V3 (64 ch. ), one GDM-H magazine
           equipped with 16 IO2B for DL2/DL3

1.9        TRAFFIC CABINET                                          2            2             2            2           2
           One ASMECP404 magazine with 16 EC4,
           three GDM-H magazines with 14 ETC5, and one
           GDM-H magazine with 4 PDSPL2 (for CSR-D
           functionality), internal cabling and cabinet.
</TABLE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------
                                                                  SAN         SAN         NMC       NMC

                                                                For China   For Korea
                                                                 (Type 2)    (Type 1)   Primary   Back-up   TOTAL
                                                           -------------------------------------------------------
Item No.                          Description                     Q'ty        Q'ty        Q'ty      Q'ty     Q'ty
------------------------------------------------------------------------------------------------------------------
<S>                                                             <C>         <C>         <C>       <C>       <C>
II.        HARDWARE

1.         MSSC HARDWARE                                            1           1                              12

1.1        CPS CABINET                                              1           1                              12
           Compact APZ 212 20 cabinet incl.
           cabling and mag. incl. 64 MW PS, 512 MW DS,
           8 RP-bus interfaces (1 parallell, 7 serial).
           Standard cables and cabinets.

1.2        IOG20 / PDSPL2 / CLM CABINET                             1           1                              12
           IOG20-M (two shelves), one GDM-H magazine
           equipped with 5 PDSPL2 (3 for CCD func., 1 for
           CSK-D func., 1 for KRD-D func.), 1 ETC5  and
           one Test Telephone connection, CLM and
           RCM, fan, internal cabling and cabinet.

1.3        DTI / C7 CABINET                                         1           1                               4
           2 DTI in conversion box equipped with 4 TR-
           boards (16 channels) in each magazine, one
           GDM-H magazine with 14 ETC5, two GDM-H
           magazines with 8 RPG2 each for C7 signalling,
           one GDM-H magazine equipped with 5 PDSPL2
           (3 for CCD func., 1 for CSK-D func., 1 for CANS
           func.), fan, internal cabling and cabinet

1.4        DTI / C7 CABINET                                         1           1                              18
           2 DTI in conversion box equipped with 8 TR-
           boards (32 channels) in each magazine, one
           GDM-H magazine with 14 ETC5, two GDM-H
           magazines with 8 RPG2 each for C7 signalling,
           one GDM-H magazine equipped with 5 PDSPL2
           (3 for CCD func., 1 for CSK-D func., 1 for CANS
           func.), fan, internal cabling and cabinet

1.5        SS7 CABINET                                                                                          1
           This cabinet contains unrationalized DSOA
           signaling terminals and RP boards housed
           together in a 202 magazine. Each shelf
           supports 4 signaling links(2 per Magzine)
           which gives a total of 16 signaling Links in the
           cabinet.

1.6        GS 16K CABINET                                           1           1                              11
           16k GS 10.0, internal cabling, GS magazines
           and cabinet

1.7        GS 32K CABINET                                                                                       1
           32k GS 10.0, internal cabling, GS magazines
           and cabinet

1.8        AST1 CABINET                                             1           1                              12
           1 AST V3 (64 ch. ), one GDM-H magazine
           equipped with 16 IO2B for DL2/DL3

1.9        TRAFFIC CABINET                                          1           2                              24
           One ASMECP404 magazine with 16 EC4,
           three GDM-H magazines with 14 ETC5, and one
           GDM-H magazine with 4 PDSPL2 (for CSR-D
           functionality), internal cabling and cabinet.

</TABLE>

Commercial-in-confidence                                             Page 1 of 3

<PAGE>   2251
<TABLE>
<CAPTION>
SWITCH EQUIPMENT LIST
---------------------------------------------------------------------------------------------------------------------------------
                                                                SAN       SAN         SAN        SAN         SAN         SAN
                                                                                      For        For      For South
                                                              For ICQ-   For USA   Australia   Germany      Africa    For India
                                                                NET      Type 2     (Type 1)   (Type 1)    (Type 1)    (Type 2)
                                                           ----------------------------------------------------------------------
Item No.                          Description                  Q'ty       Q'ty        Q'ty       Q'ty        Q'ty        Q'ty
---------------------------------------------------------------------------------------------------------------------------------
<S>                                                           <C>        <C>       <C>         <C>        <C>         <C>
1.10        WORK STATION                                                    1           1          1           1           1
              Visual Display                                                2           2          2           2           2
              Printer                                                       2           2          2           2           2
              Alarm Panel                                                   1           1          1           1           1

2          HPN                                                              1           1          1           1           1
2.1        Sun Ultra 2/ 1200 Server with SS#7                               2           2          2           2           2
           interface board including 200MHz, 64Mb
           RAM, 2.1 Gbyte Disk or equivalent system
2.2        HPN Transmit Channel Unit                                        5           5          5           5           5
2.3        HPN Acknowledgement Channel Unit                                10          10         10          10          10
2.4        Power Supply                                                     4           4          4           4           4
2.5        IF distribution (supports dual polarization)                     1           1          1           1           1
2.6        Fan Tray                                                         1           1          1           1           1
2.7        12 port Ethernet Hub                                             2           2          2           2           2
2.8        Rack mounting                                                    1           1          1           1           1

3          AUC/EIR
3.1        AUC AM (2x250K SUBS)                                                                    1
3.2        EIR (500K SUBS)                                                                         1

4          HLR FOR MAXIMUM 500K SUBSCRIBERS                                                        1
4.1          Trunk and Signalling hardware                                                         1
4.2           Central Processor hardware                                                           1
4.3           Input/Output & Mag. Tape Group hardware                                              1
4.4           Miscellaneous                                                                        1

5          DC NON-BREAK SYSTEM (AC/DC
           CONVERTER WITH 2-HOUR BATTERY)
5.1        Hardware                                                         3           1          4           1           1

6          OSS (MAIN PLUS BACK-UP)
6.1        HW Conf 3 (3 servers + 1 work station)
6.2        Work Station                                                     1           1          1           1           1
6.3        Disk mirror conf 3
6.4        Integration fee conf 3

7          DOCUMENTATION                                      incl.      incl.       incl.      incl.       incl.       incl.

8          SPARES
8.1        MSSC                                                             1           1          1           1           1
8.2        HLR                                                                                     1
8.3        DC Non-break System                                              1           1          1           1           1

9          OSS
9.1        Maps for NSP
9.2        Remote Access set-up                                             1           1          1           1           1

10         ILR IS-41
10.1       ILR FOR IS.41-ICO / ICO-IS.41                                    1

11         MESSAGING SYSTEM
11.1       System hardware and Software                                                            1
11.2       Spares                                                                                  1

12         LEGAL INTERCEPTON
12.1       LIAS                                                             1           1          1           1           1
12.2       LIMS
12.3       Monitoring center back end
           system for testing
13         PCS/HPN MODEM
</TABLE>

<TABLE>
<CAPTION>
SWITCH EQUIPMENT LIST
-----------------------------------------------------------------------------------------------------------------------------
                                                                  SAN         SAN           SAN          SAN        SAN
                                                                                                                    For
                                                                For Chile   For Brazil   For Mexico    For UAE   Indonesia
                                                                (Type 2)    (Type 2)      (Type 2)     (Type 2)   (Type 2)
                                                           ------------------------------------------------------------------
Item No.                          Description                    Q'ty         Q'ty          Q'ty         Q'ty       Q'ty
-----------------------------------------------------------------------------------------------------------------------------
<S>                                                             <C>         <C>          <C>           <C>       <C>
1.10        WORK STATION                                           1            1             1            1          1
              Visual Display                                       2            2             2            2          2
              Printer                                              2            2             2            2          2
              Alarm Panel                                          1            1             1            1          1

2          HPN                                                     1            1             1            1          1
2.1        Sun Ultra 2/ 1200 Server with SS#7                      2            2             2            2          2
           interface board including 200MHz, 64Mb
           RAM, 2.1 Gbyte Disk or equivalent system
2.2        HPN Transmit Channel Unit                               5            5             5            5          5
2.3        HPN Acknowledgement Channel Unit                       10           10            10           10         10
2.4        Power Supply                                            4            4             4            4          4
2.5        IF distribution (supports dual polarization)            1            1             1            1          1
2.6        Fan Tray                                                1            1             1            1          1
2.7        12 port Ethernet Hub                                    2            2             2            2          2
2.8        Rack mounting                                           1            1             1            1          1

3          AUC/EIR
3.1        AUC AM (2x250K SUBS)                                                               1                       2
3.2        EIR (500K SUBS)                                                                    1                       1

4          HLR FOR MAXIMUM 500K SUBSCRIBERS
4.1          Trunk and Signalling hardware
4.2           Central Processor hardware
4.3           Input/Output & Mag. Tape Group hardware
4.4           Miscellaneous

5          DC NON-BREAK SYSTEM (AC/DC
           CONVERTER WITH 2-HOUR BATTERY)
5.1        Hardware                                                1            3             2            1          2

6          OSS (MAIN PLUS BACK-UP)
6.1        HW Conf 3 (3 servers + 1 work station)
6.2        Work Station                                            1            1             1            1          1
6.3        Disk mirror conf 3
6.4        Integration fee conf 3

7          DOCUMENTATION                                        incl.        incl.         incl.        incl.      incl.

8          SPARES
8.1        MSSC                                                    1            1             1            1          1
8.2        HLR
8.3        DC Non-break System                                     1            1             1            1          1

9          OSS
9.1        Maps for NSP
9.2        Remote Access set-up                                    1            1             1            1          1

10         ILR IS-41
10.1       ILR FOR IS.41-ICO / ICO-IS.41                                        1

11         MESSAGING SYSTEM
11.1       System hardware and Software                                                       1                       1
11.2       Spares                                                                             1                       1

12         LEGAL INTERCEPTON
12.1       LIAS                                                    1            1             1            1          1
12.2       LIMS
12.3       Monitoring center back end
           system for testing
13         PCS/HPN MODEM
</TABLE>

<TABLE>
<CAPTION>
SWITCH EQUIPMENT LIST
----------------------------------------------------------------------------------------------------------------
                                                                SAN         SAN         NMC       NMC

                                                              For China   For Korea
                                                               (Type 2)    (Type 1)   Primary   Back-up   TOTAL
                                                           -----------------------------------------------------
Item No.                          Description                   Q'ty        Q'ty        Q'ty      Q'ty     Q'ty
----------------------------------------------------------------------------------------------------------------
<S>                                                           <C>         <C>         <C>       <C>       <C>
           conversion, fan, internal cabling and cabinet

1.9        TRAFFIC CABINET                                        1           2                              24
           One ASMECP404 magazine with 16 EC4,
           three GDM-H magazines with 14 ETC5, and one
           GDM-H magazine with 4 PDSPL2 (for CSR-D
           functionality), internal cabling and cabinet.

1.10        WORK STATION                                          1           1                              12
              Visual Display                                      2           2                              24
              Printer                                             2           2                              24
              Alarm Panel                                         1           1                              12

2          HPN                                                    1           1                              12
2.1        Sun Ultra 2/ 1200 Server with SS#7                     2           2                              24
           interface board including 200MHz, 64Mb
           RAM, 2.1 Gbyte Disk or equivalent system
2.2        HPN Transmit Channel Unit                              5           5                              60
2.3        HPN Acknowledgement Channel Unit                      10          10                             120
2.4        Power Supply                                           4           4                              48
2.5        IF distribution (supports dual polarization)           1           1                              12
2.6        Fan Tray                                               1           1                              12
2.7        12 port Ethernet Hub                                   2           2                              24
2.8        Rack mounting                                          1           1                              12

3          AUC/EIR   (CAPACITY FOR 500K SUBS)                                             1                   2

4          HLR FOR MAXIMUM 500K SUBSCRIBERS                                               1                   2
4.1          Trunk and Signalling hardware                                                1                   2
4.2           Central Processor hardware                                                  1                   2
4.3           Input/Output & Mag. Tape Group hardware                                     1                   2
4.4           Miscellaneous                                                               1                   2

5          DC NON-BREAK SYSTEM (AC/DC
           CONVERTER WITH 2-HOUR BATTERY)
5.1        Hardware                                               1           3           1         1        25

6          OSS (MAIN PLUS BACK-UP)
6.1        HW Conf 3 (3 servers + 1 work station)                                         1         1         2
6.2        Work Station                                           1           1                              12
6.3        Disk mirror conf 3                                                             1         1     1 Lot
6.4        Integration fee conf 3                                                         1         1     1 Lot

7          DOCUMENTATION                                       incl.       incl.                           incl.

8          SPARES
8.1        MSSC                                                   1           1                              12
8.2        HLR                                                                            1                   2
8.3        DC Non-break System                                    1           1           1         1        14

9          OSS
9.1        Maps for NSP                                                                   1         1         2
9.2        Remote Access set-up                                   1           1                              12

10         ILR IS-41
10.1       ILR FOR IS.41-ICO / ICO-IS.41                                      1                               3

11         MESSAGING SYSTEM
11.1       System hardware and Software                                                                       3
11.2       Spares                                                                                             3

12         LEGAL INTERCEPTON
12.1       LIAS                                                   1           1                              12
12.2       LIMS                                                                                     1         1
12.3       Monitoring center back end                                                               1         1
           system for testing
13         PCS/HPN MODEM
</TABLE>

1999/1/18                   Commercial-in-confidence                 Page 2 of 3
<PAGE>   2252
                                                                 Change Order 21

<TABLE>
<CAPTION>
SWITCH EQUIPMENT LIST
---------------------------------------------------------------------------------------------------------------------------------
                                                                                      SAN        SAN         SAN
                                                                SAN       SAN         For        For      For South      SAN
                                                              For ICO-   For USA   Australia   Germany      Africa    For India
                                                                NET     (Type 2)    (Type 1)   (Type 1)    (Type 1)    (Type 2)
                                                           ----------------------------------------------------------------------
Item No.                          Description                  Q'ty       Q'ty        Q'ty       Q'ty        Q'ty        Q'ty
---------------------------------------------------------------------------------------------------------------------------------
<S>                                                           <C>        <C>       <C>         <C>        <C>         <C>
13.1       HPN PCS Modem                                                    1           1          1           1           1

           SOFTWARE LICENCE

1          MSSC                                                           ETC         ETC        ETC         ETC         ETC
1.1        MSSC                                                            98          98        196          70         112

1.2        Excess ETC magazine adjustment                                 -28           0          0           0           0

2          HPN                                                              1           1          1           1           1

3          AuC and EIR
3.1        AuC AM Software 250K subs (each site)                                                   1
3.2        AuC/EIR Software 500K subs                                                              1

4          HLR
4.1        HLR 'Software for 50K Subs                                                              1
4.2        HLR 'Software for 200K Subs                                                             1

5          NATURAL LANGUAGE SUPPORT
5.1        Software per traffic ETC at each site                           70          98        196          70         112
5.2        Software for 250k subscriber at HLR site                                                1

6          OSS
6.1        Features (AuC/EIR alarm handling, MXE
           alarm, Telnet)
6.2        Text file alarm adaption
6.3        License fee conf 3
6.4        MSSC, HLR, ILR connection fee

7          ILR IS-41
7.1        ILR Standard software (30% discount)                             1
7.2        ILR ICO software (35% discount)                                  1
7.3        ILR TMOS lite-agent (35% discount)                               1
7.4        ILR R2:IMSI in IS41 (35% discount)                               1

8          MESSAGING SYSTEM

9          Legal Intercepton

10         PCS/HPN Modem
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
SWITCH EQUIPMENT LIST
----------------------------------------------------------------------------------------------------------------------------
                                                                                                                   SAN
                                                                 SAN         SAN           SAN          SAN        For
                                                               For Chile   For Brazil   For Mexico    For UAE   Indonesia
                                                               (Type 2)    (Type 2)      (Type 2)     (Type 2)   (Type 2)
                                                           -----------------------------------------------------------------
Item No.                          Description                   Q'ty         Q'ty          Q'ty         Q'ty       Q'ty
----------------------------------------------------------------------------------------------------------------------------
<S>                                                            <C>         <C>          <C>           <C>       <C>
13.1       HPN PCS Modem                                          1            1             1            1          1

           SOFTWARE LICENCE

1          MSSC                                                 ETC          ETC           ETC          ETC        ETC
1.1        MSSC                                                 112          112           112          112        112

1.2        Excess ETC magazine adjustment                       -28          -14           -14            0        -14

2          HPN                                                    1            1             1            1          1

3          AuC and EIR
3.1        AuC Software 250K subs (each site)
3.2        EIR Software 500K subs

4          HLR
4.1        HLR 'Software for 50K Subs
4.2        HLR 'Software for 200K Subs

5          NATURAL LANGUAGE SUPPORT
5.1        Software per traffic ETC at each site                 84           98            98          112         98
5.2        Software for 250k subscriber at HLR site

6          OSS
6.1        Features (AuC/EIR alarm handling, MXE
           alarm, Telnet)
6.2        Text file alarm adaption
6.3        License fee conf 3
6.4        MSSC, HLR, ILR connection fee

7          ILR IS-41
7.1        ILR Standard software (30% discount)                                1
7.2        ILR ICO software (35% discount)                                     1
7.3        ILR TMOS lite-agent (35% discount)                                  1
7.4        ILR R2:IMSI in IS41 (35% discount)                                  1

8          MESSAGING SYSTEM

9          Legal Intercepton

10         PCS/HPN Modem
----------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
SWITCH EQUIPMENT LIST
-------------------------------------------------------------------------------------------------------------------
                                                                   SAN         SAN
                                                                 For China   For Korea     NMC       NMC
                                                                  (Type 2)    (Type 1)   Primary   Back-up   TOTAL
                                                           --------------------------------------------------------
Item No.                          Description                      Q'ty        Q'ty        Q'ty      Q'ty     Q'ty
-------------------------------------------------------------------------------------------------------------------
<S>                                                              <C>         <C>         <C>       <C>       <C>
13.1       HPN PCS Modem                                             1           1                              12

           SOFTWARE LICENCE

1          MSSC                                                    ETC         ETC                             ETC
1.1        MSSC                                                     70         112                           1,316

1.2        Excess ETC magazine adjustment                            0         -28                            -126

2          HPN                                                       1           1                              12

3          AuC and EIR
3.1        AuC Software 250K subs (each site)                                                1                   2
3.2        EIR  Software 500K subs                                                                               1

4          HLR
4.1        HLR 'Software for 50K Subs                                                        1                   2
4.2        HLR 'Software for 200K Subs                                                       1                   2

5          NATURAL LANGUAGE SUPPORT
5.1        Software per traffic ETC at each site                    70          84                           1,190
5.2        Software for 250k subscriber at HLR site                                          1                   2

6          OSS
6.1        Features (AuC/EIR alarm handling, MXE                                             2                   2
           alarm, Telnet)
6.2        Text file alarm adaption                                                          1         1         2
6.3        License fee conf 3                                                                1         1         2
6.4        MSSC, HLR, ILR connection fee                                                     1                   1

7          ILR IS-41
7.1        ILR Standard software (30% discount)                                  1                               3
7.2        ILR ICO software (35% discount)                                       1                               3
7.3        ILR TMOS lite-agent (35% discount)                                    1                               3
7.4        ILR R2:IMSI in IS41 (35% discount)                                    1                               3

8          MESSAGING SYSTEM

9          Legal Intercepton

10         PCS/HPN Modem
-------------------------------------------------------------------------------------------------------------------
</TABLE>

Notes:

         1.       Dimensioning of MSSC's is based against the traffic forecast
                  version 3 supplied with Change Request Number 6 amendment 2
                  plus the subsequent spreadsheet indicating TMN requirements

         2.       By agreement from ICO Germany has 1 ETC less than calculated
                  requirement and South Africa has 3 ETC's less than calculated
                  requirement

         3.       By request from ICO Brazil and South Korea have an additional
                  ETC included to provide a level of redundancy in links to the
                  ILR platforms

         4.       Quantities and Prices for DC UPS are based upon the price
                  expansion table proposed as an amendment to the Pricing
                  Schedule

         5.       ETC licences for Natural Language Support are priced against
                  ETC's used for traffic only

         6.       Software licences for OSS (TMOS) connections have been
                  maintained at the level for 16 connections instead of 21 as
                  agreed with ICO

1999/1/18                   Commercial-in-Confidence                 Page 3 of 3
<PAGE>   2253

[ICO LOGO]                                 CHANGE ORDER NO: 22

           IGF SUPPLY AGREEMENT            "Monitor Size Upgrade at PNMC & BNMC"
           CONTRACT NO ICOO97 - 1016/GW

                                            DATE: 21st      APRIL 2000

In accordance with clause 9 of the Supply Agreement dated March 3rd 1997 between
NEC Corporation and ICO Global Communications Holdings BV, the Agreement is
hereby amended as follows:

<TABLE>
<S>                                    <C>
Amended Clauses                        See Attachment No 2 (Clause 15.1)
Amended Schedules                      See Attachment No. 3  (Schedule 9 - New Pricing Schedule Appendices 1)
Amended Annexes                        None
Amended Price                          None
Other Amendments                       None
Reference Correspondence               SA1019/WG8/19980804/GLT(4 August, 1998)
                                       IUKC-742(PO)(8 September, 1998)
                                       SA1125/WG8/19980901/GLT(17 September, 1998)
</TABLE>

This Change Order No. 22 will now form part of the Supply Agreement dated March
3rd 1997 between the parties and shall be effective from the date of this Change
Order and shall be governed by and construed in accordance with the laws of
England. Except for the changes set out above, this Change Order No. 22 makes no
further amendments or modifications to the Agreement.

Signed for and on behalf of               Signed for and on behalf of
ICO GLOBAL COMMUNICATIONS HOLDINGS BV     NEC CORPORATION

/s/ ***                                   /s/ Minoru Usui
--------------------------------          --------------------------------------
SUP & Chief        Officer                Contractor's Authorised Representative
                                          Minoru Usui, General Manager
                                          Europe, Middle East and Africa
                                          Sales Division

14/4/00                                   21st April, 2000
--------------------------------          -----------------------
Date                                      Date
      Los Angeles                               Tokyo
<PAGE>   2254

                                              CONTRACT NUMBER: ICOO 97 - 1016/GW
                                                              CHANGE ORDER NO:22

                               CHANGE ORDER NO: 22

                                     TO THE

                                SUPPLY AGREEMENT

                                     BETWEEN

                                 NEC CORPORATION

                                       AND

                      ICO GLOBAL COMMUNICATIONS HOLDINGS BV

<PAGE>   2255

           CHANGE ORDER NO:22                     ATTACHMENT 1

<PAGE>   2256

                                                            IGF SUPPLY AGREEMENT
                                                    CONTRACT NO ICOO97 - 1016/GW
                                              ATTACHMENT 1 TO CHANGE ORDER NO.22

1.    The purpose of ICO Change Request No.22 Monitor Size At PNMC & BNMC is to
      propose change in the Monitor size of NMS Work Station at NMC Sites from
      19 inch to 21 inch. The change represents a uniformity of operation
      conditions by using the standardised size of monitors with better view.

2.    The price for the upgrade cost of the Monitor Size from 19 inches to 21
      inches is   *   . Under this Change Order No. 22, 14 Monitors
      shall be upgraded, details of which is as follows:

      - 5 monitors per Link-OSS/SRMC      x 2 Sites        = 10 monitors
      - 1 monitor per DCN-OAM             x 2 Sites        = 2 monitors
      - 1 monitor per RTF                 x 2 Sites        = 2 monitors
      TOTAL                                                = 14 monitors

      Price for this Change Order (* x 14 monitors) = *

     As at the date hereof the parties agree to amend Schedule 9, Pricing
     Schedule Appendix-2 III.6 NMC/SRMC/SAN-OSS PRICE LIST. The amendments to
     the NMC/SRMC/SAN-OSS PRICE LIST

     These increments are set out in detail in Attachments 3 to this Change
     Order. The parties recognise the need to duly reflect these agreed changes
     elsewhere within the Supply Agreement, as set out below:-

     -    Schedule 9 - Pricing Schedule
     -    Table 1    - Supply Agreement Price Summary
     -    Table 24 - History of Change Orders

     -    Schedule 9 - Pricing Schedule Appendix 2
          -    I     PRICE SUMMARY
          -    II.1  PRICE SUMMARY (NRE)

     -    IGFR V 28.4 Change
          None

     -    Schedule 11 - Payment Schedule and Payment Schedule Classification
          Summary
          -   I        PAYMENT SCHEDULE CLASSIFICATION SUMMARY
          -   III.6    PAYMENT SCHEDULE CLASSIFICATION SUMMARY
                       -NMC/SRMC/SAN-OSS

          * Confidential Treatment Requested and the Redacted Material has been
            separately filed with the Commission.
<PAGE>   2257

3.    The parties undertake to ensure that the required changes specified within
      paragraphs 2, above, shall be completed within 3 months of the date of
      this Change Order or by such time as the parties shall otherwise agree.
      The parties agree that implementation of these changes shall be effective
      upon agreement without the need for the parties to formalise the
      incorporation of such agreed changes by way of further Change Order.

4.    The Parties agree that neither the Contractor nor any member of the NEC
      Team shall have any obligation to provide vendor financing to ICO pursuant
      to this Change Order.

5.    For the purposes of this Change Order, the parties agree that the
      applicable equipment payment terms shall be as follows.

6.    The Parties agree that this Change Order shall be categorised as a clause
      15.1 Change Order.

7.    100% of the price of this Change Order shall be invoiced by the
      Contractor, to ICO, upon the date of signature of this Change Order and
      ICO shall pay such invoice, submitted in the form specified in Schedule 4
      of the Supply Agreement, within 30 days.

8.    RATIFICATION OF ICO SUPPLY AGREEMENT

      Except as provided for herein, the terms and conditions of the Supply
      Agreement shall continue in full force and effect.

8.1.     This Change Order sets forth the entire agreement between the parties
         as to the subject matter hereof and supersedes all prior discussions
         between them, and neither of the parties shall be bound by any
         conditions, definitions, warranties, understandings, nor
         representations with respect to such subject matter other than as
         expressly provided herein.

8.2.     In the event of a conflict between the terms of this Change Order and
         the terms of the Supply Agreement, the terms of this Change Order shall
         prevail.

8.3.     The parties agree that neither shall rely upon the execution and
         performance of this Change Order as comprising assumption or rejection
         of the Supply Agreement, in whole or in part.

8.4.     ICO has informed the Joint Provisional Liquidator and counsel for the
         Creditors' Committee of this agreement and has confirmed that neither
         has issued any objections thereto.

<PAGE>   2258

           CHANGE ORDER NO: 22                    ATTACHMENT 2

                              CLAUSE 15: AMENDMENT

<PAGE>   2259

ATTACHMENT 2
AMENDED CLAUSE

The incremental amount agreed between the parties under this Change Order No. 22
is *.-

Therefore, Clause 15.1 is amended to read as follows:

15.1     ICO shall pay an aggregate total price of US$743,443,825 for the
         complete performance by the Contractor of all of its obligations under
         this Agreement together with a further sum of US$ 21,537,600 (in
         respect of freight and insurance as referred to in the Pricing
         Schedule), which amounts shall be subject to adjustment only in respect
         of (i) changes agreed under clause 9 and (ii) the cost of any Option
         items upon exercise of the relevant Option or other items or services
         purchased under clause 46; (such aggregate amount, as so adjusted,
         being referred to as the "Price"). Any Instalment payment made shall
         discharge the relevant portion of the Price and shall not be
         reclaimable by ICO but without prejudice to ICO's right to claim
         damages and/or indemnity in accordance with the provisions of this
         Agreement in the event of any breach by the Contractor.

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   2260

           CHANGE ORDER NO:22                     ATTACHMENT 3

                    SCHEDULE 9 - PRICING SCHEDULE APPENDIX 1

<PAGE>   2261

                                       *

05/11/1998                  Commercial In Confidence                 Page 1 of 4

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   2262

                                       *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   2263
                                        *

         * Confidential Treatment Requested and the Redacted Material has been
           separately filed with the Commission.

05/11/1998                  Commercial In Confidence                 Page 3 of 4
<PAGE>   2264
III.6 NMC/SRMC/SAN-OSS PRICE LIST (IN THOUSAND US$)

                                       *

05/11/1998                  Commercial In Confidence                 Page 4 of 4

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   2265

[ICO LOGO]                                                  CHANGE ORDER NO: 23
                                                               A3/A8 Algorithms
                              IGF SUPPLY AGREEMENT
                          CONTRACT NO ICO097 - 1016/GW

                                                            DATE: 12th May, 2000

In accordance with clause 9 of the Supply Agreement dated March 3rd 1997 between
NEC Corporation and ICO Global Communications Holdings BV, the Agreement is
hereby amended as follows:

<TABLE>
<S>                                    <C>
Amended Clauses                        See Attachment No. 1
Amended Schedules                      See Attachment No. 3
Amended Annexes                        None
Amended Price                          See Attachment No. 1
Other Amendments                       See Attachment No. 1
Reference Correspondence               ICO Change Request No. 25 dated 28 August 1998; IUKC-936;
                                       SA1411/WG8/19990118/PB
</TABLE>

This Change Order No. 23, effective from the date of this Change Order, will now
form part of the Supply Agreement dated March 3rd 1997 between the parties and
shall be governed by, and construed in accordance with, the laws of England.

Except for the changes set out above, this Change Order No. 23 makes no further
amendments or modifications to the Agreement.

Signed for and on behalf of               Signed for and on behalf of
ICO GLOBAL COMMUNICATIONS HOLDINGS BV     NEC CORPORATION

/s/ G.S. Titzer                           /s/ ***
----------------------------              --------------------------------------
Supervising Officer                       Contractor's Authorised Representative
                                          Minoru Usui, General Manager
                                          Europe, Middle East and Africa
                                          Sales Division

26/4/00
----------------------------              --------------------
Date                                      Date  12th May, 2000

<PAGE>   2266

                                              CONTRACT NUMBER: ICOO 97 - 1016/GW
                                                             CHANGE ORDER NO: 23

                               CHANGE ORDER NO: 23

                                     TO THE

                                SUPPLY AGREEMENT

                                     BETWEEN

                                 NEC CORPORATION

                                       AND

                      ICO GLOBAL COMMUNICATIONS HOLDINGS BV

<PAGE>   2267

           CHANGE ORDER NO: 23                    ATTACHMENT 1

<PAGE>   2268

                                                            IGF SUPPLY AGREEMENT
                                                    CONTRACT NO ICOO97 - 1016/GW
                                             ATTACHMENT 1 TO CHANGE ORDER NO. 23

1.    The purpose of ICO Change Request No.25 is to implement the A3/A8
      algorithms in the IGF AuCs in accordance with the GSM MoU Security group
      recommendation.

2.    As at the date hereof the parties agree to amend Schedule 9, Pricing
      Schedule Appendix-2 III.4 SWITCH PRICE LIST. The amendments to the SWITCH
      PRICE LIST identify the cost increments referable to the following
      elements:-

      Change to III.4 SWITCH PRICE LIST
      NRE                    *
      SUB-TOTAL              *

      These increments are set out in detail in Attachment 3 to this Change
      Order. The parties also agree to amend Table 1 and Table 24 of the
      Schedule 9, Pricing Schedule as set out in Attachment 2-2 and 2-3 to this
      Change Order.

3.    The parties recognise the need to duly reflect these agreed changes
      elsewhere within the Supply Agreement, as set out below:-

         -   Schedule 9 - Pricing Schedule Appendix 2
             -    I        PRICE SUMMARY
             -    II.1     PRICE SUMMARY (NRE)

         -   IGFR Ver. 28.4 Change
             See  Attachment 3 to this Change Order

         -   Schedule 11 - Payment Schedule and Payment Schedule
             Classification Summary
             -    I        PAYMENT SCHEDULE CLASSIFICATION SUMMARY
             -    III.4    PAYMENT SCHEDULE CLASSIFICATION SUMMARY
                           -SWITCH

         * Confidential Treatment Requested and the Redacted Material has been
           separately filed with the Commission.

<PAGE>   2269

4.    Note to the price:

      Ericsson AuC AM:

      The price payable by ICO to the Contractor for the development,
      installation, integration and testing of the AuC Algorithm for the
      NEC/Ericsson AuC AM is   *   for the first implementation to be
      provided in accordance with the Schedule to this Change Order. The price
      payable for each subsequent new CME20 release is   *   . Subject to
      this algorithm being adopted by the GSM MoU and examination of the ICO
      specific parameter changes disclosing that there is no impact on the
      software blocks comprising any CME20 release, then the charge for such
      subsequent CME20 release will be waived.

      Logica Aldiscon:

      The price payable by ICO to the Contractor for the development,
      installation, integration and testing of the AuC Algorithm for the AuC
      portion of the Logica Aldiscon under this Change Order is   *   .

5.    The implementation schedule for the Contractor's activities to be
      undertaken pursuant to this Change Order is set out in Attachment 4.

6.    The parties undertake to ensure that the required changes specified within
      paragraphs 2 and 3 above, shall be completed within 3 months of the date
      of this Change Order or by such time as the parties shall otherwise agree.
      The parties agree that implementation of these changes shall be effective
      upon agreement without the need for the parties to formalise the
      incorporation of such agreed changes by way of further Change Order.

7.    The Parties agree that neither the Contractor nor any member of the NEC
      Team shall have any obligation to provide vendor financing to ICO pursuant
      to this Change Order.

      * Confidential Treatment Requested and the Redacted Material has been
        separately filed with the Commission.

<PAGE>   2270

                                                            IGF SUPPLY AGREEMENT
                                                    CONTRACT NO ICOO97 - 1016/GW
                                           ATTACHMENT 1-2 TO CHANGE ORDER NO. 23

The incremental amount agreed between the parties by way of this Change Order in
respect of those items referred to within Attachment 2 is US$156.000.

Therefore, Clause 15.1 is amended to read as follows:

15.1     ICO shall pay an aggregate total price of US$743,599,825 for the
         complete performance by the Contractor of all of its obligations under
         this Agreement together with a further sum of US$21,537,600 (in respect
         of freight and insurance as referred to in the Pricing Schedule), which
         amounts shall be subject to adjustment only in respect of (i) changes
         agreed under clause 9 and (ii) the cost of any Option items upon
         exercise of the relevant Option or other items or services purchased
         under clause 46; (such aggregate amount, as so adjusted, being referred
         to as the "Price"). Any Instalment payment made shall discharge the
         relevant portion of the Price and shall not be reclaimable by ICO but
         without prejudice to ICO's right to claim damages and/or indemnity in
         accordance with the provisions of this Agreement in the event of any
         breach by the Contractor.

<PAGE>   2271

           CHANGE ORDER NO: 23                        ATTACHMENT 2

                     ATTACHMENT 2-1: SCHEDULE 9, APPENDIX-2

<PAGE>   2272
                   III.4  SWITCH PRICE LIST (IN THOUSAND US$)

                   * [A TOTAL OF 17 PAGES HAVE BEEN REDACTED]

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   2273
                                        *
<PAGE>   2274
                                        *
<PAGE>   2275
                                        *
<PAGE>   2276
                                        *
<PAGE>   2277

             CHANGE ORDER NO:23                    ATTACHMENT 3

<PAGE>   2278

                                  ATTACHMENT-3
                                  ------------

1.   IGFR CHANGE
The proposed changes to IGFR v28.4 are highlighted in italics and underlined
format below:

6.13. SUBSCRIBER IDENTITY AUTHENTICATION
          6.13.1. The IGF shall support the subscriber identity authentication
          procedure as defined in TS GSM 02.09 and TS GSM 03.20.

          6.13.2. The IGF shall permit each of the authentication triggers
          defined in TS GSM 02.09 to be set/reset via the setting of exchange
          data, exchange parameter and/or network management command.

          6.13.3. The IGF shall support the use of multiple A3/A8 authentication
          algorithms as specified by ICO, the key lengths shall be compatible to
          those defined in the relevant GSM specifications.

          6.13.4. It shall be possible for an ICO specified A3/A8 algorithm to
          be selected depending on the ICO IMSI. For the avoidance of doubt, an
          ICO IMSI is defined as one which is registered in an IGF AuC (for
          example, standalone AuC, integrated HLR/AuC, AuC component of an ILR).

<PAGE>   2279

             CHANGE ORDER NO:23                    ATTACHMENT 4

<PAGE>   2280

                                  ATTACHMENT-4
                                  ------------

         SCHEDULE FOR IMPLEMENTATION OF ICO SPECIFIED A3/A8 ALGORITHMS
         -------------------------------------------------------------

1.   TECHNICAL OVERVIEW

The AuC provides Triplets for the GSM Authentication procedure. One component of
each triplet is the result or "Signed Response" (SRES) for the GSM standard
A3/A8 Authentication Algorithm, which the MSSC compares to the SRES received
from the SIM card in the Mobile Station. If the SRES (SIM) matches the SRES
(AuC) the Authentication procedure is allowed to proceed. If not Authentication
is deemed to have failed. Currently version 4 of AuC has the capability to store
up to 100 (Logica Aldiscon ILR AuC) and 6 (AuC AM) algorithms and to specify, in
each subscribers AuC record which algorithms should be used for that particular
subscriber (IMSI). It is assumed that ICO require one new specific A3/A8
algorithm.

Based on the ICO algorithm the AuC will provide a SRES (AuC) to be used in place
of the GSM A3/A8 algorithm SRES (AuC) and this shall be used in the
authentication procedure when specified in a given subscribers AuC record.

It is to be noted that when the subscribers record in the AuC specifies that the
ICO specific authentication algorithm should be used for the authentication and
not the current A3/A8 algorithm then the subscribers SIM card will also need to
use the ICO specific algorithm for authentication.

2.   DELIVERABLES

-    Code and unit test of the algorithm
-    Build of the algorithm
-    Performance testing of the algorithm
-    Implementation onto the various platform(s)

NOTE: The following items are expressly not included:

Integration testing with the SIM cards
Acquisition of any Export Licenses

3.   SOFTWARE DESIGN AND IMPLEMENTATION IMPACT

The algorithm code provided by ICO will have to be integrated into the existing
AuC software. Once successfully integrated Function Test and System Test
activities will have to be performed in order to verify the implementation.

4.   SCHEDULE

From the date of execution of this Change Order the estimated time for delivery
of the

<PAGE>   2281

algorithm software in respect of each supplier source will be:

4.1 Ericsson (ECE Madrid) received the algorithm information on 26 February
1999. ECE shall commence work upon execution of this Change Order.

Following signature of this Change Order delivery will then take 16 weeks. In
the case of more complex algorithms delivery may take up to 26 weeks.

4.2  LOGICA ALDISCON
Logica Aldiscon received the algorithm information just prior to Christmas 1998.
The algorithm will therefore be delivered in the Version 3 release of the ILR
software scheduled for 16 July 1999.

5.   PREREQUISITES OBLIGATIONS OF ICO

ICO will be required to provide the algorithm in "C code" format to NEC/Ericsson
prior to the commencement of any work.

In addition NEC/Ericsson will require ICO to provide "random numbers" and
"signed responses" to enable testing of the software. These should be provided
at the same time as the algorithm, ideally as a file of 100 triplets generated
with the new algorithm and with the corresponding authentication key (Ki) data
(to be used as control during test ) in order to perform the Function Test.

<PAGE>   2282
                                                             CHANGE ORDER NO: 24

[ICO LOGO]                    IGF SUPPLY AGREEMENT
                          CONTRACT NO ICOO97 - 1016/GW
                                                             DATE: 15th MAY 2000

In accordance with clause 9 of the Supply Agreement dated March 3rd 1997 between
NEC Corporation and ICO Global Communications Holdings BV, the Agreement is
hereby amended as follows:

Amended Clauses                        See Attachment No 2 (Clause 15.1)

Amended Schedules                      See Attachment No. 3

Amended Annexes                        See Attachment No. 4

Amended Price                          See Attachments No.2 and 3

Other Amendments                       None

Reference Correspondence

This Change Order No. 24 will now form part of the Supply Agreement dated March
3rd 1997 between the parties and shall be effective from the date of this Change
Order and shall be governed by and construed in accordance with the laws of
England. Except for the changes set out above, this Change Order No. 24 makes no
further amendments or modifications to the Agreement.

Signed for and on behalf of               Signed for and on behalf of
ICO GLOBAL COMMUNICATIONS HOLDINGS BV     NEC CORPORATION

      ***                                     ***
_____________________________________     ______________________________________
CEO                                       Contractor's Authorised Representative

                                          Minoru Usui, General Manager
                                          Europe, Middle East and Africa
                                          Sales Division

8/5/00                                    15th May, 2000
_______________
Date                                      ______________________
                                          Date
<PAGE>   2283
                                              CONTRACT NUMBER: ICOO 97 - 1016/GW
                                                             CHANGE ORDER NO: 24

                               CHANGE ORDER NO: 24

                                     TO THE

                                SUPPLY AGREEMENT

                                     BETWEEN

                      ICO GLOBAL COMMUNICATIONS HOLDINGS BV

                                       AND

                                 NEC CORPORATION
<PAGE>   2284
                                                            IGF SUPPLY AGREEMENT
                                                    CONTRACT NO ICOO97 - 1016/GW
                                             ATTACHMENT 1 TO CHANGE ORDER NO. 24

1.   This Change Order No. 24 addresses the provision, by the Contractor, of
     system functionality expansion and of associated support for additional
     Legal Interception under ICO Change Request No. 30.

2(a) As at the date hereof the parties agree to amend Schedule 9, Pricing
     Schedule Appendix-2 III.4 SWITCH PRICE LIST. The amendments to the SWITCH
     Price List identify the cost increments referable to the following
     elements:-

     NRE - *
     Hardware - *

2(b) The increments identified in 2(a) are set out in Attachment 3 to this
     Change Order. The parties recognise the need to duly reflect these agreed
     changes elsewhere within the Supply Agreement, as set out below:-

     -    Schedule 9 - Pricing Schedule

          -    2.1.1.1 Table 1      SA PRICE SUMMARY
          -    7.      Table 24     HISTORY OF CHANGE ORDERS

     -    Schedule 9 - Pricing Schedule Appendix 1

          -    Page 1         GRAND TOTAL SHEET
          -    Page 7-9       SWITCH

     -    Schedule 9 - Pricing Schedule Appendix 2

          -    I       PRICE SUMMARY
          -    II.1    PRICE SUMMARY (NRE)
          -    II.2    PRICE SUMMARY (HARDWARE)

     -    Schedule 11 - Payment Schedule and Payment Schedule Classification
          Summary

          -    I       PAYMENT SCHEDULE CLASSIFICATION SUMMARY
          -    III.4   PAYMENT SCHEDULE CLASSIFICATION SUMMARY SWITCH

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   2285
3.   The parties also recognise the need to duly reflect other agreed changes
     within the Supply Agreement as set out below:-

     -    Schedule 13 IGFR V 28.4

     -    Statement of Work - Annex 1 - Contractor's Deliverables. These
          amendments are set out in Attachment 4 to this Change Order.

4.   The parties undertake to ensure that the required changes specified within
     paragraphs 2 and 3 above, shall be completed within 3 months of the date of
     this Change Order or by such time as the parties shall otherwise agree and
     that any necessary amendments to IGFR Version 28.4 shall be determined in a
     manner which is consistent with the statements and principles comprised
     within the Technical Proposal, as set out in Attachment 5.

5.   The parties agree that implementation of these changes shall be effective
     upon agreement without the need for the parties to formalise the
     incorporation of such agreed changes by way of further Change Order.

6.   The parties undertake and agree that following signature of this Change
     Order they will negotiate in good faith to develop and finalise a schedule
     for delivery and installation of Deliverables hereunder. Such schedule
     shall be completed no later than one (1) month following the date of this
     Change Order or by such other date as the parties shall otherwise agree.

7.   The Parties agree that neither the Contractor nor any member of the NEC
     Team shall have any obligation to provide vendor financing to ICO pursuant
     to this Change Order.

8.   The parties agree that this Change Order shall be categorised as a clause
     15.1 Change Order and that Schedule 9 (Pricing Schedule), Table 24 of the
     Supply Agreement shall be amended to record the position.

9.   RATIFICATION OF ICO SUPPLY AGREEMENT

     Except as provided for herein, the terms and conditions of the Supply
     Agreement shall continue in full force and effect.
<PAGE>   2286
9.1. This Change Order sets forth the entire agreement between the parties as to
     the subject matter hereof and supersedes all prior discussions between
     them, and neither of the parties shall be bound by any conditions,
     definitions, warranties, understandings, nor representations with respect
     to such subject matter other than as expressly provided herein.

9.2. In the event of a conflict between the terms of this Change Order and the
     terms of the Supply Agreement, the terms of this Change Order shall
     prevail.

9.3. The parties agree that neither shall rely upon the execution and
     performance of this Change Order as comprising assumption or rejection of
     the Supply Agreement, in whole or in part.

9.4. ICO has informed the Joint Provisional Liquidator and counsel for the
     Creditors' Committee of this agreement and has confirmed that neither has
     issued any objections thereto.
<PAGE>   2287
             CHANGE ORDER NO:24                    ATTACHMENT 2

                               AMENDED CLAUSE 15.1
<PAGE>   2288
                                                            IGF SUPPLY AGREEMENT
                                                    CONTRACT NO ICOO97 - 1016/GW
                                             ATTACHMENT 2 TO CHANGE ORDER NO. 24

The incremental amount agreed between the parties by way of this Change Order in
respect of those items referred to within Attachment 3 is   *   .

Therefore, Clause 15.1 is amended to read as follows:

15.1 ICO shall pay an aggregate total price of US$746,754,625 for the complete
     performance by the Contractor of all of its obligations under this
     Agreement together with a further sum of US$21,537,600 (in respect of
     freight and insurance as referred to in the Pricing Schedule), which
     amounts shall be subject to adjustment only in respect of (i) changes
     agreed under clause 9 and (ii) the cost of any Option items upon exercise
     of the relevant Option or other items or services purchased under clause
     46; (such aggregate amount, as so adjusted, being referred to as the
     "Price"). Any Instalment payment made shall discharge the relevant portion
     of the Price and shall not be reclaimable by ICO but without prejudice to
     ICO's right to claim damages and/or indemnity in accordance with the
     provisions of this Agreement in the event of any breach by the Contractor.

     * Confidential Treatment Requested and the Redacted Material has been
       separately filed with the Commission.

<PAGE>   2289

                        CHANGE ORDER NO: 24 ATTACHMENT 3

        SCHEDULE 9 - PRICING SCHEDULE APPENDIX-2 III.4 SWITCH PRICE LIST
<PAGE>   2290
                   III.4  SWITCH PRICE LIST (IN THOUSAND US$)

                   * [A TOTAL OF 20 PAGES HAVE BEEN REDACTED]

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   2291
                                        *
<PAGE>   2292
                                        *
<PAGE>   2293
                                        *
<PAGE>   2294
                                        *
<PAGE>   2295
                        CHANGE ORDER NO: 24 ATTACHMENT 4

                 SCHEDULE 14 - ANNEX 1 CONTRACTOR'S DELIVERABLES
                         TABLE 2 - SWITCH EQUIPMENT LIST
<PAGE>   2296
SWITCH EQUIPMENT LIST
<TABLE>
<CAPTION>

                                                                                      SAN        SAN           SAN            SAN
Item No.  Description                                                               For ICO-   For USA         For            For
                                                                                      NET      (Type 2)      Australia      Germany
                                                                                                             (Type 1)       (Type 1)

                                                                                      Q'ty       Q'ty           Q'ty           Q'ty
<S>                                                                                 <C>        <C>           <C>            <C>

         HARDWARE

1.       MSSC HARDWARE                                                                                 1          1               1

1.1      CPS Cabinet                                                                                   1          1               1
         Compact APZ 212 20 cabinet incl. cabling and mag. incl. 64 MW PS, 512
         MW DS, 8 RP-bus interfaces (1 parallell, 7 serial). Standard cables and
         cabinets.

1.2      IOG20 / PDSPL2 / CLM CABINET                                                                  1          1               1
         IOG20-M (two shelves), one GDM-H magazine equipped with 5 PDSPL2 (3 for
         CCD func., 1 for CSK-D func., 1 for KRD-D func.), 1 ETC5 and one Test
         Telephone connection, CLM and RCM, fan, internal cabling and cabinet.

1.3      DTI / C7 CABINET
         2 DTI in conversion box equipped with 4 TR-boards (16 channels) in
         each magazine, one GDM-H magazine with 14 ETC5, two GDM-H magazines
         with 8 RPG2 each for C7 signalling, one GDM-H magazine equipped with 5
         PDSPL2 (3 for CCD func., 1 for CSK-D func., 1 for CANS func.), fan,
         internal cabling and cabinet

1.4      DTI / C7 CABINET                                                                              1          1               2
         2 DTI in conversion box equipped with 8 TR-boards (32 channels) in
         each magazine, one GDM-H magazine with 14 ETC5, two GDM-H magazines
         with 8 RPG2 each for C7 signalling, one GDM-H magazine equipped with 5
         PDSPL2 (3 for CCD func., 1 for CSK-D func., 1 for CANS func.), fan,
         internal cabling and cabinet

1.5      SS7 CABINET                                                                                   1
         This cabinet contains unrationalized DSOA signaling terminals and RP
         boards housed together in a 202 magazine. Each shelf supports 4
         signaling links (2 per Magazine) which gives a total of 16 signaling
         Links in the cabinet.

1.6      GS 16K CABINET                                                                                1          1
         16k GS 10.0, internal cabling, GS magazines and cabinet

1.7      GS 32K CABINET                                                                                                           1
         32k GS 10.0, internal cabling, GS magazines and cabinet

1.8      AST1 CABINET                                                                                  1          1               1
         1 AST V3 (64 ch.), one GDM-H magazine equipped with 16 IO2B for
         DL2/DL3 conversion, fan, internal cabling and cabinet

<CAPTION>

                                                                                      SAN           SAN         SAN          SAN
Item No.   Description                                                              For South     For India   For Chile      For
                                                                                     Africa       (Type 2)    (Type 2)      Brazil
                                                                                    (Type 1)                               (Type 2)
                                                                                      Q'ty          Q'ty       Q'ty          Q'ty
<S>                                                                                 <C>           <C>         <C>          <C>

         HARDWARE

1.       MSSC HARDWARE                                                                  1              1         1            1

1.1      CPS Cabinet                                                                    1              1         1            1
         Compact APZ 212 20 cabinet incl. cabling and mag. incl. 64 MW PS, 512
         MW DS, 8 RP-bus interfaces (1 parallell, 7 serial). Standard cables and
         cabinets.

1.2      IOG20 / PDSPL2 / CLM CABINET                                                   1              1         1            1
         IOG20-M (two shelves), one GDM-H magazine equipped with 5 PDSPL2 (3 for
         CCD func., 1 for CSK-D func., 1 for KRD-D func.), 1 ETC5 and one Test
         Telephone connection, CLM and RCM, fan, internal cabling and cabinet.

1.3      DTI / C7 CABINET                                                                                        1
         2 DTI in conversion box equipped with 4 TR-boards (16 channels) in each
         magazine, one GDM-H magazine with 14 ETC5, two GDM-H magazines with 8
         RPG2 each for C7 signalling, one GDM-H magazine equipped with 5 PDSPL2
         (3 for CCD func., 1 for CSK-D func., 1 for CANS func.), fan, internal
         cabling and cabinet

1.4      DTI / C7 CABINET                                                               2              2         1            2
         2 DTI in conversion box equipped with 8 TR-boards (32 channels) in
         each magazine, one GDM-H magazine with 14 ETC5, two GDM-H magazines
         with 8 RPG2 each for C7 signalling, one GDM-H magazine equipped with 5
         PDSPL2 (3 for CCD func., 1 for CSK-D func., 1 for CANS func.), fan,
         internal cabling and cabinet

1.5      SS7 CABINET
         This cabinet contains unrationalized DSOA signaling terminals and RP
         boards housed together in a 202 magazine. Each shelf supports 4
         signaling links (2 per Magazine) which gives a total of 16 signaling
         Links in the cabinet.

1.6      GS 16K CABINET                                                                 1              1         1            1
         16k GS 10.0, internal cabling, GS magazines and cabinet

1.7      GS 32K CABINET
         32k GS 10.0, internal cabling, GS magazines and cabinet

1.8      AST1 CABINET                                                                   1              1         1            1
         1 AST V3 (64 ch.), one GDM-H magazine equipped with 16 IO2B for
         DL2/DL3 conversion, fan, internal cabling and cabinet

<CAPTION>
                                                                                       SAN         SAN          SAN          SAN
Item No.  Description                                                                  For         For          For          For
                                                                                      Mexico       UAE       Indonesia      China
                                                                                     (Type 2)    (Type 2)    (Type 2)      (Type 2)
                                                                                      Q'ty        Q'ty         Q'ty          Q'ty

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

1.       MSSC HARDWARE                                                                  1              1         1            1

1.1      CPS Cabinet                                                                    1              1         1            1
         Compact APZ 212 20 cabinet incl. cabling and mag. incl. 64 MW PS, 512
         MW DS, 8 RP-bus interfaces (1 parallell, 7 serial). Standard cables and
         cabinets.

1.2      IOG20 / PDSPL2 / CLM CABINET                                                   1              1         1            1
         IOG20-M (two shelves), one GDM-H magazine equipped with 5 PDSPL2 (3 for
         CCD func., 1 for CSK-D func., 1 for KRD-D func.), 1 ETC5 and one Test
         Telephone connection, CLM and RCM, fan, internal cabling and cabinet.

1.3      DTI / C7 CABINET                                                               1                                     1
         2 DTI in conversion box equipped with 4 TR-boards (16 channels) in
         each magazine, one GDM-H magazine with 14 ETC5, two GDM-H magazines
         with 8 RPG2 each for C7 signalling, one GDM-H magazine equipped with 5
         PDSPL2 (3 for CCD func., 1 for CSK-D func., 1 for CANS func.), fan,
         internal cabling and cabinet

1.4      DTI / C7 CABINET                                                               1              2         2            1
         2 DTI in conversion box equipped with 8 TR-boards (32 channels) in
         each magazine, one GDM-H magazine with 14 ETC5, two GDM-H magazines
         with 8 RPG2 each for C7 signalling, one GDM-H magazine equipped with 5
         PDSPL2 (3 for CCD func., 1 for CSK-D func., 1 for CANS func.), fan,
         internal cabling and cabinet

1.5      SS7 CABINET
         This cabinet contains unrationalized DSOA signaling terminals and RP
         boards housed together in a 202 magazine. Each shelf supports 4
         signaling links (2 per Magazine) which gives a total of 16 signaling
         Links in the cabinet.

1.6      GS 16K CABINET                                                                 1              1         1            1
         16k GS 10.0, internal cabling, GS magazines and cabinet

1.7      GS 32K CABINET
         32k GS 10.0, internal cabling, GS magazines and cabinet

1.8      AST1 CABINET                                                                   1              1         1            1
         1 AST V3 (64 ch. ), one GDM-H magazine equipped with 16 IO2B for
         DL2/DL3 conversion, fan, internal cabling and cabinet

<CAPTION>

Item No.  Description                                                                  SAN           NMC         NMC          Total
                                                                                       For         Primary     Back-up
                                                                                      Korea
                                                                                     (Type 1)
                                                                                      Q'ty           Q'ty        Q'ty         Q'ty

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

1.       MSSC Hardware                                                                  1                                      12

1.1      CPS Cabinet                                                                    1                                      12
         Compact APZ 212 20 cabinet incl.
         cabling and mag. incl. 64 MW PS, 512 MW DS,
         8 RP-bus interfaces (1 parallell, 7 serial).
         Standard cables and cabinets.

1.2      IOG20 / PDSPL2 / CLM CABINET                                                   1                                      12
         IOG20-M (two shelves), one GDM-H magazine equipped with 5 PDSPL2 (3 for
         CCD func., 1 for CSK-D func., 1 for KRD-D func.), 1 ETC5  and one Test
         Telephone connection, CLM and RCM, fan, internal cabling and cabinet.

1.3      DTI / C7 CABINET                                                               1                                      4
         2 DTI in conversion box equipped with 4 TR-boards (16 channels) in
         each magazine, one GDM-H magazine with 14 ETC5, two GDM-H magazines
         with 8 RPG2 each for C7 signalling, one GDM-H magazine equipped with 5
         PDSPL2 (3 for CCD func., 1 for CSK-D func., 1 for CANS func.), fan,
         internal cabling and cabinet

1.4      DTI / C7 CABINET                                                               1                                      18

         2 DTI in conversion box equipped with 8 TR-boards (32 channels) in
         each magazine, one GDM-H magazine with 14 ETC5, two GDM-H magazines
         with 8 RPG2 each for C7 signalling, one GDM-H magazine equipped with 5
         PDSPL2 (3 for CCD func., 1 for CSK-D func., 1 for CANS func.), fan,
         internal cabling and cabinet

1.5      SS7 CABINET                                                                                                           1
         This cabinet contains unrationalized DSOA signaling terminals and RP
         boards housed together in a 202 magazine. Each shelf supports 4
         signaling links (2 per Magazine) which gives a total of 16 signaling
         Links in the cabinet.

1.6      GS 16K CABINET                                                                 1                                      11
         16k GS 10.0, internal cabling, GS magazines and cabinet

1.7      GS 32K CABINET                                                                                                        1
         32k GS 10.0, internal cabling, GS magazines and cabinet

1.8      AST1 CABINET                                                                   1                                      12
         1 AST V3 (64 ch.), one GDM-H magazine equipped with 16 IO2B for
         DL2/DL3 conversion, fan, internal cabling and cabinet
</TABLE>

COMMERCIAL IN CONFIDENCE                                             PAGE 1 OF 3
<PAGE>   2297

<TABLE>
<CAPTION>

                                                                                   SAN         SAN          SAN           SAN
Item No.  Description                                                             For ICO-   For USA        For           For
                                                                                    NET      (Type 2)    Australia      Germany
                                                                                                          (Type 1)      (Type 1)

                                                                                   Q'TY       Q'TY        Q'TY            Q'TY
<S>                                                                               <C>        <C>         <C>            <C>

1.9      TRAFFIC CABINET                                                                       2             2              4
         One ASMECP404 magazine with 16 EC4,
         three GDM-H magazines with 14 ETC5, and one GDM-H magazine with 4
         PDSPL2 (for CSR-D functionality), internal cabling and cabinet.

1.10      WORK STATION                                                                         1             1              1
            Visual Display                                                                     2             2              2
            Printer                                                                            2             2              2
            Alarm Panel                                                                        1             1              1

2        HPN                                                                                   1             1              1
2.1      Sun Ultra 2/ 1200 Server with SS#7 interface board including 200MHz,
         64Mb RAM, 2.1 Gbyte Disk or equivalent system                                         2             2              2
2.2      HPN Transmit Channel Unit                                                             5             5              5
2.3      HPN Acknowledgement Channel Unit                                                     10             10            10
2.4      Power Supply                                                                          4             4              4
2.5      IF distribution (supports dual polarization)                                          1             1              1
2.6      Fan Tray                                                                              1             1              1
2.7      12 port Ethernet Hub                                                                  2             2              2
2.8      Rack mounting                                                                         1             1              1

3        AUC/EIR   (CAPACITY FOR 500K SUBS)                                                                                 1

4        HLR FOR MAXIMUM 500K SUBSCRIBERS                                                                                   1
4.1        Trunk and Signalling hardware                                                                                    1
4.2         Central Processor hardware                                                                                      1
4.3         Input/Output & Mag. Tape Group hardware                                                                         1
4.4         Miscellaneous                                                                                                   1

5     DC NON-BREAK SYSTEM (AC/DC CONVERTER WITH 2-HOUR BATTERY)
5.1      Hardware                                                                              3             1              4

6     OSS (MAIN PLUS BACK-UP)
6.1      HW Conf 3 (3 servers + 1 work station)
6.2      Work Station                                                                          1             1              1
6.3      Disk mirror conf 3
6.4      Integration fee conf 3

7        DOCUMENTATION                                                             incl.       incl.         incl.          incl.

8        SPARES
8.1      MSSC                                                                                   1             1              1
8.2      HLR                                                                                                                 1
8.3      DC Non-break System                                                                    1             1              1

9        OSS
9.1      Maps for NSP
9.2      Remote Access set-up                                                                   1             1              1

10       ILR IS-41
10.1     ILR FOR IS.41-ICO / ICO-IS.41                                                          1

11       MESSAGING SYSTEM
11.1     System hardware and Software                                                                                        1
11.2     Spares                                                                                                              1

12       LEGAL INTERCEPTON
12.1     LIAS                                                                                   1             1              1
12.2     LIMS
12.3     Monitoring center back end system for testing
12.4     Stereo Interception Capacity upgrade for 1 SAN (Germany)
         25% stereo intercepts                                                                                               1

<CAPTION>

                                                                                    SAN        SAN        SAN        SAN
Item No.   Description                                                           For South   For India  For Chile    For
                                                                                  Africa     (Type 2)   (Type 2)    Brazil
                                                                                 (Type 2)                          (Type 2)
                                                                                  Q'ty        Q'ty       Q'ty        Q'ty
<S>                                                                              <C>         <C>        <C>        <C>
1.9      TRAFFIC CABINET                                                           1           2          2           2
         One ASMECP404 magazine with 16 EC4,
         three GDM-H magazines with 14 ETC5, and one GDM-H magazine with 4
         PDSPL2 (for CSR-D functionality), internal cabling and cabinet.

1.10      WORK STATION                                                             1            1          1           1
            Visual Display                                                         2            2          2           2
            Printer                                                                2            2          2           2
            Alarm Panel                                                            1            1          1           1

2        HPN                                                                       1            1          1           1
2.1      Sun Ultra 2/ 1200 Server with SS#7 interface board including 200MHz,
         64Mb RAM, 2.1 Gbyte Disk or equivalent system                             2            2          2           2

2.2      HPN Transmit Channel Unit                                                 5            5          5           5
2.3      HPN Acknowledgement Channel Unit                                         10           10         10          10
2.4      Power Supply                                                              4            4          4           4
2.5      IF distribution (supports dual polarization)                              1            1          1           1
2.6      Fan Tray                                                                  1            1          1           1
2.7      12 port Ethernet Hub                                                      2            2          2           2
2.8      Rack mounting                                                             1            1          1           1

3        AUC/EIR   (CAPACITY FOR 500K SUBS)

4        HLR FOR MAXIMUM 500K SUBSCRIBERS
4.1        Trunk and Signalling hardware
4.2         Central Processor hardware
4.3         Input/Output & Mag. Tape Group hardware
4.4         Miscellaneous

5 DC NON-BREAK SYSTEM (AC/DC CONVERTER WITH 2-HOUR BATTERY)
5.1      Hardware                                                                  1            1          1           3

6 OSS (MAIN PLUS BACK-UP)
6.1      HW Conf 3 (3 servers + 1 work station)
6.2      Work Station                                                              1            1          1           1
6.3      Disk mirror conf 3
6.4      Integration fee conf 3

7        DOCUMENTATION                                                             incl.        incl.      incl.       incl.

8        SPARES
8.1      MSSC                                                                      1            1          1           1
8.2      HLR
8.3      DC Non-break System                                                       1            1          1           1

9        OSS
9.1      Maps for NSP
9.2      Remote Access set-up                                                      1            1          1           1

10       ILR IS-41
10.1     ILR FOR IS.41-ICO / ICO-IS.41                                                                                 1

11       MESSAGING SYSTEM
11.1     System hardware and Software
11.2     Spares

12       LEGAL INTERCEPTON
12.1     LIAS                                                                      1            1          1           1
12.2     LIMS
12.3     Monitoring center back end system for testing
12.4     Stereo Interception Capacity upgrade for 1 SAN (Germany)
         25% stereo intercepts
<CAPTION>
                                                                                       SAN         SAN          SAN        SAN
Item No.  Description                                                                  For         For          For        For
                                                                                      Mexico       UAE       Indonesia    China
                                                                                     (Type 2)    (Type 2)    (Type 2)    (Type 1)
                                                                                      Q'TY        Q'TY         Q'TY        Q'TY
<S>                                                                                  <C>         <C>         <C>         <C>
1.9      TRAFFIC CABINET                                                                2           2           2           1
         One ASMECP404 magazine with 16 EC4,
         three GDM-H magazines with 14 ETC5, and one GDM-H magazine with 4
         PDSPL2 (for CSR-D functionality), internal cabling and cabinet.

1.10      WORK STATION                                                                  1           1           1           1
            Visual Display                                                              2           2           2           2
            Printer                                                                     2           2           2           2
            Alarm Panel                                                                 1           1           1           1

2        HPN                                                                            1           1           1           1
2.1      Sun Ultra 2/ 1200 Server with SS#7 interface board including 200MHz,
         64Mb RAM, 2.1 Gbyte Disk or equivalent system                                  2           2           2           2
2.2      HPN Transmit Channel Unit                                                      5           5           5           5
2.3      HPN Acknowledgement Channel Unit                                              10          10          10          10
2.4      Power Supply                                                                   4           4           4           4
2.5      IF distribution (supports dual polarization)                                   1           1           1           1
2.6      Fan Tray                                                                       1           1           1           1
2.7      12 port Ethernet Hub                                                           2           2           2           2
2.8      Rack mounting                                                                  1           1           1           1

3        AUC/EIR   (CAPACITY FOR 500K SUBS)

4        HLR FOR MAXIMUM 500K SUBSCRIBERS
4.1        Trunk and Signalling hardware
4.2         Central Processor hardware
4.3         Input/Output & Mag. Tape Group hardware
4.4         Miscellaneous

5       DC NON-BREAK SYSTEM (AC/DC CONVERTER WITH 2-HOUR BATTERY)
5.1      Hardware                                                                       2           1           2           1

6 OSS  (MAIN PLUS BACK-UP)
6.1      HW Conf 3 (3 servers + 1 work station)
6.2      Work Station                                                                   1           1           1           1
6.3      Disk mirror conf 3
6.4      Integration fee conf 3

7        DOCUMENTATION                                                                 incl.      incl.        incl.       incl.

8        SPARES
8.1      MSSC                                                                           1           1           1           1
8.2      HLR
8.3      DC Non-break System                                                            1           1           1           1

9        OSS
9.1      Maps for NSP
9.2      Remote Access set-up                                                           1           1           1           1

10       ILR IS-41
10.1     ILR FOR IS.41-ICO / ICO-IS.41

11       MESSAGING SYSTEM
11.1     System hardware and Software                                                   1                       1
11.2     Spares                                                                         1                       1

12       LEGAL INTERCEPTON
12.1     LIAS                                                                           1           1           1           1
12.2     LIMS
12.3     Monitoring center back end system for testing
12.4     Stereo Interception Capacity upgrade for 1 SAN
         (Germany) 25% stereo intercepts

<CAPTION>
                                                                                       SAN       NMC         NMC          Total
                                                                                       For      Primary     Back-up
                                                                                      Korea
                                                                                     (Type 1)
                                                                                      Q'ty       Q'ty        Q'ty         Q'ty
<S>                                                                                  <C>         <C>        <C>           <C>
1.9      TRAFFIC CABINET                                                                2                                  24
         One ASMECP404 magazine with 16 EC4,
         three GDM-H magazines with 14 ETC5, and one GDM-H magazine with 4
         PDSPL2 (for CSR-D functionality), internal cabling and cabinet.

1.10      WORK STATION                                                                  1                                  12
            Visual Display                                                              2                                  24
            Printer                                                                     2                                  24
            Alarm Panel                                                                 1                                  12

2        HPN                                                                            1                                  12
2.1      Sun Ultra 2/ 1200 Server with SS#7 interface board including 200MHz,
         64Mb RAM, 2.1 Gbyte Disk or equivalent system                                  2                                  24
2.2      HPN Transmit Channel Unit                                                      5                                  60
2.3      HPN Acknowledgement Channel Unit                                               10                                120
2.4      Power Supply                                                                   4                                  48
2.5      IF distribution (supports dual polarization)                                   1                                  12
2.6      Fan Tray                                                                       1                                  12
2.7      12 port Ethernet Hub                                                           2                                  24
2.8      Rack mounting                                                                  1                                  12

3        AUC/EIR   (CAPACITY FOR 500K SUBS)                                                       1                        2

4        HLR FOR MAXIMUM 500K SUBSCRIBERS                                                         1                        2
4.1        Trunk and Signalling hardware                                                          1                        2
4.2         Central Processor hardware                                                            1                        2
4.3         Input/Output & Mag. Tape Group hardware                                               1                        2
4.4         Miscellaneous                                                                         1                        2

5        DC NON-BREAK SYSTEM (AC/DC CONVERTER WITH 2-HOUR BATTERY)
5.1      Hardware                                                                       3         1           1            25

6        OSS (MAIN PLUS BACK-UP)
6.1      HW Conf 3 (3 servers + 1 work station)                                                   1           1            2
6.2      Work Station                                                                   1                                  12
6.3      Disk mirror conf 3                                                                       1           1          1 Lot
6.4      Integration fee conf 3                                                                   1           1          1 Lot

7        DOCUMENTATION                                                                incl.                              incl.

8        SPARES
8.1      MSSC                                                                           1                                  12
8.2      HLR                                                                                      1                        2
8.3      DC Non-break System                                                            1         1           1            14

9        OSS
9.1      Maps for NSP                                                                             1           1            2
9.2      Remote Access set-up                                                           1                                  12

10       ILR IS-41
10.1     ILR FOR IS.41-ICO / ICO-IS.41                                                  1                                  3

11       MESSAGING SYSTEM
11.1     System hardware and Software                                                                                      3
11.2     Spares                                                                                                            3

12       LEGAL INTERCEPTON
12.1     LIAS                                                                           1                                  12
12.2     LIMS                                                                                                 1            1
12.3     Monitoring center back end system for testing                                                        1            1
12.4     Stereo Interception Capacity upgrade for 1 SAN
         (Germany) 25% stereo intercepts                                                1
</TABLE>

                         Commercial-in-confidence                    Page 2 of 3
<PAGE>   2298
SWITCH EQUIPMENT LIST

<TABLE>
<CAPTION>

                                                                                      SAN        SAN         SAN            SAN
Item No.  Description                                                               For ICO-   For USA       For            For
                                                                                      NET      (Type 2)    Australia      Germany
                                                                                                           (Type 1)       (Type 1)

                                                                                     Q'TY       Q'TY         Q'TY           Q'TY
<S>                                                                                 <C>        <C>         <C>            <C>

12.5     Local Control of Intercept Target Management
12.6     2nd router with additional parts
12.7     Additional 25 local control users
12.8     Local Control of Intercept Target Management (2 remote WSs)
12.9     Delivery of Intercept (equipment and software)
12.10    Security of Intercept Products Delivery Routers Encryption                               1           1              1
12.11    Spares for enhanced LI                                                                   1           1              1

13       PCS/HPN MODEM
13.1     HPN PCS Modem                                                                            1           1              1

         SOFTWARE LICENCE

1        MSSC                                                                                    ETC         ETC            ETC
1.1      MSSC                                                                                     98         98            196

1.2      Excess ETC magazine adjustment                                                          -28          0              0

2        HPN                                                                                      1           1              1

3        AUC/EIR
3.1      AuC/EIR  Software 50K subs (each site)                                                                              1
3.2      AuC/EIR  Software 200K subs (each site)                                                                             1

4        HLR
4.1      HLR 'Software for 50K Subs                                                                                          1
4.2      HLR 'Software for 200K Subs                                                                                         1

5        NATURAL LANGUAGE SUPPORT
5.1      Software per traffic ETC at each site                                                   70           98            196
5.2      Software for 250k subscriber at HLR site                                                                            1

6        OSS
6.1       Features (AuC/EIR alarm handling, MXE alarm, Telnet)
6.2       Text file alarm adaption
6.3       License fee conf 3
6.4       MSSC, HLR, ILR connection fee

7        ILR IS-41
7.1      ILR Standard software (30% discount)                                                     1
7.2      ILR ICO software (35% discount)                                                          1
7.3      ILR TMOS lite-agent (35% discount)                                                       1
7.4      ILR R2:IMSI in IS41 (35% discount)                                                       1

8        MESSAGING SYSTEM

9        LEGAL INTERCEPTON

10       PCS/HPN MODEM
<CAPTION>

                                                                                    SAN        SAN        SAN        SAN
Item No.   Description                                                           For South   For India  For Chile    For
                                                                                  Africa     (Type 2)   (Type 2)    Brazil
                                                                                 (Type 2)                          (Type 2)
                                                                                  Q'ty        Q'ty       Q'ty        Q'ty
<S>                                                                              <C>         <C>        <C>        <C>
12.5     Local Control of Intercept Target Management

12.6     2nd router with additional parts

12.7     Additional 25 local control users

12.8     Local Control of Intercept Target Management (2 remote WSs)

12.9     Delivery of Intercept (equipment and software)

12.10    Security of Intercept Products Delivery Routers Encryption                  1           1         1          1

12.11    Spares for enhanced LI                                                      1           1         1          1

13       PCS/HPN MODEM
13.1     HPN PCS Modem                                                               1           1         1          1

         SOFTWARE LICENCE

1        MSSC                                                                       ETC         ETC       ETC        ETC
1.1      MSSC                                                                        70         112       112        112

1.2      Excess ETC magazine adjustment                                              0           0        -28        -14

2        HPN                                                                         1           1         1          1

3        AUC/EIR
3.1      AuC/EIR  Software 50K subs (each site)
3.2      AuC/EIR  Software 200K subs (each site)

4        HLR
4.1      HLR 'Software for 50K Subs
4.2      HLR 'Software for 200K Subs

5        NATURAL LANGUAGE SUPPORT
5.1      Software per traffic ETC at each site                                       70         112        84         98
5.2      Software for 250k subscriber at HLR site

6        OSS
6.1       Features (AuC/EIR alarm handling, MXE alarm, Telnet)
6.2       Text file alarm adaption
6.3       License fee conf 3
6.4       MSSC, HLR, ILR connection fee

7        ILR IS-41
7.1      ILR Standard software (30% discount)                                                                         1
7.2      ILR ICO software (35% discount)                                                                              1
7.3      ILR TMOS lite-agent (35% discount)                                                                           1
7.4      ILR R2:IMSI in IS41 (35% discount)                                                                           1

8        MESSAGING SYSTEM

9        LEGAL INTERCEPTON

10       PCS/HPN MODEM
<CAPTION>
                                                                                       SAN         SAN          SAN        SAN
Item No.  Description                                                                  For         For          For        For
                                                                                      Mexico       UAE       Indonesia    China
                                                                                     (Type 2)    (Type 2)    (Type 2)    (Type 1)
                                                                                      Q'TY        Q'TY         Q'TY        Q'TY
<S>                                                                                  <C>         <C>         <C>         <C>
12.5     Local Control of Intercept Target Management

12.6     2nd router with additional parts

12.7     Additional 25 local control users

12.8     Local Control of Intercept Target Management (2 remote WSs)

12.9     Delivery of Intercept (equipment and software)

12.10    Security of Intercept Products Delivery Routers Encryption                     1            1             1          1

12.11    Spares for enhanced LI                                                         1            1             1          1

13       PCS/HPN Modem
13.1     HPN PCS Modem                                                                  1            1             1          1

         SOFTWARE LICENCE

1        MSSC                                                                          ETC          ETC           ETC        ETC
1.1      MSSC                                                                          112          112           112         70

1.2      Excess ETC magazine adjustment                                                -14           0            -14         0

2        HPN                                                                            1            1             1          1

3        AuC/EIR
3.1      AuC/EIR  Software 50K subs (each site)
3.2      AuC/EIR  Software 200K subs (each site)

4        HLR
4.1      HLR 'Software for 50K Subs
4.2      HLR 'Software for 200K Subs

5        Natural Language Support
5.1      Software per traffic ETC at each site                                          98          112            98        70
5.2      Software for 250k subscriber at HLR site

6        OSS
6.1       Features (AuC/EIR alarm handling, MXE alarm, Telnet)
6.2       Text file alarm adaption
6.3       License fee conf 3
6.4       MSSC, HLR, ILR connection fee

7        ILR IS-41

7.1      ILR Standard software (30% discount)
7.2      ILR ICO software (35% discount)

7.3      ILR TMOS lite-agent (35% discount)

7.4      ILR R2:IMSI in IS41 (35% discount)

8        Messaging System

9        Legal Intercepton

10       PCS/HPN Modem
<CAPTION>

                                                                                       SAN           NMC         NMC       Total
                                                                                       For         Primary     Back-up
                                                                                      Korea
                                                                                     (Type 1)
                                                                                      Q'ty           Q'ty        Q'ty       Q'ty

<S>                                                                                  <C>           <C>         <C>         <C>
12.5     Local Control of Intercept Target Management                                                            1           1
12.6     2nd router with additional parts                                                                        1           1
12.7     Additional 25 local control users                                                                       1           1
12.8     Local Control of Intercept Target Management (2 remote WSs)                                             1           1
12.9     Delivery of Intercept (equipment and software)                                                          1           1
12.10    Security of Intercept Products Delivery Routers Encryption                     1                                    12
12.11    Spares for enhanced LI                                                         1                        1           13

13       PCS/HPN MODEM
13.1     HPN PCS Modem                                                                  1                                    12

         SOFTWARE LICENCE

1        MSSC                                                                          ETC                                  ETC
1.1      MSSC                                                                          112                                 1,316

1.2      Excess ETC magazine adjustment                                                -28                                  -126

2        HPN                                                                            1                                    12
3        AUC/EIR
3.1      AuC/EIR  Software 50K subs (each site)                                                        1                     2
3.2      AuC/EIR  Software 200K subs (each site)                                                       1                     2

4        HLR
4.1      HLR 'Software for 50K Subs                                                                    1                     2
4.2      HLR 'Software for 200K Subs                                                                   1                     2

5        NATURAL LANGUAGE SUPPORT
5.1      Software per traffic ETC at each site                                          84                                 1,190
5.2      Software for 250k subscriber at HLR site                                                      1                     2

6        OSS
6.1       Features (AuC/EIR alarm handling, MXE alarm, Telnet)                                         2                     2

6.2       Text file alarm adaption                                                                     1         1           2
6.3       License fee conf 3                                                                           1         1           2
6.4       MSSC, HLR, ILR connection fee                                                                1                     1

7        ILR IS-41
7.1      ILR Standard software (30% discount)                                           1                                    3
7.2      ILR ICO software (35% discount)                                                1                                    3
7.3      ILR TMOS lite-agent (35% discount)                                             1                                    3
7.4      ILR R2:IMSI in IS41 (35% discount)                                             1                                    3

8        MESSAGING SYSTEM

9        LEGAL INTERCEPTON

10       PCS/HPN MODEM

</TABLE>
Commercial-in-confidence                                             Page 3 of 3
<PAGE>   2299
                    CHANGE ORDER NO: 24      ATTACHMENT 5

                                STATEMENT OF WORK
<PAGE>   2300
                                                                        Rev. 1.5

                                 [COMVERSE LOGO]

                               LEGAL INTERCEPTION

                                STATEMENT OF WORK

                               CHANGE ORDER NO.24

Doc Number: 101-010
Doc Name: 101-010_CR30-Response.doc

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------
 VER.     DATE        AUTHOR               DESCRIPTION              APPROVED BY     APPROVAL DATE
-------------------------------------------------------------------------------------------------
<S>     <C>        <C>           <C>                               <C>              <C>
 1.0    14-12-98   Amir Bar-El   First issue                       Zvi Fischler,
                                                                   Talmi Shafer
-------------------------------------------------------------------------------------------------
 1.2    13/01/99   Amir Bar-El   Updated German SAN to B Type
-------------------------------------------------------------------------------------------------
 1.3    08/03/99   Efi Nuri      Updated after ICO comments
-------------------------------------------------------------------------------------------------
 1.4    21/11/99   Efi Nuri      Updated after ICO comments         Amir Bar-El       22/11/1999
-------------------------------------------------------------------------------------------------
 1.5    24/11/99   Amir Bar-El   Change to 75 RPUs
-------------------------------------------------------------------------------------------------
</TABLE>

   This material is proprietary of Comverse Technology, Inc. Any unauthorized
     reproduction, use or disclosure of this material, or any part thereof,
      is strictly prohibited. This material is meant solely for the use of
             Comverse employees and authorized Comverse customers.

                                                COMVERSE PROPRIETARY INFORMATION
                                                                    Page 1 of 26
<PAGE>   2301
                                                                        Rev. 1.5

                                TABLE OF CONTENTS

1    INTRODUCTION..............................................................2

   1.1    DOCUMENT PURPOSE AND SCOPE...........................................2
   1.2    TERMS AND ABBREVIATIONS..............................................2

2    STEREO INTERCEPTION.......................................................3

   2.1    DESCRIPTION..........................................................3
   2.2    STATEMENT OF COMPLIANCE..............................................4
   2.3    DELIVERABLES.........................................................4
   2.4    COST.................................................................4
   2.5    PROJECT SCHEDULE.....................................................4
   2.6    SOFTWARE DEVELOPMENT.................................................4
   2.7    DELIVERY AND INSTALLATION............................................5
   2.8    STRATEGY FOR TESTING AND INTEGRATION.................................5

3    REMOTE CONTROL OF INTERCEPT TARGET MANAGEMENT.............................6

   3.1    DESCRIPTION..........................................................6
   3.2    STATEMENT OF COMPLIANCE.............................................12
   3.3    DELIVERABLES........................................................15
   3.4    COST................................................................15
   3.5    PROJECT SCHEDULE....................................................15
   3.6    SOFTWARE DEVELOPMENT................................................16
   3.7    DELIVERY AND INSTALLATION...........................................16
   3.8    STRATEGY FOR TESTING AND INTEGRATION................................16

4    DELIVERY OF INTERCEPT PRODUCTS...........................................17

   4.1    DESCRIPTION.........................................................17
   4.2    STATEMENT OF COMPLIANCE.............................................19
   4.3    DELIVERABLES........................................................20
   4.4    COST................................................................20
   4.5    PROJECT SCHEDULE....................................................20
   4.6    SOFTWARE DEVELOPMENT................................................20
   4.7    DELIVERY AND INSTALLATION...........................................20
   4.8    STRATEGY FOR TESTING AND INTEGRATION................................20

5    SECURITY OF INTERCEPT PRODUCT DELIVERY...................................21

   5.1    DESCRIPTION.........................................................21
   5.2    STATEMENT OF COMPLIANCE.............................................21
   5.3    DELIVERABLES........................................................21
   5.4    COST................................................................22
   5.5    PROJECT SCHEDULE....................................................22
   5.6    SOFTWARE DEVELOPMENT................................................22
   5.7    DELIVERY AND INSTALLATION...........................................22
   5.8    STRATEGY FOR TESTING AND INTEGRATION................................22

6    THREAT ANALYSIS..........................................................23

7    APPENDICES...............................................................24

8    SPARE COMMUNICATIONS EQUIPMENT...........................................25

                                                COMVERSE PROPRIETARY INFORMATION
                                                                    Page 1 of 26
<PAGE>   2302
                                                                        Rev. 1.5

1        INTRODUCTION

1.1      DOCUMENT PURPOSE AND SCOPE

This document describes a proposal to upgrade the LIS according to ICO change
request no. 30. The proposal addresses the following requirements:

    -    Stereo interception
    -    Local control of intercept target management
    -    Delivery of intercept product
    -    Security of intercepted product delivery
    -    Data encryption

Please note that equipment described in this document may change during the
design of the new features.

1.2      TERMS AND ABBREVIATIONS

           ACL               Access Control List
           ACSBRI            Access Control ServerBasic Rate Interface
           CBAC              Context-Based Access Control
           CHAP              Challenge Authentication Protocol
           DCN               Digital Communication Network
           DES               Data Encryption Standard
           DH                Diffie-Hellman public key algorithm
           DSS               Digital Signature Standard
           FTP               File Transfer Protocol
           GRE               Generic Routing Encapsulation
           HW                HardWare
           IETF              Internet Engineering Task Force
           IKE               Internet Key Exchange
           IOS               Internetwork Operating System
           IP                Internet Protocol
           IOPS              Input Output Processing Server
           ISDN              Integrated Services Digital Network
           L2F               Layer 2 Forwarding
           L2TP              Layer 2 Tunneling Protocol
           LAN               Local Area Network
           LEA               Law Enforcement Agency
           LIAS              Legal Interception Access Subsystem
           LIMS              Legal Interception Management Subsystem
           MC                Monitoring Center
           MSSC              Mobile Satellite Switch Center
           PKI               public key infrastructure
           PPP               Point to Point Protocol
           PSTN              Public Switched Telephone Network
           QOS               Quality Of Service
           SAN               Satellite Access Node
           SLIP              Serial Line Interface Protocol
           SNMP              Simple Network Management Protocol
           TCP               Transport Control Protocol
           UDP               User Datagram Protocol
           VPN               Virtual Private Network

                                                COMVERSE PROPRIETARY INFORMATION
                                                                    Page 2 of 26
<PAGE>   2303
                                                                        Rev. 1.5

2        STEREO INTERCEPTION

2.1      DESCRIPTION

2.1.1    GENERAL

In some European countries there is a requirement to intercept and deliver calls
contents on two separate time-slots, instead of one. FIGURE 1 illustrates stereo
interception in case of multi party call.

                                  [FLOWCHART]
                         FIGURE 1 - STEREO INTERCEPTION

2.1.2    OPERATION

The System Administrator in the LIMS will be able to activate Stereo
Interception when defining a new MC in the system. This configuration shall
apply to all Targets associated with that MC. The Targets will be provisioned to
the switch with the parameter stating stereo interception is required. In case
there are two identical Target Keys provisioned by two separate MCs, one
requiring Stereo and one Mono, the Target will be provisioned twice to the MSSC.

Stereo Interception will support voice, fax and data calls (the LIAS does not
differentiate between the interception products).

The LIAS will distribute intercept products to MCs on two separate channels, one
carrying information originating from the intercepted party, the other carrying
all other parties to the call (see FIGURE 1). The IRI record will be used to
correlate both sides of the call. This correlation will be done at the MC.

2.1.3    CAPACITY

Capacity of LIASs should be increased according to the number of Stereo
interceptions expected on that LIAS. The German SAN will be upgraded to support
25% of stereo interception. The following table specifies the traffic on the
German SAN currently and after assuming 25% of interception products are Stereo.

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------
                  A-I/F     LIAS    LIAS    GoS(%)    LIAS in   LIAS out    Simult.    LIAS
                   (E)     in (E)  out (E)           Channels   Channels  Intercepts   Type
-------------------------------------------------------------------------------------------
<S>               <C>      <C>     <C>      <C>      <C>        <C>       <C>          <C>
Current            759       23       24      0         39         41         28         B'
-------------------------------------------------------------------------------------------
With 25% stereo    759       28       30      0         49         51         35         B'
-------------------------------------------------------------------------------------------
</TABLE>
                    TABLE 1 - GERMAN SAN TRAFFIC CALCULATIONS

The German LIAS will be upgraded to LIAS type B with 30 output channels in each
IOPS.

                                                COMVERSE PROPRIETARY INFORMATION
                                                                    Page 3 of 26
<PAGE>   2304
                                                                        Rev. 1.5

2.2      STATEMENT OF COMPLIANCE

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------
ITEM          DESCRIPTION                      COMPLIANCE      NOTES / OPEN ISSUES
-------------------------------------------------------------------------------------------------------
<S>           <C>                              <C>             <C>
3.2.2.1       One time-slot for the Target,    Compliant       As received from the switch
              all other on 2ed time-slot
-------------------------------------------------------------------------------------------------------
3.2.2.2       Multi party calls                Compliant       As received from the switch
-------------------------------------------------------------------------------------------------------
3.2.2.3       Stereo for voice, fax and data   Compliant       the type of call content is actually not
                                                               of interest to the operation of the LIAS
-------------------------------------------------------------------------------------------------------
3.2.2.4       Compliance with 6.20 in IGFR     Compliant
-------------------------------------------------------------------------------------------------------
3.2.2.5       Support mono and Stereo on a     Compliant       In case one target key is defined twice
              per MC basis                                     as mono and stereo, it will be
                                                               provisioned twice to the switch
-------------------------------------------------------------------------------------------------------
3.2.2.6       IGFR 7.9                         Compliant
-------------------------------------------------------------------------------------------------------
3.2.2.7       Capacity changes only of         Compliant       Input and output additional channels,
              channels                                         and possibly additional IOPSs may be
                                                               required. This proposal addresses only
                                                               upgrade of the German LIAS.
-------------------------------------------------------------------------------------------------------
4.2.1         HW changes                       Compliant       Only input output ports are effected
                                                               (this includes possible addition of
                                                               IOPS drawers)
-------------------------------------------------------------------------------------------------------
4.2.2         German site capacity             Compliant
-------------------------------------------------------------------------------------------------------
4.2.3         Capacity                         Ericsson to     Please refer to the capacity described
                                               confirm         in section 2.1.3 'Capacity'.
-------------------------------------------------------------------------------------------------------
4.2.4         Proportion of multi-party calls  Ericsson to
                                               confirm
-------------------------------------------------------------------------------------------------------
4.2.5         Proportion of fax/data calls     Ericsson to
                                               confirm
-------------------------------------------------------------------------------------------------------
</TABLE>

2.3      DELIVERABLES

2.3.1 DELIVERABLES AND SERVICES TO BE PROVIDED BY COMVERSE TECHNOLOGY INC.

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------
ITEM                DESCRIPTION                         QUANTITY         REMARK
--------------------------------------------------------------------------------------------
<S>                 <C>                                 <C>              <C>
6 additional        Upgrade German LIAS IOPSs to            2            6 channels per IOPS
output lines        have 30 outputs
--------------------------------------------------------------------------------------------
Software            SW adaptations for Stereo in LIAS       1
adaptations         and LIMS
--------------------------------------------------------------------------------------------
</TABLE>
                 TABLE 2 - DELIVERABLES FOR STEREO INTERCEPTION

2.3.2    DELIVERABLES AND SERVICES TO BE PROVIDED BY THE CUSTOMER

1)       Ability to assign Mono and Stereo Targets to the Switch
2)       Ability to provide two identical targets to the MSSC, one Stereo and
         one Mono
3)       Ability to differentiate Stereo Target and Mono Targets according to
         the IRI

2.4      COST

Please refer to the financial proposal.

2.5      PROJECT SCHEDULE

Please refer to the financial proposal.

2.6      SOFTWARE DEVELOPMENT

The LIMS software will be changed to support Stereo configuration while defining
an MC. Stereo identification will be added to the Target internal properties.

                                                COMVERSE PROPRIETARY INFORMATION
                                                                    Page 4 of 26
<PAGE>   2305
                                                                        Rev. 1.5

The LIAS software will be changed to handle targets with stereo property,
support correlation between the IRI and the two timeslots and support cases
where there are two targets - one stereo and one mono. The simulators for
testing the system will be changed to support cases of Stereo and Mono targets.

2.7      DELIVERY AND INSTALLATION

Please refer to the financial proposal.

2.8      STRATEGY FOR TESTING AND INTEGRATION

The HW upgrade for the German SAN is planned to be tested and delivered with the
German LIAS, and therefor tested and integrated with it.

                                                COMVERSE PROPRIETARY INFORMATION
                                                                    Page 5 of 26
<PAGE>   2306
                                                                        Rev. 1.5

3        REMOTE CONTROL OF INTERCEPT TARGET MANAGEMENT

3.1      DESCRIPTION

3.1.1    GENERAL

To provide remote Target management capabilities to a LEA, a Remote Provisioning
Unit (RPU) will be installed at the LEA. The RPU will be owned and operated by
the LEA.

The following figure describes the overall architecture:

                                  [FLOWCHART]
                     FIGURE 2 - OVERALL SYSTEM ARCHITECTURE

At the LIMS a new Server will be installed : an NT Terminal Server. The ADMIN
application will reside on this Server. The Remote System Administrator will
connect to the application server and launch the ADMIN application.

The communication configuration presented in FIGURE 3 is based on a Cisco router
as a central access server, which will support all required network connections.
A second Cisco router will serve as a hot standby router, optionally with
duplicated network connections. The two routers will be connected to the same
LAN's and transparent to the LAN's computers using HSRP. Both routers IOS
(Operating System) supports three methods of encryption: IPSec, DES 40 and DES
56. The router's IOS will also support firewall capabilities.

The router will be connected to an NT Terminal Server machine, and will also be
connected to the LIMS LAN with a second Ethernet interface.

Access control and network level encryption will be managed from the LIMS MFM,
CiscoSecure Server using an Access Control System and IPSec key management
system.

The router will be supported from the management station and a Cisco Secure ACS.

                                                COMVERSE PROPRIETARY INFORMATION
                                                                    Page 6 of 26
<PAGE>   2307
                                                                        Rev. 1.5

                                  [FLOWCHART]
                      FIGURE 3 - RPU COMMUNICATIONS LAYOUT

                                  [FLOWCHART]
                      FIGURE 4 - ENCRYPTION MODULES DIAGRAM

3.1.2    ADMINISTRATION

The System Administrator at the LIMS will have the ability to define new Remote
Target Administrators in the LIS. Remote Target Administrators can be grouped
according to their country. All Remote Target Administrators have access to all
Targets assigned to their group.

Each Remote Target Administrator will be assigned to one or more MCs.

                                                COMVERSE PROPRIETARY INFORMATION
                                                                    Page 7 of 26
<PAGE>   2308
                                                                        Rev. 1.5

The LIMS System Administrator defines territory information per MC. Therefor,
the Remote Target Administrator will receive calls only from that predefined
territory.

The LIMS System Administrator will assign a temporary password to the Remote
Target Administrator. In the first Login the user will be required to change the
password. From that point on the LIMS System Administrator will not be able to
view the password of that user.(1)

The Remote System Administrator will have access only to the Targets associated
with MCs he is assigned to.

3.1.3    OPERATION

The user in the remote LEA will be able to operate only the Remote Target
Administrator application. Remote Target Administrator will have the capability
to enter, edit, delete and view warrants for intercept Targets.
The Remote Target Administrator will not have the ability to perform any queries
on the system.

3.1.4    COMMUNICATION EQUIPMENT & ARCHITECTURE

The central access server will be based on two Cisco 3640 routers in a hot
standby configuration with interfaces to support the following network
connections:

    1.   Dial-up modem connection via the PSTN
    2.   Circuit switched connection over 64 kbit/s ISDN channel
    3.   TCP/IP connection via a TCP/IP network
    4.   TCP/IP connection via a frame relay network
    5.   TCP/IP connection via a X.25 network.

For dial-up connections (PSTN or ISDN) the router will have a PRI connection to
the telephony network. The router will automatically detect if the connection is
done from a modem or a terminal adapter and in case of a modem connection, the
router will route the call to an internal modem in the router.
The router IOS will support Cisco DES encryption, integrated firewall and IPSec
to enable encrypted dial-up connections via PSTN or ISDN. We recommend the use
of IPSec encryption for all types of network connections.

The router's integrated firewall will disable any communication from the LEA to
the LIMS LAN. The router's firewall will only allow specific communication
between the Terminal Server and the LIMS computers. IPSec(2) encryption can also
be used as the encryption method for connection to MCs with routers.

3.1.5    NETWORK LEVEL ENCRYPTION

The router will support two ways of securing the communication. The first is
Network layer security system implemented by Cisco between Cisco routers. The
second is IPSec, which provides a standards-based solution that enables not only
encryption, but also authenticity and data integrity. IPSec Interoperates with a
public key infrastructure (PKI) to provide a globally scalable identity
solution. As a standard, IPSec will interoperate with multiple vendors,
including solutions on PCs, servers, and other computing systems.

3.1.5.1  NETWORK LAYER SECURITY

Network layer encryption and router authentication are a proprietary Cisco
service for securing data traveling over unprotected networks.

Network data encryption is provided at the IP packet level. IP packet encryption
prevents eavesdroppers from reading the data that is being transmitted. When IP
packet encryption is used, IP packets can be seen during transmission, but the
IP packet contents (payload) cannot be read. Specifically, the IP header and
upper-layer protocol (TCP or UDP) headers are not encrypted, but all payload
data within the TCP or UDP packet will be encrypted and therefore not readable
during transmission.

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

(1) Note that there is a Super-User in the system that has the ability to change
all privileges and change passwords in the system., and by doing so to access
secured info. It is advised to find an administrational solution to this problem
(e.g., Super-User password to be handled by two people).

(2) IPSec will be integrated in Microsoft Windows 98 in the near future and can
be currently purchased from third party vendors such as "Ravlin".

                                                COMVERSE PROPRIETARY INFORMATION
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<PAGE>   2309
                                                                        Rev. 1.5

The actual encryption and decryption of IP packets occurs only at routers that
are configured for network data encryption with router authentication. Such
routers are considered to be peer encrypting routers (or simply peer routers).
Intermediate hops do not participate in encryption/decryption.

Typically, when an IP packet is initially generated at a host, it is unencrypted
("cleartext"). This occurs on a secured (internal) portion of the network. Then
when the transmitted IP packet passes through an encrypting router, the router
determines if the packet should be encrypted. If the packet is encrypted, the
encrypted packet will travel through the unsecured network portion (usually an
external network such as the Internet) until it reaches the remote peer
encrypting router. At this point, the encrypted IP packet is decrypted, and
forwarded to the destination host as cleartext.

Router authentication enables peer encrypting routers to positively identify the
source of incoming encrypted data. This means that attackers cannot forge
transmitted data or tamper with transmitted data without detection. Router
authentication occurs between peer routers each time a new encrypted session is
established. An encrypted session will be established each time an encrypting
router receives an IP packet that should be encrypted (unless an encrypted
session is already occurring at that time).

To provide IP packet encryption with router authentication, Cisco implements the
following standards: Digital Signature Standard (DSS), the Diffie-Hellman (DH)
public key algorithm, and Data Encryption Standard (DES). DSS is used in router
authentication. The DH algorithm and DES standard are used to initiate and
conduct encrypted communication sessions between participating routers.

Further description of the algorithms and the actual implementation of network
layer security is provided in the attached paper: "Configuring Network Data
Encryption with Router Authentication".

3.1.5.2  IPSEC

IPSec is a framework of open standards for ensuring secure private
communications over IP networks. Based on standards developed by the Internet
Engineering Task Force (IETF), IPSec ensures confidentiality, integrity, and
authenticity of data communications across a public IP network. IPSec provides a
necessary component of a standards-based, flexible solution for deploying a
network-wide security policy.

IPSec combines several different security technologies into a complete system to
provide confidentiality, integrity, and authenticity. In particular, IPSec uses:

    -    Diffie-Hellman key exchange for deriving key material between peers on
         a public network

    -    Public key cryptography for signing the Diffie-Hellman exchanges to
         guarantee the identity of the two parties and avoid man-in-the-middle
         attacks

    -    Bulk encryption algorithms, such as DES, for encrypting the data

    -    Keyed hash algorithms, such as HMAC, combined with traditional hash
         algorithms such as MD5 or SHA for providing packet authentication.

    -    Digital certificates signed by a certificate authority to act as
         digital ID cards
         IPSec combines the aforementioned security technologies into a complete
         system that provides confidentiality, integrity, and authenticity of IP
         datagrams. IPSec actually refers to several related protocols as
         defined in RFC 1825-1829 and several Internet drafts. These standards
         include:

IP Security Protocol proper, which defines the information to add to an IP
packet to enable confidentiality, integrity, and authenticity controls as well
as defining how to encrypt the packet data.

Internet Key Exchange, which negotiates the security association between two
entities and exchanges key material. It is not necessary to use IKE, but
manually configuring security associations is a difficult and manually intensive
process. IKE should be used in most real-world applications to enable
large-scale secure communications.

Further description of the algorithms and the actual implementation of network
layer security is provided in the attached paper: "Configuring IPSec Network
Security".

3.1.6    NETWORK LEVEL ACCESS CONTROL

To manage the access by remote users and remote sites over dial lines a
centralized AAA Server (Authentication, Authorization, Accounting & Audit) will
be used. The CiscoSecure Access Control Server offers three main services:

3.1.6.1  AUTHENTICATION

Authentication determines a user's identity, and then verifies that information.
Authentication can take many forms. Traditional authentication uses a name and a
fixed password. More modern and secure methods use OTPs such as CHAP and token
cards. CiscoSecure provides support for these authentication methods.

                                                COMVERSE PROPRIETARY INFORMATION
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<PAGE>   2310
                                                                        Rev. 1.5

A fundamental relationship between authentication and authorization is that the
more authorization privileges a user receives, the stronger the authentication
should be. The CiscoSecure ACS offers this capability by providing several
different methods of authentication.

Username/password is the most popular, simplest, and least expensive method used
for authentication. This is considered "something you know." No special
equipment is required. Username/password is a popular method for service
providers because of its easy application by the client. The disadvantage is
that "something you know" can be told to someone else, guessed, or captured.
Username/password is not considered a strong authentication mechanism but, it
can be sufficient for a low authorization or privilege level such as Internet
access.

The risk of password capturing on the network can be reduced by using
encryption. Client/server access control protocols, such as TACACS+ and RADIUS
encrypt passwords to prevent them from being captured within a network. However,
TACACS+ and RADIUS operate between the network access server (NAS) and the ACS.
Cleartext passwords can be captured between a client host dialing up over a
phone line or an ISDN line terminating at a NAS.

An OTP can be deployed for increased levels of security services and a desire to
lessen the chance of intruder access that result from password capture. The
CiscoSecure ACS supports several types of OTP solutions, including CHAP for
Point-to-Point Protocol (PPP) remote-node logon.

Specifically authentication smart cards should be used. CiscoSecure has token
server support as a client for the following products: SDI, Safe Word,
CryptoCard, and Axent Technologies. It also has a built-in token server for
CryptoCard, which is included in CiscoSecure, and what is included in our
proposal. Token cards will have to be purchased by ICO for each RPU.

For the proposed 2 RPU's the CryptoCard token cards cost is included

3.1.6.2  AUTHORIZATION

Authorization determines what a user is allowed to do. The CiscoSecure ACS can
send user profile policies to a network device such as an access server or
router to determine the network services they can access or the level of service
subscribed to. Authorization can be configured to limit the levels of service.

CiscoSecure ACS can permit or deny login based on the time of day, or the day of
week. For example, a group could be setup for temporary accounts that are setup
to disable on specified dates, enabling service providers to offer a 30-day free
trial. The same authorization could be used to create a temporary account for a
consultant with login permission limited to Monday through Friday, 9 a.m. to 5
p.m.

Users can be restricted to any one or a combination of PPP, ARA, Serial Line
Internet Protocol (SLIP), or EXEC services. After a service is selected, Layers
2 and 3 protocols can be restricted and access lists applied. Access lists on a
per-group basis can restrict users from reaching certain parts of the network
where critical information may be protected. Access lists can prevent users from
using certain services such as File Transfer Protocol (FTP) or Simple Network
Management Protocol (SNMP).

The security facilities of the router and CiscoSecure will permit the RPU user
access only to the NT terminal server IP address. The RPU user will be permitted
to run only the remote target administration application. Direct access of the
RPU user to the LIMS LAN and the LIMS computers will not be permitted.

The commercial proposal includes these proposed controls.

3.1.6.3  ACCOUNTING

Accounting is the action of recording what a user is doing or has done.
Accounting information can be used for both service billing and security
auditing. CiscoSecure ACS for Windows NT writes accounting records to a CSV log
file. This log file can be easily imported into popular database and spreadsheet
applications for billing, security audits, and report generation.

The solution does not include any integrated facilities for reviewing the audit
trail log.

The CSV log file can be accessed from a different computer and imported into an
application for security audits and report generation.

3.1.7    INTEGRATED FIREWALL

The Integrated Cisco IOS firewall offers an advanced mechanism to further
protection and detection of intrusion attempts. The IOS firewall includes:

    -    Context-Based Access Control (CBAC): Provides internal users secure,
         per-application-based access control for all traffic across perimeters,
         for example between private enterprise networks and the Internet

    -    Java Blocking: Protects against unidentified, malicious Java applets

                                                COMVERSE PROPRIETARY INFORMATION
                                                                   Page 10 of 26
<PAGE>   2311
                                                                        Rev. 1.5

    -    Denial of Service Detection/Prevention: Defends and protects router
         resources against common attacks. Checks packet headers and drops
         suspicious packets

    -    Audit Trail: Details transactions. Records time stamp, source host,
         destination host, ports, duration and total number of bytes transmitted
         for detailed reporting

    -    RealTime Alerts: Logs alerts in case of denial-of-service attacks or
         other pre-configured conditions.

    -    ConfigMaker Support: A Windows 95/Windows 98/Windows 4.0 NT wizard-
         based network configuration tool that offers step-by-step guidance
         through network design, addressing and Cisco IOS Firewall security
         policy configuration.

    -    Basic and Advanced Traffic Filtering: Standard and extended access
         control lists (ACLs---apply controls over access to specific network
         segments, and defines which traffic passes through a network segment.
         Lock and Key ---dynamic ACLs grant temporary access through firewalls
         upon user identification (username/password)

    -    Policy-Based Multi-Interface Support: Provides ability to control user
         access by IP address and interface as determined by the security policy

    -    Peer Router Authentication: Ensures that routers receive reliable
         routing information from trusted sources

    -    Event Logging: Allows administrators to track potential security
         breaches or other nonstandard activities on a real-time basis by
         logging output from system error messages to a console terminal or
         syslog server, setting severity levels, and recording other parameters

    -    Virtual Private Networks (VPNs): Provide secure data transfer over
         public lines (such as the Internet); reduce implementation and
         management costs for remote branch offices and extranets; enhance
         quality of service (QOS) and reliability; standards-based for
         interoperability, using any of the following protocols:

                  Generic Routing Encapsulation (GRE) tunneling
                  Layer 2 Forwarding (L2F)
                  Layer 2 Tunneling Protocol (L2TP)

Quality of Service (QoS) controls - prioritize applications and allocate network
resources to ensure delivery of mission-critical application traffic

Cisco Encryption Technology: Network-layer encryption capability that prevents
eavesdropping or tampering with data across the network during transmission

IPSec: A standards-based, network-layer encryption that provides data privacy
and authentication

All firewall facilities described are included in the commercial proposal. At
least the following facilities will be used in the proposed solution:

         Java Blocking - For TCP/IP connections to public networks such as the
         Internet.
         Denial of Service Detection/Prevention - For TCP/IP connections to
         public networks such as the Internet.
         Audit Trail
         RealTime Alerts
         Basic and Advanced Traffic Filtering - Dynamic and static access lists
         to permit connection only to predefined IP addresses and users only to
         the NT Terminal Server. The Lock and Key mechanism - The router is
         statically configured not allow any access from the WAN or dial-up
         connection. Upon receiving a connection the RPU user will be
         authenticated by the CiscoSecure and an access list will be sent by the
         CiscoSecure to the router. The access list will reside on the router
         only for the session period of the connected RPU user and will be
         deleted after disconnection.
         Policy-Based Multi-Interface Support - For multiple RPU connections
         over a specific interface on the router.
         Event Logging
         Cisco Encryption Technology
         IPSec

3.1.8    MC EQUIPMENT REQUIREMENTS

For Dial-up Connection (PSTN, ISDN)

    -    A PC running Microsoft Windows 98 with IPSec or a PC running Microsoft
         95/98 with a third party IPSec software such as "Ravlin".

    -    PSTN link of at least 19.2Kbps.

For Router Connection (TCP/IP, X.25, F/R) any of the following may be used at
the MC site:

    -    Any Cisco router with DES 40, DES 56 and IPSec IOS

    -    Any router with IPSec support (if IPSec is chosen as the encryption
         method)

                                                COMVERSE PROPRIETARY INFORMATION
                                                                   Page 11 of 26
<PAGE>   2312
                                                                        Rev. 1.5

Comverse recommends that the same router vendor will be used on the LIMS and on
the LEA.

3.1.9    LIMITATIONS

    -    Each RPU requires a bandwidth of 19.2 kbit/sec.

    -    When performing encryption, the current total bandwidth capacity of the
         router is 1.5Mbps. This limitation derives from the fact that the
         encryption is done on software level. This limitation may be removed by
         adding a Cisco encryption module to the router (available at Q2-1999 by
         Cisco).

    -    Export license should be verified.

3.2      STATEMENT OF COMPLIANCE

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------
Item           Description                     Compliance       Notes / Open Issues
-------------------------------------------------------------------------------------------------------------
<S>            <C>                             <C>              <C>
3.3.2.1        Remote provisioning of          Compliant        ICO will have to define RPUs in the LIS
               targets by specific
               countries
-------------------------------------------------------------------------------------------------------------
3.3.2.2a       Enter new warrant               Compliant
-------------------------------------------------------------------------------------------------------------
3.3.2.2b       Activate warrant                Compliant        A warrant will be activated automatically
                                                                according to start date.
-------------------------------------------------------------------------------------------------------------
3.3.2.2c       View active warrants            Compliant        If the Target phone number will be
                                                                encrypted it will be shown as encrypted
                                                                info. This depends on the option of data
                                                                encryption.
-------------------------------------------------------------------------------------------------------------
3.3.2.2d       Edit active warrant             Compliant
-------------------------------------------------------------------------------------------------------------
3.3.2.2e       Delete active warrant           Compliant
-------------------------------------------------------------------------------------------------------------
3.3.2.2f       Verify active warrants          Not Compliant    Verification will be done centrally at the
                                                                LIMS. Remote Target Administrators will not
                                                                be able to activate the authentication
                                                                process.
-------------------------------------------------------------------------------------------------------------
3.3.2.3        Store warrants in a             Compliant        Target information will be stored in the
               secure way                                       DBS and protected with the NT and database
                                                                security measures (passwords, access rights
                                                                etc.)
-------------------------------------------------------------------------------------------------------------
3.3.2.4        Access rights to view           Compliant        All Remote System Administrators assigned
               warrants for many RPUs.                          to a group will be able to view all targets
                                                                in that group.
-------------------------------------------------------------------------------------------------------------
3.3.2.5        Access rights to view           Compliant
               warrants
-------------------------------------------------------------------------------------------------------------
3.3.2.6        Ability to change access        Partially        The LIMS System Administrator will not be
               rights                          Compliant        able to change access right privileges, but
                                                                the Super User in the system can.
-------------------------------------------------------------------------------------------------------------
3.3.2.7        Access to jurisdiction area     Compliant        Service areas are associated with the MC
                                                                and the Remote System Administrator
                                                                cannot change them.
-------------------------------------------------------------------------------------------------------------
3.3.2.8        Limit SA to the LEA             Compliant        Only the LIMS System Administrator will be
                                                                able to assign territory to MC when
                                                                configuring the MC.
-------------------------------------------------------------------------------------------------------------
3.3.2.9a       LEA cannot change access        Compliant        RPU access rights are defined by the LIMS
               rights                                           System Administrator and cannot be changed
                                                                by the RPU.
-------------------------------------------------------------------------------------------------------------
3.3.2.9b       LEA cannot change SA            Compliant        SA are predefined according to MC.
-------------------------------------------------------------------------------------------------------------
3.3.2.9c       LEA cannot access O&M           Compliant        RPU has only access to Target view. The
                                                                Router's integrated firewall will enable
                                                                access only to the Terminal Server and will
                                                                disable any access to the LIMS LAN.
-------------------------------------------------------------------------------------------------------------
3.3.2.9d       LEA cannot access the IGF       Compliant        Access to other functions of the IGF is
                                                                limited on the application level, the OS
                                                                level and network level.
-------------------------------------------------------------------------------------------------------------
3.3.2.10       RPU network connection          Compliant        Bandwidth requirements are 19.2 kbit/sec
               support                                          per RPU.
-------------------------------------------------------------------------------------------------------------
3.3.2.11       Link encryption                 Compliant        Details provided by Comverse - ICO can
                                                                decide on configuration and implementation
                                                                at a later stage (IPSEC, DES40, DES56).
-------------------------------------------------------------------------------------------------------------
3.3.2.12       Threats and counter measures    Compliant        See attached paper - Configuring Network
                                                                Data Encryption with Router Authentication.
                                                                Also see chapter 6 'Threat Analysis'.
-------------------------------------------------------------------------------------------------------------
</TABLE>

                                                COMVERSE PROPRIETARY INFORMATION
                                                                   Page 12 of 26
<PAGE>   2313
                                                                        Rev. 1.5

<TABLE>
<S>            <C>                             <C>              <C>
-------------------------------------------------------------------------------------------------------------
3.3.2.12i      Security: network level         Compliant        Authentication is provided by the Cisco
                                                                Secure Station for dial-in PSTN connections
                                                                and by the NT Terminal Server for all
                                                                connections. Authentication between routers
                                                                is provided by IPSec and PPP authentication.

                                                                Each remote router can have a separate
                                                                encryption key and use a different encryption
                                                                method.

                                                                Each remote PC using a dial-up connection
                                                                can have a separate encryption key.

                                                                The security keys must be synchronized
                                                                between the remote and central site, so
                                                                some involvement of people at the
                                                                LIMS must happen. However, since the
                                                                encryption algorithm is based on
                                                                public key, the integrity of the
                                                                private key of the remote site is
                                                                always maintained.

                                                                The encryption keys can not be observed
                                                                by anybody at the central site, so the
                                                                confidentiality of the keys is always
                                                                maintained.
-------------------------------------------------------------------------------------------------------------
3.3.2.12ii     Security: application level     Compliant        Application level authentication is
               auth.                                            provided by the LIMS database.
-------------------------------------------------------------------------------------------------------------
3.3.2.13       Audit trail                     Compliant        A complete detailed audit trail is given
                                                                by the Cisco Secure server. This audit trail
                                                                includes all the required parameters except
                                                                the type of transactions that have been
                                                                performed. However, it is important to
                                                                note that using the Access Secure
                                                                capabilities we can limit the access of
                                                                the user according to its identity, up
                                                                to the application he will be allowed to
                                                                use.

                                                                A second audit trail is provided by the
                                                                LIMS ADMIN application and covers also
                                                                type of transaction (but not network
                                                                address or failure attempts)
-------------------------------------------------------------------------------------------------------------
3.3.2.14       Priority alarms                 Partially        User authentication failures will be
                                               Compliant        recorded in the CiscoSecure station.

                                                                Alarms for accessing the Application
                                                                level or operating system level in the
                                                                LIMS will have an alarm.
-------------------------------------------------------------------------------------------------------------
3.3.2.15       Quotas                          Partially        Quotas will be defined per MC. The quota
                                               Compliant        will apply to Targets defined in the system
                                                                (even if not yet active).
-------------------------------------------------------------------------------------------------------------
3.3.2.16a      Syntax validation               Compliant        by the ADMIN application
-------------------------------------------------------------------------------------------------------------
3.3.2.16b      SA validation                   Not Applicable   RPU cannot define SAs
-------------------------------------------------------------------------------------------------------------
3.3.2.16c      Period validation               Compliant        validity rule: TBD by ICO
-------------------------------------------------------------------------------------------------------------
3.3.2.16d      Quota validation                Partially        Quotas are per MC
                                               Compliant
-------------------------------------------------------------------------------------------------------------
3.3.2.17       Management of RPUs              Compliant
-------------------------------------------------------------------------------------------------------------
3.3.2.18                                       Compliant
-------------------------------------------------------------------------------------------------------------
4.3.1                                          Compliant        75 RPUs are supported in this proposal
-------------------------------------------------------------------------------------------------------------
4.3.2                                          Compliant
-------------------------------------------------------------------------------------------------------------
4.3.3                                          Compliant        The solution can be expanded to provide
                                                                access to up to 250 countries
-------------------------------------------------------------------------------------------------------------
4.3.4                                          Compliant
-------------------------------------------------------------------------------------------------------------
4.3.5                                          Partially        Quotas are per MC.
                                               Compliant
-------------------------------------------------------------------------------------------------------------
4.3.6          10 min response                 Compliant        Assuming 0 delay by DCN and 19.2 kbit/sec
                                                                BW in the link between RPU and LIMS, and
                                                                max 2 simultaneous per minute (see
                                                                following 4.3.7 compliance).
-------------------------------------------------------------------------------------------------------------
4.3.7          Capacity                        Compliant        Assuming max 18,000 => 1.25 per min.
-------------------------------------------------------------------------------------------------------------
4.3.8                                          Compliant        System is dimensioned for 75 RPUs. Upgrade
                                                                to up to 375 is possible with additional HW
                                                                changes.
-------------------------------------------------------------------------------------------------------------
</TABLE>

                                                COMVERSE PROPRIETARY INFORMATION
                                                                   Page 13 of 26
<PAGE>   2314
                                                                        Rev. 1.5

<TABLE>
<S>            <C>                             <C>              <C>
-------------------------------------------------------------------------------------------------------------
4.3.9                                          Compliant
-------------------------------------------------------------------------------------------------------------
4.3.10                                         Compliant
-------------------------------------------------------------------------------------------------------------
</TABLE>

                                                COMVERSE PROPRIETARY INFORMATION
                                                                   Page 14 of 26
<PAGE>   2315
                                                                        Rev. 1.5

3.3      DELIVERABLES

3.3.1    DELIVERABLES AND SERVICES TO BE PROVIDED BY COMVERSE TECHNOLOGY INC.

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
  ITEM              DESCRIPTION                            QUANTITY      REMARK
-----------------------------------------------------------------------------------------------------------
<S>                 <C>                                    <C>           <C>
NT Terminal         NT Server running NT Terminal Server   1             inc. license for 75 users
Server              application                                          Simultaneous support of up to 10
                                                                         RPUs
-----------------------------------------------------------------------------------------------------------
Cisco 3640          Cisco 3600 4-slot Modular Router-AC    2             Access Server Chassis
                                                                         Cisco 3640 Series IOS IP/FW PLUS
                                                                         IPSEC 56
                    ---------------------------------------------------------------------------------------
                    2 Ethernet 2 WAN Card Slot Network     2             Access Server - 2 Ethernet
                    Module                                               Interfaces
                    ---------------------------------------------------------------------------------------
                    1-Port Serial WAN                                    2 WAN Interfaces for up to 2Mbps
                                                           4             connection to X.25, TCP/IP and
                                                                         F/R networks. Supporting V.35,
                                                                         V.24 and V.36 interfaces
                    ---------------------------------------------------------------------------------------
                    8-Port Async/Sync Serial Network                     8 WAN Interfaces for up to
                    Module                                 2             128Kbps connection to X.25,
                                                                         TCP/IP and F/R networks.
                                                                         Supporting V.35, V.24 and V.36
                                                                         interfaces
                    ---------------------------------------------------------------------------------------
                    1-Port Channelized                     2             PRI Connection
                    E1/ISDN-PRI Balanced
                    ---------------------------------------------------------------------------------------
                    6 Port Digital Modem                                 6 internal modems with dual
                    Network Module                         2             ISDN/PSTN capability - Can be
                                                                         upgraded to 30
                    ---------------------------------------------------------------------------------------
                    CiscoSecure ACS V.2.1 for Windows NT   1             Cisco Secure
                    ---------------------------------------------------------------------------------------
                    VerySign - OnSite Certificates         75            One per RPU
                    ---------------------------------------------------------------------------------------
                    Redundant Power Supply                 1
-----------------------------------------------------------------------------------------------------------
CiscoSecure         NT Server running CiscoSecure ACS      1
Server
-----------------------------------------------------------------------------------------------------------
Software            LIMS changes to support RPUs.          1
adaptations
-----------------------------------------------------------------------------------------------------------
RPU                 Remote Provisioning Units              2
-----------------------------------------------------------------------------------------------------------
</TABLE>

    -    Option: For higher densities of dial-in users we recommend the use of a
         dedicated remote access server, like the Cisco 5300.

3.3.2    DELIVERABLES AND SERVICES TO BE PROVIDED BY THE CUSTOMER

1)  Additional floor space in BNMC.
2)  Other services as defined in SOW.

3.4      COST

Please refer to the financial proposal.

3.5      PROJECT SCHEDULE

Please refer to the financial proposal.

                                                COMVERSE PROPRIETARY INFORMATION
                                                                   Page 15 of 26
<PAGE>   2316
                                                                        Rev. 1.5

3.6      SOFTWARE DEVELOPMENT

The LIMS software will be changed to support Remote Target Administrators with
limited capability. This will include user definition, assignment to MCs and
privileges assignment.

3.7      DELIVERY AND INSTALLATION

Please refer to the financial proposal.

3.8      STRATEGY FOR TESTING AND INTEGRATION

The goal is to perform FAT of this feature with the LIMS FAT.

                                                COMVERSE PROPRIETARY INFORMATION
                                                                   Page 16 of 26
<PAGE>   2317
                                                                        Rev. 1.5

4        DELIVERY OF INTERCEPT PRODUCTS

4.1      DESCRIPTION

The LIS will allow the System Administrator to configure the delivery method on
a per MC level.
IRI Distribution can be configured as any of the following:

    -    TCP/IP over X.25
    -    TCP/IP on a TCP/IP network
    -    TCP/IP over ISDN network
    -    TCP/IP over PSTN dial-up connection

Call content distribution can be configured as any of the following:

    -    PCM over switched 64kbit/sec
    -    TCP/IP over TCP/IP network
    -    TCP/IP over ISDN network

Delivery of intercepted product and intercepted data on a single 64kbit/s
channel will be supported when TCP/IP is configured as delivery protocol. This
will be achieved not by compression, but by sending first the IRI, then the
product and then the IRI again.

IRI only distribution will be supported on a per Target basis.

TCP/IP delivery is based on DCOM(3) interface by Microsoft.

4.1.1    COMMUNICATION EQUIPMENT & ARCHITECTURE

The implementation is based on a router for the network level of intercepted
products delivery. The router will be connected to the LIAS LAN and will support
the delivery of X2 and X3 interfaces on all required connections.

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

(3) The Distributed Component Object Model (DCOM) is a protocol that enables
software components to communicate directly over a network in a reliable,
secure, and efficient manner.

                                                COMVERSE PROPRIETARY INFORMATION
                                                                   Page 17 of 26
<PAGE>   2318
                                                                        Rev. 1.5

                                  [FLOWCHART]
            FIGURE 5 - DELIVERY OF INTERCEPTED PRODUCTS CONFIGURATION

The LIAS router will be a Cisco 3640 router with interfaces to support the
following network connections:

    1.   Data encapsulated in IP packets and switched on a virtual circuit
         across an X.25 network, as currently specified

    2.   Voice, data or fax encoded in TCP/IP packets, such that they can be
         routed across circuit switched 64 kbit/s ISDN data channels to the
         required Monitoring Center

    3.   Voice, data and FAX encapsulated in IP packets and routed across a
         TCP/IP network to the required Monitoring Center

    4.   Data encapsulated in IP packets and routed across a switched PSTN or
         ISDN channel to the required Monitoring Center. The system will have
         the capability to set up the necessary switched channel

    5.   Data carried across a dial-up PSTN connection, via modems, to a remote
         PC, which is capable of receiving the data, storing it on a hard disk
         and printing it to a local printer

The router will have the sufficient interface to support the required type of
connections. For TCP/IP connections based on dial-up connection and switched
networks, the router will initiate the call when the first IP packet is sent by
the LIAS to the remote destination.

                                                COMVERSE PROPRIETARY INFORMATION
                                                                   Page 18 of 26
<PAGE>   2319
                                                                        Rev. 1.5

4.1.2    CAPACITY

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------
CONNECTION                   INTERFACES AND SUPPORTED      NUMBER OF SIMULTANEOUS CONNECTIONS
                             BANDWIDTH
---------------------------------------------------------------------------------------------
<S>                          <C>                           <C>
TCP/IP, X.25, F/R or         8 (up to 128Kbps)             Depends on type of connection
Leased lines connections
---------------------------------------------------------------------------------------------
64Kbps ISDN                  PRI Interface                 At least 24
---------------------------------------------------------------------------------------------
PSTN connections             6 (up to 33,600 or 64Kbps)    6
---------------------------------------------------------------------------------------------
</TABLE>
TABLE 3 - CAPACITY OF INTERCEPTED PRODUCTS

4.1.3    LIMITATIONS

    -    When sending call contents over TCP/IP the bandwidth required is
         actually 70 kbit/sec instead of the 64 kbit/sec. If the available link
         bandwidth is only 64 kbit/sec, it will take longer time to transfer the
         call.

    -    Delivery method configuration is predefined per MC and is the same for
         all LIASs.

4.2      STATEMENT OF COMPLIANCE

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------
Item          Description                      Compliance      Notes / Open Issues
--------------------------------------------------------------------------------------------------------
<S>           <C>                              <C>             <C>
3.4.2.1a      Delivery product as PCM          Compliant
--------------------------------------------------------------------------------------------------------
3.4.2.1b      Product: TCP/IP over ISDN        Compliant       Upon receiving an IP packet the router
                                                               will initiate a call to the MCs router
                                                               and open an IP connection. The will then
                                                               route all IP packets to the MC's IP
                                                               address.
--------------------------------------------------------------------------------------------------------
3.4.2.1c      Product: TCP/IP over IP network  Compliant       The LIAS router will route all IP
                                                               packets received from the LIAS to the MC
                                                               according to the MC's IP address.
--------------------------------------------------------------------------------------------------------
3.4.2.2       Per MC configuration             Compliant
--------------------------------------------------------------------------------------------------------
3.4.2.3a      IRI: TCP/IP over X.25            Compliant
--------------------------------------------------------------------------------------------------------
3.4.2.3b      IRI: TCP/IP over TCP/IP network  Compliant
--------------------------------------------------------------------------------------------------------
3.4.2.3c      IRI: TCP/IP over PSTN/ISDN       Compliant       Upon receiving an IP packet the router
                                                               will initiate a call to the MC's router
                                                               and open an IP connection. The router
                                                               will then route all IP packets to the
                                                               MC's IP address.
--------------------------------------------------------------------------------------------------------
3.4.2.3d      IRI: TCP/IP over dial-up PSTN    Compliant       The LIAS computers will open a TCP/IP
                                                               connection via the LIAS router to a
                                                               specific TCP port which will open a
                                                               connection to specific modem on that
                                                               router. The LIAS computer will then
                                                               generate a call to the MC and send the
                                                               X2 information to that TCP port.
--------------------------------------------------------------------------------------------------------
3.4.2.4       IRI: per MC configuration        Compliant
--------------------------------------------------------------------------------------------------------
3.4.2.5       Compress and multiplex           Partially       Compression will not be used
              contents and IRI                 Compliant
--------------------------------------------------------------------------------------------------------
3.4.2.6       Compression on a per MC          Partially       Activation per MC, but without
                                               Compliant       compression.
--------------------------------------------------------------------------------------------------------
3.4.2.7       O&M                              Compliant       The communication equipment is compliant
                                                               with all of Cisco O&M  functionality's
                                                               before CR30
--------------------------------------------------------------------------------------------------------
3.4.2.8       Deliver only IRI (per warrant)   Compliant
--------------------------------------------------------------------------------------------------------
4.4.1                                          Compliant
--------------------------------------------------------------------------------------------------------
4.4.2                                          Compliant
--------------------------------------------------------------------------------------------------------
4.4.3                                          Compliant       The system is currently dimensioned to
                                                               what was requested
--------------------------------------------------------------------------------------------------------
4.4.4                                          Compliant       The system is currently dimensioned to
                                                               what was requested
--------------------------------------------------------------------------------------------------------
4.4.5                                          Compliant       The system is currently dimensioned to
                                                               what was requested
--------------------------------------------------------------------------------------------------------
4.4.6                                          Compliant       The system is currently dimensioned to
                                                               what was requested
--------------------------------------------------------------------------------------------------------
4.4.7                                          Compliant       The system is currently dimensioned to
                                                               what
--------------------------------------------------------------------------------------------------------
</TABLE>

                                                COMVERSE PROPRIETARY INFORMATION
                                                                   Page 19 of 26
<PAGE>   2320
                                                                        Rev. 1.5

<TABLE>
<S>           <C>                              <C>             <C>
--------------------------------------------------------------------------------------------------------
                                                               was requested
--------------------------------------------------------------------------------------------------------
4.4.8                                          Compliant
--------------------------------------------------------------------------------------------------------
4.4.9                                          Compliant       Please see the financial proposal for
                                                               schedule implementations.
--------------------------------------------------------------------------------------------------------
</TABLE>

4.3      DELIVERABLES

4.3.1    DELIVERABLES AND SERVICES TO BE PROVIDED BY COMVERSE TECHNOLOGY INC.

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------
 ITEM               DESCRIPTION                            QUANTITY      REMARK
--------------------------------------------------------------------------------------------------------
<S>                 <C>                                    <C>           <C>
Cisco 3640          Cisco 3600 4-slot Modular Router-AC    12            Router Chassis with
                                                                         Modem management
                                                                         Technology license for 30
                                                                         modems
                    ------------------------------------------------------------------------------------
                    1 Ethernet 2 WAN Card  Slot Network                  Ethernet Interface
                    Module                                 12
                    ------------------------------------------------------------------------------------
                    8-Port Async/Sync Serial Network                     8 WAN Interfaces for TCP/IP
                    Module                                 12            connections
                    ------------------------------------------------------------------------------------
                    1-Port Channelized                     12            PRI Connection
                    E1/ISDN-PRI Balanced
                    ------------------------------------------------------------------------------------
                    6 Port Digital Modem                   12            6 internal modems with dual
                    Network Module                                       ISDN/PSTN capability - Can be
                                                                         upgraded to 30
--------------------------------------------------------------------------------------------------------
TCP/IP Interface    Specifications document of the
Spec.               TCP/IP interface                       1
--------------------------------------------------------------------------------------------------------
RPS                 Redundant Power Supply
--------------------------------------------------------------------------------------------------------
</TABLE>
             TABLE 4 - DELIVERY OF INTERCEPTED PRODUCTS (BRI OPTION)

4.3.2    DELIVERABLES AND SERVICES TO BE PROVIDED BY THE CUSTOMER

TBD

4.4      COST

Please refer to the financial proposal.

4.5      PROJECT SCHEDULE

Please refer to the financial proposal.

4.6      SOFTWARE DEVELOPMENT

The LIMS software will be changed to support a configuration of the delivery
methods for Call Content and for IRI in the MC definition.

The feature of distributing Call Content in TCP/IP packets will be added to the
LIAS software. The LIAS software will be changed to support different
distribution methods on a per MC basis, and the ability to generate modem calls
(for transferring IRI over PSTN).

4.7      DELIVERY AND INSTALLATION

Please refer to the financial proposal.

4.8      STRATEGY FOR TESTING AND INTEGRATION

Please refer to the financial proposal.

                                                COMVERSE PROPRIETARY INFORMATION
                                                                   Page 20 of 26
<PAGE>   2321
                                                                        Rev. 1.5

5        SECURITY OF INTERCEPT PRODUCT DELIVERY

5.1      DESCRIPTION

5.1.1    GENERAL

Security will be provided only for TCP/IP delivery.

The security of intercept product delivery is based on the router's DES 40, DES
56 or IPSec and authentication mechanisms between routers such as PPP CHAP.

For ease of key management we recommend to use only Cisco's proprietary DES 40
and DES 56. The selection of the specific encryption method can be managed per
IP destination (MC). In such a case each MC will have a separate key.

See section 3.1.5 'Network Level Access Control' and section 3.1.6 'Integrated
Firewall' for further details.

5.1.2    MC EQUIPMENT REQUIREMENTS

A router Connection (TCP/IP, X.25, ISDN) with one of the following:

    -    Cisco router with DES 40, DES 56 and IPSec IOS
    -    Any router with IPSec support (if IPSec is chosen as the encryption
         method)

5.1.3    LIMITATIONS

    -    Export license should be verified.

    -    When performing encryption, the current total bandwidth capacity of the
         router is 1.5Mbps. This limitation derives from the fact that the
         encryption is done on software level. This limitation will be removed
         by adding a Cisco encryption module to the router (available Q2-1999).

5.2      STATEMENT OF COMPLIANCE

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------
Item          Description                      Compliance      Notes / Open Issues
---------------------------------------------------------------------------------------------------
<S>           <C>                              <C>             <C>
3.5.2.1       Encrypt intercept product        Compliant       Only for TCP/IP delivery
---------------------------------------------------------------------------------------------------
3.5.2.2       Only for TCP/IP                  Compliant
---------------------------------------------------------------------------------------------------
3.5.2.3       Per MC                           Compliant
---------------------------------------------------------------------------------------------------
3.5.2.4       Separate keys                    Compliant       Only if Cisco routers are used
---------------------------------------------------------------------------------------------------
3.5.2.5       Encryption to be approved        TBD by ICO
---------------------------------------------------------------------------------------------------
3.5.2.6       Key management                   Compliant       Key management is done automatically
---------------------------------------------------------------------------------------------------
3.5.2.7       O&M                              Compliant
---------------------------------------------------------------------------------------------------
4.5.1                                          Compliant
---------------------------------------------------------------------------------------------------
4.5.2                                          Compliant
---------------------------------------------------------------------------------------------------
</TABLE>

5.3      DELIVERABLES

The following table specifies the required deliverables in addition to the ones
mentioned in the pervious chapter.

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
ITEM          DESCRIPTION                 QUANTITY      REMARK
--------------------------------------------------------------------------------
<S>           <C>                         <C>           <C>
Cisco         Cisco 3640 Series IOS       12            Cisco IOS for encryption
Encryption    IP/FW PLUS IPSEC 56
--------------------------------------------------------------------------------
Additional     4-to-8 MB Flash Factory    12
Memory         Upgrade for the Cisco
               3600 Series
--------------------------------------------------------------------------------
</TABLE>
           TABLE 5 - ENCRYPTION OF INTERCEPTED PRODUCTS - DELIVERABLES

                                                COMVERSE PROPRIETARY INFORMATION
                                                                   Page 21 of 26
<PAGE>   2322
                                                                        Rev. 1.5

5.4      COST

Please refer to the financial proposal.

5.5      PROJECT SCHEDULE

Please refer to the financial proposal.

5.6      SOFTWARE DEVELOPMENT

None.

5.7      DELIVERY AND INSTALLATION

Please refer to the financial proposal.

5.8      STRATEGY FOR TESTING AND INTEGRATION

Please refer to the financial proposal.

                                                COMVERSE PROPRIETARY INFORMATION
                                                                   Page 22 of 26
<PAGE>   2323
                                                                        Rev. 1.5

6        THREAT ANALYSIS

The following table describes various scenarios of breaking the LIS security to
access secure information, and the implications.

It is assumed for the sake of the analysis that all options of security proposed
earlier in this document are implemented.

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------
           THREAT                                 ANALYSIS                         IMPLICATIONS /
                                                                                   RESOLUTION
----------------------------------------------------------------------------------------------------
<S>        <C>                                    <C>                              <C>
1.         Tapping the link between the Remote    Data is secured by the NT
           Target provisioning station and the    Terminal Server and the
           LIMS Router                            network.
----------------------------------------------------------------------------------------------------
2.         Tapping the link between the LIMS      NT Terminal Server sends
           Router and the NT Terminal Server      information in a propriety
                                                  protocol.

                                                  Encryption on the link between
                                                  the NT Terminal server and the
                                                  router may implemented using
                                                  IPSec. - TBD by Comverse
----------------------------------------------------------------------------------------------------
3.         Tapping the link between the LIMS      Data is encrypted by the Admin
           Router and the DBS                     application on the NT Terminal
                                                  Server
----------------------------------------------------------------------------------------------------
4.         Tapping the LIMS LAN                   Data is encrypted by the Admin
                                                  application on the NT Terminal
                                                  Server
----------------------------------------------------------------------------------------------------
5.         Tapping the DCN                        Data is encrypted by the Admin
                                                  application on the NT Terminal
                                                  Server and by the DCN network
                                                  equipment
----------------------------------------------------------------------------------------------------
6.         Tapping the LIAS LAN                   DATA IS NOT SECURED
                                                  (IOPS-ROUTER)
----------------------------------------------------------------------------------------------------
7.         Tapping the link between the LIAS      DATA IS NOT SECURE               Physical security
           and the MSSC
----------------------------------------------------------------------------------------------------
8.         Accessing the LIMS DBS using           Data is encrypted by the Admin
           SysAdmin password                      application on the NT Terminal
                                                  Server
----------------------------------------------------------------------------------------------------
</TABLE>
                            TABLE 6 - THREAT ANALYSIS

                                                COMVERSE PROPRIETARY INFORMATION
                                                                   Page 23 of 26
<PAGE>   2324
                                                                        Rev. 1.5

7        APPENDICES

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
DESCRIPTION                                          FILE
--------------------------------------------------------------------------------
<S>                                                  <C>
Cisco Security Description                           secur_dg.htm
--------------------------------------------------------------------------------
Configuring Network Data Encryption with Router      2cencryp.htm
Authentication
--------------------------------------------------------------------------------
Configuring IPSec Network Security                   scipsec.htm
--------------------------------------------------------------------------------
Ravlin Software Description                          ravsoft.html
--------------------------------------------------------------------------------
VerySign WEB Site                                    http://www.verisign.com
--------------------------------------------------------------------------------
</TABLE>

                                                COMVERSE PROPRIETARY INFORMATION
                                                                   Page 24 of 26
<PAGE>   2325
                                                                        Rev. 1.5

8        SPARE COMMUNICATIONS EQUIPMENT

The following will be delivered as spares for the communication equipment:

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------
ITEM                                                 SITE              QUANTITY
-------------------------------------------------------------------------------
<S>                                                  <C>               <C>
Cisco 3640 RPS - Enterprise + F/W + IPSec 56         LIAS's                  12
-------------------------------------------------------------------------------
Cisco 3640 RPS - IP + F/W + IPSec 56                 LIMS                     1
-------------------------------------------------------------------------------
WIC-1T                                               LIMS                     2
-------------------------------------------------------------------------------
NM-2E2W                                              LIMS                     1
-------------------------------------------------------------------------------
NM-1E2W                                              LIAS's                  12
-------------------------------------------------------------------------------
NM-1CE1B                                             LIAS's + LIMS           13
-------------------------------------------------------------------------------
NM-6DM                                               LIAS's + LIMS           13
-------------------------------------------------------------------------------
NM-8A/S                                              LIAS's + LIMS           13
-------------------------------------------------------------------------------
MMTL-3600-30                                         LIAS's + LIMS           13
-------------------------------------------------------------------------------
Hub                                                  LIAS's + LIMS           13
-------------------------------------------------------------------------------
</TABLE>

                                                COMVERSE PROPRIETARY INFORMATION
                                                                   Page 25 of 26
<PAGE>   2326
                   CHANGE ORDER NO: 24         ATTACHMENT 6
<PAGE>   2327
                                             ATTACHMENT 6 TO CHANGE ORDER NO. 24

1.       IGFR CHANGE

The proposed changes to IGFR v28.4 are highlighted in italics and underlined
format below:

6.20. LEGAL INTERCEPTION

         6.20.1. The IGF Legal Interception Subsystem (LIS) shall provide the
         functionality required for the interception of user communications by
         authorised agencies for monitoring purposes.

         6.20.2. Intercepted user communications (known as intercept products)
         shall include all the IGF Teleservices and bearer services as defined
         in the section 4 of this requirements specification.

         6.20.3. Apart from the interception of user communications, the LIS
         shall be able to collect data of a monitored call (known as intercept
         related data such as date, time, target identifier etc.) when a call
         attempt is made to/from a target subscriber and at the completion of
         the call.

         6.20.4. The intercept related data shall include, when available, the
         UT position in the form of latitude/longitude and accuracy indicator.

         6.20.5. The LIS shall support reporting of supplementary services
         activities in accordance with GSM TS 02.33 clause 4.2.2 and its
         sub-clauses, subject to the compliance's to these requirements as
         stated in the ICONET Ground Facilities High Level System Description
         (HLSD).

         6.20.6. The LIS shall support the correlation of the intercept product
         and the intercept related data of a monitored call by the use of a call
         reference identifier.

         6.20.7. The LIS shall support target subscribers' identification by
         both MSISDN and IMEI.

         6.20.8. The LIS shall support both location independent (SANLOC) and
         location dependent interception (SUBLOC).

         6.20.9. SANLOC interception shall be triggered when a target subscriber
         is registered at a SAN and the SAN is covered by the interception
         warrant.

         6.20.10. SUBLOC interception shall be triggered when a target
         subscriber is determined to be located within the national jurisdiction
         of the requesting Law Enforcement Agency (LEA) at call setup time.

         6.20.11. The location of a target shall be defined by ICO service area
         (SA) for the purpose of determining SUBLOC triggering.

         6.20.12. The LIS shall be able to support ten simultaneous
         interceptions per SAN.

         6.20.13. The LIS shall be able to deliver the intercept product and the
         intercept related data, without any truncation and in parallel to up to
         four nominated monitoring centres identified by either national or
         international addresses.

         6.20.14. The LIS shall be capable of delivering the intercept product
         and the intercept related data to the destined monitoring centres in as
         near real time as possible.

         6.20.15. The LIS shall be able to deliver the intercept product in a
         separate stream to each of the nominated monitoring centres which are
         actively engaged in the monitoring activity.

         6.20.16. The LIS shall support both fixed and switched connections to
         the monitoring centres. The number of fixed and switched connections to
         be provisioned shall be in accordance with their respective initial
         values as stated in Table 9-1 'Primary Capacity Drivers for the IGF' of
         this requirements specification.

         6.20.17. The LIS shall be able to support multiple legal warrants, and
         therefore multiple intercepts, in force against a single subscriber at
         any given time.

         6.20.18. The LIS shall support stereo interception of voice, fax and
         data calls in accordance with the technical requirements stated in the
         ICO document EN-MS-ICO-CR-000480 'Additional Functionality for Legal
         Interception Sub-System' version 1.2 section 3.2 "Stereo Interception".

         6.20.19. The LIS shall meet the capacity requirements for stereo
         interception in accordance with the technical requirements stated in
         the ICO document EN-MS-ICO-CR-000480 'Additional Functionality for
         Legal Interception Subsystem' version 1.2 section 4.2 "Stereo
         Interception".
<PAGE>   2328
         6.20.20. The LIS shall support local control of intercept target
         management in accordance with the technical requirements stated in the
         ICO document EN-MS-ICO-CR-000480 'Additional Functionality for Legal
         Interception Sub-System' version 1.2 section 3.3 "Local Control of
         Intercept Target Management".

         6.20.21. The LIS shall meet the capacity and performance requirements
         for supporting local control of intercept target management in
         accordance with the technical requirements stated in the ICO document
         EN-MS-ICO-CR-000480 'Additional Functionality for Legal Interception
         Subsystem' version 1.2 section 4.3 "Local Control of Intercept Target
         Management".

         6.20.22. The LIS shall support the additional delivery methods for the
         intercept products and intercept related data in accordance with the
         technical requirements stated in the ICO document EN-MS-ICO-CR-000480
         'Additional Functionality for Legal Interception Sub-System' version
         1.2 section 3.4 'Delivery of Intercept Products'.

         6.20.23. The LIS shall meet the capacity and performance requirements
         for the delivery of intercept products in accordance with the technical
         requirements stated in the ICO document EN-MS-ICO-CR-000480 'Additional
         Functionality for Legal Interception Sub-System' version 1.2 section
         4.4 "Delivery of Intercept Products".

         6.20.24. The LIS shall support the secured delivery of intercept
         products in accordance with the technical requirements stated in the
         ICO document EN-MS-ICO-CR-000480 'Additional Functionality for Legal
         Interception Sub-System' version 1.2 section 3.5 "Security of Intercept
         Product Delivery".

         6.20.25. The LIS shall meet the capacity and performance requirements
         in accordance with the technical requirements stated in the ICO
         document EN-MS-ICO-CR-000480 'Additional Functionality for Legal
         Interception Sub-System' version 1.2 section 4.5 "Security of Intercept
         Product Delivery".

         6.20.26. The LIS shall comprise of three functional elements:

              1.   the MSSC/VLR which provides the actual interception of target
                   calls

              2.   the Legal Interception Activation System (LIAS); one at each
                   SAN

              3.   the Legal Interception Management System (LIMS)

         The functional requirements of these 3 elements are stated in the
         following paragraphs.

         6.20.27.  MSSC requirements

         6.20.27.1. The MSSC shall be capable of intercepting all calls
         from/to a particular subscriber including, but not limited to,
         forwarded calls and incoming calls to roaming subscribers.

         6.20.27.2. The interception by the MSSC of user communications shall be
         imperceptible to the end user i.e. the MSSC shall support covert
         monitoring.

         6.20.27.3. The services and features on offer to the end user by the
         MSSC shall not be limited by or otherwise affected by the application
         of interception.

         6.20.27.4. The MSSC shall generate CDRs to support the billing of the
         monitoring agencies for the resources used as a result of the
         interception. For the type of CDRs to be generated, see clause
         5.1.1.1.1.3. of the IGF requirements (i.e. Schedule 13 of the Supply
         Agreement).

         6.20.28. LIAS requirements

         6.20.28.1. The LIAS shall support the mediation of intercept requests
         received from the LIMS to the MSSC/VLR.

         6.20.28.2. The LIAS shall support authentication of interception
         requests received from the LIMS to ensure that no unauthorised
         interception requests are accepted at the SAN.

         6.20.28.3. The LIAS shall provide buffering of intercept product and
         intercept related data delivered by the co-located MSSC at a SAN,
         whilst setting up connections to the specified monitoring centres,
         before routing the same to the destination addresses.

         6.20.28.4. The LIAS shall provide appropriate handling of SANLOC and
         SUBLOC interceptions according to the position information of the
         targets received from the MSSC for the monitored calls.

         6.20.28.5. The LIAS shall generate CDRs to support the billing of the
         monitoring agencies for the resources used as a result of the
         interception.

         6.20.29. LIMS requirements

         6.20.29.1. The LIMS shall support centralised management of legal
         interception capability.
<PAGE>   2329
         6.20.29.2. The LIMS shall provide secure management of legal
         interception warrants for intercepts. There shall be strict isolation
         between interception requests submitted by different agencies - even if
         agencies operate within the same national jurisdiction or have
         submitted warrants against the same target subscriber.

         6.20.29.3. The LIMS shall be able to configure an authorised intercept
         as SANLOC or SUBLOC with appropriate execution of the interception at
         the SANs.

         6.20.29.4. The LIMS shall support both manual and scheduled
         application/removal of interception of targets in the ICONET in a
         secure manner and without visibility to the local SAN operational
         staff.

         6.20.29.5. The LIMS shall only apply interceptions to those SANs which
         provide coverage in the jurisdiction of the interception authority
         presenting the warrant.

         6.20.29.6. The LIMS shall maintain an audit trail of all actions
         performed by the operator(s) of the LIS.

         6.20.29.7. The LIMS shall be capable of auditing the interceptions set
         up at each SAN to determine if unauthorised interceptions have been set
         up at a SAN.

         6.20.29.8. The LIMS shall provide centralised Operation, Administration
         and Maintenance (OAM) facilities of the LIS.

         6.20.30. In addition to the technical requirements stated in section
         6.20. of this IGF requirements specification, the LIS shall comply with
         the technical proposals as detailed in the ICO-Ericsson Control
         Document number 360497 Chapter 6.
<PAGE>   2330
                                                             CHANGE ORDER NO: 25

[ICO LOGO]                    IGF SUPPLY AGREEMENT
                          CONTRACT NO ICOO97 - 1016/GW
                                                             DATE:   18 MAY 2000

In accordance with clause 9 of the Supply Agreement dated March 3rd 1997 between
NEC Corporation and ICO Global Communications Holdings BV, the Agreement is
hereby amended as follows:

Change Order Summary                   Attached
Amended Clauses                        Amended text attached
Amended Schedules                      Amendments attached
Amended Annexes                        Amendments attached
Amended Price                          Amendments attached

This Change Order No. 25 will now form part of the Supply Agreement dated March
3rd 1997 between the parties and shall be effective as at the date of the Change
Order No. 25 and shall be governed by and construed in accordance with the laws
of England.

Except for the changes set out herein, this Change Order No. 25 makes no further
amendments or modifications to the Agreement.

Signed for and on behalf of               Signed for and on behalf of
ICO GLOBAL COMMUNICATIONS HOLDINGS BV     NEC CORPORATION

/s/ K. SMITH                                 ***
-------------------------------------     --------------------------------------
Supervising Officer for G. Titzer         Contractor's Authorised Representative
                                          Minoru Usui, General Manager
                                          Europe, Middle East and Africa
                                          Sales Division

11 May 2000                               18th May, 2000
-------------------                       -------------------
Date                                      Date
<PAGE>   2331
                                                                      [ICO LOGO]

11 May 2000
Our Ref: SA2018/WG8/20000511/GLT

NEC Corporation                                        ICO GLOBAL COMMUNICATIONS
c/o NEC Program Office                                 Commonwealth House
5th Floor, Horatio House                               2, Chalkhill Road
77-85 Fulham Palace Road                               Hammersmith London W6 8DW
Hammersmith                                            United Kingdom
London W6 8JC
                                                       TEL +44 (0) 20 8600 1000
For the attention of Mr Tadao Furukawa                 FAX +44 (0) 20 8600 1199

Dear Sirs

SUBJECT: CHANGE ORDER NO. 25 TO THE SUPPLY AGREEMENT

Pease find enclosed, two ICO signed cover sheets of Change Order No. 25 to the
Supply Agreement and one original copy of the Change Order.

Please sign both cover sheets, and return one copy to the ICONET Project Office.

Yours faithfully,

/s/ G. L. Titzer
Gary L. Titzer
Vice President ICONET

CC:  Dr. A. Fujii, Mr. T. Kawauchi, M. Hattori, Mr. I. Woodhouse, NEC
     Documentation Manager
     M. Banerjee, K. Smith, P. Beauchamp, S. Sari, G. Wiginton, ICONET Project
     Office

ICONET PROJECT OFFICE

Confidential and Proprietary to ICO Global Communications
<PAGE>   2332
                                                                      [ICO LOGO]

                                                       ICO GLOBAL COMMUNICATIONS
                                                       Commonwealth House
                                                       2, Chalkhill Road
                                                       Hammersmith London W6 8DW
                                                       United Kingdom

                                                       TEL +44 (0) 20 8600 1000
                                                       FAX +44 (0) 20 8600 1199

SIGN OFF SHEET

DOCUMENT NAME:
NEC SUPPLY AGREEMENT - CHANGE ORDER NO. 25 - SUPPLY AGREEMENT
--------------------------------------------------------------------------------
ICO            ICOO97 -           VERSION: 1.0         DATE: May 2000
DOCUMENT       1016/GW
REFERENCE
NO:
--------------------------------------------------------------------------------

The purpose of this Change Order is to incorporate the Commercial Terms set
forth in Exhibit A of the MoA dated January 2000 and the Stage 0 de-scoping.
The Price of the Supply Agreement is increased by US$13M net, being plus US$15M
from the IGF Program Extension Fee and minus US$2M for items removed in the
de-scoping.

APPROVAL     PROCUREMENT AND   ICONET            SVP & CHIEF     SVP OPERATIONS
FOR          CONTRACT                            ENGINEERING
SIGNATURE:   MANAGEMENT                          OFFICER
--------------------------------------------------------------------------------
SIGNATURE:   /s/ G. Wiginton   /s/ G. L. Titzer  /s/ K. Smith    /s/ M. Banerjee
--------------------------------------------------------------------------------
PRINTED      G. Wiginton       G. Titzer         K. Smith        M. Banerjee
NAME:
--------------------------------------------------------------------------------

<PAGE>   2333
APPROVAL     LEGAL             FINANCE           JPL             CEO
FOR
SIGNATURE:
--------------------------------------------------------------------------------
SIGNATURE:   /s/ G. Grant      /s/ A. Rowbotham                  /s/ R. Greco
--------------------------------------------------------------------------------
PRINTED      G. Grant          A. Rowbotham                      R. Greco
NAME:
--------------------------------------------------------------------------------
                                                                         Page 2
<PAGE>   2334
                               CHANGE ORDER NO: 25
                                  ATTACHMENT 1
<PAGE>   2335
                                                             CHANGE ORDER NO. 25
                                                 TO THE SUPPLY AGREEMENT BETWEEN
                                                             NEC CORPORATION AND
                                           ICO GLOBAL COMMUNICATIONS HOLDINGS BV
                                                                    ATTACHMENT 1

By this Change Order No. 25 , the Supply Agreement dated March 3, 1997, between
NEC Corporation ("the Contractor") and ICO Global Communications Holdings BV
("ICO") (the "Supply Agreement") is amended as set out herein.

BACKGROUND TO CHANGE ORDER NO. 25

1)   ICO and the Contractor entered into a "Stipulation and Agreement" on 19
     October 1999, as amended and approved by the US Bankruptcy Court ("the
     Stipulation".)

2)   ICO and the Contractor further entered into a 'Memorandum of Agreement for
     the Enhancement to the ICONET Ground Facility' on 18 January 2000 ("the
     MOA"), as amended and approved by the US Bankruptcy Court. Pursuant to
     clause 3 of the MOA, the parties agreed to abide by the Commercial Terms
     set out in Exhibit A to the MOA until those terms are incorporated in an
     amendment to the Supply Agreement.

The purpose of this Change Order is to incorporate into the Supply Agreement the
following:

(i)  the terms set out in Exhibit A to the MOA
(ii) other agreed modifications to the Supply Agreement

The amendments to the Supply Agreement are set out in Attachments Nos. 2, 3, 4,
5, 6 and 7 hereto.

The parties agree, for the purposes of clause 3 of the MOA, that the provisions
of paragraphs 3.1 to 3.5 of Attachment 2 of this Change Order, and the other
agreed modifications to the Supply Agreement, shall be deemed to incorporate the
commercial terms set out in Exhibit A to the MOA and to supersede the same.

Except as expressly provided herein, this Change Order does not amend the terms
and conditions of the Supply Agreement, the Stipulation, or the MOA which
agreements shall continue in full force and effect.

The parties agree that neither shall rely upon the execution and performance of
this Change Order as comprising assumption or rejection of the Supply Agreement.

ICO has informed the Joint Provisional Liquidators and counsel for the
Creditors' Committee of this agreement and has confirmed that neither has issued
any objection thereto.

Capitalised terms in this Change Order which are not defined herein are as
defined in the MOA or the Supply Agreement.

                                      -1-
<PAGE>   2336
                               CHANGE ORDER NO: 25
                                  ATTACHMENT 2
<PAGE>   2337
                                                             CHANGE ORDER NO. 25
                                                 TO THE SUPPLY AGREEMENT BETWEEN
                                                             NEC CORPORATION AND
                                           ICO GLOBAL COMMUNICATIONS HOLDINGS BV

                                                                    ATTACHMENT 2
1.   PRICE

     1.1.
     The parties agree , as at the date hereof, to the reduction in the Price
     consequent upon the agreed de-scoping activities under this Change Order
     for the amount of *.

     1.2.
     The parties also agree, as at the date hereof, to the increase in the Price
     consequent upon the extension of the IGF Project under this Change Order
     for the amount of * payable by ICO, to the Contractor.

2.   AMENDMENT TO THE SUPPLY AGREEMENT

    2.1
    As at the date hereof the parties agree to amend specified parts of the
    Supply Agreement in accordance with this Change Order.

<TABLE>
<CAPTION>

  TERMS AND CONDITIONS                                                         AMENDED
--------------------------------------------------------------------------------------------
<S>                                                                            <C>
  Schedule 1: Definitions                                                      Not Amended
  Schedule 2: Precedence of Documents                                          Not Amended
  Schedule 3: Dispute Resolution Procedure                                     Not Amended
  Schedule 4: Agreed Form Invoice                                              Not Amended
  Schedule 5: Not Used                                                         N/a
  Schedule 6: Key Features                                                     Not Amended
  SCHEDULE 7: TOP LEVEL MILESTONES                                             AMENDED
  Schedule 8: Identification of Sites                                          Not Amended
  SCHEDULE 9: PRICING SCHEDULE                                                 AMENDED
  Schedule 10: Vendor Financing Summary                                        Not Amended
  SCHEDULE 11: PAYMENT SCHEDULE                                                AMENDED
  Schedule 12: Acceptance Certificate                                          Not Amended
  SCHEDULE 13: IGFR                                                            AMENDED
  Schedule 14: Statement of Work                                               Not Amended
  ANNEX-1: CONTRACTOR'S DELIVERABLES                                           AMENDED
  Annex-2: Services & Equipment                                                Not Amended
  Annex-3: Installation Site Conditions                                        Not Amended
  ANNEX-4: PROGRAMME MANAGEMENT AND IMPLEMENTATION                             AMENDED
  Annex-5: Training                                                            Not Amended
  Annex-6: Documentation                                                       Not Amended
  Annex-7A: Site Working Arrangements                                          Not Amended
  ANNEX-7B: JOINT WORKING ARRANGEMENTS                                         AMENDED
  ANNEX-7C: NETWORK PARTITIONING                                               AMENDED
  ANNEX-8A: IGF TEST PLAN                                                      AMENDED
  ANNEX-8B: DEMONSTRATION PLAN                                                 AMENDED
  Annex-9: ICONET Integration                                                  Not Amended
  ANNEX-10: ICONET GROUND FACILITIES ACCEPTANCE CRITERIA                       AMENDED
  Annex-11: Air Interface Signalling Protocol Validation                       Not Amended
</TABLE>

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   2338
     2.2.
     Except as set out in 2.3 below, the amended portions of the Supply
     Agreement recorded above are appended hereto as Attachments 3, 4, 5, and 7
     to this Change Order.

     2.3.
     The parties also recognise the need to duly reflect other agreed changes
     within the Supply Agreement as set out below to incorporate the matters in
     this paragraph below. The parties undertake to ensure that the required
     changes specified within this paragraph shall be completed within 3 months
     of the date of this Change Order or by such time as the parties shall
     otherwise agree. The parties agree that implementation of these changes
     shall be effective upon agreement without the need for the parties to
     formalise the incorporation of such agreed changes by way of further Change
     Order.

-    Schedule 9 - Pricing Schedule
     -    2.1.1.1   Table 1     SA PRICE SUMMARY
     -    7.        Table 24    SA PRICE CHANGE HISTORY

-    Schedule 9 - Pricing Schedule Appendix 1
     -    Page 1    GRAND TOTAL SHEET
     -    Page      SWITCH
     -    Page      AX+B

-    Schedule 9 - Pricing Schedule Appendix 2
     -    I         PRICE SUMMARY
     -    II.1      PRICE SUMMARY (NRE)
     -    II.2      PRICE SUMMARY (HARDWARE)
     -    II.3      PRICE SUMMARY (SOFTWARE LICENCE)
     -    II.4      PRICE SUMMARY (SERVICES)
     -    II.6      PRICE SUMMARY (SERVICES BREAKDOWN)

-    Schedule 11 - Payment Schedule and Payment Schedule Classification Summary
     -    I         PAYMENT SCHEDULE CLASSIFICATION SUMMARY
     -    III.4     PAYMENT SCHEDULE CLASSIFICATION SUMMARY SWITCH
     -    III.9     PAYMENT SCHEDULE CLASSIFICATION SUMMARY AX+B

-    Schedule 13 IGFR (V 29.1)- The agreed IGFR changes as set out in
     Attachment-6 shall be incorporated in IGFR.

-    Schedule 14 Statement of Work Annex 1 - Contractor's Deliverables, Table 2,
     Deliverable Equipment -
<PAGE>   2339
3. TERMS SET OUT IN EXHIBIT A TO THE MOA.

    3.1. To the extent feasible the Commercial Terms set out in Exhibit A to the
    MOA have been incorporated into the text of the Supply Agreement attached
    hereto as attachment 7. Those Commercial Terms which have not been
    incorporated into the Supply Agreement by this Change Order No. 25 are set
    out at paragraphs 3.2 - 3.5 below.

    3.2. The parties agree to negotiate in good faith to develop a detailed
    service level agreement that will provide specifics such as staffing,
    response times, availability of spares, etc. for warranty service.

    3.3. At ICO's request and on terms and conditions to be negotiated in good
    faith by the parties, the Contractor will provide ICO or its designee with
    on-going maintenance support for the ICONET Ground Facilities (including
    system expansion and enhancement support but excluding first line support.)

    3.4. Upon ICO's request, the Contractor shall provide reasonable support to
    ICO's fundraising and marketing activities from to time to time. The
    Contractor shall co-operate with and fully support ICO's reasonable requests
    for reviews of the Contractor's, or any of its Sub-Contractors', technical
    efforts necessary for due diligence purposes, on condition that such access
    shall not affect NEC's primary obligation under the Supply Agreement. For
    this purposes "primary obligation" shall mean the Contractor's Primary
    Obligations and Warranties set forth in clause 4.1 of the Supply Agreement.

    3.5 The Contractor will discuss vendor financing in good faith with ICO when
    ICO exits bankruptcy and all outstanding amounts due to NEC are cured or
    otherwise resolved to the mutual satisfaction of the parties.

4.
The parties agree that this Change Order shall be categorised as a Clause 15.1
Change Order.

5.
The Parties agree that neither the Contractor nor any member of the NEC Team
shall have any obligation to provide vendor financing to ICO pursuant to this
Change Order.
<PAGE>   2340
                               CHANGE ORDER NO. 25

                                  ATTACHMENT 3

                   AMENDMENTS TO SCHEDULE 9, PRICING SCHEDULE
<PAGE>   2341

                                        *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

<PAGE>   2342
                               CHANGE ORDER NO. 25

                                  ATTACHMENT 4

                   AMENDMENTS TO SCHEDULE 9, PRICING SCHEDULE

                                   APPENDIX 5
<PAGE>   2343
                                                                      SCHEDULE 9
                                                                      APPENDIX 5

                                   APPENDIX 5
<PAGE>   2344
                                                                      SCHEDULE 9
                                                                      APPENDIX 5

IGF Program Extension Fee......................................   *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   2345
                               CHANGE ORDER NO: 25

                                  ATTACHMENT 5

                      AMENDMENT TO SCHEDULE 11, APPENDIX 1
<PAGE>   2346
                                                                     SCHEDULE 11
                                                                      APPENDIX 1

The following is to be added to Schedule 11, Appendix 1

<TABLE>
<CAPTION>
IGF PROGRAM EXTENSION FEE
                                                                PAYMENT SCHEDULE
<S>                                                             <C>
                                                                  US$

20%  of the Program extension fee on
     Acceptance Set 1 Completion

20%  of the Program extension fee on
     Acceptance Set 2 Completion

20%  of the Program extension fee on                                    *
     Acceptance Set 3 Completion

20%  of the Program extension fee on
     Acceptance Set 4 Completion

20%  of the Program extension fee on                                    *
     Acceptance Set 5 Completion
</TABLE>

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   2347

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

                               CHANGE ORDER NO: 25
                                  ATTACHMENT 6

                        CHANGES TO BE MADE TO SCHEDULE 13

                      ICONET GROUND FACILITIES REQUIREMENTS
<PAGE>   2348
                              NEC PROGRAM OFFICE
                                 ICO PROJECT

5th Floor, Horatio House
77-85 Fulham Palace Rd
LONDON
W6 8JC
UK
Tel : +44 (0) 181 600 4200
Project Administration Fax : +44 (0) 181 600 4290
Project Management Fax : +44 (0) 181 600 4295
System Engineering Fax : +44 (0) 181 600 4296

                                 DOCUMENT HEADER

-------------------------------------------------------------------------------
DOCUMENT TITLE / SUBJECT & INDEX REFERENCE
-------------------------------------------------------------------------------
Proposed Changes to IGFR Version 29 for STAGE 0
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------
ISSUER INFORMATION                          ICO PROJECT DOCUMENT NUMBER
ISSUED BY             DATE:            WORKGROUP   TYPE   YR   NUMBER   REV
Ram Subramaniam       11 April, 2000      WGA       CR    0     0053
                                                                         B2
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------
WORKGROUP                                   DOCUMENT TYPE
WGA- NEC (PO) System Engineering
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------
PROJECT OFFICE USE           DATE      8.3 DOS FILENAME        ISSUING GROUP
                                                               DOCUMENT NUMBER
                                       A00053B2.DOC
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------
SECURITY LEVEL                         ADDITIONAL NOTES IF REQUIRED

[X] CONFIDENTIAL

[ ] RESTRICTED

[ ] NON - RESTRICTED
-------------------------------------------------------------------------------

[ ] Attached is a copy of a document, which is issued to you under the Data &
Documentation Control procedure WG8-PL-60002-A1. You will receive all
subsequent updates on this document. It is your responsibility to maintain
the documentation to its latest status. Please advise the NEC Project Office
Documentation Manager if you do not require further updates.

[X] Attached is a copy of the updated document. Please update & destroy any
previous issued copies, or advise the NEC Project Office Documentation
Manager if you do not require any further updates.
<PAGE>   2349
                               NEC PROGRAM OFFICE
                                   ICO PROJECT

------------------------------------------
DOCUMENT NUMBER       WGA-CR-0-0053
------------------------------------------
VERSION:              B2
------------------------------------------
DATE:                 11 APRIL, 2000
------------------------------------------

------------------------------------------
PREPARED              APPROVED
------------------------------------------
RAM SUBRAMANIAM       DR AKIRA FUJII
------------------------------------------
<PAGE>   2350
                                                                      [NEC LOGO]
--------------------------------------------------------------------------------

                                REVISION HISTORY

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------
     REVISION            AUTHOR            DATE                               DESCRIPTION
      NUMBER
------------------------------------------------------------------------------------------------------------------
<S>                      <C>          <C>              <C>
       A1.0                RS           15 March 00    First draft version.
------------------------------------------------------------------------------------------------------------------
       A1.1                RS           21 March 00    AF comments incorporated
------------------------------------------------------------------------------------------------------------------
       A1.2                RS           28 March 00    ETL comments incorporated
------------------------------------------------------------------------------------------------------------------
       A1.3                RS           29 March 00    HNS, NEC(J) and NECA input included
------------------------------------------------------------------------------------------------------------------
       A1.4                RS           29 March 00    Further comments incorporated
------------------------------------------------------------------------------------------------------------------
        A1                 AF           30 March 00    Minor corrections
------------------------------------------------------------------------------------------------------------------
        A2                 AF           30 March 00    Further comments incorporated
------------------------------------------------------------------------------------------------------------------
        A3                 AF           31 March 00    WGA and WG1 inputs incorporated
------------------------------------------------------------------------------------------------------------------
        A4                 AF          1 April 2000    ICO input for de-scope incorporated
------------------------------------------------------------------------------------------------------------------
        A5                 AF          3 April 2000    4.2.2.7 changed to include 9.6kbps signalling code points
------------------------------------------------------------------------------------------------------------------
        A                  AF          4 April 2000    4.2.2.4 to 6 deleted.
------------------------------------------------------------------------------------------------------------------
        B1                 RS         10 April, 2000   Changes to reflect the discussion with ICO on 7/4/00
------------------------------------------------------------------------------------------------------------------
       B1.1                RS         11 April, 2000   Further minor corrections
------------------------------------------------------------------------------------------------------------------
       B.2                 RS         11 April, 2000   Changes to reflect ICO's comments on 11/4/00
------------------------------------------------------------------------------------------------------------------
</TABLE>

The attached tables list proposed changes to IGFR Version 29 required to
implement the STAGE 0 enhancements stated in the MOA and clarified further in
ICO Document " IGFR de-scope - Advise to NEC, ref. EN-IG-ICO-TN-001085
version 1.0, dated 31 March 2000

Some previously issued Change Requests for IGFR Version 28.4 are still
pending. These are not included in this list.

Changes related to HPN are not included.

                 NEC Program Office - CONFIDENTIAL & PROPRIETARY

                                        i
<PAGE>   2351
Proposed Changes to IGFR Version 29 for STAGE 0                       [NEC LOGO]
--------------------------------------------------------------------------------

1.  Proposed Changes based on the MOA and ICO de-scope document

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
NO.     IGFR REFERENCE                         REVISED TEXT                            DESCRIPTION OF         COMMENTS
                                                                                       PROPOSED CHANGES
-----------------------------------------------------------------------------------------------------------------------------
<S>     <C>            <C>                                                             <C>                 <C>
1-1     1.4.4          Non Requirement                                                 New Para. added
                                                                                       for definition
                                                                                       of (N/R)
-----------------------------------------------------------------------------------------------------------------------------
1-2     1.4.4.1        The requirements marked by ( N/R) in this document  are         Definition of
                       deleted and the texts are retained for the purpose of           (N/R)
                       requirement tracing only.
-----------------------------------------------------------------------------------------------------------------------------
1-3     4.1.3.1        Facsimile Group 3 (up to 9600 bps) using GSM  Definition        GSM FAX not         Includes all
                       (N/R)                                                           supported           subpara.

-----------------------------------------------------------------------------------------------------------------------------
1-4     4.1.3.2        Facsimile Group 3 (up to 14.4 kbps) using GSM Standard(N/R)     GSM FAX not         Includes all
                                                                                       supported           subpara.
-----------------------------------------------------------------------------------------------------------------------------
1-5     4.1.3.3        Alternate Voice/Group 3 Facsimile using GSM Definition (N/R)    GSM FAX not         Includes all
                                                                                       supported           subpara.
-----------------------------------------------------------------------------------------------------------------------------
1-6     4.1.3.5        Dynamic Assignments of Voice/Fax IWF Resources (N/R)            IWF to support
                                                                                       FAX in MSSC is
                                                                                       not supported
-----------------------------------------------------------------------------------------------------------------------------
1-7     4.2.1          Circuit Mode Data Services (up to 4800 bps) using GSM           CSD only up to
                       Standard                                                        4800bps supported
-----------------------------------------------------------------------------------------------------------------------------
1-8     4.2.1.2        Asynchronous data (BS 2x), transparent and non-transparent,     CSD only up to
                       at bit rates of 300, 1200, 1200/75, 2400 and 4800 bps. For      4800bps supported
                       Non-transparent rates of 2400bit/s and below the network
                       shall use two slots for transmission and require the UT to
                       transmit on one slot if the classmark indicates that it can
                       only transmit on a single slot, otherwise the UT shall
                       transmit using two slots.
-----------------------------------------------------------------------------------------------------------------------------
1-9     4.2.1.3        Synchronous data (BS 3x), transparent,  at bit rates of 1200,   CSD only up to
                       2400 and 4800 bps.                                              4800bps supported

-----------------------------------------------------------------------------------------------------------------------------
1-10    4.2.1.5        The Data  Interworking  Function of IGF shall  support  basic   CSD only up to
                       packet  services  at 2400  and  4800  bps.  Support  of basic   4800bps supported
                       packet  service in IGF is the  passing of X.25  packet  layer
                       information.   The   services  use  either  a  modem  or  the
                       Unrestricted  Digital  Information (UDI) Transfer  Capability
                       of the ISDN,  for the UDI case X.31  HDLC  flag  stuffing  is
                       used for rate  adaptation.  With a modem both transparent and
                       non transparent  services are supported.  With UDI, utilising
                       the  HDLC  flag  stuffing   towards  ISDN,  only  synchronous
                       non-transparent services are supported.
-----------------------------------------------------------------------------------------------------------------------------
1-11    4.2.2          General Bearer Services using GSM Standard                      HSCSD not
                                                                                       supported
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>

Version B2                                                       11 April, 2000
<PAGE>   2352
Proposed Changes to IGFR Version 29 for STAGE 0                       [NEC LOGO]
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
NO.     IGFR REFERENCE                         REVISED TEXT                            DESCRIPTION OF         COMMENTS
                                                                                       PROPOSED CHANGES
-----------------------------------------------------------------------------------------------------------------------------
<S>     <C>            <C>                                                             <C>                 <C>
1-12    4.2.2.1.       The IGF shall support General Bearer services as defined in     HSCSD not
                       TS GSM 02.02 subject to the clarifications included below.      supported
                       For further details of the Ericsson implementation of these
                       services see ETL document LK/XX 1056-272
-----------------------------------------------------------------------------------------------------------------------------
1-13    4.2.2.3          The IGF shall support both transparent and  non-transparent   Symmetric CSD
                       services.                                                       only up to
                                                                                       4800bps supported
                       Synchronous non-transparent services for data rates above
                       9600 bit/s shall be available no later than by the release
                       date of CME20 R9.( N/R )
-----------------------------------------------------------------------------------------------------------------------------
1-14    4.2.2.4.       The  IGF shall support autobauding for non-transparent          In-Call
                       services.  For non-transparent services it shall be possible    Up/downgrade of
                       to change the data rate during the call.(N/R)                   data  rates is
                                                                                       not supported.
-----------------------------------------------------------------------------------------------------------------------------
1-15    4.2.2.5.       The IGF shall support the modification of the number of         In-Call
                       channels allocated to a particular non-transparent  HSCSD       Up/downgrade of
                       connection via in-call modification and on handover.(N/R)-      data  rates is
                                                                                       not supported.
-----------------------------------------------------------------------------------------------------------------------------
1-16    4.2.2.6.       If during the assignment of traffic  channels or at handover    In-Call
                       a traffic channel congestion is encountered, the call set-up    Up/downgrade of
                       or  handover for non-transparent services can be carried        data  rates is
                       using less channels than initially requested.(N/R)              not supported.
-----------------------------------------------------------------------------------------------------------------------------
1-17    4.2.2.7.        Circuit mode data services  shall be supported by the system   Symmetric CSD
                        for symmetric services with the following requirements:        only up to
                                                                                       4800bps
                        1.  Air Interface rates of 2.4 and 4.8 kbit/s;                 supported.
                                                                                       Code points for
                        2.  Signalling  code points for the  following  rates:  0.3,   9.6 kbps needed
                            1.2, 1.2/0.075, 2.4, 4.8 and 9.6 kbit/s;                   to support
                                                                                       9.6/2.4
                        3.  For 3.1kHz modem access refer to section 6.18;             asymmetric rate.

                        4.  For UDI access, rates of 2.4 and 4.8 kbit/s
-----------------------------------------------------------------------------------------------------------------------------
1-18    4.8.9.1        ( See Attached Table 4-1 )                                      To reflect the
                                                                                       changes in GSM
                                                                                       Fax and Data
                                                                                       above  4800bps
-----------------------------------------------------------------------------------------------------------------------------
1-19    6.31.2.1       The  MSSC  shall  support  and use the  Channel  Mode  Modify   Channel Mode
                       procedure  to  control  the  radio  path  from  the SBS  when   Modify within
                       providing data services via the D-IWF.                          MSSC is
                                                                                       supported only
                                                                                       for Data
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>

Version B2                               3                        11 April, 2000
<PAGE>   2353
Proposed Changes to IGFR Version 29 for STAGE 0                       [NEC LOGO]
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
NO.     IGFR REFERENCE                         REVISED TEXT                            DESCRIPTION OF         COMMENTS
                                                                                       PROPOSED CHANGES
-----------------------------------------------------------------------------------------------------------------------------
<S>     <C>            <C>                                                             <C>                 <C>
1-20    6.31.2.3       The message speed used for the facsimile  transmission is not   GSM Fax not
                       known when setting up a facsimile  connection.  This speed is   supported
                       determined   by  T.30   negotiation   between  the  facsimile
                       machines.  The  facsimile  adapter  reads  the  frames of the
                       negotiation.  When the  facsimile  adapter has  detected  the
                       rate,  the  chosen  rate  must be  indicated,  if  this  rate
                       differs  from the radio  channel  rate.  The D-IWF  will then
                       initiate  the  Channel  Mode  Modify  procedure,  in order to
                       change the user rate on the radio channel.(N/R)
-----------------------------------------------------------------------------------------------------------------------------
1-21    6.31.2.4       The  facsimile  machines  may  decide  to  change  to a lower   GSM Fax not
                       facsimile  transmission  rate, due to bad line quality.  This   supported
                       may happen  during the in-band  call set-up or in data phase.
                       In both cases,  the facsimile  adapter performs a request for
                       Channel Mode Modify. (N/R)
-----------------------------------------------------------------------------------------------------------------------------
1-22    6.31.2.5       The facsimile machines may also change back to a higher         GSM Fax not
                       facsimile transmission rate. (N/R)                              supported
-----------------------------------------------------------------------------------------------------------------------------
1-23    6.32.4         The MSSC/VLR checks the received request and if the             In-Call
                       requested mode is already the actual one, the MSSC/VLR          modification
                       completes the in-call modification procedure without            within MSSC is
                       initialising anything else. Otherwise, the MSSC/VLR informs     not supported
                       the interworking unit about the in-call modification
                       request. (N/R)
-----------------------------------------------------------------------------------------------------------------------------
1-24    6.32.5         The MSC/VLR performs a new assignment procedure to adapt to     In-Call
                       the new mode.(N/R)                                              modification
                                                                                       within MSSC is
                                                                                       not supported
-----------------------------------------------------------------------------------------------------------------------------
1-25    6.32.6         The connection of the D-IWF is performed in the MSSC/VLR        In-Call
                       when switching from speech to fax. The connection of the        modification
                       D-IWF is released in the MSSC/VLR when switching from fax to    within MSSC is
                       speech. (N/R)                                                   not supported
-----------------------------------------------------------------------------------------------------------------------------
1-26    6.32.7         The MSSC/VLR orders the D-IWF to put into effect the            In-Call
                       requested mode.(N/R)                                            modification
                                                                                       within MSSC is
                                                                                       not supported
-----------------------------------------------------------------------------------------------------------------------------
1-27    6.32.8         The MSSC/VLR completes the in-call modification procedure by    In-Call
                       acknowledging the mobile subscriber and for fax call, wait      modification
                       for data transfer indication from D-IWF.(N/R)                   within MSSC is
                                                                                       not supported
-----------------------------------------------------------------------------------------------------------------------------
1-28    8.4            Automatic Facsimile Group 3 ( up to 2400 bps) Quality Of         Up to 2400bps is    Title change
                       Service                                                         supported
-----------------------------------------------------------------------------------------------------------------------------
1-29    8.4.1          Transparent Mode ( GSM FAX ) (N/R)                              GSM FAX not
                                                                                       supported
-----------------------------------------------------------------------------------------------------------------------------
1-30    8.4.2          In-Band Fax (TBD)                                               New section for
        ( New Para )                                                                   In-Band Fax
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>

Version B2                               4                        11 April, 2000
<PAGE>   2354
Proposed Changes to IGFR Version 29 for STAGE 0                       [NEC LOGO]
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
NO.     IGFR REFERENCE                         REVISED TEXT                            DESCRIPTION OF         COMMENTS
                                                                                       PROPOSED CHANGES
-----------------------------------------------------------------------------------------------------------------------------
<S>     <C>            <C>                                                             <C>                 <C>
1-31    8.5            Circuit Mode Data (up to 4800bps symmetric, 9600/2400bps and    Only CSD up to
                       4800/2400bps) Quality Of Service                                4800bps
                                                                                       symmetric,
                                                                                       9600/2400 and
                                                                                       4800/2400 is
                                                                                       supported
-----------------------------------------------------------------------------------------------------------------------------
1-32    8.6            Circuit Mode Data (greater than 9600bps) Quality Of Service     HSCSD is not
                       (TBD) - (N/R)                                                   supported

-----------------------------------------------------------------------------------------------------------------------------
1-33    8.12.1.4       GSM Data Traffic                                                GSM Fax not
                                                                                       supported
-----------------------------------------------------------------------------------------------------------------------------
1-34    8.12.1.4.1     The transit time is measured as the time duration from the      GSM Fax not
                       first bit of a data circuit into the TNM to the                 supported.
                       corresponding bit out......                                     See also Item 3-3
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>

Version B2                               5                        11 April, 2000
<PAGE>   2355
Proposed Changes to IGFR Version 29 for STAGE 0                       [NEC LOGO]
--------------------------------------------------------------------------------

       TABLE 4-1 AVAILABILITY OF PRODUCTS AND SERVICES TO ROAMING SUBSCRIBERS

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------
                                                             CELLULAR ROAMERS TO ICO            ICO ROAMERS TO CELLULAR
                                                          -----------------------------     ----------------------------------
                   SERVICE OR FEATURE                     GSM        IS.41       PDC TO      ICO          ICO TO       ICO TO
                                                          TO ICO     TO ICO        ICO       TO GSM        IS.41         PDC
                                                                                 (OPTION)                              (OPTION)
------------------------------------------------------------------------------------------------------------------------------
<S>                                                       <C>       <C>          <C>         <C>         <C>         <C>
TELESERVICES
------------------------------------------------------------------------------------------------------------------------------
SPEECH SERVICES
------------------------------------------------------------------------------------------------------------------------------
4.1.1.1 Telephony (TS 11)                                   Y          Y            Y           Y            Y
------------------------------------------------------------------------------------------------------------------------------
4.1.1.2 Emergency calls (TS 12)                             Y          Y            Y           Y          NA(1)
------------------------------------------------------------------------------------------------------------------------------
SHORT MESSAGE SERVICES (SMS)
------------------------------------------------------------------------------------------------------------------------------
4.1.2.1 Mobile Terminated SMS (TS 21)                       Y        Y (2)         F/R          Y          Y(2)
------------------------------------------------------------------------------------------------------------------------------
4.1.2.1 Mobile Originated SMS (TS 22)                       Y        Y (2)         F/R          Y          Y(2)
------------------------------------------------------------------------------------------------------------------------------
FACSIMILE SERVICES (UP TO 9600 BPS)
------------------------------------------------------------------------------------------------------------------------------
4.1.3.1 Automatic fax group 3 (TS 62)                      N/R       N/R           N/R          N/R         N/R
-----------------------------------------------------------------------------------------------------------------------------
4.1.3.3 Alternate speech and fax group 3 (TS 61)           N/R       N/R           N/R          N/R         NA
------------------------------------------------------------------------------------------------------------------------------
4.1.3.4 Alternate speech/fax - inband detection             Y          Y            Y           NA           Y
------------------------------------------------------------------------------------------------------------------------------
FACSIMILE SERVICES, HIGH SPEED BEARERS (HSCSD)
------------------------------------------------------------------------------------------------------------------------------
4.1.3.2 Fax group 3 up to 14.4 kbps                                   N/R          N/R          N/R         N/R
                                                           N/R
------------------------------------------------------------------------------------------------------------------------------
BEARER SERVICES
------------------------------------------------------------------------------------------------------------------------------
CIRCUIT SWITCHED DATA (UP TO 4800 BPS)
------------------------------------------------------------------------------------------------------------------------------
4.2.1 Data circuit duplex asynchronous (BS 2x)              Y        Y (7)        Y (7)         NA          NA
------------------------------------------------------------------------------------------------------------------------------
4.2.1 Data circuit duplex synchronous (BS 3x)               Y        Y (7)        Y (7)         NA          NA
------------------------------------------------------------------------------------------------------------------------------
4.2.3 Alternate Speech/Data - inband detection              Y          Y            Y           NA           Y
------------------------------------------------------------------------------------------------------------------------------
GENERAL BEARER SERVICES( 2400,4800,9600/2400 AND
4800/2400 BPS )
------------------------------------------------------------------------------------------------------------------------------
4.2.2 General data circuit duplex asynch. (BS 20)          Y(6)      Y (7)        Y (7)         (6)          N/A
------------------------------------------------------------------------------------------------------------------------------
4.2.2 General data circuit duplex synch. (BS 30)          Y (6)      Y (7)        Y (7)        Y (6)         NA
------------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTARY SERVICES
------------------------------------------------------------------------------------------------------------------------------
CALL OFFERING SUPPLEMENTARY SERVICES
------------------------------------------------------------------------------------------------------------------------------
4.3.3.1 Call Forwarding Unconditional (CFU)               Y (20)    Y (20)       Y (20)         Y            Y
------------------------------------------------------------------------------------------------------------------------------
4.3.3.2 Call Forwarding on Mobile Subscriber Busy (CFB)     Y        Y (9)         F/R          Y          Y (9)
------------------------------------------------------------------------------------------------------------------------------
4.3.3.3 Call Forwarding on Mobile Not Reachable (CFNRc)     Y        Y (9)         F/R          Y           Y(9)
------------------------------------------------------------------------------------------------------------------------------
4.3.3.4 Call Forwarding on No Reply (CFNRy)                 Y        Y (9)         F/R          Y          Y (9)
------------------------------------------------------------------------------------------------------------------------------
CALL COMPLETION SUPPLEMENTARY SERVICES
------------------------------------------------------------------------------------------------------------------------------
</TABLE>

Version B2                               6                        11 April, 2000

<PAGE>   2356
Proposed Changes to IGFR Version 29 for STAGE 0                       [NEC LOGO]
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------
                                                             CELLULAR ROAMERS TO ICO             ICO ROAMERS TO CELLULAR
                                                          ------------------------------     ---------------------------------
                   SERVICE OR FEATURE                       GSM      IS.41       PDC TO        ICO       ICO TO       ICO TO
                                                          TO ICO    TO ICO         ICO       TO GSM       IS.41        PDC
                                                                                 (OPTION)                            (OPTION)
------------------------------------------------------------------------------------------------------------------------------
<S>                                                       <C>       <C>          <C>         <C>        <C>          <C>
4.3.4.1 Call Waiting (CW)                                   Y          Y           F/R          Y            Y
------------------------------------------------------------------------------------------------------------------------------
4.3.4.2 Call Hold (HOLD)                                    Y        Y (8)         F/R          Y            Y
------------------------------------------------------------------------------------------------------------------------------
NUMBER IDENTIFICATION SUPPLEMENTARY SERVICES
------------------------------------------------------------------------------------------------------------------------------
4.3.2.1 Calling Line Identification Presentation (CLIP)     Y       Y (10)         F/R          Y       Y   (10)
------------------------------------------------------------------------------------------------------------------------------
4.3.2.2 Calling Line Identification Restriction (CLIR)      Y       Y (10)         F/R          Y       Y   (10)
------------------------------------------------------------------------------------------------------------------------------
4.3.2.3 Connected Line Identification Presentation          Y       Y (11)         F/R          NA          NA
(COLP)
------------------------------------------------------------------------------------------------------------------------------
4.3.2.4 Connected Line Identification Restriction (COLR)    Y       Y (11)         F/R          NA          NA
------------------------------------------------------------------------------------------------------------------------------
MULTI-PARTY SUPPLEMENTARY SERVICES
------------------------------------------------------------------------------------------------------------------------------
4.3.5.1 Multi Party Service (MPTY)/IS-41 3 way calling      Y          Y           F/R          Y            Y
------------------------------------------------------------------------------------------------------------------------------
CLOSED USER GROUP SUPPLEMENTARY SERVICES
------------------------------------------------------------------------------------------------------------------------------
4.3.6.1 Closed User Group (CUG)                             Y          N            N           Y           NA
------------------------------------------------------------------------------------------------------------------------------
CHARGING SUPPLEMENTARY SERVICES
------------------------------------------------------------------------------------------------------------------------------
4.3.8.1 Advice of Charge Information (AoCI)               N (12)       N            N         N (12)        NA
------------------------------------------------------------------------------------------------------------------------------
4.3.8.2 Advice of Charge Charging (AoCC)                  N (12)       N            N         N (12)        NA
------------------------------------------------------------------------------------------------------------------------------
CALL RESTRICTION SUPPLEMENTARY SERVICES
------------------------------------------------------------------------------------------------------------------------------
4.3.7.1 Barring of All Outgoing Calls (BAOC)                Y          Y           F/R          Y            Y
------------------------------------------------------------------------------------------------------------------------------
4.3.7.2 Barring of All Incoming Calls (BAIC)                Y       Y (22)         F/R          Y            Y
------------------------------------------------------------------------------------------------------------------------------
4.3.7.3 Barring of Outgoing International Calls (BOIC)    Y (14)    Y (13)         F/R          Y       Y   (13)
------------------------------------------------------------------------------------------------------------------------------
4.3.7.4 Barring of Outgoing International Calls, except   Y (15)    Y (11)         F/R          Y           NA
those directed to the Home Country (BOICexHC)
------------------------------------------------------------------------------------------------------------------------------
4.3.7.5 Barring of Incoming Calls when Roaming Outside    Y (16)    Y (22)         F/R          Y           NA
the  Home Country (BIC-Roam)
------------------------------------------------------------------------------------------------------------------------------
UNSTRUCTURED SUPPLEMENTARY SERVICE DATA (USSD)
------------------------------------------------------------------------------------------------------------------------------
4.3 Unstructured supplementary service data (USSD)          Y       Y (11)         F/R          Y           NA
------------------------------------------------------------------------------------------------------------------------------
ICO SPECIFIC SERVICES
------------------------------------------------------------------------------------------------------------------------------
4.4.1 High Power Notification (HPN)                       N (17)    Y (11)       Y (11)         NA          NA
------------------------------------------------------------------------------------------------------------------------------
4.4.2 ICO Dual numbering                                  N (17)    Y (11)       Y (11)         NA          NA
------------------------------------------------------------------------------------------------------------------------------
4.4.3 Natural language support                            N (17)    Y (23)       Y (23)         NA          NA
------------------------------------------------------------------------------------------------------------------------------
MAIL AND MESSAGING SERVICES
------------------------------------------------------------------------------------------------------------------------------
4.5.6 Mailbox access and retrieval                        Y (18)    Y (18)         F/R        Y (18)    Y   (18)
------------------------------------------------------------------------------------------------------------------------------
4.5.7 Mailbox notification                                Y (19)    Y (19)         F/R        Y (19)    Y   (19)
------------------------------------------------------------------------------------------------------------------------------
ADVANCED SERVICES
------------------------------------------------------------------------------------------------------------------------------
4.6.2.2.1 Virtual Private Networks (VPN)                  Y (17)    N (21)       N (21)         NA          NA
------------------------------------------------------------------------------------------------------------------------------
</TABLE>

Version B2                               7                        11 April, 2000

<PAGE>   2357
Proposed Changes to IGFR Version 29 for STAGE 0                       [NEC LOGO]
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------
                                                              CELLULAR ROAMERS TO ICO             ICO ROAMERS TO CELLULAR
                   SERVICE OR FEATURE                       GSM      IS.41       PDC TO        ICO       ICO TO       ICO TO
                                                          TO ICO    TO ICO         ICO       TO GSM       IS.41        PDC
                                                                                 (OPTION)                            (OPTION)
------------------------------------------------------------------------------------------------------------------------------
<S>                                                       <C>       <C>          <C>         <C>         <C>         <C>
4.6.2.3.1 Advanced call forwarding                        N (17)    N (21)       N (21)         NA          NA
------------------------------------------------------------------------------------------------------------------------------
4.6.2.3.2 Advanced call barring                           N (17)    N (21)       N (21)         NA          NA
------------------------------------------------------------------------------------------------------------------------------
4.6.2.3.3 Originating call screening                      N (17)    N (21)       N (21)         NA          NA
------------------------------------------------------------------------------------------------------------------------------
4.6.2.3.4 Terminating call screening                      N (17)    N (21)       N (21)         NA          NA
------------------------------------------------------------------------------------------------------------------------------
4.6.2.3.5 Location dependent routing                      N (17)    N (21)       N (21)         NA          NA
------------------------------------------------------------------------------------------------------------------------------
4.6.2.3.6 Personal number                                 N (17)    N (21)       N (21)         NA          NA
------------------------------------------------------------------------------------------------------------------------------
4.6.2.3.7 Hot line routing                                N (17)    N (21)       N (21)         NA          NA
------------------------------------------------------------------------------------------------------------------------------
4.6.2.3.8 Caller list                                     N (17)    N (21)       N (21)         NA          NA
------------------------------------------------------------------------------------------------------------------------------
4.6.2.4.1 Pre-paid (debit) service                          NA        NA           NA           NA          NA
------------------------------------------------------------------------------------------------------------------------------
4.6.2.4.2 Private calls                                   N (17)    N (21)       N (21)         NA          NA
------------------------------------------------------------------------------------------------------------------------------
4.6.2.4.3 Split billing                                   N (17)    N (21)       N (21)         NA          NA
------------------------------------------------------------------------------------------------------------------------------
</TABLE>

Version B2                               8                        11 April, 2000

<PAGE>   2358
--------------------------------------------------------------------------------

                                 CHANGE ORDER NO: 25

                                    ATTACHMENT 7

                             SUPPLY AGREEMENT AMENDMENTS

                            AS SUMMARISED IN ATTACHMENT 2
                                    PARAGRAPH 2.1
<PAGE>   2359
Final Version - Change Order No 25

--------------------------------------------------------------------------------
      CONTRACT NUMBER: ICO0 97-1016/GW

                                 MARCH 3RD 1997

                                SUPPLY AGREEMENT

                                     BETWEEN

                                 NEC CORPORATION

                                       AND

                      ICO GLOBAL COMMUNICATIONS HOLDINGS BV
<PAGE>   2360
Final Version - Change Order No 25

TABLE OF CONTENTS

<TABLE>
<CAPTION>
CLAUSE                                                                   PAGE
<S>                                                                      <C>

PART A - INTERPRETATION                                                    5

  1   DEFINITIONS AND INTERPRETATION                                       5
  2   SCOPE OF AGREEMENT                                                   6
  3   PRECEDENCE AND INTERPRETATION                                        6

PART B - PRIMARY OBLIGATIONS                                               6

  4   PRIMARY OBLIGATIONS OF THE CONTRACTOR AND WARRANTIES                 6
  5.  CONTRACTOR TO INFORM ITSELF FULLY                                   10
  6.  STANDARD OF THE WORKS                                               10
  7.  UNIFORM STANDARDS                                                   11
  8   UNILATERAL CHANGES                                                  11
  9   CHANGE CONTROL                                                      12
  10  CHANGES TO THE ICONET GROUND FACILITIES                             14
  11  CONTRACTOR'S ABILITY TO APPOINT AND LIABILITY FOR SUB-CONTRACTORS   15
  12  ICO OBLIGATIONS                                                     16
  13  QUALITY ASSURANCE                                                   17
  14  ICONET INTEGRATION                                                  18

PART C - PRICE AND PAYMENT                                                23

  15  PRICE                                                               23
  16  PAYMENT AND PAYMENT TERMS                                           25
  17  PAYMENT OF REIMBURSABLE COSTS                                       28
  18  LIQUIDATED DAMAGES                                                  29

PART D - PROGRESS REPORTING                                               31

  19  MILESTONES AND PROGRESS REPORTING                                   31
  20  ICO ACCESS TO INFORMATION                                           32
  21  STATIONING OF ICO STAFF AT CONTRACTOR'S FACILITIES                  33
  22  PROGRESS INSPECTION                                                 33
  23  INTERMEDIATE PROGRESS REVIEW                                        33
 [24] NOT USED.                                                           34

PART E - DELIVERY AND INSTALLATION                                        34

  25  SITE ACCESS                                                         34
  26  TRANSPORTATION TO SITE                                              34
  27  PACKAGING                                                           35
  28  CUSTOMS CLEARANCE                                                   35
  29  INSURANCE                                                           37
  30  OWNERSHIP                                                           38
  31  DELIVERY                                                            38
  32  INSTALLATION                                                        38
  33  TESTING                                                             39
  34  RFT HANDOVER                                                        40
  35  ACCEPTANCE                                                          41
  36  RISK                                                                42
  37  INTERCHANGEABILITY                                                  43
  38  DELIVERY DELAYS                                                     43
</TABLE>
<PAGE>   2361
Final Version - Change Order No 25

<TABLE>
<S>                                                                      <C>
 [39] NOT USED.                                                           43
  40  WARRANTY                                                            43

PART F - INTELLECTUAL PROPERTY RIGHTS                                     49

  41  INTELLECTUAL PROPERTY RIGHTS AND CONFIDENTIALITY                    49
 [42] NOT USED.                                                           55
 [43] NOT USED.                                                           55

PART G - CONTINUOUS SUPPORT AND OPTIONS                                   55

  44  MANUALS AND TECHNICAL DIAGRAMS                                      55
  45. TRAINING                                                            55
  46  OPTIONS, SUPPORT SERVICES AND FUTURE SUPPLIES                       55
  47  CONSUMABLE SUPPLIES                                                 58
  48  ATTACHMENTS TO THE EQUIPMENT                                        58
 [49] NOT USED.                                                           58

PART H - GENERAL                                                          58

  50  SURVIVAL OF CERTAIN PROVISIONS                                      58
  51  CONTRACTOR'S LIABILITY FOR DAMAGES OR BREACH                        59
  52  ICO'S LIABILITY FOR DAMAGES OR BREACH                               59
  53  ETHICAL STANDARDS                                                   61
  54  CONSEQUENCES OF TERMINATION                                         61
  55. FORCE MAJEURE                                                       65
  56  TERMINATION                                                         66
  57  WAIVER                                                              68
  58  AMENDMENTS                                                          68
  59  COMMUNICATIONS AND NOTICES                                          68
  60  PUBLICITY                                                           71
  61  INFORMATION RECORDING                                               71
  62  LAW AND JURISDICTION                                                71
  63  CHANGE OF LAW                                                       72
  64  EXPORT CONTROL REGULATION                                           73
  65  DISPUTES RESOLUTION PROCEDURE                                       73
  66  AGENT FOR SERVICE                                                   73
  67  SUPERVISING OFFICER AND CONTRACTOR'S AUTHORISED REPRESENTATIVE      73
  68  NO PARTNERSHIP                                                      73
  69  SUCCESSORS                                                          74
  70  ASSIGNMENT                                                          74
  71  LANGUAGE                                                            74
  72  ENTIRE AGREEMENT                                                    74
  73  SEVERABILITY                                                        74
  74  COSTS                                                               75
  75  COUNTERPARTS                                                        75
</TABLE>
<PAGE>   2362
Final Version - Change Order No 25

SCHEDULES

--------------------------------------------------------------------------------
1            Definitions
2            Precedence of Documents
3            Dispute Resolution Procedure
4            Agreed Form Invoices
5            [Not used]
6            Key Features
7            Top Level Milestones
8            Identification of Sites Not Inspected by the Contractor
9            Pricing Schedule
10           Vendor Financing Summary
11           Payment Schedule
12           Final Acceptance Certificate
13           IGFR
14           Statement of Work
<PAGE>   2363
Final Version - Change Order No 25

THIS SUPPLY AGREEMENT is made on                    1997

BETWEEN

1.    ICO GLOBAL COMMUNICATIONS HOLDINGS BV, incorporated in the Netherlands
      with its registered office at Drentestraat 20, 1083 HK, Amsterdam,
      Netherlands ("ICO"); and

2.    NEC CORPORATION, incorporated in Japan, with its head office at 7-1, Shiba
      5-Chome, Minato-ku, Tokyo 108-8001, Japan (the "Contractor").

WHEREAS

1.    ICO is establishing a global mobile satellite telecommunications network
      and wishes to appoint the Contractor, working with the other members of
      the NEC Team, to provide the systems and services for use in the ICONET
      Ground Facilities which, when operating in conjunction with the other
      properly functioning parts of the ICO System, will support (in the absence
      of the Excluded Circumstances) the full range of end to end services to
      the extent set out in this Agreement.

2.    The Contractor is the leader of a team comprising itself, Hughes Network
      Systems, Inc. and Ericsson Limited which is willing to commit the
      resources required to perform successfully the tasks set out in this
      Agreement and, if so required by ICO and on terms to be agreed between the
      parties, has confirmed its willingness to assist ICO in solving problems
      with elements of the ICO System other than the ICONET Ground Facilities by
      making modifications to the ICONET Ground Facilities so as to enable ICO
      to realise the desired functionality of a fully functioning ICO System.

3.    The Contractor (as leader of the NEC Team) and ICO entered into an Initial
      Phase Contract on 5 July 1996 (the "IPC"). The NEC Team have delivered to
      ICO certain of the materials required under Annex 8 of the IPC.

4.    The parties are entering into this Agreement under which the Contractor
      will be responsible, inter alia, for the design, manufacture,
      construction, delivery, installation, integration and testing of the
      ICONET Ground Facilities together with the demonstration of the
      functioning of the ICO System as a whole, all as set out in this
      Agreement.

5.    This Agreement also contains options for ICO to request the manufacture,
      construction, delivery, installation, integration and testing of
      additional equipment, facilities and software together with such
      additional services as will enable ICO to update, expand and enhance the
      ICONET Ground Facilities, all at additional cost to ICO on a price basis
      which has been established.

6.    ICO Global Communications (Holdings) Limited has agreed by separate letter
      to support the financial obligations of ICO under this Agreement.

NOW IT IS AGREED AS FOLLOWS:

PART A - INTERPRETATION

1.    DEFINITIONS AND INTERPRETATION

1.1 The words and expressions set out in Schedule 1 shall, when used in this
Agreement including its schedules, annexes and attachments, unless the contrary
intention appears, have the meanings set against them in Schedule 1. Any
acronyms which are not defined in Schedule 1 shall have the meaning ascribed to
them in section 2 of the IGFR.

                                       5
<PAGE>   2364
Final Version - Change Order No 25

1.2 Except where the context otherwise requires, the masculine gender shall
include the feminine and neuter and the singular shall include the plural and
vice versa and references to persons shall include bodies corporate and
incorporate. References to a party to this Agreement shall include the permitted
successors and assigns of such party.

1.3 The clause and schedule headings and any table of contents are for
convenience of reference only and shall not be taken into account in construing
this Agreement.

1.4 Subject to clause 3, references in this Agreement to clauses, sub clauses,
schedules and annexes are to clauses, sub clauses, schedules and annexes of this
Agreement and the schedules and annexes form part of this Agreement and shall
have the same force and effect as if expressly set out in the body of this
Agreement.

2.    SCOPE OF AGREEMENT

2.1 Subject to the provisions of Clause 2.2, below, the Contractor's acceptance
of this Agreement shall be confirmation that the NEC Team has reviewed and fully
understands the IGFR and the Statement of Work and the Contractor confirms that
the Works will be undertaken on the basis of this Agreement. The Contractor also
agrees that it is responsible for the definition, management and execution by
the NEC Team of all tasks necessary to fulfil the IGFR.

2.2 The SAN to be located in China (China San) remains a part of the ICONET
Ground Facilities and the Supply Agreement. As at the date of this Change Order,
the Ready For Access date for the China SAN has yet to be confirmed by ICO to
the Contractor and the parties acknowledge and agree, therefore, that all
planning, scheduling and implementation activities and responsibilities of, or
concerning, the China SAN under the Supply Agreement shall be defined and
regulated within the terms of a separate Change Order to be agreed by the
parties. Pending execution of such Change Order all references herein concerning
the timing and schedule of the ICONET Ground Facilities shall be deemed to
exclude the China SAN.

3     PRECEDENCE AND INTERPRETATION

3.1 In the event of any conflict between the main body of this Agreement and any
document referred to herein, then the wording of the main body of this Agreement
shall prevail.

3.2 Clause 3.1 shall not apply to any document relating to the proposed Vendor
Financing referred to in Schedule 10.

3.3 ICO and the Contractor acknowledge the hierarchical nature of the documents
as set out in Schedule 2.

PART B - PRIMARY OBLIGATIONS

4     PRIMARY OBLIGATIONS OF THE CONTRACTOR AND WARRANTIES

4.1   The Contractor warrants and undertakes that:

      (a)   it will, no later than the Acceptance Set 4 Completion Date provide
            to ICO the functionalities described in the IGFR across the complete
            ICONET Ground Facilities; except in respect of those functions as
            described as Function Set 5 in Annex 1 of the Statement of Work
            which shall be provided to ICO no later than the Acceptance Set 5
            Completion Date and the China SAN which is addressed in Clause 2.2

                                       6
<PAGE>   2365
Final Version - Change Order No 25

      (b)   it will design, develop, create, deliver, install and provide (as
            the case may be) all of the Deliverables (including those which have
            at the date of this Agreement been specified by the Contractor)
            necessary for the ICONET Ground Facilities so as to fulfil the
            functional objectives and the requirements of the IGFR and the
            Statement of Work;

      (c)   the Works comprising the ICONET Ground Facilities will be carried
            out and delivered in accordance with and to the standards stipulated
            in the IGFR and the Statement of Work;

      (d)   it will complete the Works which are scheduled to be completed by
            the RFT Availability Dates and date of completion testing of
            Function Set 5 to Acceptance Criteria 5 as set out in Annex 10, on
            or before Acceptance Set 5 Completion Date and those Works which are
            scheduled to be completed after Acceptance Set 5 Completion Date by
            the relevant dates specified in the Master Level Schedule;

      (e)   it will provide all the documentation, services and Deliverables by
            the times specified in the Top Level Milestone Schedule generally,
            and will ensure that the progress of the development, delivery and
            installation of each of the Deliverables will be achieved in
            accordance with the Top Level Milestones set out in the Top Level
            Milestone Schedule and that the requirements set out in the
            Statement of Work will, (except where otherwise agreed) be delivered
            no later than Acceptance Set 5 Completion Date;

      (f)   the ICONET Ground Facilities will fully support the
            requirements of the IGFR and in particular the end-to-end
            services described in Section 4 of the IGFR except where
            marked "Option" or "F/R" (unless such "Option" has been
            exercised or the "F/R" item has subsequently been made a
            Deliverable pursuant to a Change Order, in which event such
            items shall be deemed to have been a service included in the
            IGFR) except where, and to the extent that, the Excluded
            Circumstances prevent the ICONET Ground Facilities from doing
            so in which case the Contractor shall to the maximum extent
            feasible make such modifications to the ICONET Ground
            Facilities as are required fully to support the requirements
            of the IGFR and such end-to-end services in accordance with
            clause 4.10;

      (g)   without prejudice to clause 41, the Deliverables may lawfully be
            used for the purposes of the ICONET Ground Facilities in accordance
            with laws and regulations in force as at the date hereof in each of
            the countries where the Sites are located;

      (h)   any Deliverables which are or shall be specified by the Contractor
            for the purposes of this Agreement may, on the date when the
            obligation to supply first arises or, if later, the date on which
            the Contractor specifies the same, lawfully be used for the purposes
            of the ICONET Ground Facilities in accordance with laws and
            regulations in force as at such date in each of the countries where
            the Sites are located;

            Provided that for the purposes of clause 4.1(h), where any specific
            piece of equipment or component has been or is specified as a
            Deliverable and the same is not available at the time it is
            required, the Contractor shall, having given written notice to the
            Supervising Officer, be permitted to substitute a reasonable
            alternative piece of equipment or component so long as this has no
            adverse effect on the quality or functionality of the relevant
            Deliverable and so long as ICO shall not, within 21 days of receipt
            of the Contractor's notice, have notified the Contractor in writing
            that it objects to the proposed substitution, and ICO undertakes
            that it will not exercise such right of objection unreasonably;

      (i)   the ICONET Ground Facilities shall be designed in such a way as to
            facilitate updates, additional functionalities or enhancements to
            them in the future and that it will, as set out in this Agreement,
            provide or procure the provision of such updates, additional
            functionalities, or enhancements to the ICONET Ground Facilities;

                                       7
<PAGE>   2366
Final Version - Change Order No 25

      (j)   at all times the Contractor and all its Sub-Contractors will provide
            their services in a workmanlike and professional manner and exercise
            reasonable skill and care;

      (k)   it will ensure that all of the Deliverables supplied are suitable
            for the purposes for which they are supplied and for use at the
            intended place of operation and are of a standard satisfactory to
            enable them to fulfil the requirements set out in this Agreement;

      (l)   it will provide, and will ensure that its Sub-Contractors provide, a
            sufficient number of suitably skilled and appropriately experienced
            personnel to meet the objectives of this Agreement and to ensure
            that delivery, installation and testing of the Deliverables at each
            of the Sites is completed by the Acceptance Set 4 Completion Date
            and that equivalent personnel are available for the development,
            testing and support for the installation of Acceptance Set 5. The
            Contractor will, and will ensure that its Sub-Contractors will, use
            its commercial judgement and reasonable efforts to retain personnel
            with the highest levels of expertise and experience in relation to
            the Deliverables and the Works.

      (m)   it will work in a constructive manner with ICO Staff and the Site
            Operators to the extent necessary for the effective performance of
            the Works; and

      (n)   each of the Deliverables and each item of the Equipment, Software or
            other equipment which is or shall be specified for the purposes of
            the ICONET Ground Facilities will be available for use or
            incorporation into the ICONET Ground Facilities by ICO and, with the
            exception of those Deliverables which ICO has committed to purchase
            at the date of this Agreement (including those where the price and
            scope are fixed at the date of this Agreement), that the same will
            be provided by the Contractor at a reasonable cost and on reasonable
            terms

4.2 If the Contractor becomes aware of any internal inconsistencies in or
between the IGFR or the Statement of Work, or any incompleteness or lack of
sufficient detail in the IGFR or the Statement of Work, then the Contractor
shall immediately notify ICO of the same in writing and promptly thereafter
inform ICO of the measures which it proposes to take in order to make the same
consistent, complete or sufficiently detailed and the Contractor undertakes to
procure that any details or means or measures which the Contractor notifies to
ICO under this clause 4.2 will, if agreed to by ICO, not result in any of the
warranties or undertakings in this clause 4 ceasing to be correct or met.

4.3 If ICO does not consider that any matter proposed to it under clause 4.2 is
either satisfactory or appropriate, ICO shall promptly notify the Contractor of
this in writing and the Contractor shall then promptly notify ICO of a
reasonable alternative.

4.4 Any variation to the IGFR or the Statement of Work to which ICO agrees under
the terms of clause 4.2 or 4.3 shall be recorded in accordance with clause 58.

 4.5 The Contractor undertakes that to the best of its knowledge, information
and belief it is not, at the date hereof, aware of anything in the IGFR or the
Statement of Work which is likely to result in any of the Top Level Milestones
not being met or which will affect the likelihood of its ability to satisfy all
of the functionalities of the IGFR or to deliver all of the ICONET Ground
Facilities which in either case the Contractor is agreeing under this Agreement
to fulfil or deliver by the Acceptance Set 5 Completion Date.

4.6 Where the Contractor shall be in breach of any aspect of any of the
warranties and undertakings set out in clauses 4 or 40 or any of its other
obligations relating to the provision of the ICONET Ground Facilities, the
Contractor shall be responsible, at its own cost   *   , for redesigning the
relevant aspect of and making any modifications to the ICONET Ground Facilities
required to remedy any such breach and for procuring the provision of a suitable
alternative to such Deliverables for ICO having

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

                                       8
<PAGE>   2367
Final Version - Change Order No 25

functionality which is no less than that which was specified in the IGFR and/or
the Statement of Work. The Contractor shall carry out such work, and procure
that its Sub-Contractors carry out such work, expeditiously and use its best
endeavours to ensure that the impact of such breach is minimised, especially as
the same affects the time schedule for the implementation of service through the
ICO System.

4.7 The warranties set out in this clause shall be deemed repeated on the first
day of each calendar quarter by reference to such date and the facts and
circumstances then in existence, save that in the case of the warranties
contained in clauses 4.1 (g) and (h), with the addition at the beginning thereof
of a qualification "save as has been notified in accordance with clause 63.3,".

 4.8 If the Contractor or any Sub-Contractor makes a statement or provides ICO
with information, ICO, acting by the Supervising Officer, shall be entitled by a
written notice to the Contractor to require that the Contractor confirms the
accuracy of such statement or information. Such notice shall refer to this
clause 4.8 and, wherever possible, identify where and when the statement was
made and the person who made the statement which ICO wishes the Contractor to
confirm. The Contractor shall, acting by the Contractor's Authorised
Representative, within fourteen days of ICO's notice (or in any case where ICO
shall have identified that confirmation of such statement is a matter of extreme
commercial urgency, by return) either confirm the accuracy of such statement or
information, or where the same is incorrect or inaccurate, shall provide a
qualified, corrected or accurate statement addressing the relevant
subject-matter in sufficient detail to enable ICO to obtain a proper
understanding of the position (any such statement or information so confirmed or
deemed confirmed and any qualified, corrected statement or information being
referred to in this clause 4.8 as a "Representation"). If the Contractor does
not give a substantive reply to ICO's request within the relevant timescale as
set out in this clause, the Contractor shall be deemed to have confirmed such
Representation. The Contractor shall be deemed to warrant the accuracy of each
Representation and ICO shall be entitled to rely for all the purposes of this
Agreement (and in particular for the purposes of determining its course of
action) upon the accuracy of any Representation.

4.9 Without prejudice to any rights which ICO may have as are provided for
pursuant to the terms of this Agreement, the Contractor gives no warranties
other than as are set out in this Agreement, whether, express, implied or
statutory, on or with respect to the goods and services to be provided
hereunder.

4.10 Where, and to the extent that, the Excluded Circumstances prevent the
ICONET Ground Facilities from fully supporting the requirements of the IGFR and
the end-to-end services referred to in clause 4.1(f), the Contractor shall to
the maximum extent feasible make such modifications to the ICONET Ground
Facilities as are required fully to support such requirements and such
end-to-end services on terms to be agreed between the parties.

4.11 ICO shall not be entitled to bring a claim in respect of either any breach
of any of the warranties set out in clause 4.1 nor for any breach of the
undertakings set out in clause 6.1 unless ICO shall have notified the Contractor
thereof in writing within six years following the Acceptance Set 5 Completion
Date, except:

     (a)    where the claim arises from a breach of any of such warranties
            relating to Further Works and/or Further Deliverables, in which
            event such claim may be brought only if ICO shall have notified the
            Contractor thereof in writing within six years following the
            Handover Date of the relevant Deliverable or the date of completion
            of the relevant Works; or

     (b)    where the claim arises as a consequence of any Further Works
            and/or Further Deliverables which adversely affect any of the
            Deliverables delivered or Works completed before the Handover
            Date or date of completion of such Further Works, in which
            event such claim may be brought only if ICO shall have
            notified the Contractor thereof in writing within six years
            following the Handover Date of the relevant Further

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            Deliverable or the date of completion of the Further Works
            which have caused such adverse effect,

provided that in any of the foregoing circumstances, if the event giving rise to
the claim for breach of warranty shall occur less than 12 months prior to the
last day of any such six year period, in respect of that claim only, the period
for notification of the claim shall be extended to end 12 months after the date
of the relevant event.

4.12 Any claim made by ICO for breach of warranty under clause 4 or for breach
of undertaking under clause 6.1 shall be deemed withdrawn, and the breach (if
any) shall be deemed to have been irrevocably waived by ICO, unless proceedings
in respect of such claim shall have been issued and served by ICO on the
Contractor within twelve months of such claim being notified by ICO to the
Contractor.

5.    CONTRACTOR TO INFORM ITSELF FULLY

5.1 The Contractor shall be deemed to have examined all the Sites (other than
those Sites specifically identified in Schedule 8 as not having been examined as
of the date of this Agreement). No claim from the Contractor for additional
payment will be allowed on the grounds of misinterpretation of any matter
relating to those Sites which have been examined, unless ICO shall make any
material change (other than in response to, or as may be made to meet, any of
the requirements of the Contractor) to the relative positioning of the RFTs and
the main hub building located at any such Site from those as shown by the latest
plans of such Sites provided by ICO to the Contractor prior to the date of this
Agreement. This clause 5.1 shall not affect ICO's obligations under clause 12.3.

5.2 ICO and the Contractor acknowledge that as at the date hereof the locations
of certain intended Sites are not yet determined by ICO and that forthwith after
the location of such Sites has been determined by ICO, ICO shall inform the
Contractor of such location(s) and provide equivalent information to that
provided in respect of the other Sites previously specifically identified and
arrange for the Contractor to have the opportunity to examine such Sites. To the
extent that any Site specific conditions or requirements could not reasonably
have been anticipated by the Contractor at any of such Sites, clause 9 shall
apply.

6.    STANDARD OF THE WORKS

6.1 To the extent that the standard of the Works has not been specified in this
Agreement, the Contractor shall use good quality materials, techniques and
standards, and shall procure that the Works are at all times carried out:

            (a) in an efficient, effective and safe manner and in accordance
            with Good Industry Practice;

            (b) in a way which is not likely to be injurious to health or cause
            damage to property;

            (c) in compliance with all relevant construction, environmental or
            other regulations of any kind which relate to the Works to be
            carried out on each Site; and

            (d) without prejudice to paragraph (c) but subject always to the
            provisions of clause 7, so far as relates to any of the
            Deliverables, to a single standard which shall in a uniform manner
            satisfy all of the qualifications and requirements which are
            applicable in each of the countries, and/or any other relevant
            regulatory requirements of any of the countries, in which any of the
            Sites is located unless the compliance with such uniform standard
            would, in any particular country, conflict with the mandatory

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            requirements in such country in which event the latter standard
            shall prevail in that country,

provided that in the event that any new regulation, qualification or requirement
which relates to the Works as described in paragraph (c) or (d) above shall be
issued and come into effect after the date hereof and compliance with such
regulation, qualification or requirement results in an obligation to introduce a
more onerous standard for the relevant Deliverable which as a consequence causes
an increase in the costs of the Contractor, clause 9 shall apply.

6.2 ICO may, notwithstanding the foregoing provisions of this clause 6, advise
the Contractor that ICO does not require the Contractor to produce all or any of
the Deliverables or any aspect of them to any particular standard which may be
called for under clause 6.1(d) in relation to all or any of the Sites. Any such
notification shall not relieve the Contractor from the requirements of clause
4.1.

7.    UNIFORM STANDARDS

7.1 If the Contractor shall reasonably consider that the provisions of clause
6.1(d) shall impose a standard in relation to any particular Site which is
significantly more onerous than that imposed in relation to any other Site and
where compliance with such standard at the other Sites would not offer any
material benefits to ICO, the Contractor may by notice in writing request that
ICO waives compliance with such standard at those Sites at which such standard
is not a mandatory requirement. At the date of this Agreement the only such
instance identified by the Contractor which has been notified to ICO is the
requirement in Germany for certain emission control which it has been agreed may
be satisfied by an additional shielding box around the relevant equipment.

7.2 ICO shall consider any request made by the Contractor as referred to in
clause 7.1 in good faith and may at its discretion waive any particular
requirement in whole or in part and ICO may have regard in particular to the
anticipated consequences for its ability to use Spares of common design or
functionality at any of the Sites if the Deliverables are to be produced to
differing standards.

7.3 If ICO shall in any particular instance waive such a requirement as shall be
referred to in clause 7.1 and subsequently the standards shall change in any
other country to introduce a more onerous standard for the relevant Deliverable
which, as a consequence, causes an increase in the costs of the Contractor, then
to the extent that such revised standard is the same as or no more onerous than
that applicable at the Site referred to in clause 7.1, the Contractor shall not
be entitled to a cost adjustment as referred to in the proviso to clause 6.1.

8.    UNILATERAL CHANGES

8.1 ICO, acting by the Supervising Officer, may unilaterally at any time by
written notice to the Contractor make changes to the IGFR and/or the Statement
of Work in any one or more of the following:

      (a)   method of shipment or packing; and

      (b)   other than in the circumstances referred to in clause 63, the time
            or the place of inspection or delivery of the Deliverables or Works
            to be provided under this Agreement;

provided that ICO shall endeavour to avoid unreasonable or impractical
changes.

8.2 If any such change in clause 8.1 affects the cost of, or the time required
for, performance of any part of this Agreement, an equitable adjustment shall be
agreed to all or any of the Price (including, for the avoidance of doubt, a
reduction in the Price), the Top Level Milestone Schedule,

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the payment terms, the IGFR and/or the Statement of Work (as the case may be).
If necessary, the relevant clause(s) in this Agreement shall also be amended in
accordance with clause 58.

8.3 The Contractor shall notify ICO in writing within thirty days from the date
of ICO's written notification of the required change if it considers that an
equitable adjustment under clause 8.2 should be made.

8.4 Where any materials or services are made obsolete or excess or cannot be
used as a result of a change pursuant to clause 8.1, ICO shall have the right to
prescribe the manner of disposal of such materials or services and the
Contractor shall account to ICO accordingly for any net proceeds realised as a
consequence of the disposal (howsoever achieved) of such materials or services.
If the Contractor is unable to dispose of such materials or services in the
manner prescribed by ICO within a reasonable period (to be determined by
reference to the particular materials or services and the circumstances) in
spite of the Contractor's commercially reasonable efforts, the Contractor shall
be free to dispose of such materials or services using the best method available
with a view to maximising ICO's receipts in respect thereof.

Any such proceeds realised by the Contractor shall be accounted for to ICO in
cash within 30 days of receipt by the Contractor on a separate invoice basis.
Clause 17.5 shall be applicable to any such payment due to ICO. Subject to such
payment being made in accordance with this clause 8.4, no deduction from any
payment due from ICO to the Contractor pursuant to clause 16 shall be made on
account of the same. For the avoidance of doubt, any change under clause 8.1
shall not, except as specified in clause 8.2, affect any obligation of ICO to
the Contractor under clause 15.

8.5 Notwithstanding that ICO and the Contractor may not have agreed upon an
appropriate equitable adjustment under clause 8.2, the Contractor shall
implement the relevant change(s) required by ICO under clause 8.1 without delay.

8.6 For the purpose of this clause 8, any communication between the parties
shall be enforceable and binding upon the parties only if signed by the
Supervising Officer and the Contractor's Authorised Representative.

9.    CHANGE CONTROL

9.1 Either party may at any time formally request in writing changes or
additions to this Agreement, the IGFR or the Statement of Work (in this clause
9, a "change"). The procedures set out in this clause 9 shall apply to any such
change whether it is ICO or the Contractor which shall propose the same. For the
avoidance of doubt, these procedures shall not apply where clause 8 applies.

9.2 If ICO shall propose a change to the scope of this Agreement or the IGFR or
the Statement of Work (other than those set out in clause 8), it shall notify
the Contractor thereof in writing specifying in as much detail as ICO believes
is practicable the nature of the relevant change including any parameters which
ICO considers desirable. Such a notice will only be effective if signed by the
Supervising Officer.

9.3 The Contractor shall respond promptly and in any event not more than 14 days
after receiving notification from ICO under clause 9.2 (or as soon as possible
thereafter if the Contractor shall show a longer period is reasonably required
for such purpose) and state:

      (a)   any information known by any member of the NEC Team or any relevant
            Sub-Contractor relating to the implications of such change and the
            work required to be performed by the NEC Team or any relevant
            Sub-Contractor; and

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      (b)   any other information known by any member of the NEC Team or any
            relevant Sub-Contractor which is likely to be material to ICO's
            decision to pursue such addition or change or which ICO reasonably
            requests for such purposes; and

      (c)   if the Contractor believes this to be appropriate, the estimated
            cost and time required to prepare a Detailed Report as defined in
            clause 9.5.

9.4 If any member of the NEC Team or any relevant Sub-Contractor shall consider
that a change or addition to the IGFR and/or the Statement of Work is in the
interests of ICO and should be considered by ICO, the Contractor shall notify
ICO of such proposal in writing. Such notification shall specify in as much
detail as is practicable the nature of the change or addition that is being
proposed for ICO's consideration and shall state all information known by any
member of the NEC Team or any Sub-Contractor and any information (including but
not limited to the implications of any such change on the work required to be
performed by any member of the NEC Team or any relevant Sub-Contractor) which
ICO might reasonably consider to be material to its decision whether or not to
ask the Contractor to pursue such addition or change.

9.5 Following receipt of information under clauses 9.3 or 9.4, ICO shall within
a reasonable period give notice to the Contractor in writing whether or not it
wishes to consider the matter further. If ICO does not give notice to the
Contractor within 15 days following receipt of the information under clauses 9.3
or 9.4, the Contractor may assume that ICO does not wish to consider the matter
further. If ICO gives notice to the Contractor that it wishes to consider the
matter further, ICO may request additional information whereupon the Contractor
shall provide promptly and in any event within not more than 30 days after the
date of such notice (or as soon as possible thereafter if the Contractor shall
show a longer period is reasonably required for such purpose) a detailed report
to ICO on the technical feasibility of such change or addition to the IGFR
and/or the Statement of Work and all consequential changes and effects for and
upon the ICONET Ground Facilities or the ICO System as a whole (including the
timetable and cost structure) which can reasonably be anticipated to flow
therefrom (the "Detailed Report").

If such Detailed Report is prepared as a result of a request made under clause
9.2, the Contractor shall be entitled to claim and receive a reasonable cost to
be agreed in advance with ICO for the preparation of such Detailed Report.

If such Detailed Report is prepared as a result of a request in response to a
proposal made pursuant to clause 9.4, the Contractor shall as a general
principle not be entitled to claim or receive any costs for the preparation of
the Detailed Report, though ICO recognises that the complexities of the relevant
circumstances may be such that an equitable cost sharing would be appropriate

9.6 The Detailed Report shall contain in addition to the information supplied
under clause 9.5:

      (a)   a full description of the work proposed to be performed;

      (b)   a firm fixed price;

      (c)   a schedule for the implementation of the work including the effect
            (if any) upon the Master Level Schedule; and

      (d)   the required modifications to the IGFR and/or the Statement of Work
            and (if any) to this Agreement in order to effect the change.

9.7 ICO shall consider such Detailed Report referred to in clause 9.5 and shall
promptly and in any event within not more than 15 days after the date of receipt
of such Detailed Report (or as soon as possible thereafter if ICO shall show a
longer period is reasonably required for such purpose) request such further
information from the Contractor as ICO may reasonably require in connection with
the proposals and/or request the Contractor to make modifications to the
proposals contained in such Detailed Report as ICO may reasonably require.

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Final Version - Change Order No 25

The Contractor shall promptly thereafter supply such information to ICO and/or
make such modifications as the Contractor considers appropriate.

If within the 15 days of receipt of the Detailed Report ICO makes no requests in
respect of the Detailed Report the Contractor may assume that the Detailed
Report has been accepted by ICO as presented.

9.8 If ICO considers that the proposed changes should be made, ICO shall so
notify the Contractor in writing no later than 15 days (or such longer period as
the parties may agree in any specific instance) after receipt of the information
under clause 9.3 or 9.4, or if a Detailed Report has been requested, no later
than 15 days (or such longer period as the parties may agree in any specific
instance) after receipt of the Detailed Report and, following agreement by the
parties as to any required changes to this Agreement including any consequential
changes in all or any of the Price (including, for the avoidance of doubt, a
reduction in the Price), the Top Level Milestone Schedule, the payment terms,
the IGFR and/or the Statement of Work (as the case may be), the parties shall
then record such agreement in writing (a "Change Order"). If ICO does not notify
the Contractor within the time periods specified above, then the Contractor may
assume that ICO does not consider that the proposed changes should be made.

9.9 The parties shall endeavour to conclude relevant Change Orders no later than
30 days following agreement, between the parties, as to any required changes
under clause 9.8. The Change Control Board, as specified in Annex 4 ("the
Board"), shall monitor the progress of closure of all Change Orders under this
Agreement. If, following discussion between relevant Board members, the Board
considers a longer time shall reasonably be required to enable the parties to
conclude a specific Change Order, then the Board shall be entitled to prescribe
a longer or additional period for closure.

9.10 For the purpose of this clause 9, any communication between the parties and
any Change Order shall be enforceable and binding upon the parties only if
signed by the Supervising Officer and the Contractor's Authorised
Representative.

9.11 If any time period specified within this clause 9 is not met, the
Contractor's Program Manager and ICO's Supervising Officer shall meet within
five (5) days to rectify the matter. If the matter cannot be rectified in a
mutually satisfactory manner between these two individuals, then either party
may escalate the matter in accordance with the procedure established in Schedule
3 of the Agreement.

10.   CHANGES TO THE ICONET GROUND FACILITIES

10.1 During the term of this Agreement, ICO shall have the right to make changes
or enhancements to ICONET Ground Facilities and at ICO's option, such changes or
enhancements may be made by the Contractor, third parties, or by ICO itself.
After the term of this Agreement, ICO shall have the right to make changes or
enhancement to the ICONET Ground Facilities and, at ICO's option, such changes
or enhancements may be made by third parties or by ICO itself or, subject to
agreement, by the Contractor.

10.2 In order to develop, operate, maintain, and enhance the ICONET Ground
Facilities and/or the ICO System and to develop, operate, maintain, and enhance
any next generation ICONET Ground Facilities and/or ICO System, ICO shall have
the right to use at any time, and to authorise others to use at any time, all
interfaces provided as a part of the Deliverables and Works without any
additional payments to the Contractor or its Sub-Contractors for the use of such
interfaces. Unless ICO advises the Contractor of the nature of ICO's intended
use of any interface provided as a part of the Deliverables and Works, and the
Contractor is able to confirm that there will be no adverse effects upon the
Deliverables or Works, then the use of any such interface shall be at ICO's own
risk.

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Final Version - Change Order No 25

10.3 If requested by ICO, the Contractor will develop and implement changes or
enhancements to the ICONET Ground Facilities. Any such requests by ICO shall be
in accordance with, and shall be governed by, the provisions of clause 9.

10.4 If requested by ICO, the Contractor will develop new, or modify existing,
interfaces to facilitate the introduction of changes or enhancements to the
ICONET Ground Facilities by ICO or ICO designated third parties. The Contractor
shall co-operate with ICO, or ICO designated third parties, in the development
of each new interface or modification to an existing interface. All work
undertaken by the Contractor pursuant to this clause 10.4 shall be on time and
materials basis and terms and conditions shall be mutually agreed on case by
case basis.

10.5 If requested by ICO, the Contractor will provide ICO, and/or ICO designated
third parties, within a reasonable time limit appropriate to the nature of ICO's
request, with any information and materials which are reasonably necessary to
develop, implement, test and maintain changes or enhancements to the ICONET
Ground Facilities and which have been incorporated into the ICONET Ground
Facilities or which were used by the Contractor, or its Sub-Contractors, in the
development, manufacture, testing and maintenance of the ICONET Ground
Facilities. All such information and materials provided by the Contractor to
ICO, or ICO designated third parties, shall be subject to: (i) mutually agreed
and commercially reasonable terms and conditions, and (ii) confidentiality
restrictions, and shall be used only for the purposes of making a change or
enhancement to the ICONET Ground Facilities.

10.6 If requested by ICO, the Contractor will (i) participate in the integration
of any change or enhancement to the ICONET Ground Facilities, and/or (ii) assist
with the testing of any change or enhancement to the ICONET Ground Facilities.
The Contractor shall co-operate with ICO, and/or ICO designated third parties,
to successfully integrate any change or enhancement to the ICONET Ground
Facilities. All work undertaken by the Contractor pursuant to this clause 10.6
shall be on a time and materials basis and terms and conditions shall be
mutually agreed on case by case basis.

11. CONTRACTOR'S ABILITY TO APPOINT AND LIABILITY FOR SUB-CONTRACTORS

11.1 The Contractor will ensure that the Works are carried out in such a manner
as will fulfil the IGFR and the Statement of Work as amended from time to time
in accordance with the terms of this Agreement using the other members of the
NEC Team as the Principal Sub-Contractors to carry out the Works. In accordance
with the terms of this clause, the Contractor and its Sub-Contractors may
sub-contract such elements of the Works as they consider to be appropriate but
the Contractor shall remain fully responsible for the performance of this
Agreement, the preparation and delivery of the Deliverables and the completion
of the Works which are scheduled to be completed by the relevant Top Level
Milestones notwithstanding any default or failure to perform by any
Sub-Contractors.

11.2 Before any Sub-Contractor is appointed (whether directly by the Contractor
or indirectly by any other person who is a sub-contractor) to carry out any part
of the Works (other than the supply of commodity or stock items which does not
involve the disclosure to such Sub-Contractor of Confidential Information of or
relating to ICO or any aspect of the ICO System), the Contractor shall notify
ICO in writing of the name and intended scope of work of each sub-contractor
proposed to be engaged to carry out any Works. ICO may, on reasonable grounds,
reject any proposed sub-contractor (but shall not be required to set out in
detail its reasons for any such rejection) and any such rejection shall not give
the Contractor the right for any claim for delay in the Master Level Schedule.
If ICO does not notify the Contractor of its rejection of a proposed
sub-contractor within 15 days (or such longer period as the parties may agree)
of receipt of the Contractor's notice of intention to engage such proposed
sub-contractor (together with the scope of work referred to above), the proposed
sub-contracting arrangement may, subject to clause 11.3, be entered into.

11.3 Prior to concluding any sub-contracting arrangements as referred to in
clauses 11.1 and 11.2 the Contractor shall, unless ICO otherwise specifically
requires, submit the following:

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Final Version - Change Order No 25

            (a) a detailed statement of the works to be sub-contracted, if this
            should vary materially from that supplied under clause 11.2; and

            (b) satisfactory directly enforceable confidentiality and other
            undertakings between the prospective Sub-Contractor and ICO in a
            reasonable form provided by ICO within 30 days of the date of this
            Agreement.

11.4 If ICO reasonably requests the Contractor to procure the change of any
personnel allocated by the Contractor or any Sub-Contractor to work in
connection with the provision of the Deliverables, then the Contractor shall
ensure that such personnel cease to be actively engaged in any Works.

The Contractor shall ensure that, when on the premises of ICO, any of its agents
or sub-contractors or the Site Operators, the personnel of the Contractor and
its Sub-Contractors comply with any rules and regulations which are applicable
generally to staff or visitors on such premises.

11.5 In performing its obligations under or in connection with this Agreement
(other than as provided in the Statement of Work as at the date of this
Agreement) the Contractor shall, and shall procure that Sub-Contractors shall,
use its/their best endeavours to ensure that it does/they do not:

      (a)   create or impose any requirements in relation to the Works which are
            incapable of being fulfilled at reasonable cost by any third
            parties; and/or

      (b)   develop its/their own components if satisfactory components are
            available from any third parties at a lower cost,

unless such requirements or development can be justified on an objective
basis.

11.6 The Contractor will, and will ensure that the Sub-Contractors will, provide
work space to a standard commensurate with efficient work practices for any ICO
Staff whose attendance at the Contractor's or such Sub-Contractor's places of
work as is needed to advise or test or otherwise participate in the achievement
of the terms of this Agreement.

12.   ICO OBLIGATIONS

12.1 Without prejudice to ICO's other obligations under this Agreement, ICO
shall provide the Contractor with such information, services and equipment as
specified in the Statement of Work. ICO shall also provide to the Contractor
access to SANs and/or NMCs in accordance with Section 4.1.5 of Annex 7B of the
Statement of Work. In the event that ICO shall fail to provide such access, the
procedures and processes described in Section 4.1.6 of Annex 7B shall be
applied. To the extent that ICO's failure in any material respect to, otherwise,
comply with its obligations under this clause 12.1 shall adversely and directly
affect the ability of the Contractor to comply with the Top Level Milestone
Schedule and any applicable Top Level Milestones, to the extent the Contractor
can demonstrate the same to be required, the Top Level Milestone Schedule and
Top Level Milestones shall be adjusted in an equitable manner.

12.2.1. ICO shall be responsible for securing any applicable official operating
licenses or authorisations required by central government authorities relating
to the civil works at the Sites, and for the operation or testing, of the ICONET
Ground Facilities or any part of the ICO System (excluding any equipment
certifications), and ICO shall pay any necessary taxes or licence fees imposed
as a condition for obtaining the same and use its reasonable endeavours to
ensure that the Contractor will not be materially delayed in fulfilling any of
its responsibilities hereunder.

12.2.2. Upon ICO's request the Contractor will use commercially reasonable
efforts to co-operate with, and support ICO, from time to time, in its
regulatory efforts around the world, including assisting with obtaining all
spectrum allocation and operating licences necessary or advisable for the
operation

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of the IGF. The terms and conditions governing all such arrangements shall be
discussed and agreed between the parties on a case by case basis.

12.3. Subject to clause 25.2, ICO shall ensure that such preparations and
provisions are made at each of the Sites to meet the requirements specified in
Annex 3 of the Statement of Work. If such preparations and provisions are
inadequately carried out by ICO, other than by reason of such preparations and
provisions having been inadequately or incorrectly specified by the Contractor,
then any reasonable costs thereby incurred by the Contractor shall be
reimbursable in accordance with clause 17 to the Contractor and, to the extent
that it can demonstrate the same to be required, the Top Level Milestone
Schedule and Top Level Milestones shall be adjusted in an equitable manner. In
any other case the Contractor shall be responsible for carrying out, and for all
costs and expenses incurred in carrying out, any works required to correct
and/or supplement any inadequate or incorrect specifications and the Contractor
shall not be entitled to any adjustment in the Top Level Milestone Schedule.

12.4. In order to assist the Contractor in its Site installation activities ICO
shall, upon the request of the Contractor, provide reasonable assistance to the
Contractor in the co-ordination of the Contractor's activities with those of the
Site Operators and other ICO Staff.

13.   QUALITY ASSURANCE

13.1 The Contractor shall operate a system of quality management and control
which satisfies the requirements set out in Annex 4 of the Statement of Work.

13.2 The Contractor shall satisfy ICO that all relevant manufacturing processes
are controlled and are defined adequately by process specifications and
drawings, work instructions and procedures. Quality controls to be operated by
the Contractor shall include but not be limited to:

      (a)   satisfactory control of sources of supply and materials, piece
            parts and components;

      (b)   conformance to manufacturing specifications, drawings, documented
            procedures and work instructions;

      (c)   adequate documentary evidence including certification of completion
            of state inspection and test routines;

      (d)   investigation of defects and control of corrective action;

      (e)   satisfactory storage, handling and delivery of material; and

      (f)   control and calibration of inspection, measuring and test equipment.

13.3 Subject to applicable legal restrictions in the country of manufacture, ICO
reserves the right at its discretion for ICO Staff to inspect visually all of
the Deliverables and to witness any or all quality assurance tests and
inspection procedures and examine quality assurance records relating thereto at
any of the Sites or any of the locations where the NEC Team or any
Sub-Contractors (excluding any Sub-Contractor who shall not have been required
to enter into a direct undertaking with ICO pursuant to clause 11) carries out
the Works. ICO shall give the Contractor 7 days written notice of its intention
to make any inspection or to witness any quality assurance tests or to examine
any quality assurance records.

13.4 The Contractor shall promptly upon ICO's request make available to ICO at
the relevant place of inspection or at such other locations as may be mutually
agreed all quality assurance records and other pertinent manufacturing data,
including any drawings, inspection and test data, which are

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reasonably necessary to enable ICO to satisfy itself as to the Contractor's
compliance with the quality assurance standards called for under the Statement
of Work.

13.5 Any inspection and/or test and/or examination made or attended by ICO Staff
under this clause shall not relieve the Contractor of its responsibility to
conform to the requirements of this Agreement.

14.   ICONET INTEGRATION

14.1 The Master ICONET Integration Plan Document which is referred to in Annex 9
of the Statement of Work (the "MIIPD") describes the range of ICO System
integration tests and services which the Contractor has granted ICO the option
to request the Contractor to carry out (the "ICONET Integration"). Table 1 of
Annex 9 lists the various campaigns which are more fully described in the MIIPD
(the "ICONET Integration Campaigns") and the associated management that may be
required of the Contractor (the "Associated Management"). Table 1 of Annex 9
also sets out the number of man-months which the Contractor has offered to
provide, all of which may be adjusted in accordance with clause 14.6. The
schedule for the completion of such services is set out in Table 2 of Annex 9
(the "ICONET Integration Schedule"). Annex 9 also establishes the additional
responsibilities associated with the performance of ICONET Integration which the
parties agree to assume if ICO elects to exercise its option.

14.2 ICONET Integration shall be carried out in two phases. The first phase
shall commence in 1998 (the "First Integration Phase") and the second phase
shall commence in 1999 (the "Second Integration Phase"). During the period from
the execution of this Agreement until, in the case of the First Integration
Phase, 15 July 1997 and, in the case of the Second Integration Phase, 30
November 1997, ICO and the Contractor shall consult regarding the detailed
definition of the respective ICONET Integration Campaigns. The Contractor will
provide all reasonable assistance to ICO to enable ICO to make an informed
judgement as to whether or not to exercise the option in accordance with clause
14.3.

14.3 ICO may exercise the option contained in clause 14.1 for the First
Integration Phase by notifying the Contractor in writing by no later than 15
July 1997. ICO may subsequently exercise the option contained in clause 14.1 for
the Second Integration Phase by notifying the Contractor in writing by no later
than 30 November 1997.

14.4 The Contractor shall, within 2 months of the receipt of each of ICO's
notifications pursuant to clause 14.3, submit specific proposals to ICO which
will include:

      (a)   the detailed definition of the ICONET Integration Campaigns which
            ICO has elected to be performed by the Contractor in accordance with
            clause 14.3;

      (b)   the qualifications and numbers of personnel and the resultant
            man-months which the Contractor proposes for each ICONET Integration
            Campaign and, for the purpose of clause 14.16, the minimum number of
            man-months for each ICONET Integration Campaign (which shall never
            exceed 25% of the total proposed man-months for each ICONET
            Integration Campaign);

      (c)   the location(s) at which each ICONET Integration Campaign is
            proposed to be performed and the resultant travel costs;

      (d)   the duration and sequence for the performance and completion of each
            ICONET Integration Campaign together with an amended ICONET
            Integration Schedule;

      (e)   the content and price of the documents specified to be provided by
            the Contractor in accordance with Section 9 of Annex 9 which shall
            constitute the Deliverables for the

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            purpose of this clause 14 but, for the avoidance of doubt, not for
            the purpose of the Acceptance Criteria set out in Annex 10 of this
            Agreement;

      (f)   the special test equipment required for each ICONET Integration
            Campaign identifying those items of special test equipment to be
            provided by ICO which are set out in Table 3 of Annex 9, together
            with the dates by which, and the locations to which ICO supplied
            test equipment is to be provided for each ICONET Integration
            Campaign;

      (g)   the relevant Associated Management man-months required by the
            Contractor for the management of the ICONET Integration Campaigns;
            and

      (h)   the additional resources described in Section 3.8 of Annex 9 (the
            "Additional Resources") and the Contractor's best estimate of its
            price for providing such Additional Resources. The extent and price
            of such Additional Resources will be subject to reduction to the
            extent that ICO elects to provide some or all of such Additional
            Resources.

14.5 The Contractor will, if requested by ICO, amend its proposals submitted
pursuant to clause 14.4 to meet the reasonable requirements of ICO.

14.6 ICO may, after receipt of each of the Contractor's proposals pursuant to
clause 14.4, issue a Change Order to the Contractor. For the First Integration
Phase, ICO may issue such Change Order in a timely manner and in any event no
later than 31 January 1998. For the Second Integration Phase, ICO may issue a
further Change Order in a timely manner and in any event no later than 31 May
1998. Such Change Orders shall specify:

      (a)   the ICONET Integration Campaigns to be undertaken by the
            Contractor;

      (b)   the qualifications and numbers of personnel and the resultant
            man-months for each ICONET Integration Campaign, including for the
            purposes of clause 14.16 the minimum number of man-months for each
            ICONET Integration Campaign to be paid for by ICO;

      (c)   the location(s) at which each ICONET Integration Campaign is to be
            performed and the total resultant travel costs;

      (d)   the duration and sequence for the performance and completion of each
            ICONET Integration Campaign together with the amended ICONET
            Integration Schedule;

      (e)   the content and price of the Deliverables;

      (f)   the special test equipment required for each ICONET Integration
            Campaign which ICO will make available for use by the Contractor;

      (g)   the Associated Management man-months;

      (h)   the Additional Resources (if any), and the times by which and the
            locations at which ICO will provide such Additional Resources to the
            Contractor for each ICONET Integration Campaign at its own cost; and

      (i)   the Additional Resources which the Contractor will provide for each
            ICONET Integration Campaign and the associated cost (if any).

The Contractor shall accept such Change Orders provided that in each case (a),
(b), (d), (e), (f), (g) and (i) are generally consistent with, and do not exceed
the Contractor's proposals pursuant to clause 14.4. In any other event, ICO and
the Contractor shall mutually agree the Change Orders in accordance with clause
9.

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14.7 The ICONET Integration services shall be carried out in accordance with
Annex 9 and any Change Orders agreed in accordance with clause 14.6. Such
services shall constitute the Works for the purposes of this clause 14 but, for
the avoidance of doubt, shall not be Works for the purposes of the Acceptance
Criteria set out in Annex 10 of this Agreement.

14.8 Within 6 months of the date of this Agreement the parties shall agree a
reporting procedure for all Works. Such procedures shall include weekly written
reports by the Contractor concerning the man-months expended, expenses incurred
by the Contractor, and the progress of each ICONET Integration Campaign.

14.9 The Contractor shall, in a timely manner, inform ICO if the Contractor
anticipates that the remaining man-months for an individual ICONET Integration
Campaign will be insufficient to permit the completion of such ICONET
Integration Campaign. ICO may direct the Contractor in writing to reallocate
man-months from other ICONET Integration Campaigns so as to permit the
Contractor to complete such ICONET Integration Campaign. If ICO shall instruct
the Contractor to modify the scope of, or not to complete an ICONET Integration
Campaign, the Contractor shall be responsible for performing such ICONET
Integration Campaign only to the extent so instructed by ICO. If ICO gives no
directions to the Contractor, then the Contractor shall be entitled to cease
carrying out the relevant ICONET Integration Campaign once all the remaining
applicable man-months have been expended. In the event that ICO directs that
man-months are to be reallocated to any ICONET Integration Campaign from other
ICONET Integration Campaign(s), the Contractor shall advise ICO immediately in
writing as to the anticipated effects upon the Contractor's performance and
completion of the remaining ICONET Integration Campaigns. If ICO does not
provide instructions as to how to proceed within 5 days (or such other time as
may be mutually agreed) of being informed by the Contractor of the effect upon
the remaining ICONET Integration Campaigns the Contractor shall be obliged to
expend only the remaining available man-months. The total number of man-months
specified in the Change Orders agreed in accordance with clause 14.6 shall not
be exceeded. If either party wishes to apply further effort beyond the total
number of man-months specified in the Change Order agreed in accordance with
clause 14.6, then the requesting party shall propose a further Change Order for
consideration and agreement by the other party in accordance with clause 9.

14.10 The Contractor will submit invoices to ICO, and ICO shall pay the same in
United States Dollars, subject to clauses 14.11 and 14.12, payable within 30
days after receipt of valid invoices in accordance with clause 17 as follows:

      (a)   man-months - monthly in arrears for the man-months that have been
            expended by the Contractor using the rate specified in Appendix 3 to
            Schedule 9;

      (b)   travel costs - monthly in arrears for the actual travel costs
            incurred by the Contractor (all travel shall be by economy or
            equivalent class);

      (c)   Additional Resources - monthly in arrears for the actual costs
            incurred by the Contractor; and

      (d)   Deliverables -

            (i)   ICONET Integration Requirements (Final) - after approval by
                  ICO, 40% of the price of the Deliverables;

            (ii)  ICONET Integration Plan (Final) - after approval by ICO, 30%
                  of the price of the Deliverables; and

            (iii) ICONET Integration Report (Formal) - after approval by ICO,
                  30% of the price of the Deliverables.

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14.11 All invoices for man-months shall identify the ICONET Integration Campaign
to which they relate the names of the relevant personnel deployed by the
Contractor together with the total time, rate, and the relevant locations where
the ICONET Integration activities were performed. All invoices for travel shall
be accompanied by actual tickets (or copies thereof). All invoices for
Additional Resources provided by the Contractor shall be accompanied by a
summary of the Additional Resources used and total actual amount paid by the
Contractor for such Additional Resources.

14.12 In substantiation of its invoices the Contractor will keep accurate
records of the number of personnel and the man-months which it has devoted to
each of the ICONET Integration Campaigns and Associated Management. Such records
shall be submitted to ICO on a monthly basis for ICO's review. ICO may require
the Contractor to provide additional information if, in ICO's reasonable
opinion, the information provided by the Contractor is incomplete or is
insufficient for the purpose of substantiating the associated invoice. No
invoices for any Works shall be payable by ICO unless such records have been
submitted to ICO in accordance with this clause and the relevant invoice shall
not be due and payable by ICO unless such records have been submitted at least
15 days before the date such invoice is due and payable.

14.13 If the Contractor should exceed the total number of man-months for any or
all of the ICONET Integration Campaigns or the Associated Management, the travel
costs, or the costs for Additional Resources which are specified in the Change
Orders agreed in accordance with clause 14.6 (except as may have been agreed by
ICO in accordance with clause 14.9 or subsequent Change Order(s)), then ICO
shall not be obliged to make any increase in the price payable for the ICONET
Integration.

14.14 In the event that ICO provides the Additional Resources in accordance with
clause 14.6(h) and the Contractor delays or cancels the activities for which
such Additional Resources were provided (unless the delay or cancellation was
the result of an event outside the reasonable control of the Contractor), ICO
shall be entitled to recover any actual costs which result from such delay or
cancellation by the Contractor in accordance with clause 17.

14.15 The Contractor will maintain and update the MIIPD and the ICONET
Integration Schedule. Either party may propose changes to the MIIPD or the
ICONET Integration Schedule. The ICONET Integration Schedule shall be adjusted
to reflect changes to activities or events within the Master Level Schedule
which directly affect the performance or completion of ICONET Integration
activities. All changes to the MIIPD and the ICONET Integration Schedule shall
be subject to the approval of ICO.

14.16 ICO shall be entitled, at any time during the Contractor's performance of
the Works, to direct the Contractor by written notice to cease all or any part
of such Works. The Contractor and all relevant Sub-Contractors shall, within 15
days after the date of the notice (or such later date as may be specified by ICO
in such notice), cease such Works in an orderly manner (or in such manner as may
reasonably be specified by ICO) so as to minimise disruption to any other
integration activities being carried out and so as to preserve the results of
the Works agreed to be performed in accordance with Annex 9 and any Change
Orders pursuant to clause 14.6. The Contractor shall be entitled to:

      (a)   reimbursement of all costs incurred up to the date specified by ICO
            to cease activities provided that such costs do not exceed the
            amount associated with the ICONET Integration Campaign(s) so
            terminated; and

      (b)   if such notice results in the Contractor receiving for each
            ICONET Integration Campaign terminated by such notice less
            than the amount payable for the minimum man-months agreed in
            accordance with the relevant Change Order pursuant to clause
            14.6, then the Contractor will be entitled to claim the
            difference between the actual man-months expended by the
            Contractor and the amount payable for the minimum man-months
            for each such terminated ICONET Integration Campaign.

Other than the sums referred to in (a) and (b) above, the Contractor shall have
no other claims of any nature arising from the termination by ICO of such
activities. For the avoidance of doubt, all amounts

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payable by ICO in accordance with this clause 14.16 (except for any difference
between the actual man-months expended by the Contractor and the minimum
man-months agreed in accordance with the relevant Change Order pursuant to
clause 14.6) shall be substantiated by such evidence as is to be provided for
monthly invoices in accordance with clause 14.12.

14.17 If any invoice submitted to ICO pursuant to clause 14.10 shall be overdue
for payment by ICO for 60 days or more, unless ICO has disputed such invoice on
reasonable grounds and has notified the Contractor in writing of such dispute,
the Contractor shall be entitled to stop performing all or any of the Works.

14.18 The Contractor will co-operate with ICO Staff in the performance of ICONET
Integration activities pursuant to this clause 14 or any additional integration
activities which ICO may choose to carry out. In respect of such additional
integration activities, co-operation includes (i) assisting ICO Staff to develop
a mutually agreeable System Engineering, Integration and Test (SEIT) plan, and
(ii) supporting ICO through the provision of manpower, test facilities,
information and documentation that may reasonably be required by ICO, for the
integration and test of the ICO System. The terms and conditions for such
co-operation and/or support shall be agreed between the parties on case by case
basis.

14.19 For the avoidance of doubt, ICO shall not be responsible, for the purposes
of this clause 14, for the importation by the Contractor or any Sub-Contractor
of any installation and test tools, equipment, materials or other effects
(including personal) in connection with this clause 14.

14.20 The following clauses of this Agreement shall not apply to the Works
provided in accordance with this clause 14 and Annex 9 of the Statement of Work:
4.1 (a) to (f) inclusive; 4.1 (h), (i) and (n); 4.2 to 4.5 inclusive, 4.7, 4.10,
5, 6.1 (d), 6.2, 7, 8, 11.5, 12.3, 13.2 to 13.5 inclusive, 15, 16.2 to 16.17
inclusive, 18, 19, 22, 25 to 40 inclusive, 44 to 50 inclusive, 54, 55.4 and 56.

14.21 For the purposes of this clause 14, the following clauses of this
Agreement are amended as follows;

      (a)   clause 4.1 (l): "it will provide, and will ensure that its
            Sub-Contractors provide, suitably skilled and appropriately
            experienced personnel required to fulfil the objectives of Annex 9
            of the Statement of Work agreed in accordance with the relevant
            Change Order pursuant to clause 14.6 and clause 14";

      (b)   clause 4.6: "Where the Contractor shall be in breach of any aspect
            of its warranties and undertakings set out in clause 4 relating to
            ICONET Integration, except for those parts of clause 4 specifically
            excluded in clause 14.20 or as amended by clause 14.21, the
            Contractor shall be responsible, at its own cost, for rectifying the
            consequences of any such breach"; and

      (c)   clause 11.1: "The Contractor will ensure that the Works are
            carried out in such a manner as will fulfil Annex 9 of the
            Statement of Work as amended from time to time in accordance
            with the terms of this Agreement, using the other members of
            the NEC Team as the Principal Sub-Contractors to carry out the
            Works.  In accordance with the terms of this clause, the
            Contractor may sub-contract such elements of the Works as they
            consider to be appropriate but the Contractor shall remain
            fully responsible for the performance of the Works, the
            preparation and delivery of the Deliverables and the
            completion of the Works which are scheduled to be completed in
            accordance with the ICONET Integration Schedule
            notwithstanding any default or failure to perform by any
            Sub-Contractors."

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PART C - PRICE AND PAYMENT

15    PRICE

15.1 ICO shall pay an aggregate total price of US$759,741,625 - for the complete
performance by the Contractor of all of its obligations under this Agreement
together with a further sum of US$21,537,600 - (in respect of freight and
insurance as referred to in the Pricing Schedule), which amounts shall be
subject to adjustment only in respect of (i) changes agreed under clause 9 and
(ii) the cost of any Option items upon exercise of the relevant Option or other
items or services purchased under clause 46; (such aggregate amount, as so
adjusted, being referred to as the "Price"). Any Instalment payment made shall
discharge the relevant portion of the Price and shall not be reclaimable by ICO
but without prejudice to ICO's right to claim damages and/or indemnity in
accordance with the provisions of this Agreement in the event of any breach by
the Contractor.

15.1.1 In addition to ICO's obligations to pay to the Contractor such sums as
       are described in clause 15.1 above, ICO shall also pay to the Contractor
       such further payments ("Other Payments") as the parties agree, from time
       to time, shall be payable pursuant to those Non-clause 15.1 Change Orders
       whose respective total values shall not be treated as, nor constitute an
       accretion to, nor form part of the Price, as defined within clause 15.1.

15.2 The Price shall be payable in Instalments as set out in the Payment
Schedule, but the obligation of ICO to pay any Cash Invoice (other than any Cash
Invoices relating to the initial Instalment) shall be subject to clauses 15.3
and 16.

15.2.1 Other Payments shall be payable in accordance with the terms of the
       relevant Non-clause 15.1 Change Order referred to in clause 15.1.1, above

15.3 If the Contractor fails to achieve a Top Level Milestone by or within the
period of 21 days commencing on the Milestone Date, then ICO may defer payment
of any Cash Invoice which shall as a consequence become a Deferred Cash Invoice.

ICO must notify the Contractor if it considers on any reasonable grounds that
any Top Level Milestone has not been achieved by the relevant Milestone Date
and, having done so, shall, subject to the provisions of this clause 15.3 and in
particular to the Contractor's entitlement to contest ICO's entitlement to
impose the deferral, be entitled to treat all Cash Invoices which would, but for
this clause 15.3, have a Relevant Payment Date more than 21 days after the
relevant Milestone Date as Deferred Cash Invoices under this clause 15.3. Until
the relevant Top Level Milestone shall have been achieved, Cash Invoices shall
continue to be issued by the Contractor, but shall automatically become Deferred
Cash Invoices and shall not be payable so long as they remain Deferred Cash
Invoices.

The Contractor must notify ICO by facsimile within 10 days of receiving such
notification from ICO of whether it disputes ICO's entitlement to impose the
deferral. If the Contractor does not so notify ICO, then it shall be deemed to
accept that the deferral is being properly imposed by ICO in accordance with the
terms of this Agreement and the due date for payment of each of the Deferred
Cash Invoices shall be 21 days following the date upon which the deferral ends
(or, if later, the date 30 days after the receipt of the relevant Deferred Cash
Invoice).

If the Contractor notifies ICO that the imposition of the deferral is disputed
by the Contractor on reasonable grounds, then ICO shall upon the day falling 30
days after the date of receipt of each Cash Invoice being treated by ICO as a
Deferred Cash Invoice pay the amount of the same into the Escrow Account. The
due date for payment of each such invoice shall (if there is a Determination
that the deferral was properly imposed in accordance with the terms of this
Agreement) be 21 days following the date upon which the deferral ends (or, if
later, the date 30 days after the receipt of the invoice) or (if there is a
Determination that the deferral was not properly imposed in accordance with the
terms of this

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Agreement) the original Relevant Payment Date for such invoice (and ICO shall
have an obligation to pay interest to the Contractor pursuant to clause 16.10
accordingly).

Any deferral pursuant to this clause 15.3 shall end as soon as the relevant Top
Level Milestone shall have been achieved and any Deferred Cash Invoices shall
thereupon cease to be Deferred Cash Invoices.

15.4 For the avoidance of doubt, all references in this clause 15 to a Milestone
Date shall refer to the adjusted timing of such Milestone Date as Determined
pursuant to any of the provisions in this Agreement which require or permit an
alteration to the timing of achievement of Top Level Milestones.

15.5 For the avoidance of doubt, the Price is fixed, including, without
limitation the following:

      (a)   all place of origin taxes; except that if the place of origin is in
            the same country as the Site at which the relevant Deliverable is to
            be installed or the relevant service forming part of the Works is to
            be supplied, then the Net Cost shall be calculated and the
            Additional Amount shall be added the price as set out below. The
            "Net Cost" means:

                  (i)   the part of the Price attributable to such Deliverable
                        or service; less

                 (ii)   in the amount of any export duties that the Contractor
                        would have incurred on the export from the place of
                        origin of such Deliverable or service if it had been
                        exported.

                 The "Additional Amount" means:

                 (i)    the amount of any Value Added Tax or other similar tax
                        which would have been imposed by the laws of that
                        country on a supply of that Deliverable or service to
                        ICO for a price equal (on a tax exclusive basis) to the
                        Net Cost less

                 (ii)   the amount (if any) of such export duties taken into
                        account in determining the Net Cost.

      (b)   any charges relating to export licences, certificates of origin,
            export document preparation, and export packaging;

      (c)   insurance (including transit through to Sites, storage on Site,
            installation and testing);

      (d)   shipping and transportation costs;

      (e)   employee and employee-related costs of the Contractor and
            Sub-Contractors;

      (f)   all necessary licences, fees or other charges necessary for the
            performance of the Works except:

                 (i)    licences (and their associated costs) that the Site
                        Operator requires for its operation of the ICONET Ground
                        Facilities; and

                 (ii)   any local and/or central or other governmental approvals
                        and permits for any civil work,

            (which licences, approvals and permits referred to in
            paragraphs (i) and (ii) above shall be at the cost of  ICO);

      (g)   all taxes on the goods originally sold or provided by the
            Contractor to ICO under this Agreement (except import duty and
            customs duties, including Value Added Tax or any

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<PAGE>   2383
Final Version - Change Order No 25

            similar sales tax (which excluded taxes shall be paid in accordance
            with clause 28) and all Value Added Tax and any similar sales tax on
            services which are not recoverable by the Contractor or any
            Sub-Contractor or any of their respective affiliates) incurred by
            the Contractor and Sub-Contractors and their employees associated
            with performing any part of the Works in the country where the
            relevant Deliverables are to be installed or where the services are
            to be provided; and

      (h)   any penalties or fines incurred by the Contractor and
            Sub-Contractors or their employees.

16    PAYMENT AND PAYMENT TERMS

16.1 The payment by ICO of any moneys to the Contractor in respect of this
Agreement shall not be deemed to be acceptance by ICO of any Works or
Deliverables in respect of which such moneys are paid.

16.2 The Contractor shall submit a Cash Invoice (and a copy invoice) to ICO for
the Cash Portion of each Instalment of the Price payable in accordance with the
Payment Schedule or clause 14 as appropriate. Each Cash Invoice shall be
accompanied by appropriate supporting paperwork. In any case where the
Instalment becomes due on shipment of any Equipment, this paperwork shall
include a copy of the bill of lading (or other equivalent document).

16.3 All of the Contractor's Cash Invoices, other than any Deferred Cash
Invoices during the period of the relevant deferral pursuant to clause 15.3,
shall, provided that the same shall be in accordance with the requirements of
this Agreement, be due and payable in United States Dollars by ICO within 30
days of the date of receipt by ICO of the Cash Invoice (the "Relevant Payment
Date").

16.4 Any invoices which are to be submitted to ICO pursuant to this Agreement
shall be addressed to ICO Global Communications Holdings BV, Drentestraat 20,
1083 HK, Amsterdam, Netherlands with a copy to ICO Services Limited, 2 Chalkhill
Road, Hammersmith, London W6 8DW, England.

16.5 In the event that ICO disputes its liability to pay the whole or any part
of a Cash Invoice or a Deferred Cash Invoice, ICO will advise the Contractor of
its dispute and (in reasonable detail) the grounds therefor (including the
Instalment(s) to which the dispute relates and the Disputed Percentages of it or
them) by no later than nine days before the Relevant Payment Date (or, the date
which would, if the invoice were not a Deferred Cash Invoice, have been its
Relevant Payment Date). For the avoidance of doubt, in the case of a dispute
relating to an invoice only the Disputed Percentage of the Cash Portion shall be
treated as disputed in relation to the relevant Cash Invoice or Deferred Cash
Invoice.

For the avoidance of doubt ICO shall by the Relevant Payment Date pay to the
Contractor those portions of any Cash Invoice which shall not be the subject of
a deferral pursuant to clause 15.3 and which are not in dispute and the parties
shall use reasonable efforts to resolve any dispute concerning the Disputed
Percentage of any Instalment.

16.6. This clause 16.6 applies if at any time:

            (a)   ICO disputes its liability to pay an amount invoiced in
                  good faith by the Contractor in a Cash Invoice which
                  appears on its face to have been calculated and to be
                  payable in accordance with the Payment Schedule or
                  clause 14, including without limitation any Cash Invoice
                  which ICO claims that it has the right to defer pursuant
                  to clause 15.3 unless the Contractor accepts that claim;
                  and

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            (b)   that would result in the aggregate of all amounts so
                  invoiced which are then in dispute (each a "Disputed
                  Amount" and collectively "the Disputed Amounts", which
                  expression shall for the avoidance of doubt in relation
                  to any Instalment include only the Disputed Percentage
                  of the Cash Portion and not the Disputed Percentage of
                  the Financed Portion, if any) equalling or exceeding any
                  Escrow Trigger Amount(s).  If it would equal or exceed
                  more than one Escrow Trigger Amount, then the higher or
                  highest shall be the relevant one.

For the avoidance of doubt, any Cash Invoice issued by the Contractor being for
an amount not invoiced in good faith or which does not appear on its face to
have been calculated and to be payable in accordance with the Payment Schedule
or clause 14, as appropriate, shall not be payable by ICO unless and until ICO
agrees that the same shall have been properly issued and the requirement to pay
a Disputed Amount into the Escrow Account shall not apply in relation thereto.

If this clause 16.6 applies, then ICO shall (on the Relevant Payment Date for
the Cash Invoice or, in the case of a Deferred Cash Invoice, the due date for
payment of it) pay into the Escrow Account an amount sufficient to ensure that
the balance on the Escrow Account relating to Disputed Amounts under this Clause
16 (after deduction of any amounts which either ICO or the Contractor is then
entitled to have paid to it pursuant to clause 16.7) equals or exceeds the
relevant Escrow Trigger Amount.

16.7 The parties shall in the Escrow Agreement jointly instruct the Escrow Agent
to hold the balance on the Escrow Account in accordance with the relevant
provisions of this Agreement.

If there is a Determination, that any Disputed Amount or any part thereof is
payable to the Contractor (either because any deferral under clause 15.3 was not
in accordance with the terms of this Agreement, the dispute was otherwise
ill-founded, relevant outstanding Works giving rise to a disputed deferral have
been completed as referred to in clause 15.3 or the cause of the dispute has
been remedied), then ICO shall join within 5 days of the date of the
Determination with the Contractor in instructing the Escrow Agent to make a
payment out of the Escrow Account to the Contractor of any amount held in the
Escrow Account in respect of that Disputed Amount (or the appropriate part
thereof), together with any interest earned on that amount. This payment shall
be applied in or towards satisfaction of any liability of ICO in respect of the
relevant Disputed Amount (and interest accrued pursuant to clause 16.10 upon it)
pursuant to clause 16.8 or, as the case may be, clause 16.9.

If there is a Determination that any Disputed Amount or any part thereof is not
payable by ICO to the Contractor or that ICO was entitled to make a deferral
pursuant to clause 15.3 which the Contractor has challenged, then the Contractor
shall join within 5 days of the date of the Determination with ICO in
instructing the Escrow Agent to make a payment out of the Escrow Account to ICO
of any amount held in the Escrow Account in respect of that Disputed Amount (or
the appropriate part thereof) or, as the case may be, that deferral, together in
either case with any interest earned on that amount in the Escrow Account.

16.8 If there is a Determination that any dispute raised by ICO against all or
part of an invoice was ill-founded or that a deferral pursuant to clause 15.3
was not in accordance with the terms of this Agreement, then ICO shall within 9
days of the date of the Determination pay to the Contractor any balance of the
Disputed Amount found by the Determination to be payable to the Contractor
together with interest thereon calculated in accordance with clause 16.10, after
taking account of any payment to be made to the Contractor out of the Escrow
Account pursuant to clause 16.7 as a result of that Determination and the
Relevant Payment Date of the Disputed Amount in this case shall be the date 30
days after the date of ICO's receipt of the original Cash Invoice.

16.9 If there is a Determination that payment be made to the Contractor for any
reason other than as is referred to in clause 16.8, then ICO shall within 9 days
of the date of the Determination pay to the Contractor any balance of the
Disputed Amount found by the Determination to be payable to the Contractor
together with interest thereon calculated in accordance with clause 16.10, after
taking

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account of any payment to be made to the Contractor out of the Escrow Account
pursuant to clause 16.7 as a result of that Determination. Interest shall run
pursuant to clause 16.10 as if the Relevant Payment Date were the date of the
Determination. A payment by ICO pursuant to this clause 16.9 shall not prevent
the Contractor from continuing to seek a Determination as referred to in clause
16.8 that the dispute was ill-founded or that the deferral was not properly
imposed under clause 15.3 (which Determination would entitle it to the payment
of interest pursuant to clause 16.10 from the original Relevant Payment Date).

16.10 Any sums not paid by one party when due shall bear interest from the
Relevant Payment Date, or if different or if there is no Relevant Payment Date
the due date for payment, until the other party receives payment (whether before
or after judgement) at the Agreed Rate. Such interest shall accrue from day to
day on the basis of a 360 day year and shall be payable with the sum to which it
relates and, if that sum is overdue, on demand.

16.11 All payments to be made under this Agreement to the Contractor shall be
made:

      (a)   for value on the Relevant Payment Date (or such other date as may
            apply pursuant to this Agreement) from ICO to such account at such
            bank in Tokyo as the Contractor may specify from time to time; and

      (b)   in full without any set-off, withholding, deduction or counterclaim
            of any kind, but for the avoidance of doubt, this is without
            prejudice to clause 16.12.

16.12 If at any time ICO considers that the Contractor is in default of its
obligations under this Agreement and as a result an amount is due to be paid by
the Contractor to ICO, then if the amount involved exceeds $1 million and if ICO
has given the Contractor no less than 9 days' notice of its intention to do so,
ICO may deduct the amount claimed from any payment that it is making to the
Contractor of any one or more Cash Invoice(s) then or subsequently falling due
for payment and instead pay the whole of that amount into the Escrow Account.

If there is a Determination that all or part of the amount claimed by ICO, in
respect of which the payment into the Escrow Account was made, was due to ICO by
the Contractor, then the Contractor shall within 5 days of the Determination
join with ICO in instructing the Escrow Agent to pay out of the Escrow Account
to ICO the amount so due, together with interest earned on that amount in the
Escrow Account; and upon the Contractor joining in that instruction the
liability which led to the payment into the Escrow Account being made by ICO
shall be discharged in an amount equal to the amount in respect of which that
instruction is given, whether or not the Escrow Agent actually makes the
payment.

If there is a Determination that all or part of the amount claimed by ICO and
paid into the Escrow Account was not due to ICO, then ICO shall within 5 days of
the Determination join with the Contractor in instructing the Escrow Agent to
pay out of the Escrow Account the amount which was not so due, together with
interest earned on that amount in the Escrow Account and ICO shall pay to the
Contractor an additional amount such that the Contractor receives in total the
amount which it should have been paid on the Relevant Payment Date for the Cash
Invoice(s) against which ICO made such deductions when paying monies into the
Escrow Account together with interest on such amount at the Agreed Rate from the
Relevant Payment Date up to the date of actual payment.

16.13 The parties have agreed in principle, subject to contract, that part of
the aggregate total price payable under this Agreement (excluding any adjustment
to such price whether referred to in clause 15.1 or not) shall be financed by
the Contractor. A summary of the terms and conditions reflecting this in
principle agreement ("the Vendor Financing Summary") is set out as Schedule 10.

Clause 16.14 shall apply if, but only if, and from the time that the parties
enter into a legally binding agreement ("the Vendor Financing Agreement")
reflecting (with such amendments as may be agreed) that Vendor Financing
Summary. The parties agree to negotiate in good faith the terms and

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Final Version - Change Order No 25

conditions of the Vendor Financing Agreement with a view to completing the
anticipated vendor financing within the spirit of the Vendor Financing Summary
by the end of 1997.

16.14 Each Financed Invoice issued by the Contractor shall relate to the
Financed Portion of one or more Instalments in respect of which a Cash Invoice
has been issued. The Contractor shall not issue a Financed Invoice in respect of
an Instalment where ICO shall, in relation to the corresponding Cash Invoice,
have disputed its liability to pay 100% of the relevant Instalment until
Determination of such dispute. The Contractor shall not include in any Financed
Invoice any Disputed Percentage of the Financed Portion of an Instalment until,
and then only to the extent that there is a Determination that the relevant
amount of the Instalment was due.

ICO shall only be entitled to challenge the amount of a Financed Invoice or the
Contractor's entitlement to issue it on the ground that it is not issued in good
faith, it is inconsistent with a Cash Invoice which relates to one or more of
the same Instalments or that it appears on its face to be inconsistent with the
Payment Schedule. A Financed Invoice shall fall due for payment at the time
stated in, shall bear interest which shall be payable in accordance with and
shall otherwise be subject to the Vendor Financing Agreement.

Clauses 15.2 and 15.3 shall not apply to the Financed Portion of any Instalment
with the intention that the Financed Invoices to be issued at the end of each
quarter pursuant to the Vendor Financing Agreement shall include the Financed
Portion of any Instalment in respect of which a Cash Invoice would, but for
clauses 15.2 and 15.3, have been issued in that quarter.

The first two sentences of clause 16.2 and clause 16.4 shall apply to Financed
Invoices as if they were Cash Invoices except to the extent specifically
referred to in this clause 16.14. The other provisions of clauses 16.1 to 16.12
inclusive shall not apply to Financed Invoices (although the Vendor Financing
Agreement may include analogous provisions). For the avoidance of doubt, nothing
in this Agreement shall result in a Financed Invoice which is payable in
accordance with the terms of the Vendor Financing Agreement not being payable.

16.15 The Vendor Financing Summary provides for ICO to pay a
management/commitment fee to the Contractor in respect of the proposed vendor
financing, such fee to be payable in two instalments, the second one together
with interest. ICO confirms that the obligations as to payment of that fee are
legally binding on it, notwithstanding that the Vendor Financing Summary is
expressed to be subject to contract.

16.16 The parties shall immediately upon the choice of the Escrow Agent and the
settlement of the terms of the Escrow Agreement enter into the Escrow Agreement
with the Escrow Agent. Neither party shall upon or after joining in an
instruction to the Escrow Agent to make a payment to the other party out of the
Escrow Account take any action directly or indirectly to prevent payment being
made to the recipient party pursuant to such instructions.

16.17 To the extent that any payment made by ICO out of the Escrow Account is
made because there has been a Determination that ICO was correct in disputing a
Cash Invoice in whole or in part or was entitled to impose a deferral pursuant
to clause 15.3, then such payment shall not be deemed for any purpose to be a
payment made by the Contractor to ICO.

16.18 For the avoidance of doubt, the provisions of clauses 15.2, 15.3 and 16
shall apply in relation to payments due under clause 14.

17    PAYMENT OF REIMBURSABLE COSTS

17.1 The Contractor shall submit (substantially in the relevant approved form
set out in Schedule 4 and containing the same information) monthly invoices for
costs which are agreed to be reimbursable by ICO to the Contractor under this
Agreement. Such invoices shall have attached the original

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Final Version - Change Order No 25

documents (or copies of the documents certified by the Contractor) evidencing
the amounts claimed by the Contractor for reimbursement.

17.2 Amounts claimed by the Contractor for reimbursement pursuant to this clause
17 shall be net of any amounts (including, for the avoidance of doubt,
offsetable amounts such as VAT or other sales taxes) which the Contractor or any
of its Sub-Contractors have the right to reclaim from parties other than ICO,
whether or not such claim has been made or received provided that if, subject to
the Contractor or its Sub-Contractors following its or their usual collection
procedures, any amount reclaimed by the Contractor or its Sub-Contractors which
has not been received from such third party within 90 days of the date of the
Contractor's invoice to ICO in which the right to such reclaim was taken into
account, the Contractor shall be entitled to include such reclaimed amount in
its next monthly invoice to ICO. If subsequently the Contractor or any of its
Sub-Contractors receive such reclaim from the third party, the Contractor shall
account to ICO for any sums so recovered without delay.

17.3 ICO shall submit invoices for costs which are agreed to be reimbursable by
the Contractor. Such invoices shall have attached the original documents (or
copy documents certified by ICO) evidencing the amounts claimed by ICO for
reimbursement.

17.4 Amounts claimed by ICO for reimbursement pursuant to this clause 17 shall
be net of any amounts (including, for the avoidance of doubt, offsetable amounts
such as VAT or other sales taxes) which ICO has the right to reclaim from
parties other than the Contractor, whether or not such claim has been made or
received provided that if, subject to ICO following its usual collection
procedures, any amount reclaimed by ICO has not been received from such third
party within 90 days of the date of ICO's invoice to the Contractor in which the
right to such reclaim was taken into account, ICO shall be entitled to invoice
the Contractor for such reclaimed amount. If subsequently ICO receives such
reclaim from the third party, it shall account to the Contractor for any sums so
recovered without delay.

17.5  The provisions of clauses 16.3 to 16.11 inclusive and 16.17 shall apply to
      this clause 17 mutatis mutandis, and for the avoidance of doubt for these
      purposes payments by the Contractor to ICO shall be treated in the same
      way as payments by ICO to the Contractor.

18.   LIQUIDATED DAMAGES

18.1  The Contractor shall be liable to pay, upon ICO's demand in writing, to
      ICO (without deduction or withholding) liquidated damages in the event;

      (a)   that the Contractor shall fail to hand over any SAN(s) or NMC(s), to
            ICO, by any scheduled Handover Date (which date, for the purpose of
            this clause, shall mean any extension or adjustment to any such
            Handover Date as agreed by the parties); or

      (b)   that the Contractor shall fail to achieve Acceptance Set 5
            Completion by the scheduled date (which date, for the purpose of
            this clause, shall mean any extension or adjustment to such date as
            agreed by the parties);or

      (c)   that the Contractor shall fail to achieve Acceptance Set 1, 2, 3 or
            4 Completion by the scheduled dates (which date, for the purpose of
            this clause, shall mean any extension or adjustment to any such date
            as agreed by the parties.).

18.2  In case of 18.1 (a) and (b) above, liquidated damages shall be calculated
      in accordance with the formulae and conditions set out in clause 18.4
      below and shall, in relation to Acceptance Sets 1 to 4 Completion, never
      exceed a sum equivalent to   *   of the amount of the SAN(s)or NMC(s) to
      be handed over by the Contractor to ICO and shall, in relation to
      Acceptance Set 5 Completion, never exceed   *   of (A-B).

      * Confidential Treatment Requested and the Redacted Material has been
        separately filed with the Commission.

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Final Version - Change Order No 25

18.3  In case of 18.1(c) above, liquidated damages shall be calculated in
      accordance with the formulae and conditions set out in clause 18.5 below
      and shall, never exceed a sum equivalent to   *   of the amount of the
      Engineering portion payable on each Acceptance Set 1,2,3 or 4 Completion
      date respectively as set forth in Appendix 1 to Schedule 11.

18.4  Liquidated damages payable by the Contractor to ICO pursuant to Clause
      18.1(a) and (b) shall be calculated in accordance with the following
      formula.

      (i)   The Price per SAN/NMC shall be calculated as follows;

          *

      (ii)  The price in respect of each AS1-4 ("n") shall be calculated as
            follows with 'n' representing the number of SANs or NMCs in each
            function set;

          *

      (iii) The liquidated damages for each Handover in relation to AS 1-4 shall
            be calculated as follows;

          *

      (iv) The liquidated damages for AS 5 Completion shall be calculated as
           follows:

          *

         A: shall mean the Price set out in clause 15.1 of the Supply Agreement.

         B: shall mean that portion of the Price referable to the Equipment
            Portion and Engineering Portion (except for NRE and Program
            Management) applicable for SAN for China as specified in Schedule 11
            of the Supply Agreement.

         C: shall mean the Price per SAN/NMC for the purpose of calculating
            liquidated damages.

         D: shall mean the number of days immediately following the date 15 days
            after the scheduled Handover Date or the Acceptance Set 5 Completion
            Date as the case may be, except in the case of Acceptance Set 4
            which shall be 30 days after this scheduled Handover date, as set
            out in the Master Level Schedule in Annex 4 Schedule 14 (or any
            extension or adjustment to any such Handover Date or Acceptance Set
            5 Completion Date in accordance with Clause 9 of this Agreement) and
            the actual Handover Date or actual date of Acceptance Set 5
            Completion as the case may be.

         E: shall mean the total amount of the Engineering Portion
            associated with the Phased SAN Handover as set out in Appendix
            4 to Schedule 9 of this Agreement.

         G: shall mean the total amount of the Program Extension Fee as
            set out in Appendix-2to Schedule 11 of this Agreement.

18.5  Liquidated damages payable by the Contractor to ICO pursuant to Clause
      18.1(c) shall be calculated in accordance with the following formula.

         * Confidential Treatment Requested and the Redacted Material has been
           separately filed with the Commission.

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<PAGE>   2389
Final Version - Change Order No 25

      (i)   The liquidated damages for Acceptance Set 1, 2 or 3 Completion
            shall be calculated as follows:

         *

      (ii)  The liquidated damages for Acceptance Set 4 Completion shall be
            calculated as follows:

         *

         E: shall mean the total amount of the Engineering Portion
            associated with the Phased SAN Handover as set out in Appendix
            4 to Schedule 9 of this Agreement.

         F: shall mean the number of days immediately following the date 15 days
            after the scheduled date of Acceptance Set 1, 2, or 3 Completion and
            30 days after the scheduled date of Acceptance Set 4 Completion as
            set out in the Master Level Schedule in Annex 4, Schedule 14 (or any
            extension or adjustment to such dates in accordance with Clause 9 of
            this Agreement) and the actual date of Acceptance Set 1, 2, 3 or 4
            Completion as the case may be.

         G: shall mean the total amount of the Program Extension Fee as
            set out in Appendix- 2 to Schedule  11 of this Agreement.

18.6  Liquidated damages payable by the Contractor to ICO under this Agreement
      shall never exceed in aggregate of   *   of the Price.

PART D - PROGRESS REPORTING

19.   MILESTONES AND PROGRESS REPORTING

19.1 ICO and the Contractor have agreed the Top Level Milestone Schedule (being
Schedule 7), which designates particular Milestones as Top Level Milestones and
specifies the date for the achievement by the Contractor of such Top Level
Milestones.

19.2 In accordance with the progress monitoring procedure established in Annex 4
of the Statement of Work, the Contractor shall report regularly on, and produce
such other evidence as ICO may reasonably request to demonstrate, the actual
progress of the Works as compared with the Master Level Schedule and Schedule 7.

19.3 Schedule 7 also contains other Milestones which, if not achieved by the
specified dates, may affect the Contractor's ability to achieve the Top Level
Milestones in accordance with Schedule 7. If ICO's failure to achieve any
Milestone, which is identified in Schedule 7 as being the responsibility of ICO,
has a direct effect upon the ability of the Contractor to achieve any Top Level
Milestone, then to the extent that the Contractor can demonstrate the same to be
required, Schedule 7 shall be adjusted in an equitable manner.

19.4 Any changes required to Schedule 7 shall be agreed in accordance with
clause 58.

19.5 If in ICO's reasonable opinion actual progress of the Works does not
conform generally with the Master Level Schedule or achievement of a Top Level
Milestone has been or may be delayed, and if delayed, ICO has notified the
Contractor in accordance with clause 15.3, then ICO may require the Contractor:

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

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<PAGE>   2390
Final Version - Change Order No 25

      (a)   to submit a report to ICO identifying the reasons for the delay and
            the Contractors proposal for catching up with that delay; and/or

      (b)   to produce and submit a revised Master Level Schedule to ICO
            showing how the Contractor proposes to ensure completion of
            the relevant Works by the relevant Milestone Date or, where a
            relevant Top Level Milestone has not or will not be achieved,
            how the Contractor proposes to ensure completion of the
            relevant Works without adversely affecting the Master Level
            Schedule and the achievement of the remaining Top Level
            Milestones by the relevant Milestone Dates.

19.6 If the Contractor is unable to satisfy ICO that it is able to complete the
relevant Works by the relevant Milestone Date or, as the case may be, that it is
able to complete all or any of the relevant Works without adversely affecting
the Master Level Schedule and the achievement of the remaining Top Level
Milestones by the relevant Milestone Dates, ICO shall have the right, with no
corresponding adjustment being made to the Price, to require the Contractor to
commit such extra resources (including any resources required to supplement the
NEC Team's own and then committed resources and expertise) as are necessary to
complete the relevant Works by the relevant Milestone Date or, as the case may
be, to complete all or any of the relevant Works without adversely affecting the
Master Level Schedule and the achievement of the remaining Top Level Milestones
by the relevant Milestone Dates.

19.7 If in extreme circumstances ICO considers that the Contractor is or will be
unable to complete all or any substantial aspect of the Works in accordance with
the Master Level Schedule and the achievement of the remaining Top Level
Milestones by the relevant Milestone Dates and the Contractor has failed to take
all appropriate actions called for by ICO under clause 19.6, then, if supported
by the opinion or recommendation of an independent expert appointed in
accordance with this clause 19.8, ICO may require the Contractor to (and the
Contractor shall be obliged to):

      (a)   replace any of the Sub-Contractors (including the other
            members of the NEC Team); and

      (b)   take such other actions as ICO may reasonably determine to be
            necessary in the circumstances.

19.8 Any independent expert required to be appointed for the purposes of clause
19.7 shall be appointed either by agreement between the parties within 21 days
of a request by ICO or, in the absence of such agreement within such period,
shall consist of a committee of three experts to be selected by lot from amongst
up to six nominees of whom up to three shall have been put forward within seven
days of the expiry of such 21 day period by each of ICO and the Contractor. Any
person nominated as an expert shall be entirely independent of the parties, the
other members of the NEC Team of any Sub-Contractors and any Site Operators.

20.   ICO ACCESS TO INFORMATION

20.1 The Contractor and the other members of the NEC Team shall grant ICO timely
access to relevant ICONET Ground Facilities documentation maintained by the NEC
Team and the Contractor's Sub-Contractor- NEC Australia Pty Ltd, including
technical, planning, schedule, risks and test data. Such documentation shall
include those items referred to in Section 5.2 of Annex 7B and Section 6 of
Annex 8A.

20.2 The Contractor shall use commercially reasonable efforts to obtain, for
ICO, visibility of other Sub-Contractor's documentation comparable to that which
the Contractor is obliged to provide under clause 20.1.

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Final Version - Change Order No 25

21.   STATIONING OF ICO STAFF AT CONTRACTOR'S FACILITIES

21.1 During the term of this Agreement ICO shall, subject to mutually acceptable
terms being agreed between the relevant parties (any such terms no less
favourable to ICO than any relevant term established already within the
Agreement), be entitled to station on-site representatives at the Contractor's
facilities including those at NEC Australia Pty Ltd, and those of its Principal
Sub-Contractors for the purposes of,

(a) facilitating ICO visibility and accessibility to the progress/status/risk of
    technical and schedule elements of the Works under this Agreement, other
    than a specific element or component of the Works which shall be governed by
    clause 22 hereof,
(b) providing effective liaison with ICO management, engineering, quality
    assurance and other pertinent personnel, and expediting data exchange and
    issue resolution.

21.2 The Contractor will supply and furnish physically co-located office
facilities for ICO's on-site representative(s), which shall include office
equipment and access to secure and normal communication services, and will
ensure that the Principal Sub-Contractors shall do likewise.

22    PROGRESS INSPECTION

22.1 Subject to any applicable legal restrictions in effect in the country of
manufacture, ICO has the right to inspect and verify the progress of all
elements of the Works at all places and times prior to the completion of Phase 3
Testing of the relevant item or component and its handover to, and receipt by,
ICO and for such purposes shall be permitted access to the premises of the
Contractor and its Sub-Contractors (excluding any Sub-Contractor who shall not
have been required to enter into a direct undertaking with ICO pursuant to
clause 11). ICO will give 14 days notice of its intended inspections to the
Contractor. Such inspections shall be performed in a manner that will not unduly
delay the Works. Any such inspections and verifications as are required shall be
authorised by the Supervising Officer.

22.2 If any such inspections and verifications are to be made on the premises of
the Contractor or any Sub-Contractor (excluding any Sub-Contractor who shall not
have been required to enter into a direct undertaking with ICO pursuant to
clause 11), the Contractor shall furnish, and shall require such Sub-Contractors
to furnish, without additional charge, all reasonable facilities and assistance
for the safe and convenient performance of these inspections and verifications.

22.3 The Contractor shall furnish or procure to be furnished to ICO such copies
of orders, specifications, drawings, any technical information and documents as
ICO may reasonably require to perform progress supervision.

22.4 When any elements of the Works which ICO has, in accordance with clause
22.1 notified the Contractor of its wish to inspect are not, at the relevant
time specified by ICO, ready for inspection, review or evaluation, ICO may
charge to the Contractor the reasonable costs incurred by ICO Staff in attending
at the relevant premises for the purposes of such inspection, review or
evaluation and such costs shall be reimbursed to ICO in accordance with clause
17.

22.5 Any inspection and/or test and/or examination made or attended by ICO Staff
under this clause shall not relieve the Contractor of its responsibility to
conform to the requirements of this Agreement.

23    INTERMEDIATE PROGRESS REVIEW

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Final Version - Change Order No 25

23.1 In relation to each of the sub-systems referred to in Schedule 11 (Payment
Schedule) comprising part of the Deliverables, the Contractor shall not despatch
any of such Deliverables from their respective places of origin to the Sites
until such time as the relevant sub-system shall have successfully completed all
of the Phase 1 Tests referred to in Section 5.1 of Annex 8A to the Statement of
Work.

23.2 Handover of an Acceptance Set shall not occur until such time as Acceptance
Set Completion has been achieved for the immediately preceding Acceptance Set.
Further, the Contractor shall not commence the upgrade and integration of a
preceding Acceptance Set until Handover of the current Acceptance Set has been
achieved. Nothing in this clause 23.2 shall preclude the Contractor from
undertaking activities (including Phase 3 IGF Tests) preparatory to commencing
the next, or subsequent, Acceptance Sets notwithstanding that the immediately
preceding Acceptance Set Completion may not have been achieved. For the
avoidance of doubt, the undertaking of activities preparatory to commencing the
next, or subsequent, Acceptance Sets shall not include the making available by
ICO, to the Contractor, of any SANs and the NMCs previously handed over to ICO,
unless specifically agreed by ICO.

23.3 ICO shall, in its absolute discretion, be entitled to waive compliance with
the timing requirements of clauses 23.1 and 23.2 in whole or in part and subject
to such terms and conditions as it may think fit, but any such waiver shall not
excuse or relieve the Contractor in any way from the requirement to ensure that
the relevant Deliverables satisfy the relevant Phase 1 or Phase 3 Tests.

[24]  NOT USED.

PART E - DELIVERY AND INSTALLATION

25.   SITE ACCESS

25.1 ICO Shall, no later than 4 weeks before the Ready for Installation Date for
each Site established in the Master Level Schedule, advise the Contractor of the
anticipated availability of the Site on the scheduled Ready for Installation
Date.

25.2 If ICO can reasonably foresee that the actual availability of a Site will
be later than the scheduled Ready for Installation Date, the parties shall meet
to determine the consequences to the Contractor's delivery and installation
programme and the action that can be taken to mitigate such consequences shall
be agreed in a Change Order in accordance with clause 9.

26    TRANSPORTATION TO SITE

26.1 The Contractor shall have sole responsibility for the shipment and
transportation of the Deliverables from the place of manufacture to, and
unloading and placing into suitable and secure storage at, a port of destination
in, and as selected by the Contractor, the country of the relevant Site. The
Contractor shall promptly upon arrival of the Deliverables at the port of
destination notify ICO in writing, and any agents designated by ICO, of the
storage location of the Deliverables.

26.2 ICO shall promptly arrange for customs clearance of the Deliverables at
such port of destination in accordance with clause 28.

26.3 Following customs clearance in accordance with clause 28, the Contractor
shall have sole responsibility for, and shall arrange promptly, inland
transportation from an ICO designated location at the relevant port of
destination to the relevant Site.

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Final Version - Change Order No 25

26.4 The Contractor shall arrange shipment and transportation for the
Deliverables to each of the Sites with reliable shipping and transportation
contractors experienced in carrying products of the type of the relevant
Deliverables.

26.5 The Contractor shall, 30 days before despatch of any of the Deliverables to
the relevant port of destination as referred to in clause 26.1, notify ICO of
the intended date of despatch, the mode(s) of transport and the destination of
the relevant Deliverables together with such other information as ICO may
reasonably require to assist ICO in arranging for customs clearance.

26.6 The Contractor shall not, without informing ICO, arrange for any of the
Deliverables to be shipped to Sites via third countries. The Contractor shall
not arrange for any Deliverables to be shipped via a third country if by doing
so any delays or adverse treatment in importation or customs clearance will
result or may reasonably be anticipated. Notwithstanding having informed ICO of
any shipment via third countries, the Contractor will be liable for any
penalties imposed upon ICO by virtue of the shipment via such third countries.

27    PACKAGING

27.1 The Contractor shall be responsible for packing all the Deliverables in a
manner which, taking into account all hazards which may reasonably be
anticipated, will enable them to be transported from their point of origin to
the Site and stored at the Site without suffering any accidental damage,
environmental damage or deterioration. The Contractor shall be responsible for
replacing at its own cost, without impact to the Top Level Milestone Schedule,
any of the Deliverables which are damaged in transit and for reimbursing ICO for
any expenses it incurs as a consequence of improper packing, marking or method
of shipment.

27.2 The Contractor shall pack, mark and ship all items and components of the
Deliverables in accordance with the requirements of this Agreement and so as to
be in compliance with best commercial practice for protection and shipment and
for meeting transportation regulations. A packing list shall be included with
each shipment and a copy thereof transmitted to ICO by fax at the time of
despatch from the point of origin (or where the despatch is made by a
Sub-Contractor, the Contractor shall transmit such copy within 48 hours of the
time of despatch) and each delivery package shall be marked and cross referenced
to such packing list.

27.3 The Contractor shall, following delivery, remove from each Site all packing
materials and dispose of, reuse or recycle the same in a manner lawful in the
relevant country. No separate or additional charges are payable by ICO for safe
packing, handling or storage in transit except as provided in clause 28.

28    CUSTOMS CLEARANCE

28.1 ICO shall be responsible for all customs clearances and other importation
formalities which relate to any of the Deliverables in the country in which the
Site at which the same are to be installed is situated.

28.2 ICO shall pay all import and custom duties (including VAT or any similar
sales tax), customs clearance charges and fees (including any storage costs
incurred during the import and customs clearing process), incurred in connection
with the importation of the relevant Deliverables in the country in which the
Site at which the same are to be installed is situated. The Contractor shall,
when requested by ICO and subject to clause 28.5, use its reasonable efforts to
assist ICO in obtaining customs clearance of, and in satisfying any other
importation formalities relating to, the Deliverables at the port of
destination.

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Final Version - Change Order No 25

28.3 The Contractor shall on a timely basis provide ICO with originals, or where
appropriate copies, of:

      (a)   all relevant shipping documents;

      (b)   manufacturing certificates;

      (c)   fully completed applications for import clearances; and

      (d)   if required, other usual customs clearance and importation
            documentation if required for the importation of goods into the
            relevant country,

relating to the Deliverables for signature and submission by ICO (where
appropriate).

28.4 No later than 60 days prior to the scheduled shipment to the relevant
country of the Deliverables as shown in the Master Level Schedule, ICO shall
inform the Contractor of any special requirements to be applied or followed in
respect of the importation of such Deliverables to the relevant country and the
Contractor shall meet such special requirements.

28.5 If the Contractor shall in providing the additional assistance requested by
ICO under clause 28.2 or in fulfilling any special requirements notified under
clause 28.4 incur additional cost then, subject to supplying to ICO reasonable
evidence of such additional costs incurred, ICO shall reimburse the same to the
Contractor in accordance with clause 17.

28.6 In the event that any objections or difficulties are anticipated or
encountered in any country which might result in the customs clearance or
importation procedures of the relevant Deliverables being delayed beyond 15 days
after arrival for customs clearance of the relevant Deliverables in the relevant
country (commencing with the first working day in that country after that on
which the Contractor shall have provided notification in accordance with clause
26.1 and the documentation referred to in clause 28.3), ICO shall promptly
notify the Contractor of the nature and cause of the delay (if known).

28.7 The Contractor shall identify and assess as soon as possible after
receiving any notification under clause 28.6 any negative effects upon the
Master Level Schedule and the parties shall discuss the appropriate and
necessary action to minimise such effects.

28.8 If customs clearance or the importation of any of the Deliverables into the
country in which the Site at which the same are to be installed is situated is
delayed beyond the period specified in clause 28.6 and the Contractor shall have
fully complied with its obligations under clauses 26 to 28 inclusive in relation
to such Deliverables then, subject to the Contractor demonstrating to the
reasonable satisfaction of ICO that the delay in the importation or customs
clearance of the relevant Deliverable was the direct cause of an actual delaying
the Top Level Milestone Schedule (as it relates to the Site for which such
Deliverables were intended and to any consequential effect on the relationship
between that Site and any other Sites) shall be adjusted for a period not to
exceed the lesser of:

      (a)   the actual period of delay in the Top Level Milestone Schedule
            resulting directly from the delay in importation or customs
            clearance of the relevant Deliverables; or

      (b)   the number of days in excess of the period referred to in clause
            28.6 which were required for actual importation or customs clearance
            of the relevant Deliverables to be achieved.

28.9 For the avoidance of doubt, ICO shall not be responsible for and clauses
28.1 to 28.8 shall not apply to:

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      (a)   the importation by the Contractor or any Sub-Contractor of any
            installation and test tools, equipment, materials or other effects
            (including personal) in connection with this Agreement; or

       (b)  any Deliverables which are imported more than once into any country
            in which a Site at which the same are intended to be installed is
            situated, whether the second or subsequent importation is into the
            same or any other country to the initial importation, otherwise than
            as a result of a direction by ICO.

28.10 In the event that any of the circumstances in clause 28.9(b) apply:

      (a)   ICO shall at the Contractor's request assist the Contractor in, and
            in appropriate circumstances handle on behalf of and at the expense
            of the Contractor, the importation and customs clearance of the
            relevant Deliverables; and

      (b)   the Top Level Milestone Schedule shall not be extended even if
            delays or difficulties are encountered in the customs clearance or
            importation procedures.

29.   INSURANCE

29.1 The obligations in this clause 29 shall apply until such time as risk in
the relevant Deliverable shall pass to ICO. The Contractor shall as from the
time of creation of all or any part, including components, of the Deliverables
maintain insurance against loss, damage or destruction for all of the
Deliverables then in existence for their full replacement cost, including costs
associated with expedited repair or replacement and delivery to, and
installation at, the location where the affected Works are being, or are to be,
performed.

29.2 The Contractor shall, in the event of the loss, damage or destruction of
any of the Deliverables at any time before the Handover Dates for Acceptance
Sets 1 to 4 of the relevant Deliverable, use its best efforts to procure the
provision of any repair or replacement for any of the Deliverables or any
component thereof and to take such other actions as the Contractor deems
appropriate in order to avoid or to minimise all adverse effects on the Master
Level Schedule and the Top Level Milestones as a consequence of the loss, damage
or destruction of any Deliverables.

29.3 ICO shall be nominated as joint insured in respect of all of such
Deliverables and their components and shall be loss payee. Within three months
of the date of this Agreement ICO shall grant to the Contractor an appropriate
power of attorney enabling the contractor to negotiate with, settle and collect
any claims from the insurers of any of the Deliverables or any carriers, bailees
and/or other parties responsible for loss or damage to any part or component of
the Deliverables. The Contractor shall hold any amount so received in trust on
behalf of ICO until the same shall be applied in payment for any repair or
replacement Deliverables or shall be paid to ICO.

29.4 ICO at its sole discretion may direct that the Contractor not proceed with
the repair or replacement and delivery as provided in clause 29.2 and instead
require that the Contractor and ICO co-operate to procure that the proceeds of
insurance be paid directly to ICO and the Contractor will not be required to
proceed with any such repair or replacement or delivery.

29.5 To the extent that ICO's direction under clause 29.4 shall adversely affect
the ability of the Contractor to comply with the Top Level Milestone Schedule
and any applicable Top Level Milestones, to the extent that either party can
demonstrate the same to be required, the provisions of this Agreement (including
if necessary the Payment Schedule, the Top Level Milestone Schedule and Top
Level Milestones) shall be adjusted in an equitable manner.

29.6 The Contractor shall produce evidence (and an English translation) to ICO
of its compliance with clauses 29.1 and 29.3 from time to time upon request and
no less frequently then once a year within one month following the renewal date
of the Contractor's policy.

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30    OWNERSHIP

Ownership of the Deliverables shall pass to ICO upon the relevant Deliverable
being loaded on board a ship, aircraft or other means of transport bound for
export from the country of origin provided that where any Site is located in the
country of origin, ownership shall pass upon the relevant Deliverable arriving
at the relevant Site.

31    DELIVERY

31.1 The Contractor shall be responsible for the delivery of the Deliverables to
the Sites in accordance with the Statement of Work and the Master Level
Schedule. The Contractor shall provide all materials, plant, equipment and
labour required to receive, off-load and place the Deliverables in position at
the Sites.

31.2 Upon arrival of each consignment or shipment of the Deliverables at each
Site, the Contractor shall examine and confirm to ICO the identity of the
Deliverables which have been delivered and that they are in good condition and
ready for installation or, if this is not the case, what the position then is.
The Contractor shall also identify to ICO any Deliverables which have been
scheduled for delivery at that Site by that time but which have not then been
delivered (or which have been delivered but are either defective or damaged and
in need of replacement or repair) and, promptly, the Contractor shall deliver to
ICO a report setting out the impact on the Master Level Schedule and for
completing the Works and all applicable testing requirements at that Site on or
before the scheduled date for completion of the same and any remedial actions
which the Contractor intends to implement.

32    INSTALLATION

32.1 The Contractor shall at each Site carry out the Works in accordance with
the Statement of Work and the IGFR, using a safe system of working and in
compliance with all local laws.

32.2 The Contractor shall (within a reasonable time taking into account the
nature of the damage), in a good and workmanlike fashion, repair or replace any
damage to the Site (including any of the buildings, fixtures, fittings or other
equipment on the Site) or to any of the Deliverables in the course of any aspect
of the installation of any of the Deliverables which has been caused by the
Contractor or any Sub-Contractors.

32.3 Save for those items specified in Annexes 2, 3 and 9 of the Statement of
Work, the Contractor shall be responsible for providing, or procuring the
provision, of all equipment, tools, consumables, spares and all other materials
and services required for the carrying out of the Works and the installation of
the Deliverables at all Sites. With respect to those items of equipment, tools,
materials, and services required for the installation of the Equipment and
Software which ICO is responsible for providing to, or procuring to be made
available for use by, the Contractor as specified in Annexes 2, 3 and 9 of the
Statement of Work, the Contractor shall be responsible for the proper care and
maintenance (including any losses or damages) of all such items and shall,
following the completion of the Works for which they are required, return all
such items to ICO at such location(s) as ICO may reasonably specify in the same
condition as they were provided (save where consumed in the case of consumables
or for normal wear and tear) and recalibrated if appropriate. The Contractor
shall be responsible for the costs of all transportation and insurance
associated with the provision by ICO to, and use and return to ICO of such items
by, the Contractor.

32.4 The Contractor shall ensure that its employees, its Sub-Contractors and
their employees observe all relevant laws regulations and practices relating to
the Sites and shall remove forthwith from the relevant Site, with or without the
request of ICO, any such persons failing to abide by any of these requirements.

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32.5 The Contractor acknowledges that the Sites on which the Works will occur
and adjoining land may have other existing equipment and operations which may be
carried out concurrently by third parties. The Contractor shall take all
reasonable and necessary actions (including the co-ordination of its activities
on any Site with any other activities of others affecting the same Site or any
adjoining land) so as to prevent such other existing equipment and concurrent
operations from suffering any damage or adverse effects as a result of the
Contractor's activities. In the event that the Contractor's activities cause any
damage to existing equipment or adversely affect other concurrent operations,
the Contractor shall immediately stop the activities giving rise to any such
damage or adverse effect and, in consultation with ICO or such other person as
ICO may direct, implement such remedial action as may be necessary to repair,
replace or rectify the damaged equipment or to prevent the adverse effect upon
concurrent operations.

32.6 The Contractor shall throughout the process of installation keep the Sites
in a clean and tidy condition and shall be responsible for keeping the Sites
free from rubbish and contamination arising as a consequence of its activities.
Following completion of the installation of the relevant Deliverables at each
Site, the Contractor shall promptly remove its effects, personnel (other than
those with a role continuing after installation), spare materials, plant,
machinery and any rubbish or other debris. The Contractor shall leave the Site
in a clean condition, ready to commence operations.

33    TESTING

33.1 The Contractor acknowledges that it must and undertakes that it will within
the timescales contemplated by this Agreement deliver to ICO fully integrated
and tested ICONET Ground Facilities capable of fulfilling the IGFR and the
Statement of Work,

33.2 In order to establish that the Works and the Deliverables are capable of
providing a fully functioning service, testing and retesting of each element is
required. The Contractor must ensure that the testing procedure set out in the
Statement of Work is fulfilled and ICO Staff shall be permitted to observe and
review any and all of the formal and informal tests referred to in Annex 8A of
the Statement of Work.

33.3 In the event that any part of the Deliverables shall fail any formal test
(as described in Annex 8A of the Statement of Work) as is referred to in clause
33.2 for any reason, the test procedures shall, after a reasonable opportunity
for the Contractor to remedy the cause of such failure, be restarted at the
discretion of ICO to a reasonable point to demonstrate the functionality and/or
the reliability of the Deliverables concerned.

33.4 The Contractor shall inform or confirm to ICO in writing (as appropriate)
at least 14 days in advance the date, time and location of all formal tests (as
described in Annex 8A of the Statement of Work).

33.5 In the event that any of the formal tests specified above:

      (a)   do not occur within 48 hours of the time scheduled for such
            test;

      (b)   is cancelled by the Contractor or Sub-Contractor with less than 48
            hours notice to ICO; or

      (c)   is carried out and the relevant Deliverable shall fail the such test
            and the same cannot be reperformed within 48 hours of the time it
            failed and ICO requests that it be retested pursuant to clause 33.3,

then the Contractor will reimburse ICO for any reasonable costs and expenses
incurred in attending the tests or inspection.

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Final Version - Change Order No 25

34    RFT HANDOVER

34.1 In relation to such part of the Deliverables as comprise RFTs for use in
the six TT&C Sites which ICO has designated as the TT&C Sites as set out in the
Statement of Work, the provisions of this clause shall apply.

34.2 On or before the RFT Availability Date applicable to each TT&C Site, the
Contractor shall ensure that (i) at such Site, two (or at the Contractor's
discretion any greater number) of the RFTs will be installed; (ii) all of those
RFTs that have been installed have successfully completed their Phase 2-1
testing (as referred to in Annex 8A of the Statement of Work); (iii) all of the
required training at such Site shall have been provided to ICO Staff necessary
to train them to operate such RFTs competently; (iv) the required documentation
relating thereto as specified pursuant to the Statement of Work has been
supplied to ICO; and (v) the provisions set out in the IGFR and the Statement of
Work relating to such RFTs shall have been complied with.

34.3 The Contractor shall for a continuous period of three weeks following the
RFT Availability Date applicable at each of the Sites (other than the first Site
to be made available and at the IOT Site, where such continuous period shall be
six weeks) provide engineering support and assistance to ICO Staff at such time
as may be established by ICO at anytime falling within the period of three
months following the RFT Availability Date (provided that if such time shall not
be immediately following the RFT Availability Date applicable to the relevant
Site, ICO shall give the Contractor at least two weeks prior written notice of
the time at which such support and assistance is required), for the integration
of all of the installed RFTs with ICO's satellite TT&C and IOT systems so that
the same can, by the end of such integration period, be made ready for operation
and use by ICO as a satellite telemetry, tracking and control site assuming that
the TT&C and IOT systems meet their respective Interface Control Documents.

34.4 On the relevant RFT Availability Date, the Contractor shall make available
for use by ICO at the relevant TT&C Site two of the RFTs and shall procure that
at all times between the relevant RFT Availability Date and Handover Date
relevant to each Acceptance Set 1 to 4 ICO has at each TT&C Site a minimum of
two RFTs continuously available for use and operation in a fully functional
mode, in connection with ICO's TT&C and IOT activities.

34.5 Without affecting the requirements of clause 34.4, following the RFT
Availability Date and the installation and successful Phase 2-1 testing of any
of the remaining RFTs at any TT&C Site, the Contractor shall make such other
RFTs available for use by ICO in connection with ICO's TT&C and IOT operations
at a single time of the Contractor's choosing and shall, at each TT&C Site,
provide for a continuous period of three weeks engineering support and
assistance to ICO Staff for integration of the RFTs with ICO's satellite TT&C
systems. Any such RFT shall not, for the remaining provisions of this clause, be
regarded as available to ICO until the provision of such engineering support and
assistance has been completed.

34.6 ICO acknowledges that at certain times the Contractor will need to carry
out testing at the Site of the Deliverables comprising the entire SAN or major
aspects thereof and accordingly it may be necessary for ICO to switch its TT&C
and IOT operations at the Site to use another of the available RFTs.

34.7 The Contractor shall, in circumstances where its testing procedures require
the use of RFTs at a particular Site, ensure that its use of those RFTs does not
interfere with ICO's TT&C and IOT operations at the Site and it will liaise with
ICO to ensure that there are no interruptions which cause any risk to necessary
TT&C and IOT operations.

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34.8 ICO undertakes that it will, under the supervision of properly trained
personnel, operate and maintain all of the RFTs made available to ICO by the
Contractor under this clause 34 only for ICO's TT&C and IOT operations at the
Site and in accordance with the operation and maintenance manuals provided by
the Contractor and will otherwise take all reasonable steps to keep the relevant
RFTs secure and free from interference and abuse.

34.9 During the period between the RFT Availability Date and the Handover Dates
for the relevant RFTs, all such RFTs which the Contractor has made available for
use by ICO under this clause 34, but which have not been handed over to ICO,
shall nevertheless remain at the risk and under the ultimate control and
responsibility of the Contractor.

34.10 If in the period referred to in clause 34.9, ICO shall determine that
there is any defect or deficiency in any of the Equipment or Software or Works
relating to the RFTs which have been made available for its use, it shall
promptly notify the Contractor of this, in writing. The Contractor shall,
wherever practicable, immediately make another RFT at that Site available for
use by ICO. Where that is not practicable (including by reason of such other
RFTs not yet having been integrated with ICO's TT&C equipment), then the
Contractor shall implement such repairs, replacements or alterations as shall be
required to ensure that there is no interruption in ICO's TT&C and IOT
operations.

35    ACCEPTANCE

35.1 Upon Handover of any SANs and/or NMCs comprised within each of Acceptance
Sets 1 to 4, the Contractor shall, in an orderly manner, at the relevant Sites
hand over to ICO Staff all such Deliverables (save and except for Training which
shall be handed over in accordance with a training schedule to be developed, by
the parties, in accordance with the principles and procedures set out in Annex
5) located at such Sites as are due to be handed over by such dates

35.1.1 Upon any Handover, ICO shall issue and deliver to the Contractor a
Handover Certificate in the form set out in Schedule 12. The purpose of the
Handover Certificate shall be to record the fact that Handover has occurred and
also ICO's formal receipt of the Deliverables. Until such time as the relevant
Handover Certificate has been provided by ICO in accordance with this clause,
neither ICO nor any SAN Operator, or their respective servants, agents or
representatives, shall use such Deliverables (or any part thereof) for the
purposes of ICO's activities or operations (save where otherwise specifically
provided in this Agreement).

35.1.1.2 Upon completion, by the Contractor, of each of Acceptance Sets 1 to 4
ICO shall, no later than 14 days of the date of Acceptance Set Completion, issue
and deliver to the Contractor an Acceptance Set Completion Certificate in the
form set out in Schedule 12.

35.1.2 Upon satisfactory completion of the testing of the Function Set 5 which
satisfies Acceptance Set 5 and the criteria set out in Annex 10, ICO shall issue
and deliver to the Contractor an Acceptance Set Completion Certificate in the
form set out in Schedule 12.

35.1.3 In respect of any Deliverables (other than Function Set 5) which are to
be handed over or in respect of any Works which are to be completed by the
Contractor after the Acceptance Set 4 Completion Date, upon the relevant
Deliverable having fulfilled its specification and any other applicable
requirements laid down pursuant to this Agreement or the relevant Works having
been completed to ICO's satisfaction, including the satisfaction of any test
criteria relevant to such Works, ICO will confirm formal receipt of the relevant
Deliverable or Works by issuing and delivering to the Contractor a Completion
Certificate (which shall be in the same form as the Acceptance Set Completion
Certificate, but modified as appropriate). Such certificate shall be signed by
the Supervising Officer on behalf of ICO and shall be sent to the Contractor by
facsimile.

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35.1.4 The issue of a Handover or Acceptance Set Completion Certificate shall
not affect the obligations of the Contractor to deliver any other Deliverables
and/or to complete the Works and/or to remedy or to rectify any faults which may
affect the ICONET Ground Facilities or other Deliverables or Works at that time.

35.2.1 Notwithstanding the provisions in clause 35.1.1, and without prejudice to
the Contractor's rights under this Agreement, in the event ICO or any SAN
Operator or their respective servants, agents or representatives shall use
Deliverables which comprise only part of the Hardware and Function Set referable
to a given Acceptance Set for the purposes of ICO's operations or activities,
such use shall be deemed to be a Handover for the purposes of this Agreement.
ICO shall promptly, thereafter, issue and deliver to the Contractor the
requisite Handover Certificate.

35.2.2 For the purpose of clause 35.2.1 reference to ICO's "operations" or
"activities" shall not include those activities which ICO shall undertake
pursuant to clause 34.8, Annex 7B of the Statement of Work, save and except for
Section 2.3.1 thereof in respect of SANs and NMCs not yet handed over to ICO,
any activities it is agreed in writing shall be undertaken by ICO (including
ICONET Integration activities or any maintenance activities it is agreed between
the parties shall be undertaken by ICO) or other activities or operations as the
parties may agree, from time to time, shall be undertaken by ICO pursuant to
this Agreement.

35.2.3 If any Handover occurs in circumstances described in clause 35.2.1 and
the Contractor shall not have completed its activities on all elements comprised
within the relevant Acceptance Set, including Handover and Acceptance Set
Completion, and the Contractor considers that it is not reasonably practicable
to complete its outstanding testing activities within the existing Schedule
then, to the extent the Contractor can demonstrate the same to be required, the
Schedule shall be adjusted in an equitable manner. The Contractor shall be
entitled, also, to claim, and ICO shall be obliged to pay, any direct costs
incurred by the Contractor associated with any re-allocation of, or addition to,
the Contractor's resources necessary to complete its activities.

35.2.4 If any adjustment to the schedule is required in accordance with clause
35.2.3, above, the parties shall mutually agree a date upon which ICO shall make
the Deliverables located at any relevant SAN(s) or NMC site(s) available to the
Contractor, to enable the Contractor to complete its activities. The
availability date to be agreed shall, in any event, occur within a reasonable
time following any event of Handover described within clause 35.2.1.

35.2.5 Following Handover, if ICO does not make available to the Contractor any
Deliverables in accordance with the date established by the parties under clause
35.2.4, ICO shall agree with the Contractor the earliest alternative date by
which Deliverables can be made available to the Contractor and, in this event,
the procedures and processes described in section 4.1.6 of Annex 7B shall be
applied, provided always that ICO's agreement shall not be unreasonably withheld
or delayed.

36    RISK

36.1 The Deliverables shall be at the risk of the Contractor until 00.01 hours
GMT on the day immediately following the Handover Date referable to each of
Acceptance Sets 1 to 4 or, in relation to Deliverables comprised within
Acceptance Set 5, following Acceptance Set 5 Completion, at which time risk in
the same shall pass to ICO.

36.2 The Contractor shall, from the point in time at which ICO makes the
Deliverables available pursuant to Section 4.1.5 of Annex 7B of the Statement of
Work, until such time as the Contractor completes its activities, assume
responsibility to take due care of such Deliverables. To the extent the
Contractor shall fail to take due care of the Deliverables and insofar as such
failure shall cause or result in direct physical damage to, or loss of, tangible
property of ICO then the Contractor shall use its best efforts to procure the
provision of any repair or replacement for any of such Deliverables or any
component thereof and to take such other actions as the Contractor deems
appropriate in order to avoid

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or minimise all adverse effects on the Master Level Schedule and the Top Level
Milestones as a consequence of the loss or damage to such Deliverables.

37    INTERCHANGEABILITY

37.1 The Contractor shall ensure that at each of the Sites the items comprising
any part of the Deliverables, and in particular the Equipment and Software
supplied to fulfil any particular functional requirement shall, to the maximum
extent practicable and where lawful, be of identical design and shall carry the
same component reference as and be interchangeable with the equivalent items
supplied for use at any other of the Sites or by way of Spares, provided always
that ICO acknowledges that as a consequence of the Contractor's or the Principal
Sub-Contractors' policy of continuous improvement, in view of the time between
design and manufacture and the manufacturing timetable, certain items intended
to fulfil the same functional requirement, may differ from earlier items
supplied.

37.2 The Contractor shall at all times maintain a complete record of any changes
in specification of any such items and of any differences between the Sites in
the items installed by the Contractor in a format reasonably to be specified by
ICO. The Contractor shall within 30 days of each anniversary of this Agreement
(ending with the tenth such anniversary) provide an up to date and complete copy
of such record to ICO.

38    DELIVERY DELAYS

If and whenever it becomes apparent that progress of any of the Works is being
or is likely to be delayed, the Contractor shall forthwith give written notice
to ICO of the material circumstances including the cause or causes of the delay.
If practicable, such notice shall give particulars of the expected effects
thereof and estimate the extent of the expected delay in delivery or performance
beyond the date or dates set out in the Master Level Schedule. The Contractor
must specify what actions it is taking or intends to take to minimise and
recover such delay. The Contractor shall give such further written notices to
ICO, as may be necessary or as ICO may reasonably require for keeping up to date
the particulars and estimate referred to above including any material change in
such particulars or estimate.

[39]  NOT USED.

40    WARRANTY

40.1 Notwithstanding inspection, testing and the issue of a Handover Certificate
by ICO in respect of any of the Works or the Deliverables or any other provision
of this Agreement which purports to make acceptance by ICO conclusive, the
Contractor guarantees that;

      (i)   throughout the period commencing with the Handover Dates for each of
            the Acceptance sets 1 to 5 up until a date six (6) months following
            Acceptance Set 5 Completion Date.

      (ii)  Not used

      (iii) solely in respect of Works and Deliverables with a Handover Date
            later than the Handover Date for Acceptance Set 4, throughout the
            period for 2 years commencing from the Handover Date for such Works
            or Deliverables;

      (a)   all the Deliverables are designed and manufactured so as to conform
            to the design, performance and manufacturing requirements of this
            Agreement as from time to time modified by the parties, and will
            perform in accordance with and deliver the functionality specified
            in those requirements;

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      (b)   the Works generally, and the Deliverables in particular, and each
            component of either of them, is free from all defects in material or
            workmanship, latent defects or other defects which may cause the
            same to fail to conform to the specified functional and/or
            performance requirements of this Agreement as from time to time
            modified by the parties;

      (c)   each Deliverable functions in such a way that, in conjunction with
            others of the Deliverables, it fulfils the IGFR;

      (d)   the contents of the documentation comprised within the Deliverables
            are correct and free from defects or faults (failing which clause
            40.12 shall apply); and

      (e)   the contents of the Training courses and materials comprised within
            the Deliverables are correct and free from defects (failing which
            clause 40.13 shall apply).

40.2 In the event of a failure of any item of the Works or Deliverables or any
component or part of any such item to meet the conditions specified in clause
40.1, the Contractor shall at its own cost take such actions and carry out such
additional Works promptly to repair or replace or correct such affected items or
components or parts as are necessary to retain and/or restore the specified
functional and/or performance requirements and without any adverse impact on the
Contractor's compliance with the Master Level Schedule. The Contractor shall
prepare and furnish to ICO data and reports applicable to any corrective action
required as set out in this clause 40, including but not limited to revision and
updating of all affected data called for under this Agreement and the Contractor
shall bear the cost thereof.

40.3 If the Contractor fails to repair or replace such items or parts promptly
in accordance with this clause 40 then the Contractor shall pay the costs
incurred by ICO in procuring such items or parts from another supplier and
accomplishing the repair or in modifying such items or parts or other parts of
the Works and/or Deliverables in order to achieve the specified functional
and/or performance requirements. Any action taken by ICO pursuant to this clause
40.3 shall not affect the Contractor's warranty. ICO shall use reasonable
efforts to notify the Contractor of its intention to exercise its rights under
this clause 40.3 a reasonable period in advance of so doing.

40.4 Any item of the Works or Deliverables or any component or part of any such
item corrected or furnished in replacement shall be guaranteed on the terms of
this clause to the same extent as would have applied if the item or part
concerned had initially formed a Deliverable. Where the corrected or replacement
item or part of a Deliverable (not being a printed circuit board or an item of a
similar nature) is brought into operation as a part of the ICONET Ground
Facilities more than twelve months after the commencement of the warranty period
referred to in clause 40.1 applicable to such item or part, this guarantee shall
continue for the period of twelve months from the date of the installation and
bringing into operation at a Site of that replacement item or part. In addition,
the period of warranty relating to any item or part supplied as a Spare shall
run for a period of 24 months after the date referred to in clause 40.1 as the
date of commencement of the warranty in respect of the Deliverables originally
supplied or if later until the expiry of the period of twelve months from the
date of the installation and bringing into operation at a Site of that Spare as
a replacement item or part.

40.5 Upon ICO becoming aware of the occurrence of any defect in or fault
affecting any of the Works or any other item which is subject to the
Contractor's guarantee:

      (a)   ICO shall submit to the Contractor a written fault report in the
            agreed form (the form and content of which is to be agreed between
            the parties within 9 months of the date of this Agreement)
            describing, so far as it is able, the symptoms of the failure and,
            to the extent possible, identifying the item(s) or part(s) causing
            such failure or having a defect;

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      (b)   if ICO reasonably considers immediate rectification of the defect or
            fault is required to prevent or minimise the risk of damage or
            injury or performance degradation to:

                  (i)   the operators of the Equipment or Software; or

                  (ii)  the Equipment or Software itself; or

                  (iii) the location in which the Equipment or Software is
                        installed; or

                  (iv)  other equipment or software located with or connected to
                        the Equipment or Software,

            ICO shall include this information in its report and may (without in
            any way affecting its rights under this clause 40) proceed with
            rectification of the defect or fault to the extent reasonably
            considered necessary in the circumstances;

      (c)   the parties shall (other than in relation to Software), within 5
            days of the Contractor's receipt of such report, agree the manner
            and time in which such defect or fault is to be rectified;

      (d)   ICO shall pack for shipment and arrange the shipment of any
            defective or faulty item(s) or part(s) that the Contractor
            directs be shipped to the NEC Team member premises as
            designated by the Contractor and in the case that the
            Contractor directs the travelling wave tubes (TWTs) be
            shipped, ICO shall use a TWT shipping container for returning
            the TWT if such a shipping container is available at the Site
            from which the shipment is to be made; and

      (e)   ICO shall arrange for the exportation of the defective or faulty
            item(s) or part(s), and, subject to clause 28.9, the re-importation
            for any repaired or replacement item(s) or part(s).

40.6 The Contractor shall provide the necessary information and documents for
the re-importation of any repaired or replacement items or parts (such
information and documents to be of a nature similar to those required for the
purposes of clauses 26 and 28) and reimburse ICO, in accordance with clause
17.3, for all costs and expenses that ICO incurs:

      (a)   in complying with the requirements of this clause 40, including any
            packaging, transportation, shipping charges, customs duties, customs
            bonds, sales taxes, VAT or charges of a similar nature which ICO
            incurs for the exportation or re-importation of item(s) or part(s),
            or for performing any rectification work;

      (b)   associated with disassembly and/or re-assembly of larger items or
            parts where their disassembly is required for the purpose of
            enabling fault diagnosis to take place and/or removal and/or
            replacement of any other affected item or part.

40.7 In the case of an Equipment defect or fault, the Contractor will, at its
discretion, repair or replace at its own cost the defective or faulty Equipment
in a timely manner so as to minimise any interruption or risk of interruption to
the functioning of the ICO System and the Contractor shall take all such actions
as are reasonably required to restore functionality to the ICO System to the
same level as it was immediately prior to, or should have been in the absence of
(but without imposing any obligation on the Contractor in respect of unconnected
defects or faults in the elements of the ICO System other than the ICONET Ground
Facilities), such defect or fault and use its best efforts to avoid and minimise
any interruption or risk of interruption to the functioning of the ICO System.

If, at the relevant Site, ICO shall have an appropriate Spare, in order to avoid
and minimise any interruption or risk of interruption to the functioning of the
ICO System, ICO shall use the same to replace the defective or faulty Equipment
but without prejudice to the obligations of the Contractor, at

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no cost to ICO, to supply a replacement for such Spare and to attend the Site to
make any necessary repair to the item or part of the Equipment suffering the
defect or fault.

In the absence of ICO holding an appropriate Spare at the relevant Site or where
the Contractor is not able to implement an immediate repair or replacement of
the defective or faulty Equipment, ICO may, if possible and where it urgently
requires the availability of the relevant Equipment, make immediate repairs to
any defective or faulty Equipment without affecting any of its rights under this
clause 40.

40.8 In the event of any Software defect or failure:

      (a)   ICO shall inform the Contractor of the nature of the Software defect
            or fault (so far as it is able to identify the same) in the agreed
            manner, following the reporting, fault escalation and required
            response processes to be agreed between the parties (which process
            shall be agreed not less than 6 months before the scheduled
            commencement of the Warranty period specified in clause 40.1);

      (b)   the Contractor will analyse the reported Software defect or fault
            and the Contractor shall, at no cost to ICO, supply a temporary fix
            to rectify the Software defect or fault without avoidable delay and
            in a timely manner so as to minimise or avoid any interruption or
            risk of interruption to the functioning of the ICO System and
            minimises the effects of the defect or fault;

      (c)   the Contractor, at no cost to ICO, will notify ICO by telephone,
            facsimile or e-mail how to fix the defect or fault using Site
            personnel, or make and supply the "bug" fix, maintenance release or
            update; and

      (d)   the Contractor shall, at no cost to ICO, take all such actions
            as are reasonably required to restore on a permanent basis
            functionality to the ICO System to the same level as it was
            immediately prior to, or should have been in the absence of
            (but without imposing any obligation on the Contractor in
            respect of unconnected defects or faults in the elements of
            the ICO System other than the ICONET Ground Facilities), such
            defect or fault and will use its best efforts to avoid and
            minimise any interruption or risk of interruption to the
            functioning of the ICO System and will as rapidly as is
            possible, using the best efforts of the NEC Team, and in any
            event within three (3) months (or such longer time as may be
            agreed by ICO) of the occurrence of the Software defect or
            fault, prepare and issue a permanent fix to the Software for
            installation at all Sites where the Software is installed.

40.9 the Contractor will, where any defect or fault cannot for any reason be
repaired or rectified in accordance with clauses 40.7 or 40.8, at its own cost,
dispatch appropriately qualified engineer(s) to the Site to identify and repair
or rectify any defective or faulty Equipment or Software without avoidable delay
and within a time period which minimises the effects of such defect or fault.
ICO shall use reasonable efforts in the period ending on 12 August 2002, or such
later date as shall be determined by reference to clause 40.1, to hold a Spare
of such items at such Sites as has been recommended on a reasonable basis by the
Contractor prior to the date of this Agreement. save where the recommended Spare
has been used already at a Site for an Equipment defect or fault (and it has not
been replaced or returned to the relevant Site by the Contractor), to reinstate
any Spares which are used. The Contractor will have no obligation under the
terms of this clause 40 in respect of damage arising solely from a failure by
ICO to maintain Spares in accordance with this clause 40.9.

40.10 The Contractor will, during the period of three years from Acceptance Set
5 Completion Date, submit a written report quarterly within one month after the
end of the relevant quarter summarising:

      (a)   for each of the Sites, all Equipment defects or faults which were
            notified by each NEC Team member during the previous quarter and
            identifying how they were processed for repair or replacement;

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      (b)   for each of the Sites, all Software defects or faults which were
            reported to each NEC Team member during the previous quarter and
            identifying how they were rectified;

      (c)   an analysis of the trend of Equipment and Software defects or faults
            of which members of the NEC Team have become aware (both as a
            consequence of paragraphs (a) and (b) above and, separately, from
            other sources), including re-occurring defects and faults and
            proposed remedial actions and the periods taken to implement the
            same, by Equipment and Software type and source;

      (d)   for Equipment repairs or replacements, the average turnaround time,
            the longest turnaround time with the reason and the number and
            description of those remaining to be implemented with the predicted
            date for completion and time period since the defective or faulty
            item or part was first reported as faulty or defective and returned,
            for each NEC Team member;

      (e)   for Software temporary fixes, the average turnaround time, the
            longest turnaround time with the reason and the number and
            description of those remaining to be implemented with a predicted
            date for completion and total elapsed time from the date that any
            member of the NEC Team first received notification of the original
            fault or defect to its predicted date for implementation, for each
            NEC Team member;

      (f)   for Software permanent fixes, the number and description of
            those implemented during the period, the number and
            description of those remaining to be implemented and the
            number and description of those remaining to be implemented
            with a predicted date for completion and total elapsed time
            from the date any member of the NEC Team first became aware of
            the original fault or defect to its predicted date for
            implementation, for each NEC Team member; and

      (g)   such other information as ICO may reasonably require to assess
            the reliability of the Equipment and Software (including any
            individual parts, components, sub-systems and programs) and
            the efficiency and performance of the Contractor and its
            compliance with its warranty obligations, and in particular
            the means by which it is ensuring that there is no avoidable
            interruption to services provided through the ICO System as a
            consequence of any Equipment or Software defect or fault.

40.11 If requested by ICO, the Contractor will provide ICO with a written report
describing the results of the analysis of any specific Equipment or Software
defect or fault notified to the Contractor in respect of any Equipment or
Software whilst the same is under warranty pursuant to this clause for which ICO
has requested a separate report. Any such report shall be provided promptly
following ICO's request and shall address all those matters which ICO shall have
prescribed in its request.

40.12 In the event of defects or faults in any of the content of the
documentation, the Contractor will:

      (a)   unless otherwise agreed by ICO, correct and re-issue the affected
            documentation within one month of the Contractor first becoming
            aware of the same in the same formats, quantities and to the same
            places of delivery as the provision of the original documentation;

      (b)   will make all necessary rectifications to any part of the ICONET
            Ground Facilities which has been affected adversely as a result of a
            defect or fault in the contents of the documentation; and

      (c)   if the functionality of the ICO System shall have been
            affected in any way by such defect or fault, at its own cost,
            take all such actions as are reasonably required to restore
            functionality to the ICO System to the same level as it was
            immediately prior to, or should have been in the absence of
            (but without imposing any obligation on the

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            Contractor in respect of unconnected defects or faults in the
            elements of the ICO System other than the ICONET Ground Facilities),
            such defect or fault and use its best efforts to avoid or minimise
            any interruption or risk of interruption to the functioning of the
            ICO System.

40.13 In the event of incorrect or defective content of Training courses or
materials the Contractor shall:

      (a)   unless the parties agree otherwise, without delay and in each of the
            locations at which the incorrect or defective Training shall have
            been given, provide remedial Training in the same manner as the
            provision of the original Training;

      (b)   make all necessary rectifications to any part of the ICONET Ground
            Facilities which has been affected adversely as a result of
            incorrect or defective content of Training courses or materials; and

      (c)   if ICO shall demonstrate to the reasonable satisfaction of the
            Contractor that the functionality of the ICO System shall have
            been affected in any way by such defect or fault, at its own
            cost, take all such actions as are reasonably required to
            restore functionality to the ICO System to the same level as
            it was immediately prior to, or should have been in the
            absence of (but without imposing any obligation on the
            Contractor in respect of unconnected defects or faults in the
            elements of the ICO System other than the ICONET Ground
            Facilities), such defect or fault and use its best efforts to
            avoid or minimise any interruption or risk of interruption to
            the functioning of the ICO System.

40.14 The rights and remedies of ICO under this clause 40 are in addition to,
and do not limit, any other rights and remedies ICO may have. In particular,
ICO's rights under this Agreement arising out of fraud or such gross mistakes as
amount to fraud are not limited in point of time or by this clause.
Notwithstanding the time limits specified in clause 40.1, if ICO shall notify
the Contractor of a claim for breach of warranty under this clause 40 relating
to any latent defect in any of the Deliverables or other Works at any time
within five years after Acceptance Set 4 Completion Date for Acceptance Set 4
Deliverables and within five years after Acceptance Set 5 Completion Date for
Acceptance Set 5 Deliverables such claim shall be regarded as a claim properly
made under this clause.

40.15 The warranty provisions of this clause will not apply to the following:

            (a)   operations or maintenance of the Equipment or Software
                  by any person who has not been properly trained (except
                  any representatives nominated or authorised by the
                  Contractor or Sub-Contractors) or operations,
                  maintenance, repair and inspection of the Equipment or
                  Software carried out by any person other than in
                  accordance with manuals, documents and information
                  provided to ICO by the Contractor or any Sub-Contractor
                  or any representatives nominated or authorised by the
                  Contractor or Sub-Contractors;

            (b)   normal wear and tear;

            (c)   consumption of consumables (not earlier than the usual time
                  periods or usage patterns during which those consumables may
                  be expected to continue to perform);

            (d)   Equipment or Software that has been subject to alterations or
                  modifications not authorised by the Contractor or any
                  Sub-Contractor or any maintenance representatives nominated or
                  authorised by the Contractor or Sub-Contractors;

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            (e)   Equipment or Software failures that are associated directly
                  with ICO's failure to maintain the operational environment
                  specified by the Contractor; and

            (f)   the Deliverables required to be delivered under Annex 11 to
                  the Statement of Work to which this clause 40 shall apply save
                  to the extent specifically modified as set out therein.

40.16 The travelling wave tubes (TWTs) shall be free from defects in material
and workmanship under normal operating conditions within published ratings and
under normal use in accordance with the Contractor's operating instructions for
* hours of heater operation or 18 months from the date of shipment from the
Contractor, whichever occurs first. If any defect in material or workmanship is
found in the TWT under said conditions within said period, the Contractor will,
at ICO's discretion, either replace the TWT at the price to be calculated
according to the formula (1) below or refund to ICO the amount to be calculated
according to the formula (2) below (Pro-Rate Adjustment), provided that notice
of any such alleged defect shall be given in accordance with this clause 40.

            (1)   Replacement Price = Applicable Selling Price of the TWT when
                  the Order for the Replacement is Placed

                        x     Hours of Heater Operation
                              -------------------------
                              Warranted Hours

            (If the hours of TWT operation is less than five percent (5%) of the
            Warranted Hours, the Replacement Price shall be deemed zero (0)).

      (2)   Amount of Refund = Price of the TWT Paid by ICO

                        x     (Warranted Hours - Hours of Heater Operation)
                              ---------------------------------------------
                              Warranted Hours

            (If the hours of TWT operation is less than five percent (5%) of the
            Warranted Hours, the Amount of Refund shall be deemed equal to the
            Price of the TWT paid by ICO).

PART F - INTELLECTUAL PROPERTY RIGHTS

41    INTELLECTUAL PROPERTY RIGHTS AND CONFIDENTIALITY

41.1  ICO and the Contractor acknowledge that:

      (a)    NEC Team Intellectual Property is owned by the NEC Team member(s)
             generating such Intellectual Property Rights;

      (b)   ICO Intellectual Property is owned by ICO.

41.2 The Contractor hereby grants and shall procure the grant by the other
members of the NEC Team to ICO irrevocable worldwide non-exclusive paid-up
licences (with right to sub-licence) to use NEC Team Intellectual Property
(except for NEC Team Intellectual Property incorporated in Software, as provided
for in clause 41.3) incorporated by the NEC Team into the Deliverables delivered
by the Contractor solely for the purposes of operating or having operated in
accordance with the provisions of this Agreement the Deliverables in the ICO
System.

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

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41.3.1 The Contractor hereby grants and shall procure the grant by the other
members of the NEC Team to ICO irrevocable worldwide non-exclusive paid up
licences (with right to sub-licence) to run the object code versions of Software
solely for the purposes of operating or having operated in accordance with the
provisions of this Agreement the Deliverables delivered by the Contractor in the
ICO System.

41.3.2 The licences granted in or pursuant to clause 41.3.1 do not include any
right to translate, amend, modify or adapt such Software in source code form or
in object code form. Upon request the Contractor will, and will procure that the
other members of the NEC Team will, provide such interface information as ICO
may reasonably request in order to make other computer programs interoperable
with any of the Software. Compliance with this obligation shall also be deemed
to be compliance in respect of that Software with clause 4.1.(i).

41.3.3 ICO shall not make any copies of the Software except for the purpose of
operating the Deliverables in the ICO System or for archive or back up purposes.

41.3.4 The Software licensed under this Agreement may be delivered in an
inseparable package also containing other computer programs. In order to avoid
doubt ICO is not granted any licence to use such other computer programs.

41.3.5 ICO shall treat all Software and other computer programs included in any
inseparable package as confidential and subject to the provisions of clause
41.6.

41.3.6 For the avoidance of any doubt ICO receives no ownership interest in any
of the Software or other computer programs included in any inseparable package
or in each case in any of the Intellectual Property Rights thereto.

41.4.1 ICO hereby grants to the Contractor and agrees to grant to each of the
other members of the NEC Team irrevocable worldwide, non-exclusive licences with
right to sub-licence to use the ICO Intellectual Property for the purposes of
developing, supplying, manufacturing, installing, operating, upgrading and
expanding the Deliverables for ICO.

41.4.2 Without prejudice to the provisions of clause 41.6, ICO further agrees
not to assert any ICO Intellectual Property comprised in the Deliverables
against:

            (a)   the members of the NEC Team in respect of the development,
                  manufacture or sale of equipment or software incorporating any
                  ICO Intellectual Property comprised in the Deliverables; or

            (b)   the use by the members of the NEC Team or their third party
                  customers of equipment or software acquired directly or
                  indirectly from the members of the NEC Team incorporating any
                  ICO Intellectual Property comprised in the Deliverables other
                  than in or in conjunction with Satellite Based Communications
                  Systems; or

            (c)   the use by the members of the NEC Team or their third
                  party customers of equipment or software acquired
                  directly or indirectly from the members of the NEC Team
                  incorporating any ICO Intellectual Property (other than
                  ICO Intellectual Property the subject of a patent or
                  patent application) comprised in the Deliverables in or
                  in conjunction with Satellite Based Communications
                  Systems:

                 (i)    where such ICO Intellectual Property is comprised in the
                        system areas not identified as Key Features, after the
                        Acceptance Set 4 Completion Date; and

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                 (ii)   where such ICO Intellectual Property is comprised in the
                        system areas identified as Key Features after 1st
                        January 2002,

            provided that:

                 (i)    if any third party not being a member of the NEC Team
                        receiving the benefit of the provisions of this clause
                        41.4.2 asserts any Intellectual Property Rights against
                        ICO, then ICO reserves the right to assert ICO
                        Intellectual Property against that party; and

                 (ii)   if any NEC Team member asserts any Intellectual Property
                        Rights other than in respect of a breach of clause 41,
                        then ICO reserves the right to assert ICO Intellectual
                        Property against that NEC Team member.

41.4.3 For the avoidance of doubt, nothing in clauses 41.4.1 and 41.4.2 shall be
construed as granting any licence under ICO patents to any third party customers
of any NEC Team member(s) to use such equipment.

41.5.1 The Contractor hereby undertakes that it will not and agrees to procure
that the other members of the NEC Team will not either alone or acting together
make available directly or indirectly for commercial use features which are new
and developed by or at the direction of the members of the NEC Team under this
Agreement in the system areas identified as Key Features to any other operator
of Satellite Based Communications Systems until 1st January 2002 without the
express written consent of ICO provided always that nothing shall restrict the
members of the NEC Team either alone or acting together from making available
directly or indirectly for commercial use at any time by any person features
which are the same as or substantially similar to the features which are new and
developed by or at the direction of the members of the NEC Team under this
Agreement in the system areas identified as Key Features where such features are
the result of work done independently of the work done under this Agreement or
from exploiting NEC Team Intellectual Property generated prior to the date of
this Agreement and without otherwise breaching the terms of this Agreement.

41.5.2 For the avoidance of doubt the fact that work done independently of the
work done under this Agreement results in a notification under clause 9.4 to ICO
and a related change under clause 9 does not bring such work within the scope of
the restrictions on making available directly or indirectly for commercial use
features which are new and developed by or at the direction of the members of
the NEC Team under this Agreement set out in clause 41.5.1.

41.6.1 ICO on the one hand and the Contractor on the other hand may provide
Confidential Information to each other during the course of this Agreement and
all such disclosures of such information will be treated as confidential by the
party receiving the disclosure and subject to the provisions of clause 41.6.3,
the receiving party shall maintain such information in confidence and shall not
use or disclose such information except as expressly authorised in this
Agreement. Notwithstanding the foregoing, where any information is disclosed
orally or is visually displayed, then such information shall be regarded as
Confidential Information if identified as Confidential at the time of disclosure
and the disclosing party within thirty days from initial disclosure specifically
identifies in writing to the receiving party such oral or visually displayed
information as being "Confidential Information".

41.6.2 Each party agrees to use the same care and discretion to avoid
unauthorised disclosure, publication or dissemination of Confidential
Information supplied by the other party and the unauthorised use thereof as the
receiving party uses with respect to similar information of its own, but in no
event, less than reasonable care. Each party further agrees that commercial
information designated as Confidential Information shall not be disclosed to any
third party without the express prior written consent of the disclosing party.
Should it become legally necessary for the receiving

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party to disclose to a third party certain of the Confidential Information
supplied by the other party, it shall be disclosed only to the extent required
by law or court of competent jurisdiction and to the extent permitted by law
after prior written notification to the other party of the requirement for
disclosure.

41.6.3 The obligations of confidentiality and restrictions on use specified in
this clause 41.6 shall not apply to any information that:

      (a)   is already in the possession of the receiving party without
            obligation of confidentiality at the time of disclosure;

      (b)   is independently developed by the receiving party or any of its
            affiliates or subcontractors without access to or any use of any of
            the Confidential Information as evidenced by appropriate documents;

      (c)   is or becomes publicly available without breach of this Agreement
            and without the fault of the receiving party or any of the
            affiliates or subcontractors; or

      (d) is lawfully received by the receiving party from a third party.

Specific information shall not be deemed to be in the possession of the
receiving party merely because it is embraced by more general information in the
receiving party's possession.

41.6.4 Each party shall use all reasonable endeavours, including inserting and
enforcing the appropriate contractual provisions in any agreements with any
subcontractors and by requiring the compliance by its employees with appropriate
obligations, to ensure the confidentiality of all Confidential Information
provided to it by the other party but so that nothing in this clause 41.6 shall
preclude any party from disclosing such information on such basis only for the
performance of and for the purposes contemplated by this Agreement to a third
party which has prior to receiving such information executed a confidentiality
agreement in favour of the receiving party and under which the receiving party
holds the benefit of such third party's undertakings on behalf of itself and the
party whose Confidential Information is so disclosed.

41.6.5 The confidentiality obligations in this clause 41.6 shall survive the
expiration or termination of this Agreement for whatever cause.

41.7 Subject to clause 41.9 if any member of the NEC Team is not the legal and
beneficial owner of any part of the Intellectual Property Rights which it
incorporates into the Deliverables but only has a right to use the same pursuant
to a licence then ICO's right to use the same shall be such as is permitted by
the licence granted by the owners thereof to the relevant member of the NEC Team
and in the event that such licence prevents or restricts ICO's use of any
functionality of the Deliverables in connection with the ICO System the
Contractor shall use, and shall procure that the relevant member of the NEC Team
shall use all reasonable endeavours so as to obtain at minimal cost from such
third party as owns such part of the Intellectual Property Rights the right for
ICO to use the same without prevention or restriction as to any functionality of
the Deliverables. Any costs reasonably incurred by the relevant member of the
NEC Team in this connection shall be borne by that member of the NEC Team. If it
shall not, or it appears likely that it will not, prove possible to secure
appropriate rights for ICO to use or incorporate any such third party rights in
the Deliverables in connection with the ICO System, the Contractor shall at its
own cost, procure that a suitable alternative method of meeting the requirements
of the Deliverables shall be produced.

41.8 For the avoidance of doubt the parties hereby agree that the provisions of
clause 8 of the IPC continue to apply to Intellectual Property Rights comprised
in the deliverables supplied under the IPC or reduced into practice in the work
done under the IPC and that notwithstanding any of the provisions of clause 8 of
the IPC the provisions of this clause 41 shall apply to all work done pursuant
to this Agreement in the development and supply of the Deliverables.

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41.9.1.1 ICO will indemnify each of the members of the NEC Team (including
Sub-Contractors or permitted sub-licensees of any member of the NEC Team)
against all claims, demands, actions, costs, expenses (including but not limited
to legal costs on a solicitor and client basis) and damages rising from or
incurred by reason of:

      (a) any infringement or alleged infringement of US Patent Nos. 5,415,368;
          5,439,190; 5,433,726 and 5,554,624 together with any continuations,
          divisions, re-issues, re-examinations and foreign counterparts thereof
          arising out of the manufacture, use, sale, exportation or importation
          of the Deliverables; or

      (b) any infringement or alleged infringement of any other Intellectual
          Property Rights arising out of the manufacture, use, sale, exportation
          or importation of those features of the Deliverables specified by ICO
          in the functional objectives and requirements of the IGFR and the
          Statement of Work.

41.9.1.2 The Contractor shall promptly notify ICO if any claim or demand is made
or action brought against any of the members of the NEC Team (or any
Sub-Contractor or permitted sub-licensee of any member of the NEC Team) to which
clause 41.9.1.1 may apply. ICO shall at its own expense conduct any litigation
arising therefrom and all negotiations in association therewith and the members
of the NEC Team hereby agree to grant to ICO exclusive control of any such
litigation and negotiations.

41.9.1.3 The NEC Team shall at the request of ICO afford to ICO all reasonable
assistance for the purpose of contesting any claim or demand made or action
brought against any of the members of the NEC Team (or any Sub-Contractors or
permitted sub-licensees of any member of the NEC Team) to which clause 41.9.1.1
may apply. ICO shall reimburse any of the members of the NEC Team for all costs
and expenses (including legal expenses) incurred in so doing.

41.9.1.4 The Contractor shall not make any admissions which may be prejudicial
to the defence or settlement of any claim, demand or action for infringement or
alleged infringement of any Intellectual Property Rights to which clause
41.9.1.1 may apply.

41.9.1.5 If a claim or demand is made or action to which clause 41.9.1.1 may
apply or demand is made or brought ICO may at its own expense:

            (a)   procure a licence to use the relevant Intellectual Property
                  Rights on terms which are approved by the Contractor (such
                  approval not to be unreasonably withheld or delayed); or

            (b)   take such other action as the Contractor may agree (such
                  agreement not to be unreasonably withheld or delayed) as
                  appropriate to avoid or settle such claim, demand or action,

provided in each case, that ICO provides evidence reasonably satisfactory to the
Contractor that it has sufficient financial resources to meet any commitment
which it makes pursuant to this clause 41.9.1.5 on behalf of itself or any
member of the NEC Team.

41.9.2.1 The Contractor will indemnify ICO (including sub-contractors or
permitted sub-licensees of any member of ICO) against all claims, demands,
actions, costs, expenses (including but not limited to legal costs on a
solicitor and client basis) and damages arising from or incurred by reason of
any infringement or alleged infringement of any Intellectual Property Rights
relating to the use, possession, importation or exportation of the Deliverables
in connection with the ICO System by ICO or its sub-licensees save where such
claims, demands, actions, costs, expenses, losses or damages are the subject of
ICO's indemnity to the members of the NEC Team (and any Sub-Contractors or
permitted sub-licensees of the NEC Team) under clause 41.9.1.

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41.9.2.2 ICO shall promptly notify the Contractor if any claim or demand is made
or action brought against ICO to which clause 41.9.2.1 may apply. The relevant
member of the NEC Team shall at its own expense conduct any litigation arising
therefrom and all negotiations in association therewith and ICO hereby agrees to
grant to the NEC Team exclusive control of any such litigation and negotiations.

41.9.2.3 ICO shall at the request of the relevant member of the NEC Team afford
to the NEC Team member all reasonable assistance for the purpose of contesting
any claim or demand made or action brought against ICO to which clause 41.9.2.1
may apply. The Contractor shall reimburse ICO for all costs and expenses
(including legal expenses) incurred in so doing.

41.9.2.4 ICO shall not make any admissions which may be prejudicial to the
defence or settlement of any claim, demand or action for infringement or alleged
infringement of any Intellectual Property Rights to which clause 41.9.2.1 may
apply.

41.9.2.5 If a claim or demand is made or action to which clause 41.9.2.1 may
apply or demand is made or brought, the relevant NEC Team member may at its own
expense:

      (a)   procure a licence to use the relevant Intellectual Property Rights
            on terms which are approved by ICO (such approval not to be
            unreasonably withheld or delayed); or

      (b)   take such other action as ICO may agree (such agreement not to be
            unreasonably withheld or delayed) as appropriate to avoid or settle
            such claim, demand or action,

provided in each case that the NEC Team member provides evidence reasonably
satisfactory to ICO that it has sufficient financial resources to meet any
commitment which it makes pursuant to this clause 41.9.2.5 on behalf of itself.

41.9.2.6 The foregoing provisions of clause 41.9.2 shall not apply insofar as
any such claim demand or action is in respect of:

      (a)   the use by or on behalf of ICO or its sub-licensees of the
            Deliverables in combination with products services software or data
            not described in IGFR, the Statement of Work and the High Level
            System Description and not supplied by the NEC Team under this
            Agreement; or

      (b)   the alteration of any of the Deliverables otherwise than by a member
            of the NEC Team under this Agreement.

41.9.2.7 The members of the NEC Team shall notify ICO in writing should any of
them become aware of reasonable grounds to believe that the use of any of the
Deliverables with other products or services (not being Deliverables) with which
the NEC Team is aware that ICO will use the Deliverables may infringe the
Intellectual Property Rights of any third party.

41.9.3.1 Save as provided in clause 49.1.3.2, in no event shall:

      (a)   the NEC Team's entire liability to ICO (or any permitted
            sub-licensees) under clause 41.9; or

      (b)   ICO's entire liability to the members of the NEC Team (or any
            Sub-Contractor or permitted sub-licensee of any NEC Team member)
            under clause 41.9,

exceed $75,000,000 and the existence of one or more claims or lawsuits within
this clause 41.9 shall not extend this amount, and in no event shall the NEC
Team or ICO be liable for incidental, special or

                                       54
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consequential damages incurred by the other save and insofar as they are
included in any claim by a third party for which ICO or the NEC Team is
indemnified under this clause 41.9.

41.9.3.2 The liability of ICO to the members of the NEC Team (or any
Sub-Contractors or permitted sub-licensees of any member of the NEC Team) under
clause 41.9.1.1(a) in respect of any claim against such party based upon US
Patent Nos. 5,415,368; 5,439,190; 5,433,726 and 5,554,624 or any continuations,
divisions, re-issues, re-examinations and foreign counterparts thereof shall be
unlimited.

41.9.3.3 Notwithstanding any other provisions in this Agreement, this clause
41.9 states the entire liability between ICO on the one hand and the Contractor
and the other members of the NEC Team on the other with regard to the
infringement of any Intellectual Property Rights in connection with the use of
the Deliverables in connection with the ICO System. For the avoidance of doubt
therefore wording appearing elsewhere in this Agreement relating to compliance
with laws, regulations and all similar terms shall not apply in respect of any
infringement or alleged infringement by the NEC Team of Intellectual Property
Rights of a third party or any related matters (including, without limitation,
clauses 4.1(g), 4.1(h), 4.1(n), 6.1(c), 6.1(d) and 64).

41.10 The provisions of this clause 41 shall (save in respect of clause 54)
prevail over any other provisions relating to Intellectual Property Rights
appearing elsewhere in this Agreement.

[42]  NOT USED.

[43]  NOT USED.

PART G - CONTINUOUS SUPPORT AND OPTIONS

44    MANUALS AND TECHNICAL DIAGRAMS

The Contractor is required to produce and submit to ICO those operations and
maintenance manuals, instruction manuals, technical diagrams, technical drawings
and all other documents set out in Annex 6 of the Statement of Work.

45.   TRAINING

The Works shall include training and instruction for ICO Staff in accordance
with Annex 5 of the Statement of Work so as to enable ICO Staff to operate all
functions of, and to maintain, the ICONET Ground Facilities The completion of
the Works by the Contractor in respect of this clause 45 is, for all purposes of
this Agreement, dependent upon the parties jointly establishing an effective
means to enable the Contractor to implement this element of the Works, based
upon the provisions of Annex 5 of the Statement of Work.

46    OPTIONS, SUPPORT SERVICES AND FUTURE SUPPLIES

46.1 The Contractor shall, and shall ensure that Sub-Contractors shall, provide
to ICO at ICO's option, at the specified prices (or where none has been fixed,
at fair and reasonable prices which in no event exceed the prices paid for
comparable items and services to be delivered under this Agreement) as
determined in accordance with Schedule 9 under this Agreement:

            (a)   the items of Equipment and the related Works described as the
                  Options specified in Annex 1 of the Statement of Work;

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<PAGE>   2414
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            (b)   further supplies of the Equipment for a period to the end of
                  2010 with extended availability subject to clause 46.4 and
                  46.5, at ICO's option, for an additional period of 5 years
                  commencing on 1 January 2011;

            (c)   further supplies of Spares for a period to the end of 2015
                  with extended availability subject to clauses 46.4 and 46.5,
                  at ICO's option, for an additional period of 5 years
                  commencing on 1 January 2016;

            (d)   maintenance and support for the Software for a period to the
                  end of 2015 with extended availability, at ICO's option, for
                  an additional period of 5 years commencing on 1 January 2016;

            (e)   the availability of skills and resources for a period to
                  the end of 2010 with extended availability, at ICO's
                  option, for an additional period of 5 years commencing
                  on 1 January 2011 for the provision of services to
                  support further capacity and/or functional enhancements
                  to the ICONET Ground Facilities or the ICO System,
                  including the provision of system integration and
                  programme management services;

            (f)   the availability of skills and resources for a period to the
                  end of 2015 with extended availability, at ICO's option, for
                  an additional period of 5 years commencing on 1st January 2016
                  for the ongoing operations and maintenance support, including
                  consultative technical advice in relation to the Deliverables
                  furnished under this Agreement;

            (g)   the availability of functional enhancements to the ICONET
                  Ground Facilities or for the ICO System to deliver
                  functionalities similar to those available in cellular
                  communications systems, within timeframes to enable ICO to be
                  competitive with such cellular communications systems;

            (h)   assistance and co-operation in the identification, development
                  and implementation of future ICO System specific
                  functionalities; and

            (i)   the Contractor should use its reasonable endeavours to obtain
                  similar guarantees from its suppliers and Sub-Contractors for
                  Equipment and Spares as have been supplied to the Contractor.

The options to extend the availability periods referred to in clauses 46.1(c),
(d), (e) and (f) may be exercised only if the option to extend the availability
period referred to in clause 46.1 (b) is exercised by ICO. ICO shall notify the
Contractor in writing of its exercise of the options to extend the availability
periods referred to in clauses 46.1 (b) to (f) at least one year prior to the
expiry of the original period.

46.2 This clause shall in no way bind ICO to order any particular quantity of
Equipment, Spares or services from the Contractor. The Contractor acknowledges
and agrees that ICO may, if ICO and a Sub Contractor so agree, enter into
separate contracts for the provision of operations and maintenance support and
advice.

46.3 The Contractor shall within 24 months of the date of this Agreement provide
ICO with a list of alternate manufacturers and suppliers, insofar as they exist,
for the Equipment, Software and Spares (detailing as a minimum the name and
address of the alternate source and the model or part numbers of the Equipment,
Software and Spares and the alternate source to which they refer) supplied by
each Sub-Contractor. The Contractor shall update this list once every 12 months.
The use of Equipment, Software or Spares from any supplier or manufacturer,
provided that they comply with the information provided by the Contractor, shall
not affect any warranties given by the Contractor under this Agreement.

                                       56
<PAGE>   2415
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46.4 If during the extended availability periods specified in clauses 46.1(b) or
(c) any member of the NEC Team, the affiliates of any member of the NEC Team, or
their direct sub-contractors intend to discontinue the manufacture of Equipment
or Spares the Contractor shall forthwith give 9 months' written notice to ICO of
such intention and afford ICO the opportunity (which shall be exercised within 6
months of receiving such notification) of ordering such quantities of Equipment
or Spares at prices determined in accordance with 46.1, as ICO shall reasonably
require and the Contractor shall procure the supply of such quantities at the
prices so determined. Alternatively, the parties may agree within the said
period of 6 months that the Contractor will sell or license to ICO, or procure
the sale and licence of, such drawings, patterns, specifications and other
information as ICO shall require to enable it to make or have made such
Equipment or Spares.

46.5 The Contractor shall take all reasonable efforts to ensure the continued
availability throughout the extended availability periods specified in clause
46.1(b) and (c) of Equipment and Spares from the NEC Team members, the
affiliates of any member of the NEC Team, and their direct Sub-Contractors. In
addition to the notification required under clause 46.4, the Contractor shall
inform ICO, as soon as it can reasonably be established, that Equipment and
Spares provided by the NEC Team members, the affiliates of any member of the NEC
Team, or its direct Sub-Contractors are becoming obsolescent and shall work with
ICO to minimise the input of such obsolescence on the ICONET Ground Facilities
and the ICO System, including proposals for the migration to newer or alternate
technologies.

46.6 If during the period specified in clauses 46.1(b), (c) and (d), the
Contractor or any Sub-Contractor (in the absence of agreement as aforesaid)
either:

            (a)   fails to make available to ICO with reasonable despatch all
                  such Equipment, Spares or Software as ICO shall require; or

            (b)   shall suspend payment of its debts generally, seek protection
                  from its creditors or otherwise enter into any form of
                  insolvency or bankruptcy proceeding (however described) or any
                  of its creditors shall seize any of its assets (whether under
                  any security interest or otherwise) or any moneys owned by it
                  shall become due for payment by reason of acceleration or
                  default on its part or its shareholders shall take steps or
                  pass any resolutions to wind up (otherwise than in connection
                  with a solvent reconstruction or amalgamation previously
                  approved by ICO or any analogous thing by whatever name it is
                  known, shall happen in any jurisdiction.

then the Contractor shall so far as he is legally entitled so to do and, if so
required by ICO as soon as reasonably practicable, deliver to ICO free of charge
such drawings, patterns, specifications and other information as are referred to
in clause 46.4 (to the extent that the same are derived from the person to whom
the circumstances referred to in (a) or (b) above apply, or where the
circumstances apply to the Contractor, all such items of the Contractor and all
of the Sub-Contractors) and which ICO shall be entitled to retain for such time
only as is necessary for the exercise by ICO of its rights under this clause and
which if the Contractor so requires shall be returned by ICO to the Contractor
in good order and condition (fair wear and tear excepted) and at ICO's costs and
expense.

46.7 If ICO shall exercise its right under clause 46.6 the Contractor shall also
grant or procure the grant to ICO without payment of any royalty or charge full
right and liberty to make or have made Equipment or Spares as aforesaid and for
such purposes only to use, make and have made copies of all drawings, patterns,
specifications and other information supplied by the Contractor to ICO pursuant
to this Agreement.

46.8 ICO undertakes for itself and on behalf of ICO Staff that all drawings,
patterns, specifications and other information obtained from the Contractor
under this clause shall be kept confidential and will not be divulged except to
such persons as it may be necessary to divulge the same to, for the purpose of
making or having made Equipment or Spares.

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<PAGE>   2416
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46.9 If the Contractor does not provide Equipment or Spares, ICO shall have the
right to obtain such Equipment or Spares directly from Sub-Contractors or any
other supplier and any additional cost incurred by ICO shall be recoverable from
the Contractor.

47    CONSUMABLE SUPPLIES

47.1 The Contractor shall before shipment of any of the Deliverables or any
components used therein supply a list of specifications for consumables required
in the operation of the ICONET Ground Facilities. This list shall be updated no
later than 3 months before the Acceptance Set 1 Handover Date.

47.2 ICO reserves the right to procure consumables to be used in and suitable
for the Deliverables that are in accordance with the specifications that have
been provided by the Contractor from such sources as ICO may deem appropriate.
Such procurement from a source other than the Contractor shall not invalidate
any rights of ICO under this Agreement.

47.3 If the Contractor fails to supply or update the specification list referred
to in clause 47.1, and the consumables procured by ICO for use in the operation
of the ICONET Ground Facilities causes a degradation or interruption in all or
any part of its operation the Contractor shall not be relieved of its warranty
obligations. In addition the Contractor shall reimburse ICO for the costs
incurred by ICO in ascertaining the appropriate specification to be applied for
any consumable.

48    ATTACHMENTS TO THE EQUIPMENT

48.1 Without prejudice to clause 47, ICO shall have the right to attach to the
Equipment any equipment not supplied by the Contractor (the "Attachment").

48.2 If ICO notifies the Contractor in writing at least thirty days before it
proposes to make an Attachment the Contractor shall within thirty days of the
receipt of ICO's notice, respond to ICO with its consent to or rejection of the
proposed Attachment. If the Contractor notifies ICO of its consent to such
Attachment, then clause 48.4 will apply.

48.3 If the Contractor receives a notification under clause 48.2 it may give a
notice of rejection. Any notice of rejection shall be in writing and set out, in
the Contractor's reasonable judgement in all the circumstances, the possible
effects of the Attachments on the Deliverables and why the making of the
Attachment to the Equipment would or can reasonably be expected adversely to
affect the ICO System. A failure by the Contractor to respond to ICO within such
thirty day period shall be deemed to be consent.

48.4 Clauses 4 and 40 shall continue to apply to the Equipment (but not to the
Attachment) if the criteria in either of clause 48.2 or clause 48.3 are met.

48.5 If the criteria in either of clause 48.2 or clause 48.3 are not met, then
the Contractor shall be relieved of its obligations under clauses 4 and 40 to
the extent that it can demonstrate that such Deliverables are adversely affected
by the Attachment.

[49]  NOT USED.

PART H - GENERAL

50    SURVIVAL OF CERTAIN PROVISIONS

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<PAGE>   2417
Final Version - Change Order No 25

50.1 Following the termination of this Agreement for any reason whatsoever, the
following clauses shall survive in full force and effect, without limit in point
of time:

        clause 4       (Primary Obligation of Contractor and Warranties)
        clause 15.1    (Price)
        clause 17      (Payment of Reimbursable Costs)
        clause 18      (Liquidated Damages)
        clause 30      (Ownership)
        clause 40      (Warranty)
        clause 41      (Intellectual Property Rights and Confidentiality)
        clause 51      (Contractor's Liability for Damages or Breach)
        clause 52      (ICo's Liability for Damages or Breach)
        clause 54      (Consequences of Termination)
        clause 62      (Law and Jurisdiction)
        clause 66      (Agent for Service)
        clause 72      (Entire Agreement)

51    CONTRACTOR'S LIABILITY FOR DAMAGES OR BREACH

51.1 In the event that any breach of this Agreement or act or omission by the
Contractor or any of its Sub-Contractors or any of their respective affiliated
undertakings or the employees or agents of any of them in the performance of
their duties in connection with this Agreement:

      (a)   causes or results in physical damage to or loss of any tangible
            property of ICO or of any ICO Staff or third parties; and/or

      (b)   causes or results in death or bodily injury to any ICO Staff or to
            third parties,

the Contractor shall indemnify ICO against all ICO's liabilities and costs
resulting therefrom or arising in connection with the same.

51.2 If and insofar as any breach by the Contractor of this Agreement (including
the inadequate performance or the non-performance of any of its obligations
hereunder) shall result in any losses, damages, costs or liabilities for ICO
(other than any physical damage or loss of tangible property as described in
clause 51.1), the Contractor shall, subject always to clause 51.3, indemnify ICO
against any liabilities and costs of ICO resulting therefrom, provided that the
total liabilities of the Contractor to ICO in respect of the design,
development, creation, delivery, installation or provision of any of the
Deliverables or arising from or in relation to any aspect of the ICO System
(whether under this indemnity or for breach of this Agreement or for negligence
or of whatsoever nature), including any liquidated damages paid or payable under
clause 18.1 but excluding any liabilities indemnified or to be indemnified under
clauses 41 or 51.1, shall not exceed in the aggregate 31% of the Price as the
same shall from time to time be adjusted in accordance with this Agreement.

51.3 Except in the circumstances described in clause 51.1(b), the Contractor
shall have no liability whatsoever to ICO for indirect, consequential, revenue
or other financial losses whether arising from breach of this Agreement or
negligence or otherwise (including for the avoidance of doubt any liability
which ICO may have to any Site Operators)

52    ICO'S LIABILITY FOR DAMAGES OR BREACH

52.1 In the event that any breach of this Agreement or act or omission by ICO or
any member of ICO Staff in the performance of their duties in connection with
this Agreement:

                                       59
<PAGE>   2418
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      (a)   causes physical damage to or loss of any tangible property of the
            Contractor or any of its Sub-Contractors or any of their respective
            affiliated undertakings or the employees or agents or any of them or
            of their staff or third parties; and/or

      (b)   causes death or bodily injury to any member of their staff or to
            third parties,

ICO shall indemnify the Contractor against all the Contractor's liabilities and
costs resulting therefrom or arising in connection with the same excluding any
indirect, consequential, revenue or other financial losses.

52.2 ICO will ensure that each of its agreements with Site Operators excludes or
limits, to the fullest extent permitted by the applicable law, any liability
which the Contractor or any other member of the NEC Team might otherwise have to
any Site Operator as a result of the incomplete performance or the
non-performance by the Contractor or any other member of the NEC Team of any
obligation assumed hereunder, except if and insofar as such liability may be in
relation to physical damage to or loss of tangible property, or death of or
bodily injury to any person.

52.3 In the event that a Site Operator shall bring a claim against the
Contractor or any other member of the NEC Team as a result of the incomplete
performance or non-performance by the Contractor or any other member of the NEC
Team of any of the obligations hereunder (the "claim"), ICO shall indemnify the
Contractor (for its own benefit or on behalf of the relevant member of the NEC
Team as the case may be) for any liabilities and costs directly resulting
therefrom, provided that:-

      (a)   ICO shall not be liable to indemnify the Contractor or any other
            member of the NEC Team under this Clause 52.3 in respect of any
            claim for physical damage to or loss of tangible property, or death
            or bodily injury to any person; and

      (b)   the Contractor shall procure that in respect of all claims
            made by any of the Site Operators against the Contractor or
            any other member of the NEC Team as referred to in this
            clause, the relevant member of the NEC Team against whom the
            claim is made shall bear in aggregate * in each
            period of 12 months commencing on the 3rd March in each year,
            or in the case of Ericsson Limited * in aggregate in
            each such period, of claims arising during the relevant period
            (other than any amounts claimed in respect of any indirect,
            consequential, revenue or other financial loss or expense); and

      (c)   the Contractor shall procure that in respect of all those
            claims which are in respect of any indirect, consequential,
            revenue or other financial loss or expense made by any of the
            Site Operators against the Contractor or any other member of
            the NEC Team as referred to in this clause, the relevant
            member of the NEC Team against whom the claim is made shall in
            the period of six months after the date of execution of this
            Agreement bear the first * in aggregate for all
            such claims arising during the relevant period without
            recourse to ICO and, in each period of 12 months commencing on
            the 3rd September thereafter, bear the first * in
            aggregate for all such claims arising during the relevant
            period.

      (d)   ICO shall not be required to pay any amount by way of
            indemnity under this  clause in respect of any particular claim
            in the event that the Contractor or any Sub-Contractor shall
            have, in respect of the events or circumstances giving rise to
            that claim, acted unlawfully, fraudulently, willfully in breach
            of any of the obligations undertaken by the Contractor in this
            Agreement (whether or not binding on such Sub-Contractor) or
            negligently (as such expressions would be interpreted in the
            courts of England under English law)

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

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ICO's indemnification of the Contractor or any other member of the NEC Team in
respect of any claim under this clause 52.3 shall be without prejudice to such
rights as ICO may have against the Contractor under this Agreement. The parties
shall use reasonable efforts to replace ICO's responsibility to indemnify the
Contractor and any other member of the NEC Team with mutually satisfactory
insurance arrangements as soon as possible.

52.4 ICO shall have sole conduct of the defence of any such claim as is referred
to in clause 52.3 on behalf of the Contractor unless either ICO shall fail
reasonably and diligently to defend the same or the Contractor shall reasonably
apprehend that one of the events referred to in clause 56.1 is about to arise in
relation to ICO. neither ICO nor the Contractor shall admit liability or
otherwise settle or compromise any such claim without the prior consent of the
other (such consent not to be unreasonably withheld). If the Contractor wishes
any claim which is the subject of this clause to be settled or compromised on
terms which ICO is not willing to settle or compromise on (including where ICO
is prepared to settle or compromise on terms which the Contractor finds
unsatisfactory), then if ICO shall pay to the Contractor the sum which it was
willing to pay to the Site Operator to settle or compromise the claim ICO shall
be released and discharged from all further liability in respect of such claim.
The Contractor shall notify ICO promptly in the event of such claim being made
against it. ICO shall keep the Contractor informed of its progress on a timely
basis and, subject to the provisions of this sub-clause, keep the Contractor
indemnified against the consequences of its conduct of the claim.

53    ETHICAL STANDARDS

The Contractor undertakes to act, and to procure that its Sub-Contractors and
its or their employees or agents act in any business dealings in any way
relating to its arrangements with ICO, including the provision or procurement of
the provision of any services or goods pursuant to this Agreement, in an honest
and ethical manner and without resort to any unethical business practices,
including but not limited to bribery, corruption, extortion or the exertion of
improper or undue influence.

54    CONSEQUENCES OF TERMINATION

54.1 Upon termination of this Agreement, the Contractor shall, and shall procure
that each of the Sub-Contractors shall, deliver up to ICO all property of
whatsoever nature belonging to ICO or any ICO Staff which may be in its
possession or under its control or the control of any of their respective group
companies and affiliates and, so far as the same are employed in connection with
this Agreement, any of their Sub-Contractors, agents or advisers. The preceding
provisions shall apply mutatis mutandis to the Contractor and the
Sub-Contractors.

54.2 If this Agreement shall be terminated at any time ICO and any ICO Staff are
hereby and shall remain, notwithstanding such termination, fully authorised upon
reasonable prior notice to enter on to the Contractor's and its Sub-Contractor's
premises in order to dismantle and remove all property belonging to ICO or any
of its affiliates or any ICO Staff and the Contractor shall co-operate with and
assist such persons in such task and shall procure access (on reasonable prior
notice and at reasonable times) for such ICO Staff from, and place a parallel
obligation upon, its Sub-Contractors. ICO shall use all reasonable endeavours to
ensure that no unnecessary disruption is caused to the Contractor or such
Sub-Contractor by reason of the removal of ICO's property. The preceding
provisions shall apply mutatis mutandis to the Contractor and the
Sub-Contractors in relation to the Sites and the Site Operators.

54.3 If this Agreement shall be terminated by ICO pursuant to clauses 56.1,
56.2(a) or (b) the Contractor shall, and shall procure that all the
Sub-Contractors shall:

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      (a)   deliver up to ICO all the Deliverables in their then current state
            and all materials which have been purchased for inclusion in the
            Deliverables;

      (b)   make available to ICO without cost all designs, drawings and plans
            which have been prepared in connection with or intended for use in
            relation to the Works;

      (c)   in relation to computer programs which are not new and have not been
            developed by or for the Contractor or the relevant Sub-Contractor
            under this or in connection with this Agreement, the necessary
            interfaces and licences to use such computer programs on the basis
            referred to in clause 54.4; and

      (d)   in relation to any other computer programs (including any which are
            new and/or developed by or for the Contractor or the relevant
            Sub-Contractor under or in connection with this Agreement) all
            source codes and object code versions thereof,

provided that if the Contractor shall be subject to any contractual restriction
preventing it from making the items referred to in (c) and (d) available to ICO,
the Contractor shall procure for ICO free access to the same for the purposes
referred to in clause 54.4. ICO shall treat all materials delivered up pursuant
to this clause as Confidential Information in accordance with the provisions of
clause 41.6.

For the avoidance of doubt any incomplete equipment, designs, drawings, computer
programs or plans prepared under or in connection with this Agreement shall be a
Deliverable.

54.4 In the circumstances referred to in clause 54.3, the Contractor shall
grant, and shall procure that each of the other members of the NEC Team and its
and their Sub-Contractors shall grant, to ICO sufficient worldwide, perpetual,
irrevocable, royalty free licences (including rights for ICO to grant
sub-licenses) under any NEC Team Intellectual Property Rights which are
comprised in or which have been selected and identified for inclusion in any of
the Deliverables acquired by ICO pursuant to clause 54.3 to enable ICO to
complete the development, implementation and construction of the ICONET Ground
Facilities and such licences shall permit ICO, either itself or through any
third parties, to make any modifications thereto as are considered desirable in
order to enable ICO to complete the ICO System and bring the same into use. ICO
shall treat any Confidential Information included in any such Intellectual
Property Rights in accordance with this Agreement.

54.5 If this Agreement shall be terminated by ICO pursuant to clauses 56.2(c) or
(d), the provisions of clauses 54.3 and 54.4 shall apply save that:

      (a)   ICO shall, to the extent that the total sums paid by it in
            respect of Instalments of the Price (for the purpose of which
            calculation of all Financed Invoices shall be deemed to have
            been paid in full by ICO) are less than the total cost of
            those of the Deliverables which ICO has either received
            delivery of prior to the date of termination or which it shall
            take delivery of following such date, pay to the Contractor
            the amount of any shortfall (and where any Deliverable which
            ICO shall receive as a consequence is incomplete, the cost of
            the same shall be agreed between the parties);

      (b)   the Contractor shall, to the extent that the total sums paid
            to it in respect of Instalments of the Price (for the purpose
            of which calculation all Financed Invoices shall be deemed to
            have been paid in full by ICO) are greater than the total cost
            of those of the Deliverables which ICO has either received
            delivery of prior to the date of termination or which it shall
            take delivery of following such date, pay to ICO the amount of
            any surplus;

      (c)   the licences referred to in clause 54.4 shall be limited to the
            extent required to permit ICO to complete the development,
            implementation and construction of the ICONET Ground Facilities and
            such licences shall permit ICO, either itself or through any third
            parties, to make any modifications thereto as are required in order
            to enable ICO to complete the ICO System and bring the same into
            use,

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but if ICO shall not require to take delivery of any of the incomplete
Deliverables or the materials purchased therefor, it may by notice to the
Contractor exclude the same in which case the foregoing provisions of this
clause 54.5 shall only apply to those Deliverables which ICO shall elect to
receive.

54.6 If ICO shall terminate this Agreement for convenience in accordance with
clause 56.3, the Contractor shall following receipt of such notice of
termination take the following actions:

      (a)   to the extent specified in the notice of termination, stop
            work under this Agreement on or as soon as reasonable
            practicable after the date of receipt of such notice and
            without delay take all necessary steps to wind down production
            and avoid incurring unnecessary further expense, except to the
            extent required to continue or complete those aspects of the
            Works which the notice of termination shall require to be
            continued or completed;

      (b)   place no further orders or sub-contracts for materials, services or
            facilities except as may be necessary for completion of those
            aspects of the Works which the notice of termination shall require
            to be continued or completed;

      (c)   terminate orders and sub-contracts to the extent that they relate to
            the performance of Works which the notice of termination shall not
            require to be continued or completed;

      (d)   settle all outstanding liabilities and

      (e)   take such action as may be necessary, or as ICO may reasonably
            direct, for the protection and preservation of the property related
            to this Agreement which is in the possession of the Contractor or
            any Sub-Contractor and in which ICO has or may acquire an interest
            pursuant to the provisions of clause 54; and

      (f)   to the extent specified in the notice of termination, continue work
            under this Agreement.

54.7 The Contractor shall promptly following receipt of a notice of termination
given under clause 56.3 take all reasonable steps to minimise, limit and
quantify the costs and expenses incurred by the Contractor in connection with
the performance of its obligations under this Agreement and shall terminate any
sub-contracts, in so far as possible, on normal commercial terms (which may
include an allowance for the sub-contractors' proper commercial profit
determined in accordance with common practice in the industry concerned).

54.8 Within 60 days after determination of the cost of all Works terminated, the
Contractor shall submit to ICO its invoice in respect of the termination
Payment, and within 60 days after delivery by the Contractor of an invoice in
respect of the termination Payment, ICO shall pay the outstanding amount
thereof, subject always to compliance by the Contractor with clauses 54.10 and
54.11. The Termination Payment shall be the aggregate sum consisting of the
Direct Costs of all work done to the date of actual termination of the Works,
whether or not completed, together with pre-payments which are non-refundable to
the Contractor, and the settlement and other costs connected with the
termination of orders and sub-contracts pursuant to clause 54.7 less the total
of all amounts already paid by ICO to the Contractor in respect of the Works for
the purpose of which calculation all Financed Invoices shall be deemed to have
been paid in full by ICO, including for the avoidance of doubt all costs which
have been paid pursuant to clause 15, adjusted by agreement between the parties
(failing which as may be determined in accordance with clauses 65 and 62) where
required to take account of any failure of the Contractor to comply with clause
54.6.

The term "Direct costs" as used herein includes only those costs set out in
clause 54.9 which have been posted to the Contractor's books of account in
accordance with its standard accounting practice for commercial contracts,
consistently applied. To the extent that the Direct Costs relate to the internal
labour costs and expenses (other than tax and social security or similar costs)
of the members of the NEC Team and their respective affiliated companies such
sum shall be subject to a mark-up not exceeding 22% of such costs and expenses.

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In no event shall the Termination Payment, when aggregated with the amounts
already paid or deemed to have been paid by ICO to the Contractor in respect of
the Works, exceed the Price.

54.9 For the purposes of this clause 54, "Direct Costs" comprise:

      (a)   the full salary, payroll taxes and standard benefits and other
            direct employment costs of those personnel employed by any member of
            the NEC Team or by any of their respective affiliated undertakings
            for that period during which they can demonstrate that they have
            been actively engaged in the Works;

      (b)   the reasonable cost of all materials purchased by the NEC Team
            reasonably necessarily and wholly and exclusively for the purposes
            of fulfilling the requirements of this Agreement;

      (c)   the reasonable and proper costs of Sub-Contractors employed by the
            NEC Team, where applicable, with the consent of ICO, necessarily for
            the purposes of fulfilling their obligations under this Agreement
            save to the extent such costs are taken into account pursuant to
            clause 54.7;

      (d)   the reasonable travelling and lodging costs of those members of the
            NEC Team's personnel who are assigned to work on a full time basis
            under this Agreement at locations outside the country of their usual
            employment and of those personnel whose travel is reasonably
            necessarily required for the purposes of implementing this
            Agreement;

      (e)   the office rental costs (apportioned by reference to the proportion
            of the floor area used by the Contractor exclusively for the
            purposes of this Agreement) associated with the Contractor
            maintaining a project office in the Hammersmith area or any
            replacement therefor during the currency of this Agreement; and

      (f)   the costs of delivering any items required to be delivered to ICO as
            referred to in clause 54.11.

but, for the avoidance of doubt, the following to the extent that they might
otherwise fall within any of the foregoing are excluded:

      (g)   all central overhead expenses including the costs of all support or
            liaison staff or staff whose principal activities are on matters
            other than this Agreement;

      (h)   office and equipment costs, depreciation, leasing and hire charges,
            any goods or materials of general application or for which there is
            use after the period of the Agreement, interest and like charges;

      (i)   licence fees, communications costs, other costs associated with the
            organisation and/or co-ordination of the NEC Team.

54.10 Payment of the Termination Payment shall be subject to the Contractor
justifying to ICO's reasonable satisfaction the amount of the costs and expenses
and any other adjustments so claimed and producing such evidence of such costs
and expenses as ICO may reasonably require. If ICO so requests, the Contractor
shall provide, and shall procure that any Sub-Contractors provide, sufficient
evidence to the external auditors of the Contractor (being a firm of independent
certified public accountants (or equivalent)) or, where such accountants are
unwilling to act in the capacity contemplated by this clause 54.10, another firm
of certified public accountants of international repute agreed between the
parties, to enable such accountants to certify to ICO that any and all costs and
expenses claimed by the Contractor from ICO in connection with the Termination
Payment have been properly incurred for the purposes of this Agreement and have
been properly computed. In the

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absence of such certification if so requested by ICO, ICO shall not be obliged
to pay any such amount claimed and, where such accountants certify a lesser sum
than that claimed by the Contractor, ICO shall be obliged to pay only such
lesser sum The accountants' fees for carrying out such certification shall be
borne by ICO.

If ICO disagrees with the amount of the Termination Payment claimed by the
Contractor, ICO shall pay so much of the amount claimed as is undisputed to the
Contractor within 30 days of receipt of the Contractor's invoice and the balance
shall be payable with 30 days after determination of the final amount due,
provided that if the amount in dispute shall exceed 25% of the Contractor's
claim ICO shall pay the disputed amount into the Escrow Account pending final
resolution of the amount of the Termination Payment.

54.11 Title to all complete Deliverables not previously delivered, any
incomplete Deliverable and any materials purchased for the purposes of and any
components which would have been incorporated into a Deliverable which is
incomplete at the date of a termination notice given under clause 56.3, shall,
upon payment in full of all amounts due hereunder, vest in ICO and the
Contractor shall deliver, and procure that any Sub-Contractor delivers, all such
items to ICO (who shall accept delivery). All such items of the Works which are
under the custody or control of the Contractor shall until delivery to ICO be
insured by the Contractor at its cost.

54.12 The Contractor shall, and shall procure that each of the members of the
NEC Team and its and their Sub-Contractors shall deliver up forthwith to ICO
upon payment by ICO of the Termination Payment payable to the Contractor under
this Agreement all the documentation, drawings, plans, and specifications
produced for the performance of this Agreement to the extent not previously
delivered. The Contractor shall, and shall procure that each of the members of
the NEC Team and their Sub-Contractors shall, upon written request of ICO, grant
to ICO and such persons as ICO shall nominate, those rights as referred to in
clause 54.4.

54.13 If it is reasonably feasible for the Contractor to utilise elsewhere and
within a reasonable period for their intended purposes any materials purchased
for the purposes of and any components which were to be incorporated into the
Deliverables which are incomplete at the date of termination under clause 56.3,
ICO shall have the right to reject delivery of such components and the inclusion
of the cost of the same in the Termination Payment.

54.14 The Contractor shall use reasonable efforts to place sub-contracts on
terms that will enable the Contractor to terminate the same in a manner
consistent with this clause.

55.   FORCE MAJEURE

55.1 Force majeure refers to events extrinsic to this Agreement that are beyond
the reasonable control of, and not attributable to negligence or other fault of,
the party relying on such events to excuse its failure to perform. The term:

      (a)   excludes strikes or other events caused by labour disputes between
            any member of the NEC Team (which for this purpose includes all
            corporate bodies under the control of the body corporate which
            ultimately directly or indirectly has control of the relevant member
            of the NEC Team) and their employees;

      (b)   excludes any event giving rise to the party which would otherwise
            seek to rely on such event being actually or prospectively unable to
            perform any financial obligation under this Agreement; but

      (c)   (subject to paragraph (b) above), includes changes in the laws and
            regulations as referred to in clauses 63.5 and 63.6.

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55.2 Any party whose ability to perform is affected by a force majeure event
shall take all reasonable steps to mitigate the impact of such event.

55.3 If the effect of a force majeure event is temporary, the party affected
shall, to the extent that the event of force majeure shall affect its ability to
perform its obligations under this Agreement, not be responsible for any
consequent delay, and any affected Top Level Milestone shall be extended
accordingly, if and only if notice of the event is given to the other party,
specifying in such notice that the affected party is treating the circumstances
as an event of force majeure, within ten (10) days after the event has come, or
should reasonably have come, to the affected party's attention.

Upon or following receipt of such a notice, the non-affected party shall, to the
extent that the event of force majeure affecting the other party shall affect
its own ability to perform its obligations under this Agreement, be entitled to
treat such circumstances as an event of force majeure of its own.

At the time of the notice of the occurrence of the event or as soon thereafter
as possible, the party affected shall inform the other party of the extent of
the delay expected as a result of the event and propose possible measures which
could be taken in order to minimise such delay. As soon as the circumstances
constituting force majeure shall have ceased to have effect, the obligations of
the affected party shall continue.

55.4 An event of force majeure shall not excuse the obligation to make payment
of any invoice which was properly issued by the other party prior to the
commencement of the event of force majeure.

56    TERMINATION

56.1 Without prejudice to any other rights or remedies which the relevant party
may possess, either party ("the terminating party") shall be entitled to
terminate this Agreement in its entirety in the event that the other party ("the
non-terminating party") shall suspend payment of its debts generally, seek
protection from its creditors or otherwise enter into any form of insolvency or
bankruptcy proceedings (howsoever described) or any of its creditors shall seize
any of its assets (whether under any security interest or otherwise) or any
moneys owed by it shall become due for payment by reason of acceleration or
default on the part of the non-terminating party or its shareholders shall take
steps or pass any resolutions to wind up (otherwise than in connection with a
solvent reconstruction or amalgamation previously approved by the
non-terminating party) or any analogous thing by whatever name it is known,
shall happen in any jurisdiction.

56.2 Without prejudice to any other rights or remedies which ICO may possess,
ICO shall be entitled, without liability to the Contractor in respect of such
termination (but without prejudice to any obligations or rights under this
Agreement expressed to survive termination) to terminate this Agreement in whole
at any time by service upon the Contractor of a written notice in accordance
with clause 59 if:

      (a)   the Contractor, the Principal Sub-Contractors, or any of their
            respective Sub-Contractors to whom any material aspects of the
            Works shall have been subcontracted shall without reasonable
            cause, suspend the carrying out of the Works before Acceptance
            Set 5 Completion Date in any material respect or to any
            material extent and the Contractor is unable to satisfy ICO
            that it is or will be able to complete all or any substantial
            aspect of the Works in accordance with the Top Level Milestone
            Schedule; or

      (b)   the Contractor shall be in breach of any of its material obligations
            under this Agreement; or

      (c)   a force majeure event (as defined in this Agreement) has or
            might reasonably be expected to have a permanent or
            unavoidable effect on the ability of the Contractor to provide
            to ICO by Acceptance Set 5 Completion Date (but without taking
            into account any adjustment which may be made to such date by
            reason of the force majeure

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<PAGE>   2425
Final Version - Change Order No 25

            event) the functionalities described in the IGFR across the complete
            ICONET Ground Facilities; or

      (d)   a force majeure event (as defined in this Agreement) either has the
            effect of severely constraining ICO from complying with the terms of
            this Agreement (save insofar as this Agreement creates any financial
            obligation on ICO) or clauses 63.5 or 63.6 apply,

and in any case falling under clauses 56.2(a) or 56.2(b) the Contractor (or, as
the case may be, the Principal Sub-Contractors, or any of their respective
Sub-Contractors to whom any material aspects of the Works shall have been
subcontracted) fails to remedy or procure the remedy of the same within a period
of 30 days (or such longer period as may have been specified in the notice)
after receipt of written notice from ICO to the Contractor, requiring such event
to be remedied and in any case falling under clauses 56.2(c) or 56.2(d) the
relevant force majeure event continues on the date the notice of termination
would take effect in accordance with clause 59 provided that ICO undertakes that
it will not exercise its right to terminate this Agreement if ICO shall not have
issued its Acceptance Set 5 Completion Certificate to the Contractor within 135
days after the Acceptance Set 5 Completion Date so long as there shall be no
other circumstances in existence at any time during that period permitting ICO
to terminate this Agreement

56.3 ICO shall be entitled, without liability to the Contractor in respect of
such termination other than to make such Termination Payment as may be payable
under clause 54 (and without prejudice to any obligations or rights under this
Agreement expressed to survive termination) to terminate this Agreement in whole
at any time for convenience by service upon the Contractor of a written notice
in accordance with clause 59 and may in its notice of termination require the
Contractor to continue or complete any aspect of the Works which shall then have
been commenced.

56.4 The Contractor shall be entitled to terminate this Agreement in whole at
any time by service upon ICO of a written notice in accordance with clause 59
if:

      (a)   the Contractor is owed any sum by ICO in excess of US$5,000,000
            which shall have fallen due for payment and be payable in accordance
            with the terms of this Agreement and ICO shall have acknowledged in
            writing by the Supervising Officer or any of its other officers or
            directors that any such sum is due and payable to the Contractor; or

      (b)   ICO shall have failed to pay into the Escrow Account any Disputed
            Amount (other than any disputed amount not exceeding US$1,000,000),

      and in either case

      (i)   the Contractor shall not itself be in any material respect in breach
            of its obligations under this Agreement, (such breach (if any) to
            have been notified by ICO to the Contractor in writing in sufficient
            detail to provide a proper understanding of ICO's reasons why it
            considers the Contractor to be in breach before the notice of
            termination would take effect in accordance with clause 59); and

      (ii)  ICO shall have failed before the notice of termination would take
            effect in accordance with clause 59 either to pay to the Contractor
            all overdue sums together with interest thereon calculated in
            accordance with clause 16 or to pay any Disputed Amounts into the
            Escrow Account.

56.5 Save as set out in clauses 56.1 and 56.4, the Contractor shall not be
entitled to terminate this Agreement for any reason and for so long as this
Agreement continues in effect (and notwithstanding that ICO may be permitted to
exercise rights of termination) the Contractor shall continue (for so long as
all of its obligations hereunder have not been suspended pursuant to clause 55)
diligently to perform its obligations hereunder.

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56.6 Termination of this Agreement shall be without prejudice to any antecedent
or accrued rights and liabilities of the parties. ICO shall have no
responsibility for the division amongst the members of the NEC Team of any sums
payable under this Agreement, including any sum paid in consequence of
termination of this Agreement, which shall be entirely a matter for the
Contractor.

57    WAIVER

A waiver of any breach of any provision hereof shall not be binding upon either
party unless made in writing but once so made shall, unless it is expressed to
be revocable, be irrevocable. No such waiver shall affect the rights of the
party not in breach with respect to any other or future breach of this
Agreement. No delay or failure by a party to exercise any of its rights, or time
or indulgence given by it before exercising any right or remedy under this
Agreement shall operate as a waiver of the same nor shall any single or partial
exercise of a right or remedy preclude any further exercise of the same or the
exercise of any other right or remedy.

58    AMENDMENTS

58.1 This Agreement (other than with respect to its scope pursuant to clause 9)
may not be modified except by written amendment signed by both the Supervising
Officer and the Contractor's Authorised Representative save that the address for
notices and the responsible authorised representatives of the parties may be
added to or changed from time to time by written notice to the other party.

58.2 Where in the course of the administration of this Agreement (otherwise than
under clauses 8 and 9) any communication is given or received which, if
implemented, would modify or affect the rights, responsibilities or obligations
of any party, then if such communication is given by ICO, the Contractor shall
ensure that such communication is approved in writing by the Supervising Officer
and if such communication is given by the Contractor, ICO shall ensure that such
communication is approved in writing by the Contractor's Authorised
Representative. In the absence of such approval the receiving party shall not be
entitled to rely on such communication as being binding on, and such
communication may not be binding on, the party giving the same.

59    COMMUNICATIONS AND NOTICES

59.1 All notices or other communications (except Deliverables delivered in
accordance with the Statement of Work), required to be given or served under or
in connection with this Agreement shall be in writing and shall be delivered in
the manner prescribed in clause 59.4 to the address of the party concerned given
in clause 59.2 and as the same may from time to time be amended in accordance
with clause 59.3.

59.2  For the purposes of clause 59.1:

ICO's details are:

In the case of a formal notice (including any notices of demand for payment or
termination) or any legal proceedings to be given to or served on ICO, the
original shall be sent to:

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ICO Global Communications Holdings BV
Drentestraat 20
1083 HK
Amsterdam
Netherlands

Facsimile: ( (+31) 20661 0654
Marked for the attention of the Company Secretary

and a copy thereof shall be sent at the same time to ICO Services Limited at the
address set out below.

ICO Global Communications Holdings BV
c/o ICO Services Limited
2 Chalkhill Road, London W6 8DW
England

Facsimile: (+44) 20 8600 1199
Marked for the attention of Gary Titzer

In the case of a formal notice (including any notices of demand for payment or
termination) or any legal proceedings to be given to or served on the
Contractor, the original shall be sent to:

NEC Corporation
7-1, Shiba 5-Chome,
Minato-Ku, Tokyo 108-8001
Japan

Facsimile: (+81) 3 3798 6782
Marked for the attention of the General Manager

and a copy thereof shall be sent at the same time to:

NEC Program Office
5th Floor Horatio House
77-85 Fulham Palace Road
Hammersmith
London W6 8JC

Facsimile: (+44) 20 8600 4290
Marked for the attention of Tadao Furukawa

All other communications to ICO referred to in this clause 59.1 shall be sent
to:

ICO Global Communications Holdings BV
c/o ICO Services Limited
2 Chalkhill Road
London W6 8DW
England

Facsimile: (+44) 20 8600 1199
Marked for the attention of Gary Titzer

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All other communications to NEC referred to in this clause 59.1 shall be sent
to:

NEC  Program Office
5th Floor Horatio House
77-85 Fulham Palace Road
Hammersmith
London W6 8JC
England

Facsimile: (+44) 20 8600 4290
Marked for the attention of Tadao Furukawa

59.3 Either party may from time to time amend its address and/or facsimile
number and/or the persons to whose attention notices or other communications or
copies thereof are to be given for the purposes of this clause 59 by giving
notice in writing to the other party.

59.4 For the purposes of clause 59.1 a notice or other communication shall be
either delivered personally or sent by registered or recorded delivery prepaid
first class post (or airmail if overseas), or by facsimile addressed to the
intended recipient thereof and any such notice or other communication shall take
effect:

         (a)  if delivered personally, at the time of its delivery; or

         (b)  if sent by registered or recorded delivery prepaid first class
              post (or airmail if overseas), at 10.00 am on the fifth working
              day following the time of posting (or in the case of airmail post,
              at 10.00 am on the seventh working day following the time of
              posting), and in proving such service it shall be sufficient to
              prove that the envelope containing the notice or other
              communication was properly addressed, stamped and posted; and

         (c)  if transmitted by facsimile, (and provided that the transmission
              record of the sender indicated delivery of all pages of the same
              to the relevant facsimile number), at 10.00 am falling on the
              first working day following the time of dispatch (which may, for
              the avoidance of doubt, be on the same working day as that on
              which it is despatched) subject to a copy of the notice or other
              communication being dispatched by post within 24 hours of the time
              of despatch of the facsimile.

For the purposes of this clause 59.4, a "working day" is a day on which
commercial banks are generally open for business in the location of the
recipient and reference to local time in such place. References to "time of
posting" and "time of despatch" are to the local time in the place where the
sender is located. In order to calculate elapsed time, the local time and day in
the intended place of receipt shall be determined from and by reference to the
time difference between that place and the actual time of posting or time of
despatch in the sender's location.

59.5 Notices under clause 56 shall take effect as follows:

         (a)  if given under clause 56.1, 14 days after the relevant notice is
              received or deemed to have been received in accordance with clause
              59.4 unless at the expiry of such period of 14 days the relevant
              condition, event or circumstances shall have ceased to apply;

         (b)  if given under clause 56.2 (a) or (b), upon expiry a period of not
              less than 30 days (or such longer period as may be specified in
              the notice) after the relevant notice is received or deemed to
              have been received in accordance with clause 59.4 unless at the
              expiry of such period of 30 days (or longer period as may have
              been specified) the relevant condition, event or circumstances
              shall have ceased to apply;

         (c)  if given under clause 56.1(c) or (d), 14 days (or such longer
              period as may be specified in the notice) after the relevant
              notice is received or deemed to have been received in

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              accordance with clause 59.4 unless at the expiry of such period of
              14 days (or longer period as may have been specified) the relevant
              force majeure event shall have ceased to apply;

         (d)  if given under clause 56.3, on the day the relevant notice is
              received or deemed to have been received in accordance with clause
              59.4 (or such later date as may be specified in the notice or upon
              the satisfaction of such conditions as may be specified in the
              notice); or

         (e)  if given under clause 56.4(a) or (b), upon expiry of a period of
              not less than 60 days (or such longer period as may be specified
              in the notice) after the relevant notice is received or deemed to
              have been received in accordance with clause 59.4 unless at the
              expiry of such period of 60 days (or longer period as may have
              been specified) the relevant payment shall have been made either
              to the Contractor or into the Escrow Account (as the case may be),
              and such notice shall not be valid unless it shall prominently
              specify that it is a termination notice given under clause 56.4
              and state the amount of money which the Contractor claims is
              overdue for payment and, in sufficient detail to enable ICO to
              investigate the same, the circumstances which the Contractor
              alleges gives rise to such sums becoming due for payment.

60       PUBLICITY

Neither party, and the Contractor shall procure that none of its
Sub-Contractors, nor any of the group companies, affiliates or Sub-Contractors
or any of their respective agents, advisers, employees or consultants of the
Contractor or its Sub-Contractors shall make any announcements, news releases or
other public statements regarding this Agreement or its subject matter without
the prior written approval of both the Contractor and ICO, such approval not be
unreasonably withheld or delayed.

61       INFORMATION RECORDING

The Contractor shall record, update and maintain all documents to be delivered
under this Agreement up to the Acceptance Set 5 Completion Date in accordance
with the documentation configuration control process to be established as a part
of the Programme Management Plan referred to in the Statement of Work.

62       LAW AND JURISDICTION

62.1 This Agreement shall be governed by, and construed in accordance with,
English law.

62.2 Subject to clause 62.3, the Courts of England shall have exclusive
jurisdiction in relation to all disputes or matters which may arise as between
the parties out of or in connection with this Agreement.

62.3 Neither ICO nor the Contractor shall commence or pursue any proceedings
against the other in relation to any dispute or matter which may arise between
them out of or in connection with this Agreement other than in the Courts of
England, except for the purpose of enforcing a judgement or order of the Courts
of England.

62.4 Each of ICO and the Contractor waives for the exclusive benefit of the
other of them any objection on the ground of inconvenient forum to any
proceedings which relate to this Agreement being brought in the Courts of
England or, for the purposes only of enforcement of any judgement or order as is
referred to in clause 62.3, in any other court.

62.5 In clause 62, "proceedings" means proceedings of any kind, including an
application for a provisional or protective measure.

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63       CHANGE OF LAW

63.1 If at any time as a consequence of either any change of law (whether
effected through constitutional means or otherwise) or any actions or
restrictions or other interference imposed by any governmental body (or any body
or persons claiming governmental authority) or any international trade or
similar embargo affecting any of the countries in which the Sites are located or
the commencement of hostilities (whether formally declared or not) against any
nation or any state, province or other political subdivision of any nation
(including for this purpose against any separatist movement claiming an
entitlement to be a separate nation, state, province or other political
subdivision) affecting any of the countries in which the Sites are located it
shall become impossible or impracticable to give effect to this Agreement or any
part of it or otherwise to perform the Work on the relevant Site(s), then this
clause 63 shall apply.

63.2 If any changes in the laws and regulations referred to in clauses 4.1(g) or
(h) which may inhibit or prevent the Equipment, Software or other Deliverables
which is or shall be specified in or is to be supplied under this Agreement
being lawfully used for the purposes of the ICONET Ground Facilities in any of
the countries where the Sites are located then this clause 63 shall apply.

63.3 As soon as either party becomes aware of any such circumstances as are
referred to in clauses 63.1 or 63.2 it will notify the other party and the
parties shall discuss how to overcome the effects of such changes and shall work
together so as to mitigate the effects of such circumstances. Where practicable,
they shall make such amendments to this Agreement or any part of it in
accordance with the procedures set out in clause 9 so as to enable the impact of
such occurrence to be minimised.

63.4 If any of the circumstances referred to in clause 63.1 shall come into
existence and continue for a continuous period of at least 30 days in relation
to any particular Site and it shall not be reasonably practicable in the
reasonable opinion of ICO to make amendments as contemplated by clause 63.3,
then upon service of a written notice by ICO to the Contractor under this
clause, the Contractor shall assist ICO in establishing and equipping an
alternative site that ICO designates for use as a satellite land earth station
or network management centre with all necessary connections. Such assistance
shall be at ICO's cost but on substantially the same basis and terms as those
contained elsewhere in this Agreement.

63.5 If any of the circumstances referred to in clause 63.1 shall come into
existence and continue for a continuous period of at least 30 days in a manner
which either immediately or prospectively will affect a number of the Sites such
that the ICONET Ground Facilities and other elements of the ICO System can not
or will not be able to deliver the desired functionalities specified in the IGFR
without significant modification and it shall not be reasonably practicable in
the reasonable opinion of ICO to make amendments as contemplated by clause 63.3,
then upon service of a written notice by ICO to the Contractor under this
clause, ICO shall be entitled to treat such circumstances as an event of force
majeure.

63.6 In any of the circumstances referred to in clauses 63.3 or 63.4 and where
there is a reasonably practicable method to overcome the changes in law or
regulation giving rise to such circumstances, the Contractor undertakes that it
will offer to provide such changes to the scope of the Works or the location of
the Deliverables at fair prices and on reasonable terms and shall, upon ICO's
request, promptly provide such evidence as ICO may reasonably require to
establish that the prices and terms offered are fair and reasonable.

If ICO considers that the Contractor is unable to offer to provide such changes
to the scope of the Works or the location of the Deliverables in a manner such
that it is reasonably practicable to overcome the changes in law or regulation
giving rise to such circumstances on a basis which is consistent with this
Agreement (whether or not the Contractor shall have proposed fair and reasonable
terms for implementing the same), then ICO shall be entitled to treat such
circumstances as an event of force majeure.

                                       72
<PAGE>   2431
Final Version - Change Order No 25

64       EXPORT CONTROL REGULATION

64.1 It is expressly agreed by the parties that the execution of this Agreement
and the subsequent performance of the Works will be subject to all applicable
export control laws and regulations imposed or administered by whichever
government has competent jurisdiction.

64.2 The Contractor warrants that at the time of execution of this Agreement
there are no applicable export control laws and regulations under clause 64.1
which will prevent performance of this Agreement.

65       DISPUTES RESOLUTION PROCEDURE

If a dispute arises, whether before or after Acceptance Set 5 Completion Date,
the procedure set out in Schedule 3 shall apply.

66       AGENT FOR SERVICE

66.1 In relation to any dispute arising out of or in connection with this
Agreement, each of the Contractor and ICO shall at all times until six years
after the termination of this Agreement maintain an agent for service of process
in England and agrees that service on such agent (or any replacement agent
appointed hereunder) shall be deemed to be due service for the purposes of such
proceedings.

66.2 For the purposes of clause 66.1 the Contractor hereby irrevocably appoints
NEC Europe Limited at its registered office for the time being as its agent for
service of process and ICO hereby irrevocably appoints ICO Services Limited at
its registered office for the time being as its agent for service of process.

66.3 If for any reason an agent appointed under this clause 66 ceases to act as
such, the Contractor or ICO (as appropriate) shall promptly appoint another such
agent and notify the other party of the appointment and the name and address of
the new agent.

67       SUPERVISING OFFICER AND CONTRACTOR'S AUTHORISED REPRESENTATIVE

67.1 ICO's Supervising Officer may be changed from time to time by notice in
writing to the Contractor. Until further notice the Supervising Officer shall be
Gary Titzer.

67.2 The Contractor's Authorised Representative may be changed from time to time
by notice in writing to ICO. Until further notice the Contractor's Authorised
Representative shall be Tadao Furukawa.

67.3 Either party may rely upon notices from the other party without being
obliged to validate the signature of the Supervising Officer or the Contractor's
Authorised Representative.

68       NO PARTNERSHIP

Nothing herein shall create a joint venture or partnership between the parties
nor, save as specifically provided in this Agreement, constitute one party the
agent of the other party.

                                       73
<PAGE>   2432
Final Version - Change Order No 25

69       SUCCESSORS

This Agreement shall be binding upon the parties hereto and their successors and
permitted assigns.

70       ASSIGNMENT

70.1 Upon giving prior written notice to the Contractor, the benefit of this
Agreement may be assigned by ICO to any subsidiaries of ICO or other companies
within the ICO Group (being companies under the control of the ultimate holding
company of ICO from time to time) any such company being referred to as a
"member of the ICO Group", provided that prior to any company to which the
benefit of this Agreement has been assigned ceasing to be a member of the ICO
Group, ICO shall procure that such company assigns this Agreement to any company
which will remain a member of the ICO Group. No other assignment shall be
permitted by ICO without the prior written consent of the Contractor.

70.2 This Agreement shall not be assignable by the Contractor. The Contractor
shall ensure that the Principal Sub-Contractors will not be allowed to assign
(other than to their subsidiaries or other companies within the same group of
companies of which they are a member) any contracts which they enter into with
the Contractor pursuant to this Agreement.

71       LANGUAGE

All correspondence, notices, documentation and communications concerning this
Agreement shall be in the English language. ICO may require, subject to
agreement of any required adjustment to the Price, where appropriate, that
operating and maintenance instructions, name and rating plates, identification
labels, safety warnings and other written and printed matter required in
connection with the Equipment and all instructions or notices to the public
and/or ICO Staff shall be written in English and one or more principal languages
of the country in which the same are to be installed or used.

72       ENTIRE AGREEMENT

This Agreement together with all the Schedules and Annexes hereto and any side
letters entered into contemporaneously herewith contains the entire agreement
and understanding between the parties relating to or thereto the subject matter
hereof. All prior understandings, representations and warranties by and between
the parties, written or oral, which may be related to the subject matter hereof
in any way, are superseded by this Agreement, but this provision shall not
affect any rights which ICO may have in relation to the IPC.

73       SEVERABILITY

In the event any one or more of the provisions of this Agreement shall, for any
reason, be held to be invalid or unenforceable, the remaining provisions of this
Agreement shall be unimpaired, and the invalid or unenforceable provision shall
be replaced by a mutually acceptable provision which, being valid and
enforceable, comes closest to the intention of the parties underlying the
invalid or unenforceable provision and, where necessary, satisfies the concerns
of the regulatory authorities concerned.

                                       74
<PAGE>   2433
Final Version - Change Order No 25

74       COSTS

All costs and expenses incurred by the parties in connection with the
negotiation and entry into of this Agreement shall be borne by the party
incurring the same.

75       COUNTERPARTS

This Agreement or any agreement expressed to be supplemental hereto may be
executed in two or more counterparts and by different parties on separate
counterparts, each of which when so executed and delivered shall be an original,
but all such counterparts shall constitute one and the same instrument.

                                       75
<PAGE>   2434
                            NEC TOP LEVEL MILESTONES
                          for Phased SAN Handover Plan

<TABLE>
<CAPTION>
Text 3    Task Name                               Resp              Start          % Complete       Predecessors             [GRAPH]
------------------------------------------------------------------------------------------------------------------------
<S>       <C>                                     <C>               <C>            <C>              <C>
          SYSTEM PDR                               Contractor        Mon 15/09/97   100%             2,3
2         Draft AMBE Voice Codec Software
          Interface                                ICO               Tue 04/03/97   100%
3         Voice Codec High Level Functional
          Description                              ICO               Mon 07/04/97   100%

4(T)      SYSTEM FDR                               Contractor        Thu 15/01/98   100%             6,7,8
5         Voice Codec Floating Point-C Source
          Code                                     ICO               Fri 15/08/97   100%
6         Voice Codec Low Level Functional
          Description                              ICO               Mon 22/09/97   100%
7         Air Interface ICD Final Version 4        ICO               Tue 30/09/97   100%

8(T)      NMC (LINK-OS) & SRMC/SAN-SRMS FDR        Contractor        Thu 15/01/98   100%             11, 12
9         Prelimanary NMS/SCC ICD including
          Definition of Ephemeris Data             ICO               Mon 12/05/97   100%
10        Final NMS/SCC ICD including Definition
          of Ephemeris Data                        ICO               Mon 15/09/97   100%

11(T)     CME20 RS PLM REVIEW-FDR (TG2)            Contractor        Sat 31/01/98   100%

12(T)     12 RFT READY FOR TTC                     Contractor        Tue 31/03/98   100%             8,19,20,21,22,23,24
13        Access to SAN Sites by following dates:  ICO               Mon 12/05/97   100%
14        Brewster, USA                            ICO               Wed 08/10/97   100%
15        Chatanapar, India                        ICO               Wed 08/10/97   100%
16        Brisbane, Australia                      ICO               Sat 01/11/97   100%
17        Usingen, Germany                         ICO               Sat 01/11/97   100%
18        Longvilo, Chile                          ICO               Sat 15/11/97   100%
19        Hartebeeshoake, South Africa             ICO               Mon 15/12/97   100%
20        Final SAN/TTC ICD                                          Mon 12/05/97   100%

21(T)     SBS #1 MANUFACTURE COMPLETE              Contractor        Mon 31/08/98   100%             27
22        Air Interface Final Version 4            ICO               Tue 30/09/97   100%

23(T)     MSSC #12 FOB                             Contractor        Sun 28/02/99   100%

24(T)     TNM #1 MANUFACTURE & PHASE 1 TESTING     Contractor        Fri 16/04/99   100%             32,33,34,35
25        Draft AMBE Voice Codec Software
          Interface                                ICO               Tue 04/03/97   100%
26        Voice Codec High Level Functional
          Description                              ICO               Mon 07/04/97   100%
27        Voice Codec Floating Point - C Source
          Code                                     ICO               Fri 15/08/97   100%
28        Voice Codec Low Level Functional
          Description                              ICO               Mon 22/09/97   100%

29(T)     TNM #1 INSTALLATION & PH2-1 TEST
          COMPLETE                                 Contractor        Tue 31/08/99   100%

30(T)     SBS #12 PH 2-1 COMPLETE                  Contractor        Fri 01/10/99     0%

32(T)     VERSION 2 SOFTWARE RELEASE FOR NMC/SRMC
          ON SITE TESTING                          Contractor        Sun 30/04/00     0%

</TABLE>

                                    page 1
<PAGE>   2435
                            NEC TOP LEVEL MILESTONES
                          for Phased SAN Handover Plan

<TABLE>
<CAPTION>
Text 3    Task Name                               Resp              Start          % Complete       Predecessors             [GRAPH]
------------------------------------------------------------------------------------------------------------------------
<S>       <C>                                     <C>               <C>            <C>              <C>
          PHASED SAN HANDOVERS                                       Fri 03/11/00     0%

33(T)     1 SAN DEU (FS1 & AS1)                    Contractor        Fri 03/11/00     0%

34        ACCEPTANCE SET HANDOVERS                                   Tue 13/03/01     0%
35(T)     AS2 Handover                                               Tue 13/03/01     0%
36(T)     AS3 Handover                                               Thu 12/07/01     0%
37(T)     AS4 Handover                                               Tue 13/11/01     0%
38(T)     AS4 Completion                                             Thu 31/01/02     0%
39(T)     AS5 Handover                                               Mon 04/03/02     0%

40        ICO SUPPLIED COMMUNICATIONS LINKS;       ICO               Fri 10/12/99     0%
41        ICO/NEC to confirm required dates of
          SAN-SAN and SAN-NMC Links                NEC               Thu 15/06/00     0%
42        ICO SUPPLIED E1 LINKS                                      Fri 10/12/99     0%
43        Link NMC - IND                           ICO               Wed 08/03/00   100%
44        Link IND - IDN                           ICO               Wed 08/03/00   100%
45        Link IDN - AUS                           ICO               Wed 08/03/00   100%
46        Link NMC - USA                           ICO               Wed 08/03/00   100%
47        Link AUS - KOR                           ICO               Fri 10/12/99   100%
48        Link KOR - NMC                           ICO               Fri 10/12/99   100%
49        Link USA - MEX                           ICO                                0%
50        Link MEX - CHL                           ICO                                0%
51        Link IND - ARE                           ICO                                0%
52        Link ARE - DEU                           ICO                                0%
53        Link CHL - BRA                           ICO                                0%
54        Link DEU - ZAF                           ICO                                0%
55        Link USA - DEU                           ICO               Tue 01/02/00   100%
56        Link BMC - USA                           ICO               Tue 01/02/00   100%
57        Link BMC - DEU                           ICO               Tue 01/02/00   100%
58        Link IND - KOR                           ICO               Wed 08/03/00   100%
59        Link BRA - DEU                           ICO                                0%
60        Link ZAF - IND                           ICO                                0%
61        Link USA - KOR                           ICO               Wed 08/03/00   100%
62        Link KOR - BMC                           ICO               Wed 08/03/00   100%
63        Link BMC - NMC                           ICO               Wed 08/03/00   100%
</TABLE>

                                    page 2
<PAGE>   2436
[ICO Logo]

                                                       ICO GLOBAL COMMUNICATIONS
                                                              COMMONWEALTH HOUSE
                                                   2 CHALKHILL ROAD, HAMMERSMITH
                                                                   LONDON W6 8DW
                                                                  UNITED KINGDOM

                                                           TEL: +44 181 600 1000
                                                           FAX: +44 181 600 1199

                                                           I-CO SERVICES LIMITED
                                               REGISTERED IN ENGLAND: NO.3045294
                                         REGISTERED OFFICE: 1 QUEEN CAROLINE ST.
                                                                LONDON W6 9BN UK

          COMMERCIALLY SENSITIVE
                             REPRODUCTION PROHIBITED

                       ANNEX 1: CONTRACTOR'S DELIVERABLES

CONFIDENTIALITY STATEMENT

ALL INFORMATION CONTAINED IN THIS DOCUMENT IS CONFIDENTIAL AND PROPRIETY TO ICO
         GLOBAL COMMUNICATIONS OR ANY OTHER MEMBER OF THE ICO GLOBAL
         COMMUNICATIONS GROUP AND INTENDED ONLY FOR THE ADDRESSEE TO WHOM THIS
         COPY IS ADDRESSED. THE RECIPIENT SHALL NEITHER COPY, DISTRIBUTE,
         DISCLOSE OR USE THE INFORMATION CONTAINED IN IT FOR ANY PURPOSE OTHER
         THAN FOR WHICH THIS DOCUMENT HAS BEEN MADE AVAILABLE NOR PERMIT ANYONE
         ELSE TO DO THE SAME. THE RECIPIENT SHALL BE HELD FULLY LIABLE FOR ANY
         WRONGFUL DISCLOSURE OR USE OF ANY OF THE INFORMATION CONTAINED IN THIS
         DOCUMENT BY HIM, OR HIS OFFICERS OR EMPLOYEES OR ANYONE ELSE TO WHOM HE
         MAKES THE INFORMATION AVAILABLE.

<TABLE>
<S>                                         <C>
                 DOCUMENT NO.:              EN-IG-ICO-SW-000002

                 VERSION:                   3.13.4

                 DATE:                      27 April 2000
</TABLE>

<TABLE>
<S>                                         <C>                                <C>
       PREPARED                             ICO                                NEC

       AUTHOR:                              TITLE:                             TITLE:

                                            SIGNATURE:                         SIGNATURE:
</TABLE>
<PAGE>   2437
<TABLE>
<S>                       <C>                                                    <C>
                                                                                 EN-IG-ICO-SW-000002
   [ICO LOGO]             Annex 1 Contractor's Deliverables                      Version 3.13.4
                                                                                 27 April 2000
</TABLE>

A. Amendment record

<TABLE>
<CAPTION>
REVISION          DATE               CN NO.     REASON FOR CHANGE

<S>               <C>                <C>        <C>
1.0               14/2/97                       NEC Contract Issue

2.0               17/2/97                       To incorporate final NEC comments

2.1               18/2/97                       To  incorporate  revision  to para 9.3 and  delete  para 9.4
                                                plus renumbering from para 9.3 onwards - change to new 9.4

2.2               18/2/97                       Add specific IGFR references to options

3.0               26/2/97                       Addition of  warranty services.

3.1               26/2/97                       Minor edits.  All agreed.

3.2               13/08/97                      Changes  to  cover  60/61 & 120  Days  Options  and  PCS/HPN
                                                option.

3.3               07/10/97                      Changes  agreed  Coggin/Jenkins   24/09/97.  Plus  editorial
                                                edits as per Woodhouse email of re: SA0424

3.4               25/02/98                      Changes to reflect CR#6 with revisions accepted

3.5               20/3/98                       Exclusion of DCN from optional extended warranty

3.6               25/3/98                       Incorporating additional ICO revisions

3.7               23/4/99                       MCo/KH draft for Phased Handover

3.7X              26/4/99                       NEC PO  comments

3.8               28/4/99                       WG3 & WG5 comments 27/4

                                                WG5/6/D comments 29/4
                                                - Delete 4. "Option"
                                                -        Modify 5.2.1.1
                                                -        Add the statements to Table B

3.9               30/4/99                       Table A change to  include  GMSSC & delete  VLR & changes to
                                                FS4 & 5 based on Teleconf 29/4/99  Re-inserted  NECPO re IGF
                                                is now only 11 SANs  clause  3.1.1.  Para  3.2.1 and Table A
                                                re-wording.

3.10              14 May 1999                   Incorporation  of  discussions  between  MCo  TK on  14  May
                                                1999.   Note  the  document  will  need   re-numbering   and
                                                reformatting.

3.10 R1           18 May 1999                   NEC Comments

3.11              26 May 1999                   Final draft changes after discussion of 26 May 1999.

3.11 R1           27 May 1999                   NEC Comments

3.11 R2           28 May 1999                   Incorporation of ICO & NEC meeting on 28 May 1999

3.11.R3           2 June 1999                   Minor edits.

3.12              3 June 1999                   Edits as discussed on 3 June 199 NEC/ICO.

3.13                                            ICO draft MOA

3.13R             5 April 2000                  NEC  Comments  to ICO MOA  draft  with  reflect  ICO's  IGFR
                                                de-scope EN-IOG-ICO-TN-001085

3.13.1            10 April 2000                 NEC version with useful revision marks

3.13.2            11 April 2000                 ICO counter proposal

3.13.3            12 April 2000                 ICO-NEC meeting on 11 April

3.13.4            27 April 2000                 ICO-NEC meeting on 27 April

</TABLE>

                                       ii
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<PAGE>   2438
<TABLE>
<S>                       <C>                                                    <C>
                                                                                 EN-IG-ICO-SW-000002
   [ICO LOGO]             Annex 1 Contractor's Deliverables                      Version 3.13.4
                                                                                 27 April 2000
</TABLE>

<TABLE>
<CAPTION>
                                TABLE OF CONTENTS

<S>                                                                         <C>
1.    GENERAL ............................................................     4

2.    DELIVERABLE DOCUMENTATION ..........................................     4

3.    MAJOR SUBSYSTEMS OF THE IGF ........................................     4

4.    (NOT USED) .........................................................     7

5.    OPTIONAL SUPPORT SERVICES AND EXTENDED WARRANTY ....................     7

6.    PERFORMANCE AND CAPACITY REQUIREMENTS OF DELIVERABLE EQUIPMENT .....    12

7.    DELIVERABLE FUNCTIONS AND FEATURES .................................    14

8.    DELIVERABLE EQUIPMENT ..............................................    22

9.    DELIVERABLE SERVICES ...............................................    26

10.   SITE INSTALLATION DELIVERABLES .....................................    26

11.    SYSTEM CONFIGURATION INFORMATION ..................................    27
</TABLE>

                                       iii
Proprietary & Confidential to ICO Global Communications
<PAGE>   2439
<TABLE>
<S>                       <C>                                                    <C>
                                                                                 EN-IG-ICO-SW-000002
   [ICO LOGO]             Annex 1 Contractor's Deliverables                      Version 3.13.4
                                                                                 27 April 2000
</TABLE>

1.       GENERAL

1.1      This Annex describes the Deliverables that the Contractor will deliver
         to ICO. The structure of this Annex is as follows:

1.2      Section 2 describes the deliverable documentation

1.3      Section 3 describes the deliverable major sub systems of the IGF

1.4      Section 5 describes the optional support and warranty services

1.5      Section 6 describes the performance and capacity requirements of the
         Deliverables

1.6      Section 7 describes the deliverable Functions and Features

1.7      Section 8 describes the detailed equipment list

1.8      Section 9 describes the Services that shall be delivered

1.9      Section 10 describes information to be provided by the Contractor
         regarding the Site installation conditions

1.10     Section 11 describes the IGF configuration data to be provided by the
         Contractor.

2.       DELIVERABLE DOCUMENTATION

2.1      The Contractor will deliver all documentation set out in Annex 6.

3.       MAJOR SUBSYSTEMS OF THE IGF

3.1      The Contractor's deliverables shall together provide the functionality
         required by the IGFR and shall include but not be limited to the major
         subsystems detailed in Paragraph 3.1. The progressive handover and
         access to the full IGF is detailed in:

         -        Section 3.2 with regard to the hardware sets

         -        Section 7 with regard to the progressive handover of services
                  and functions.

3.2      The Full IGF comprises:

3.2.1    Twelve (12) SANs each comprising:

                                       4
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<PAGE>   2440
<TABLE>
<S>                       <C>                                                    <C>
                                                                                 EN-IG-ICO-SW-000002
   [ICO LOGO]             Annex 1 Contractor's Deliverables                      Version 3.13.4
                                                                                 27 April 2000
</TABLE>

         i.       An RFT (Radio Frequency Terminal) sub-system of 5 RFTs (a
                  total of 60 RFTs). including early delivery of 2 RFTs at 6 SAN
                  Sites (a total of 12 RFTs) for the purposes of TT&C

         ii.      SBS sub-system including its associated:

                  -        DC UPS

                  -        Local SRMS

                  -        clock, reception and distribution sub-system

                  -        IF Distribution subsystem

         iii.     TNM sub-system

         iv.      MSSC/VLR sub-system and its associated DC UPS

         v.       HPN sub-system

         vi.      SAN Management System:

                  -        TMOS WS

                  -        SAN OSS including SRMC functions

         vii.     (Not used)

         viii.    Intra SAN sub system connection cabling and Intermediate
                  Distribution Frame

         ix.      Interconnection cabling to the ICO provided DDF for
                  telecommunications networks as defined in the IGFR.

         x.       Legal Interception Activation sub-system (LIAS)

3.2.2    One EIR

3.2.3    Two HLR/AuCs and their associated DC UPS

3.2.4    Three integrated messaging sub-systems

3.2.5    [One IWFs supporting IS.41-to-ICO and ICO -to- IS.41 interworking,
         Subject to the resolution of three Change Requests CR#24, CR#45 and
         CCR#107.]

3.2.6    One DCN sub-system

3.2.7    One Network Management Centre comprising:

         i.       Link-OS (integrating all SAN-OSS)

         ii.      Node-OS / TMOS (management of switching and mobility
                  management elements in the IGF)

                                       5
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<PAGE>   2441
<TABLE>
<S>                       <C>                                                    <C>
                                                                                 EN-IG-ICO-SW-000002
   [ICO LOGO]             Annex 1 Contractor's Deliverables                      Version 3.13.4
                                                                                 27 April 2000
</TABLE>

         iii.     SRMC sub-system

3.2.8    One Back-up Network Management Centre comprising:

         i.       Link-OS (integrating all SAN-OSS)

         ii.      Node-OS / TMOS (management of switching and mobility
                  management elements in the IGF)

         iii.     SRMC sub-system

3.2.9    SBS Test Fixtures/Test Equipment (Item 7 in SBS Equipment list, in
         Table 2 in this section to be installed at HNS India and HNS USA until
         ICO decides to move the equipment elsewhere)

3.2.10   System Integration support facility (Item 9 in SBS Equipment list, in
         Table 2 in this section, to be installed at NEC/A. The remaining SBS
         equipment will stay at NEC/A until ICO decides to move the equipment
         elsewhere.)

3.2.11   Set of Spares as specified in Table 2, Section 8 of this Annex.

3.2.12   Special purpose test equipment as defined in Annex 2 and Annex 9 of the
         SOW

3.2.13   Legal Interception Management Sub-system

3.2.14   Dust protection for the RFT Shelters at the UAE SAN site.

3.2.15   All planning, scheduling and implementation activity of, or relating
         to, the China SAN shall be regulated by the terms of a separate Change
         Order to be agreed by the parties in accordance with clause 2.2 of the
         Terms and Conditions.

3.3  DEFINITION OF HARDWARE SETS

3.3.1    The contractor shall handover to ICO the equipment progressively as
         shown in Table A in the column "Hardware Set contents". In addition the
         Contractor shall also provide ICO with access to the equipment
         identified in the column "NEC Hardware with ICO Access" for the purpose
         as defined in Annex 7B Section 4.1.

                                        6
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<PAGE>   2442
<TABLE>
<S>                       <C>                                                    <C>
                                                                                 EN-IG-ICO-SW-000002
   [ICO LOGO]             Annex 1 Contractor's Deliverables                      Version 3.13.4
                                                                                 27 April 2000
</TABLE>

                           TABLE A HARDWARE SETS (HS)

<TABLE>
<CAPTION>
    IGF HARDWARE SET     HARDWARE SET CONTENTS        NEC HARDWARE WITH ICO ACCESS
    ----------------     ---------------------        ----------------------------
<S>                      <C>                          <C>
    HS-1                 1 SAN (DEU)                  BMC to produce SRMC Data

    HS-2                 2 SANs (KOR, ZAF), Backup    MSSC/GMSSC at 8 locations and 9 DCN nodes at
                         NMC (BMC) and their          USA, MEX CHL, BRA, IND, IDN, AUS, ARE, NMC
                         interconnection with the     (DCN only) including their interconnection via
                         ICO supplied intersite       the ICO supplied intersite links.
                         links.

    HS-3                 3 SANs (USA, ARE, CHL) and   MSSC/GMSSC at 5 locations, the HLR in NMC 6
                         their interconnection with   DCN nodes at MEX, BRA, IND, IDN, AUS, NMC (DCN
                         the ICO supplied intersite   only) including their interconnection with the
                         links.                       ICO supplied intersite links.

    HS-4                 5 SANs (MEX, BRA, IND AUS,   Nil
                         IDN), Primary NMC (NMC)
                         and their interconnection
                         with the ICO supplied
                         intersite links.
</TABLE>

3.3.2    The facilities provided to ICO with respect to the equipment defined in
         the column 'NEC Hardware with ICO Access' and the level of associated
         support given by the Contractor will be such that ICO and the
         contractor are able to perform the activities as defined in Annex 7B,
         Joint Working Arrangements for Phased SAN Handover.

3.3.3    The hardware at each site listed in the Hardware Sets shall include all
         items specified for that site as defined in Table 3 Contractors
         Deliverables of Section 8.

4.       (NOT USED)

5.       OPTIONAL SUPPORT SERVICES AND EXTENDED WARRANTY

5.1      ADDITIONAL SUPPORT SERVICES DURING THE WARRANTY PERIOD

5.1.1    Upon election by ICO not later than 6 months before planned start date
         of Delux Support, the Contractor will provide SBS Deluxe Support
         Services as described in Section 5.3.

5.1.2    Upon election by ICO not later than 6 months before planned start date
         of Delux Support, the Contractor will provide MSSC Deluxe Support as
         described in Section 5.4.

5.1.3    Upon election by ICO not later than 6 months before planned start date
         of Delux Support, the Contractor will provide HPN Deluxe Support as
         described in Section 5.6.

                                       7
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<PAGE>   2443
<TABLE>
<S>                       <C>                                                    <C>
                                                                                 EN-IG-ICO-SW-000002
   [ICO LOGO]             Annex 1 Contractor's Deliverables                      Version 3.13.4
                                                                                 27 April 2000
</TABLE>

5.2      ADDITIONAL SUPPORT SERVICES DURING THE POST WARRANTY PERIOD.

5.2.1    EXTENDED BASIC WARRANTY

5.2.1.1  After completion of the Warranty Period specified in clause 40 of the
         Agreement, the warranty condition of clause 40 of the Agreement may be
         extended on an annual basis, for any or all of the RFT, SBS, MSSC,
         LIAS, LIMS, IWF, Messaging, HLR/AuC, EIR, HPN, TNM, DCN or NMC/SAN OSS
         sub-systems.

5.2.1.2  ICO may elect to receive extended basic warranty services upon written
         notice to the Contractor -- not later than 3 months prior to the
         completion of the warranty period specified in clause 40 of the
         Agreement, or in any subsequent period of extended basic warranty
         services.

5.2.1.3  The ICO election(s) to receive basic warranty services shall be
         continuous, without break in the periods of election.

5.2.2    EXTENDED SBS DELUXE SUPPORT SERVICES

5.2.2.1  Provided ICO has elected to receive SBS Deluxe Support Service in
         accordance with Paragraph 5.1.1. above, ICO may elect to continue to
         receive SBS Deluxe Services upon written notice to the Contractor or
         the provider of the Deluxe Support Services, gives not later than 3
         months prior to the completion of the initial service period, or any
         subsequent renewals thereof. Such SBS Deluxe Support Service shall be
         provided in 2 year periods of service. The ICO election(s) to receive
         SBS Deluxe Support Services shall be continuous without interruptions
         in the periods of election.

5.2.2.2  The SBS Deluxe Support Services to be provided are as described in
         Section 5.3.

5.2.3    EXTENDED MSSC DELUXE SUPPORT SERVICES

5.2.3.1  Provided that ICO has elected to receive MSSC Deluxe Support Services
         in accordance with Paragraph 5.1.2. above, ICO may elect to continue to
         receive MSSC Deluxe Support Services upon written notice to the
         Contractor, or the provider of the MSSC Deluxe Support Services, not
         later than 3 months prior to the completion of the initial or any
         subsequent renewal(s) of the MSSC Deluxe Support Services. The MSSC
         Deluxe Support Services shall be provided in periods of 1 year.

5.2.3.2  The ICO election(s) to receive MSSC Deluxe Support Services shall be
         continuous, without interruptions in the periods of election.

5.2.3.3  The MSSC Deluxe Support Services to be provided are as described in
         Section 5.5.

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5.2.4    EXTENDED HPN DELUXE SUPPORT SERVICES

5.2.4.1  Provided that ICO has elected to receive HPN Deluxe Support Services in
         accordance with Paragraph 5.1.3. above, ICO may elect to continue to
         receive HPN Deluxe Support Services upon written notice to the
         Contractor, or the provider of the HPN Deluxe Support Services, not
         later than 3 months prior to the completion of the initial or any
         subsequent renewal(s) of the HPN Deluxe Support Services. The HPN
         Deluxe Support Services shall be provided in periods of 1 year.

5.2.4.2  The ICO election(s) to receive HPN Deluxe Support Services shall be
         continuous, without interruptions in the periods of election.

5.2.4.3  The HPN Deluxe Support Services to be provided are as described in
         Section 5.6.

5.3      SBS DELUXE SUPPORT SERVICES

5.3.1.1  The DELUXE Support for SBS provides a full period Customer Assistance
         Centre (CAC) on 24 hours per day, 7 days a week for all SAN locations.
         Additionally, manufacturer will maintain a team of experts dedicated to
         ICO for trouble shooting and support services of all SBS manufacturer
         supplied equipment. Under the DELUXE support maintenance agreement, SBS
         manufacturer technical staff at the manufacturer's engineering centre,
         dispatched to ICO locations as required or temporarily placed at
         selected locations will maintain capability of the SBS manufacturer
         supplied equipment, including:

         i.   fault isolation and service restoration, in co-operation with the
              ICO technical staff,

         ii.  problem investigation and problem resolution in co-operation with
              the SBS manufacturer support team at the manufacturer's
              engineering centre

         iii. creation and reporting on trouble ticket system for SBS equipment

         iv.  system engineering for planning system extensions, and traffic
              sizing.

5.3.1.2  If ICO elects to exercise this option, the parties will agree a
         definitive scope of work consistent with the basis set out above which
         may include resident SBS support staff at ICO selected locations.

5.4      MSSC DELUXE SUPPORT SERVICES

5.4.1    Introduction

5.4.1.1  The contractor shall provide MSSC Deluxe Support Services which
         comprises Systems Services the content of which includes:

         i.   System Maintenance

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         ii.  Spares Replenishment.

5.4.2    System Maintenance

5.4.2.1  System Maintenance comprises the following services.

5.4.2.2  Emergency Services
         The Contractor shall at any time in an Emergency situation, when
         requested by ICO, provide ICO with the Emergency Services consisting of
         telephone support and on-site support.

5.4.2.3  Trouble Report Handling Services / Trouble Report Guideline
         The Contractor shall provide ICO with Trouble Report Handling Services
         relating to MSSC.

5.4.2.4  Software Update Service
         Any part of the Software found to cause a measurable deviation from the
         Software functionality, and which is not of an Emergency character
         shall be corrected by supplying Software Updates to ICO in accordance
         with the schedule supplied by the Contractor in its Trouble Report
         Answer.

         New or updated documentation on Software Updates will be furnished to
         ICO free of charge.

5.4.2.5  Implement and/or install, free of charge, the corrected Software,
         supplied in accordance with the Software Update Services, on one SAN
         Site. ICO shall perform and be responsible for the implementation
         and/or installation on the rest of the SAN or NMC Sites.

5.4.2.6  Consultation services
         During Normal Working Hours perform Consultation Services, mainly
         consisting of answers and recommendations due to general System
         operation and maintenance routine inquiries identified by ICO's support
         personnel.

5.4.3    Spares Replenishment

5.4.3.1  Replenishment of Spares acquired with the initial or subsequent MSSC
         equipment procurement.

5.4.4    Excluded Hardware and Software

5.4.4.1  The System Services do not cover Hardware or Software which is damaged
         due to ICO's or any third parties misuse or mishandling, packing,
         repairs or attempted modifications.

5.4.4.2  The System Services shall not apply to any failure caused by
         modification of the Hardware or Software without the Contractor's
         written approval and failures caused by interworking equipment not
         supplied under the Agreement.

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5.4.4.3  Consumable parts such as lamps, fuses, batteries, are excluded from the
         System Services.

5.4.5    Scope of the MSSC Support Services

5.4.5.1  The MSSC Support Services cover the following:

         i.   12 MSSC

         ii.  2 HLR/AuCs

         iii. 1EIR

         iv.  2 OSS (1 as an on-line system)

         v.   3 combined messaging and SMSC platforms.

         vi.  [1] IWF supporting ICO-to-IS.41 and IS.41-to-ICO interworking
              [Subject to the resolution of ICR 45, ICR 24, CCR 107]

         vii. 12 Legal Interception Activation Sub-System (LIAS) and 1 Legal
              Interception Management Sub-system (LIMS).

5.5      MSSC DELUXE SUPPORT SERVICES II

5.5.1    The services described in Section 5.4 shall be included in MSSC DELUXE
         SUPPORT SERVICES II, in addition to the Repair and Replacement Service
         described in Paragraph 5.5.2.

5.5.2    Repair and Replacement Services

5.5.2.1  Repair or replace any Hardware found by ICO to be faulty by reason of
         defective material, design or workmanship which results in the Hardware
         not conforming to and functioning and operating in accordance with the
         criteria and specification set forth in the Agreement.

5.5.2.2  New or update Documentation or Hardware due to repair or modifications
         will be furnished to ICO free of additional charge.

5.6      HPN DELUXE SUPPORT SERVICES

5.6.1.1  HPN Deluxe Support Service provides one year depot maintenance for the
         HPN hardware and software. Depot maintenance support does not include
         travel which if required will be charged in addition.

5.6.1.2  The HPN Support Service cover the following:

         i.   12 HPN

         ii.  12 HPN PCS

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6.       PERFORMANCE AND CAPACITY REQUIREMENTS OF DELIVERABLE EQUIPMENT

         The equipment delivered by the Contractor, including its major
         subsystems and including all other associated equipment and facilities
         including software necessary for its correct operation, shall when
         integrated to form the IGF, shall satisfy the requirements set forth in
         Table 1 of this Section of this Annex.

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                                     ANNEX 1

                 TABLE 1 - PERFORMANCE AND CAPACITY REQUIREMENTS

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7.       DELIVERABLE FUNCTIONS AND FEATURES

7.1      The Contractor shall deliver the IGF with all of the associated
         equipment and facilities including necessary software so that the
         functions and features as described in the IGFR will operate as
         specified. The incremental delivery of Functions and Features and their
         relationship to Hardware Sets are described in this section.

7.2      The Service Capabilities, Functions and Features (referred as a
         Function Set (FS)) shall be handed over progressively to ICO within the
         handed over equipment and the equipment that ICO has access to as
         detailed in Section 3.2 Definition of Hardware Sets. The definition of
         the FSs are provided in Tables B to F inclusive. Each FS is
         incremental, for the avoidance of doubt each FS shall include the
         functions and features that were included in the previous FS. For
         example FS-2 provides In-Band Data it also includes MO and MT Telephony
         which was included in FS-1.

7.3      The definition of terms for the Network Management System as described
         in Tables B to F are detailed in this Annex.

7.4      The handover of FSs is linked with the handover of HS and is given in
         Annex 10 - Acceptance Criteria.

7.5      The schedule for delivery, installation, commissioning, integration and
         testing of the equipment and its integration into the total IGF is set
         forth in Annex 4 of this SOW.

7.6      Functions and features marked F/R, N/R and Options in the IGFR shall be
         excluded from delivery within the timetable laid out in Annex 4 of this
         SOW.

7.7      The IGFR 4.10.2 Semi-fixed terminals, specifies that the IGF shall
         support the use of Semi-fixed terminals. Each FS shall provide services
         and functions as defined in Tables B to F in this Annex. Semi-fixed
         terminals (as per IGFR 4.10.2) shall be supported by the IGF from FS1.
         However, the services and functions that a Semi-fixed terminal will be
         able to use are limited to the functions and services delivered in each
         FS.

7.8      The functions and features referred in the Tables are based on IGFR
         version 29.1, as modified in the document "Proposed Changes to IGFR
         version 29 for Stage-0, WGA-CR-00053-B".

7.9      HPN Subsystem Phase 1 and Phase 2-1 testing shall be completed.

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         SRMS subsystem Phase 1 testing for HPN functions shall be completed.

         SRMS subsystem implementation of CR33 non-5+5 constellations shall be
         demonstrated during FWT.

         Overall system integration and testing of the HPN with the IGF,
         including SAN-SRMS and HPN-LSRMS integration and test and HPN O&M
         function test shall not be completed.

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                            Table B - Function Set 1

                                      FS-1
SERVICES

1.       Mobile Originated Voice Call (No Diversity) (IGFR 4.1.1.1)

2.       Mobile Terminated Voice Call (No Diversity) (IGFR 4.1.1.1)

3.       Emergency Calls (IGFR 4.1.1.2)

4.       Mail and Messaging Platform Services (platform functions only of IGFR
         4.5.1, IGFR 4.5.6, IGFR 4.5.7 and IGFR 4.5.8)

5.       Voice mail (IGFR 4.5.2)

6.       Fax mail (IGFR 4.5.3. Note: subject to limitation that Faxes may be
         deposited or delivered from the mail system via the terrestrial network
         connections and not via the air interface).

7.       Email (IGFR 4.5.4. Note, subject to limitation that transport via the
         air interface is not supported)

8.       SMS (No HPN Escalation) (IGFR 4.1.2.1, 4.5.5)

9.       Supplementary Services (including General functions as IGFR 4.3.1)

         9.1.     Line Identification (IGFR 4.3.2)

         9.2.     Call Forwarding (IGFR 4.3.3)

         9.3.     Call Waiting/Hold (IGFR 4.3.4)

         9.4.     Closed User Group (IGFR 4.3.6)

         9.5.     Call Restriction (IGFR 4.3.7)

         9.6.     Multi-Party (IGFR 4.3.5)

         9.7.     Advice of Charge (IGFR 4.3.8)

10.      Subscription to ICO Services (HLR, AuC, Messaging Platform) (IGFR 4.7)

ADMINISTRATION AND SUPPORT SERVICES

1.       MSSC CDR generation (no HPN) (IGFR 5.1.1)

2.       Messaging Platform CDR generation (IGFR 5.1.2)

3.       Subscriber Administration (HLR, AuC, Messaging Platform) (IGFR 5.2.1,
         5.2.3, 5.2.5)

4.       Mobile Equipment Monitoring (IGFR 5.3) (Pending in CR)

5.       Customer Care and Operator Support (IGFR 5.4)

6.       Fraud management (IGFR 5.5)

FUNCTIONS

1.       Registration (IGFR 6.6)

2.       Intra ChM Handover (using channel re-assignment) (part of IGFR 6.12)

         2.1.     Intra- spot beam (Zarc)

         2.2.     Intra-satellite (beam)

3.       MP paging (IGFR 6.8)

4.       Single satellite UT Position determination (part of IGFR 6.19)

5.       Classmark handling (IGFR 6.30)

6.       Access Class Handling per IGFR 6.28 with the following exclusions: IGFR
         6.28.1.1, 6.28.1.4, 6.28.2, and 6.28.3

7.       SAN-SRMS Satellite Resource planning file delivery to relevant
         subsystems (part of IGFR 6.19, 6.23, 6.25, 6.28, 6.40, 6.47, 6.48,
         6.49, 6.50, 6.51, 7.1, 7.2)

8.       SAN-NMS functionality including:

         -        General NMS features (IGFR 7.1, 7.2, 7.3, 7.4, 7.5, 6.5, 6.6,
                  6.47, 6.52 except for the exclusions listed below)

         -        Configuration management (IGFR 7.1, 7.2, 6.5, 6.50 except for
                  the exclusions listed below)

         -        Fault management (IGFR 7.1, 7.2, 7.3, 6.56 except for the
                  exclusions listed below)

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                                      FS-1

         -        Performance management (IGFR 7.1, 7.2, 7.4, 6.49, 6.55, 6.58
                  except for the exclusions listed below)

         -        Security management (IGFR 7.1, 7.5 except for the exclusions
                  listed below)

THE FOLLOWING EXCLUSIONS FROM 8. ABOVE:

         -        Functions dependant on Link-NMS (such as Master Work Order,
                  NMC Status Views and Network Display),

         -        Dimensioning data configuration (i.e. Application S/W
                  Management incorporating download of software releases from
                  the NMC)

         -        Non-dimensioning Data Configuration, (i.e. Network element
                  parameter changes from the NMC)

         -        Performance Management (i.e. performance management data
                  management & distribution from a global perspective)

         -        Fault Management correlation (IGFR 7.3.3.4, 7.3.3.5,
                  7.3.3.6-1,3,4, 7.8.4.12.3-1, 7.8.12.4.3)

         -        Network Traffic Management (IGFR 7.4.3)

9.       Sub-System O&M functionality per IGFR 7.8 with the following
         exclusions:

         -        Satellite Resource Management Center (IGFR 7.8.2)

         -        Node OS (IGFR 7.8.4)

         -        TNM O&M (IGFR 7.8.1.8, 7.8.10.2, 7.8.10.3.1, 7.8.10.3.3,
                  7.8.10.3.4, 7.8.10.4.3, 7.8.10.4.4, 7.8.10.5 and 7.8.10.6)

         -        SBS O&M (IGFR 7.8.9.1.2, 7.8.9.2.1, 7.8.9.3.7.1, 7.8.9.4.4.1,
                  7.8.9.4.4.2, 7.8.9.4.4.4, 7.8.9.5.1.1, 7.8.9.5.1.4, and
                  7.8.9.6.1)

10.      DTX (IGFR 6.39)

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                            Table C - Function Set 2

                                      FS-2

SAME AS FS-1 WITH THE FOLLOWING ADDITIONAL SERVICES AND FUNCTIONS:

SERVICES

1.   In-band Data (IGFR 4.2.3)

2.   In-band Fax (IGFR 4.1.3.4)

3    Natural Language Support (IGFR 4.4.3)

FUNCTIONS
1.   Inter ChM Handover (using channel re-assignment) to include
     1.1 Intra SAN Handover

2.   MP paging (2 SANs) (part of IGFR 6.8)

3.   Inter-SAN call routing

     3.1  User traffic may be routed across full ICO terrestrial network using
          transit switching capabilities of MSSC (IGFR 6.7.1, 6.7.2)

4.   NODE-OS management of MSSC (IGFR 7.8.4)

5.   SRMS functionality at BNMC (Relevant sections of IGFR 6.19, 6.23, 6.25,
     6.28, 6.40, 6.47, 6.48, 6.49, 6.50, 6.51, 6.52, 6.59, 7.1, 7.2, 7.8.2),
     except data synchronisation between PNMC and BNMC, and site switch-over
     between PNMC and BNMC (Relevant sections of IGFR 7.1.2, 7.1.7)

6.   LINK-NMS at BNMC and SAN-NMS functionality including (relevant sections of
     IGFR 7.1, 7.2, 7.3, 7.4, 7.5, 6.5, 6.6, 6.47, 6.49, 6.50, 6.52, 6.55, 6.56,
     6.58):

     -   Functions dependant on Link-NMS (Master Work Order, NMC Status Views
         and Network Display),

     -   Dimensioning data configuration i.e. Application S/W Management
         incorporating download of software releases from NMC

     -   Non-Dimensioning Data Configuration (i.e. Network element parameter
         changes from NMC)

     -   Performance Management (i.e. performance management data management &
         distribution from a global perspective)

     -   Fault management correlation

THE FOLLOWING EXCLUSIONS FROM ITEM 6 IN THE ABOVE:

     -   Accounting Management (IGFR 7.1.2.26, 7.1.14.2, 7.1.14.5, 7.6.1,
         7.8.14.6)

     -   Data synchronisation between PNMC and BNMC, and site switch-over
         between PNMC and BNMC (IGFR 7.1.2.4, 7.1.2.27, 7.1.2.29, 7.1.7.1.5,
         7.1.7.1.6, 7.1.10.5, 6.5.1.21, 6.5.1.22)

     -   Network Traffic Management (IGFR 7.4.3)

7.   DCN NMS functionality from BNMC (part of IGFR 6.5)

8.   Sub-System O&M functionality per IGFR7.8 with the following exclusions:

     -   TNM O&M (IGFR 7.8.10.2, 7.8.10.3.3.1, 7.8.10.3.4, 7.8.10.4.3.1,
         7.8.10.5)

     -   SBS O&M (IGFR 7.8.9.1.2, 7.8.9.2.1, 7.8.9.3.7.1, 7.8.9.4.4.1,
         7.8.9.4.4.2, 7.8.9.4.4.4, 7.8.9.5.1.1, 7.8.9.5.1.4, and 7.8.9.6.1)

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                            Table D - Function Set 3

                                      FS-3

SAME AS FS-2 WITH THE FOLLOWING ADDITIONAL SERVICES AND FUNCTIONS:

SERVICES

1.   GSM Data (IGFR 4.2.1 and 4.2.2) - includes asymmetric to 9.6/2.4 kbit/s

2.   Email (IGFR 4.5.4.)

3.   Cellular Satellite Roaming Bothway IS41/ICO (IGFR 4.8.2) that is all
     elements of IGFR 4.8.

4.   Cellular Satellite Roaming Bothway GSM/ICO (IGFR 4.8.4) and relevant
     sections of IGFR 4.8.1 (for GSM/ICO variants) IGFR 4.8.5, 4.8.6, 4.8.7,
     4.8.9. for bothway ICO/GSM Roaming).

5.   ICO dual numbering (IGFR 4.4.2)

ADMINISTRATION AND SUPPORT SERVICES

1.   Subscriber Administration (ILR) (IGFR 5.2.2, 5.2.6)

FUNCTIONS

1.   Inter ChM Handover (using channel re-assignment) to include

1.1  Inter SAN Handover (part of IGFR 6.12)

2.   Dynamic link power control (IGFR 6.47)

3.   Integrated LINK-NMS with NODE-OS (The second sentence of IGFR 7.8.4.1.1)

4.   SBS Sub-System O&M functionality per IGFR 7.8 with the following exclusions
     (IGFR 7.8.9.1.2, 7.8.9.3.7.1, 7.8.9.4.4.1, 7.8.9.4.4.2, 7.8.9.4.4.4,
     7.8.9.5.1.1, 7.8.9.5.1.4 and 7.8.9.6.1)

5.   LINK-NMS and SAN including

     -   Accounting Management (IGFR 7.1.2.26, 7.1.14.2, 7.1.14.5, 7.6.1,
         7.8.14.6)

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                            Table E - Function Set 4

                                      FS-4

ALL IGFR SPECIFIED SERVICES AND FUNCTIONS, EXCEPT THOSE ADDED IN FS-5:

FUNCTIONS

1.   LINK-NMS and SAN including

     -   Data synchronisation between PNMC and BNMC, and site switch-over
         between PNMC and BNMC (IGFR 7.1.2.4, 7.1.2.27, 7.1.2.29, 7.1.7.1.5,
         7.1.7.1.6, 7.1.10.5, 6.5.1.21, 6.5.1.22)

2.   SRMS functionality including

     -   Data synchronisation between PNMC and BNMC, and site switch-over
         between PNMC and BNMC (Relevant sections of IGFR 7.1.2, 7.1.7)

3.   Diversity (IGFR 6.11)

4.   Diversity Handover (IGFR 6.12)

5.   Inter-satellite Handover

6.   Dual satellite UT Position determination (IGFR 6.19)

7.   Handovers using Path Re-definition

8.   Access class handling (IGFR 6.28)

9.   Encryption (IGFR 6.14)

10.  UT San selection (IGFR 6.48.1.2)

11.  Queuing (IGFR 6.35)

12.  Congestion & Overload (IGFR 6.36.4)

13.  Legal Intercept (IGFR 6.20)

14.  Sub-System O&M functionality per IGFR 7.8

15.  Network Partitioning (as per revised Annex 7C)

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                            Table F - Function Set 5

                                      FS-5

SAME AS FS-4 WITH THE FOLLOWING ADDITIONAL SERVICES

1.   HVUT (IGFR 6.60)

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8.                DELIVERABLE EQUIPMENT

8.1      Deliverable Equipment

The deliverable equipment is set out in Table 2 of this Annex.

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                                     ANNEX 1
                       TABLE 2 - CONTRACTORS DELIVERABLES

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8.2      Notes To Ax & B Items

8.2.1.1           General Comments:

                  1) Any O&M functions for selected items are not included.

8.2.1.2           Note 1 : "SAN TO SAN HANDOVER.
                  Refer to Section 6.12 in the IGFR. The hardware required to
                  implement and test SAN-SAN handovers, is test equipment. This
                  includes the purchase of specific test instrument protocol
                  suites to test the added functions.

8.2.1.3           Note 2 : "Language Character Sets"
                  Refer to Section 4.4.3 in the IGFR.

8.2.1.4           Note 3 : "Geographic Location"
                  Refer to Section 6.19.5 in the IGFR.

8.2.1.5           Note 4 : "Multiple Language Announcement".
                  Refer to Section 4.4.3 in the IGFR. The 2 recorded
                  announcement machines mentioned in the following note are
                  included in the equipment list for the MSSC (AST-DR, Equipment
                  item 1.2.3.2)

8.2.1.6           The following technique is proposed as a way to support a
                  language indicator per subscriber.

                  i.       The indicator shall be stored as part of the
                           subscriber profile within the HLR. This involves
                           support in the operation and maintenance interface
                           for entering the language preference, changing it,
                           and printing it back out again. This data is reload
                           marked as is the rest of the subscriber profile.
                           Number range and mapping to national strings (e.g.
                           1=U.S.A.) should be defined. Administrative functions
                           outside the HLR (e.g. SOG) are also influenced in a
                           minor way.

                  ii.      The indicator shall be downloaded to VLR along with
                           the rest of the subscriber data.

                  iii.     Transportation is via the extension area in MAP. The
                           impact here is on the MAP handling blocks on the HLR
                           end and on the VLR end (two blocks). The data storage
                           block in VLR is impacted to store the new value.

                  iv.      The support for character sets (e.g. for SMS) is
                           limited to that offered in current GSM systems. As
                           other operators are already requiring additional
                           alphabets and characters, this is unlikely to remain
                           a problem in future.

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8.2.1.7           NOTE 5: "EMERGENCY CALL"
                  Refer to Section 4.1.1.2. The hardware required to implement
                  and test Emergency Call expansion, is test equipment. This
                  include the purchase of specific test instrument protocol
                  suites to test the added functions.

8.2.1.8           (NOT USED)

8.2.1.9           NOTE 7: "SPEECH FOLLOWED BY/ALTERNATIVE WITH DATA"
                  Refer to Section 4.2.3 in the IGFR. The hardware required to
                  implement and test Alternate speech/data, is test equipment.
                  This include the purchase of specific test instrument protocol
                  suites to test the added functions.

8.2.1.10          (NOT USED)

8.2.1.11          NOTE 9: "HPN PRIVACY USING ENCRYPTION"
                  Refer to Section 4.4.1.2 in the IGFR.

8.2.1.12          NOTE 10: "ALTERNATIVE SATELLITE CONSTELLATION"
                  This item is not bided. Refer to Section 6.23 in the IGFR.

8.2.1.13          NOTE 11: "NETWORK ACCESS AVAILABILITY"
                  Refer to Section 6.8 in the IGFR. The hardware required to
                  implement and test multi SAN paging, is test equipment. This
                  includes the purchase of specific test instrument protocol
                  suites to test the added functions.

8.2.1.14          NOTE 12: "DIVERSITY ALLOCATION CAPACITY"
                  Refer to Section 6.11.1 in the IGFR.

8.2.1.15          NOTE 13: "ADDITION/REMOVAL OF DIVERSITY"
                  Refer to Section 6.11.2 in the IGFR.

8.2.1.16          NOTE 14: "SOFT DECISION DECODE"
                  Soft Decision will be performed in the SBS.

8.2.1.17          NOTE 15: "INCOMING CALL DETAILS/CALL-BACK FUNCTION"
                  Tentative release date is 1Q2000.

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8.2.1.18          (NOT USED)

8.2.1.19          The critical dimensioning parameter in calculating the price
                  is the number of GIWU channels necessary to support the
                  required data and fax total traffic. THIS QUOTATION IN SUBJECT
                  TO FINALISATION OF THE AIR INTERFACE SPECIFICATION

9.                DELIVERABLE SERVICES

9.1               The Contractor shall install, integrate, test, and hand over
                  to ICO all individual SANs and the NMC and backup NMC that
                  make up the integrated IGF.

9.2               ICONET Integration programme as defined in Annex 9 and
                  selectable by ICO. Some Iconet Integration campaigns may be
                  competed after handover according to the Iconet Integration
                  campaign schedule.

9.3               Training programme as defined in Annex 5.

10.               SITE INSTALLATION DELIVERABLES

                  The Contractor shall provide:

10.1              confirmation that the information and services being provided
                  by ICO in accordance with Annex 2 and 3, present no impediment
                  to the SAN implementation program

10.2              antenna foundation design drawings (SIC-STD-017, 017-1, 018 )
                  for typical wind loading, based on NEC supplied drawings
                  SIC-STD-017,017-1,018, within one month of contract signature

10.3              the anchor bolts, templates and anchor bolt setting up
                  procedures for the antenna foundations three months prior to
                  commencement of NEC installation

10.4              the detailed specification for the supporting rod and cable
                  ducts for the GPS systems during the SBS FDR

10.5              the RFT shelter foundation specification, including, but not
                  limited to physical dimensions and weight, based on NEC
                  supplied drawings SIC-STD-006, within one month of contract
                  signature

10.6              the AC power distribution board inside all RFT shelters

10.7              specifications defining all of the interface points and the
                  associated interface conditions for all Equipment supplied, in
                  accordance with a schedule to be agreed at the DRM

10.8              the Equipment floor layout plans for all Sites for all
                  Equipment to be supplied by the Contractor, based on NEC
                  supplied drawings SIC-STD-003/003-1 for RFT shelters, and
                  SIC-STD-004 for Hub Buildings, within one month of contract
                  signature

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10.9              the specification of the power consumption, including, but not
                  limited to start-up and normal operating loads and required
                  no-fuse breaker capacities and quantities for all of the
                  equipment that will be supplied by the Contractor and for
                  future expansion of the Equipment, in accordance with the NEC
                  provided Equipment List, within one month of contract
                  signature

10.10             the specification of Equipment heat dissipation for all items
                  of Equipment that will be supplied by the Contractor and for
                  future expansion of the Equipment, in accordance with the NEC
                  provided Equipment List, within one month of contract
                  signature

10.11             the environmental conditions that shall apply for all items of
                  Equipment that will be supplied by the Contractor, have been
                  specified in the IGFR Section 8.11.3

10.12             Certificates, where required, to confirm that all the
                  equipment, supplied for use in the country, meets all local
                  and federal regulations and or standards applicable in that
                  country.

11.               SYSTEM CONFIGURATION INFORMATION

                  ICO shall provide the configuration information in the format
                  defined by the Contractor. The Contractor shall configure the
                  equipment as per the supplied configuration information and
                  shall provide ICO at each handover the details of the
                  configuration in a form to be agreed.

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                                                       ICO GLOBAL COMMUNICATIONS
                                                              COMMONWEALTH HOUSE
                                                   2 CHALKHILL ROAD, HAMMERSMITH
                                                                   LONDON W6 8DW
                                                                  UNITED KINGDOM

                                                       TEL: +44 (0) 20 8600 1000
                                                       FAX: +44 (0) 20 8600 1199

                                                           I-CO SERVICES LIMITED
                                               REGISTERED IN ENGLAND: NO.3045294
                                             REGISTERED OFFICE: 2 CHALKHILL ROAD
                                                                LONDON W6 8DW UK

                 ANNEX 4 - PROGRAM MANAGEMENT AND IMPLEMENTATION

                             COMMERCIALLY SENSITIVE
                             REPRODUCTION PROHIBITED

CONFIDENTIALITY STATEMENT
ALL INFORMATION CONTAINED IN THIS DOCUMENT IS CONFIDENTIAL AND PROPRIETY TO ICO
GLOBAL COMMUNICATIONS OR ANY OTHER MEMBER OF THE ICO GLOBAL COMMUNICATIONS GROUP
AND INTENDED ONLY FOR THE ADDRESSEE TO WHOM THIS COPY IS ADDRESSED. THE
RECIPIENT SHALL NEITHER COPY, DISTRIBUTE, DISCLOSE OR USE THE INFORMATION
CONTAINED IN IT FOR ANY PURPOSE OTHER THAN FOR WHICH THIS DOCUMENT HAS BEEN MADE
AVAILABLE NOR PERMIT ANYONE ELSE TO DO THE SAME. THE RECIPIENT SHALL BE HELD
FULLY LIABLE FOR ANY WRONGFUL DISCLOSURE OR USE OF ANY OF THE INFORMATION
CONTAINED IN THIS DOCUMENT BY HIM, OR HIS OFFICERS OR EMPLOYEES OR ANYONE ELSE
TO WHOM HE MAKES THE INFORMATION AVAILABLE.

<TABLE>
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                 DOCUMENT NO:               EN-IG-ICO-SW/000005

                 VERSION:                   3.0

                 DATE:                      27  April, 2000
</TABLE>

<TABLE>
<S>                         <C>                                     <C>
PREPARED                    ICO                                     NEC

AUTHOR:                     TITLE:                                  TITLE:

                            SIGNATURE:                              SIGNATURE:
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AMENDMENT RECORD

<TABLE>
<CAPTION>
REVISION            DATE             CN NO            REASON FOR CHANGE

<S>                 <C>              <C>              <C>
1.0                 14/02/97                          NEC Contract Issue

2.0                 17/02/97                          To incorporate final NEC comments.

2.1                 26/02/97                          Minor editorial changes - para 1.2.7 added

2.2                 19/4/00                           Revisions to reflect Change Order XX

3.0                 27/4/00                           Reflect ICO/NEC Agreements of 27/4/00

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                                TABLE OF CONTENTS

<TABLE>
<S>                                                      <C>
1. PROGRAM MANAGEMENT                                       3

2. MEETINGS                                                 6

3. REPORTING                                               11

4. CHANGE PROCESS                                          12

5. QUALITY ASSURANCE                                       12

APPENDIX 1                                                 13
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1.       PROGRAM MANAGEMENT

1.1      Purpose

         This Annex sets out the scope of work related to the Programme
         Management and identifies the Master Level Schedule.

1.2      Scope

1.2.1    The Contractor shall establish a Programme Office in London (the
         "Programme Office"). Any relocation of such Programme Office and/or
         additional programme offices shall be subject to prior agreement on
         commercially reasonable terms and conditions.

1.2.2    The Programme Office shall provide the prime interface with ICO and
         shall be responsible for ensuring that the programme is carried out in
         accordance with this Agreement.

1.2.3    The Contractor shall establish, implement, and maintain, during the
         course of this Agreement, a project control system and process that
         will ensure effective management.

1.2.4    The Programme Management Plan, Document WG7-PL-60041, describes the
         programme management process, NEC Team Programme, Project and
         management structure of the NEC Team and any Sub Contractor and is
         included as reference 1 to Table 1 of Annex 6 of this SOW.

1.2.5    The Programme Management Plan, Document WG7-PL-60041, shall be updated
         from time to time to reflect any changes.

1.2.6    The NEC Team Programme Office project control system and management
         process shall include but not be limited to the following areas:

         -    establish and maintain contractor programme office

         -    project administration

         -    schedule planning and control

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         -    project resources and organisations

         -    project review and progress reporting

         -    problem reporting and tracking

         -    technical management and system engineering

         -    risk management and reporting

         -    quality assurance

         -    configuration management

         -    financial reporting

1.2.7    The Master Level Schedule ("MLS") Plan 8 Doc No: 790441B, as attached
         to this Annex, reflects the Baseline schedule for Management and
         Implementation of the project at the time of the Change Order to the
         Supply Agreement. It will be reviewed regularly by the Project Review
         Meeting (PRM) and revised, throughout the life of the project, to
         reflect changing schedule requirements.

         The MLS is subject to the conditions attached to the MLS Plan 8

1.2.8    As the end-to-end system engineering, integration and test (SEIT) plan
         is developed and evolved so the Contractor will use its reasonable
         efforts to ensure that the plan for delivery of the ICONET Ground
         Facilities functionalities is consistent therewith

1.2.9    In order for the Contractor, including NEC Australia, and its Principal
         Sub-Contractors to assure the provision of Software in accordance with
         the MLS Plan 8 Schedule, as updated and amended from time to time by
         mutual agreement between the parties, the Contractor and its Principal
         Sub-Contractors shall develop a detailed plan for managing, monitoring,
         controlling and reporting on the development, testing, integration and
         delivery of individual formal ICONET Ground Facility Software releases,
         including interim releases thereof ("the Software Plan").

         The Software Plan shall provide for the following outputs: -

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         -    regular status reviews as between the Contractor, its Principal
              Sub-Contractors and ICO which shall include informal reviews, as
              mutually agreed, and formal monthly reports and reviews

         -    individual workplans and schedules from the Contractor and each of
              its Principal Sub-Contractors, including their planned and actual
              resources, and status of progress to achieve the provision of
              Software for each Sub-System in order to maintain the overall IGF
              Schedule

         -    progress and problem resolution tracking metrics provided on a
              monthly basis by the Contractor and each of its Principal
              Sub-Contractors

         The Software Plan shall be implemented and maintained by the Contractor
         and its Principal Sub-Contractors using their own personnel with
         expertise and experience in large software development projects, who
         are responsible to assure the delivery of their respective Software
         releases, in accordance with the overall IGF Schedule. The Contractor
         shall obtain the services of a resource with specific expertise and
         experience in large software development projects to support the
         Contractor's Programme Office in overall management of the Software
         Plan and delivery of the Principal Sub-Contractors' software releases.

         The Software Plan shall be operated and maintained in accordance with
         the quality assurance requirements established in this Annex 4,

         The Software Plan shall be presented by the Contractor for ICO's review
         no later than 15 May 2000.

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2.       MEETINGS

2.1      The Contractor shall conduct the following meetings.

2.2      Sub-System Preliminary Design Review Meeting (PDR)

         The purpose of the PDR is to inform ICO on the baseline concept,
         configuration and design. It establishes the general compatibility and
         sizing of internal and external interfaces of each sub-system and the
         compliance of the design with the IGFR. The selected design concept and
         its feasibility shall be presented together with a trade-off analysis
         if any is required. Partitioning of the requirements into further
         sub-system and equipment elements must be presented for review.

         The Contractor shall identify at least the following:

         -    Compliance with the IGFR.

         -    for the requirements of the IGFR, the features to be implemented
              in the subsystem;

         -    the interfaces to other sub-systems and assumed functions of those
              subsystems;

         -    the subsystem design concept including breakdown into major
              equipment blocks, the interfaces between such equipment and
              equipment sizing;

         -    Descriptions of key procedures with sequence charts and logic
              diagrams, if applicable, for the subsystem, also showing
              interactions with other subsystems;

         -    the impact on requirements for external interfaces of the IGF,
              including the Air Interface;

         -    report progress of work for the preparation of documentation for
              Phase 1 and Phase 2.1 IGF testing

         For the relevant section in the IGFR, the Contractor shall identify
         highlights, problems and difficulties, and any differences from the
         existing concepts. The Contractor shall indicate how it is intended to
         resolve any identified problem.

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         The Contractor shall clearly identify areas where there is a need to
         solve IGF system issues that extend beyond the subsystem under review,
         and shall list these separately for resolution.

         Completion of the PDR establishes the initial design baseline and
         permits the detailed design to proceed with minimum risk of major
         changes being required later.

2.3      Sub-System Final Design Review Meeting (FDR)

         The purpose of the sub-system FDR is to demonstrate to ICO that the
         baseline design of each sub-system is complete. It verifies the
         compatibility of the interfaces, and the compliance of the sub-system
         with the IGFR and with the design and performance established at the
         PDR based on appropriate engineering model tests, or design studies or
         analyses. It also verifies the compatibility with the overall IGF
         system design. The review further establishes the adequacy of plans and
         preparation for integration, test and operation of the IGF system.

         The Contractor shall refine and confirm the details presented at the
         PDR. The Contractor shall describe the way in which each of the
         subsystem and IGF system level issues identified before, during and
         after the PDR have been resolved. The Contractor shall report the
         progress of work for the preparation of documentation for Phase 1 and
         Phase 2.1 IGF testing. After completion of the FDR the baseline design
         shall be frozen.

2.4      Preliminary System Design Review (PSDR) (IGFR and End-to-End)

         The Contractor shall hold a Preliminary SDR to review the outcome of
         the Subsystem PDRs and resolve outstanding IGFR and End-to-End System
         issues.

         The Contractor shall demonstrate to ICO the soundness of the baseline
         IGF System concept, configuration and design. The Preliminary SDR shall
         establish the general compatibility and sizing of internal and external
         interfaces of each IGF subsystem and

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         the compliance of the design with the IGFR. The selected design concept
         and its feasibility shall be presented together with any further
         trade-off analysis for outstanding issues.

         The Contractor shall clearly identify against each section in the IGFR
         the highlights, problems and difficulties and any differences from the
         existing concepts and the proposed solutions.

         The Contractor shall also provide an initial draft End-to End System
         Analysis showing how the IGF interacts with external elements (e.g. UT
         and satellite) and the resultant end-to-end capabilities, performance
         budgets and resource budgets.

         ICO will provide initial performance budgets and resource budgets, for
         external elements, to be used for this initial draft End-to End System
         Analysis.

         The First version of the HLSD will be issued and will include
         descriptions of the resolutions of cross-system issues.

2.5      Final System Design Review (FSDR)

         The Contractor shall hold a Final SDR to confirm that all IGF System
         design issues have been resolved. The purpose of the Final SDR is to
         demonstrate to ICO that the final IGF design is self consistent and
         complete. It confirms the compatibility of the interfaces and the
         compliance of each sub-system with the IGFR. The Contractor shall also
         confirm the End-to-End capabilities, performance and resource budgets.
         A Second version of the HLSD and will include any updates from the
         First version of the HLSD. The contractor shall report the progress of
         work for the preparation of documentation for Phase 3 IGF testing

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2.6      Co-ordination of Review Meetings

         Prior to any given PDR or FDR, the responsible Subsystem or System
         Contractor shall co-ordinate with ICO to discuss issues and agree on
         expectations of the Review, including agenda, participation, location,
         and the level of details to be addressed.

2.7      Details of all structured procedures shall be presented for ICO review
         at a Design Review. At least procedures 1, 2, 4, 6, 10, 11, 12 13, 14,
         15 and 16 identified in IGFR section 6.26.2.1 shall be presented at the
         Preliminary Design Review. If necessary to cover all of the structured
         procedures needed for the IGF functionality, more than one Design
         Review shall be held to ensure that every Structured Procedure receives
         adequate review.

2.8      The schedule for review meetings will be agreed between the Contractor
         and ICO.

2.9      The locations for the System and sub-system review meetings are
         summarised below:

         a)   Preliminary Design Review (PDR)     (at Vendors premises)

         b)   Final Design Review (FDR)           (at Vendors premises)

         c)   System Design Reviews               (Location to be agreed )

2.10     The locations for the test review meetings, to review the results of
         relevant tests, are as follows:

         a)   Phase 1 - Unit and subsystem        (at Vendor's Premises)

         b)   Phase 2-1 - Installation testing    (on Site)

         c)   Phase 3 (for Level 1 Acceptance) -  IGF System testing at each SAN
                                                  Site (on Site)

         d)   Phase 3 (for Level 2 Acceptance)    (Location to be agreed)

2.11(a) In addition, formal Programme Review Meetings (PRM) will be held
        with ICO on a monthly basis. The Contractor will prepare and present to
        ICO a status report for all programme activities which will identify
        progress to date, risks and issues and identify the work plan and
        milestones for the next period.

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2.11(b)  Formal senior management meetings will be held quarterly with the
         participation of senior management representatives of ICO the
         Contractor and the Principal Sub-Contractors. The Contractor shall use
         its best efforts to ensure the attendance, at such meetings, of such of
         the Contractor's other sub-contractors as ICO shall reasonably request.
         The purposes of the such meetings are to ensure that all parties have
         adequate visibility of the overall ICO programme and are acting
         together in an effective manner that is consistent with the overall ICO
         programme. The agenda for each meeting shall be agreed between senior
         representatives of ICO and the Contractor at least seven (7) days in
         advance of the scheduled date for such meeting although matters of
         urgency not on the agenda may be raised at the meeting.

2.12     ICO representatives may attend and participate in the Contractor's
         Internal Review Meetings and, subject to ICO providing reasonable
         notice to the Contractor, any other meeting between the Contractor and
         its subcontractors which are related to the ICONET Ground Facilities
         programme. ICO may, at its discretion, observe all Status and Design
         Reviews which the Contractor may require from its sub-contractors.

         ICO shall bear all the travel and associated costs for its own staff.
         The Contractor shall provide ICO with notice of all such meetings at
         least seven (7) days in advance of the scheduled meeting date, except
         in cases when impromptu or emergency meetings are required in which
         case the Contractor shall use reasonable endeavours to provide ICO with
         notice of such meetings.

2.13     All relevant meeting documentation, including meeting agendas, meeting
         minutes, action items and other pertinent documents shall be made
         available to ICO .The review meeting reports shall record all
         agreements and action items, with target completion dates, agreed
         between the Contractor and ICO during the relevant review meeting.

2.14     All material shall be provided in English. All documentation, test
         results and reports shall be presented in a manner consistent with good
         commercial practice in content

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         and quality of material, as well as reproduction. ITU terminology and
         SI units, where possible, shall be used in all technical and
         operational documentation and drawings.

2.15     Further Reviews may be necessary from time to time to address progress
         or Technical issues in critical or high risk areas, these will be
         agreed with ICO as required.

3.       REPORTING

         The content of the monthly report presented to the Programme Review
         Meetings (PRM) shall be:

         i)   Progress achieved since the previous report

         ii)  Problems encountered and resolution plan

         iii) Items or information required from ICO

         iv)  Updated schedule (including activities of subcontractors)

         v)   Reviews status (including reviews by subcontractors)

         vi)  Action items status and resolution

         vii) Work planned for the upcoming month

         viii) Tests, including tests by subcontractors, planned for the coming
              month

         ix)  Review major/critical risks and action plans

3.2      In addition to the Monthly report on project progress the Contractor
         will submit to ICO other reports as identified in Annex 6, Contract
         documentation, and as required by this SOW.

3.3      Action items, issues and risks shall be tracked throughout the duration
         of the contract Databases uniquely identifying each Action Item, issue
         and risk shall be maintained. Each item shall include a description,
         originator, action, date raised, action plan, due date for completion,
         status and actual completion date. The Programme Office shall be
         responsible for action items arising from the overall programme and
         System Design Reviews and the appropriate Contractor shall be
         responsible for action items arising from the relevant Sub-system
         Reviews.

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4.       CHANGE PROCESS

4.1      The Contractor shall set up and maintain a Change Control Board (CCB)
         which shall be responsible for the processing of any proposed changes
         between the members of the Contractor's team.

4.2      The CCB shall also be responsible for the implementation of changes to
         this Agreement.

4.3      ICO representatives shall be members of the CCB.

5.       QUALITY ASSURANCE

5.1      The Contractor shall at all times maintain ISO 9001 accreditation. In
         addition, the Contractor shall prepare ICO specific quality assurance
         plans ("Quality Assurance Plans") which demonstrate ISO 9001
         compliance, the necessary quality assurance practice, procedure,
         process and standards to the satisfaction of ICO.

5.2      The Programme Office shall be responsible for ensuring that the Quality
         Assurance Plans are prepared, submitted to ICO for approval,
         implemented and that such procedures, process and standards etc. are
         maintained. The Quality Assurance Plans are referenced in Table 1 of
         Annex 6 of this SOW and their scheduled delivery contained on the
         Master Level Schedule at Appendix 1 to this Annex.

                                       12          Confidential and Propriety to
Created: 26/2/97
Modified 27/4/00                             ICO Global Communications
<PAGE>   2476
<TABLE>
<S>                    <C>                                        <C>
                                      Annex 4 -                   EN-IG-ICO-SW/000005
                       Programme Management and Implementation    Issue 3.0
[ICO LOGO]
                                                                   27 April, 2000
</TABLE>

                                   APPENDIX 1
                              MASTER LEVEL SCHEDULE
                                  [XL GRAPHIC]
                             "19.4.00 - Plan 8.XLS"

                                       13
                                                   Confidential and Propriety to
Created: 26/2/97
Modified 27/4/00                                       ICO Global Communications
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                 [Revised IGF Schedule: Plan 8 @ 19/4/00 Graph]

<PAGE>   2478

Conditions to Support Stage 0 Schedule
--------------------------------------------------------------------------------

                       CONDITIONS & ASSUMPTIONS TO SUPPORT
                            STAGE 0 DELIVERY SCHEDULE

                               PLAN 8 DOC 790041B
                             REVISED 27 APRIL, 2000

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

                     ICO & NEC Proprietary and Confidential

            Page 1 of 3
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--------------------------------------------------------------------------------

STAGE 0 IMPLEMENTATION SCHEDULE

The proposed implementation schedule for Stage 0, shown on the attached schedule
chart 790041B dated 19 April, 2000, is based on the following supporting
documentation, conditions and assumptions:

1.    The Court Stipulation agreed on 18 October 1999 instructed NEC to suspend
      all site activities; NEC requires a formal instruction from ICO requesting
      it to resume its site activities.

2.    This Stage 0 schedule is based on the IGF Supply Agreement being assumed
      by ICO when it exits from Chapter 11 which is expected to be no later than
      mid May, 2000.

3.    The formal Phase 3 Witness testing as tabled in the Phase 3 TRD -- Doc
      B90034A with the expectation that there will be some required refinements
      defined but not significant increases in testing scope.

4.    The Link Deployment Dates shall be revised and agreed to meet requirements
      of this Stage 0 IGF Schedule.

5.    ICO shall provide all On-site Test Equipment and other STE, as set out in
      Annex 2, including MGTS except in Germany, before the planned start of the
      SIT work at each SAN Site. ICO shall ensure that all such test equipment
      has been appropriately calibrated prior to use by the NEC SIT Team.

6.    ICO shall provide the Network Binder, Version 2 for R8-Sat and Version 3
      for R8-Main, the DT for which shall be loaded and verified by NEC prior to
      the start of Phase 2-2/2 testing at each SAN site.

7.    The Stage 0 schedule is based on :

      -     The Germany SAN site shall be upgraded from FS1 to FS2, from FS2 to
            FS3 and from FS3 to FS4.

      -     The BMC shall be upgraded from FS2 to FS3 and from FS3 to FS4

      -     The Korea, and South Africa SAN sites and the BMC shall only be
            upgraded from FS2 to FS4. There will be no intermediate upgrade from
            FS2 to FS3 at the Korea, and South Africa SAN sites.

      -     The USA, Chile and UAE SAN sites shall be upgraded from FS3 to FS4.

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8.    NEC and ICO can share access to the SRMC at the BMC, following completion
      of FS1 and prior to completion of FS2, for formal testing of the SRMC at
      the BMC

9.    The Stage 0 schedule includes proposed training windows at the SAN and NMC
      sites. NEC shall work closely with ICO to develop a training program that
      does not impact on the proposed Schedule and which ensures availability of
      trained ICO staff at the time when they need to perform Operations &
      Maintenance services.

10.   The Stage 0 End-to-End Call Demonstrations are dependent on availability
      of the satellites and Field Test UT(s).

11.   The Stage 0 schedule does not at this time include the end-to-end system
      engineering, integration and testing (SEIT) activities including:

      -     ICONET Integration works (G234 or G156) at the SAN and NMC Sites.

      -     Operation Readiness Test (ORT)

      -     Pre Operational Field Trial (POFT)

      -     Beta-test activities

as SEIT activities do not form a part of the Supply Agreement.

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                                                            EN-IG-ICO-SW-000873
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--------------------------------------------------------------------------------

[ICO LOGO]                                             ICO GLOBAL COMMUNICATIONS
                                                              COMMONWEALTH HOUSE
                                                   2 CHALKHILL ROAD, HAMMERSMITH
                                                                   LONDON W6 8DW
                                                                  UNITED KINGDOM

                                                           TEL: +44 181 600 1000
                                                           FAX: +44 181 600 1199

                                                           I-CO SERVICES LIMITED
                                               REGISTERED IN ENGLAND: NO.3045294
                                         REGISTERED OFFICE: 1 QUEEN CAROLINE ST.
                                                                LONDON W6 9BN UK

           -----------------------------------------------------------
           ANNEX 7B JOINT WORKING ARRANGEMENTS FOR PHASED SAN HANDOVER
           -----------------------------------------------------------

                             COMMERCIALLY SENSITIVE
                             REPRODUCTION PROHIBITED

CONFIDENTIALITY STATEMENT

ALL INFORMATION CONTAINED IN THIS DOCUMENT IS CONFIDENTIAL AND PROPRIETY TO ICO
GLOBAL COMMUNICATIONS OR ANY OTHER MEMBER OF THE ICO GLOBAL COMMUNICATIONS GROUP
AND INTENDED ONLY FOR THE ADDRESSEE TO WHOM THIS COPY IS ADDRESSED. THE
RECIPIENT SHALL NEITHER COPY, DISTRIBUTE, DISCLOSE OR USE THE INFORMATION
CONTAINED IN IT FOR ANY PURPOSE OTHER THAN FOR WHICH THIS DOCUMENT HAS BEEN MADE
AVAILABLE NOR PERMIT ANYONE ELSE TO DO THE SAME. THE RECIPIENT SHALL BE HELD
FULLY LIABLE FOR ANY WRONGFUL DISCLOSURE OR USE OF ANY OF THE INFORMATION
CONTAINED IN THIS DOCUMENT BY HIM, OR HIS OFFICERS OR EMPLOYEES OR ANYONE ELSE
TO WHOM HE MAKES THE INFORMATION AVAILABLE.

            -----------------------------------------------------
            DOCUMENT NO.:     EN-IG-ICO-SW-000873
            -----------------------------------------------------
            VERSION:          2.5
            -----------------------------------------------------
            DATE:             27 April, 2000
            -----------------------------------------------------

     ------------------------------------------------------------------------
     PREPARED                 AUTHORISED              APPROVED
     ------------------------------------------------------------------------
     AUTHOR:                  MANAGER:                SENIOR MANAGER:

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

                                                Confidential and Proprietary to
                                                ICO Global Communications
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AMENDMENT RECORD

<TABLE>
<CAPTION>
============================================================================================================
REVISION           DATE           CN NO.       REASON FOR CHANGE
============================================================================================================
<S>                <C>            <C>          <C>
1.0                23/4/99                     Phased SAN Handover Agreements
------------------------------------------------------------------------------------------------------------
Draft 2            23/4/99                     To reflect ICO Doc `Joint Working Arrangement' & NEC/ICO
                                               Responsibilities for Upgrades and  Integration at the SANs
                                               &  NMCs
------------------------------------------------------------------------------------------------------------
Draft 3            27/4/99                     To reflect responsibilities for Configuration Management of
                                               MSSC and HLR- as discussed and agreed at NEC PO/ICO Meeting
                                               on 27/4/99
------------------------------------------------------------------------------------------------------------
Draft 4            28/4/99                     To reflect Final comments collated from within ICO by CW
------------------------------------------------------------------------------------------------------------
Draft 5            29/4/99                     Based on discussion KH / IM 29/4/99
------------------------------------------------------------------------------------------------------------
Draft 6            13 May 99                   Proposed revisions incorporating proposals for resolution
                                               of issues and also for minor text updates.
------------------------------------------------------------------------------------------------------------
Draft 7            14 May 1999                 Incorporating revisions as result of discussion with TK of
                                               NEC and GW.
------------------------------------------------------------------------------------------------------------
Draft 8            18 May 1999                 NEC Comment
------------------------------------------------------------------------------------------------------------

Version 2.0        25 May 1999                 Re-write after NEC ICO discussions of 24 and 25 May 1999.
------------------------------------------------------------------------------------------------------------
Version 2.1        26 May 1999                 Revisions as per meeting NEC/ICO 26 May 1999.
------------------------------------------------------------------------------------------------------------
Ver 2.1 R1         27 May 1999                 NEC Comments
------------------------------------------------------------------------------------------------------------
Ver 2.1 R2         28 May 1999                 Incorporating revisions as results of discussion with ICO
                                               and NEC on 28th May 1999
------------------------------------------------------------------------------------------------------------
Ver 2.1 R3         2 June 1999                 Minor edits
------------------------------------------------------------------------------------------------------------
Ver 2.2            3 June 1999                 Final edits after NEC/ICO meet.
------------------------------------------------------------------------------------------------------------
Ver 2.X            March,2000                  MOA Revisions
------------------------------------------------------------------------------------------------------------
Ver 2.3R           5 April, 2000               NEC Comments on MOA Revision
------------------------------------------------------------------------------------------------------------
Ver 2.4            11 April 2000               To reflect NEC/ICO discussion  - 10 April 2000
------------------------------------------------------------------------------------------------------------
Ver 2.4 rev1       19 April 2000               GT comments and NEC comments
------------------------------------------------------------------------------------------------------------
Ver 2.4 rev2       24 April 2000               GLT markups
------------------------------------------------------------------------------------------------------------
Ver 2.5            27 April 2000               Revised to reflect ICO/NEC Agreements on 27 April, 2000
------------------------------------------------------------------------------------------------------------

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

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

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

============================================================================================================
</TABLE>

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                                TABLE OF CONTENTS

<TABLE>
<S>   <C>                                                                   <C>
1.    INTRODUCTION                                                            1

2.    OVERALL PHASED HANDOVER PHILOSOPHY                                      1

3.    ICONET INTEGRATION                                                      4

4.    SOFTWARE UPGRADES AND MULTI-SAN INTEGRATION                             4

5.    RESPONSIBILITIES FOR MANAGEMENT OF OPERATIONAL AND TEST NETWORKS        7

5.1   GENERAL MANAGEMENT RESPONSIBILITIES                                     7

5.2   FAULT MANAGEMENT                                                        8

5.3   CONFIGURATION MANAGEMENT                                                9

5.4   SRMS                                                                   10

5.5   GROUND NETWORK                                                         11
      5.5.1 General Principles                                               11
      5.5.2 Control                                                          12
      5.5.3 Process                                                          12

5.6   DCN                                                                    12

6.    PERFORMANCE MANAGEMENT                                                 13

7     SAN SITE ACCESS CONDITIONS                                             14
</TABLE>

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

1.    INTRODUCTION

      This Annex describes the scope of the Joint Working Arrangements which
      covers:

      -     Overall Phased Handover Philosophy

      -     Principles for Software Upgrades and Multi-SAN Integration

      -     Responsibilities for Management of Operational and Test Networks

2.    OVERALL PHASED HANDOVER PHILOSOPHY

2.1   The IGF shall be handed over in a phased sequence as shown in Figure 1.
      The Acceptance Criteria for each part of the IGF that is handed over are
      defined in Annex 10, Section 2. All references to Acceptance Criteria and
      Acceptance Sets in this Section 2 mean the corresponding parts of Annex
      10, Section 2.

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                            [SAN Handover Flowchart]

             Fig. 1 Overall Phased SAN Handover Philosophy

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2.2   PHASED HANDOVER SEQUENCE

      i.    The German SAN, with Function Set 1 (FS-1), shall be handed over to
            ICO in accordance with Acceptance Set 1 (AS-1).

      ii.   Korea, South Africa SANs and the Backup NMC (BMC) shall be tested
            for achievement of the acceptance criteria defined for Acceptance
            Set 2 (AS-2). On completion of the test the Korea and South Africa
            SANs and the BMC shall be handed over to ICO.

      iii.  The Contractor will permit ICO access (the functions that ICO may
            use in the equipment that ICO can access are defined in Sections 4
            and 5) to the MSSCs (including GMSSC functionality) that have not
            been handed over at Acceptance Set 2 (AS-2) and HLRs at the NMC at
            Acceptance Set 3 (AS-3).

      iv.   The Contractor shall install the software required for Function Set
            2 (FS-2) to the German SAN and integrate it with the Korea and South
            Africa SANs, and the BMC, that have been already handed over to ICO.

      v.    USA, Chile and UAE SANs with Function Set 3 (FS-3) shall be tested
            for achievement of the Acceptance Set 3 (AS-3), and handed over to
            ICO.

      vi.   The Contractor shall install the software required for Function
            Set-3 to the German SAN and BMC that have been already handed over
            to ICO, and these shall be integrated with the USA, Chile and ARE
            SANs. Korea and South Africa SANs will not be upgraded as FS-3.
            (Hereinafter the "FS3 software upgrade" means only for the Germany
            and BMC and does not include the Korea and South Africa SANs)

      vii.  Mexico, Brazil, Indonesia, Australia and India SANs and NMC, with
            Function Set 4 (FS-4) shall be tested for achievement of the
            Acceptance Set 4 (AS-4), and handed over to ICO.

      viii. The Contractor shall install the software required for Function Set
            4 (FS-4) to the German, Korea, South Africa, USA, Chile and UAE SANs
            and BMC and integrate it with the Mexico, Brazil, Indonesia,
            Australia and India SANs, that have been already handed over to ICO.

      ix.   Subject to the resolution of the existing Change Requests CR24, CR45
            and CCR107, the integration of the USA ILR shall be carried out by
            the Contractor.

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      x.    FS-5 shall be tested in accordance with Acceptance Set 5 (AS-5) with
            Software to be 'demonstrated' on at least one SAN.

      xi.   The Contractor shall make available to ICO the FS-5 software and the
            new configuration data associated with FS-5 for download to the 11
            SANs and 2 Network Management Centres handed over in AS4. The place
            and medium of software delivery will be determined by ICO to be
            compatible with equipment requirements and operational needs.

2.3   Operation of the GON

2.3.1     The Contractor will make best efforts, consistent with the priorities
          described in paragraph 5.5.2 iii), to avoid unscheduled impacts to the
          operation of the GON after POFT commences.

3.        ICONET INTEGRATION

3.1       After handover, the SANs can be used to commence ICONET Integration
          G156. Contractor shall have access to the handed over SANs for upgrade
          and integration.

3.2       The Contractor and ICO shall make best efforts to optimise planning
          and execution of IGF testing and ICONET Integration testing to ensure
          that ICONET Integration can proceed as expeditiously as is reasonably
          possible.

3.3       IGF Integration and Testing shall have top priority, however, ICONET
          Integration needs should also be accommodated. Where ICO's
          priorities change such that II testing or other activities need to
          take priority over IGF Testing and Integration, ICO and the Contractor
          shall agree a change in schedule, including reasonable IGF schedule
          relief where appropriate.

4.        SOFTWARE UPGRADES AND MULTI-SAN INTEGRATION

4.1       ROLES

4.1.1     ICO shall be responsible for the Operation and Maintenance of the SAN
          and NMC sites after their Handover and shall be the sole point of
          contact for the Contractor to request access to a SAN / NMC after it
          has been handed over to ICO.

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4.1.2     After hand over of an Acceptance Set, that is SAN/NMC and software,
          the Contractor shall continue IGF System Integration and Testing
          activities at the SANs that have not been handed over, including
          multi-SAN testing.

4.1.3     The Contractor shall be responsible, for the FS-2, FS-3, FS-4 Software
          corrections and upgrades at the SANs and BMC that have already been
          handed over to ICO. ICO shall support the Contractor with operations
          and maintenance staff at each SAN site during these correction and
          upgrade activities.

4.1.4     The Contractor shall be responsible, with the support of ICO operation
          & maintenance staff, for the integration of the new SANs and NMC with
          the SANs and BMC that have already been handed over to ICO.
          Configuration data for new SANs being integrated by the Contractor
          into the SANs already handed over to ICO will match or be consistent
          with the configuration data at the SANs already handed over to ICO.

4.1.5     For the purposes of software upgrade (FS-2 to FS-4 inclusive) and
          integration ICO shall make any SANs and the Backup NMC, that have
          already been handed over to ICO, available to the Contractor according
          to a detailed programme.

4.1.6     If these SANs and the Backup NMC, that have already been
          handed over, can not be made available by ICO by the
          scheduled date, ICO shall notify the Contractor, in writing,
          2 weeks before the scheduled date, with the estimated
          schedule.  All schedules following this event will be
          changed accordingly.  In case the change in scheduled date
          of access is more than 2 weeks, the associated impact will
          be dealt with by the Change Request Procedure in Clause 9 of
          the Supply Agreement.  In this case ICO shall issue a Change
          Request with the above written notification to the
          Contractor.

4.1.7     For the FS-2 to FS-3, the FS-2 to FS-4 and the FS-3 to FS-4
          Software upgrades, the SAN Integration Transitions shall be
          as unobtrusive as reasonably possible.  Operation of the
          SANs, already handed over to ICO,

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          shall be maintained with the minimum of interruption. The detailed
          programme for upgrade of SANs shall be agreed by ICO and the
          Contractor. SAN upgrades will be phased so that not all SANs will be
          taken out of operation for upgrade at the same time. That is,
          specified SANs, or blocks of SANs will be sequentially upgraded and
          integrated. In particular, the German SAN and UAE SAN will not be
          simultaneously taken out of operation for software up-grade and
          integration, so that ICO can provide continuous services in the common
          geographic area covered by the German and UAE SANs.

4.1.8     ICO shall permit the Contractor access to the Australian SAN
          and NMC as appropriate, after they have been handed over,
          for the Contractor's continued testing and verification of
          Function Set FS-5. The procedures for testing and verifying
          FS-5 shall be developed such that FS-5 testing is as
          unobtrusive as reasonably possible and minimises unnecessary
          interference with ICO operations at the Australian SAN site
          and the NMC.

4.1.9     ICO shall be responsible for the FS-5 Software Upgrade.  The
          Contractor shall support ICO in the installation of the FS-5
          software upgrade.  The procedures used for upgrading the
          SANs from FS-4 to FS-5 shall be developed by the Contractor
          based on the experience of the three previous upgrades.  The
          level of support provided by the Contractor, shall be
          appropriate to support ICO's execution of the developed
          procedures.

4.2       OPERATIONS DURING SOFTWARE UPGRADES

4.2.1     During the phase when the SANs are being upgraded, there will be a
          period when the handed over SANs will operate with different FSs.

4.2.2     ICO will be able to use the handed over SANs so that the ICO system
          will operate at the lowest FS and, simultaneously, will operate in
          some smaller geographic area defined by the SANs and the IGF
          configuration at the higher FS. That is the new SANs equipped at the
          higher FS are compatible with the SANs equipped at the lower FS.

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5.        RESPONSIBILITIES FOR MANAGEMENT OF OPERATIONAL AND TEST NETWORKS

5.1       GENERAL MANAGEMENT RESPONSIBILITIES

5.1.1     The definitions of the Networks, Operational and Test, are as per SOW
          Annex 7C Network Partitioning. The structuring of Management
          Responsibilities is based around the practicalities of the individual
          entities in the IGF. The Contractor and ICO agree that the following
          systems shall be managed as a single entity because it is not possible
          to separate these platforms:

          -    SRMS

          -    Ground Network

          -    DCN

5.1.2     One SRMC shall be used to provide the Radio Resource Allocation Plan
          for both the RON and the RTN.

5.1.3     The Ground Network shall be configured in a manner that creates the
          logical GON and the GTN.

5.1.4     The DCN shall be used to support Network Management information
          transport for both the ON and TN and shall also be used for
          downloading software to the SANs and NMCs.

5.1.5     The Management of the Operational Network (ON) shall be undertaken by
          ICO.

5.1.6     The Management of the Radio Test Network (RTN) shall be undertaken
          according to Section 5.4.

5.1.7     The Management of the Ground Test Network (GTN) shall be undertaken
          according to Section 5.5.

5.1.8     Management for the purposes of this agreement involves:

          -    Fault Management

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          -    Configuration Management

          -    Performance Management

5.1.9     The joint working arrangements for each of these activities are
          detailed in the following sections.

5.1.10    ICO and the Contractor shall agree single points of contact between
          the Contractor and ICO for managing the joint working arrangements as
          detailed in this Annex.  The authorised individuals are:

          -    ICO: Director of ICONET Operations

          -    The Contractor: The Contractor's Test Controller.

          The authorised individuals will work within the management structure
          of the IGF Supply Agreement.

5.2       FAULT MANAGEMENT

5.2.1     The Contractor shall be responsible for fault management of the SANs
          and NMCs including maintaining fault reporting and problem tracking
          until completion of Handover of Acceptance Set 4

5.2.2     Upon completion of Acceptance Set 4, ICO shall be responsible for
          fault management of the SANs and NMCs including maintaining fault
          reporting and problem tracking. Any faults and/or problems, identified
          prior to the Handover date of Acceptance Set 4, shall be resolved by
          the Contractor in accordance with the agreed plan for resolution and
          closure of such faults. The process for management of the resolution
          of pre -Acceptance Set 4 faults and/or problems by the Contractor is
          as defined in Annex 8A. Any faults and/or problems identified after
          the Handover Date of Acceptance Set 4 shall be resolved by the
          Contractor in accordance with either clause 4 or clause 40 of the
          Supply Agreement, depending upon the nature of the identified fault
          and/or problem. The process for management of the resolution and
          closure of post Acceptance

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          Set 4 faults and/or problems by the Contractor will be defined in a
          procedure to be agreed between ICO and the Contractor.

5.2.3     The Contractor shall make its SITG Problem Tracking Reports and its
          Fault Reporting Access Database available to ICO in accordance with
          clause 20 of the Supply Agreement.

5.2.4     Where ICO identifies faults and/or problems on SAN or NMC equipment
          (either hardware, software, or both) prior to the Handover Date of
          Acceptance Set 4, ICO shall inform the Contractor of such faults using
          the Fault Reporting process (as it may be varied from time to time)
          that has been implemented between ICO and NEC. Where necessary and
          appropriate, ICO shall advise the Contractor of the status of SAN or
          NMC equipment. After the completion of the Handover of Acceptance set
          4, if the Contractor identifies faults and/or problems with the SAN or
          NMC equipment (either hardware, software, or both) the Contractor
          shall report such faults and/or problems to ICO using the Fault
          Reporting process (as it may be varied from time to time) that has
          been implemented between ICO and the Contractor.

5.3       CONFIGURATION MANAGEMENT

5.3.1     The Contractor shall be responsible for Configuration Management of
          the SANs and NMCs prior to each Acceptance Set handover, that is AS 1,
          2, 3 and 4.

5.3.2     ICO shall be responsible for Configuration Management of the SAN and
          NMC equipment after handover.

5.3.3     Configuration Management includes:

          -    Defining, implementing and maintaining the documentation defining
               the physical build of the IGF, that is the equipment installed
               and its interconnection

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          -    Defining, implementing and maintaining the documentation defining
               the software that is built into the IGF, including software
               releases and subsequent software patches.

          -    Defining, implementing and maintaining the documentation defining
               the configuration information that is used for the proper
               functioning of the IGF.

          -    Ensuring that the equipment as configured and the documentation
               defining the configuration are consistent.

5.3.4     The Contractor shall provide Software configuration data in a soft
          copy format, compatible with ICO's planned Configuration Management
          tool, which ICO will import into its planned Configuration Management
          tool.

5.3.5     ICO shall be responsible for the configuration management of shared
          resources as defined in Sections 5.4, 5.5 and 5.6. As part of these
          responsibilities ICO will implement the configurations that the
          Contractor requires for the purposes of IGF Integration and Testing
          and also ICONET Integration. The Contractor will be responsible for
          defining the configuration that they require ICO to implement for the
          TN.

5.3.6     The Contractor and ICO shall use the Computerized Inventory Management
          System (CIMS) for handling hardware inventory.

5.4       SRMS

5.4.1     ICO shall, after AS-2, operate the SRMS at the Backup NMC to generate
          the appropriate SRM Data needed by the RON and the RTN. The process
          for management of the SRM Data after AS-2 handover shall include Input
          Files to SRMS and Data Generation and Distribution by SRMS:

          -    The Contractor shall provide ICO with the RTN configuration they
               require for the purposes of build, integration testing of the IGF
               and for II testing (where the contractor is required to execute a
               relevant

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

               II campaign). The details of the information and its format will
               be agreed by ICO and the Contractor.

          -    ICO shall be responsible for modification of input files to SRMS
               as well as creating and delivering the configuration data that
               will be used by the RON and RTN by utilising SRMS. In the event
               of inconsistencies between ICO requirements and the Contractor
               requirements ICO will resolve the inconsistencies using a process
               that will be agreed by ICO and the Contractor.

          -    ICO shall be responsible for the distribution of the RON and RTN
               configuration data (generated by the SRMS) using the data
               distribution scheduling as defined in the SRMS SDD 670027.

5.5       GROUND NETWORK

5.5.1  General Principles

          The following basic principles apply to the management of
          configuration data for the MSSCs and HLRs:

          -    The MSSC Data Transcript is based on the ICO Network Information
               Binder (NIB).

          -    Within the Ground Test Network, the Contractor shall be able to
               apply test configurations and restore the original configuration
               based on the NIB.

          -    Perceived discrepancies in the Data Transcript will be resolved
               against the NIB.

          -    Changes to the Data Transcript will be performed through a
               centrally controlled process that will be agreed by ICO and the
               Contractor.

                                       11       Confidential and Proprietary to
                                                ICO Global Communications
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--------------------------------------------------------------------------------

5.5.2  Control

      (i)   The Contractor shall be responsible for management of configuration
            data prior to AS-3 Handover at which point the responsibility will
            be transferred to ICO.

      (ii)  ICO and the Contractor will jointly resource a central team that
            will execute the changes to configuration data.

      (iii) Until AS-4 handover the order of priorities to be applied for
            management decisions will be:

            Priority 1               IGF
            Priority 2               II
            Priority 3               ORT/POFT

            From the beginning of POFT the underlying approach to all activities
            will be to cause the minimum impact to the operation of the GON

5.5.3     Process

          The Process for management of the configuration data for the MSSC and
          HLRs during the Phased SAN Handover will be based on the above
          principles. The details of the Process will be formulated and agreed
          by ICO and the Contractor.

5.6   DCN

5.6.1     ICO shall be responsible for operating and maintaining the DCN network
          from AS-2 handover.

5.6.2     The following process shall be followed after AS-2 handover.

          -    The DCN is as defined in the IGF. It is anticipated that the DCN
               will be configured as planned for the IGF and that there will be
               no configuration changes for the DCN to support implementation
               and testing of either the IGF or for II.

          -    It is anticipated that the normal operational configuration of
               the DCN shall be as defined in IGF DCN SAN & NMC LAN SDD A70428
               and A Study Report on the Design of DCN WAN A70252 so as to
               support the planned traffic level as defined in WGA TN704271.

                                       12       Confidential and Proprietary to
                                                ICO Global Communications
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--------------------------------------------------------------------------------

          -    The DCN configuration includes emergency condition configurations
               and in the event of such an emergency event the fault reporting
               process will be used and ICO will execute its planned contingency
               configuration.

5.6.3     Until AS-4 handover the order priorities to be applied for management
          decisions will be:

          Priority 1               IGF

          Priority 2               II

          Priority 3               ORT/POFT

          From the beginning of POFT the underlying approach to all activities
          will be to cause the minimum impact to the operation of the GON.

6.        PERFORMANCE MANAGEMENT

6.1       ICO shall be responsible for the performance management of the ON. The
          Contractor shall be responsible for performance management of the
          shared resources prior to handover to ICO. ICO shall be responsible
          for performance management of the shared resources and procedures as
          follows:

          -    SRMS after AS-2 handover

          -    GN after AS-3 handover

          -    DCN after AS-2 handover.

6.2       The Contractor and ICO shall jointly develop and implement a set of
          Key Performance Indicators that will cover:

          -    Network performance, for example, network availability including
               DCN network availability as derived from the IGFR, Inter-MSSC
               link availability and MSSC transit and gateway availability.

          -    Performance of the process that has been jointly agreed by the
               Contractor and ICO, for example, number of faults and their
               average clearance time.

                                       13       Confidential and Proprietary to
                                                ICO Global Communications
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--------------------------------------------------------------------------------

6.3       The authorised individuals shall regularly meet to review actual
          performance against the agreed Key Performance Indicators. In the
          event of failure by ICO to achieve the Key Performance Indicators and
          where it can be demonstrated that failure to achieve the Key
          Performance Indicators has impacted on IGF activities, reasonable IGF
          schedule relief may be granted.

7         SAN SITE ACCESS CONDITIONS

7.1       All on-site work at TT&C SAN sites shall cease during the period
          commencing 2 days before and ending 2 days after the launch at all 6
          TT&C sites save in respect of the following activities:

          -    The Loading of Software and Data transcripts into the MSSC, TNM,
               SBS or peripheral subsystems but always avoiding all work,
               Physical or Software, on any of the RFTs, CDSs or RFT OAM at any
               of the 6 TT&C sites.

          While this may cause some inconvenience for the Contractor, any work
          deemed "essential" will be treated as falling within an "emergency"
          category and shall receive full and proper consideration.

7.2       For avoidance of doubt, there will be no physical installation or
          modification of equipment, racks or cabling of any kind on any of the
          Subsystems during this period by the Contractor or its Principal
          Subcontractors, or their local contracted support entities, at any of
          the 6 TT&C sites. The only exception to this restriction is work
          specifically approved by ICO and the Contractor to be undertaken by
          relevant personnel at the TT&C sites needed to support the Satellite
          Launch.

7.3       If certain conditions are achieved earlier than 2 days following
          launch ICO will notify the Contractor that work may resume on specific
          equipment at the sites.

                                       14       Confidential and Proprietary to
                                                ICO Global Communications
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7.4       No work is permitted to be undertaken on  2 TT&C RFTs at all 6 TT&C
          sites during the period 7 days before and 12 days after each Satellite
          launch. While this may cause some inconvenience for the Contractor,
          any work deemed "essential" will be treated as falling within an
          "emergency" category and shall receive full and proper consideration
          and shall, in any event, require prior authority from the SCC via the
          ICO's established control procedures.

7.5       When the Contractor's test teams are on site at TT&C SAN sites, the
          Contractor will agree with ICO which RFT chains are made available for
          ICO's use, in accordance with Clause 34.7 of the Supply Agreement.

7.6       In the periods specified in clauses 7.1 and 7.4 and all times after
          successful launch of an ICO Satellite when the Contractor's test teams
          are on site at a TT&C SAN site they cannot perform any activity that
          could directly affect TT&C Operations without prior consultation with
          and approval by ICO's Director of ICONET Operations. The Contractor's
          test team shall give prior notice to ICO's Director of Operations of
          any plans to take control of any RFTs. The Contractor will make
          alternative RFTs available during the Contractor's test team work
          according to the Clause 34 in the Supply Agreement. The Contractor
          shall insure that any RFTs taken under its control will be operational
          when control is relinquished back to ICO with the agreed settings
          consistent with TT&C operation.

7.7       Due to known compatibility issues between the RFT simulator and RFT
          Chain 1 this RFT chain will not be used by ICO when the Contractor's
          test teams are on site unless it is required by ICO for Satellite
          Control operations.

                                       15       Confidential and Proprietary to
                                                ICO Global Communications
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--------------------------------------------------------------------------------

7.8       If the Contractor can reasonably demonstrate that compliance with
          these Site Conditions shall have unavoidably delayed the Contractor
          from starting or completing, any scheduled work pursuant to this
          Agreement then,

          -    such delays shall be accounted for by a an appropriate extension
               of time, as the parties agree, being applied to the overall
               program schedule;

          -    ICO shall meet all associated documented costs incurred by the
               Contractor as a result of such delays;

                                       16       Confidential and Proprietary to
                                                ICO Global Communications
<PAGE>   2500
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                                                            EN-IG-ICO-SW-000870
[ICO LOGO]      Annex 7C Network Partitioning               Issue 3.0
                                                            27 April 2000
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[ICO LOGO]

                                                       ICO GLOBAL COMMUNICATIONS
                                                         1 QUEEN CAROLINE STREET
                                                                     HAMMERSMITH
                                                                   LONDON W6 9BN
                                                                  UNITED KINGDOM

                                                          TEL: +44 181 600 10000
                                                           FAX: +44 181 600 1199

                                                           I-CO SERVICES LIMITED
                                               REGISTERED IN ENGLAND: NO.3045294
                                         REGISTERED OFFICE: 1 QUEEN CAROLINE ST.
                                                                LONDON W6 9BN UK

              -----------------------------------------------------
                          ANNEX 7C NETWORK PARTITIONING
              -----------------------------------------------------

                        COMMERCIALLY SENSITIVE
                        REPRODUCTION PROHIBITED

CONFIDENTIALITY STATEMENT

ALL INFORMATION CONTAINED IN THIS DOCUMENT IS CONFIDENTIAL AND PROPRIETY TO ICO
GLOBAL COMMUNICATIONS OR ANY OTHER MEMBER OF THE ICO GLOBAL COMMUNICATIONS GROUP
AND INTENDED ONLY FOR THE ADDRESSEE TO WHOM THIS COPY IS ADDRESSED. THE
RECIPIENT SHALL NEITHER COPY, DISTRIBUTE, DISCLOSE OR USE THE INFORMATION
CONTAINED IN IT FOR ANY PURPOSE OTHER THAN FOR WHICH THIS DOCUMENT HAS BEEN MADE
AVAILABLE NOR PERMIT ANYONE ELSE TO DO THE SAME. THE RECIPIENT SHALL BE HELD
FULLY LIABLE FOR ANY WRONGFUL DISCLOSURE OR USE OF ANY OF THE INFORMATION
CONTAINED IN THIS DOCUMENT BY HIM, OR HIS OFFICERS OR EMPLOYEES OR ANYONE ELSE
TO WHOM HE MAKES THE INFORMATION AVAILABLE.

            -----------------------------------------------------
            DOCUMENT NO.:     EN-IG-ICO-SW-000870
            -----------------------------------------------------
            VERSION:           3.0
            -----------------------------------------------------
            DATE:             27 April 2000
            -----------------------------------------------------

     ------------------------------------------------------------------------
     PREPARED                        AUTHORISED            APPROVED
     ------------------------------------------------------------------------
     AUTHOR: P POSKETT/A  FUJII        MANAGER:          SENIOR MANAGER:

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

                                       1        Confidential and Proprietary to
                                                      ICO Global Communications
<PAGE>   2501
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AMENDMENT RECORD

<TABLE>
<CAPTION>
==========================================================================
REVISION     DATE      CN NO.   REASON FOR CHANGE
==========================================================================
<S>          <C>       <C>      <C>
0.1          29/4/99            First draft based on Annex 7B
--------------------------------------------------------------------------
0.2          30/4/99            Second draft
--------------------------------------------------------------------------
0.3          11/05/99           Revised by NEC
--------------------------------------------------------------------------
0.4          12/05/99           ICO and NEC re-work
--------------------------------------------------------------------------
0.5          12 &               ICO Modifications
             13/05/99
--------------------------------------------------------------------------
0.5.1        14/05/99           ICO glt modifications
--------------------------------------------------------------------------
0.5.2        14/5/99            Further ICO Modifications
--------------------------------------------------------------------------
0.5.3        17/5/99            More ICO comments
--------------------------------------------------------------------------
0.5.4        18/5/99            NEC counter modification
--------------------------------------------------------------------------
0.6          19/5/99            Final
--------------------------------------------------------------------------
0.7          3/6/99             Work Plan Dates referenced to signing
                                PSH C.O.
--------------------------------------------------------------------------
1.0          3/6/99             Reflect agreements of NEC/ICO Meeting
                                3/6/99
--------------------------------------------------------------------------
2.0          3/4/00             Revised by NEC
--------------------------------------------------------------------------
2.0.1        5/4/00             Technical part revision by NEC
--------------------------------------------------------------------------
3.0          27/4/00            Reflect ICO/NEC Agreements on 27/4/00
--------------------------------------------------------------------------
</TABLE>

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1    INTRODUCTION

1.1  This Annex sets out the implementation objectives, and work plan for Radio
     Network Partitioning and Ground Network Partitioning. The objective of
     Network Partitioning is to split the total ICO Network into two parts which
     can operate simultaneously, one part which will be used to carry user
     traffic, the other to carry test traffic.

1.2  Section 4 sets out the objectives of the Radio Network Partitioning and
     Ground Network Partitioning. The objectives should be achieved with a
     minimum of changes to equipment used in the Network, including IGF and UTs.

2     WORKPLAN FOR NETWORK PARTITIONING

2.1  The Contractor shall develop and document the detailed design change to IGF
     for Radio Network Partitioning function three months after signing C.O 24 .

2.2  The Design Change to IGF for Radio Network Partitioning function shall be
     finalised and approved by ICO one month after submission of the Design
     Document (ref.: 2.1).

2.3  The Contractor shall provide the Work Plan for implementation of the Radio
     Network Partitioning two months after approval of the design changes to IGF
     for Network Partitioning function.

2.4  The Ground Network Partitioning shall be implemented and managed as set
     forth in SOW ANNEX 7B.

2.5  The DCN shall be managed as set forth in SOW ANNEX 7B.

3    DEFINITIONS

3.1  The Network comprises all of the SANs, NMC and BMC and their
     interconnection.

3.2  The Network comprises the Radio Network, the Ground Network and the DCN (as
     currently defined in the IGF).

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3.3  The Radio Network comprises: the subsystems used at the SANs to provide
     radio communications, that is the RFTs, IDS, CDS, SBS, TNM, HPN, SAN SRMS,
     and the SRMC at the NMCs.

3.4  The Ground Network (GN) comprises the Switching Systems (as defined in the
     IGF) and their interconnection and the A and ISUP interface connections
     with the TNM.

3.5  The Operational Network (ON) is defined as those parts of the Network that
     are in use for operational traffic. That is all other traffic than that
     used to test the network. The ON comprises the Radio Operational Network
     (RON) and the Ground Operational Network (GON).

3.6  The Test Network (TN) comprises the Radio Test Network (RTN) and the Ground
     Test Network (GTN).

3.7  ICO's use of the non-handed over MSSCs and HLRs comprises: transit traffic
     within the IGF and for MO calls to the PSTN and also for MT calls from the
     PSTN. See Figure 1 -ICO Traffic Illustrative MO Calls and Figure 2 ICO
     Traffic - Illustrative MT Calls which illustrates the supported traffic.
     ICO's traffic will not use the TNM or SBS at the non-handed over SAN sites,
     that is ICO will not generate MO or MT test calls and will not register ICO
     test users on the MSSCs at the non-handed over SANs.

4    OBJECTIVES OF NETWORK PARTITIONING

The agreed Objectives for Network Partitioning of the ICO system into a Test
Network and Operational network are set out below.

NOTE: The primary objective is to allow concurrent operation of operational and
test networks in such a way that the traffic on the Operational Network has zero
or at least minimal degradation from the traffic and other activities on the
Test Network and vice versa . ICO is willing to consider modifications to these
objectives if they can be shown to support the primary objectives and
particularly if they can support:

     -    minimal or zero changes to UTs

     -    upgrade of SAN software and functionality SAN-by-SAN with minimum loss
          of service

     -    addition and removal of SANs to the Network with minimum loss of
          service.

4.1  The Network Partitioning shall provide for simultaneous operation of a Test
     Network (TN) with an Operational Network (ON).

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4.2  The Radio Test Network (RTN) shall provide communications services between
     'test' UT/SIMs and the GN via the RFT/SBS/TNMs of a configurable group of
     'test' SANs. The Radio Operational Network (RON) shall provide
     communications services between 'operational' UT/SIMs and the GN via the
     RFT/SBS/TNMs of a separate and distinct configurable group of 'operational'
     SANs.

4.3  The RTN and the RON shall share simultaneous access to all accessible
     operational satellites.

4.4  The RTN shall provide radio communications with Test UT/SIMs and shall
     prevent Operational UT/SIMs from attempting radio communications with the
     RTN. The RON shall provide radio communications with Operational UT/SIMs
     (as already defined in the IGFR) and shall prevent Test UT/SIMs from
     attempting radio communications with the RON. (Both Operational and Test
     UT/SIMs would be able to listen for and receive BCCH from either the RTN or
     the RON. The Cell Bar flag or different ICO MNC/MCC codes in the BCCH may
     need to be used for this purpose.

4.5  The Network Partitioning Design shall not require any changes to the Air
     Interface. The Network Partitioning design shall assume minimum differences
     between the mobile equipment used in the Test UT and the Operational UT.
     The SIM of the Test UT may have different data from the Operational UT.

4.6  The ON shall provide the Functional Sets as defined in Annex 1.

4.7  The RN shall generate separate sets of Common Control Channels for the RTN
     and RON, including their information contents. The RN shall generate BTFPs
     which support simultaneous operation of the RTN and the RON.

4.8  The RN shall generate satellite channelisation plans that define satellite
     resources corresponding to the combined RTN and RON BTFPs.

4.9  The RTN shall provide radio coverage of designated areas of the ground (RTN
     ground areas) via all satellites and RTN SANs which can provide coverage to
     those RTN ground areas. The RON shall provide radio coverage of designated
     areas of the ground (RON ground areas ) via all satellites and RON SANs
     which can provide coverage to those RON ground areas. The number of spot
     beams to cover the RTN shall be limited to [TBD] spot beams, and/or the RTN
     ground area shall be limited. [TBD]

4.10 The CCCH BTFP for the RTN shall consist of one CCCH set (BCCH, RACH, PAGCH)
     in each beam providing coverage of RTN ground areas. The CCCH BTFP for the
     RON shall be as defined in the IGFR. The DCH BTFP for the combined RTN and
     RON shall be as defined in the IGFR with the following changes; the DCH
     BTFP shall provide an additional common configurable

                                       5        Confidential and Proprietary to
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     number of 25kHz frequency slots for every spot beam covering the RTN ground
     areas.

4.11 The RTN and RON coverage may overlap, i.e. ground areas shall be able to be
     designated as simultaneously part of the RTN and of the RON. In such
     overlap areas the IGF shall be able to provide multiple sets of resources
     (CCCH and DCH) in a spot beam; one set for SANs of the RON and one set for
     SANs of the RTN.

4.12 The GN shall provide a GTN and GON by creating logically distinct 'test'
     and 'operational' partitions. Each partition shall provide services as
     delivered by the IGF to the respective UT/SIMs. That is the Test UT/SIM
     shall access services in the GTN and operational UT/SIMs shall access
     services in GON.

4.13 For HPN, the Radio Network shall provide simultaneous coverage of a single
     combined TN and ON; the GN shall be configurable to provide escalation to
     either operational or test UTs on an individual subscriber basis consistent
     with the current IGF.

4.14 The GN shall provide the means to control, according to the definition of
     the type of user (either test or operational) , access to the networks,
     teleservices, bearer services, supplementary services and ICO specific
     services.

4.15 The GN (both GTN and GON) shall be configurable to allow and separately
     control the routing of traffic to/from 'operational' UT/SIMs and to/from
     'test' UT/SIMs, including teleservices, bearer services, supplementary
     services and ICO specific services and their associated signalling traffic
     to:

          -    IGF terrestrial network elements

          -    IGF terrestrial routes, including but not limited to,
               MSSC-to-TNM, MSSC-to-MSSC and MSC-to-ISC

4.16 The GN shall provide the means to create multiple logical networks (defined
     as services and user groups) that can operate on physically separate, and
     overlapping subsets, or the full GN.

4.17 The Digital Communication Network (DCN) is required to reliably transmit
     network management communications between:

          -    the NMC/BMC and the network management systems at the SAN sites

                                       6        Confidential and Proprietary to
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          -    the BOSS and the MSSCs, and other equipment that provides billing
               information and requires provisioning data. (Note the connection
               of the BOSS into the DCN will be the subject of a separate ICO
               Change Request)

          -    the NMC/BMC and the BOSS for the exchange of fault information.

4.18 The physical separation of operational traffic and test traffic on the DCN
     is unrealistic and therefore the DCN will be managed by the Contractor
     prior to AS-2. Post handover of AS-2 ICO will be responsible for operating
     the DCN. The Contractor and ICO agree to provide communication services
     over the DCN to a given set of service levels which will be based on the
     performance standards as defined in the IGFR. Both ICO and the Contractor
     agree that the traffic loads that will placed on the DCN are as planned in
     the definition of traffic loads as defined in WGD document WGA TN 70427 B1
     A Study Report on DCN Traffic Models.

5.   IMPLEMENTATION

5.1  The Contractor shall implement the Network Partitioning in accordance with
     the Work Plan referred to in Section 2. above.

                                       7        Confidential and Proprietary to
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                                                            27 April 2000
-------------------------------------------------------------------------------

              [ICO TRAFFIC -- ILLUSTRATIVE MO CALLS FLOW CHART]

                                       1        Confidential and Proprietary to
                                                      ICO Global Communications
<PAGE>   2508
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[ICO LOGO]      Annex 7C Network Partitioning               Issue 3.0
                                                            27 April 2000
-------------------------------------------------------------------------------

             [ICO TRAFFIC -- ILLUSTRATIVE MT CALLS FLOW CHART]

                                       2        Confidential and Proprietary to
                                                      ICO Global Communications
<PAGE>   2509
                                                       ICO GLOBAL COMMUNICATIONS
                                                              COMMONWEALTH HOUSE
                                                   2 CHALKHILL ROAD, HAMMERSMITH
                                                                   LONDON W6 8DW
                                                                  UNITED KINGDOM

[ICO LOGO]                                             TEL: +44 (0) 20 8600 1000
                                                       FAX: +44 (0) 20 8600 1199

                                                           I-CO SERVICES LIMITED
                                               REGISTERED IN ENGLAND: NO.3045294
                                             REGISTERED OFFICE: 2 CHALKHILL ROAD
                                                                LONDON W6 8DW UK

                       ---------------------------------
                            ANNEX 8A - IGF TEST PLAN
                       ---------------------------------

                             COMMERCIALLY SENSITIVE
                             REPRODUCTION PROHIBITED

CONFIDENTIALITY STATEMENT

ALL INFORMATION CONTAINED IN THIS DOCUMENT IS CONFIDENTIAL AND PROPRIETY TO ICO
GLOBAL COMMUNICATIONS OR ANY OTHER MEMBER OF THE ICO GLOBAL COMMUNICATIONS GROUP
AND INTENDED ONLY FOR THE ADDRESSEE TO WHOM THIS COPY IS ADDRESSED. THE
RECIPIENT SHALL NEITHER COPY, DISTRIBUTE, DISCLOSE OR USE THE INFORMATION
CONTAINED IN IT FOR ANY PURPOSE OTHER THAN FOR WHICH THIS DOCUMENT HAS BEEN MADE
AVAILABLE NOR PERMIT ANYONE ELSE TO DO THE SAME. THE RECIPIENT SHALL BE HELD
FULLY LIABLE FOR ANY WRONGFUL DISCLOSURE OR USE OF ANY OF THE INFORMATION
CONTAINED IN THIS DOCUMENT BY HIM, OR HIS OFFICERS OR EMPLOYEES OR ANYONE ELSE
TO WHOM HE MAKES THE INFORMATION AVAILABLE.

            -----------------------------------------------------
            DOCUMENT NO.:     EN-IG-ICO-SW/000009
            -----------------------------------------------------
            VERSION:          3.0
            -----------------------------------------------------
            DATE:

                                 27 April, 2000
            -----------------------------------------------------

     ------------------------------------------------------------------------
     PREPARED                 ICO                     NEC
     ------------------------------------------------------------------------
     AUTHOR: TOSHIO MIZUNO,   TITLE:                  TITLE:
     KEITH HUNGERFORD
     ------------------------------------------------------------------------
                              SIGNATURE:              SIGNATURE:

     ------------------------------------------------------------------------
<PAGE>   2510
AMENDMENT RECORD

<TABLE>
<CAPTION>
==========================================================================
REVISION    DATE     CN NO.    REASON FOR CHANGE
==========================================================================
<S>         <C>      <C>       <C>
1.0         14/2/97            NEC Contract Issue
--------------------------------------------------------------------------
2.0         17/2/97            To incorporate final NEC comments
--------------------------------------------------------------------------
2.1         18/2/97            Further final NEC comments incorporated
--------------------------------------------------------------------------
2.2         18/2/97            Further final NEC comments incorporated
--------------------------------------------------------------------------
2.3         26/2/97            Minor editorial changes
--------------------------------------------------------------------------
2.4         11/5/99            Changes to incorporate amendments related
                               to Phased SAN Handover
--------------------------------------------------------------------------
 2.4.       13/5/99            Para 5.1.9, 5.1.10 deleted, 4.7 bullet
Draft 1                        added, 5.1.6 & 6.2.4 & 5.4.5 change
                               wording delete Table 1
--------------------------------------------------------------------------
2.4 Draft   19/5/99            ICO proposed changes
2, 3
--------------------------------------------------------------------------
2.5         20/5/99            After first round discussion ICO - NEC PO
--------------------------------------------------------------------------
2.6         25/05/99           Additional ICO proposed changes
--------------------------------------------------------------------------
2.6.1       25/05/99           Add 5.4.11 and amend 5.4.2
--------------------------------------------------------------------------
2.7         26/5/99            Changes agreed ICO - NEC PO: 1.1, 1.5,
                               4.7, 5.3, 5.4, 5.5, 6.2
--------------------------------------------------------------------------
2.8         27/5/99            Changes to 5.4.2,
--------------------------------------------------------------------------
2.8.1       1/6/99             Define test documents
--------------------------------------------------------------------------
2.8.2       2/6/99             Amend definition of test documents
--------------------------------------------------------------------------
2.8.3       2/6/99             Amend definition of test documents based
                               on KH - RS discussion
--------------------------------------------------------------------------
2.9         3/6/99             Further amend test documents definition
--------------------------------------------------------------------------
2.10        3/6/99             Amend reference to Phase 2 to Phase 2-1
                               in section 1.7
--------------------------------------------------------------------------
2.11        11/4/00            To incorporate new para 6.1.4 to reflect
                               NEC/ICO discussions on 10 April 2000
--------------------------------------------------------------------------
            19//4/00           Minor revision to Para 6.1.4
--------------------------------------------------------------------------
2,12        24/4/00            Fixed typo at Para 6.1.4
--------------------------------------------------------------------------
3.0         27/4/00            Revised to reflect ICO/NEC Agreements
                               27/4/00
--------------------------------------------------------------------------
</TABLE>

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<TABLE>
<S>                                                                      <C>
1.  INTRODUCTION                                                           1

2.  SCOPE                                                                  3

3.  TEST HIERARCHY AND OBJECTIVES                                          3

4.  FACTORY PRE-INTEGRATION TEST FACILITIES                                4

5.  ICONET GROUND FACILITIES TEST PHASES                                   7

6.  ROLES & RESPONSIBILITIES                                              13
</TABLE>

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1.        INTRODUCTION

1.1       This Annex describes the Test Plan for the IGF. The Master IGF Test
          Plan Document (WGB-700056) shall be further developed during the
          course of the Supply Agreement. The aim of testing is to verify the
          functionality and performance of the Equipment in accordance with the
          IGFR.

1.2       Test requirements are defined for individual IGF components,
          meaningful integrated configurations, and the overall IGF system,
          forming a hierarchy of test campaigns to achieve final satisfactory
          operation of the IGF system.

1.3       This Annex covers both in-factory and in field testing, and formal and
          informal test campaigns. The detailed test requirements, plans,
          acceptance criteria, scripts and VCRMs (Verification Cross-Reference
          Matrixes) for each section of the testing shall be developed during
          the course of the Supply Agreement.

1.4       The purpose of this Annex is to:

          -    define general test methodologies, and standards to be followed
               in testing the Equipment

          -    provide the high level objectives and pre-requisites of each set
               of tests

          -    act as a "master" document at the top of a test document
               hierarchy, which shall be generated to cover the detailed test
               requirements for each of the individual test campaigns required

          -    provide a framework, tying together the individual campaign test
               plans

1.5       The Contractor shall provide documentation for formal IGF testing for
          ICO's review and approval. The details of the documentation and the
          timing for supply of draft and final versions shall be as defined in
          Annex 6 - Documentation.

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1.6       The requirements of this section 1.6 shall apply to TRDs for Phase 3
          testing. The Test Requirements Documents (TRD) may at the Contractor's
          discretion be delivered as a separate document for each test campaign
          or combination of campaigns. Each TRD shall identify the applicable
          test campaign. Each TRD shall list the tests to be conducted. Each
          test shall have a unique test identifier, which can be used in the
          VCRM for tracing. For each test, the TRD shall provide the following:

          -    Unique identifier

          -    Test objective

          -    General test description - test target, initial conditions, test
               scope or limitations (may be analysis or inspection or
               demonstration if appropriate)

          -    Pass/Fail criteria

          -    Requirement(s) addressed (eg IGFR reference)

1.7       The VCRM (Verification Cross Reference Matrix) is to be used as a tool
          for tracing between tests and the IGFR, and thus to facilitate
          agreement between ICO and the Contractor on Test Requirements
          Documents for Phase 1, Phase 2-1 and Phase 3 tests. Once all the TRDs
          are agreed the use of the VCRM will end. The VCRM shall list for each
          IGFR the unique identifier(s) of the verification method(s) (including
          tests, analyses, inspections and demonstrations) which contribute to
          the evidence that the requirement is met. In order to further
          facilitate the agreement of the TRDs, the VCRM shall also show which
          IGFRs will be addressed in a future issue of the VCRM.

1.8       The VCRM may at the Contractor's discretion be delivered as an initial
          issue, followed by updated versions associated with each TRD as it is
          delivered. If this procedure is used, Draft and Final versions shall
          be provided at the same time as or before the corresponding Draft and
          Final TRDs. The initial issue and updated versions shall be complete
          with respect to IGFR coverage, the missing information being limited
          to the test identities which are to be defined in a future version.

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2.    SCOPE

2.1       This Annex describes both informal and formal testing of IGF
          Equipment.

2.2       The Contractor shall ensure that informal testing of IGF units and
          sub-systems shall be carried out by the manufacturer of the Equipment
          as part of its internal design verification and may be observed by ICO
          Staff.

2.3       Formal testing shall be carried out by the Contractor and shall be
          witnessed by ICO Staff.

2.4       Formal Testing shall be limited to Phase 1 Subsystem Testing, Phase
          2-1 Installation Testing and Phase 3 IGF System Testing for each
          Acceptance Set (including testing for integration with previously
          handed over Equipment).

2.5       This Annex does not include conformance, verification or integration
          testing of other elements of the ICO system not procured by the
          Contractor such as UTs, Satellites, SCC, PCS, PLMN, ADC,
          Administration Systems and Inter SAN/NMC links.

3.       TEST HIERARCHY AND OBJECTIVES

3.1      Test requirements shall be defined for individual units and subsystems
         of Equipment as well as the overall IGF system.

3.2      The IGF Unit and Sub-system Testing shall cover testing as specified in
         the Master IGF Test Plan Document, to verify and/or validate that all
         requirements of the IGFR have been met.

3.3      All tests shall be uniquely identified and traceable from the IGFR via
         VCRMs.

3.4      All tests shall have clear, comprehensive and unambiguous pass/fail
         criteria that may be demonstrated during testing.

3.5      All tests shall have clear, comprehensive and unambiguous test
         conditions, so that test results may be obtained in a controlled and
         repeatable way.

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4.       FACTORY PRE-INTEGRATION TEST FACILITIES

4.1      These informal tests combine subsystems incrementally to provide
         confidence of operation of completed SANs and NMC, prior to delivery of
         Equipment to Site.

4.2       The Contractor shall provide Factory Pre-Integration Test Facilities
          for use in the integration and development testing. Testing carried
          out on the test facilities shall be informal. The Factory
          Pre-Integration Test Facility shall be implemented in 3 stages:

          -     Stage 1     Intra SAN Simulation

          -     Stage 2     Inter SAN  Simulation

          -     Stage 3     Inter SAN Network Simulation

4.3       Special Test Equipment (STE) as set out in Annex 2 Section 4.2 shall
          be supplied by ICO for use by the Contractor as required.

4.4       Stage 1 - Intra SAN Simulation

4.4.1     The Stage 1 Test Facility shall be located in Australia and shall be
          used for IGF pre-integration testing of but not be limited to:

          -    TNM/MSSC all protocol validation including Teleservices, Bearer
               Service, and Supplementary GSM Services protocol

          -    Some agreed ICO Specific Services

          -    Operation and Maintenance Functions

          -    Call Connectivity

          -    Terrestrial Network Manager Functions and

          -    Vocoder

          to ensure that those subsystems relevant to services/functions above
          interwork with each other. Major subsystems to be tested are TNM and
          MSSC and related peripheral.

4.4.2     ETL shall deliver a combined MSSC/VLR/HLR to the Australian Test
          Facility as detailed in Annex 4.

4.4.3     NEC/A shall deliver the TNM and the TNM-OAM to the Australian Test
          Facility as detailed in Annex 4.

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4.4.4     The test facility at Australia shall be used to integrate the
          following subsystems: -

          -    MSSC

          -    Terrestrial Network Manager (TNM)

          -    Home Location Register (HLR)

          -    GSM Tester

4.4.5     ICO shall deliver a GSM tester which shall be capable of being used
          for simulating the GSM Base Stations and UTs, to the Australian Test
          Facility as detailed in Annex 4.

4.5       Stage 2 - Inter SAN (with Channel Manager) Simulation

4.5.1     The Stage 2 Facility shall incorporate Test Facilities located in the
          USA and Australia, and shall be used for IGF pre-integration testing
          between the Australian and USA Test Facilities for development testing
          of:

          -    Inter-working between two MSSCs, as per Stage 1 but with two
               physically separated MSSCs.

          -    MSSC and SBS interfaces with the TNM

          -    MSSC and High Penetration Notification Controller
               (HPN-Controller) interfacing

          -    Terrestrial Network Management Functions

          Major subsystems to be tested in this stage are interworking among
          SBS, TNM and MSSC.

4.5.2     The Stage 1 Test Facility equipment shall be used during Stage 2
          testing. The following additional equipment shall be supplied as
          defined in Annex 4 for Stage 2 testing.

4.5.3     ETL shall deliver a combined MSSC/VLR/HLR to the USA Test Facility as
          detailed in Annex 4.

4.5.4     ETL shall deliver an HPN-Controller to the USA Test Facility as
          detailed in Annex 4.

4.5.5     NEC/A shall deliver TNM to the USA Test Facility as detailed in Annex
          4.

4.5.6     HNS shall deliver an SBS, including Channel units, to the USA Test
          Facility as detailed in Annex 4.

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4.5.7     HNS shall deliver an SBS, including Channel Units, to the Australian
          Test Facility as detailed in Annex 4.

4.5.8     ICO shall deliver a GSM tester which shall be capable of being used
          for simulating the GSM Base Stations and UTs to the USA Test Facility
          as detailed in Annex 4.

4.6       Stage 3 - Inter SAN Network Simulation

4.6.1     The Stage 3 Facility shall incorporate a Test Facility, located in
          Japan, and shall be used for IGF pre-integration testing between the
          Australian, USA and NEC Yokohama Test facilities for development
          testing of:

          -    DCN

          -    Functional Tests on TNM

          -    Interface Test on, - NMC/SRMC and SAN

          -    Operation and Maintenance Interfaces between MSSC/OSS and NMC

          At this stage, interworking among all subsystems in the IGF is to be
          tested.

4.6.2     The Stage 2 Test Facility equipment shall be used during Stage 3
          testing.

4.6.3     The following additional equipment shall be supplied as per Annex 4
          for Stage 3 testing.

4.6.4     ETL shall deliver HPN-Controller to the Australian Test Facility as
          detailed in Annex 4.

4.6.5     NEC shall deliver NMC and IF Equipment to the NEC Yokohama facility as
          detailed in Annex 4, and use the SAN-OSS, to carry out pre-integration
          testing with the NMC in Japan.

4.6.6     The NMC shall be operating with basic functionality for the interface
          testing and shall include the Satellite Resource Management Centre
          (SRMC) and Local SRMS involved in SBS.

4.6.7     The NMC shall also be capable of control and monitor of basic alarm
          and status of all types of network elements.

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5.       ICONET GROUND FACILITIES TEST PHASES

5.1      Phase 1, Unit and Subsystem Testing

5.1.1    These are performed on named subsystems, concentrating primarily on the
         "first-off" on-Site Equipment, with a reduced set of tests on
         subsequent on-Site Equipment.

5.1.2    Phase 1 Testing shall be performed in-factory and consist of Unit and
         Subsystem testing for Equipment manufactured by the Contractor and
         shall not include third party vendors' proprietary Equipment such as
         PCs or work stations.

5.1.3     Units shall be defined as separable pieces of Hardware or Software on
          which requirement testing may be performed. Unit testing shall be
          carried out by the Equipment manufacturer in accordance with the
          manufacturers internal testing standards.
          Unit testing shall be informal.

5.1.4     Subsystems, for the purpose of this Annex, shall be defined as
          multiple interconnected units common to a manufacturer which form a
          separate testable subsystem. The Phase 1 Subsystem testing which shall
          be performed by the Equipment manufacturer is formal testing. The
          "first-off" of every single subsystem shall be tested by the
          Contractor and witnessed by ICO.

5.1.5     Approval of the "first off" subsystem test results, in accordance with
          the agreed criteria, shall be required before the subsystem leaves the
          factory for on-Site installation.

5.1.6     Subsystem tests shall concentrate on the following:

          -    testing of the applicable functional and performance requirements
               of individual subsystems

          -    validation of significant or "system-level" internals that have
               not been explicitly or adequately covered in unit testing

          -    correct operation of the subsystem component interfaces to the
               appropriate Interface specifications

          -    correct operation of man-machine interfaces, to the appropriate
               specifications

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5.2       Phase 2-1 Installation Testing

5.2.1     The Contractor shall ensure that Phase 2-1 Installation Testing shall
          be performed in-field on the Equipment upon completion of the
          Equipment installation. The first installation of every single
          subsystem of the IGF shall be on-Site tested by the Contractor and
          witnessed by ICO.

5.2.2     Installation testing shall be performed in-field as a form of "build
          checkout". The Phase 2-1 "build checkout" shall ensure that all Site
          dependent configurations are correct, and that all interfaces for
          other sub-systems are operating correctly in a 'Stand Alone' mode
          including signalling, traffic and management paths.

5.2.3     Installation tests shall assess that Equipment has not been damaged in
          transit, that all components are properly configured and connected,
          local communications links are satisfactorily in-service, and that
          local Site factors do not affect operation (e.g. power supplies, local
          radiation sources, temperature and humidity).

5.2.4    All on-Site installation and calibration ( and commissioning as
         appropriate for the RFT TT&C) procedures shall have been completed
         prior to this phase of formal "build checkout" testing.

5.2.5    These tests shall be formal, and shall be completed before delivered
         Equipment is released for further phases of testing or use.

5.2.6    These tests shall be conducted at each SAN and NMC, with the same
         degree of completeness, specifically paying attention to Site specific
         requirements.

5.3       PHASE 2-2 ON-SITE INTEGRATION TESTING

5.3.1     Phase 2-2 on-Site integration testing shall be performed in-field upon
          completion of the Phase 2-1 Installation Testing and shall expand on
          the Phase 2-1 sub system 'build checkout".

5.3.2     The Phase 2-2 on-Site integration testing shall be informal.

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5.3.3     The purpose of Phase 2-2 on-Site integration testing shall be to
          ensure the IGF subsystems are correctly integrated, before Phase 3
          system testing begins. It shall be performed by a test team made up of
          representatives from each Equipment manufacturer.

5.3.4     Components shall be integrated in an incremental fashion, with each
          configuration involving meaningful combinations of functionality. The
          final configuration is a completely integrated SAN and NMC.

5.3.5     Tests shall concentrate on a subset of the overall IGF functional and
          performance requirements for each of the configurations, and on
          interworking of the Equipment as each is integrated.

5.3.6     Phase 2-2 Testing shall include those Phase 2-1 aspects that can only
          be fully tested when integrated with Equipment.

5.3.7     The Phase 2-2 Testing shall include informal 'Dry Run' testing prior
          to the formal Phase 3 witness testing. Phase 2-2 testing shall if
          necessary be followed by a Software Rebuild/Reload and a 'Re-Test',
          with the updated versions of de-bugged software.

5.3.8     The Air Interface shall be further validated with the use of a UT
          Simulator.

5.3.9     These tests are performed on all Sites, concentrating primarily on the
          "first-off" SAN and NMC, with a reduced set of tests on subsequent
          Sites.

5.3.10    Phase 2-2 shall verify the connectivity of all the switch network
          components in the IGF. This includes both traffic and signalling
          routes to switch nodes co-located at the SAN as well as to nodes
          remote from the SAN e.g. HLR. It requires that ICO supplied SAN to SAN
          E1 links be in place.

5.3.11    Inter SAN testing shall take place between two or three available
          SANs. It may utilise SANs 03, 02 & 07 (Australia, India and Indonesia)
          or suitable agreed alternatives. These SANs have been selected to
          minimise the spread of time zone differences with the Australian SAN.
          Inter SAN Tests shall encompass the range of tests specific to more
          than one SAN.

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5.3.12    SAN to SAN Handover shall be tested utilising the NECA test beds where
          it shall be possible to configure two notional SANs at the one site.

5.4       PHASE 3  IGF SYSTEM TESTING

5.4.1     Phase 3 IGF System Testing shall be performed in-field by the system
          test team upon completion of the Phase 2-2 On-Site Integration
          testing.

5.4.2     Phase 3 tests shall be performed so as to address the Function Sets
          defined in Annex 1, as follows:

          -    Phase 3-1: Testing of the services, functions, performance and
               capacity of Function Set 1 on a single SAN.

          -    Phase 3-2: Incremental testing of the services, functions,
               performance and capacity of Function Set 2 on two SANs and one
               NMC (the BMC).

          -    Phase 3-3: Incremental testing of the services, functions,
               performance and capacity of Function Set 3 on three SANs. In
               addition, these tests shall include incremental NMC and SAN-NMC
               interworking tests as required for FS-3.

          -    Phase 3-4: Incremental testing of the services, functions,
               performance and capacity of Function Set 4 on five SANs and one
               NMC (the NMC). In addition, these tests shall include incremental
               NMC-BMC interworking tests as required for FS-4.

          -    Phase 3-5: Incremental testing of the services, functions,
               performance and capacity of Function Set 5 on one SAN and on an
               environment representative of multiple SANs and NMCs as required
               for specific functions. This testing shall provide tests for
               services and functions not tested in earlier Acceptance Sets, and
               for services and functions whose tests did not pass earlier
               tests. Regression testing shall address a sample of services and
               functions previously tested and passed, but which are supported
               by Equipment (hardware and software combined) which has been
               modified for the final delivered configuration.

5.4.3     The IGF System testing shall be performed with the use of simulator
          equipment for the UT and Satellite.

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5.4.4     The system integration testing shall ensure that the Equipment
          supplied is operating according to the specified requirements and
          shall be formal.

5.4.5     The Phase 3 testing shall include the requirements described in this
          section. The order and structure of the tests shall be in accordance
          with section 5.4.2, not the order and structure of this section.

5.4.5.1   The Phase 3 testing, in conjunction with Phase 1 and Phase 2-1
          testing, shall fully test all the specified functionality in the IGFR
          for the number of SANs and NMCs appropriate to each function.

5.4.5.2   One SAN testing shall be extensive and shall encompass the range of
          tests that can be performed on one SAN. This shall include IGF call
          processing, configuration, control, monitoring, capacity and
          performance related tests.

5.4.5.3   One NMC testing shall be extensive and shall encompass

          a)testing of the network management functions and SRMC functions
          specified in the IGFR but not covered in Phases 1&2 tests, and

          b)interconnection testing with a complete SAN in stand-alone mode.

5.4.5.4   Two SAN testing shall be incremental and shall encompass the range of
          tests specific to two SANs. This shall include call handover between
          SANs and UT movement related tests such as re-registration and call
          delivery to remote SANs. IGF configuration, control, monitoring and
          performance related tests specific to two SAN operation shall also be
          tested.

5.4.5.5   Three SAN testing shall be incremental and shall encompass the
          range of tests specific to three SANs. This shall include
          testing of intermediate SAN operation in call handover between
          SANs via an intermediate SAN and UT movement related tests such
          as re-registration and call delivery to remote SANs via
          intermediate SANs. IGF configuration, control, monitoring and
          performance related tests specific to three SAN and NMC
          operation shall also be tested.

5.4.5.6   Five SAN and NMC testing shall be incremental and shall encompass the
          range of tests specific to 5 SANs and the NMC. This shall include
          testing of network

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          configuration, functions and performance, as specified, and NMC
          operation. NMC-BMC test shall be also conducted.

5.4.6     IGFR testing will be concentrated at SAN 3 to verify the operation of
          each FS. InterSAN tests will be performed using the Australian,
          Indonesia and India SANs, or at suitable agreed alternatives. At all
          other SANs a limited number of call traces and O&M functions will be
          used to demonstrate that the site hardware and software are
          operational and are configured correctly. Networking tests will be
          performed on SANs being handed over at AS-2, 3 and 4 to verify that
          SAN sites can operate as a network.

5.4.7     Prior to commencing a Phase 3 test, the Contractor shall hold a Test
          Readiness Review at which the following will be presented to ICO:

          -    a list of the tests performed during the dry run for that test,
               with the result of each one,

          -    a list of the problem reports currently outstanding,

          -    analysis of the above problems showing that the applicable
               Acceptance Set criteria are met;

          -    Completed test documentation (VCRM, TRD, TPD, TSD) updated or
               marked up to resolve any issues which arose during the dry run;

          -    Final Phase 2-1 test report for all Equipment involved in the
               Phase 3 test.

5.5       INTEGRATION EFFORTS

5.5.1     After each stage of Phase 3 testing, there are integration efforts
          designed to integrate the Function Sets with the hardware already
          delivered to ICO. These integration efforts at AS-2, AS-3 and AS-4 are
          defined as follows:

          -    IE2: 3 SAN AND BMC INTEGRATION: The integration of the two SANs
               and BMC provided at AS-2 with the first SAN already handed over
               to ICO.

          -    IE3: 6 SAN AND BMC INTEGRATION: The integration of the three
               additional SANs provided at AS-3 with the 3 SANs and the BMC
               already handed over to ICO.

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          -    IE4: 11 SAN, NMC, AND BMC INTEGRATION: The integration of 5
               additional SANs and the NMC provided at AS-4 with the previous 6
               SANs and the BMC already handed over to ICO.

5.5.2     Before each integration effort can begin the Contractor shall
          demonstrate that the added Equipment meets the applicable acceptance
          criteria defined in Annex 10.

5.5.3     Each integration effort shall consist of regression tests (that is,
          tests which have already been passed on the added Equipment as part of
          the entry criteria). The regression testing for the new AS shall
          include interworking of functions and services within the hardware of
          the previous Equipment, and between hardware of the previous and added
          Equipment. The extent of such regression testing will be determined by
          the following principles:

          -    the regression testing shall not extend the requirements on the
               AS;

          -    the regression testing shall be sufficiently extensive to
               exercise all hardware in the previous AS which has had little or
               no exercise in the previous AS;

          -    the regression testing shall validate a significant sample, but
               not a majority, of the new services and functions added by the
               AS.

          ICO shall have the right to selectively reduce the regression testing
          previously agreed, by deleting individual tests at its sole
          discretion. Other changes to the plan may be made by mutual agreement.

6.        ROLES & RESPONSIBILITIES

6.1.      Test Planning and Execution

6.1.1     Performance of IGF units and sub-system testing, including planning,
          documenting, co-ordinating, execution and problem
          identification/isolation and, within the IGF, problem solving shall be
          the sole responsibility of the Contractor.

6.1.2     The Contractor shall provide and maintain a problem tracking
          database in which all problems shall be entered. The database
          shall provide for problem ID code, status, responsible person,
          classification, planned correction date, temporary fix ID, and
          action plan reference or summary. The database shall provide
          facilities for problems to be sorted and presented or printed in
          a variety of formats and orders, to facilitate management and
          reporting on the problems.

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6.1.3     Following completion of each Phase of testing for any part of the IGF,
          the Contractor shall provide weekly reports relating to that part,
          providing a summary of the current problem statistics, expected
          clearance date for all problems, and a full listing of the database
          contents. Such reports shall continue until all of the problems have
          been corrected.

6.1.4     The provisions of paragraph 1.2.9 of Annex 4 shall take precedence
          over the terms of this Section 6, in respect of the subject matter.

6.2       Communications Links

6.2.1.    The Contractor shall be responsible for all the communications links
          charges during the Pre-Integration testing at the NECA, HNS and NECJ
          test facilities.

6.2.2.    The Contractor shall invoice ICO and ICO shall re-imburse all such
          communications charges on an actual cost basis.

6.2.3     ICO shall provide and maintain all necessary communications links
          between ICO Sites for Equipment on-Site testing.

6.2.4     The capacity, routing and availability dates of the E1 links are as
          specified in SOW Annex 2.

6.3.      Test Equipment

6.3.1     Aside from the test equipment provided by ICO as given in Annex 2, all
          test equipment required for Phase 1 to Phase 3 shall be provided by
          the Contractor.

6.3.2     The Special Test Equipment, being provided by ICO, for Phase 1 to
          Phase 3 are shown in Annex 2.

6.3.3     The Contractor shall develop a comprehensive requirements document for
          each of UT Load Simulator and Satellite Channel Simulator and shall
          submit them to ICO for its approval within 3 months after the
          execution of the Supply Agreement.

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                                                                  UNITED KINGDOM

                                                       TEL: +44 (0) 20 8600 1000
                                                       FAX: +44 (0) 20 8600 1199

                                                           I-CO SERVICES LIMITED
                                               REGISTERED IN ENGLAND: NO.3045294
                                             REGISTERED OFFICE: 2 CHALKHILL ROAD
                                                                LONDON W6 8DW UK

                          ANNEX 8B - DEMONSTRATION PLAN

                             COMMERCIALLY SENSITIVE
                             REPRODUCTION PROHIBITED

CONFIDENTIALITY STATEMENT

ALL INFORMATION CONTAINED IN THIS DOCUMENT IS CONFIDENTIAL AND PROPRIETY TO ICO
GLOBAL COMMUNICATIONS OR ANY OTHER MEMBER OF THE ICO GLOBAL COMMUNICATIONS GROUP
AND INTENDED ONLY FOR THE ADDRESSEE TO WHOM THIS COPY IS ADDRESSED. THE
RECIPIENT SHALL NEITHER COPY, DISTRIBUTE, DISCLOSE OR USE THE INFORMATION
CONTAINED IN IT FOR ANY PURPOSE OTHER THAN FOR WHICH THIS DOCUMENT HAS BEEN MADE
AVAILABLE NOR PERMIT ANYONE ELSE TO DO THE SAME. THE RECIPIENT SHALL BE HELD
FULLY LIABLE FOR ANY WRONGFUL DISCLOSURE OR USE OF ANY OF THE INFORMATION
CONTAINED IN THIS DOCUMENT BY HIM, OR HIS OFFICERS OR EMPLOYEES OR ANYONE ELSE
TO WHOM HE MAKES THE INFORMATION AVAILABLE.

                 DOCUMENT NO.:              EN-IG-ICO-SW/000010

                 VERSION:                   3.0

                 DATE:                       27  April, 2000

<TABLE>
<S>                                         <C>                                <C>
       PREPARED                             ICO                                NEC

       AUTHOR:                              TITLE:                             TITLE:

                                            SIGNATURE:                         SIGNATURE:
</TABLE>
<PAGE>   2527
                                                             EN-IG-ICO-SW/000010
[ICO LOGO]        Annex 8 B - DEMONSTRATION PLAN             Issue 3.0
                                                             27 April, 2000

AMENDMENT RECORD

<TABLE>
<CAPTION>
REVISION          DATE          CN NO.        REASON FOR CHANGE
--------          ----          ------        -----------------
<S>               <C>           <C>           <C>
1.0               14/2/97                     NEC Contract Issue

2.0               17/2/97                     Final Issue

2.1               18/2/97                     Incorporate minor comments to para's, 1.1, 1.2 and 5.1.2

2.2               25/2/97                     Delete para 5.3 to correct erroneous description

2.3               26/2/97                     Minor editorial changes

2.4               24/3/99                     Updated to accommodate plan for Phased SAN Handover

2.5               26/5/99                     ICO response to version 2.4, new para 3.5 specifying
                                              demonstrations before AS1,2,3,4,5.
2.6               27/5/99                     Updated after NEC/ICO review 27 May 1999. Paras 3.2 and 3.5
                                              revised. New para 4.3
2.7               19/4/00                     Revised to reflect ICO de-scope of IGFR
2.7.1             24/4/00                     Revised to reflect scheduling of Demonstrations
3.0               27/4/00                     Revised to reflect ICO/NEC Agreements of 27/4/00
</TABLE>

                                       2         Confidential and Proprietary to
                                                       ICO Global Communications
<PAGE>   2528
                                                             EN-IG-ICO-SW/000010
[ICO LOGO]        Annex 8 B - DEMONSTRATION PLAN             Issue 3.0
                                                             27 April, 2000

                                TABLE OF CONTENTS

      1.   INTRODUCTION                                                      2

      2.   SCOPE                                                             2

      3.   END-TO-END CALL DEMONSTRATIONS                                    3

      4.   SAN SITE                                                          4

      5.   PRE-REQUISITES FOR END-TO-END CALL DEMONSTRATION                  4

      6.   EQUIPMENT FOR END-TO-END CALL DEMONSTRATION                       5

                                       1         Confidential and Proprietary to
                                                       ICO Global Communications
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[ICO LOGO]        Annex 8 B - DEMONSTRATION PLAN             Issue 3.0
                                                             27 April, 2000

1.       INTRODUCTION

1.1      The Contractor shall perform End-to-End Call Demonstrations of the IGF
         in accordance with the End-to-End Call Demonstration Plan (the
         "Demonstrations") as described in this Annex. The Demonstrations shall
         demonstrate the functionality of the Equipment together with the other
         elements of the ICO system; e.g. satellite(s), User Terminals (UT), and
         the actual connections to the public switched networks.

1.2      The scope and procedures of the Demonstrations shall be developed
         within 7 months prior to the Demonstrations.

1.3      This Annex provides a high-level description of the Demonstrations.

2.       SCOPE

2.1      Each Demonstration shall be performed at a selected SAN Site Different
         SAN sites may be used for different demonstrations.

2.2      The Demonstrations shall be performed during the following periods:

         -        Demonstration A - within 6 months of availability of User
                  Terminal equipment with the provisio that 1 satellite will
                  have been available for at least 5 months prior to the
                  demonstration

         -        Demonstration C - within [2] months of availability of User
                  Terminal equipment and 2 satellites needed to support this
                  demonstration. It is anticipated that this demonstration will
                  take place at the time of AS4.

         -        Demonstrations B, D & E - within [2] months of availability of
                  User Terminal equipment and Terminal Adaptors needed to
                  support this demonstration. It is anticipated that this
                  demonstration will take place at the time of AS4.

2.3      Demonstration procedures shall be prepared by the Contractor and
         submitted to ICO for approval prior to the commencement of the
         Demonstrations.

2.4      The Demonstrations shall be conducted by the Contractor and be
         witnessed by ICO.

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2.5      ICO's co-operation shall be a mandatory requirement for preparation of
         the SAN Site and performing the Demonstrations. Specifically, all
         external components, being supplied by ICO and integrated into the
         ICONET, shall either already be satisfactorily in-service, or shall
         have undergone prior acceptance testing as a part of their individual
         supply agreements.

2.6      There shall be no PASS/FAIL criteria for the Demonstrations.

2.7      The Contractor, with ICO's assistance, shall be responsible for
         isolation of any problems identified during the Demonstrations.

2.8      The Demonstrations shall not be part of the Integration and Testing of
         the IGF, nor acceptance of the IGF nor acceptance of part of the IGF.

3.       END-TO-END CALL DEMONSTRATIONS

3.1      The Contractor, with ICO assistance, shall demonstrate the
         establishment of end-to-end connections, transmission and reception of
         voice/fax/data traffic under specific conditions, and connection
         cleardowns.

3.2      The demonstrations (Demonstration A to Demonstration E) listed below
         shall take place as set out in Para 2.2 above.

              A. Demonstration A         Voice, mobile terminated and mobile
                                         originated calls.

              B. Demonstration B         In Band fax 2.4 kbps and In Band data
                                         2.4 kbps.

              C. Demonstration C         Voice with diversity.

              D. Demonstration D         GSM data at 2.4 kbps

              E. Demonstration E         GSM data at 9.6/2.4 kbps

3.3      The Demonstrations shall show connections between an ICO UT and

         -        a PSTN/ISDN terminal

         -        a PLMN mobile station

         -        another ICO UT (registered at the same MSSC/VLR).

3.4      Depending upon the availability of a second satellite, call diversity
         and satellite-to-satellite handover shall be demonstrated.

3.5      Demonstrations may be combined at the Contractors option. Notice of any
         such combining of demonstrations shall be provided by the Contractor to
         ICO [1 month] in advance of the due date of the demonstration.

                                       3         Confidential and Proprietary to
                                                       ICO Global Communications
<PAGE>   2531
                                                             EN-IG-ICO-SW/000010
[ICO LOGO]        Annex 8 B - DEMONSTRATION PLAN             Issue 3.0
                                                             27 April, 2000

4.       SAN SITE

4.1      The selection of the SAN Site, to be used for the Demonstrations shall
         be mutually agreed by the Contractor and ICO during the course of the
         Supply Agreement.

4.2      The selection of the SAN Site shall be based upon availability and the
         fulfillment of the pre-requisites as outlined in Section 5.

4.3      If the selected SAN site has already been handed over to ICO, ICO will
         provide the necessary access and support for the purposes of the
         demonstration.

5.       PRE-REQUISITES FOR END-TO-END CALL DEMONSTRATION

5.1      The following basic pre-requisites shall be complied with by ICO, in
         order for the Demonstrations to be performed -:

5.1.1    ICO shall provide the interconnection between the selected SAN and
         exchange gateway or International Switching Centre (ISC) which shall
         include-:

         -        making any necessary agreements with the gateway or ISC
                  operator for interconnection ordering, installing, and
                  activating communication lines between the MSSC of the
                  selected SAN and the exchange gateway or ISC

         -        defining B number (routing) exchange data in all
                  telecommunication nodes between the A subscriber of a local
                  exchange and the MSSC of the selected SAN to ensure correct
                  routing of calls

5.1.2    To facilitate the testing of an ICO Mobile subscriber to a fixed PLMN
         operator, ICO shall arrange for the configuration of a Terrestrial
         Mobile Switching Center (MSC) and, as appropriate, a Gateway Mobile
         Switching Center, (GMSC), of the appropriate terrestrial PLMN, and any
         other intermediary network nodes between the PLMN and MSSC at the
         selected SAN with the appropriate exchange data to ensure the correct
         routing of calls to include:

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[ICO LOGO]        Annex 8 B - DEMONSTRATION PLAN             Issue 3.0
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         -        Means of signalling communication shall exist between the
                  selected SAN and ICO's service provisioning databases (e.g.,
                  HLR, EIR, AuC), where necessary.

         -        Appropriate service profile parameters and identification for
                  at least two ICO subscriber accounts and at least two ICO UT's
                  shall be available in the service provisioning databases.

         -        A UT shall be provided at least one month before the satellite
                  is available in order to check that it interworks correctly
                  with the IGF. This period does not include time for fixing
                  problems with the UT or regression testing

         -        The UT or FTUT shall be provided with a suitable IF Port or
                  external test translators should be provided. The UT shall
                  also be provided with a suitable digital port(s) for
                  monitoring TX and Rx BCCH, TCH and Signalling data.

         -        A satellite shall be available for use during the
                  Demonstrations. Integration testing of the satellite by ICO
                  shall have progressed to at least to such a degree that makes
                  the satellite useful for the Demonstrations at least five
                  months before the scheduled Demonstrations. If a second
                  satellite is available and if its integration testing progress
                  is such that it can be used, then it shall be used for
                  demonstrations where two satellites are required.

         -        Satellite resource management data for the orbiting satellites
                  shall be generated and downloaded into the selected SAN's, SAN
                  OSS, and the SBS's LSRMS.

5.2      The following list outlines the basic pre-requisites that shall be met,
         by the Contractor, for the Demonstrations to be performed -:

         -        The Contractor shall have completed the Phase 2-1 and 2-2
                  Testing at the selected SAN Site.

6.       EQUIPMENT FOR END-TO-END CALL DEMONSTRATION

6.1      The equipment to be provided by ICO for the Demonstrations is described
         in Section 4 of Annex 2.

                                       5         Confidential and Proprietary to
                                                       ICO Global Communications

<PAGE>   2533
                                                       ICO GLOBAL COMMUNICATIONS
                                                         1 QUEEN CAROLINE STREET
                                                                     HAMMERSMITH
                                                                   LONDON W6 9BN
                                                                  UNITED KINGDOM
[ICO LOGO]
                                                           TEL: +44 181 600 1000
                                                           FAX: +44 181 600 1199

                                                           I-CO SERVICES LIMITED
                                               REGISTERED IN ENGLAND: NO.3045294
                                         REGISTERED OFFICE: 1 QUEEN CAROLINE ST.
                                                                LONDON W6 9BN UK

             ANNEX 10 - ICONET GROUND FACILITIES ACCEPTANCE CRITERIA

                             COMMERCIALLY SENSITIVE
                             REPRODUCTION PROHIBITED

CONFIDENTIALITY STATEMENT
ALL INFORMATION CONTAINED IN THIS DOCUMENT IS CONFIDENTIAL AND PROPRIETY TO ICO
GLOBAL COMMUNICATIONS OR ANY OTHER MEMBER OF THE ICO GLOBAL COMMUNICATIONS GROUP
AND INTENDED ONLY FOR THE ADDRESSEE TO WHOM THIS COPY IS ADDRESSED. THE
RECIPIENT SHALL NEITHER COPY, DISTRIBUTE, DISCLOSE OR USE THE INFORMATION
CONTAINED IN IT FOR ANY PURPOSE OTHER THAN FOR WHICH THIS DOCUMENT HAS BEEN MADE
AVAILABLE NOR PERMIT ANYONE ELSE TO DO THE SAME. THE RECIPIENT SHALL BE HELD
FULLY LIABLE FOR ANY WRONGFUL DISCLOSURE OR USE OF ANY OF THE INFORMATION
CONTAINED IN THIS DOCUMENT BY HIM, OR HIS OFFICERS OR EMPLOYEES OR ANYONE ELSE
TO WHOM HE MAKES THE INFORMATION AVAILABLE.

                 DOCUMENT NO.:         EN-IG-ICO-SW/000012
                 ----------------------------------------------
                 VERSION:              Issue: 2.10
                 ----------------------------------------------
                 DATE:                 27 May 1999
                 ----------------------------------------------

      PREPARED                  ICO                  NEC
      --------------------------------------------------------------------
      AUTHOR:                   TITLE:               TITLE:
      --------------------------------------------------------------------
      Keith Hungerford          SIGNATURE:           SIGNATURE:
      --------------------------------------------------------------------
<PAGE>   2534
------------------------- -----------------------------------------------------
                                                            EN-IG-ICO-SW/000012
[ICO LOGO]       ANNEX 10 - ICONET GROUND FACILITIES        Issue: 2.10
                       ACCEPTANCE  CRITERIA                 27 May 1999
------------------------- -----------------------------------------------------

AMENDMENT RECORD

<TABLE>
<CAPTION>
REVIEW        DATE       CN NO.     REASON FOR CHANGE
-----------------------------------------------------------------------------------------
<S>          <C>         <C>       <C>
1.0          14/2/97               NEC Contract Issue
2.0          17/2/97               Final Issue
2.1          18/2/97               Removal of brackets around Note 1 para's 5.2 and 6.2.1
2.2          26/2/97               Minor editorial changes
2.3          24/3/99               Draft proposed by NEC for Phased Handover
2.4           6/4/99               Counter-proposal by ICO for Phased Handover
2.5           9/4/99               ICO proposal further developed
2.6          15/4/99               Following discussion KH & IMarks
2.7          30/4/99               Following further discussion KH & IMarks
2.8          20/5/99               Further ICO inputs
2.8.1        25/5/99               Amend 2.4.2, adjust paragraph numbers
2.9          26/5/99               Changes agreed ICO - NEC PO: 1.1, 2.1.2, 2.5.4, 4
2.10         27/5/99               Changes agreed ICO - NECA: 2.1.2, 2.2.2, 2.3.2
</TABLE>

                                                Confidential and Proprietary to
Created: 26/2/97                        1             ICO Global Communications
<PAGE>   2535
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-------------------------------------------------------------------------------

                                TABLE OF CONTENTS

1.     GENERAL                                                                1

2.     ACCEPTANCE CRITERIA                                                    1

     2.1    GENERAL                                                           1

     2.2    ACCEPTANCE SETS 1 TO 3                                            3

     2.3    ACCEPTANCE SET 4                                                  5

     2.4    ACCEPTANCE SET 5                                                  7

     2.5    INDEPENDENT SAN ACCEPTANCE                                        8

3.     FAULT CLEARANCE                                                        8

     3.1.   REPRODUCIBLE FAULT CLEARANCE                                      9

     3.2.   NON-REPRODUCIBLE FAULT CLEARANCE                                  9

4.     FAULT AND TEMPORARY FIX TRACKING AND REPORTING                        10

5.     DEFERRED FUNCTIONALITY ACCEPTANCE CRITERIA                            10

                                                Confidential and Proprietary to
Created: 26/2/97                        2             ICO Global Communications
<PAGE>   2536
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-------------------------------------------------------------------------------

1.     GENERAL

1.1     This Annex sets out the Acceptance Criteria for the IGF. The Acceptance
        Criteria are organised as a) a progression of acceptance criteria for
        the whole IGF with the exception of one SAN (China); and b) acceptance
        criteria for one SAN separate from and in addition to the other SANs
        (eg China SAN and any additional SANs).

1.2     For progressive handover, there are 5 Levels of Acceptance, which are
        identified as Acceptance Sets. For each Acceptance Set, there is an
        applicable set of IGF hardware, defined by site and equipment type, and
        an applicable set of Services and Functions (Function Sets). The
        definitions of the Hardware Sets and Function Sets are in Annex 1 of
        the SOW - Contractors Deliverables.

1.3.    The Acceptance Sets are as shown in Table 1.

             Table 1- Acceptance Set, IGF Hardware and Function Sets

<TABLE>
<CAPTION>
      Acceptance Set            IGF Hardware Set            Function Set
     --------------------------------------------------------------------
<S>                             <C>                         <C>
          AS-1                        HS-1                      FS-1
          AS-2                        HS-2                      FS-2
          AS-3                        HS-3                      FS-3
          AS-4                        HS-4                      FS-4
          AS-5                        None                      FS-5
</TABLE>

1.4.    Any SAN not included in the initial set of 11 SANs shall be accepted in
        accordance with criteria defined for Independent SAN Acceptance.

2.      ACCEPTANCE CRITERIA

2.1     GENERAL

2.1.1.  This section defines the acceptance criteria for the phased handover of
        the IGF. The overall acceptance criteria are broken down into a series
        of Acceptance Sets, namely Acceptance Set 1 to 5 inclusive.

                                                Confidential and Proprietary to
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2.1.2.   The criteria for each Acceptance Set shall be applied to the following
         events:

         a)       Handover of the hardware identified in the Acceptance Set
                  (HS-1 to HS-4 inclusive) together with the software
                  functionality identified in the Function Set (FS-1 to FS-5
                  inclusive);

         b)       Upgrade of software functionality of Equipment already handed
                  over together with its integration with the Equipment in a)
                  above.

         The operational procedures for the above events are defined in Annex
         7b.

2.1.3.   Any dispute which may arise out of the classification of problems, or
         about whether a problem has been fixed to the satisfaction of both
         parties, shall be dealt with by the Dispute Resolution procedures set
         out in Schedule 2 to the Terms and Conditions.

2.1.4.   Where a problem is identified which does not explicitly fit within the
         problem definitions found in the Acceptance Criteria, the problem will
         be classified by analogy to existing definitions.

2.1.5.   Where the same or similar problem is experienced in multiple SANs, it
         shall be counted as only a single problem for the purpose of these
         Acceptance Criteria if the fix is to be obtained by new software in
         each of the SANs. Otherwise it shall be counted once at each instance
         (eg hardware failure or deficiency requiring upgrade or replacement).

2.1.6.   Where a single problem results in impacts on multiple services or
         functions, it shall be counted as a single problem for the purpose of
         these Acceptance Criteria, but the most stringent severity grading
         shall be used.

2.1.7.   For determining whether a problem should be counted as impacting an end
         user service, or not, the criterion is whether there is an impact on
         one of the services defined in Section 4 of the IGFR.

2.1.8.   For Acceptance Sets 1 to 4 inclusive, the criteria which relate to
         Capacity to carry services shall be applied to the demonstrated or
         tested capacity of the SAN, relative to the contracted installed
         capacity. No account shall be taken of the potential for future
         expansion.

2.1.9.   For Acceptance Set 5, the criteria which relate to Capacity to carry
         services shall be applied to both a) the demonstrated or tested
         capacity of the SAN, relative to the

                                                Confidential and Proprietary to
                                       2              ICO Global Communications
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         contracted installed capacity; and b) the ability of the equipment to
         be expanded to meet the maximum capacity requirement in the IGFR.

2.2      ACCEPTANCE SETS 1 TO 3

2.2.1.   For the purpose of Acceptance Sets 1 to 3, the following definitions
         are guidelines for the classification of problems.

<TABLE>
<CAPTION>
TYPE OF EFFECT OF PROBLEM (AS-1 TO 3)                               CRITICAL                 MAJOR                  MINOR
------------------------------------------------------------------------------------------------------------------------------
<S>                                                            <C>                    <C>                    <C>
Ability to carry the voice communication service as defined       Capacity <30%          Capacity <50%         Capacity <100%
in the applicable Function Set description

Ability to carry end user services defined in the                                        Capacity <50%         Capacity <100%
applicable Function Set description other than voice
communication service

Ability to charge accurately for end user services defined        <95% accuracy           Any impact
in the applicable Function Set description

Performance of voice communications service as defined in       Setup and In-call      Setup and In-call      Setup and In-call
the applicable Function Set description not including          failure rate > 20%     failure rate > 10%      failure rate > 2%
handovers

Performance of voice communications service as defined in       Setup and In-call      Setup and In-call      Setup and In-call
the applicable Function Set description, for calls which       failure rate > 40%     failure rate > 20%      failure rate > 4%
involve a handover (only if the FS description includes
handover)

Performance of end user services defined in the applicable                             Setup and In-call      Setup and In-call
Function Set description other than voice communication                               failure rate > 10%      failure rate > 2%
service, using commercially available terminal equipment
selected by NEC

Connectivity of end user services defined in the applicable           <40%                   <70%                   <90%
Function Set description (to % of user population)

Provision of function or service feature or supplementary                             Does not work or is      Any degradation
service defined in the applicable Function Set description                               not available

Reproducible or non-reproducible service disruption to             > 3 per day            > 1 per day           > 1 per week
multiple previously established calls simultaneously (such     affecting the whole    affecting the whole    affecting the whole
as may be caused by processor restart)                          SAN capacity, or       SAN capacity, or       SAN capacity, or
                                                                equivalent impact      equivalent impact      equivalent impact
</TABLE>

                                                Confidential and Proprietary to
                                       3              ICO Global Communications
<PAGE>   2539
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<TABLE>
<CAPTION>
Type of Effect of problem (AS-1 to 3)                               Critical                 Major                  Minor
------------------------------------------------------------------------------------------------------------------------------
<S>                                                            <C>                   <C>                     <C>
Reproducible or non-reproducible service disruption which          > 6 per day            > 2 per day           > 2 per week
prevents establishment of new calls or clearing of             affecting the whole    affecting the whole    affecting the whole
previously established calls (such as may be caused by          SAN capacity, or       SAN capacity, or       SAN capacity, or
processor restart)                                              equivalent impact      equivalent impact      equivalent impact

Call failure of individual call, with non-reproducible                               Affect more than 10%    Affect more than 2%
characteristics                                                                        of an identified       of an identified
                                                                                           call type              call type

Additional attention by operational staff                      Constant (more than    Frequent (more than     Occasional (more
                                                                 once per hour)       once per day, OR on    than once per week)
                                                                                       average more than
                                                                                       one hour per day)

Faults impacting ICO Operations or Planning, but not                                      Substantial         Inconvenience or
Services (screen formats, file transfer faults, etc.)                                    impediment to       confusion directly
                                                                                         operations or       attributable to the
                                                                                          substantial               fault
                                                                                       additional labour
</TABLE>

2.2.2.   During the period following handover of HS-2 or HS-3 at the HS-2 or
         HS-3 sites respectively, or following upgrade and integration of
         Equipment at a previously handed over site, and prior to Acceptance Set
         Completion, and when the Contractor's testing staff are not present at
         the site, the contribution of that site to the number of
         non-reproducible service disruptions or call failures, for the purpose
         of classification of problems for that Acceptance Set, shall be half
         the actual number of such events at that site.

2.2.3.   Acceptance Set 1 to 3 shall be determined for the Equipment handed over
         as defined for the applicable Hardware Set HS-1, HS-2 or HS-3 based on
         the results of the Phase 3 Tests on the additional hardware handed over
         to make up that Hardware Set, taking account of Phase 1 and Phase 2.1
         test results as appropriate.

2.2.4.   Acceptance Set 1, 2 or 3 as applicable shall be granted when the
         following criteria are met:

2.2.4.1. The applicable Function Set has no more than the following numbers of
         faults:

                                                Confidential and Proprietary to
                                       4              ICO Global Communications
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<TABLE>
<CAPTION>
   Fault class                       Number of faults        Number of faults with temporary fixes
   -----------------------------------------------------------------------------------------------
<S>                                  <C>                     <C>
   Critical                          0                       No limit
   Major: End User Services          2                       No limit
   Major: Others                     5                       No limit
   Minor: End User Services          20                      No limit
   Minor: Others                     No limit                No limit
</TABLE>

2.3      ACCEPTANCE SET 4

2.3.1.   For the purpose of Acceptance Set 4, the following definitions are
         guidelines for the classification of problems.

<TABLE>
<CAPTION>
Type of Effect of problem (AS-4)                                    Critical                 Major                  Minor
-----------------------------------------------------------------------------------------------------------------------------
<S>                                                            <C>                    <C>                    <C>
Ability to carry the voice communication service as defined       Capacity <50%          Capacity <80%         Capacity <100%
in the Function Set 4 description

Ability to carry end user services defined in the                                        Capacity <80%         Capacity <100%
Function Set 4 description, other than voice
communication service

Ability to charge accurately for end user services defined         Any impact
in the Function Set 4 description

Performance of voice communications service as defined in        Service unusable      Setup and In-call      Setup and In-call
the Function Set 4 description not including                                           failure rate >5%       failure rate >1%
handovers

Performance of voice communications service as defined in        Service unusable      Setup and In-call      Setup and In-call
the Function Set 4 description, for calls which                                        failure rate >10%      failure rate >4%
involve a handover.

Performance of end user services defined in the                                            Significant         Minor degradation
Function Set 4 description, other than voice communication                                 degradation
service, using a range of commercially available terminal
equipment selected by NEC and ICO

Connectivity of end user services defined in the                      <60%                   <85%                   <100%
Function Set 4 description (to % of user population)

Provision of function or service feature or supplementary                             Does not work or is      Any degradation
service defined in the Function Set 4 description                                        not available

Reproducible or non-reproducible service disruption to             > 1 per week          > 1 per month
multiple previously established calls simultaneously (such     affecting the whole    affecting the whole
as may be caused by processor restart)                          SAN capacity, or       SAN capacity, or
                                                                equivalent impact      equivalent impact
</TABLE>

                                                Confidential and Proprietary to
                                       5              ICO Global Communications
<PAGE>   2541
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<TABLE>
<CAPTION>
Type of Effect of problem (AS-4)                                    Critical                 Major                  Minor
-----------------------------------------------------------------------------------------------------------------------------
<S>                                                            <C>                   <C>                     <C>
Reproducible or non-reproducible service disruption which          >2 per week            >2 per month
prevents establishment of new calls or clearing of             affecting the whole    affecting the whole
previously established calls (such as may be caused by          SAN capacity, or       SAN capacity, or
processor restart)                                              equivalent impact      equivalent impact

Call failure of individual call, with non-reproducible                               Affect more than 5%     Affect more than 1%
characteristics                                                                        of an identified       of an identified
                                                                                           call type              call type

Additional attention by operational staff                      Constant (more than    Frequent (more than     Occasional (more
                                                                 once per hour)       once per day, OR on    than once per week)
                                                                                       average more than
                                                                                       one hour per day)

Faults impacting ICO Operations or Planning, but not                                      Substantial         Inconvenience or
Services (screen formats, file transfer faults, etc.)                                    impediment to       confusion directly
                                                                                         operations or       attributable to the
                                                                                          substantial               fault
                                                                                       additional labour
</TABLE>

2.3.2.   During the period following handover of HS-4 at the HS-4 sites, or
         following upgrade and integration of Equipment at a previously handed
         over site, and prior to Acceptance Set 4 Completion, and when the
         Contractor's testing staff are not present at the site, the
         contribution of that site to the number of non-reproducible service
         disruptions or call failures, for the purpose of classification of
         problems for Acceptance Set 4, shall be half the actual number of such
         events at that site.

2.3.3.   Acceptance Set 4 shall be determined for the Equipment handed over as
         defined for the applicable Hardware Set HS-4 based on the results of
         the Phase 3 Tests on the additional hardware handed over to make up
         that Hardware Set taking account of Phase 1 and Phase 2.1 test results
         as appropriate.

2.3.4.   Acceptance Set 4 shall be granted when the following criteria are met:

2.3.4.1. Function Set 4 has no more than the following numbers of faults:

                                                Confidential and Proprietary to
Created: 26/2/97                       6              ICO Global Communications
<PAGE>   2542
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[ICO LOGO]       ANNEX 10 - ICONET GROUND FACILITIES        Issue: 2.10
                       ACCEPTANCE  CRITERIA                 27 May 1999
-------------------------------------------------------------------------------

<TABLE>
<CAPTION>
      Fault class                       Number of faults          Number of  temporary fixes
      -------------------------------------------------------------------------------------------------
<S>                                     <C>                       <C>
      Critical                          0                         No limit
      Major:                            1                         No limit
      End User Services
      Major: Others                     5                         No limit
      Minor: End User Services          20                        No limit
      Minor: Others                     No limit                  No limit
</TABLE>

2.3.4.2. All Deliverables defined in this Statement of Work have been delivered,
         in accordance with the Statement of Work, except for any deliverables
         specifically associated with FS-5.

2.4      ACCEPTANCE SET 5

2.4.1.   For the purpose of Acceptance Set 5, the following definitions are
         guidelines for the classification of problems.

<TABLE>
<CAPTION>
TYPE OF EFFECT OF PROBLEM (AS-5)                                   CRITICAL                MAJOR                MINOR
--------------------------------------------------------------------------------------------------------------------------
<S>                                                            <C>                  <C>                   <C>
Ability to carry services defined in IGFR                       Capacity <50%         Capacity <80%        Capacity <100%
4.1.1.1, 4.1.1.2, 4.1.2.1, 4.1.3.1, 4.1.3.2,
4.1.3.3, 4.1.3.4, 4.2.1, 4.2.2, 4.2.3 and 4.4.1.

Ability to charge accurately for services                       Any impact
defined in IGFR 4.1.1.1, 4.1.1.2, 4.1.2.1,
4.1.3.1, 4.1.3.2, 4.1.3.3, 4.1.3.4, 4.2.1,
4.2.2, 4.2.3 and 4.4.1.

Performance of end user services                               Service unusable         Significant       Minor degradation
                                                                                        degradation

Performance of administration and support services                                   Service unusable      Any degradation

Provision of service features or supplementary services                               Not work or not      Any degradation
                                                                                         available

Reproducible or non-reproducible service disruption to           > 1 per week          > 1 per week
multiple calls simultaneously (such as may be caused by
processor restart)

Call failure of individual call, with non-reproducible                              Affect more than 1%   Affect less than
characteristics                                                                      of an identified         1% of an
                                                                                         call type         identified call
                                                                                                                type

Additional attention by operational staff                          Constant         Frequent (less than   Occasional (less
                                                                                      once per hour)      than once per day)
</TABLE>

2.4.2.   Acceptance Set 5 shall be determined for the IGF as a whole based on
         the results of all Phase 3 Tests, including test results used in
         earlier Acceptance Sets, applicable Phase 1 and Phase 2.1 test results,
         appropriate regression testing and additional testing as

                                                Confidential and Proprietary to
                                       7              ICO Global Communications
<PAGE>   2543
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                                                            EN-IG-ICO-SW/000012
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                       ACCEPTANCE  CRITERIA                 27 May 1999
-------------------------------------------------------------------------------

         necessary to give full IGFR coverage. The Contractor shall present a
         consolidated assembly (eg binder) of the completed test results
         consisting of results from the incremental testing of FS-5 for services
         and functions not tested or not passed in earlier Acceptance Sets,
         together with the results from the earlier testing.

2.4.3.   Acceptance Set 5 shall be granted when the following criteria are met:

2.4.3.1. The IGF as a whole has no more than the following numbers of faults:

<TABLE>
<CAPTION>
Fault class                    Number of faults        Number of temporary fixes
--------------------------------------------------------------------------------------------
<S>                          <C>                     <C>
Critical                       0                       5
Major: End User Services       0                       20
Major: Others                  5                       20
Minor: End User Services       20                      100
Minor: Others                  See Note 1              See Note 1
</TABLE>

Note 1 : All minor other problems shall be recorded and reviewed at the time of
Acceptance Set 5 and prioritised with target date of 6 months to clear.

2.4.3.2. All Deliverables defined in this Statement of Work have been delivered,
         in accordance with the Statement of Work.

2.4.3.3. All Works required in this Statement of Work have been completed.

2.4.4.   Sections 2.4.3.2 and 2.4.3.3 shall not apply to the Deliverables and
         items of the Works which are shown in the Master Level Schedule to be
         provided by the Contractor after the date of FS-5 Phase 3 Test
         completion.

2.5      INDEPENDENT SAN ACCEPTANCE

2.5.1    Independent SAN Acceptance shall be granted when the following criteria
         are met:

2.5.2    The subject SAN has passed its Phase 3 tests

2.5.3    The subject SAN software has been updated to match the other SANs in
         the IGF.

2.5.4    All associated Deliverables have been delivered.

3.       FAULT CLEARANCE

3.0.1    This section specifies the timeframes for clearance of faults following
         completion of Acceptance Set 5. For Acceptance Sets 1 to 4, subsequent
         releases to update the Function Set for the following Acceptance will
         incorporate fixes needed to pass the criteria for that Acceptance. Thus
         separate timeframes for correction of problems do not need to be
         specified.

                                                Confidential and Proprietary to
Created: 26/2/97                       8              ICO Global Communications
<PAGE>   2544
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                                                            EN-IG-ICO-SW/000012
[ICO LOGO]       ANNEX 10 - ICONET GROUND FACILITIES        Issue: 2.10
                       ACCEPTANCE  CRITERIA                 27 May 1999
-------------------------------------------------------------------------------

3.1.     REPRODUCIBLE FAULT CLEARANCE

3.1.1.   CRITICAL PROBLEMS

3.1.1.1. Any temporary fix for previously occurring critical problems shall be
         replaced with the corresponding permanent fix within 3 months.

3.1.2.   MAJOR PROBLEMS

3.1.2.1. Any temporary fix for previously occurring major problems shall be
         replaced with a corresponding permanent fix within 3 months unless
         otherwise mutually agreed.

3.1.2.1. The fix for all other major problems, which do not have a temporary
         fix, shall be implemented and demonstrated no later than 3 months after
         Acceptance unless otherwise mutually agreed.

3.1.3.   MINOR PROBLEMS

3.1.3.1. Any temporary fix for previously occurring minor problems shall be
         replaced with a corresponding permanent fix within 6 months unless
         otherwise mutually agreed.

3.1.3.1. The fix for all minor problems, which do not have a temporary fix,
         shall be implemented and demonstrated no later than 6 months after
         Acceptance unless otherwise mutually agreed.

3.2.     NON-REPRODUCIBLE FAULT CLEARANCE

3.2.0.1. These are faults that occur rarely or which cannot be reproduced in the
         test environment.

3.2.1.   CRITICAL PROBLEMS

3.2.1.1. Any temporary fix for previously occurring non-reproducible critical
         problem shall be replaced with a corresponding permanent fix within a
         target period of 3 months.

3.2.2.   MAJOR PROBLEMS

3.2.2.1. Any temporary fix for previously occurring non-reproducible major
         problems shall be replaced with a corresponding permanent fix within a
         target period of 3 months unless otherwise mutually agreed.

3.2.2.2. All non-reproducible major problems shall be investigated by the
         addition of a diagnostic change or development of an agreed procedure
         to provide more detailed information so that progress can be made
         towards fixing the fault. The situation shall be reviewed within one
         month of the first recurrence.

                                                Confidential and Proprietary to
Created: 26/2/97                       9              ICO Global Communications
<PAGE>   2545
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                                                            EN-IG-ICO-SW/000012
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                       ACCEPTANCE  CRITERIA                 27 May 1999
-------------------------------------------------------------------------------

3.2.3.   MINOR PROBLEMS

3.2.3.1. Any temporary fix for previously occurring non-reproducible minor
         problems shall be replaced with a corresponding permanent fix within a
         target period of 6 months unless otherwise mutually agreed.

3.2.3.2. All non-reproducible minor problems shall be investigated by the
         addition of a diagnostic change or development of an agreed procedure
         to provide more detailed information so that progress can be made
         towards fixing the fault. The situation shall reviewed within two
         months of the first recurrence.

4.       FAULT AND TEMPORARY FIX TRACKING AND REPORTING

Section not used, refer to Annex 7B section 5.2 and Annex 8A section 6.1.2 and
6.1.3.

5.       DEFERRED FUNCTIONALITY ACCEPTANCE CRITERIA

5.1.     Deferred Functionality acceptance shall apply to each element of
         functionality that is defined as to be delivered later than the IGF as
         a whole.

5.2.     Deferred Functionality acceptance shall be granted when the following
         criteria are met:

         1.       The functionality has passed all formal tests using the
                  operational ICO System.

         2.       The associated Training, which is agreed to be required and
                  purchased, has been completed.

         3.       The associated Documentation has been delivered.

                                                Confidential and Proprietary to
Created: 26/2/97                      10              ICO Global Communications
<PAGE>   2546
IGF                                                    Teledesic RFP Compliance

<TABLE>
<CAPTION>
 REF_ID           REQUIREMENT               COMPLIANCE               COMMENTS/LIMITATIONS           APPLICABILITY   RESPONSIBILITY
<S>      <C>                             <C>                  <C>                                   <C>            <C>
1.4      System Requirements
1.4.1    Availability Requirements

1.4.1.1  The system shall provide a      See Comment          IGF Availability Requirements are      SEIT GF       NEC/HNS/ETL
         system availability of at                            dependent on system availability       Stage 1/2
         least 99.9%. (Failures due to                        analysis
         infrastructure failure)

1.4.1.2  The system shall provide the                                                                 SEIT         NEC/HNS/ETL
         following end-to-end link
         availability for the
         corresponding UE type and
         rain region:
         1) Enhanced repeater: 99.8%,    See Comment          IGF Availability Requirements are
         ITU rain region P.                                   dependent on system availability
                                                              analysis
         2) Basic repeater, Messaging    See Comment          IGF Availability Requirements are
         terminal (when stationary):                          dependent on system availability
         99.7%, ITU rain region P.                            analysis

         3) Web-return terminal:         See Comment          IGF Availability Requirements are
         99.6%, ITU rain region P.                            dependent on system availability
                                                              analysis
         4) Handheld, basic repeater,    See Comment          IGF Availability Requirements are
         messaging terminal (in mobile                        dependent on system availability
         mode): same as original                              analysis
         handheld requirements
         excluding diversity

         Note:  Sub-allocation of this   Noted
         requirement to infrastructure
         elements to occur as part of
         joint customer-contractor
         SEIT effort prior to contract
         signing.

1.4.2    Capacity Requirements                                                                        SEIT         NEC/HNS/ETL
</TABLE>

                                                                      Page - 1/7
<PAGE>   2547
IGF                                                    Teledesic RFP Compliance

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

         ICO system capacity is the      Noted
         measure of the number of
         subscribers the system can
         support. The subscribers are
         divided into separate service
         types which each have
         aggregate traffic
         characteristics, distribution
         constraints, revenue values
         and resource requirements.

         The current system capacity     Noted
         estimates are based on the
         "Teledesic ICO Capacity
         Spreadsheet version 5.0".
         (See Attachment 1) This is
         the version that was
         coordinated at the December
         1999 Co-Located Design Team
         (CLDT) effort. The numbers
         will be modified during the
         contract development phase as
         the spreadsheet is updated
         and supported or replaced by
         more accurate simulation(s).
         The requirement is a shared
         goal for late in life that
         will be refined prior to
         contract finalization.

         The system shall                Noted                These statements are interpreted
         simultaneously support at                            to apply to system design  and not
         least the following number of                        hardware provisioning.  The
         subscribers for each of the                          hardware sizing is provided
         following service types given                        separately.
         the assumptions and
         definitions described below
         in the 12th year of operation
         (see included assumption
         summary).  It is expected
         that these numbers will be
         refined upwards and downwards
         as part of the execution of
         the capacity modeling
         requirements defined
         elsewhere in this MOU, but it
         is believed that they have
         accuracy of +/- 25%.

         1) Enhanced ICO voice at        Noted
         least 400,000

         2) Basic repeater voice at      Noted
         least 4,000,000

         3) Two way messaging at least   Noted
         1,700,000

         4) Basic repeater data at       Noted
         least 300,000

         5) Enhanced repeater at least   Noted
         100,000

         6) Web TV back channel at       Noted
         least 5,000,000.

         The spreadsheet and             Noted
         associated assumptions are
         documented in the following
         attachments:
</TABLE>

                                                                      Page - 2/7
<PAGE>   2548
IGF                                                    Teledesic RFP Compliance

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

         Attachment 1 - ICO Capacity     Noted
         Spreadsheet

         Attachment 2 - ICO Capacity     Noted
         Spreadsheet Description

         Attachment 3 - ICO Link         Noted
         Budgets

1.4.3    Resource Management                                                                         IGF Stage     NEC/HNS/HSC
         Requirements                                                                                2/SEIT

         The key element in maximizing   Noted (See
         capacity, and the only one      Comments/
         that we have control of, is     Limitations)
         resource management.
         Efficiently managing
         resources requires that we
         understand the services,
         system, and traffic
         characteristics very well.

         The following resource
         management requirements are
         goals for the system design:

         1. The contractor shall meet    Comply               Exception shall be applied to                        NEC/HNS/HSC
         all existing resource                                implicit requirement in this
         management requirements                              document as well as explicit
         except where superseded by                           requirement in this document.
         this document.

         2. The system shall provide a   Noted
         dynamic filter re-assignment
         capability with the following
         features:

2A       The long-term goal is  filter   Performance Goal     This is dependent in large part on                   NEC/
         re-assignment in nominally 10                        the PCS and satellite                                HSC/HNS/
         seconds. The time is measured                        capabilities, and hence is not                       ICO (DCN)
         from the time it is                                  entirely in control of the IGF
         determined that the user
         requests need filter
         allocation (at SAN) to the
         time the resource is
         allocated in the DSP (at
         satellite) and available for
         traffic use.

2B       The long-term goal is to        Performance Goal     Details of SRMS design for dynamic                   NEC/ ICO
         re-assign filters, which are                         allocation are still being worked                    (DCN)
         already assigned to the
         correct beam, but inactive,
         within 5 seconds. This is
         strictly a ground function
         and the satellite and PCS are
         not involved. The time
         includes all required
         handshaking and buffering
         delays .

2C       The near-term goal is for the   Performance Goal     Details of SRMS design for dynamic                   NEC/ ICO
         SRMS to re-assign filters                            allocation are still being worked                    (DCN)
         within a nominal 10 seconds.
</TABLE>

                                                                      Page - 3/7
<PAGE>   2549
IGF                                                    Teledesic RFP Compliance

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

2D       The near-term goal is for the   Noted                                                        N/A for IGF  HSC/ ICO
         PCS to perform the real-time                                                                              (DCN)
         re-assignment within a
         nominal 5 seconds.

2E       The system shall support at     Performance Goal     This is dependent in large part on                   NEC/ HSC/
         least 10 real-time filter                            the PCS and satellite                                ICO (DCN)
         re-assignments per second per                        capabilities, and hence is not
         satellite without disrupting                         entirely in control of the
         non-real time command                                IGF
         processing.

2F       These values will be refined    Comply                                                                    NEC/HNS/HSC
         by PDR.

2G       If these requirements break     Noted                                                                     ICO(DCN)
         the bank of the inter-SAN
         communication links, it is
         expected that the contract
         will be modified to support
         it.

2H       Dynamic resource allocation     Comply                                                                    NEC/ HNS/ HSC
         shall support fully automated
         control, and provide an
         interface for human
         interaction to allow off line
         setting of the parameters.
         The process shall include all
         necessary system components
         including SRMS planning,
         L-SRMS allocation, PCS
         transmission, and PCP
         processing as required.

2I       Dynamic resource sharing        Comply               The goal of dynamic resource                         NEC/ HNS
         shall allow optimization of                          allocation is to improve using of
         all scarce resources.                                scarce resources.  However,
                                                              optimum usage cannot be guaranteed

         3. The system shall support     Comply                                                                    NEC/HNS
         efficient use of all scarce
         resource. Resource sharing
         shall allow optimization of
         all scarce resources and
         shall not inefficiently waste
         other less scarce, but
         non-plentiful resources.
         Resources shall include, but
         not be limited to, forward
         and reverse filters, RF
         power, and RF spectrum.

         4. The system design shall      See Comment          Reduction of number of Z-Arcs is                     NEC/ HNS
         reduce partitioning                                  proposed.  It is noted that
         (fragmentation) of all scarce                        Teledesic are still considering
         system resources by reducing                         diversity; if diversity remains,
         the number of z-arcs.                                then reducing Z-arcs will not be
                                                              possible.
</TABLE>

                                                                      Page - 4/7
<PAGE>   2550
IGF                                                    Teledesic RFP Compliance

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

         5. The system shall provide     Comply               The proposal allows this.  The                       NEC/ HNS
         for multiple services to                             extent to how many services can
         share filter resources. This                         shared is be dependent on
         includes signaling, voice and                        channelization plans (eg
         data.                                                bandwidth of slow packet data
                                                              channel), which are still under
                                                              review by Teledesic.
         6. The system shall support     Comply                                                                    NEC
         scenarios where some beams
         are not active on a
         satellite, and do not have
         resources allocated to the
         beam, to allow more efficient
         use of satellite resources.

         7. The system shall support     Comply                                                                    NEC/ HNS
         asymmetric resource
         allocation for forward and
         reverse resources.

         8. The system design of         See Comment          Compliance is expected, but the                      NEC/ HNS
         resource planning and                                issue of unfairness is for further
         allocation algorithms shall                          study
         not introduce unintentional
         unfairness in assignment of
         resources to users based on
         their geographic location or
         resource pool allocation
         order.

1.4.4    Comm/Link Requirements
         The following communications                                                                 IGF Stage
         and link requirements are                                                                   2/SEIT
         goals for the system design:

         1. The system shall support     Performance Goal     Detailed link analysis to be                         HNS/NEC
         simultaneous voice and packet                        performed
         data links with users of
         similar EIRP and G/T in such
         a manner that satellite
         resources are not consumed
         less efficiently than the
         original telephony-only
         system. (i.e. Manage
         interference to similar
         levels as before.)

         2. The system shall provide a   See Comment          It is assumed that UEs with                          SEIT/UT
         means by which a UT with                             directional antennas will also
         directional antenna will find                        have an omni antenna for
         and track satellites and                             acquisition.  No change to the AI
         seamlessly handoff to other                          or IGF is planned.
         satellites.
</TABLE>

                                                                      Page - 5/7
<PAGE>   2551
IGF                                                    Teledesic RFP Compliance

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

         3. The system shall provide     Performance Goal     Detailed link analysis to be                         HNS/NEC
         the flexibility to trade                             performed
         subscriber link margin for
         additional system capacity.

         4. The system shall support     Performance Goal     Detailed link analysis to be                         HNS/NEC
         simultaneous voice and packet                        performed
         data links such that the
         carrier imbalance is taken
         into consideration in order
         to optimize capacity while
         maintaining the required
         radio link margin.

1.5      Network Management
                                                                                                      IGF Stage 2
         The Network Management          Noted                                                                     HNS/NEC/ETL
         Systems (NMS) for ICO will be
         extended to provide the
         functionality necessary to
         manage and control the
         proposed ICO packet data
         services.

         The extended network
         management functionality
         shall:

         1) Be capable of monitoring     Comply               LINK-NMS/SAN-NMS has a function of                   NEC/ETL/HNS
         and controlling the activity                         service report and trend display
         of each defined service class                        for defined service class based on
                                                              SBS provided information.

         2) Support Service Level        Partial Comply       Exact metrics need to be studied                     ETL
         Agreements (SLAs) with
         performance metrics, such as
         data rates, packet loss
         rates, availability, etc.

         3) Scale upwards to meet the    Comply                                                                    ETL
         management needs for the
         traffic levels anticipated in
         the 12th year of operation
         while still meeting SLAs
</TABLE>

                                                                      Page - 6/7
<PAGE>   2552
IGF                                                    Teledesic RFP Compliance

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

         4) Support collaboration with   Comply               LINK-NMS has a function to deliver                   HNS/NEC/ETL/HSC
         SCC systems to ensure full                           trouble ticket for packet data
         management visibility of the                         service related equipment in
         entire ICO system                                    addition to the
                                                              existing equipment to SCC.

         5) Support remote management    Comply               LINK-NMS manages SBS and GSN for                     HNS/NEC/ ETL
         of SAN packet data systems                           packet data service from NMC
         from the NMC                                         remotely.

         6) Support establishment and    Comply                                                                    ETL
         enforcement of per-user
         policies for traffic classes
         and priorities

         7) Support system security      Comply               DCN encryptor currently supports                     HNS/NEC/ETL
         (encryption, authentication,                         encryption.
         access control)                                      LINK-NMS/SAN-NMS also currently
                                                              supports authentication and access
                                                              control using password.
         8) Provide an Equipment         Partial Comply       EIR is not included in the              .            ETL
         Identity Register (EIR) of UT                        proposal.  Some of the subscriber
         information, such as UT type,                        information is stored in the HLR
         electronic serial number,                            and GSNs
         configuration parameters,
         Service Provider ID, address,
         etc.

         9) Provide industry standard    Comply               Comply for GSNs.                                     NEC/HNS/ ETL
         management functions (fault
         management, configuration
         management, accounting
         management, performance
         management, security
         management) for all elements
         of the IGF
</TABLE>

                                                                      Page - 7/7
<PAGE>   2553
                                        *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.
<PAGE>   2554
                                        *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

<PAGE>   2555
                     III.1 RFT PRICE LIST (IN THOUSAND US$)

                                        *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

<PAGE>   2556
                     III.1 RFT PRICE LIST (IN THOUSAND US$)

                                        *

* Confidential Treatment Requested and the Redacted Material has been
  separately filed with the Commission.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00016-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00016-of-00352.parquet"}]]